Revenue and Profitability - Revenue for the six months ended February 28, 2021, was RMB 1,365,495, representing an increase of 8.3% compared to RMB 1,260,408 for the same period in 2020[9]. - Gross profit for the same period was RMB 854,686, reflecting a growth of 16.7% from RMB 732,476 in the prior year[9]. - Adjusted gross profit reached RMB 881,232, up 15.6% from RMB 762,609 year-over-year[9]. - Adjusted net profit attributable to equity holders was RMB 691,146, a significant increase of 39.7% compared to RMB 494,765 in the previous year[9]. - Operating profit for the six months ended February 28, 2021, was RMB 900.0 million, compared to RMB 130.4 million in the same period of 2020, driven by increased gross profit and changes in fair value of convertible bonds[35]. - The net profit attributable to equity holders of the company for the six months ended February 28, 2021, was RMB 691.1 million, an increase of RMB 196.3 million or 39.7% from RMB 494.8 million in 2020[22]. - The adjusted net profit margin for the six months ended February 28, 2021, was 50.6%, compared to 39.3% in the same period of 2020[22]. - The company reported a profit of RMB 874,201 thousand for the period, compared to RMB 849,217 thousand in the previous period, indicating an increase of about 2.9%[125]. Operational Efficiency and Strategic Initiatives - The company is focused on improving operational efficiency and maximizing shareholder value through strategic initiatives[15]. - The management remains optimistic about future growth prospects despite market challenges[15]. - The company plans to continue expanding its market presence and investing in new educational technologies[15]. - The company aims to enhance its educational services and maintain stability in operations despite the impact of COVID-19[22]. - The company has made strategic acquisitions, including LEI Lie Ying Limited and its subsidiaries, to enhance its educational offerings[9]. - The company plans to continuously improve educational infrastructure and expand its school network to ensure quality education delivery[21]. Financial Position and Liquidity - As of February 28, 2021, the group's cash and cash equivalents decreased by 18.1% to RMB 1,780.5 million from RMB 2,175.2 million as of August 31, 2020, primarily due to acquisitions of non-controlling interests[42]. - The current ratio as of February 28, 2021, was 1.01, down from 1.19 as of August 31, 2020, indicating a decrease in liquidity[42]. - The debt-to-capital ratio was approximately 20.7% as of February 28, 2021, a decrease from 27.9% as of August 31, 2020, reflecting improved capital structure[43]. - The company reported a liquidity risk management strategy that includes maintaining sufficient cash levels to manage operational needs and reduce cash flow volatility[154]. - The company expects to meet future cash flow requirements through internally generated cash flows and bank borrowings[154]. Employee and Operational Costs - The total cost of employee compensation for the six months ended February 28, 2021, was RMB 347.7 million, compared to RMB 342.3 million for the same period in 2020[54]. - Employee benefits expenses for the six months ended February 28, 2021, were RMB 347,716 thousand, slightly up from RMB 342,315 thousand for the same period in 2020, representing an increase of 1.2%[196]. - Total operating expenses decreased to RMB 660,367 thousand for the six months ended February 28, 2021, down from RMB 686,208 thousand in the same period of 2020, indicating a reduction of 3.8%[196]. Acquisitions and Investments - The company successfully acquired a total of 30% equity in Hunan Falcon Industrial Co., Ltd. for approximately RMB 721.2 million, making it a wholly-owned subsidiary[45]. - The company completed the acquisition of the remaining 30% equity in Hunan Falcon Industrial Co., Ltd. for a total consideration of RMB 721,200,000, resulting in Hunan Falcon becoming a wholly-owned subsidiary[1]. - Non-current asset additions for the six months ended February 28, 2021, were RMB 406,016 thousand, compared to RMB 240,308 thousand for the same period in 2020, showing a 68.9% increase[185]. Shareholder Information and Dividends - The company declared an interim dividend of HKD 0.123 per share for the six months ended February 28, 2021, up from HKD 0.082 per share in 2020[62]. - As of February 28, 2021, the company’s directors and senior management held significant stakes, with Mr. Li owning approximately 57.74% and Ms. Li approximately 57.89% of the shares[82]. - The company issued 6,684,800 shares under the share incentive plan, equivalent to approximately 0.2002% of the total issued shares prior to the issuance[1]. Assets and Liabilities - The total assets as of February 28, 2021, amounted to RMB 9,434,047 thousand, compared to RMB 9,055,758 thousand as of February 29, 2020[185]. - The total liabilities as of February 28, 2021, were RMB 5,315,854 thousand, an increase from RMB 4,856,961 thousand as of February 29, 2020[185]. - Total liabilities decreased to RMB 5,315,854 thousand from RMB 5,629,750 thousand, a reduction of about 5.6%[120]. - The company’s retained earnings increased to RMB 1,956,406 thousand from RMB 1,109,469 thousand, reflecting a growth of approximately 76.3%[120]. Market Presence and Customer Base - The company operates primarily in China and Thailand, providing private formal education services from kindergarten to university[179]. - The company’s revenue from external customers in China for the six months ended February 28, 2021, was RMB 1,284,830 thousand, compared to RMB 1,174,577 thousand for the same period in 2020, reflecting a growth of 9.4%[192]. - No single customer accounted for more than 10% of the total revenue for the six months ended February 28, 2021, and February 29, 2020[180].

