港股公司报告 | 公司点评 中国东方教育（00667） 证券研究报告 2024年04月06日 投资评级 培训需求逐步复苏 行业 非必需性消费/支援服 务 公司发布2023年年报 6个月评级 买入（维持评级） 当前价格 2.29港元 23年营收39.79亿元，同比+4.2%；净利2.73亿元，同比-25.8%；调后净 目标价格 港元 利2.81亿元，同比+5.4%。 学校及中心总数达245所，23年全年新培训人次及新客户注册人数为15.3 基本数据 万人，同比+13.8% 港股总股本(百万股) 2,178.85 分品牌看：新东方收入18.65亿元（占比46.9%，同比-2.7pct），同比-1.4%； 港股总市值(百万港元) 4,989.57 每股净资产(港元) 2.84 欧米奇收入3.3亿元（占比8.3%，同比+0.6pct），同比+12.4%； 资产负债率(%) 39.65 美味学院收入0.49亿元（占比1.2%，同比-0.2pct），同比-12.8%； 一年内最高/最低(港元) 4.51/2.11 新华电脑收入7.4亿元（占比18.7%，同比-0.7pct），同比+0.3%； 作者 华信智原收入0.33亿 ...

Investment Rating - The report maintains a "Buy" rating for China Oriental Education (0667) [5][3]. Core Views - The 2023 annual performance was below expectations, with employee compensation and marketing expenses front-loaded, leading to temporary pressure on profit margins. However, new student enrollments are gradually recovering, and revenue-driven profit recovery is anticipated [3][4]. - The expected EPS for 2024-2026 is projected at 0.18, 0.22, and 0.24 CNY, respectively, with a target price of 2.70 CNY/2.93 HKD based on a 15x PE valuation for 2024 [3][4]. Financial Summary - In 2023, the company achieved revenue of 39.79 billion CNY, a year-on-year increase of 4.2%, and an adjusted net profit of 2.81 billion CNY, up 5.4% year-on-year. However, performance was below expectations due to a decline in new enrollments during the pandemic [3][4]. - The gross profit margin decreased by 1.56 percentage points to 47.96%, primarily due to significant increases in employee salaries and benefits. The company anticipates that as new enrollments stabilize, the student-to-teacher ratio will improve, potentially enhancing the gross margin [3][4]. - The company’s operating expense ratio for 2023 was 43.3%, an increase of 0.46 percentage points, with sales, management, R&D, and financial expense ratios showing various year-on-year changes [3][4]. Enrollment and Training Growth - In 2023, the company added 152,900 training participants, a year-on-year increase of 13.8%, with an average of 146,800 training participants, up 2.9% year-on-year. The revenue from various training segments showed mixed results, with notable growth in automotive repair and culinary training [3][4].

申万宏源研究 上海市南京东路99号 | +86 21 2329 7818 www.swsresearch.com 简单金融 成就梦想 教育 | 公司研究 成本压力亟待解决，招生恢复初现端倪 2024年3月28日 中国东方教育 (00667:HK) 增持 中国东方教育公布2023年业绩，收入为人民币39.8亿元，同比上升4.2%，经调整净利润为人民 币2.8亿元，同比上升5.4%。公司的收入，利润增长低于我们预期。 下调 招生压力仍在，培训人次增速放缓。23年全年公司新培训人数达到15.18万人，同比增长13%， 增幅较上半年20%回落。平均培训人次为14.68万人，同比微增2.9%。并较上半年14.7万人次 下降0.3%。在经济缓慢复苏的背景下，公司培训人增长乏力。 市场数据：2024年3月27日 收盘价（港币） 2.41 毛利收缩源自租金成本上涨。公司 23 年毛利润为 19.08 亿元，同比增长 0.9%，增速弱于收入增 恒生中国企业指数 5728 长。毛利率为48%，同比收窄1.5个百分点。我们认为在公司投建自有区域中心后仍维持部分租赁 52周最高/最低价 (港币) 4.51/2.11 校区的运营，导致 ...

