扎根粤港澳，推进合规化 52周内股价走势图 请务必阅读正文之后的免责条款部分 | --- | --- | |-----------------------------------------------------------|------------------------------------------------------------------| | | | | 图 1 ：卓越教育集团发展沿革一览 | ...................................................... | | 图 2 ：公司 23H1 营收为 1.89 亿元 | /-30%.............................................. | | 图 3 ：公司 23H1 毛利润为 0.7 亿元，毛利率 | 37%............................... | | 图 4 ：公司 23H1 全日制复习占比 | 55%................................................ | | 图 5 ：各项目业务增 ...

智通财经APP获悉，卓越教育集团(03978)再涨超18%，1月24日至今累计涨幅超2倍。截至发稿，涨10.57%，报2.93港元，成交额3082.97万港元。 消息面上，2月8日，教育部发布《校外培训管理条例（征求意见稿）》。方正证券指出，K12方面，双减期间供给大幅收缩，且新供给进入门槛较双减前更高，旺盛需求下龙头有望充分受益，中长期看市占率有望超双减前。 天风教育则指出，卓越教育集团为华南地区最大及全国第五大K12课外教育服务提供商。双减后积极响应政策号召，全面推进素质教育课程，伴随业务逐步调整、运营成熟，网点逐步扩张，市场份额有望提升。 ...

Investment Rating - The report initiates coverage with a "Buy" rating for the company, projecting a relative return of over 20% within the next six months [19][33][47]. Core Insights - The company is positioned as the largest extracurricular education service provider in South China and the fifth largest nationwide, focusing on K12 personalized education services. It aims to diversify its business layout and actively respond to policy changes by promoting quality education courses [29][40][75]. - The report anticipates revenue growth for the company, projecting revenues of 4.72 billion, 6.84 billion, and 9.92 billion RMB for the years 2023 to 2025, with corresponding net profits of 0.5 billion, 1.2 billion, and 2.3 billion RMB [19][33]. - The personalized education sector is expected to have significant growth potential, driven by strong future demand and a favorable policy environment [3][31][32]. Summary by Sections Revenue and Profitability - In the first half of 2023, the company reported a net profit of 0.17 billion RMB, a year-on-year increase of 4730.7%, with a net profit margin of 10.55% and a gross profit margin of 36.95% [30][63]. - The revenue from tutoring services in 2022 was 2.45 billion RMB, with a decline of 55.6% in the first half of 2023 compared to the previous year [2][43]. Market Trends - The education market in China is steadily expanding, with the K12 education sector accounting for a significant portion of the overall market. The market size for quality education is projected to exceed 4.787 trillion RMB in 2023 [44][67]. - The report highlights a shift in the education landscape due to the exit of smaller, less qualified institutions, which creates opportunities for leading companies to increase their market share [32][44]. Business Strategy - The company is actively exploring new business avenues, including full-time education, vocational training, and quality education, while leveraging technology to enhance its educational offerings [45][29]. - The establishment of an "Innovation Division" aims to foster the development of new business lines and improve operational efficiency [16][45]. Future Outlook - The report projects a recovery in profitability and a gradual adjustment of business operations, with expectations for market share to continue increasing as the company expands its network [19][33]. - The anticipated earnings per share (EPS) for 2023, 2024, and 2025 are 0.06, 0.14, and 0.27 RMB, respectively, with price-to-earnings (PE) ratios of 41, 17, and 9 times [19][33].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 188.86 million, a decrease of 29.6% compared to RMB 268.45 million for the same period in 2022[14] - Gross profit for the same period was RMB 69.78 million, down 42.6% from RMB 121.67 million year-on-year[14] - Net profit increased significantly to RMB 20.15 million, representing a 263.3% increase from RMB 5.55 million in the previous year[14] - Adjusted net profit for the period was RMB 20.23 million, a 199.1% increase compared to RMB 6.77 million in the prior year[14] - Total revenue for the first half of 2023 was approximately RMB 188.9 million, a decrease of 29.6% compared to RMB 268.4 million in the same period of 2022[40] - Full-time review projects generated revenue of RMB 103.6 million, up 15.6% from RMB 89.6 million year-on-year[22] - Quality education revenue dropped by 43.7% to RMB 28.0 million from RMB 49.8 million in the previous year[22] - Tutoring projects saw a significant decline of 55.6%, with revenue falling to RMB 57.3 million from RMB 129.0 million[22] - The group's revenue from various educational services decreased to RMB 119.1 million, down 18.9% from RMB 146.8 million in the first half of 2022[60] - Gross profit fell to RMB 69.8 million, a decline of 42.6% from RMB 121.7 million in the first half of 2022, resulting in a gross margin of 36.9% compared to 45.3% previously[61] - The group's profit increased by 263.3% to RMB 20.2 million from RMB 5.5 million in the first half of 2022[65] - Adjusted net profit rose by 199.1% to RMB 20.2 million from RMB 6.8 million in the first half of 2022[66] Strategic Initiatives - The company has established a new educational framework combining quality education, vocational education, and full-time education in response to the "double reduction policy" impacting the education sector[5] - The company is focusing on the core strategic system of "full-time review + quality education + vocational education" to explore new business opportunities in the quality and vocational education sectors[52] - The