智通财经APP讯，嘉宏教育(01935)发布截至2025年6月30日止六个月中期业绩，收益5.35亿元(人民币， 下同)，同比增加3.31%;股东应占溢利2.38亿元，同比减少11.11%;每股基本盈利14.86分。 ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company experienced revenue growth but a decline in profitability metrics for the six months ended June 30, 2025 [Overview of Financial Highlights](index=1&type=section&id=Overview%20of%20Financial%20Highlights) For the six months ended June 30, 2025, the company's revenue increased by 3% to RMB 534,563 thousand, but gross profit, profit for the period, and core net profit all decreased, by 5%, 10%, and 11% year-on-year respectively 2025 First Half Financial Highlights | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 534,563 | 517,419 | 17,144 | 3% | | Gross Profit | 328,717 | 347,238 | (18,521) | -5% | | Profit for the period | 305,311 | 340,998 | (35,687) | -10% | | Core Net Profit | 306,559 | 343,725 | (37,166) | -11% | [Financial Statements](index=2&type=section&id=Financial%20Statements) The financial statements for the period show revenue growth offset by increased costs, leading to reduced profitability, alongside changes in asset and liability structures [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue grew by 3%, but a significant increase in cost of services provided led to a 5% decrease in gross profit, with profit for the period and total comprehensive income also declining by 10% and 11% respectively 2025 First Half Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 534,563 | 517,419 | 17,144 | 3% | | Cost of services provided | (205,846) | (170,181) | (35,665) | 21% | | Gross Profit | 328,717 | 347,238 | (18,521) | -5% | | Other income and gains | 34,969 | 40,167 | (5,198) | -13% | | Profit before tax | 306,787 | 341,204 | (34,417) | -10% | | Income tax expense | (1,476) | (206) | (1,270) | 617% | | Profit for the period | 305,311 | 340,998 | (35,687) | -10% | | Total comprehensive income for the period | 306,152 | 342,535 | (36,383) | -11% | - Profit for the period attributable to owners of the parent was **RMB 237,806 thousand**, a year-on-year decrease of **11.2%**[7](index=7&type=chunk) - Basic and diluted earnings per share were **RMB 14.86 cents**, lower than **16.71 cents** in the prior year period[7](index=7&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and total equity increased, but net current assets and cash and cash equivalents significantly decreased, while non-current liabilities and interest-bearing bank borrowings substantially rose, leading to an increased gearing ratio 2025 June 30 Unaudited Condensed Consolidated Statement of Financial Position Key Data | Metric | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total non-current assets | 3,518,815 | 2,497,862 | 1,020,953 | 41% | | Total current assets | 1,442,929 | 2,208,371 | (765,442) | -35% | | Total current liabilities | 390,748 | 829,475 | (438,727) | -53% | | Net current assets | 1,052,181 | 1,378,896 | (326,715) | -24% | | Total non-current liabilities | 423,844 | 35,758 | 388,086 | 1085% | | Net assets | 4,147,152 | 3,841,000 | 306,152 | 8% | | Total equity | 4,147,152 | 3,841,000 | 306,152 | 8% | - Property, plant and equipment increased from **RMB 1,497,586 thousand** to **RMB 1,997,053 thousand**, primarily due to new campus construction[8](index=8&type=chunk) - Interest-bearing bank borrowings increased from nil to **RMB 598,000 thousand** (current **RMB 215,950 thousand**, non-current **RMB 382,050 thousand**), mainly for new campus construction[8](index=8&type=chunk)[10](index=10&type=chunk) [Notes to Financial Statements](index=7&type=section&id=Notes%20to%20Financial%20Statements) Detailed notes provide context on the company's operations, accounting policies, revenue breakdown, profitability drivers, and changes in financial position [1. Company Information](index=7&type=section&id=Company%20Information) The company was incorporated in the Cayman Islands in 2017, listed on the Hong Kong Stock Exchange in 2019, and primarily provides higher and secondary education services and related management services in China - The Company is an investment holding company primarily providing higher and secondary education services and related management services in China[13](index=13&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The accounting policies adopted for the interim financial information are consistent with the annual consolidated financial statements, with the initial adoption of amended IAS 21 (Lack of Exchangeability) having no material impact on the Group [2.1 Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The unaudited condensed consolidated interim financial information is prepared in accordance with IAS 34 and presented in RMB, with all values rounded to the nearest thousand - The financial information is prepared in accordance with IAS 34 and presented in RMB[14](index=14&type=chunk) [2.2 Changes in Accounting Policies](index=7&type=section&id=Changes%20in%20Accounting%20Policies) The accounting policies adopted for the interim financial information are consistent with the annual consolidated financial statements, with the initial adoption of amended IAS 21 (Lack of Exchangeability) having no material impact on the Group - The initial adoption of amended IAS 21 (Lack of Exchangeability) has no impact on the financial information as the Group's transaction currencies are convertible[15](index=15&type=chunk)[16](index=16&type=chunk) [3. Operating Segment Information](index=8&type=section&id=Operating%20Segment%20Information) The Group primarily provides higher and secondary education services in China, with all revenue and substantially all long-term assets derived from China, thus no operating segment and geographical information is presented, and no single customer accounted for over 10% of revenue during the reporting period - The Group primarily provides higher and secondary education services in China, with all revenue generated in China and **99%** of long-term assets located in China[17](index=17&type=chunk)[18](index=18&type=chunk) - No single customer accounted for **10%** or more of total revenue during the reporting period[19](index=19&type=chunk) [4. Revenue, Other Income and Gains](index=9&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) For the six months ended June 30, 2025, total revenue increased by 3% year-on-year to RMB 534,563 thousand, primarily driven by tuition and accommodation fees, while other income and gains decreased by 13% mainly due to lower interest income 2025 First Half Revenue, Other Income and Gains Analysis | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | | | | | | Tuition fees | 489,615 | 470,100 | 19,515 | 4% | | Accommodation fees | 36,056 | 35,881 | 175 | 0.5% | | Other education service fees | 8,892 | 11,438 | (2,546) | -22% | | **Total revenue from contracts with customers** | **534,563** | **517,419** | **17,144** | **3%** | | **Other income and gains** | | | | | | Interest income | 13,922 | 26,090 | (12,168) | -47% | | Rental income | 8,911 | 7,539 | 1,372 | 18% | | Government grants (related to expenses) | 4,939 | 2,776 | 2,163 | 78% | | Government grants (related to assets) | 3,112 | 2,696 | 416 | 15% | | Others | 4,085 | 1,066 | 3,019 | 283% | | **Total other income and gains** | **34,969** | **40,167** | **(5,198)** | **-13%** | - Total contract liabilities significantly decreased from **RMB 528,383 thousand** as of December 31, 2024, to **RMB 14,113 thousand** as of June 30, 2025, mainly due to prepaid tuition and accommodation fees being recognized as revenue[22](index=22&type=chunk) [5. Profit Before Tax](index=10&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, profit before tax was RMB 306,787 thousand, a 10% year-on-year decrease, primarily impacted by increased employee benefit expenses, cost of services provided, depreciation and amortization, and reduced