Revenue and Profitability - Revenue from school-related supply chain business decreased from RMB 623 million for the six months ended February 28, 2023, to RMB 529 million for the six months ended February 29, 2024[21]. - Gross profit declined by 29.9% from RMB 626 million for the six months ended February 28, 2023, to RMB 439 million for the six months ended February 29, 2024, with a slight decrease in gross margin from 55.3% to 55.1%[24]. - Core net profit decreased by RMB 24.3 million or 59.4% from RMB 409 million for the six months ended February 28, 2023, to RMB 166 million for the six months ended February 29, 2024, with core net profit margin dropping from 36.1% to 20.8%[29]. - The company reported a decrease in pre-tax profit from RMB 655 million for the six months ended February 28, 2023, to RMB 574 million for the six months ended February 29, 2024[27]. - For the six months ended February 29, 2024, the group's revenue was RMB 79,663 thousand, a decrease of 29.7% compared to RMB 113,294 thousand for the same period in 2023[64]. - The group's profit for the period was RMB 47,174 thousand, down 14.2% from RMB 54,975 thousand in the previous year[64]. - Core net profit for the period was RMB 16,598 thousand, representing a significant decline of 59.4% from RMB 40,920 thousand in the prior year[64]. - Basic earnings per share for the period were RMB 2.17, a decrease of 14.6% from RMB 2.54 in the same period last year[64]. - Total revenue for the six months ended February 29, 2024, decreased by 29.7% to RMB 79.7 million compared to RMB 113.3 million for the same period in 2023[86]. - Profit for the six months ended February 29, 2024, decreased by 14.2% to RMB 47.2 million from RMB 54.98 million in the same period of 2023[86]. Financial Position - As of February 29, 2024, the total amount of pledged bank deposits, cash, and cash equivalents was RMB 425.9 million, a decrease from RMB 534.4 million as of August 31, 2023[31]. - The group's net current assets as of February 29, 2024, were RMB 234.9 million, down from RMB 272.7 million as of August 31, 2023[32]. - The group had no outstanding bank borrowings as of February 29, 2024, maintaining a net borrowing balance of zero, consistent with August 31, 2023[33]. - The company reported a net cash position of RMB 130,364,000 as of February 29, 2024, down from RMB 242,226,000 as of August 31, 2023[111]. - The total amount of financial guarantees provided to affected entities decreased from RMB 4,300.8 million as of August 31, 2023, to RMB 4,118.1 million as of February 29, 2024[150]. - The company's financial guarantee contracts decreased from RMB 229,943,000 as of August 31, 2023, to RMB 200,663,000 as of February 29, 2024[111]. - Total assets less current liabilities amounted to RMB 551,145,000 as of February 29, 2024, compared to RMB 867,934,000 as of August 31, 2023[111]. - As of February 29, 2024, total bank borrowings amounted to RMB 290,098,000, with interest rates ranging from 2.5% to 7.5%[124]. Expenses and Income - The group's income tax expense decreased by 3.2% from RMB 10.6 million for the six months ended February 28, 2023, to RMB 10.2 million for the six months ended February 29, 2024[50]. - The actual tax rates for the six months ended February 29, 2024, and February 28, 2023, were 17.8% and 16.1%, respectively[50]. - Total employee compensation, including directors' remuneration, was approximately RMB 9.7 million for the six months ended February 29, 2024, compared to RMB 6.2 million for the same period in 2023[53]. - Administrative expenses for the period were RMB (16,006) thousand, compared to RMB (14,044) thousand in the previous year[67]. - The company's administrative expenses increased by 14.0% from RMB 14.0 million for the six months ended February 28, 2023, to RMB 16.0 million for the six months ended February 29, 2024, primarily due to increased employee costs[142]. - Financial income increased to RMB 14,906 thousand from RMB 4,635 thousand in the previous year[67]. - Financial income increased from RMB 4,600,000 for the six months ended February 28, 2023, to RMB 14,900,000 for the six months ended February 29, 2024, primarily due to increased interest income[119]. Business Strategy and Future Outlook - The company aims to continue providing high-quality educational services as a key supplement to standard curricula, focusing on comprehensive student development[19]. - The company has prepared to seize opportunities and respond to challenges in its comprehensive education services segment in the future[19]. - The company continues to adapt to market conditions and enhance its service offerings to maintain competitiveness in the education sector[19]. - The company aims to integrate resources to build an education service platform, focusing on comprehensive education management services and sales of educational materials[114]. - The company is exploring the possibility of restructuring a high school entity to regain control in compliance with applicable laws and regulations[85]. Cash Flow and Investments - As of February 29, 2024, the group's cash flow from investment activities included RMB 35.0 million in loans to third parties, RMB 15.0 million for the acquisition of a physical deposit, and cash inflow of RMB 12.1 million from repayments by affected entities[30]. - Cash and cash equivalents decreased by RMB 111.7 million as of February 29, 2024, primarily due to the activities mentioned above[96]. - The company utilized RMB 487.7 million of the net proceeds from the placement for various purposes, with a remaining balance of RMB 345.9 million as of February 29, 2024[133]. - The company had investments classified as financial assets measured at fair value through profit or loss totaling approximately RMB 119.6 million as of February 29, 2024[129]. Corporate Governance - The company is committed to achieving high standards of corporate governance to protect shareholder interests and enhance corporate value[160]. - The board consists of three executive directors and three independent non-executive directors[163]. - The interim report for the six months ending February 29, 2024, will be published on the Hong Kong Stock Exchange and the company's website[162].

