Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 683,617,000, representing a 22.9% increase from RMB 556,204,000 in 2023[3] - The cost of sales increased by 30.0% to RMB 493,682,000, compared to RMB 379,704,000 in the previous year[3] - Gross profit for the year was RMB 189,935,000, up 7.6% from RMB 176,500,000 in 2023[3] - Profit before tax decreased by 23.0% to RMB 84,859,000, down from RMB 110,146,000 in the prior year[3] - Net profit for the year was RMB 90,892,000, a decline of 19.2% from RMB 112,529,000 in 2023[3] - The group reported a total of RMB 71,628,000 in other income and gains for 2024, a decrease of 9.7% compared to RMB 79,155,000 in 2023[16] - The group's net profit for the year decreased by approximately 19.2% from about RMB 112.5 million to about RMB 90.9 million due to the aforementioned factors[60] Dividends - The company proposed a final dividend of HKD 0.013 per share for the year ended December 31, 2024[3] - The proposed final dividend for 2024 is HKD 0.013 per share, down from HKD 0.048 per share in 2023[27] - The board has proposed a final dividend of HKD 0.013 per share for the year ending December 31, 2024, down from HKD 0.048 per share for the previous year[73] Assets and Liabilities - Non-current assets increased to RMB 2,109,440,000 from RMB 1,968,597,000 in 2023[6] - Current liabilities totaled RMB 598,531,000, compared to RMB 567,248,000 in the previous year[6] - The net current liabilities amounted to RMB 177,322,000, worsening from RMB 70,163,000 in 2023[7] - Total equity increased slightly to RMB 1,657,429,000 from RMB 1,651,153,000 in the previous year[7] - Interest-bearing bank and other borrowings amounted to approximately RMB 181.2 million, with actual annual interest rates ranging from about 3.0% to 6.8%[62] - The group's current liabilities net increased by approximately 152.6% from about RMB 70.2 million to about RMB 177.3 million, mainly due to increased cash outflows for teaching and administrative facility construction and increased contract liabilities from tuition fees for the 2024/2025 academic year[61] Revenue Sources - Tuition fees contributed RMB 615,315,000 to total revenue, up from RMB 502,749,000, reflecting a growth of 22.4%[16] - The group has no significant revenue from any single customer exceeding 10% of total revenue for the year[15] - The group operates solely in China, with all revenue and long-term assets located in the region[14] Expenses - The group's employee benefits expenses rose to RMB 255,972,000 in 2024, up 18.3% from RMB 216,306,000 in 2023[23] - Sales and distribution expenses increased by approximately 56.6% from about RMB 27.2 million to about RMB 42.6 million, mainly due to increased promotional expenses resulting from a rise in the total number of full-time students[56] - Administrative expenses rose by approximately 7.9% from about RMB 81.1 million to about RMB 87.5 million, primarily due to an increase in employee costs and benefits by RMB 4.6 million[57] - The impairment loss on receivables increased to RMB 636,000 in 2024 from RMB 390,000 in 2023[34] Strategic Initiatives - The company aims to expand its campus network and vocational education market in the Guangdong-Hong Kong-Macao Greater Bay Area, which accounted for over 11% of the national economic output in 2023[45] - The company plans to establish a "Five-in-One" development model, integrating academic education, vocational training, and technical services to drive growth[50] - The company has initiated a plan to develop high-quality vocational education, targeting the establishment of a vocational university specializing in health and technology within the next decade[46] - The company is actively pursuing mergers and acquisitions of quality vocational institutions in the Greater Bay Area to enhance its network and operational synergies[47] - The company is exploring international cooperation to enhance the attractiveness and international characteristics of its programs[49] - The company is focusing on the integration of industry and education, with plans to establish 1,000 provincial-level industry-education integration communities in advanced manufacturing and modern agriculture[2] Compliance and Governance - The audit committee has reviewed the accounting principles and policies adopted by the group, discussing financial reporting matters[79] - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange regulations[77] - There were no significant events to report to shareholders from the end of the reporting period to the announcement date[72] - The company has not engaged in any buybacks or sales of its listed securities during the year ending December 31, 2024[74] Future Outlook - The company plans to allocate a total of HKD 446.0 million for various purposes, with 61.1% (HKD 272.6 million) designated for enhancing student capacity and purchasing teaching equipment[71] - The company has no plans for major investments or capital assets as of December 31, 2024[76] - The company will hold its annual general meeting on May 28, 2025, to approve the proposed final dividend[84] - The independent auditor's report will include a qualified opinion regarding certain promotional expenses due to insufficient evidence[82] - Annual performance announcements will be published on the Hong Kong Stock Exchange website and the company's website[86] - The annual report will include all information required by listing rules and will be made available to shareholders[86] - The board expresses gratitude to management, employees, shareholders, business partners, banks, and auditors for their support during the reporting period[87] - The board of directors includes executive directors and independent non-executive directors as of March 31, 2025[89]

Student Enrollment and Fees - The total number of full-time students in the group's schools for the 2023/2024 academic year was 28,907[16] - The average tuition fee for Lingnan Vocational and Technical College was RMB 17,187, and for Lingnan Modern Technician College, it was RMB 14,204 as of June 30, 2024[16] - The average accommodation fee for Lingnan Vocational and Technical College was RMB 2,048, and for Lingnan Modern Technician College, it was RMB 1,997 as of June 30, 2024[16] Academic Programs and Structure - Lingnan Vocational and Technical College integrated 13 secondary colleges into 8, added new majors such as Oral Medical Technology and Optometry Technology, and offers over 40 majors[12] - Lingnan Modern Technician College has 7 departments and offers over 27 majors, including Mechatronics, Unmanned Aerial Vehicles, and Big Data Applications[13] Revenue and Financial Performance - Revenue increased by 20.8% from RMB 277.9 million in the first half of 2023 to RMB 335.8 million in the first half of 2024, driven by an increase in the total number of full-time students and average tuition fees[27] - Cost of sales rose by 24.6% from RMB 161.9 million in the first half of 2023 to RMB 201.8 million in the first half of 2024, primarily due to increased staff costs, campus property management expenses, and depreciation of property, plant, and equipment[28] - Gross profit grew by 15.5% from RMB 116.0 million in the first half of 2023 to RMB 134.0 million in the first half of 2024, while gross margin decreased from 41.7% to 39.9% due to higher staff costs and campus expansion[29] - Other income and gains decreased by 21.0% from RMB 35.2 million in the first half of 2023 to RMB 27.8 million in the first half of 2024, mainly due to a reduction in training income and loan interest income[31] - Net profit for the period increased slightly by 0.4% from RMB 87.4 million in the first half of 2023 to RMB 87.8 million in the first half of 2024[37] - Revenue for the six months ended June 30, 2024, increased to RMB 335,761 thousand, up 20.8% from RMB 277,947 thousand in the same period in 2023[81] - Gross profit rose to RMB 133,971 thousand in 2024, compared to RMB 116,015 thousand in 2023, reflecting a 15.5% increase[81] - Net profit attributable to owners of the company for the six months ended June 30, 2024, was RMB 87,722 thousand, slightly up from RMB 87,341 thousand in 2023[82] - Revenue from tuition fees increased to RMB 302,546 