Financial Performance - For the fiscal year ending August 31, 2020, the company reported revenue of RMB 2,409,352,000, representing a 40.5% increase from RMB 1,714,485,000 in the previous year[11]. - Gross profit for the same period was RMB 1,468,615,000, up 46.9% from RMB 999,893,000 in 2019[11]. - Adjusted gross profit reached RMB 1,522,029,000, reflecting a 45.1% increase compared to RMB 1,048,761,000 in the prior year[11]. - The adjusted net profit attributable to equity holders was RMB 1,040,718,000, a 31.3% increase from RMB 792,538,000 in 2019[11]. - The gross profit margin improved to 61.0% in 2020, compared to 58.3% in 2019[23]. - The adjusted operating profit for the fiscal year ended August 31, 2020, was RMB 1,256.1 million, an increase of RMB 384.0 million or 44.0% from RMB 872.1 million in 2019, with an adjusted operating profit margin of 52.1%[56]. - The adjusted net profit margin for the fiscal year was 43.2%, compared to 46.2% in the previous year[45]. - The company incurred additional depreciation and amortization due to fair value adjustments from acquisitions, amounting to RMB 16,586,000 in 2020[20]. - The group recorded a loss of RMB 792.0 million in other gains and losses for the fiscal year ended August 31, 2020, compared to a loss of RMB 233.2 million in the previous year, primarily due to fair value losses on convertible bonds[55]. Enrollment and Staff - As of November 23, 2020, the company had a total of 143,412 students enrolled for the 2020/2021 academic year[3]. - The company employed 6,938 staff members as of August 31, 2020[3]. - The total number of students enrolled in the 2020/2021 academic year was 143,412, an increase from 138,234 in the previous year[40]. - The group employed 6,938 employees as of August 31, 2020, down from 8,094 employees a year earlier[123]. Educational Goals and Infrastructure - The company plans to continuously improve educational infrastructure and expand its school network to ensure quality education delivery[3]. - The company emphasizes the development of modern talents with leadership skills and self-learning abilities as part of its educational goals[3]. Assets and Liabilities - The company reported a significant increase in non-current assets, reaching RMB 7,282,382,000 in 2020, up from RMB 6,948,178,000 in 2019[25]. - The total equity for the company was RMB 4,089,412,000 in 2020, slightly down from RMB 4,143,575,000 in 2019[25]. - The company reported a decrease in current liabilities to RMB 2,055,601,000 in 2020 from RMB 4,456,572,000 in 2019[25]. - The company’s cash and cash equivalents stood at RMB 2,175,197,000 in 2020, compared to RMB 2,125,719,000 in 2019[25]. Shareholder and Management Information - The company has established service contracts with its directors, with initial terms of three years from the listing date, automatically renewable for another three years[104]. - The company’s directors and senior executives held a total of 3,339,640,183 shares, representing approximately 58.01% and 58.15% ownership for Mr. Li and Ms. Li respectively[110]. - Mr. Li holds 1,937,249,000 shares, while Ms. Li holds 1,942,152,000 shares, indicating significant insider ownership[110]. - The company has established a remuneration committee to formulate the remuneration policy for directors and senior management[149]. Regulatory and Compliance Issues - The company has complied with all relevant laws and regulations without any significant violations during the year ended August 31, 2020[82]. - The company is subject to scrutiny from Chinese tax authorities regarding its contractual arrangements, which may lead to additional tax liabilities[168]. - The company has been closely monitoring the regulatory environment in China to mitigate risks associated with contract arrangements[183]. Contractual Arrangements and Risks - The company has established exclusive management and business cooperation agreements to provide management and educational services to its subsidiaries[171]. - The company faces significant risks related to contractual arrangements, including potential penalties from the Chinese government if agreements do not comply with applicable laws[167]. - The implementation of the Foreign Investment Law in China may introduce uncertainties affecting the company's existing structure and financial performance[168]. - The company has signed multiple agreements to ensure that the economic benefits from its consolidated subsidiaries are transferred to its wholly-owned foreign enterprise[165]. Mergers and Acquisitions - The company is focused on potential mergers and acquisitions to enhance growth and maximize shareholder value[43]. - The company acquired the remaining 30% non-controlling interest in Hunan Lie Ying, making it a wholly-owned subsidiary[41]. Donations and Community Engagement - The company reported a donation of RMB 1.0 million for the year ended August 31, 2020, compared to approximately RMB 0.1 million in 2019, while receiving donations of RMB 1.6 million in 2020, up from zero in 2019[93].

