Core Viewpoint - The company is actively pursuing strategic transformation across four key areas to seize growth opportunities and respond to industry dynamics Group 1: Strategic Transformation Areas - Optimization of undergraduate education platform through increased investment in high-quality faculty recruitment, research capability enhancement, and modernization of curriculum systems. Some institutions are actively applying for master's degree granting rights to enhance academic reputation and attractiveness [1] - Adjustment of vocational education sector by upgrading certain vocational projects towards higher vocational or academic pathways, while optimizing course offerings and improving operational efficiency to enhance overall competitiveness [2] Group 2: Project Management and Financial Strategy - Strengthening of project execution discipline by strictly controlling capital project investments to ensure efficiency, significant impact, and timely delivery. Improved project management processes guarantee project quality, budget control, and timely delivery, laying a foundation for long-term growth and academic excellence [3] - Expansion of financial strength and financing channels by actively seeking cost-effective funding support from international financial institutions, prioritizing the use of RMB financing to enhance financial resilience and mitigate foreign exchange risks [4] Group 3: Financial Stability and Shareholder Value - The company aims to achieve higher academic achievements, operational excellence, and sustainable financial growth. Maintaining financial stability remains a top priority, with a cautious approach to cash flow management to ensure a solid financial foundation for debt repayment and future investments [5] - The company is reviewing capital management strategies, focusing on evaluating the relative advantages of dividend distribution versus share buybacks. In the current market environment, the company prioritizes debt repayment and maintaining liquidity stability to address tightening financial conditions and upcoming debt arrangements, thereby avoiding cross-default risks and ensuring operational stability [5] - The board will continue to adopt a prudent and comprehensive approach in considering dividend declarations, assessing the company's financial condition, strategic capital needs, and external market changes to ensure a balanced and forward-looking capital allocation strategy that enhances financial resilience and supports long-term shareholder returns [6]

对很多投资者来说，提到四川省绵阳市，首先想到的是从小看到大的长虹（600839.SH）电视。实际上，作为一座"绵里藏针"的城市，绵阳的科技底蕴不光 只有长虹，其在国防军工、电子信息、先进材料、高端装备制造、生物医药等产业领域都积淀了丰富的科技硬实力。 这类硬科技可谓信手拈来：比如，绵阳天仪空间科技有限公司自主研发的"绵阳星座"，具备毫米级地表沉降探测能力，为灾害预警与应急救援提供关键信息 支撑；四川虹科创新科技有限公司生产的手机高铝盖板玻璃，薄如蝉翼，全球每4部手机中就有1部使用他们的产品…… and and the status of the program of the county of the count RE 凭借独特的地貌与区位，四川盆地历来是中国战略大后方。上世纪60年代，"三线"重点转移建设四川，大量国防军工、能源重工、电子信息等产业入川，中 物院、气动中心、航发624所等国之重器更是落地绵阳。 "因为涉及国防军工等国之重器，让绵阳有了太多能做但不太能说的积淀成果。我们绵阳已经习惯于'干惊天动地事做隐姓埋名人'，是一座被外界低估的城 市。"绵阳市有关部门负责人介绍说。 作为党中央、国务院批准建 ...