establishment of the "Innovation Division" aims to enhance organizational agility and promote the incubation and development of innovative businesses[31] - The company is actively responding to national policies to deepen its layout in quality education and enhance the core competencies of primary and secondary school students[34] - The group has formed comprehensive strategic partnerships with vocational colleges to tailor closed management courses for students[20] - The company plans to leverage technology to empower precise teaching systems, optimizing teaching models to ensure high-quality educational content delivery[33] - Future plans include expanding cooperation with more primary and secondary schools to innovate and provide valuable products and services[78] - The group will focus on vocational education product exploration and open vocational certificate training courses, leveraging its advantages in Guangdong Province[80] Cost Management - Income tax expenses decreased by 72.6% to RMB 3.1 million from RMB 11.3 million in the first half of 2022[24] - Total sales expenses significantly decreased by approximately 77.1% to RMB 7.0 million from RMB 30.5 million in the first half of 2022[62] - Administrative expenses were approximately RMB 28.6 million, a reduction of 35.5% from RMB 44.4 million in the first half of 2022[63] - Other operating expenses for the reporting period were RMB 14.3 million, a decrease of approximately 65.5% compared to RMB 41.3 million in the first half of 2022[89] - Financing costs amounted to approximately RMB 4.6 million, down 41.0% from RMB 7.7 million in the first half of 2022[90] Cash and Investments - As of June 30, 2023, the current ratio was approximately 1.29, slightly down from 1.30 on December 31, 2022[69] - As of June 30, 2023, the group's bank balances and cash totaled RMB 164.5 million[94] - The group's leverage ratio was 50% as of June 30, 2023, a decrease from 53% on December 31, 2022[95] - The group held financial assets including debt investments of RMB 80.1 million and equity investments of RMB 48.9 million as of June 30, 2023[97] - The company adopts a prudent investment strategy, focusing on low-risk short-term financial products to ensure stable investment income while maintaining sufficient operating capital for business needs[122] - The total cash and restricted cash combined was RMB 183,577,000 as of June 30, 2023, down from RMB 203,183,000 as of December 31, 2022, indicating a decrease of about 9.7%[175] - Restricted bank deposits increased to RMB 19,040,000 as of June 30, 2023, compared to RMB 8,099,000 as of December 31, 2022, reflecting an increase of approximately 134.0%[175] Corporate Governance - The company emphasizes the importance of good corporate governance to enhance management and protect shareholder interests[128] - The audit committee has reviewed the unaudited interim financial information and believes the company has complied with all applicable accounting standards and requirements[132] - The company has confirmed compliance with the corporate governance code and has no knowledge of any non-compliance by senior management during the reporting period[130] - The company has adopted the corporate governance code as part of its governance practices[128] Shareholder Information - Major shareholders include Mr. Tang Junjing, holding 459,098,231 shares, representing approximately 54.19% of the issued shares[135] - The company aims to attract and retain skilled personnel through its restricted share unit plan, which is designed to reward contributions to the group's future development[199] Legal and Regulatory Compliance - The company has confirmed that its structural contracts remain unchanged despite related transactions to comply with regulatory requirements[119] - As of June 30, 2023, the company had no undisclosed significant contingent liabilities, guarantees, or lawsuits against it[123] - The company has committed to disclosing any significant adverse impacts from foreign investment law updates as they arise[197] Employee and Operational Insights - The company provides regular training to employees and teachers to keep them updated on market and student needs[126] - The company reported employee benefits and salaries payable of RMB 39,114,000 as of June 30, 2023, compared to RMB 41,611,000 as of December 31, 2022, reflecting a decrease of 6%[187] - Rental expenses from the final controlling party amounted to RMB 791,000 for the six months ended June 30, 2023, up from RMB 234,000 in the same period of 2022, indicating a growth of 237%[190] Related Party Transactions - The total liabilities to related parties decreased from RMB 737,000 as of December 31, 2022, to RMB 227,000 as of June 30, 2023, showing a reduction of 69%[179] - The company reported a total of RMB 4,884,000 in receivables from related parties as of June 30, 2023, unchanged from the previous period[179] - The company reported a total of RMB 90,559,000 in other payables as of June 30, 2023, compared to RMB 93,455,000 as of December 31, 2022, indicating a slight decrease of 3%[187]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 188,860 thousand, a decrease of 29.6% compared to RMB 268,445 thousand in the same period of 2022[2]. - Gross profit for the same period was RMB 69,780 thousand, down 42.6% from RMB 121,671 thousand