Teacher Structure and Teaching Quality - The company added over 500 new teachers and nearly 100 with associate senior titles or above, optimizing the teacher structure and enhancing teaching quality[2] Student Enrollment and Employment - The employment rate of graduates ranks among the top of similar institutions, attracting more students, with the 2024-2025 academic year enrollment reaching a record high[4] - Overseas student enrollment increased by 15% year-on-year, with Malaysia's INTI International University improving its QS ranking by 40 places to 516 globally[4] - Total student enrollment as of October 31, 2024, was 291,264, compared to 290,927 on October 31, 2023[23] International Cooperation and Education - The company established cooperation with over 110 universities in more than 40 countries, promoting international education resource sharing[4] Acquisitions and Name Change - The company acquired 100% equity of Jiangxi Changzhen Industrial Co., Ltd. and Nanchang University Gongqing College Logistics Service Co., Ltd. through a transfer agreement[13] - The company changed its English name to "XJ International Holdings Co., Ltd." and its Chinese name to "希教國際控股有限公司" effective February 8, 2024[14] Convertible Bonds and Financial Instruments - The company issued zero-coupon convertible bonds due in 2026, with details disclosed under insider information regulations[14] - A claimed default event related to convertible bonds occurred on March 2, 2024, with relevant disclosures made under regulatory requirements[15] - The company's convertible bonds were suspended from trading on the Hong Kong Stock Exchange starting from 1:00 PM on March 5, 2024, until further notice[17] - The company received a statutory demand for debt repayment from legal representatives acting on behalf of the convertible bond creditors on March 5, 2024[17] - The company's convertible bonds, measured at fair value through profit or loss, amounted to RMB 1,976.66 million, with a remaining unpaid amount of USD 331.20 million (approximately RMB 2,355.64 million) due on March 2, 2026[70] - The company holds convertible bonds with a fair value of RMB 1,976,664 thousand, maturing on March 2, 2026, with a redemption amount of 105.11% of the principal[95] Legal and Restructuring Matters - A winding-up petition was submitted to the High Court by the Bank of New York Mellon, London Branch on March 28, 2024[17] - The company successfully obtained a recognition order from the High Court on May 21, 2024[17] - Deloitte Consulting (Hong Kong) Limited was appointed as the restructuring advisor on June 12, 2024[17] - The company provided an update on the progress of its offshore debt restructuring on July 17, 2024[20] - The High Court ordered the withdrawal of the winding-up petition on August 28, 2024[21] - The company is actively seeking to restructure its convertible bonds and explore alternative financing options to improve liquidity[95] - The company's ability to continue as a going concern depends on successful debt restructuring, meeting guarantor requirements, and securing new financing[97] Financial Performance and Metrics - Revenue for the fiscal year ending August 31, 2024, was RMB 3,732.07 million, an increase from RMB 3,581.63 million in the previous year[31] - Adjusted net profit for the fiscal year ending August 31, 2024, was RMB 693.18 million, compared to RMB 874.81 million in the previous year[34] - Revenue for the fiscal year ending August 31, 2024, was RMB 3,732.07 million, an increase of RMB 150.44 million compared to RMB 3,581.63 million in 2023, driven by an increase in student enrollment and higher tuition fees[39] - Adjusted gross profit for 2024 was RMB 1,621.68 million, a decrease of RMB 139.09 million from RMB 1,760.77 million in 2023, with the adjusted gross margin dropping to 43.45% from 49.16%[42] - Adjusted net profit for 2024 was RMB 693.18 million, a decrease of RMB 181.63 million from RMB 874.81 million in 2023, with the adjusted net margin falling to 18.57% from 24.42%[48] - Sales costs increased by RMB 257.05 million to RMB 2,158.50 million in 2024, primarily due to higher faculty salaries, campus renovation expenses, and increased depreciation from training facilities[40] - Sales expenses decreased by RMB 45.84 million to RMB 241.85 million in 2024, mainly due to reduced recruitment-related wages and advertising costs[43] - Administrative expenses increased by RMB 52.99 million to RMB 600.55 million in 2024, driven by higher management salaries and equity-settled share-based compensation[44] - Non-cash credit and asset impairment losses decreased by RMB 62.66 million to RMB 118.04 million in 2024, reflecting a more cautious approach to assessing recoverability of loans and real estate values[45] - Financing costs decreased by RMB 59.71 million to RMB 289.41 million in 2024, primarily due to the repayment of interest-bearing bank loans and adjustments in financing structure[47] - Cash and bank balances totaled RMB 3,100.75 million as of August 31, 2024, with cash and cash equivalents at RMB 2,549.30 million and restricted deposits at RMB 551.45 million[49] - The company's current ratio improved to 0.54 as of August 31, 2024, compared to 0.44 in 2023, reflecting better liquidity management[53] - Net debt-to-equity ratio decreased from 6.5% as of August 31, 2023, to 1.5% as of August 31, 2024, due to a reduction in interest-bearing bank and other borrowings and an increase in total equity[55] - Debt-to-equity ratio was approximately 35.4% as of August 31, 2024, compared to 41.2% as of August 31, 2023[56] - The company's cash and cash equivalents amounted to RMB 2,549.30 million, with restricted deposits of RMB 551.45 million as of August 31, 2024[55] - The company's interest-bearing bank and other borrowings totaled RMB 3,237.36 million as of August 31, 2024, with RMB 2,054.78 million due within the next 12 months[70] - The company's net current liabilities were approximately RMB 3,411.83 million as of August 31, 2024[70] - The company did not recommend the distribution of a final dividend for the year ended August 31, 2024, due to debt repayment and other financial arrangements[64] - The company's external auditor expressed a disclaimer of opinion on the consolidated financial statements due to uncertainties related to going concern[68] - The company's board has been taking measures to improve liquidity and financial conditions, including potential restructuring of convertible bonds and securing new financing sources[71] - Revenue increased to RMB 3,732,066 thousand in 2024, up from RMB 3,581,632 thousand in 2023, representing a growth of 4.2%[74] - Gross profit decreased to RMB 1,573,565 thousand in 2024 from RMB 1,680,182 thousand in 2023, a decline of 6.3%[74] - Net profit for the year surged to RMB 613,087 thousand in 2024, compared to RMB 210,769 thousand in 2023, an increase of 191.0%[74] - Total comprehensive income for the year rose to RMB 674,307 thousand in 2024 from RMB 239,709 thousand in 2023, a significant increase of 181.3%[74] - Earnings per share (basic) increased to RMB 7.41 cents in 2024 from RMB 2.60 cents in 2023, a growth of 185.0%[76] - Total non-current assets grew to RMB 18,262,345 thousand in 2024 from RMB 18,159,868 thousand in 2023, an increase of 0.6%[78] - Total current liabilities decreased to RMB 7,430,996 thousand in 2024 from RMB 9,410,981 thousand in 2023, a reduction of 21.0%[78] - Net current liabilities improved to RMB (3,411,830) thousand in 2024 from RMB (5,269,444) thousand in 2023, a decrease of 35.2%[78] - Total equity increased to RMB 9,154,490 thousand in 2024 from RMB 8,439,734 thousand in 2023, a growth of 8.5%[81] - Non-controlling interests rose to RMB 3,238 thousand in 2024 from RMB 1,081 thousand in 2023, an increase of 199.5%[76] - Total equity increased to RMB 9,154,490,000 in 2024, up from RMB 8,439,734,000 in 2023, reflecting growth in retained earnings and other reserves[84] - Net profit for the year reached RMB 609,562,000 in 2024, compared to RMB 210,099,000 in 2023, showing significant year-over-year growth[84] - Cash flow from operating activities increased to RMB 1,489,580,000 in 2024, up from RMB 1,786,893,000 in 2023, driven by higher pre-tax profits and adjustments[88] - Depreciation of property, plant, and equipment amounted to RMB 432,026,000 in 2024, slightly higher than RMB 404,041,000 in 2023[86] - Contract liabilities increased by RMB 133,912,000 in 2024, compared to a significant increase of RMB 473,301,000 in 2023[88] - The company's share premium reserve grew to RMB 5,131,685,000 in 2024, up from RMB 5,017,040,000 in 2023[84] - Exchange rate fluctuations resulted in a gain of RMB 61,507,000 in 2024, compared to a gain of RMB 28,529,000 in 2023[84] - The company issued share options worth RMB 40,999,000 in 2024, down from RMB 61,775,000 in 2023[86] - Financial asset impairment losses decreased to RMB 73,194,000 in 2024, significantly lower than RMB 180,700,000 in 2023[86] - The company's total comprehensive income for the year was RMB 671,069,000 in 2024, up from RMB 238,628,000 in 2023[84] - Investment activities resulted in a net cash outflow of RMB 972,453 