thousand in the first half of 2024, up from RMB 251,297 thousand in the same period of 2023, representing a growth of approximately 20.4%[97] - Total revenue from customer contracts reached RMB 335,761 thousand in the first half of 2024, compared to RMB 277,947 thousand in the same period of 2023, an increase of 20.8%[97] - Revenue from boarding fees rose to RMB 29,296 thousand in the first half of 2024, up from RMB 21,824 thousand in the same period of 2023, a growth of 34.2%[97] - Other income and gains decreased to RMB 27,832 thousand in the first half of 2024, down from RMB 35,202 thousand in the same period of 2023, a decline of 20.9%[97] Expenses and Costs - Sales and distribution expenses increased by 35.4% from RMB 9.9 million in the first half of 2023 to RMB 13.4 million in the first half of 2024, driven by higher employee costs and advertising expenses[32] - Administrative expenses rose by 20.9% from RMB 36.3 million in the first half of 2023 to RMB 43.9 million in the first half of 2024, primarily due to increased employee costs[33] - Other expenses surged by 53.8% from RMB 9.1 million in the first half of 2023 to RMB 14.0 million in the first half of 2024, mainly due to higher training costs and exchange losses[35] - Employee benefit expenses, including wages and salaries, increased to RMB 117,609 thousand in the first half of 2024, up from RMB 90,387 thousand in the same period of 2023, a rise of 30.1%[103] - Depreciation of property, plant, and equipment rose to RMB 33,064 thousand in the first half of 2024, compared to RMB 28,403 thousand in the same period of 2023, an increase of 16.4%[103] - Government grants related to assets and income decreased to RMB 3,525 thousand in the first half of 2024, down from RMB 4,059 thousand in the same period of 2023, a decline of 13.2%[103] Expansion and Strategic Plans - The company plans to expand its campus network in the Greater Bay Area, focusing on both academic and non-academic vocational education markets, to solidify its position as a leading vocational education provider[20] - The company aims to upgrade Lingnan Vocational and Technical College to a vocational and technical university, with plans to introduce undergraduate programs and establish an innovation talent training model in collaboration with enterprises[21] - The company will pursue mergers and acquisitions to expand its network, targeting high-quality technical schools and non-academic vocational training institutions within the Greater Bay Area[23] - The company is expanding auxiliary education services, including adult continuing education and vocational skill certification training, with 28 social training evaluation outlets established across 9 cities in Guangdong Province[24] - The company is exploring international cooperation in vocational education, focusing on partnerships with institutions in Hong Kong, Macau, Singapore, and the EU to enhance program attractiveness and internationalization[25] - The company is transitioning to a "five-in-one" development model, integrating academic education, vocational training, and technical services, while exploring opportunities in training, talent dispatch, health, e-commerce, and public welfare[26] Financial Position and Assets - Net current assets increased by 171.2% from a net current liability of RMB 70.2 million at the end of 2023 to net current assets of RMB 50.0 million at the end of June 2024[37] - Interest-bearing bank and other borrowings stood at RMB 184.0 million as of June 30, 2024, with interest rates ranging from 3.1% to 6.8% per annum[39] - The leverage ratio decreased from 12.6% at the end of 2023 to 10.9% at the end of June 2024, primarily due to a reduction in interest-bearing bank and other borrowings[45] - Total assets as of June 30, 2024, stood at RMB 1,969,543 thousand, compared to RMB 1,898,434 thousand as of December 31, 2023[83] - Cash and cash equivalents decreased to RMB 271,133 thousand as of June 30, 2024, from RMB 421,417 thousand as of December 31, 2023[83] - Non-current assets totaled RMB 1,919,586 thousand as of June 30, 2024, down from RMB 1,968,597 thousand as of December 31, 2023[83] - Current liabilities decreased significantly to RMB 345,180 thousand as of June 30, 2024, from RMB 567,248 thousand as of December 31, 2023[83] - Net current assets improved to RMB 49,957 thousand as of June 30, 2024, compared to a net current liability of RMB (70,163) thousand as of December 31, 2023[83] - Non-current liabilities increased to RMB 288,765 thousand as of June 30, 2024, from RMB 247,281 thousand as of December 31, 2023[84] - Equity attributable to owners of the company increased to RMB 1,669,292 thousand as of June 30, 2024, from RMB 1,639,720 thousand as of December 31, 2023[84] - The company's total equity increased to RMB 1,680,778,000 as of June 30, 2024, compared to RMB 1,651,153,000 at the end of 2023, reflecting a growth of RMB 29,625,000[85] - Retained profits rose to RMB 1,091,977,000 as of June 30, 2024, up from RMB 1,014,378,000 at the end of 2023, an increase of RMB 77,599,000[85] - The company declared a final dividend of RMB 58,076,000 for 2023, which was deducted from the capital reserve - share premium[85] - The company's capital reserve - share premium decreased to RMB 288,819,000 as of June 30, 2024, from RMB 346,895,000 at the end of 2023, due to the dividend payment[85] - The company's foreign exchange fluctuation reserve decreased to RMB (555,000) as of June 30, 2024, from RMB (481,000) at the end of 2023, reflecting a loss of RMB 74,000[85] - The company's statutory and other surplus reserves increased to RMB 283,458,000 as of June 30, 2024, from RMB 273,335,000 at the end of 2023, reflecting a transfer from retained profits[85] - The company's non-controlling interests increased to RMB 362,000 as of June 30, 2024, from RMB 309,000 at the end of 2023, reflecting a growth of RMB 53,000[85] Cash Flow and Financing - Net cash generated from operating activities was RMB 32,328,000 for the six months ended June 30, 2023, compared to a net cash outflow of RMB 6,195,000 for the same period in 2024[87] - Depreciation of property, plant, and equipment increased to RMB 33,064,000 for the six months ended June 30, 2024, up from RMB 28,403,000 in the same period of 2023[87] - Operating cash flow for the six months ended June 30, 2024 was a net outflow of RMB 6,195 thousand, compared to a net inflow of RMB 32,328 thousand in the same period of 2023[88] - Net cash outflow from investing activities was RMB 61,506 thousand for the six months ended June 30, 2024, compared to a net inflow of RMB 69,961 thousand in the same period of 2023[88] - Net cash outflow from financing activities was RMB 80,614 thousand for the six months ended June 30, 2024, compared to a net inflow of RMB 42,208 thousand in the same period of 2023[88] - Cash and cash equivalents decreased by RMB 148,315 thousand in the six months ended June 30, 2024, compared to an increase of RMB 144,497 thousand in the same period of 2023[88] Corporate Governance and Shareholding - The company had 1,585 employees as of June 30, 2024, with compensation policies regularly reviewed and aligned with industry standards[46] - The company's directors and senior executives held significant equity interests, with Mr. He Huishan holding 46.48% and Ms. He Huifen holding 14.24% of the company's shares[48] - He Huishan holds 18,000,000 shares in Guangzhou Lingnan Education Group Limited, representing a 60.00% stake[51] - He Huifen holds 6,000,000 shares in Guangzhou Lingnan Education Group Limited, representing a 20.00% stake[51] - Zhihui Guang holds 570,000,000 shares in the company, representing a 42.73% stake[53] - Zhou Lanqing, through controlled entities, holds 570,000,000 shares, representing a 42.73% stake, and an additional 50,000,000 shares through spousal interests, representing a 3.75% stake[53] - China Foreign Education holds 190,000,000 shares, representing a 14.24% stake[53] - Han Liqing, through spousal interests, holds 190,000,000 shares, representing a 14.24% stake[53] - Fangyuan Education holds 190,000,000 shares, representing a 14.24% stake[53] - Du Wenyu, through spousal interests, holds 190,000,000 shares, representing