截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國銀杏教育集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01851 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | 本月底法定/註冊股本總額： HKD 10,000,000 FF301 股份發行人及根據《上市規則 ...

Core Viewpoint - As of July 18, 160 stocks reached their 52-week highs, with notable performances from China New Economy Investment (00080), Aoyuan Group Equity (02905), and Zhong An Holdings Group (08462) showing high growth rates of 288.89%, 55.28%, and 50.00% respectively [1][2]. Summary by Category 52-Week High Performers - China New Economy Investment (00080) closed at 0.440, with a peak price of 0.700, achieving a growth rate of 288.89% [2]. - Aoyuan Group Equity (02905) closed at 0.218, with a peak price of 0.250, achieving a growth rate of 55.28% [2]. - Zhong An Holdings Group (08462) closed at 0.221, with a peak price of 0.228, achieving a growth rate of 50.00% [2]. - Other notable performers include Hualian International (00969) with a growth rate of 40.13% and Zhongke Bio (01237) with a growth rate of 37.25% [2]. Additional High Performers - Wanma Holdings (06928) closed at 0.550 with a growth rate of 30.43% [2]. - Lepu Biopharma-B (02157) closed at 7.940 with a growth rate of 24.54% [2]. - Other stocks with significant growth include ZhiJianYueDong (06860) at 17.14% and China Jindian Group (08281) at 17.12% [2]. 52-Week Low Performers - The document also lists stocks that reached their 52-week lows, with XI Ernan CO-U (09311) showing a decline of 16.10% [6]. - Other notable declines include XI Ernan CO (07311) at -12.62% and Haotian International Construction Investment (01341) at -5.70% [6].

Core Viewpoint - The stock of Yinxing Education (01851.HK) has shown a significant increase, reaching a new high, indicating positive market sentiment and potential growth in the education sector [1]. Group 1: Company Overview - Yinxing Education Group Limited was established on March 23, 2018, in the Cayman Islands as an exempted company and serves as an investment holding company [1]. - The company operates as a higher education service provider in Sichuan Province, focusing on hotel management and vocational training [2]. Group 2: Historical Development - The group's history dates back to 2002 when it was founded by Mr. Fang, who aimed to provide higher education services tailored to modern service industry skills [2]. - In 2010, the Chengdu Yinxing Hotel Vocational Skills Training School was established, and in 2018, the group restructured to gain control over the Chengdu Information Engineering University Yinxing Hotel Management College [2]. - By April 2020, the group successfully transitioned the college into a private higher education institution, renaming it Chengdu Yinxing Hotel Management College [2]. Group 3: Educational Philosophy and Goals - The group adheres to the educational philosophy of "service cultivation and integration of knowledge and action," focusing on hotel management as its specialty [3]. - It aims to cultivate high-end application-oriented talents with professional knowledge and practical skills required in the modern service industry, aspiring to set standards for talent development in China's hotel management sector [3].

Financial Performance - The company's revenue for the fiscal year ended December 31, 2024, was approximately RMB 372.7 million, an increase of about 5.0% compared to RMB 354.9 million in 2023[9]. - The gross profit for the same period was RMB 209.96 million, with a gross margin of 56.3%, down from 60.1% in 2023[9]. - The net profit for the year was RMB 153.21 million, resulting in a net profit margin of 41.1%, slightly down from 41.7% in 2023[9]. - Tuition revenue for the year reached RMB 325.2 million, an increase of 7.2% from RMB 303.4 million in the previous year[25]. - The number of graduates increased by 18.0% to approximately 5,397 in June 2024, up from 4,572 in the previous year[20]. - The sales cost for the year was approximately RMB 162.7 million, an increase of 14.7% from RMB 141.8 million in the previous year[27]. - Gross profit for the year was approximately RMB 210.0 million, with a gross margin of 56.3%, down from 60.1% in the previous year[28]. - The administrative expenses for the year amounted to approximately RMB 56.5 million, an increase from RMB 52.9 million in the previous year[30]. - The net profit for the year increased by approximately 3.5% to about RMB 153.2 million, compared to RMB 148.0 million in the previous year[35]. Assets and Liabilities - The total non-current assets increased to RMB 1,303.39 million in 2024 from RMB 1,234.87 million in 2023[10]. - Current assets rose to RMB 283.06 million in 2024, compared to RMB 224.53 million in 2023[10]. - The company's total liabilities decreased, with a debt-to-equity ratio of 4.1% in 2024, down from 15.8% in 2023[10]. - As of December 31, 2024, the group's cash and cash equivalents amounted to RMB 271.7 million, an increase of approximately 26.0% from RMB 215.7 million in 2023[36]. - The total borrowings of the group as of December 31, 2024, were RMB 309.8 million, down from RMB 339.8 million in 2023, indicating a reduction of approximately 8.8%[37]. - The debt-to-equity ratio as of December 31, 2024, was 4.1%, significantly lower than 15.8% in 2023, primarily due to a decrease in total borrowings and an increase in cash and cash equivalents[38]. - The net current liabilities as of December 31, 2024, were approximately RMB 174.5 million, an increase of about 3.6% from RMB 168.4 million in 2023[39]. - The capital commitments not yet provided for as of December 31, 2024, were approximately RMB 17.7 million, down from RMB 43.5 million in 2023[42]. Employment and Workforce - The employment rate for undergraduate graduates reached 89.9% in 2024, reflecting the effectiveness of the company's educational methods[14]. - The total number of enrolled students at Yinxing Academy for the 2024/2025 academic year is 20,745, a slight increase of 0% from 20,728 in the previous year[22]. - The group employed 1,106 staff as of December 31, 2024, an increase from 960 staff in 2023, reflecting a growth in workforce[46]. - As of December 31, 2024, the employee gender ratio is 1.9:1, indicating a commitment to gender diversity in the workforce[194]. Strategic Initiatives - The company plans to focus on training courses in culinary arts, baking skills, bartending, and coffee-making, capitalizing on the growing demand for vocational education in the hotel industry[15]. - The company aims to enhance market penetration and improve teaching quality while establishing itself as a standard setter in China's hotel education sector[26]. - The company is planning market expansion into Southeast Asia, targeting a 10% market share within the next two years[66]. - There are ongoing discussions regarding potential mergers and acquisitions to strengthen the company's market position[66]. - The company has outlined a future outlook with a projected revenue growth of 20% for the next fiscal year[66]. Governance and Compliance - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a diverse governance structure[182]. - The company has adopted a corporate governance code to ensure effective accountability and risk management[177]. - The independent non-executive directors confirmed their independence according to listing rules[161]. - The company has established a whistleblowing mechanism to ensure compliance and accountability within its operations[179]. - The board has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with