Summary of the Conference Call Company and Industry - The conference call involved **Western Media** and its discussion on **Religious Holdings** performance [1] Core Points and Arguments - **Performance Overview**: Religious Holdings reported a continuous growth in profits for the first half of the fiscal year 2024, which was released before the holiday at the end of April [1] - **Dividend Distribution**: The company announced a **45% dividend payout ratio** to reward shareholders, indicating strong financial health and commitment to returning value to investors [1] Other Important Content - The call was hosted by analysts from Western Media, highlighting the collaborative effort in analyzing the performance of Religious Holdings [1]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 6.85 [6][9]. Core Insights - The company achieved a revenue of RMB 3.28 billion in the first half of FY2024, representing an 18.3% year-on-year increase, driven by a 9% rise in average tuition fees and a 9% increase in student enrollment [2]. - The net profit for the same period was RMB 1.07 billion, a 9.6% increase year-on-year, with an adjusted net profit of RMB 1.09 billion [2]. - The company plans to invest RMB 50 billion from 2023 to 2025 for campus expansion, aiming to increase the capacity of various institutions significantly [3]. - The company is also focusing on enhancing the proportion of international courses, which have an average tuition fee approximately 60% higher than regular courses [3]. - The forecast for FY2024 net profit is adjusted to RMB 1.99 billion, reflecting a 43.8% year-on-year growth [4]. Financial Summary - For FY2024, the company expects revenues to reach RMB 6.54 billion, with a growth rate of 16.4% [5]. - The gross profit margin is projected to decline to 55.1%, down 0.9 percentage points from previous estimates [4]. - The company has increased its dividend payout ratio to 45%, exceeding market expectations, with a current dividend yield of approximately 9% to 10% [4][5]. - The company holds approximately RMB 4.5 billion in cash, indicating a strong liquidity position to support future capital expenditures [4].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company demonstrates strong organic growth with a revenue increase of 18.3% year-on-year in FY2024H1, achieving a total revenue of 3.284 billion RMB [3] - The domestic market shows robust growth, with a 19.2% year-on-year increase in main revenue from the domestic segment [3] - The overall gross margin slightly declined to 56%, down 1.41 percentage points year-on-year, primarily due to increased student numbers and educational investments [3] - The company is a leading player in the domestic higher education sector, showcasing strong acquisition integration and management capabilities [3] - Significant capital investment is being made in new campus construction, expected to increase student capacity by 52,000 [3] Financial Summary - Revenue projections for FY2024E are set at 6.501 billion RMB, with a year-on-year growth rate of 11.24% [2] - Adjusted net profit for FY2024E is forecasted at 2.101 billion RMB, reflecting a substantial year-on-year increase of 52.22% [2] - The latest closing price corresponds to a P/E ratio of 4.89 for FY2024E [4] - The company plans to distribute an interim dividend of 0.1877 RMB per share, representing approximately 45% of the adjusted net profit [3]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's performance is in line with expectations, with a projected revenue of 6.47 billion, 7.43 billion, and 8.52 billion for the fiscal years 2024-2026, and net profit of 2.11 billion, 2.32 billion, and 2.55 billion respectively [4] - The target price is set at 8.98 HKD, based on a 10x PE valuation for the fiscal year 2024 [4] Financial Performance Summary - For the first half of the fiscal year 2023/24, the company achieved a revenue of 3.28 billion, representing a year-on-year increase of 18.3%, with a gross profit of 1.84 billion, up 15.4% year-on-year [4] - Adjusted net profit for the same period was 1.22 billion, reflecting a year-on-year growth of 10.2% [4] - The gross margin decreased by 1.41 percentage points to 56.00%, while the sales expense ratio decreased by 0.43 percentage points to 2.71% [4] Growth Drivers - The company is experiencing steady organic growth, driven by an increase in both student numbers and per-student revenue, with a 9% increase in student enrollment and a 9% rise in revenue per student [4] - The domestic market segment generated revenue of 3.18 billion, a year-on-year increase of 19.2%, while the international market segment saw a slight decline [4] - The company has a strong cash reserve of 4.53 billion, which supports its expansion plans [4]

