香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 China Xinhua Education Group Limited 中 國 新 華 教 育 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2779） 截至2023年6月30日止六個月 中期業績公告 中國新華教育集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈，本 公司、其附屬公司及綜合聯屬實體（統稱「本集團」）截至2023年6月30日止六個月 （「報告期」）的未經審核中期綜合財務業績，連同2022年同期的比較數字。本集團 於報告期內的未經審核中期綜合財務業績已由董事會審核委員會（「審核委員會」） 審閱。 於本公告中，「我們」指本公司，倘文義另有所指，指本集團。 摘要 截至6月30日止六個月 變動 2023年 2022年 百分比 人民幣千元 人民幣千元 （未經審核）（未經審核） ...

Enrollment and Academic Programs - The total number of enrolled students increased from 56,518 as of December 31, 2021, to 60,510 as of December 31, 2022, representing a growth of approximately 6%[8]. - The Clinical Medicine College saw an enrollment increase to 5,993 students as of December 31, 2022, which is a year-on-year growth of 40.65%[12]. - The new undergraduate programs approved for Xinhua College include Financial Technology and Artificial Intelligence, contributing to a total of 57 undergraduate programs offered[11]. - The Clinical Medicine College has added three new undergraduate programs: Preventive Medicine, Intelligent Medical Engineering, and Biomedical Data Science[12]. - The group added new undergraduate programs in financial technology, artificial intelligence, preventive medicine, intelligent medical engineering, and biomedical data science, totaling 4 national-level first-class undergraduate programs and 14 provincial-level first-class undergraduate programs[18]. Financial Performance - Revenue rose from RMB 565.4 million for the year ended December 31, 2021, to RMB 625.5 million for the year ended December 31, 2022, marking an increase of about 10.6%[8]. - The group's revenue increased by 10.6% from RMB 565.4 million for the year ended December 31, 2021, to RMB 625.5 million for the year ended December 31, 2022, primarily due to an increase in student enrollment and average tuition fees[24]. - Adjusted revenue for 2022 was RMB 860,098,000, an increase of 11.1% from RMB 774,046,000 in 2021[25]. - The company reported a revenue of 1.2 billion RMB for the fiscal year 2022, representing a year-over-year increase of 15%[76]. - The gross margin for the year was reported at 40%, a slight improvement from 38% in the previous year[76]. Costs and Expenses - Main operating costs rose by 31.5% to RMB 256,800,000 in 2022 from RMB 195,300,000 in 2021, driven by increased educational investments[27]. - Administrative expenses surged by 147.1% to RMB 158,400,000 in 2022 from RMB 64,100,000 in 2021, largely due to increased foreign exchange losses[31]. - Profit before tax fell by 33.0% to RMB 239,400,000 in 2022 from RMB 357,300,000 in 2021, primarily due to increased foreign exchange losses[33]. - Net profit for the year was RMB 235,500,000, a decline of 33.6% from RMB 354,500,000 in 2021[36]. - Current assets decreased significantly by 77.0% to RMB 537,936,000 in 2022 from RMB 2,338,874,000 in 2021, mainly due to reclassification of other receivables[39]. Investments and Capital Expenditures - Capital expenditures for the group amounted to RMB 436.7 million in 2022, a decrease from RMB 997.7 million in 2021, primarily related to the construction of buildings and school facilities[49]. - The group has invested significantly in modernizing campus facilities, including the construction and renovation of 80 experimental training centers and 3 academic report centers[18]. Employment and Workforce - The workforce increased to approximately 2,297 employees as of December 31, 2022, compared to 1,995 in the previous year[63]. - The group conducted 680 training sessions to enhance the skills of its faculty, focusing on attracting high-level talent, including PhDs and senior professionals[18]. Strategic Initiatives and Future Plans - The company aims to enhance the management level of existing schools and improve the quality of educational services to increase student competitiveness in the job market[9]. - The company is focused on integrating education with industry and strengthening school-enterprise cooperation to leverage market potential in higher education[9]. - The company plans to leverage favorable policies to enhance educational services and contribute to the modernization of education in China, as outlined in the "Strategic Plan for Expanding Domestic Demand (2022-2035)"[20]. - The company expects a revenue growth of 10-15% for the next fiscal year, driven by new product launches and market expansion[76]. Risk Management - The company faces operational risks including changes in the private education market, regulatory environment, and competition from other educational institutions[107]. - The company has a risk management structure in place to address various risks, including credit and liquidity risks[111]. Shareholder and Governance - The board of directors has approved a dividend payout of 0.2 RMB per share, reflecting a commitment to returning value to shareholders[76]. - The company has established a dividend policy that allows the board to decide on dividend distribution based on financial performance, working capital needs, and future plans[101]. - The controlling shareholder has committed to a non-competition agreement, ensuring no direct or indirect competition with the group's business during the restricted period[167]. - The company has confirmed the independence of its independent non-executive directors as per the listing rules[133]. Compliance and Legal Structure - The group operates private higher education businesses in China through structured contracts due to restrictions on foreign ownership in the sector[173]. - The company has established a second structured contract, which is substantially similar to the first, ensuring the flow of economic benefits from Chinese operating schools to the company[176]. - The agreements are designed to protect the company's interests and ensure the sustainability of its educational services[182].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 China Xinhua Education Group Limited 中 國 新 華 教 育 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2779） 截至2022年12月31日止年度 全年業績公告 財務摘要 截至12月31日止年度 2022年 2021年 變動百分比 人民幣千元 人民幣千元 經調整收入(1) 860,098 774,046 11.1% 收入 625,476 565,386 10.6% 毛利 368,705 370,132 -0.4% 年度溢利 235,511 354,482 -33.6% 經調整淨溢利(2) 330,788 341,393 -3.1% 附註： (1) 經調整收入包括本集團的收入加上臨床醫學院及紅山學院的收入。其並非一項國際財務報 告準則計量。有關詳情，請參閱本公告「管理層討論與分析－財務回顧」一節。 (2) 本集團將經調整淨溢利定義為就與本集團 ...