interest income 2025 First Half Profit Before Tax Key Influencing Factors | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Employee benefit expenses | 163,822 | 135,775 | 28,047 | 21% | | Cost of services provided | 205,846 | 170,181 | 35,665 | 21% | | Depreciation of property, plant and equipment | 33,323 | 32,453 | 870 | 3% | | Depreciation of right-of-use assets | 9,203 | 4,197 | 5,006 | 119% | | Amortisation of other intangible assets | 2,626 | 1,002 | 1,624 | 162% | | Interest income | (13,922) | (26,090) | 12,168 | -47% | [6. Income Tax](index=11&type=section&id=Income%20Tax) Income tax expense significantly increased from RMB 206 thousand in the first half of 2024 to RMB 1,476 thousand in the first half of 2025, mainly due to increased PRC corporate income tax expense, as Jingyi High School transitioned to a for-profit private school taxed at 25%, while Zhengzhou Jingmao College and Changzheng College remain non-profit private entities with tax-exempt academic education income 2025 First Half Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current - Mainland China | 1,476 | 206 | - Jingyi High School transitioned to a for-profit private school in 2023 and has been subject to PRC corporate income tax at a rate of **25%** since 2023[26](index=26&type=chunk) - Zhengzhou Jingmao College and Changzheng College remain non-profit private entities, with their academic education income considered tax-exempt[26](index=26&type=chunk)[27](index=27&type=chunk) [7. Dividends](index=13&type=section&id=Dividends) No interim dividends were proposed for the six months ended June 30, 2025, or 2024 - No interim dividends were proposed for the six months ended June 30, 2025, and 2024[30](index=30&type=chunk) [8. Earnings Per Share Attributable to Owners of the Company's Ordinary Shares](index=13&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company%27s%20Ordinary%20Shares) For the six months ended June 30, 2025, basic and diluted earnings per share were RMB 14.86 cents, lower than 16.71 cents in the prior year, primarily due to a decrease in profit for the period attributable to owners of the parent's ordinary shares 2025 First Half Earnings Per Share Data | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the parent (RMB thousands) | 237,806 | 267,523 | | Weighted average number of ordinary shares outstanding (shares) | 1,600,830,000 | 1,600,830,000 | | Basic and diluted earnings per share (RMB cents) | 14.86 | 16.71 | - The Group had no outstanding potential dilutive ordinary shares during the reporting period[31](index=31&type=chunk) [9. Trade Receivables](index=14&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables were RMB 763 thousand, a significant decrease from RMB 1,851 thousand as of December 31, 2024, mainly due to reduced tuition and accommodation fees receivable and increased impairment, with most receivables aged within one year Trade Receivables Net Book Value and Ageing Analysis | Item | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Tuition and accommodation fees receivable | 4,709 | 5,136 | (427) | -8% | | Impairment | (3,946) | (3,285) | (661) | 20% | | **Net book value** | **763** | **1,851** | **(1,088)** | **-59%** | | **Ageing analysis (net value):** | | | | | | Within one year | 668 | 1,544 | (876) | -57% | | One to two years | 93 | 222 | (129) | -58% | | Two to three years | 2 | 69 | (67) | -97% | | Over three years | – | 16 | (16) | -100% | - Trade receivables primarily represent amounts due from students with financial difficulties, which are interest-free and repayable on demand[33](index=33&type=chunk) [10. Other Payables and Accrued Expenses](index=15&type=section&id=Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, other payables and accrued expenses totaled RMB 151,618 thousand, a decrease from RMB 209,906 thousand as of December 31, 2024, mainly due to reductions in miscellaneous advances from students, salaries and welfare payables, and other taxes payable Other Payables and Accrued Expenses Main Components | Item | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Miscellaneous advances from students | 35,858 | 47,692 | (11,834) | -25% | | Salaries and welfare payables | 35,501 | 59,514 | (24,013) | -40% | | Other taxes payable | 14,469 | 26,903 | (12,434) | -46% | | Textbooks payables | 14,006 | 12,451 | 1,555 | 12% | | Collections on behalf of ancillary service providers | 11,227 | 14,685 | (3,458) | -24% | | Other payables | 33,875 | 41,222 | (7,347) | -18% | | **Total** | **151,618** | **209,906** | **(58,288)** | **-28%** | - The balances mentioned above are unsecured, interest-free, and repayable on demand[35](index=35&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) Management discusses business operations, strategic initiatives, financial performance, and human resources for the reporting period [Business Review](index=16&type=section&id=Business%20Review) The Group is a leading private higher education provider in Zhejiang and Henan provinces, also offering high school education in Zhejiang, and is expanding its higher education capacity with a new campus while benefiting from supportive vocational education policies in China [Overview](index=16&type=section&id=Overview) The Group is the largest private higher education institution in Zhejiang Province and one of the leading private higher education institutions in Henan Province, also providing high school education in Zhejiang Province, and is constructing a new campus for Jingmao College to expand its higher education scale, benefiting from favorable policies for vocational education in China - The Group is the largest private higher education institution in Zhejiang Province and one of the leading private higher education institutions in Henan Province[36](index=36&type=chunk) - A new campus for Jingmao College is under construction in Zhengzhou, Henan Province, to expand higher education capacity, with educational services expected to commence in the **2026/2027** academic year[36](index=36&type=chunk)[44](index=44&type=chunk) - The Group benefits from the Chinese government's continuous support and favorable policies for vocational education development[37](index=37&type=chunk) [Changzheng College](index=16&type=section&id=Changzheng%20College) Zhejiang Changzheng Vocational Technical College, located in Hangzhou, offers junior college education and ranked first in Zhejiang Province for private junior college enrollment plans in 2024, boasting 40 on-campus training bases and collaborations with 594 industry associations and enterprises for school-enterprise cooperation and industry-education integration - Changzheng College's **2024** enrollment plan ranked first among private junior colleges in Zhejiang Province[38](index=38&type=chunk) - The college has **40** on-campus training bases and **186** experimental training rooms, with several designated as Ministry of Education or provincial demonstration training bases[40](index=40&type=chunk) - It has established off-campus internship and training bases with **594** industry associations and enterprises and is a pilot unit for the Chinese characteristic apprenticeship system in Zhejiang Province[42](index=42&type=chunk) [Jingmao College](index=18&type=section&id=Jingmao%20College) Zhengzhou Jingmao College, located in Zhengzhou, Henan, offers undergraduate and junior college education, with its 2024 undergraduate enrollment plan ranking sixth among private undergraduate institutions in Henan Province, covering six major disciplines including management and economics, and actively enhancing applied talent training quality through government-school-enterprise cooperation and industry college construction - Jingmao College's **2024** undergraduate enrollment plan ranked sixth among private undergraduate institutions in Henan Province[43](index=43&type=chunk) - It