Core Viewpoint - Minsheng Education is implementing a new smart education ecosystem strategy, focusing on the dual development of "higher education + vocational education" and the integration of "campus education + online education" [2] Group 1: Company Overview - Minsheng Education Group was founded in 1998 and operates higher education and online education institutions in various regions including Beijing, Chongqing, Shandong, Yunnan, Inner Mongolia, Hong Kong, and countries like Singapore and Australia [2] - The company offers a wide range of educational services including associate, undergraduate, and graduate education, HSK (Chinese proficiency test), teacher training, IT online courses, and modern distance education public services [2] - As of November 2020, Minsheng Education had approximately 93,000 students enrolled in campus education (including about 56,000 undergraduates) and around 1.3 million students in online education [2] Group 2: Financial Performance - As of April 15, the stock price of Minsheng Education was HKD 0.131, up 2.34% from the previous trading day, with an intraday low of HKD 0.123, marking a near one-year low [1] - The net capital inflow on that day was HKD 99,800, with a total inflow of HKD 168,710 and outflow of HKD 68,900 [1] Group 3: Strategic Vision and Recognition - The company aims to become a leader in smart education and a trusted quality private higher education group, emphasizing the importance of technology in education [3] - Minsheng Education has received numerous accolades, including "National Advanced Social Organization" and "Top Ten Leading Brands in 2020" in the education industry, reflecting its recognition by educational authorities and society [3]

Financial Performance - Total revenue for the year ended December 31, 2024, was approximately RMB 1,947.2 million, a decrease of about 17.2% compared to 2023[4] - Adjusted EBITDA for the same period was approximately RMB 581.5 million, down approximately 41.2% from 2023[4] - Adjusted net profit for the year was approximately RMB 180.1 million, representing a decrease of about 34.3% compared to the previous year[4] - Gross profit for the year was approximately RMB 870.2 million, down from RMB 1,260.3 million in 2023[6] - The company reported a net profit of RMB 47.7 million for the year, compared to RMB 121.2 million in 2023[6] - Basic and diluted earnings per share for the year were RMB 0.0003, a significant decrease from RMB 0.0329 in 2023[8] - Other income and gains decreased by approximately 17.5% to about RMB 149.5 million for the year ended December 31, 2024, down from RMB 181.2 million for the year ended December 31, 2023, mainly due to a reduction in interest and investment income[75] - Selling expenses decreased by approximately 21.5% to about RMB 180.3 million for the year ended December 31, 2024, down from RMB 229.8 million for the year ended December 31, 2023, primarily due to a reduction and optimization of sales and marketing personnel[76] - Administrative expenses decreased by approximately 4.2% to about RMB 483.0 million for the year ended December 31, 2024, down from RMB 504.4 million for the year ended December 31, 2023, due to effective cost control[77] Assets and Liabilities - Total assets as of December 31, 2024, were approximately RMB 11,255.4 million, with net assets of approximately RMB 5,938.0 million[4] - Total liabilities as of December 31, 2024, were approximately RMB 5,318.0 million, compared to RMB 5,188.0 million in 2023[10] - The total assets of the group as of December 31, 2024, amounted to RMB 11,255,426,000, compared to RMB 11,366,568,000 in 2023, reflecting a slight decrease[21] - The total liabilities of the group were RMB 5,317,434,000 as of December 31, 2024, compared to RMB 5,415,429,000 in 2023, showing a reduction[22] - As of December 31, 2024, the company had a net current asset value of approximately RMB 758.5 million, with current assets decreasing from approximately RMB 4,312.7 million to RMB 4,222.3 million[86] - Current liabilities decreased from approximately RMB 3,775.2 million as of December 31, 2023, to approximately RMB 3,463.8 million as of December 31, 2024, primarily due to the repayment of certain interest-bearing bank and other borrowings[86] Capital and Investments - The capital debt ratio was approximately 37.0%, indicating a healthy level of leverage[4] - Capital expenditures for the year were RMB 384,385,000, with RMB 360,630,000 allocated to the campus education segment and RMB 23,755,000 to online education[21] - As of December 31, 2024, the group's capital commitments amounted to approximately RMB 342.996 million, a decrease of 27.0% from RMB 470.410 million in 2023[87] - The group had no significant investments, acquisitions, or disposals during the year ending December 31, 2024[101] - The group has ongoing arbitration regarding a dispute over the option to acquire 49% of Leed Education Holding Limited, with a claimed exit price of RMB 2,180,735,576.50[92] - The group has provided loans totaling RMB 400 million to Leed Education Technology (Beijing) Co., Ltd., secured by the 49% equity stake in Leed Group[95] Employee and Operational Metrics - As of December 31, 2024, the company employed approximately 6,700 employees, a decrease from 6,900 employees in 2023[103] - The company has reviewed and increased employee compensation for 2024 based on performance, experience, and industry standards[103] - The group operates or manages 10 schools across Chongqing, Shandong, Yunnan, and Inner Mongolia, with a total enrollment of approximately 100,000 students, including about 61,000 full-time undergraduates[44] - The group has established over 1,900 learning centers across 31 provinces, cities, and autonomous regions in China, serving a cumulative total of over 50 million students and users[43] Education Services and Partnerships - Campus education segment generated revenue of RMB 1,394,292,000, while online education segment contributed RMB 552,916,000 for the year ended December 31, 2024[19] - The group’s online education services have partnered with approximately 350 domestic key universities and established over 1,900 learning centers nationwide[48] - The group’s employment service platform connects approximately 42,000 employers with a job demand of about 4 million positions[55] - The group has linked approximately 310 million end-users and 400 million job positions, enhancing its employment service capabilities[43] - The education information service has partnered with over 400 institutions, serving over 13 million students through its online education platform, Youmook[58] Future Plans and Strategic Initiatives - The group plans to enhance the quality of higher education by optimizing teaching environments and strengthening professional teacher teams[65] - The group aims to advance a digital and intelligent service platform for learning, employment, and entrepreneurship, covering all aspects from enrollment to employment[66] - The group will accelerate the application of big data and artificial intelligence in its business areas to enhance talent cultivation[67] Tax and Regulatory Matters - The income tax expense for 2024 was reported as a negative RMB 36,307 thousand, a significant decrease from RMB 200,546 thousand in 2023, indicating a tax benefit[30] - The group did not declare any dividends for the current year, maintaining the same stance as in 2023[40] - The company did not declare any final dividends for the reporting period, compared to 0.98 HKD cents for the year ended December 31, 2023[107] - The independent auditor confirmed that the preliminary announcement data aligns with the consolidated financial statements for the year ended December 31, 2024[112] - The audit committee reviewed the company's accounting standards, internal controls, and financial reporting matters[111]

[Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides fundamental details about the company's identity and registration [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the group's operational performance, financial results, and strategic outlook for the reporting period [Business Review of the Reporting Period](index=5&type=section&id=Business%20Review%20of%20the%20Reporting%20Period) The Group, a leading 'Internet+' vocational education provider, saw campus education as its core with 100,000 students and progress in for-profit registration, while expanding other services to over 50 million users - The Group has established an integrated vocational education service system covering 'recruitment-assessment-teaching-practical training-examination-employment', with eight business segments including campus education, online education, and human resource services[5](index=5&type=chunk)[7](index=7&type=chunk) - Substantial progress has been made in the for-profit classification registration of campus education, with Yunnan University Dianchi College approved to be re-designated as a for-profit school, commencing enrollment under this designation in the 2024-2025 academic year[12](index=12&type=chunk)[14](index=14&type=chunk) Business Segment Key Data (As of June 30, 2024) | Business Segment | Key Data (As of June 30, 2024) | | :--- | :--- | | **Campus Education** | 10 schools, approximately 100,000 enrolled students | | **Online Education** | Approximately 350 partner institutions, serving about 630,000 students; MBAChina platform accumulated approximately 3.4 million registered users | | **Vocational Skills Enhancement** | Approximately 9 million cumulative teacher trainings; MOOC platform accumulated approximately 25 million users | | **Human Resources Services** | Approximately 900 partner HR agencies, 38,000 employers, connecting approximately 4.7 million C-end users | | **Education Informatization** | UMOOC platform partnered with over 400 institutions, serving over 13 million students | | **Examination and Assessment Services** | HSK online exams served over 180,000 cumulative candidates | [Future Outlook](index=15&type=section&id=Future%20Outlook) The Group's future strategy focuses on high-quality higher education development and building a digital service ecosystem covering learning, employment, and entrepreneurship, aligned with national policy support - The Group's development strategy aligns with national policy directions, including 'significantly improving the quality of vocational education' from the 2024 Government Work Report and 'accelerating the construction of an industry-education integration vocational education system' proposed by the Third Plenary Session of the 20th Central Committee[41](index=41&type=chunk) - Future core strategies include: - **High-Quality Development**: Continuously investing resources, optimizing teaching environment and faculty, and cultivating high-quality applied vocational talents - **Digital and Intelligent Ecosystem**: Comprehensively promoting the digitalization and intelligence of learning, employment, and entrepreneurship services, providing full-chain digital services for various schools and institutions[42](index=42&type=chunk)[44](index=44&type=chunk) [Financial Review of the Reporting Period](index=16&type=section&id=Financial%20Review%20of%20the%20Reporting%20Period) The Group's H1 2024 financial performance significantly declined, with total revenue down 10.7% due to reduced online education, leading to a 19.9% drop in gross profit and a 63.1% decrease in profit for the period Financial Indicators (RMB million) | Financial Indicator (RMB million) | H1 2024 | H1 2023 | YoY Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 1,079.8 | 1,209.0 | -10.7% | Reduced revenue due to cessation of online education enrollment | | **Cost of Sales** | 498.9 | 483.9 | +3.1% | Increase in staff salaries and allowances | | **Gross Profit** | 580.8 | 725.1 | -19.9% | Increased campus education expenses and decreased revenue | | **Gross Margin** | 53.8% | 60.0% | -6.2pp | - | | **Selling and Distribution Expenses** | 98.0 | 117.1 | -16.3% | Decrease in sales and marketing staff remuneration and promotion costs | | **Finance Costs** | 68.4 | 100.5 | -31.9% | Derecognition of interest on put option liability from acquisition of Lead Group | | **Income Tax Expense** | 72.8 | 30.2 | +141.1% | Provision for income tax for Group schools | | **Profit for the Period** | 113.2 | 306.5 | -63.1% | Decreased revenue and increased costs and expenses | | **Adjusted Net Profit** | 131.5 | 364.8 | -63.9% | Decline in operating performance | [Financial and Liquidity Position](index=20&type=section&id=Financial%20and%20Liquidity%20Position) The Group's liquidity tightened due to reduced cash and contract liabilities, with total interest-bearing borrowings at RMB 2.29 billion and a healthy gearing ratio of 38.0%, while facing a significant contingent liability from a put option dispute - As of June 30, 2024, current assets decreased to **RMB 3.67 billion** (end of 2023: RMB 4.31 billion), and current liabilities decreased to **RMB 3.19 billion** (end of 2023: RMB 3.78 billion), primarily due to a reduction in cash and cash equivalents and contract liabilities[53](index=53&type=chunk) - The gearing ratio (total interest-bearing borrowings/total equity) increased from **35.9%** at the end of 2023 to **38.0%**, remaining at a healthy level[61](index=61&type=chunk) - The Group is in an arbitration dispute with the seller of Lead Group regarding a put option for a 49% equity stake. The seller claims an exit price of approximately **RMB 2.18 billion**, which the company disputes. The put option liability has been derecognized, and no provision has been made for this arbitration[54](index=54&type=chunk)[55](index=55&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section provides additional disclosures on shareholding, employee information, corporate governance, and significant events [Shareholding Structure](index=24&type=section&id=Shareholding%20Structure) As of June 30, 2024, Mr. Li Xuechun is the ultimate controlling shareholder with 71.71% stake, while Huachang International Limited holds 7.87% Shareholding Details | Shareholder Name | Capacity | Number of Shares | Shareholding Percentage | | :--- | :--- | :--- | :--- | | Mr. Li Xuechun | Controlling Shareholder (through controlled corporations) | 3,024,604,000 | 71.71% | | Huachang International Limited and parties acting in concert | Major Shareholder | 332,000,000 | 7.87% | [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) As of June 30, 2024, the company had 57,250,000 unexercised share options, with no changes in grants, exercises, cancellations, or lapses during the period - As of the end of the reporting period, **57,250,000** share options remained unexercised, with no changes to the share option scheme during the period[70](index=70&type=chunk)[73](index=73&type=chunk) [Corporate Governance and Other Disclosures](index=29&type=section&id=Corporate%20Governance%20and%20Other%20Disclosures) As of the reporting period end, the Group had approximately 6,900 employees, with no interim dividend recommended, and confirmed compliance with corporate governance codes - As of June 30, 2024, the Group had approximately **6,900** employees in mainland China and Hong Kong[73](index=73&type=chunk) - The Board did not recommend the payment of any dividend for the six months ended June 30, 2024[76](index=76&type=chunk)[81](index=81&type=chunk) - The company confirmed compliance with the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers under the Listing Rules during the reporting period[77](index=77&type=chunk)[78](index=78&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) [Material Acquisitions, Litigation, and Covenants](index=31&type=section&id=Material%20Acquisitions%2C%20Litigation%2C%20and%20Covenants) Two material acquisitions remain uncompleted, the company faces significant litigation regarding the Lead Group acquisition, and loan agreements include covenants requiring the controlling shareholder to maintain at least a 51% stake - The acquisitions of a **51%** equity stake in Qufu Changyong Enterprise Management Consulting Co., Ltd. and a **51%** equity stake in Nanchang Hezhitong Education Consulting Co., Ltd. remain uncompleted as of the date of this interim report[86](index=86&type=chunk)[91](index=91&type=chunk)[94](index=94&type=chunk)[93](index=93&type=chunk) - Loan agreements with institutions including International Finance Corporation (IFC), Bank of China Macau Branch, and Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) all contain specific performance covenants requiring controlling shareholder Mr. Li Xuechun to directly or indirectly hold not less than a **51%** equity stake in the company[102](index=102&type=chunk)[106](index=106&type=chunk)[109](index=109&type=chunk) [Interim Condensed Consolidated Financial Statements and Notes](index=39&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements%20and%20Notes) This section presents the interim condensed consolidated financial statements and their accompanying notes, detailing the Group's financial position and performance [Financial Statements Overview](index=39&type=section&id=Financial%20Statements%20Overview) The financial statements reflect a challenging period