a 14.24% stake[53] - The company has a share option plan approved on June 23, 2021, aimed at incentivizing key personnel and retaining talent[56] - The maximum number of shares that may be issued upon the exercise of all options under the plan and any other plans of the group shall not exceed 10% of the total issued shares as of July 13, 2021, which is 133,400,000 shares[57] - The remaining term of the plan is approximately six years as of the report date, and no options have been granted, exercised, canceled, or lapsed under the plan since its adoption[58] - The company has adopted corporate governance practices in line with the Corporate Governance Code and complied with all code provisions during the reporting period[69] - The company's audit committee and management reviewed the accounting principles, policies, and unaudited condensed consolidated financial statements for the six months ended June 30, 2024[72] - Mr. Qiu Jun resigned as CFO effective January 12, 2024, and Mr. Hu Zhenhua was appointed as CFO effective August 28, 2024[73] - No competitive business or conflicts of interest involving directors or their associates during the reporting period[79] - The company is monitoring regulatory changes and ensuring compliance with relevant rules and regulations for future acquisitions[80] Dividends and Shareholder Information - The company has proposed an interim dividend of 2.2 HK cents per share for the six months ended June 30, 2024, payable on September 30, 2024[63] - The company will suspend share registration from September 12, 2024, to September 13, 2024, to qualify for the proposed interim dividend[64] - The company declared an interim dividend of 2.2 HK cents per ordinary share, totaling approximately RMB 26,788 thousand, compared to no dividend in the same period in 2023[108] Regulatory and Compliance - The revised Vocational Education Law in 2022 emphasizes the equal importance of vocational education and general education, encouraging multi-level and multi-form vocational education[17] - The government's policy supports the development of vocational education, aiming to cultivate high-quality technical and skilled talents to meet market demands[17] - The company is applying for approval to establish a new school in California and considering other plans to meet qualification requirements[76] - The company's contractual arrangements remain compliant with the Foreign Investment Law, with no updates to related regulations during the reporting period[77] - The company is monitoring regulatory changes and ensuring compliance with relevant rules and regulations for future acquisitions[80] Miscellaneous - The company has reallocated HKD 209.6 million originally intended for land acquisition to the construction of teaching and administrative facilities and the purchase of teaching equipment[60] - The net proceeds from the global offering of ordinary shares amounted to approximately HKD 446.0 million, after deducting underwriting commissions and other expenses[60] - The company has allocated 14.1% (HKD 63.0 million) of the net proceeds to the construction of teaching and administrative facilities and the purchase of teaching equipment[60] - 25.9% (HKD 115.4 million) of the net proceeds has been allocated to the acquisition of other schools and education service providers to expand the school network[60] - The company has not identified any significant events requiring shareholders' attention between the end of the reporting period and the report date[59] - No purchase, redemption, or sale of any listed securities by the company or its subsidiaries during the six months ended June 30, 2024[66] - No significant investments or future plans for capital asset investments as of June 30, 2024[68] - The company's main business is investment holding and providing private higher vocational education in China[89] - The unaudited interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and presented in RMB, rounded to the nearest thousand[90] - The company adopted revised HKFRS 16, HKAS 1 (2020 amendments), HKAS 1 (2022 amendments), and HKAS 7 during the period, with no material impact on financial position or performance[91][92][93] - The company operates in a single segment, providing higher vocational education services in China, with all revenue and long-term assets/capital expenditures derived from/located in China[94][95] - The company did not have any single customer contributing 10% or more of its total revenue during the reporting period[96] - Contract liabilities at the end of June 2024 stood at RMB 71,062 thousand, compared to RMB 234,117 thousand at the end of December 2023, a significant decrease of 69.6%[100] - Revenue recognized from the beginning contract liabilities balance in the first half of 2024 was RMB 232,439 thousand, up from RMB 176,381 thousand in the same period of 2023, an increase of 31.8%[101] - The company's income tax expense in mainland China for the six months ended June 30, 2024, was RMB 257 thousand, a significant decrease from RMB 1,772 thousand in the same period in 2023[108] - The basic and diluted earnings per share for the six months ended June 30, 2024, were calculated based on a profit attributable to ordinary shareholders of RMB 87,722 thousand, slightly higher than RMB 87,341 thousand in the same period in 2023[109] - The weighted average number of ordinary shares used in calculating basic and diluted earnings per share remained unchanged at 1,334,000,000 shares for both 2024 and 2023[110] - The company sold assets with a net book

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 335,761,000, representing an increase of 20.8% compared to RMB 277,947,000 for the same period in 2023[2] - Gross profit for the same period was RMB 133,971,000, up 15.5% from RMB 116,015,000 year-on-year[2] - Profit before tax decreased by 5.5% to RMB 84,475,000 from RMB 89,363,000 in the previous year[2] - Net profit for the period was RMB 87,775,000, slightly up by 0.4% from RMB 87,405,000 in the prior year[2] - Basic and diluted earnings per share remained unchanged at RMB 0.07[2] - Other income for the six months ended June 30, 2024, totaled RMB 27,832,000, a decrease from RMB 35,202,000 in the same period of 2023[17] - The group reported a net loss of RMB 3,300,000 in tax expenses for the six months ended June 30, 2024, compared to a tax expense of RMB 1,958,000 in the same period of 2023[27] - The group experienced a foreign exchange loss of RMB 1,895,000 for the six months ended June 30, 2024, compared to a gain of RMB 240,000 in the same period of 2023[22] - The group recognized government grants without any attached conditions, contributing positively to financial performance[23] Revenue Sources - Tuition fees contributed RMB 302,546,000, up 20.4% from RMB 251,297,000 in the previous year[17] - Accommodation fees increased to RMB 29,296,000, representing a 34.0% rise from RMB 21,824,000[17] - The recognized revenue from contract liabilities for the period was RMB 232,439,000, up from RMB 176,381,000 in the prior year[20] Expenses and Costs - Sales costs rose by approximately 24.6%, from about RMB 161.9 million to about RMB 201.8 million, primarily due to increased employee costs and property management expenses[45] - Selling and distribution expenses increased by approximately 35.4%, from about RMB 9.9 million to about RMB 13.4 million, driven by higher marketing staff costs and advertising expenses[48] - Administrative expenses rose by approximately 20.9%, from about RMB 36.3 million to about RMB 43.9 million, primarily due to increased administrative staff costs[49] - Other expenses increased by approximately 53.8%, from about RMB 9.1 million to about RMB 14.0 million, mainly due to higher training costs and foreign exchange losses[50] Assets and Liabilities - Total assets less current liabilities as of June 30, 2024, amounted to RMB 1,969,543,000, an increase from RMB 1,898,434,000 at the end of 2023[6] - Non-current liabilities increased to RMB 288,765,000 from RMB 247,281,000 year-on-year[6] - Cash and cash equivalents decreased to RMB 271,133,000 from RMB 421,417,000 at the end of 2023[5] - Accounts receivable at the end of the reporting period