year-on-year[2]. - Net profit increased significantly to RMB 20,152 thousand, representing a 263.3% increase from RMB 5,547 thousand in the prior year[2]. - Adjusted net profit for the six months was RMB 20,234 thousand, a rise of 199.1% compared to RMB 6,766 thousand in the previous year[2]. - Total comprehensive income for the period was RMB 20,152 thousand, compared to RMB 5,547 thousand in the same period last year[16]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were RMB 2.78 cents, up from RMB 0.7 cents in the prior year[14]. - The profit used to calculate basic and diluted earnings for the period is RMB 20,917,000, compared to RMB 5,232,000 in the previous year, indicating strong growth[67]. - The group's gross profit decreased by 42.6% from RMB 121.7 million in the first half of 2022 to RMB 69.8 million during the reporting period, with a gross margin of 36.9% compared to 45.3% in the previous period[89]. - The adjusted net profit increased by 199.1% from RMB 6.8 million in the first half of 2022 to RMB 20.2 million during the reporting period[124]. - The income tax expense for the reporting period was RMB 3.1 million, a decrease of 72.6% from RMB 11.3 million in the first half of 2022[121]. Assets and Liabilities - Non-current assets as of June 30, 2023, totaled RMB 457,066 thousand, slightly up from RMB 455,119 thousand as of December 31, 2022[7]. - Current assets decreased to RMB 407,657 thousand from RMB 414,563 thousand at the end of the previous year[7]. - The company's net assets increased to RMB 428,149 thousand from RMB 405,890 thousand as of December 31, 2022[18]. - The group's bank balance and cash amounted to RMB 164.5 million as of June 30, 2023[126]. - The group's leverage ratio decreased to 50% as of June 30, 2023, down from 53% on December 31, 2022[100]. - The group has no bank loans or other borrowings as of June 30, 2023, compared to RMB 95.5 million as of June 30, 2022[142]. Revenue Breakdown - Revenue from full-time review projects was RMB 103,573,000, up from RMB 89,611,000 in 2022, indicating an increase of about 15.5%[24]. - Revenue from quality education decreased by 43.7% to RMB 28,025 thousand, down from RMB 49,822 thousand in the previous year[87]. - Revenue from tutoring projects fell by 55.6% to RMB 57,262 thousand, compared to RMB 129,012 thousand in the same period last year[87]. - The group's revenue from tutoring services declined by 29.6% from RMB 268.4 million in the first half of 2022 to approximately RMB 188.9 million during the reporting period due to business adjustments[115]. Expenses and Cost Management - The company reported a significant reduction in administrative expenses, which fell to RMB 28,640 thousand from RMB 44,397 thousand year-on-year[14]. - The total employee costs for the period were RMB 84,749,000, down from RMB 148,980,000 in 2022, a reduction of about 43.1%[27]. - Research and development costs recognized as expenses amounted to RMB 12,673,000, significantly lower than RMB 35,315,000 in the previous year, a decrease of approximately 64.0%[27]. - The group's total operating expenses decreased by approximately 65.5% to RMB 14.3 million from RMB 41.3 million in the first half of 2022[93]. - The group's sales expenses decreased by approximately 77.1% to RMB 7.0 million from RMB 30.5 million in the first half of 2022[118]. - Financing costs amounted to approximately RMB 4.6 million, a decrease of 41.0% from RMB 7.7 million in the first half of 2022[156]. Strategic Initiatives - The company operates primarily in the education sector, providing various educational programs including full-time review and quality education services[37]. - The company has established comprehensive strategic partnerships with vocational schools, focusing on tailored educational programs to enhance student learning efficiency[57]. - The group aims to accelerate the development of a second growth curve by exploring new business opportunities in quality education and vocational training[59]. - The company plans to strengthen cooperation with more primary and secondary schools to provide valuable after-school quality courses[61]. - The company is committed to leveraging technology to optimize its teaching systems and improve student learning experiences[76]. - The company intends to explore vocational education products, capitalizing on its resources and research experience in the field[84]. - The importance of vocational education has been emphasized by national policies, indicating potential market growth in this sector[164]. Corporate Governance and Future Outlook - The company has applied new International Financial Reporting Standards starting January 1, 2023, with no significant impact on the financial statements[22]. - The company continues to expect sufficient resources to operate as a going concern in the foreseeable future[38]. - The group has established an "Innovation Division" to enhance organizational agility and promote the incubation and development of innovative businesses[163]. - The group is actively participating in community service initiatives, demonstrating its commitment to social responsibility and educational equity[58]. - The board has resolved not to declare an interim dividend for the six months ended June 30, 2023[144]. - The company has not declared any dividends for the reporting period, as decided by the board[66].

