Investment and Development - The Group cumulatively invested RMB1.25 billion in the 2024 financial year to support major projects, including upgrading vocational schools to undergraduate universities and obtaining master's degree-granting rights[17]. - The Group plans to accelerate the application for master's programs at Yunnan and Northeast schools, and upgrade Luoyang and Guangxi schools to degree-granting institutions, laying a solid foundation for future high-quality development[49]. - The Group's capital expenditures for the year ended 31 August 2024 were RMB920.8 million, mainly for upgrading school facilities in Guizhou and constructing new buildings[146]. Student Enrollment and Satisfaction - The total number of students in the Group's schools for the 2024/2025 academic year was approximately 139,000, with the proportion of undergraduate students increasing by 1 percentage point[21]. - Student satisfaction rose to 86.4% due to significant improvements in the educational environment and student activities[18]. - The total number of students in the Group's schools for the 2024/2025 academic year is approximately 139,000, with an increase of 4 percentage points in the proportion of new undergraduate students and a 1 percentage point increase in the overall proportion of undergraduate students[68]. Employment Outcomes - The employment rate for the 2023 graduates reached 96.97%, maintaining a high level for four consecutive years, while the initial employment rate for the 2024 graduates improved by 4.4 percentage points to 95.09%[34]. - The Group engaged over 1,900 employers from renowned enterprises, providing more than 27,000 internships, with over 7,000 graduates from the class of 2024 employed by these enterprises[62]. - The Group's schools have been recognized for high-quality employment rates, with continuous improvement in employment outcomes[1]. Financial Performance - The Group achieved a 13.8% year-on-year increase in revenue from principal business to RMB 2.41 billion for the year ended 31 August 2024, and a 6.1% year-on-year increase in adjusted net profit to RMB 0.77 billion[53]. - The Group's total revenue for the year ended 31 August 2024 was RMB2,835.2 million, representing a 12.2% increase from RMB2,526.9 million in the previous year[100]. - The Group's net profit for the year ended August 31, 2024, was RMB 756.0 million, representing a 7.5% increase from RMB 703.3 million in the previous year[78]. Teaching Quality and Recognition - The investment in teachers increased by 12.1%, with 273 high-level experts and 15 renowned scholars introduced, and "Double-high" teachers increased by 73%[18]. - The "Excellent Course, Excellent Reward" incentive mechanism covers all 8 schools, with 40% of teachers receiving this reward, leading to a nearly 170% increase in awards won by teachers in provincial competitions[28]. - The number of awards won by teachers in provincial teaching competitions and skills competitions increased by nearly 170%, marking a historical breakthrough for the Group[60]. Strategic Focus and Future Outlook - The Group's strategic focus on enhancing financial performance and expanding market presence is evident in the reported figures and future outlook[124]. - The Group aims to create a student-centered university and cultivate high-quality applied and technical talents to meet local economic and social development needs[74]. - The Group plans to continue investing in high-quality development and enhancing teaching quality, supported by national policies[97]. Regulatory Environment and Compliance - The Group's existing private schools are currently undergoing classified registration as per provincial authorities' guidance, specifically in Northeast, Guangxi, Yunnan, and Guizhou provinces[191]. - The Group must clarify ownership of assets and settle finances if it opts for for-profit registration, as per the Implemental Rules on Private School Classified Registration[186]. - The Group will continue to monitor developments related to the application of regulatory requirements affecting its private schools[191]. Dividend Policy - The Group maintains its dividend policy for the fiscal year 2023/2024, suggesting that all dividends be distributed in the form of new shares instead of cash, aiming to retain cash for business development and avoid increasing the capital debt ratio[23]. - The Board has resolved to recommend a final dividend of RMB0.233 per Share for the year ended 31 August 2024, compared to RMB0.096 per Share for the year ended 31 August 2023[199]. - The proposed final dividend will be payable wholly in the form of Scrip Shares, allowing the Group to conserve cash for business development and operational needs[199].

