Financial Performance - Revenue for the year ended August 31, 2024, was RMB 955,107 thousand, representing a 25.3% increase from RMB 762,268 thousand in the previous year[1] - Gross profit increased by 24.2% to RMB 312,806 thousand, up from RMB 251,775 thousand[1] - Net profit for the year was RMB 53,956 thousand, a significant increase of 39.9% compared to RMB 38,561 thousand in the prior year[1] - Adjusted net profit reached RMB 69,913 thousand, reflecting a 22.2% growth from RMB 57,221 thousand[1] - Total customer contract revenue for 2024 reached RMB 955,107,000, a 25.3% increase from RMB 762,268,000 in 2023[30] - Tuition fees contributed RMB 760,118,000 in 2024, up 26.0% from RMB 603,516,000 in 2023[30] - The group reported a profit attributable to owners of RMB 45,009,000 for 2024, a 39.4% increase from RMB 32,263,000 in 2023[42] - The group’s income tax expense for 2024 was RMB 5,637,000, compared to RMB 15,754,000 in 2023, reflecting a significant reduction[38] - The group’s service costs for 2024 amounted to RMB 241,984,000, an increase from RMB 184,833,000 in 2023[45] Dividends - The company proposed a final dividend of 0.25 HKD per share and a special dividend of 0.50 HKD per share, with a total dividend payout ratio of 50.0%[1] - The board proposed a final dividend of HKD 23,165,708 (approximately RMB 21,132,222) for 2024, down from HKD 33,976,371 (approximately RMB 31,101,290) in 2023[39] Enrollment and Student Statistics - Total student enrollment increased to 34,307 in 2024, up from 30,339 in 2023, marking a growth of 6,968 students or 22.9%[3] - The number of students enrolled in the group's self-operated schools for the 2024-2025 academic year is projected to be 34,307, including 9,609 high school students and 24,698 university students[58] - The total number of students enrolled across all school categories reached 34,307 in 2024, representing a 13.5% increase from 30,339 in 2023 and a 26.4% increase from 27,155 in 2022[68] - The number of teachers increased to 1,513 in 2024, with approximately 56.3% holding a master's degree or higher[70] Assets and Liabilities - Non-current assets totaled RMB 3,499,467 thousand, slightly down from RMB 3,510,881 thousand in the previous year[10] - Current assets decreased to RMB 968,577 thousand from RMB 1,024,382 thousand, primarily due to changes in prepayments and other receivables[10] - Total liabilities decreased to RMB 1,649,370 thousand from RMB 1,755,561 thousand, indicating improved financial stability[10] - Total assets decreased to RMB 2,818,674,000 in 2024 from RMB 2,779,702,000 in 2023, reflecting a growth of 1.4%[12] - Interest-bearing bank and other borrowings increased to RMB 1,343,280,000 in 2024 from RMB 1,219,334,000 in 2023, representing a rise of 10.2%[12] - Non-current liabilities totaled RMB 1,978,331,000 in 2024, up from RMB 1,936,936,000 in 2023, indicating an increase of 2.1%[12] - Net assets slightly decreased to RMB 840,343,000 in 2024 from RMB 842,766,000 in 2023, a decline of 0.3%[12] - The company’s total equity decreased to RMB 840,343,000 in 2024 from RMB 842,766,000 in 2023, a decrease of 0.3%[12] Operational Insights - The company plans to implement cost-saving measures to maintain sufficient cash flow for operations[16] - The company’s cash flow forecasts indicate sufficient operating funds to meet financial obligations for at least the next 12 months[16] - The company is exploring opportunities to provide non-academic services for students, including dormitory and cafeteria services[84] - The company faces operational risks including changes in the regulatory environment and competition from other educational institutions[90] - The company has established a risk management structure to oversee significant business decisions and ensure compliance with applicable laws and regulations[94] Revenue Breakdown - Revenue from high school education increased by 39.3% from RMB 282.3 million in 2023 to RMB 393.4 million in 2024[65] - The group’s revenue from accommodation fees increased by 21.8% from RMB 43.2 million in 2023 to RMB 52.6 million in 2024[63] - The international education department recorded revenue of RMB 14.5 million in the 2023/2024 academic year, reflecting the expansion of international education services[78] - The company generated revenue of RMB 22.5 million from comprehensive educational programs in the 2023/2024 academic year[81] Cost and Expenses - The company's cost of sales for the fiscal year ending August 31, 2024, was RMB 642.3 million, an increase of RMB 131.8 million or 25.8% from the previous year[100] - Employee costs rose by RMB 54.4 million (or 25.1%) due to an increase in