thousand in 2024, compared to RMB 181,058 thousand in 2023[90] - Financing activities resulted in a net cash outflow of RMB 864,121 thousand in 2024, compared to RMB 1,507,007 thousand in 2023[92] - The company's cash and cash equivalents decreased by RMB 346,994 thousand in 2024, ending the year with RMB 2,549,299 thousand[92] - The company has net current liabilities of approximately RMB 3,411,830 thousand as of August 31, 2024[95] - The company's total interest-bearing bank and other borrowings amount to RMB 3,237,361 thousand, with RMB 2,054,779 thousand due within the next 12 months[95] - Total revenue for the fiscal year ending August 31, 2024, reached RMB 3,732,066 thousand, a 4.2% increase from RMB 3,581,632 thousand in 2023[101][103] - Local education segment revenue grew to RMB 3,339,764 thousand in 2024, up 3.4% from RMB 3,230,475 thousand in 2023[101][103] - International education segment revenue increased to RMB 392,302 thousand in 2024, up 11.7% from RMB 351,157 thousand in 2023[101][103] - Pre-tax profit for 2024 was RMB 757,061 thousand, a significant increase from RMB 305,283 thousand in 2023[101][103] - Total assets as of August 31, 2024, amounted to RMB 22,281,511 thousand, slightly down from RMB 22,301,405 thousand in 2023[101][103] - Total liabilities decreased to RMB 13,127,021 thousand in 2024 from RMB 13,861,671 thousand in 2023[101][103] - Interest income for 2024 was RMB 32,939 thousand, a decrease from RMB 66,239 thousand in 2023[101][103] - Foreign exchange gain for 2024 was RMB 16,330 thousand, compared to a loss of RMB 55,014 thousand in 2023[101][103] - Fair value gain on convertible bonds for 2024 was RMB 186,516 thousand, a significant improvement from a loss of RMB 228,654 thousand in 2023[101][103] - Other income and gains for 2024 totaled RMB 274,836 thousand, a decrease from RMB 297,913 thousand in 2023[108] - Pretax profit for 2024 reached RMB 2,158,501 thousand, compared to RMB 1,901,450 thousand in 2023, showing a 13.5% increase[110] - Employee benefits expenses, including salaries and wages, increased to RMB 1,573,707 thousand in 2024 from RMB 1,397,887 thousand in 2023, a 12.6% rise[110] - Total tax expense for 2024 was RMB 143,974 thousand, up from RMB 94,514 thousand in 2023, reflecting a 52.3% increase[112] - Basic earnings per share for 2024 were calculated using a profit attributable to ordinary shareholders of RMB 609,562 thousand, compared to RMB 210,099 thousand in 2023, a 190% increase[114] - Trade receivables decreased to RMB 83,683 thousand in 2024 from RMB 104,591 thousand in 2023, a 20% decline[117] - Prepayments, deposits, and other receivables increased to RMB 1,244,340 thousand in 2024 from RMB 987,449 thousand in 2023, a 26% rise[119] - Cash and cash equivalents decreased to RMB 2,549,299 thousand in 2024 from RMB 2,827,722 thousand in 2023, a 9.8% decline[124] - Trade payables increased to RMB 57,286 thousand in 2024 from RMB 48,167 thousand in 2023, a 18.9% rise[124] - Current portion of other payables and accrued expenses decreased to RMB 2,662,982 thousand in 2024 from RMB 2,826,225 thousand in 2023[126] - Non-current portion of other payables and accrued expenses decreased to RMB 809,818 thousand in 2024 from RMB 845,956 thousand in 2023[126] - Total other payables and accrued expenses decreased to RMB 3,472,800 thousand in 2024 from RMB 3,672,181 thousand in 2023[126] - Payables for property, plant, and equipment purchases decreased to RMB 664,118 thousand in 2024 from RMB 758,573 thousand in 2023[126] - Payables for equity acquisitions decreased to RMB 471,332 thousand in 2024 from RMB 629,591 thousand in 2023[126] - Miscellaneous advances from students increased to RMB 228,221 thousand in 2024 from RMB 219,211 thousand in 2023[126] - Government scholarships increased to RMB 236,173 thousand in 2024 from RMB 229,562 thousand in 2023[126] - Loans from third parties increased significantly to RMB 124,387 thousand in 2024 from RMB 30,003 thousand in 2023[126] - Payables for land lease payments increased to RMB 39,920 thousand in 2024 from RMB 13,340 thousand in 2023[126] - Payables for the transition of independent colleges to private undergraduate colleges remained stable at RMB 80,682 thousand in both 2024 and 2023[126] Asset and Liability Management - The company signed a project cooperation agreement for a 350-acre land use right in Guilin Economic and Technological Development Zone[10] - The company's executive director and CEO increased shareholdings through open market transactions between January 16 and February 29, 2024[11] - The company signed a sale agreement for Hebei institutions and related entities on November 29, 2024, pending shareholder approval, after which the financial performance of the target entities will no longer be included in the consolidated financial statements[59] - The company plans to sell equity interests in certain subsidiaries to generate additional cash inflows[95] - The company is implementing cost control measures and negotiating payment schedules with suppliers to manage cash flow[95] Shareholder and Equity Information - The company's share premium reserve grew to RMB 5,131,685,000 in 2024, up from RMB 5,017,040,000 in 2023[84] - The company issued share options worth RMB 40,999,000 in 2024, down from RMB 61,775,000 in 2023[86]

Investment and Expansion - The company invested over 100 million in hardware and software for practical training construction, with more than 50 new training rooms established and over 20 new programs reported during the period [7]. - The company expanded its employment services, establishing nearly 1,000 new school-enterprise cooperation units and hosting 27 large job fairs and 387 specialized recruitment events, providing over 80,000 internship and job positions for graduates [10]. - The company has established cooperation with 104 overseas institutions across 39 countries, enhancing international education collaboration and resource sharing [11]. - The company aims to advance its international development strategy, particularly through the establishment of overseas institutions like INTI International University in Malaysia [23]. - The company has established over 40 new training rooms and more than 400 multimedia classrooms to support various professional programs [16]. Student Enrollment and Academic Performance - The number of new students enrolled in the 2023-2024 academic year exceeded 100,000, with total enrollment surpassing 290,000, marking a compound annual growth rate of 26.4% for new enrollments and 27.6% for total enrollment over the past five years [9]. - As of February 29, 2024, total enrolled students reached 290,927, an increase from 280,453 as of February 28, 2023, representing a growth of approximately 5.2% [20]. - The company introduced over 930 new teachers, including more than 140 skilled professionals, and conducted 1,845 training sessions for teachers, achieving 241 awards in competitions, including 40 national and 80 provincial awards [8]. - The company has 23 provincial-level first-class undergraduate program construction points and 44 pilot programs for the "1+X" certificate system, with 70 key (special) construction programs initiated [14]. Financial Performance - For the six months ended February 29, 2024, the company reported revenue of RMB 2,042.17 million, an increase of RMB 107.34 million or 5.5% compared to RMB 1,934.83 million for the same period last year [30]. - The cost of sales for the same period was RMB 1,143.21 million, up RMB 180.96 million or 18.8% from RMB 962.25 million year-on-year, primarily due to regulatory requirements and increased investments in teaching quality [31]. - Gross profit decreased to RMB 898.96 million, down RMB 73.62 million or 7.6% from RMB 972.58 million in the previous year [31]. - The company’s adjusted net profit for the period was RMB 429.16 million, down RMB 173.06 million or 28.7% from RMB 602.22 million last year [35]. - Net profit for the same period was RMB 239.71 million, a decrease of RMB 188.74 million or 44.1% compared to RMB 428.45 million in the previous year [35]. Cash Flow and Financial Position - The company generated a net cash outflow from operating activities of RMB 52,091,000 for the six months ended February 29, 2024, compared to a net cash inflow of RMB 517,963,000 for the same period in 2023, indicating a significant decline in cash flow [70]. - The company reported a net cash flow from financing activities of RMB 136,207,000, a significant improvement from a net cash outflow of RMB 316,539,000 in the previous year [71]. - The company had cash and bank balances totaling RMB 2,672.24 million as of February 29, 2024, down from RMB 2,927.73 million as of August 31, 2023 [37]. - The total outstanding bank loans and borrowings amounted to RMB 3,810.25 million as of February 29, 2024, compared to RMB 3,473.01 million as of August 31, 2023 [38]. - The company’s cash flow forecast covers a period of at least twelve months from February 29, 2024, indicating a belief in sufficient operational funding [75]. Debt Management and Financial Risks - The company is committed to ensuring stable operations and managing debt