clear written terms of reference[200]. - The company has complied with environmental, social, and governance reporting guidelines as per listing rules[171]. - The company is monitoring updates to the Foreign Investment Law and will seek legal advice to ensure compliance with all relevant regulations[153]. Risks and Challenges - The company faces various operational risks, including maintaining enrollment numbers and managing capital expenditure plans[84]. - The company faces significant risks related to contractual arrangements, including potential penalties from the Chinese government if agreements are deemed non-compliant with local laws[117]. - The ability of consolidated affiliated entities to operate in the private education sector may be subject to regulatory restrictions, impacting overall business performance[117]. - The company may lose access to important assets held by consolidated affiliated entities if any of them undergo liquidation or winding-up procedures, negatively affecting revenue generation[117]. Shareholder Information - The company's reserves available for distribution to shareholders as of December 31, 2024, amount to approximately RMB 432.4 million[73]. - The board has decided not to recommend a final dividend for the fiscal year ending December 31, 2024[67]. - The total number of issued shares as of December 31, 2024, is 500,000,000[95]. - Mr. Fang holds 366,562,500 shares, representing 73.3% of the company's equity[93]. - Mr. Tian holds 8,437,500 shares, representing 1.7% of the company's equity[93]. - GreenTree Hospitality Group holds 41,336,000 shares, representing 8.3% of the total issued shares[97]. Related Party Transactions - The company has established multiple ongoing agreements and arrangements with related parties in its daily operations, which constitute continuing connected transactions under listing rules[111]. - The company has not engaged in any significant transactions with its controlling shareholders during the year[92]. - The company has complied with the disclosure requirements for related party transactions as per the listing rules[147]. - There were no related party transactions that required disclosure under the listing rules for the year[149]. Environmental and Social Responsibility - The company is committed to social responsibility and sustainable growth, with no major environmental law violations reported[77]. - The company adheres to a mission of "achieving students and serving society," focusing on corporate social responsibility and creating value for stakeholders[179].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of RMB 354,862,000, a decrease of 4.4% compared to RMB 372,687,000 in 2023[3] - Gross profit for the same period was RMB 213,110,000, slightly down from RMB 209,963,000, indicating a gross margin of approximately 60%[3] - Net profit for the year was RMB 148,032,000, compared to RMB 153,207,000 in the previous year, reflecting a decline of 3.8%[3] - Basic earnings per share rose to RMB 0.31 from RMB 0.30, representing a year-on-year increase of 3.3%[4] - The group's operating profit before tax was RMB 153,832,000 for the year, up from RMB 148,762,000 in 2023, indicating a growth of 3.6%[29] - The group's net profit for the reporting period increased by approximately 3.5% to about RMB 153.2 million, compared to RMB 148.0 million in 2023[68] Enrollment and Education Services - The number of enrolled students increased to 20,745 in 2024 from 20,728 in 2023, showing a marginal growth in student enrollment[3] - The total number of enrolled students at Yinxing College for the 2024/2025 academic year is 20,745, a slight increase from 20,728 in the previous year[49] - The number of graduates in June 2024 is approximately 5,397, representing an 18.0% increase from 4,572 graduates in the previous year[49] - The number of undergraduate degree programs offered has increased to 29 from 30 in the previous year, while the number of diploma programs remains at 24[51] Revenue Sources - Tuition fees accounted for RMB 325,181,000, representing a growth of 7.2% compared to RMB 303,394,000 in the previous year[19] - Accommodation fees for the reporting period are approximately RMB 27.1 million, an increase of 9.2% from RMB 24.9 million in the previous year[55] - The group recognized revenue of RMB 197,847,000 from contract liabilities at the beginning of the year, an increase from RMB 175,647,000 in 2023[22] - The group’s total contract liabilities as of December 31, 2024, were RMB 202,241,000, compared to RMB 198,569,000 in 2023, marking a 1.3% increase[21] Assets and Liabilities - Total assets increased to RMB 1,586,443,000 in 2024, up from RMB 1,459,398,000 in 2023, marking a growth of 8.7%[5] - Total liabilities decreased to RMB 648,534,000 in 2024 from RMB 674,696,000 in 2023, a reduction of 3.9%[6] - Cash and cash equivalents rose significantly to RMB 271,723,000 in 2024, compared to RMB 215,713,000 in 2023, an increase of 25.9%[5] - The group's debt as of December 31, 2024, was approximately RMB 309.8 million, down from RMB 339.8 million in 2023[71] - The group's current liabilities net amount was approximately RMB 174.5 million, an increase of about 3.6% from RMB 168.4 million in 2023[73] - The group's debt-to-equity ratio decreased to 4.1% as of December 31, 2024, from 15.8% in 2023[72] Taxation and Deferred Tax - The corporate income tax rate in China for the current year is 25%[33] - The group has not recognized any income tax expense for revenue from providing regular academic education services, resulting in zero income tax expense for 2023[34] - As of December 31, 2023, the group has recognized deferred tax assets of approximately RMB 6,552,000 related to tax losses carried forward[36] - The total tax losses available for carryforward as of December 31, 2023, amount to RMB 26,207,000, with a five-year carryforward period for subsidiaries in China[37] Corporate Governance and Compliance - The group has adopted new and revised standards that do not have a significant financial impact on its operations for the current reporting period[13] - The group has pledged assets totaling RMB 203.4 million as collateral for bank loans amounting to RMB 269.8 million[79] - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance during the reporting period[90] - The company maintained sufficient public float as required by listing rules during the reporting period[91] - The audit committee, consisting of three independent non-executive directors, has reviewed the annual performance during the reporting period[93] - The group's auditor, PwC, confirmed that the preliminary performance figures align with the audited consolidated financial statements[94] Future Plans and Market Strategy - The company continues to explore market expansion opportunities and new strategies to enhance its educational offerings[8] - The company aims to enhance market penetration and improve teaching quality to solidify its position in China's hotel education sector[58] - The company plans to actively develop overseas education and strengthen international cooperation with foreign educational institutions[58] Employee and Operational Insights - The group employed 1,106 staff as of December 31, 2024, an increase from 960 employees in 2023, with compensation policies aligned with market conditions and local regulations[80] - The group’s administrative expenses were approximately RMB 56.5 million, an increase from RMB 52.9 million in 2023[63] - There were no significant investments, acquisitions, or disposals involving subsidiaries or joint ventures during the reporting period[74] Dividends and Profit Retention - The board has resolved not to recommend any final dividend for the year ending December 31, 2024, similar to 2023, and plans to reinvest profits into expansion projects and business operations[82] - The group did not declare or pay any dividends for the years ended December 31, 2023, and 2024[40]

