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]