Financial Performance - For the six months ended February 29, 2024, the main revenue reached RMB 3,284 million, an increase of RMB 509 million or +18.3% compared to RMB 2,775 million for the same period in 2023[2] - Gross profit for the same period was RMB 1,839 million, up by RMB 246 million or +15.4% from RMB 1,593 million year-on-year[2] - Adjusted net profit was RMB 1,217 million, reflecting an increase of RMB 113 million or +10.2% compared to RMB 1,104 million in the previous year[2] - Operating profit for the period was RMB 1,475 million, up from RMB 1,257 million, indicating a growth of RMB 218 million[4] - The net profit attributable to the owners of the company was RMB 1,071 million, an increase of RMB 94 million or +9.6% from RMB 977 million in the previous year[4] - The company reported other income of RMB 201 million, compared to RMB 138 million in the same period last year[4] - Adjusted EBITDA for the six months was RMB 1,956 million, an increase of RMB 280 million or +16.7% from RMB 1,676 million in the prior year[2] - The net profit for the period was RMB 1,188 million, up from RMB 1,036 million in the prior year, reflecting a growth of approximately 14.7%[47] - Basic earnings per share increased to RMB 41.97, compared to RMB 40.06 for the same period last year, marking an increase of about 4.8%[47] Revenue Breakdown - Domestic market segment main revenue increased from RMB 2,668 million for the six months ended February 28, 2023, to RMB 3,179 million for the six months ended February 29, 2024, representing a growth of 19.2%[12] - For the six months ending February 29, 2024, the total revenue was RMB 3,284 million, with domestic market revenue at RMB 3,179 million and international market revenue at RMB 105 million[56] - Customer revenue from mainland China for the six months ended February 29, 2024, was RMB 3,179 million, compared to RMB 2,668 million for the same period in 2023, indicating a growth of about 19.1%[60] Costs and Expenses - Financing costs increased to RMB 225 million from RMB 190 million, reflecting a rise of RMB 35 million[4] - The increase in main operating costs was 22.3%, rising from RMB 1,182 million for the six months ended February 28, 2023, to RMB 1,445 million for the same period ended February 29, 2024[14] - The total employee costs for the six months ended February 28, 2023, were RMB 1,020 million, compared to RMB 839 million for the same period in 2022, reflecting an increase of approximately 21.6%[65] Assets and Liabilities - The total assets of properties, campuses, and equipment grew by 9.3% to RMB 19,316 million as of February 29, 2024, from RMB 17,668 million as of August 31, 2023[23] - As of February 29, 2024, cash reserves amounted to RMB 4,531 million, a decrease from RMB 5,802 million on August 31, 2023[25] - The net debt-to-equity ratio increased to 23.0% as of February 29, 2024, compared to 15.3% on August 31, 2023[25] - Total bank and other borrowings and bonds were RMB 8,933 million as of February 29, 2024, up from RMB 8,603 million on August 31, 2023[25] - The group has net current liabilities of RMB 1,750 million, which includes contract liabilities of RMB 3,287 million[52] Capital Expenditure and Investments - Capital expenditure for the six months ended February 29, 2024, was RMB 2,032 million, significantly higher than RMB 1,220 million for the same period ended February 28, 2023[24] - Capital commitments related to acquisitions of property, plant, and equipment amounted to RMB 1,521 million as of February 29, 2024, compared to RMB 986 million in 2023[72] Dividends and Shareholder Information - The board recommended an interim dividend of RMB 0.1877 per share[2] - The board declared an interim dividend of RMB 0.1877 per share for the six months ended February 29, 2024, compared to RMB 0.1638 per share for the same period in 2023[67] - The interim dividend will be paid on July 18, 2024, to shareholders listed on June 17, 2024[38] - Shareholders will have the option to receive the interim dividend in new shares instead of cash, pending approval from the listing committee[39] Employee and Operational Growth - The company has increased its employee count to 17,810 as of February 29, 2024, representing a 19% increase from the previous year, primarily due to organic growth in existing and new schools[36] - The group is focused on expanding its professional education services in both domestic and international markets[55] Financial Governance - The audit committee has reviewed the unaudited consolidated financial statements for the six months ended February 29, 2024, ensuring the integrity and accuracy of the financial data[45] - The group has adopted a prudent treasury