[Management Discussion and Analysis](index=5&type=section&id=管理層討論及分析) [Business Overview](index=5&type=section&id=業務概覽) The Group is a higher education and vocational training service provider in Sichuan Province, China, primarily operating the Yinxing Hotel Management College and a vocational training school, with student enrollment and total revenue increasing during the reporting period - The Group is a higher education service provider in Sichuan Province, with Yinxing Hotel Management College enrolling approximately **20,728 students** in the 2023/2024 academic year, an **8.3% increase** from the previous academic year[4](index=4&type=chunk) - In June 2024, a total of **5,397 students** graduated from Yinxing College, achieving an employment rate of **78.4%**[3](index=3&type=chunk) Revenue Details for the Period Ended June 30 | Item | 2024 H1 (RMB Thousands) | 2023 H1 (RMB Thousands) | Growth Rate | | :--- | :--- | :--- | :--- | | Tuition Fees | 180,219 | 159,946 | 12.7% | | Accommodation Fees | 13,739 | 12,195 | 12.7% | | Catering Service Fees | 1,803 | 3,567 | (49.5%) | | Others | 6,329 | 8,567 | (26.1%) | | **Total** | **202,090** | **184,275** | **9.7%** | [Outlook and Strategy](index=6&type=section&id=展望) The Group is confident in its future, aiming to consolidate its market position in hotel management education through strategies like increasing market penetration, expanding overseas operations, attracting quality faculty, and diversifying training programs, with the Naxi new campus expansion expected to be operational by the 2024 academic year - The Naxi new campus expansion project, primarily including student dormitories and supporting facilities, is expected to be operational by the **2024 academic year**[8](index=8&type=chunk) - Future development strategies include: - Consolidating market position and enhancing teaching quality - Actively expanding overseas operations and strengthening international cooperation - Continuously attracting and retaining quality faculty - Developing diversified training programs to increase revenue streams[7](index=7&type=chunk) [Financial Review](index=7&type=section&id=財務回顧) During the reporting period, the Group's revenue grew by 9.7% to RMB 202.1 million, driven by increased student enrollment and higher average tuition fees, with gross profit rising by 12.1% to RMB 130.5 million and profit for the period significantly increasing by 29.8% to RMB 106.7 million due to reduced finance costs Key Financial Indicators for H1 2024 | Indicator | 2024 H1 (RMB Millions) | 2023 H1 (RMB Millions) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 202.1 | 184.3 | +9.7% | | Gross Profit | 130.5 | 116.4 | +12.1% | | Gross Margin | 64.6% | 63.2% | +1.4pp | | Profit for the Period | 106.7 | 82.2 | +29.8% | - Revenue growth was primarily attributable to the increase in enrolled students and higher average tuition and accommodation fees in the 2023/2024 academic year[9](index=9&type=chunk) - Net finance costs significantly decreased from **RMB 10.9 million** in the prior period to **RMB 1.3 million**, mainly due to reduced interest expenses on borrowings[16](index=16&type=chunk) [Financial Resources Review](index=9&type=section&id=財務資源回顧) As of the end of the reporting period, the Group's cash and cash equivalents were RMB 74.4 million, a 65.5% decrease from the beginning of the period, with the gearing ratio increasing from 15.8% to 30.3%, and total borrowings amounting to approximately RMB 344.8 million, with capital commitments of RMB 33.8 million primarily related to the Naxi new campus expansion - As of June 30, 2024, cash and cash equivalents were approximately **RMB 74.4 million**, a **65.5% decrease** from **RMB 215.7 million** at the end of 2023[19](index=19&type=chunk) - The gearing ratio (net debt/total equity) increased from **15.8%** at the end of 2023 to **30.3%** at the end of the reporting period[19](index=19&type=chunk) - As of June 30, 2024, construction in progress, buildings, land use rights, and tuition and accommodation fee receivables were pledged to secure bank borrowings of **RMB 304.8 million**[24](index=24&type=chunk) - Capital commitments amounted to approximately **RMB 33.8 million**, primarily related to the Naxi new campus expansion[21](index=21&type=chunk) [Employees and Remuneration Policy](index=10&type=section&id=僱員及薪酬政策) As of June 30, 2024, the Group had 1,088 employees, an increase from 960 at the end of 2023, offering competitive remuneration and benefits, participating in social insurance schemes, and maintaining good labor relations during the period - As of June 30, 2024, the Group had **1,088 employees**, an increase of **128** from **960** as of December 31, 2023[25](index=25&type=chunk) [Corporate Governance and Other Information](index=11&type=section&id=企業管治及其他資料) [Directors' and Chief Executive's Interests](index=11&type=section&id=董事及主要行政人員於股份、相關股份或債權證中的權益及淡倉) As of June 30, 2024, Mr. Fang Gongyu, Chairman of the Board, held 73.3% of the company's shares through controlled corporations, while Executive Director Mr. Tian Tao held 1.7% through controlled corporations Directors' Shareholding (as of June 30, 2024) | Director's Name | Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Fang Gongyu | Interest in controlled corporation | 366,562,500 | 73.3% | | Mr. Tian Tao | Interest in controlled corporation | 8,437,500 | 1.7% | [Major Shareholders' Interests](index=12&type=section&id=主要股東的權益及淡倉) Besides the directors, major shareholders include Vast Universe (wholly owned by Mr. Fang Gongyu, holding 73.3%) and his spouse Ms. Xiong Lan (deemed to have the same interest), as well as GreenTree Hospitality Group Ltd. (holding 8.3%) Major Shareholders' Shareholding (as of June 30, 2024) | Name | Capacity | Number of Shares (Long Position) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Vast Universe | Beneficial owner | 366,562,500 | 73.3% | | Ms. Xiong Lan | Spouse's interest | 366,562,500 | 73.3% | | GreenTree Hospitality Group Ltd. | Beneficial owner | 41,336,000 | 8.3% | [Corporate Governance Practices](index=13&type=section&id=企業管治) The company is committed to maintaining high standards of corporate governance, complying with most provisions of the Corporate Governance Code during the reporting period, with one deviation: the roles of Chairman and Chief Executive Officer are held by the same person (Mr. Fang Gongyu), which the Board believes provides strong and consistent leadership - The company deviated from Rule C.2.1 of the Corporate Governance Code regarding the separation of Chairman and Chief Executive Officer roles. Currently, both positions are held by **Mr. Fang Gongyu**, which the Board believes provides strong and consistent leadership[35](index=35&type=chunk) [Interim Dividend](index=15&type=section&id=中期股息) The Board resolved not to declare any interim dividend for the six months ended June 30, 2024 - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2024[38](index=38&type=chunk)[76](index=76&type=chunk) [Interim Condensed Consolidated Financial Statements](index=16&type=section&id=中期合併財務報表) [Interim Condensed Consolidated