Investment Rating - The report maintains a "Buy" rating for New Higher Education Group [6][15]. Core Views - New Higher Education Group reported FY24 revenue of RMB 2.4 billion, a year-on-year increase of 13.8%, with an adjusted net profit attributable to shareholders of RMB 770 million, up 6.1% year-on-year. The company distributed final dividends in shares, with a payout ratio of 50% [6][12]. - The company continues to optimize its student structure, with a slight decrease in total enrollment to 139,000 from 140,000 in FY23. However, the proportion of new undergraduate students increased by 4 percentage points year-on-year, and the proportion of undergraduate students rose by 1 percentage point year-on-year, leading to a 13.2% increase in tuition revenue despite the slight decline in total enrollment [6][13]. - The company has increased its investment in educational facilities, resulting in a 19.1% rise in accommodation fees, contributing to the overall revenue growth [6][13]. Financial Data and Profit Forecast - For FY24, the company's revenue cost was RMB 1.54 billion, a year-on-year increase of 16.9%. Teaching-related costs rose by 31.3%, and teacher salaries increased by 12.1% [7][14]. - The report indicates that the company will maintain capital expenditures at approximately RMB 600 million to RMB 800 million annually over the next two years due to ongoing evaluations of two undergraduate schools [7][15]. - Profit forecasts for FY25 and FY26 have been downgraded to RMB 800 million and RMB 830 million, respectively, with a new profit forecast of RMB 880 million for FY27. The target price has been adjusted to HKD 2.99 from HKD 3.46 [7][15]. Revenue and Profit Projections - The projected revenue and profit figures for the upcoming years are as follows: - FY24 Revenue: RMB 2,412 million (10% growth) - FY25 Revenue: RMB 2,617 million (estimated) - FY26 Revenue: RMB 2,844 million (estimated) - FY27 Revenue: RMB 3,119 million (estimated) - FY24 Net Profit: RMB 756 million (estimated) - FY25 Net Profit: RMB 801 million (estimated) - FY26 Net Profit: RMB 831 million (estimated) - FY27 Net Profit: RMB 881 million (estimated) [9][17].

Financial Performance - The group reported a revenue increase of 13.8% year-on-year to RMB 2.41 billion for the fiscal year ending August 31, 2024[5]. - Adjusted net profit grew by 6.1% year-on-year to RMB 770 million for the same period[5]. - Total revenue for the year ended August 31, 2024, was RMB 2,835.2 million, an increase of 12.2% compared to RMB 2,526.9 million for the same period last year[34]. - The group's income reached RMB 2,411.7 million, up 13.8% from RMB 2,119.1 million year-on-year, driven by the advantages of group-based education and steady growth in tuition and accommodation fees[36]. - Gross profit amounted to RMB 876.1 million, a rise of 8.7% from RMB 806.0 million, with a gross margin of 36.3%, down 1.7 percentage points from 38.0% due to increased investments in teaching quality[38]. - Profit before tax was RMB 913.0 million, reflecting a 7.9% increase from RMB 845.9 million in the previous year[45]. - Net profit for the year was RMB 756.0 million, up 7.5% from RMB 703.3 million year-on-year[47]. - Other income and gains were RMB 423.5 million, an increase of 3.8% from RMB 407.8 million, driven by growth in vocational training services and rental income[39]. - Basic and diluted earnings per share rose to RMB 0.49, up from RMB 0.45 in the previous year[114]. Employment and Student Outcomes - The employment rate for the 2023 graduating class reached 96.97%, maintaining a rate above 95% for four consecutive years[3]. - The initial employment rate for the 2024 graduating class improved by 4.4 percentage points year-on-year to 95.09%[3]. - The proportion of high-quality employment among graduates reached 33.21%, with a 62% increase in employment at prestigious companies[3]. - The group organized 22 employment training sessions in the past year, covering workplace etiquette, resume enhancement, and interview skills[19]. - The group has received multiple employment-related awards, totaling 444 in the past three years, indicating strong performance in job placement[19]. - The group has increased its employment funding and support for frontline staff, enhancing the quality of employment services provided[19]. Educational Quality and Development - The group plans to continue its investment in educational quality and infrastructure, particularly in Guizhou province, where a new university is being established[5]. - The number of high-level teachers (dual-high) increased by 73% year-on-year, enhancing the quality of education[10]. - The group introduced 29 provincial first-class undergraduate courses, with 7 courses rated as national first-class[15]. - The group aims to enhance its competitive edge by focusing on high-quality development and improving student outcomes and experiences[9]. - The group aims to create a student-centered university and enhance educational quality, aligning with national policies for high-quality development[30]. Financial Position and Capital Management - Total cash and cash equivalents as of August 31, 2024, amounted to RMB 2,321.7 million, an increase of 102.5% from RMB 1,148.6 million in 2023[51]. - Interest-bearing bank loans and other borrowings increased to RMB 3,504.8 million as of August 31, 2024, compared to RMB 2,718.3 million in 2023, reflecting a rise of 28.9%[52]. - The ratio of interest-bearing debt to total assets rose from 29.4% in 2023 to 31.8% in 2024, indicating increased leverage[52]. - Capital expenditures for the year ended August 31, 2024, were RMB 920.8 million, primarily for upgrading school facilities in Guizhou and other infrastructure projects[55]. - The total capital