with significant declines in revenue and profit, reduced cash reserves, negative operating cash flow, and continued investment in property and equipment Income Statement Items (RMB thousand) | Income Statement Items (RMB thousand) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 1,079,786 | 1,209,022 | | Gross Profit | 580,838 | 725,077 | | Profit Before Tax | 185,932 | 336,722 | | Profit for the Period | 113,165 | 306,545 | | Profit Attributable to Owners of the Parent | 104,802 | 292,608 | | Basic Earnings Per Share (RMB) | 0.0248 | 0.0694 | Balance Sheet Items (RMB thousand) | Balance Sheet Items (RMB thousand) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Non-Current Assets | 7,110,772 | 7,053,903 | | Total Current Assets | 3,667,795 | 4,312,665 | | Total Current Liabilities | 3,188,231 | 3,775,242 | | Total Non-Current Liabilities | 1,571,415 | 1,640,187 | | Net Assets | 6,018,921 | 5,951,139 | | Total Equity | 6,018,921 | 5,951,139 | Cash Flow Statement Items (RMB thousand) | Cash Flow Statement Items (RMB thousand) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (779,026) | (245,053) | | Net Cash Used in Investing Activities | (190,407) | (98,644) | | Net Cash Used in Financing Activities | (20,737) | (130,468) | | Net Decrease in Cash and Cash Equivalents | (990,170) | (474,165) | | Cash and Cash Equivalents at End of Period | 2,194,356 | 3,015,307 | [Key Notes to Financial Statements](index=49&type=section&id=Key%20Notes%20to%20Financial%20Statements) Notes to financial statements detail that revenue decline stemmed from online education, while campus education grew, with income tax provisions for for-profit registration, increased trade receivables, decreased contract liabilities, and total borrowings of RMB 2.29 billion - Due to ongoing for-profit classification registration for the Group's schools operating in mainland China, the Group has made a **25%** PRC corporate income tax provision on service fees collected for its academic education services[152](index=152&type=chunk) - As of June 30, 2024, total interest-bearing bank and other borrowings amounted to **RMB 2.286 billion**, of which **RMB 1.309 billion** were current liabilities[170](index=170&type=chunk) Segment Revenue (RMB thousand) | Segment Revenue (RMB thousand) | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | **Campus Education** | 752,217 | 741,142 | +1.5% | | **Online Education** | 327,569 | 467,880 | -30.0% | | **Total** | 1,079,786 | 1,209,022 | -10.7% | Major Revenue Sources (RMB thousand) | Major Revenue Sources (RMB thousand) | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Tuition Fees | 690,920 | 681,295 | +1.4% | | Accommodation Fees | 61,297 | 59,847 | +2.4% | | Distance Education Services | 209,296 | 341,118 | -38.6% | | Teacher Training Services | 13,570 | 45,255 | -70.0% |

[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) The group achieved key progress in for-profit school registration while experiencing a significant decline in core financial performance indicators during the period [Progress on For-Profit School Registration](index=1&type=section&id=1.%20Progress%20on%20For-Profit%20School%20Registration) The group achieved significant progress in for-profit school registration, with Dianchi College approved to operate as a for-profit entity from the 2024-2025 academic year - Yunnan University Dianchi College has been approved to convert into a for-profit private undergraduate institution, "Dianchi College," and will begin enrolling students under this status in the 2024-2025 academic year, marking a key milestone in the group's for-profit transformation[1](index=1&type=chunk) - Applications for for-profit school registration for other major schools within the group are still in various early stages[1](index=1&type=chunk) [Key Financial Performance Indicators](index=2&type=section&id=2.%20Key%20Financial%20Performance%20Indicators) The group experienced significant year-on-year declines in revenue, gross profit, and profit for the period, despite maintaining a healthy gearing ratio Overview of Key Financial Indicators for H1 2024 | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | Approx. RMB 1,079.8 million | Approx. RMB 1,209.0 million | -10.7% | | Gross Profit | Approx. RMB 580.8 million | Approx. RMB 725.1 million | -19.9% | | Profit for the Period | Approx. RMB 113.2 million | Approx. RMB 306.5 million | -63.1% | | Gross Profit Margin | Approx. 53.8% | Approx. 60.0% | -6.2 percentage points | Assets and Liabilities as of June 30, 2024 | Indicator | Amount | | :--- | :--- | | Total Assets | Approx. RMB 10,778.6 million | | Net Assets | Approx. RMB 6,018.9 million | | Gearing Ratio | Approx. 38.0% | [Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the group's consolidated financial performance and position, highlighting key changes in income, assets, and liabilities [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The group's revenue declined by 10.7%, leading to a substantial 63.1% decrease in profit for the period and a significant drop in basic earnings per share Core Data from Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item (RMB '000) | 2024 (Unaudited) | 2023 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,079,786 | 1,209,022 | -10.7% | | Gross Profit | 580,838 | 725,077 | -19.9% | | Profit Before Tax | 185,932 | 336,722 | -44.8% | | Profit for the Period | 113,165 | 306,545 | -63.1% | | Profit Attributable to Owners of the Parent | 104,802 | 292,608 | -64.2% | | Basic Earnings Per Share (RMB) | 0.0248 | 0.0694 | -64.3% | [Consolidated Statement of Financial Position](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the group's total assets slightly increased, while cash and cash equivalents and contract liabilities significantly decreased Core Data from Consolidated Statement of Financial Position | Item (RMB '000) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 7,110,772 | 7,053,903 | +0.8% | | Total Current Assets | 3,667,795 | 4,312,665 | -14.9% | | **Total Assets** | **10,778,567** | **11,366,568** | **-5.2%** | | Total Current Liabilities | 3,188,231 | 3,775,242 | -15.6% | | Total Non-current Liabilities | 1,571,415 | 1,640,187 | -4.2% | | **Total Liabilities** | **4,759,646** | **5,415,429** | **-12.1%** | | **Net Assets** | **6,018,921** | **5,951,139** | **+1.1%** | - Cash and cash equivalents decreased from approximately **RMB 3.19 billion** at the end of 2023 to **RMB 2.19 billion**[5](index=5&type=chunk) - Contract liabilities, primarily advance tuition fees, significantly decreased from approximately **RMB 833 million** at the end of 2023 to **RMB 108 million**[5](index=5&type=chunk)[24](index=24&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=7&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes on the group's operating segments, revenue breakdown, and other significant financial items [Operating Segment Information](index=8&type=section&id=3.%20Operating%20Segment%20Information) Campus education revenue slightly increased but segment results declined, while online education revenue significantly decreased and turned to a loss, impacting overall group performance Segment Revenue and Results (For the six months ended June 30) | Segment (RMB '000) | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | **Segment Revenue** | | | | | Campus Education | 752,217 | 741,142 | +1.5% | | Online Education | 327,569 | 467,880 | -29.9% | | **Segment Results** | | | | | Campus Education | 283,924 | 394,152 | -28.0% | | Online Education | (2,372) | 50,251 | N/A (Profit to Loss) | [Revenue, Other Income and Gains](index=10&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) Total revenue declined by 10.7% due to a significant drop in online distance education services, while campus education fees showed stable growth Revenue from Contracts with Customers Breakdown (For the six months ended June 30) | Item (RMB '000) | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Tuition Fees | 690,920 | 681,295 | +1.4% | | Accommodation Fees | 61,297 | 59,847 | +2.4% | | Distance Education Services | 209,296 | 341,118 | -38.6% | | Teacher Training Services | 13,570 | 45,255 | -70.0% | | **Total** | **1,079,786** | **1,209,022** | **-10.7%** | [Other Financial Notes](index=12&type=section&id=Other%20Financial%20Notes) Impairment losses on financial assets significantly increased, income tax expense surged, and no interim dividend was declared, impacting the group's financial performance - Impairment loss on financial assets shifted from a net reversal of **RMB 1.84 million** in the prior period to a net loss of **RMB 58.14 million** in the current period, significantly impacting profit[17](index=17&type=chunk) - Income tax expense increased from **RMB 30.18 million** in the prior period to **RMB 72.77 million**, a year-on-year increase of **141.1%**, primarily due to income tax provisions made for the group's schools during the reporting period[18](index=18&type=chunk)[50](index=50&type=chunk) - The Board did not declare any interim dividend for the six months ended June 30, 2024[19](index=19&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the group's diverse business segments, strategic outlook, and a detailed review of its financial performance and liquidity position [Business Review](index=16&type=section&id=Business%20Review%20for%20the%20Reporting%20Period) The group operates as an "Internet+" vocational education provider across eight segments, serving over 50 million cumulative users with significant scale in campus and online education - The group has established eight major business segments, including campus education, online education, vocational skills enhancement, and human resource services, forming a nationwide vocational education network and talent employment service system[25](index=25&type=chunk) [Campus Education](index=16&type=section&id=1.