School Network and Enrollment - The company operates 244 schools and centers with an average of 142,765 students enrolled and customers registered for the year ended 31 December 2022[4] - The culinary arts segment has 77 schools under the New East brand with 60,209 average students enrolled[7] - The information technology and internet technology segment has 38 schools under the Xinhua Internet brand with 41,947 average students enrolled[7] - The auto services segment has 39 schools under the Wontone brand with 33,898 average students enrolled[7] - The fashion & beauty segment has 3 schools under the On-mind brand with 855 average students enrolled[7] - The company's nationwide school network covers most provinces in mainland China and Hong Kong[4] - The number of schools in operation reached 244, including 77 under New East Culinary Education, 46 under Omick Education of Western Cuisine and Pastry, 20 under Cuisine Academy, 38 under Xinhua Internet Technology Education, 21 under Wisezone Data Technology Education, 39 under Wontone Automotive Education, and 3 under On-mind Fashion & Beauty Education as of December 31, 2022[9] - The company operates 244 vocational education institutions across China and Hong Kong as of December 31, 2022, under seven renowned brands including New East Culinary Education and Xinhua Internet Technology Education[26] - New East Culinary Education has 77 schools offering comprehensive culinary training programs, including Chinese and Western culinary skills[27] - Omick Education of Western Cuisine and Pastry operates 46 schools providing high-quality Western-style catering education, focusing on pastry and food[27] - Xinhua Internet Technology Education has 38 centers offering a wide range of IT and internet technology-related training programs[29] - Wisezone Data Technology Education operates 21 centers providing short-term IT and internet technology programs to college and university students[29] - Wontone Automotive Education has 39 centers focusing on hands-on auto repair skill training and other auto services[29] - 13 new schools were added in 2022, bringing the total number of institutions nationwide to 244[15] - The company operates 46 senior technical schools and secondary vocational technical schools, with 3 new schools established in 2022[191] Financial Performance - Revenue for the year ended December 31, 2022, was RMB 3,819 million, a decrease from RMB 4,140 million in 2021[10] - Gross profit for 2022 was RMB 1,891 million, down from RMB 2,112 million in 2021[10] - Net profit for the year 2022 was RMB 367 million, compared to RMB 302 million in 2021[10] - Adjusted net profit for 2022 was RMB 266 million, a decrease from RMB 432 million in 2021[10] - Adjusted EBITDA for 2022 was RMB 1,189 million, down from RMB 1,380 million in 2021[10] - Net assets as of December 31, 2022, were RMB 5,699 million, slightly down from RMB 5,739 million in 2021[10] - Total assets as of December 31, 2022, were RMB 9,473 million, compared to RMB 9,636 million in 2021[10] - Main operating revenue for 2022 was RMB3,819 million, a year-on-year decrease of 7.7% compared to 2021[15] - Net profit for 2022 was approximately RMB367 million, a year-on-year increase of 21.3% compared to 2021[15] - Adjusted net profit for 2022 was RMB266 million, a year-on-year decrease of 38.4% compared to 2021[15] - Total revenue for 2022 decreased by 7.7% to RMB 3,819.02 million compared to RMB 4,139.70 million in 2021[50] - The average tuition/service fee per student/customer decreased by 6.5% to RMB 26.4 thousand in 2022 from RMB 28.2 thousand in 2021[50] - Revenue from the Culinary Arts division decreased by 13.3% to RMB 2,242.55 million in 2022, with New East revenue down 9.2% to RMB 1,891.67 million[50] - The Information Technology and Internet Technology division saw a 6.5% revenue decline to RMB 781.25 million in 2022[50] - Auto Services division revenue increased by 13.2% to RMB 718.36 million in 2022, driven by Wontone's performance[50] - Cost of revenue decreased by 4.9% to RMB 1,928 million in 2022 from RMB 2,028 million in 2021[53] - Gross profit margin declined to 49.5% in 2022 from 51.0% in 2021, with gross profit decreasing to RMB 1,891 million[58] - The Culinary Arts division's gross profit margin decreased to 50.9% in 2022 from 52.4% in 2021[59] - The Information Technology and Internet Technology division maintained a strong gross profit margin of 52.5% in 2022[59] - Auto Services division improved its gross profit margin to 48.7% in 2022 from 44.4% in 2021[59] - Other income and expenses for 2022 amounted to approximately RMB107 million, a decrease from RMB131 million in 2021, primarily due to a reduction in interest income from entrusted loans by approximately RMB20 million[60] - The company recorded net gains of approximately RMB136 million in 2022, compared to net losses of RMB52 million in 2021, mainly due to net foreign exchange gains of RMB143 million from the appreciation of Hong Kong dollars against Renminbi[60] - Selling expenses decreased to approximately RMB946 million in 2022 from RMB988 million in 2021, primarily due to tighter control on advertising costs[61] - Administrative expenses decreased to approximately RMB512 million in 2022 from RMB542 million in 2021, mainly due to a reduction in equity-settled share-based payment expenses from RMB56 million to RMB43 million[61] - Finance costs for 2022 were approximately RMB156 million, representing interest expenses on lease liabilities following the adoption of HKFRS 16, compared to RMB161 million in 2021[61] - Adjusted net profit for 2022 was RMB266,046 thousand, excluding non-cash share-based payments and net foreign exchange gains/losses, compared to RMB432,009 thousand in 2021[63] - Adjusted EBITDA for 2022 was RMB1,188,512 thousand, derived from adjusted net profit excluding finance costs, income tax expenses, and depreciation expenses, compared to RMB1,380,229 thousand in 2021[63] Student Enrollment and Tuition Fees - Number of new students enrolled in 2022 was 134,347, a year-on-year decrease of 12.9% compared to 2021[15] - Average number of students enrolled nationwide in 2022 was approximately 143,000[15] - New East long-term student enrollment decreased by 13.2% to 27,090 in 2022 compared to 31,224 in 2021[33] - Omick short-term student enrollment dropped by 32.3% to 10,592 in 2022 from 15,648 in 2021[34] - Cuisine Academy short-term student enrollment declined by 34.3% to 9,189 in 2022 from 13,980 in 2021[34] - Xinhua Internet long-term student enrollment increased by 0.6% to 23,437 in 2022 compared to 23,307 in 2021[34] - Wontone long-term student enrollment rose by 10.6% to 17,490 in 2022 from 15,817 in 2021[35] - On-mind short-term student enrollment grew by 24.8% to 1,158 in 2022 from 928 in 2021[35] - The Group's total student enrollment decreased by 12.9% to 134,347 in 2022 from 154,259 in 2021[35] - New East average long-term student enrollment dropped by 5.7% to 55,608 in 2022 from 58,951 in 2021[38] - New East three-year long-term student