Financial Performance - For the fiscal year 2023, the company reported a revenue of RMB 319.3 million, an increase from RMB 277.6 million in the previous fiscal year[31]. - The cost of revenue for 2023 was RMB 149.1 million, compared to RMB 124.2 million in 2022, indicating a rise in operational costs[31]. - Gross profit for the fiscal year 2023 was RMB 170.1 million, up from RMB 153.4 million in 2022, reflecting a growth of approximately 10.5%[31]. - The company recorded a profit before tax of RMB 189.0 million for 2023, a significant recovery from a loss of RMB 2.2 billion in the previous year[31]. - The net profit for fiscal year 2023 was RMB 163.1 million, while the core net profit rose by 6.0% to RMB 122.6 million[58]. - The profit for fiscal year 2023 was RMB 163.1 million, a significant increase of 71.5% from RMB 95.1 million in fiscal year 2022[68]. - Revenue from the school-related supply chain business increased by 25.4% to RMB 193.6 million, accounting for 60.6% of total revenue in fiscal year 2023[70][77]. - Revenue from comprehensive education services saw a slight increase of RMB 2.5 million or 2.0%, totaling RMB 125.7 million, which represents 39.4% of total revenue[73][70]. - Gross profit increased by 10.9% to RMB 170.1 million, with a gross margin of 53.3%, slightly down from 55.3% in fiscal year 2022[74]. - Administrative expenses decreased by 27.6% to RMB 30.3 million, primarily due to cost control efforts by management[83]. Customer and Supplier Concentration - The top five customers accounted for 30.2% of the group's revenue in FY2023, a decrease from 43.6% in FY2022, with the largest customer contributing approximately 24.6%[11]. - The top five suppliers represented 26.6% of the group's cost of revenue in FY2023, down from 28.7% in FY2022, with the largest supplier accounting for about 9.2%[11]. Compliance and Governance - The group confirmed compliance with relevant listing rules throughout FY2023, despite the impact of the implementation regulations on past contractual arrangements[6]. - The independent non-executive directors confirmed the group's adherence to listing rules in FY2023[6]. - The group has maintained compliance with disclosure requirements under Chapter 14A of the listing rules throughout FY2023[9]. - The company has faced various compliance issues in the past, which are disclosed in the prospectus[170]. - The company’s board of directors includes both executive and independent non-executive members, ensuring governance and oversight[183]. Employee and Compensation - As of August 31, 2023, the company had approximately 151 employees, with employee costs for the fiscal year amounting to RMB 15.2 million, down from RMB 40.8 million in the previous year[23]. - Total employee compensation for the fiscal year 2023 is approximately RMB 15.2 million, a decrease from RMB 40.8 million in fiscal year 2022[115]. - The company has adopted various incentive plans, including a pre-IPO share option plan and a share reward plan, to attract and retain high-quality employees[28]. - The company has approximately 151 employees and offers various employee benefits, including retirement and medical insurance[119]. Investments and Future Plans - The company plans to establish and operate a new high school in Zhongshan, aiming to accommodate up to 5,000 students starting from the academic year beginning in September 2025[60]. - The company plans to utilize the net proceeds of approximately RMB 487.7 million from a share placement for school construction and general corporate purposes[120]. - The company is actively exploring the feasibility of spinning off its high school division into an independent entity, in compliance with applicable laws and regulations[65][67]. - The company plans to expand its product offerings to meet the needs of different age groups, transitioning from a retail to a wholesale business model[64]. - The company has established a contract arrangement to gain control over Zhongshan Wenrui Education Investment Co., Ltd., which aims to establish and operate a new high school[67]. Financial Position and Cash Flow - Current liabilities stood at RMB 571.6 million, resulting in a net asset value of RMB 272.7 million[56]. - The total assets minus current liabilities amounted to RMB 867.9 million as of August 31, 2023[56]. - The debt-to-equity ratio improved to 47.7% as of August 31, 2023, down from 82.6% in the previous year[100]. - Net cash inflow from operating activities for FY2023 was RMB 2,092 million[96]. - Total cash and cash equivalents as of August 31, 2023, amounted to RMB 5,344 million, down from RMB 6,762 million as of August 31, 2022[97]. Risks and Challenges - The company faces significant risks including reliance on a few customers in China, brand reputation, and regulatory changes affecting operations[166]. - The company has faced various compliance issues in the past, which are disclosed in the prospectus[170]. Environmental and Social Responsibility - The company emphasizes environmental sustainability by promoting energy-saving practices and the use of eco-friendly materials in its operations[168]. - The company has made full contributions to social insurance plans for all employees in China and is working towards full contributions to the housing provident fund[169]. Related Party Transactions - The company has established multiple ongoing agreements with related parties as part of its daily operations[194]. - The controlling shareholders have declared compliance with the non-competition agreement during the fiscal year 2023[192]. - The company has not received any reports of the controlling shareholders engaging in restricted businesses during the relevant period[192]. - The company believes that the transactions under the Zhongshan contract arrangement are fair and reasonable, aligning with the overall interests of the company and its shareholders[200].

