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]

Now, let's welcome Mr. Zhuo to give us a detailed report on this year's performance. Thank you, Mr. Zhuo. Thank you, Mr. Jiang. Thank you very much for your precious time to participate in the press conference on the full-year performance announcement of Mingsheng Education in 2022. Looking back at 2022, the whole process of development full of changes and uncertainties, including the impact of the pandemic for about half a year, and a large environment. Overall, Mingsheng Group's business development has r ...

Financial Performance - The total revenue for the year ended December 31, 2022, was RMB 490,066,000, a decrease from RMB 576,886,000 in 2021, representing a decline of approximately 15%[5] - The basic and diluted earnings per share for the year were RMB 0.1162, down from RMB 0.1368 in 2021, indicating a decrease of about 5%[6] - The adjusted net profit for the group was RMB 490.1 million for 2022, down from RMB 576.9 million in 2021, reflecting a decrease of approximately 15%[49] - Total revenue for 2022 was RMB 280,570 thousand, an increase from RMB 249,894 thousand in 2021, representing a growth of approximately 12.3%[20] - Total revenue decreased by approximately 1.7% from RMB 2,394.0 million for the year ended December 31, 2021, to RMB 2,354.0 million for the year ended December 31, 2022, primarily due to a decline in revenue from remote education services and online course services[70] - Adjusted net profit decreased from RMB 803.2 million in 2021 to RMB 622.5 million in 2022[75] - Annual profit decreased by approximately 15.5% from RMB 607.6 million for the year ended December 31, 2021, to approximately RMB 513.3 million for the year ended December 31, 2022[199] Assets and Liabilities - The total assets as of December 31, 2022, amounted to RMB 11,956,581,000, compared to RMB 11,437,794,000 in 2021, reflecting an increase of approximately 4.5%[7] - The total liabilities as of December 31, 2022, were RMB 7,194,867,000, up from RMB 6,300,000,000 in 2021, indicating an increase of approximately 14.2%[15] - The net asset value of the group as of December 31, 2022, was approximately RMB 5,037.116 million, an increase from RMB 4,789.035 million in 2021[139] - Total liabilities amounted to RMB 6,919,465 thousand[147] Cash Flow and Investments - The cash and cash equivalents increased to RMB 3,477,088,000 in 2022 from RMB 2,750,227,000 in 2021, marking a growth of around 26.4%[7] - Other income increased by approximately 12.3% from RMB 249.9 million for the year ended December 31, 2021, to RMB 280.6 million for the year ended December 31, 2022, mainly due to increased investment income from short-term investments and government subsidies[72] - The company has seen a significant increase in government subsidies related to income, which rose to RMB 77,694 thousand in 2022 from RMB 73,117 thousand in 2021, an increase of approximately 6.5%[20] Educational Services and Partnerships - The company has established over 1,900 learning centers across 31 provinces, connecting approximately 2.8 million end-users and 270,000 job positions[2] - The group aims to enhance its "Internet + " vocational education and employment services, integrating resources to improve service capabilities[2] - The company has collaborated with over 850 human resource enterprises and approximately 30 leading industry companies to expand its service network[2] - The group plans to further optimize its integrated vocational education services to meet the growing demand for skilled talent in China[2] - The total number of students enrolled across the group's schools reached 100,141, with full-time undergraduate students accounting for approximately 58.2%[58] - The group has established partnerships with over 400 higher education institutions, serving more than 13 million students through its educational technology services[65] - The group’s educational services supported around 1,050,000 students through partnerships with approximately 250 universities and colleges[160] Operational Expenses - Employee benefits expenses, including salaries and wages, rose to RMB 613,964 thousand in 2022, up from RMB 443,084 thousand in 2021, reflecting a significant increase of approximately 38.5%[21] - Sales and distribution expenses increased by approximately 12.5% from RMB 242.9 million in the year ended December 31, 2021, to RMB 273.3 million in the year ended December 31, 2022, primarily due to the consolidation of new online education entities during the reporting period[44] - Administrative expenses increased by approximately 6.3% from RMB 471.3 million for the year ended December 31, 2021, to approximately RMB 501.0 million for the year ended December 31, 2022, due to increased salaries and benefits for administrative staff and higher depreciation and amortization expenses[176] - Financing costs increased by approximately 25.4% from RMB 130.6 million for the