Enrollment and Student Growth - Total number of students increased to 10,325, up by 3,204 or 45.0% compared to the previous year[13] - The number of junior high school students grew by 1,841, marking a 34.9% increase, while high school students increased by 229, a growth of 70.0%[31] - Enrollment increased by approximately 45% from 7,121 students as of February 28, 2018, to 10,325 students as of February 28, 2019, driven by the opening of new schools[88] - The company opened three new schools in Sichuan Province in September 2018, providing a total of over 11,200 new student places[175] - The enrollment capacity for new schools is projected to reach a total of 12,900 students across various locations, including 3,200 at Lezhi School and 4,500 at Zhongjiang School, with openings scheduled between September 2019 and September 2020[64]. Financial Performance - Revenue for the period was RMB 168.3 million, representing an increase of RMB 53.1 million or 46.1% from the previous year[14] - Gross profit amounted to RMB 42.9 million, up by RMB 12.7 million or 42.0% compared to the previous year[14] - Adjusted net profit decreased to RMB 10.0 million, down by RMB 3.9 million or 28.1% year-on-year[14] - Basic earnings per share were RMB 1.15, a decrease of RMB 0.45 or 28.1% from the previous year[14] - The net profit for the period was RMB 10,027 thousand, representing a 4.4% increase compared to RMB 9,601 thousand in the prior year[162] Cash Flow and Liquidity - Cash and cash equivalents were RMB 242.2 million, a decrease of RMB 364.9 million or 60.1% compared to the previous year[19] - Net cash used in operating activities was RMB (63.7) million, a decrease of RMB 22.5 million or 26.1% from the previous year[21] - The company reported a net current liability of approximately RMB 225,117,000 as of February 28, 2019, raising concerns about future liquidity[174] - The cash flow forecast and available financing channels were considered sufficient for the company to meet its financial obligations over the next twelve months[174] Operational Expansion - The number of schools operated increased to 16, a rise of 6 schools or 60% year-on-year[28] - The company has signed cooperation agreements with local governments to establish new schools, indicating ongoing market expansion efforts[24] - The company is pursuing market penetration and diversification strategies to expand its school network in Sichuan Province, including acquiring land use rights for new schools[57] - The company plans to continue expanding its educational services in China, focusing on private basic education across various stages[174] Teacher and Staff Development - Total number of teachers reached 903, an increase of 323 or 55.7% year-on-year[13] - The teacher retention rate for kindergartens was 94.4%, significantly higher than the previous year's 86.8%[42] - Employee costs increased by approximately RMB 32.7 million (or 65.7%) from RMB 49.8 million to RMB 82.5 million for the six months ended February 28, 2019, due to a significant rise in the number of teachers and staff[90] - The company plans to retain a strong team of experienced and qualified teaching staff to maintain and enhance the quality of education services[71] Regulatory and Compliance - The company is closely monitoring regulatory developments, including the new Foreign Investment Law effective January 1, 2020, which may impact future operations[81] - The company has complied with the standards of the corporate governance code since its listing date[155] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[156] Market Trends and Competition - The private education market in Sichuan Province and Chengdu is expected to benefit from increasing demand, with a focus on comprehensive education development and improved teaching quality[53] - The company anticipates that the private education market will see increased competition and differentiation, particularly in offering foreign language, sports, and arts programs[54] - The private education sector in Sichuan is undergoing consolidation, with increasing mergers and acquisitions expected to enhance market competitiveness[54] Capital Expenditures and Investments - The company plans to allocate approximately USD 3.2 million to establish a school in the United States, with an additional RMB 12.9 million (approximately USD 1.9 million) from net proceeds of the IPO for capital expenditures[87] - Capital expenditures for the six months ended February 28, 2019, included payments of RMB 259.8 million for properties, plants, and equipment, and RMB 64.2 million for leased land[116] Revenue Recognition and Accounting Standards - The application of HKFRS 15 resulted in a reclassification of deferred income amounting to RMB 280,481,000 to contract liabilities[189] - The revenue recognition for educational services is based on the progress of fulfilling performance obligations[186] - The initial application of HKFRS 9 did not result in changes to the classification and measurement of financial assets as of September 1, 2018[198]