Investment Rating - The report maintains a positive outlook on the higher education sector, indicating a "Buy" recommendation for specific companies such as New Higher Education, Neusoft Ruixin, Xijiao International Holdings, and Zhonghui Group [30]. Core Insights - The report anticipates a turning point in educational investment, with improved operational efficiency expected in the higher education sector. It notes that while revenue growth for higher education companies is generally slowing due to a deceleration in student enrollment, tuition fee increases are becoming the primary driver of revenue growth [3][12]. - The report predicts that the average revenue growth rate for six higher education companies in FY25 will be 8.8%, a decline of 2.8 percentage points from the previous year and a drop of 11.8 percentage points from the five-year average [4][13]. - The report highlights that the average tuition fee growth for FY25 is expected to remain stable at 9.3%, which is an increase of 1.2 percentage points compared to the five-year average [4][12]. Summary by Sections Market Review - The education index increased by 2.9% during the week, outperforming the Hang Seng Index by 0.4 percentage points. Year-to-date, the education index has risen by 14.21%, lagging behind the Hang Seng Index by 7.23 percentage points [11]. Financial Projections - The report forecasts that the average gross profit growth for the six higher education companies in FY25 will be 3.7%, a decrease of 1.1 percentage points from the previous year and a drop of 14.4 percentage points from the five-year average. The average gross profit margin is expected to be 43.6%, down 2.9 percentage points from the previous year [5][18]. - The average number of teachers is projected to grow by 2.9% in FY25, continuing to outpace student enrollment growth. Teacher salaries are expected to increase by an average of 14.7%, indicating a trend towards hiring higher-caliber talent [5][18]. Cost Management - The average sales expense ratio for FY25 is projected to be 2.5%, remaining stable compared to the previous year. The average management expense ratio is expected to rise to 11.8%, while the average financial expense ratio is anticipated to decrease to 3.7% [6][22]. Operational Efficiency - The report suggests that the operational efficiency of higher education companies is expected to bottom out, with quality improvements in education becoming the main theme of the industry. It predicts that the cost growth for higher education companies will align with student enrollment growth in the coming year [8][27]. - The report also indicates that as educational investment peaks, the resumption of dividends from higher education companies is anticipated [29].

Group 1: Government Initiatives - The State Council's Employment Promotion and Labor Protection Working Group issued guidelines for a large-scale vocational skills enhancement training initiative from 2025 to the end of 2027, targeting the supply of skilled labor in manufacturing and service sectors, aiming to provide over 30 million subsidized training opportunities [1] - Shanghai plans to implement a three-year action plan for building a strong education system, focusing on modern vocational education, deepening industry-education integration, and enhancing governance capabilities in vocational education [1] - Guangzhou released implementation opinions to strengthen the high-skilled talent workforce, promoting reforms in the modern vocational education system and integrating vocational and general education [1] Group 2: Industry Developments - China Oriental Education (00667) is a nationwide vocational training institution offering professional training services in culinary arts, information technology, automotive services, and fashion beauty [2] - South China Vocational Education (06913) operates two schools and plans to restructure its colleges, adding new programs in dental and optical technology, with over 40 diverse subjects offered [2] - China Spring Education (01969) operates six private vocational schools, with a total enrollment of 104,000 students, and is positioned to benefit from the growth of private vocational education in Central China [3] - Zhonghui Group (00382) reported a 21.7% revenue growth in higher vocational education, with higher vocational education accounting for 84.9% of total revenue [3] - Fenbi (02469), a leading vocational education company, launched an AI-based product that generated over 14 million yuan in sales within two months, indicating a successful scale-up of its AI strategy [3] Group 3: Company Performance - Neusoft Ruixin Group (09616) reported a 14.9% increase in revenue from educational resource output to 220 million yuan, while its lifelong education business saw a 12.3% decline in revenue to 140 million yuan [4]