enrollment increased by 20.5% to 27,806 in 2022 from 23,067 in 2021[38] - New East short-term student enrollment decreased by 12.6% to 4,601 in 2022 from 5,266 in 2021[38] - Omick's long-term courses (one to less than two years) saw a 27.5% increase in student enrollment, from 1,125 in 2021 to 1,434 in 2022[39] - Omick's short-term courses experienced a 40.3% decline in student enrollment, dropping from 5,060 in 2021 to 3,019 in 2022[39] - Cuisine Academy's short-term courses saw a 29.4% decrease in student enrollment, from 1,376 in 2021 to 972 in 2022[39] - Xinhua Internet's long-term courses (three years) increased by 13.6%, from 27,398 in 2021 to 31,117 in 2022[39] - Wontone's long-term courses (three years) grew by 34.2%, from 19,938 in 2021 to 26,763 in 2022[40] - On-mind's long-term courses (three years) increased by 85.4%, from 254 in 2021 to 471 in 2022[40] - The Group's total student enrollment decreased by 1.1%, from 144,365 in 2021 to 142,765 in 2022[41] - The Group's long-term courses saw a 1.2% increase in student enrollment, from 128,996 in 2021 to 130,491 in 2022[41] - New East's long-term tuition fees ranged from RMB 8,200 to 101,000 in 2022, compared to RMB 8,833 to 102,320 in 2021[43] - Xinhua Internet's short-term tuition fees ranged from RMB 499 to 36,000 in 2022, compared to RMB 240 to 48,000 in 2021[43] - Long-term program tuition fees for Wontone ranged from RMB6,800 to RMB38,800 in both 2021 and 2022[44] - Short-term program tuition fees for Wontone ranged from RMB800 to RMB37,500 in both 2021 and 2022[44] - Long-term program tuition fees for On-mind increased from RMB13,800-23,900 in 2021 to RMB13,900-27,800 in 2022[44] - Short-term program tuition fees for On-mind ranged from RMB3,600-29,600 in 2021 and RMB5,800-21,800 in 2022[44] Employment and Entrepreneurship Rates - Recommended employment and entrepreneurship rate for Wontone long-term program graduates reached 96.3% in 2022[46] - Recommended employment and entrepreneurship rate for On-mind long-term program graduates reached 95.5% in 2022[46] - New East and Xinhua Internet long-term program graduates achieved recommended employment and entrepreneurship rates of 94.0% and 94.1% respectively in 2022[46] - Omick long-term program graduates achieved a recommended employment and entrepreneurship rate of 92.3% in 2022[46] - The company provides graduate placement and entrepreneurial services to all long-term program students, with rates calculated based on students hired through these services[47] Expansion and Development Plans - The company plans to establish five self-owned regional centers in Beijing, Shanghai, Guangzhou, Chengdu, and Xi'an, equipped with advanced teaching and training facilities[83] - The company has acquired land in Guiyang and Henan for the construction of provincial education bases to reduce rental expenses and improve long-term student stability[83] - The company aims to expand its school network to cover all provincial capital cities and densely populated provinces with unmet demand for skilled workers[83] - The company plans to diversify course offerings in culinary arts, IT, auto services, and fashion/beauty, and explore new industry sectors for vocational training[84] - The company's regional center in Chengdu and education base in Shandong have already commenced operations[83] - The company has fully utilized the net proceeds of RMB 4,223.185 million from its initial public offering as of 31 December 2022, with 45% allocated for the acquisition of land and construction facilities to establish regional centers and provincial education bases[92] - 15% of the net proceeds (RMB 633.478 million) were used to establish schools in selected markets, while another 15% (RMB 633.478 million) was allocated for the establishment of new majors and curriculum innovation[92] - 15% of the net proceeds (RMB 633.478 million) were utilized for the construction and upgrade of school facilities and the purchase of teaching equipment[92] - 10% of the net proceeds (RMB 422.318 million) were allocated for working capital and general corporate purposes[92] Corporate Governance and Leadership - Mr. Wu Wei, aged 55, is the founder, executive director, and chairman of the board, responsible for the overall management and strategic development of the company[98] - Mr. Xiao Guoqing, aged 54, is an executive director and deputy chairman of the board, responsible for business management and providing opinions to the board[98] - Mr. Wu Junbao, aged 57, is a founder and non-executive director, responsible for providing opinions and judgments to the board[99] - Mr. Lu Zhen, aged 47, is a non-executive director, responsible for providing opinions and judgments to the board[99] - Mr. Wu Wei has over 30 years of experience in education and holds a senior economist qualification[98] - Mr. Xiao Guoqing has over 20 years of experience in education and holds a senior economist qualification[98] - Mr. Wu Junbao has over 30 years of experience in education and holds a senior economist qualification[99] - Mr. Lu Zhen has over 10 years of experience in education and holds a master's degree in business administration[99] - Mr. Wu Wei graduated from Tsinghua University with an executive master of business administration in 2009[98] - Mr. Xiao Guoqing graduated from Renmin University of China with a master of business administration in 2004 and an executive master of business administration in 2009[98] - Mr. Hung Ka Hai, Clement has served as an independent non-executive director of Gome Finance Technology Company Limited since 31 October 2016[100] - Mr. Hung served as an independent non-executive director of SY Holdings Group Limited from 19 June 2017 to 15 July 2022[101] - Mr. Hung has been a non-executive director of High Fashion International Limited since 1 December 2017[101] - Mr. Hung served as an independent non-executive director of Zhongchang International Holdings Group Limited from 12 January 2018 to 15 June 2020[101] - Mr. Hung has been an independent non-executive director of Aoyuan Healthy Life Group Company Limited since 22 February 2019[101] - Mr. Hung has been an independent non-executive director of Huarong International Financial Holdings Limited since 13 December 2019[101] - Mr. Hung served as an independent non-executive director of Tibet Water Resources Limited from 31 December 2019 to 30 June 2021[101] - Mr. Hung has been an independent non-executive director of Skyworth Group Limited since 18 March 2020[101] - Mr. Hung has been an independent non-executive director of Hong Kong Aerospace Technology Group Limited since 16 July 2021[101] - Mr. Hung has been an independent supervisor of Ping An Insurance (Group) Company of China, Ltd. since 18 July 2022[101] - Dr. Zhu Guobin, aged 61, is an independent non-executive Director of the company with extensive academic and legal expertise[102] - Dr. Zang Yunzhi, aged 43, is an independent non-executive Director since May 2021, holding a PhD in Business Administration (Accounting) from Duke University[103] - Mr. Au