Statement of Comprehensive Income](index=16&type=section&id=中期簡明合併全面收益表) For the six months ended June 30, 2024, the Group recorded revenue of RMB 202.1 million, a 9.7% year-on-year increase, with profit for the period at RMB 106.6 million, up 29.8% year-on-year, and basic and diluted earnings per share at RMB 0.21 Summary of H1 2024 Consolidated Statement of Comprehensive Income | Item (RMB Thousands) | 2024 H1 (Unaudited) | 2023 H1 (Unaudited) | | :--- | :--- | :--- | | Revenue | 202,090 | 184,275 | | Gross Profit | 130,465 | 116,409 | | Operating Profit | 108,424 | 93,492 | | Profit for the Period | 106,626 | 82,158 | | Basic and Diluted Earnings Per Share (RMB) | 0.21 | 0.16 | [Interim Condensed Consolidated Statement of Financial Position](index=17&type=section&id=中期簡明合併資產負債表) As of June 30, 2024, the Group's total assets were RMB 1.367 billion, a decrease from the beginning of the period, with total liabilities at RMB 475.6 million, total equity at RMB 891.3 million, and net current liabilities amounting to approximately RMB 141 million Summary of Consolidated Statement of Financial Position | Item (RMB Thousands) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 1,278,987 | 1,234,870 | | Current assets | 87,961 | 224,528 | | **Total assets** | **1,366,948** | **1,459,398** | | **Equity and Liabilities** | | | | Total equity | 891,328 | 784,702 | | Non-current liabilities | 246,598 | 281,721 | | Current liabilities | 229,022 | 392,975 | | **Total liabilities** | **475,620** | **674,696** | [Interim Condensed Consolidated Statement of Changes in Equity](index=18&type=section&id=中期簡明合併權益變動表) As of June 30, 2024, total equity attributable to owners of the company was RMB 891.3 million, with the increase primarily resulting from the RMB 106.6 million profit recorded during the reporting period - As of January 1, 2024, total equity was **RMB 784.7 million**. Profit and total comprehensive income for the period amounted to **RMB 106.6 million**, increasing total equity to **RMB 891.3 million** as of June 30, 2024[47](index=47&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=19&type=section&id=中期簡明合併現金流量表) During the reporting period, net cash outflows were recorded from operating, investing, and financing activities, amounting to RMB 77.4 million, RMB 63.0 million, and RMB 1.0 million, respectively, resulting in a net decrease in cash and cash equivalents of RMB 141.3 million, with an ending balance of RMB 74.4 million Summary of H1 2024 Consolidated Statement of Cash Flows | Item (RMB Thousands) | 2024 H1 (Unaudited) | 2023 H1 (Unaudited) | | :--- | :--- | :--- | | Net cash used in operating activities | (77,360) | (64,882) | | Net cash used in investing activities | (62,985) | (50,762) | | Net cash used in financing activities | (979) | (38,474) | | **Net decrease in cash and cash equivalents** | **(141,324)** | **(154,118)** | | Cash and cash equivalents at end of period | 74,352 | 47,293 | [Notes to the Interim Condensed Consolidated Financial Information](index=20&type=section&id=中期簡明合併財務資料附註) [Basis of Preparation and Accounting Policies](index=20&type=section&id=2%20編製基準) This interim condensed consolidated financial information is prepared in accordance with HKAS 34 'Interim Financial Reporting' and is unaudited, with the Group having adopted new and revised standards effective for the reporting period, which had no significant impact on accounting policies - This interim financial information has been prepared in accordance with Hong Kong Accounting Standard ('HKAS') 34 'Interim Financial Reporting' and is unaudited[49](index=49&type=chunk) - The Group has adopted several revised standards effective from January 1, 2024, which did not require changes in accounting policies or retrospective adjustments[51](index=51&type=chunk)[52](index=52&type=chunk) [Financial Risk Management](index=22&type=section&id=4%20財務風險管理) The Group faces market risks (foreign exchange, interest rate), credit risk, and liquidity risk, but management believes there is no significant liquidity risk due to expected operating cash flows and ongoing bank support, with total contractual undiscounted cash flows for financial liabilities amounting to approximately RMB 472 million as of the reporting period end - The Group primarily faces market risks (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk, with no changes in risk management policies since year-end[54](index=54&type=chunk) - Management believes there is no significant liquidity risk given expected operating cash flows and continuous bank support. New academic year tuition fee proceeds of **RMB 320 million** are expected by the end of September 2024[55](index=55&type=chunk) [Revenue and Segment Information](index=24&type=section&id=6%20分部資料) The Group primarily operates in a single segment of private higher education services in China, with total revenue of RMB 202.1 million during the reporting period, tuition fees being the largest component at RMB 180.2 million, and most revenue recognized over time, while catering service fees are recognized at a point in time - The Group's business is aggregated into a single reportable segment, which is the provision of private higher education services in China[59](index=59&type=chunk) Revenue by Type and Recognition Timing (RMB Thousands) | Item | 2024 H1 | 2023 H1 | Recognition Method | | :--- | :--- | :--- | :--- | | Tuition Fees | 180,219 | 159,946 | Over time | | Accommodation Fees | 13,739 | 12,195 | Over time | | Others | 6,329 | 8,567 | Over time | | Catering Service Fees | 1,803 | 3,567 | At a point in time | | **Total** | **202,090** | **184,275** | | - Revenue recognized during the reporting period from contract liabilities balances included at the beginning of the year was **RMB 197 million**[66](index=66&type=chunk) [Property, Plant and Equipment](index=32&type=section&id=14%20物業、廠房及設備) As of June 30, 2024, the net book value of property, plant and equipment was RMB 1.211 billion, an increase from RMB 1.156 billion at the beginning of the period, with construction in progress having a net book value of RMB 284 million, primarily for buildings under construction in China Changes in Net Book Value of Property, Plant and Equipment (RMB Thousands) | Item | January 1, 2024 | Additions | Depreciation Expense | Net Book Value at Period End (June 30, 2024) | | :--- | :--- | :--- | :--- | :--- | | Buildings | 869,418 | 15,851 | (10,583) | 873,516 | | Construction in progress | 233,061 | 62,765 | – | 283,789 | | **Total** | **1,156,047** | **75,699** | **(19,941)** | **1,210,629** | - As of the end of the reporting period, construction in progress and buildings with a total book value of approximately **RMB 210 million** were pledged to secure bank borrowings[84](index=84&type=chunk) [Borrowings](index=38&type=section&id=19%20借款) As of June 30, 2024, the Group's total borrowings were RMB 344.8 million, slightly higher than RMB 339.8 million at the beginning of the period, with RMB 110 million as current borrowings and RMB 234.8 million as non-current borrowings, and most borrowings being secured bank loans Borrowings Structure (RMB Thousands) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current borrowings | 110,000 | 70,000 | | Non-current borrowings | 234,790 | 269,790 | | **Total borrowings** | **344,790** | **339,790** | - Long-term bank borrowings are secured by land use rights, construction in progress, buildings, and company guarantees[91](index=91&type=chunk) - The weighted average effective interest rate for bank borrowings decreased from **5.06%** at the end of 2023 to **3.40%** as of June 30, 2024[92](index=92&type=chunk) [Commitments and Related Party Transactions](index=39&type=section&id=20%20承擔) As of the end of the reporting period, the Group had capital commitments of RMB 33.8 million, primarily related to property, plant and equipment, with minor related party transactions for goods and services occurring with companies controlled by the controlling shareholder during the period - As of June 30, 2024, contracted but unprovided capital commitments amounted to approximately **RMB 33.8 million**, mainly related to property, plant and equipment[95](index=95&type=chunk) - Total transactions with related parties (primarily companies controlled by the controlling shareholder) amounted to **RMB 12 thousand** during the reporting period, significantly lower than **RMB 3.533 million** in the prior year[101](index=101&type=chunk)

[Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total revenue increased by 9.7% to RMB 202 million, with gross profit rising 12.1% to RMB 130 million, leading to a 29.8% increase in profit for the period to RMB 107 million and basic EPS of RMB 0.21 Statement of Comprehensive Income Summary (RMB thousands) | Metric | Six Months Ended June 30, 2024 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue** | **202,090** | **184,275** | **+9.7%** | | Gross Profit | 130,465 | 116,409 | +12.1% | | Operating Profit | 108,424 | 93,492 | +16.0% | | **Profit for the Period** | **106,626** | **82,158** | **+29.8%** | | Profit Attributable to Owners of the Company | 106,626 | 82,158 | +29.8% | | **Basic and Diluted Earnings Per Share (RMB yuan)** | **0.21** | **0.16** | **+31.3%** | - Net finance costs significantly decreased from **RMB 10.85 million** in the same period last year to **RMB 1.35 million** this year, primarily due to reduced interest expenses on borrowings[2](index=2&type=chunk) [Interim Condensed Consolidated Balance Sheet](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2024, total assets decreased to RMB 1.367 billion due to lower cash, while total liabilities fell to RMB 476 million primarily from reduced contract liabilities, and total equity increased to RMB 891 million Balance Sheet Summary (RMB thousands) | Balance Sheet Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **1,366,948** | **1,459,398** | **-6.3%** | | Non-current Assets | 1,278,987 | 1,234,870 | +3.6% | | Current Assets | 87,961 | 224,528 | -60.8% | | **Total Liabilities** | **475,620** | **674,696** | **-29.5%** | | Non-current Liabilities | 246,598 | 281,721 | -12.5% | | Current Liabilities | 229,022 | 392,975 | -41.7% | | **Total Equity** | **891,328** | **784,702** | **+13.6%** | - The significant decrease in current assets was primarily due to cash and cash equivalents falling from **RMB 216 million** to **RMB 74 million**[3](index=3&type=chunk) - The significant decrease in current liabilities was mainly due to contract liabilities (pre-received tuition and accommodation fees) falling from **RMB 199 million** to **RMB 5.65 million**, as revenue from the previous academic year was recognized during the reporting period[3](index=3&type=chunk)[21](index=21&type=chunk) [Notes to the Interim Results](index=5&type=section&id=Notes%20to%20the%20Interim%20Results) [General Information, Basis of Preparation & Accounting Policies](index=5&type=section&id=General%20Information%2C%20Basis%20of%20Preparation%20%26%20Accounting%20Policies) The Group, primarily engaged in private higher education in China, prepares financial statements under HKAS 34, consistent with 2023 policies, with recent standard adoptions having no material impact - The Group is primarily engaged in providing private higher education services in China, with Mr. Fang Gongyu as the ultimate controlling shareholder[4](index=4&type=chunk) - During the reporting period, amendments to Hong Kong Accounting Standards No. 1, No. 7, No. 16, and others were adopted, but the Group was not required to change its accounting policies or make retrospective adjustments as a result[7](index=7&type=chunk)[8](index=8&type=chunk) [Financial Risk Management](index=7&type=section&id=Financial%20Risk%20Management) The Group manages market, credit, and liquidity risks, and despite net current liabilities of RMB 135 million, management anticipates no significant liquidity risk given expected tuition fee receipts of RMB 320 million - To manage liquidity risk, the Group monitors and maintains adequate cash levels, with management expecting future operating cash flows and continued bank support to sufficiently cover funding needs, posing no significant liquidity risk[12](index=12&type=chunk) - The Group expects to receive approximately **RMB 320 million** in tuition fee revenue for the 2024 academic year by the end of September 2024, which will significantly improve its liquidity position[12](index=12&type=chunk) [Segment Information](index=9&type=section&id=Segment%20Information) The Group operates as a single reportable segment, primarily providing private higher education services in China - The Group's business is classified as a single reportable segment, which is the provision of private higher education services in China[18](index=18&type=chunk) [Revenue](index=9&type=section&id=Revenue) Total revenue grew 9.7% to RMB 202 million, driven by a 12.7% increase in tuition and accommodation fees due to higher student enrollment, despite declines in catering and other income Revenue Breakdown (RMB thousands) | Revenue Source | First Half 2024 (RMB thousands) | First Half 2023 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Tuition Fees | 180,219 | 159,946 | +12.7% | | Accommodation Fees | 13,739 | 12,195 | +12.7% | | Catering Service Fees | 1,803 | 3,567 | -49.5% | | Others | 6,329 | 8,567 | -26.1% | | **Total** | **202,090** | **184,275** | **+9.7%** | - Tuition and accommodation fees are the Group's primary revenue sources, accounting for **96%** of total revenue[19](index=19&type=chunk) [Income Tax Expense](index=12&type=section&id=Income%20Tax%20Expense) Yinxing College, as a private non-enterprise unit, is exempt from corporate income tax on academic education services, leading to a minimal income tax expense of RMB 0.449 million - Based on past tax compliance confirmations, Yinxing College's income derived from providing formal academic education services is exempt from corporate income tax[31](index=31&type=chunk) - If Yinxing College chooses to register as a for-profit private school in the future, it may be subject to corporate income tax at a rate of **25%**[31](index=31&type=chunk) [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share increased by 31.3% to RMB 0.21, up from RMB 0.16, primarily due to higher net profit Earnings Per Share Summary | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Company (RMB thousands) | 106,626 | 82,158 | | Weighted Average Number of Ordinary Shares (thousands) | 500,000 | 500,000 | | **Basic and Diluted Earnings Per Share (RMB yuan)** | **0.21** | **0.16** | [Dividend](index=13&type=section&id=Dividend) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2024 - The Group neither paid nor declared any dividends during the reporting period, nor has it proposed any dividends subsequent to the period end[37](index=37&type=chunk)[91](index=91&type=chunk) [Details of Assets and Liabilities](index=14&type=section&id=Details%20of%20Assets%20and%20Liabilities) This section provides detailed information on the composition and changes of the Group's