Core Viewpoint - Zhonghui Group has been recognized for its outstanding practices and contributions in the ESG (Environmental, Social, and Governance) field, winning the "ESG Social Responsibility Excellence Enterprise Award" at the annual "Golden Award" ceremony, highlighting its commitment to sustainable development in the private higher education sector since its listing in 2019 [1][6]. Group 1: Social Empowerment Formula - As the largest private higher education group in the Guangdong-Hong Kong-Macao Greater Bay Area, Zhonghui Group adheres to its founding mission of "creating a century-old prestigious school and nurturing talents for China," fulfilling its social responsibility through high-quality education services [2]. - The social value of private higher education extends beyond knowledge transfer, focusing on resource integration to address societal pain points, with Zhonghui Group redefining industry responsibility through "educational equity," "industry-education integration," and "community feedback" practices [2]. Group 2: Industry-Education Integration - Zhonghui Group deepens industry-education integration by incorporating corporate resources into the entire teaching chain, ensuring talent cultivation aligns seamlessly with market demands [3]. - In 2025, the group focuses on developing cutting-edge fields such as artificial intelligence, new energy vehicles, and smart healthcare, collaborating with industry leaders to establish 13 types of training bases, enhancing the "integration of industry, academia, research, and application" talent training system [3]. - The group emphasizes student innovation and practical skills, establishing industry-education integration workshops with leading enterprises, ensuring course content aligns with industry needs, and providing over 5,000 internship positions in the past three years [3]. Group 3: Social Responsibility and Educational Equity - Zhonghui Group actively fulfills its social responsibility through various means, including scholarships and financial aid, assisting over 29,000 economically disadvantaged students with funding exceeding 30 million RMB [4]. - The group operates multiple campuses in and out of Guangdong Province, promoting talent integration in the Greater Bay Area and ensuring high-quality education services are accessible to students in different regions [4]. - The group engages in rural revitalization and community education initiatives, including training programs and volunteer services, contributing to local development and education equity [4]. Group 4: ESG Value and Business Growth - With the increasing popularity of ESG investment concepts, Zhonghui Group's strong ESG performance attracts long-term investors, enhancing its market valuation and reducing financing costs [7]. - The group's commitment to ESG principles not only supports its business development but also creates new growth opportunities, transforming social responsibility into a long-term value driver [8]. - The recent guidance from financial authorities to support education sector enterprises in issuing bonds provides Zhonghui Group with diversified financing channels for business upgrades and development [7]. Group 5: Educational Quality and Regional Development - The demand for high-quality talent in economically developed regions like the Greater Bay Area and the Chengdu-Chongqing Economic Circle is significant, and Zhonghui Group's educational resource investment enhances the overall level of private education in these areas [5]. - By offering courses aligned with emerging industries and innovating teaching models, Zhonghui Group provides quality education services, contributing to the development of high-quality talent that supports regional growth [5].