Financial Performance - The total revenue for the year ended December 31, 2022, was RMB 491.134 million, a decrease of 74.1% compared to RMB 1,898.627 million in 2021[139]. - Gross profit for the same period was RMB 173.061 million, down 76.3% from RMB 729.347 million in the previous year[139]. - The net profit for 2022 was RMB 54.073 million, a significant improvement from a loss of RMB 325.593 million in 2021, representing a 116.6% increase[139]. - The adjusted net profit for the year was RMB 54.799 million, compared to a loss of RMB 331.507 million in 2021, marking a 116.5% improvement[139]. - Other income decreased by 29.7% to RMB 56.0 million during the reporting period[172]. - Administrative expenses totaled approximately RMB 88.7 million during the reporting period, a decrease of 60.2% compared to RMB 223.0 million in 2021[189]. - The leverage ratio improved to 0.53 as of December 31, 2022, down from 0.73 on December 31, 2021[186]. - The current ratio improved to approximately 1.30 as of December 31, 2022, up from 0.94 on December 31, 2021[198]. Business Risks and Challenges - The company faces risks related to the concentration of its business in Guangzhou, which may impact its operational performance[24]. - The company relies on a dedicated teaching staff, and failure to recruit and retain qualified teachers may adversely affect its brand and operational performance[23]. - The company is subject to regulatory changes in the education sector, as outlined in the guidelines issued by the Ministry of Education[9]. - The company must ensure compliance with applicable laws and regulations when granting Restricted Share Units[85]. - The company ceased its subject-based training services for compulsory education since January 2022 due to regulatory policies, significantly impacting its original business and revenue[118]. - The company will continue to monitor the regulatory environment and adjust its business plans accordingly[118]. Strategic Initiatives - The company has focused on optimizing its educational offerings, achieving significant breakthroughs in quality education products, with several programs recognized as non-subject products by the Ministry of Education[133]. - The company is actively expanding its full-time business segment and opening new campuses within the Guangdong province[140]. - The strategic focus has shifted towards the Greater Bay Area, leveraging accumulated resources to explore new growth avenues[140]. - The company is enhancing its brand image and operational efficiency through the implementation of a precise teaching system and technology-driven educational services[140]. - The group aims to create an integrated learning environment to support children's healthy growth and development[142]. - The group is accelerating the development of its second growth curve, focusing on a core strategic system of "full-time review + quality education + vocational education" to provide comprehensive teaching services[150]. - The group aims to expand its full-time review business and explore new markets nationwide, leveraging technology to optimize teaching models and enhance service quality[151]. - The group plans to create a one-stop quality education base, integrating diverse quality education products to enhance student interest and provide more choices[153]. - The group is committed to building a comfortable self-study environment for students, promoting good learning habits and improving learning soft skills[157]. Shareholder and Governance Information - The board consists of nine directors, including three executive directors and four independent non-executive directors[48]. - The group has not engaged in any significant transactions with controlling shareholders during the reporting period[60]. - The group has not issued any dividends during the reporting period and will continuously review its policy on dividend distribution[40]. - The board did not propose any dividends during the reporting period[119]. - The company’s directors and CEO hold significant equity interests, with Mr. Tang Junjing owning 459,098,231 shares, representing 54.19% of the issued share capital[108]. Investment and Financial Assets - As of December 31, 2022, the group held financial assets including debt investments of RMB 104.2 million, which accounted for 12.0% of total assets[190]. - The group's equity investments amounted to RMB 59.8 million, representing 6.9% of total assets as of December 31, 2022[190]. - The group's cash and bank balances were RMB 195.1 million as of December 31, 2022[197]. - The group has no plans for major investments or capital assets as of the report date[199]. - The group adopts a prudent investment strategy for significant investments, focusing on low-risk short-term financial products to ensure stable investment income[200]. Employee Incentives - The group has adopted a restricted share unit plan and stock option plan as incentives for directors and eligible employees[65]. - The stock options plan aims to attract and retain employees and directors by providing compensation linked to the group's development and profitability[80]. - The maximum number of shares that may be issued upon exercise of stock options under the plan is 84,804,000 shares, representing approximately 10% of the total shares issued as of the listing date and the report date[93]. - No stock options were granted, exercised, canceled, or revoked during the reporting period, and there were no unexercised stock options as of December 31, 2022[105]. - The plan allows for the issuance of shares based on the performance and contributions of selected participants[87]. - The board has discretion in determining the vesting criteria, conditions, and timelines for the Restricted Share Units[87].

