Corporate Governance and Management Changes - The company appointed new members to the audit committee and strategic development committee in January 2024, including Li Tao as a non-executive director[1]. - The company reported changes in its board of directors, including the resignation of several members and the appointment of new directors in early 2024[1]. - The board of directors consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors[72]. - The company has appointed a new executive director on September 27, 2024[109]. - The company’s CEO, Wang Huiwu, has been in the position since February 2, 2018[108]. - The company has a diverse board, including various aspects such as gender, age, cultural background, and professional experience[186]. - The committee's main responsibilities include reviewing the company's operational goals and development strategies, and making recommendations to the board[187]. - The committee evaluates factors that may impact the company's strategic planning based on economic conditions and national policies[187]. Financial Performance - Total revenue for the fiscal year ended August 31, 2024, was RMB 3,732.07 million, an increase from RMB 3,581.63 million in the previous year, representing a growth of 4.2%[28]. - Adjusted net profit for the same period was RMB 693.18 million, down from RMB 874.81 million in the previous year, indicating a decrease of 20.7%[28]. - The group's net profit for the fiscal year ending August 31, 2024, was RMB 613.09 million, up RMB 402.32 million from RMB 210.77 million for the fiscal year ending August 31, 2023[56]. - Administrative expenses for the fiscal year ending August 31, 2024, were RMB 600.55 million, an increase of RMB 52.99 million from RMB 547.56 million for the fiscal year ending August 31, 2023[53]. - The total equity increased to RMB 9,154.50 million from RMB 8,439.73 million, marking a growth of 8.4%[34]. - The company reported that its top five customers accounted for less than 30% of total sales for the year ending August 31, 2024[153]. Strategic Development and Acquisitions - The company announced the acquisition of 100% equity in Jiangxi Changzhen Industrial Co., Ltd. and Nanchang University Qiong College Logistics Service Co., Ltd. on January 31, 2024[2]. - The company is actively pursuing market expansion and strategic development through acquisitions and partnerships[2]. - The company is advancing international development strategies, establishing partnerships with over 110 universities across more than 40 countries[38]. Debt and Financial Management - The company is actively resolving debt issues and optimizing resource allocation to ensure stable operations[23]. - As of August 31, 2024, the group's total bank loans and other borrowings amounted to RMB 3,237.36 million, a decrease from RMB 3,473.01 million as of August 31, 2023[61]. - The company does not recommend the distribution of a final dividend for the year ending August 31, 2024, due to funding arrangements for debt repayment and school construction expenses[137]. Educational Quality and Talent Development - The company aims to enhance educational quality and talent cultivation as a core objective, focusing on teaching facilities and faculty development[23]. - The number of new teachers added exceeded 500, with nearly 100 new senior positions, enhancing the quality of talent cultivation[36]. - The group has made significant investments in faculty allocation and small class teaching, leading to increased staff compensation and training facility costs[50]. Compliance and Risk Management - The company is required to comply with various laws and regulations in China, including the Foreign Investment Industry Guidance Catalogue[95]. - The company has implemented various measures to mitigate risks and uncertainties associated with its operations[135]. - The company has established a risk management and internal control system to ensure effective financial reporting[200]. - The internal audit function is reviewed to ensure it has sufficient resources and appropriate status within the company[200]. Market Conditions and Competition - The company faces intense competition in the higher education sector in China, which may lead to pressure on pricing and a decrease in operating profit margins[131]. - The company faces risks related to the implementation of growth strategies and uncertainties regarding the amendments to the Private Education Promotion Law in China[155][156]. Shareholder Information - As of August 31, 2024, Wang Huiwu holds a 47.27% stake in the company through various trusts and holdings[148]. - The total number of issued shares as of August 31, 2024, was 8,224,974,706 shares[174]. - The company has issued a total of 190,000,000 share options to 18 eligible participants as part of its share option plan adopted on March 18, 2022[45]. Upcoming Events - The upcoming annual general meeting is scheduled for February 28, 2025[138].