Group 1 - The education sector in Hong Kong and A-shares experienced significant gains, with notable increases in stocks such as Xijiang International Holdings (up 12.59%) and China Tongcai Education (up 9.27%) [1] - The Ministry of Education and nine other departments issued a document to accelerate the digitalization of education, emphasizing the role of artificial intelligence in educational transformation [1][2] - The Ministry of Education plans to develop a national smart education platform 2.0, incorporating advanced technologies like AI and knowledge graphs to enhance educational resources and assessment [2] Group 2 - The global AI education market is projected to grow to $26.2 billion by 2025, while the domestic AI+ education B-end market is expected to reach 47.7 billion yuan and the C-end market 28.2 billion yuan by 2027 [3] - Investment firms are optimistic about the potential of AI in education, recommending attention to companies leading in AI integration within the education sector and related IT industries [3][4]

Environmental Impact - Total greenhouse gas emissions for the year ending August 31, 2024, increased to 8,952 tons from 8,333 tons in the previous year, representing a growth of 7.4%[2] - Direct emissions from stationary sources rose to 8,721 tons, up from 8,193 tons, indicating a 6.4% increase[2] - Energy-related greenhouse gas emissions reached 192,056 tons, a significant rise from 147,096 tons, marking a 30.5% increase[2] - The total greenhouse gas emissions per capita for energy-related sources increased to 0.7122 tons from 0.5941 tons, a rise of 19.9%[3] - The total liquid waste discharge from dormitories was 5,562,079 liters, an increase of 21.8% from 4,568,993 liters in the previous year[100] - The total solid waste generated was 29,338 kg, up from 23,382 kg in the previous year, reflecting an increase of 25.5%[100] - The company planted 17,334 trees and over 1.02 million shrubs during the reporting period, achieving a greenhouse gas offset of 786 tons, effectively offsetting 0.39% of its greenhouse gas emissions[149] - The company aims to reduce per capita wastewater emissions by 1-2% compared to the fiscal year 2022/23[144] - The company has implemented a management system to enhance energy-saving practices and reduce electricity waste[150] - The company is committed to promoting environmental protection and social responsibility in its daily operations[143] - The company has established a comprehensive energy-saving management system and conducts regular assessments of energy-saving targets[150] - Total energy consumption increased to 249,427,216 kWh for the year ending August 31, 2024, up from 188,766,210 kWh in the previous year, representing a growth of approximately 32%[152] - Water consumption reached 10,157,502 cubic meters for the year ending August 31, 2024, compared to 9,429,892 cubic meters in the previous year, indicating an increase of about 7.7%[152] - The group has implemented measures to enhance water and electricity management, including the establishment of a smart monitoring system for water and electricity usage[166] - The group aims to reduce harmful waste emissions by 1-2% compared to the 2022/23 fiscal year, focusing on better management and recycling practices[173] - A total of 564 tons of solid waste were recycled during the reporting period, reflecting the group's commitment to sustainability[173] - The group has been recognized for its water-saving initiatives, with schools receiving accolades for their efforts in water conservation[156] - The group encourages a paperless office environment and has implemented measures to reduce the use of plastic bags and disposable utensils in cafeterias[173] - The energy consumption per student has improved, with a reduction in electricity usage to 924.9 kWh for the year ending August 31, 2024, down from 762.4 kWh[152] - The group is actively promoting the creation of "water-saving universities" in accordance with provincial standards[162] - The group has adopted energy-efficient practices, including the replacement of old equipment with green products to minimize energy consumption[162] - The average energy consumption per student increased due to the construction of new campuses and the rise in full-time student enrollment[178] - The company aims to reduce average electricity usage by 1-2% compared to the 2022/23 fiscal year through various energy-saving measures[182] - The company has implemented water-saving projects, including the use of treated wastewater for irrigation, effectively