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Wah Fu Education Group Limited (WAFU)

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Previous Close7.49
Open7.46
Bid7.36 x 900
Ask7.45 x 900
Day's Range7.32 - 7.57
52 Week Range2.52 - 21.00
Volume154,517
Avg. Volume3,187,739
Market Cap32.595M
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-0.02
Earnings DateMar 31, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target EstN/A
  • We're Interested To See How Wah Fu Education Group (NASDAQ:WAFU) Uses Its Cash Hoard To Grow
    Simply Wall St.

    We're Interested To See How Wah Fu Education Group (NASDAQ:WAFU) Uses Its Cash Hoard To Grow

    Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...

  • GlobeNewswire

    Wah Fu Education Group Ltd. Announces Financial Results for the First Half of Fiscal Year 2021

    BEIJING, China, March 31, 2021 (GLOBE NEWSWIRE) -- Wah Fu Education Group Limited (“Wah Fu” or the “Company”) (NASDAQ:WAFU), a provider of online education and exam preparation services, as well as related training materials and technology solutions for both institutions and individuals, today announced its unaudited financial results for the six months ended September 30, 2020. Financial Highlights for the Six Months Ended September 30, 2020 For the Six Months Ended September 30, ($’000, except per share data) 2020 2019 % Change Revenue $4,302 $2,500 72.1%Gross profit $2,430 $986 146.5%Gross margin 56.5% 39.4% 17.1ppIncome (loss) from operations $687 $(1,038) -166.2%Operating profit (loss) margin 16.0% -41.5% 57.5ppNet income (loss) $511 $(1,183) -143.2%Basic and diluted earnings (loss) per share $0.09 $(0.29) -131.0% * pp: percentage points ●Revenue increased by 72.1% year-over-year to $4.30 million for the six months ended September 30, 2020 from $2.50 million for the same period of the prior fiscal year. The increase in revenue is primarily attributable to the increased revenue from online education services due to the impact of the COVID-19. ●Gross profit increased by 146.5% to $2.43 million for the six months ended September 30, 2020 from $0.99 million for the same period of the prior fiscal year. Gross margins were 56.5% and 39.4% for the six months ended September 30, 2020 and 2019, respectively. The increased gross profit was mainly due to (i) the sharply increased revenue from online education service due to the impact of the COVID-19, which had a higher gross margin; (ii) the decreased salary expense for IT service personnel since the Company shifted focus to online education service. ●Income from operations was $0.69 million for the six months ended September 30, 2020, compared to loss from operations of $1.04 million for the same period of the prior fiscal year. Operating profit margin was 16.0% for the six months ended September 30, 2020, compared to operating loss margin of 41.5% for the same period of the prior fiscal year. ●Net income was $0.51 million or, income per share of $0.09 for the six months ended September 30, 2020, compared to net loss of $1.18 million, or loss per share of $0.29, for the same period of the prior fiscal year. Unaudited Financial Results for the Six months Ended September 30, 2020 Revenue For the six months ended September 30, 2020, revenue increased by $1.80 million, or 72.1%, to $4.30 million from $2.50 million for the same period of the prior fiscal year. The increase in revenue is primarily attributable to the increase of revenue from online education services. For the six months ended September 30, 2020, revenue from online education services increased by $1.74 million, or 71.0%, to $4.19 million from $2.45 million for the same period of the prior fiscal year. The increase was primarily due to increase in B2B2C revenues. The increase in B2B2C revenues was due to the increased revenue from online continuing education and examination service. Due to the impact of the COVID-19, the daily offline education and teaching activities of colleges and universities across the country were suspended due to government’s regulations. The online courses we provided during the six months ended September 30, 2020 thus increased sharply. As a consequence, revenue from online education services increased, compared to the same period of the prior fiscal year. The number of courses provided