Core Viewpoint - The recognition of China Chunlai as a "Sustainable Development Excellence Enterprise" at the "Gelonghui Mid-term Strategy Summit 2025" highlights the growing importance of ESG (Environmental, Social, and Governance) principles in investment decisions, particularly in the education sector [1][11]. Group 1: ESG Empowerment and Value Reconstruction - China Chunlai has effectively utilized ESG as a strategic lever to reshape its value, demonstrating a unique path of value creation in the education sector [3]. - The company has maintained a commitment to high-quality education, addressing regional industry needs through tailored programs, which has significantly alleviated local employment pressures [4]. - As of December 31, 2024, the average employment rate for graduates from China Chunlai's higher education programs reached approximately 94.54%, showcasing its success in cultivating high-quality, market-ready talent [4]. Group 2: Focus on Downstream Markets - The company has adopted a livelihood-oriented expansion strategy, ensuring that quality educational resources are accessible in underserved regions, thereby promoting educational equity [5]. - China Chunlai has established institutions in economically weaker cities, enhancing local educational standards and contributing to regional economic development [6]. Group 3: Integration of AI and Industry-Education Collaboration - The company has embraced AI technology, establishing AI colleges and enhancing partnerships with enterprises to accelerate the application of AI in education, which improves teaching quality and efficiency [6]. - China Chunlai's initiatives in AI-related vocational training and continuing education not only reduce operational costs but also open new revenue streams, aligning with the growing trend of AI in the education sector [6][9]. Group 4: ESG Premium and Growth Certainty - The market often underestimates the potential ESG premium and growth prospects of private higher education institutions like China Chunlai, which actively implement ESG principles [8]. - The company's achievements in employment and social service can leverage policy support and enhance its reputation, leading to increased student enrollment and stable revenue from tuition and accommodation [9]. - China Chunlai's alignment with emerging industries through its specialized programs creates new business opportunities, including vocational training and industry-academia collaboration [9]. Group 5: Financing Advantages and Future Growth - The company's strong ESG performance positions it favorably for low-cost financing, which is crucial for the steady advancement of its long-term strategies [9]. - Recent policy initiatives from the People's Bank of China and other departments to support financing in education and related sectors further enhance China Chunlai's growth potential [10]. Group 6: Conclusion - The award received by China Chunlai signifies a pivotal moment for the visibility of ESG value in the private higher education sector, potentially catalyzing improved market performance [11]. - The company's ongoing commitment to ESG practices positions it as a key player in supporting employment, social welfare, and national economic transformation, setting a new benchmark for sustainable development in the industry [12].

Core Viewpoint - The "Gelonghui Golden Award" ESG Excellence Company selection recognizes companies that excel in environmental, social, and governance dimensions, contributing to China's dual carbon goals and setting benchmarks for long-term value in the capital market [1][2]. Group 1: Award Winners - Twelve companies were awarded the "ESG Sustainable Development Excellence Enterprise" title, including Fourth Paradigm (06682.HK), JinJing New Energy (01783.HK), Kangqiao Yuelife (02205.HK), Ping An Good Doctor (01833.HK), AAC Technologies (02018.HK), Shoucheng Holdings (00697.HK), Tongwei Co., Ltd. (600438.SH), Yaoshi Bang (09885.HK), Zhaojin Mining (01818.HK), China Chunlai (01969.HK), China Reinsurance (01508.HK), and China Nuclear International (02302.HK) [1]. - The ranking of the awarded companies is in alphabetical order and does not indicate any specific order of merit [1]. Group 2: Evaluation Criteria - The selection process involved quantitative data analysis and evaluation by an expert panel to determine the final results [1]. - The award aims to highlight companies that actively promote green transformation and social responsibility through transparent governance [1]. Group 3: Scope of the Selection - The ESG Excellence Company selection covers all listed companies on the Hong Kong Stock Exchange, Shanghai Stock Exchange, Shenzhen Stock Exchange, New York Stock Exchange, American Stock Exchange, and NASDAQ [2]. - The initiative is designed to create a reference value ranking of outstanding companies in the ESG field within the investment community [2].