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 全部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Wisdom Education International Holdings Company Limited 光 正 教 育 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6068） 年 度 業 績 公 告 截 至2023年8月31日 止 年 度 摘要 董 事 會 已 議 決 就 截 至2023年8月31日 止 年 度 建 議 派 付 末 期 股 息 每 股 人 民 幣 0.050元（相當於每股0.055港元）（2022年：無）。建議末期股息須待本公司股東 於應屆股東週年大會上批准後，方告作實，倘獲批准，預期於2024年2月28日 或之前派付。 截至8月31日止年度 2023年 2022年 變動 百分比 人民幣千元人民幣千元人民幣千元 變動 （經重列） ...

Revenue Performance - Revenue for the six months ended February 28, 2023, was RMB 113,294,000, a decrease of 2.1% from RMB 115,773,000 in the same period of 2022[14]. - Total revenue for the six months ended February 28, 2023, decreased by 2.1% to RMB 113.3 million compared to RMB 115.8 million for the same period in 2022[31]. - Revenue from school-related supply chain business increased significantly from RMB 15.3 million to RMB 62.3 million, accounting for 55.0% of total revenue[32]. - Revenue from comprehensive education services decreased by RMB 49.5 million or 49.3% due to the cancellation of most after-school activities in January and February 2023[33]. - Revenue from school-related supply chain business increased significantly to RMB 62,294,000, up 308.5% from RMB 15,255,000 in the previous year[99]. - Revenue from comprehensive education services decreased to RMB 51,000,000, down 49.3% from RMB 100,518,000 in the previous year[99]. Profitability - Profit for the period was RMB 54,975,000, representing a slight increase of 0.5% compared to RMB 54,685,000 in the previous year[14]. - Core net profit decreased by 21.6% to RMB 40,920,000 from RMB 52,226,000 year-on-year[14]. - Basic earnings per share increased by 0.8% to RMB 2.54 from RMB 2.52[14]. - Gross profit decreased by 21.6% to RMB 62.6 million, with a gross margin decline from 69.0% to 55.3%[36]. - Profit before tax decreased from RMB 69.1 million to RMB 65.5 million[42]. - Net profit for the period slightly increased to RMB 55.0 million from RMB 54.7 million[45]. - Core net profit decreased by RMB 11.3 million or 21.6% to RMB 40.9 million, with a core net profit margin declining from 45.1% to 36.1%[46]. Cash Flow and Financial Position - The group recorded a net cash inflow from operating activities of RMB 76.7 million for the six months ended February 28, 2023[52]. - Cash flow used in financing activities primarily consisted of repayment of bank loans amounting to RMB 94.2 million[50]. - As of February 28, 2023, the total amount of cash and cash equivalents was RMB 680.0 million, compared to RMB 676.2 million as of August 31, 2022[53]. - The group's capital debt ratio decreased to 56.5% as of February 28, 2023, down from 83.3% as of August 31, 2022, primarily due to the repayment of bank loans[55]. - The net cash generated from operating activities for the six months ended February 28, 2023, was RMB 76,685 thousand, a significant increase from RMB 14,838 thousand in the same period of 2022, representing a growth of approximately 416%[199]. - The total cash and cash equivalents at the end of the period as of February 28, 2023, amounted to RMB 391,030 thousand, up from RMB 210,912 thousand at the end of February 28, 2022, showing a year-over-year increase of approximately 85%[199]. Expenses and Cost Management - Administrative expenses decreased by 39.3% to RMB 14.0 million, attributed to cost control efforts by management[39]. - The total employee compensation for the six months ended February 28, 2023, was approximately RMB 6.2 million, a decrease from RMB 30.2 million for the same period in 2022[62]. - The total employee costs for the six months ended February 28, 2023, amounted to RMB 6,218,000, a decrease of 79.5% compared to RMB 30,214,000 for the same period in 2022[113]. - The total depreciation for property, plant, and equipment was RMB 2,071,000 for the six months ended February 28, 2023, compared to RMB 2,192,000 in the same period of 2022, reflecting a decrease of 5.5%[113]. Shareholder Information - The company has a total of 10,195,000 shares available for grant under the share award plan, representing approximately 0.47% of the total issued shares[75]. - Major shareholders include Bright Education Holdings with a beneficial interest of 930,000,000 shares, representing 42.70% of the company[88]. - Bright Education Investment holds a beneficial interest of 570,000,000 shares, representing 26.17% of the company[88]. - The company did not declare an interim dividend for the six months ending on that date[73]. - The company reported a dividend distribution of RMB 230,232 thousand in the previous year, which was not repeated in the current reporting period, reflecting a change in dividend policy[196]. Taxation and Regulatory Compliance - Total tax expenses for the six months ended February 28, 2023, were RMB 10,550,000, a decrease of 26.1% from RMB 14,409,000 in the same period of 2022[109]. - The company did not incur any Hong Kong profits tax for the six months ended February 28, 2023, due to lack of taxable profits[110]. - The group’s subsidiaries in Jiangxi and Guangdong provinces benefit from a reduced corporate income tax rate of 15% until December 31, 2030, and December 31, 2025, respectively[112]. - The company has maintained its accounting policies consistent with those used in the annual financial statements for the year ended August 31, 2022, ensuring transparency and reliability in financial reporting[200]. Investments and Financial Instruments - The group held investments classified as financial assets at fair value through profit or loss totaling approximately RMB 132.4 million as of February 28, 2023[61]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period[91]. - The group has not entered into any financial instruments for hedging purposes and will continue to monitor foreign exchange rate risks[56]. Other Financial Metrics - The company has provided a loan of RMB 30,000,000 to a third party at an interest rate of 5%, which is to be repaid within six months[124]. - The financial income from debt securities investments for the six months ended February 28, 2023, was RMB 558,000, a decrease of 92.06% compared to RMB 7,016,000 in the same period of 2022[136]. - The company did not report any forfeited awards during the six months ending February 28, 2023, except for those related to the resignation of a director and an employee[77]. - The company has not declared any dividends for the period ended February 28, 2023, following the special dividend of RMB 0.106 per share paid for the year ended August 31, 2021[114].