Financial Performance - Adjusted revenue for the six months ended June 30, 2022, was RMB 457.3 million, an increase of 14.8% compared to RMB 398.3 million in the same period of 2021[8]. - Total revenue for the same period was RMB 333.5 million, reflecting a growth of 15.0% from RMB 290.0 million year-on-year[8]. - Gross profit reached RMB 221.9 million, up 7.6% from RMB 206.1 million in the previous year[8]. - Net profit for the period was RMB 172.5 million, a decrease of 16.9% compared to RMB 207.7 million in the prior year[8]. - Revenue for the six months ended June 30, 2022, was RMB 333,473,000, an increase from RMB 290,014,000 for the same period in 2021, representing a growth of approximately 15%[90]. - Gross profit for the same period was RMB 221,856,000, compared to RMB 206,105,000 in 2021, reflecting a gross margin improvement[90]. - Operating profit decreased to RMB 181,236,000 from RMB 215,851,000 year-over-year, indicating a decline of about 16%[90]. - Profit before tax was RMB 173,247,000, down from RMB 208,152,000 in the previous year, a decrease of approximately 17%[90]. - Net profit for the period was RMB 172,495,000, compared to RMB 207,692,000 in 2021, representing a decline of around 17%[90]. - Total comprehensive income for the period was RMB 212,337,000, an increase from RMB 196,969,000 in the prior year, showing a growth of about 7.0%[90]. Student Enrollment and Educational Offerings - The number of full-time students as of June 30, 2022, was approximately 45,238, representing a 6.3% increase year-on-year[10]. - The group operates four educational institutions, including Xinhua College and Clinical Medical College, enhancing its educational offerings[12]. - New undergraduate programs in Financial Technology and Artificial Intelligence were recently approved, expanding the curriculum[14]. - The number of full-time students at Clinical Medicine College rose to 4,261, a significant increase of 50.5% year-on-year[18]. - The number of full-time students at Hongshan College increased to 10,213, up from 9,945, reflecting a growth of approximately 2.7%[18]. - The group aims to improve educational quality and employability, with overall graduate employment rates exceeding local averages[11]. - The group has received over 400 provincial and national awards in the 2021/2022 academic year, with a 43% increase in national-level awards for students[14]. - The group plans to enhance its professional construction and improve educational quality by adding new first-class undergraduate programs, including Economics and Finance, and Software Engineering[19]. - The group aims to leverage favorable policies in vocational education to expand its business network and enhance the effectiveness of industry-education integration[23]. - The group is committed to enhancing its influence in the Yangtze River Delta region through strategic educational initiatives[10]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2022, were RMB 347.3 million, down from RMB 645.9 million as of December 31, 2021[38]. - Current assets net increased by 10.3% from RMB 1,848.7 million to RMB 2,038.2 million, mainly due to a decrease in contract liabilities and an increase in other receivables[39]. - Capital expenditures for the period were RMB 14.3 million, slightly down from RMB 14.7 million in the previous period[40]. - The debt-to-asset ratio decreased from 22.6% as of December 31, 2021, to 20.5% as of June 30, 2022, due to a reduction in contract liabilities[42]. - The company reported other income of RMB 37,817,000, a decrease from RMB 48,514,000 in the same period last year, indicating a decline of about 22%[90]. - Net cash used in operating activities was RMB (62,352) thousand, compared to RMB (31,789) thousand in the previous year, reflecting a significant increase in cash outflow[101]. - Net cash used in investing activities was RMB (178,956) thousand, a decrease from RMB (436,823) thousand in the same period last year, indicating improved cash management[101]. - Net cash generated from financing activities was RMB 57,521 thousand, down from RMB 231,441 thousand in the previous year, showing a reduction in financing inflows[101]. - Cash and cash equivalents decreased by RMB 183,787 thousand, compared to a decrease of RMB 237,171 thousand in the same period of 2021[101]. Shareholder and Corporate Governance - The company has a significant shareholder, Mr. Wu Junbao, holding 71.77% of the shares[59]. - Mr. Wu Junbao is also the beneficial owner of RMB 100 million in registered share capital, representing 95.70% of the group's equity[60]. - The company has adopted a share option scheme to incentivize qualified individuals and retain talent[66]. - The company has appointed a new company secretary, Ms. Yu Anni, effective August 30, 2022[55]. - The company maintained compliance with corporate governance codes and standards throughout the reporting period[84]. - The independent auditor's review confirmed that the interim financial report complied with applicable accounting standards and regulations[89]. Dividends and Share Options - The company approved a dividend of RMB 148,237 thousand for the previous year, which was a decrease compared to the previous year's dividend[98]. - The total number of shares that may be issued under the stock option plan cannot exceed 10% of the issued shares as of the listing date, which is 160,000,000 shares[67]. - As of the report date, the total number of shares available for issuance under the stock option plan is 92,100,000 shares, accounting for approximately 5.73% of the total issued share capital[67]. - The stock option plan will remain valid for 10 years from the date it becomes unconditional, after which no further options will be granted[69]. - The total number of stock options granted on July 15, 2019, is 52,900,000, with specific vesting schedules for different groups of options[71]. - There were no other stock options granted, exercised, expired, or canceled during the reporting period apart from those disclosed[75]. Operating Segments and Market Focus - The company has identified only one operating segment, which is the provision of educational services, as per IFRS 8[112]. - The company is focused on the Yangtze River Delta region, which includes Jiangsu, Zhejiang, Anhui provinces, and Shanghai[142].