Financial Performance - Revenue for the six months ended February 28, 2025, was RMB 1,247,486,000, representing a 7.5% increase compared to RMB 1,160,191,000 for the same period in 2024[9] - Gross profit decreased by 16.5% to RMB 482,814,000 from RMB 578,009,000 year-on-year[9] - Profit attributable to owners of the company was RMB 243,683,000, down 28.0% from RMB 338,242,000 in the previous year[9] - Adjusted net profit attributable to owners was RMB 258,543,000, a decrease of 25.3% compared to RMB 346,204,000 in 2024[9] - Basic earnings per share fell by 29.5% to RMB 20.98 from RMB 29.76[9] - Total comprehensive income for the period was RMB 284,621,000, compared to RMB 375,066,000 in the same period last year[10] - The profit for the period ending February 28, 2025, was RMB 338,242 thousand, compared to RMB 243,683 thousand for the same period in the previous year, indicating a year-over-year increase of about 38.9%[16] - The total comprehensive income for the period was RMB 375,066 thousand, compared to RMB 284,621 thousand for the previous period, representing an increase of approximately 32%[16] - The pre-tax profit for the six months ended February 28, 2025, was RMB 286,011,000, compared to RMB 386,460,000 for the same period in 2024, indicating a decrease of approximately 26%[33][34] - The adjusted net profit attributable to the company's owners for the six months ended February 28, 2025, was approximately RMB 258.5 million, a decrease of 25.3% compared to the same period last year[96] - The group's total profit for the six months ended February 28, 2025, was RMB 280.5 million, down from RMB 378.5 million in the previous year[97] Student Enrollment and Tuition - The number of enrolled students increased by 4.4% to 100,300 from 96,100[9] - Tuition fees recognized during the period were RMB 1,062,894 thousand, an increase from RMB 1,018,416 thousand in the previous year, representing a growth of about 4.4%[28] - The recognized accommodation fees for the same period were RMB 102,671 thousand, compared to RMB 98,794 thousand in 2024, marking an increase of approximately 3.0%[28] - The recognized non-academic vocational education service fees surged to RMB 81,921 thousand, up from RMB 42,981 thousand in the previous year, indicating a substantial increase of about 90.5%[28] Assets and Liabilities - Non-current assets totaled RMB 6,948,001,000 as of February 28, 2025, compared to RMB 6,638,518,000 as of August 31, 2024[13] - Cash and cash equivalents decreased to RMB 1,864,569,000 from RMB 2,122,102,000[13] - As of February 28, 2025, the company's current liabilities totaled RMB 2,527,368 thousand, a decrease from RMB 2,728,200 thousand as of August 31, 2024, representing a reduction of approximately 7.4%[15] - The total assets minus current liabilities increased to RMB 6,664,171 thousand as of February 28, 2025, compared to RMB 6,373,348 thousand as of August 31, 2024, reflecting an increase of about 4.6%[15] - The company's total equity attributable to owners increased to RMB 4,287,457 thousand as of February 28, 2025, up from RMB 4,065,758 thousand as of August 31, 2024, marking a growth of approximately 5.5%[15] - The group had approximately 8,182 employees as of February 28, 2025, with employee costs totaling around RMB 472.7 million for the six months ended[111] Cash Flow and Financing - For the six months ended February 28, 2025, the net cash used in operating activities was RMB (16,436) thousand, an improvement from RMB (89,608) thousand in the same period of 2024, representing a decrease of approximately 81.7%[18] - The total cash used in investing activities amounted to RMB (505,477) thousand, compared to RMB (371,205) thousand in the previous year, indicating an increase of about 36.1%[18] - The net cash generated from financing activities was RMB 177,620 thousand, a significant recovery from RMB (161,778) thousand in the prior year[20] - The cash and cash equivalents at the end of the period were RMB 1,724,135 thousand, an increase from RMB 1,358,822 thousand in the previous year, reflecting a growth of approximately 26.9%[20] - The group expects sufficient operating cash inflows and available bank financing to meet its future financial obligations over the next twelve months[24] Dividends - The company declared an interim dividend of 6.60 HKD per share, down 31.3% from 9.60 HKD in the previous year[9] - The interim dividend declared for the six months ended February 28, 2025, was approximately RMB 77,763,000, compared to RMB 109,614,155 for the same period in 2024, indicating a decrease of around 29%[41] - The final dividend for the year ending August 31, 2024, amounted to approximately RMB 108,704,000, expected to be partially distributed in new shares and partially in cash by May 30, 2025[42] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ending February 28, 2025[138] - The company has complied with the Corporate Governance Code during the reporting period[134] - The company emphasizes the importance of good corporate governance to enhance management and protect shareholder interests[133] Strategic Initiatives - The company is actively engaging in