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 全部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Wisdom Education International Holdings Company Limited 光正教育國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6068） 中 期 業 績 公 告 截 至2023年2月28日 止 六 個 月 摘要 截至2月28日止六個月 2023年 2022 年 變動 百分比 人民幣千元人民幣千元人民幣千元 變動 收入 113,294 115,773 –2,479 –2.1% 期內利潤 54,975 54,685 +290 +0.5% 核心淨利潤（附註1） 40,920 52,226 –11,306 –21.6% 每股基本盈利（人民幣分） 2.54 2.52 +0.02 +0.8% 附註1： 核心淨利潤乃定義為就與本集團經營表現無關的項目作出調整後的期內利潤。這 ...

Financial Performance - Revenue from remaining business increased by 26.4% to RMB 277.6 million for the year ended August 31, 2022, compared to the year ended August 31, 2021[18]. - Net profit for the year ended August 31, 2022, was RMB 96.2 million, a significant recovery from a loss of RMB 2,278.6 million in the previous year[18]. - Core net profit for remaining business increased by 47.4% to RMB 116.7 million, adjusted for non-IFRS items[18]. - Total revenue increased by RMB 57.9 million or 26.4%, from RMB 219.7 million for the year ended August 31, 2021, to RMB 277.6 million for the year ended August 31, 2022[34]. - Gross profit for the year was RMB 154.4 million, with a gross margin reflecting the transition in business strategy[15]. - Gross profit increased by 9.0% from RMB 141.7 million for the year ended August 31, 2021, to RMB 154.4 million for the year ended August 31, 2022, while gross margin decreased from 64.5% to 55.6%[36]. - Profit before tax for the year ended August 31, 2022, was RMB 122.4 million[46]. - Income tax expense decreased by 58.7% from RMB 63.4 million for the year ended August 31, 2021, to RMB 26.2 million for the year ended August 31, 2022[47]. Business Strategy and Operations - The company shifted its focus to supply chain business and comprehensive education services following the implementation of the new regulations on September 1, 2021[18]. - The company transitioned its sales model from retail to wholesale for certain products, focusing on building a reliable supply chain network[26]. - The company plans to continue expanding its light-asset remaining business and explore the operation of independent high schools[25]. - The company aims to enhance educational services as a key supplement to school-provided education, focusing on student welfare[11]. - The company is actively exploring the feasibility of spinning off its high school division as an independent entity[27]. - The company has established long-term strategic partnerships with several third-party tutoring organizations to enhance service effectiveness[25]. - The group plans to expand its school-related supply chain business through a wholly-owned subsidiary established in Qingyuan City, China[68]. Assets and Liabilities - Total assets decreased to RMB 1,369.7 million in 2022 from RMB 1,397.9 million in 2021[16]. - Current liabilities reduced to RMB 676.8 million in 2022 from RMB 824.6 million in 2021[16]. - Non-current assets decreased to RMB 289.9 million in 2022 from RMB 7,624 million in 2021, reflecting changes in business structure[16]. - Cash and cash equivalents decreased by RMB 76.6 million, with total cash and bank balances amounting to RMB 676.2 million as of August 31, 2022, compared to RMB 485.2 million as of August 31, 2021[56]. - As of August 31, 2022, the group's net current assets amounted to RMB 402.9 million, a decrease from RMB 573.3 million as of August 31, 2021[58]. - The capital debt ratio increased to 83.3% as of August 31, 2022, compared to 30.1% as of August 31, 2021, primarily due to an increase in bank borrowings[60][61]. - The total amount of outstanding bank financing guarantees provided to affected entities decreased from RMB 5,242.5 million as of August 31, 2021, to RMB 4,604.5 million as of August 31, 2022[64]. Employee and Compensation - The total employee compensation for the year ending August 31, 2022, was approximately RMB 40.8 million, a significant decrease from RMB 816.3 million for the previous year[75]. - The group had approximately 171 employees as of August 31, 2022, participating in various employee benefit plans[75]. - The company emphasizes the importance of employee training and retention to provide high-quality educational services[70]. - The company adopted a pre-IPO share option plan and a share option plan on January 3, 2017, to reward and retain suitable talents[2]. Regulatory and Compliance - The implementation of new regulations is expected to significantly reduce the scale of private schools in China, positioning remaining schools as high-end, differentiated options[67]. - The company confirmed compliance with the relevant listing rules for the year ended August 31, 2022, following the termination of consolidation on August 31, 2021[130]. - The company has applied for and received a waiver from strict compliance with certain provisions of the listing rules regarding continuing connected transactions[128]. - The board will continue to evaluate the use of unutilized net proceeds and may revise plans as market conditions change[79]. Risks and Challenges - The company faces various risks, including reliance on a limited number of schools and clients in China, which could impact revenue[101]. - The company has faced challenges related to regulatory changes in China that could affect its operations and business structure[102]. Shareholder and Governance - The board consists of seven members, including four executive directors and three independent non-executive directors[199]. - Liu and Li, the ultimate shareholders of the affected entities, confirmed that they did not receive any dividends or distributions from the affected entities during the year ended August 31, 2022[129]. - The company has established appropriate directors and officers liability insurance for its directors and senior personnel[115]. Miscellaneous - The company is committed to environmental sustainability, promoting energy-saving practices and recycling materials in its operations[103]. - The company did not make any charitable donations during the year ending August 31, 2022, compared to RMB 3.2 million in the previous year[182]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the year ending August 31, 2022[178].