Financial Performance - Revenue for the year ended December 31, 2023, reached RMB 3,979 million, a 4.2% increase from RMB 3,819 million in 2022[2] - Net profit decreased by 25.8% to RMB 273 million from RMB 368 million in 2022[2] - Adjusted net profit rose by 5.4% to RMB 281 million from RMB 267 million in 2022[2] - The company reported a basic earnings per share of RMB 12.51, down from RMB 16.89 in 2022[5] - The diluted earnings per share for the same period was RMB 12.37, down from RMB 16.73 in the previous year, representing a decrease of approximately 26.0%[17] - The operating profit for the year was RMB 368,009,000, with a net profit of RMB 272,622,000 after tax expenses of RMB 95,387,000[24] - Gross profit for the year ended December 31, 2023, was RMB 1,908 million, compared to RMB 1,891 million in 2022, with a gross margin of 48.0%, down from 49.5% in 2022[70] - Adjusted EBITDA for the year was RMB 1,136 million, a decrease of 4.4% from RMB 1,189 million in 2022[2] Assets and Liabilities - Total assets decreased by 2.1% to RMB 9,291 million from RMB 9,489 million in 2022[2] - The company's net asset value as of December 31, 2023, is RMB 5,607,563 thousand, down from RMB 5,692,058 thousand in 2022, indicating a decline of about 1.5%[8] - The company's total liabilities as of December 31, 2023, were RMB 681,433,000, slightly down from RMB 683,580,000 in 2022[44] - Cash and cash equivalents amounted to RMB 1,515 million, compared to RMB 1,435 million in 2022[6] - The current ratio as of December 31, 2023, was 1.7 times, down from 1.9 times as of December 31, 2022, while the debt-to-asset ratio was 39.6%, slightly improved from 40.0% in the previous year[80] Training and Enrollment - New training participants and new customer registrations increased to 152,881, representing a growth of 13.8% compared to 134,347 in 2022[2] - New training participants for the cooking technology segment increased to 82,914 in 2023, up 14.9% from 72,150 in 2022[53] - The long-term courses in automotive services saw a rise in new training participants to 36,819, reflecting an 18.5% increase from 31,083 in the previous year[54] - The fashion beauty education segment reported a significant growth of 125.7% in new training participants, reaching 3,406 compared to 1,509 in 2022[55] - New customer registrations for the culinary experience courses at 美味學院 totaled 10,086, up 9.8% from 9,189 in 2022[53] Government Grants and Tax Liabilities - The total government grants recognized decreased to RMB 3,924 thousand from RMB 6,006 thousand in the previous year, a decline of approximately 34.5%[8] - The company’s deferred tax liabilities as of December 31, 2023, were RMB 20,527 thousand, down from RMB 22,860 thousand in 2022, indicating a decrease of about 10.2%[8] - Deferred tax liabilities related to lease transactions impacted the financial statements, with an adjustment of RMB 0.13 per share for basic earnings in 2023[17] Operational Highlights - The company operates 245 vocational education institutions across China as of December 31, 2023, maintaining a leading position in vocational skills education[50] - The company plans to continue expanding its vocational education services across various segments, including cooking and IT training[23] - The company aims to bridge the supply-demand gap in vocational skills education, particularly in cooking, IT, and automotive services, addressing unmet demand in these sectors[50] - The company became one of the first third-party evaluation agencies for vocational skill level certification in China, enhancing its reputation and brand influence in vocational training[90] Corporate Governance and Future Plans - The company has adhered to all corporate governance codes and standards as of December 31, 2023, to maintain good governance practices[95] - The company plans to expand its campus network to cover all provincial capitals in China, focusing on cities with unmet demand in culinary technology, IT, automotive services, and fashion beauty industries[88] - The company aims to diversify its course offerings in four key sectors: culinary technology, IT, automotive services, and fashion beauty, in response to industry trends and market demand[89] - The annual general meeting is scheduled for June 7, 2024, with notifications to be sent to shareholders in due course[99]

Educational Operations - As of June 30, 2023, China East Education operated 244 schools and centers with an average enrollment of 147,276 students[18]. - The culinary arts segment, under the New East brand, had 76 schools with 59,128 average students enrolled[18]. - The information technology and internet technology segment, represented by Xinhua Internet, operated 38 schools with 41,702 average students enrolled[18]. - The auto services segment, under the Wontone brand, had 40 schools with 38,827 average students enrolled[18]. - The fashion and beauty segment, represented by On-mind, operated 4 schools with 1,396 average students enrolled[18]. - The company focuses on vocational training in four sectors: culinary arts, information technology, auto services, and fashion and beauty[4]. - The comprehensive nationwide school network covers almost all provinces in mainland China and Hong Kong[4]. - The number of schools in operation reached 244 as of June 30, 2023, including 76 schools under New East Culinary Education and 40 schools under Wontone Automotive Education[19]. - The company established Anhui Xinhua Education to consolidate all schools under a single entity, increasing operational efficiency[19]. - The company expanded its business to Hong Kong, further enhancing its market presence[19]. Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 1,953 million, representing an increase from RMB 1,879 million in the same period of 2022, a growth of approximately 3.9%[20]. - Gross profit for the period was RMB 997 million, slightly up from RMB 993 million year-on-year[20]. - Net profit for the period decreased to RMB 204 million from RMB 242 million in the previous year, a decline of about 15.7%[20]. - Adjusted net profit was RMB 176 million, compared to RMB 181 million in the same period of 2022, reflecting a decrease of approximately 2.8%[20]. - Adjusted EBITDA for the period was RMB 633 million, down from RMB 674 million year-on-year, a decline of about 6.1%[20]. - Total assets as of June 30, 2023, were RMB 9,281 million, a decrease from RMB 9,489 million as of December 31, 2022[20]. - Net assets as of June 30, 2023, were RMB 5,522 million, down from RMB 5,692 million at the end of 2022[20]. Enrollment and Student Statistics - The average number of customers registered for the six months ended June 30, 2023, was 147,276[16]. - The company reported a total of 33,463 new student enrollments in culinary arts for the six months ended June 30, 2023, representing a 26.1% increase compared to 26,532 enrollments in the same period of 2022[29]. - New East Culinary Education had 14,324 long-term course enrollments, up 13.3% from 12,637 in the previous year[29]. - The short-term course enrollments in culinary arts increased by 37.7%, reaching 19,139 compared to 13,895 in the same period of 2022[29]. - The automotive services segment saw a subtotal increase of 21.7% in enrollment to 20,457 in 2023 from 16,812 in 2022[31]. - Long-term enrollment in the fashion & beauty segment surged by 322.6% to 1,526 in 2023 from 863 in 2022[31]. Cost and Expenses - The cost of revenue increased from approximately RMB 885 million for the six months ended June 30, 2022, to approximately RMB 956 million for the six months ended June 30, 2023, representing an increase of approximately 7.9%[50]. - Teaching staff salaries and benefits accounted for 37.9% of the total cost of revenue in 2023, up from 35.6% in 2022[53]. - Selling expenses increased from RMB 443 million for the six months ended June 30, 2022, to RMB 513 million for the same period in 2023, reflecting a focus on brand promotion and student recruitment[58]. - Administrative expenses rose from RMB 246 million for the six months ended June 30, 2022, to RMB 256 million for the same period in 2023, maintaining a stable ratio of 13.1% of revenue[58]. Strategic Initiatives - The company aims to enhance employability through innovative vocational training education[4]. - The company is focusing on enhancing its vocational education offerings and expanding its market presence in China[20]. - Future outlook includes potential new product launches and technology developments aimed at improving educational services[20]. - The company is exploring strategic partnerships and acquisitions to bolster its growth trajectory in the education sector[20]. - The Group intends to expand and diversify course offerings in culinary arts, information technology, auto services, and fashion & beauty, responding to industry trends and market demand[68]. Corporate Governance and Compliance - The company has adopted the standard code for securities transactions by directors as per the listing rules[81]. - The interests and short positions of directors are disclosed in compliance with the Securities and Futures Ordinance[82]. - The Group has confirmed compliance with the Model Code for securities transactions by Directors during the six months ended 30 June 2023[111]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended 30 June 2023, ensuring compliance with applicable accounting standards and adequate disclosures[113]. Market and Economic Context - The company supports China's evolving workforce requirements driven by sustained economic growth and urbanization[4]. - The Group's initiatives are in line with national goals to cultivate diverse talents and promote employment and entrepreneurship through vocational education[104]. - The Group's strategic alignment with government policies is expected to enhance its competitive position in the vocational education sector[106].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 1,953 million, a 4.0% increase from RMB 1,879 million in the previous year[2]. - Net profit decreased by 15.9% to RMB 204 million from RMB 242 million year-on-year[2]. - Adjusted net profit was RMB 176 million, down 2.7% from RMB 181 million in the same period last year[2]. - The company reported a basic earnings per share of RMB 9.36, down from RMB 11.14 in the previous year[5]. - The diluted earnings per share for the same period was reported at 9.19 RMB, adjusted from 9.11 RMB, reflecting similar deferred tax adjustments[19]. - The company reported a pre-tax profit of RMB 274,963 thousand for the six months ended June 30, 2023, compared to RMB 325,950 thousand for the same period in 2022, indicating a decrease of approximately 15.6%[26][28]. - The net profit for the period was RMB 203,835 thousand, down from RMB 242,274 thousand in the previous year, reflecting a decline of about 15.8%[26][28]. - The company reported a significant increase in other income and expenses, amounting to approximately RMB 68 million for the six months ended June 30, 2023, compared to RMB 52 million for the same period in 2022[69]. - Other income and losses recorded a net income