Jianzhi Education Technology Group Company Limited Reports on Fiscal Year 2023 Financial Results

April 10, 2024 by No Comments

BEIJING, April 09, 2024 — Jianzhi Education Technology Group Company Limited (the “Company” or “Jianzhi”) (NASDAQ: JZ), a leading provider of digital educational content in China, today announced its financial results for fiscal year ended December 31, 2023. Net revenues were 440.5 million (US$62.0 million) for fiscal year 2023, compared to RMB505.7 million during the same period in 2022.Gross profit was RMB16.2 million (US$2.3 million) for fiscal year 2023, and a gross loss of RMB5.5 million for the same period in 2022.Net loss for 2023 was RMB382.8 million (US$53.9 million), compared to net loss of RMB196.6 million during the same period in 2022. The following table sets forth a summary of the consolidated results of operations for the years indicated:   For the Years Ended December 31,    20222023    RMB RMB US$   % Change  (in million, except for percentages)  Net revenues 505.7 440.5 62.0  (12.9%)Gross (loss) profit (5.5)16.2 2.3  394.5%Loss from operations (207.4)(382.8)(53.9) 84.6%Net loss (196.6)(382.8)(53.9) 94.7%           Mr. Yong Hu, CEO of the Company, commented: “In 2023, the Company faced a challenging year marked by policy headwinds and the evolving landscape of the vocational education industry following the Covid pandemic. To effectively respond to these changes, the Company proactively adjusted its strategy. It pursued a two-pronged approach by reducing investment in the educational content services segment while cementing efforts to expand its highly profitable customized IT system design and development services.” “As a result of these strategic actions, the Company recorded a top line of RMB440.5 million, with a gross profit of RMB16.2 million for the fiscal year 2023. This represents a significant improvement compared to the previous year’s corresponding period, which recorded a gross loss of RMB5.5 million. It is important to note that the Company’s overall profitability was temporarily affected by the impairment of assets resulting from the reduced procurement of courses and subscriptions to course content in the educational content services division. However, it is our firm belief that this impairment of customized courseware assets is non-recurring and we anticipate this will not have a sustained impact on the Company’s future profitability.” “Looking ahead to 2024, the Company has undertaken a comprehensive reassessment of its business strategy with the primary objective of restoring and enhancing its profitability. To achieve this, the Company will vigorously expand its operations in critical business areas that align with national policies, such as 5G messaging, digital workforce solutions, and the education industry. Furthermore, the Company will establish strategic partnerships with telecom operators in China, across multiple provinces to facilitate the successful implementation of these strategic plans.” “In addition