year ended December 31, 2021, to approximately RMB 163.7 million for the year ended December 31, 2022, primarily due to growth in loans and interest rates[198] Research and Development - R&D expenses for the reporting period amounted to approximately RMB 117.6 million, with cumulative investment in technical capabilities exceeding RMB 1 billion[134] - The company has been awarded over 200 national and provincial-level research projects, highlighting its commitment to innovation and technology development[134] Future Plans and Strategies - The company aims to develop a comprehensive service platform for "Chinese + Vocational Education" to support international education projects along the Belt and Road Initiative[40] - The company is focusing on digital solutions for human resources services, including a SaaS platform for employment and training management, targeting both enterprises and educational institutions[36] - The company plans to enhance its integrated vocational education services by improving the "recruitment-assessment-teaching-practice-examination-employment" model and achieving data interoperability among schools, students, and enterprises[182] - The company aims to build a talent digital service industry internet platform that integrates learning, employment, and entrepreneurship through existing business resources, acquisitions, and strategic partnerships[194] - The company emphasizes the construction of new educational infrastructure, focusing on information networks, platform systems, digital resources, and innovative applications to support high-quality educational development[190]

Vocational Education Landscape - As of now, there are approximately 11,400 vocational colleges nationwide, with approximately 31 million students and more than 1.35 million full-time teachers[10]. - Vocational education provides approximately 10 million graduates to the market every year and trains hundreds of millions of people annually[10]. - The newly revised "Vocational Education Law of the People's Republic of China" was implemented on May 1, 2022, marking the first revision in 26 years[11]. - The new law promotes enterprises' participation in vocational education, encouraging them to utilize capital, technology, and facilities to establish vocational schools[11]. - The vocational education reform plan and the release of "Opinions on Promoting the High-quality Development of Modern Vocational Education" indicate unprecedented governmental support for vocational education[12]. Minsheng Education Group Overview - Minsheng Education Group is positioned as a leading "Internet +" vocational education group in China, focusing on integrating technology with vocational education[16]. - The Group has established over 1,900 online and offline learning centers across all 31 provinces in China, serving a total user base of more than 50 million[17]. - As of June 30, 2022, the Group's schools have a total of 101,636 students, with approximately 57.0% being full-time undergraduate students[29]. - The Group's postgraduate management education services platform, MBAChina, has approximately 2.89 million cumulative users, with 212,000 new users added during the reporting period[27]. - The Group's IT vocational training subsidiary, IMOOC, has accumulated over 23 million users and offers more than 3,000 high-quality training courses[35]. Teacher Training and Development - Approximately 7 million teachers have been trained cumulatively through the Group's various teacher training platforms as of June 30, 2022[36]. - The Group's teacher training program has introduced a "return to work live broadcast room" to address post-training support and guidance[41]. - The Group's vocational education service capabilities integrate enrollment assessment, teaching, practical training, examination, and employment[17]. Financial Performance - Total revenue increased by approximately 2.9% to approximately RMB1,274.0 million for the six months ended 30 June 2022, up from approximately RMB1,238.1 million for the same period in 2021, mainly due to an increase in the number of students and users[73]. - Cost of sales increased by approximately 5.6% from approximately RMB511.2 million for the six months ended 30 June 2021 to approximately RMB539.9 million for the six months ended 30 June 2022[73]. - Gross profit increased by approximately 1.0% from approximately RMB726.9 million for the six months ended 30 June 2021 to approximately RMB734.2 million for the six months ended 30 June 2022, while gross profit margin decreased from approximately 58.7% to approximately 57.6%[73]. - Profit for the period decreased by approximately 10.3% from approximately RMB389.0 million for the six months ended 30 June 2021 to approximately RMB349.1 million for the six months ended 30 June 2022[79]. - Adjusted net profit decreased by approximately RMB17.5 million or approximately 4.0% as compared with the corresponding period in 