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]

主要客戶資料 報告期間內，概無任何提供予單一客戶的服務的收益佔本集團總收益的10%或以上（截至二零 二二年六月三十日止六個月：無）。 39 中國華南職業教育集團有限公司 • 2023 中期報告 中國華南職業教育集團有限公司 • 2023 中期報告 38 未經審核中期簡明綜合財務報表附註 二零二三年六月三十日 4. 收益、其他收入及收益 收益、其他收入及收益的分析如下： | --- | --- | --- | --- | |----------------------------|-------|-------------------------------------|--------------| | | 附註 | 截至六月三十日止六個月 \n二零二三年 | 二零二二年 | | | | 人民幣千元 | 人民幣千元 | | | | （未經審核） | （未經審核） | | 收益 | | | | | | | | | | 客戶合約收益 | | | | | 學費 | (a) | 251,297 | 239,584 | | 寄宿費 | (a) | 21,824 | 20,563 | | 其他教育服務費 | (b) | ...

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]

Financial Performance - In the fiscal year 2021, the company reported revenue of RMB 499,621,000, representing a 11.2% increase from RMB 449,350,000 in 2020[22] - The gross profit for 2021 was RMB 201,614,000, with a gross margin of approximately 40.4%[22] - The company had a net profit of RMB 153,938,000 in 2021, a decrease of 9.7% compared to RMB 170,501,000 in 2020[22] - The group's revenue increased by approximately 11.2% year-on-year to RMB 499.6 million, driven by growth in student enrollment and average tuition fees[26] - Adjusted net profit remained stable at RMB 179.3 million compared to RMB 182.3 million in the previous fiscal year[26] - Gross profit decreased by approximately 3.5% from about RMB 209.0 million to approximately RMB 201.6 million, with the gross margin declining from about 46.5% to approximately 40.4%[55] - Other income and gains increased by approximately 30.6% from about RMB 85.9 million to approximately RMB 112.2 million, driven by termination lease income and property sales[56] - The total distributable reserves of the company as of December 31, 2021, amounted to approximately RMB 399.8 million, with about RMB 60.6 million proposed as the final dividend for the year[138] - The board proposed a final dividend of HKD 0.056 per share for the year ending December 31, 2021, to reward shareholders[26] Assets and Liabilities - As of December 31, 2021, total assets amounted to RMB 1,855,196,000, while total liabilities were RMB 823,448,000, resulting in total equity of RMB 1,455,525,000[22] - Non-current assets increased to RMB 1,647,693,000 in 2021, up from RMB 1,562,515,000 in 2020[22] - Current assets increased by RMB 274.7 million to approximately RMB 631.3 million, primarily due to funds raised from a global offering[67] - Current liabilities decreased by approximately 21.2% from RMB 537.9 million to RMB 423.8 million, reflecting payments related to acquisitions and reduced student-related liabilities[68] - Cash and cash equivalents increased by approximately 67.3% from RMB 284.4 million to RMB 482.4 million, mainly due to funds raised from the global offering[69] - Property, plant, and equipment increased by approximately 11.7% from RMB 1,019.1 million to RMB 1,138.5 million, driven by new campus developments and equipment purchases[74] - The leverage ratio decreased from approximately 43.0% as of December 31, 2020, to approximately 18.4% as of December 31, 2021, due to a reduction in interest-bearing bank and other borrowings and an increase in total equity following the global offering[84] Student Enrollment and Educational Services - The company enrolled 25,797 full-time students in the 2021/2022 academic year, with 72.7% studying in TMT and healthcare-related fields[5] - The total number of full-time students for the 2021/2022 academic year was 25,797, with enrollment at Lingnan Modern Technician College increasing by 23.9% to 7,900 students[26] - Average tuition fees for Lingnan Vocational Technical College and Lingnan Modern Technician College rose by 7.1% and 3.4% to RMB 16,677 and RMB 11,918, respectively[26] - The company has diversified its educational offerings, providing over 70 programs across various disciplines[6] - The company plans to expand its educational services, including continuing education programs and vocational skills training[7] - The group plans to expand its vocational education network in the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on both academic and non-academic vocational training markets[45] Strategic Initiatives and Growth Plans - The company aims to enhance its market position through strategic initiatives and potential acquisitions in the vocational education sector[7] - The group plans to upgrade Lingnan Vocational Technical College to a vocational undergraduate institution, requiring targeted student scale control and increased infrastructure investment[27] - The group aims to expand non-academic vocational training and explore partnerships with leading industry companies to establish industry colleges[29] - The group will focus on integrating education and industry to cultivate high-quality technical talent for the Guangdong-Hong Kong-Macao Greater Bay Area[29] - The company is actively pursuing strategic acquisitions to enhance its educational offerings, with a target of acquiring