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]

Enrollment and Student Statistics - The total number of enrolled students increased from 103,931 as of February 28, 2023, to 104,053 as of February 29, 2024[4]. - Total student enrollment increased by 0.1% from 103,931 on February 28, 2023, to 104,053 on February 29, 2024[20]. - Enrollment at Anyang College's Yuanyang Campus rose by 31.9% to 10,748 students, driven by increased recruitment efforts[19]. - Enrollment at Jingzhou College increased by 22.2% to 16,752 students, reflecting successful recruitment strategies[19]. - Enrollment at Health College surged by 83.9% to 6,831 students, indicating strong demand for health-related programs[19]. - Enrollment in undergraduate programs at Shangqiu College decreased by 2.6% to 9,444 students, while the number of students in the top-up programs increased by 59.3% to 4,817[19]. - Total enrollment at Shangqiu College Applied Technology College fell by 15.9% to 15,187 students, with a significant drop in specialized programs[19]. - Anyang College's total enrollment decreased by 5.3% to 28,897 students, with a notable decline in vocational education courses[19]. - The number of students in specialized courses at Jingzhou College increased by 44.3%, contributing to overall enrollment growth[19]. - The average employment rate for graduates from higher education programs was approximately 93.52% as of December 31, 2023[11]. Financial Performance - Revenue rose from RMB 748.7 million for the six months ended February 28, 2023, to RMB 813.9 million for the six months ended February 29, 2024, representing an increase of 8.7%[7]. - Gross profit increased from RMB 471.0 million to RMB 493.7 million, reflecting a growth of 4.8%[7]. - Profit before tax grew by 15.7%, from RMB 335.5 million to RMB 388.1 million[7]. - The net profit for the period increased by 16.0%, from RMB 331.2 million to RMB 384.3 million[7]. - The adjusted net profit rose by 16.3%, from RMB 331.8 million to RMB 386.0 million[7]. - For the six months ended February 29, 2024, the company recorded revenue of RMB 813.9 million, a year-on-year increase of 8.7% from RMB 748.7 million for the same period in 2023[24]. - The gross profit for the same period was RMB 493.7 million, with a gross margin of 60.7%, down from 62.9% in the previous year[24]. - Adjusted net profit increased by RMB 54.2 million or 16.3% to RMB 386.0 million, with an adjusted net profit margin of 47.4% compared to 44.3% in the prior year[24]. - The total comprehensive income for the period was RMB 384,271,000, which is a 15.9% increase from RMB 331,172,000 in the prior year[72]. - The company reported a net profit of RMB 384,271,000, an increase of 15.9% from RMB 331,172,000 for the same period in 2023[94]. Dividends and Shareholder Information - The company proposed an interim dividend of RMB 0.0907 per share, compared to no dividend for the same period last year[8]. - The proposed interim dividend will be paid in Hong Kong dollars based on the average exchange rate published by the People's Bank of China during the five business days prior to the dividend declaration[59]. - The total amount of the final dividend for the year ending August 31, 2023, was approximately RMB 63,898,000, approved at the annual general meeting on January 19, 2024[59]. - The proposed interim dividend is RMB 0.0907 per share, totaling approximately RMB 108,840,000[95]. - The company’s chairman, Mr. Hou, holds a controlling interest through Chunlai Investment, owning 900,000,000 shares, which is 75% of the company[53][58]. - The company has a diverse ownership structure, with significant stakes held by both individual and corporate shareholders, ensuring a broad base of support[57]. Operational Developments - The company operates four schools in Henan Province and two in Hubei Province, with ongoing acquisitions to expand its educational resources[4]. - The company plans to acquire more land use rights and build new educational and living facilities to increase student enrollment capacity[23]. - The company aims to balance student enrollment numbers with campus utilization rates by gradually increasing college capacity[23]. - The company aims to enhance its educational offerings and maintain high employment rates for graduates to attract quality students[20]. - The company is actively expanding its overseas education operations and is in discussions with reputable foreign education service providers[63]. - The company is exploring partnerships with international educational institutions to enhance