Enrollment and Student Growth - The total number of students enrolled in the schools operated by the company increased from 46,415 as of December 31, 2020, to 56,518 as of December 31, 2021, representing a growth of 21.7%[7] - The number of full-time students reached 45,121 as of December 31, 2021, which is a 6.1% increase compared to the previous year[9] - Xinhua College enrolled 7,070 new undergraduate students in the 2021/2022 academic year, representing a year-on-year growth of 10.5%[13] - The total number of full-time students at Xinhua College reached 24,461 as of December 31, 2021, an increase from 23,755 in the previous year[21] - The Clinical Medicine College saw a 50.5% year-on-year increase in full-time students, reaching 4,261 in the 2021/2022 academic year[14] - The total number of full-time students across all institutions increased to 45,121, up from 42,541 the previous year[21] Financial Performance - The company's revenue rose from RMB 478.8 million for the year ended December 31, 2020, to RMB 565.4 million for the year ended December 31, 2021, marking an increase of 18.1%[7] - The annual profit increased from RMB 325.3 million for the year ended December 31, 2020, to RMB 354.5 million for the year ended December 31, 2021, reflecting a growth of 9.0%[7] - Adjusted revenue increased by 18.1% from RMB 478.8 million in 2020 to RMB 565.4 million in 2021[35] - Total revenue rose to RMB 565.4 million in 2021, with tuition fees increasing by 14.7% to RMB 514.4 million[35] - Gross profit grew by 19.0% to RMB 370.1 million in 2021, driven by increased revenue[40] - Operating profit for 2021 was RMB 374.8 million, up from RMB 340.5 million in 2020, reflecting a 10.1% increase[32] - Net profit for the year reached RMB 354.5 million, a 9.0% increase compared to RMB 325.3 million in 2020[47] Strategic Initiatives and Future Plans - The company aims to enhance the management level of its existing institutions and provide quality educational services to improve students' competitiveness in the labor market[8] - The company plans to continue expanding its influence in the education sector, particularly in the Yangtze River Delta region, through strategic initiatives[9] - The company is committed to developing high-end applied talents and strengthening industry-education integration and school-enterprise cooperation[8] - The company plans to enhance its competitive edge in higher education by focusing on high-quality applied education and resource sharing[29] - The group aims to explore new growth points in vocational education, leveraging favorable policies to expand its business network[29] Employment and Graduate Success - The company has a high overall employment rate for its graduates, which exceeds the average employment rate in the region[10] - The employment rate for graduates from Xinhua College in 2021 was 93.6%, ranking third among universities in Anhui Province[25] Research and Development - The group achieved a 15.6% year-on-year growth in provincial and ministerial-level research projects, totaling 646 projects[23] - The group launched two new undergraduate programs in Financial Technology and Artificial Intelligence in 2021[13] - Research and development investments increased by 18%, focusing on innovative educational technologies[104] Financial Position and Assets - Total current assets increased to RMB 2,338.9 million in 2021 from RMB 1,800.6 million in 2020, representing a growth of 30.0%[50] - Current liabilities rose to RMB 490.2 million in 2021, compared to RMB 463.9 million in 2020, an increase of 5.7%[50] - The net current assets as of December 31, 2021, were RMB 1,848.7 million, up from RMB 1,336.7 million in 2020, marking a significant increase of 38.3%[51] - Cash and cash equivalents and time deposits totaled RMB 645.9 million as of December 31, 2021, down from RMB 1,004.3 million in 2020[58] Shareholder and Governance Matters - The company proposed a final dividend of HKD 0.1078 per share for the year ended December 31, 2021, compared to HKD 0.0723 per share in 2020, representing an increase of approximately 49.1%[120] - The independent board members emphasized the importance of compliance and governance, ensuring adherence to regulatory standards[106] - The company has a risk management structure in place, including board oversight for major business decisions affecting risk exposure[129] Operational Risks and Compliance - The company faces various operational risks, including changes in the regulatory environment and competition from other educational institutions[124] - The company continues to monitor foreign exchange risks and may consider using financial instruments to hedge significant foreign currency risks[74] - The company has implemented health and safety measures across its schools to protect students from physical harm and health risks[130] - The company has not reported any significant incidents related to student safety or health as of the report date[131] Capital Expenditures and Investments - Capital expenditures for the year ended December 31, 2021, were RMB 997.7 million, significantly higher than RMB 482.6 million in 2020[59] - The company has not entered into any significant acquisitions or disposals of subsidiaries or associates during the year ending December 31, 2021[72] Stock Options and Employee Benefits - The company adopted a share option scheme on March 8, 2018, to incentivize eligible individuals and retain talent[168] - The total number of shares that may be issued under the stock option plan cannot exceed 10% of the shares issued as of the listing date, which is 160,000,000 shares[169] - The total number of stock options granted during the reporting period is detailed in the report, indicating the company's commitment to incentivizing key personnel[173] Structured Contracts and Tax Exemptions - The company operates through structured contracts to control Chinese operating schools, ensuring compliance with local laws and regulations[189] - New Hua Xinjiang was fully exempt from corporate income tax from January 1, 2018, to December 31, 2020, under local tax policies[192]