the number of teachers for the 2023/2024 academic year[100] - Administrative expenses for the year ended August 31, 2024, amounted to RMB 118.5 million, an increase of RMB 12.1 million or 11.4% compared to the previous year[104] - Other income and gains decreased to RMB 19.8 million, down RMB 13.2 million or 40.0% year-over-year, primarily due to a reduction in government subsidies[105] - Other expenses rose to RMB 18.7 million, an increase of RMB 6.2 million or 49.6%, mainly due to foreign exchange losses and financial guarantee contracts[107] - Financing costs increased to RMB 126.3 million, up RMB 26.6 million or 26.7%, driven by interest expenses on bank and other borrowings[108] Future Plans and Developments - The company plans to establish new high schools in collaboration with third-party partners, primarily following a light-asset model, to enhance market presence[71] - Tuition fees for new undergraduate and diploma students are set to increase to RMB 18,000 and RMB 15,900 respectively starting from the 2024/2025 academic year[75] - The company has entered into cooperation agreements with three new schools for educational management and consulting services, with services expected to commence in 2024 and 2025[80] Miscellaneous - As of August 31, 2024, the group had no significant contingent liabilities[113] - There were no major investments, acquisitions, or disposals during the reporting period[114] - The group has not experienced any significant events after the reporting period that would impact its financial position[118] - The audit committee has reviewed the accounting principles and practices adopted by the group for the year ending August 31, 2024[127] - The financial information in the announcement does not constitute audited consolidated financial statements for the year ending August 31, 2024[129] - The annual performance announcement will be published on the Hong Kong Stock Exchange website and the company's website[130]

Financial Performance - For the six months ended February 29, 2024, the company's revenue increased to RMB 520.4 million, up 27.7% from RMB 407.6 million for the same period in 2023[23]. - Gross profit for the same period rose to RMB 179.3 million, reflecting a 28.1% increase from RMB 140.0 million in the previous year[23]. - The company's net profit attributable to owners increased by 34.5% to RMB 31.6 million, compared to RMB 23.5 million in the prior year[23]. - The adjusted net profit for the six months ended February 29, 2024, was RMB 49.0 million, a 29.5% increase from RMB 37.8 million in the same period last year[23]. - Total revenue for the group rose to RMB 520,366, reflecting a 27.7% increase from RMB 407,579 year-on-year[26]. - Revenue for the reporting period reached RMB 520.4 million, an increase of RMB 112.8 million (27.7%) from RMB 407.6 million in the previous period[74]. - Tuition revenue rose to RMB 421.9 million, an increase of RMB 88.6 million (26.6%) compared to the previous period[74]. - Net profit for the six months ended February 29, 2024, was RMB 36,846,000, a 36.0% increase from RMB 27,004,000 in the prior year[180]. - Basic and diluted earnings per share increased to RMB 0.010 from RMB 0.008, reflecting a growth of 25%[180]. Student Enrollment and Educational Offerings - The total number of students enrolled across the company's self-operated schools reached 30,339, with 8,455 in high school and 21,884 at Virscend University[16]. - The number of students enrolled increased by 11.7%, reaching a total of 30,339 students compared to 27,155 in the previous year[43]. - The company reported a significant increase in student admissions, with notable acceptances to prestigious universities such as Cornell University and Peking University[17]. - The company has received WSCUC accreditation for Virscend University, enhancing its educational offerings in the U.S.[16]. - The company plans to establish new high schools in partnership with third-party business partners, primarily following a light-asset model[30]. - The company plans to offer non-academic education services and has partnered with commercial property owners to establish comprehensive educational programs[44]. - Virscend University received WSCUC accreditation, which will enhance the potential for recruiting international students and offering new degree programs[93]. Tuition and Fees - Tuition fees increased to RMB 421,895 for the six months ended February 29, 2024, up 26.6% from RMB 333,277 in the same period last year[26]. - The average tuition for domestic high school programs rose to RMB 44,020, while international high school programs saw an increase to RMB 