2021, with adjusted net profit margin decreasing from approximately 35.6% to approximately 33.2%[86]. Assets and Liabilities - As at 30 June 2022, the Group had net current assets of approximately RMB805.2 million, with current assets decreasing to approximately RMB3,719.1 million from approximately RMB3,948.5 million as at 31 December 2021[88]. - Interest-bearing loans from financial institutions and other borrowings amounted to approximately RMB2,207.7 million as at 30 June 2022, with effective interest rates ranging from 2.2% to 7.4% per annum[91]. - Current liabilities decreased from approximately RMB3,318.4 million as at 31 December 2021 to approximately RMB2,913.9 million as at 30 June 2022[89]. - The gearing ratio increased to approximately 44.8% as of June 30, 2022, up from 41.3% as of December 31, 2021, attributed to new loans acquired during the reporting period[103]. Shareholding and Corporate Governance - As of June 30, 2022, Mr. Li Xuechun held a long position of 3,022,604,000 shares, representing approximately 71.66% of the Company[111]. - The shareholding structure indicates a significant concentration of ownership, with the top shareholder holding over 70%[118]. - The Board does not recommend any dividend for the six months ended June 30, 2022, consistent with the previous year where no dividend was declared[136]. - The Company has complied with all code provisions set forth in the Corporate Governance Code during the Reporting Period[142]. Loan Agreements and Financial Obligations - A loan agreement with International Finance Corporation was established for a principal amount of up to RMB750 million, repayable in 11 semi-annual installments starting from June 15, 2023, aimed at business expansion and daily operations[160]. - The company secured a term loan facility of up to USD 44,800,000 from Bank of China Macau Branch, with a loan term of 5 years, intended for acquisitions and general operational funding[172]. - A facility agreement with Minsheng Bank Hong Kong Branch was established, providing a term loan of up to HKD 500,000,000, available for multiple drawings within one year, with a maximum term of 3 years[175]. Overall Financial Health - Total comprehensive income for the period was RMB 312,298, a decrease of 20.2% compared to RMB 391,438 in the same period last year[190]. - Basic and diluted earnings per share attributable to ordinary equity holders of the parent decreased to RMB 0.0805 from RMB 0.0910, a drop of 11.0%[190]. - Total equity attributable to owners of the parent increased to RMB 4,713,833 from RMB 4,591,805, representing a growth of 2.6%[194]. - The total comprehensive income for the period, after accounting for all adjustments, was RMB 312,298,000, demonstrating overall financial health[196].

Financial Performance - Revenue for 2021 reached RMB 2,394,012,000, representing a significant increase from RMB 1,107,206,000 in 2020, which is a growth of approximately 116%[11] - Gross profit for 2021 was RMB 1,356,961,000, up from RMB 567,080,000 in 2020, indicating a growth of about 139%[11] - Profit before tax for 2021 was RMB 661,801,000, compared to RMB 143,522,000 in 2020, marking an increase of approximately 361%[11] - Adjusted net profit was approximately RMB 803.2 million, reflecting an increase of approximately 85.7% compared to the previous year[25] - Profit for the year substantially increased by approximately 379.1% from approximately RMB 126.8 million for the year ended 31 December 2020 to approximately RMB 607.6 million for the year ended 31 December 2021[152] - Gross profit increased by approximately 139.3% from approximately RMB 567.1 million for the year ended 31 December 2020 to approximately RMB 1,357.0 million for the year ended 31 December 2021, with gross profit margin rising from approximately 51.2% to approximately 56.7%[136] Assets and Liabilities - Total assets as of December 31, 2021, amounted to RMB 11,437,794,000, up from RMB 9,110,346,000 in 2020, reflecting a growth of around 25%[11] - Non-current assets increased to RMB 7,489,314,000 in 2021 from RMB 6,383,900,000 in 2020, which is an increase of approximately 17%[11] - Current liabilities for 2021 were RMB 3,318,427,000, compared to RMB 2,024,600,000 in 2020, representing an increase of about 64%[11] - Net current assets as at 31 December 2021 were approximately RMB 630.1 million, with current assets increasing to approximately RMB 3,948.5 million from approximately RMB 2,726.4 million as at 31 December 2020[159] - The Group's total borrowings amounted to approximately RMB 1,978.9 million as of December 31, 2021, with effective interest rates ranging from 2.2% to 7.3% per annum[172] Market and Growth Strategy - The company plans to expand its market presence and enhance its educational offerings in the coming years, focusing on new technologies and product development[10] - Management expressed optimism about future growth, citing increased enrollment and demand