Financial Performance - Revenue from remaining business reached RMB 115,773,000, a significant increase of 97.3% compared to RMB 58,667,000 in the same period last year[15] - Profit from remaining business was RMB 54,685,000, up 4,622.4% from RMB 1,158,000 in the previous year[15] - Core net profit from remaining business was RMB 52,226,000, representing a 124.3% increase from RMB 23,287,000[15] - Basic earnings per share were RMB 2.52, down 83.2% from RMB 15.00 in the previous year[15] - The group's profit for the six months ended February 28, 2022, was RMB 54.7 million, a significant increase from RMB 1.2 million for the same period in 2021[30] - Revenue for the remaining business increased by RMB 57.1 million or 97.3% to RMB 115.8 million for the six months ended February 28, 2022, primarily due to a significant increase in various activities during the winter vacation[31] - Gross profit increased by 81.5% from RMB 44.0 million for the six months ended February 28, 2021, to RMB 79.9 million for the same period in 2022[34] - Profit before tax increased from RMB 24.1 million to RMB 69.1 million for the six months ended February 28, 2022[42] - The company reported a total comprehensive income of RMB 54,685,000 for the period, compared to a loss of RMB (1,707,000) in the previous period, indicating a turnaround in performance[120] Cash Flow and Financial Position - Cash and cash equivalents, including pledged bank deposits, amounted to RMB 571,731,000, an increase of 17.8% from RMB 485,184,000[19] - The net cash inflow from operating activities for the six months ended February 28, 2022, was RMB 148 million[49] - The total amount of cash and cash equivalents was RMB 210,912,000, down from RMB 402,189,000, a decrease of 47.5%[100] - The company reported cash and cash equivalents of RMB 210,912,000, down from RMB 652,536,000 year-over-year, representing a decrease of approximately 67.7%[120] - The net cash generated from operating activities was RMB 14,838,000, a significant decrease from RMB 350,495,000 in the same period last year, representing a decline of approximately 95.8%[120] - The net cash used in investing activities was RMB (181,124,000), compared to RMB (935,867,000) in the previous year, indicating a reduction in cash outflow by approximately 80.7%[120] - The net cash used in financing activities was RMB (23,962,000), a decrease from RMB 130,014,000 in the prior year, reflecting a decline of approximately 118.4%[120] Debt and Liabilities - Total borrowings increased by 117.3% to RMB 378,700,000 from RMB 174,258,000[19] - The capital debt ratio rose significantly to 93.6% from 30.1%[19] - The total bank borrowings as of February 28, 2022, amounted to RMB 378.7 million, with a capital debt ratio of 93.6%, significantly increased from 30.1% as of August 31, 2021[52][53] - Current liabilities decreased to RMB 696,823,000 from RMB 824,626,000, showing a reduction of 15.5%[100] Strategic Initiatives - The company has shifted its strategy to focus on expanding its light-asset remaining business and exploring the feasibility of operating independent high schools[25] - The company plans to expand its product supply to meet the needs of students of different ages through its wholly-owned subsidiary established in Qingyuan, China[26] - The company is actively exploring the feasibility of spinning off its high school division into an independent entity, with discussions ongoing with legal advisors and local government agencies[27] - The company plans to expand its school-related supply chain business and integrate resources to create an education service platform, including online education products and comprehensive education management services[61] - The company aims to operate with a light asset model, expecting future capital expenditures to be funded primarily from cash flow generated from operations[62] Employee and Governance - The company recognizes the importance of employee training and retention, implementing a comprehensive training system to prepare outstanding employees for future management roles[63] - The company is committed to investing in professional service team development, technology platform construction, and market expansion in the education service industry[64] - The total employee compensation for the six months ended February 28, 2022, was approximately RMB 30.2 million, a decrease from RMB 392.8 million for the same period in 2021[70] - The company has adopted the corporate governance code and has complied with all applicable code provisions, except for the provision regarding the separation of the roles of chairman and CEO[93] - The board is committed to achieving high standards of corporate governance to protect shareholder interests and enhance corporate value[93] Shareholder Information - The company declared dividends amounting to RMB (230,232,000), which is unchanged from the previous year[120] - The company adopted a share award plan to incentivize key management personnel, with a total of 11,704,000 shares purchased as of February 28, 2022[80] - The share award plan includes a total of up to 8,400,000 shares granted to 12 selected participants, representing approximately 0.39% of the total issued shares[80] - Liu Xuebin and Li Suwen, the co-founders, hold significant control interests of 42.70% and 26.17% respectively in the company[83] - The total number of shares available for issuance under the share option scheme is 197,000,000, accounting for approximately 9.0% of the company's issued share capital[90] Acquisitions and Investments - The acquisition of 70% equity interest in Huiyang Primary School was completed for a total consideration of RMB 130,900,000, with goodwill arising from the