Financial Performance - Revenue for the six months ended February 29, 2020, was RMB 1,260,408, representing a 57.4% increase compared to RMB 801,013 for the same period in 2019[9] - Gross profit for the same period was RMB 732,476, up 60.4% from RMB 456,572 in the prior year[9] - Adjusted gross profit was RMB 762,609, reflecting a 58.8% increase from RMB 480,163 in the previous year[9] - Adjusted net profit attributable to equity holders was RMB 494,765, a 45.3% increase from RMB 340,402 in the same period last year[9] - Operating profit for the six months ended February 29, 2020, was RMB 130.4 million, down from RMB 376.0 million in the same period of 2019, primarily due to net losses from convertible bonds and loans[40] - The group reported a profit of RMB 85.0 million for the six months ended February 29, 2020, down from RMB 363.9 million in the same period of 2019, with adjusted net profit attributable to equity holders increasing to RMB 494.8 million from RMB 340.4 million[45] - Profit attributable to equity holders for the period was RMB 84,991,000, down from RMB 363,920,000 in the previous year, a decrease of 76.6%[179] - Total comprehensive income for the period was RMB 83,779,000, down from RMB 346,253,000 in 2019, a decline of 75.8%[181] Acquisitions and Growth Strategy - The company has made acquisitions including LEI Lie Ying Limited and its subsidiaries, contributing to the growth in revenue and profit[9] - The company aims to continue expanding its market presence and enhancing its educational offerings through strategic acquisitions and partnerships[15] - The company aims to explore potential acquisition targets or collaboration opportunities in China and overseas to expand its school network[25] - The company is focused on leveraging its acquisitions to improve educational services and increase student enrollment[15] Market and Operational Outlook - Future outlook remains positive with expectations of continued revenue growth driven by strategic initiatives and market expansion efforts[15] - The financial results indicate strong operational performance, positioning the company for future growth in the education sector[15] - The company plans to continue improving educational infrastructure and expanding its school network despite the impact of COVID-19[17] - The company has expanded its educational services in both China and Thailand, focusing on comprehensive private education[198] Financial Position and Cash Flow - Cash and cash equivalents decreased by 25.8% to RMB 1,577.6 million as of February 29, 2020, from RMB 2,125.7 million as of August 31, 2019, primarily due to payments related to the repurchase of convertible bonds and loan repayments[46] - The current ratio as of February 29, 2020, was 0.86, compared to 0.64 as of August 31, 2019[46] - The debt-to-capital ratio as of February 29, 2020, was approximately 7.2%, down from 26.4% as of August 31, 2019[49] - Operating cash flow for the six months ended February 29, 2020, was RMB 556,611,000, compared to RMB 323,023,000 for the same period in 2019, representing a 72.3% increase[195] - Net cash from operating activities was RMB 495,110,000 for the six months ended February 29, 2020, up from RMB 312,702,000 in the previous year, indicating a growth of 58.3%[195] - The company reported a net cash outflow from investing activities of RMB 39,271,000, a significant improvement from RMB 1,613,587,000 in the prior period[195] - Financing activities resulted in a net cash outflow of RMB 992,473,000, compared to an inflow of RMB 860,810,000 in the same period last year[195] Shareholder Information and Capital Structure - The interim dividend declared is HKD 0.082 per share for the six months ending February 29, 2020, compared to HKD 0.061 per share in 2019, representing a 34.4% increase[65] - The total principal amount of the convertible bonds issued is HKD 2,024 million, with an additional option for HKD 324 million, indicating a significant capital raising effort[74] - The company has a significant ownership concentration, with major shareholders holding over 64% of the total shares[155] - The company’s board and senior management hold interests in the company’s shares and related securities, as required by the Securities and Futures Ordinance[146] - Mr. Li holds 2,157,249,000 shares, representing 64.60% of the company[147] - Ms. Li holds 2,162,152,000 shares, representing 64.74% of the company[148] Regulatory and Compliance - The company has a regulatory framework in place