commitments as of August 31, 2024, were RMB 567.9 million, up from RMB 318.0 million in 2023, showing a significant increase of 78.5%[56]. - The leverage ratio increased from 76.9% in 2023 to 85.2% in 2024, primarily due to the rise in interest-bearing debt[53]. Regulatory Environment and Strategic Plans - The company plans to continue benefiting from favorable policies in vocational education, which are expected to enhance its operational environment[66]. - The new Vocational Education Law, effective from May 1, 2022, emphasizes the equal importance of vocational education and general education, encouraging social participation and enterprise involvement in vocational training[68]. - The government work report in March 2023 highlighted significant improvements in vocational education adaptability and continuous enhancement of vocational school conditions[71]. - The implementation plan for 2023-2025 focuses on coordinating education and industry development, creating platforms for industry-education integration, and improving incentive policies[71]. - The Ministry of Education's notification in July 2023 outlines 11 key tasks to accelerate the construction of a modern vocational education system, promoting high-quality development[72]. Corporate Governance and Shareholder Relations - The company has committed to improving corporate governance practices to enhance transparency and accountability to shareholders[100]. - The proposed final dividend for the year ending August 31, 2024, is RMB 0.233 per share, an increase from RMB 0.096 for the year ending August 31, 2023[92]. - The company will implement a scrip dividend scheme, pending approval from shareholders at the annual general meeting on February 13, 2025[94]. - The final dividend shares are expected to be distributed to eligible shareholders around April 17, 2025[95]. - The company has maintained good labor relations without any significant labor disputes during the reporting period[99]. Company Structure and Operations - The company operates multiple educational institutions, including Northeast School and Luoyang School, which are integral to its business model[195][191]. - The company has a comprehensive network of affiliated entities, including Yunnan School, Guizhou School, and others, under its operational structure[199]. - The company is advised on Chinese law by Tongshang Law Firm, ensuring compliance with local regulations[198]. - The company is focused on expanding its educational offerings and enhancing its operational capabilities across various regions in China[197]. - The company’s founder, Mr. Li, serves as the chairman and executive director, playing a crucial role in strategic decision-making[194].

Financial Performance - For the six months ended February 29, 2024, the Group achieved a 13.8% year-on-year increase in revenue from its principal business[10]. - Total revenue for the six months ended February 29, 2024, was RMB 1,482.3 million, an increase of 12.2% from RMB 1,321.3 million for the same period in 2023[55]. - Revenue increased to RMB 1,310.8 million, up 13.8% from RMB 1,152.2 million year-on-year, driven by the group's continuous high-quality development and steady growth in tuition and accommodation fees[56]. - Gross profit for the period was RMB 521.2 million, representing a 15.1% increase from RMB 452.7 million in the previous year, with a gross margin of 39.8% compared to 39.3% in the prior year[58]. - Adjusted net profit attributable to owners of the parent for the six months ended February 29, 2024, was RMB 426.1 million, a 7.6% increase from RMB 396.0 million for the same period in 2023[55]. - Profit before tax increased to RMB 530.0 million, representing a 14.7% increase from RMB 462.1 million year-on-year[68]. - Net profit increased by 10.6% to RMB 432.0 million, compared to RMB 390.5 million for the same period last year[68]. - Basic and diluted earnings per share for the period were RMB 0.28, compared to RMB 0.25 for the same period last year, indicating a 12% increase[172]. - Total comprehensive income for the period was RMB 424,950,000, up from RMB 386,838,000, marking a 9.8% increase year-over-year[174]. Employment and Talent Development - The employment rate of the Group's schools is among the highest in each province and region, with continuous improvement in high-quality employment rates[6]. - The overall employment rate of the Group's 2023 graduates is 96.97%, with high-quality employment proportion reaching 27.76%, an increase of 5.8 percentage points year-on-year[16]. - The number of graduates employed in Fortune Global 500, China's Top 100, and A-share listed companies increased by 88.06%[17]. - The Group has cumulatively cultivated over 400,000 high-quality technical talents for society as of February 29, 2024[6]. - The Group has established strategic partnerships with 1,156 well-known companies and built 54 modern industrial colleges[12]. - The number of students reaching the score line in the postgraduate entrance examination increased by 31.5% compared to last year[14]. - The Group has added 7 undergraduate majors urgently needed for national strategic and local regional development, including a dentistry program, with only five institutions nationwide approved to offer it[12]. Educational Quality and Initiatives - The Group focuses on building a student-oriented university and adheres to the philosophy of "teaching students in accordance with their aptitude" to enhance educational quality[10]. - The Group has been dedicated to higher vocational education for over 25 years, emphasizing practical application in its educational approach[10]. - The "Wonderful Classroom" competition has been successfully held for 15 consecutive years, promoting quality improvement