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 491,134 thousand, a decrease of 74.1% compared to RMB 1,898,627 thousand in 2021[11]. - Gross profit for the same period was RMB 173,061 thousand, down 76.3% from RMB 729,347 thousand in 2021[11]. - Net profit for the year was RMB 54,073 thousand, a significant improvement of 116.6% from a loss of RMB 325,593 thousand in 2021[11]. - Adjusted net profit was RMB 54,799 thousand, also showing a 116.5% increase from a loss of RMB 331,507 thousand in the previous year[11]. - Basic earnings per share for 2022 was RMB 7.48, compared to a loss of RMB 43.2 in 2021[13]. - Total revenue for the company in 2022 was RMB 491,134 thousand, a significant decrease from RMB 1,898,627 thousand in 2021[49]. - The group recorded a profit of approximately RMB 54.1 million in the reporting period, a significant increase of 116.6% compared to a loss of RMB 325.6 million in 2021[148]. - The group's adjusted net profit increased by 116.5% from RMB -331.5 million in 2021 to RMB 54.8 million during the reporting period[172]. Assets and Liabilities - Current liabilities decreased from RMB 149,685 thousand in 2021 to RMB 93,455 thousand in 2022[10]. - Total assets less current liabilities increased from RMB 500,826 thousand in 2021 to RMB 550,816 thousand in 2022[10]. - The company reported a net asset value of RMB 405,890 thousand as of December 31, 2022, up from RMB 350,604 thousand in 2021[17]. - Non-current assets totaled RMB 455,119 thousand as of December 31, 2022, down from RMB 546,689 thousand in 2021[35]. - The company’s lease liabilities were RMB 144,926 thousand as of December 31, 2022, compared to RMB 150,222 thousand in 2021[36]. - The company’s debt decreased from RMB 316,047,000 in 2021 to RMB 46,058,000 in 2022, indicating a substantial reduction in liabilities[69]. - The group's current ratio improved to approximately 1.30 as of December 31, 2022, up from 0.94 on December 31, 2021[152]. - The leverage ratio decreased to 0.53 as of December 31, 2022, down from 0.73 in 2021[176]. Revenue Sources - Revenue from full-time review programs was RMB 163,520 thousand in 2022, slightly up from RMB 161,639 thousand in 2021[49]. - Revenue from quality education reached RMB 81,502 thousand in 2022, compared to RMB 73,956 thousand in 2021[49]. - The company achieved a revenue of RMB 95,138,000 from tutoring projects for the year ended December 31, 2022, while the revenue from tutoring projects for 2021 was RMB 747,193,000[77]. - Full-time review revenue increased by 1.2% to RMB 163.5 million, while tutoring project revenue decreased by 85.2% to RMB 245.4 million[112]. Operational Changes - The company ceased providing academic courses to K-9 students at the end of 2021 due to regulatory changes and shifted focus to full-time review courses and quality education[25]. - The company is focusing on vocational education and has established strategic partnerships with vocational schools to enhance educational offerings[131]. - The company aims to expand its full-day education business and enhance its development momentum[1]. - The company plans to deepen its quality education layout and establish a one-stop quality education base[1]. - The company will explore vocational education and strengthen strategic partnerships with private colleges and vocational schools[1]. - The company is expanding its full-time business segment by opening new campuses in Guangdong Province[130]. - The company is exploring new growth avenues in the Greater Bay Area to mitigate the impact of the "double reduction" policy and COVID-19[129]. Cost Management - The company reported a loss of RMB 191,586,000 in employee costs for 2022, down from RMB 747,143,000 in 2021, reflecting a reduction in operational expenses[56]. - Total employee costs amounted to RMB 270,488,000, a significant increase from RMB 944,977,000 in the previous year[1]. - Research and development costs recognized as expenses totaled RMB 55,725,000, compared to RMB 142,310,000 last year[1]. - Administrative expenses decreased by 60.2% to approximately RMB 88.7 million from RMB 223 million in 2021[119]. - Other operating expenses decreased by 57.1% to RMB 70.2 million during the reporting period[147]. - Total sales expenses decreased by approximately 82.1% from RMB 181 million in 2021 to RMB 32.4 million[167]. Corporate Governance - The board of directors consists of eight members, with three being independent non-executive directors, meeting the requirements of listing rules[195]. - The remuneration committee has three members, with two being independent non-executive directors, thus complying with the relevant listing rules[199]. - The company has confirmed compliance with the corporate governance code during the reporting period[190]. - The board will continue to review and monitor the company's practices to maintain high corporate governance standards[198]. - The company has not been made aware of any non-compliance by senior management during the reporting period[190]. - The independent non-executive director, Mr. Gan Jun, was appointed on September 23, 2022, and serves as the chairman of the audit committee[199]. Recognition and Community Engagement - The company has received various recognitions for its contributions during the pandemic, enhancing its brand reputation[1]. - The company has implemented a community-centered model to enhance its influence and provide diverse educational options for students[135]. - The company has successfully launched several non-academic products, including programming and literary courses, which have received high recognition from society and students[75]. - The company has implemented a new learning space to support self-study and improve students' learning habits[1].