reducing total water consumption[182] - The company has installed a distributed photovoltaic power generation project with an area of approximately 4,500 square meters and a capacity of about 930KW[191] - The company adheres to national and provincial policies aimed at reducing environmental impact, including energy conservation laws and water-saving management guidelines[184] - The company has received recognition for its green initiatives, including being named a "Green Low-Carbon Public Institution" in 2024[188] - The company is actively promoting energy-saving awareness among staff and students through training and campaigns[182] - The company has established strict management systems for energy usage and conservation, including regular inspections to prevent resource wastage[182] - The company is gradually replacing traditional lighting with LED energy-saving lights across its campuses[182] - The company has set a policy to maintain air conditioning temperatures at 26°C or above during summer[182] Financial Performance - The net profit attributable to the company's owners increased by 3.3% to RMB 1,971 million[46] - Revenue for the period was RMB 6,579 million, with a gross profit of RMB 3,644 million[55] - Operating profit reached RMB 2,846 million, compared to RMB 2,493 million in the previous period[55] - The group reported an adjusted net profit of RMB 1,971 million, up from RMB 1,908 million[55] - The group's revenue for the year ended August 31, 2024, reached RMB 6,579 million, an increase of 17.1% compared to RMB 5,616 million for the year ended August 31, 2023[65] - Domestic market revenue increased from RMB 5,396 million for the year ended August 31, 2023, to RMB 6,335 million for the year ended August 31, 2024, representing a growth of 17.4%[65] - International market revenue rose to RMB 244 million for the year ended August 31, 2024, up 10.9% from RMB 220 million for the year ended August 31, 2023[65] - Operating profit for the year ended August 31, 2024, was RMB 2,846 million, an increase of 14.2% from RMB 2,493 million for the year ended August 31, 2023[65] - Gross profit for the year ended August 31, 2024, was RMB 3,644 million, with a gross margin reflecting the impact of increased student enrollment and teaching investments[65] - The group recorded a net loss of RMB 1,975 million due to impairment losses on goodwill and intangible assets totaling RMB 1,911 million[65] - Other income from management and services provided to on-campus merchants was RMB 132 million, compared to RMB 100 million for the year ended August 31, 2023[65] - The group has achieved over 300% revenue growth since issuing convertible bonds in 2019, facilitating rapid business expansion[73] - The management team noted a compound annual growth rate of 4.6% for future revenue projections over the next five years[67] - The net profit for the year ended August 31, 2024, was RMB 502 million, a decrease of 67.4% compared to RMB 1,541 million for the year ended August 31, 2023[79] - Adjusted net profit increased to RMB 2,242 million, up 7.9% from RMB 2,077 million in the previous year[79] - EBITDA for the year was RMB 1,841 million, down 33.3% from RMB 2,762 million in the previous year[105] - Adjusted EBITDA rose to RMB 3,774 million, an increase of 12.3% compared to RMB 3,361 million for the previous year[105] - The company reported a financing cost of RMB 472 million, slightly up from RMB 469 million in the previous year[105] - The depreciation of property, plant, and equipment was RMB 793 million, an increase of 19.8% from RMB 662 million in the previous year[105] - The company anticipates challenges in new student enrollment due to increased competition among schools in the same region[110] - The company has converted all independent colleges into private schools, impacting the financials during the reporting period[83] - The compound annual growth rate (CAGR) of revenue for the next five years is projected to be 3.8%, down from 16.4% in the previous year due to potential changes in immigration policies[118] - Capital expenditure for the year ending August 31, 2024, was RMB 4,857 million, significantly up from RMB 2,637 million in the previous year, primarily related to the construction of new buildings in existing campuses[122] - Cash reserves as of August 31, 2024, amounted to RMB 6,626 million, an increase from RMB 5,802 million in the previous year[122] - The group’s financing costs slightly increased to RMB 472 million for the year ending August 31, 2024, from RMB 469 million in the previous