133,374[42]. - The company plans to increase tuition fees for new undergraduate and associate degree students to RMB 18,000 and RMB 15,900, respectively, starting from the 2024/2025 academic year[58]. Operational Efficiency and Costs - Total compensation expenses for the six months ended February 29, 2024, amounted to approximately RMB 177.9 million, compared to RMB 147.2 million for the same period in 2023[20]. - Employee costs increased by RMB 27.1 million (23.4%) due to a rise in the number of teachers in the current academic year[71]. - The sales cost increased by RMB 73.5 million or 27.5% compared to the same period last year[76]. - Administrative expenses decreased by RMB 7.5 million or 10.2% due to improved school utilization and operational efficiency[78]. - Financing costs rose by RMB 16.8 million or 33.9% to RMB 66.4 million, primarily due to increased interest expenses on bank and other borrowings[81]. Cash Flow and Financial Position - Cash flow from operating activities showed a net outflow of RMB 78.4 million, compared to RMB 27.4 million in the previous year[87]. - Cash and cash equivalents decreased by RMB 250.1 million, ending at RMB 506.5 million[87]. - The company reported a cash and cash equivalents balance of RMB 506,467,000, down from RMB 756,413,000, reflecting cash flow challenges[183]. - The net cash flow used in investing activities was RMB (4,279), significantly improved from RMB (22,899) in the previous period[188]. - The company reported a net cash flow from financing activities of RMB (167,381), compared to RMB (111,966) in the prior period[188]. Compliance and Governance - Foreign investors in Sino-foreign cooperative private schools must meet qualification requirements, with foreign ownership capped at 50%[97]. - The implementation regulations effective from September 1, 2021, impose stricter operational and management requirements on private schools[104]. - The company has taken specific plans and measures to demonstrate compliance with qualification requirements[115]. - The board has reviewed the overall performance of structural contracts and believes the group has complied with all significant aspects[97]. - The company is assessing compliance with qualification requirements based on inquiries made to relevant education departments[97]. Shareholder Information - Major shareholders include Virscend Holdings with 1,320,632,045 shares (42.76%) and Bank of China with 458,876,100 shares (14.86%)[120]. - As of February 29, 2024, the total equity held by key individuals includes 1,388,132,045 shares (44.94%) held by Yan Yude and Wang Xiaoying[124]. - The company has a stock option plan in place, with a total of 300 million options available for grant[170]. - The trustee has purchased and held 45.65 million shares under the stock option plan as of February 29, 2024[173]. - The company has not granted any share options or incentives during the reporting period, making the calculation of potential shares issued under all plans not applicable[150].

Enrollment and Student Statistics - Total enrollment increased to 30,339 in 2023/2024 from 27,155 in 2022/2023, representing an increase of 8.0%[1] - Total enrollment for the 2023-2024 academic year reached 30,339 students, including 8,455 high school students and 21,884 university students[145] - The number of students enrolled increased to 30,339, up by 3,184 students or 11.7% from 27,155 in the prior year[154] - The number of high school students in domestic courses increased by 1,592 to 8,019, a growth of 24.8%[154] - The company employs approximately 1,481 teachers across its institutions in China[145] Financial Performance - Revenue for the six months ended February 29, 2024, was RMB 520,366,000, an increase of 27.6% compared to RMB 407,579,000 for the same period in 2023[36] - Gross profit for the same period was RMB 179,274,000, representing a gross margin of approximately 34.4%, up from RMB 139,984,000 in the previous year[36] - Net profit for the six months ended February 29, 2024, was RMB 36,846,000, a 36.0% increase from RMB 27,004,000 in the prior year[37] - Basic and diluted earnings per share increased to RMB 0.010 from RMB 0.008, reflecting a growth of 25%[36] - The group’s profit before tax for the six months ended February 29, 2024, was RMB 39,772 thousand, compared to RMB 28,038 thousand for the same period in 2023, reflecting a 42.1% increase[110] Revenue Sources - Tuition fees for the six months ended February 29, 2024, were RMB 318,570,000, a decrease of 42.7% compared to RMB 555,696,000 for the six months ended August 31, 2023[71] - Tuition fees contributed RMB 421,895 thousand, up 26.6% from RMB 