acquisition amounting to RMB 66,350,000[193] - The cash consideration for the acquisition was RMB 130,900,000[196] - The fair value of net assets acquired was RMB 92,214,000, resulting in goodwill of RMB 66,350,000[196] - The additional business profit generated by Huizhou Primary School during the period was RMB 1,028,000,000, with revenue of RMB 3,544,000,000[197] Regulatory and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards and relevant local regulations[125] - The group applies revised International Financial Reporting Standards, which have no significant impact on the financial position and performance for the reporting period[125] - The group has adopted a practical expedient approach to update the effective interest rate for financial assets or liabilities affected by benchmark interest rate reforms[127] - The group has no significant impact on the financial statements from the application of revised accounting standards during the reporting period[133]

Enrollment and Capacity - Total enrollment increased to 73,931, up by 23.0% from 60,116 in the previous year[11] - Total student capacity increased to 82,500, reflecting a growth of 17.9% from 70,000[11] - The company operates 15 boarding schools with a total student capacity of approximately 82,500 after the addition of Huizhou Huiyang Experimental Primary School[31] - The total estimated capacity of existing schools increased from approximately 70,000 students to about 82,500 students between February 29, 2020, and February 28, 2021[92] - The school capacity is expected to reach 91,000 students for the 2021/2022 academic year, with an increase of 2,500 students from Guangzhong Experimental School and 6,000 students from three new schools under construction in Guangdong Province[99] - The maximum estimated capacity of the group could expand to approximately 170,000 students if all available land use rights are fully utilized[99] Financial Performance - Revenue for the six months ended February 28, 2021, was RMB 1,090,804, representing a 17.0% increase from RMB 932,172[11] - Core net profit rose to RMB 376,265, a 30.5% increase compared to RMB 288,267 in the prior period[11] - Total revenue increased by 17.0% to RMB 1,090.8 million for the six months ended February 28, 2021, compared to RMB 932.2 million for the same period in 2020[53] - Net profit for the period increased by 25.1% from RMB 2,584 million for the six months ended February 29, 2020, to RMB 3,232 million for the six months ended February 28, 2021[69] - Basic earnings per share rose to RMB 15.00, up from RMB 12.65, marking an 18.6% increase[156] - Gross profit increased by 16.6% to RMB 508.1 million, maintaining a stable gross margin of 46.6%[58] Revenue Sources - Tuition and accommodation fees accounted for 72.1% of total revenue, amounting to RMB 786.5 million, reflecting a 17.2% increase due to higher enrollment numbers[40][41] - Revenue from supporting services reached RMB 301,438 thousand, a 15% increase from RMB 261,320 thousand in the previous year[185] - The segment performance for schools reported a profit of RMB 505,304 thousand, compared to RMB 435,625 thousand for the same period last year, reflecting a growth of 16%[188] Expenditures and Costs - Capital expenditure on property, plant, and equipment was RMB 704,144, up 44.4% from RMB 487,796[17] - Employee costs increased due to the rise in teacher numbers from approximately 3,818 to about 4,815[55] - Sales expenses increased by 9.7% from RMB 202 million for the six months ended February 29, 2020, to RMB 221 million for the six months ended February 28, 2021, primarily due to increased enrollment costs[61] - Administrative expenses rose by 2.8% from RMB 1,401 million for the six months ended February 29, 2020, to RMB 1,440 million for the six months ended February 28, 2021, mainly due to increased employee expenses[63] Cash Flow and Financing - Cash generated from operating activities increased by 40.1% to RMB 350,495 from RMB 250,208[17] - The net cash generated from operating activities was RMB 350,495,000, an increase from RMB 250,208,000 in the same period of 2020, representing a growth of approximately 40%[168] - The net cash used in investing activities for the same period was RMB (935,867,000), compared to RMB (224,989,000) in 2020, indicating a significant increase in investment outflows[168] - The company completed a placement of 130,000,000 new shares at a price of HKD 4.24 per share, raising net proceeds of approximately HKD 545.7 million (equivalent to about RMB 487.7 million) for school development in China and general corporate purposes[115] Strategic Initiatives - The company aims to expand its educational services and enhance its reputation through strategic acquisitions and partnerships in the education sector[29] - The company plans to establish new schools in cities such as Chaozhou, Jiangmen, and Zhongshan, with a maximum student capacity of 8,000, 7,500, and 11,000 respectively[93] - The company is exploring expansion opportunities beyond Guangdong Province, including Sichuan Province[90] - The company plans to establish a private higher education institution to offer diploma courses in advanced technology fields, responding to the growing demand for high-end technical personnel in South China[88] Governance and Compliance - The board is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[143] - The audit committee, composed of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ended February 28, 2021[145] - The company confirmed compliance with the standards of the code of conduct for securities transactions by directors during the six months ended February 28, 2021[142] Taxation and Financial Position - Tax expenses decreased by 58.0% from RMB 622 million for the six months ended February 29, 2020, to RMB 261 million for the six months ended February 28, 2021, resulting in effective tax rates of 7.5% and 19.4% respectively[68] - The income tax expense for the six months ended February 28, 2021, was RMB 26,128,000, a decrease of 58.5% from RMB 64,479,000 in the same period of 2020[195] - The company’s non-profit schools generated tax-exempt income of RMB 778,910,000 for the six months ended February 28, 2021, up from RMB 670,852,000 in the previous year, reflecting a growth of 16.1%[199]