year[118] - The group’s property, plant, and equipment grew by 22.9% to RMB 21,706 million as of August 31, 2024, compared to RMB 17,668 million in the previous year[122] - The average equity balance attributable to owners was calculated at 12.5%, indicating a reasonable level[115] - The group anticipates a decline in new student enrollment numbers for the fall of 2024, which will negatively impact revenue forecasts[117] - The discount rate used as of August 31, 2024, was 22.7%, up from 20.5% in the previous year[118] - The adjusted net asset return for the year ending August 31, 2024, is expected to increase by 3.3% to RMB 1,971 million[119] - The adjusted net asset return for the fiscal year ending August 31, 2024, is 12.5%, which is considered reasonable[136] - The debt-to-equity ratio as of August 31, 2024, is 19.5%, up from 15.3% in 2023[139] - The interest-bearing asset liability ratio is 26.4% as of August 31, 2024, compared to 24.1% in 2023[139] - The total bank and other borrowings amount to RMB 7,440 million as of August 31, 2024, an increase from RMB 6,138 million in 2023[142] Educational Initiatives - The group operates 15 major consolidated subsidiaries, including 12 schools in China and one in Australia, as of August 31, 2023[8] - The company emphasizes its commitment to providing affordable and quality education, aligning with the United Nations Sustainable Development Goals[14] - The group has established an ESG working group to oversee the preparation of ESG reports and assess performance across various areas[9] - The company aims to comply with IFC performance standards and local regulations, ensuring adherence to environmental and social policies[15] - The group opened 384 applied undergraduate programs in higher vocational education, an increase of 12 programs year-on-year[27] - The total number of campuses increased from 22 to 23, serving nearly 40,000 students in key economic regions[44] - The group initiated a "Smart Campus" project to enhance digital integration in teaching and management[29] - The group actively responded to national calls for educational digitalization, improving campus management efficiency[29] - The group plans to expand international education investments to enhance global competitiveness[45] - The group aims to cultivate skilled talents to meet the demands of new industries and business formats[27] - The group emphasizes that teaching quality largely depends on the quality of teachers, with most schools implementing performance reward and management systems to link teaching outcomes with teacher compensation[197] - No stock options were granted to any employees for the fiscal year ending August 31, 2024, consistent with the previous year where no options were granted as well[198] - The report pertains to China Education Group Holdings Limited for the fiscal year 2023/2024[199]

Investment Rating - The investment rating for the company is "Outperform the Market" [3][4][17]. Core Views - The company's net profit attributable to shareholders is expected to decline by 70% in the fiscal year 2024 due to goodwill impairment [3][6]. - The company achieved revenue of 6.579 billion yuan in fiscal year 2024, representing a year-on-year increase of 17.2%, closely aligning with the previous forecast of 6.604 billion yuan [3][6]. - Adjusted net profit for fiscal year 2024 is projected at 1.971 billion yuan, reflecting a 3.3% increase [3][6]. - The company plans to maintain a cash dividend payout ratio of approximately 40% for fiscal year 2024 [3][16]. Financial Forecasts and Key Indicators - Revenue projections for the company from 2019 to 2027 are as follows: - 2019: 5.616 billion yuan - 2024: 6.579 billion yuan (+17.1%) - 2025E: 7.283 billion yuan (+10.7%) - 2026E: 7.997 billion yuan (+9.8%) - 2027E: 8.692 billion yuan (+8.7%) [1][21]. - Net profit attributable to shareholders is forecasted as: - 2019: 1.380 billion yuan - 2024: 0.418 billion yuan (-69.7%) - 2025E: 2.161 billion yuan (+417.0%) - 2026E: 2.345 billion yuan (+8.5%) - 2027E: 2.515 billion yuan (+7.2%) [1][21]. - Earnings per share (EPS) are projected to be: - 2019: 0.51 yuan - 2024: 0.15 yuan - 2025E: 0.80 yuan - 2026E: 0.86 yuan - 2027E: 0.93 yuan [1][21]. - The company's price-to-earnings (P/E) ratio is expected to be: - 2025E: 4.3 - 2026E: 4.0 - 2027E: 3.7 [1][21]. - The company’s cash and cash equivalents are projected to increase to 10.789 billion yuan by 2025E, with a significant capital expenditure of 48.57 billion yuan in fiscal year 2024, marking an 84.2% increase [1][16][21].