comprises **12** schools and **1** department, offering **51** undergraduate majors and **32** junior college majors, with **5** provincial key construction disciplines and **6** provincial first-class majors[45](index=45&type=chunk) - The college has established government-school-enterprise cooperation with entities like the Shanghai Minhang District Investment Promotion Service Center and co-built high-standard off-campus internship bases with over **200** enterprises[46](index=46&type=chunk)[48](index=48&type=chunk) [Jingyi High School](index=20&type=section&id=Jingyi%20High%20School) Yueqing Jingyi High School Co Ltd is a for-profit private high school in Wenzhou, Zhejiang, providing non-compulsory private education, focusing on fostering students' learning, character, and happiness, and equipped with extensive multimedia rooms, laboratories, and computer rooms - Jingyi High School is a for-profit private high school located in Wenzhou, Zhejiang, providing non-compulsory private education[47](index=47&type=chunk) - Its curriculum is designed with reference to the general high school curriculum standards of Zhejiang educational institutions, offering **13** main courses[47](index=47&type=chunk) [Teachers](index=21&type=section&id=Teachers) The company places high importance on teacher quality, focusing on educational background, teaching experience, professional competence, and communication skills during recruitment, with approximately 99.9% of teachers holding a bachelor's degree or above and 77.7% holding a master's degree or above as of June 30, 2025 - As of June 30, 2025, approximately **99.9%** of teachers hold a bachelor's degree or above, and approximately **77.7%** hold a master's degree or above[49](index=49&type=chunk) [Tuition and Accommodation Fees](index=21&type=section&id=Tuition%20and%20Accommodation%20Fees) The company typically collects tuition and accommodation fees in advance at the beginning of each academic year and recognizes revenue proportionally over the period related to the school curriculum - Tuition and accommodation fees are typically collected in advance at the beginning of each academic year and recognized as revenue proportionally over the course period[50](index=50&type=chunk) [Student Enrollment](index=21&type=section&id=Student%20Enrollment) As of June 30, 2025, student enrollment at Jingmao College, Changzheng College, and Jingyi High School all showed growth Student Enrollment as of June 30 | School Name | 2025 | 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Jingmao College | 36,052 | 35,722 | 330 | 0.9% | | Changzheng College | 21,094 | 20,926 | 168 | 0.8% | | Jingyi High School | 1,125 | 1,101 | 24 | 2.2% | [Average Tuition and Accommodation Fees](index=21&type=section&id=Average%20Tuition%20and%20Accommodation%20Fees) For the six months ended June 30, 2025, average tuition and accommodation fees increased at Jingmao College and Jingyi High School, while Changzheng College experienced a slight decrease Average Tuition and Accommodation Fees as of June 30 (RMB) | School Name | 2025 Average Tuition | 2024 Average Tuition | Change (%) | 2025 Average Accommodation Fee | 2024 Average Accommodation Fee | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jingmao College | 8,219 | 7,829 | 5.0% | 677 | 635 | 6.6% | | Changzheng College | 8,604 | 8,730 | -1.4% | 924 | 929 | -0.5% | | Jingyi High School | 12,641 | 11,198 | 12.9% | 623 | 445 | 40.0% | [Business Strategies](index=22&type=section&id=Business%20Strategies) The company plans to further expand its school network in China and overseas, leveraging IPO proceeds, bank borrowings, and internal funds [1. Expand Business Operations and School Network](index=22&type=section&id=Expand%20Business%20Operations%20and%20School%20Network) The company is constructing a new campus for Jingmao College, expected to accommodate approximately 20,000 students, which will significantly enhance educational services and facilities, positively impacting future sustainable development - A new campus for Jingmao College is under construction, expected to accommodate approximately **20,000** students, which will significantly enhance educational services and facilities[54](index=54&type=chunk) [2. Acquisitions](index=22&type=section&id=Acquisitions) The company plans to acquire or invest in for-profit private schools in China with low utilization and/or significant development potential, particularly in Central, East, and South China - Plans to acquire or invest in for-profit private schools in China with low utilization and/or significant development potential, focusing on Central, East, and South China[55](index=55&type=chunk) [3. Establish or Acquire New Overseas Schools](index=22&type=section&id=Establish%20or%20Acquire%20New%20Overseas%20Schools) The company plans to establish California School, a degree-granting higher education institution in California, USA, offering business administration and international business courses, and is actively seeking suitable overseas acquisition targets - Plans to establish California School, a degree-granting higher education institution in California, USA, offering business administration and international business-related courses[58](index=58&type=chunk) - Actively seeking opportunities to acquire suitable overseas schools[58](index=58&type=chunk) [4. Optimize Pricing Strategy to Enhance Profitability](index=22&type=section&id=Optimize%20Pricing%20Strategy%20to%20Enhance%20Profitability) The company plans to optimize its pricing strategy to enhance profitability without compromising its reputation or ability to attract and retain students - Plans to optimize pricing strategy to enhance profitability without compromising reputation or ability to attract and retain students[57](index=57&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) The Group's revenue primarily comes from tuition and accommodation fees from its schools in China, with revenue increasing by 3% during the period, but a significant rise in cost of services provided led to a 5% decrease in gross profit, and profit for the period and core net profit both declined by approximately 10-11% [Overview](index=23&type=section&id=Overview%20(Financial%20Review)) The Group's revenue primarily comes from tuition and accommodation fees from its schools in China, with revenue increasing by 3% during the period, but a significant rise in cost of services provided led to a 5% decrease in gross profit, and profit for the period and core net profit both declined by approximately 10-11% - Revenue primarily derived from tuition and accommodation fees from schools in China, with a **3%** year-on-year increase to **RMB 534.6 million** for the period[59](index=59&type=chunk) - Gross profit decreased by **5%** year-on-year, profit for the period decreased by **10%** year-on-year, and core net profit decreased by **11%** year-on-year[4](index=4&type=chunk)[61](index=61&type=chunk)[69](index=69&type=chunk)[72](index=72&type=chunk) [Revenue](index=23&type=section&id=Revenue%20(Financial%20Review)) Revenue increased by 3% year-on-year to RMB 534.6 million, primarily driven by increased enrollment leading to higher tuition and accommodation fee income - Revenue increased by **3%** year-on-year to **RMB 534.6 million**, primarily due to increased enrollment, leading to growth in tuition and accommodation fee income[59](index=59&type=chunk) [Cost of Services Provided](index=23&type=section&id=Cost%20of%20Services%20Provided) Cost of services provided increased by 21% year-on-year to RMB 205.8 million, mainly due to higher staff costs, depreciation expenses, and student activity expenses - Cost of services provided increased by **21%** year-on-year to **RMB 205.8 million**, primarily due to increased staff costs, depreciation expenses, and student activity