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].

Financial Performance - Revenue for the six months ended February 28, 2021, was RMB 1,183.43 million, representing a 35.9% increase from RMB 870.63 million for the same period in 2020[26]. - Gross profit for the same period was RMB 641.47 million, up 40.3% from RMB 457.33 million in 2020[26]. - Adjusted net profit reached RMB 546.71 million, a 42.8% increase compared to RMB 382.93 million in the previous year[26]. - Adjusted gross profit margin improved to 56.1%, up from 55.2% in the previous year[26]. - Adjusted net profit margin increased to 46.2%, compared to 44.0% in the previous year[26]. - The company achieved revenue of RMB 1.183 billion for the six months ended February 28, 2021, representing a year-on-year growth of 35.9%[32]. - Adjusted net profit for the same period was RMB 546.71 million, an increase of 42.8% compared to RMB 382.93 million in the previous year[32]. - The adjusted gross margin improved to 56.1%, expanding by 89.7 basis points year-on-year, while the adjusted net margin reached 46.2%, an increase of 221 basis points[32]. - The company reported a profit before tax of RMB 564,065 thousand, representing a 49.2% increase compared to RMB 377,871 thousand in the prior year[108]. - The net profit for the period was RMB 477,833 thousand, an increase of 43.1% from RMB 333,773 thousand in the previous year[108]. Student Enrollment and Growth - The number of new enrollments increased by 49.3% to 72,830 from 48,789 in the previous year[26]. - Total enrolled students rose to 196,747, marking a 40.4% increase from 140,125 in the prior year[26]. - A total of 71,746 new students were enrolled for the 2020-2021 academic year, marking a growth of 47.05% compared to the previous year[36]. - The total number of enrolled students increased to 196,747 in 2021, up 40.41% from 140,125 in 2020[57]. - The number of undergraduate students rose by 38.63% to 98,788, while the number of vocational college students increased by 32.32% to 80,225[57]. - The technician education segment saw a significant growth of 115.35%, reaching 17,734 students[57]. Acquisitions and Institutional Growth - The company acquired two new institutions during the year, contributing to the increase in student numbers[28]. - The company completed the acquisition of several institutions, including Nanchang Film and Television Communication Vocational College and Nanchang University Gongqing College, enhancing its educational network[32][36]. - The group acquired four new institutions, enhancing its educational offerings and management capabilities[56]. - The company completed the acquisition of Shinawatra University in Thailand, which offers a range of programs including undergraduate and postgraduate degrees, enhancing its international presence[64]. - The company also reached an agreement to acquire Jinken Vocational and Technical College, further expanding its network in Jiangsu province[65]. - The group acquired 100% equity of INTI Education Holdings Sdn. Bhd., expanding its international education services[118]. Financial Position and Liabilities - The group's total cash and bank balances as of February 28, 2021, amounted to RMB 3,011.64 million, with cash and cash equivalents at RMB 2,500.86 million[76]. - The group's total liabilities to equity ratio as of February 28, 2021, was approximately 66.2%, up from 54.8% as of August 31, 2020[83]. - The net debt to equity ratio increased from -5.3% as of August 31, 2020, to 17.6% as of February 28, 2021, primarily due to continued investments in educational facilities and acquisitions[82]. - The group reported total liabilities increased to RMB 8,952,564,000 as of February 28, 2021, compared to RMB 6,729,662,000 as of August 31, 2020[122]. - The company reported a total of RMB 1,724,875,000 in current liabilities related to other payables and accrued expenses, an increase from RMB 1,307,621,000 in the previous year[155]. Operational Efficiency and Quality Improvement - The company continues to focus on expanding its educational offerings and enhancing operational efficiency[29]. - The company plans to enhance the quality of education by strengthening its teaching staff through a "Strong Foundation" initiative over the next 2-3 years[33]. - The company aims to enhance its brand reputation and student employment satisfaction through improved teaching quality and expanded employment services[62]. - The group has a strong emphasis on expanding its educational offerings and enhancing the quality of its programs across various disciplines[37]. - The