in teaching[12]. - The proportion of students with high satisfaction reached 84%, an increase of 12 percentage points compared to the previous year[19]. - Complaints on the student and teacher opinion management platform have dropped by 39%, while praise opinions increased from 3% to 16%[19]. - The Group aims to create high-quality teaching, employment, experience, and campus environments for students[22]. Financial Management and Investments - The Group has invested RMB 281 million to enhance the educational environment, including upgrading teaching facilities and beautifying the campus[18]. - Investment in teachers increased by 10.5% year-on-year, with the number of "dual-qualified" teachers and "double-high" teachers rising by 19% and 25%, respectively[12]. - The group’s administrative expenses rose to RMB 53.3 million, an increase of 18.7% from RMB 44.9 million in the previous year[55]. - The cost of sales increased to RMB 789.6 million, up 12.9% from RMB 699.5 million year-on-year, primarily due to campus upgrades and increased personnel costs[57]. - Capital expenditures during the reporting period were RMB 397.3 million, mainly for the construction of school buildings and facilities, land acquisition, and purchase of furniture and equipment[78]. Corporate Governance and Compliance - The Group has complied with all applicable code provisions set out in the Corporate Governance Code during the reporting period[92]. - The Board will continue to review and improve corporate governance practices to optimize returns for shareholders[92]. - The Group emphasizes effective corporate governance as essential for creating shareholder value[92]. - The Group is committed to integrating ESG principles into its operations, focusing on stable performance growth and sustainable development[55]. - The Group has been awarded the "Best ESG Information Disclosure Award" in the 8th Zhitong Finance Listed Company Selection in 2023[21]. Shareholder Information and Dividends - The Group will maintain a dividend payout ratio of 50% for this financial year[10]. - The Group has resolved not to declare an interim dividend for the six months ended 29 February 2024, planning to pay dividends once a year instead[92]. - The company has a dividend policy aiming to recommend an annual dividend of not less than 30% of the profits available for distribution earned in each financial year[163]. - The board will continue to review the dividend policy but there is no assurance that dividends will be paid in any specific amount or at all[163]. Regulatory Environment - The provision of higher education in the PRC falls within the "restricted" category according to the Negative List, requiring foreign investors to cooperate with PRC educational institutions[127]. - The foreign portion of total investment in a Sino-Foreign Joint Venture Private School must be below 50% as per the Implementation Opinions[127]. - The establishment of these schools requires approval from provincial or national education authorities[130]. - The company is still awaiting approval from the BPPE to establish a new school in California[131]. - The Group's operations have not been affected by the 2021 Implementation Rules as of the report date[138].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 4.85 [4][9]. Core Insights - The company reported a robust performance with a 13.8% year-on-year increase in revenue to RMB 1.31 billion for the first half of FY2024, driven primarily by tuition fee growth [2]. - The gross profit margin remained stable at 39.8%, reflecting a slight increase of 0.5 percentage points year-on-year, supported by an optimized cost structure [2][3]. - The company has strengthened its educational offerings by adding new undergraduate programs and enhancing partnerships with over 1,156 well-known enterprises [2]. Financial Performance Summary - Revenue for FY2024 is projected to reach RMB 2.366 billion, representing a growth rate of 11.6% [5]. - Net profit is expected to increase by 16.6% to RMB 819 million, with a net profit margin of 34.6% [4][5]. - The company has effectively controlled operational costs, with selling expenses at RMB 22 million and administrative expenses rising to RMB 53 million due to external consultancy fees [3]. Valuation Metrics - The current valuation stands at approximately 3.7x and 3.3x FY24E and FY25E P/E ratios, respectively, with a dividend yield of around 15.0% [4]. - The report highlights a projected dividend payout ratio of 50%, despite a change in the dividend policy to only pay a final dividend [4]. Future Outlook - The company is expected to continue its growth trajectory with a focus on improving educational quality and employment rates for graduates, while maintaining stable revenue streams [4]. - The financial forecasts indicate a steady increase in earnings per share, projected to reach RMB 0.526 in FY2024, with continued growth in subsequent years [5].