that restricts foreign investment in the education sector, requiring foreign investors to partner with local entities[141] - The foreign ownership in Sino-foreign cooperative education institutions must be less than 50% according to the regulations[144] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[71] - The company has engaged independent auditors to review the interim financial statements for the six months ending February 29, 2020, ensuring compliance with international standards[71] Other Financial Metrics - Adjusted administrative expenses for the six months ended February 29, 2020, were RMB 114.3 million, an increase of RMB 36.3 million or 46.5% compared to RMB 78.0 million for the same period in 2019[37] - Financial income increased by 15.2% to RMB 18.9 million for the six months ended February 29, 2020, compared to RMB 16.4 million in the same period of 2019, due to an increase in cash and cash equivalents[41] - Financial expenses increased by 106.6% to RMB 68.8 million for the six months ended February 29, 2020, compared to RMB 33.3 million in the same period of 2019, due to increased borrowings and premiums paid for early repayment of loans[42] - Other income decreased by RMB 3.0 million or 18.1% to RMB 13.6 million for the six months ended February 29, 2020, compared to RMB 16.6 million in the same period of 2019, primarily due to a reduction in government grants and subsidies[38]

Financial Performance - For the fiscal year ending August 31, 2019, the company reported revenue of RMB 1,714,485,000, representing a 43.5% increase from RMB 1,195,110,000 in 2018[11] - Gross profit for the same period was RMB 999,893,000, up 49.1% from RMB 670,723,000 in the previous year[11] - Adjusted gross profit reached RMB 1,048,761,000, reflecting a 49.7% increase compared to RMB 700,349,000 in 2018[11] - The adjusted net profit attributable to equity holders was RMB 792,538,000, a 30.1% rise from RMB 609,100,000 in the prior year[11] - The financial data indicates a strong growth trajectory, with significant increases in both revenue and profit metrics year-over-year[11] - The company's revenue for the year ended August 31, 2019, was RMB 1,714,485,000, representing a significant increase from RMB 1,195,110,000 in 2018, which is a growth of approximately 43.4%[20] - Adjusted net profit attributable to equity holders for the year was RMB 792,538,000, up from RMB 609,100,000 in 2018, reflecting an increase of about 30.1%[20] - The gross profit margin improved to 58.3% in 2019, compared to 56.1% in 2018, indicating enhanced operational efficiency[23] - The adjusted gross profit for the year was RMB 1,048,761,000, compared to RMB 700,349,000 in 2018, reflecting an increase of approximately 49.9%[20] - The adjusted net profit margin for equity holders was 28.3% in 2019, down from 44.4% in 2018, indicating a shift in profitability dynamics[23] - The adjusted operating profit for the year ended August 31, 2019, was RMB 872,100,000, an increase of RMB 257,400,000 or 41.9% from RMB 614,700,000 in 2018, with an adjusted operating profit margin of 50.9%[53] Enrollment and Workforce - As of November 29, 2019, the company had a total enrollment of 138,234 students for the 2019/2020 academic year[3] - The total number of students enrolled across all schools was 138,234 for the 2019/2020 academic year, compared to 93,108 in the 2018/2019 academic year[35] - The company employed 8,094 staff members as of August 31, 2019[3] - The total employee count increased to 8,094 as of August 31, 2019, up from 6,063 a year earlier, reflecting a significant growth in workforce[120] - The total salary cost for the group for the year ending August 31, 2019, was RMB 475,800,000, compared to RMB 325,800,000 for the previous year, indicating a year-over-year increase of approximately 46%[122] Acquisitions and Expansion - The company completed the acquisition of Thai Education Holdings Co., Ltd. and Fareast Stamford International Co., Ltd. for approximately USD 27.87 million (around HKD 218.78 million) on February 12, 2019[31] - The company also acquired 90% equity in a target company for RMB 1,491,600,000 on July 19, 2019, with the financial performance of the target company included in the group from August 2, 2019[32] - The company has established a robust channel for opening new schools both domestically and internationally, and will explore potential acquisition targets or collaboration opportunities[40] - The acquisition of Thai Education Holdings Co., Ltd. and