was RMB 2,823,000 for 2024, a decrease from RMB 5,018,000 in 2023[29] Dividends and Shareholder Returns - The company declared an interim dividend of 2.2 HK cents per share for the six months ended June 30, 2024, compared to zero for the same period in 2023[2] - The board declared an interim dividend of HKD 0.022 per ordinary share, totaling approximately RMB 26,788,000 for the six months ended June 30, 2024, while no dividend was declared for the same period in 2023[27] Employee and Operational Insights - The group's employee benefits expenses (excluding directors and senior management) increased to RMB 132,082,000 for the six months ended June 30, 2024, up from RMB 100,841,000 in the same period of 2023, representing a growth of 31%[22] - The company has a total of 1,585 employees as of June 30, 2024, with a focus on performance-based compensation and employee training[60] Strategic Plans and Developments - The company plans to expand its vocational education network in the Greater Bay Area, focusing on high-quality development and establishing new campuses[39] - The company aims to pursue acquisitions of quality vocational schools in the Greater Bay Area to enhance its network and create synergies[40] - The company is actively exploring international cooperation to enhance the attractiveness of its programs and courses[42] Compliance and Governance - The board confirmed compliance with corporate governance codes and standards throughout the reporting period[72] - There were no impacts on the group's financial position or performance from the recent amendments to the Hong Kong Financial Reporting Standards[12]

Financial Performance - The group reported total revenue of RMB 556,204,000 for the fiscal year ending December 31, 2023, representing a year-on-year increase of 7.7% from RMB 516,276,000 in 2022[14]. - The cost of revenue increased to RMB 379,704,000, up 18.9% from RMB 319,436,000 in the previous year, leading to a gross profit of RMB 176,500,000, a decrease of 10.4% compared to RMB 196,840,000 in 2022[14]. - The group recorded a profit before tax of RMB 110,146,000, down 25.7% from RMB 148,267,000 in the prior year[14]. - The group's gross profit decreased by approximately 10.3% from about RMB 196.8 million to approximately RMB 176.5 million, with the gross margin dropping from about 38.1% to approximately 31.7%[46]. - Other income and gains fell by approximately 7.9% from about RMB 86.0 million to approximately RMB 79.2 million, primarily due to a decrease in rental income of RMB 6.5 million[47]. - The group's net profit for the year decreased by approximately 21.2% from about RMB 142.7 million to approximately RMB 112.5 million[55]. Student Enrollment and Educational Offerings - The total number of full-time students enrolled for the 2023/2024 academic year was 28,907, with 73.8% studying in TMT and healthcare-related fields[5]. - The total number of full-time students for the 2023/2024 academic year reached 28,907, with Lingnan Modern Vocational College's enrollment increasing by 47.9% to 13,218 students[17]. - Average tuition fees for Lingnan Vocational Technical College decreased by 0.2% to RMB 17,310, while Lingnan Modern Vocational College's average tuition fee increased by 4.9% to RMB 13,699[17]. - The group operates two schools in the Greater Bay Area, focusing on vocational education and training, with a diverse range of over 74 programs offered[5][7]. - The group aims to enhance its educational services through continued integration of industry and education, emphasizing practical skills and employability[5]. - Future strategies include expanding educational offerings and enhancing partnerships with industries to better align with market demands[5]. Financial Position and Liabilities - Non-current assets increased to RMB 1,968,597,000 as of December 31, 2023, compared to RMB 1,808,876,000 in 2022, reflecting a growth of 8.8%[14]. - Current liabilities rose to RMB 567,248,000, an increase of 17.6% from RMB 482,641,000 in the previous year[14]. - The net asset value of the group reached RMB 1,651,153,000, up from RMB 1,539,190,000 in 2022, indicating a growth of 7.3%[14]. - Interest-bearing bank and other borrowings amounted to approximately RMB 207.6 million, with actual annual interest rates ranging from about 4.0% to 6.8%[59]. - The leverage ratio decreased from approximately 13.7% to about 12.6%, primarily due to a reduction in interest-bearing bank and other borrowings[67]. Strategic Initiatives and Future Plans - The group initiated a strategy to upgrade Lingnan Vocational College to a vocational undergraduate institution, requiring targeted control of student numbers and increased investment in infrastructure and faculty[17]. - The group plans to implement strategies over the next five years, including accelerating the upgrade of Lingnan Vocational Technical College, expanding non-degree vocational training, and exploring partnerships with leading industry companies[20]. - The group aims to create an industry-education integration ecosystem to cultivate high-quality technical talent for the Guangdong-Hong Kong-Macao Greater Bay Area[20]. - The company aims to expand its campus network through acquisitions, prioritizing high-quality vocational schools and non-degree training institutions in the Greater Bay Area[40]. - The company plans to enhance its vocational education offerings by transitioning to a higher education model, with the Lingnan Vocational Technical College aiming to establish undergraduate programs[40]. Governance and Compliance - The company has established a robust governance structure to ensure effective oversight and management of its operations[114]. - The management emphasizes the importance of governance and compliance, with board members holding relevant qualifications and certifications[111][112]. - The board of directors includes independent non-executive directors who provide independent opinions and judgments[101][103][106]. - The company has confirmed compliance with the non-competition commitments made by its controlling shareholders until December 31, 2023[169]. Shareholder Information and Dividends - The board has proposed a final cash dividend of HKD 0.048 per share, subject to shareholder approval at the annual general meeting[124]. - The company has adopted a dividend policy without a predetermined payout ratio, considering various factors such as financial performance and cash flow[124]. - As of December 31, 2023, the company's distributable reserves amounted to approximately RMB 337.4 million[123]. Property Leasing and Agreements - The company has entered into several property leasing agreements, including a new agreement with Yangsheng Valley for a property rental from September 1, 2023, to August 31, 2024, at a monthly rent of RMB 42.12 per square meter[178]. - The existing property leasing agreements with Yangsheng Valley have a rental rate of RMB 40.11 per square meter, with a 5% annual increase for subsequent academic years[180]. - The total building area for the new property leasing agreements is approximately 15,912 square meters, which includes properties used for elderly care and administrative offices[182]. - The company has complied with the disclosure requirements of the Listing Rules regarding related party transactions and continuous related party transactions[174]. Market Expansion and Innovation - The company plans to expand its market presence by opening three new vocational training centers in the next fiscal year, targeting a 20% increase in regional market share[85]. - New product offerings include a digital learning platform, which is expected to enhance student engagement and improve learning outcomes, with a projected adoption rate of 30% among current students[85]. - The company has allocated 100 million RMB for research and development in innovative educational technologies over the next two years[85]. - A strategic partnership with local businesses aims to create internship opportunities for students, potentially increasing job placement rates by 25%[85]. - The management team highlighted a focus on enhancing online learning capabilities, with a goal to increase online course offerings by 40%[85].