333,277 thousand year-on-year[101] - The increase in revenue is attributed to student fees and non-academic training fees, which include tuition, accommodation, and overseas study consultation fees[151] - The group recorded revenue of RMB 3.6 million from overseas study consulting services for the six months ending February 29, 2024[177] Costs and Expenses - Sales costs increased by RMB 73.5 million or 27.5% compared to the same period last year, primarily due to increased student numbers and improved dining service quality[8] - Total operating costs, including service costs and employee benefits, increased to RMB 90,436 thousand and RMB 161,406 thousand respectively, compared to RMB 58,575 thousand and RMB 132,884 thousand in the previous year[103] - Employee costs increased by RMB 27.1 million (or 23.4%) due to the rise in the number of teachers for the 2023/2024 academic year[188] - Administrative expenses decreased by RMB 7.5 million (or 10.2%) due to improved school utilization and operational efficiency[190] - Financing costs rose by RMB 16.8 million (or 33.9%) to RMB 66.4 million, primarily due to increased interest expenses on bank and other borrowings[192] Cash Flow and Liquidity - Net cash flow used in operating activities was RMB (78,406) thousand for the six months ended February 29, 2024, compared to RMB (27,387) thousand for the same period in 2023[9] - The company’s cash and cash equivalents decreased to RMB 506,467 thousand as of February 29, 2024, down from RMB 756,413 thousand at the beginning of the period[9] - The group reported a net cash outflow from operating activities of RMB 78,406 thousand for the six months ended February 29, 2024, compared to RMB 27,387 thousand for the same period in 2023[110] - Cash and cash equivalents at the end of the period were RMB 506,467,000, up from RMB 226,920,000 at the end of the previous period[111] Assets and Liabilities - Total assets as of February 29, 2024, amounted to RMB 3,527,955,000, compared to RMB 3,510,881,000 as of August 31, 2023[38] - Current liabilities decreased to RMB 1,375,792,000 from RMB 1,755,561,000, indicating improved liquidity[38] - The company’s total liabilities as of February 29, 2024, were RMB 1,999,039,000, which is a slight increase from RMB 1,936,936,000 as of August 31, 2023[39] - The company’s bank loans amounted to RMB 1,297,990,000 as of February 29, 2024, compared to RMB 1,166,200,000 as of August 31, 2023, marking an increase of 11.3%[48] Strategic Developments - Virscend University received WSCUC accreditation on March 6, 2024, which will enhance the potential for international student enrollment and the introduction of new degree programs[11] - The company plans to open new degree programs and off-campus courses based on the recent accreditation[11] - The company aims to comply with qualification requirements for foreign investors in Sino-foreign cooperative private schools[21] - The company plans to continue its market expansion and product development strategies in the upcoming fiscal periods[34] - The company is optimistic about the strong demand for quality private education in Southwest China and plans to implement multiple expansion strategies to achieve future growth[154] Dividends and Shareholder Returns - The company paid dividends amounting to RMB 30,877,725.96, which were declared in January 2024 and paid in February 2024[119] - The company has proposed an interim dividend of HKD 0.55 per share for the six months ended February 29, 2024[125] Other Financial Metrics - The total tax expense for the period was RMB 2,926,000, significantly higher than RMB 1,034,000 for the previous period, indicating a 183.5% increase[78] - The company reported a foreign exchange gain of RMB 120, compared to a loss of RMB 93 in the previous period[37] - The group’s other income and gains decreased to RMB 5,731 thousand from RMB 14,536 thousand year-on-year, primarily due to a reduction in government grants[101]