Yeung Siu Kei, aged 47, is the Chief Financial Officer responsible for the company's financial management, with over 20 years of experience in auditing and accounting[104] - Mr. Mao Chaosheng, aged 43, is the Joint Company Secretary with over 19 years of experience in administrative and human resources management[104] - Ms. Ng Sau Mei was appointed as Joint Company Secretary on December 31, 2021, with over 20 years of experience in corporate secretarial services[104] - The company has complied with all the code provisions set out in the Corporate Governance Code for the year ended 31 December 2022[105] - The Board held four meetings during the year, approving interim results and assessing business development and performance[107] - All Directors attended 4 out of 4 Board meetings, demonstrating full commitment[109] - The Board ensures timely provision of necessary information to members to enable effective discharge of duties[111] - The company is committed to enhancing corporate governance practices and regularly reviews them to align with statutory and professional standards[105] - The Board is responsible for formulating the Group's long-term strategy, approving dividends, and reviewing interim and annual reports[106] - Independent Non-executive Directors ensure high standards of financial and management reporting and provide a balanced composition in the Board[105] - The Board monitors the performance of senior management and reviews material acquisitions and disposals of assets[106] - The Chairman held a meeting with Independent Non-executive Directors without the presence of other Directors[110] - The company maintains a clear division of responsibilities between the Board and management, with the Board providing high-level guidance and oversight[106] - The company has no CEO, and daily operations are managed by an experienced management team[112][114] - The company has three Independent Non-executive Directors, all confirmed to be independent[113][115] - Directors are appointed for specific terms and subject to retirement by rotation and re-election at annual general meetings[116][117] - One-third of the Directors must retire and be eligible for re-election at each annual general meeting[117] - New Directors are introduced to the Group's major business activities and their responsibilities upon appointment[117] -

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 3,819 million, a decrease of 7.7% from RMB 4,140 million in 2021[2] - Gross profit decreased to RMB 1,891 million, down 10.5% from RMB 2,112 million in 2021[2] - Net profit increased to RMB 367 million, up 21.3% from RMB 302 million in 2021[2] - Adjusted net profit was RMB 266 million, a decrease of 38.4% from RMB 432 million in 2021[2] - Total revenue decreased by 7.7% from RMB 4,140 million in the year ended December 31, 2021, to RMB 3,819 million in the year ended December 31, 2022, due to a 12.9% decline in new student enrollments and new customer registrations[56] - The company reported a basic earnings per share of RMB 16.85, compared to RMB 13.79 in 2021, reflecting an increase of 22.4%[5] - The company reported a net profit for the year of RMB 302,166 thousand, up from RMB 366,572 thousand in the previous year, reflecting a decrease of approximately 17.6%[20] Customer Engagement - New training participants and new customer registrations decreased to 134,347, down 12.9% from 154,259 in 2021[2] - The total number of new training participants for the group decreased by 12.9% to 134,347 in 2022 from 154,259 in 2021[49] - Average customer registrations for the group decreased by 1.1% to 142,765 in 2022 from 144,365 in 2021[49] - New registrations for long-term courses at New Oriental Cooking Education saw a decline of 13.2%, from 31,224 in 2021 to 27,090 in 2022[44] - The number of new registrations for short-term courses at Oumichi Western Pastry and Cuisine Education decreased by 32.3%, from 15,648 in 2021 to 10,592 in 2022[44] - The number of new registrations for short-term courses at Huaxin Zhirun DT Talent Training Base decreased by 25.7%, from 4,073 in 2021 to 3,027 in 2022[44] - New customer registrations for the culinary academy increased to 21 in 2022[46] Operational Metrics - The number of schools and centers increased to 244, up from 231 in 2021, representing a growth of 5.6%[2] - The company operated 244 vocational education institutions across various brands in China, including 77 under New Oriental Cooking Education[41] - Long-term course participants in the group increased by 1.2% to 130,491 in 2022 from 128,996 in 2021[49] - Long-term course participants in the automotive services segment increased by 21.6% to 31,855 in 2022 from 26,186 in 2021[48] - Short-term course participants in the automotive services segment increased by 2.0% to 2,043 in 2022 from 2,002 in 2021[48] - Long-term course participants in the fashion beauty segment increased by 96.1% to 498 in 2022 from 254 in 2021[48] Financial Position - Total assets decreased to RMB 9,473 million, down 1.7% from RMB 9,636 million in 2021[2] - Cash and cash equivalents decreased to RMB 1,435 million, down from RMB 2,212 million in 2021[8] - The company's total liabilities increased to RMB 683,580,000 in 2022 from RMB 676,006,000 in 2021, reflecting a slight increase of about 1.1%[33] - The company reported a decrease in trade payables to RMB 116,354,000 in 2022 from RMB 136,222,000 in 2021, a reduction of approximately 14.6%[33] - The fair value of other financial assets measured at fair value through profit or loss increased to RMB 638,644,000 in 2022 from RMB 612,268,000 in 2021, an increase of about 4.3%[31] - Total cash and bank balances were approximately RMB 3,191 million as of December 31, 2022, down from RMB 4,356 million in 2021, representing 33.7% of total assets[72] Strategic Initiatives - The company plans to continue expanding its educational services and enhancing its technology offerings in the coming year[4] - The company aims to bridge the gap between employers and students in vocational skills education, focusing on high-demand sectors[41] - The company plans to establish five regional centers in major geographical areas of China, including Beijing, Shanghai, Guangzhou, Chengdu, and Xi'an, to enhance teaching and training facilities[81] - The company intends to diversify its course offerings across four industry sectors: culinary arts, information technology, automotive services, and fashion, to align with market trends and demands[83] - The company continues to expand its campus network across most provinces in mainland China and Hong Kong[41] Cost Management - Cost of revenue decreased by 4.9% from approximately RMB 2,028 million in 2021 to approximately RMB 1,928 million in 2022[59] - Sales expenses decreased to approximately RMB 946 million for the year ended December 31, 2022, from approximately RMB 988 million in 2021, mainly due to stricter control over advertising costs[66] - Administrative expenses decreased to approximately RMB 512 million for the year