company plans to continue enhancing the quality of talent cultivation and expand its educational scale through selective mergers, acquisitions, and partnerships[62]. Cash Flow and Investments - The company reported a net cash outflow from investing activities of RMB 2,339,599 thousand, compared to an inflow of RMB 96,290 thousand in the same period last year, indicating a substantial increase in investments[114]. - The company incurred financing cash inflows of RMB 1,823,250 thousand, compared to RMB 580,000 thousand in the previous year, showing a rise of 214.5%[114]. - The company has capital commitments of RMB 1,535.58 million as of February 28, 2021, compared to RMB 2,172.09 million as of August 31, 2020[75]. - The group has ongoing capital commitments for property, plant, and equipment amounting to RMB 1,135,585,000 as of February 28, 2021[183]. Related Party Transactions - The group received RMB 5,134,000 for services provided to related parties in the six months ending February 28, 2021, compared to RMB 2,394,000 in the same period of 2020, indicating a significant increase of 114%[192]. - The total receivables from related parties amounted to RMB 162,476,000 as of February 28, 2021, down from RMB 344,608,000 as of August 31, 2020, reflecting a decrease of 53%[193]. - The group reported a total of RMB 210,843,000 in payables to related parties as of February 28, 2021, compared to RMB 21,694,000 as of August 31, 2020, showing a substantial increase[194]. Shareholder Information - The company has a total of 7,293,802,646 shares issued as of February 28, 2021[94]. - Wang Huiwu holds a 47.45% equity interest in the company, while Wang Degeng holds 48.03% through spouse-related interests[93]. - The company has granted share options to 321 participants under the 2018 pre-IPO share option plan[102]. - The company did not declare an interim dividend for the reporting period ending February 29, 2020[88].

2020 年度報告 2020 Annual Report 年度報告 Hope Education Group Co., Ltd. 希望教育集團有限公司 （於開曼群島註冊成立的有限公司） 股份代號：1765 | --- | --- | |-------|------------------| | | | | 目 | 錄 | | 頁次 | | | | | | 2 | 公司資料 | | 4 | 我們的學校 | | 7 | 主席報告 | | 9 | 財務及經營摘要 | | 11 | 管理層討論與分析 | | 34 | 董事及高級管理層 | 44 77 94 117 董事會報告 企業管治報告 環境、社會及管治報告 獨立核數師報告 131 財務報表附註 233 釋義 公司資料 | --- | --- | --- | |---------------------------|-----------------------------------------|-------| | 董事會 | 授權代表 | | | 執行董事 | 李濤先生 梁頴嫻女士 | | | 徐昌俊先生 （董事長） | | | | 汪輝武先生 （首席執行官 ...

Financial Performance - Revenue for the six months ended February 29, 2020, was RMB 870.63 million, an increase of 46.1% from RMB 595.92 million for the same period in 2019[11]. - Adjusted gross profit for the same period was RMB 480.68 million, representing a 57.6% increase compared to RMB 305.05 million in 2019[11]. - Adjusted net profit for the six months was RMB 382.93 million, reflecting a 67.2% increase from RMB 229.03 million in 2019[11]. - The adjusted net profit margin improved to 44.0%, compared to 38.4% in the previous year[11]. - The financial results indicate a strong growth trajectory and effective integration of newly acquired institutions[12]. - For the six months ended February 29, 2020, the company achieved revenue of RMB 870 million, representing a year-on-year growth of 46.1%[17]. - The adjusted gross profit margin for the reporting period was 55.2%, up by 4% from the previous year[17]. - The company’s net profit for the six months ended February 29, 2020, was RMB 333.77 million, an increase of RMB 183.25 million or 121.7% compared to the prior period, with a net profit margin of 38.3%[48]. - The group’s profit before tax for the six months ended February 29, 2020, was RMB 333,599,000, compared to RMB 243,306,000 for the same period in 2019, representing an increase of approximately 37.1%[116]. Enrollment and Student Growth - The total number of new enrollments reached 48,789, a significant increase of 57.3% from 31,025 in the previous year[11]. - Total enrolled students as of February 29, 2020, was 140,125, up 62.9% from 86,033 in the previous year[11]. - The total number of enrolled students reached 140,125 as of February 29, 2020, an increase of 54,092 or 62.87% compared to 86,033 in 2019[41]. - The undergraduate student population increased by 83.73%, from 38,784 in 2019 to 71,259 in 2020[41]. - For the 2019-2020 academic year, the group enrolled 48,789 new students, representing a growth of 57.3% compared to the previous year, with total full-time students exceeding 140,000[24]. Acquisitions and Strategic Expansion - The company acquired several institutions, contributing 