its curriculum offerings and attract more students[127]. Financial Management and Investments - The company’s financing costs decreased by 23.0% to RMB 47.3 million, mainly due to reduced bank borrowings[28]. - Other income increased by 53.3% to RMB 62.1 million, driven by an increase in service income[26]. - The company has established partnerships with around 900 enterprises for practical training and talent development[11]. - The company has not disclosed any changes in the interests of directors or senior management since the last report, indicating stability in leadership[60]. - The company has provided RMB 637,080,000 in unsecured loans to Tianping College, with an interest rate of 4.75%, due for repayment in August 2024[102]. - The company has extended the repayment date for onshore loans from July 2023 to July 2026, indicating a strategic financial maneuver[99]. Compliance and Governance - The company adheres to high standards of corporate governance and has complied with all provisions of the Corporate Governance Code during the reporting period[39]. - The audit committee, composed of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the reporting period[40]. - The company did not engage in any significant litigation or arbitration during the reporting period ending February 29, 2024[42]. - The company’s legal advisors indicate that there are currently no specific standards for foreign investors to prove compliance with qualification requirements in the education sector[62]. Future Outlook - The management has provided a revenue guidance of RMB 450 million for the full fiscal year 2024, indicating a growth target of 20%[126]. - The company plans to expand its market presence by opening two new campuses in Henan province by the end of 2024[124]. - The company is investing RMB 50 million in the development of new educational technologies aimed at enhancing online learning experiences[125]. - The company has successfully completed the acquisition of a local educational institution, which is expected to contribute an additional RMB 30 million in revenue annually[127].

亲爱的各位投资者大家下午好欢迎各位出席中国春来股份代号1969.hk2024台年中期业绩发布会那么首先在业绩发布会正式开始之前请允许我先介绍一下出席本次业绩发布会的董事会成员和公司管理层他们分别是执行董事侯俊宇先生执行董事兼行政总裁江洁女士CFO财务总监孙一鸣先生 那么我们本次业绩发布会的议程将分为两个部分那么第一部分会由公司的管理层向各位汇报一下公司2024年中期业绩最新的业务发展还有财务的一个表现情况那么第二部分呢就会留给大家的一个互动问答的交流环节那么会有出席本次会议的董事会成员还有公司的管理层充分回答各位的一些问题 那么我们常说作为资本市场的上市公司面积表现永远是公司的最佳形象代言人中国春来自上市至今在创始人、公司管理层及全体员工的努力下公司持续实现文件增长同时在校学生总人数也不断实现突破高就业率和高质量的特色课程也让学校声誉不断提升这两年尽管港股大盘市场环境较为低迷那么公司的股价跟成交表现也仍然可圈可点 同时也逐渐获得了更多资本市场关注今年初公司也成功被纳入恒生综合指数同时3月份也同时顺利被纳入了深港通及富港通标的这也有望进一步提升公司的成交流动性以及整体的市场关注度那么接下来我将把时间交给公司的执 ...

Investment Rating - The report does not provide a specific investment rating for the company [5]. Core Insights - The company achieved a revenue of 810 million RMB in the first half of FY24, representing a year-on-year growth of 8.7%, primarily driven by tuition fee increases [2]. - The net profit for the first half of FY24 was 380 million RMB, reflecting a year-on-year increase of 16.0%, with a net profit margin of 47.2% [2]. - The company announced an interim dividend of 0.0907 RMB per share, with a payout ratio increased to 30%, exceeding expectations [2]. - The student enrollment for the 2023/24 academic year was 104,000, slightly below expectations, but is projected to rise to approximately 120,000 by the 2024/25 academic year, a 14.7% increase [3]. - The company plans to reduce its debt by replacing high-interest loans with lower-interest ones, expecting a 25.4% decrease in interest expenses for FY24E [3]. - The forecasted net profit for FY24E is 750 million RMB, a 10.0% increase year-on-year, with a projected compound annual growth rate (CAGR) of 20.7% for net profit from FY24E to FY26E [4]. Financial Summary - For FY24E, the company is expected to generate revenues of 1.597 billion RMB, with a growth rate of 6.6% [9]. - The net profit for FY24E is projected at 753 million RMB, with a growth rate of 10.0% [9]. - The diluted earnings per share for FY24E is estimated to be 0.612 RMB [9]. - The company’s valuation is currently at 7.1 times FY24E price-to-earnings ratio [4]. - The dividend per share is expected to increase to 0.202 RMB in FY24E, with a dividend yield of 4.2% [9]. Key Financial Ratios - The gross profit margin for FY24E is projected to be 60.3% [12]. - The operating profit margin is expected to be 53.5% for FY24E [12]. - The net profit margin is forecasted at 47.2% for FY24E [12]. - The company’s net debt-to-equity ratio is expected to decrease from 42.2% in FY23 to 28.6% in FY24E [3][12].