%20Campus%20Education) Campus education, a cornerstone business, operates 10 schools with approximately 100,000 students, and one institution ranked 18th nationally among private universities Campus Education Business Scale | Item | Quantity | | :--- | :--- | | Number of Schools | 10 | | Total Student Enrollment | Approx. 100,000 | | Proportion of Full-time Undergraduates | Approx. 59% | | Undergraduate Programs | 121 | | Higher Vocational (Associate Degree) Programs | 146 | - Chongqing College of Humanities, Science and Technology, one of the group's institutions, ranked **18th** among national private universities in the 2024 Soft Science China University Rankings, retaining its position as the top private university in Chongqing[27](index=27&type=chunk) [Online Education Services](index=18&type=section&id=2.%20Online%20Education%20Services) Online education provides academic support to approximately 630,000 students through collaborations with 350 institutions, and its MBAChina platform has 3.4 million registered users - Online higher education continuing education services provide support to approximately **630,000** students through over **1,900** learning centers[29](index=29&type=chunk) - The MBAChina platform for management postgraduate education services has accumulated approximately **3.4 million** registered users and collaborates with over **200** domestic and international business schools[30](index=30&type=chunk) [Vocational Skills Enhancement and Training](index=18&type=section&id=3.%20Vocational%20Skills%20Enhancement%20and%20Training) This segment includes teacher continuing education and IT vocational training, with Aopeng Education training 9 million teachers and Mooc.net accumulating 25 million users - Teacher continuing education training has cumulatively trained approximately **9 million** teachers[32](index=32&type=chunk) - The IT vocational training platform Mooc.net has accumulated approximately **25 million** users[33](index=33&type=chunk) [Other Business Segments](index=20&type=section&id=Other%20Business%20Segments) The group is expanding into human resources, digital education, and examination services, with its HR platform connecting 4.7 million users and HSK online exams serving over 180,000 candidates - The human resources service platform "Youxueleyi" covers over **20** provinces and cities nationwide, connecting approximately **4.7 million** C-end users and **38,000** employers[35](index=35&type=chunk) - The HSK online examination service has established over **80** test centers domestically and internationally, cumulatively serving over **180,000** candidates[38](index=38&type=chunk) [Future Outlook](index=22&type=section&id=Future%20Outlook) The group plans to enhance high-quality higher education and build a digital service platform ecosystem integrating learning, employment, and entrepreneurship - Strategy one: Steadfastly pursue high-quality development in higher education, increasing resource investment, optimizing teaching environment and faculty, and cultivating high-quality applied talents[40](index=40&type=chunk) - Strategy two: Continue to build a digital intelligence service platform ecosystem integrating "learning, employment, and entrepreneurship," comprehensively promoting service digitalization and intelligence[41](index=41&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review%20for%20the%20Reporting%20Period) Total revenue declined by 10.7% due to reduced online education, while increased impairment losses and higher staff costs led to a significant 63.1% drop in profit for the period - Total revenue decreased by **10.7%**, primarily due to reduced online education revenue as Aopeng Education ceased network education enrollment[42](index=42&type=chunk) - Gross profit margin decreased from **60.0%** to **53.8%**, mainly due to increased campus education expenses[44](index=44&type=chunk) - Other net expenses increased from **RMB 6.7 million** to **RMB 59.7 million**, primarily due to increased impairment loss on financial assets[48](index=48&type=chunk) Reconciliation of Adjusted Net Profit (For the six months ended June 30) | Item (RMB '000) | 2024 | 2023 | | :--- | :--- | :--- | | Profit for the Period | 113,165 | 306,545 | | Add: Amortization of acquisition-related intangible assets, etc. | 21,570 | 65,482 | | **Adjusted Net Profit** | **131,547** | **364,822** | [Financial and Liquidity Position](index=26&type=section&id=Financial%20and%20Liquidity%20Position) The group maintains a healthy gearing ratio despite increased borrowings, but faces a significant contingent liability from an arbitration dispute over a put option - The gearing ratio (total interest-bearing borrowings/total equity) increased from **35.9%** at the end of 2023 to **38.0%** as of June 30, 2024, which the company considers a healthy level[60](index=60&type=chunk) - The group has a significant contingent liability: an arbitration dispute with the former shareholders of Lead Group regarding a put option for 49% equity, with the counterparty claiming approximately **RMB 2.18 billion**; the company believes the exercise of the option is invalid and has fulfilled its obligations regarding the granted option, thus no provision has been made[55](index=55&type=chunk) - Related to the aforementioned dispute, the recovery of the **RMB 400 million** loan principal and interest provided by the company to Lead Guojiao is also subject to arbitration[56](index=56&type=chunk) [Other Corporate Information](index=29&type=section&id=Other%20Corporate%20Information) This section covers the company's dividend policy, securities activities, and adherence to corporate governance standards [Dividends and Securities](index=29&type=section&id=Dividends%20and%20Securities) The Board did not declare an interim dividend, and no listed securities were purchased, sold, or redeemed during the reporting period - The Board did not declare an interim dividend for the six months ended June 30, 2024[64](index=64&type=chunk) - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[65](index=65&type=chunk) [Corporate Governance](index=29&type=section&id=Corporate%20Governance) The company maintained high corporate governance standards, complying with listing rules and having its interim results reviewed by the audit committee - The company complied with the provisions of the Corporate Governance Code in the Listing Rules of the Stock Exchange during the reporting period[62](index=62&type=chunk) - The company's Audit Committee has reviewed these interim results[66](index=66&type=chunk)