Financial Performance - Revenue for the year 2020 reached RMB 1,792.728 million, representing a year-over-year increase of 6.6% from RMB 1,681.530 million in 2019[13] - Gross profit for 2020 was RMB 867.936 million, with a gross margin of 48.4%, up from 44.1% in 2019[13] - Net profit for 2020 increased to RMB 501.681 million, reflecting a net profit margin of 28.0%, compared to 21.0% in 2019[13] - Core net profit for 2020 was RMB 559.317 million, with a core net profit margin of 31.2%, an increase from 25.5% in 2019[13] - Basic earnings per share for 2020 was RMB 0.25, up from RMB 0.17 in 2019, indicating a growth of 47.1%[14] - The total dividend for 2020 was RMB 0.113 per share, an increase from RMB 0.084 per share in 2019[15] - Profit increased by 41.9% to RMB 501.7 million, while core net profit rose by 30.5% to RMB 559.3 million[26] - Total revenue reached RMB 1,792.7 million, representing a 6.6% increase compared to the previous year[26] - Gross profit increased by 17.0% to RMB 867,936 from RMB 741,694[41] - The group's net profit increased by 41.9% from RMB 353.6 million for the year ended August 31, 2019, to RMB 501.7 million for the year ended August 31, 2020[103] Enrollment and Capacity - Total enrollment increased by 10.5% to 60,116 students for the 2019/2020 academic year, with total capacity rising by approximately 11.1% to 70,000 students[26] - Total enrollment increased to 60,116 for the 2019/2020 academic year, up by 10.5% from 54,420 in 2018/2019[41] - Total student capacity rose to 70,000, reflecting an increase of 11.1% from 63,000[41] - The total number of students for the 2019/2020 academic year was 60,116, an increase from 54,420 in the 2018/2019 academic year, representing an increase of approximately 10.5%[60] - The total estimated maximum capacity, including existing and newly constructed schools, could exceed 155,000 students[139] - The total estimated maximum capacity of existing schools increased from approximately 70,000 students in the 2019/2020 academic year to about 79,500 students in the 2020/2021 academic year[132] Operational Expansion - The company operates the largest listed private education group in South China by enrollment numbers, targeting middle-class families[7] - The company has expanded its campus network across various cities in China, including Dongguan, Huizhou, and others[12] - The company opened three new schools in the 2019/2020 academic year, expanding its operational footprint[27] - New school openings contributed an additional 3,872 students, with significant growth from newly established schools in 2019[56][58] - The company plans to establish private boarding schools in Chaozhou, Jiangmen, and Zhongshan, with estimated maximum student capacities of 8,000, 7,500, and 11,000 respectively[135] - The company plans to expand its school coverage across nine cities in the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on areas with favorable economic conditions[130] Financial Management - Capital expenditures totaled RMB 1,028.1 million, with RMB 941.6 million allocated for the acquisition of property, plant, and equipment[23] - The net debt-to-equity ratio improved to 53.7% in 2020 from 66.2% in 2019[19] - Cash and cash equivalents increased by RMB 466.2 million for the year ended August 31, 2020, compared to a decrease of RMB 259.7 million for the year ended August 31, 2019[109] - As of August 31, 2020, total bank borrowings amounted to RMB 2,785.5 million, with interest rates ranging from 4.7% to 6.0%[110] - The company's capital debt ratio was 53.7%, down from 66.2% on August 31, 2019[113] - Future capital expenditures will primarily be funded through bank loans, cash flows from operations, and/or other capital market financing options if necessary[151] Educational Offerings - The company offers international courses authorized by the London Examination Board for students aiming for overseas higher education[8] - The company aims to enhance its educational offerings and expand its market presence through new strategies and product development[7] - The company is actively seeking to provide management services to independent private schools, aiming to generate management fee income starting from the 2020/2021 academic year[145] - The company has established a subsidiary focused on "Internet+" education and educational information technology, contributing additional revenue through various online courses[146] COVID-19 Impact and Response - The revenue from supporting services decreased by 6.7% due to COVID-19 related school closures, totaling RMB 500,315,000[54] - The company refunded approximately RMB 30 million in accommodation fees during the school closure period due to COVID-19[51] - The company has established a COVID-19 prevention leadership team in all schools to manage health and safety protocols effectively[169] - The online education platform utilized during school closures has received positive feedback from parents, indicating a potential competitive advantage in combining offline and online education[128] Investor Relations - The company received the "Best Investor Relations Company (Small Cap)" award at the 2020 Hong Kong Investor Relations Awards, marking the third consecutive year of this recognition[181] - The management team has been actively communicating the company's strategies, operational performance, and future plans during investor relations activities[180] - The company is committed to maintaining high-quality investor relations, as evidenced by the awards received and the recognition from the investment industry[181] Future Outlook - The company plans to enter the higher education sector in China, as detailed in the management discussion and analysis section[38] - The company anticipates increased demand for advanced technology and high-end technical personnel in the South China region due to the "Made in China 2025" strategy[122] - The company is exploring opportunities to operate light-asset schools in Guangdong Province, potentially accommodating 3,000 to 5,000 students each[136] - The company anticipates further new school projects to be added to its development plan, adjusting based on market conditions and local government regulations[132]

Enrollment and Capacity - Total enrollment increased to 60,116, up by 10.5% from 54,420[12] - Total student capacity grew to 70,000, reflecting an increase of 11.1% from 63,000[12] - The total enrollment across 14 boarding schools reached 60,116 students, with a total capacity of 70,000 students as of February 29, 2020[29] - The number of students in the junior high school and high school divisions increased, contributing to the overall enrollment growth[52] - Total enrollment increased by 10.5% to 60,116 students, primarily driven by growth in Dongguan Guangzheng Experimental School and Huizhou Guangzheng Experimental School[47] Financial Performance - Revenue for the six months ended February 29, 2020, was RMB 932,172,000, representing an increase of 11.6% from RMB 835,553,000[12] - Core net profit rose to RMB 288,267,000, a 33.2% increase compared to RMB 216,434,000[12] - Total revenue for the six months ended February 29, 2020, was RMB 932.2 million, an increase of 11.6% from RMB 835.6 million for the same period in 2019[41] - Total revenue increased by RMB 96.6 million or 11.6%, from RMB 835.6 million for the six months ended February 28, 2019, to RMB 932.2 million for the six months ended February 29, 2020[73] - Gross profit increased by 15.0%, from RMB 378.7 million to RMB 435.6 million, with a gross margin improvement from 45.3% to 46.7%[79] - Profit before tax increased from RMB 222.4 million to RMB 320.6 million, representing a profit margin of 34.4% compared to 26.6% in the previous period[90] - Total profit for the period increased by 36.4%, from RMB 189.5 million to RMB 258.4 million[94] - Net profit attributable to the owners of the company was RMB 266,515,000, compared to RMB 192,971,000 in the prior year, marking an increase of 38.2%[192] - Basic earnings per share rose to RMB 12.65, up from RMB 9.31, indicating a growth of 35.5%[192] Operational Metrics - Gross profit margin improved to 46.7%, up by 1.4 percentage points from 45.3%[12] - Cash generated from operating activities increased by 42.3% to RMB 250,208,000 from RMB 175,794,000[19] - The overall campus utilization rate slightly decreased to 85.9%, down by 0.5 percentage points from 86.4%[12] - The number of qualified teachers increased from approximately 3,410 to about 3,818, reflecting the expansion of several schools[70] - The teacher turnover rate was approximately 8% for the six months ended February 29, 2020[71] Dividends and Shareholder Information - Interim dividend per share increased to HKD 0.062, a rise of 26.5% from HKD 0.049[12] - The interim dividend declared is RMB 0.057 per share, compared to RMB 0.042 per share for the same period last year, representing a 35.71% increase[155] - Major shareholders include Bright Education Holdings with 930,000,000 shares (45.43%) and Bright Education Investment with 570,000,000 shares (27.84%) as of February 29, 2020[164] Strategic Initiatives and Future Plans - The company opened three new schools in September 2019, expanding its presence in Sichuan and Guangdong provinces[29] - The company aims to maintain educational quality and equity in student admissions as mandated by government regulations[33] - The company plans to establish private boarding schools in Jiangmen, Guangzhou, and Zhaoqing, in addition to existing schools in Dongguan, Huizhou, and Foshan, to cover six additional cities in the Greater Bay Area[119] - The company aims to open more new schools, including smaller asset-light schools in Guangdong Province and larger schools on land already acquired for educational purposes[132] - The company is exploring attractive expansion opportunities beyond Guangdong Province, despite it being the primary focus for growth[120] Impact of COVID-19 - The company implemented online teaching services during the pandemic, allowing teachers to provide live instruction from home[37] - The company will closely monitor risks and uncertainties related to the pandemic and take necessary measures to mitigate any adverse effects[41] - New school projects and existing school capacity expansion were interrupted during the pandemic, but efforts are being made to recover the construction progress[41] - The company reported no significant adverse impact on its financial position as of the report date due to the pandemic[41] Corporate Governance - The company has committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[181] - The board of directors confirmed adherence to the standard code for securities transactions by directors during the reporting period[180] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended February 29, 2020[183]