Revenue Growth - The group's revenue increased from RMB 551.1 million for the year ended August 31, 2022, to RMB 762.3 million for the year ended August 31, 2023, representing a growth of 38.3%[4] - Revenue for the same period rose to RMB 762.3 million, reflecting a growth rate of 38.3%[43] - Revenue from tuition fees increased by RMB 167.3 million (or 38.3%) to RMB 603.5 million, driven by an increase in student enrollment and average tuition fees[168] - Revenue from school cafeteria operations rose by RMB 20.3 million (or 50.5%) to RMB 60.5 million, attributed to the increase in student numbers and improved service quality[168] Student Enrollment - The number of students enrolled in the group's self-operated schools for the 2023-2024 academic year is projected to be 30,339, with 8,455 in high school and 21,884 in university[2] - Total enrollment for the 2023-2024 academic year is 30,339 students, with 8,455 in high school, 21,884 in university, and 9,903 in online education[19] - The total number of high school students reached 6,871, marking a growth rate of 54.4%[43] - The total number of university students was 20,284, with a growth rate of 9.5%[46] Academic Performance - The number of students from Chengshi School who received admission to QS World University top 100 universities increased from 145 in 2022 to 168 in 2023[1] - Approximately 89.7% of flagship school graduates achieved scores eligible for admission to top Chinese universities in the 2023 college entrance examination, down from 94.7% in 2022[20] - 24 high school graduates received admission notices from Peking University or Tsinghua University, a decrease from 47 in 2022[20] Financial Performance - The adjusted net profit for the same period was RMB 57,221,000, compared to an adjusted net loss of RMB 12,091,000 in the prior year[33] - The gross profit margin for the fiscal year 2023 was 33.0%, up from 30.4% in the previous year[36] - The company achieved a net profit margin of 5.1% for the fiscal year 2023, a recovery from a net loss margin of 0.7% in the previous year[36] - The company reported a final dividend of HKD 0.4 per share and a special dividend of HKD 0.7 per share for the year ending August 31, 2023[151] Operational Expansion - The group plans to enhance its market position in Southwest China by establishing new high schools in partnership with third-party business partners and increasing the utilization and tuition of existing schools[16] - The company plans to expand its offerings with 34 bachelor's programs and 28 diploma programs, aiming to enhance its market position[32] - The company plans to establish new high schools and increase tuition fees to enhance campus utilization[47] - The group has opened two new high schools in Chengdu and one in Meishan, Sichuan Province, following a light-asset model[102] Employee and Teacher Statistics - The number of teachers increased to 1,481 in the 2022/2023 academic year, up from 1,319 in the previous year, with about 54.5% holding a master's degree or higher[22][24] - As of August 31, 2023, the group had 1,904 employees, an increase from 1,623 employees as of August 31, 2022[112] - The total salary expenses for the group for the year ending August 31, 2023, were approximately RMB 2,754 million, compared to RMB 2,283 million for the previous year[119] Financial Management and Structure - The company aims to maintain a balance between continuous funding supply and flexibility through the use of bank loans[135] - The company has established arrangements with lenders to ensure credit support for its business operations and expansion[153] - The group’s leverage ratio increased from approximately 178.7% as of August 31, 2022, to approximately 251.2% as of August 31, 2023, due to an increase in interest-bearing bank and other borrowings[100] - The company has a strong financial management team, with the CFO providing financial analysis for external investments and acquisitions[139] Non-Academic Services - The company will continue to seek opportunities in non-educational services for students, including local living services and overseas study consulting[49] - The company is exploring opportunities to provide non-academic services for students, including dormitory and cafeteria services[95] - The company recorded revenue of RMB 70 million from overseas study consulting services in the 2022/2023 academic year[81] Governance and Compliance - The board is responsible for managing the overall risks of the group, including decisions on expanding the school network to new regions and increasing tuition fees[136] - The company has complied with all applicable environmental laws and regulations in China, ensuring the health and safety of students[148] - The audit committee's main responsibilities include reviewing compliance with corporate governance codes and the disclosure of governance reports[198]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容所導致或因倚賴該等內 容而產生的任何損失承擔任何責任。 Virscend Education Company Limited 成 實 外 教 育 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1565） 截 至 二 零 二 三 年 八 月 三 十 一 日 止 年 度 的 年 度 業 績 公 告 年度業績概要 董事會議決就截至二零二三年八月三十一日止年度建議派付末期股息每股0.4港仙 及特別股息每股0.7港仙。 截至 截至 二零二三年 二零二二年 八月 八月 三十一日 三十一日 止年度 止年度 變動 百分比 人民幣千元 人民幣千元 人民幣千元 變動 收益 762,268 551,118 211,150 +38.3% 毛利 251,775 167,607 84,168 +50.2% 溢利 38,561 3,891 34,670 +891.0% 母公司擁有人 ...

