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]