ended December 31, 2022, from approximately RMB 542 million in 2021, primarily due to a reduction in equity-settled share-based payment expenses[67] - Financial costs were approximately RMB 156 million for the year ended December 31, 2022, compared to RMB 161 million in 2021[68] Governance and Compliance - The company has adhered to all principles of the Corporate Governance Code during the year ending December 31, 2022, ensuring compliance with statutory and professional standards[91] - The audit committee consists of three independent non-executive directors, ensuring the integrity and accuracy of the financial statements for the year ending December 31, 2022[94] - The annual general meeting is scheduled for May 25, 2023, with a record date for eligible shareholders set for May 25, 2023[95][96] Future Outlook - The company will continue to monitor the impact of the COVID-19 pandemic and has developed comprehensive online learning plans to mitigate potential disruptions[79] - The management is closely monitoring foreign exchange risks and will consider hedging strategies as necessary[77]

Education Operations - As of December 31, 2021, China East Education operated 231 schools and centers with an average enrollment of 144,365 students[3]. - The culinary arts segment, under the New East brand, had 72 schools and an average of 64,217 students enrolled[9]. - The information technology and internet technology segment, represented by Xinhua Internet Technology, operated 33 schools with 43,070 average students enrolled[9]. - The auto services segment, under Wontone brand, had 38 schools with an average enrollment of 28,188 students[9]. - The fashion and beauty segment, represented by On-mind, operated 1 school with 496 average students enrolled[9]. - The company focuses on four main industry sectors: culinary arts, information technology, auto services, and fashion & beauty[3]. - The average number of students enrolled across all segments for the year ended December 31, 2021, was 144,365[9]. - The comprehensive nationwide school network covers most provinces in mainland China and Hong Kong[3]. - The company aims to enhance employability through innovative vocational training education[3]. - The number of schools in operation reached 206 as of December 31, 2020, with a successful issuance of the first batch of vocational skill level certificates in China[10]. Financial Performance - Revenue for the year ended December 31, 2021, was RMB 4,140 million, an increase of 13.4% from RMB 3,649 million in 2020[11]. - Gross profit for 2021 was RMB 2,112 million, up from RMB 1,969 million in 2020, reflecting a gross margin improvement[11]. - Net profit for the year was RMB 302 million, compared to RMB 258 million in 2020, indicating a growth of 17.0%[11]. - Adjusted net profit for 2021 was RMB 432 million, down from RMB 500 million in 2020[11]. - Adjusted EBITDA for 2021 was RMB 1,380 million, slightly down from RMB 1,436 million in 2020[11]. - Net assets as of December 31, 2021, were RMB 5,739 million, a decrease from RMB 6,040 million in 2020[11]. - For the year ended December 31, 2021, the Group's main operating revenue was RMB 4,140 million, representing a year-on-year increase of 13.5% compared to 2020[16]. - The net profit for the year was approximately RMB 302 million, reflecting a year-on-year increase of 17.3% compared to 2020; however, the adjusted net profit was RMB 432 million, representing a year-on-year decrease of 13.6%[16]. Enrollment and Student Statistics - The number of new students enrolled was 154,259, which is a year-on-year increase of 6.0% compared to 2020[16]. - The average number of students enrolled nationwide exceeded 144,000, with a total of 231 institutions operating across the country, including 25 new institutions[17]. - New students enrollment in the Culinary Arts segment totaled 93,036 in 2021, a slight decrease of 1.1% from 94,101 in 2020[39]. - The number of new students enrolled in the Auto Services segment increased by 24.4% to 28,838 in 2021, compared to 23,176 in 2020[40]. - Long-term enrollment in the Fashion and Beauty segment surged by 122.4%, reaching 1,243 in 2021, up from 559 in 2020[40]. - The average number of students enrolled in the New East brand was 58,951 in 2021, reflecting a 1.8% increase from 57,897 in 2020[43]. - Short-term course enrollment in the Xinhua Internet brand rose by 49.6%, totaling 3,762 in 2021, compared to 2,515 in 2020[40]. - The total enrollment for the group in 2021 was 154,259, representing a 6.0% increase from 145,472 in 2020[40]. Strategic Initiatives and Expansion - The company established Anhui Xinhua Education to consolidate all schools under a single entity, enhancing operational efficiency[10]. - The company expanded its business to Hong Kong, increasing its market presence[10]. - The Group aims to further expand market share and accelerate the development of the senior technical section while enhancing skills training and enrollment scale[22]. - The construction of regional centers will be pushed forward to achieve intensive development and improve consultation efficiency[22]. - The Group plans to complete the development of preparatory colleges as scheduled and expand revenue growth through emerging businesses[22]. - The Group aims to diversify its course offerings in culinary arts, information technology, auto services, and fashion and beauty, in response to market demand and industry trends[100]. Corporate Governance - The company has complied with all code provisions set out in the Corporate Governance Code for the year ended December 31, 2021[136]. - The company is committed to enhancing its corporate governance practices to safeguard the interests of shareholders and align with statutory standards[137]. - The Company has adopted the corporate governance code and complied with all its provisions as of December 31, 2021[138]. - The Board of Directors held five meetings during the year, focusing on approving interim results and assessing business performance[142]. - The Company has established specific written terms of reference for both the Audit Committee and the Remuneration Committee, available on the Stock Exchange and Company websites[166]. Risk Management and Internal Controls - The Group's risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material adverse changes[186]. - Senior management establishes risk management policies and internal control processes to identify, evaluate, and manage risks, with significant risks reported regularly[187]. - The Company has an internal audit function to analyze and independently appraise the adequacy and effectiveness of the Group's risk management and internal control systems[188]. - The financial statements for the year ended December 31, 2021 were prepared on a going concern basis, reflecting a true and fair view of the Company's financial position[189]. Human Resources - The company has a total of 12,322 employees as of December 31, 2021[114]. - Full-time teachers and instructors make up 41.5% of the total workforce, totaling 5,114 employees[115]. - The company plans to hire additional teachers and instructors as part of its expansion strategy[117]. - Employee remuneration is based on individual qualifications, experience, performance, and market rates, including basic salaries and performance-based bonuses[117][119]. Future Outlook - The Group plans to establish five self-owned regional centers in major geographical regions of China, with the first phase of the Chengdu center expected to be completed by the end of 2022[95]. - The remaining proceeds are expected to be fully utilized within the next 3 to 5 years, subject to negotiations and governmental approvals[112]. - The Group believes its vocational education business aligns with the requirements of the Opinions and will benefit from future developments[200].