major assets and liabilities, including property, plant and equipment, and borrowings [Property, Plant and Equipment](index=15&type=section&id=Property%2C%20Plant%20and%20Equipment) Property, plant and equipment increased to RMB 1.211 billion due to ongoing investment in construction in progress, with RMB 3.161 million in borrowing interest capitalized - The net book value of construction in progress increased from **RMB 233 million** to **RMB 284 million**, primarily comprising buildings under construction in China[43](index=43&type=chunk) - During the reporting period, the Group capitalized **RMB 3.161 million** in borrowing interest, compared to zero in the same period last year[44](index=44&type=chunk) [Borrowings](index=19&type=section&id=Borrowings) Total borrowings slightly increased to RMB 345 million, with current borrowings rising to RMB 110 million, while the weighted average effective interest rate significantly decreased from 5.06% to 3.40% Borrowings Breakdown (RMB thousands) | Borrowing Classification | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Current Borrowings | 110,000 | 70,000 | | Non-current Borrowings | 234,790 | 269,790 | | **Total Borrowings** | **344,790** | **339,790** | - The weighted average effective interest rate for bank borrowings decreased from **5.06%** at December 31, 2023, to **3.40%** at June 30, 2024[56](index=56&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview and Outlook](index=23&type=section&id=Business%20Overview%20and%20Outlook) The Group, a Sichuan-based higher education provider, saw student enrollment grow 8.3% to 20,728, with the Naxi New Campus expansion due in 2024, and plans to consolidate market position, expand internationally, attract teachers, and diversify revenue - In the 2023/2024 academic year, Yinxing College's student enrollment increased by **8.3%** to approximately **20,728** students[67](index=67&type=chunk) - The Naxi New Campus expansion project is expected to be completed and operational by the **2024** academic year, providing additional student dormitories and supporting facilities[71](index=71&type=chunk) - Future development strategies include: - Consolidating market position in the hotel management industry - Actively expanding overseas education and international cooperation - Continuously attracting and retaining quality teachers - Developing training courses to diversify revenue sources[70](index=70&type=chunk) [Financial Review](index=25&type=section&id=Financial%20Review) Revenue grew 9.7% to RMB 202 million, driven by student enrollment and tuition increases, with gross margin improving to 64.6%, net finance costs significantly decreasing, and profit for the period rising 29.8% to RMB 107 million - Revenue growth of **9.7%** was primarily attributable to (i) a **12.7%** increase in tuition fees and (ii) a **12.7%** increase in accommodation fees, driven by higher student enrollment and increased average charges[72](index=72&type=chunk) - Gross margin increased from **63.2%** to **64.6%**, as revenue growth outpaced the increase in cost of sales[74](index=74&type=chunk) - Net finance costs significantly decreased from **RMB 10.9 million** to **RMB 1.3 million**, primarily due to reduced interest expenses on borrowings[79](index=79&type=chunk) - As a combined effect, profit for the period increased by **29.8%** to **RMB 106.7 million**[81](index=81&type=chunk) [Liquidity and Financial Resources](index=27&type=section&id=Liquidity%20and%20Financial%20Resources) Cash and cash equivalents significantly decreased by 65.5% to RMB 74.4 million, while the gearing ratio increased from 15.8% to 30.3% - Cash and cash equivalents decreased by **65.5%** from **RMB 215.7 million** to **RMB 74.4 million**[81](index=81&type=chunk) - The gearing ratio increased from **15.8%** at December 31, 2023, to **30.3%** at June 30, 2024[81](index=81&type=chunk) - As of June 30, 2024, the Group had approximately **RMB 209.6 million** in construction in progress and buildings, and **RMB 3.5 million** in land use rights pledged to secure bank borrowings of **RMB 304.8 million**[89](index=89&type=chunk) [Employee and Remuneration Policy](index=29&type=section&id=Employee%20and%20Remuneration%20Policy) The Group's employee count increased to 1,088, with remuneration policies based on market conditions and individual performance, and employees participating in social insurance schemes - As of June 30, 2024, the Group had **1,088** employees, compared to **960** at December 31, 2023[90](index=90&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) [Corporate Governance](index=29&type=section&id=Corporate%20Governance) The Company largely complied with the Corporate Governance Code, with the only deviation being the combined roles of Chairman and CEO, which the Board believes provides strong leadership - The Company deviated from Rule C.2.1 of the Corporate Governance Code, which stipulates that the roles of Chairman and Chief Executive Officer should be separate; currently, both positions are held by Mr. Fang Gongyu[92](index=92&type=chunk) [Share-related Information](index=30&type=section&id=Share-related%20Information) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, and sufficient public float was maintained - During the reporting period, neither the Company nor its subsidiaries engaged in any purchase, sale, or redemption of shares[93](index=93&type=chunk)

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 354,862,000, representing a 24% increase from RMB 286,193,000 in 2022[7] - Gross profit for the same period was RMB 213,110,000, up from RMB 162,235,000, indicating a significant growth in profitability[7] - Operating profit increased to RMB 163,403,000 from RMB 113,939,000, reflecting a 43% year-over-year growth[7] - Profit attributable to owners of the company for the year was RMB 148,032,000, compared to RMB 85,008,000 in the previous year, marking a 74% increase[7] - Basic and diluted earnings per share rose to RMB 0.30 from RMB 0.17, showing improved earnings performance[7] - The company reported a net finance cost of RMB 14,641,000, a reduction from RMB 28,735,000 in the prior year, indicating better financial management[7] - Net profit for the fiscal year was RMB 148.0 million, up from RMB 85.0 million in 2022, reflecting a net profit margin of 41.7%[36] - The group’s profit increased by approximately 74.1% to about RMB 148.0 million for the year, compared to RMB 85.0 million in 2022[84] - The group’s total liabilities decreased by approximately 39.4% to RMB 168.4 million, down from RMB 277.9 million in the previous year[88] - The company’s debt-to-equity ratio as of December 31, 2023, was 15.8%, down from 31.5% in 2022, primarily due to a reduction in total borrowings and an increase in cash and cash equivalents[114] Student Enrollment and Educational Services - The number of enrolled students at Ginkgo Hotel Management College increased to approximately 20,728, an 8.3% rise from 19,148 in the previous academic year[44] - The number of graduates in 2023 was approximately 4,572, a significant increase of 55.5% compared to 2,941 in 2022[44] - The number of students enrolled in diploma programs increased from 2,007 in the 2022/2023 academic year to 2,410 in the 2023/2024 academic year, primarily due to participation in an independent enrollment plan[74] - The company is focused on enhancing its educational services and expanding its market presence in China, particularly through its Ginkgo Hotel Management College[14] - The company plans to