Investment Rating - The report maintains a "Buy" rating for New Higher Education Group [2][4][7] Core Views - New Higher Education Group reported a revenue of RMB 1.311 billion for the first half of FY24, representing a year-on-year increase of 13.8%, and a net profit attributable to the parent company of RMB 426 million, up 7.6% year-on-year, aligning with previous expectations [4][7] - The growth in revenue is primarily driven by increases in tuition and accommodation fees, with the average tuition fee reaching RMB 16,000, a 13% increase year-on-year [4][7] - The student structure has been optimized, with the proportion of undergraduate students increasing by 3.4 percentage points to 39.8% [4][7] - The gross profit margin for the first half of FY24 was 39.8%, a slight increase of 0.5 percentage points year-on-year, indicating stable profitability despite rising costs [4][7] - The company is expected to maintain a compound annual growth rate (CAGR) of 5.2% in average tuition fees from FY24 to FY26 [4][7] Financial Summary - Revenue for FY24E is projected at RMB 2.262 billion, with a year-on-year growth rate of 6.74% [5] - Net profit for FY24E is forecasted to be RMB 786 million, reflecting a year-on-year increase of 11.82% [5] - The company’s earnings per share (EPS) is expected to grow from RMB 0.51 in FY24E to RMB 0.64 in FY26E [5] - The price-to-earnings (P/E) ratio is projected to decrease from 4.15 in FY24E to 3.31 in FY26E, indicating potential undervaluation [5] Strategic Developments - The transition to for-profit status for private universities is being implemented, allowing institutions to set their own tuition fees based on market conditions [4][7] - The company is focusing on high-quality educational strategies and has increased investments in human resources and infrastructure, with labor costs rising by 11.4% and depreciation costs by 28.4% year-on-year [4][7]

Financial Performance - For the six months ended February 29, 2024, the group's main revenue increased by 13.8% year-on-year to RMB 1.311 billion, while net profit attributable to shareholders rose by 10.6% to RMB 432 million[2]. - Total revenue for the six months ended February 29, 2024, was RMB 1,482.3 million, an increase of 12.2% compared to RMB 1,321.3 million for the same period last year[20]. - Gross profit reached RMB 521.2 million, a 15.1% increase from RMB 452.7 million, with a gross margin of 39.8% compared to 39.3% last year[23]. - Net profit for the period was RMB 432.0 million, up 10.6% from RMB 390.5 million, with adjusted net profit at RMB 426.1 million, a 7.6% increase[30]. - Basic and diluted earnings per share for the period was RMB 0.28, compared to RMB 0.25 in the previous year[52]. - The total tax expense was RMB 98,028,000, an increase of 37% compared to RMB 71,598,000 for the same period in 2023[68]. Student Employment and Satisfaction - The employment rate for the 2023 graduating class reached 96.97%, maintaining a high level for four consecutive years, with high-quality employment accounting for 27.76%, an increase of 5.8 percentage points year-on-year[2]. - The group has been recognized as one of the "Top 50 Employment Work" institutions by the Ministry of Education, reflecting its leadership in high-quality employment[2]. - Student satisfaction has risen for three consecutive years, with 84% of students reporting high satisfaction levels[12]. - The number of graduates employed by Fortune 500 companies, China's top 100 companies, and A-share listed companies increased by 88.06%[11]. Educational Development - The group added 7 new undergraduate programs in response to national strategic needs, including Oral Medicine and New Energy Vehicle Engineering, with only 5 institutions nationwide approved for Oral Medicine in 2024[2][9]. - The group launched 31 provincial-level first-class undergraduate courses, with 7 courses evaluated for national-level first-class status during the reporting period[9]. - The group established strategic partnerships with 1,156 well-known enterprises, creating 54 modern industry colleges and over 1,110 off-campus experimental training bases[10]. - The group aims to create high-quality educational opportunities by focusing on high-quality teaching, employment, and student experiences[17]. Financial Management and Costs - Main operating costs increased to RMB 789.6 million, up 12.9% from RMB 699.5 million, primarily due to campus upgrades and increased personnel costs[22]. - Financing costs decreased to RMB 59.0 million, down 13.5% from RMB 68.2 million, due to optimized debt structure and lower average loan rates[27]. - Selling and distribution expenses rose to RMB 22.4 million, an increase of 28.0% from RMB 17.5 million, reflecting enhanced brand building efforts[25]. - Administrative expenses increased to RMB 53.3 million, up 18.7% from RMB 44.9 million, mainly due to external service fees for school accreditation[26]. Capital and Assets - Total assets as of February 29, 2024, amounted to RMB 8,198,964 thousand, an increase from RMB 8,050,080 thousand as of August 31, 2023[54]. - The company's interest-bearing bank loans and other borrowings amounted to RMB 2,767.6 million, an increase from RMB 2,718.3 million as of August 31, 2023[32]. - The company's net interest-bearing debt to total equity ratio increased from 44.4% as of August 31, 2023, to 48.5% as of February 29, 2024, primarily due to a decrease in total cash[32]. - Capital expenditures during the reporting period were RMB 397.3 million, mainly for the construction of school buildings and facilities, land acquisition, and furniture and equipment purchases[33]. Compliance and Governance - The company maintained compliance with all applicable corporate governance codes during the reporting period[49]. - The company is currently awaiting the classification registration process for its private schools in various provinces, which remains uncertain due to local regulatory requirements[40]. - The company will continue to monitor updates related to the Foreign Investment Law to ensure compliance with all relevant laws and regulations[44]. - The company emphasizes the importance of compliance with the Hong Kong Stock Exchange regulations[85]. Future Outlook and Strategy - The company plans to integrate ESG principles with financial performance indicators to ensure sustainable value creation[18]. - The company is committed to expanding its market presence in Yunnan and Guizhou provinces[86]. - The company aims to enhance its educational offerings through new product and technology development initiatives[86].