policy and maintained a stable liquidity structure as of February 29, 2024[26] - The group has no significant contingent liabilities as of February 29, 2024[28] Convertible Bonds and Fundraising - The company believes that the full redemption of the convertible bonds on their maturity date will not have a significant impact on its financial condition[42] - The total outstanding principal amount of the convertible bonds as of February 29, 2024, was HKD 4,000,000, with a potential issuance of 323,886 new shares upon full conversion[41] - The net proceeds from the fundraising completed on February 3, 2021, amounted to approximately RMB 1,681.4 million, with 70% allocated for expanding new campuses in the Greater Bay Area[32] - As of February 29, 2024, the net proceeds utilization shows that 90% (RMB 1,265 million) has been allocated, with RMB 604 million already utilized[35]

Core Viewpoint - The company has redeemed all outstanding convertible bonds amounting to HKD 400 million before their maturity date, which is March 28, 2024, and believes this will not significantly impact its financial position [1] Group 1 - The company announced the issuance of HKD 2.355 billion convertible bonds with a 2.0% interest rate, maturing in 2024 [1] - As of the announcement date, the total principal amount of convertible bonds that remained unredeemed was HKD 4 million [1] - All unredeemed convertible bonds were fully redeemed on the maturity date, and the bonds have been delisted from the Hong Kong Stock Exchange [1]

财联社2月21日讯 (编辑 胡家荣) 受市场利好持续提振，港股教育板块近日表现活跃。截至发稿，中教控股(00839.HK)、中国东方教育(00667.HK)、宇华教 育(06169.HK)、新高教集团(02001.HK)分别上涨8.58%、7.41%、6.59%、4.55%。 | --- | --- | --- | --- | |-------|----------------|--------|----------| | 代码 | 名称 | 最新价 | 涨跌幅 ∨ | | 00839 | 中教控股 | 4.430 | 8.58% | | 00667 | 中国东方教育 | 2.610 | 7.41% | | 06169 | 宇华教育 | 0.485 | 6.59% | | 08363 | SDM教育 | 0.122 | 5.17% | | 02001 | 新高教集团 | 2.530 | 4.55% | | 01890 | 中国科培 | 1.380 | 3.76% | | 01569 | 民生教育 | 0.280 | 3.70% | | 02779 | 中国新华教育 | 0.570 | 3.64% | | 00 ...

Enrollment and Student Growth - Full-time new student enrollment for the 2023/24 academic year reached approximately 97,000, a year-on-year increase of about 17%, with higher education new student enrollment at approximately 84,000, up 18% year-on-year[9] - As of August 2023, the total number of full-time students reached approximately 248,000, a year-on-year increase of about 7%, with higher education students at approximately 199,000, up 13% year-on-year[9] - The number of applied graduates increased by 16.1% year-on-year to 72,000[16] - The number of students participating in international education programs with Australian and British schools continued to grow[16] Academic Programs and Research - The company added 13 new applied undergraduate programs, bringing the total to 372, and 13 new vocational programs, totaling 182, during the reporting period[10] - The company's member schools have been approved for 9 National Natural Science Foundation projects, 4 National Social Science Foundation projects, and 12 Ministry of Education Humanities and Social Sciences projects as of August 2023[10] - The company has been granted 5 national-level new engineering/new liberal arts research and practice projects, 3 national-level first-class undergraduate courses, and 75 provincial-level first-class undergraduate courses during the 2019–2023 period[10] - Jiangxi School was approved for two "Chunhui Plan" international cooperation research projects by the Ministry of Education, making it the only private undergraduate university in Jiangxi Province to receive this approval[11] - Sichuan School secured 15 provincial-level higher education talent cultivation and teaching reform projects, ranking first among similar universities in the province, and had 14 MOOCs included in the "National Higher Education Smart Education Platform"[11] Campus Infrastructure and Expansion - Shandong School's new campus in Yantai, covering over 700 acres, is planned to be operational by the 24/25 academic year, supporting talent needs in key economic zones[13] - The company invested in upgrading campus infrastructure, including the construction and renovation of approximately 200 smart classrooms and over 270 training/laboratory facilities[13] - Guangzhou Vocational School became the first higher vocational college in Guangdong Province to establish a multi-operator 5G private network, enhancing its smart campus capabilities[13] - Capital expenditure for campus expansion and other purposes amounted to RMB 2,637 million[21] - Property, school buildings, and equipment increased by 12.5% to RMB 17,668 million as of August 31, 2023, from RMB 15,700 million in the previous