for online education services[10] - The Group aims to cultivate high-skilled talents for Chinese enterprises to support their strategic development and internationalization efforts[27] - Future strategies include implementing a digital platform strategy, internationalization strategy, and talent strategy to build a high-quality vocational education ecosystem[27] - The government has recognized the strategic importance of vocational education, indicating a promising future for the industry[34] Educational Services and Infrastructure - The Group has successfully transformed into an "Internet+" vocational education group, focusing on vertical integration and horizontal diversification since 2019[16] - The Group has built a service network covering over 1,900 online and offline learning centers across 31 provinces, serving more than 50 million students and users[18] - The Group's online education services cater to adults seeking to upgrade their academic qualifications, including professional postgraduate education[60] - The Group's vocational ability improvement business includes over 3,000 high-quality IT vocational training courses and has accumulated more than 21 million users[78] - The Group has established over 1,900 online and offline learning centers covering 31 provinces across China[58] Research and Development - More than RMB 1 billion has been invested in technology infrastructure and capabilities, establishing an industry-leading technical service foundation[20] - The Group has undertaken over 200 national, provincial, and ministerial scientific research projects, including major national science and technology projects[20] - The Group has more than 110 patents and over 400 software copyrights, creating a fully closed-loop vocational education service cloud platform[20] - The Group is implementing a digital education platform strategy utilizing new generation information technologies such as 5G, big data, and artificial intelligence[126] Management and Governance - Ms. Zhang Weiping has over 15 years of experience in the education industry and has been responsible for the overall management and operation of the Group since her appointment as CEO in July 2020[181] - The Group's management team includes professionals with advanced degrees in law and accounting, enhancing its operational capabilities[184][188] - The Company has a commitment to maintaining strong governance with a diverse board of directors, including both executive and non-executive members[192] - The board's composition includes independent directors, enhancing corporate governance and oversight[198] Employment and Training - The Group had 7,470 employees as of December 31, 2021, an increase from 5,584 employees in 2020, reflecting growth in operations[176] - As of December 31, 2021, approximately 6.30 million teachers have been trained through the Group's mobile learning platforms[81] - The Group provided over 50 vocational qualification certificate training programs, training approximately 40,000 individuals in 2021[81] - The average employment rate of graduates from the Group's schools has consistently remained above 90% in recent years[115]

Market Growth and Trends - The scale of China's vocational education market increased from approximately RMB 343.4 billion in 2014 to approximately RMB 811.0 billion in 2022, representing an eight-year compound growth rate of approximately 11.3%[16] - The market size of academic vocational education grew from approximately RMB 127.0 billion in 2014 to approximately RMB 288.0 billion in 2022, with a compound growth rate of about 10.8%[16] - The market size of non-academic vocational education rose from approximately RMB 216.4 billion in 2014 to approximately RMB 523.0 billion in 2022, achieving a compound growth rate of about 11.7%[16] - The online vocational education market is projected to grow from approximately RMB 185.0 billion in 2016 to approximately RMB 649.66 billion in 2025, indicating a nine-year compound growth rate of about 15.0%[16] Workforce and Skills Gap - In 2020, skilled personnel in China accounted for only approximately 26% of the total employment population, highlighting a significant gap compared to developed countries[13] - High-skilled personnel represented approximately 28% of the total skilled personnel population in China, indicating a need for further development in vocational education[13] Government Policies and Support - The Chinese government has implemented several encouraging policies for vocational education, including the National Vocational Education Reform Implementation Plan and the Vocational Skills Improvement Action Plan[13] - The Vocational Education Law of the PRC has been revised to emphasize the equal importance of vocational education and general education[13] Company Strategy and Positioning - The company aims to accelerate the construction of a modern vocational education system to meet the growing demand