Financial Performance - Revenue for the year ended December 31, 2023, was RMB 420,028,000, representing an increase of RMB 108,120,000 or 34.7% compared to RMB 311,908,000 in 2022[4] - Gross profit for the same period was RMB 164,959,000, up by RMB 18,575,000 or 12.7% from RMB 146,384,000 in 2022[4] - EBITDA for the year was RMB 167,429,000, an increase of RMB 48,335,000 or 40.6% compared to RMB 119,094,000 in 2022[4] - Basic and diluted earnings per share increased to RMB 3.50, up by RMB 1.11 or 46.4% from RMB 2.39 in 2022[4] - The net profit for the year was RMB 39,836,000, up from RMB 26,718,000 in the previous year, marking an increase of about 49.0%[47] - The pre-tax profit increased to RMB 39,160,000 in 2023 from RMB 27,414,000 in 2022, reflecting a growth of approximately 43.0%[46] - Total other income and gains netted RMB 43,851,000 in 2023, compared to RMB 35,186,000 in 2022, reflecting a growth of 24.5%[92] Enrollment and Student Statistics - Total full-time student enrollment reached 27,662, an increase of 3,774 students or 15.8% from 23,888 in the previous academic year[4] - The number of students enrolled in vocational education at Shijiazhuang Institute of Technology rose by 25.4% to 21,232 for associate degree programs[135] - The company provided services to 3,906 students at the Sifang College West Campus as of December 31, 2023[108] - The company provided high school education services to 2,549 students as of December 31, 2023[177] - Employment rate for 2023 reached 97.9%, an increase of 0.8% from 2022[112] Assets and Liabilities - Current liabilities as of December 31, 2023, amounted to RMB 989,556,000, reflecting a significant increase due to capital expenditures for acquiring education-related assets[5][6] - The net current liabilities of the group were approximately RMB 315.2 million, raising concerns about the group's ability to continue as a going concern[6] - The total current assets as of December 31, 2023, were RMB 674,323,000, compared to RMB 503,284,000 in 2022[31] - The total assets as of December 31, 2023, amounted to RMB 2,322,749,000, compared to RMB 2,056,000,000 in 2022, showing an increase of approximately 12.9%[41] - The company has a total liability of RMB 1,229,601,000, with interest-bearing bank and other borrowings amounting to RMB 693,383,000[59] Capital Expenditures and Financing - The company reported a significant increase in capital expenditure, totaling RMB 421,224,000 in 2023, compared to RMB 83,025,000 in 2022[41] - The company’s financing costs rose to RMB 42,745,000 in 2023 from RMB 35,625,000 in 2022, reflecting an increase of approximately 19.0%[46] - Capital expenditures reached RMB 886,915,000, with RMB 615,696,000 allocated to vocational education and RMB 271,219,000 to non-vocational education[59] Educational Initiatives and Collaborations - The company focuses on the education industry and has diversified revenue sources and a broad customer base[78] - The company is committed to the integration of industry and education, emphasizing the development of new vocational education[78] - The strategic agreement with JD.com for the establishment of a joint e-commerce integration demonstration base was signed in March 2023[117] - Tencent Cloud and the institute jointly established the Tencent Cloud Artificial Intelligence Industry Academy to support talent development in cloud computing and big data[117] - The company established 13 industry colleges related to emerging industries, enhancing collaboration with over 700 enterprises, including more than 60 Fortune 500 companies[144] Future Outlook and Strategic Goals - The company maintained a positive outlook for future growth, supported by increased student enrollment and operational cash flow[35] - The company plans to establish approximately 150 industry-education integration entities by 2025, with 50 entities targeted for completion by the end of 2023 and another 50 by the end of 2024[188] - The company aims to improve vocational school funding by implementing a differentiated per-student funding system based on professional categories, gradually increasing funding levels to enhance educational conditions[187] - The company is actively exploring the "Industry-Education Symbiosis 5.0" model to align talent cultivation with local economic development needs[142] Awards and Recognition - The company was awarded the "2023 Most Investment Value Brand" at the 2023 China Brand Boao Summit[182] - The company received multiple awards in December 2023, recognizing its value in social services and brand image in the new vocational education sector[152][153][154]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 192,102,000, representing a 32.6% increase from RMB 144,822,000 in 2022[8]. - Gross profit for the same period was RMB 76,194,000, with a gross margin of 39.7%, down from 49.6% in 2022, indicating a decrease of 9.9 percentage points[8]. - EBITDA for the first half of 2023 was RMB 91,414,000, up 37.2% from RMB 66,650,000 in 2022[8]. - Profit for the period increased by approximately 23.1% from RMB 27.1 million for the six months ended June 30, 2022, to RMB 33.4 million for the six months ended June 30, 2023[59]. - Profit before tax increased to RMB 33,003,000, up 21.5% from RMB 27,122,000 in the previous year[116]. - The basic and diluted earnings per share for the period were RMB 2.94, compared to RMB 2.37 in 2022, reflecting a growth of 