Employment and Talent Development - As of August 31, 2023, the Group has cultivated approximately 400,000 high-quality technical talents for society[9] - The employment rate of the Group's schools is among the highest in each province, with continuous improvement in high-quality employment rates[9] - In the 2023 financial year, high-quality employment reached a new high, with over half of the 2023 graduates from Yunnan School and Central China School retained for employment after internships at the 301 General Hospital of the People's Liberation Army[27] - The Group's Guizhou Technology and Business Institute was included in the cultivation unit of Guizhou Province's "14th Five-Year Plan" College Establishment Plan[20] - Continuous training on interview skills and resume enhancement for graduates has strengthened their confidence and competitiveness in the job market[27] - The employment rate of graduates has exceeded 95% for three consecutive years at certain institutions[38] - The Group has been recognized as a top 50 university in national graduate employment by the Ministry of Education[38] - The initial employment rate for the 2023 graduates from the Group's schools reached 90.65%[75] - The proportion of graduates with high-quality employment accounted for 24.7%, with a 67% year-on-year increase in employment at top companies[75] - The Group established employment bases in key regions and collaborated with 1,109 enterprises, providing over 22,000 high-quality job opportunities[72] - The Group's initiatives led to 100% employment for graduates with employment difficulties for three consecutive years[72] - The Group's high-quality employment strategy has led to significant improvements in student satisfaction and employment outcomes[91] - The Group implemented 88 optimization measures related to employment services and curriculum design, resulting in an 8% increase in graduate satisfaction[118] - The satisfaction rate of current students increased by 7.2%, and faculty and staff satisfaction rate increased by 8.1%[118] Educational Quality and Recognition - The satisfaction of students and teachers has significantly enhanced, indicating effective experiential work[29] - The Group has organized "Wonderful Class" competitions for 14 consecutive years, significantly improving students' learning effectiveness[26] - The Group's Yunnan Technology and Business University was awarded the "Employability Training Base for National College Graduates"[20] - The Group's schools have been recognized with multiple awards, including "Top 50 National Employment" and "Top 100 Typical Cases of Employment and Entrepreneurship of College Graduates in China"[9] - The Group's vocational schools have unique characteristics in industry-education integration, such as the only national college specializing in refractory materials[106] - Students achieved 3,421 awards in various competitions, including 419 at the national level and 40 top awards[68] - The Group's affiliated schools achieved significant improvements in student learning outcomes through the Wonderful Classroom competition, enhancing teaching quality[96] - Teachers from the Group's schools won a total of 291 awards in various teaching competitions, including 175 awards in top competitions recognized by the Ministry of Education[99] Financial Performance - Total revenue increased by 11.7% year-on-year, while net profit attributable to owners of the parent rose by 13.4% year-on-year[62] - Revenue from tuition and boarding fees reached RMB 2,119.1 million, up 10.3% from RMB 1,921.7 million year-on-year, driven by centralized school operation advantages[143][148] - Gross profit increased by 7.4% to RMB 806.0 million, with a gross profit margin of 38.0%, down 1 percentage point from 39.0% in the previous year[145][150] - Net profit attributable to owners of the parent was RMB 703.3 million, reflecting a 13.4% increase from RMB 620.0 million in the previous year[141][142] - Adjusted net profit attributable to owners of the parent was RMB 727.5 million, up 10.1% from RMB 661.0 million year-on-year[141][142] - Profit before tax increased by 13.1% to RMB 845.9 million, compared to RMB 747.6 million in the previous year[164] - Net profit for the year ended August 31, 2023, was RMB 703.3 million, an increase of 11.6% from RMB 630.2 million[165] Investment and Development - Investment in school operations reached RMB250 million, focusing on the construction and renovation of teaching facilities and upgrading campus networks[64] - Teacher investment grew by 11%, with a 29% year-on-year increase in the number of dual-qualified teachers[64] - The Group established 51 modern industrial colleges and 991 off-campus practice bases, benefiting over 50,000 students[68] - The Group has established collaborative training models with over 1,000 enterprises, creating 51 modern industrial colleges and 991 off-campus practice bases[86] - The Group's investment in faculty costs increased by 11% year-on-year, enhancing the quality of teaching staff and educational resources[92] - The Group's capital expenditures were RMB 745.7 million, primarily for the construction of school buildings and facilities, and the purchase of equipment and software[182] Strategic Initiatives and Partnerships - The Group has established partnerships with several prestigious schools in Southeast Asian countries[53] - The Group initiated strategic cooperation with Zhaopin, offering more than 800,000 job opportunities for students[72] - The Group is committed to integrating ESG principles into its development and has initiated cooperation with KPMG to enhance its ESG standards[78] - The Group aims to maintain stable performance growth and abundant cash flow while creating long-term value for investors[82] - The Group aims to create high-quality educational opportunities, focusing on high-quality teaching, employment, and student experiences[132] - The Group is committed to integrating ESG principles into its operations, ensuring stable financial growth and sustainable development[133] Student Enrollment and Structure - The total number of students in the Group's schools for the 2023/2024 academic year is approximately 140,000, with a 2.7% year-on-year increase in new students[88] - The proportion of undergraduate students among the