Financial Performance - The revenue for the six months ended February 29, 2024, was RMB 813,910,000, representing an increase of 8.7% compared to RMB 748,710,000 for the same period in 2023[2]. - Gross profit for the same period was RMB 493,706,000, up 4.8% from RMB 471,026,000 year-over-year[2]. - Profit before tax increased by 15.7% to RMB 388,111,000 from RMB 335,510,000 in the previous year[2]. - The total comprehensive income for the period was RMB 384,271,000, reflecting a growth of 16.0% compared to RMB 331,172,000 in the prior year[2]. - The adjusted net profit for the period, excluding share-based compensation and foreign exchange losses, was RMB 386,047,000, a 16.3% increase from RMB 331,819,000[2]. - Basic and diluted earnings per share for the six months ended February 29, 2024, were RMB 384,271,000, up from RMB 331,172,000 in the previous year, reflecting a growth of 15.9%[17]. - The company's profit increased by 16.0% from RMB 331.2 million for the six months ended February 28, 2023, to RMB 384.3 million for the six months ended February 29, 2024[58]. - Adjusted net profit rose by 16.3% from RMB 331.8 million to RMB 386.0 million during the same periods[59]. Dividend Information - The company proposed an interim dividend of RMB 0.0907 per share, compared to no dividend for the same period last year[3]. - The proposed interim dividend is RMB 0.0907 per share, totaling RMB 108,840,000, compared to no interim dividend declared for the same period in 2023[18]. - The total amount of the final dividend for the year ended August 31, 2023, was approximately RMB 63.9 million, approved at the annual general meeting on January 19, 2024[68]. - The board has proposed an interim dividend of RMB 0.0907 per share for the six months ended February 29, 2024, compared to no dividend for the same period in 2023[68]. Assets and Liabilities - Non-current assets totaled RMB 5,218,548,000 as of February 29, 2024, compared to RMB 4,997,088,000 as of August 31, 2023[6]. - Current assets decreased to RMB 1,401,555,000 from RMB 1,460,715,000 in the previous period[6]. - The net current liabilities increased to RMB (1,074,931,000) from RMB (987,435,000) year-over-year[7]. - Total equity as of February 29, 2024, was RMB 3,597,231,000, up from RMB 3,275,659,000 as of August 31, 2023[7]. - As of February 29, 2024, the company's cash and cash equivalents were RMB 382.9 million, down from RMB 789.7 million as of August 31, 2023[60]. - The capital debt ratio decreased by 14.0 percentage points to approximately 52.2% as of February 29, 2024, compared to 66.2% on August 31, 2023[61]. Enrollment and Education - As of February 29, 2024, the total number of students enrolled across all institutions was 104,053, showing a slight increase of 0.1% from 103,931 on February 28, 2023[44]. - The average employment rate of graduates from higher education programs was approximately 93.52% as of December 31, 2023[36]. - The enrollment at 商丘学院 decreased by 13.9% from 29,779 to 25,638 students[43]. - The enrollment in the 专升本 courses at 商丘学院 increased significantly by 59.3%, from 3,023 to 4,817 students[43]. - The enrollment at 健康学院 surged by 83.9%, increasing from 3,714 to 6,831 students[44]. - 荊州学院's total enrollment rose by 22.2%, from 13,710 to 16,752 students[44]. - The number of students at 安阳学院 decreased by 5.3%, from 30,525 to 28,897 students[43]. - The enrollment in the 专科 courses at 商丘学院应科技学院 dropped by 78.2%, from 4,940 to 1,079 students[43]. - Total student enrollment increased by 0.1% from 103,931 to 104,053 for the academic year 2023/2024[45]. - The overall admission rate for the five colleges offering undergraduate programs was 96.8% as of February 29, 2024[46]. Strategic Initiatives - The company reported a strategic cooperation agreement with ICBC to enhance financial services, effective from April 2, 2024[33]. - The company has established partnerships with approximately 900 enterprises for practical training and collaborative education as of February 29, 2024[36]. - The company plans to acquire more land use rights and build new educational facilities to support future enrollment growth[48]. - The company has allocated RMB 244.9 million for acquiring land use rights and constructing educational facilities, with RMB 18 million used in the six months ended February 29, 2024[75]. - RMB 146.9 million was designated for acquiring or collaborating with other universities in China, with no amount utilized as of February 29, 2024[75]. Financial Management - The financing cost for the six months ended February 29, 