Financial Performance - For the six months ended February 28, 2023, the total customer contract revenue was RMB 407,579,000, an increase of 36.5% compared to RMB 298,659,000 for the same period in 2022[3] - Tuition fees amounted to RMB 333,277,000, up 35.5% from RMB 245,662,000 year-on-year[3] - The net profit attributable to equity holders of the parent company for the six months ended February 28, 2023, was RMB 23,500,000, compared to RMB 10,136,000 for the same period in 2022, representing a significant increase of 132.5%[8] - The basic and diluted earnings per share for the six months ended February 28, 2023, were RMB 0.008, compared to RMB 0.003 for the same period in 2022, reflecting a 166.7% increase[8] - Revenue for the six months ended February 28, 2023, increased to RMB 407,579,000, representing a growth of 36.5% compared to RMB 298,659,000 for the same period in 2022[82] - Gross profit rose to RMB 139,984,000, a significant increase of 63.4% from RMB 85,689,000 year-over-year[82] - Net profit for the period surged to RMB 27,004,000, marking a remarkable increase of 255.5% compared to RMB 7,597,000 in the previous year[82] - Adjusted net profit reached RMB 37,846,000, reflecting an 89.6% increase from RMB 19,964,000 in the same period last year[82] Revenue Sources - The company reported a revenue of RMB 9,044,000 from loan fundraising with Virscend Holdings for the six months ended February 28, 2023, compared to zero in the previous year[37] - The company generated RMB 932,000 from dining and accommodation services with Tianren Hotel, an increase from RMB 749,000 in the previous year[37] - The total revenue from other income and gains was RMB 14,536,000, a decrease from RMB 16,966,000 in the previous year[3] - Revenue from overseas study consulting services recorded RMB 2.3 million for the six months ending February 28, 2023[103] - The company has developed a comprehensive education program in partnership with commercial property owners, generating RMB 6.6 million in revenue[105] Enrollment and Education Services - Total enrollment for the 2022-2023 academic year reached 27,155 students, with 6,871 in high school and 20,284 in university[89] - The number of domestic high school students increased by 62.5% to 6,427, contributing to an overall enrollment growth of 18.2%[98] - The average tuition for domestic high school programs rose to RMB 41,621, while international high school programs reached RMB 116,314[97] - The overall utilization rate of schools improved to 52.6% for the period ended February 28, 2023, compared to 43.5% for the previous year[121] - The company plans to open a new profit-making high school in Meishan, Sichuan Province, by September 2023[120] Operational Efficiency - The company is committed to developing new products and technologies to improve its educational services and operational efficiency[37] - Employee costs increased by RMB 28.4 million (or 32.4%) due to a rise in the number of teachers as a result of increased student enrollment and the opening of new high schools[137] - Administrative expenses rose by RMB 23.4 million (or 46.4%) to approximately RMB 74.8 million, primarily due to increased fees for business consulting services related to financial matters[157] - Sales and distribution expenses increased by RMB 0.3 million (or 15.8%) to RMB 2.2 million due to higher advertising costs from the promotion of two new schools for the 2022/2023 academic year[139] Financial Position and Liabilities - As of February 28, 2023, the total bank loans to be repaid amounted to RMB 1,051,800,000, an increase from RMB 796,400,000 as of August 31, 2022[18] - The company reported a decrease in other payables from RMB 115,930,000 as of August 31, 2022, to RMB 25,946,000 as of February 28, 2023, reflecting a significant reduction in liabilities[14] - The group's leverage ratio increased from approximately 178.7% as of August 31, 2022, to approximately 198.9% as of February 28, 2023, mainly due to an increase in interest-bearing bank borrowings[188] Strategic Initiatives - The company is focusing on expanding its operations in the southwestern region of China, including Sichuan, Guizhou, Yunnan, and Chongqing[33] - The company is exploring new strategies for market expansion and potential acquisitions to enhance its educational offerings[37] - The company aims to establish new high schools in collaboration with third-party partners, primarily following a light-asset model[99] - The company has expanded its educational product offerings to include international education programs in Europe and Asia since 2022[124] Governance and Compliance - The board of directors did not recommend the payment of a dividend for the year ended August 31, 2022[42] - The company did not recommend any dividend payment for the six months ended February 28, 2023[61] - The group has established an audit committee to oversee financial reporting procedures and risk management systems[195] - The group has no significant contingent liabilities as of February 28, 2023[189]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容所導致或因倚賴該等內 容而產生的任何損失承擔任何責任。 Virscend Education Company Limited 成 實 外 教 育 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1565） 截 至 二 零 二 三 年 二 月 二 十 八 日 止 六 個 月 之 中 期 業 績 公 告 成實外教育有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其附 屬公司截至二零二三年二月二十八日止六個月的未經審核綜合業績。本公告列載本 公司二零二三年中期報告全文，並符合香港聯合交易所有限公司證券上市規則中有 關中期業績初步公告附載資料之相關要求。 承董事會命 成實外教育有限公司 主席 王小英 香港，二零二三年四月二十八日 ...