expenses[60](index=60&type=chunk) [Gross Profit](index=23&type=section&id=Gross%20Profit%20(Financial%20Review)) Gross profit decreased by 5% year-on-year to RMB 328.7 million, primarily impacted by the increase in cost of services provided - Gross profit decreased by **5%** year-on-year to **RMB 328.7 million**, primarily impacted by the increase in cost of services provided[61](index=61&type=chunk) [Other Income and Gains](index=23&type=section&id=Other%20Income%20and%20Gains%20(Financial%20Review)) Other income and gains decreased by 13% year-on-year to RMB 35.0 million, mainly due to reduced interest income - Other income and gains decreased by **13%** year-on-year to **RMB 35.0 million**, primarily due to reduced interest income[62](index=62&type=chunk) [Selling and Distribution Expenses](index=23&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by 19% year-on-year to RMB 2.1 million - Selling and distribution expenses decreased by **19%** year-on-year to **RMB 2.1 million**[63](index=63&type=chunk) [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) Administrative expenses increased by 23% year-on-year to RMB 52.1 million, mainly due to higher staff costs, depreciation expenses, and professional fees - Administrative expenses increased by **23%** year-on-year to **RMB 52.1 million**, primarily due to increased staff costs, depreciation expenses, and professional fees[64](index=64&type=chunk) [Other Expenses](index=24&type=section&id=Other%20Expenses) Other expenses increased by 64% year-on-year to RMB 1.8 million, mainly due to increased losses from disposal of fixed assets - Other expenses increased by **64%** year-on-year to **RMB 1.8 million**, primarily due to increased losses from disposal of fixed assets[65](index=65&type=chunk) [Finance Costs](index=24&type=section&id=Finance%20Costs) Finance costs significantly increased to RMB 0.9 million, primarily due to interest incurred on new bank borrowings for new campus construction - Finance costs significantly increased to **RMB 0.9 million**, primarily due to interest incurred on new bank borrowings for new campus construction[66](index=66&type=chunk) [Profit Before Tax](index=24&type=section&id=Profit%20Before%20Tax%20(Financial%20Review)) Profit before tax decreased by 10% year-on-year to RMB 306.8 million, resulting from the combined impact of increased expenses and reduced income - Profit before tax decreased by **10%** year-on-year to **RMB 306.8 million**[67](index=67&type=chunk) [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense%20(Financial%20Review)) Income tax expense significantly increased to RMB 1.5 million, primarily due to higher PRC corporate income tax expense - Income tax expense significantly increased to **RMB 1.5 million**, primarily due to higher PRC corporate income tax expense[68](index=68&type=chunk) [Profit for the Period](index=24&type=section&id=Profit%20for%20the%20Period%20(Financial%20Review)) Profit for the period decreased by 10% year-on-year to RMB 305.3 million - Profit for the period decreased by **10%** year-on-year to **RMB 305.3 million**[69](index=69&type=chunk) [Profit Attributable to Owners of the Company](index=24&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) Profit attributable to owners of the company decreased by 11% year-on-year to RMB 237.8 million - Profit attributable to owners of the company decreased by **11%** year-on-year to **RMB 237.8 million**[70](index=70&type=chunk) [Core Net Profit](index=25&type=section&id=Core%20Net%20Profit%20(Financial%20Review)) Core net profit was RMB 306,559 thousand, a 11% year-on-year decrease, representing profit for the period adjusted for items not indicative of the Group's operating performance Reconciliation of Profit for the Period to Core Net Profit | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Profit for the period | 305,311 | 340,998 | (35,687) | -10% | | Less: Exchange gains | 1,487 | 8 | 1,479 | 18488% | | Add: Amortisation of property, plant and equipment and intangible assets arising from acquisition of Jingmao College | 2,735 | 2,735 | 0 | 0% | | **Core Net Profit** | **306,559** | **343,725** | **(37,166)** | **-11%** | [Financial and Liquidity Position](index=25&type=section&id=Financial%20and%20Liquidity%20Position) Net current assets decreased by 24% year-on-year to RMB 1,052.2 million, and cash and cash equivalents decreased by RMB 953.8 million, while bank borrowings increased to RMB 598 million, primarily for new campus construction, raising the gearing ratio to 14% - Net current assets decreased by **RMB 326.7 million** to **RMB 1,052.2 million**, primarily due to a decrease in contract liabilities and cash and cash equivalents[73](index=73&type=chunk) - Cash and cash equivalents decreased by **RMB 953.8 million**, mainly due to cash outflows from operating activities, additions to property, plant and equipment, and an increase in time deposits, partially offset by new bank loans[74](index=74&type=chunk) - Bank borrowings increased to **RMB 598 million**, primarily for new campus construction, leading to a gearing ratio increase from nil to **14%**[75](index=75&type=chunk)[76](index=76&type=chunk) [Capital Expenditure](index=26&type=section&id=Capital%20Expenditure) Capital expenditure significantly increased to RMB 641.3 million, primarily for the acquisition of land use rights and construction of new campuses - Capital expenditure was **RMB 641.3 million**, a significant year-on-year increase, primarily for the acquisition of land use rights and construction of new campuses[77](index=77&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no unrecorded significant contingent liabilities or major litigations - As of June 30, 2025, the Group had no unrecorded significant contingent liabilities or major litigations[78](index=78&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) The Group's majority of income and losses are denominated in RMB, with some bank balances in USD, AUD, or HKD, but no significant foreign exchange risk was encountered during the reporting period, and no hedging policy is in place - The Group's majority of income and losses are denominated in RMB, and no significant foreign exchange risk was encountered, with no hedging policy in place[79](index=79&type=chunk) [Pledge of Group Assets](index=26&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, the Group had no assets pledged - As of June 30, 2025, the Group had no assets pledged[80](index=80&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 3,092 employees, with total employee benefit expenses of RMB 163.8 million, offering comprehensive remuneration, benefits, and training, while maintaining good employee relations - As of June 30, 2025, the Group had **3,092** employees, with total employee benefit expenses of **RMB 163.8 million**[81](index=81&type=chunk) - Remuneration is based on performance, experience, and industry practice, with a share option scheme provided to incentivize and retain talent[81](index=81&type=chunk) [Corporate Governance and Other Information](index=27&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers corporate governance practices, significant events, and other disclosures related to the company's operations and compliance [Material Investments, Major Acquisitions and Disposals](index=27&type=section&id=Material%20Investments%2C%20Major%20Acquisitions%20and%20Disposals) Other than those disclosed in this interim results announcement, the Group had no other material investments, acquisitions, or disposals of assets during the reporting period - During the reporting period, the Group had no other material investments, acquisitions, or disposals of assets[82](index=82&type=chunk) [Events After the Reporting Period](index=27&type=section&id=Events%20After%20the%20Reporting%20Period) From June 30, 2025, to the date of this