Financial Performance - Adjusted revenue for the six months ended June 30, 2021, was RMB 398.31 million, an increase of 20.2% compared to RMB 331.25 million in the same period of 2020[8]. - Total revenue for the same period was RMB 290.01 million, reflecting an 18.5% increase from RMB 244.82 million year-on-year[8]. - Gross profit reached RMB 206.11 million, up 18.5% from RMB 173.94 million in the previous year[8]. - Net profit for the period was RMB 207.69 million, a significant increase of 36.0% compared to RMB 152.73 million in 2020[8]. - Adjusted net profit was RMB 205.15 million, representing a 13.8% increase from RMB 180.29 million year-on-year[8]. - Operating profit before tax rose by 36.3% to RMB 208.2 million, influenced by gross profit growth and reduced administrative expenses[34]. - The group recorded a net profit of RMB 207.7 million, up 36.0% from RMB 152.7 million in the previous period[36]. - Total comprehensive income for the period amounted to RMB 196,969 thousand, compared to RMB 174,224 thousand in the same period of 2020, marking a 13.1% increase[84]. - Basic and diluted earnings per share were RMB 12.9, an increase from RMB 9.5 in the previous year[84]. Student Enrollment and Educational Expansion - The number of enrolled students as of June 30, 2021, was 48,554, marking a 10.54% increase from 43,923 in the previous year[8]. - The Clinical Medical College saw a 61.7% increase in student enrollment, reaching 2,831 students in the 2020/2021 academic year[14]. - The approved undergraduate enrollment plan for the Clinical Medical College for the 2021/2022 academic year increased by 44.8% compared to the previous year[14]. - Total number of full-time students increased to 42,550 as of June 30, 2021, up from 39,879 in the previous year, representing a growth of approximately 4.2%[17]. - The group plans to enroll 11,330 undergraduate students for the 2021/2022 academic year, reflecting a year-on-year increase of about 5.2%[19]. - The proportion of undergraduate students in the total full-time student population reached approximately 77.7%[19]. Campus Development - The new campus construction for the Clinical Medical College is progressing well, with the first phase nearly completed and set to meet the requirements for independent college status[14]. - The new campus construction for Hongshan College is progressing smoothly, with an area of approximately 235,000 square meters, expected to accommodate an additional 9,000 students upon completion[19]. - The new campus for the Clinical Medicine College will cover about 185,000 square meters, adding capacity for 5,000 students[19]. Partnerships and Strategic Initiatives - The group has established partnerships with well-known companies such as JD.com and Youfu New Road to enhance talent cultivation and research[20]. - The group aims to leverage favorable policies to expand its school network and student numbers through mergers and acquisitions of quality schools[22]. - The group is focused on enhancing educational quality and expanding its influence in the higher education sector through independent college transformation[21]. - The company has established partnerships with universities to operate clinical medical colleges, which are expected to enhance revenue streams in the future[113]. - The company is committed to expanding its educational offerings and enhancing its operational capabilities through strategic partnerships[164]. Financial Position and Assets - Cash and cash equivalents decreased to RMB 487.9 million as of June 30, 2021, from RMB 736.3 million at the end of 2020[39]. - Net current assets increased by 40.7% to RMB 1,880.6 million, mainly due to a decrease in contract liabilities and an increase in other receivables[40]. - Total assets as of June 30, 2021, were RMB 2,264,121 thousand, compared to RMB 1,800,579 thousand at the end of 2020, indicating a significant increase[87]. - Total equity increased to RMB 2,927,933 thousand as of June 30, 2021, from RMB 2,820,769 thousand at the end of 2020, reflecting a growth of 3.8%[88]. - The company reported a total cash and cash equivalents of RMB 487.89 million as of June 30, 2021, down from RMB 726.28 million as of December 31, 2020, indicating a decrease of approximately 33%[135]. Liabilities and Debt - As of June 30, 2021, the group's bank loans and loans from related parties amounted to RMB 555.2 million[42]. - The group's debt-to-asset ratio increased from 21% as of December 31, 2020, to 22% as of June 30, 2021, primarily due to an increase in dividends payable and loans[44]. - The total liabilities amounted to RMB 841,724 thousand, compared to RMB 729,880 thousand as of December 31, 2020, reflecting an increase of approximately 15.3%[151]. - The group had no significant contingent liabilities, guarantees, or lawsuits as of June 30, 2021[43]. Stock Options and Corporate Governance - The stock option plan adopted on March 8, 2018, allows for a maximum issuance of 160,000,000 