Group 1 - The core viewpoint is that Morningstar has assigned a 5-star quantitative rating to China Spring (01969), indicating that the current stock price is attractive to investors, with a strong financial health rating [1] - The current stock price is at a 21% discount compared to Morningstar's estimated fair value of HKD 5.27 per share [1] - The net cash flow from operating activities for China Spring is projected to be CNY 1.034 billion from 2021 to 2024, indicating stable and substantial cash flow that supports ongoing development [1] Group 2 - For the six months ending February 28, 2025, the company reported revenue of CNY 891 million, a year-on-year increase of 9.4%, and an adjusted net profit of CNY 403 million with an adjusted net profit margin of 45.2% [1] - The number of enrolled students increased by 6.5% from 104,053 on February 29, 2024, to 110,861 on February 28, 2025, reflecting growth in the company's operational scale [1] - The company's profit margin of 16.9% ranks in the top 10% among global peers, showcasing its strong profitability [1] Group 3 - Morningstar highlights that the company's valuation metrics convey positive signals, with an 87.5% return on book value placing it in the top 40% among global peers [2] - The market price relative to the book value of equity is low, which supports Morningstar's favorable price/fair value ratio conclusion [2]

Core Viewpoint - The article emphasizes the need for a valuation shift in the private higher education industry from PE (Price to Earnings) to EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization) to better reflect the true value of companies like China Chunlai [1][3][12]. Valuation Methodology - The PE ratio is calculated as PE = Market Value / Net Profit, reflecting the price investors are willing to pay for each unit of net profit [4]. - EV/EBITDA includes two key concepts: Enterprise Value (EV), which reflects the total cost of acquiring a company, and EBITDA, which indicates the core operating cash flow of a business [6][7]. Industry Context - The private higher education sector has been rapidly developing and consolidating, with frequent mergers and acquisitions, making EV/EBITDA a more suitable valuation method to assess potential synergies and integration value [8]. Company Case Study: China Chunlai - China Chunlai has seen its total assets grow from 3.754 billion to 7.254 billion from 2020 to 2024, indicating significant investment in asset expansion to support business growth [8]. - The company is expanding its campuses and increasing enrollment through acquisitions, reflecting a heavy investment in fixed assets [8]. Valuation Comparison - China Chunlai's EV/EBITDA ratio is significantly lower than the industry average, with a current ratio of 6.2 compared to the Hong Kong education sector median of 8.2 and A-share average of 21 [11][12]. Investment Highlights - High EBITDA margins indicate strong profitability, with China Chunlai achieving an EBITDA margin exceeding 50% in FY2024 [14]. - The company has demonstrated stable cash flows, with net cash flows from operating activities ranging from 742 million to 1.074 billion from 2021 to 2024, supporting ongoing investments and financial health [15][16]. - Cost reduction and efficiency improvements are being driven by increased enrollment and optimized resource allocation, enhancing market competitiveness and revenue potential [17]. Growth Potential - The company is leveraging past acquisition experiences to enhance operational efficiency and reduce costs through resource integration [18]. - The current market environment, with increasing foreign investment in Chinese assets, presents favorable conditions for China Chunlai to unlock hidden value [19][22]. Conclusion - The shift from PE to EV/EBITDA valuation reflects a broader market recognition of the stable cash flow and asset-heavy nature of the private higher education sector, providing a new perspective for valuing companies like China Chunlai [23].

Group 1 - The valuation methods in the capital market vary, and different industries require tailored valuation systems to accurately assess true corporate value [1][3] - The private higher education sector has primarily focused on PE valuation, but using EV/EBITDA reveals overlooked value that needs market re-evaluation [1][3] - China Chunlai (01969.HK) serves as a case study to explore investment opportunities within the private higher education sector [1][10] Group 2 - The shift from PE to EV/EBITDA valuation is necessary due to the different calculation methods, with PE reflecting market value relative to net profit, while EV/EBITDA focuses on core operational cash flow [4][5][6] - PE can be distorted by non-cash expenses like depreciation, which significantly affect net profit in asset-heavy industries like higher education [9] - EV/EBITDA provides a clearer picture of a company's operational profitability and is more suitable for evaluating companies in the frequently merging and leveraged higher education sector [9][10] Group 3 - China Chunlai's total assets increased from 3.754 billion to 7.254 billion RMB from 2020 to 2024, indicating significant investment in asset expansion [10] - The company is expanding through both existing campus enhancements and acquisitions, reflecting a heavy investment in assets [10] - The EV/EBITDA method is more appropriate for valuing China Chunlai, helping investors recognize its core business value and growth potential [10][12] Group 4 - China Chunlai's EV/EBITDA is significantly lower than industry averages, with a current multiple of 6.2 compared to the Hong Kong education sector median of 8.2 [14][15] - The company has a high EBITDA margin, with over 50% in the fiscal year 2024, showcasing strong profitability [17] - Stable cash flow from operations, with net cash flows of 742 million, 1.16 billion, 1.074 billion, and 1.034 billion RMB from 2021 to 2024, supports ongoing development and financial health [17] Group 5 - Cost reduction and efficiency improvements are driven by increased enrollment and optimized resource allocation, enhancing market competitiveness [19] - The company benefits from synergies in its acquisitions, leading to improved operational efficiency and reduced costs [20] - The release of hidden asset value through effective management and integration of acquired institutions is expected to drive growth [20][23] Group 6 - The influx of foreign investment into Chinese assets presents a favorable market opportunity for China Chunlai [22] - The company's EV/EBITDA valuation is significantly lower than international peers, indicating potential for value release as foreign interest grows [24] - The shift to EV/EBITDA valuation aligns with market recognition of the true value of stable cash flow assets in the education sector [25]