announcement, no events have occurred that would significantly impact the Group's operations and financial performance - No events have occurred after the reporting period up to the date of this announcement that would significantly impact the Group's operations and financial performance[83](index=83&type=chunk) [Compliance with Corporate Governance Code](index=28&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Group is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code set out in Appendix C1 of the Listing Rules, though the Chairman also serving as Chief Executive Officer deviates from Code Provision C.2.1, which the Board believes benefits the Group's overall strategic planning and efficient decision-making - The Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[84](index=84&type=chunk) - The Chairman also serving as Chief Executive Officer deviates from Code Provision C.2.1, but the Board believes this arrangement facilitates consistent leadership and efficient decision-making for the Group[84](index=84&type=chunk) [Standard Code for Securities Transactions](index=28&type=section&id=Standard%20Code%20for%20Securities%20Transactions) All Directors confirm compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the reporting period - All Directors confirm compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the reporting period[85](index=85&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[86](index=86&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's unaudited interim results and accounting treatment for the six months ended June 30, 2025 - The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[87](index=87&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[88](index=88&type=chunk) - As of June 30, 2025, the Company held no treasury shares[88](index=88&type=chunk) [Use of Proceeds from the Company's Initial Public Offering](index=29&type=section&id=Use%20of%20Proceeds%20from%20the%20Company%27s%20Initial%20Public%20Offering) The net proceeds from the initial public offering were approximately RMB 461 million, of which RMB 415 million (90%) was resolved in March 2025 to be reallocated for the construction and development of new campuses, and is expected to be fully utilized by December 31, 2025 - The net proceeds from the initial public offering were approximately **RMB 461 million**[89](index=89&type=chunk) - Approximately **RMB 415 million (90%)** was resolved in March 2025 to be reallocated for the construction and development of new campuses[89](index=89&type=chunk) - As of June 30, 2025, the **RMB 415 million** for new campus construction and development remained unutilized and is expected to be fully utilized by December 31, 2025[89](index=89&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=30&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be published and dispatched to shareholders who have opted to receive a printed version in due course - This interim results announcement has been published on the HKEX website and the Company's website[90](index=90&type=chunk) - The interim report will be published and dispatched to shareholders who have opted to receive a printed version in due course[90](index=90&type=chunk)

嘉宏教育(01935.HK)公告，董事会会议将于2025年8月28日(星期四)举行，会议有关(其中包括)考虑及批 准公司及其附属公司截至2025年6月30日止6个月的未经审核中期业绩及其发布，并考虑宣派中期股息 (如有)。 ...

董事會會議日期 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任 何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 承董事會命 嘉宏教育科技有限公司 主席 陳餘國 於本公告日期，執行董事為陳餘國先生、陳餘春先生、陳澍先生、陳南蓀先生及陳 淩峰先生；非執行董事為張旭麗女士；以及獨立非執行董事為畢慧女士、馮南山先 生及王裕清先生。 嘉宏教育科技有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈，董事 會會議將於二零二五年八月二十八日（星期四）舉行，會議有關（其中包括）考慮 及批准本公司及其附屬公司截至二零二五年六月三十日止六個月的未經審核中期 業績及其發佈，並考慮宣派中期股息（如有）。 中華人民共和國浙江 二零二五年八月十八日 ...

FF301 I. 法定/註冊股本變動 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 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: 嘉宏教育科技有限公司 (於開曼群島註册成立之有限公司) 呈交日期: 2025年8月6日 | 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) | 01935 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | 30,000,000,000 | USD | | 0.01 | USD | | 300,000,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | 30,000,000,000 | USD | | 0.01 | USD | | 300,000,000 ...

Group 1 - The education sector in Hong Kong and A-shares experienced significant gains, with notable increases in stocks such as Xijiang International Holdings (up 12.59%) and China Tongcai Education (up 9.27%) [1] - The Ministry of Education and nine other departments issued a document to accelerate the digitalization of education, emphasizing the role of artificial intelligence in educational transformation [1][2] - The Ministry of Education plans to develop a national smart education platform 2.0, incorporating advanced technologies like AI and knowledge graphs to enhance educational resources and assessment [2] Group 2 - The global AI education market is projected to grow to $26.2 billion by 2025, while the domestic AI+ education B-end market is expected to reach 47.7 billion yuan and the C-end market 28.2 billion yuan by 2027 [3] - Investment firms are optimistic about the potential of AI in education, recommending attention to companies leading in AI integration within the education sector and related IT industries [3][4]

Financial Performance - Revenue increased from RMB 873.3 million in 2023 to RMB 980.8 million in 2024, representing a growth of 12.3%[17] - Annual profit decreased from RMB 502.8 million in 2023 to RMB 438.4 million in 2024, a decline of 12.8% primarily due to increased corporate income tax expenses[17] - Core net profit for 2024 was RMB 444.5 million, down from RMB 526.7 million in 2023, a decrease of 15.6%[9] - The net profit margin for 2024 was 44.7%, down from 57.6% in 2023[12] - Profit before tax for the current year was approximately RMB 522.9 million, an increase of 4% compared to the year ended December 31, 2023[49] - The annual profit recorded was approximately RMB 438.4 million, a decrease of about 13% compared to the year ended December 31, 2023, mainly due to net losses from fair value adjustments of investment properties and increased corporate income tax expenses[51] - Gross profit rose by 10% from RMB 568.0 million for the year ended December 31, 2023, to RMB 627.2 million for the current year, driven by changes in revenue and sales costs[42] Enrollment and Educational Capacity - The number of enrolled students increased by 686 to a total of 58,340 students[16] - The Economic and Trade College's student enrollment increased from 35,543 in 2023 to 35,991 in 2024, reflecting a growth of 1.3%[35] - Long March College ranked first in the enrollment plan for private colleges in Zhejiang Province for 2024[22] - The new campus for the Economic and Trade College is expected to accommodate approximately 20,000 students, enhancing the capacity for educational services[37] - Long March College offers 38 full-time vocational programs across 11 categories, including finance, education, and healthcare[24] Assets and Equity - Current assets rose to RMB 2,208.4 million in 2024 from RMB 2,134.1 million in 2023, an increase of 3.5%[10] - Total equity increased to RMB 3,841.0 million in 2024 from RMB 3,403.1 million in 2023, reflecting a growth of 12.9%[10] - As of December 31, 2024, the net current assets were approximately RMB 1,378.9 million, a decrease of about RMB 25.3 million from RMB 1,404.2 million as of December 31, 2023[54] - Cash and cash equivalents decreased by RMB 400.0 million from RMB 1,995.9 million as of December 31, 2023, to RMB 1,596.2 million, primarily due to cash outflows from investing activities[55] Strategic Initiatives and Expansion - The company plans to build a new campus for a business college on two plots of land acquired in Zhengzhou, Henan Province, enhancing its educational service capacity[18] - The company aims to solidify its position as a leading private