Financial Performance - For the fiscal year ending December 31, 2023, the total revenue was RMB 556,204,000, representing a 7.7% increase from RMB 516,276,000 in 2022[4] - The cost of sales increased by 18.9% to RMB 379,704,000, up from RMB 319,436,000 in the previous year[4] - Gross profit decreased by 10.3% to RMB 176,500,000, compared to RMB 196,840,000 in 2022[4] - Profit before tax fell by 25.7% to RMB 110,146,000, down from RMB 148,267,000 in the prior year[4] - Net profit for the year was RMB 112,529,000, a decrease of 21.1% from RMB 142,652,000 in 2022[4] - Revenue increased by approximately 7.7% from about RMB 516.3 million to approximately RMB 556.2 million due to an increase in full-time student enrollment[55] - Net profit decreased by approximately 21.2% from about RMB 142.7 million to approximately RMB 112.5 million due to the aforementioned factors[64] Assets and Liabilities - Non-current assets increased to RMB 1,968,597,000 from RMB 1,808,876,000 in 2022, reflecting a growth of 8.8%[7] - Current assets decreased to RMB 497,085,000 from RMB 528,899,000 in the previous year, a decline of 6.0%[7] - Total liabilities increased to RMB 567,248,000 from RMB 482,641,000 in 2022, representing an increase of 17.6%[7] - The company's total equity rose to RMB 1,651,153,000 from RMB 1,539,190,000 in the previous year, an increase of 7.3%[8] - The group recorded a net current liability of RMB 70,163,000 as of December 31, 2023, including contract liabilities of RMB 234,117,000 related to educational services[11] - As of December 31, 2023, the company's net current liabilities amounted to approximately RMB 70.2 million, a decrease of about 251.6% compared to RMB 46.3 million on December 31, 2022[65] - Current assets decreased from approximately RMB 528.9 million on December 31, 2022, to about RMB 497.1 million on December 31, 2023, primarily due to increased prepayments for teaching and administrative facilities[65] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.048 per share for the fiscal year ending December 31, 2023[5] - The proposed final dividend for 2023 is HKD 0.048 per share, amounting to RMB 58,076,000, compared to no dividend in 2022[30] - The board has proposed a final dividend of HKD 0.048 per share for the year ending December 31, 2023, compared to zero for the previous year[81] - The annual general meeting is scheduled for May 28, 2024, where the proposed final dividend will be subject to shareholder approval[90] Operational Highlights - Tuition fees contributed RMB 502,749,000, up from RMB 468,257,000, reflecting a growth of 7.4%[21] - The total number of full-time students in the 2023/2024 academic year reached 28,907, with average tuition fees of RMB 17,310 and accommodation fees of RMB 1,900 for Lingnan Vocational Technical College[42] - The company has established a good integration with leading enterprises in vocational education, indicating potential for future growth[46] - The company plans to expand its campus network and vocational education market in the Greater Bay Area, focusing on both academic and non-academic vocational training[47] Expenses and Costs - Employee benefits expenses totaled RMB 216,306,000, an increase of 11% from RMB 194,684,000 in the previous year[26] - Selling and distribution expenses increased by approximately 28.3% from about RMB 21.2 million to approximately RMB 27.2 million, driven by higher marketing staff bonuses[60] - Administrative expenses rose by approximately 6.9% from about RMB 75.9 million to approximately RMB 81.1 million, attributed to increased office and consulting expenses[61] - Other expenses increased by approximately 7.7% from about RMB 23.5 million to approximately RMB 25.3 million, mainly due to higher employee costs[62] Taxation and Deferred Tax - The income tax expense for the year ended December 31, 2023, decreased by RMB 128,000 compared to RMB 269,000 in 2022[17] - Deferred tax assets increased by RMB 1,044,000 as of December 31, 2023, compared to RMB 1,172,000 in 2022[16] Governance and Compliance - The company has adhered to all principles and code provisions of the Corporate Governance Code during the reporting period[85] - The audit committee, along with management, reviewed the accounting principles and policies adopted by the group, discussing financial reporting matters[87] Future Outlook and Strategy - The company plans to extend the expected timeline for utilizing the net proceeds from 2022-2023 to 2022-2025 due to ongoing strategic acquisition opportunities[78] - The group aims to expand its network through acquisitions of quality vocational schools in the Greater Bay Area, enhancing scale and synergy[50] - The company will continue to explore various acquisition opportunities that bring value, using net proceeds and its own funds for acquisitions, unaffected by the extended timeline for utilizing net proceeds[79]