Business Overview - The Group is a leading "Internet+" vocational education group in China, enhancing its integrated vocational education service capabilities[1] - The Group owns approximately 22.9% equity interest in Beacon International College PTE LTD in Singapore, indicating its commitment to expanding overseas education services[15] - The Group has established exclusive business cooperation agreements to provide technical services to Jierui, which includes network support and business consulting[18] - The Group is prepared to satisfy the Qualification Requirement for foreign investors in Sino-foreign cooperative educational institutions as regulations evolve[15] - The Jierui Operating Entities are subject to foreign investment restrictions under current PRC laws, impacting the Group's operational strategies[10] - The Group has the right to consolidate the financial results of Jierui and its operating entities into its own results, enhancing its financial reporting capabilities[8] - The Group is actively monitoring changes in PRC laws regarding foreign ownership restrictions and is taking steps to comply with these regulations[16] - The Group's investment in overseas educational institutions is expected to facilitate compliance with future Qualification Requirements[15] - The Group has not unwound any Yuecheng Contractual Arrangements, maintaining its operational structure under current regulations[3] - The Group's strategic partnerships and agreements with local entities are designed to strengthen its market position in vocational education[4] Financial Performance - The Group's revenue for the year ended December 31, 2023, was RMB 2,352,395, a slight decrease of 0.03% compared to RMB 2,353,965 in 2022[164] - Gross profit for the same period was RMB 1,260,345, representing a decrease of 1.16% from RMB 1,275,146 in 2022[164] - Profit for the year was RMB 121,176, a significant decline of 76.3% compared to RMB 513,272 in 2022[164] - Non-current assets increased to RMB 7,053,903 as of December 31, 2023, compared to RMB 7,041,509 in 2022[164] - Current liabilities decreased to RMB 3,775,242 from RMB 4,509,206 in 2022, indicating improved short-term financial health[164] - The Group's total assets as of 31 December 2023 were approximately RMB11,366.6 million, with cash and cash equivalents amounting to approximately RMB3,189.8 million[191] - The gearing ratio significantly decreased to approximately 35.9% from approximately 46.8% as at 31 December 2022, indicating a stable financial and capital structure[191] - During the reporting period, the Group's capital expenditure was approximately RMB336.5 million, with a total of approximately RMB1,441.6 million over the past three financial years[190] Educational Initiatives - The Group's undergraduate colleges offer 1 key subject at provincial level, 2 key disciplines, 3 key cultivation disciplines, 15 first-class majors, and 58 first-class programmes as of December 31, 2023[106] - The Group has established approximately 1,000 off-campus practical training bases and has cooperated to build industrial colleges, achieving significant results in vocational education[106] - The industry-education integration project of Dianchi College of Yunnan University has been selected for two consecutive years in the "New Engineering" and "New Liberal Arts" projects by the Ministry of Education, being the only private university in the nation to achieve this[106] - The Group actively promotes school-enterprise cooperation to improve the training quality of applied talents, aligning with national key industry development strategies[106] - The Group's vocational education initiatives are designed to address employment issues and enhance income for graduates while meeting enterprise labor demands[106] - The Group's vocational ability improvement and training business includes teacher continuing education, IT vocational training, and vocational qualification certificate training[115] - The Group's education informatization services cover over 20 provinces, with approximately 890 third-party human resources service agencies and around 34,000 employers[153] Human Resources and Talent Development - The Group's human resources services focus on creating an integrated talent development ecosystem, providing quality training and employment services for skilled talents in China[86] - The human resources service platform aims to create a closed loop integrating enrollment, training, and employment, enhancing the employability of skilled talents[125] - The Group's commitment to cultivating high-quality skilled talents needed for various industries in China[167] - The Share Option Scheme aims to motivate and retain key personnel, enhancing their contributions to the Group's performance and growth[83] Digital and Technological Integration - The Group's digital intelligence integration aims to provide comprehensive solutions for enterprises, human resource agencies, and educational institutions[86] - The Group plans to promote the digitization and intelligence of learning, employment, and entrepreneurship services, aiming for full coverage of formal education and related services[194] - The Group intends to expand secondary and specialized vocational colleges and universities through in-depth cooperation with industry-leading enterprises[194] - The Group aims to provide one-stop digital intelligence management and operation services for upstream and downstream partners in the education sector[194] - The Group is focused on building a strong digital and intellectual service ecosystem for the integration of industry and education[194] Operational Structure and Governance - The company faces business and financial risks associated with Jierui, as it is the primary beneficiary of Jierui's contractual arrangements[55] - There is no assurance that Jierui will generate any profit that can be paid to the group through the Exclusive Business Cooperation Agreement B and the Shareholders' Rights Entrustment Agreement IIB[53] - The Jierui Contractual Arrangements may not comply with future regulatory changes in the PRC, which could affect their validity[54] - The company has not granted any rights to acquire shares to any directors or their immediate family members during the year 2023[67] - No director proposed for re-election at the upcoming annual general meeting has an unexpired service contract that is not determinable within one year without compensation[71] - The company has entered into a Shareholders' Rights Entrustment Agreement IB, allowing Chongqing Mengzhuo to act on behalf of Jierui in shareholder matters[43] - The interests and short positions of the directors and chief executive in the shares of the company are recorded in compliance with the Securities and Futures Ordinance[59] - The company is subject to the conditions, requirements, and obligations under the Shareholders' Rights Entrustment Agreement IB for any successor to Jierui[45] - The controlling Shareholders confirmed no conflicts of interest with the Group during the Relevant Period from January 1, 2023, to December 31, 2023[104] - Independent non-executive Directors reviewed compliance with the non-competition undertaking and found no breaches by the controlling Shareholders during the Relevant Period[101] User Engagement and Reach - Xiaoai Technology's platform linked approximately 4.3 million C-end users and around 3.3 million jobs across more than 20 provinces in China[42] - The Group has established over 1,900 learning centers across 31 provinces, serving a total of over 50 million students and users[135] - The Group's vocational education network serves over 50 million users, linking approximately 430 million C-end users and about 3.3 million job opportunities[154] - As of December 31, 2023, Open Distance Education has partnered with over 500 schools and completed more than 15,300 training projects, training approximately 8.9 million teachers[115] - The IT vocational training platform, IMOOC, has built over 3,000 high-quality training courses and accumulated approximately 24 million users as of December 31, 2023[117] - The cloud training platform has incorporated over 60 training projects across 11 categories, including finance, big data, and agriculture[120] - The Group provided over 40 vocational qualification certificate training programs, training approximately 11,000 individuals during the reporting period[121] - As of December 31, 2023, the Group's online education services supported approximately 700,000 students through over 1,900 learning centers across the nation[139] - Doxue Network, a consolidated affiliated entity, added approximately 230,000 registered users, bringing the total to approximately 3.37 million as of December 31, 2023[143] - The Group operates or manages 10 schools, with a total student population of approximately 100,400, of which full-time undergraduate students account for about 57.76%[145] - The Group's schools offer a total of 121 undergraduate majors, 146 junior college majors, 72 secondary vocational majors, and 4 postgraduate cultivation majors[145] - The Group's training resources have formed a total of over 30TB of course materials[116]

智通财经APP讯，民生教育(01569)发布截至2023年12月31日止年度业绩，该集团取得收益人民币23.52亿元(单位下同)，同比轻微减少约0.1%;母公司拥有人应占溢利1.39亿元，同比减少71.66%;每股盈利0.0329元，拟派发末期股息每股0.98港仙。 公告称，收入轻微减少主要由于报告期内因网络教育的招生停止导致在线教育收益减少，而有关减少因报告期内校园教育收益增加而被部分抵销。 ...