higher education institution in Zhejiang and Henan provinces[18] - The group achieved satisfactory operating performance in the fiscal year 2024 and plans to continue expanding its business scale through both organic growth and mergers and acquisitions[19] - The company plans to acquire or invest in underutilized private schools in Central, East, and South China, targeting significant growth potential[38] - The company is exploring the establishment or acquisition of new overseas schools to expand its educational network[39] Compliance and Governance - The group strictly complied with relevant laws, regulations, and environmental policies in China during the fiscal year 2024[93] - The independent directors highlighted the importance of compliance and governance, ensuring adherence to regulatory standards[76] - The group has established compliance mechanisms to ensure adherence to regulations and policies[93] - The board will review the overall performance and compliance of structured contracts at least once a year and disclose this information in annual and interim reports[168] Employee and Management - As of December 31, 2024, the group had 2,419 employees, with total employee benefits expenditure (excluding director remuneration) amounting to RMB 299.7 million[61] - The company has a strong management team with extensive experience in the education sector, including key personnel with over 27 years of experience[86] - The remuneration policy for directors and senior management is designed to attract and retain talent, with compensation reviewed against comparable companies[120] - The company has adopted an employee stock option plan to recognize and incentivize employee contributions[97] Market and Competitive Landscape - The group operates the largest private higher education institution in Zhejiang Province and is a leading institution in Henan Province, with a focus on high employment rates for graduates[21] - The group benefits from favorable government policies supporting vocational education in China, which is expected to continue driving demand[21] - The company faces risks related to market recognition, competition in the education sector, and the ability to maintain tuition and accommodation fee levels[99] Financial Management and Shareholder Information - The company has no bank borrowings as of December 31, 2024, and confirmed no difficulties in obtaining bank loans or any defaults on repayments[56] - The company did not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[106] - As of December 31, 2024, the company has approximately RMB 2,303.3 million available for distribution to shareholders[105] - The company has confirmed that all independent non-executive directors are independent as of December 31, 2024, in accordance with Listing Rule 3.13[117] Regulatory Environment - The foreign investment law effective from January 1, 2020, serves as the legal basis for foreign investment in China, replacing previous laws[161] - The 2021 implementation regulations issued by the State Council may significantly impact private schools, promoting their development and ensuring they enjoy relevant rights and preferential policies[163] - Non-profit private schools are entitled to the same tax benefits as public schools under the new regulations[164] - The group is committed to meeting qualification requirements for foreign investment and has adopted specific plans to achieve this[159] Share Option Plan - The total number of shares available for issuance under the share option scheme is 160,000,000, which is approximately 10% of the issued shares[190] - The share option plan aims to incentivize eligible participants to enhance their contributions to the company[191] - The stock option plan is valid for 10 years from the date it becomes unconditional, with a remaining term of 4 years and 1 month as of December 31, 2024[198][199] - No share options have been granted under the share option plan as of the report date[193]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 980,841,000, an increase of RMB 107,496,000 or 12% compared to RMB 873,345,000 in 2023[2] - Gross profit for the same period was RMB 627,225,000, reflecting a rise of RMB 59,256,000 or 10% from RMB 567,969,000 in the previous year[4] - Annual profit decreased to RMB 438,436,000, down by RMB 64,375,000 or 13% from RMB 502,811,000 in 2023[4] - Profit attributable to owners of the company was RMB 312,822,000, a decline of RMB 75,374,000 or 19% compared to RMB 388,196,000 in the prior year[5] - Core net profit was RMB 444,507,000, down by RMB 82,230,000 or 16% from RMB 526,737,000 in 2023[2] - Basic and diluted earnings per share for the year were RMB 19.54, down from RMB 24.25 in the previous year[5] - Total tax expenses for 2024 amount to RMB 84.51 million, significantly higher than RMB 1.52 million in 2023, indicating a substantial increase[7] - Core net profit decreased from RMB 526.7 million in 2023 to RMB 444.5 million in 2024, reflecting a decline of approximately 15.6%[55] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 3,841,000,000, an increase from RMB 3,403,095,000 in 2023[7] - Non-current assets totaled RMB 2,497,862,000, up from RMB 2,029,589,000 in the previous year[6] - Current liabilities increased to RMB 829,475,000 from RMB 729,945,000 in 2023[6] - The total contract liabilities at year-end 2024 were RMB 528,383,000, compared to RMB 521,624,000 in 2023, indicating a slight increase of 1.5%[19] - The total amount of other payables and accrued expenses increased to RMB 209.91 million in 2024 from RMB 201.71 million in 2023, showing a rise of 4.1%[25] Revenue Sources - Tuition revenue increased to RMB 894,298,000 in 2024 from RMB 794,061,000 in 2023, representing a growth of 12.6%[16] - Total customer contract revenue reached RMB 980,841,000 in 2024, up from RMB 873,345,000 in 2023, marking an increase of 12.3%[16] - The average tuition fee for the Economic and Trade College increased from RMB 14,885 in 2023 to RMB 15,994 in 2024, representing a growth of approximately 7.4%[40] - Total student enrollment increased from 57,654 in 2023 to 58,340 in 2024, reflecting a growth of about 1.2%[39] Operational Developments - The company continues to focus on providing higher education services in China, with plans for market expansion and new product development[8] - The company has acquired land use rights for two plots in Zhengzhou, Henan Province, to build a new campus for its economic and trade college, aligning with its expansion strategy[26] - The company plans to expand its school network in China and overseas, including the construction of a new campus in Zhengzhou, Henan, with an estimated capacity of approximately 20,000 students[41] - The company intends to acquire or invest in underutilized schools in China, particularly in Central, Eastern, and Southern regions[41] - The company has established nine research institutes and centers, enhancing its educational offerings and research capabilities[28] - The company operates ten on-campus training bases and 169 experimental training rooms, supporting its vocational education initiatives[29] Employee and Operational Costs - Employee benefits expenses, excluding director remuneration, rose to RMB 299,704,000 in 2024 from RMB 251,342,000 in 2023, reflecting a 19.2% increase[20] - Operating expenses increased, with administrative expenses rising by RMB 21.0 million to RMB 128.3 million, primarily due to higher employee costs[48] - The total employee benefits expenditure for the year, excluding directors' remuneration, was approximately RMB 299.7 million, with the number of employees increasing from 2,313 to 2,419[63] Strategic Partnerships and Rankings - Changzheng College has established partnerships with 375 industry associations and enterprises to create off-campus internship training bases[31] - The