Enrollment Growth - The total number of enrolled students increased from 104,053 as of February 29, 2024, to 110,861 as of February 28, 2025, representing a growth of approximately 6.7%[4] - Total student enrollment increased from 104,053 in 2024 to 110,861 in 2025, representing a growth of 6.5%[34] - Shandong University of Technology's enrollment in undergraduate programs rose by 8.2% to 10,223 students in 2025[30] - Enrollment in the Applied Technology College of Shangqiu University increased by 2.3% to 15,532 students[30] - Enrollment in the Health College surged by 43.6% to 9,808 students in 2025[30] - The enrollment at Anyang University decreased by 8.6% to 26,406 students, with a significant drop in the transfer program by 35.8%[30] - The Anyang University Yuanyang Campus saw an increase of 21.4% in total enrollment, reaching 13,046 students[30] - Enrollment in the undergraduate programs at Jingzhou University increased by 3.9% to 7,706 students[32] - The total number of students in vocational education programs decreased by 20.9% at Shangqiu University[30] - The Applied Technology College of Shangqiu University experienced a 148.8% increase in enrollment for specialized programs[30] Financial Performance - Revenue rose from RMB 813.9 million for the six months ended February 29, 2024, to RMB 890.7 million for the reporting period, marking an increase of 9.4%[5] - Gross profit increased by 1.2%, from RMB 493.7 million to RMB 499.8 million during the same period[14] - Profit before tax grew by 6.4%, from RMB 388.1 million to RMB 413.0 million[14] - The adjusted net profit for the period was RMB 402.6 million, up 4.3% from RMB 386.0 million[14] - The overall gross profit margin decreased to 56.1% from 60.7% for the six months ended February 29, 2024[51] - The total revenue for the reporting period was RMB 890.7 million, representing a 9.4% increase from RMB 813.9 million for the six months ended February 29, 2024[44] - The adjusted net profit for the reporting period was RMB 402.6 million, an increase of RMB 16.5 million or 4.3% compared to RMB 386.0 million for the six months ended February 29, 2024[44][61] - Operating profit increased to RMB 449.14 million from RMB 435.41 million, reflecting a growth of 3.1% year-over-year[143] - Total comprehensive income for the period was RMB 406.56 million, up from RMB 384.27 million, indicating a year-over-year increase of 5.8%[143] - Basic earnings per share increased to RMB 0.34 from RMB 0.32, while diluted earnings per share rose to RMB 0.33 from RMB 0.31[143] Strategic Plans and Developments - The company plans to acquire more land and resources to further expand enrollment in response to market opportunities[4] - The company is actively working to convert Tianping College into an independent private university[18] - The company aims to complete the transition of Tianping College to an independent private university by September 2026[37] - The company plans to acquire more land use rights and build new educational and living facilities to increase total student enrollment capacity[43] - The company is executing a business plan aimed at expanding its overseas education operations, indicating a commitment to meet qualification requirements[122] - The company is in discussions with several reputable overseas education service providers to expand its school network[122] - The company is exploring international business collaborations, including contracts with foreign educational institutions and potential investments or acquisitions in overseas education businesses[125] - The company plans to deploy the DeepSeek R1 model to enhance AI education and integrate it into a collaborative AI education platform with Beijing Gravity Internet Technology Co., Ltd.[134] Shareholder Information - The company does not recommend the distribution of an interim dividend for the reporting period[14] - The board of directors does not recommend the distribution of an interim dividend for the six months ending February 29, 2024, while a final dividend of RMB 0.0924 per share has been approved, totaling approximately RMB 110,880,000[113] - The company has two existing share plans: the Pre-IPO Share Option Plan and the Share Award Plan, with no options or awards granted during the reporting period[91] - Under the Pre-IPO Share Option Plan, a total of 32,550,000 share options were granted to 20 participants on September 1, 2024, and February 28, 2025, representing approximately 2.71% of the total issued shares as of February 28, 2025[95] - The total number of shares that can be issued under the Share Award Plan is capped at 84,000,000 shares, which accounts for 7% of the company's issued share capital as of February 28, 2025[100] - As of February 28, 2025, the company has no outstanding options or awards under the Share Award Plan[100] - Mr. Hou holds a controlled interest in 900,000,000 shares, representing 75% of the company, and an additional 6,000,000 shares, representing 0.50%[101] - The Chairman, Mr. Hou, and Ms. Jiang each hold 8,000,000 shares, representing 0.67% of the company[101] - The company has not granted or agreed to grant any awards under the Share Award Plan during the reporting period[100] - The total number of unexercised options under the Pre-IPO Share Option Plan as of February 28, 2025, is 32,550,000 shares[95] - The company aims to attract and retain suitable talent through its share plans, enhancing overall value for shareholders[95] Compliance and Legal Matters - The company is monitoring future legal regulations regarding foreign investment and will seek guidance from