Educational Operations - As of December 31, 2020, China East Education operated 206 schools and centers with an average enrollment of 133,310 students[15]. - The vocational training education covers four main sectors: culinary arts, information technology, auto services, and fashion & beauty, with the highest enrollment in culinary arts at 63,500 students[15]. - The average number of students enrolled in the information technology and internet technology segment was 41,389, with 31 schools operating under this brand[15]. - Wontone Automotive Education had an average enrollment of 21,789 students across 33 schools[15]. - The company reported a total of 64 schools under New East Culinary Education, with an average enrollment of 63,500 students[15]. - Omick Education of Western Cuisine and Pastry operated 35 schools with an average enrollment of 4,708 students[15]. - As of December 31, 2020, the company operated 206 vocational education institutions across 29 of the 31 provinces in mainland China and Hong Kong[37]. - The company achieved a leading position in vocational training education in China, particularly in culinary arts, information technology, and auto services[38]. Financial Performance - For the year ended 31 December 2020, the Group's main operating revenue was approximately RMB 3,649 million, representing a year-on-year decrease of 6.6% compared to 2019[28]. - Net profit for the year ended 31 December 2020 was approximately RMB 258 million, down from RMB 848 million in 2019[28]. - Adjusted net profit for the year was RMB 500 million, a decrease of 44.4% from RMB 900 million in 2019[20]. - Adjusted EBITDA for the year was RMB 1,436 million, down 20.1% from RMB 1,797 million in 2019[20]. - The Group's gross profit for the year was RMB 1,969 million, down from RMB 2,280 million in 2019[20]. - Profit before taxation for the year was RMB 444 million, a decrease of 58.6% from RMB 1,070 million in 2019[20]. - The Group's net assets as of 31 December 2020 were RMB 6,040 million, down from RMB 6,120 million in 2019[21]. - The Group's revenue for the year ended 31 December 2020 was approximately RMB 3,649 million, a decrease of 6.6% compared to RMB 3,905 million in 2019[64]. - The decrease in revenue was primarily due to a 5% decline in the number of new student enrollments and new customer registrations attributed to the COVID-19 outbreak[64]. Enrollment Trends - New student enrollments for the Culinary Arts segment decreased by 11.5% from 77,448 in 2019 to 68,539 in 2020[46]. - Long-term course enrollments in the Xinhua Internet Technology segment fell by 16.4%, from 24,771 in 2019 to 20,719 in 2020[47]. - The Wontone Automotive Education segment saw a 10.8% increase in total enrollments, rising from 20,925 in 2019 to 23,176 in 2020[48]. - Overall, the total number of new students enrolled across all segments decreased by 4.7%, from 152,611 in 2019 to 145,472 in 2020[48]. - The average number of students enrolled in long-term courses decreased by 7.0% to 57,897 in 2020 from 62,281 in 2019[51]. - The average number of students enrolled in short-term courses decreased by 5.8% to 5,603 in 2020 from 5,948 in 2019[51]. Strategic Initiatives - The company aims to support the evolving workforce requirements driven by China's economic growth and urbanization[5]. - The establishment of seven renowned school brands reflects the company's commitment to vocational training education in China[5]. - The company plans to significantly increase investment in R&D funds and actively apply for national R&D projects to enhance its innovation capabilities[33]. - The company aims to improve the accuracy of advertising placement and enhance brand marketing to drive enrollment growth[32]. - The company plans to establish five self-owned regional centers in major geographical regions of China, including Beijing, Shanghai, Guangzhou, Chengdu, and Xi'an, with the first phase of the Chengdu center expected to be completed by 2022[95]. - The company aims to diversify its course offerings in culinary arts, information technology, auto services, and fashion & beauty, while also exploring new industry sectors such as artificial intelligence and healthcare[95]. Corporate Governance - The Company has complied with all code provisions set out in the Corporate Governance Code for the year ended December 31, 2020[121]. - The Board held four meetings during the year to approve interim results and assess business performance[124]. - The Company has a clear division of responsibilities between the Board and management, with day-to-day operations delegated to management teams[122]. - The Company has established various Board Committees to ensure sound corporate governance practices[140]. - The Company has provided appropriate insurance cover for Directors and Officers' liabilities to protect against potential legal actions[135]. Sustainability and Social Responsibility - The sustainability strategy focuses on solid innovation, equality, green environmental protection, and building a harmonious society[178]. - The company actively promotes energy conservation and emission reduction in its operations, contributing to environmental sustainability[178]. - The Group has gradually improved its sustainability operating system since its listing in 2019, integrating ESG requirements into its management practices[180]. - The Group aims to provide over 35 million vocational skills training opportunities and increase enrollment in vocational colleges by 2 million in the next two years[195]. - The Group's commitment to vocational education is seen as a key factor in stabilizing employment and ensuring people's livelihoods[167]. Future Outlook - The company has outlined a future outlook with a projected revenue growth of 20% for the upcoming fiscal year[113]. - New product launches are expected to contribute an additional $30 million in revenue, with a focus on innovative educational technologies[112]. - The management team emphasized the importance of digital transformation, with a goal to increase online course offerings by 40%[112]. - The Group continues to explore new modes of vocational education, integrating its vision with societal needs and government direction[167].

