Robot training provider Shentong back on track after return to profit in Q1-Q3 2022
Shentong Robot Education Group (神通机器人, 8206.HK), a Chinese company providing robot-focused STEM education and marketing services, reported better-than-expected earnings and returned to profit in the first three quarters of the 2022/2023 fiscal year, the firm said.
According to financial results released for the nine months ending December 31, 2022, Shentong recorded earnings of HK$12.22 million (US$1.56 million), up 27.1% from HK$9.61 million year on year.
The company also reversed its losses, posting HK$231,000 in profit attributable to company shareholders, compared to a loss of HK$78.70 million from the same period a year earlier.
On an earnings call, Shentong executives said the improved performance is a result of increasing revenue and a halt to recognition of HK$89.50 million worth of intangible assets.
Due to recurrent Covid-induced lockdown measures adopted by local governments in mainland China, the company said the out-of-school offline robot courses administered by its training centers were suspended three times, between August and October 2021, between March and early June 2022 and between late September 2022 and January 2023, respectively.
Shentong forecast its performance to rebound as students gradually return to its centers for robot training following China’s exit from its zero-Covid strategy and the lifting of lockdowns across the country.
According to a statement on the company’s website, the company, listed on Hong Kong Stock Exchange in 2002, expanded its business to industries related to robotics education in China upon completion of the full acquisition of the service provider of China Robot Competition in Heilongjiang Province in May 2016.
It currently focuses on the provision of robotics education in China, including offering robotics training and hosting competitions, as well as promotion and management services of “Shentong Card.”