Investment Rating - The investment rating for the company is "Hold" with a target price of 3.48 HKD, maintaining the current rating [1]. Core Views - The company aims to cultivate high-quality skilled talents and has reported a revenue of 6.58 billion RMB for FY24, representing a year-on-year increase of 17.1%, with adjusted net profit of 1.97 billion RMB, up 3.3% [1]. - The company maintains a stable dividend payout ratio, distributing a final dividend of 0.1028 RMB per share, which is approximately 40% of the adjusted net profit [1]. - The domestic revenue reached 6.34 billion RMB, growing by 17.4%, driven by an increase in the number of enrolled students and per-student income [1]. - The total number of full-time enrolled students reached approximately 270,000, a year-on-year increase of about 9%, with vocational education students numbering around 224,000, up 12.5% [1]. - The company has expanded its partnerships with enterprises to 3,980 and has established 61 industry colleges, enhancing the quality of employment for graduates [1]. Summary by Sections Financial Performance - For FY25, the revenue is projected to be 6.78 billion RMB (down from the previous estimate of 7.5 billion RMB), with adjusted net profit expected at 2.05 billion RMB (previously 2.42 billion RMB) [2]. - FY26 and FY27 revenues are forecasted at 6.99 billion RMB and 7.21 billion RMB, with adjusted net profits of 2.16 billion RMB and 2.29 billion RMB, respectively [2]. Market Expansion and Development - The company is deepening its focus on key regions and international development, with successful expansions in Shandong and Guangdong, increasing student capacity by nearly 40,000 [1]. - The international education program has seen new student enrollment increase by over 100%, with collaborations with more than 200 renowned global institutions [1]. - The launch of the "Smart Campus" project aims to integrate digital technology into teaching, research, and management, enhancing educational efficiency and student experience [1].

Summary of Conference Call Company and Industry - The conference call pertains to the higher education sector, specifically focusing on a group of schools operated by the company, which provides educational services and has a significant presence in the local market. Key Points and Arguments 1. **Increase in Value-Added Services**: The company is expanding the range of value-added services provided to schools, which is expected to increase profits and consequently the tax impact will also rise. The company maintains a high dividend payout ratio of 40% and plans to sustain this level in the future [1][12][22]. 2. **Revenue Growth**: Since its listing, the company has experienced a consistent revenue growth rate of 30%. The higher education sector is projected to continue growing until 2034, which will benefit the company’s core business [2][8]. 3. **Revenue Sources**: Currently, 87% of the company's revenue comes from local growth in the higher education sector, contributing 91% to the profit. The contribution from vocational education is minimal at 7%, and overseas schools contribute only 2% [2]. 4. **Impairment Losses**: The company has recognized impairment losses on certain schools due to discrepancies between acquisition valuations and current operational performance. For instance, a school in Sichuan triggered a 1.04 billion RMB impairment despite showing a 30% increase in student enrollment since acquisition [3][4]. 5. **Tuition Fee Growth**: The Sichuan school’s tuition fee growth has been limited to 6% due to government regulations, which is significantly lower than the expected increase of 20% to 50%. This has impacted the revenue expectations from this institution [15][16]. 6. **Future Enrollment Trends**: The company anticipates a decline in enrollment for certain vocational schools due to competition from high schools. This has led to further impairment losses being recognized [5][6]. 7. **Capital Expenditures**: The company’s capital expenditures reached a peak of 4.8 billion RMB, which is aimed at future growth and maintaining competitive advantages. A decline in capital expenditures is expected in the coming years, which may positively impact the dividend payout [7][20]. 8. **Tax Rate and Profitability**: The effective tax rate is projected to increase as the company expands its service offerings. The current tax rate is estimated to be around 10% to 15%, depending on tax refunds [21][22]. 9. **Debt Structure**: The company’s debt structure is stable, with a significant portion of its debt in RMB at low-interest rates. The impact of fluctuating interest rates on the overall debt service is minimal [27]. 10. **Future Profit Expectations**: The company expects 11% revenue growth for the current year, with a potential dip in profits in fiscal year 2025 due to rising costs and other factors. However, profits are expected to rebound in subsequent years [25][26]. Other Important but Overlooked Content - The company is actively managing its impairment risks and has strategies in place to mitigate potential declines in student numbers by adjusting tuition fees and reducing recruitment costs [11][19]. - The company has a cautious approach to future tuition fee increases, reflecting a conservative growth outlook in its financial projections [26][32]. - The overall utilization rate of the campuses is currently at 72%, with higher education institutions performing better than vocational schools in terms of enrollment [29][30]. This summary encapsulates the key insights from the conference call, highlighting the company's strategic direction, financial performance, and market outlook.