2024, was RMB 47,294,000, down from RMB 61,384,000 in the same period of 2023, representing a decrease of 22.9%[13]. - Income tax expense for the six months ended February 29, 2024, was RMB 3,840,000, a decrease from RMB 4,338,000 in the previous year, indicating a reduction of 11.5%[14]. - Other income rose by 53.3% to RMB 62.1 million, mainly driven by increased service revenue[54]. - Administrative expenses increased by 3.6% to RMB 117.6 million, primarily due to higher employee compensation[57]. - The total salary cost for the reporting period was RMB 171.9 million, an increase from RMB 158.7 million for the six months ended February 28, 2023[66]. - The company has established credit facilities with banks amounting to RMB 330 million and RMB 240 million for Anyang College and Shangqiu College, respectively[64]. - The company does not have any significant acquisitions or disposals during the reporting period[63]. - The company has no foreign currency hedging policy in place to manage foreign exchange risks[66]. Corporate Governance - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the reporting period[72]. - The company has adopted high standards of corporate governance and complied with all provisions of the Corporate Governance Code during the reporting period[70]. - The interim results announcement will be published on the Hong Kong Stock Exchange and the company's website[76].

Enrollment and Student Statistics - The total number of enrolled students increased from 97,685 in the 2021/2022 academic year to 103,277 in the 2022/2023 academic year[5] - The total number of students in the 2022/2023 academic year across all institutions was approximately 90,178, showing a decrease of 3.2% from the previous year[25] - The number of students in the undergraduate programs at Shangqiu College decreased by 3.0% to 9,698, while the number in the vocational education programs increased by 19.1% to 6,017[25] - Anyang College experienced a significant decline of 21.6% in undergraduate enrollment, dropping to 8,473 students, while the number of students in the specialized programs surged by 62.4% to 5,851[25] - Enrollment in the Applied Technology College's undergraduate program increased by 3.1% to 8,173 students[31] - The total enrollment rate for undergraduate programs across four colleges was 96.8% for the 2022/2023 academic year[32] - The number of students in vocational education courses increased by 188.9% to 780[31] - The health college in Hubei Province has a total enrollment of 3,699 students, focusing on nursing and health management programs[23] Financial Performance - Revenue rose from RMB 1,309 million for the year ended August 31, 2022, to RMB 1,498 million for the year ended August 31, 2023, representing a growth of 14.4%[12] - Adjusted net profit for the year was RMB 673 million, up 25.2% from RMB 538 million in the previous year[12] - Gross profit increased by 7.7%, from RMB 826 million in 2022 to RMB 890 million in 2023[12] - Profit before tax grew by 23.9%, from RMB 555 million in 2022 to RMB 688 million in 2023[12] - Revenue for the fiscal year ending August 31, 2023, was RMB 1,498.0 million, representing a 14.4% increase from RMB 1,309.2 million in the previous year[38] - Adjusted net profit rose by RMB 135.6 million or 25.2% to RMB 673.2 million, with an adjusted net profit margin of 44.9% compared to 41.1% in the previous year[37] - Gross profit for the fiscal year was RMB 890.1 million, with a gross margin of 59.4%, down from 63.1% in the previous year[37] - Net profit for the year increased by 23.9% from RMB 552.3 million for the year ended August 31, 2022, to RMB 684.4 million for the year ended August 31, 2023[49] Capital Structure and Equity - The total equity increased from RMB 2,615 million in 2022 to RMB 3,276 million in 2023[9] - The capital-to-debt ratio improved from 91.4% in 2022 to 66.2% in 2023[9] - The debt-to-equity ratio improved from 91.4% as of August 31, 2022, to 66.2% as of August 31, 2023, a decrease of 25.2 percentage points[53] - The company has a zero balance in distributable reserves as of August 31, 2023[119] Dividends and Shareholder Information - The company proposed a final dividend of RMB 0.053 per share, subject to shareholder approval[12] - The board has proposed a final dividend of RMB 0.053 per share, subject to shareholder approval, which equates to approximately HKD 0.058[115] - As of August 31, 2023, Mr. Hou holds 900,000,000 shares, representing 75% of the company's equity[149] - Mr. Hou also holds options under the pre-IPO share