total student population increased by 3.4 percentage points, indicating an optimization in student structure[88] - The Group has significantly increased the proportion of cross-province admissions, enhancing brand competitiveness and expanding enrollment in economically developed areas[128] Government Policies and Support - The Opinions issued by the Chinese government emphasize the establishment of a vocational education college entrance examination system to enhance the integration of vocational and general education[200] - The government encourages the establishment of more market-oriented majors in vocational education to align with national strategies[200] - Local governments are tasked with promoting enterprise participation in vocational education, integrating it into industrial development plans and providing various incentives[200] - The Group's subsidiaries are encouraged to innovate in school-enterprise cooperation mechanisms and deepen educational reforms[200]

Employment and Education Quality - The group achieved a graduation employment rate of 95.6% for the 2022 cohort, maintaining a high level for three consecutive years; the initial employment rate for the 2023 cohort reached 90.65%, an increase of 1.24 percentage points year-on-year[2]. - The group established partnerships with over 1,150 enterprises, creating 51 modern industry colleges and 991 off-campus practice bases, enhancing the quality of education and employment opportunities[7]. - The group’s institutions achieved 40 national top awards in recognized comprehensive discipline competitions, setting a historical high[2]. - The group’s schools have been recognized for high-quality employment outcomes, with significant achievements in various employment-related awards and recognitions[2]. - The group has established three employment and entrepreneurship centers in key economic regions to enhance job opportunities for graduates[10]. - The group’s employment strategy has led to a 67% increase in the number of graduates employed by Fortune 500 companies and other top firms compared to the previous year[10]. - The group has introduced 8 new "Four New" majors (new engineering, new medical, new agricultural, and new liberal arts) to meet national strategic development needs[2]. - The proportion of undergraduate students among total enrolled students increased by 3.4 percentage points, indicating an optimization in student demographics[2]. Financial Performance - Total revenue for the year ended August 31, 2023, was RMB 2,526.9 million, an increase of 11.7% compared to RMB 2,262.5 million in the previous year[19]. - Main operating income reached RMB 2,119.1 million, up 10.3% from RMB 1,921.7 million year-on-year, driven by high-quality development and steady growth in tuition and accommodation fees[20]. - Gross profit amounted to RMB 806.0 million, a 7.4% increase from RMB 750.4 million, with a gross margin of 38.0%, down 1 percentage point from 39.0% in the previous year[22]. - Net profit for the year was RMB 703.3 million, up 11.6% from RMB 630.2 million, with adjusted net profit increasing by 8.4% to RMB 727.5 million[19]. - The group’s profit before tax for the reporting period was RMB 8,459 million, up 13.1% from RMB 7,476 million in the same period last year[28]. - The total tax expense for 2023 was RMB 142,554,000, compared to RMB 117,432,000 in 2022, representing a rise of 21.4%[85]. - Basic earnings per share for the year were RMB 0.45, up from RMB 0.39 in 2022[64]. Investments and Expenditures - The group invested 11% more in faculty costs year-on-year, focusing on expanding the dual-teacher workforce and improving compensation for high-qualification educators[5]. - Capital expenditures for the year ended August 31, 2023, were RMB 7,457 million, primarily for the construction of school facilities and the purchase of equipment and software[35]. - The group has invested RMB 50 million in technology development to enhance online learning platforms[100]. Governance and Compliance - The board emphasizes the importance of corporate governance and has adopted good governance practices to ensure transparency and accountability[57]. - The company must comply with public, fair, and reasonable principles when engaging in transactions with related parties, ensuring no harm to national interests or student rights[49]. - The audit committee has reviewed the financial reporting and internal controls, ensuring compliance with accounting principles[61]. Strategic Initiatives and Future Plans - The group plans to continue investing in high-quality education opportunities, aligning with national policy support for vocational education[16]. - The group aims to enhance its ESG initiatives, focusing on stable financial growth and sustainable development[17]. - The company anticipates a revenue growth of 20% for the next fiscal year, projecting revenues to reach RMB 1.44 billion[100]. - New product offerings in vocational training programs are expected to launch in Q1 2024, targeting an additional 5,000 enrollments[99]. - The company is expanding its market presence in southwestern China, with plans to open two new campuses by mid-2024[100]. Shareholder Returns - The board has proposed a final dividend of RMB 0.096 per share for the year ended August 31, 2023, compared to RMB 0.093 per share for the previous year, reflecting a 3.2% increase[53]. - The interim dividend for the year ended August 31, 2023, is RMB 0.119 per share, up from RMB 0.106 per share for the previous year, indicating a 12.3% increase[54]. - The board has approved a share buyback program worth RMB 100 million to enhance shareholder value[100]. Challenges and Regulatory Environment - The company has not yet started the classification registration process for its other subsidiaries, except for schools in Northeast China, Guangxi, Yunnan, and Guizhou, which are currently processing their classification registration according to local guidelines[47]. - The local regulations provide a framework for the classification registration of private schools but lack detailed provisions on the tax and land benefits for profit and non-profit schools[47]. - The government will review related transactions annually for non-profit private schools, which may lead to significant compliance costs for the company[49].