increased by 41,231 from 244,422 courses for the six months ended September 30, 2019 to 285,653 courses for the six months ended September 30, 2020. Cost of revenue Cost of revenue increased by $0.36 million, or 24.2%, to $1.85 million for the six months ended September 30, 2020 from $1.49 million for the same period of the prior fiscal year. The increase in overall cost of revenue was mainly due to increased cost of revenue for online education services. Because revenue from the online education services increased, the cooperation fee paid to collaborators increased. The increase was partially offset by payroll expense due to the decrease of the total number of employees during the six months ended September 30, 2020. Cost of revenue for online education services increased by $0.34 million, or 22.8%, to $1.83 million for the six months ended September 30, 2020 from $1.49 million for the same period of the prior fiscal year. The increase in cost of revenue for online education services was primarily due to increased collaboration fees resulting from business expansion in Hunan Province. As the total numbers of adult education course increased, the collaboration fees paid to collaborator increased accordingly. Gross profit Gross profit increased by $1.44 million, or 146.5%, to $2.43 million for the six months ended September 30, 2020 from $0.99 million for the same period of the prior fiscal year. As a result, gross margin increased by 17.1 points to 56.5% for the six months ended September 30, 2020 from 39.4% for the same period of the prior fiscal year. Gross profit for online education services increased by $1.40 million or 148.9% to $2.34 million for the six months ended September 30, 2020 from $0.94 million for the same period of the prior fiscal year. As the online courses we provided during the six months ended September 30, 2020 increased sharply, the revenue from online education services increased compared to the same period of the prior fiscal year. As the operation of our platform remained stable, the cost of online education services, such as collaboration fees paid to universities, depreciation and amortization expenses, didn’t increase exactly in line with increase in revenue. As a result, gross margin for online education services increased to 56.0% for the six months ended September 30, 2020 from 38.4% for the same period of the prior fiscal year. Operating expenses Selling expenses increased by $0.05 million, or 6.6%, to $0.81 million for the six months ended September 30, 2020 from $0.76 million for the same period of the prior fiscal year. The increase was mainly due to the increased effort the company put in marketing in current period. General and administrative expenses decreased by $0.33 million, or 26.2%, to $0.93 million for the six months ended September 30, 2020 from $1.26 million for the same period of the prior fiscal year. The decrease was primarily because the government claimed the company exempt from social insurance during the six months ended September 30, 2020 due to the impact of COVID-19. Total operating expenses decreased by $0.28 million, or 13.9%, to $1.74 million for the six months ended September 30, 2020 from $2.02 million for the same period of the prior fiscal year. Income (loss) from operations Income from operations was $0.69 million for the six months ended September 30, 2020, compared to loss from operations of $1.04 million for the same period of the prior fiscal year. We realized profit mainly due to the increase of revenue during the six months ended September 30, 2020. For details reasons, please see above. Other income (expenses) Total other income, including interest income, loss from investments in unconsolidated entity, net of other expenses, were $0.04 million and $0.04 million for the six months ended September 30, 2020 and the same period of the prior fiscal year, respectively. Income (loss) before income taxes Income before income taxes was $0.72 million for the six months ended September 30, 2020, compared to loss before income taxes of $1.00 million for the same period of the prior fiscal year. Net income (loss) and earnings (loss) per share Net income was $0.51 million for the six months ended September 30, 2020, compared to net loss of $1.18 million for the same period of the prior fiscal