Teacher and Student Development - 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] - 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] - The total number of enrolled students as of October 31, 2024, was 291,264, compared to 290,927 in the previous year[23] Internationalization and Partnerships - The company established cooperation with over 110 universities in more than 40 countries globally, advancing internationalization[4] - The company aims to expand the scale of individual schools and increase the proportion of overseas schools in its operations[27] Financial Performance - 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] - Gross profit for the fiscal year ending August 31, 2024, was RMB 1,573.57 million, down from RMB 1,680.18 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 profit margin falling to 18.57% from 24.42%[48] - Revenue increased to RMB 3,732,066 thousand in 2024, up 4.2% from RMB 3,581,632 thousand in 2023[74] - Gross profit decreased to RMB 1,573,565 thousand in 2024, down 6.3% from RMB 1,680,182 thousand in 2023[74] - Net profit for the year surged to RMB 613,087 thousand in 2024, a significant increase of 190.8% from RMB 210,769 thousand in 2023[74] - Total comprehensive income for the year rose to RMB 674,307 thousand in 2024, up 181.3% from RMB 239,709 thousand in 2023[74] - Basic earnings per share for the company's ordinary equity holders increased to RMB 7.41 cents in 2024, up 185% from RMB 2.60 cents in 2023[76] - Net profit for the year reached RMB 609,562,000, a significant increase from RMB 210,099,000 in the previous year[84] - Total comprehensive income for the year was RMB 671,069,000 in 2024, up from RMB 238,628,000 in 2023, driven by higher profits and exchange rate gains[84] - Pre-tax profit for 2024 was RMB 757,061 thousand, a significant increase from RMB 305,283 thousand in 2023[101][103] - Pretax profit for 2024 reached RMB 2,158,501 thousand, compared to RMB 1,901,450 thousand in 2023[110] Costs and Expenses - Sales costs increased to RMB 2,158.50 million in 2024, up by RMB 257.05 million from RMB 1,901.45 million in 2023, primarily due to increased faculty salaries, campus maintenance, and higher depreciation and rental costs[40] - Administrative expenses rose to RMB 600.55 million in 2024, an increase of RMB 52.99 million from RMB 547.56 million in 2023, mainly due to higher management salaries and equity-settled share-based compensation[44] - Employee benefits expenses increased to RMB 1,573,707 thousand in 2024 from RMB 1,397,887 thousand in 2023[110] - Total tax expense for 2024 was RMB 143,974 thousand, up from RMB 94,514 thousand in 2023[112] Liquidity and Financial Position - 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] - Total bank loans and borrowings stood at RMB 3,237.36 million as of August 31, 2024, with interest rates ranging from 3.8% to 10.67%[52] - 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 net current liabilities were approximately RMB 3,411.83 million as of August 31, 2024, with interest-bearing bank and other borrowings totaling RMB 3,237.36 million, of which RMB 2,054.78 million is due within the next 12 months[70] - The company's cash and cash equivalents amounted to RMB 2,549.30 million as of August 31, 2024[70] - The company's convertible bonds, measured at fair value through profit or loss, amounted to RMB 1,976.66 million, with a remaining outstanding amount of USD 331.20 million (approximately RMB 2,355.64 million), due on March 2, 2026[70] - The company is taking measures to improve liquidity and financial conditions, including restructuring convertible bonds, meeting requirements of medium-term note guarantors, selling equity interests in certain subsidiaries, and securing additional financing sources[71] - The company's cash flow forecast for the next 24 months indicates sufficient working capital to meet operational needs and financial obligations[97] - The company's ability to continue as a going concern depends on successful bond restructuring, meeting guarantor requirements, and securing new financing[97] - 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] - 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] - The company plans to explore bond restructuring, seek additional financing, and sell equity stakes in certain subsidiaries to improve liquidity[95] Asset and Liability Management - Total non-current assets grew to RMB 18,262,345 thousand in 2024, up 0.6% from RMB 18,159,868 thousand in 2023[78] - Total current liabilities decreased to RMB 7,430,996 thousand in 2024, down 21% from RMB 9,410,981 thousand in 2023[78] - Net current liabilities improved to RMB (3,411,830) thousand in 