year[42] Financial Performance - Adjusted net profit increased by 9.8% year-on-year to RMB 2,077 million, and adjusted net profit attributable to the parent company increased by 6.0% year-on-year to RMB 1,908 million[21] - Adjusted EBITDA increased by 17.7% year-on-year to RMB 3,361 million[21] - Total assets increased by 6.5% year-on-year to RMB 35,754 million, and cash reserves increased by RMB 281 million to RMB 5,802 million[21] - Revenue for the fiscal year ending August 31, 2023, reached RMB 5,616 million, an 18.1% increase compared to RMB 4,756 million in the previous fiscal year[33] - Domestic market revenue increased by 18.2% to RMB 5,396 million, driven by growth in student enrollment and per-student income in higher vocational education institutions[35] - Net profit attributable to the company's owners was RMB 1,380 million, with adjusted net profit attributable to the company's owners at RMB 1,908 million[26][30] - Gross profit for the fiscal year ending August 31, 2023, was RMB 3,164 million, up from RMB 2,754 million in the previous year[26] - Operating profit increased to RMB 2,493 million, compared to RMB 2,114 million in the previous fiscal year[26] - Adjusted EBITDA for the fiscal year ending August 31, 2023, was RMB 3,361 million, compared to RMB 2,856 million in the previous year, representing an increase of 17.7%[37] - Net profit for the fiscal year ending August 31, 2023, was RMB 1,541 million, a decrease of 20.4% from RMB 1,936 million in the previous year[37] - International market revenue increased by 16.4% to RMB 220 million in the fiscal year ending August 31, 2023, driven by an increase in new student enrollments[39] - Operating profit for the fiscal year ending August 31, 2023, was RMB 2,493 million, an increase of 17.9% from RMB 2,114 million in the previous year[39] - Main business costs increased by 22.5% to RMB 2,452 million in the fiscal year ending August 31, 2023, primarily due to an increase in student numbers[39] - Gross profit for the fiscal year ending August 31, 2023, was RMB 3,164 million, an increase of 14.9% from RMB 2,754 million in the previous year[39] - The company recorded a net loss of RMB 540 million in other gains and losses for the fiscal year ending August 31, 2023, mainly due to a RMB 458 million impairment loss on goodwill and intangible assets[39] - Sales expenses for the fiscal year ending August 31, 2023, were RMB 182 million, accounting for 3.2% of revenue, down from 3.6% in the previous year[39] - Administrative expenses for the fiscal year ending August 31, 2023, were RMB 724 million, an increase from RMB 775 million in the previous year[38] - Adjusted net profit increased by 9.8% to RMB 2,077 million for the year ended August 31, 2023, compared to RMB 1,891 million in the previous year[41] - Net profit decreased to RMB 1,541 million for the year ended August 31, 2023, from RMB 1,936 million in the previous year, primarily due to impairment losses on goodwill and intangible assets of RMB 395 million[41] - Adjusted EBITDA increased by 17.7% to RMB 3,361 million for the year ended August 31, 2023, compared to RMB 2,856 million in the previous year[41] Corporate Governance and ESG - The company's ESG report covers the period from September 1, 2022, to August 31, 2023, aligning with the company's fiscal year[53] - The company's ESG governance involves the Legal and Administration Departments, with oversight from the Board of Directors[54] - An ESG working group, composed of core members from various departments, is responsible for data collection and report preparation[54] - The company collaborates with the International Finance Corporation (IFC) to promote ESG compliance and inclusive business models[57] - The company's business model is recognized as inclusive, directly impacting low-income students and aligning with UN Sustainable Development Goals[57] - The company has been awarded the "China Excellence in Management" award by Deloitte for five consecutive years, the only academic education enterprise to receive this recognition[18] - The company's environmental, social, and governance (ESG) report includes detailed disclosures on emissions, resource usage, and environmental impact management[165] - The company has fully disclosed policies and actions related to significant climate-related issues, including identification and response measures[167] - Employee data is categorized by gender, employment type, age group, and region, with full disclosure of total employee numbers and turnover rates[167] - The company has implemented occupational health and safety measures, with data on work-related fatalities and lost workdays over the past three years[167] - Training programs are in place, with data