two smaller educational institutions by the end of the year[106] Management and Governance - The management team has extensive experience in the education sector, with key members holding significant positions in various educational institutions[97] - The company has been managing overall operations and investments in the education sector since its establishment in 1995, with over 26 years of experience in education management[105] - The company has a strong management team with diverse expertise in finance, law, and education, enhancing its strategic decision-making capabilities[121] - The company aims to leverage its management's extensive experience to enhance corporate governance and financial oversight[112] - The company’s governance structure includes a review of the independence of its directors annually[155] Shareholder Information - As of December 31, 2021, the company had a total of 1,334,000,000 shares issued[170] - Mr. He Huishan holds 620,000,000 shares, representing approximately 46.48% of the company's equity[158] - Ms. He Huifen and Ms. He Huifang each hold 190,000,000 shares, representing approximately 14.24% of the company's equity[158] - The company has a significant concentration of ownership, with major shareholders holding substantial stakes[166] - The company has confirmed the independence of its independent non-executive directors as of December 31, 2021[155] Capital Raising and Financial Instruments - The company completed a global offering of 334,000,000 shares, representing 25% of the total shares, at a price of HKD 1.59 per share[177] - The net proceeds from the global offering amounted to approximately HKD 446.0 million[178] - 55% of the net proceeds (HKD 245.3 million) is allocated to increase student capacity by upgrading Lingnan Vocational Technical College to a bachelor's level institution[179] - 20% of the net proceeds (HKD 89.2 million) is designated for acquiring other schools and education service providers to expand the school network, with the timeline extended to 2023[181] - The company has not engaged in any acquisitions or disposals of subsidiaries or associated companies during the reporting period[173] Corporate Social Responsibility - The company has established a charity foundation aimed at supporting underprivileged students, with an initial funding of $1 million[107] - The company made charitable donations of approximately RMB 3.3 million during the reporting period[142] - The company has received recognition for its contributions to women's education initiatives, being awarded the "Outstanding Contribution Award" by the Guangdong Women's Entrepreneur Association[102] Environmental and Regulatory Compliance - The company emphasizes strict environmental protection measures to comply with current environmental laws and regulations[133] - The company has maintained a public float of no less than 25% of its issued shares since its listing date[146]

Student Enrollment and Tuition - The total number of full-time students in the 2020/2021 academic year was 27,033[21] - The average tuition fees for Lingnan Vocational Technical College and Lingnan Modern Technician College were RMB 16,275 and RMB 11,948, respectively[21] - The average boarding fees for the two colleges were RMB 1,746 and RMB 1,479, respectively[21] Market Position and Strategy - The company holds approximately 5.8% and 0.5% market shares in the Greater Bay Area and China, respectively, as the largest private vocational education service provider in the region[15] - The company operates two schools in the Greater Bay Area, namely Lingnan Vocational Technical College and Lingnan Modern Technician College[15] - The company is aligned with national policies that encourage and support vocational education, indicating broad future development potential[26] - The implementation of the "Regulations on the Promotion of Private Education in the People's Republic of China" includes several encouraging policies for vocational education[22] - The company plans to deepen industry-education integration and school-enterprise cooperation as part of its future strategy[22] - The company aims to enhance the adaptability of vocational education and accelerate the construction of a modern vocational education system[23] - The company is committed to cultivating high-quality technical and skilled talents in response to national educational reforms[22] Financial Performance - Revenue increased by approximately 21.3% from about RMB 235.8 million to approximately RMB 286.0 million during the reporting period[32] - Sales costs rose by approximately 29.2% from about RMB 111.9 million to approximately RMB 144.6 million, primarily due to increased employee costs and new educational services[35] - Gross profit increased by approximately 14.1% from about RMB 123.9 million to approximately RMB 141.4 million, with a decrease in gross margin from about 52.6% to approximately 49.4%[36] - Other income