shares, which is 10% of the total shares issued at the time of listing[61]. - As of the report date, a total of 92,100,000 shares are available for issuance under the stock option plan, accounting for about 5.73% of the company's total issued share capital[62]. - The stock options granted to directors and employees are subject to a vesting schedule, with 20% vesting on each of the five specified dates from April 30, 2020, to April 30, 2024[66]. - The company has adopted a corporate governance code and has complied with all applicable provisions during the reporting period[78]. - The independent auditor has reviewed the interim financial report and found no significant issues regarding compliance with International Accounting Standard 34[83]. Future Outlook - The board believes that the implementation of the new Private Education Promotion Law will positively impact the group's operations and growth prospects[164]. - The group aims to strengthen its market position through potential mergers and acquisitions in the education sector[164].

Enrollment and Student Growth - The total number of students enrolled in the group increased from 45,244 as of December 31, 2019, to 46,415 as of December 31, 2020, representing a growth of 2.6%[7] - The number of full-time students as of December 31, 2020, was 42,541, which is a 6.8% increase compared to the previous year[9] - Xin Hua College enrolled 6,042 new undergraduate students in the 2020/2021 academic year, representing a year-on-year growth of 21%[11] - The total number of full-time students reached 42,541, an increase of 6.8% year-over-year[22] - The group plans to enroll 10,789 new full-time students for the 2020/2021 academic year, representing a 19.2% increase compared to the previous year[22] - The group plans to increase its enrollment for the 2020/21 academic year by over 1,500 students, representing a growth of over 290% compared to the 2019/20 academic year, exceeding the average level of private higher education institutions in China[29] Financial Performance - The group's revenue rose from RMB 437.5 million for the year ended December 31, 2019, to RMB 478.8 million for the year ended December 31, 2020, an increase of 9.4%[7] - The annual profit increased from RMB 270.7 million for the year ended December 31, 2019, to RMB 325.3 million for the year ended December 31, 2020, reflecting a growth of 20.2%[7] - Total revenue increased by 9.4% from RMB 437.7 million in 2019 to RMB 478.8 million in 2020, primarily due to a 14.4% rise in tuition fees[40] - Comprehensive income rose significantly to RMB 650.1 million in 2020 from RMB 514.1 million in 2019, driven by increased revenue from the clinical medical college and Hongshan College[41] - Gross profit increased by 19.1% to RMB 311.1 million in 2020, compared to RMB 261.2 million in 2019, due to higher revenue and reduced operating costs[44] - Operating profit for 2020 was RMB 340.5 million, up from RMB 274.6 million in 2019, reflecting improved operational efficiency[50] - Adjusted net profit for 2020 was RMB 320.8 million, compared to RMB 296.0 million in 2019, indicating a solid performance despite external challenges[54] - Normalized net profit reached RMB 342.2 million in 2020, benefiting from a one-time refund of accommodation fees due to COVID-19[54] Strategic Plans and Expansion - The group aims to expand its network of schools and student enrollment through mergers and acquisitions of quality undergraduate and vocational schools[8] - The group plans to enhance the management level of its existing institutions and continue providing quality services and educational support to improve students' competitiveness in the job market[8] - The group is focused on improving educational quality and expanding its influence through the successful transition of independent colleges[23] - The group aims to expand its school network and educational scale through mergers and acquisitions, focusing on high-quality independent colleges and institutions located in regions with strong talent attraction or low gross enrollment rates[32] - The group is actively promoting the transformation of two independent colleges, with expectations to complete the transition by 2021, which will likely lead to significant increases in enrollment plans and tuition levels[34] Operational Developments - The new campus construction for Clinical Medicine College is progressing well, with an area of approximately 185,000 square meters, expected to accommodate an additional 5,000 students by September 2021[22] - The new campus for Hongshan College is also on track, covering about 235,000 square meters, which will add 9,000 student capacity, anticipated to be operational by September 2021[22] - The transition of Clinical Medicine College and Hongshan College to independent colleges is advancing smoothly, with Clinical Medicine College already receiving approval from the Anhui Provincial Education Department[23] - The group has established partnerships with well-known companies like JD.com and Youfu New Road to create modern industry colleges, enhancing talent cultivation and innovation[25] Quality of Education and Employment - The group is committed to providing high-quality applied education services, covering various popular subjects and employment fields[9] - The overall employment rate of the group's graduates is higher than the average employment rate in their respective regions[9] Financial Position and Assets - Current assets decreased to RMB 1.8 billion in 2020 from RMB 1.9 billion in 