option plan amounting to 6,000,000 shares, which is 0.50% of the total issued shares[149] Operational Developments - The company is acquiring more land and resources in Henan Province to expand enrollment[5] - The company plans to acquire more land use rights and build new educational and living facilities to support future enrollment growth[36] - The company completed the acquisition of Jingzhou College in May 2021 and is in the process of acquiring the operator's equity of Tianping College[17] - The company operates four institutions in Henan Province and two in Hubei Province, with a focus on applied talent cultivation and industry-education integration[17] Management and Governance - The board consists of three executive directors, one non-executive director, and three independent non-executive directors[68] - The company has a strong management team with extensive experience in education and logistics, with key members having over 15 years of experience in their respective fields[85][86][88] - The company secretary, Yu Anni, has over 20 years of experience in corporate governance, enhancing the company's compliance and governance standards[91] - The company has established a remuneration committee in accordance with the Corporate Governance Code to oversee compensation matters[148] Strategic Initiatives and Future Outlook - The company plans to expand its market presence by opening three new campuses in key cities, aiming for a 30% increase in total enrollment by the end of the next fiscal year[76] - New product offerings, including online courses, are expected to contribute an additional 10% to overall revenue in the upcoming year[77] - The management has provided guidance for the next fiscal year, projecting a revenue growth of 20%[80] - The company is executing a business plan aimed at expanding its overseas education operations, demonstrating a commitment to meet qualification requirements[195] Risks and Compliance - The company faces several key risks, including the ability to maintain or increase student enrollment and tuition fees[109] - The company acknowledges potential risks associated with its contractual arrangements, including regulatory compliance and ownership control issues[175] - The company has been closely monitoring the regulatory environment in China to mitigate risks associated with the contractual arrangements[182] Contractual Arrangements - The company has established contractual arrangements to operate its private education business in China, ensuring compliance with local regulations[173] - The contractual arrangements accounted for 100% of the group's revenue and pre-tax profit for both 2023 and 2022[183] - The company relies on the ability of foreign-invested enterprises to distribute dividends, and any restrictions on this ability could significantly impact the company's capacity to pay dividends to shareholders[177] Environmental and Social Responsibility - The company maintains a commitment to environmental policies and practices, including recycling and reducing waste[102] - The company has made charitable donations of approximately RMB 0 during the reporting period[112] Share Options and Incentives - As of August 31, 2023, the company granted options for 33,550,000 shares under the pre-IPO share option plan to 23 participants[124] - The maximum number of shares that can be granted under the share incentive plan is capped at 84,000,000 shares, representing 7% of the company's issued share capital as of the listing date[140] - The share incentive plan aims to align the interests of eligible participants with the company's long-term development and profitability[138]

Financial Performance - For the fiscal year ended August 31, 2023, the total revenue was RMB 1,497,962,000, representing a 14.4% increase from RMB 1,309,197,000 in the previous year[2] - Gross profit for the same period was RMB 890,055,000, up 7.7% from RMB 826,703,000[2] - Profit before tax increased by 23.9% to RMB 688,175,000, compared to RMB 555,451,000 in the prior year[2] - The adjusted net profit was RMB 673,227,000, reflecting a 25.2% growth from RMB 537,630,000[2] - Net profit attributable to shareholders for the year was RMB 684,393,000, up 24.0% from RMB 552,260,000 in 2022[18] - Basic earnings per share increased to RMB 0.5703 in 2023 from RMB 0.4602 in 2022, reflecting a growth of 24.0%[18] - The company’s net profit for the year rose by 23.9% to RMB 684.4 million from RMB 552.3 million in the previous year[64] - The adjusted net profit for the same period was RMB 673,227,000, up