risks through market-based strategies and asset optimization [24]. - The company plans to explore restructuring options for its convertible bonds totaling USD 315,100,000 to ensure sustainable operations [75]. - The company aims to negotiate with existing lenders to avoid immediate repayment demands on loans that have triggered certain events [75]. - The company has recognized an impairment provision of RMB 154,406,000 against loans to Guixi Real Estate, with the outstanding principal at RMB 321,919,000 as of February 29, 2024 [117]. - The company has also recognized an impairment provision of RMB 21,333,000 against loans to Chongqing Zhongsheng Real Estate, with the outstanding principal secured by 100% equity interest [118]. Corporate Governance and Compliance - The company has adhered to the corporate governance code and standards throughout the reporting period [46]. - The audit committee reviewed the accounting principles and practices adopted by the group for the six months ended February 29, 2024 [50]. - The company has experienced changes in its board of directors, including the appointment of a new executive director on April 26, 2024 [48]. - The board does not recommend the payment of an interim dividend for the reporting period [46]. - The company has not established any financial arrangements for hedging purposes due to the absence of significant foreign exchange risks [44]. Stock Options and Shareholder Information - The company granted a total of 190,000,000 stock options to 18 eligible participants on September 26, 2023, under its stock option plan adopted on March 18, 2022 [18]. - The unexercised stock options under the 2018 pre-IPO stock option plan amount to 230,287,254 shares, representing approximately 2.8% of the company's issued share capital [59]. - The company has issued 8,224,974,706 shares with a par value of USD 0.00001 each, unchanged from August 31, 2023, maintaining a total capital of USD 82,250 [134]. - Wang Huiwu holds approximately 47.27% of the company's equity, with 3,888,325,240 shares [52]. - Hope Education Investment Limited holds a beneficial interest of 45.20%, equating to 3,717,553,240 shares [57].

Investment and Infrastructure Development - The company invested over 100 million in hardware and software for practical training construction, with more than 50 new training rooms established and over 20 new programs reported during the period[1] - The company supported the establishment of over 40 new training rooms for various majors, including robotics, e-commerce, and big data, and upgraded existing infrastructure and backbone networks[9] - 23 provincial-level first-class undergraduate programs and 44 "1+X" certificate pilot programs were established, with 348 professional construction plans developed during the reporting period[7] Teacher Recruitment and Training - A total of over 930 new teachers were recruited, including more than 140 with professional skills, and 1,845 training sessions were conducted, resulting in 241 awards for teachers, including 40 national-level and 80 provincial-level awards[2] - Over 30,000 students participated in entrepreneurship training, and more than 50,000 individuals received various social training during the reporting period[10] Student Enrollment and Growth - The number of newly enrolled students exceeded 100,000 for the first time, with total enrollment surpassing 290,000, achieving a compound annual growth rate of 26.4% for new enrollments and 27.6% for total enrollment over the past five years[3] - As of February 29, 2024, the total number of enrolled students reached 290,927, an increase from 280,453 as of February 28, 2023, representing a growth of approximately 6.0%[14] Employment and Partnerships - Nearly 1,000 new school-enterprise cooperation units were established, with 27 large job fairs and 387 specialized recruitment events held, providing over 80,000 internship and employment positions for graduates[4] - The company has established cooperation with 104 overseas institutions across 39 countries, with five Sino-foreign cooperative education projects progressing smoothly, enhancing international talent cultivation[5] Financial Performance - For the six months ended February 29, 2024, total revenue was RMB 2,042.17 million, up from RMB 1,934.83 million for the same period in 2023, reflecting an increase of approximately 5.6%[20] - The net profit for the six months ended February 29, 2024, was RMB 239.71 million, a decline from RMB 428.45 million for the same period in 2023, representing a decrease of approximately 44.1%[20] - Adjusted gross profit for the six months ended February 29, 2024, was RMB 923.13 million, down from RMB 1,018.29 million in the prior year, indicating a decrease of about 9.3%[21] Debt and Financial Management - The company is committed to ensuring stable operations by managing debt risks and optimizing assets[18] - The total outstanding bank loans and borrowings amounted to RMB 3,810.25 million as of February 29, 2024, an increase from RMB 3,473.01 million as of August 31, 2023[34] - The current ratio as of February 29, 2024, was 0.38, a decrease from 0.44 as of August 31, 2023[35] Corporate Governance and Compliance - The company has changed its English name to "XJ International Holdings Co., Ltd." effective February 5, 2024, reflecting a rebranding effort[13] - The company operates under the legal framework of the Securities and Futures Ordinance in Hong Kong[75] - The board includes independent non-executive directors, enhancing corporate governance[75] Cash Flow and Liquidity - Cash generated from operating activities showed a significant decrease, resulting in a net cash outflow of RMB 52,091,000 compared to a cash inflow of RMB 517,963,000 in the previous year[51] - The net decrease in cash and cash equivalents was RMB (297,655) thousand, which is an improvement from RMB (315,327) thousand in the prior year[54] - The company’s cash flow from operating activities was negatively impacted by a decrease in contract liabilities, which fell by RMB 544,174,000[51] Strategic Plans and Future Outlook - The company plans to implement a quality-first development strategy to enhance educational quality and talent cultivation[16] - The company aims to steadily advance its international development strategy, focusing on enhancing overseas institutions, particularly in Malaysia[17] - The company plans to explore restructuring of bonds to ensure sustainable operations and has engaged financial and legal advisors for this purpose[57]

Talent Development and Education Quality - The company achieved a record of 236 national-level awards and 913 provincial-level awards in various professional competitions, showcasing the quality of talent cultivation [13]. - Student satisfaction has steadily improved, with a focus on optimizing services and promoting employment through school-enterprise cooperation [14]. - The company plans to implement a quality-first development strategy, enhancing teaching and training capabilities to improve talent cultivation quality [17]. - The company aims to innovate in industry-education integration and school-enterprise cooperation, including establishing vocational education groups and customized training programs with leading enterprises [18]. - The company will continue to focus on vocational skills training, aligning with national policies to support various groups in skill development [20]. - The company is committed to enhancing its institutional brand and quality of education, responding to national requirements for high-quality development [17]. - The company aims to enhance the quality of talent cultivation by reforming the curriculum system and strengthening faculty development [38]. - The company is committed to deepening industry-education integration and school-enterprise cooperation to improve talent training quality [37]. - The company has established 28 provincial-level first-class professional construction points and 64 provincial-level course construction points during the reporting period [39]. - The company has published 251 self-edited textbooks, with 6 selected as "14th Five-Year Plan National Vocational Education Textbooks" [39]. Employment and Internship Opportunities - The company reported a steady increase in graduate employment rates, reflecting the effectiveness of its employment platforms and channels [14]. - The company facilitated over 150,000 internship and employment positions for students during the reporting period [27]. - The number of online contacts with over 4,200 companies was made to enhance employment opportunities for graduates [27]. - Approximately 150,000 individuals were trained in various employment and re-employment training programs, including nearly 90,000 in entrepreneurship training for college students [43]. Financial Performance - Total revenue for the year ended August 31, 2023, reached RMB 3,581.63 million, a 17.7% increase from RMB 3,042.69 million in 2022 [23]. - Adjusted net profit for the same period was RMB 874.81 million, up 15.3% from RMB 758.58 million in 2022 [23]. - The adjusted gross profit margin for the year ended August 31, 2023, was 