Enrollment and Academic Performance - Total enrollment for the 2022-2023 academic year reached 27,155 students, with 6,871 in high school and 20,284 at Sichuan International Studies University[4]. - Approximately 94.7% of flagship school graduates achieved scores qualifying them for top Chinese universities, an increase from 90.4% in the previous year[5]. - In the 2022 Gaokao, 47 high school graduates were admitted to Peking University or Tsinghua University, up from 27 in 2021[5]. - The average university admission rate in Sichuan Province is approximately 36.4%, significantly lower than the 72.4% rate for other Virscend schools[5]. - The university ranked 18th among 157 independent colleges in the 2022 Wu Shulian rankings, with a comprehensive strength ranking of 64th among 396 independent and private universities[23]. - The flagship schools achieved a college admission score of approximately 94.7% for graduates eligible to apply to top universities in China, an increase from 90.4% in the previous year[37]. - 47 high school graduates were admitted to Peking University or Tsinghua University, up from 27 in the previous year[37]. - The total number of enrolled students increased to 27,155 in the 2022/2023 academic year, up from 22,967 in the previous year, resulting in an overall utilization rate of 52.6%, compared to 43.5% in 2021/2022[60]. Financial Performance - The adjusted net profit for the year ended August 31, 2022, was RMB 12.1 million, an increase of RMB 41.8 million compared to the previous year[20]. - Revenue for the year ended August 31, 2022, rose to RMB 551.1 million, representing a growth rate of 14.1%[20]. - The gross profit margin for the year ended August 31, 2022, was 30.4%[13]. - The net profit margin for the year ended August 31, 2022, was 0.7%[13]. - The total revenue of the group increased from RMB 483.0 million for the year ended August 31, 2021, to RMB 551.1 million for the year ended August 31, 2022, representing a growth of 14.1%[45]. - Tuition fees increased by 9.7% from RMB 397.8 million in 2021 to RMB 436.3 million in 2022, with a notable increase in accommodation fees by 23.8%[46]. - The company reported a significant increase in service fee revenue by RMB 12.0 million or 123.5%, mainly from educational management and consulting services provided to various schools[102]. - The company reported a net profit of RMB 3,891,000 for the year ended August 31, 2022, recovering from a net loss of RMB 139,268,000 in the previous year[113]. Operational Changes and Strategies - The company terminated all schools providing compulsory education services due to regulatory changes, impacting business expansion plans[20]. - The company plans to establish new high schools and improve existing campus utilization while gradually increasing tuition fees[25]. - The company will focus on providing non-degree education services to third-party owned kindergartens, responding to increasing demand due to significant advancements in online kindergarten operations[25]. - The company plans to expand its school network into new regions and increase tuition fees as part of its growth strategy[77]. - The company aims to enhance investment in AP and A level programs to counteract the negative impact of declining enrollment in other courses[52]. - The company is exploring opportunities to provide non-academic services, such as dormitory and cafeteria services for students[70]. - The company plans to implement multiple expansion strategies to strengthen its market position in the high-quality private education sector in Southwest China[59]. Human Resources - The company employs 1,319 teachers across its institutions in China[4]. - The total number of teachers increased to 1,319 in 2022 from 1,177 in 2021, indicating a growth of 12.1%[53]. - The total employee compensation expense for the year ended August 31, 2022, was approximately RMB 228.3 million, compared to RMB 151.2 million for the eight months ended August 31, 2021[125]. Risk Management and Compliance - The company faced various operational risks, including changes in the regulatory environment and competition from other educational institutions[77]. - The company has established a risk management structure to oversee significant business decisions related to major risk exposures[77]. - The company has maintained compliance with relevant laws and regulations impacting its business operations during the reporting period[152]. - There were no significant disputes with employees, suppliers, or customers during the year ending August 31, 2022[160]. Shareholder and Governance - The company did not recommend a final dividend for the year ending August 31, 2022, consistent with the previous year[153]. - The company's available distributable reserves as of August 31, 2022, were zero, unchanged from the previous year[166]. - The company has established a remuneration committee to review the compensation policy for directors and senior management, considering the group's operational performance and market practices[180]. - The company has not entered into any significant contracts with major shareholders or their affiliates during the fiscal year ending August 31, 2022[178]. - The company has not disclosed any significant related party transactions outside of those mentioned in the annual report[178].