24%[116]. - The company reported a total comprehensive income of RMB 39,608,000 for the period, compared to RMB 36,924,000 in 2022, an increase of 7.3%[116]. Student and Teacher Metrics - Total number of full-time students increased to 23,423, a rise of 25.2% from 18,704 in 2022[9]. - The total number of full-time teachers rose to 792, reflecting a 32.4% increase from 598 in the previous year[9]. - The student retention rate improved to 98.7%, an increase of 5.8% from 93.3% in 2022[9]. - The average revenue per student in vocational education increased to RMB 4,763, up by RMB 243 or 5.4% year-over-year[17]. - The employment rate for graduates as of June 30, 2023, was approximately 96.7%, a slight increase of 0.1% from the previous year[19]. - The high school education segment served 2,361 students, achieving a university admission rate of approximately 98% and an art examination pass rate of 94.7%[31]. - The enrollment in the New Horizon Kindergarten reached a record high of 1,895 students for the 2022-2023 academic year, marking a continuous growth over four years[35]. Educational Services and Programs - The company continues to focus on personalized education services and solutions to enhance student capabilities[10]. - The company has established 22 programs in collaboration with 14 enterprises, with 20 order classes and 15 pilot apprenticeship programs in place as of June 30, 2023[25]. - The company has formed partnerships with over 700 enterprises, including more than 60 Fortune 500 companies, to support talent development in emerging industries[26]. - The company aims to deepen the integration of industry and education through internal development and external acquisitions[3]. - The company aims to establish approximately 150 industry-education integration entities by 2025, enhancing collaboration between vocational schools and enterprises[43]. Financial Position and Assets - Current assets increased from approximately RMB 503.3 million as of December 31, 2022, to approximately RMB 612.8 million as of June 30, 2023, mainly due to increases in prepayments, deposits, and other receivables[60]. - Current liabilities increased from approximately RMB 559.6 million as of December 31, 2022, to approximately RMB 654.3 million as of June 30, 2023, primarily due to increased short-term borrowings and a decrease in contract liabilities[60]. - The current ratio improved from 89.9% as of December 31, 2022, to 93.7% as of June 30, 2023, due to a greater increase in current assets compared to current liabilities[62]. - The debt-to-asset ratio increased from approximately 62.9% as of December 31, 2022, to approximately 65.1% as of June 30, 2023, due to an increase in interest-bearing loans and other borrowings[63]. - Non-current assets as of June 30, 2023, totaled RMB 1,559,777,000, an increase from RMB 1,452,178,000 as of December 31, 2022[119]. - Total liabilities as of June 30, 2023, were RMB 1,414,265,000, compared to RMB 1,229,601,000 at the end of 2022, reflecting an increase of 15%[119]. Governance and Management - The company has adopted the corporate governance code as per the listing rules and has complied with most of its recommended best practices[78]. - The management team includes key positions such as Chief Executive Officer, Chief Financial Officer, and Executive Vice Presidents overseeing various operational areas[75]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[78]. - There were changes in the board, with Mr. Li Yusheng resigning as executive director and Mr. Li Yasheng being appointed as chairman[76]. - The audit committee, composed of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2023[81]. Shareholder Information - As of June 30, 2023, Mr. Li Yurun holds 754,590,000 shares, representing 64.98% of the company's equity[85]. - As of June 30, 2023, the total number of issued shares is 1,161,204,000[89]. - The company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[80]. - The company has a stock option plan with a maximum limit of 10% of the issued shares, equating to 120,000,000 shares, as of the reporting date[94]. - The company aims to attract and retain talented individuals through its stock option plan, which incentivizes contributions to the group's performance and success[93]. Cash Flow and Investments - The cash flow from operating activities showed a net outflow of RMB 1,715 thousand for the six months ended June 30, 2023, compared to a net outflow of RMB 4,989 thousand in the same period last year, indicating an improvement in cash flow management[128]. - The net cash flow from investing activities was RMB (226,363,000), significantly higher than RMB (81,132,000) in the previous year, indicating increased capital expenditures[130]. - The net cash flow from financing activities was RMB 169,674,000, slightly down from RMB 169,920,000 in the same period last year[130]. - The company has implemented a share buyback program, repurchasing shares worth RMB 2,344 thousand during the reporting period[125]. Market and Competitive Position - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge in the education sector[126]. - The company is actively exploring investment and acquisition opportunities in the vocational education sector to enhance growth potential[50]. - The company is responding to national policies by establishing a diversified educational industry structure centered on new vocational education development[47].