Educational Operations - As of June 30, 2020, the company operated 194 schools and centers with an average of 128,004 students enrolled and customers registered for the six months ended[14] - The culinary arts segment includes 59 schools under New East Culinary Education with an average of 62,841 students, and 31 schools under Omick Education with 3,484 students[14] - The information technology and internet technology segment has 30 schools under Xinhua Internet Technology Education with 40,661 students and 22 schools under Wisezone Data Technology Education with 409 students[14] - The auto services segment includes 32 schools under Wontone Automotive Education with 19,968 students enrolled[14] - The fashion and beauty segment has 1 school under On-mind Fashion & Beauty Education with 86 students[14] - The company focuses on four industry sectors: culinary arts, information technology, auto services, and fashion and beauty, supporting employability in the evolving job market[4] - The company aims to enhance its nationwide school network, covering 29 out of 31 provinces in mainland China and Hong Kong[4] - The company established On-mind Fashion & Beauty Education in January 2020, expanding its educational offerings[16] - The company has a comprehensive range of vocational training programs, including eight Chinese regional cuisines and western culinary skills[10] - The company continues to support China's workforce requirements driven by economic growth, urbanization, and industrial upgrades[4] Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 1,517 million, a decrease of 16.7% compared to RMB 1,821 million in 2019[17] - Gross profit for the same period was RMB 872 million, down 21.3% from RMB 1,107 million in 2019[17] - Net profit for the period was RMB 243 million, representing a decline of 22.1% from RMB 312 million in 2019[17] - Adjusted net profit was RMB 212 million, a significant drop of 48.0% compared to RMB 408 million in 2019[17] - As of June 30, 2020, net assets were RMB 5,981 million, down from RMB 6,120 million at the end of 2019[17] - Total assets decreased to RMB 9,241 million from RMB 9,678 million at the end of 2019[17] - The average number of students enrolled for the six months ended June 30, 2020, was 128,004, a decrease of 3.8% from 133,047 in 2019[33] - Total new students enrollment decreased by 20.2% to 60,798 in the six months ended June 30, 2020, compared to 76,208 in 2019[28] Enrollment Trends - The company reported a total of 29,111 new student enrollments in culinary arts for the six months ended June 30, 2020, a decrease of 25.8% compared to 39,226 in the same period of 2019[25] - New East Culinary Education saw a 29.7% decline in long-term program enrollments, dropping from 17,340 in 2019 to 12,183 in 2020[25] - Short-term culinary programs experienced a 22.7% decrease in enrollments, from 21,886 in 2019 to 16,928 in 2020[25] - Omick Education of Western Cuisine and Pastry reported a 6.1% increase in total enrollments, rising from 6,583 in 2019 to 6,983 in 2020[25] - Cuisine Academy's short-term program enrollments increased by 16.1%, from 4,175 in 2019 to 4,846 in 2020[25] - Long-term enrollment in the Information Technology and Internet Technology segment decreased by 29.3% to 10,999 in 2020 from 15,566 in 2019[26] - The Automotive Services segment saw a 19.2% decrease in total enrollment, dropping to 8,612 in 2020 from 10,658 in 2019[27] Strategic Initiatives - The company is focusing on enhancing its online education offerings to adapt to market changes[17] - Future outlook includes plans for market expansion and potential new product launches in the education sector[17] - The company is exploring strategic partnerships to enhance its technological capabilities in education[17] - Management emphasized the importance of cost control measures to improve profitability moving forward[17] - The company is diversifying its course offerings in culinary arts, information technology, auto services, and fashion & beauty to respond to industry trends and market demand[78] - The company is exploring new industry sectors for vocational training, including artificial intelligence and healthcare, to capture anticipated market demand growth[79] Shareholder Information - Mr. Wu Junbao holds 743,743,602 shares, representing 33.927% of the company's issued share capital[93] - Mr. Wu Wei holds 509,386,109 shares, representing 23.237% of the company's issued share capital[93] - Mr. Xiao Guoqing holds 490,017,995 shares, representing 22.353% of the company's issued share capital[93] - The board of directors proposed a final dividend of HK$460 million (approximately RMB 422 million), representing HK$0.21 per ordinary share[90] Corporate Governance - The company has complied with all code provisions set out in the Corporate Governance Code during the six months ended June 30, 2020[113] - The Board emphasizes the importance of good corporate governance for the development of the Group and safeguarding shareholder interests[113] - The company is committed to enhancing its corporate governance practices in line with statutory and professional standards[113] - The company aims to consistently review its governance practices to ensure compliance with the latest developments[113] Risk Management - The company has implemented internal control measures for managing risks related to investments in other financial assets[70] - The company did not use any financial instruments for hedging foreign exchange risk during the six months ended June 30, 2020, but management monitors exposure and considers hedging when necessary[72] - The company has no material contingent liabilities or significant litigations pending as of June 30, 2020[74] Cash Flow and Investments - Net cash from operating activities for the six months ended June 30, 2020, was RMB 175,387,000, a decrease of 80.2% from RMB 883,636,000 in 2019[147] - Net cash used in investing activities for the same period was RMB 137,068,000, significantly lower than RMB 2,848,220,000 in 2019[147] - The company reported a net cash decrease of RMB 569,704,000 in cash and cash equivalents for the six months ended June 30, 2020, compared to an increase of RMB 2,050,039,000 in 2019[147] - The company plans to utilize 45% of net proceeds (RMB 1,900,433,000) for the acquisition of land and construction facilities to establish five regional centers in Beijing, Shanghai, Guangzhou, Chengdu, and Xi'an[83] Accounting and Financial Reporting - The Group's financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[157] - The Group has applied new amendments to HKFRSs, including those related to the Covid-19 pandemic, which have had no material impact on the Group's financial positions and performance[160] - The Group's profit before taxation for the six months ended June 30, 2020, was RMB 345,892,000, with an income tax expense of RMB 103,375,000, resulting in a profit for the period of RMB 242,517,000[173]