Financial Performance - For the fiscal year ending December 31, 2023, the total revenue of the group was approximately RMB 2,352.4 million, a slight decrease of about 0.1% compared to the same period in 2022[2]. - Total revenue for the year ended December 31, 2023, was RMB 2,353,965,000, with a year-on-year decrease compared to 2022[42]. - Total revenue for the year ended December 31, 2023, was approximately RMB 2,352.4 million, a slight decrease of about 0.1% compared to RMB 2,354.0 million for the year ended December 31, 2022, primarily due to a reduction in online education revenue[70]. - The group reported a total comprehensive income of RMB 99.854 million for the year[5]. - The company reported a loss attributable to equity holders of the parent of RMB 138,869,000 for 2023, down from a profit of RMB 490,066,000 in 2022[47]. - The group's annual profit decreased significantly by approximately 76.4% from about RMB 513.3 million for the year ended December 31, 2022, to about RMB 121.2 million for the year ended December 31, 2023[126]. - Adjusted net profit for the year ended December 31, 2023, was approximately RMB 274.1 million, compared to RMB 547.4 million for the previous year, reflecting a decline of about 50%[127]. - The company reported a basic and diluted earnings per share of RMB 0.0329 for 2023, down from RMB 0.1162 in 2022[164]. Revenue Breakdown - The revenue from tuition fees was RMB 1,265.979 million, an increase from RMB 1,204.604 million in 2022[19]. - The revenue from online education platform services was RMB 212.775 million, down from RMB 365.200 million in 2022[19]. - The online education segment generated revenue of RMB 972,543 thousand, while the campus education segment contributed RMB 1,379,852 thousand, totaling RMB 2,352,395 thousand[195]. Assets and Liabilities - The total assets of the group were approximately RMB 11,366.6 million as of December 31, 2023[28]. - The total liabilities of the group were RMB 6,919.465 million as of the reporting date[17]. - The group’s total assets amounted to RMB 12,642,549,000, with inter-segment receivables of RMB (1,303,178,000)[40]. - The group’s net asset value as of December 31, 2023, was approximately RMB 80.9 million, slightly down from RMB 82.7 million as of December 31, 2022[138]. - The total liabilities decreased from RMB 5,415.4 million as of December 31, 2022, to RMB 4,312.7 million as of December 31, 2023[166]. - Current liabilities decreased from approximately RMB 4,509.2 million as of December 31, 2022, to approximately RMB 3,775.2 million as of December 31, 2023, primarily due to the release of put option liabilities during the reporting period[129]. Expenses and Costs - Sales costs increased by approximately 1.2% from RMB 1,078.8 million for the year ended December 31, 2022, to approximately RMB 1,092.1 million for the year ended December 31, 2023, mainly due to increased salaries and allowances for staff[72]. - Gross profit decreased by approximately 1.2% from RMB 1,275.1 million to approximately RMB 1,260.3 million, with the gross margin declining from about 54.2% to approximately 53.6%[73]. - Other income and gains decreased by approximately 35.4% from RMB 280.6 million to approximately RMB 181.2 million, primarily due to a reduction in government subsidies and recognition of fair value losses[74]. - Administrative expenses slightly increased by about 0.7% to approximately RMB 504.4 million for the year ended December 31, 2023, due to higher salaries and benefits for administrative staff[122]. - Other expenses surged by approximately 191.7% to about RMB 208.6 million for the year ended December 31, 2023, mainly due to goodwill and intangible asset impairments[123]. - Financing costs rose by approximately 6.8% to about RMB 174.9 million for the year ended December 31, 2023, attributed to higher interest rates on new loans[124]. - Income tax expenses increased from approximately RMB 33.2 million to about RMB 200.5 million for the year ended December 31, 2023, due to tax provisions for the company's schools[125]. Dividends and Shareholder Returns - The proposed final dividend is HKD 0.98 per share, equivalent to RMB 0.89, compared to RMB 0.89 in 2022[3][26]. - The board proposed a final dividend of RMB 0.89 per share, totaling RMB 37.5 million, subject to shareholder approval at the upcoming annual general meeting[183]. - The company plans to declare a final dividend of HKD 0.0098 per ordinary share for the year ending December 31, 2023, compared to HKD 0.0429 in 2022, pending shareholder approval[152]. Strategic Initiatives - The company aims to enhance its online training solutions by aggregating resources from over 60 training projects across various industries[61]. - The company is focusing on integrating various industry resources to support vocational education and training, particularly in emerging fields such as artificial intelligence and big data[83]. - The company plans to establish approximately 150 industry-education integration entities by 2025, with 50 expected to be built by the end of 2024[184]. - The company aims to create a comprehensive study abroad service ecosystem, including language training, overseas study applications, and employment services[70]. - The company is committed to building a digital service platform for talent cultivation, integrating recruitment, training, and employment services[82]. - The company plans to expand its digital services for various educational institutions and enhance collaboration with industry-leading enterprises[87]. - The company aims to promote its digital "learning, employment, and entrepreneurship platform" in the market, indicating a positive long-term outlook for its online education segment[91]. Employment and Workforce - The company employed approximately 6,900 employees as of December 31, 2023, down from about 7,500 employees in 2022[142]. Other Information - The group had no significant capital commitments authorized but not contracted as of the reporting period end[130]. - The group is currently involved in arbitration regarding a dispute over the sale of a 49% stake in Leed Education Holding Limited, with a claimed exit price of RMB 2,180,735,576.50[134]. - The group has no foreign exchange hedging policy in place and will continue to monitor foreign exchange risks[139]. - The group’s adjusted net profit was impacted by various factors, including unrealized foreign exchange losses and interest expenses related to put option liabilities[127].

Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately RMB 1,209.0 million, a decrease of about 5.1% compared to approximately RMB 1,274.0 million for the same period in 2022[25]. - The Group's adjusted net profit for the period was RMB 364.8 million, a decrease of approximately 13.7% from RMB 422.8 million in the previous year[31]. - Profit for the period decreased by approximately 12.2% from RMB 349.1 million for the six months ended June 30, 2022 to RMB 306.5 million for the six months ended June 30, 2023[47]. - Gross profit decreased by approximately 1.2% from RMB734.2 million for the six months ended 30 June 2022 to RMB725.1 million for the six months ended 30 June 2023, while gross profit margin increased from approximately 57.6% to 60.0%[46]. - Total comprehensive income for the period was RMB 269,412,000, a decrease of 13.7% compared to RMB 312,298,000 in the same period last year[177]. - Profit before tax decreased to RMB 336,722, down 8.1% from RMB 366,255 in the prior year[168]. - Basic and diluted earnings per share attributable to ordinary equity holders of the parent decreased to RMB 0.0694 from RMB 0.0805, a decline of 13.8%[177]. Education Services - As of June 30, 2023, Open Distance Education and Minsheng Online cooperated with approximately 350 domestic key universities and provided online education services to approximately 870,000 students across over 1,900 learning centers[10]. - The Group's international education services include partnerships with colleges in the United States and the United Kingdom, focusing on a comprehensive range of study abroad services[21]. - The Group's online education services faced a decline due to the cessation of enrollment by Open Distance Education, impacting online education revenue[25]. - Open Distance Education ceased new student enrolment for online formal education starting from Autumn 2022, but continued to serve over 500,000 existing registered students during the reporting period[26][27]. - The Group's vocational education initiatives are aligned with national policies to promote high-quality development in vocational training[6]. - The Group's online education and on-campus education segments are monitored separately for performance assessment and resource allocation[199]. Digital and Human Resources Services - The Group aims to build a comprehensive digital intelligence service platform for talents, integrating learning, employment, and entrepreneurship services[23]. - The Group's human resources services focus on creating an integrated talent development ecosystem, providing various digital solutions for enterprises and educational institutions[18]. - The Group emphasizes the integration of digital intelligence and education services, covering strategic emerging industries such as artificial intelligence and big data[19]. - The Group has partnered with approximately 850 third-party human resources service agencies and connected with around 3.1 million C-end users and 3.5 million job demands as of June 30, 2023[37]. Financial Position - As of June 30, 2023, the Group had net current assets of approximately RMB 432.3 million, with current assets decreasing to approximately RMB 4,567.4 million from RMB 4,915.1 million as of December 31, 2022[49]. - The Group's current liabilities decreased from approximately RMB 4,509.2 million as of December 31, 2022, to approximately RMB 4,135.0 million as of June 30, 2023, primarily due to a reduction in contract liabilities[34]. - Cash and cash equivalents decreased to RMB 3,015,307,000 from RMB 3,477,088,000, a decline of 13.3%[178]. - The retained profits as of June 30, 2023, amounted to RMB 2,909,895, showing a stable financial position despite the decline in profit[173]. Expenses and Costs - Selling and distribution expenses increased by approximately 6.2% from RMB110.3 million for the six months ended June 30, 2022 to RMB117.1 million for the six months ended June 30, 2023, mainly due to increased marketing costs of online education entities[46]. - Administrative expenses increased by approximately 4.5% from approximately RMB 232.9 million for the six months ended June 30, 2022 to approximately RMB 243.4 million for the six months ended June 30, 2023[72]. - Finance costs increased by approximately 38.2% from approximately RMB 72.7 million for the six months ended June 30, 2022 to approximately RMB 100.5 million for the six months ended June 30, 2023[72]. - Other expenses decreased by approximately 75.2% from approximately RMB 27.0 million for the six months ended June 30, 2022 to approximately RMB 6.7 million for the six months ended June 30, 2023[72]. Corporate Governance and Compliance - The company has complied with all relevant laws and regulations that significantly impact its operations during the reporting period[91]. - The board is committed to high corporate governance standards and has complied with all code provisions set forth in the Corporate Governance Code during the reporting period[92]. - The company has established a code for securities transactions by senior management to ensure compliance with regulations regarding unpublished price-sensitive information[93]. - The Company has been compliant with the corporate governance code as per the listing rules throughout the reporting period[123]. Investments and Acquisitions - The company acquired 51% of the equity interest in Qufu Changyong Corporate Management Consulting Company Limited for a total consideration of RMB 91.8 million[69]. - Chongqing Yiersheng Education Technology Company Limited conditionally agreed to acquire 51% of the equity interest in Nanchang Hezhitong for a total consideration of RMB 510 million[70]. - The Group did not acquire any subsidiaries during the six months ended 30 June 2023, while it had an acquisition cost of RMB (130,960,000) in the same period of 2022[185]. - There were no significant investments or acquisitions planned by the Group as of June 30, 2023, aside from those disclosed in the interim report[114]. Loans and Financing - The Group has secured a loan agreement with the International Finance Corporation for a total principal amount of RMB 400 million, with a repayment period of 8 years starting from June 15, 2023[142][144]. - The USD Loan Agreement with the International Finance Corporation allows for borrowing up to USD 51 million, with repayments commencing on June 15, 2023, until June 15, 2028[143][160]. - A loan agreement with Deutsche Investitions – Und Entwicklungsgesellschaft Mbh (DEG) has been established for up to USD 28.24 million, with repayments starting on June 15, 2023, and concluding on June 15, 2028[150][160]. - The total amount of loans secured by the Group reflects a strategic approach to financing for operational and expansion needs[147][150].

Financial Performance - For the six months ended June 30, 2023, total revenue reached RMB 1,209,022 thousand, with campus education contributing RMB 741,142 thousand and online education contributing RMB 467,880 thousand[6]. - Total revenue for the six months ended June 30, 2023, was approximately RMB 1,209.0 million, a decrease of about 5.1% compared to RMB 1,274.0 million for the same period in 2022[46]. - Gross profit for the six months ended June 30, 2023, was approximately RMB 725.1 million, a slight decrease of about 1.2% from RMB 734.2 million for the same period in 2022, with gross margin increasing from approximately 57.6% to 60.0%[49]. - Net profit for the six months ended June 30, 2023, decreased by approximately 12.2% to about RMB 306.5 million from RMB 349.1 million for the same period in 2022[55]. - Adjusted net profit for the six months ended June 30, 2023, decreased by approximately RMB 57.9 million or about 13.7%, with the adjusted net profit margin declining from approximately 33.2% to 30.2%[56]. - Profit before tax was RMB 336,722 thousand, down from RMB 366,255 thousand in the previous year, reflecting a decline of about 8.0%[97]. - The total comprehensive income for the period was RMB 269,412 thousand, compared to RMB 312,298 thousand in 2022, representing a decrease of approximately 13.7%[103]. - Basic and diluted earnings per share for the period were RMB 0.0694, compared to RMB 0.0805 in the same period last year, reflecting a decrease of approximately 13.8%[124]. Assets and Liabilities - The total equity as of June 30, 2023, was RMB 5,140,460 thousand, an increase from RMB 5,037,116 thousand as of June 30, 2022, reflecting a growth of approximately 2.04%[2]. - As of June 30, 2023, the company had a net current asset value of approximately RMB 432.3 million, with current assets decreasing from approximately RMB 4,915.1 million as of December 31, 2022, to about RMB 4,567.4 million[57]. - The company reported a total asset value of RMB 7,390,473,000, slightly down from RMB 7,447,375,000[126]. - Total non-current assets decreased to RMB 6,958,129 thousand from RMB 7,041,509 thousand, a decline of about 1.2%[107]. - Total liabilities as of June 30, 2023, were RMB 6,454,605,000, down from RMB 7,194,867,000 as of December 31, 2022[160]. - The company’s non-current liabilities, including deferred income, totaled RMB 232,479 thousand as of June 30, 2023, compared to RMB 242,395 thousand in the previous