Revenue and Income - Total revenue for the six months ended June 30, 2023, was RMB 277,947,000, an increase of 5.2% from RMB 264,548,000 for the same period in 2022[3] - Tuition fees generated revenue of RMB 251,297,000, up from RMB 239,584,000, reflecting a growth of 4.7% year-on-year[3] - Boarding fees increased to RMB 21,824,000 from RMB 20,563,000, representing a growth of 6.1%[3] - Training income rose significantly to RMB 11,172,000, compared to RMB 5,559,000 in the previous year, marking an increase of 100.1%[3] - The total other income and gains for the period was RMB 35,202,000, an increase from RMB 29,665,000 in the previous year[3] - The company reported a net foreign exchange gain of RMB 240,000, which was not recorded in the previous period[3] - The company received government grants related to assets amounting to RMB 2,641,000, slightly down from RMB 2,730,000 in the previous year[3] Expenses and Profitability - Sales costs rose by approximately 14.3% from RMB 141.7 million to RMB 161.9 million, driven by increased employee costs and expanded cooperative education programs[47] - Gross profit decreased by approximately 5.6% from RMB 122.9 million to RMB 116.0 million, with gross margin declining from approximately 46.4% to 41.7%[48] - Selling and distribution expenses rose by approximately 15.1% from RMB 8.6 million to RMB 9.9 million, attributed to increased enrollment costs and higher salaries for marketing staff[52] - Administrative expenses increased by approximately 5.2% from RMB 34.5 million to RMB 36.3 million, primarily due to higher consulting costs and increased employee salaries[53] - Net profit for the period decreased by approximately 5.4% from RMB 92.4 million to RMB 87.4 million due to the aforementioned factors[56] Assets and Liabilities - Current assets increased by approximately 180.0% to RMB 129.6 million as of June 30, 2023, compared to RMB 46.3 million as of December 31, 2022, due to loan repayments and increased cash[57] - The group's current liabilities decreased by RMB 70.8 million to approximately RMB 411.8 million, mainly reflecting a reduction in contract liabilities due to recognized tuition and accommodation fees[64] - The group's interest-bearing bank and other borrowings amounted to approximately RMB 258.8 million, with effective annual interest rates ranging from approximately 4.2% to 6.8%[65] - The group's leverage ratio increased from approximately 13.7% as of December 31, 2022, to approximately 15.9% as of June 30, 2023, primarily due to an increase in short-term interest-bearing bank loans[73] Shareholder Information - Major shareholders include Zhihui Guang and Ms. Zhou Lanqing, each holding 570,000,000 shares, representing 42.73% of the company's equity[83] - The total number of issued shares as of June 30, 2023, is 1,334,000,000[83] - A share option plan was conditionally approved by shareholders on June 23, 2021, to incentivize eligible individuals[86] - The plan allows for the issuance of options to various eligible individuals, including employees and directors, to enhance their contributions to the company[91] Future Plans and Market Position - The group plans to expand its campus network and vocational education market in the Greater Bay Area, aiming to increase market share[37] - Lingnan Vocational Technical College aims to upgrade to a vocational technical university by introducing undergraduate programs[38] - The group is actively seeking new educational sites in the Greater Bay Area to expand its vocational education offerings[38] - The group’s vocational education business aligns with national policies, indicating significant future growth potential[36] Regulatory and Compliance - The company plans to monitor regulatory changes closely to mitigate compliance risks associated with the 2016 Decision and 2021 Implementation Regulations[125] - The board confirmed that there were no conflicts of interest among directors or their associates during the reporting period[129] - The company has adhered to all corporate governance codes during the reporting period[110] Cash Flow and Investments - The operating cash flow for the six months ended June 30, 2023, was RMB 29,383,000, compared to RMB 16,890,000 for the same period in 2022, representing an increase of 74.4%[150] - The net cash flow from investing activities was RMB 72,906,000, a significant improvement from a net outflow of RMB 111,120,000 in the previous year[150] - The company’s cash flow from financing activities was RMB 42,208,000, a recovery from a net outflow of RMB 105,671,000 in the previous year[150] Financial Performance Summary - Profit before tax for the six months ended June 30, 2023, was RMB 89,363,000, compared to RMB 93,892,000 in 2022, reflecting a decline of approximately 4.5%[127] - Total comprehensive income for the period was RMB 87,410,000, compared to RMB 92,676,000 in 2022, representing a decline of approximately 5.7%[127] - The company reported a net profit attributable to ordinary shareholders of RMB 87,341,000 for the six months ended June 30, 2023, compared to RMB 92,462,000 for the same period in 2022, indicating a decrease of 5.5%[191]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 SOUTH CHINA VOCATIONAL EDUCATION GROUP COMPANY LIMITED 中國華南職業教育集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6913） 截至二零二三年六月三十日止六個月中期業績公告 中國華南職業教育集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣 佈本公司及其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月（「報 告期間」）的未經審核中期簡明綜合財務報表，連同二零二二年同期的比較數字。 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 變動 百分比變動 人民幣千元 人民幣千元 人民幣千元 (%) （未經審核） （未經審核） （經重列） 收益 277,947 264,548 13,399 +5.1 銷售成本 161,932 141,691 20,241 +14.3 毛利 116,015 122,857 (6,8 ...