of approximately RMB 57 million for the six months ended June 30, 2023, compared to RMB 62 million for the same period in 2022, primarily due to a foreign exchange gain of approximately RMB 44 million[70]. Enrollment and Training Participants - New training participants and new customer registrations increased to 84,552, representing a growth of 20.0% compared to 70,445 in the same period last year[2]. - The total number of new training participants for culinary skills increased by 23.1% to 47,734 in the six months ending June 30, 2023, compared to 38,774 in the same period of 2022[50]. - The number of long-term culinary course participants rose by 26.1% to 33,463, up from 26,532 year-on-year[50]. - New registrations for short-term culinary courses increased by 37.7% to 19,139, compared to 13,895 in the previous year[50]. - The company reported a 59.7% increase in short-term IT course participants, reaching 2,583, up from 1,617 in the same period last year[50]. - The long-term courses in the automotive service segment saw a 21.7% increase in new training participants, totaling 20,457 compared to 16,812 in the previous year[51]. - The fashion beauty segment, specifically Omandi, experienced a significant growth of 76.8% in new training participants, reaching 1,526 from 863[51]. - The average training participants in the automotive service segment increased by 20.2% to 38,827, up from 32,315 in the previous year[54]. Financial Position and Assets - Total assets decreased by 2.2% to RMB 9,281 million from RMB 9,489 million at the end of 2022[2]. - Cash and cash equivalents decreased to RMB 1,185 million from RMB 1,435 million, reflecting a decline of 17.4%[6]. - The company's total equity decreased to RMB 5,522 million, down 3.0% from RMB 5,692 million at the end of 2022[8]. - Trade receivables as of June 30, 2023, were RMB 61,876,000, an increase of 32.7% from RMB 46,625,000 as of December 31, 2022[38]. - The company reported a total of RMB 382,379,000 in other receivables as of June 30, 2023, compared to RMB 284,470,000 as of December 31, 2022, indicating a significant increase of 34.4%[38]. - Property and equipment increased by 9.1% from approximately RMB 2,615 million as of December 31, 2022, to approximately RMB 2,854 million as of June 30, 2023[77]. - Right-of-use assets decreased by 2.4% from approximately RMB 2,425 million as of December 31, 2022, to approximately RMB 2,367 million as of June 30, 2023[78]. - The company held other financial assets amounting to approximately RMB 585 million as of June 30, 2023[79]. Expenses and Costs - The total administrative expenses for the period were RMB 52,541 thousand, a decrease from RMB 47,721 thousand in the previous year[26][28]. - Interest expenses related to lease liabilities were RMB 71,570 thousand for the six months ended June 30, 2023, down from RMB 82,406 thousand in the same period of 2022[33]. - The income tax expense for the period was RMB 71,128 thousand, compared to RMB 83,676 thousand in the previous year, indicating a reduction of approximately 15.1%[34]. - Total employee costs for the first half of 2023 amounted to RMB 716,922,000, representing an increase of 8.7% from RMB 659,218,000 in the first half of 2022[35]. - The total depreciation expense for the first half of 2023 was RMB 318,341,000, a decrease of 3.2% from RMB 329,160,000 in the same period of 2022[35]. - Sales expenses increased from RMB 443 million for the six months ended June 30, 2022, to RMB 513 million for the same period in 2023, attributed to enhanced advertising resources for brand promotion[71]. - Administrative expenses rose from RMB 246 million for the six months ended June 30, 2022, to RMB 256 million for the same period in 2023, maintaining a stable ratio of 13.1% of revenue[72]. - Financial costs decreased to RMB 72 million for the six months ended June 30, 2023, from RMB 82 million for the same period in 2022[73]. Dividends and Shareholder Information - The company declared a final dividend of HKD 0.2 per share for the year ended December 31, 2022, totaling approximately HKD 428,300,000 (approximately RMB 394,892,000)[36]. - The company has not declared an interim dividend for the six months ended June 30, 2023, compared to no interim dividend declared for the same period in 2022[36]. - The company’s final dividend of HKD 0.2 per share for the year ending December 31, 2022, was approved by shareholders on May 25, 2023[94]. Strategic Initiatives and Future Plans - The company aims to bridge the gap between employers and students in vocational education, addressing the unmet demand in various sectors[47]. - The company plans to continue expanding its market presence and enhancing its service offerings to drive future growth[61]. - The group plans to establish regional centers across China to enhance teaching and training facilities for its seven school/center brands, with the first phase in Chengdu and Jinan already operational[86][87]. - The group aims to diversify its course offerings in response to industry trends, focusing on sectors such as artificial intelligence and healthcare[88]. - The company has a scalable business model and standardized management methods to accelerate the launch of new courses[90]. Governance and Compliance - The company’s audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements for the six months ending June 30, 2023[97]. - The company has adopted the Corporate Governance Code and has complied with all its provisions during the reporting period[95].

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].