Financial Performance - For the fiscal year ending August 31, 2024, the company reported revenue of RMB 6,579 million, an increase of 17.1% compared to RMB 5,616 million in the previous year[3]. - The gross profit for the same period was RMB 3,644 million, reflecting a growth of 15.2% from RMB 3,164 million[3]. - Adjusted net profit attributable to the company's owners was RMB 2,242 million, up 7.9% from RMB 2,077 million[3]. - Operating profit increased by 14.2% year-on-year, reaching RMB 2,846 million[19]. - Adjusted net profit rose by 3.3% year-on-year, amounting to RMB 1,971 million[19]. - Adjusted EBITDA grew by 12.3% year-on-year, totaling RMB 3,774 million[19]. - The company recorded a net loss of RMB 1,975 million in other income and losses, primarily due to impairment losses on goodwill and intangible assets amounting to RMB 1,911 million[45]. - Main operating costs increased from RMB 2,452 million for the year ending August 31, 2023, to RMB 2,935 million for the year ending August 31, 2024, reflecting a rise of 19.7% due to increased student numbers[38]. - Administrative expenses rose to RMB 965 million for the year ending August 31, 2024, compared to RMB 775 million for the year ending August 31, 2023, driven by increased student enrollment and new campus investments[43]. - The company reported a net profit of RMB 502 million for the year, a decrease of 67.4% from RMB 1,541 million in the previous year[113]. - The company's income tax expense for the year ended August 31, 2024, was RMB 170 million, compared to RMB 93 million for the previous year, representing an increase of 83%[162]. - Total comprehensive income attributable to the company's owners for the year ended August 31, 2024, was RMB 421 million, a decrease from RMB 1,380 million in 2023, representing a decline of 69.5%[115]. - Basic earnings per share for the year ended August 31, 2024, was RMB 16.13, down from RMB 55.31 in 2023, reflecting a decrease of 70.8%[115]. Student Enrollment and Capacity - The total number of full-time students reached approximately 270,000, representing a year-on-year growth of about 9%[7]. - The number of higher education students increased by approximately 12.5% to 224,000[7]. - The company expanded its student capacity by nearly 40,000 through new and expanded campuses, increasing the number of campuses from 22 to 23[12]. - The number of cooperative schools increased to 3,980, contributing approximately 75,000 skilled graduates to society[15]. - The number of international education programs with verified qualifications increased to 7, with new student enrollment in international courses growing over 100% year-on-year[16]. - The group established 13 new industry colleges, bringing the total to 61, including notable institutions like Huawei ICT College[15]. Cash and Reserves - The cash reserves as of August 31, 2024, were recorded at RMB 6,626 million[3]. - Cash reserves increased to RMB 6,626 million as of August 31, 2024, up from RMB 5,802 million in 2023[60]. - The company reported cash and cash equivalents of RMB 6,238 million as of August 31, 2024, an increase from RMB 5,177 million in 2023, representing a growth of 20.5%[117]. Dividends and Shareholder Information - The board recommended a final dividend of RMB 0.1028 per share[3]. - The proposed final dividend is RMB 0.1028 per ordinary share, compared to RMB 0.1353 per share for the year ended August 31, 2023, reflecting a decrease of approximately 24.5%[90]. - The total dividend payout for the year is expected to be approximately 40% of the adjusted net profit attributable to the owners of the company[90]. - The