Financial Data and Key Metrics Changes - In the first half of the year, total revenue reached 192 million yuan, with a year-on-year growth of 32.6% [3][4] - The revenue from vocational education accounted for 65% of total revenue, while non-vocational education contributed 35% [4][6] - The average annual compound growth rate since the company went public in 2018 is 16.7% [4][6] Business Line Data and Key Metrics Changes - Vocational education revenue grew by 13.2%, while non-vocational education revenue surged by 94%, primarily due to the acquisition of Shijiazhuang Yuying Experimental High School [4][6] - The number of full-time students increased by 13.6%, reaching a total of 19,167 students [11][12] - The tuition fee cap for vocational courses increased by 30.8%, contributing to revenue growth [12][15] Market Data and Key Metrics Changes - The overall education expenditure in 2022 reached 6.1 trillion yuan, with a compound annual growth rate of 7.9% [10][11] - The vocational education market is expected to exceed 900 billion yuan in 2023, with an annual growth rate of 11.7% [9][10] Company Strategy and Development Direction - The company aims to expand its service boundaries by exploring opportunities in vocational education and related industries, focusing on a dual-driven model of internal development and external acquisitions [20][22] - The company is enhancing its educational quality and conditions to attract more students, particularly in its new high school and vocational education sectors [18][19] Management's Comments on Operating Environment and Future Outlook - The management highlighted the increasing demand for vocational education due to industrial upgrades, with a projected talent gap in manufacturing exceeding 30 million by 2025 [9][10] - The company is committed to responding to national policies encouraging vocational education development and integrating industry with education [20][22] Other Important Information - The company has maintained a stable dividend payout ratio, increasing it to 30% of operating profit in the previous year [7][8] - The company has repurchased approximately 7-8% of its total shares since its listing, enhancing shareholder value [8][9] Q&A Session All Questions and Answers Question: Can you explain the business model for the new college entrance examination services? - The business model includes two main parts: assisting students with college entrance exam planning and registration, and collaborating with high schools to enhance local teacher resources [22][23] Question: Why focus on regions like Hangzhou for expansion? - The company views Hangzhou and similar regions as having a strong emphasis on education, making them ideal for expansion [23]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因依賴該等內容而引致的任何損失承擔任何責任。 China 21st Century Education Group Limited 中國21世紀教育集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1598） 截至2023年6月30日止六個月的中期業績公告 財務摘要 截至6月30日止六個月 2023年 2022年 變動 變動 （人民幣千元）（人民幣千元）（人民幣千元） 百分比 （未經審核） （未經審核） 收入 192,102 144,822 47,280 32.6% 毛利 76,194 71,847 4,347 6.1% EBITDA 91,414 66,650 24,764 37.2% 期間利潤 33,367 27,103 6,264 23.1% 每股盈利（人民幣分） 2.94 2.37 0.57 24.1% ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因依賴該等內容而引致之任何損失承擔任何責任。 China 21st Century Education Group Limited 21 1598 截至2022年12月31日止年度年報的補充公告 茲提述本集團於2023年4月27日刊發的截至2022年12月31日止年度年報（「年報」）。除另有 指明外，本公告所用詞彙與年報所界定者具有相同涵義。 股份獎勵計劃 除年報所披露的資料外，以下載列上市規則第17.07條規定的若干補充資料： (1) 於2022年1月1日，根據股份獎勵計劃可供進一步授予的股份總數為89,001,600股股 份。 (2) 於2022年12月31日，就根據股份獎勵計劃授出的獎勵而可予發行的股份總數為 9,511,200股股份，佔截至2022年12月31日止年度已發行股份加權平均數約0.82%。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因依賴該等內容而引致之任何損失承擔任何責任。 China 21st Century Education Group Limited 21 1598 截至2022年12月31日止年度年報的補充公告 茲提述本集團於2023年4月27日刊發的截至2022年12月31日止年度年報（「年報」）。除另有 指明外，本公告所用詞彙與年報所界定者具有相同涵義。 股份獎勵計劃 除年報所披露的資料外，以下載列上市規則第17.07條規定的若干補充資料： (1) 於2022年1月1日，根據股份獎勵計劃可供進一步授予的股份總數為89,001,600股股 份。 (2) 於2022年12月31日，就根據股份獎勵計劃授出的獎勵而可予發行的股份總數為 9,511,200股股份，佔截至2022年12月31日止年度已發行股份加權平均數約0.82%。 ...