Enrollment and Student Statistics - As of December 31, 2019, China East Education operated 177 schools and centers, with an average of 135,571 students enrolled for the year[11]. - The average number of students enrolled in the New East Culinary Education brand was 68,229, while Omick Education had 4,441 students[11]. - The company expanded its operations to include 30 schools under Wontone Automotive Education, serving an average of 21,076 students[11]. - The Xinhua Internet Technology Education brand operated 25 schools with an average enrollment of 40,142 students[11]. - The Wisezone Data Technology Education brand had 22 schools, with an average of 1,017 students registered[11]. - The number of new student enrollments and new customers registered was 152,611, reflecting a growth of 12.6% compared to 2018[1]. - New East Culinary Education had a total enrollment of 77,448 students in long-term and short-term culinary programs, reflecting an 8.6% increase from 71,335 in 2018[35]. - Omick Education of Western Cuisine and Pastry registered 12,269 new students, a 33.6% increase compared to 9,180 in 2018[38]. - Cuisine Academy saw a significant growth of 74.2% in short-term program enrollments, reaching 10,066 students in 2019[38]. - Xinhua Internet Technology Education reported 27,854 new students in long-term courses, a 14.1% increase from 24,415 in 2018[38]. - The total number of new student enrollments across all segments for 2019 was 99,783, up 15.6% from 86,293 in 2018[38]. - Long-term course enrollment for the group rose by 2.7% to 70,965 in 2019, compared to 69,099 in 2018[39]. - Short-term course enrollment increased by 22.9% to 81,646 in 2019 from 66,430 in 2018[39]. - The overall total enrollment for the group reached 135,571 in 2019, marking an 8.9% increase from 124,534 in 2018[44]. Financial Performance - Revenue for the year ended December 31, 2019, increased to RMB 3,905 million, up from RMB 3,265 million in 2018, representing a growth of 19.5%[17]. - Gross profit for the year was RMB 2,280 million, compared to RMB 1,705 million in 2018, reflecting a year-over-year increase of 33.7%[17]. - Net profit for the year reached RMB 848 million, a significant rise from RMB 515 million in 2018, marking an increase of 64.5%[17]. - Adjusted net profit for the year was RMB 900 million, up from RMB 547 million in 2018, indicating a growth of 64.4%[17]. - The Group's operating revenue reached RMB 3,905 million, representing an increase of 19.6% compared to 2018, while net profit was RMB 848 million, an increase of 64.6%[1]. - The average tuition/service fee per student/customer increased from RMB 26.1 in 2018 to RMB 28.7 in 2019, reflecting a growth of 9.8%[63]. - The cost of revenue rose from approximately RMB 1,560 million in 2018 to approximately RMB 1,625 million in 2019, representing an increase of 4.2%[66]. - The Group's gross profit for the year ended 31 December 2019 was RMB 2,279,999 million, reflecting a significant increase in profitability across various segments[71]. Strategic Initiatives and Future Plans - The company plans to continue expanding its market presence and investing in new technologies and products to drive future growth[17]. - The Group plans to accelerate school development and enhance student recruitment quality while optimizing market operations to increase revenue and profitability[22]. - The Group aims to increase research and development investment to enhance innovation capabilities and sustain core competencies for business development[23]. - The company plans to expand its school network to cover all provincial capital cities in China, targeting cities with populations over five million in densely populated provinces[94]. - The company aims to establish new programs in response to anticipated market demand growth in sectors such as beauty, artificial intelligence, and healthcare[94]. - The company plans to hire additional teachers and instructors as it expands, with recruitment channels including word-of-mouth referrals and online recruiting[101]. Governance and Management - The company has a strong governance structure with independent non-executive directors contributing to oversight and strategic direction[110]. - The financial management team is well-qualified, with members holding professional accounting qualifications and degrees from reputable institutions[112]. - The Company has complied with all code provisions set out in the Corporate Governance Code from its listing date to December 31, 2019[117]. - The Board held four meetings during the year, addressing key matters such as approving interim results and assessing business performance[120]. - The Company has established a sound corporate governance framework with various committees, including the Audit and Remuneration Committees, to oversee its operations[149]. Market and Industry Context - The Ministry of Education of the PRC published a discussion draft of the Proposed Amendments to the Vocational Education Law in December 2019, which aims to elevate vocational education to an equal status with general education[172]. - Over 90% of the Group's operations are conducted in Mainland China, and any changes in policies may adversely affect the Group's operations and results[173]. - The Company will monitor legislative developments closely and provide updates as necessary[175]. - The introduction of new legislation and rules may induce changes in market conditions that could adversely affect the Group's operating results[173]. Employee and Social Responsibility - The company is committed to fulfilling social responsibility and promoting employee benefits and development[186]. - Full-time employees in China participate in various social security plans, with contributions based on a fixed percentage of last year's average salaries[103]. - Full-time employees in Hong Kong are part of a Mandatory Provident Fund Scheme, with contributions based on a percentage of their relevant income[103]. Shareholder Engagement and Dividends - The proposed final dividend is HK$0.21 (approximately RMB0.19) per ordinary share for the year ended 31 December 2019[188]. - The Board plans to maintain distributing not less than 30% of the distributable profit of the relevant financial year as dividend[191]. - The Company has adopted a Shareholders Communication Policy to ensure equal and timely access to information[177].