company ranks first in the enrollment plan for private colleges in Zhejiang Province for 2024, indicating strong demand for its educational services[27] - Zhengzhou Economic and Trade College ranks sixth in the enrollment plan for private undergraduate colleges in Henan Province for 2024[32] Financial Management and Governance - The group has no significant reliance on any single customer, with no customer contributing 10% or more to total revenue in 2023[15] - The group had no bank borrowings as of December 31, 2024, and confirmed no difficulties in obtaining bank loans or any defaults on repayments[58] - The group has no contingent liabilities, guarantees, or significant litigation as of December 31, 2024[59] - The group has not declared a final dividend for the year ending December 31, 2024[68] - The audit committee, consisting of three independent non-executive directors, reviewed the group's annual financial performance and internal controls[70] Future Outlook - The company is exploring opportunities to acquire suitable overseas target schools[42] - The remaining net proceeds of approximately RMB 415 million are now allocated for the construction and development of a new campus in Zhengzhou, Henan Province, expected to be completed by December 31, 2025[73]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 517,419 thousand, representing a 17% increase from RMB 441,055 thousand in the same period of 2023[11]. - Gross profit increased to RMB 347,238 thousand, up 18% from RMB 294,801 thousand year-over-year[11]. - Operating profit before tax rose by 25% to RMB 341,204 thousand compared to RMB 272,989 thousand in the previous year[11]. - The company reported a net profit of RMB 340,998 thousand, reflecting a 25% increase from RMB 272,163 thousand year-over-year[11]. - Profit before tax increased to RMB 341,204,000, a rise of 25.0% from RMB 272,989,000 in the previous year[77]. - Net profit for the period was RMB 340,998,000, compared to RMB 272,163,000 in the prior year, reflecting a growth of 25.3%[77]. - Core net profit for the six months ended June 30, 2024, was RMB 343.725 million, up from RMB 274.194 million in 2023, representing a growth of approximately 25.4%[41]. - The profit attributable to the owners of the company increased by approximately 26% to RMB 267.5 million[40]. - Basic and diluted earnings per share for the period were RMB 16.71, up from RMB 13.22 in the same period last year[78]. Assets and Liabilities - Net current assets increased by 21% to RMB 1,705,075 thousand from RMB 1,404,155 thousand[12]. - Total equity grew by 10% to RMB 3,745,630 thousand from RMB 3,403,095 thousand[12]. - Current liabilities decreased significantly by 74% to RMB 189,875 thousand from RMB 729,945 thousand[12]. - Total liabilities decreased significantly, with current liabilities dropping to RMB 189,875,000 from RMB 729,945,000, a reduction of approximately 74%[80]. - The net assets of the company increased to RMB 3,745,630,000 from RMB 3,403,095,000, marking an increase of around 10.1%[81]. - Cash and cash equivalents decreased by RMB 271.1 million to RMB 1,724.8 million as of June 30, 2024, primarily due to net cash outflow from operating activities of approximately RMB 143.8 million[44]. - The company had no bank loans or other borrowings as of June 30, 2024, resulting in a debt-to-asset ratio of 0%[45]. Educational Operations - The company operates the largest private higher education institution in Zhejiang Province and is a leading institution in Henan Province, focusing on both higher and secondary education services[16]. - Longzheng College has a recruitment plan for 2023 that ranks first in the private college recruitment plan in Zhejiang Province[16]. - Longzheng College offers 38 full-time vocational programs across 11 categories, including finance, education, and healthcare[16]. - The college has established 10 on-campus training bases and 169 experimental training rooms, with several recognized as provincial and national demonstration training bases[18]. - The company collaborates with 375 industry associations and enterprises to enhance student training and employment opportunities[18]. - Longzheng College is a pilot unit for the "Chinese Characteristic Apprenticeship System" and has developed 27 vocational skill standards for small and micro enterprises[18]. - The college has been recognized for its high-level professional groups, including the "Cross-Border E-Commerce Professional Group" and several provincial-level advantageous and characteristic programs[17]. - Zhengzhou Economic and Trade College ranked fifth in Henan Province for private undergraduate enrollment plans in 2023, with a total of 35,722 students as of June 30, 2024, up from 32,677 in 2023, representing a growth of approximately 6.3%[24]. - The college has established partnerships with over 200 enterprises to create high-quality off-campus internship bases, enhancing practical training opportunities for students[20]. Financial Management and Investments - The company plans to acquire or invest in underutilized higher education institutions in Central, Eastern, and Southern China[28]. - The financing cost for the period was RMB 13,000, compared to RMB 4,000 in the previous period[36]. - The company has created multiple technical service platforms, including the Zhejiang Small and Micro Enterprise Credit Research Center and the Zhejiang Small and Micro Enterprise Risk Prevention Consultation and Service Center[18]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[60]. - The company plans to allocate 50% of the IPO proceeds (approximately RMB 231 million) for acquiring other schools to expand its school network by December 31, 2025[60]. - 40% of the IPO proceeds (approximately RMB 184 million) will be used for expanding the business, including establishing new campuses for the Economic and Trade Academy and the Long March Academy by December 31, 2025[60]. Regulatory and Compliance - The implementation of the 2021 Regulations on the Promotion of Private Education in China allows private schools to enjoy tax benefits similar to public schools, particularly for non-profit institutions[53]. - For profit-making private schools, at least 10% of audited annual net income must be allocated to a development fund for the school's development[53]. - The company operates private higher education and high school education businesses in China through structured contracts due to legal restrictions on foreign investment in the private education sector[54]. - The company has not faced any regulatory intervention regarding the adoption of structured contracts to consolidate the financial performance of its subsidiaries[54]. - The company has implemented specific measures to comply with qualification requirements for establishing Sino-foreign joint schools, although detailed guidelines are not yet published[55]. Employee and Management Information - Employee benefits expenses for the six months ended June 30, 2024, totaled approximately RMB 135.8 million, reflecting the company's commitment to maintaining good employee relations[50]. - Approximately 98.8% of teachers at Zhengzhou Economic and Trade College hold a bachelor's degree or higher, with about 73.1% possessing a master's degree or above, ensuring high teaching quality[22]. - The company reported a significant increase in management compensation, totaling RMB 12,442,000 for the six months ended June 30, 2024, compared to RMB 6,984,000 for the same period in 2023, marking an increase of about 78.5%[117]. Miscellaneous - The company has no significant contingent liabilities or major lawsuits as of June 30, 2024[47]. - There were no major investments or asset acquisitions or disposals during the reporting period[51]. - The company has no foreign exchange hedging policies in place but continues to monitor foreign exchange risks[48]. - No significant events occurred after June 30, 2024, that would materially impact the company's operations and financial performance[52].