Enrollment and Student Statistics - As of December 31, 2022, the total number of full-time students enrolled in the group’s schools reached 23,888, an increase of 27.1% compared to 18,792 in the previous year[7][4] - The number of full-time students in the vocational education sector was 19,809, up 16.0% from 17,076 in 2021[21] - The group expanded its high school education business, with 2,361 students enrolled at Shijiazhuang Yuying Experimental High School as of December 31, 2022[22] - The group maintained a stable operation of the New Horizon Kindergarten, with 1,718 students enrolled, slightly up from 1,716 in 2021[23] - The group provided management services for 3,888 students at the Xixiao Campus of Sifang College[21] - Total full-time students reached 23,888 in 2023, marking a 27.1% increase from 18,792 in 2022[67] - The employment rate for vocational education graduates was approximately 97.1% as of December 31, 2022, up from 96.6% in the previous year[58] - The student retention rate improved to 97.4% in 2023, up from 88.8% in 2022, indicating enhanced student satisfaction and engagement[67] Financial Performance - The group's revenue for 2022 was RMB 311.9 million, with a gross profit of RMB 146.4 million, resulting in a gross margin of 46.9%, up from 41.1% in 2021[36] - Gross profit rose by 15.4% to RMB 146.4 million in 2022, with gross margin increasing from 41.1% to 46.9%[71] - Revenue increased by approximately 1.0% from RMB 308.8 million in the year ended December 31, 2021, to RMB 311.9 million in the year ended December 31, 2022, primarily due to an increase in student enrollment at Shijiazhuang Institute of Technology[168] - The increase in revenue included approximately RMB 38.1 million from the rise in student numbers and RMB 21.5 million from new high school business, offset by a decrease of approximately RMB 54.6 million due to restructuring and closure of certain K12 operations[168] - The company's net profit decreased from approximately RMB 28.7 million in the year ended December 31, 2021, to approximately RMB 26.7 million in the year ended December 31, 2022[89] - Other income and gains decreased by approximately 41.1% from RMB 598 million in the year ended December 31, 2021, to approximately RMB 352 million for the year ended December 31, 2022, primarily due to a decrease in fair value changes of external investments and foreign exchange gains[137] Teacher and Staff Statistics - The number of full-time vocational education teachers increased to 772, representing a 31.7% growth from 586 in the previous year[2] - The total number of teachers, including part-time, reached 1,366, reflecting a 25.1% increase from 1,092 in the previous year[2] - The proportion of teachers with a bachelor's degree or above reached 85.0%, and 76.3% of teachers had more than two years of service[2] - The total number of teachers increased by 31.7% to 772, reflecting the acquisition of Shijiazhuang Yuying Experimental Middle School[67] - The company employed approximately 1,202 staff members as of December 31, 2022, down from 1,330 the previous year, with regular reviews of compensation policies based on industry standards[124] Strategic Initiatives and Partnerships - The group is actively responding to national policies promoting vocational education, focusing on integrating education with industry and supply chains[19] - The company has formed strategic partnerships with key enterprises, including Geely Automobile Group and Huawei Technologies, to enhance practical training and employment opportunities for students[86] - The company has established 12 industry colleges, enhancing its integration of education and industry, and has been recognized for its leadership in this area[25] - The company is exploring innovative financing mechanisms to attract social capital for vocational education, including loans backed by future operating income and intellectual property[153] - The company is focused on developing new educational programs and courses that align with industry needs, supported by government initiatives[154] Operational Efficiency