actively promote school-enterprise cooperation and integration of industry and education to align professional offerings with market demand[27] - The company plans to expand its international cooperation with overseas educational institutions and enterprises to enhance its educational offerings[51] - The company aims to diversify its revenue sources by further developing training programs under the Ginkgo brand[51] Operating Expenses and Financial Management - The total operating expenses, including selling and administrative expenses, were managed effectively, with administrative expenses slightly decreasing to RMB 52,850,000 from RMB 54,036,000[7] - The company’s administrative expenses for the year were approximately RMB 52.9 million, a decrease from RMB 54.0 million in 2022[107] - The group’s sales costs for the year were approximately RMB 141.8 million, an increase of about 14.4% from RMB 124.0 million in 2022[79] - Other income for the year was approximately RMB 1.4 million, a decrease from RMB 4.7 million in the previous year, mainly due to reduced foreign exchange gains[81] - The group’s financial expenses decreased to approximately RMB 14.6 million from RMB 28.7 million in 2022, attributed to reduced new borrowings and lower interest rates[82] Cash Flow and Investments - The total cash and cash equivalents as of December 31, 2023, were approximately RMB 215.7 million, representing an increase of about 7.9% from RMB 199.9 million in 2022[111] - The net cash generated from operating activities for 2023 was approximately RMB 237.5 million, compared to RMB 212.0 million in 2022[112] - The net cash used in investing activities for 2023 was approximately RMB 141.0 million, a decrease from RMB 153.4 million in 2022[112] - The net cash used in financing activities for 2023 was approximately RMB 81.8 million, compared to RMB 19.7 million in 2022[112] - The company has plans for future investments and capital expenditures, although specific details were not disclosed in the provided content[115] Corporate Governance and Risk Management - The company has established a risk management framework to address operational risks, including expanding school networks and increasing tuition fees[138] - An independent internal control consultant was appointed to evaluate the internal control system, covering all major risks and controls[140] - The board is responsible for overseeing the company's overall risk and approving significant business decisions related to major risk exposures[138] - The company has implemented a risk management and internal control system to assess and manage risks and opportunities, including environmental, social, and governance risks[161] - The company emphasizes the importance of effective corporate governance to better understand and manage risks and opportunities[161] - The company has established a formal and transparent procedure for determining the compensation policy for senior management, ensuring accountability and governance[156] - The company has a diverse board structure, considering various factors such as gender, age, and professional experience in the selection of directors[169] Shareholder Information and Dividends - The board has decided not to recommend a final dividend for the year ending December 31, 2023[134] - The company's reserves available for distribution to shareholders as of December 31, 2023, amount to approximately RMB 428.6 million[175] - The annual general meeting is scheduled for June 14, 2024, with a cutoff for share transfer registration on June 7, 2024[135][136] - The company has suspended the transfer of shares from June 11, 2024, to June 14, 2024, to determine eligibility for voting at the annual general meeting[155] Compliance and Regulatory Matters - The company is registered in the Cayman Islands and its shares are listed on the Hong Kong Stock Exchange, complying with relevant laws and regulations[132] - The company has adopted multiple policies to ensure compliance with listing rules, including risk management and information disclosure[139] - The company is committed to timely disclosure of inside information as per the Securities and Futures Ordinance and Listing Rules[165] - The company has not disclosed any insider information in the current report[141] Social Responsibility - The company is committed to social responsibility and sustainable growth, focusing on employee welfare and environmental protection[179] - The company has not faced any significant fines or penalties related to environmental law violations during the year[179] - The company has identified key risks including operational outlook, ability to maintain or increase tuition fees, and competition for resources[183]

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 354,862 thousand, an increase of RMB 68,669 thousand or 24.0% compared to RMB 286,193 thousand in 2022[14] - Tuition fees contributed RMB 303,394 thousand, up 22.9% from RMB 246,922 thousand in the previous year[14] - The gross profit for the reporting period was approximately RMB 213.1 million, with a gross profit margin of about 60.1%, compared to 56.7% in 2022[19] - The group reported a profit before tax of RMB 106,033 thousand, up from RMB 85,204 thousand in the previous year, representing a growth of approximately 24.5%[98] - The net profit attributable to the company's owners for 2023 was RMB 148,032,000, a significant increase of 74% from RMB 85,008,000 in 2022[80] - Earnings per share for the fiscal year 2023 was RMB 0.30, up from RMB 0.17 in 2022, indicating a growth of 76.5%[80] - The group reported a net profit of RMB 148,032,000 for the year[121] - The group's net profit margin for the year was approximately 29.6%, consistent with the previous year’s performance[98] Revenue Sources - The group reported a significant increase in accommodation fees, which reached RMB 24,862 thousand, a rise of 27.5% from RMB 19,507 thousand in 2022[14] - Other income for the reporting period was approximately RMB 1.4 million, a decrease from RMB 4.7 million in 2022, primarily due to reduced foreign exchange gains[22] - The group's operating cash flow primarily comes from tuition fees, accommodation fees, and catering service fees, with investment cash outflows mainly including purchases of properties, plants, and equipment totaling approximately RMB 141.0 million[39] - Contract liabilities related to recognized revenue amounted to RMB 175,647 thousand for the year ended December 31, 2023, an increase from RMB 129,065 thousand in the previous year, showing a growth of approximately 36.2%[101] - Contract liabilities related to tuition fees amounted to RMB 178,325,000, an increase of 11.7% from RMB 159,564,000 in 2022[127] Assets and Liabilities - Total assets increased to RMB 1,459,398 thousand, up from RMB 1,408,891 thousand, representing a growth of approximately 3.6%[60] - Total liabilities decreased to RMB 674,696 thousand from RMB 772,221 thousand, a reduction of about 12.6%[61] - The group’s total liabilities decreased to RMB 123,728,000 in 2023 from RMB 178,441,000 in 2022, reflecting a reduction of 30.7%[118] - The net current liabilities decreased by approximately 39.4% to RMB 168.4 million as of December 31, 2023, down from RMB 277.9 million in the previous year[158] Student Enrollment and Education Services - The number of enrolled students increased to 20,728 in the 2023/2024 academic year, up from 19,148 in the previous year, representing a growth of approximately 8.2%[79] - The number of graduates in June 2023 was approximately 4,572, a