on the percentage of employees trained and average training hours per employee, categorized by gender and employee type[167] - The company has policies and measures to prevent child labor and forced labor, with full disclosure of recruitment practices and steps to address violations[167] - Supply chain management includes policies to address environmental and social risks, with data on the number of suppliers by region[169] - The company has policies and procedures for product safety, quality assurance, and consumer data protection, with full disclosure of product recall percentages and complaint handling[169] - Anti-corruption measures are in place, including training for directors and employees, with full disclosure of policies and reporting procedures[169] - The company has a strong corporate governance framework, with full compliance with the Corporate Governance Code as of August 31, 2023[170] - The Board of Directors consists of four executive directors and three independent non-executive directors, with a focus on maintaining a balanced skill set and strong independent representation[171] - The Board of Directors held seven meetings during the fiscal year ending August 31, 2023[177] - The Audit Committee, chaired by Dr. Rui Meng, held four meetings and reviewed the Group's financial controls, risk management, and internal control systems[180] - The Remuneration Committee, chaired by Dr. Gerard A. Postiglione, held two meetings to review and approve the remuneration policies and structures for directors and senior management[181] - The Nomination Committee, chaired by Mr. Yu Guo, consists of one executive director and two independent non-executive directors[182] - All independent non-executive directors provided annual written confirmations of their independence in accordance with Listing Rule 3.13[175] - The Board is responsible for corporate governance functions, including setting policies, overseeing training, and reviewing compliance with corporate governance codes[176] - The CEO is responsible for executing the Board's strategies and development plans, as well as managing the Group's overall business operations[173] - One-third of the Board members are required to retire by rotation at each annual general meeting, with each director required to retire at least once every three years[174] - The Audit Committee reviewed the Group's audited consolidated financial statements for the year ended August 31, 2022, and the unaudited condensed consolidated results for the six months ended February 28, 2023[180] - The Remuneration Committee reviewed and approved the vesting of share options under the Pre-IPO and Post-IPO Share Option Schemes[181] - The board of directors consists of 1 female and 6 male members, reflecting the company's commitment to gender diversity[184] - The company held 2 nomination committee meetings during the fiscal year to review board structure, size, and composition, and to assess the independence of independent non-executive directors[185] - The board includes 3 independent non-executive directors, representing more than one-third of the total board seats[185] - The company paid a total of RMB 8,556,000 in professional fees to its auditor, Deloitte Touche Tohmatsu, for audit and non-audit services during the fiscal year[193] - Audit services accounted for RMB 6,018,000 of the total fees paid to the auditor[193] - Non-audit services, including interim reviews, contract arrangement reviews, preliminary announcement reviews, bond issuance-related agreed-upon procedures, and tax compliance services, amounted to RMB 2,538,000[193] - The company's senior management (excluding directors) received salaries ranging from HKD 500,001 to HKD 5,000,000 during the fiscal year[186][187] - The company secretary, Mr. Chen Yuanfeng, received at least 15 hours of relevant professional training during the fiscal year[194] - The company maintains a formal and transparent policy for director remuneration, ensuring that compensation is fair and reasonable based on experience, responsibilities, workload, performance, and the group's performance[186] - The company regularly organizes training courses and provides reading materials for directors, senior management, and employees to enhance their knowledge in various fields related to their daily duties and the group's business growth[189] Environmental Sustainability - Total gas emissions (excluding greenhouse gases) decreased from 6,022.7 kg in 2022 to 5,837.5 kg in 2023, with NOx emissions dropping from 5,460.5 kg to 5,304.9 kg[63] - Total liquid emissions increased from 5,023,513 tons in 2022 to 5,667,021 tons in 2023, with dormitory wastewater rising from 3,943,505 tons to 4,568,993 tons[63] - Total