and Management - The EBITDA for 2022 was RMB 119.1 million, compared to RMB 102.0 million in 2021, indicating a growth in operational efficiency[36] - The company has developed a digital management platform to enhance operational efficiency, integrating various business units for real-time data updates and visual management[119] - The company is committed to expanding its market presence and enhancing its operational capabilities through strategic appointments and management changes[175][182] - The management emphasizes the importance of adapting to market demands and enhancing educational offerings to meet the evolving needs of students and employers[161] Future Development Plans - The company plans to complete the new campus of Shijiazhuang Institute of Technology by September 2023, which is expected to enhance enrollment and revenue growth[75] - The new campus is expected to accommodate approximately 30,000 students, focusing on the development of applied technology and multi-disciplinary coordination[84] - Future development will be anchored on new vocational education, with Shijiazhuang Institute of Technology as the foundation and new campuses marking the next phase[161] - The company aims to become a comprehensive vocational talent service provider, focusing on integrating quality educational resources and expanding into diversified educational services[161] Compliance and Governance - The company continues to focus on compliance and investor relations, ensuring effective governance and communication with stakeholders[182] - The company has not reported any new appointments or dismissals of directors and senior management outside of the disclosed changes during the reporting period[188] - The company disclosed no significant contracts, transactions, or arrangements involving directors or related entities that had a material interest in the business as of December 31, 2022[199]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因依賴該等內容而引致的任何損 失承擔任何責任。 China 21st Century Education Group Limited 中國21世紀教育集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1598） 截至2022年12月31日止年度之年度業績公告 年度業績摘要： 截至12月31日止年度 2022年 2021年 變動 變動 （人民幣千元）（人民幣千元）（人民幣千元） 百分比 收入 311,908 308,767 3,141 1.0% 毛利 146,384 126,825 19,559 15.4% EBITDA 119,094 101,984 17,110 16.8% 年內利潤 26,718 28,740 (2,022) (7.0%) 每股盈利（人民幣分） 基本 — 年內利潤 2.39 2.56 (0.17) (6.7%) ...

Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 144.82 million, a decrease of 8.3% compared to RMB 157.99 million for the same period in 2021[11]. - Gross profit for the same period was RMB 71.85 million, down 11.3% from RMB 80.96 million in 2021, resulting in a gross margin of 49.6%[11]. - The pre-tax profit for the first half of 2022 was RMB 27.12 million, a significant decline of 38.4% from RMB 43.99 million in the same period of 2021[11]. - EBITDA for the six months ended June 30, 2022, was RMB 66.65 million, down 8.3% from RMB 72.69 million in 2021[11]. - Net profit for the period was RMB 27,103 thousand, down 38.7% from RMB 44,156 thousand in the same period last year[174]. - Basic and diluted earnings per share for the period were RMB 2.37, compared to RMB 3.90 for the same period in 2021[174]. - Period profit decreased by approximately 38.6% from RMB 44.2 million to RMB 27.1 million due to the aforementioned factors[75]. Student Enrollment and Retention - The number of total students enrolled as of June 30, 2022, was 30,464, a decrease of 2.7% from 31,316 in 2021[12]. - Full-time students increased by 9.7% to 18,704 from 17,051 in the previous year, while continuing education students decreased by 17.6% to 11,760 from 14,265[12]. - The student retention rate improved to 93.3% from 90.5% in the previous year, indicating better student engagement[12]. - As of June 30, 2022, the total number of students enrolled in the company's schools was 30,464, comprising 18,704 full-time students and 11,760 part-time students, reflecting a decrease of 2.7% from 31,316 students in the previous year[36]. - The full-time student enrollment in vocational education at Shijiazhuang Institute of Technology increased by 