new product development and market expansion strategies to drive future growth[17] - The group plans to expand its workshop offerings and deepen collaboration with enterprises to enhance the "learning-practice-employment" cycle, aiming to cultivate high-quality application-oriented talents[82] - The group will focus on developing cutting-edge fields such as AI, new energy vehicles, and smart healthcare, while optimizing its professional layout in response to industry demands[88] - The group is actively embracing educational transformation by investing in AI and digitalization, aiming to integrate AI technology into vocational education[79] - Partnerships with major companies like Huawei, Baidu, and JD.com have been established to create a collaborative education platform in emerging fields[79] Share Options and Employee Compensation - The 2024 Share Option Plan allows for a maximum of 114,181,411 shares to be issued, representing approximately 10% of the total issued shares as of the adoption date[55] - The total number of unexercised stock options for directors as of February 28, 2025, is 5,951,491[58] - The total number of unexercised stock options for directors and major shareholders' contacts is 1,385,662[59] - The total number of share options for employees (non-related parties) is 7,980,140 shares, with no options exercised during the period[60] - The company has committed to acquiring properties, plants, and equipment, totaling RMB 785,265,000, primarily for the construction of new campuses[68]

Core Insights - The company reported a revenue of approximately RMB 1,247.5 million for the six months ending February 28, 2025, representing a year-on-year increase of 7.5% due to higher student enrollment and increased average tuition fees [1][6] - The number of enrolled students grew by approximately 4.4% to around 100,300 [1][6] - The company has a strong cash position with cash and cash equivalents amounting to RMB 2,070.8 million [1][6] - A mid-term dividend of HKD 0.066 per share was proposed, with a payout ratio of 30%, marking the 12th consecutive dividend since the company went public [1][6] Investment in Education Quality - The company emphasizes its commitment to high-quality education, with strategic investments and forward-looking planning being crucial for building a reputable educational brand [2] - The acquisition of land use rights in Jiangmen for expanding educational capacity is part of the strategy to support future student growth [2] - The company is actively recruiting industry experts and expanding its dual-teacher model to enhance educational quality [2] Embracing Educational Transformation - The company is focusing on "AI + talent cultivation" as a core strategy, upgrading its educational system through the development of smart education platforms and AI-assisted courses [3] - There is a strong emphasis on industry-education integration, particularly in emerging sectors like artificial intelligence and digital economy, through collaborations with major companies such as Huawei and Baidu [3] Future Outlook - The company aims to capitalize on the opportunities presented by the industrial upgrades in the Guangdong-Hong Kong-Macao Greater Bay Area and the national strategy for emerging industries [4] - It plans to dynamically optimize its program offerings and continuously improve teaching quality to establish itself as a globally recognized educational brand [4]

Group 1 - The company reported a revenue of 1.247 billion RMB for the six months ending February 28, 2025, representing a year-on-year increase of 7.5% [1] - The profit attributable to the company's owners for the period was 244 million RMB, with a basic earnings per share of 20.98 cents, and an interim dividend of 6.6 Hong Kong cents per share was proposed [1] - The revenue increase was primarily due to a rise in student enrollment at Huashang Vocational College and Urban Vocational College, as well as an increase in average tuition fees in Chinese schools [1] Group 2 - Looking ahead, the company aims to capitalize on the opportunities presented by the industrial upgrade in the Greater Bay Area and the development of strategic emerging industries [2] - The company plans to focus on high-quality development in higher vocational education during the critical fifteen-year window, embracing demands in high-end manufacturing, new engineering, and health industries [2] - Key areas of development will include "AI," "new energy vehicles," and "smart healthcare," with an emphasis on deepening industry-education integration and collaborating with leading enterprises to establish industry colleges [2]