year. Net profit margin was 11.9% for the six months ended September 30, 2020, compared to net loss margin of 47.3% for the same period of the prior fiscal year. After deducting non-controlling interests, net profit attributable to the Company was $0.37 million, or profit of $0.09 basic and diluted share, for the six months ended September 30, 2020. This compared to net loss of $1.23 million, or loss of $0.29 per basic and diluted share, for the same period of the prior fiscal year. Weighted average number of shares outstanding was 4,381,033 for the six months ended September 30, 2020, compared to 4,199,336 for the same period of last fiscal year. Financial Condition As of September 30, 2020, the Company had cash of $9.27 million, compared to $6.83 million as of March 31, 2020. Total working capital was $8.64 million as of September 30, 2020, compared to $7.34 million as of September 30, 2019. Net cash provided by operating activities was $1.59 million for the six months ended September 30, 2020, compared to net cash provided by operating activities of $1.13 million for the same period last year. Net cash provided by investing activities was $0.68 million for the six months ended September 30, 2020, compared to net cash used in investing activities $0.06 million for the same period last year. Net cash used in financing activities was $0.09 million for the six months ended September 30, 2020, compared to net cash provided by financing activities $4.89 million for the same period of last year. About Wah Fu Education Group Limited Headquartered in Beijing, China, Wah Fu Education Group Limited provides online training and exam preparation services, as well as related training materials and technology solutions for both institutions, such as universities and training institutions, and students. For more information about Wah Fu, please visit www.edu-edu.cn. Safe Harbor Statement This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are not statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the online training industry in China and the other markets the Company serves or plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the other markets the Company serves or plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission (the “SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that arise after the date hereof. For more information, please contact: Raincy Du ir@edu-edu.com.cn WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS As of September 30, As of March 31, 2020 2020 ASSETS CURRENT ASSETS: Cash $9,266,310 $6,833,891 Accounts receivable, net 1,149,926 542,913 Other receivables, net 74,601 143,920 Loan to third parties, current 666,669 42,316 Loan to related parties 1,832,051 2,537,532 Other current assets 199,543 150,213 TOTAL CURRENT ASSETS 13,189,100 10,250,785 Loan to third parties, noncurrent - 579,335 Right-of-use assets 494,963 603,553 Rent deposit 76,123 73,049 Property and equipment, net 743,552 775,465 Investments in unconsolidated entities 11,439 10,977 Deferred tax assets, net 338,191 272,115 TOTAL ASSETS $14,853,368 $12,565,279 CURRENT LIABILITIES: Due to related parties $297,855 $286,353 Deferred revenue 2,399,981 1,524,918 Operating lease liabilities, current 265,610 254,332 Taxes payable 580,341 314,052 Other payables 200,716 189,201 Accrued expenses and other liabilities 808,483 335,699 TOTAL CURRENT LIABILITIES 4,552,986 2,904,555 Operating lease liabilities, noncurrent 242,695 361,595 TOTAL LIABILITIES 4,795,681 3,266,150 COMMITMENTS AND CONTINGENCIES EQUITY Common stock, $0.01 par value, 30,000,000 shares authorized; 4,381,033 and 4,381,033 shares issued and outstanding as of September 30, 2020 and March 31, 2020 respectively 43,810 43,810 Additional paid-in capital 4,799,384 4,799,384 Statutory reserve 231,424 231,424 Retained earnings 5,098,639 4,723,999 Accumulated other comprehensive loss (505,639) (734,028)Total shareholders’ equity 9,667,618 9,064,589 Non-controlling interest 390,069 234,540 TOTAL EQUITY 10,057,687 9,299,129 TOTAL LIABILITIES AND EQUITY $14,853,368 $12,565,279 WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Six Months Ended September 30, 2020 2019 REVENUE $4,302,082 $2,500,195 COST OF REVENUE AND RELATED TAX Cost of revenue 1,853,601 1,491,384 Business and sales related tax 18,634 22,509 