Financial Performance - Revenue from principal business increased by 11% year-on-year[12] - Net profit attributable to owners of the parent increased by 13% year-on-year[12] - Total revenue for the six months ended February 28, 2023, was RMB 1,321.3 million, an increase of 9.2% compared to RMB 1,209.5 million for the same period in 2022[54] - Revenue from tuition fees and boarding fees increased by 11.2% to RMB 1,152.2 million, driven by the advantages of centralized school operation[55] - Gross profit for the reporting period was RMB 452.7 million, up 8.7% from RMB 416.5 million, with a gross profit margin of 39.3%, down 0.9 percentage points from 40.2%[57][62] - Profit before tax rose by 11.6% to RMB 462.1 million from RMB 414.1 million year-on-year[66] - Net profit increased by 9.8% to RMB 390.5 million compared to RMB 355.6 million in the same period last year[66] - Basic earnings per share attributable to ordinary equity holders of the parent was RMB 0.25, compared to RMB 0.22 in the previous year, indicating an increase of 13.6%[1][189] - Total comprehensive income for the period was RMB 386,838,000, slightly up from RMB 369,346,000 in the same period last year[1][192] Employment and Talent Development - The employment rate for 2022 graduates reached approximately 95.6%, with high-quality employment proportion at 22%[18] - 24% of graduates from Northeast School were employed by Fortune Global 500 companies[18] - More than half of nursing graduates from Yunnan School and Central China School retained employment after internships at the 301 General Hospital of the People's Liberation Army[18] - The Group organized over 2,600 teaching backbones to engage with Fortune Global 500 and A-share listed companies to align training goals with employment demands[16] - The Group has been awarded 158 projects under the Ministry of Education's Supply-Demand Matching Career Development Project, ranking among the top five in China[18] - The Group has cultivated approximately 400,000 high-quality applied and technical talents over more than 20 years in higher vocational education[25] - The satisfaction degree of graduates reached 91%, based on a survey covering over 40,000 participants, indicating strong approval of school management and business environment[46] Educational Quality and Development - Continuous improvement in the quality of talent training and student experience[14] - Ongoing efforts in classroom teaching quality, faculty, and integration of industry and education[14] - The Group has implemented over a hundred OBE (Outcome-Based Education) trainings and workshops to improve teaching quality and curriculum standards[31] - The Group's teaching quality assurance system, "One Integrality, Five Dimensions, One Platform," aims to continuously improve educational standards[41] - The Group's schools have been actively involved in curriculum reform based on industrial development trends and enterprise needs[30] - The Group aims to provide higher vocational education that meets the satisfaction of the people, focusing on high-quality teaching and employment experiences[21] Governance and Strategic Initiatives - The Group's governance is becoming more mature, enhancing operational capabilities of the schools[14] - The Group aims to strengthen its position in the higher vocational education sector by focusing on high-quality development and sustainable growth[54] - Future strategies include enhancing brand image and optimizing educational offerings to create greater value for society[54] - The Group's governance has matured, focusing on resource sharing, systems and processes, procurement management, and risk control to promote high-quality school operation[48] - Policies supporting vocational education development have been introduced, emphasizing the importance of high-quality education and employment strategies[49] Capital and Financial Management - The Group's total capital amounted to RMB969.4 million as of February 28, 2023, down from RMB1,568.1 million as of August 31, 2022[66] - Interest-bearing debt to total assets ratio decreased from 36.7% to 31.6% due to early repayment of high-interest bank loans[67] - Capital expenditures for the period were RMB351.7 million, primarily for school building construction and equipment purchases[70] - The Group's deposits amounted to RMB 518,329,000 as of February 28, 2023, an increase from RMB 354,165,000 as of August 31, 2022[81] - The company reported finance costs of RMB 68,193,000 for the period, compared to RMB 65,919,000 in the previous year, indicating a slight increase in financing expenses[1][189] Shareholder Information and Dividends - Dividend payout ratio maintained at 50%, with a dividend yield of 9% based on the share price on April 24, 2023[12] - The interim dividend declared for the six months ended February 28, 2023, is RMB 0.119 per share, compared to RMB 0.106 per share for the same period in 2022, reflecting a 12.3% increase[89] - The Board intends to recommend an annual dividend of not less than 30% of the profits available for distribution earned by the Company in each financial year[1][179] - The ability to pay dividends in the future may be restricted by regulations affecting the Company's PRC subsidiaries[1][180] Regulatory and Compliance Matters - The Group's corporate governance practices comply with all applicable code provisions set out in the Corporate Governance Code during the reporting period[88] - The Group is committed to meeting the Qualification Requirement and has adopted specific plans and taken concrete steps towards compliance[130] - The Foreign Investment Law does not explicitly define contractual agreements as a form of foreign investment, which may protect the Group's current contractual arrangements[144] - The Group's operations have not been affected by the 2021 Implementation Rules as of the report date[143]