Fareast Stamford International Co., Ltd. is expected to enhance the company's profitability and long-term sustainability in the Thai private higher education market[160] Financial Position and Liabilities - The company reported a significant increase in non-current assets, which rose to RMB 6,948,178,000 in 2019 from RMB 3,826,136,000 in 2018, marking an increase of approximately 81.5%[25] - The total liabilities increased to RMB 5,639,723,000 in 2019, up from RMB 2,372,877,000 in 2018, indicating a rise of about 137.9%[25] - The company’s cash and cash equivalents increased to RMB 2,125,719,000 in 2019 from RMB 1,593,177,000 in 2018, representing a growth of about 33.4%[25] - The group's current ratio decreased to 0.64 as of August 31, 2019, compared to 1.13 as of August 31, 2018[59] - The capital debt ratio as of August 31, 2019, was approximately 26.4%, up from 13.4% as of August 31, 2018[62] - As of August 31, 2019, the group had bank borrowings of RMB 1,013,700,000 secured by certain rights and equity of its subsidiaries[65] Corporate Governance and Shareholder Information - The board proposed a final dividend of HKD 0.073 per share (approximately RMB 0.066) for the fiscal year ending August 31, 2019, subject to shareholder approval[93] - The company’s directors and senior executives held a total of 2,157,249,000 shares, representing approximately 65.67% of the company[107] - The company’s major shareholders include Baikal Lake Investment and Bank of America Corporation, holding 65.07% and 13.85% of shares, respectively[114] - The company has established a remuneration committee to formulate compensation policies based on the qualifications, positions, and experience of directors and senior management[147] Regulatory and Compliance Risks - The company operates in the private education sector in China through contractual arrangements due to restrictions on foreign ownership in this industry[152] - The foreign investment activities in China are regulated by a negative list, which restricts foreign investment in certain sectors, including private education[153] - The proposed Foreign Investment Law may significantly impact foreign-invested enterprises controlled through contractual arrangements, affecting the company's operations[166] - The effectiveness of contractual arrangements in controlling consolidated subsidiaries may not be equivalent to direct ownership[167] - The group faces potential conflicts of interest with beneficial owners of consolidated subsidiaries, which may adversely affect its business and financial condition[168] Contractual Arrangements - The revenue from contract arrangements for the fiscal year ending August 31, 2019, was approximately RMB 1,115,875,000, an increase from RMB 943,641,000 in 2018, representing a growth of about 18.3%[185] - The total assets from contract arrangements as of August 31, 2019, amounted to approximately RMB 4,907,855,000, compared to RMB 2,769,795,000 in 2018, indicating a significant increase of approximately 77.2%[185] - The company entered into exclusive management consulting and business cooperation agreements on July 1, 2019, appointing the foreign-invested enterprise as the exclusive service provider[185] - The company has not entered into, renewed, or re-signed any new contract arrangements as of August 31, 2019, indicating stability in existing agreements[181] - The company is closely monitoring the regulatory environment in China to mitigate risks associated with contract arrangements[183]

Financial Performance - Revenue for the six months ended February 28, 2019, was RMB 801,013,000, representing a 54.9% increase compared to RMB 517,105,000 for the same period in 2018[9] - Gross profit for the same period was RMB 456,572,000, reflecting a 70.8% increase from RMB 267,291,000 year-over-year[9] - Profit attributable to equity holders of the company was RMB 330,391,000, up 63.8% from RMB 201,731,000 in the previous year[9] - Adjusted revenue for the six months was RMB 801,013,000, a 51.7% increase from RMB 528,022,000 in 2018[9] - Adjusted gross profit was RMB 480,163,000, which is a 65.6% increase compared to RMB 289,921,000 in the prior year[9] - The net profit attributable to equity holders for the six months ended February 28, 2019, was RMB 340.4 million, an increase of RMB 92.2 million or 37.1% compared to RMB 248.2 million in the same period of 2018[26] - Operating profit for the six months ended February 28, 2019, was RMB 376.0 million, compared to RMB 207.6 million in the