2019, while current liabilities significantly reduced to RMB 463.9 million from RMB 675.4 million[57] - As of December 31, 2020, the net current assets of the group were RMB 1,336.7 million, an increase from RMB 1,198.6 million as of December 31, 2019, primarily due to a decrease in short-term loans and borrowings[58] - Cash and cash equivalents and bank deposits amounted to RMB 1,004.3 million as of December 31, 2020, down from RMB 1,383.0 million as of December 31, 2019[66] COVID-19 Impact and Response - The company reported a total refund of approximately RMB 21.39 million for student accommodation fees due to COVID-19 related guidelines[89] - The company established a four-level prevention and control system to ensure the effective operation of online courses during the pandemic[89] - The company actively fulfilled its social responsibility by donating several million RMB in cash and materials to combat COVID-19[89] - The company has not experienced any significant adverse impact on its operations or finances due to COVID-19, aside from the mandated accommodation fee refunds[89] Shareholder and Management Information - As of December 31, 2020, the major shareholder, Mr. Wu Junbao, holds 1,152,618,879 shares, representing 71.65% of the company's equity[180] - Mr. Wu Junbao is the sole shareholder of Wu Junbao Company, which also holds 1,152,618,879 shares, accounting for 71.65% of the company's equity[184] - The company has established a credit policy to manage credit risk associated with trade receivables and financial assets[142] - The company has implemented measures to ensure sufficient liquidity to meet financial obligations and avoid reputational damage[145] Stock Options and Incentives - The company has adopted a share option scheme on March 8, 2018, to incentivize eligible individuals and retain talent[188] - The total number of shares that may be issued under the stock option plan cannot exceed 10% of the shares issued as of the listing date, which is 160,000,000 shares[189] - As of the report date, the total number of shares available for issuance under the stock option plan is 92,100,000 shares, accounting for approximately 5.73% of the company's issued share capital[189] - The stock options granted on April 30, 2019, have an exercise price of HKD 2.69, with 15,000,000 options remaining unexercised as of December 31, 2020[194] - The stock options granted on July 15, 2019, have an exercise price of HKD 2.82, with a total of 52,900,000 options granted, of which 40,900,000 remain unexercised[194]

Financial Performance - Total revenue for the six months ended June 30, 2020, was RMB 292,989,000, an increase of 8.8% compared to RMB 269,265,000 for the same period in 2019[7] - Revenue for the same period was RMB 244,819,000, reflecting a growth of 7.6% from RMB 227,596,000 in 2019[7] - Gross profit increased by 18.9% to RMB 173,939,000, up from RMB 146,258,000 year-on-year[7] - Adjusted net profit for the period was RMB 180,285,000, representing a 16.9% increase from RMB 154,246,000 in 2019[7] - Revenue increased by 7.6% from RMB 227.6 million to RMB 244.8 million, driven by higher tuition and accommodation fees as well as an increase in full-time student numbers[25] - Other income rose by 15.6% from RMB 41.7 million to RMB 48.2 million, primarily due to operational revenue from the Clinical Medical College and Hongshan College[26] - Gross profit increased by 18.9% from RMB 146.3 million to RMB 173.9 million, attributed to optimized management and reduced operating costs due to the pandemic[28] - Adjusted net profit rose to RMB 180.3 million, up 16.9% from RMB 154.2 million, after accounting for foreign exchange losses and share-based payment expenses[36] - EBITDA increased from RMB 181.7 million to RMB 188.6 million, while adjusted EBITDA grew by 17.7% from RMB 183.6 million to RMB 216.1 million[37] - The company reported a total comprehensive income of RMB 174,224,000 for the period, which includes a profit of RMB 152,727,000[103] Student Enrollment and Capacity - The number of full-time students as of June 30, 2020, was 39,879, a 6.4% increase from 37,496 in the previous year[7] - The approved enrollment plan for the 2020/2021 academic year was 11,164 students, a year-on-year increase of approximately 7%[10] - The undergraduate enrollment plan for the same academic year was 10,764 students, reflecting a 19% increase compared to the previous year[10] - The group has initiated the construction of new campuses to increase student capacity, expecting to add at least 40,000 new student slots upon completion[10] - The enrollment in the Clinical Medicine College reached 1,751 full-time students, significantly up from 575 the previous year, marking an increase of 204.3%[17] - The Hongshan College added a new enrollment plan for 830 students for the 2020/21 academic year, reflecting a strategic expansion in its academic offerings[15] - The new campus of the Clinical Medicine College is under construction and is expected to be operational by September 1, 2021, which will significantly enhance the college's capacity[14] - The group plans to increase its enrollment for the 2020/21 academic year by over 1,500 students, a growth of more than 290% compared to the previous year, exceeding the national average for private higher education institutions[21] Financial Position - As of June 30, 2020, the group reported cash and cash equivalents of approximately RMB 1 billion[7] - Cash and cash equivalents amounted to RMB 1,101.0 million as of June 30, 2020, down from RMB 1,383.0 