Financial Performance - The total revenue for the fiscal year 2022 was RMB 516,276,000, representing a year-on-year increase of 3.4% compared to RMB 499,621,000 in 2021[15]. - The gross profit for 2022 was RMB 196,840,000, which is a decrease of 2.4% from RMB 201,614,000 in the previous year[15]. - The net profit for the year was RMB 142,921,000, down 7.2% from RMB 153,938,000 in 2021[15]. - Revenue for the year ended December 31, 2022, increased by approximately 3.3% to RMB 516.3 million, driven by growth in student enrollment and average tuition fees[18]. - The overall gross profit margin of the group experienced a decline during the reporting period, viewed as a necessary short-term adjustment for long-term stability[18]. - The group’s sales cost increased by approximately 7.2% from about RMB 298.0 million to approximately RMB 319.4 million, primarily due to the expansion of adult education business and increased depreciation costs[47]. - Gross profit decreased by approximately 2.4% from about RMB 201.6 million to approximately RMB 196.8 million, with the gross margin declining from about 40.4% to approximately 38.1%[49]. - Other income and gains decreased by approximately 23.4% from about RMB 112.2 million to approximately RMB 86.0 million, mainly due to a reduction in rental income[50]. - Selling and distribution expenses increased by approximately 11.0% from about RMB 19.1 million to approximately RMB 21.2 million, primarily due to increased employee bonuses[51]. - Administrative expenses decreased by approximately 19.3% from about RMB 94.1 million to approximately RMB 75.9 million, mainly due to reduced listing expenses[52]. - Financing costs decreased by approximately 21.3% from about RMB 17.8 million to approximately RMB 14.0 million, corresponding to a reduction in interest-bearing bank and other borrowings[55]. - Net profit for the year decreased by approximately 7.1% from about RMB 153.9 million to approximately RMB 142.9 million[56]. Student Enrollment and Educational Services - The total number of full-time students enrolled in the 2022/2023 academic year was 26,743, with 76.5% studying in TMT and health-related fields[5]. - Total full-time students enrolled in the 2022/2023 academic year reached 26,743, with enrollment at Lingnan Modern Vocational College increasing by 29.6% to 10,239 students[18]. - The company plans to expand its educational offerings and improve student employability through diversified vocational training programs[5]. - The group aims to enhance its educational services by integrating industry and education, promoting collaboration between schools and enterprises[5]. - The group aims to create an industry-education integration ecosystem to cultivate high-quality technical talent for the Guangdong-Hong Kong-Macao Greater Bay Area[21]. - The company aims to establish around 1,000 high-quality vocational schools within 3 to 5 years, enhancing the overall quality and management of vocational education[34]. - The company is focused on expanding training services and online education through mergers and acquisitions, aiming to establish a provincial-level industry-education integration demonstration park[22]. Strategic Plans and Future Outlook - The group plans to implement key strategies over the next five years, including accelerating the upgrade of Lingnan Vocational Technical College, expanding middle vocational education through a light asset model, and exploring partnerships with leading industry companies[21]. - The management has provided an optimistic outlook, projecting a revenue growth of 12% for the next fiscal year[87]. - Future guidance indicates a projected revenue growth of 20% for the next fiscal year[101]. - The company plans to expand its market presence by opening three new campuses in the next fiscal year, targeting a 20% increase in total enrollment[86]. - A strategic acquisition of a local education firm is expected to be finalized by Q2 2023, which will add an estimated 200 million RMB in annual revenue[94]. - The company is exploring potential acquisitions to strengthen its market position, with a focus on companies in the education sector[102]. Investments and Acquisitions - The company completed the acquisition of 80% of Qingyuan Lingnan Youjia Automobile Training Co., Ltd. for a total consideration of RMB 3,600,000, aimed at expanding its educational network and services[67]. - The net proceeds from the global offering of ordinary shares amounted to approximately HKD 446.0 million, which will be reallocated for building educational facilities and acquiring other schools[70]. - The revised allocation of net proceeds includes 55.0% (HKD 245.3 million) for land acquisition, 12.0% (HKD 53.5 million) for educational facilities, and 20.0% (HKD 89.2 million) for acquiring other educational service providers[71]. - The company is actively exploring strategic acquisition opportunities to expand its educational network, particularly in the Greater Bay Area[75]. Corporate Governance and Compliance - The board has approved a budget of 30 million RMB for research and development in educational technologies over the next two years[93]. - The board of directors is committed to enhancing corporate governance and transparency in financial reporting[105]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence during the reporting period[139]. - The company has complied with the disclosure requirements for related party transactions as per the listing rules[172]. - The controlling shareholders have confirmed compliance with the non-competition commitments from the date of the non-competition agreement until December 31, 2022[167]. Shareholder Information - As of December 31, 2022, Mr. He Huishan holds 620,000,000 shares, representing approximately 46.48% of the company's equity[142]. - Ms. He Huifen holds 190,000,000 shares, accounting for approximately 14.24% of the company's equity[142]. - Major shareholders include Zhihui Guang and Ms. Zhou Lanqing, each holding 570,000,000 shares, representing 42.73% of the total shares[147]. - The total number of issued shares of the company as of December 31, 2022, is 1,334,000,000 shares[143]. Environmental and Social Responsibility - The company emphasizes environmental protection and compliance with current environmental laws and regulations[116]. - The company made charitable donations of approximately RMB 0.9 million during the reporting period[126].

Student Enrollment and Education Services - The total number of full-time students in the group’s schools for the 2021/2022 academic year was 25,797[17] - The average tuition fees for Lingnan Vocational Technical College and Lingnan Modern Technician College were RMB 16,429 and RMB 10,838, respectively[17] - The average boarding fees for the two colleges were RMB 1,641 and RMB 1,586, respectively[17] - The group operates two schools in the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on vocational education and training[11] - The company emphasizes the positive policy environment for vocational education, highlighting government support for the sector[18] - The group aims to enhance its educational offerings by integrating industry and education, promoting school-enterprise cooperation[18] - The company plans to develop high-level vocational colleges and programs to meet the growing demand for skilled talent[18] - The group is positioned to benefit from the implementation of the Private Education Promotion Law, which encourages investment in vocational education[18] - The company is committed to expanding its educational services, including continuing education and vocational skills certification training[15] - The company is committed to developing vocational education in the Guangdong-Hong Kong-Macao Greater Bay Area, which contributed 11.0% of China's nominal GDP in 2021 despite accounting for less than 1% of the country's land area[26] Financial Performance - The company's revenue decreased by approximately 7.5% from about RMB 286.0 million for the six months ended June 30, 2021, to about RMB 264.5 million for the six months ended June 30, 2022, primarily due to a reduction in full-time student enrollment at Lingnan Vocational Technical College[34] - Gross profit decreased by approximately 13.1% from about RMB 141.4 million for the six months ended June 30, 2021, to about RMB 122.9 million for the reporting period, with the gross profit margin declining from approximately 49.4% to about 46.4%[36] - Other income and gains decreased by approximately 45.4% from about RMB 54.4 million for the six months ended June 30, 2021, to about RMB 29.7 million for the six months ended June 30, 2022, primarily due to a reduction in rental income and gains from property sales[37] - Profit for the period decreased by approximately 26.8% from RMB 1,265 million for the six months ended June 30, 2021, to RMB 927 million for the six months ended June 30, 2022[45] - Adjusted net profit decreased by approximately RMB 416 million or 31.0% compared to the same period last year, with an adjusted net profit margin declining from approximately 47.0% to 35.0%[46] - Revenue for the six months ended June 30, 2022, was RMB 264,548,000, a decrease of 7.5% compared to RMB 286,045,000 for the same