legal advisors to ensure compliance[118] - The company is committed to ensuring compliance with the new Foreign Investment Law and its implementation regulations[118] - The company’s Chinese operations comply with foreign investment control requirements, with local citizens holding key positions in management[119] - The company has not disclosed any changes in the information of directors and senior management since the last annual report[114] - The group has not engaged in any major litigation or arbitration during the reporting period[86] - The company has no significant contingent liabilities as of February 28, 2025[70] Cash Flow and Assets - As of February 28, 2025, the company's cash and cash equivalents were RMB 790.9 million and RMB 435.3 million as of August 31, 2024, and February 28, 2025, respectively[62] - The company’s total equity as of February 28, 2025, was RMB 4,181,232 thousand, an increase from RMB 3,883,903 thousand as of August 31, 2024, showing a growth of approximately 7.7%[146] - The company incurred a net cash outflow from investing activities of RMB 513,671 thousand for the six months ended February 28, 2025, compared to RMB 615,278 thousand for the same period in 2024, indicating an improvement of about 15.5%[151] - The company’s cash flow from financing activities resulted in a net outflow of RMB 722,519 thousand for the six months ended February 28, 2025, compared to RMB 357,109 thousand in the same period of 2024, indicating a significant increase in cash outflow[151] - The company reported accounts payable of RMB 374,156,000 as of February 28, 2025, compared to RMB 395,688,000 as of August 31, 2024[179] - The company has made unsecured advances to Tianping College totaling RMB 900,700,000 as of February 28, 2025, up from RMB 722,700,000 in the previous year[177] - Trade and other receivables as of February 28, 2025, totaled RMB 1,395,979,000, an increase from RMB 1,214,535,000 as of August 31, 2024[175] - Cash and cash equivalents decreased to RMB 204,311 thousand as of February 28, 2025, from RMB 382,919 thousand as of February 29, 2024, representing a decline of about 46.6%[151] Expenditures and Investments - The company invested approximately RMB 152,736,000 in property, plant, and equipment for campus infrastructure improvements during the period[168] - The capital commitments at the end of the reporting period include RMB 149,956,000 for property, plant, and equipment, and RMB 30,000,000 for investment in Tianping College[16] - The company has secured loans amounting to RMB 207,163,000, which were fully repaid during the six months ending February 28, 2025[171] - The company has made advances to Tianping College amounting to RMB 900,700,000, an increase from RMB 722,700,000 in the previous year[17] - The company has received service income of RMB 142,680,000, which was settled after February 28, 2025[176] Future Projections - The company anticipates a revenue growth forecast of 10% for the next fiscal year, projecting revenues of RMB 550 million[198] - New product offerings in vocational training are expected to launch in Q3 2024, targeting an additional 5,000 enrollments[199] - The company is expanding its market presence in Henan province, aiming to establish two new campuses by 2025[198] - A strategic acquisition of a local educational institution is planned, with an estimated cost of RMB 50 million[199] - The company is investing RMB 20 million in technology development to enhance online learning platforms[198] - The company plans to implement a new marketing strategy focusing on digital channels, aiming for a 25% increase in student inquiries[198] - The company has secured a new partnership with a technology firm to integrate AI into its educational programs, enhancing learning outcomes[199]

Core Viewpoint - China Spring (01969.HK) reported a solid half-year performance with revenue of 891 million RMB, a year-on-year increase of 9.4%, and a net profit of 407 million RMB, up 5.8% [2][3] Financial Performance - Revenue for the period reached 891 million RMB, reflecting a 9.4% year-on-year growth [2] - Net profit was 407 million RMB, marking a 5.8% increase compared to the previous year [2] - Earnings per share stood at 0.34 RMB [2] Growth Drivers - The number of enrolled students increased from 29,700 in the 2014/2015 academic year to 103,300 in the 2023/2024 academic year, with a compound annual growth rate (CAGR) of approximately 15% [4] - Revenue grew from 336 million RMB in the 2015 fiscal year to 1.631 billion RMB in the 2024 fiscal year, achieving a CAGR of 19% [6] - The company's internal expansion strategy focuses on deepening its presence in Central China, particularly in Henan Province, which has a large population and high college entrance examination participation [9][10] Strategic Initiatives - China Spring is deploying the DeepSeek R1 model to enhance AI education and applications, positioning itself as a leader in the "AI + Education" sector [12][13] - The company has signed cooperation agreements with international institutions, such as Massey University in New Zealand and Elite Education Australia, to enhance its internationalization strategy [16] Market Positioning - The company is well-positioned to benefit from policy support for private education, aligning its business model with government initiatives [19] - China Spring's growth potential is often underestimated, as the market views it as a mature entity despite its significant expansion capabilities [20][21] Future Outlook - The company has a strong potential for tuition fee increases due to its focus on enhancing educational quality and student employability [22] - AI integration is expected to improve profit margins and operational efficiency, creating new revenue streams [24] - The inclusion in the Hong Kong Stock Connect program presents new liquidity opportunities, which could catalyze valuation adjustments [26]