Investment Valuation and Impairment - The fair value change of investments measured at fair value through profit or loss decreased by approximately RMB 237 million to about RMB -144.4 million, primarily due to overdue redemptions and a decline in the price of listed shares [2]. - The company recorded a financial asset impairment loss of approximately RMB 100.3 million, mainly due to deteriorating credit conditions and increased credit risk from certain debtors [8]. - The fair value of listed equity investments decreased by RMB 34.3 million, as the closing price of shares dropped from HKD 5.40 to HKD 3.21 per share [7]. - The expected credit loss rate for certain projects was assessed at 100%, indicating a high likelihood of default and low recovery prospects [6]. - The fair value of the 2nd and 14th projects showed significant losses, with fair value changes of RMB -83.118 million and RMB -39.306 million respectively [4]. - The company has reported a loss of RMB 6.882 million and RMB 5.387 million for the fair value changes of the 2nd and 14th projects as of December 31, 2021 [4]. - The company has recognized impairment losses based on an evaluation report, considering industry policy changes and the financial status of the counterparty [12]. Legal Actions and Recovery Efforts - The company has initiated legal actions and arbitration against counterparties for non-fulfillment of payment obligations, with a first-instance victory confirmed [4]. - The total amount of principal and interest recovered from certain projects after December 31, 2021, was approximately RMB 33 million [10]. - The company is actively pursuing the recovery of investments and has signed extension agreements with issuers due to liquidity issues and construction delays [10]. - The company is in discussions with external legal advisors to mitigate credit risk and recover overdue amounts [4]. Financial Results Adjustments - The unaudited financial results showed a sales cost of RMB (1,169,280) thousand, which was adjusted to RMB (1,187,750) thousand in the audited results, reflecting a difference of RMB 18,470 thousand [18]. - Research and development expenses were reported at RMB (142,310) thousand in the unaudited results, adjusted to RMB (146,909) thousand in the audited results, indicating a difference of RMB 4,599 thousand [18]. - The company reported a loss of RMB (140,178) thousand from the impairment of intangible assets, which was not recorded in the unaudited results [18]. - The company’s investment in associates was valued at RMB 17,492 thousand in the audited results, down from RMB 20,318 thousand in the unaudited results, showing a decrease of RMB 2,826 thousand [20]. - The deferred tax assets were reported at RMB 35,080 thousand in the audited results, down from RMB 60,187 thousand in the unaudited results, reflecting a decrease of RMB 25,107 thousand [20]. - The company’s cash and cash equivalents were reported at RMB 211,180 thousand in the audited results, slightly down from RMB 213,845 thousand in the unaudited results, a decrease of RMB 2,665 thousand [20]. - The adjustments in financial results were influenced by the severe pandemic impact in Guangzhou, leading to lower operational performance and financial conditions than expected [20]. Management and Governance - The executive director team includes Mr. Tang Junjing, Mr. Tang Junying, Mr. Zhou Gui, and Ms. Zhao Weiying [29]. - The board of directors is chaired by Mr. Tang Junjing, who also serves as the CEO and executive director [29]. - The announcement date is September 27, 2022 [29].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 268,445 thousand, a decrease of 75.5% compared to RMB 1,096,355 thousand in the same period of 2021[10]. - Gross profit for the same period was RMB 121,671 thousand, down 71.2% from RMB 421,925 thousand year-on-year[10]. - Net profit increased significantly to RMB 5,547 thousand, representing a 294.0% increase from RMB 1,408 thousand in the previous year[10]. - Adjusted net profit for the period was RMB 6,766 thousand, a 92.1% increase compared to RMB 3,522 thousand in the prior year[10]. - The group's revenue decreased by 75.5% from RMB 1,096.4 million in the first half of 2021 to approximately RMB 268.4 million in the reporting period[35]. - The group's gross profit fell by 71.2% from RMB 421.9 million in the first half of 2021 to RMB 121.7 million in the reporting period, with a gross margin of 45.3%[40]. - Other income and gains decreased by 80.5% to RMB 10.1 million, primarily from interest income and government subsidies[41]. - The group recorded a profit of RMB 5.5 million, an increase of 294.0% from RMB 1.4 million in the first half of 2021, mainly due to a lower comparative base from impairment provisions[52]. - The sales expenses decreased by approximately 75.5% to RMB 30.5 million from RMB 124.5 million in the first half of 2021[44]. - Administrative expenses decreased by 62% to approximately RMB 44.4 million compared to RMB 116.8 million in the first half of 2021[45]. - Adjusted net profit increased by 92.1% from RMB 35 million in the first half of 2021 to RMB 68 million in the reporting period[56]. - Reported profit for the six months ended June 30, 2022, was RMB 55.47 million, a 294.0% increase compared to RMB 14.08 million in the same period of 2021[56]. Strategic Initiatives - The company is focusing on the Greater Bay Area and exploring new growth avenues to mitigate the impacts of the "double reduction policy" and COVID-19[12]. - The company is expanding its full-time business segment by opening new campuses within the province, leveraging existing brand advantages to attract students[12]. - The company is enhancing its quality education offerings by upgrading various educational products to meet comprehensive growth needs of students[12]. - The company aims to combine rich teaching experience with scientific teaching systems to improve the quality of precision teaching services[12]. - The company has received positive market feedback and recognition for its strategic adjustments and new initiatives[12]. - The company is committed to establishing a reliable brand image and achieving sustainable development through effective educational services[12]. - The group collaborated with 48 primary and secondary schools in Guangzhou to provide over 50 quality education products, enhancing student experience and gaining school recognition[13]. - The group launched the "Excellence 3+ Certificate Vocational College Entrance Exam Class," utilizing small class teaching and a closed-loop teaching strategy to ensure high-quality learning for vocational school students[16]. - The group is actively transforming towards vocational education, establishing strategic partnerships with vocational colleges to tailor courses that enhance students' professional skills and cultural literacy[16]. - The group aims to accelerate the development of a "full-time review + quality education + vocational education" core strategic system, promoting diversified educational services for comprehensive student