Financial Performance - Revenue for the six months ended February 28, 2025, was RMB 1,247,486,000, representing a 7.5% increase from RMB 1,160,191,000 in the same period of 2024[3] - Gross profit decreased by 16.5% to RMB 482,814,000 from RMB 578,009,000 year-on-year[3] - Profit attributable to owners of the company fell by 28.0% to RMB 243,683,000 compared to RMB 338,242,000 in the previous year[3] - Adjusted net profit attributable to owners decreased by 25.3% to RMB 258,543,000 from RMB 346,204,000[3] - Basic earnings per share dropped by 29.5% to RMB 20.98 from RMB 29.76[3] - Total comprehensive income for the period was RMB 284,621,000, down from RMB 375,066,000 in the previous year[4] - The profit before tax for the six months ended February 28, 2025, was RMB 286,011,000, compared to RMB 386,460,000 for the same period in 2024, indicating a decrease of 26%[20] - The group reported a gross profit of approximately RMB 482.8 million for the six months ended February 28, 2025, a decrease of 16.5% year-over-year, attributed to the commitment to an intensive development strategy[48] - The adjusted net profit attributable to the company's owners was approximately RMB 258.5 million, a decrease of 25.3% compared to the same period last year[52] Student Enrollment and Education Quality - The number of enrolled students increased by 4.4% to 100,300 from 96,100[3] - The group recognized tuition fees of RMB 1,062,894,000 for the six months ended February 28, 2025, compared to RMB 1,018,416,000 for the same period in 2024, representing an increase of 4.1%[16] - The company reported a steady increase in student enrollment, reflecting its commitment to high-quality education and investment in teaching resources[36] - The number of enrolled students as of February 28, 2025, was approximately 31,190 at Huashang College, 25,680 at Huashang Vocational College, and 25,870 at Urban Vocational College, showing a significant increase from the previous year[43] - The company plans to focus on high-quality development in higher vocational education, particularly in emerging fields such as AI, new energy vehicles, and smart healthcare, to align with industry demands in the Greater Bay Area[45] Financial Position and Liabilities - Non-current assets increased to RMB 6,948,001,000 from RMB 6,638,518,000[6] - Current liabilities decreased to RMB 2,527,368,000 from RMB 2,728,200,000[6] - Total equity attributable to owners of the company rose to RMB 4,287,457,000 from RMB 4,065,758,000[7] - As of February 28, 2025, the group has a net current liability of RMB 283,830,000[11] - The group's current assets were approximately RMB 2,070.8 million as of February 28, 2025, down from RMB 2,335.8 million as of August 31, 2024[58] - The capital debt ratio as of February 28, 2025, was 37.5%, an increase from 34.5% as of August 31, 2024[58] Investments and Expenditures - The company invested RMB 261,186,000 in property, plant, and equipment during the reporting period, compared to RMB 278,114,000 for the six months ending February 29, 2024[30] - Capital expenditures for the six months ended February 28, 2025, totaled approximately RMB 421.5 million, primarily due to land use rights acquisition and construction of new teaching facilities[55] - The group has approximately 8,182 employees, with employee costs (including director remuneration) amounting to RMB 472.7 million for the six months ended February 28, 2025[64] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.066 per share for the six months ending February 28, 2025, totaling approximately HKD 77,763,000, compared to HKD 0.096 per share and HKD 109,614,155 for the same period in 2024[25] - The board has declared an interim dividend of HKD 0.066 per share for the six months ended February 28, 2025, compared to HKD 0.096 per share for the same period in 2024[67] Strategic Initiatives and Collaborations - The company has established partnerships with leading enterprises such as Huawei, Baidu, and JD.com to create a collaborative education platform that integrates industry, academia, and research[38] - The company has launched a series of innovative workshops, including AI-driven integrated marketing communication and ESG workshops, to enhance students' practical skills and employability[40] - The company aims to further expand the coverage of its workshops and deepen the collaboration between schools and enterprises to create a closed loop of "learning-practice-employment" for high-quality applied talent cultivation[41] - The company is committed to becoming a globally recognized education brand while creating long-term sustainable value for shareholders[45] Operational Costs and Efficiency - For the six months ended February 28, 2025, the group recorded operating costs of approximately RMB 764.7 million, an increase of 31.3% compared to the same period last year, primarily due to strategic investments in talent development and teaching quality[47] - Employee costs totaled RMB 472,725,000 for the six months ended February 28, 2025, an increase from RMB 410,961,000 in the previous year, which is a rise of 15.1%[23] - Sales expenses amounted to approximately RMB 19.8 million, a decrease of 31.4% compared to the previous year, mainly due to reduced enrollment expenses[49] Compliance and Governance - The company has complied with the Corporate Governance Code during the reporting period[72] - The audit committee has reviewed the unaudited consolidated interim results for the six months ended February 28, 2025[76]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $150 million for the fiscal year 2024[1]. - The company expects a revenue growth guidance