10,527 students to the total enrollment figure[13]. - The company acquired five new institutions, expanding its total to 14 schools, including 5 undergraduate and 7 vocational colleges[17]. - The company plans to establish three new colleges in Chongqing, Jiangxi, and Gansu, with enrollment expected to start in 2021[17]. - A partnership with Mahidol University in Thailand was initiated to enhance international education offerings[17]. - The company signed an acquisition agreement for INTI International University in Malaysia, aiming to provide comprehensive educational programs from undergraduate to doctoral levels[19]. - The company plans to continue expanding its educational offerings and enhancing its market presence through strategic acquisitions[12]. - The group completed the acquisition of six entities under Yinchuan Group during the reporting period, including Yinchuan Energy College and Yinchuan University Vocational Skills Training Center[184]. Government Policies and Market Opportunities - The Chinese government is implementing policies to expand higher education enrollment, providing growth opportunities for the company in the private higher education sector[20]. - The group aims to benefit from government policies promoting vocational education, which are expected to create a broader space for private education development[43]. Financial Health and Cash Flow - As of February 29, 2020, the group's total cash, bank balances, and structured deposits amounted to RMB 2,269.79 million, with cash and cash equivalents at RMB 1,097.42 million, down from RMB 1,690.42 million as of December 31, 2019[59]. - The total outstanding bank loans and other borrowings as of February 29, 2020, was RMB 2,496.03 million, a decrease from RMB 2,596.89 million as of December 31, 2019[60]. - The current ratio as of February 29, 2020, was 1.04, compared to 1.12 as of December 31, 2019, indicating a slight decline in liquidity[61]. - The net debt to equity ratio increased from -5.6% as of December 31, 2019, to 4.9% as of February 29, 2020, primarily due to continued investments in educational facilities and equipment[62]. - The company plans to balance rapid development with refined management to ensure sustainable growth and continuous development of faculty and staff[44]. - The company believes it can meet future working capital needs through a combination of cash flow from operations, bank loans, and other financing from capital markets[71]. Operational Efficiency and Cost Management - The overall utilization rate of school facilities improved to 82% in 2020, up from 80% in 2019[42]. - Employee benefits expenses increased to RMB 241,692,000 for the six months ended February 29, 2020, from RMB 165,969,000 in 2019, reflecting a growth of 45.5%[115]. - The total tax expense for the period was RMB 44,098,000, significantly higher than RMB 14,763,000 in the previous year, marking an increase of approximately 198.5%[112]. - The group’s total cost of services provided was RMB 413,297,000, up from RMB 279,139,000, representing an increase of 48.0%[115]. Shareholder Information and Corporate Governance - The company has a diverse ownership structure with multiple investment holding companies involved[80]. - The major shareholders include Hope Education Investment Limited with a 62.07% stake and Maysunshine Limited with a 62.07% stake[78]. - The board members hold significant stakes, with Wang Huiwu owning approximately 62.07% and Wang Degeng owning approximately 62.70% of the company's shares[74][75]. - The company did not recommend any interim dividend for the reporting period[68]. Related Party Transactions - The group has established significant relationships with various related parties, including Guizhou University of Science and Technology and Sichuan Tequ Group, which are involved in various transactions[155]. - The total procurement costs from related parties amounted to RMB 104,620,000 in 2020, compared to RMB 18,744,000 in 2019, indicating a significant increase[157]. - The group reported receivables from related parties of RMB 332,623,000 as of February 29, 2020, an increase from RMB 305,978,000 at the end of 2019[162]. Stock Options and Equity - As of February 29, 2020, there are 441,422,454 unexercised stock options under the pre-IPO stock option plan, which represents approximately 6.5% of the company's issued shares[170]. - The company recognized stock option expenses of RMB 8,192,000 during the period, with a total of 5,000,000 stock options exercised, resulting in an increase in share capital of RMB 6,427,000[170].