49.2%, slightly up from 49.0% in 2022 [60]. - The company's total sales cost for the year ended August 31, 2023, was RMB 1,901.45 million, an increase of RMB 253.90 million or 15.4% compared to RMB 1,647.55 million in 2022 [62]. - The net profit for the fiscal year was RMB 210.77 million, down 52.8% from RMB 445.90 million in 2022 [55]. Capital Expenditures and Investments - The company invested RMB 1,498 million in capital expenditures to enhance educational facilities, including the establishment of 172 training centers [26]. - Capital expenditures for the year ended August 31, 2023, amounted to RMB 1,474 million, primarily for school expansion, facility renovations, and equipment procurement [70]. International Development and Cooperation - The company is actively pursuing overseas development strategies, expanding international vocational education cooperation, and sharing quality resources among institutions [19]. - The company has established partnerships with 75 overseas institutions across 33 countries to promote international vocational education [33]. - The company is focusing on international cooperation in vocational education, aiming to build high-level international vocational schools [36]. Corporate Governance and Management - The company has adopted good corporate governance practices to ensure transparency and accountability to shareholders [84]. - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors [90]. - The company has a strong management team with extensive experience in finance and operations, including CEO Wang Huiwu and COO Jiang Lin [101]. - The company has been expanding its board with independent directors, including Liu Zhonghui and Xiang Chuan, both appointed on January 1, 2023 [100]. Shareholder Structure and Equity - As of August 31, 2023, the total number of issued shares is 8,224,974,706 [131]. - Wang Huiwu holds approximately 50.48% of the company's equity through Maysunshine Investment Limited [131]. - The beneficial interest of Maysunshine Investment Limited is 4,140,948,240 shares, representing 50.35% of the company [135]. - UBS Group AG holds a beneficial interest of 962,582,313 shares, accounting for 11.70% of the company [137]. - The company is controlled by Maysunshine Limited, which holds 50.35% of the equity [135]. Risk Management and Compliance - The company faces risks related to tuition and accommodation fees, competition in the private higher education sector, and potential challenges in opening new schools [117]. - The company has implemented measures to mitigate risks and uncertainties, as detailed in the corporate governance report [117]. - The group has complied with relevant laws and regulations, including the Company Ordinance and the Securities and Futures Ordinance, with no significant non-compliance issues reported for the year [111]. Future Outlook and Strategic Plans - The company plans to expand its market presence by opening 10 new educational institutions in the next fiscal year, targeting a 25% increase in overall capacity [93]. - The company has set a performance guidance for the next fiscal year, aiming for a revenue growth of 15% to 20% [95]. - The management team emphasized a focus on enhancing operational efficiency, targeting a reduction in operational costs by 10% [92].

Financial Performance - For the fiscal year ending August 31, 2023, the company reported revenue of RMB 3,581.63 million, a 17.7% increase from RMB 3,042.69 million in 2022[28]. - Adjusted gross profit for the same period was RMB 1,760.77 million, up 18.0% from RMB 1,492.23 million in 2022[28]. - Adjusted net profit for the fiscal year was RMB 874.81 million, reflecting a 15.3% increase from RMB 758.58 million in the previous year[28]. - The adjusted gross margin slightly increased to 49.2% in 2023 from 49.0% in 2022[28]. - The group's net profit decreased to RMB 210.77 million for the year ended August 31, 2023, down RMB 235.13 million or 52.7% from RMB 445.90 million in the previous year[36]. - The company's profit before tax for the year is RMB 305,283,000, down from RMB 589,447,000 in the previous year, reflecting a decrease of approximately 48.24%[57]. - The total comprehensive income for the year is RMB 430,091,000, compared to RMB 239,709,000 in the previous year, showing a significant increase of approximately 79.61%[56]. - The group reported a significant increase in the cost of services provided, which rose to RMB 1,901,450,000 in 2023 from RMB 1,647,554,000 in 2022, marking an increase of 15.4%[5]. - The total income tax expense for the year was RMB 94,514,000, down 34.2% from RMB 143,538,000 in 2022[72]. Enrollment and Education Quality - The number of newly enrolled students for the 2023-2024 academic year exceeded 100,000, with total enrollment surpassing 290,000, achieving a compound annual growth rate of 26.4% for new enrollments over the past five years[3]. - The compound annual growth rate for enrolled students over the past five years was 27.6%[3]. - Teacher compensation expenses amounted to RMB 1.051 billion, reflecting a year-on-year increase of 21.1%, with over 3,000 new teachers recruited[4]. - The company aims to enhance the quality of vocational education by focusing on the development of distinctive majors and optimizing the curriculum system, with 28 provincial-level first-class major construction points and 64 provincial-level course construction points approved during the reporting period[11]. - The company has trained nearly 150,000 individuals during the reporting period, including approximately 90,000 in entrepreneurship training for college students[15]. - The company is actively promoting school-enterprise cooperation with major companies, including BYD and Geely, to enhance practical training and employment opportunities[4]. International Cooperation and Expansion - The company has established partnerships with 75 overseas institutions across 33 countries, enhancing international vocational education development[5]. - The company is actively promoting international cooperation in vocational education, aiming to establish high-level international vocational education schools and enhance the quality of international skill talent cultivation[8]. - The company is actively pursuing overseas development strategies, expanding international vocational education collaborations[22]. Investments and Capital Expenditure - Capital expenditure for school expansion reached RMB 1.498 billion, focusing on campus renovation and the establishment of 172 training centers, adding over 20,000 square meters of practical training space[2]. - The company has made significant investments in smart campus construction, including new smart classrooms and upgraded training software systems to enhance teaching quality[13]. - The company has entered into a new property cooperation framework agreement to manage and operate multiple land and building usage rights, which may expand its operational capabilities[17]. Financial Position and Liabilities - As of August 31, 2023, the group's total cash and bank balances were RMB 2,927.73 million, a decrease from RMB 3,033.51 million as of August 31, 2022[38]. - The group's bank loans and other borrowings totaled RMB 3,473.01 million as of August 31, 2023, down from RMB 4,123.66 million in the previous year[39]. - The current ratio as of August 31, 2023, was 0.44, down from 0.60 as of August 31, 2022, primarily due to the reclassification of convertible bonds from long-term to current liabilities[40]. - The net debt-to-equity ratio decreased from 13.6% as of August 31, 2022, to 6.5% as of August 31, 2023, mainly due to a reduction in interest-bearing bank and other borrowings[42]. - The debt-to-equity ratio as of August 31, 2023, was approximately 41.2%, down from 51.2% in the previous year[43]. - The company's total liabilities stood at RMB 13,861,671 thousand, with interest-bearing bank and other borrowings at RMB 3,473,013 thousand[65]. Employment and Job Opportunities - The employment department conducted offline assessments with over 2,141 companies and online contacts with more than 4,200 companies, facilitating 651 school-enterprise cooperation discussions and providing over 150,000 internship and job positions[3]. - The company has organized 54 large-scale job fairs and 681 specialized recruitment events during the reporting period[3]. - The company has conducted 54 large-scale job fairs and 681 specialized recruitment events, providing over 150,000 internship and employment positions, leading to a steady increase in graduate employment rates[14]. Government and Regulatory Developments - By 2025, the government plans to improve the system for industry-education integration and increase funding for vocational education, which the company intends to leverage for deeper collaboration with enterprises[9]. - The company has received approval to register as a for-profit private school, which may enhance its operational flexibility and funding opportunities[16]. - The company did not recommend a final dividend for the fiscal year ending August 31, 2023, due to funding arrangements for debt repayment and school construction expenses[47].