of 10-12% for the next fiscal year, projecting revenues between $165 million and $168 million[1]. - The company reported a net profit margin of 12%, reflecting improved operational efficiency compared to the previous year[1]. - The company's revenue increased by 17.2% year-on-year to approximately RMB 2,312.0 million[13]. - Gross profit rose by 10.4% year-on-year to approximately RMB 1,124.1 million[13]. - Profit attributable to shareholders grew by 15.6% year-on-year to approximately RMB 714.7 million[13]. - The group achieved a profit of RMB 804.1 million for the year ended August 31, 2024, compared to RMB 718.8 million in the previous year, reflecting a positive growth trend[65]. - Adjusted net profit attributable to the company's owners was RMB 746.7 million for the year ended August 31, 2024, compared to RMB 667.8 million in the previous year[65]. - The group recorded a pre-tax profit of approximately RMB 809.0 million for the year ended August 31, 2024, representing a 12.4% increase compared to the same period last year[106]. Student Enrollment and Development - User enrollment grew by 20%, totaling 50,000 active students across all institutions[1]. - The total number of full-time students reached 95,630[13]. - As of August 31, 2024, the total number of enrolled students reached approximately 96,000, a year-on-year increase of about 11.0%, with full-time higher education students numbering around 77,360, up 16.3%[52]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in student enrollment in the region by 2025[1]. - The company established partnerships with 1,320 enterprises to create off-campus practice bases, enhancing the integration of education and industry[50]. New Products and Services - New product offerings include a digital learning platform, which is anticipated to contribute an additional $5 million in revenue in the first year[1]. - A strategic acquisition of a local education provider was completed, expected to enhance the company's service offerings and add $3 million in annual revenue[1]. - The company is actively exploring the application of artificial intelligence technology in teaching practices to innovate teaching models and improve operational efficiency[56]. Financial Management and Costs - Research and development expenses increased by 30%, amounting to $10 million, focusing on innovative educational technologies[1]. - The company's operating costs amounted to approximately RMB 1,187.8 million, an increase of 24.4% year-on-year, leading to a gross profit of approximately RMB 1,124.1 million, which is a 10.4% increase from the previous year[58]. - The gross profit margin for the fiscal year was 48.6%, a slight decrease of 3.0 percentage points year-on-year, attributed to increased investments in educational quality and infrastructure[58]. - Administrative expenses for the year ended August 31, 2024, were approximately RMB 357.4 million, a 21.4% increase year-on-year, primarily due to the hiring of additional administrative and senior management personnel[84]. - Financing costs for the year ended August 31, 2024, amounted to approximately RMB 32.2 million, a 22.6% increase from the previous year, attributed to a decrease in capitalized interest expenses[85]. Corporate Governance - The company has adopted the Corporate Governance Code and has complied with its provisions throughout the fiscal year ended August 31, 2024[123]. - The board of directors is responsible for the overall leadership of the group and has established three committees to oversee specific areas of governance[124]. - The company has adopted a "Board Diversity Policy" to ensure diverse perspectives, including gender diversity, among board members[131]. - The board currently consists of three executive directors, one non-executive director, and three independent non-executive directors, reflecting a diverse composition in terms of gender, age, culture, and professional experience[147]. - The company has held four regular board meetings during the fiscal year ending August 31, 2024, and conducted its annual general meeting on January 19, 2024[163]. Social Responsibility and ESG - The group funded over 29,000 impoverished students with a total amount exceeding RMB 30 million during the reporting period, demonstrating its commitment to social responsibility[75]. - The group received several awards for its ESG practices, including the "2023 ESG Pioneer Award" and "Best ESG Innovation Award," highlighting its leadership in sustainable development[75]. Future Plans and Strategies - The company plans to implement a new marketing strategy aimed at increasing brand awareness, with a budget allocation of $2 million for the upcoming year[1]. - The company aims to focus on high-quality development in vocational education, supported by national policies[32]. - The company is committed to expanding international educational exchanges and cooperation to cultivate innovative talents with a global perspective[30]. - The company aims to deepen cooperation with internationally renowned institutions to provide students with global educational resources and enhance employment opportunities[56].