10.3% to 16,870, with the number of full-time college students rising by 8.8% to 13,753[36]. - The employment rate for graduates as of June 30, 2022, was approximately 96.6%, an increase of 1.3% from 95.4% in the previous year[50]. Educational Infrastructure and Development - The company operates 13 physical schools, including one private college and various training institutions, enhancing its educational service offerings[6]. - The new campus of Shijiazhuang Institute of Technology is expected to accommodate approximately 30,000 students, with the first batch of 8,000 students anticipated to enroll by September 2023[21][22]. - The company has acquired a total of 279,577.48 square meters of educational land and 46,269.12 square meters of commercial land for the new campus[21]. - The company aims to expand its vocational education services by establishing a new campus for Shijiazhuang Institute of Technology and enhancing the quality of education[62]. - The company is committed to providing targeted practical courses through industry colleges and skill training, improving student employability and institutional brand[27]. Strategic Partnerships and Collaborations - The company has formed strategic partnerships with over 700 domestic and international enterprises, including 32 Fortune 500 companies, enhancing practical training resources[27]. - The collaboration with local governments and enterprises aims to create a talent service business that addresses employment and industry talent shortages[25][26]. - The partnership with the government of Gaoyi County includes acquiring 200 acres of commercial land for building an industrial park, facilitating student internships and training[29]. - The company is actively involved in the "Double High" construction plan for vocational education quality improvement in Hebei Province, approved in the first half of 2021[30]. Financial Position and Assets - Current assets increased slightly from RMB 699.4 million to RMB 699.8 million, with cash and cash equivalents rising from RMB 334.3 million to RMB 427.4 million[76]. - The current ratio improved from 126.4% to 168.7%, primarily due to a decrease in current liabilities[77]. - Total borrowings increased from RMB 446.5 million to RMB 642.1 million, reflecting the company's liquidity management strategy[79]. - The debt-to-asset ratio increased by approximately 3.7 percentage points to 53.8% due to a significant rise in interest-bearing loans[81]. - As of June 30, 2022, total non-current assets amounted to RMB 863,903,000, an increase of 28.06% from RMB 674,657,000 as of December 31, 2021[176]. - The company's net assets increased to RMB 721,922,000, up from RMB 685,787,000, representing a growth of 5.26%[177]. Corporate Governance and Shareholder Information - The board of directors consists of 8 members, including 5 executive directors and 3 independent non-executive directors[92]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests[96]. - The company has adopted the corporate governance code as per the listing rules and has complied with all relevant provisions[96]. - As of June 30, 2022, the total number of shares issued by the company was 1,161,204,000[119]. - Major shareholder Ms. Cao Yang has a spouse interest in 758,712,000 shares, accounting for 65.34% of the equity[120]. Stock Options and Incentive Plans - The company granted stock options totaling 2,220,000 shares to Mr. Li Yurun, with 666,000 shares vesting on December 29, 2021[114]. - The share option plan was approved on May 4, 2018, to incentivize eligible individuals to enhance their contributions to the group[126]. - The maximum number of options that can be granted to any individual within a 12-month period cannot exceed 1% of the company's issued share capital[131]. - The share incentive plan allows for a maximum of 10% of the total issued shares as of the adoption date to be used for purchasing shares[159]. - A total of 16,902,900 shares are pending exercise as of June 30, 2022, with 30% vesting after 12 months, 30% after 24 months, and 40% after 36 months from the grant date[162].