company plans to offer shareholders the option to receive the final dividend in new shares instead of cash, pending approval at the upcoming annual general meeting[92]. - The annual general meeting is scheduled for January 21, 2025, with a suspension of share transfer registration from January 16 to January 21, 2025[93]. Market Performance and Strategy - Domestic market revenue increased from RMB 5,396 million for the year ending August 31, 2023, to RMB 6,335 million for the year ending August 31, 2024, representing a growth of 17.4% driven by an increase in student enrollment and average revenue per student[36]. - International market revenue rose to RMB 244 million for the year ending August 31, 2024, up 10.9% from RMB 220 million for the year ending August 31, 2023[37]. - The company anticipates a decline in new customer numbers due to increased market competition and changing customer preferences[51]. - The company is focused on enhancing vocational education capabilities through various initiatives, including building practical training centers and expanding international cooperation[70]. - The company is exploring strategic acquisitions to enhance market presence, targeting companies with a combined revenue of $200 million[7]. Corporate Governance and Compliance - The audit committee reviewed the financial performance for the year ended August 31, 2024, ensuring the integrity and accuracy of financial data[109]. - The company is committed to enhancing corporate governance practices to align with legal and professional standards[105]. - The company maintained compliance with public float requirements as per listing rules[101]. Employee Information - The company had 18,677 employees as of August 31, 2024, representing a 13% increase from 16,468 employees as of August 31, 2023[84]. - The company will provide various benefits to employees, including participation in social insurance plans and diverse welfare options[84]. - The company is committed to hiring based on qualifications and experience, ensuring equal employment opportunities without discrimination[87]. Future Outlook - Future plans include deepening industry-education integration and innovating international education models to cultivate skilled talent[20]. - The company anticipates sufficient resources to continue operations for at least the next twelve months, despite current liabilities exceeding current assets[130].

Investment Rating - The report maintains an "Accumulate" rating for the company [2][4]. Core Views - The company is expected to achieve a revenue of approximately 6.469 billion RMB in the fiscal year 2024, with a downward adjustment for the fiscal years 2025 and 2026 to 7.188 billion RMB and 7.967 billion RMB respectively [4]. - The adjusted net profit for fiscal year 2024 is projected to be around 2.105 billion RMB, with slight downward adjustments for the following years [4]. - The report highlights that the company has experienced a significant decline in net profit expectations for fiscal year 2024, primarily due to anticipated decreases in tuition fees and potential policy changes affecting international students in Australia [4]. Financial Summary - Revenue growth rates are projected to be 37.00% for 2020, 37.50% for 2021, 29.15% for 2022, and gradually decreasing to 10.83% by 2026 [1]. - The adjusted net profit growth rates are expected to be 28.73% for 2020, 57.13% for 2021, and tapering to 8.95% by 2026 [1]. - The price-to-earnings (PE) ratio is forecasted to decrease from 27.47 in 2020 to 4.77 by 2026, indicating a potential increase in valuation attractiveness over time [1].

