Neusoft Education Submitted Prospectus to HKEX for the Second Time

Neusoft, a leading IT higher education service provider in China, recently submits the prospectus to the Hong Kong Stock Exchange again, after its first time in July last year. And its exclusive sponsor is Credit Lyonnais Securities Asia.

According to its official website, Neusoft is driven by the mission of empowering students with an innovative education. The Group has developed a digital talent education service ecosystem with full-time formal higher education services as its fundamental business, and continuing education services and education resources & apprenticeship program as two strategic business sectors integrating online and offline.

The prospectus shows that Neusoft’s revenue was 956 million yuan last year, a year-on-year increase of 12.31%. The net profit was 175 million yuan, a year-on-year increase of 6.93%. In the first quarter of 2020, Neusoft saw revenue of 159 million yuan, a year-on-year decrease of 7.31%, which is due to the reduction in education resources and data factory income. The net profit was 12.2 million yuan, increasing by 169.0% compared to last year. Moreover, as the primary source of income, the business of full-time higher education degree services has achieved a revenue of 733 million yuan in 2019, accounting for 76.55% of the total.

Currently, Neusoft operates three private colleges and eight training schools, covering six provinces in China. In the 2019-2020 academic year, the total number of students enrolled in full-time degree courses and continuing education courses in the three colleges is around 40,000.

As for the proposed IPO funds, Neusoft said it would be used to upgrade existing school facilities and expand campuses, acquire more colleges to expand the school network, as well as repay bank loans and supply business operations.