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 517,419,000, an increase of RMB 76,364,000 or 17% compared to RMB 441,055,000 for the same period in 2023[1] - Gross profit for the same period was RMB 347,238,000, reflecting an increase of RMB 52,437,000 or 18% from RMB 294,801,000 in 2023[1] - The company's profit for the period was RMB 340,998,000, which is an increase of RMB 68,835,000 or 25% compared to RMB 272,163,000 in the previous year[1] - Core net profit was reported at RMB 343,725,000, up by RMB 69,531,000 or 25% from RMB 274,194,000 in 2023[1] - Basic and diluted earnings per share for the period were RMB 16.71, compared to RMB 13.22 for the same period in 2023[4] - The group's profit before tax for the six months ended June 30, 2024, was RMB 267,523,000, compared to RMB 211,648,000 for the same period in 2023, representing a year-on-year increase of approximately 26.4%[21] - The basic and diluted earnings per share for the six months ended June 30, 2024, were RMB 0.1671, compared to RMB 0.1322 for the same period in 2023, marking an increase of approximately 26.5%[21] - The total tax expense for the six months ended June 30, 2024, was RMB 206,000, down from RMB 826,000 in the same period of 2023, representing a decrease of approximately 75.0%[19] - The company's profit before tax increased by 25% to approximately RMB 341.2 million for the period[47] - Net profit attributable to the company's owners grew by approximately 26% to RMB 267.5 million for the six months ended June 30, 2024[47] Revenue Sources - Tuition fees contributed RMB 470,100,000, up from RMB 397,010,000, reflecting a growth of 18.4% year-over-year[14] - Other educational service fees amounted to RMB 11,438,000, representing a 13.1% increase from RMB 10,111,000 in the previous year[14] - Interest income increased to RMB 26,090,000, compared to RMB 23,238,000, marking an increase of 12.0%[14] - Total other income and gains were RMB 40,167,000, slightly up from RMB 39,389,000, indicating a growth of 2.0%[14] - The group has no revenue from any single customer accounting for 10% or more of total revenue during the reporting period[13] Assets and Liabilities - Non-current assets totaled RMB 2,081,700,000 as of June 30, 2024, compared to RMB 2,029,589,000 at the end of 2023[5] - Current assets decreased to RMB 1,894,950,000 from RMB 2,134,100,000 at the end of 2023[5] - Total liabilities decreased significantly, with current liabilities at RMB 189,875,000 compared to RMB 729,945,000 at the end of 2023[5] - The company's total equity increased to RMB 3,745,630,000 as of June 30, 2024, from RMB 3,403,095,000 at the end of 2023[6] - The net value of current assets increased by approximately RMB 300.9 million to RMB 1,705.1 million as of June 30, 2024[48] - The company has no bank loans or other borrowings, resulting in a zero debt-to-asset ratio as of June 30, 2024[50] Employee and Operational Costs - Employee benefit expenses (excluding directors' remuneration) increased to RMB 135,775,000 for the six months ended June 30, 2024, from RMB 106,898,000 in the same period of 2023, reflecting a growth of about 27.0%[16] - The depreciation of property, plant, and equipment was RMB 32,453,000 for the six months ended June 30, 2024, compared to RMB 30,668,000 for the same period in 2023, indicating an increase of approximately 5.8%[16] - Employee benefits expenses for the six months ended June 30, 2024, amounted to approximately RMB 135.8 million, excluding director remuneration[55] Strategic Initiatives and Future Plans - The company continues to focus on providing higher education services in China, indicating potential for future growth in this sector[7] - The company plans to establish a degree-granting higher education institution in California, focusing on business administration and international business courses[40] - The company plans to acquire or invest in underutilized higher education institutions in China with significant development potential[39] - The college plans to establish a new campus in Kaifeng, Henan Province, with an estimated capacity of approximately 15,000 students, and aims to set up a new Changzheng College campus with a total enrollment of no less than 5,000 students[38] - The company has completed the registration of Lean Middle School as a for-profit private school, which will be subject to a corporate income tax rate of 25% starting from 2023[18] Educational Services and Collaborations - The group operates solely in China, with all revenue generated and long-term assets located within the country[12] - The college offers 38 full-time vocational programs across 11 categories, including finance, commerce, and healthcare, with several programs recognized as provincial-level specialties[26] - Changzheng College has established 10 on-campus training bases and 169 experimental training rooms, enhancing practical training opportunities for students[27] - The college collaborates with 375 industry associations and enterprises to establish off-campus internship training bases, promoting industry-academia integration[28] - The college has established partnerships with over 200 enterprises to create high-quality off-campus internship bases, enhancing the practical training of students[31] Governance and Compliance - The company has adopted all provisions of the Corporate Governance Code, with a noted exception regarding the separation of the roles of Chairman and CEO[58] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ended June 30, 2024[62] Market Position and Growth Potential - The company operates as the largest private higher education institution in Zhejiang Province and a leading institution in Henan Province, benefiting from favorable government policies supporting vocational education[24] - The company anticipates continued growth in demand for higher education in Henan Province, where the enrollment rate is below the national average, indicating a strong market opportunity[24] - Zhengzhou Economic and Trade College ranked fifth in the enrollment plan among private undergraduate colleges in Henan Province for 2023, with a total of 35,722 students as of June 30, 2024, up from 32,677 in 2023, representing an increase of approximately 6.3%[36] - Approximately 98.8% of the college's teachers hold a bachelor's degree or above, and about 73.1% possess a master's degree or higher, indicating a strong emphasis on faculty quality[34] Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2024, amounted to RMB 84.9 million, significantly up from RMB 21.4 million in the same period last year[51] - The net proceeds from the IPO were approximately HKD 524 million (equivalent to about RMB 461 million), with 50% allocated for acquiring other schools to expand the school network[64] - 40% of the IPO proceeds are designated for business expansion, including establishing new campuses for the Economic and Trade Institute and Changzheng Institute[64] - 10% of the IPO proceeds, amounting to RMB 46 million, has been allocated for working capital and general corporate purposes[64] Other Notable Information - The group has no supplier financing arrangements, thus the recent accounting standard revisions had no impact on the interim financial data[10] - The group has not recognized any tax provision for the income generated from educational services provided by Zhengzhou Economic Trade College and Changzheng College during the reporting period[18] - The company has not engaged in any significant investments, acquisitions, or asset sales during the reporting period[56] - No significant events occurred after June 30, 2024, that would materially impact the group's operations and financial performance[57]