Educational Expansion and Infrastructure - Capital expenditure for school expansion reached RMB 854 million, focusing on enhancing educational facilities and increasing capacity[8] - The group established over 132 training centers and added nearly 20,000 square meters of practical training space during the reporting period[8] - The company has successfully established a resource pool for high-quality courses, with 29 provincial-level first-class courses and various online resources developed to enhance teaching quality[23] - The company established 40 new training and computer labs, enhancing educational infrastructure and increasing student satisfaction[26] - The company has developed 227 textbooks with the participation of 1,674 teachers, and successfully applied for 3 national standard textbooks, enhancing the quality of educational materials[25] Student Enrollment and Performance - New student enrollment exceeded 95,000 for the 2022-2023 academic year, representing a 15% year-on-year growth, while total enrolled students surpassed 280,000, a 21% increase[14] - The comprehensive enrollment rate maintained a high level, exceeding 85%[14] - A total of 753 awards were achieved by students, including 260 national-level awards and 450 provincial-level awards, indicating a significant increase in student recognition and competitive skills[22] - The international student enrollment at INTI International University in Malaysia grew by 77% year-on-year, enhancing the institution's brand recognition in the ASEAN region[13] Employment and Industry Collaboration - A total of 1100 offline company visits and 4200 online contacts were made by the employment department, resulting in 46 large job fairs and 661 specialized recruitment events, providing over 140,000 internship and job positions[9] - The group has established long-term partnerships with over 3,000 enterprises to promote industry-education integration and enhance employment capabilities[12] - The establishment of practical training bases with over 100 star enterprises provides students with extensive internship and employment opportunities[37] - The focus on industry collaboration and practical training is a key strategy for enhancing student employability and meeting regional economic needs[39] Financial Performance - For the six months ended February 28, 2023, the company's revenue was RMB 1,934.83 million, an increase of 26.7% compared to RMB 1,526.52 million for the same period in 2022[70] - The adjusted gross profit for the same period was RMB 1,018.29 million, reflecting a 26.4% increase from RMB 805.36 million in the previous year[69] - The adjusted net profit reached RMB 602.22 million, up 32.8% from RMB 453.42 million year-over-year[77] - The company's gross profit margin slightly decreased to 50.3% from 50.8% in the previous year[69] Operational Costs and Expenses - Sales expenses increased to RMB 153.57 million, up 16.8% from RMB 131.44 million, primarily due to expanded recruitment and marketing efforts[74] - Administrative expenses rose to RMB 282.72 million, a 44.4% increase from RMB 195.70 million, attributed to acquisitions and new school establishments[75] - Financing costs increased to RMB 170.97 million, up 30.7% from RMB 130.90 million, mainly due to a larger loan scale[76] Shareholder Information and Equity - As of February 28, 2023, Wang Huiwu holds 4,140,948,240 shares in the company, representing approximately 51.72% of the total equity[98] - The total number of shares issued as of February 28, 2023, is 8,027,550,706 shares[102] - Major shareholders include Hope Education Investment Limited, which holds 4,140,948,240 shares, representing 51.58%[103] - The company has a total of 718,395,000 shares under short positions, which accounts for approximately 8.95%[103] Cash Flow and Liquidity - The company’s net cash flow from operating activities for the six months ended February 28, 2023, was RMB 517,963,000, an increase of 28% from RMB 404,826,000 in the previous year[135] - The company recorded a significant reduction in cash and cash equivalents of RMB 315,327,000 for the period, compared to a much larger decrease of RMB 3,418,132,000 in the previous year[137] - The company has secured sufficient bank financing from reputable financial institutions to meet its financial obligations, addressing liquidity concerns[140] Educational Quality and Development - The company is committed to improving the quality of vocational education while expanding its scale, addressing both quantity and quality challenges in the sector[17] - The company has implemented a new teaching model that integrates practical skills with theoretical knowledge, enhancing the overall educational experience[23] - The company aims to enhance the quality of education by focusing on high-quality development and improving teaching conditions[56] Strategic Initiatives - The company aims to expand its international presence by promoting high-level international cooperation in vocational education, responding to national strategies like the Belt and Road Initiative[19] - The strategic focus includes expanding vocational education in under-resourced areas, particularly in central and western regions of China[59] - The company has been actively promoting the development of vocational education, aligning with national policies that emphasize the importance of vocational training and education for enhancing employment quality and capacity[16]

Financial Performance - The company's revenue for the six months ended February 28, 2023, was RMB 1,934.83 million, an increase of RMB 408.31 million or 26.7% compared to RMB 1,526.52 million for the same period last year[36]. - The adjusted gross profit for the same period was RMB 1,018.29 million, reflecting a 26.4% increase from RMB 805.36 million year-on-year[35]. - The adjusted net profit reached RMB 602.22 million, representing a 32.8% increase compared to RMB 453.42 million in the previous year[35]. - The group's gross profit for the six months ended February 28, 2023, was RMB 972.58 million, an increase of RMB 198.07 million or 25.6% compared to RMB 774.51 million in the same period last year[38]. - The total comprehensive income for the period was RMB 444,930 thousand, compared to RMB 396,111 thousand, marking an increase of 12.2%[53]. - The profit before tax decreased to RMB 456,246 thousand from RMB 498,726 thousand, reflecting a decline of 8.5%[53]. - The adjusted net profit margin improved to 31.1%, up from 29.7% in the same period last year, reflecting a 143 basis points increase[42]. - The company reported a loss of RMB 91,541 thousand on the fair value of convertible bonds, compared to a loss of RMB 5,830 thousand in the previous year[53]. Enrollment and Educational Expansion - New student enrollment exceeded 95,000, representing a year-on-year growth of 15%, while total student enrollment surpassed 280,000, up 21% year-on-year, with a comprehensive reporting rate exceeding 85%[3]. - The company has seen a compound annual growth rate of 32.3% in new student enrollment and 34.4% in total student enrollment over the past five years[3]. - The international student enrollment at Malaysia's International University increased by 77% year-on-year, alongside the organization of over 550 campus activities to enhance brand recognition in the ASEAN region[3]. - The total number of enrolled students as of February 28, 2023, is 280,453, an increase of 20.9% from 232,059 in 2022[24]. - The number of undergraduate students rose to 143,402 in 2023, up from 119,050 in 2022, reflecting a growth of 20.4%[24]. - The number of vocational college students increased to 124,905 in 2023, compared to 98,465 in 2022, marking a growth of 27%[24]. - The company plans to expand its market presence by opening three new vocational colleges in the next fiscal year[86]. Investment in Infrastructure and Facilities - Capital expenditure for school expansion reached RMB 854 million, focusing on upgrading educational facilities and building 132 new training centers, adding nearly 20,000 square meters of training space[2]. - Approximately 300 backbone network devices were added or replaced, and 40 new training and computer labs were established, enhancing the network infrastructure across 16 campuses[10]. - The overall utilization rate of school facilities increased to 91% in 2023 from 87% in 2022[24]. - The company has built 10 training centers and over 140 advanced professional laboratories to enhance practical skills training[14]. Partnerships and Collaborations - The company established long-term partnerships with over 3,000 enterprises, effectively connecting the education, talent, industry, and innovation chains[3]. - The company has established partnerships with universities in Malaysia and Thailand to enhance international vocational education programs, focusing on big data and animation technology[28]. - The company has signed cooperation agreements with over 30 enterprises in Gansu for school-enterprise collaboration[22]. - The company has established stable off-campus practice bases with 171 enterprises in Inner Mongolia[20]. Operational Efficiency and Management - The company continues to enhance operational quality through lean management practices, optimizing internal control processes and budget management[29]. - The implementation of an equity incentive mechanism aims to retain and attract core talent, ensuring sustainable development for the company[30]. - The company is committed to increasing investment and improving the governance capabilities of its institutions[26]. Awards and Achievements - A total of 753 awards were achieved by students, including 260 national-level awards and 450 provincial-level awards, reflecting a historical high in competition results[7]. - The group ranked 8th in the 2022 research competitiveness ranking among private undergraduate institutions in China, with several other institutions also achieving notable rankings[11]. Financial Position and Liabilities - Total bank loans and borrowings as of February 28, 2023, amounted to RMB 4,076.34 million, with interest rates ranging from 4.00% to 15.05%[45]. - The current ratio as of February 28, 2023, was 0.57, a slight decrease from 0.60 as of August 31, 2022[46]. - The net debt to equity ratio increased from 13.6% as of August 31, 2022, to 15.6% as of February 28, 2023, primarily due to investments in educational facilities and acquisitions[47]. - The company's total liabilities decreased from RMB 4,345,287,000 at the beginning of the period to RMB 2,725,264,000, reflecting a significant reduction in financial obligations[63]. Future Outlook - The company expects a revenue growth guidance of 12% to 15% for the next fiscal year, driven by increased enrollment and new program offerings[85]. - The company is exploring potential acquisitions of smaller educational institutions to broaden its service offerings[86]. - The company’s cash flow from operations is expected to improve in the upcoming quarters due to strategic initiatives and market expansion plans[83].