Educational Operations - As of December 31, 2021, the group operated 14 schools, including 1 private vocational college and 8 kindergartens, with a total of 17,076 full-time students in the vocational education sector, representing a 3.2% increase from 16,553 students in 2020[10] - The total number of students decreased to 29,314 in 2021, a decline of 4.5% from 30,689 in 2020[20] - The number of full-time students in vocational education at Shijiazhuang Institute of Technology was 17,076, an increase of 3.2% from the previous year[36] - The retention rate for students dropped to 88.8% in 2021, down from 97.5% in 2020[20] - The retention rate for students in the quality education segment dropped to 41.4%, down from 57.4% the previous year, reflecting a decrease of 27.9%[38] - The company has established four industry colleges, covering disciplines such as computer network technology and modern mobile communication technology[45] - The company has formed stable partnerships with 14 enterprises for 19 specialized programs, accounting for 25.7% of total programs, and has set up 22 order classes involving over 600 students[47] - The company has registered over 1,000 enterprises on its integrated platform for employment, entrepreneurship, and management services, providing more than 20,000 job positions[53] - The employment rate for graduates in the 2020-2021 academic year was approximately 96.6%, an increase of 0.5% from 96.1% in the previous year[44] Financial Performance - Total revenue for 2021 was RMB 308,767,000, an increase of 21.6% from RMB 253,802,000 in 2020[19] - Gross profit for 2021 was RMB 126,825,000, with a gross margin of 41.1%, down from 48.2% in 2020[19] - Net profit decreased from approximately RMB 78.8 million to RMB 28.7 million for the year ended December 31, 2021, due to the aforementioned factors[80] - Revenue increased by approximately 21.7% from RMB 253.8 million for the year ended December 31, 2020, to RMB 308.8 million for the year ended December 31, 2021, primarily due to an increase in student enrollment and a recovery in quality education revenue[70] - Cost of sales rose by approximately 38.3% from RMB 131.5 million to RMB 181.9 million, mainly due to increased employee costs and normalizing educational activities post-COVID-19[71] - Gross profit increased by approximately 3.7% from RMB 122.3 million to RMB 126.8 million, while gross margin decreased from approximately 48.2% to 41.1% due to rising sales costs[72] - Other income and gains rose by approximately 41.8% from RMB 42.2 million to RMB 59.8 million, mainly due to increases in fair value changes of investments[73] - Administrative expenses increased by approximately 26.8% from RMB 56.1 million to RMB 71.2 million, primarily due to increased share-based payment costs[76] - Financing costs surged by approximately 118.0% from RMB 12.2 million to RMB 26.6 million, attributed to increased loan amounts from financial institutions[78] Strategic Initiatives - The company plans to focus on vocational education and expand through partnerships and acquisitions[15] - The company aims to enhance the quality of vocational education by optimizing professional structures and introducing leading educators[15] - The company has closed certain training schools and recognized impairment on related goodwill in response to national policies, focusing on a new vocational education development strategy[9] - The company is adjusting its after-school internship business in response to regulatory requirements and is innovating talent cultivation mechanisms[66] - The company is collaborating with Lushang Group to provide management consulting services to enhance competitiveness in county-level high schools[66] - The company aims to establish a modern vocational education system by 2025, focusing on high-quality development and skill-based social construction[65] - The company plans to deepen the integration of industry and education through internal development, mergers, and government-enterprise cooperation[66] Shareholder and Governance - The board proposed a dividend of HKD 0.63 per share for the fiscal year 2021, reflecting a commitment to return value to shareholders[14] - The company will hold its annual general meeting on June 28, 2022, to discuss the proposed dividend and other matters[145] - The board consists of 8 members, including 5 executive directors and 3 independent non-executive directors[159] - The company has established a remuneration committee to review the remuneration policies based on operational performance and market practices[175] - The company confirmed that all independent non-executive directors were independent as of December 31, 2021[172] Compliance and Risk Management - The company is committed to maintaining compliance with regulatory standards, enhancing corporate governance practices[120] - The company has maintained compliance with relevant laws and regulations, establishing mechanisms for compliance operations during the fiscal year[131] - The company faces various risks, including operational, industry, and regulatory changes, which could impact its business outlook and student enrollment[133] Employee and Operational Metrics - As of December 31, 2021, the group had approximately 1,330 employees, a decrease from 1,532 employees as of December 31, 2020, reflecting a reduction of about 13.2%[94] - The group regularly reviews its employee compensation policies and benefits based on industry practices and the group's performance[94] - The group participates in various employee social security plans managed by local governments, including housing, pension, medical, and unemployment insurance[94] Technological Advancements - The company introduced an AI college entrance examination platform to support students in the Beijing-Tianjin-Hebei region, enhancing its educational offerings[13] - The company has implemented a "Smart Campus" system to enhance management levels and optimize student services through digital platforms[52] - Investment in new technology development has increased by 40%, focusing on enhancing user experience and operational efficiency[117] Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by the end of 2024[115] - A strategic acquisition is planned, which is anticipated to enhance the company's service offerings and increase market competitiveness[116] Awards and Recognition - The company received 379 awards at the provincial and national levels, reflecting its strong educational performance[43] - The company was awarded "Best Education Company" at the Capital Market Forum and the 5th Golden Hong Kong Stock Awards, recognizing its robust growth and development potential[54] - The company was awarded the "Best Information Disclosure" in the Greater China region for 2021 due to its high-quality information disclosure practices[56]