Financial Performance - The total revenue for the six months ended February 28, 2022, was RMB 298.7 million, an increase of 15.2% from RMB 259.2 million for the same period in 2021[9][18]. - Gross profit for the same period was RMB 85.7 million, reflecting an 8.2% increase from RMB 79.2 million in the previous year[10]. - The net profit for the period was RMB 7.6 million, a significant turnaround from a loss of RMB 63.7 million in the prior year, marking an increase of 111.9%[11]. - Earnings attributable to equity holders of the parent reached RMB 10.1 million, compared to a loss of RMB 59.8 million in the previous year, representing a 117.0% increase[12]. - Revenue increased by RMB 39.4 million (or 15.2%) to RMB 298.7 million for the six months ended February 28, 2022, compared to RMB 259.2 million for the same period last year[42]. - Tuition revenue rose by RMB 29.9 million (or 13.8%) to RMB 245.7 million, driven by an increase in student enrollment[42]. - The company reported a profit before tax of RMB 10,101,000, a significant recovery from a loss of RMB 54,710,000 in the previous year[100]. - The company reported a net loss of RMB 1,797,535,000 for the period, compared to a profit in the previous year[108]. Student Enrollment and Education Services - The number of students enrolled in self-operated schools reached 22,967, with high school enrollment at 4,449 and university enrollment at 18,518[3]. - Total student enrollment as of February 28, 2022, reached 22,967, a 9.7% increase from 20,928 in the previous year[23]. - The company operates 8 schools across five cities in Sichuan Province, maintaining a strong reputation in the private education sector for over 20 years[4]. - The company plans to establish new high schools in Sichuan, with a total expected capacity of 9,870 students across multiple locations[26]. - Virscend University is expected to achieve full accreditation by September 2022, enhancing its educational offerings[3]. Tuition Fees and Revenue Generation - Tuition fees generated RMB 245.7 million, up 13.8% from RMB 215.8 million in the previous year, driven by increased student enrollment[19][20]. - Average tuition fees for domestic high schools increased from RMB 35,359 to RMB 37,998, while international high school fees rose from RMB 104,973 to RMB 107,548[21]. - The current tuition fees for high schools range from RMB 30,000 to RMB 58,000, while university fees are RMB 15,000 for diplomas and RMB 17,000 for bachelor's degrees[31]. Operational Efficiency and Costs - The gross margin for the six months ended February 28, 2022, was 28.7%, down from 30.5% in the previous year[16]. - The overall utilization rate of the school's capacity improved to 43.5% from 41.0% year-on-year[28]. - Research and development costs increased by RMB 0.5 million (or 23.8%) due to the expansion of new schools and academic center initiatives[46]. - Selling and distribution expenses decreased by RMB 4.1 million (or 68.2%) to RMB 1.9 million, primarily due to reduced advertising costs from previous school openings[47]. - Administrative expenses decreased by RMB 6.5 million (or 12.0%) for the six months ended February 28, 2022[49]. - Other expenses decreased by RMB 44.4 million (or 94.6%), largely due to the absence of impairment losses related to a joint venture in the previous year[50]. Financial Position and Cash Flow - The net cash flow from operating activities was RMB 5,384 thousand, while cash flow from investing activities was RMB (77,480) thousand, and cash flow from financing activities was RMB (433,777) thousand, resulting in a net decrease in cash and cash equivalents of RMB 505,873 thousand[55]. - The company's cash and cash equivalents decreased to RMB 126,101,000 from RMB 631,735,000[104]. - The company’s total liabilities increased, with a net cash outflow from financing activities of RMB 433,777,000[112]. - The company issued new bank loans totaling RMB 197,000,000 during the period, compared to RMB 140,000,000 in the previous year[112]. Risk Management and Compliance - The group faces operational risks including changes in the regulatory environment and competition from other educational institutions[36]. - The board is responsible for managing overall risks and approving significant business decisions related to school expansion and tuition increases[40]. - The company confirmed compliance with structural contracts and believes it has adhered to all significant aspects of these contracts[79]. - The company has not disclosed any specific policies regarding the implementation of new regulations affecting private education institutions in China[81]. Shareholder Information and Corporate Governance - As of February 28, 2022, the major shareholders held approximately 44.79% of the company's shares[83]. - The company has adopted a share option scheme to incentivize qualified individuals, allowing for a maximum of 300,000,000 shares to be issued, representing approximately 9.71% of the issued shares as of the report date[92]. - The board did not recommend the declaration of an interim dividend for the six months ending February 28, 2022, compared to an interim dividend of HKD 0.019 for the same period in 2021[74]. - The company has not established any arrangements for directors to acquire shares or debt securities during the reporting period[85]. Related Party Transactions - The group has various related party transactions, including receivables from Chengdu Experimental Foreign Language School amounting to RMB 340,478,000 as of February 28, 2022[161]. - The group has secured bank borrowings of RMB 253,000,000 with properties located in Chengdu[15]. - The group recorded revenue from related party transactions with Tianren Hotel amounting to RMB 749,000 for the six months ended February 28, 2022, compared to RMB 705,000 in the previous year, reflecting a growth of approximately 6.24%[164].