period in 2021[110] - Gross profit for the same period was RMB 122,857,000, down 13.1% from RMB 141,421,000 in 2021[110] - Net profit for the period was RMB 92,663,000, down 26.8% compared to RMB 126,530,000 in 2021[110] Expenses and Costs - The cost of sales decreased by approximately 2.0% from about RMB 144.6 million for the six months ended June 30, 2021, to about RMB 141.7 million for the six months ended June 30, 2022, mainly due to a reduction in employee costs[35] - Sales and distribution expenses increased by approximately 2.4% from RMB 84 million for the six months ended June 30, 2021, to RMB 86 million for the six months ended June 30, 2022, primarily due to increased recruitment costs at Lingnan Modern Vocational Technical College[40] - Administrative expenses decreased by approximately 11.3% from RMB 389 million for the six months ended June 30, 2021, to RMB 345 million for the six months ended June 30, 2022, mainly due to a reduction in listing expenses by RMB 78 million[41] - Other expenses decreased by approximately 21.2% from RMB 104 million for the six months ended June 30, 2021, to RMB 82 million for the six months ended June 30, 2022, primarily due to reduced rental income costs from terminated leases[42] - Financing costs decreased by approximately 20.2% from RMB 94 million for the six months ended June 30, 2021, to RMB 75 million for the six months ended June 30, 2022, due to the repayment of certain borrowings[44] Assets and Liabilities - As of June 30, 2022, the net current assets were approximately RMB 1,740 million, a decrease of about 16.1% from RMB 2,075 million as of December 31, 2021[49] - Interest-bearing bank and other borrowings amounted to approximately RMB 2,435 million as of June 30, 2022, with effective interest rates ranging from approximately 5.2% to 6.8%[50] - The leverage ratio decreased from approximately 18.4% as of December 31, 2021, to approximately 16.4% as of June 30, 2022, primarily due to a reduction in interest-bearing borrowings[58] - Cash and cash equivalents were RMB 282,492,000, down from RMB 482,393,000 at the end of 2021[114] - Current liabilities decreased to RMB 293,441,000 from RMB 423,777,000 in the previous year[116] Shareholder Information - As of June 30, 2022, the company had issued a total of 1,334,000,000 shares, with major shareholders holding significant stakes, including Mr. He Huishan with 620,000,000 shares (46.48%) and Ms. He Huifen with 190,000,000 shares (14.24%)[63] - Zhihui Guang Limited, owned by Mr. He Huishan and Ms. Zhou Lanqing, holds 570,000,000 shares, representing 42.73% of the company[71] - The group maintained a total of 1,334,000,000 ordinary shares issued and fully paid as of June 30, 2022, unchanged from December 31, 2021[171] Governance and Compliance - The company has complied with all provisions of the corporate governance code during the reporting period[94] - The board confirmed that there were no conflicts of interest or competitive businesses related to the company's operations during the reporting period[106] - The company has taken measures to monitor regulatory changes related to compliance risks associated with the 2016 Decision and 2021 Implementation Regulations[107] Future Plans and Investments - The company plans to expand its campus network through mergers and acquisitions, focusing on high-quality vocational schools and non-academic training institutions in the Guangdong-Hong Kong-Macao Greater Bay Area[30] - The company aims to enhance its performance growth through four strategies, including internal growth in academic vocational education, external mergers and acquisitions, expansion of auxiliary education services, and international cooperation[27][30][31][32] - The company plans to upgrade Lingnan Vocational and Technical College to a bachelor's level vocational university, with expected completion between 2022 and 2023[88] - The company has extended the timeline for acquiring other schools and education service providers to expand its school network from 2022 to 2023 due to the need for more time to find suitable acquisition targets[90] Government Grants and Income - The company received government grants totaling RMB 2,270,000 during the reporting period, compared to RMB 1,649,000 in the same period of 2021[125] - Government grants related to assets were RMB 2,730,000, an increase from RMB 2,530,000 in the previous year[141] - Government grants related to income were RMB 2,126,000, down from RMB 2,474,000 in 2021[141] Acquisitions - In March 2022, the company entered into an agreement to acquire 80% of Qingyuan Lingnan Youjia Automotive Training Co., Ltd. for a total consideration of RMB 3,600,000[93] - The identifiable net assets of Lingnan Automobile Training at the acquisition date amounted to RMB 685,000, with cash and cash equivalents of RMB 1,500,000[174] - Since the acquisition, Lingnan Automobile Training has contributed a loss of RMB 96,000 to the group's consolidated profit for the six months ended June 30, 2022[177]

Financial Data and Key Indicators Changes - The company achieved a revenue of approximately 500 million RMB in the fiscal year 2021, representing an 11.2% increase compared to the previous year [5] - Gross profit was 201.6 million RMB, a decrease of approximately 7.4 million RMB due to increased costs in labor, property, and teaching expenses [5][6] - The net profit for the year was 154 million RMB, reflecting a decrease of 9.7% compared to the previous year [5][6] Business Line Data and Key Indicators Changes - The vocational college contributed 400 million RMB in revenue with an 8.7% positive growth [6][7] - The modern technical college achieved nearly 100 million RMB in revenue, a 23% increase year-on-year, contributing 48.8 million RMB in gross profit [7] - Adult education services provided quality services to 35,349 individuals, generating 39.2 million RMB in revenue, a 21% increase [7] Market Data and Key Indicators Changes - The total number of students enrolled across the two colleges was 25,797, with a slight decrease of 4.6% compared to the previous year [6][7] - The employment rate for graduates from both colleges reached over 99% in 2021 [6] Company Strategy and Development Direction and Industry Competition - The company aims to integrate internal and external resources to build higher-level vocational colleges and provincial-level high-standard technician colleges [2][3] - The focus is on high-quality development in vocational education, aligning with national policies to enhance the attractiveness and quality of vocational training [2][10] - The company is actively expanding its campus network and enhancing cooperation with over 1,000 enterprises to deepen industry-education integration [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of vocational education, citing strong government support and the potential for growth in the sector [4][10] - The company plans to adapt to changes in national policies, particularly regarding the transition from diploma to degree-level vocational education [10][11] - Future growth is expected to come from the implementation of the undergraduate strategy and expansion of adult education services [31][32] Other Important Information - The company plans to distribute approximately 60.63 million RMB as dividends, with a payout of 5.6 HKD per share [6] - The asset-liability ratio stands at 36.1%, indicating a stable financial position [5] Q&A Session All Questions and Answers Question: What are the specific plans for upgrading the colleges to universities? - The company is planning to upgrade Lingnan Vocational Technical College to offer undergraduate programs between 2023 and 2024, with part of the professional undergraduate courses already established [17] Question: What impact does the revised Vocational Education Law have on the industry and the company? - The revised law enhances the status of vocational education, emphasizing equal opportunities with general education and promoting industry-education integration, which aligns with the company's strengths [18][19] Question: What are the reasons for the decrease in gross profit and net profit? - The decrease is attributed to rising costs in labor, property, and teaching expenses, although adjusted net profit remained stable at approximately 179 million RMB [20] Question: Will the company expand its business outside the Greater Bay Area? - The company has established good cooperation with institutions in Southeast Asia and plans to further develop these partnerships as the pandemic situation improves [21] Question: What is the current student capacity and utilization rate? - The total number of full-time students is 27,987, with an overall utilization rate of 83.2% [22] Question: What is the timeline for the completion of the undergraduate transition? - The transition is expected to begin with professional approvals in 2023-2024, aiming for full implementation during the 14th Five-Year Plan period [29] Question: What is the company's approach to international cooperation? - The company is committed to international education, with ongoing collaborations with institutions in South Korea, Malaysia, and Germany, and plans to open overseas campuses when conditions permit [30]