Financial Performance - Revenue for the period was RMB 1,821 million, representing an increase from RMB 1,439 million in the same period of 2018, a growth of approximately 26.5%[17] - Gross profit for the period reached RMB 1,107 million, up from RMB 762 million in 2018, indicating a growth of about 45.3%[17] - Net profit for the period was RMB 312 million, compared to RMB 217 million in the previous year, reflecting a year-on-year increase of approximately 43.9%[17] - The company reported adjusted net profit of RMB 408 million, significantly higher than RMB 217 million in the prior year[17] - The Group's revenue reached RMB 1,821 million for the six months ended June 30, 2019, an increase of 26.6% compared to RMB 1,439 million for the same period in 2018[47] - The gross profit for the same period was RMB 1,107,112, representing a gross margin of 60.8% compared to 52.9% in 2018[138] - Profit before taxation was RMB 445,564, with an income tax expense of RMB 133,077, resulting in a profit of RMB 312,487 for the period[138] - The total comprehensive income for the period was RMB 312,487, compared to RMB 211,133 in the same period last year[139] Enrollment and Student Statistics - For the six months ended June 30, 2019, the average number of students enrolled was 133,047 across various training programs[12] - New student enrollments increased by 22.9% to 76,208 in the six months ended June 30, 2019, compared to 62,018 in the same period of 2018[31] - The number of new students enrolled in Culinary Arts programs rose by 24.1% to 49,984, up from 40,281 in the previous year[28] - The Information Technology and Internet Technology segment experienced a 26.3% growth in new student enrollments, totaling 15,566[30] - The total long-term course enrollment for the group was 118,454, which is a 9.1% increase from 108,580 in 2018[36] - The average number of students enrolled for the six months ended June 30, 2019, was 133,047, representing an increase of 11.3% compared to 119,502 in 2018[36] Operational Expansion - The total number of schools and centers in operation reached 163 as of June 30, 2019, including 50 schools under New East Culinary Education and 23 schools under Omick Education[16] - The company has expanded its vocational training offerings to include culinary arts, information technology, and auto services, catering to evolving workforce demands[5] - As of June 30, 2019, the company operated 168 vocational education institutions across 29 out of 31 provinces in mainland China and Hong Kong[23] - The company aims to bridge the supply and demand gap in vocational training education, addressing significant unmet demand in the market[23] - The Group plans to establish five self-owned regional centers in major geographical regions of China, including Beijing, Shanghai, Guangzhou, Chengdu, and Xi'an, to enhance its vocational training offerings[77] Financial Position and Assets - Total assets as of June 30, 2019, amounted to RMB 8,922 million, a substantial increase from RMB 2,816 million at the end of 2018[17] - As of June 30, 2019, the total equity of the Group was approximately RMB 5,481 million, a substantial increase from RMB 873 million as of December 31, 2018[68] - The current ratio improved to 2.7 times as of June 30, 2019, up from 0.7 times at the end of 2018, indicating enhanced liquidity[68] - The total of time deposits, bank balances, and cash amounted to approximately RMB 4,796 million, representing 53.8% of total assets, up from 35.0% at the end of 2018[68] Cost and Expenses - The cost of revenue increased from approximately RMB 677 million for the six months ended June 30, 2018, to approximately RMB 714 million for the six months ended June 30, 2019, representing an increase of 5.4%[52] - Selling expenses increased to RMB 319 million for the six months ended June 30, 2019, up from RMB 299 million in the same period of 2018, primarily due to expenses from newly established schools and centers[60] - Administrative expenses rose to RMB 284 million for the six months ended June 30, 2019, compared to RMB 185 million in 2018, representing approximately 15.6% of revenue, up from 12.9% in the previous year[61] Share Issuance and Corporate Governance - The Group issued 435,800,000 new shares at an issue price of HK$11.25 per share, resulting in net proceeds of approximately RMB4,177 million after deducting underwriting commissions and issuing expenses[82] - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2019[93][94] - The Company has adopted the Model Code for securities transactions by directors, confirming compliance during the reporting period[132] - The Company acknowledges the importance of good corporate governance practices for the development of the Group[125] Future Plans and Market Strategy - The company aims to enhance employability through innovative vocational training, aligning with China's economic growth and industrial upgrades[5] - The Group aims to diversify its course offerings in culinary arts, information technology, internet technology, and auto services in response to market demand and industry trends[80] - Research is being conducted on potential new industry sectors for vocational training, including beauty, artificial intelligence, and healthcare, to capture future market opportunities[80] Accounting Policies and Compliance - The financial statements for the six months ended 30 June 2019 have been prepared in accordance with Hong Kong Accounting Standards[161] - The Group's accounting policies for the six months ended 30 June 2019 are consistent with those used in the preparation of the financial statements for the three years ended 31 December 2018[161] - The Group's financial statements are prepared in accordance with the new and amended HKFRSs effective from January 1, 2019[167]