Enrollment and Student Growth - The company achieved a record enrollment of 95,000 new students in September 2022, marking a historical high[8]. - For the 2022-2023 academic year, the company achieved new enrollments exceeding 95,000, a 15% year-on-year growth, and total student enrollment surpassed 280,000, reflecting a 21% increase[20]. - The company’s compound annual growth rate for new enrollments over the past five years was 32.3%, while total student enrollment grew at a compound rate of 34.4%[20]. - The company reported a 47% year-on-year increase in new enrollments at its Malaysian campus, with a significant improvement in QS international university rankings by over 100 places[18]. - Total number of enrolled students increased to 280,453 in 2022 from 232,059 in 2021, representing a growth of approximately 20.8%[49]. - The number of undergraduate students rose to 143,402 in 2022, up from 119,050 in 2021, indicating a growth of about 20.4%[49]. - The number of vocational college students increased to 124,905 in 2022 from 98,465 in 2021, reflecting a growth of approximately 27%[49]. - The number of technical education students decreased to 12,146 in 2022 from 14,544 in 2021, showing a decline of about 16.5%[49]. Financial Performance - The company reported a revenue of RMB 3,042.69 million for the year ended August 31, 2022, an increase of RMB 718.42 million or 30.9% compared to RMB 2,324.27 million for the previous year[63]. - The adjusted gross profit for the same period was RMB 1,492.23 million, up from RMB 1,237.12 million in the previous year[60]. - The net profit for the year was RMB 445.90 million, a decrease from RMB 605.12 million in the previous year[61]. - The adjusted net profit for the year was RMB 758.58 million, compared to RMB 866.36 million in the previous year[61]. - The group's gross profit for the year ended August 31, 2022, was RMB 1,395.14 million, an increase of RMB 219.17 million or 18.6% compared to RMB 1,175.97 million for the year ended August 31, 2021[65]. - Other income and gains decreased to RMB 281.64 million, down RMB 384.89 million or 57.7% from RMB 666.53 million, primarily due to the absence of last year's gains from equity valuation and debt restructuring[67]. - Selling expenses increased to RMB 216.89 million, up RMB 69.68 million from RMB 147.21 million, mainly due to higher investments in recruitment, advertising, and marketing[68]. - Administrative expenses rose to RMB 440.43 million, an increase of RMB 107.68 million from RMB 332.75 million, driven by further integration of acquired institutions and increased compensation and depreciation[69]. Educational Development and Quality - The company introduced over 2,400 new teachers and conducted 2,309 training sessions to enhance teaching quality[8]. - The employment rate of graduates from the company's institutions is higher than the provincial average[8]. - The company aims to enhance the quality of talent training by strengthening the teacher workforce and deepening teaching reforms over the next 2-3 years[55]. - The company has established partnerships with over 3,000 enterprises to promote a talent cultivation model that reflects real production and work environments[8]. - The company has developed a professional training base with over 140 advanced experimental training rooms across various disciplines[39]. - The company has a strong focus on cultivating high-quality technical talent, with over 20% of teachers holding senior titles and nearly 50% being dual-skilled[41]. - The company has seen significant improvements in educational quality, social reputation, and employment outcomes in recent years[41]. - The company has established a collaborative educational model with enterprises, promoting resource sharing and joint development[39]. Capital Expenditure and Expansion - Capital expenditure for school expansion reached RMB 2.32 billion, an increase of 47.6% year-on-year, focused on enhancing educational facilities and training centers[13]. - The company established over 205 new training centers, adding more than 49,000 square meters of practical training space[13]. - The company added 28 new programs during the reporting period, including 2 provincial-controlled programs and 26 filed programs, enhancing its professional competitiveness[27]. - The company operates 19 higher education institutions and 2 vocational colleges across 11 provinces in China, focusing on improving educational quality and resource utilization[55]. - The company has established 10 schools in the Southwest region, offering 51 programs, including key specialties in rail transportation and civil engineering[38]. - The company’s Tianyi College has been approved as a national pilot for the 1+X certificate system, offering 46 programs across various fields[38]. International Expansion and Partnerships - The company acquired the Hungarian Wicker Business School, increasing its overseas institutions to three, leading the sector in both the number of overseas schools and enrolled students[8]. - The company aims to expand its overseas higher education market in alignment with the national "going out" strategy[9]. - The company is responding to the national "Belt and Road" initiative by increasing investments in international education development, including strategic cooperation agreements with over 300 employment units[18]. - The company is actively exploring educational projects with institutions in Eastern and Central Europe to cultivate international talent for the "Belt and Road" initiative[18]. - The company plans to expand its overseas higher education business by leveraging partnerships with institutions in Southeast Asia[54]. - The company has established long-term cooperative relationships with 12 foreign institutions, enhancing international collaboration[48]. Governance and Management - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors, with a term of three years[86]. - The CEO and President, Wang Huiwu, has been with the company since January 5, 2005, and was appointed as CEO on February 2, 2018[89]. - The company aims to maintain a robust governance structure with a balanced board composition to support its strategic objectives[86]. - The management team has extensive experience in finance and education, enhancing the company's strategic capabilities[91]. - The company has appointed three independent non-executive directors, constituting half of the board, to balance the interests of shareholders[198]. Risks and Compliance - The company faces significant risks including intense competition in the private higher education sector in China, which may lead to price pressure and reduced profit margins[115]. - The company may not successfully implement its growth strategies or manage future growth effectively, potentially weakening its ability to seize new business opportunities[115]. - The company is subject to uncertainties related to amendments to the Private Education Promotion Law of the People's Republic of China[115]. - The company has implemented various measures to mitigate risks and uncertainties, as detailed in the corporate governance report[115]. - The company confirmed compliance with the disclosure requirements for all continuing connected transactions as per the listing rules[161]. - The company has taken extensive measures to correct deficiencies in its properties and is actively pursuing necessary permits and approvals from government authorities[196]. Shareholder Information - As of August 31, 2022, the total number of issued shares was 8,027,550,706 shares[128]. - Hope Education Investment Limited holds a beneficial interest in 4,140,948,240 shares, representing 51.58% of the company[132]. - The company has a short position of 718,395,000 shares, which is 8.95% of the total shares[132]. - The total beneficial interest in the company by various stakeholders includes 4,183,190,943 shares, which is 52.11%[134]. - The company has a series of controlled entities that indirectly hold interests in both long and short positions[135].