from RMB 537,630,000, reflecting a growth of 25.2%[65] Revenue Sources - Tuition and accommodation fees amounted to RMB 1,359,278,000 and RMB 138,684,000 respectively, compared to RMB 1,188,035,000 and RMB 121,162,000 in 2022, reflecting growth of 14.4% and 14.5%[12] - Other income increased to RMB 84,066,000 in 2023 from RMB 51,631,000 in 2022, representing a growth of 62.9%[13] - Interest income rose significantly to RMB 9,672,000 in 2023 from RMB 4,255,000 in 2022, marking an increase of 127.0%[13] - The revenue from the Health College surged by 176.7% to RMB 52.3 million, primarily due to expanded enrollment[56] Dividends and Shareholder Information - The company proposed a final dividend of RMB 0.053 per share, subject to shareholder approval at the annual general meeting on January 19, 2024[3] - Proposed final dividend per share is RMB 0.053, down from RMB 0.1 in 2022, resulting in total proposed dividends of RMB 63,985,000 compared to RMB 120,000,000 in the previous year[19] - The annual general meeting will be held on January 19, 2024, with a suspension of share transfer registration from January 16 to January 19, 2024[77] Assets and Liabilities - Non-current assets, including property, plant, and equipment, totaled RMB 2,987,663,000, an increase from RMB 2,797,921,000 in the previous year[6] - Current liabilities included contract liabilities of RMB 678,914,000, indicating a focus on managing cash flow[8] - The total assets less current liabilities amounted to RMB 4,009,653,000, compared to RMB 2,986,483,000 in the previous year[6] - As of August 31, 2023, the total carrying value of properties, plants, and equipment is RMB 4,105,565,000, an increase from RMB 3,706,141,000 as of August 31, 2022, representing a growth of approximately 10.7%[20] - The carrying value of properties pledged as collateral for other loans increased to RMB 441,666,000 in 2023 from RMB 312,131,000 in 2022, reflecting a rise of about 41.4%[21] Student Enrollment and Education Sector - The total number of enrolled students increased by 5.7% from 97,685 in the 2021/2022 academic year to 103,277 in the 2022/2023 academic year[50] - The number of students in the specialized upgrading program at Shangqiu College rose by 25.5%, from 2,399 to 3,011[47] - Enrollment in vocational education courses at Shangqiu College increased by 19.1%, from 5,050 to 6,017[47] - The number of students in the health college surged by 180.7%, from 1,318 to 3,699[48] - The total number of students at Jingzhou College increased by 12.1%, from 12,234 to 13,718[48] - The company operates primarily in the private higher education sector in China, generating revenue from tuition and accommodation fees[10] Financial Management and Costs - The overall cost of revenue increased by 26.0% to RMB 607.9 million, with the cost as a percentage of revenue rising to 40.6% from 36.9%[57] - Administrative expenses decreased by 12.3% to RMB 174.4 million, attributed to reduced utility and maintenance costs[62] - Financing costs decreased by 8.3% to RMB 124.5 million, primarily due to a reduction in average loans[63] - The total salary cost for the reporting period was RMB 330.8 million, an increase from RMB 272.9 million for the year ended August 31, 2022, reflecting a growth of 21.2%[74] Corporate Governance and Compliance - The audit committee has reviewed the audited consolidated financial statements for the year ending August 31, 2023, ensuring compliance with accounting and internal control policies[81] - The company has adopted and complied with the Corporate Governance Code as per the Listing Rules during the reporting period[78] - The company’s auditor, Zhonghui Anda CPA Limited, has verified the financial figures in the announcement but did not provide an opinion or assurance on the announcement[80] 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[53] - The remaining unused proceeds from the global offering, approximately RMB 18 million, are expected to be gradually used for acquiring land use rights and constructing educational facilities by September 2024[84] - The company has no significant investments or future capital asset plans disclosed for the year ended August 31, 2023[68][74] Employment and Workforce - The number of employees decreased from 5,763 as of August 31, 2022, to 4,750 as of August 31, 2023, indicating a reduction of approximately 17.5%[74] Risk Management - The company faces foreign exchange risks due to transactions, assets, and liabilities denominated in USD and HKD, but currently has no hedging policy in place[73]