same period of 2018[44] - The total comprehensive income for the period was RMB 363,920,000, with a profit of RMB 330,391,000[130] - The company reported a basic earnings per share of RMB 0.10 for the six months ended February 28, 2019, compared to RMB 0.06 for the same period in 2018[123] School Operations and Expansion - The company has been operating private schools in Henan Province for over 18 years, positioning itself as a major operator in the Central China region based on enrollment numbers[16] - The group operated 29 schools as of February 28, 2019, compared to 27 schools as of February 28, 2018, indicating a stable growth in the school network[20] - The group plans to continue improving educational infrastructure and expanding its school network to ensure quality education for students[19] - The increase in revenue was primarily due to higher enrollment and tuition fees from multiple schools, as well as the financial performance of acquired companies being consolidated into the group[27] - The group aims to explore potential acquisition targets or collaboration opportunities both in China and overseas to expand its school network[25] Acquisitions and Investments - The group completed the acquisition of Thai Education Holdings Co., Ltd. and Fareast Stamford International Co., Ltd. for approximately USD 27.87 million, which was finalized on February 28, 2019[17] - The group agreed to purchase 70% of the equity of Yubo Education for a cash consideration of RMB 107.1 million, aiming to acquire its wholly-owned subsidiary, Bowang High School[55] - The acquisition of 70% of Yubo Education was completed for a cash consideration of RMB 107,100,000[143] - The acquisition of TEDCO was finalized on February 12, 2019, for RMB 63,639,000, resulting in TEDCO becoming a subsidiary of China Yuhua Education Investment Limited[147] - Following the acquisition, the group holds 99.9999% equity in Fareast Stamford International Co., Ltd. (FES)[147] Financial Position and Cash Flow - Cash and cash equivalents increased by 340.5% to RMB 1,150.2 million as of February 28, 2019, compared to RMB 261.1 million as of February 28, 2018[50] - The current ratio as of February 28, 2019, was 1.22, up from 0.98 as of February 28, 2018[50] - The net cash flow from operating activities was RMB 312,702,000, compared to RMB 26,443,000 in the previous year[138] - The company reported a net cash outflow from investing activities of RMB 1,613,587,000, significantly higher than RMB 908,612,000 in the prior year[138] - The financing activities generated a net cash inflow of RMB 860,810,000, compared to RMB 523,511,000 in the previous year[138] Shareholder Information - The company declared an interim dividend of HKD 0.061 per share for the six months ended February 28, 2019, compared to HKD 0.047 per share in 2018[68] - The total number of issued shares as of February 28, 2019, was 3,284,758,210 shares[94] - The company’s directors and senior management hold significant stakes, with Mr. Li owning approximately 65.67% and Ms. Li owning approximately 65.82% of the company[91] - The company aims to enhance overall shareholder value through its stock option plan[109] Regulatory and Compliance - The board will closely monitor the implementation of the "Opinions on Deepening Reform and Standardizing Development of Preschool Education" issued by the Central Committee of the Communist Party of China and the State Council[16] - The company has established an audit committee to review and supervise financial reporting and risk management[71] - The company has not reported any updates on compliance with qualification requirements for foreign investors in Sino-foreign cooperative education institutions since the publication of the prospectus[88] Accounting Standards - The group has adopted new accounting standards effective from September 1, 2018, including IFRS 9 and IFRS 15, which require changes in accounting policies[158] - The company adopted IFRS 15 for revenue recognition starting September 1, 2018, which replaced IAS 18 and IAS 11, with no significant impact on retained earnings[188] - The company recognizes revenue when control of goods or services transfers to customers, with tuition and boarding fees generally collected in advance and recognized proportionally over the applicable course period[189] - The company assesses expected credit losses on trade receivables using a simplified approach under IFRS 9, recognizing lifetime expected losses upon initial recognition[186]