Key Points Industry and Company * **Industry**: Education and vocational training * **Company**: Zhongke Education Group (Zhongke) Core Views and Arguments * **Revenue Projections**: Zhongke expects revenue to reach between 5 billion to 6 billion in 2020, with capital expenditures (CAPEX) expected to reach 2022 and 2023 levels by 2025. * **Debt Interest Rates**: Zhongke's debt interest rate has gradually decreased from 6.5% to 3.89% compared to the same period last year. * **Government Support**: The Chinese government has been emphasizing high-quality development in education, with policies supporting vocational education and internationalization. * **International Expansion**: Zhongke has established schools in Australia, Singapore, and Hong Kong, offering non-degree education and promoting international exchange programs. * **Industry Collaboration**: Zhongke collaborates with industry leaders to establish industry colleges, focusing on applied talent training and practical teaching. * **Internationalization**: Zhongke aims to expand its international presence by establishing teaching centers and campuses in countries along the Belt and Road Initiative. Other Important Points * **Student Numbers**: Zhongke has announced over 150,000 students in its schools in London and Hubei, with alumni associations established and continuously growing. * **Talent Development**: Zhongke focuses on cultivating industry leaders and innovative talents, with a focus on integrating technology and AI into education. * **ESG and Sustainability**: Zhongke has been actively involved in ESG initiatives and has established a BGF workshop to train students in sustainability reporting. * **Innovation and Creativity**: Zhongke encourages innovation and creativity among students, with projects and competitions in various fields. * **Continuous Investment**: Zhongke has maintained high-quality development over the past 20 years, investing in curriculum, faculty, campus environment, and hardware. * **International Partnerships**: Zhongke has established partnerships with renowned universities and companies to expand its international presence and share educational resources. * **Community Engagement**: Zhongke organizes activities for students to engage with the community and promote social development. Future Outlook * **Confidence in the Industry**: Zhongke is optimistic about the future of the vocational education industry, with a focus on high-quality development, internationalization, and talent cultivation. * **Expansion Plans**: Zhongke plans to expand its campus network, deepen industry collaboration, and promote internationalization. * **Long-term Vision**: Zhongke aims to become a leading Chinese vocational education brand with a global presence.