GROSS PROFIT 2,429,847 986,302 OPERATING EXPENSES Selling expenses 812,877 764,179 General and administrative expenses 929,998 1,259,784 Total operating expenses 1,742,875 2,023,963 INCOME (LOSS) FROM OPERATIONS 686,972 (1,037,661) OTHER INCOME (EXPENSE) Interest income 82,864 46,447 Other expenses (46,389) (5,726)Total other income, net 36,475 40,721 INCOME (LOSS) BEFORE INCOME TAX PROVISION 723,447 (996,940) PROVISION FOR INCOME TAXES 212,024 186,434 NET INCOME (LOSS) 511,423 (1,183,374) Less: net income attributable to non-controlling interest 136,783 41,653 NET INCOME (LOSS) ATTRIBUTABLE TO WAH FU EDUCATION GROUP LIMITED $374,640 $(1,225,027) COMPREHENSIVE INCOME (LOSS) Net income (loss) 511,423 (1,183,374)Other comprehensive loss: foreign currency translation loss 247,135 (388,073)Total comprehensive loss 758,558 (1,571,447)Less: Comprehensive income (loss) attributable to non-controlling interest 18,746 (26,088) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO WAH FU EDUCATION GROUP LIMITED $739,812 $(1,545,359) Earnings (loss) per common share - basic and diluted $0.09 $(0.29)Weighted average shares - basic and diluted 4,381,033 4,199,336 WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATION STATEMENTS OF CHANGES IN EQUITY Ordinary Shares Additional Paid-in Statutory Retained Accumulated Other Comprehensive Shareholders’ Non-controlling Total Shares Amount Capital Reserves Earnings Income (Loss) Equity Interest Equity Balance at March 31, 2020 4,381,033 $43,810 $4,799,384 $231,424 $4,723,999 $(734,028) $9,064,589 $234,540 $9,299,129 Net income (loss) - - - - 374,640 - 374,640 136,783 511,423 Foreign currency translation adjustment - - - - - 228,389 228,389 18,746 247,135 Balance at September 30, 2020 4,381,033 $43,810 $4,799,384 $231,424 $5,098,639 $(505,639) $9,667,618 $390,069 $10,057,687 Balance at March 31, 2019 3,200,000 $32,000 $217,395 $222,180 $6,421,944 $(407,169) $6,486,350 $211,353 $6,697,703 Common stock issued net of stock issuance costs of $1,266,326 1,181,033 11,810 4,627,029 - - - 4,638,839 - 4,638,839 Net income (loss) - - - - (1,225,027) - (1,225,027) 41,653 (1,183,374)Foreign currency translation adjustment - - - - (361,985) (361,985) (26,088) (388,073)Balance at September 30, 2019 4,381,033 $43,810 $4,844,424 $222,180 $5,196,917 $(769,154) $9,538,177 $226,918 $9,765,095 WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the six months ended, September 30 2020 2019 Cash flows from operating activities: Net Income (loss) $511,423 $(1,183,374)Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 70,124 113,767 Non-cash lease expense 130,173 78,861 Loss from disposal of property and equipment - 88 Provision for doubtful accounts 241,551 59,242 Provision for investments in unconsolidated entities 23,329 - Interest income from loan to third parties (72,600) (15,610)Deferred tax benefit (53,069) 91,148 Changes in operating assets and liabilities: Accounts receivable, net (645,705) 929,249 Other receivable, net 150,959 (155,658)Other current assets (44,446) 67,131 Rent deposit (77,731) (74,856)Deferred revenue 787,789 1,157,842 Taxes payable 245,863 108,238 Other payable 4,074 - Operating lease liabilities (129,738) (56,131)Accrued expenses and other liabilities 445,590 13,928 Net cash provided by operating activities 1,587,586 1,133,865 Cash flows from investing activities: Purchase of property and equipment (7,417) (63,111)Proceeds made for loans to related party (1,650,000) - Proceeds from loans to related party 2,355,481 - Payments made for loans to third parties (18,321) - Net cash provided by (used in) investing activities 679,743 (63,111) Cash flows from financing activities: Changes in due to related parties (88,510) 26,040 Net proceeds from initial public offering (“IPO”) - 4,866,512 Net cash provided by (used in) financing activities (88,510) 4,892,552 Effect of exchange rate fluctuation on cash 253,600 (293,494) Net increase in cash 2,432,419 5,669,812 Cash at beginning of the period 6,833,891 3,927,718 Cash at end of the period $9,266,310 $9,597,530 Supplemental cash flow information Cash paid for income taxes $29,066 $11,228 Non-cash financing activities Right of use assets obtained in exchange for operating lease obligations $816,057 $823,554 Deferred offering cost netted with proceeds from IPO $- $227,673