solid emissions decreased from 31,428 tons in 2022 to 23,382 tons in 2023, with non-hazardous waste dropping from 31,949 tons to 23,870 tons[63] - Per capita gas emissions (excluding greenhouse gases) decreased from 0.0317 kg in 2022 to 0.0236 kg in 2023, with NOx emissions per capita dropping from 0.0288 kg to 0.0214 kg[64] - Per capita liquid emissions increased from 22.10 tons in 2022 to 22.89 tons in 2023, with dormitory wastewater per capita rising from 17.35 tons to 18.45 tons[64] - Per capita solid emissions decreased from 0.1382 tons in 2022 to 0.0944 tons in 2023, with non-hazardous waste per capita dropping from 0.1405 tons to 0.0964 tons[64] - Total greenhouse gas emissions (Scope 1) decreased from 8,971 tons in 2022 to 8,333 tons in 2023, with emissions from stationary combustion dropping from 8,275 tons to 8,193 tons[65] - Energy indirect greenhouse gas emissions (Scope 2) increased from 139,219 tons in 2022 to 147,096 tons in 2023[65] - Per capita greenhouse gas emissions (Scope 1) decreased from 0.0394 tons in 2022 to 0.0336 tons in 2023, with emissions from stationary combustion per capita dropping from 0.0364 tons to 0.0331 tons[66] - Per capita energy indirect greenhouse gas emissions (Scope 2) decreased from 0.6124 tons in 2022 to 0.5941 tons in 2023[66] - The company aims to reduce per capita emissions of nitrogen oxides (NOx), sulfur dioxide (SO2), and particulate matter (PM) by 1-2% compared to the 2021/22 fiscal year[67] - The company plans to reduce per capita wastewater emissions from dormitories and canteens by 1-2% compared to the 2021/22 fiscal year[68] - The company targets a 1-2% reduction in per capita hazardous waste emissions (e.g., light bulbs and tubes) compared to the 2021/22 fiscal year[69] - The company aims to reduce per capita greenhouse gas emissions (Scope 1 and Scope 2) by 1-2% compared to the 2021/22 fiscal year, with 713 tons of CO2 offset by newly planted trees[70] - The company's electricity consumption increased to 188,766,210 kWh in the 2022/23 fiscal year, up from 176,853,384 kWh in the previous year[74] - Water consumption rose to 9,429,892 cubic meters in the 2022/23 fiscal year, compared to 8,763,620 cubic meters in the previous year[74] - Gasoline consumption decreased to 153,424 liters in the 2022/23 fiscal year, down from 163,692 liters in the previous year[74] - Diesel consumption dropped to 165,267 liters in the 2022/23 fiscal year, compared to 203,156 liters in the previous year[74] - The company planted 4,263 new trees and over 264,000 shrubs and seedlings during the reporting period[70] - The company implemented various energy-saving measures, including upgrading to LED lighting and optimizing electricity usage through smart devices[70] - Electricity consumption per student decreased from 778.0 kWh in 2021/22 to 762.4 kWh in 2022/23, a reduction of 2.0%[75] - Water consumption per student decreased from 38.6 cubic meters in 2021/22 to 38.1 cubic meters in 2022/23, a reduction of 1.3%[75] - Natural gas consumption per student decreased from 16.7 cubic meters in 2021/22 to 15.2 cubic meters in 2022/23, a reduction of 9.0%[75] - Gasoline consumption per student decreased from 0.7 liters in 2021/22 to 0.6 liters in 2022/23, a reduction of 14.3%[75] - Diesel consumption per student decreased from 0.9 liters in 2021/22 to 0.7 liters in 2022/23, a reduction of 22.2%[75] - The company aims to reduce per-student electricity usage by 1-2% compared to the 2021/22 fiscal year[77] - The company has implemented measures such as replacing old lighting with LED lights and setting air conditioning temperatures to 26°C or higher in summer[77] - The company has been recognized by the government for its water-saving efforts, with Shandong school being selected as a 2022 Water-Saving University in Shandong Province[78] - The company has established a campus energy monitoring platform to track and manage energy usage in student dormitories and administrative buildings[82] - The company is promoting paperless offices and has banned the use of plastic bags in canteens to enhance environmental protection[82] - The company implemented water and electricity conservation measures, including the use of smart metering systems and rainwater recycling for irrigation and road cleaning[84] - The company was recognized as a "Water-Saving University" in Shandong Province in 2022[84] Employee Management and Training - Total number of employees increased by 20.6% to 16,468 as of August 31, 2023, compared to 13,655 in the previous year[93] - Male employees accounted for 7,533, while female employees accounted for 8,935 as of August 31, 2023[94] - No stock options were granted to employees during the fiscal year ending August 31, 2023[89] - The company adheres to strict