for skilled talents in China[14] - The company is positioned to benefit from the strong growth in the vocational education market driven by industrial structure upgrades in China[14] Educational Offerings and Enrollment - As of June 30, 2021, the Group operated and/or managed 10 schools in China, with a total student enrollment of 97,002, of which approximately 57.9% were undergraduates[23] - The Group's schools offered a total of 114 undergraduate majors, 117 higher vocational majors, 18 secondary vocational majors, and 4 postgraduate majors across 11 university disciplines[23] - The number of students in junior college education or above level courses was approximately 138,000 as of June 30, 2021[40] Financial Performance - Total revenue increased by approximately 128.1% to approximately RMB1,238.1 million for the six months ended 30 June 2021 from approximately RMB542.7 million for the same period in 2020[81] - Gross profit increased by approximately 136.9% from approximately RMB306.8 million for the six months ended 30 June 2020 to approximately RMB726.9 million for the same period in 2021, with gross profit margin rising from approximately 56.5% to approximately 58.7%[87] - Profit for the period increased approximately 64.6% from approximately RMB236.4 million for the six months ended 30 June 2020 to approximately RMB389.0 million for the six months ended 30 June 2021[97] Investments and Acquisitions - The Group entered into an agreement to acquire 51% equity interests in Xiaoai Technology, which connects over 750 human resources companies and targets approximately 3 million individuals[48] - The Group acquired 51% equity interest in Xiaoai Technology, a SaaS provider for the human resources industry, enhancing its service efficiency and reducing costs[50] - The Group acquired 51% equity interests in Beijing Xiaoai Intelligent Technology Company Limited for a total consideration not exceeding RMB80.1 million[159] Technology and Innovation - The Group has invested over RMB 1 billion in building basic technology capabilities, resulting in more than 110 invention patents and over 300 software copyrights[54] - The Group has developed and integrated over 10 online vocational education service platforms and 1,500 TB of digital learning resources, creating nearly 20 national and provincial quality online open courses[71] Employee and Shareholder Information - As of June 30, 2021, Mr. Li Xuechun holds 3,019,628,000 shares, representing approximately 71.59% of the company's total shareholding[116] - The total number of issued shares as of June 30, 2021, is 4,217,720,000 shares[117] - The Group employed 5,197 staff, an increase from 4,626 staff as of June 30, 2020[139] Compliance and Governance - The Group has complied with all relevant laws and regulations that have a significant impact on the Company during the reporting period[142] - The Company has adopted the standard code as set out in the Listing Rules[151] Social Responsibility and Community Engagement - The Group's initiatives during the COVID-19 pandemic included donating medical supplies worth over RMB100 million and providing free access to over 200 learning platforms for more than 10 million learners[75] - The Group established a funding project amounting to RMB40 million to support students from poverty alleviation monitoring households[75]

Education Operations - As of December 31, 2020, the Group operated and/or managed 10 schools in the PRC, with a total student enrollment of 92,772[5] - The Group operated over 1,800 offline learning centers across 31 provinces in China, integrating online and offline learning[6] - The Group's on-campus education network covers regions including Chongqing, Shandong, Yunnan, Inner Mongolia, Hong Kong, Singapore, and Australia[5] - The total number of students enrolled in the Group's on-campus education reached 92,772, an increase of approximately 12.1% compared to the previous year[27] - The Group's vocational skills training platform has cumulatively served over 20 million students, recognized as a national high-quality online training platform[28] - The Group's four online education brands had approximately 1.18 million online education undergraduate and junior college students and more than 20 million vocational education users as of December 31, 2020[39] - The number of junior college or above enrolled students under the Group's management in Guangdong Online Education was approximately 133,000, reflecting a 35.6% increase from the previous year[47] - Open Distance Education enrolled approximately 1.04 million students and trained about 2.9 million teachers throughout 2020[107] Financial Performance - The Group achieved a revenue of RMB 1,107,206,000 for the year ended 31 December 2020, representing an increase of approximately 10.1% compared to RMB 1,005,436,000 in 2019[18] - The Group's gross profit for 2020 was RMB 567,080,000, reflecting a gross margin of approximately 