and gains rose by approximately 62.4% from about RMB 33.5 million to approximately RMB 54.4 million, driven by increased rental income and property sales[37] - Administrative expenses increased by approximately 36.5% from about RMB 28.5 million to approximately RMB 38.9 million, mainly due to higher salaries and listing expenses[41] - The net profit for the period increased by approximately 22.3% from about RMB 103.4 million to approximately RMB 126.5 million[46] Expansion Plans - The group plans to expand its campus network through mergers and acquisitions, focusing on quality institutions within the Guangdong-Hong Kong-Macao Greater Bay Area[30] - The group aims to enhance its performance through internal growth in vocational education and the establishment of new campuses[28] - The group is actively expanding auxiliary education services, including adult continuing education and vocational skills certification training[31] - The group is seeking to establish new vocational education sites in the Greater Bay Area to strengthen its market position[28] Financial Position and Liabilities - As of June 30, 2021, the net current liabilities decreased by approximately 40.8% to RMB 107.4 million from RMB 181.3 million as of December 31, 2020[49] - Current assets decreased from approximately RMB 356.6 million as of December 31, 2020, to approximately RMB 206.9 million as of June 30, 2021, a reduction of RMB 149.7 million[49] - Current liabilities decreased from approximately RMB 537.9 million as of December 31, 2020, to approximately RMB 314.4 million as of June 30, 2021, reflecting a decrease of RMB 223.5 million[50] - As of June 30, 2021, interest-bearing bank and other borrowings amounted to approximately RMB 299.2 million, with RMB 90.9 million due within one year[51] - The leverage ratio decreased from approximately 43.0% as of December 31, 2020, to approximately 29.6% as of June 30, 2021, primarily due to a reduction in interest-bearing borrowings[59] - The company had cash and cash equivalents of approximately RMB 123.8 million as of June 30, 2021, ensuring sufficient liquidity for daily operations and capital expenditures[53] - The investment in financial products decreased by approximately 35.6% from about RMB 20.2 million as of December 31, 2020, to about RMB 13.0 million as of June 30, 2021[54] - The company did not have any significant contingent liabilities or guarantees as of June 30, 2021[55] Shareholder Information - As of June 30, 2021, the company had a total of 1,334,000,000 shares issued, with major shareholders holding significant stakes[73] - Mr. He Huishan holds 620,000,000 shares, representing approximately 46.48% of the company's equity[64] - Ms. He Huifen and Ms. He Huifang each hold 190,000,000 shares, accounting for about 14.24% of the company's equity[64] - Zhihui Guang Limited, owned by Mr. He Huishan and Ms. Zhou Lanqing, holds 570,000,000 shares, which is approximately 42.73% of the company[73] - The company's stock option plan was approved on June 23, 2021, allowing for a maximum of 133,400,000 shares to be issued, representing about 10% of the total shares as of the listing date[77] - The company has no other disclosed interests or positions in its shares by directors or senior management as of the report date[70] - The beneficial ownership in Guangzhou Lingnan Education Group Limited shows Mr. He Huishan with 18,000,000 shares, or 60.00%[69] - The company has not granted, exercised, canceled, or allowed any stock options under the plan since its adoption[77] - The report indicates that there are no other significant interests or positions in the company's shares that require disclosure under the Securities and Futures Ordinance[76] - The company’s governance structure includes significant control by its major shareholders, reflecting a concentrated ownership model[73] Global Offering and Capital Use - The company raised approximately HKD 448.6 million from the global offering after deducting underwriting commissions and other expenses[81] - 334 million shares, representing 25% of the total shares, were issued to the public at a price of HKD 1.59 per share during the global offering[82] - 55% of the net proceeds (HKD 246.7 million) will be used to increase student capacity by upgrading Lingnan Vocational and Technical College to a bachelor's level vocational university[82] - 20% of the net proceeds (HKD 89.7 million) is allocated for acquiring other schools and education service providers to expand the school network[82] - The company does not recommend any dividend distribution for the six months ended June 30, 2021[83] - The statutory capital of the company is HKD 100 million, divided into 10 billion shares with a par value of HKD 0.01 each[82] - The company plans to purchase approximately 400,200 square meters of land for educational expansion[82] - The company has not engaged in any significant acquisitions or disposals during the reporting