period[1]. - The company’s interest-bearing bank and other borrowings amounted to RMB 1,623,707 thousand, a decrease from RMB 1,759,483 thousand year-on-year[1]. - As of June 30, 2023, the company's interest-bearing loans and borrowings amounted to approximately RMB 2,350.9 million, with actual annual interest rates ranging from 2.2% to 7.4%[58]. - The capital-to-debt ratio slightly decreased from approximately 46.8% as of December 31, 2022, to about 45.7% as of June 30, 2023, indicating a stable financial position[78]. Operational Highlights - The group has established around 1,000 off-campus internship training bases and has collaborated with enterprises to build industry colleges, significantly enhancing the quality of applied talent training[25]. - The group provided over 40 vocational qualification training courses, with approximately 5,900 participants trained during the reporting period[28]. - The group’s subsidiary, Aopeng Education, has completed over 15,000 training projects, training approximately 8.8 million teachers, and has developed a course resource library exceeding 30TB[26]. - The company has established partnerships with over 180 domestic and international business schools through its subsidiary, Duxue Network[36]. - The company continues to serve over 500,000 enrolled students in online education despite the suspension of new enrollments due to regulatory changes[186]. - The company has diversified its online education offerings despite the cessation of online education enrollment, expanding into open education, adult education, and vocational training[48]. - The company plans to enhance its digital education services and build a comprehensive talent service internet platform for learning, employment, and entrepreneurship[184]. - The company is focusing on the integration of education and industry, providing digital services to various educational institutions and human resource service companies[184]. Employee and Governance - As of June 30, 2023, the company employed approximately 7,500 employees, an increase from 7,456 employees as of June 30, 2022[68]. - The company has committed to providing comprehensive training for existing and new employees, supporting outstanding teachers for further studies and academic exchanges[69]. - The company has adopted good corporate governance practices to ensure transparency and accountability to shareholders[69]. Financial Management - The financing cost increased by approximately 38.2% from about RMB 72.7 million for the six months ended June 30, 2022, to about RMB 100.5 million for the six months ended June 30, 2023, primarily due to rising financing rates and additional bank loans[72]. - The company has not implemented any foreign exchange hedging policies and is monitoring foreign exchange risks[199]. - The majority of the company's revenue and expenses are denominated in RMB, with some bank balances held in USD and HKD[199]. - The company has short-term loans for working capital and long-term loans for ongoing school construction projects[197]. Dividend and Securities - The group has no declared interim dividends for the six months ended June 30, 2023, consistent with the previous year[13]. - The company did not declare any interim dividends for the six months ended June 30, 2023, similar to the previous period[88]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2023[89].

Financial Performance - The Group's revenue for the year ended December 31, 2022, was RMB 2,353,965,000, a decrease of 1.7% compared to RMB 2,394,012,000 in 2021[11] - Gross profit for 2022 was RMB 1,275,146,000, down from RMB 1,356,961,000 in 2021, reflecting a gross margin of approximately 54.2%[11] - Profit before tax decreased to RMB 546,501,000 in 2022 from RMB 661,801,000 in 2021, representing a decline of 17.4%[11] - EBITDA for the same period was approximately RMB 965.8 million, reflecting a decrease of approximately 2.0% year-on-year[35] - Profit for the year decreased by approximately 15.5% from approximately RMB 607.6 million for the year ended 31 December 2021 to approximately RMB 513.3 million for the year ended 31 December 2022[138] - Adjusted net profit for the year ended 31 December 2022 decreased by approximately RMB 180.7 million or approximately 22.5% compared to the corresponding period in 2021[147] - Total revenue decreased by approximately 1.7% to approximately RMB 2,354.0 million for the year ended December 31, 2022, from approximately RMB 2,394.0 million for the year ended December 31, 2021[116] Assets and Liabilities - The net assets of the Group as of December 31, 2022, were RMB 5,037,116,000, an increase from RMB 4,789,035,000 in 2021[13] - Current liabilities increased to RMB 4,509,206,000 in 2022 from RMB 3,318,427,000 in 2021, indicating a rise of 35.9%[13] - The Group's non-current assets were valued at RMB 7,041,509,000 as of December 31, 2022, a decrease from RMB 7,489,314,000 in 2021[13] - As of December 31, 2022, total assets amounted to approximately RMB 11,956.6 million, while cash reserves increased by approximately 18.4% to RMB 3,477.1 million compared to 2021[33] - Current assets increased to approximately RMB 4,915.1 million as at 31 December 2022 from approximately RMB 3,948.5 million as at 31 December 2021[148] - The gearing ratio increased to approximately 46.8% as of December 31, 2022, up from approximately 41.3% as of December 31, 2021, due to an increase in bank and other borrowings during the reporting period[171] Education and Training Initiatives - The Chairman highlighted the favorable policies for vocational education in 2022, emphasizing the importance of integrating industry and education[15] - The newly revised Vocational Education Law encourages enterprises to participate in vocational education, enhancing the collaboration between education and industry[15] - The Group aims to cultivate high-quality skilled talents through the integration of vocational and general education[15] - The total population of skilled talents in China exceeded 200 million by the end of 2021, with approximately 60 million being highly-skilled talents, representing over 26% of the total working population[19] - The Group's research and development expenses amounted to approximately RMB 117.6 million during the reporting period, with cumulative investments in technical infrastructure exceeding RMB 1 billion as of December 31, 2022[24] - The Group has established over 1,900 learning centers across all 31 provinces in China, linking approximately 2.8 million C-end users and around 2.7 million job opportunities, serving a total scale of over 50 million users[23] - The Group's integrated vocational education service capabilities cover eight business sectors, including online education services and vocational ability improvement[50] - The Group's vocational education network integrates online and offline services, forming a comprehensive talent employment service system[50] - The Group's online education services include adult higher education and professional degree postgraduate education, targeting adults seeking to improve their academic qualifications[53] Capital Expenditure and Investments - The Group completed the construction of nearly 110,000 square meters of new teaching buildings, including various facilities, with relevant capital expenditure amounting to approximately RMB 312.8 million[28] - Capital expenditure for the year ended 31 December 2022 was approximately RMB 355.7 million, primarily for the construction of school buildings and upgrades of online education facilities[158] - The Group has invested in higher education institutions in Australia, Singapore, and Hong Kong, providing programs from associate degrees to postgraduate degrees[67] Management and Governance - Mr. Zuo Yichen has over 20 years of experience in finance and education, previously serving as a senior manager at the Bank of China[187] - Mr. Lam Ngai Lung has more than 15 years of experience in accounting and finance, currently serving as Chief Financial Officer since May 2016[189] - The management team includes individuals with significant educational and financial backgrounds, enhancing the Company's strategic direction[189][195] Strategic Development and Future Plans - The Group aims to build an internet platform for talent digital intelligence services, integrating learning, employment, and entrepreneurship fields[37] - The Group plans to deepen cooperation with industry-leading enterprises and accelerate partnerships with renowned universities and research institutions[39] - The Group's strategy includes promoting the transformation of scientific research achievements to support industry upgrading and development[114] - The Group intends to deepen cooperation with industry-leading enterprises and accelerate collaboration with world-renowned universities and research institutions[114] Employee and Human Resources - The Group had approximately 7,500 employees as of December 31, 2022, compared to 7,470 employees in 2021[172] - The increment in employee salaries in 2022 was based on performance, experience, and prevailing industry practices[173] - The Group provides training programs for existing and newly recruited employees to enhance their skills[174]