51.2%[18] - The Group's profit for the year was RMB 126,812,000, a decrease from RMB 333,981,000 in 2019, primarily due to increased operational costs[18] - Adjusted net profit increased by approximately 12.0%, from RMB 386.1 million for the year ended 31 December 2019 to approximately RMB 432.4 million for the year ended 31 December 2020[32] - The Group's net assets as of 31 December 2020 were RMB 4,161,879,000, maintaining a stable financial position[18] - The Group recorded an increase in revenue of approximately 10.1%, from approximately RMB 1,005.4 million for the year ended 31 December 2019 to approximately RMB 1,107.2 million for the year ended 31 December 2020[32] - The gross profit increased by approximately 9.8% from approximately RMB 516.5 million for the year ended December 31, 2019, to approximately RMB 567.1 million for the year ended December 31, 2020[153] - The Group's current liabilities increased from approximately RMB 1,482.4 million as of December 31, 2019, to approximately RMB 2,024.6 million as of December 31, 2020[177] Strategic Development - The Group promotes the parallel development of ordinary higher education and vocational education, as well as coordinated development of on-campus and online education[4] - The Group aims to empower education with technology, enhancing the quality and accessibility of education[4] - The Group's strategic focus includes expanding its online education services and enhancing its technological capabilities[4] - The Group plans to develop a comprehensive academic education service platform, integrating formal and vocational education, and enhancing online and offline education coordination[34] - The Group aims to establish an integrated cultivation mechanism for personalized needs in enrollment, training, and employment[34] - The Group is focused on internationalizing its education platform, targeting "One-Belt-One-Road" countries and regions[34] - The Group's strategy includes the dual drive of higher education and vocational education, along with the coordinated development of campus and online education[135] Operational Challenges - The Group's profit for the year decreased from approximately RMB 334.0 million in 2019 to approximately RMB 126.8 million in 2020 due to various factors[169] - Selling and distribution expenses rose by approximately 27.7% from approximately RMB 16.0 million in 2019 to approximately RMB 20.5 million in 2020, primarily due to increased advertising and marketing costs[161] - Administrative expenses increased by approximately 14.5% from approximately RMB 185.1 million in 2019 to approximately RMB 212.0 million in 2020, driven by higher salaries and anti-epidemic procurement expenses[163] - Other expenses surged from approximately RMB 28.3 million in 2019 to approximately RMB 46.8 million in 2020, mainly due to increased foreign exchange losses[164] Employee Management - As of December 31, 2020, the Group employed 5,584 employees, an increase from 5,445 employees in 2019, reflecting a growth of approximately 2.5%[194] - The Group has implemented salary increments for employees based on performance, experience, and industry practices, with regular reviews of compensation policies[194] - Comprehensive training programs are provided for both existing and newly recruited employees, along with sponsorship for job-related training courses[194] Community Support - The Group initiated donations of approximately RMB 4.0 million in anti-epidemic supplies during the COVID-19 pandemic, supporting educational institutions[32] - The company donated approximately RMB 4 million worth of anti-epidemic supplies to universities in Chongqing City during the COVID-19 pandemic[131] - The company actively organized online education activities during the COVID-19 pandemic to ensure continuity of education[124]

Student Enrollment and Education Focus - As of June 30, 2020, the total number of students under the Group's management reached 212,645, comprising 84,821 on-campus students and 127,824 online education students[11] - Among the on-campus students, 52,531 were undergraduate students, representing approximately 61.9% of the total on-campus student population[11] - The Group has positioned its future development to focus on the parallel growth of ordinary higher education and vocational education, alongside coordinated development of on-campus and online education[10] - The Group aims to nurture high-end application-oriented and innovative talents to meet market demand[10] - The online education segment primarily focuses on ordinary higher education and vocational education[10] - The Group is recognized as one of the largest private ordinary higher education and vocational education operators in the PRC based on total student numbers[9] - The Group's commitment to high-quality education is reflected in its substantial student enrollment figures[11] - The Group continues to adapt its educational offerings to