Financial Performance - The main revenue for the six months ended February 29, 2024, was RMB 3,284 million, an increase of 18.3% from RMB 2,775 million for the same period in 2023[17]. - Gross profit for the same period was RMB 1,839 million, representing a gross margin of 56.0%, compared to RMB 1,593 million and a gross margin of 57.4% in 2023[17]. - Net profit attributable to the owners of the company increased to RMB 1,071 million, up 9.6% from RMB 977 million in the previous year[21]. - Adjusted net profit for the six months ended February 29, 2024, was RMB 1,092 million, compared to RMB 1,045 million in 2023, reflecting a growth of 4.5%[24]. - Operating profit for the period was RMB 1,475 million, an increase of 17.4% from RMB 1,257 million in the prior year[17]. - The adjusted EBITDA for the six months ended February 29, 2024, was RMB 1,956 million, up 16.7% from RMB 1,676 million for the same period in 2023[30]. - The net profit for the six months ended February 29, 2024, increased by 14.7% to RMB 1,188 million, compared to RMB 1,036 million for the same period in 2023[30]. - The gross profit for the six months ended February 29, 2024, was RMB 1,839 million, reflecting a growth of 15.4% from RMB 1,593 million for the same period in 2023[27]. - Profit before tax increased to RMB 1,283 million, representing a growth of 19.98% compared to RMB 1,069 million in the previous year[93]. - The total comprehensive income for the period was RMB 1,069 million, compared to RMB 976 million in the same period last year, reflecting a 9.5% increase[101]. Revenue Segmentation - The domestic market segment's revenue increased from RMB 2,668 million to RMB 3,179 million, representing a growth of 19.2%[27]. - The international market segment's revenue decreased to RMB 105 million, down from RMB 107 million for the same period in 2023[27]. - Domestic market revenue reached RMB 3,179 million, while international market revenue was RMB 105 million for the same period, indicating a strong focus on the domestic market[113]. - The education services revenue recognized over time was RMB 3,263 million, up from RMB 2,753 million in the previous year, marking a growth of approximately 18.4%[117]. Costs and Expenses - The company reported a financing cost of RMB 225 million, which increased from RMB 190 million in the previous year, indicating a rise of 18.4%[17]. - Administrative expenses rose to RMB 476 million from RMB 387 million, reflecting increased operational costs[93]. - The total employee costs increased to RMB 1,020 million, up from RMB 839 million for the same period in 2023, representing a 21.6% increase[127]. - The construction costs for new campuses and student dormitories increased to RMB 1,648 million, compared to RMB 840 million for the same period in 2023, indicating a 96.5% rise[137]. Financial Position - The company's cash reserves as of February 29, 2024, amounted to RMB 4,531 million, a decrease from RMB 5,802 million as of August 31, 2023[30]. - As of February 29, 2024, the company's bank and other borrowings and bonds amounted to RMB 8,933 million, an increase from RMB 8,603 million as of August 31, 2023[33]. - The net equity debt ratio as of February 29, 2024, was 23.0%, up from 15.3% as of August 31, 2023[33]. - The company maintained a prudent treasury policy and a robust liquidity structure as of February 29, 2024[33]. - The company recorded net assets of approximately RMB 19,148 million and cash reserves of approximately RMB 4,531 million as of February 29, 2024[81]. - The company had a net decrease in cash and cash equivalents of RMB 1,129 million, which is an improvement from a decrease of RMB 1,491 million in the previous year[106]. Shareholder Information - The total number of issued shares was 2,551,540,490, with significant shareholdings by directors, including 61.04% held by certain directors and their related entities[55]. - Major shareholder "Blue Sky" holds 772,184,000 shares, representing approximately 30.26% of the total issued shares[62]. - The company declared a mid-term dividend of RMB 0.1877 per share for the period, an increase from RMB 0.1638 per share for the same period in 2023[131]. - The company has a share option plan that may grant options to directors based on the number of shares held prior to the IPO[56]. Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code as set out in Appendix C1 of the listing rules for the six months ended February 29, 2024[50]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the six months ended February 29, 2024[51]. - The company has no significant contingent liabilities as of February 29, 2024[33]. Employee and Operational Developments - The company had 17,810 employees as of February 29, 2024, representing a 19% increase from 14,925 employees on February 28, 2023, primarily due to organic growth in staff numbers in new schools and districts[43]. - The company provides various benefits and social insurance plans for its employees, ensuring compliance with local labor laws[43]. - The company has implemented a mentorship program to help new teachers integrate into the teaching team more effectively[43]. Investment and Expansion Plans - The company plans to continue expanding its vocational education services across China, Australia, and the UK, focusing on high-quality technical talent development[15]. - The company raised approximately RMB 1,681.4 million from previous placements, with 70% allocated for expanding new campuses in the Greater Bay Area and 30% for potential acquisition projects[36]. - The company is focused on expanding its education business overseas while adhering to the updated foreign investment negative list regulations[75]. Risk Management - The company is monitoring foreign exchange risks and may consider hedging against significant foreign currency risks when necessary[33].