2024, a 35.2% reduction from RMB (5,269,444) thousand in 2023[78] - Total equity increased to RMB 9,154,490 thousand in 2024, up 8.5% from RMB 8,439,734 thousand in 2023[81] - Total equity increased to RMB 9,154,490,000 as of August 31, 2024, up from RMB 8,439,734,000 in 2023, reflecting growth in retained earnings and other reserves[84] - Total assets for 2024 amounted to RMB 22,281,511 thousand, slightly down from RMB 22,301,405 thousand in 2023[101][103] - Total liabilities for 2024 were RMB 13,127,021 thousand, a decrease from RMB 13,861,671 thousand in 2023[101][103] - Trade receivables decreased to RMB 83,683 thousand in 2024 from RMB 104,591 thousand in 2023[117] - Prepayments, deposits, and other receivables totaled RMB 1,244,340 thousand in 2024, up from RMB 987,449 thousand in 2023[119] - Cash and cash equivalents amounted to RMB 2,549,299 thousand in 2024, down from RMB 2,827,722 thousand in 2023[124] - Trade payables increased to RMB 57,286 thousand in 2024 from RMB 48,167 thousand in 2023[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 purchase of property, plant, and equipment decreased to RMB 664,118 thousand in 2024 from RMB 758,573 thousand in 2023[126] - Payables for acquisition of equity interests 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] - Payables for purchase of teaching materials and operating expenses decreased to RMB 28,590 thousand in 2024 from RMB 35,023 thousand in 2023[126] - Payables for management fees increased to RMB 43,496 thousand in 2024 from RMB 36,190 thousand in 2023[126] - Payables for rent increased to RMB 47,133 thousand in 2024 from RMB 41,643 thousand in 2023[126] Cash Flow and Investments - Cash flow from operating activities for 2024 was RMB 1,489,580,000, compared to RMB 1,786,893,000 in 2023, indicating a slight decrease[88] - Depreciation of property, plant, and equipment amounted to RMB 432,026,000 in 2024, up from RMB 404,041,000 in 2023[86] - Interest income decreased to RMB 32,939,000 in 2024 from RMB 66,239,000 in 2023, reflecting lower returns on investments[86] - The company incurred a financial asset impairment loss of RMB 73,194,000 in 2024, down from RMB 180,700,000 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 exchange rate fluctuation reserve improved to RMB 29,592,000 in 2024 from a negative RMB 31,915,000 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] Corporate Governance and Strategic Changes - The company's CEO and controlling shareholder, Wang Huiwu, increased his shareholding through open market transactions from January 16 to February 29, 2024[11] - The company changed its name from "Hope Education Group Co., Ltd." to "XJ International Holdings Co., Ltd." effective February 8, 2024[14] - The company issued zero-coupon convertible bonds due in 2026, with details disclosed on February 29, 2024[14] - A claimed default event related to convertible bonds occurred on March 2, 2024, with disclosures made on March 4, 2024[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[17] - The company received a statutory demand for debt repayment from the legal representatives of the convertible bond creditors on March 5, 2024[17] - 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 appointed Deloitte Consulting (Hong Kong) Limited as a restructuring advisor on June 12, 2024[17] - 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 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 has adopted new and revised International Financial Reporting Standards (IFRS) accounting standards for the current year's financial statements[98] Segment Performance - Local education segment revenue increased to RMB 3,339,764 thousand in 2024, up from RMB 3,230,475 thousand in 2023[101][103] - International education segment revenue grew to RMB 392,302 thousand in 2024, compared to RMB 351,157 thousand in 2023[101][103] - Total revenue for 2024 reached RMB 3,732,066 thousand, up from RMB 3,581,632 thousand in 2023[101][103] - Fair value gain on convertible bonds for 2024 was RMB 186,516 thousand, compared to a loss of RMB 228,654 thousand in 2023[101][103] - Total other income and gains for 2024 were RMB 274,836 thousand, down from RMB 297,913 thousand in 2023[108] Miscellaneous - The company acquired a 350-acre land use right in Guilin Economic and Technological Development Zone for project development[10] - The company plans to focus on improving the quality of talent cultivation and enhancing sustainable development capabilities[25] - The company's total reserves, including statutory surplus and retained earnings, grew to RMB 9,150,974,000 in 2024 from RMB 8,438,906,000 in 2023[84]

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].