period[86] Compliance and Governance - The company has complied with all corporate governance codes since the listing date[87] - There have been no changes in the compliance status of the company's contractual arrangements under the Foreign Investment Law since the listing date[97] Revenue Breakdown - For the six months ended June 30, 2021, total revenue reached RMB 286,045,000, a 21.3% increase from RMB 235,771,000 in the same period of 2020[132] - Tuition fees contributed RMB 259,185,000, up from RMB 231,743,000, reflecting an increase of 11.8% year-on-year[132] - Boarding fees surged to RMB 23,147,000 from RMB 3,766,000, marking a significant increase of 514.5%[132] - Other educational service fees rose to RMB 3,713,000, compared to RMB 262,000, indicating a substantial increase of 1,319.5%[132] - Total other income and gains amounted to RMB 54,404,000, up from RMB 33,468,000, representing a growth of 62.4%[135] Contract Liabilities and Future Revenue - The balance of contract liabilities at the end of the reporting period was RMB 20,482,000, a decrease from RMB 167,856,000 at the beginning of the year[137] - The confirmed revenue related to contract liabilities for the six months ended June 30, 2021, was RMB 167,856,000, compared to RMB 158,841,000 for the same period in 2020, representing an increase of approximately 5.4%[139] - Tuition fees accounted for RMB 149,233,000 of the confirmed revenue, a decrease from RMB 155,444,000 in the previous year, indicating a decline of about 4.0%[139] Employee and Operational Expenses - The group reported employee benefits expenses of RMB 86,434,000 for the six months ended June 30, 2021, up from RMB 74,294,000 in the same period of 2020, reflecting an increase of approximately 16.4%[143] - Depreciation of property, plant, and equipment increased to RMB 22,483,000 from RMB 18,115,000, marking a rise of about 24.5%[143] - The group did not declare or pay any dividends during the reporting period, consistent with the previous year[153] Earnings Per Share - The basic earnings per share for the six months ended June 30, 2021, was calculated based on a weighted average of 1,000,000,000 ordinary shares, unchanged from the previous year[154] - For the six months ended June 30, 2021, the group reported a basic and diluted earnings per share of RMB 126,530,000, compared to RMB 103,448,000 for the same period in 2020, representing an increase of approximately 22.3%[158] Asset Management - The group acquired property, plant, and equipment at a cost of RMB 34,458,000 for the six months ended June 30, 2021, down from RMB 47,606,000 for the same period in 2020, indicating a decrease of about 27.6%[161] - The group sold assets with a net book value of RMB 5,830,000, generating a net gain of RMB 8,940,000 for the six months ended June 30, 2021, compared to a net loss of RMB 8,000 for the same period in 2020[161] - As of June 30, 2021, the accounts receivable aged analysis showed a total of RMB 3,605,000, down from RMB 7,168,000 as of December 31, 2020, reflecting a decrease of approximately 49.7%[162] Related Party Transactions - The group reported a total issued share capital of RMB 11,124,000 as of June 30, 2021, an increase from RMB 9,000 as of December 31, 2020, due to capital issuance[167] - The group had capital commitments of RMB 12,896,000 for property, plant, and equipment as of June 30, 2021, down from RMB 24,994,000 as of December 31, 2020, indicating a reduction of about 48.3%[170] - Rental income from related parties amounted to RMB 20,381,000 for the six months ended June 30, 2021, compared to RMB 17,339,000 for the same period in 2020, representing an increase of approximately 11.8%[175] - The group had no significant contingent liabilities or guarantees as of June 30, 2021, consistent with the previous year[169] Financial Instruments and Fair Value - The fair value of financial instruments is assessed to be similar to their carrying amounts due to their short maturity periods[186] - The group’s financial department, led by the financial manager, is responsible for determining the fair value measurement policies and processes for financial instruments[186] - The group believes that the valuation methods used for estimating fair value are reasonable and appropriate for the reporting periods[188] - As of June 30, 2021, the fair value of financial assets measured at fair value through profit or loss was RMB 13,000 thousand, a decrease from RMB 20,190 thousand as of December 31, 2020, representing a decline of approximately 35.5%[189] - The non-current portion of interest-bearing bank and other borrowings was RMB 208,244 thousand as of June 30, 2021, down from RMB 282,588 thousand as of December 31, 2020, indicating a reduction of about 26.3%[191] - There were no transfers between Level 1 and Level 2 fair value measurements for financial assets and liabilities during the reporting period, nor were there any transfers into or out of Level 3[191]