Financial Performance - For the fiscal year ending August 31, 2023, the company reported revenue of RMB 5,616 million, an increase of 18.1% compared to RMB 4,756 million in the previous year[2]. - The gross profit for the same period was RMB 3,164 million, reflecting a growth of 14.9% from RMB 2,754 million[2]. - Adjusted net profit reached RMB 2,077 million, up by 9.8% from RMB 1,891 million year-on-year[2]. - The adjusted EBITDA was RMB 3,361 million, representing a 17.7% increase from RMB 2,856 million[2]. - The company's net profit for the year was RMB 1,541 million, a decrease of 20.4% compared to RMB 1,936 million in the previous year[73]. - Adjusted net profit increased by 6.0% year-on-year, reaching RMB 1,908 million[18]. - Adjusted EBITDA rose by 17.7% year-on-year, amounting to RMB 3,361 million[18]. - Total revenue for the year ended August 31, 2023, was RMB 5,616 million, up from RMB 4,756 million in the previous year[20]. - The company recorded a net loss of RMB 540 million for the year ended August 31, 2023, primarily due to impairment losses on goodwill and intangible assets amounting to RMB 458 million[35]. - Financing costs increased from RMB 308 million for the year ended August 31, 2022, to RMB 469 million for the year ended August 31, 2023, mainly due to rising interest expenses on bank and other borrowings[38]. Student Enrollment and Educational Offerings - The number of full-time new students registered for the 2023/24 academic year reached approximately 97,000, a year-on-year increase of about 17%[5]. - The total number of full-time students as of August 2023 was approximately 248,000, reflecting a year-on-year growth of about 7%[5]. - The company opened 372 applied undergraduate programs and 182 diploma programs, both increasing by 13 compared to the previous year[6]. - The company is focused on aligning its educational offerings with market demands, particularly in smart manufacturing and digital creativity[6]. - The company has been recognized for its quality of education and social reputation, enhancing its professional development in response to national strategies[6]. Campus Development and Infrastructure - The new campus construction in Shandong is progressing smoothly, with the first phase covering over 700 acres, expected to be operational in the 2024/25 academic year[10]. - The company has invested in modern facilities, adding approximately 200 smart classrooms and over 270 training rooms/labs, including key labs for AI and smart finance innovation[10]. - The company invested RMB 2,637 million in capital expenditures for campus expansion[18]. Financial Management and Capital Structure - As of August 31, 2023, the company had cash reserves of RMB 5,802 million and proposed a final dividend of RMB 0.1353 per share[2]. - The group issued RMB 500 million investment-grade guaranteed bonds maturing in 2026, rated "AA" by Standard & Poor's Global[49]. - The proceeds from the bond issuance will primarily be used for the construction and expansion of domestic campuses[49]. - The net debt-to-equity ratio as of August 31, 2023, was 15.3%, a decrease from 20.3% on August 31, 2022[44]. - The group has maintained a prudent treasury policy and a robust liquidity structure as of August 31, 2023[45]. Awards and Recognition - The company has been recognized for five consecutive years with the "China Excellent Management Company" award, highlighting its strong educational management system[15]. - The company has received significant support from domestic and international financial institutions for its high-quality, public welfare development model[11]. - The company has been recognized for its contributions to vocational education, with several schools receiving accolades for their innovative programs and teaching quality[9]. Employment and Talent Development - The total number of employees increased by 20.6% year-on-year to 16,468 as of August 31, 2023, primarily due to organic growth in existing schools and new campuses[56]. - The company provided scholarships to approximately 84,000 students over the past three years[17]. - The company trained nearly 28,000 migrant workers in various skills over the last three years[17]. - The company aims to strengthen its capital base through the placement and subscription to continue executing its industry consolidation strategy[55]. Corporate Governance - The company has adopted corporate governance principles and has complied with all relevant codes during the fiscal year ending August 31, 2023[68]. - The board believes that maintaining good corporate governance is essential for enhancing confidence among shareholders and potential investors[69].