significant increase of 55.5% compared to 2,941 graduates in the previous year[144] - The total number of undergraduate degree programs offered increased to 30, while the number of diploma programs remained at 24 as of December 31, 2023[145] - The group plans to expand its student enrollment and improve marketing efforts, with the number of students in the diploma program increasing from 2,007 to 2,410 for the academic years 2022/2023 to 2023/2024[175] Corporate Governance and Compliance - The group has established an audit committee consisting of three independent non-executive directors, ensuring compliance with listing rules and corporate governance standards[50] - The group confirmed that all directors have strictly adhered to the standards set forth during the reporting period[49] - The audit committee has confirmed that the preliminary performance figures align with the audited consolidated financial statements for the year[197] - The annual report contains all information required by the Listing Rules and will be sent to shareholders at the appropriate time[198] Future Outlook and Strategic Plans - The group expects continued demand for skilled talent in the hospitality industry, positioning itself to capture growth opportunities in China[11] - The group anticipates further development of training courses under its existing brand to diversify revenue sources[16] - The group plans to expand its hotel management services in China, aiming to enhance revenue streams and market presence[96] - The group has a cautious optimistic outlook for future development, aiming to become a leader in hotel education in China through international collaborations and expansion of the Yinxing Academy[177] Cost Management and Financial Health - Administrative expenses decreased slightly to RMB 52,850,000 in 2023 from RMB 54,036,000 in 2022, showing cost management efforts[80] - The group has implemented cost control measures, resulting in a sales cost of approximately RMB 141.8 million, an increase of about 14.4% from RMB 124.0 million in the previous year[180] - The group incurred net financial expenses of RMB 28,735 thousand, compared to RMB 27,668 thousand in the previous year, indicating a slight increase[98] Staff and Operations - The group employed 960 staff members as of December 31, 2023, an increase from 830 staff members in the previous year[161] - The group aims to further increase market penetration and improve teaching quality while solidifying its position in China's hotel education sector[148]

Shareholding Structure - As of June 30, 2023, the company has 500,000,000 shares issued, with Vast Universe Company Limited holding 366,562,500 shares, representing 73.3% ownership[5] - Tian Tao holds 8,437,500 shares through HFYX Company Limited, accounting for 1.7% of the total shares[5] Corporate Governance - The board consists of four executive directors and three independent non-executive directors, adhering to high standards of corporate governance[16] - The company has maintained compliance with all mandatory disclosure requirements and corporate governance code provisions during the reporting period[16] Financial Performance - The group reported total revenue of RMB 184,275,000 for the six months ended June 30, 2023, representing a 37.4% increase from RMB 134,109,000 in the same period of 2022[38] - Gross profit for the same period was RMB 116,409,000, up from RMB 79,642,000, indicating a significant improvement in profitability[38] - Operating profit increased to RMB 93,492,000, compared to RMB 59,568,000 in the prior year, reflecting a growth of 56.8%[38] - Net profit for the period was RMB 82,158,000, a substantial rise from RMB 51,780,000, marking an increase of 58.5% year-on-year[38] - The basic and diluted earnings per share were RMB 0.16, compared to RMB 0.10 for the same period last year, showing a 60% increase[38] - The group did not declare any interim dividend for the six months ended June 30, 2023[28] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 1,243,986,000, with significant contributions from the higher education segment[29] - The group’s current liabilities net amount was RMB 139,999,000, excluding non-financial liabilities, as of June 30, 2023[43] - The total liabilities of the group were RMB 525,158,000 as of June 30, 2023, down from RMB 772,221,000 as of December 31, 2022[51] - The group reported a total non-current asset value of RMB 1,183,560,000 as of June 30, 2023, slightly down from RMB 1,187,277,000 at the end of 2022[51] - The group maintained a cash and cash equivalents level of RMB 47,293,000 as of June 30, 2023, compared to RMB 199,854,000 at the end of 2022[51] - The total borrowings (including principal and interest) due within one year amounted to RMB 211,516,000 as of June 30, 2023[46] - The group’s equity totalled RMB 718,828,000 as of June 30, 2023, an increase from RMB 636,670,000 as of December 31, 2022[51] Cash Flow and Financial Management - The net cash used in operating activities for the six months ended June 30, 2023, was RMB (64,882,000), compared to RMB (53,832,000) for the same period in 2022, indicating a decline in cash flow efficiency[57] - Cash and cash equivalents decreased by RMB 154,118,000 during the six months ended June 30, 2023, compared to a decrease of RMB 68,486,000 in the same period of 2022[57] - The company has no significant liquidity risk, supported by expected operating cash flows and continued bank support[43] Capital Expenditures and Investments - Capital expenditures for the higher education segment were RMB 7,450,000, reflecting ongoing investments in infrastructure[29] - The company has committed capital expenditures of approximately RMB 92 million related to the expansion of the Nankai New Campus as of June 30, 2023[65] - The total capital commitments for property, plant, and equipment amounted to RMB 91,971 thousand as of June 30, 2023, significantly up from RMB 17,633 thousand as of December 31, 2022[166] Employee and Operational Metrics - The company employed 800 staff as of June 30, 2023, down from 830 staff as of December 31, 2022, indicating a reduction in workforce[69] - The operating profit for the higher education segment was RMB 66,042,000, while the hotel management segment reported a loss of RMB 4,191,000[194] Taxation and Compliance - The corporate income tax rate applicable to the company in China is 25%, as per the Corporate Income Tax Law effective from January 1, 2008[113] - The company’s subsidiaries in the Cayman Islands and British Virgin Islands are exempt from corporate income tax, contributing to a favorable tax position[110][111] - The company anticipates retaining profits within its Chinese subsidiaries for future business expansion, rather than distributing dividends to foreign investors[115] Risk Management - The company faced foreign exchange risks primarily related to USD and HKD, with no current hedging policies in place[66] - The group has not made any changes to its risk management policies since the end of the previous year[42] Related Party Transactions - The group engaged in significant related party transactions, purchasing goods and services totaling RMB 3,533 thousand during the six months ended June 30, 2023[174] Future Plans - The group plans to continue expanding its market presence and developing new educational programs to enhance revenue streams[104] - The group submitted an application in July 2023 to convert Yinxing Academy into a for-profit private school, pending government evaluation and approval[187]