Educational Investment and Growth - The company increased its educational investment, with capital expenditures reaching RMB 1,549.1 million, a 67% year-on-year growth, and teaching expenditures at RMB 585.2 million, up 41% year-on-year[6]. - The number of new students enrolled in the 2021-2022 academic year reached 82,564, representing a 15% increase year-on-year, while total enrolled students reached 232,059, a 19% increase year-on-year[8]. - The company established partnerships with over 2,000 enterprises, providing more than 118,000 internship and employment positions for students, enhancing their practical skills and employability[8]. - Enrollment at the overseas campus, INTI International University in Malaysia, grew by 43%, while Srinakharinwirot University saw a 24% increase in enrollment during the reporting period[8]. - The company has developed 143 unique textbooks and 275 specialized courses since 2019, aligning educational offerings with industry needs[6]. - The company has actively responded to national calls for rural revitalization, enrolling 19,762 new vocational farmers and veterans for higher vocational skills education over the past three years[6]. - Over 50% of the company's institutions and over 60% of its students are located in the central and western regions of China, supporting regional socio-economic development[6]. - The total number of enrolled students increased to 232,059 in 2022 from 196,747 in 2021, representing a growth of approximately 18%[38]. Quality of Education and Teaching Staff - The company aims to continuously improve educational quality and expand its capacity, with 55% of land at its institutions still available for development[6]. - The company is committed to enhancing its educational quality by implementing a "quality first" strategy and promoting small class teaching[6]. - The company introduced a plan to enhance the quality of vocational education, aiming for a significant improvement in the overall level by 2035, aligning with national economic development needs[10]. - In 2021, the company recruited 1,532 teachers, including 618 counselors and 1,138 master's degree holders, to strengthen its teaching staff[14]. - A total of 249 teachers were recognized as dual-qualified teachers, with some institutions having a dual-qualified teacher ratio of 35%[19]. Partnerships and Industry Alignment - The company established partnerships with over 2,000 enterprises to enhance practical training and align educational programs with industry needs, improving students' employability[15]. - The company is committed to integrating education with industry needs, facilitating a seamless connection between academic programs and job market demands[15]. - The company has built a professional system focusing on automotive and intelligent manufacturing industries, responding to local talent demands[28]. - The company has established a collaborative model with enterprises, sharing resources and jointly developing talent training programs[30]. Financial Performance - For the six months ended February 28, 2022, the company recorded revenue of RMB 1,526.52 million, an increase of RMB 343.09 million or 29.0% compared to RMB 1,183.43 million for the same period last year[49]. - The company's gross profit for the six months ended February 28, 2022, was RMB 774.51 million, an increase of RMB 133.04 million or 20.7% from RMB 641.47 million in the previous year[51]. - The company's net profit for the six months ended February 28, 2022, was RMB 429.82 million, a decrease of RMB 47.01 million or 9.8% from RMB 477.83 million in the previous year[49]. - The company's cost of sales increased to RMB 752.01 million, up RMB 210.05 million or 38.8% from RMB 541.96 million in the previous year, primarily due to increased student numbers and related investments[50]. - Selling expenses for the six months ended February 28, 2022, were RMB 131.44 million, an increase of RMB 49.69 million from RMB 81.75 million in the previous year, driven by expanded enrollment and marketing efforts[52]. Corporate Governance and Compliance - The company has adhered to all applicable provisions of the corporate governance code during the reporting period[69]. - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed matters related to internal controls and financial reporting[71]. - The company is committed to enhancing corporate governance practices to optimize shareholder returns[69]. - The company has confirmed compliance with the standard code regarding securities trading by all directors throughout the reporting period[70]. Acquisitions and Expansion - The company acquired 100% equity of Srinakharinwirot University in Thailand in November 2021, continuing its strategy to expand overseas higher education markets[8]. - The acquisition of Thailand's Srinakharinwirot University was completed, making it a wholly-owned subsidiary of the company[25]. - The company acquired approximately 306.9 acres of land for its Inner Mongolia campus and constructed 56,675 square meters of school buildings in its Ningxia campus[21]. - The company completed the acquisition of Sichuan Top Education Co., Ltd. in December 2017, enhancing its educational offerings[188]. - The company signed an acquisition agreement with Shinawatra University in April 2021, expanding its educational network[188]. Shareholder Structure and Equity - As of February 28, 2022, the CEO Wang Huiwu holds a total of 4,152,068,240 shares, representing 51.72% of the company's equity[73]. - Hope Education Investment Limited holds 4,140,948,240 shares, representing approximately 51.58% of the total shares[78]. - The total number of issued shares as of February 28, 2022, is 8,027,550,706 shares[76]. - The company has a significant ownership structure involving multiple controlled entities, including Tequ Group A Limited and Shanghai Yizeng Management Co., Ltd.[81]. Challenges and Future Outlook - The company aims to enhance its brand and reputation through continuous investment in educational quality and infrastructure[1]. - The company is focused on developing new educational programs and technologies to enhance its service offerings[188]. - The company is exploring opportunities for further mergers and acquisitions to strengthen its market position[188]. - The company has implemented alternative action plans during campus closures, including live streaming classes and remote learning activities, to mitigate the impact of COVID-19 on its Malaysian education business[120].

Educational Institutions and Programs - The company operates 22 educational institutions, including 9 undergraduate schools, 11 vocational colleges, and 2 technical schools[8]. - In the fiscal year 2021, the company established 6 national-controlled majors and 15 provincial-controlled majors across 7 institutions, with 34 courses recognized as national-level courses[12]. - The company has cumulatively trained 125,800 skilled talents since its listing in 2018, contributing significantly to social and economic development[12]. - The company has a student enrollment of 232,000 across its institutions, supporting sustainable development in higher vocational education[13]. - The company is focused on sustainable development supported by national policies and a robust educational network across ten provinces, ensuring effective support for higher vocational education expansion[13]. - The company has received 516 awards or honors across its institutions, including 28 first prizes in national competitions and 304 first prizes in provincial competitions[12]. - The company operates 46 undergraduate and vocational programs, focusing on rail transportation and civil engineering as key disciplines[61]. - The company has established 11 first-class undergraduate programs and 24 first-class courses recognized at the regional level[66]. - The company has developed partnerships with 12 international institutions, enhancing its global educational collaboration[66]. - The company has achieved a record enrollment rate, ranking first among similar institutions in the province[63]. - The company has opened 28 undergraduate programs at the Inner Mongolia University Entrepreneurship College, with five programs recognized as first-class at the regional level[68]. - The company has a total of 29 undergraduate programs across six academic disciplines at Guizhou Qiannan Economic College[63]. - The company has established 110 stable off-campus practice bases in collaboration with enterprises[68]. - The company has 36 experimental training rooms at the Baiyin Hope Vocational and Technical College, focusing on new energy vehicle technology and big data[59]. - The company has a total of 25 undergraduate programs at Guizhou Qiannan Science and Technology College, covering six major academic disciplines[64]. - The company has achieved 574 awards in various provincial and national scientific competitions over the past five years[67]. - The college has established 43 majors across 9 categories, with 3 provincial-level characteristic majors and 127 research projects[71]. - The college has formed a "233+X" talent training model through deep integration with enterprises, establishing 119 off-campus training bases[72]. - The college has developed 20+ majors in automotive technology, with a 100% certification rate for graduates' vocational qualifications and an employment rate exceeding 85% for two consecutive years[75]. - The college has established 46 majors and maintained a graduate employment rate of over 97% for several years[78]. - The college has implemented a cooperative model with enterprises, completing internships for over 2,473 students across 27 projects[79]. - The college has formed three major professional groups focusing on film and television media, art design, and music and dance[81]. - The company has established partnerships with over 86 large enterprises and industry associations to create internship and training bases[87]. - The company plans to enhance its educational offerings by focusing on "one school, one feature" strategy, optimizing school positioning and increasing investment in characteristic majors[93]. - The company aims to improve student quality and capabilities by reforming curriculum and teaching content to meet new demands from society and industries[94]. - The company is committed to promoting collaborative development between domestic and overseas institutions, leveraging its partnerships with universities in Malaysia and Thailand[95]. - The company has signed cooperation agreements with over 30 enterprises, enhancing practical training facilities[83]. - The company has established a national-level key professional in construction engineering technology and several provincial-level key programs[82]. - The company has maintained stable operations in domestic institutions despite the impact of the COVID-19 pandemic, while facing challenges in