development[18]. - The group plans to expand its full-time review business and explore new markets nationwide, leveraging technology to optimize teaching models and meet student needs[21]. - The group is enhancing its quality education layout by upgrading existing products and establishing a comprehensive development education system that includes moral, intellectual, physical, aesthetic, and labor education[22]. - The group is committed to community-centered quality education, reorganizing diversified products to discover students' interests through hands-on experiences[23]. - The group is exploring vocational education opportunities and expanding overseas, aligning with national policies that emphasize the importance of vocational education[27]. Financial Position - As of June 30, 2022, the group's cash and cash equivalents amounted to RMB 310.4 million[57]. - Current ratio improved to approximately 1.3 as of June 30, 2022, up from 0.9 on December 31, 2021[58]. - Leverage ratio decreased to 59.8% as of June 30, 2022, compared to 73.4% on December 31, 2021[58]. - Financial assets decreased, with debt investments at RMB 117.1 million as of June 30, 2022, down from RMB 577.3 million on December 31, 2021[62]. - The group had no significant investments or capital asset plans as of the mid-term report date[59]. - The group employed 2,431 staff as of June 30, 2022, down from 3,043 on December 31, 2021[71]. - No interim dividend was declared for the six months ended June 30, 2022[72]. - The group has no recorded significant contingent liabilities or guarantees as of June 30, 2022[65]. - The company’s total liabilities as of June 30, 2022, were not specified in the provided documents, indicating a need for further financial analysis[149]. - Total non-current assets decreased to RMB 318,111,000 from RMB 546,689,000 as of December 31, 2021, representing a decline of approximately 42%[150]. - Current assets totaled RMB 571,913,000, down from RMB 771,963,000, indicating a decrease of about 26%[150]. - The net current assets improved to RMB 134,735,000 compared to a negative RMB 45,863,000 in the previous period[153]. - Total liabilities decreased to RMB 532,164,000 from RMB 817,826,000, reflecting a reduction of approximately 35%[150]. - The company's net assets increased to RMB 357,860,000 from RMB 350,604,000, showing a growth of about 2%[153]. - Cash and cash equivalents rose significantly to RMB 310,437,000 from RMB 211,180,000, marking an increase of approximately 47%[150]. - The company reported a decrease in lease liabilities from RMB 150,222,000 to RMB 94,986,000, a reduction of about 37%[153]. - The total equity attributable to the owners of the parent company was RMB 357,301,000, slightly up from RMB 350,704,000, indicating a growth of around 2%[153]. - The company’s short-term debt investments at fair value decreased to RMB 57,060,000 from RMB 245,989,000, a decline of approximately 77%[150]. - The company’s total assets less current liabilities stood at RMB 452,846,000, down from RMB 500,826,000, reflecting a decrease of about 10%[153]. Corporate Governance - The company is committed to maintaining high corporate governance standards as part of its operational review[77]. - The company has confirmed compliance with the standard code of conduct for securities trading by all directors during the reporting period[81]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, ensuring that all directors and senior management comply with it[81]. - The company has not reported any changes in the board of directors or senior management that require disclosure since the date of the 2021 annual report[84]. - The audit committee currently consists of Ms. Long Yu and Mr. Xu Wenhui, following the resignation of Mr. Xue Peng as chairman[83]. - The company is actively seeking suitable candidates to fill the vacancy left by Mr. Xue Peng, who resigned as an independent non-executive director and chairman of the audit committee on July 4, 2022, to comply with listing rules[78]. - There were no buybacks or redemptions of the company's listed securities during the reporting period, except for shares purchased under the restricted share unit plan[82]. - The company has not incurred any disclosure obligations under listing rules 13.20, 13.21, and 13.22[85]. - As of June 30, 2022, there are no known changes in the shareholdings of directors or senior management that require disclosure under the Securities and Futures Ordinance[96]. - The company has a significant ownership structure, with Huang Yanjun holding 459,098,231 shares, representing 54.19% of the issued share capital[98]. - Elite Education Investment Co. Ltd. holds 457,775,231 shares, accounting for 54.03% of the total shares[98]. - The company has implemented a restricted share unit plan, retaining 27,292,396 existing shares and issuing 43,540,000 new shares to Soarise Bulex Limited[104]. - As of June 30, 2022, JTC Trustees (BVI) Limited holds 456,934,231 shares, which is 53.93% of the issued shares[98]. - Soarise Bulex Limited holds 109,709,397 shares, representing 12.95% of the total shares[98]. - The overall ownership structure indicates a strong control by key stakeholders, ensuring strategic alignment in decision-making[98]. Compliance and Regulatory Matters - The company has divested its K-12 after-school education business in compliance with the "double reduction" policy, maintaining its structural contracts[107]. - The exclusive management consulting and business cooperation agreement allows the foreign-invested enterprise to provide services to its Chinese operating entities[110]. - The company has established exclusive purchase option agreements to secure its interests in the Chinese market[112]. - The structural contracts are legally binding and enforceable under Chinese laws, ensuring compliance with relevant regulations without requiring government approval for their establishment and execution[128]. - The company has implemented measures to ensure compliance with structural contracts, including annual reviews by the board and disclosures in interim and annual reports[130]. - There have been no amendments or terminations to the structural contracts since their signing, and they will remain in effect unless there are significant changes in the regulatory environment[134]. - The company is subject to foreign ownership restrictions in the K-12 education sector in China, necessitating the use of structural contracts for operations[129]. - The irrevocable power of attorney allows the foreign-invested enterprise to act as the sole agent for the registered shareholders, ensuring compliance with corporate governance requirements[120]. - Spousal commitments from registered shareholders' spouses ensure that they will not obstruct the execution of structural contracts[122]. - The company will disclose any significant adverse impacts from updates to foreign investment laws as they arise[132]. - The structural contracts are designed to mitigate risks associated with foreign investment restrictions in the Chinese market[130].