align with evolving market needs and technological advancements[10] Online Education and Technological Integration - The Group was the first to develop online education based on its on-campus education framework in 2019, aligning with the "Internet+education" trend[9] - The Group's strategy includes enhancing the integration of intelligent technology in education[9] - As of June 30, 2020, Open Distance Education served approximately 974,000 enrolled students and cooperated with 39 prestigious universities, offering over 500 undergraduate and junior college majors[19] - The Group's online education platform, IMOOC, provided over 3,000 courses with approximately 19 million cumulative users, including about 7.857 million registered users[19] Financial Performance and Growth - Revenue increased by approximately 3.1% from approximately RMB526.4 million for the six months ended June 30, 2019, to approximately RMB542.7 million for the six months ended June 30, 2020[94] - Profit for the period increased by approximately 16.1% from approximately RMB203.7 million for the six months ended June 30, 2019, to approximately RMB236.4 million for the six months ended June 30, 2020[120] - Adjusted net profit for the six months ended June 30, 2020 increased by approximately RMB18.3 million or approximately 7.8% compared to the corresponding period in 2019, with an adjusted net profit margin increase from approximately 44.2% to approximately 46.3%[127] - Other income and gains increased by approximately 70.7% from approximately RMB39.3 million for the six months ended June 30, 2019 to approximately RMB67.0 million for the six months ended June 30, 2020, primarily due to increased government grants and interest income[102] Campus Development and Expansion - The Group operates and manages 10 schools across various regions in China, including 7 higher education institutions and 2 secondary vocational schools[1] - The construction of the new campus for Dianchi College of Yunnan University commenced in October 2019, covering approximately 860 mu and expected to accommodate 12,500 students by 2022[32] - The Group is expanding its school capacity with new campuses, including a 860-acre campus in Yunnan University with a planned capacity of 12,500 students, expected to be operational by 2022[34] - The new campus in Qufu Fareast Vocational and Technical College is expected to be operational within 2020, covering approximately 463 acres[34] Financing and Investment Activities - The Group secured a loan of RMB750 million from the International Finance Corporation at a low interest rate of 1.5% above the market rate, with a term of 8 years[33] - In June 2020, the Group raised approximately HK$239 million through the placement of 200 million shares at HK$1.22 per share[33] - The Group's financing strategy includes diversifying funding sources through debt and equity financing to support long-term business growth[34] - The Group acquired 100% of TCL Educational Web in March 2020, which holds 50% equity interest in Open Distance Education and 80% in Silk Road[17] Impact of COVID-19 - The Group refunded approximately RMB21 million in boarding fees to students in accordance with local education authorities' guidelines due to the COVID-19 pandemic[78] - The Group donated anti-epidemic supplies worth approximately RMB4 million to universities in Chongqing City during the COVID-19 outbreak[77] - The Group's schools successfully transitioned to online education during the pandemic, allowing for continued education despite class suspensions[76] Staff and Management - As of June 30, 2020, the Group employed 6,198 staff, an increase of 34% from 4,626 staff as of June 30, 2019[180] - Employee salaries were reviewed and increased during the reporting period based on performance, experience, and industry practices[144] - The Group provides comprehensive training programs for existing and newly recruited employees, including sponsorship for job-related training courses[146] Shareholding and Corporate Governance - As of June 30, 2020, Mr. Li Xuechun holds 3,000,000,000 shares, representing approximately 71.13% of the company's total shareholding[152] - The total number of issued shares as of June 30, 2020, is 4,217,720,000 shares[153] - The Board does not recommend any dividend for the six months ended June 30, 2020, consistent with the previous year[184] - The audit committee has reviewed the unaudited interim consolidated financial statements and the interim report of the Group for the Reporting Period[193] Compliance and Regulations - The Company has complied with all relevant laws and regulations that have a significant impact on the Company during the Reporting Period[183] - The board of directors has confirmed compliance with the standards throughout the reporting period[196] - The company has established a code for senior management regarding securities trading related to undisclosed price-sensitive information[197]