Financial Performance - Revenue for the six months ended February 28, 2025, was RMB 890,720,000, representing a 9.4% increase compared to RMB 813,910,000 for the same period in 2024[4] - Gross profit for the same period was RMB 499,777,000, a slight increase of 1.2% from RMB 493,706,000 in 2024[4] - Profit before tax increased by 6.4% to RMB 413,011,000 from RMB 388,111,000 year-on-year[4] - Net profit for the period was RMB 406,563,000, reflecting a 5.8% increase compared to RMB 384,271,000 in the previous year[4] - Adjusted net profit, excluding share-based compensation and foreign exchange gains/losses, was RMB 402,557,000, up 4.3% from RMB 386,047,000[4] - Total revenue for the six months ended February 28, 2025, was RMB 890,720,000, an increase of 9.5% from RMB 813,910,000 for the same period in 2024[14] - Tuition fees amounted to RMB 813,806,000, up from RMB 741,344,000, representing a growth of 9.8% year-over-year[14] - Accommodation fees increased to RMB 76,914,000 from RMB 72,566,000, reflecting a rise of 6.4%[14] - Financing costs totaled RMB 36,133,000 for the six months ended February 28, 2025, down 23.5% from RMB 47,294,000 in the prior year[16] - The gross profit margin for the reporting period was 56.1%, down from 60.7% for the six months ended February 29, 2024[53] - Cost of revenue rose by 22.1% to RMB 390.9 million, reflecting strategic optimization in teacher compensation and development plans[56] Assets and Liabilities - Total assets as of February 28, 2025, were RMB 7,130,016,000, compared to RMB 7,253,830,000 as of August 31, 2024[7] - Current liabilities decreased to RMB 2,340,721,000 from RMB 2,849,450,000, indicating improved liquidity[8] - As of February 28, 2025, the accounts receivable for tuition and accommodation fees amounted to RMB 76,856,000, a decrease from RMB 116,944,000 as of August 31, 2024, representing a decline of approximately 34%[25] - The company reported service income receivables of RMB 168,734,000 as of February 28, 2025, up from RMB 133,684,000 as of August 31, 2024, indicating an increase of about 26%[25] - The total cash and cash equivalents as of February 28, 2025, were RMB 435,311,000, a significant decrease from RMB 790,900,000 as of August 31, 2024, reflecting a decline of approximately 45%[28] - The company has capital commitments of RMB 186,978,000 as of February 28, 2025, compared to RMB 79,253,000 as of August 31, 2024, indicating an increase of approximately 136%[32] - The company reported interest payable of RMB 2,336,000 as of February 28, 2025, an increase from RMB 1,827,000 as of August 31, 2024, reflecting a rise of about 28%[29] - As of February 28, 2025, the company had outstanding loans to the Tianping College amounting to RMB 900,700,000, an increase from RMB 722,700,000 as of August 31, 2024, representing a growth of about 25%[30] Dividends and Shareholder Returns - The company did not declare an interim dividend for the six months ended February 28, 2025, compared to RMB 0.0907 per share in the previous year[20] - The company has approved a final dividend of RMB 0.0924 per share for the year ending August 31, 2024, totaling approximately RMB 110,880,000, which is an increase from RMB 63,985,000 for the previous year[24] - No interim dividend was proposed for the reporting period, while a final dividend of RMB 0.0924 per share was approved, totaling approximately RMB 110.88 million[80] Operational Highlights - The company continues to focus on expanding its operations in the private higher education sector in China[9] - The financial results reflect the company's ongoing commitment to enhancing operational efficiency and profitability[5] - The company operates six institutions across Henan and Hubei provinces, focusing on applied talent cultivation and industry integration[37] - The company is actively working to transform Tianping College into an independent private university, indicating plans for future expansion[37] - The total number of students enrolled in the company's institutions as of February 28, 2025, is 26,569 at Shangqiu College, reflecting a 3.6% increase from 25,638 in the previous year[45] - The average employment rate for graduates from higher education programs was approximately 94.54% as of December 31, 2024, indicating strong outcomes from practical training courses[38] - The company has established around 1,100 school-enterprise cooperation projects, focusing on practical skills training and enhancing employability[37] - The total number of enrolled students increased by 6.5% from 104,053 on February 29, 2024, to 110,861 on February 28, 2025, primarily due to increased enrollment at several campuses[48] Student Enrollment and Programs - The number of students enrolled in the undergraduate programs at Shangqiu College increased by 8.2%, from 9,444 to 10,223[45] - The enrollment in the specialized programs at Shangqiu College saw a significant increase of 14.8%, rising from 4,817 to 5,531[45] - The total enrollment at Shangqiu College Applied Technology College decreased by 1.6% in undergraduate programs, from 8,543 to 8,407[45] - The total number of students at Hubei Health Vocational College is 9,808 as of February 28, 2025[43] - The number of students in vocational education programs decreased by 70.2%, from 816 to 243[48] Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[81] - The company has adopted and complied with the Corporate Governance Code as per the Listing Rules[82] - All directors confirmed adherence to the Standard Code for Securities Transactions during the reporting period[83] - The company has established an audit committee consisting of three independent non-executive directors to review the interim financial statements[84] Future Plans and Innovations - The company plans to acquire more land use rights and build new educational and living facilities to increase student capacity[52] - The company aims to complete the transition of Tianping College to an independent private university by September 2026[49] - The company plans to deploy the DeepSeek R1 model by March 13, 2025, to enhance AI education and applications, integrating it into a collaborative AI education platform with Beijing Gravity Internet Technology Co., Ltd[79]