Financial Performance - Revenue for the year ended August 31, 2024, was RMB 2,311,986 thousand, representing a 17.2% increase from RMB 1,972,982 thousand in 2023[3] - Gross profit for the same period was RMB 1,124,144 thousand, up 10.4% from RMB 1,018,393 thousand in the previous year[3] - Profit attributable to owners of the company was RMB 714,746 thousand, reflecting a 15.6% increase compared to RMB 618,370 thousand in 2023[3] - Adjusted net profit attributable to owners was RMB 746,708 thousand, an increase of 11.8% from RMB 667,825 thousand in the prior year[3] - Basic earnings per share rose to RMB 62.86, up 11.9% from RMB 56.19 in 2023[3] - Total comprehensive income for the year was RMB 800,321 thousand, compared to RMB 720,584 thousand in 2023[6] - The group reported a segment profit of RMB 836,441,000 for the year ending August 31, 2024, compared to RMB 756,127,000 for the previous year, indicating a growth of 10.6%[31] - The group achieved a pre-tax profit of approximately RMB 809.0 million, representing a 12.4% increase compared to the previous year[84] - The total profit for the year was RMB 804.1 million, up from RMB 718.8 million in the previous year[87] Student Enrollment and Education Services - The number of enrolled students increased to 95,630, representing an 11.0% growth from 86,173 in the previous year[3] - The total number of full-time students reached approximately 96,000 as of August 31, 2024, reflecting an 11.0% year-on-year growth, with higher education enrollment increasing by 16.3% to about 77,360 students[78] - Tuition fees recognized during the period amounted to RMB 2,028,973,000, up from RMB 1,735,902,000, reflecting a growth of 16.9%[27] - Accommodation fees recognized during the period were RMB 195,470,000, compared to RMB 171,612,000, representing a 13.9% increase[27] Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.10 per share, subject to shareholder approval at the annual general meeting[3] - The total dividend declared for the interim period was RMB 100,032,000 in 2024, compared to RMB 93,074,000 in 2023, which is an increase of about 7.9%[45] - The company plans to propose a final dividend of HKD 0.10 per share for the year ending August 31, 2024, compared to HKD 0.09 per share for the previous year, which is an increase of approximately 11.1%[47] - The scrip dividend plan is subject to approval at the annual general meeting and requires compliance with relevant legal procedures[110] - The expected date for the distribution of the final dividend and new shares is around May 30, 2025, pending the fulfillment of all conditions[110] Assets and Liabilities - Non-current assets increased to RMB 6,638,518 thousand from RMB 6,370,998 thousand in the previous year[13] - Total liabilities decreased to RMB 2,728,200 thousand from RMB 2,572,455 thousand in 2023[13] - The net current liabilities as of August 31, 2024, were approximately RMB 265,170,000, with contract liabilities of RMB 1,575,884,000 included in current liabilities[21] - The debt-to-equity ratio as of August 31, 2024, was 34.5%, down from 42.9% the previous year[95] Operating Costs and Expenses - Operating costs amounted to approximately RMB 1,187.8 million, a 24.4% increase year-on-year, driven by rising employee costs and other operational expenses[81] - The total employee costs increased to RMB 803,102,000 in 2024, up from RMB 660,541,000 in 2023, reflecting a growth of approximately 21.5%[40] - Administrative expenses increased by 21.4% year-on-year to approximately RMB 357.4 million, mainly due to the hiring of additional administrative and senior management personnel[83] Corporate Governance and Compliance - The audit committee has reviewed the audited consolidated financial statements for the year ending August 31, 2024, and discussed internal controls and financial reporting matters[120] - The external auditor, Deloitte, confirmed that the financial figures align with the audited consolidated financial statements approved by the board on November 29, 2024[121] - The company acknowledges the importance of good corporate governance and has adopted the Corporate Governance Code as its own[115] ESG and Community Engagement - The company received multiple awards for its ESG practices, including the "2023 ESG Pioneer Award" and "Best ESG Innovation Award" in 2023[71] - The company funded over 29,000 impoverished students with a total amount exceeding RMB 30 million[71] - The company emphasizes the importance of ESG and has conducted five ESG-related seminars during the reporting period[71] Strategic Initiatives and Future Plans - The company established partnerships with 1,320 enterprises to create off-campus practice bases, enhancing the integration of education and industry[68] - The company expanded its international cooperation by partnering with 51 overseas universities in countries such as the USA, UK, Canada, Japan, and Australia[70] - The company organized 65 study tours for students and teachers, with over 4,000 participants, to enhance international exposure[70] - The group plans to enhance its educational offerings by introducing new programs and upgrading traditional ones to align with industry trends and demands[78] - The group aims to leverage advancements in artificial intelligence to innovate teaching practices and improve operational efficiency[78]