May 26, 2022

China Distance Education Holdings Reports Q2 2020 Financial Results

China Distance Education Holdings announced the company’s Q2 2020 financial results on Friday. According to the financial details released by the company, the net revenue of the company increased 8.1% and reached at $41.9 million from the $38.8 million from the previous year quarter.

The gross profit of the company reached at $21.4 million from $15.5 million in the previous quarter. The company has a record operating loss of $4.1 million and the company’s operating income reached at $1.3 million. The total cash flow of the company reached $11.7 million from $16.5 million in the previous second quarter.

Chief Executive Officer and Chairman of China Distance Education Holding, Mr. Zhengdong Zhu said, “In the second quarter of fiscal 2020, we delivered year-over-year revenue growth of 8.1%, within our guidance range. The second quarter revenue growth was driven primarily by the healthy revenue growth of our industry-leading accounting vertical.”

“In concert with our responsive measures to support our students across China during the Coronavirus Disease 2019 or COVID-19 epidemic, we offered free online courses to students in Hubei province, and significant discounts for certain online exam preparation courses to students outside Hubei, providing students with convenient access to high-quality online professional education at a time when offline classes were restricted,” Mr. Zhu further added.

“This initiative quickly attracted students across China to our online learning platform. As a result, our paid enrollments nearly doubled year-over-year in the second quarter, dramatically expanding our student base. While our efforts to support students during the COVID-19 outbreak negatively impacted our second quarter revenue and cash receipts growth, they underscore our commitment to social responsibility, our vision to cultivate online learning as a lifestyle, and our aim to be our students’ life-long education partner of choice,” Mr. Zhu continued.

Dennis Morris writes related to the Business Category. He manages to cover anything thrown at him in these two verticals owing to his natural inclination towards Business. Dennis is our freelance contributor. He is responsible for covering developments in finance and business categories.