Enrollment and Student Statistics - The total number of enrolled students increased slightly from 103,277 in the 2022/2023 academic year to 103,301 in the 2023/2024 academic year[4] - The total enrollment for the 2023/2024 academic year is 103,301, a slight increase of 0.02% from 103,277 in the previous year[36] - The enrollment at Anyang College increased by 1,478 students (17.4%) for undergraduate programs, reaching 9,951 in 2023/2024[35] - The enrollment in the Applied Technology College of Shangqiu saw a significant drop of 5,001 students (47.0%) in diploma programs, decreasing to 5,631[34] - The total enrollment for Shangqiu College decreased by 4,312 students (14.7%) to 25,046[34] - The health college experienced a remarkable increase of 3,106 students (84.0%) in diploma programs, reaching 6,805[35] - The overall admission rate for undergraduate programs across five colleges was 94.41% for the 2023/2024 academic year[34] - The enrollment in vocational education programs at Shangqiu College decreased by 965 students (16.0%) to 5,052[34] - The total number of students at Anyang College's original campus increased by 2,670 students (32.9%) to 10,788[35] Financial Performance - Revenue rose from RMB 1,498.0 million for the year ended August 31, 2023, to RMB 1,631.5 million during the reporting period, representing an increase of approximately 8.9%[5] - Adjusted net profit for the year was RMB 789.9 million, up from RMB 673.2 million in the previous year, reflecting a growth of about 17.3%[14] - The total comprehensive income for the year was RMB 778.2 million, compared to RMB 684.4 million in the previous year, marking an increase of about 13.8%[14] - Revenue for the year ended August 31, 2024, was RMB 1,631,496,000, representing an increase of 8.9% from RMB 1,497,962,000 in 2023[16] - Gross profit for the same period was RMB 955,503,000, up 7.4% from RMB 890,055,000 in 2023[16] - Profit before tax increased by 14.3% to RMB 786,913,000 from RMB 688,175,000 in 2023[16] - The gross profit margin decreased slightly to 58.6% from 59.4% in the previous year[14] - The company recorded revenue of RMB 1,631.5 million and gross profit of RMB 955.5 million for the reporting period, with a gross margin of 58.6%, down from 59.4% in the previous year[44] - The adjusted net profit increased by RMB 116.7 million or 17.3% year-over-year to RMB 789.9 million, with an adjusted net profit margin of 48.4% compared to 44.9% in the previous year[44] Assets and Equity - Non-current assets increased from RMB 4,997.1 million in 2023 to RMB 5,248.4 million in 2024[14] - The total equity rose to RMB 3,883.9 million in 2024, compared to RMB 3,275.7 million in 2023, indicating a growth of approximately 18.5%[14] - The capital debt ratio of the company decreased to approximately 57.9% from 66.2% in the previous year, due to an increase in total equity[61] - The total asset value as of August 31, 2024, is approximately RMB 6,221,226,000, representing an increase from RMB 6,132,635,000 in the previous year[164] - As of August 31, 2024, the asset value under contractual arrangements accounts for about 86% of the group's total asset value, down from 95% in 2023[166] Strategic Initiatives and Partnerships - The company is actively acquiring more land and resources in Henan Province to expand enrollment capacity[4] - The company is actively pursuing the acquisition of Tianping College's operator rights, enhancing its market presence[21] - The company has established strategic partnerships with Australian Elite Education Institute and Massey University in New Zealand to promote educational diversification and internationalization[78] - A partnership agreement was signed with Beijing Gravity Interconnect Technology Co., Ltd. to develop an artificial intelligence education platform[40] Employment and Human Resources - The average employment rate for graduates from higher education programs was approximately 93.56% as of August 31, 2024[21] - The company employed 5,180 employees as of August 31, 2024, up from 4,750 employees in the previous year[74] - The total salary cost for the reporting period was RMB 356.2 million, an increase from RMB 330.8 million for the year ending August 31, 2023[77] - The company aims to enhance its recruitment and training programs to attract top talent in the education industry[94] Governance and Management - The board includes independent directors who provide independent judgment and oversight, ensuring compliance and governance[93] - The management team is composed of experienced professionals with diverse backgrounds in education and finance, contributing to the company's strategic objectives[88] - The company has a strong management team with members holding advanced degrees and extensive experience in education and finance, enhancing operational efficiency[99] - The board's composition reflects a commitment to governance and accountability, with independent directors playing a crucial role in decision-making[90] - The company emphasizes the importance of board diversity for achieving strategic goals and sustainable development, considering factors such as gender, age, educational background, and professional experience[192] Risks and Compliance - The group faces several major risks and uncertainties, including maintaining or increasing student enrollment and tuition fees[125] - The company has not reported any changes in major shareholders or significant ownership interests during the reporting period[187] - The company has not engaged in any significant litigation or arbitration during the reporting period[173] - The company has not identified any tax exemptions or reliefs available to shareholders due to their holdings[146] Community Engagement and Environmental Policies - The group is committed to maintaining good relationships with stakeholders, including students and staff, which is crucial for its success[119] - The group has adopted environmental policies to implement eco-friendly measures and practices in its business operations[120] - During the reporting period, the group made charitable donations amounting to approximately RMB 139,000, compared to none in 2023[134] - The group is actively reviewing its environmental policies and considering further eco-friendly measures in its operations[114] Future Plans and Investments - The company plans to acquire more land use rights and build new educational and living facilities to increase student enrollment capacity, which is crucial for future expansion strategies[43] - The company anticipates that the Ministry of Education will accept its application to increase enrollment quotas, contingent on demonstrating sufficient capacity and quality educational offerings[43] - The company has not made any significant investments during the reporting period, with no investments exceeding 5% of total assets as of August 31, 2024[64] - The company has no other significant future plans for investments or capital assets beyond what has been disclosed in the annual report[73]