million at the end of 2019[38] - Current assets net increased by 35.6% to RMB 1,625.6 million, mainly due to a reduction in short-term bank loan balances[39] - Capital expenditures for the period were RMB 25.6 million, up from RMB 21.5 million, primarily related to building construction and equipment purchases[40] - The debt-to-equity ratio decreased from 25.8% to 20.4%, mainly due to the amortization of contract liabilities from tuition and accommodation fees[43] - The company's total assets as of June 30, 2020, were RMB 3,038,480,000, compared to RMB 2,618,280,000 at the end of 2019, reflecting a significant growth[95] - The net asset value increased to RMB 2,727,500,000 from RMB 2,618,280,000, indicating a rise of 4.2%[97] - Total liabilities as of June 30, 2020, were RMB 557,382 thousand, resulting in a debt-to-asset ratio of 17%, down from 21% as of December 31, 2019[144] Corporate Governance and Compliance - The independent auditor has reviewed the interim financial statements in accordance with the relevant auditing standards[85] - The company has complied with all applicable corporate governance codes during the reporting period[86] - The board does not recommend the distribution of an interim dividend for the reporting period[54] - There have been no significant events after June 30, 2020, that would impact the group[50] Impact of COVID-19 - The impact of the COVID-19 pandemic on the company's financial condition and operating performance was deemed not significant, with measures taken including the launch of an online education platform[156] - The company actively fulfilled its social responsibility by donating several million RMB in cash and materials to combat COVID-19[53] - The company has implemented emergency measures in response to the pandemic, including scientific planning and active epidemic prevention efforts[156] - The group has refunded approximately RMB 20 million in accommodation fees to students due to COVID-19 pandemic-related guidelines[53] Share Options and Equity - As of June 30, 2020, Wu Junbao Company holds 1,152,618,879 shares, representing approximately 71.65% of the company's equity[67] - The company has adopted a share option scheme allowing for the issuance of up to 160,000,000 shares, which is 10% of the total issued shares as of the listing date[70] - The total number of shares available for issuance under the share option scheme is 92,100,000, accounting for approximately 5.73% of the company's total issued share capital[70] - No options have been granted to any individual that would result in the total shares issued exceeding 1% of the company's issued share capital within any 12-month period[71] - The share option plan is valid for 10 years from the adoption date, with a remaining term of approximately seven years and seven months[72] - A total of 52,900,000 stock options were granted on July 15, 2019, with 33,000,000 options (Group A) vesting over a specified schedule[76] - The exercise price for the stock options granted to directors ranges from HKD 2.69 to HKD 2.82, with a total of 15,000,000 options for Zhang Ming and 6,000,000 options each for Lu Zhen and Wang Yongkai[74] - 40,900,000 stock options were granted to employees on July 15, 2019, with no options exercised or expired during the reporting period[74] Other Financial Information - The company reported a foreign exchange gain of RMB 21,497,000 for the period, compared to RMB 4,479,000 in the previous year, marking a substantial increase[93] - Basic and diluted earnings per share remained stable at RMB 9.5 for both periods[93] - The net cash used in operating activities was RMB (142,375,000), compared to RMB (45,752,000) in the previous year, reflecting a significant increase in cash outflow[107] - The company incurred a loss of RMB 140,856,000 in income tax payments during the reporting period, compared to RMB 43,710,000 in the previous year[107] - The company has not reported any significant new products or technologies during this period[116] - There were no acquisitions or major market expansions disclosed in the report[116] - The company continues to operate under a single business segment, which is the provision of educational services[118]

Enrollment and Student Growth - The total number of students enrolled in the schools operated by the company increased from 34,756 as of December 31, 2018, to 45,244 as of December 31, 2019[13]. - As of December 31, 2019, the total number of enrolled students reached 45,244, representing a growth of 30.2% compared to December 31, 2018[16]. - Xinhua College, the largest private higher education institution in the Yangtze River Delta, had 28,856 students enrolled as of December 31, 2019, with 82 full-time higher education programs offered[18]. - Xinhua School achieved a new enrollment of 2,244 students for the 2019/20 academic year, marking a year-on-year growth of 9.6% and a two-year compound annual growth rate of 25.7%[19]. - The Clinical Medical College has seen strong student enrollment interest, with the lowest admission score ranking among the top in similar institutions in Anhui Province[21]. - The total number of full-time students across all institutions increased from 34,756 in 2018 to 45,244 in 2019[26]. - The Clinical Medical College has been approved to add a new program for upgrading from associate to bachelor's degree, enhancing its enrollment capabilities[21]. - In the 2019/2020 academic year, the group enrolled 12,493 full-time students, a 41.1% increase from 2018. Excluding the impact of the newly