Financial Performance - Total revenue for the year ended December 31, 2021, increased by 12.5% to RMB 1,898.6 million compared to RMB 1,687.8 million in 2020[10] - Gross profit rose by 18.6% to RMB 729.3 million from RMB 615.2 million year-on-year[10] - Adjusted loss for the year was RMB 331.5 million, a decrease of 330.8% compared to an adjusted profit of RMB 143.7 million in 2020[10] - Revenue for the fiscal year reached $500 million, representing a 15% increase compared to the previous year[74] - The revenue from quality education increased by 43.5% to RMB 73.96 million in 2021, compared to RMB 51.55 million in 2020[27] - The revenue from tutoring projects rose by 12.8% to RMB 1,663.03 million in 2021, up from RMB 1,474.48 million in 2020[27] - The full-time preparation project revenue slightly decreased by 0.1% to RMB 161.64 million in 2021, compared to RMB 161.76 million in 2020[27] - The net profit dropped from RMB 127.8 million in 2020 to RMB -325.6 million during the reporting period, a decline of 354.8%[46] Business Challenges - The company faced significant impacts from the "double reduction policy" and the COVID-19 pandemic, affecting overall business operations[12] - The company faced significant adverse impacts on its original business and revenue due to the termination of compulsory education subject training services since January 2022, in compliance with the "double reduction" policy[99] - The company’s business and financial performance have been adversely affected by the pandemic and may continue to be impacted by natural disasters and other circumstances in China[99] - The company is exposed to regional concentration risk as its business is primarily concentrated in Guangzhou[99] - The company faces intense competition in the Chinese education industry, which may lead to price pressures and reduced profit margins[98] - The company’s ability to maintain and increase tuition fees is critical to its business and operational performance[99] Strategic Initiatives - The company aims to strengthen its position in the quality education sector in response to national policies[13] - The company launched eight new quality education products to enhance students' comprehensive development needs[13] - The company is focusing on integrating advanced technology into its teaching services, specifically through the "Smart Classroom" initiative[17] - The company plans to enhance its quality education offerings by collaborating with public schools to provide personalized quality courses and on-campus services[18] - The company is exploring vocational education opportunities, including training for domestic and international examinations, to meet market demands[22] - The company aims to provide diversified and comprehensive teaching services to promote students' overall development in line with national policies[24] - The company is committed to transforming challenges into opportunities for continuous growth[12] Employee and Operational Insights - The group had a total of 3,043 employees as of December 31, 2021, down from 7,097 employees in 2020 due to the impact of the "double reduction" policy[64] - The group provides regular training to employees to enhance their skills and knowledge, ensuring they are equipped to meet market and student demands[170] - The group is committed to regular reviews of compensation packages to attract and retain high-performing employees[170] Financial Management and Investments - Cash and cash equivalents amounted to RMB 211.2 million as of December 31, 2021[49] - Current ratio decreased to approximately 0.94 from 1.06 as of December 31, 2020[52] - The group held financial assets including debt investments of RMB 577.3 million, accounting for 43.8% of total assets[54] - The group also held equity investments of RMB 56.2 million, representing 4.3% of total assets as of December 31, 2021[54] - The board has maintained a prudent financial management approach, ensuring a healthy liquidity position during the reporting period[58] - The company has adopted a dividend policy since March 12, 2019, considering various factors before declaring dividends[105] Structural Contracts and Compliance - The group has established structural contracts to control its Chinese operating entities, ensuring economic benefits despite regulatory restrictions on foreign ownership in the K-12 education sector[174] - The exclusive management consulting and business cooperation agreement allows the foreign-invested enterprise to provide services to key Chinese operating entities, ensuring compliance with local regulations[178] - The exclusive purchase option agreements grant the foreign-invested enterprise the right to acquire equity interests in the group under permissible conditions, ensuring strategic control[180] - The equity pledge agreement secures the foreign-invested enterprise's interests by pledging all equity interests of the group as collateral[183] - The irrevocable power of attorney allows the foreign-invested enterprise to act as the sole agent for shareholders, facilitating governance and decision-making processes[184] - The structural contracts are legally binding and enforceable under Chinese law, with no need for government approval for their execution[191] Future Outlook - The management provided an optimistic outlook, projecting a 10% growth in revenue for the next fiscal year[74] - New product launches are expected to contribute an additional $50 million in revenue next year[74] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[74] - A strategic acquisition of a local competitor is anticipated to enhance service offerings and increase customer base by 20%[74] Shareholder Information - As of December 31, 2021, the company's distributable reserves amounted to RMB 321.7 million[115] - The company has no major shareholders or directors with beneficial interests exceeding 5% in any of the top five suppliers or customers during the review period[166] - The company’s top five customers accounted for less than 30% of total sales during the review period[166] - The company’s procurement from its top five suppliers also accounted for less than 30% of total procurement during the review period[167]