overseas recruitment[89]. - The company is enhancing its competitive edge in private higher education by building distinctive schools and programs[92]. Financial Performance - Revenue for the year ended August 31, 2021, reached RMB 2,324.27 million, a significant increase of 166.5% compared to RMB 872.08 million for the same period in 2020[17]. - Adjusted gross profit for the same period was RMB 1,237.12 million, reflecting a 204.3% increase from RMB 406.53 million in 2020[19]. - Net profit for the year was RMB 605.12 million, up 407.0% from RMB 119.35 million in the previous year[17]. - The adjusted net profit margin improved to 37.3%, an increase of 14.2% from 23.1% in the prior year[17]. - New student enrollment increased by 49.3% to 72,830 for the academic year 2020/2021, compared to 48,789 in 2019/2020[17]. - Total enrolled students reached 196,747, a 40.4% increase from 140,125 in the previous year[17]. - The company acquired additional institutions, which contributed an estimated 24,257 students not included in the total enrollment figures[18]. - Adjusted net profit for the year was RMB 866.36 million, a 330.5% increase from RMB 201.26 million in the previous year[21]. - The adjusted gross profit margin for the year was 53.2%, up from 46.6% in the previous year, indicating improved operational efficiency[17]. - The company reported revenue of RMB 2,324.27 million for the fiscal year ending August 31, 2021, representing a 48.2% increase from RMB 1,568.12 million in the previous year[30]. - Adjusted gross profit for the same period was RMB 1,237.12 million, up 50.4% from RMB 822.36 million year-over-year[29]. - The net profit for the fiscal year was RMB 605.12 million, reflecting a 32.6% increase compared to RMB 456.45 million in the prior year[30]. - The company experienced a significant increase in enrollment numbers and raised tuition fees, contributing to the revenue growth[32]. - Sales costs rose to RMB 1,148.30 million, an increase of 45.2% from RMB 790.74 million in the previous year[33]. - The adjusted net profit for the fiscal year was RMB 866.36 million, a 50.5% increase from RMB 575.78 million year-over-year[29]. - The company incurred restructuring costs of RMB 412.30 million during the fiscal year, which were not present in the previous year[30]. - The company reported other income and gains of RMB 666.53 million, a substantial increase of 177.3% from RMB 240.37 million in the previous year[30]. - The adjusted gross margin improved to 53.2% for the fiscal year ending August 31, 2021, compared to 52.4% in the previous year[32]. - The company plans to continue expanding through acquisitions and increasing enrollment in its existing institutions[32]. - For the fiscal year ending August 31, 2021, the adjusted gross profit was RMB 1,237.12 million, with an adjusted gross profit margin of 53.2%, representing a year-on-year increase of RMB 414.76 million or 50.4%[35]. - Other income and gains for the fiscal year ending August 31, 2021, amounted to RMB 666.53 million, a significant increase of RMB 426.16 million or 117.3% compared to the previous year[35]. - Sales expenses for the fiscal year ending August 31, 2021, reached RMB 147.21 million, reflecting a year-on-year increase of RMB 85.88 million or 140% due to increased marketing expenses for student recruitment[37]. - Administrative expenses for the fiscal year ending August 31, 2021, were RMB 332.75 million, an increase of RMB 137.3 million or 70.2% compared to the previous year, primarily due to new acquisitions[37]. - The financing costs for the fiscal year ending August 31, 2021, were RMB 298.42 million, an increase of RMB 89.80 million or 43% year-on-year, attributed to expanded operational scale and acquisition-related financing[39]. - The adjusted net profit for the fiscal year ending August 31, 2021, was RMB 866.36 million, a year-on-year increase of RMB 290.58 million or 50.5%[39]. - As of August 31, 2021, the total cash and bank balances amounted to RMB 4,814.40 million, with cash and cash equivalents at RMB 4,357.29 million, up from RMB 2,894.44 million the previous year[42]. - The total bank loans and borrowings as of August 31, 2021, were RMB 3,110.50 million, with interest rates ranging from 4.34% to 14.5%[43]. - The current ratio as of August 31, 2021, was 0.83, down from 1.18 the previous year, indicating a decrease in liquidity[45]. - The company has committed capital expenditures of RMB 1,662.66 million as of August 31, 2021, primarily related to property and equipment acquisitions[41]. - The debt-to-equity ratio as of August 31, 2021, was 39.84%, a decrease from 54.75% as of August 31, 2020[47]. - The net debt-to-equity ratio was -21.83% as of August 31, 2021, down from -5.27% a year earlier, indicating a reduction of 16.56%[46]. Governance and Management - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors[101]. - The CEO and President, Wang Huiwu, has been with the group since January 5, 2005, and is responsible for overall strategic planning and operational management[103]. - The group appointed a new Chief Financial Officer, Yuan Junmin, effective January 1, 2021, responsible for financial management[103]. - The company has a strong governance structure with independent directors providing oversight and independent opinions[104]. - The chairman, Xu Changjun, has extensive experience in finance and has been recognized as an outstanding CFO in China[104]. - The management team includes CEO Wang Huiwu and COO Jiang Lin, with extensive experience in education and administrative management[114][116]. - The management team has a combined experience in various sectors, including finance, education, and administration, contributing to strategic decision-making[114][116]. - The board of directors has a commitment to corporate governance and compliance with regulatory standards[112]. - The company has a strong governance structure with independent directors and a diverse board[112]. Market Expansion and Strategy - The company plans to actively respond to national initiatives for international educational cooperation with ASEAN countries, focusing on vocational education and degree recognition[13]. - The company plans to continue expanding its market presence through acquisitions and new educational offerings[19]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[5]. - A strategic acquisition of a local educational technology firm is anticipated to enhance the company's product offerings and customer base[6]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs through process optimization[8]. - The company plans to implement new marketing strategies to boost brand awareness, aiming for a 40% increase in online engagement[10]. - The company is focused on providing higher education services as an investment holding company[120]. - The company has been expanding its educational offerings and partnerships to enhance its market presence[120]. - The company has implemented new strategies to improve operational efficiency and educational quality[120]. Risks and Compliance - The group faced significant risks including tuition fee dependency and intense competition in the private higher education sector in China[126]. - The company has adopted a dividend policy that is subject to the board's discretion based on future operational performance and capital needs[129]. - The company has implemented measures to mitigate risks and uncertainties related to regulatory changes in the private education sector[128]. - The group has not identified any significant non-compliance issues with relevant laws and regulations that would materially impact its business operations as of August 31, 2021[122]. - The company may face challenges in successfully integrating acquired businesses, which could lead to additional costs and loss of expected benefits[128]. Shareholder Information - As of August 31, 2021, the total number of shares issued by the company was 7,981,260,173 shares[141]. - Wang Huiwu, the CEO, holds a controlled entity interest of 4,140,948,240 shares, representing 51.88% of the company's equity[139]. - Major shareholders include Hope Education Investment Limited, which holds 4,140,948,240 shares, also representing 51.88%[145]. - The company has a stock option plan that involves a total of 500,000,000 shares, accounting for approximately 6.26% of the issued shares as of the report date[155]. - As of August 31, 2021, there are 276,577,787 unexercised stock options under the stock option plan, representing about 3.5% of the company's issued capital[161]. - The stock option plan was adopted on March 18, 2018, and is valid until the first trading day of the shares on the Hong Kong Stock Exchange, which was August 3, 2018[160]. - The exercise prices for the stock options are set at HKD 0.68, HKD 1.07, and HKD 1.30 for different batches[159]. - The company has a controlled equity structure with significant holdings by various entities, including China Everbright Group and its subsidiaries[148]. - The stock option plan aims to align the interests of selected participants with those of shareholders and reward outstanding performance[153]. - As of August 31, 2021, the company has granted stock options to 321 participants under the stock option plan[161]. Related Party Transactions - The company has established a property leasing framework agreement with related parties, effective from January 1, 2021, to August 31, 2023[176]. - The company has set annual rental caps for properties leased to related parties, with proposed limits of RMB 30 million for 2022 and 2023[175]. - The company confirmed that all related party transactions comply with the listing rules and are conducted on fair commercial terms[174]. International Operations and Compliance - The company is focused on expanding its business through contractual arrangements to comply with Chinese regulations on foreign ownership in the education sector[179]. - The company has not faced any interference or obstruction from Chinese regulatory authorities regarding contractual arrangements as of the report date[182]. - The exclusive management consulting and business cooperation agreement allows the foreign-invested enterprise to provide management and educational services, with all intellectual property rights generated from the agreement owned by the foreign-invested enterprise[186]. - The exclusive call option agreement grants the foreign-invested enterprise the right to purchase all or part of the company's equity at the minimum price permitted by Chinese laws[188]. - The equity pledge agreement provides the foreign-invested enterprise with a first priority pledge on all equity of the company to ensure compliance with the management consulting and call option agreements[189]. - The irrevocable power of attorney allows the foreign-invested enterprise to appoint directors and vote on matters requiring shareholder approval[191].