acquired Hongshan College, the original schools enrolled 10,202 full-time students, a 15.3% increase[32]. Financial Performance - Revenue rose from RMB 386.1 million for the year ended December 31, 2018, to RMB 437.7 million for the year ended December 31, 2019, representing an increase of approximately 13.3%[13]. - Annual profit increased from RMB 256.0 million for the year ended December 31, 2018, to RMB 270.7 million for the year ended December 31, 2019, reflecting a growth of about 5.5%[13]. - The company's gross profit for 2019 was RMB 261.2 million, compared to RMB 230.4 million in 2018, indicating a year-over-year increase of approximately 13.3%[7]. - Revenue increased by 13.4% from RMB 386.1 million in 2018 to RMB 437.7 million in 2019, primarily due to an increase in student enrollment and average tuition fees[46]. - Other income rose by 25.7% from RMB 91.8 million in 2018 to RMB 115.4 million in 2019, driven by increased campus utilization and higher earnings from the operation of Hongshan College[47]. - Gross profit increased by 13.4% from RMB 230.4 million in 2018 to RMB 261.2 million in 2019, in line with revenue growth[49]. - Operating profit for 2019 was RMB 274.6 million, compared to RMB 258.1 million in 2018, reflecting a growth of 6.4%[44]. - Adjusted net profit rose to RMB 296.0 million in 2019 from RMB 258.7 million in 2018, representing an increase of 14.4%[58]. Assets and Liabilities - The company's current assets totaled RMB 1,873.96 million in 2019, a decrease from RMB 1,935.22 million in 2018[8]. - The current ratio decreased from 6.1 in 2018 to 2.8 in 2019, indicating a decline in short-term financial health[9]. - The total equity increased from RMB 2,384.53 million in 2018 to RMB 2,618.28 million in 2019, showing a growth of approximately 9.8%[8]. - The net profit margin decreased from 66.3% in 2018 to 61.8% in 2019, indicating a decline in profitability[9]. - Net current assets decreased to RMB 1,198.6 million as of December 31, 2019, down from RMB 1,616.4 million in 2018, primarily due to capital investments in newly acquired schools[61]. - The company's cash and cash equivalents as of December 31, 2019, were RMB 1,383.0 million, down from RMB 1,861.7 million in 2018[71]. - The debt-to-asset ratio increased from 12% in 2018 to 21% in 2019, attributed to new bank loans[80]. Strategic Plans and Acquisitions - The company plans to expand its network of schools and increase student enrollment through mergers and acquisitions of quality undergraduate and vocational schools[14]. - The company aims to enhance the management level of its existing institutions and continue providing quality services to improve student competitiveness in the job market[14]. - The acquisition of Hongshan College was completed on April 29, 2019, with plans for a new campus supported by a land acquisition of approximately 950 acres[22]. - The company has agreed to acquire a 60% stake in Haiyuan College and Kunming Health School for a total consideration of RMB 918 million[23]. - The group aims to expand its school network and enrollment scale by leveraging favorable policies and pursuing mergers and acquisitions of quality educational institutions[38]. - The group added 14 new undergraduate programs, including preschool education and big data management, enhancing its academic offerings[32]. Governance and Leadership - The company has a strong leadership team with diverse backgrounds in finance, education, and strategic management, enhancing its operational capabilities[125]. - The management team includes professionals with significant experience in both domestic and international markets, which supports the company's growth strategy[125]. - The company is committed to maintaining high standards of corporate governance through its experienced board of directors[116]. - The independent directors bring valuable insights and governance to the company's strategic direction[116]. Risk Management - The company faces operational risks related to the private education sector's market conditions, regulatory changes, and competition from other educational institutions[143]. - The company has implemented risk management measures to ensure sufficient liquidity to meet financial obligations[146]. - The company is closely monitoring the developments of the revised draft of the Private Education Promotion Law and the Foreign Investment Law, which have not yet impacted its operations as of the report date[93][94]. Dividend Policy - The company reported a final dividend of HKD 0.0553 per share for the year ended December 31, 2019, compared to HKD 0.0559 per share in 2018[138]. - The company has established a dividend policy that allows the board to decide on dividend distribution based on financial performance, working capital needs, and future plans[136]. Employee Relations - The group has maintained good relationships with employees, suppliers, and customers, with no significant disputes reported during the reporting period[156]. - The company had approximately 1,621 employees as of December 31, 2019, with no significant labor disputes reported during the reporting period[89].

China Xinhua Edu cation Group Limit e d 中國新華教育集團有限公司 CHINA XINHUA EDUCATION GROUP LIMITED 中國新華教育集團有限公司 Interim Report 2019 中期報告 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號 : 02779 | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|----------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Interim | | | | | | | Report | | | | | | | 2019 | | | | | | | 中期報告 | | 目錄 公司資料 2 摘要 3 管理層討論與分析 4 其 ...