Revenue and Profit Growth - Revenue increased by 8.9% to RMB 1,631,496 thousand in 2024 compared to RMB 1,497,962 thousand in 2023[3] - Gross profit rose by 7.4% to RMB 955,503 thousand in 2024 from RMB 890,055 thousand in 2023[3] - Profit before tax grew by 14.3% to RMB 786,913 thousand in 2024 compared to RMB 688,175 thousand in 2023[3] - Net profit for the year increased by 13.7% to RMB 778,171 thousand in 2024 from RMB 684,393 thousand in 2023[3] - Adjusted net profit rose by 17.3% to RMB 789,883 thousand in 2024 compared to RMB 673,227 thousand in 2023[3] - Total revenue for 2024 reached RMB 1,631,496 thousand, a 8.9% increase from RMB 1,497,962 thousand in 2023[23] - Revenue increased by 8.9% to RMB 1,631.5 million, primarily due to higher average tuition fees[97] - Gross profit rose by 7.4% to RMB 955.5 million, with a gross margin of 58.6%, down from 59.4% in the previous year[100] - Net profit for the year ended August 31, 2024, was RMB 778.2 million, with a net profit margin of 47.7%, up from 45.7% in the previous year[95] - Adjusted net profit increased by 17.3% to RMB 789.9 million, driven by higher average tuition fees[95] - Annual profit increased by 13.7% from RMB 684.4 million in the year ended August 31, 2023, to RMB 778.2 million in the reporting period[108] - Adjusted net profit (non-IFRS measure) increased by 17.3% from RMB 673.2 million in the year ended August 31, 2023, to RMB 789.9 million in the reporting period[110] Assets and Liabilities - Property, plant, and equipment increased to RMB 3,161,911 thousand in 2024 from RMB 2,987,663 thousand in 2023[8] - Trade and other receivables grew significantly to RMB 1,214,535 thousand in 2024 from RMB 670,988 thousand in 2023[8] - Net current liabilities decreased to RMB 844,008 thousand in 2024 from RMB 987,435 thousand in 2023[10] - Total assets less current liabilities increased to RMB 4,404,380 thousand in 2024 from RMB 4,009,653 thousand in 2023[11] - The total property, plant, and equipment as of August 31, 2024, amounted to RMB 4,525,723,000, with significant additions in buildings (RMB 24,708,000), furniture and fixtures (RMB 34,456,000), and electronic equipment (RMB 115,386,000)[42] - The net book value of property, plant, and equipment as of August 31, 2024, was RMB 3,161,911,000, compared to RMB 2,987,663,000 as of August 31, 2023[44] - The company is in the process of obtaining property certificates for buildings with a total book value of RMB 1,398,507,000 as of August 31, 2024 (2023: RMB 1,033,758,000)[44] - The intangible assets, specifically the school operation rights of Jingzhou College, were valued at RMB 188,000,000 using the discounted cash flow method with a discount rate of 12% (2023: 15%)[46] - The prepayment for the cooperation agreement with Tianping College is RMB 800,111,000, which will be treated as the acquisition cost once the transfer of the college's operation rights is completed[48] - The company has offshore foreign deposits of USD 40,000,000 (approximately RMB 283,604,000) as collateral for RMB-denominated domestic loans[49] - Trade and other receivables as of August 31, 2024, totaled RMB 1,214,535,000, with significant increases in receivables for tuition and accommodation fees (RMB 116,944,000) and service income (RMB 133,684,000)[53] - Accounts receivable for tuition and accommodation fees increased to RMB 116,944 thousand in 2024, up from RMB 80,275 thousand in 2023, with the largest increase in the 181 to 365 days category (RMB 31,598 thousand vs. RMB 13,443 thousand)[54] - Total borrowings increased to RMB 2,248,190 thousand in 2024 from RMB 2,171,622 thousand in 2023, with the majority (RMB 1,728,005 thousand) due within one year[60] - Fixed-rate borrowings accounted for RMB 1,955,744 thousand in 2024, while floating-rate borrowings increased significantly to RMB 292,446 thousand from RMB 70,000 thousand in 2023[63] - The actual annual interest rates for borrowings ranged from 2.50% to 9.43% for fixed-rate loans and 3.45% to 5.35% for floating-rate loans in 2024[67] - Advances to Tianping College increased significantly to RMB 722,700 thousand in 2024 from RMB 375,800 thousand in 2023, with an interest rate of 4.75%[58] - The company's total accrued expenses and other payables increased to RMB 395,688 thousand in 2024 from RMB 305,747 thousand in 2023, with the largest increase in accrued employee benefits and wages (RMB 51,694 thousand vs. RMB 35,208 thousand)[61] - Bank borrowings of RMB 1,091,216 thousand in 2024 (up from RMB 605,950 thousand in 2023) were secured by tuition fee receivables, equity of affiliated colleges, and personal guarantees[63] - Cash and cash equivalents were RMB 789.7 million and RMB 790.9 million as of August 31, 2023, and August 31, 2024, respectively[110] - Capital-to-debt ratio decreased by 8.3 percentage points from 66.2% as of August 31, 2023, to 57.9% as of August 31, 2024, due to an increase in total equity[112] Dividends and Shareholder Information - The company proposed a final dividend of RMB 0.0924 per share for 2024, compared to RMB 0.053 per share in 2023[3] - The company declared a final dividend of RMB 0.0924 per share for 2024, a 74.3% increase from RMB 0.053 per share in 2023[37] - The final dividend for the fiscal year ending August 31, 2023, is RMB 0.053 per share (approximately HKD 0.058 per share), totaling RMB 63,985,000 (approximately HKD 69,600,000), approved at the annual general meeting on January 19, 2024. Of this, RMB 63,224,000 (approximately HKD 68,763,000) has been paid, with RMB 761,000 (approximately HKD 837,000) remaining unpaid as of August 31, 2024[41] - The company has proposed a final dividend of RMB 0.0924 per share (approximately HKD 0.1 per share) for the reporting period, compared to RMB 0.053 per share (approximately HKD 0.058 per share) in 2023[128] - The final dividend will be declared in RMB and paid in HKD, with the exchange rate based on the average middle rate published by the People's Bank of China for the five business days prior to the declaration[128] - The 2025 Annual General Meeting will be held on January 10, 2025, with share transfer registration suspended from January 7 to January 10, 2025[130] - Share transfer registration will also be suspended from January 16 to January 21, 2025, to determine eligibility for the proposed final dividend[130] - The company's issued and fully paid share capital remained unchanged at 1,200,000,000 ordinary shares with a nominal value of HKD 0.00001 per share[67] Student Enrollment and Institutional Performance - The company operates a total of 6 institutions in Henan and Hubei provinces, with 1,100校企合作 projects as of August 31, 2024[71] - The average employment rate of graduates from the company's higher education programs is approximately 93.56% as of August 31, 2024[72] - Shangqiu College has a total enrollment of 25,046 students in the 2023/2024 academic year, offering 53 undergraduate programs and 38专升本 programs[74] - Shangqiu College Applied Technology College has a total enrollment of 15,170 students in the 2023/2024 academic year, offering 20 undergraduate programs and 16专升本 programs[75] - Anyang College has a total enrollment of 28,738 students in the 2023/2024 academic year, offering 46 undergraduate programs and 34专升本 programs[76] - Anyang College Yuanyang Campus has a total enrollment of 10,788 students in the 2023/2024 academic year, offering 19 undergraduate programs and 12专科 programs[77] - Health College has a total enrollment of 6,805 students in the 2023/2024 academic year, offering 19 programs in fields such as nursing and rehabilitation therapy[79] - Jingzhou College has a total enrollment of 16,754 students in the 2023/2024 academic year, offering 38 undergraduate programs and 15专升本 programs[80] - The total enrollment across all institutions increased by 24 students (0.02%) from 103,277 in 2022/2023 to 103,301 in 2023/2024[83] - Health College experienced the highest enrollment growth, with an 84.0% increase from 3,699 students in 2022/2023 to 6,805 students in 2023/2024[83] - Total student enrollment increased slightly by 0.02% to 103,301 students in the 2023/2024 academic year, driven by growth at Anyang University Yuanyang Campus, Jingzhou University, and Health College[87] - The overall enrollment rate for undergraduate programs across five institutions reached 94.41% in the 2023/2024 academic year[88] - Revenue from Anyang University Yuanyang Campus surged by 34.3% to RMB 177.2 million, mainly due to increased student enrollment[97] - Revenue from Health College jumped by 84.9% to RMB 96.7 million, also due to higher student numbers[97] Financial Costs and Income Tax - Financing costs decreased to RMB 95,720 thousand in 2024, down 23.1% from RMB 124,545 thousand in 2023, primarily due to lower interest expenses on bank and non-bank borrowings[31] - Corporate income tax expense increased to RMB 8,742 thousand in 2024, a 131.1% rise from RMB 3,782 thousand in 2023[32] - Financing costs decreased by 23.1% from RMB 124.5 million in the year ended August 31, 2023, to RMB 95.7 million in the reporting period, primarily due to lower borrowing rates[106] - Income tax expenses increased from RMB 3.8 million in the year ended August 31, 2023, to RMB 8.7 million in the reporting period, mainly due to higher taxable income[107] Strategic Initiatives and Future Plans - The company entered into a strategic cooperation agreement with ICBC to meet financial and business needs, including various financial services[93] - The company plans to acquire more land use rights and build new educational and living facilities to support future enrollment growth[94] - Anyang College and Shangqiu College entered into international education cooperation agreements with Elite Education Institute of Australia and Massey University of New Zealand in November 2024[127] - The company has fully utilized the net proceeds of RMB 489.8 million from the global offering, with RMB 18 million used during the reporting period for acquiring land use rights and constructing teaching and living facilities[139] Corporate Governance and Compliance - The company has maintained high standards of corporate governance and complies with the Corporate Governance Code and the Model Code for Securities Transactions by Directors[131][132][134] - The audit committee, consisting of three independent non-executive directors, has reviewed the audited consolidated financial statements for the year ended August 31, 2024[136] - The company did not purchase, sell, or redeem any of its listed securities during the year ended August 31, 2024[137] - The annual results announcement and annual report will be published on the Hong Kong Stock Exchange website and the company's website[140] - The board of directors includes executive directors Hou Junyu and Jiang Shuqin, executive director and CEO Zhang Jie, non-executive director and chairman Hou Chunlai, and independent non-executive directors Jin Xiaobin, Huo Peiming, and Liu Ziwen[142] Employee and Payroll Information - Total employee count increased from 4,750 as of August 31, 2023, to 5,180 as of August 31, 2024[125] - Total payroll costs for the reporting period were RMB 356.2 million, compared to RMB 330.8 million in the year ended August 31, 2023[126] Other Income and Expenses - Other income surged to RMB 128,788 thousand in 2024, a 53.2% increase from RMB 84,066 thousand in 2023, driven by higher service income and government grants[26] - Interest income from loans to Tianping College rose to RMB 27,500 thousand in 2024, up 47.1% from RMB 18,688 thousand in 2023[26] - The company has provided a refundable deposit of RMB 50,000,000 to Suzhou University of Science and Technology as a guarantee for the proper operation of Tianping College[51] - The weighted average expected loss rate for accounts receivable remained at 0% across all aging categories for both 2024 and 2023[57]