Financial Performance - For the six months ended February 28, 2023, the company reported revenue of RMB 2,775 million, an increase of 18% from RMB 2,351 million in the same period of 2022[15]. - Gross profit for the same period was RMB 1,593 million, up from RMB 1,394 million, reflecting a gross margin improvement[15]. - The company achieved an operating profit of RMB 1,257 million, representing a 20% increase compared to RMB 1,043 million in the previous year[15]. - Net profit attributable to the owners of the company was RMB 977 million, a decrease of 16% from RMB 1,169 million in the prior year[15]. - Adjusted net profit for the period was RMB 1,045 million, up from RMB 908 million, indicating a 15% growth[15]. - The higher vocational education segment's revenue increased from RMB 1,947 million to RMB 2,348 million, representing a growth of 20.6%[25]. - The international education segment's revenue surged by 44.6%, from RMB 74 million to RMB 107 million, due to an increase in new student enrollments following the lifting of COVID-19 entry restrictions[27]. - The adjusted EBITDA for the six months ended February 28, 2023, was RMB 1,676 million, an increase from RMB 1,407 million in the same period of 2022[21]. - The profit for the period was RMB 1,036 million, a decrease of 14% from RMB 1,207 million in the previous year[88]. - The profit before tax for the group was RMB 1,069 million, compared to RMB 1,229 million for the same period in the previous year, indicating a decrease of approximately 13%[100]. Operational Highlights - The company operates in China, Australia, and the UK, enhancing its international presence and educational offerings[13]. - The company is focused on strengthening its "dual-teacher" model and expanding its vocational education capabilities[13]. - The company has achieved ISO-9001 international quality management system certification, underscoring its commitment to quality education[13]. - The company has increased its employee count to 14,925 as of February 28, 2023, representing a 15.6% increase from the previous year due to organic growth in existing schools and new districts[49]. - The company plans to utilize 70% of the net proceeds from previous placements for the expansion and development of new campuses in the Greater Bay Area[44]. Financial Position - Cash reserves increased to RMB 5,874 million as of February 28, 2023, up from RMB 5,521 million as of August 31, 2022[38]. - Total assets for properties, campuses, and equipment grew by 5.7% to RMB 16,593 million as of February 28, 2023, from RMB 15,700 million as of August 31, 2022[36]. - The company reported a total net asset of approximately RMB 34.87 billion and cash reserves of approximately RMB 5.87 billion as of February 28, 2023[80]. - The total liabilities decreased to RMB 8,402 million from RMB 9,386 million as of August 31, 2022[90]. - The company’s total assets increased to RMB 18,209 million as of February 28, 2023, compared to RMB 15,853 million at the same time last year[91]. Shareholder Information - The board declared an interim dividend of RMB 0.1638 per share, equivalent to HKD 0.1858, representing approximately 40% of the adjusted net profit attributable to the owners of the company[53]. - Major shareholders hold significant stakes, with the largest shareholder owning 1,507,900,000 shares, also representing approximately 59.36%[61]. - The company reported a total of 2,551,084,455 shares issued as of February 28, 2023[61]. - The company completed a placement agreement on January 9, 2023, issuing a total of 147,000,000 shares at a price of HKD 10.94 per share, raising approximately HKD 1.6 billion net after costs[46]. - The company repurchased a total of 3,923,000 shares at a total cost of approximately HKD 22.18 million during the six months ended February 28, 2023[55]. Debt and Financing - Financing costs rose from RMB 135 million to RMB 190 million, primarily due to increased interest expenses from bank loans and bonds[33]. - The company has a long-term loan agreement with the International Finance Corporation (IFC) for a maximum amount of USD 200 million, with a term of up to seven years[82]. - The company also has a loan agreement with banks for USD 189.5 million, with a maximum term of seven years[83]. - The total bank and other borrowings and bonds as of February 28, 2023, was RMB 8.42 billion, a decrease from RMB 8.89 billion as of August 31, 2022[15]. Compliance and Governance - The company has complied with all provisions of the corporate governance code as of February 28, 2023[57]. - The audit committee reviewed the unaudited consolidated financial statements for the six months ended February 28, 2023[58]. - The company has established a compensation structure for employees based on qualifications, experience, performance, and market levels, ensuring compliance with local labor laws[49]. - There were no reported disagreements between departing executives and the board[59]. Future Outlook - The company plans to continue expanding its market presence and developing new products and technologies[68]. - The company expects to continue its market expansion and product development initiatives in the upcoming periods, focusing on enhancing educational services and technology integration[116]. - The group anticipates sufficient resources to continue operations for at least the next twelve months, based on internal funding and expected bond issuance[95].