Company Information This section provides an overview of Oriental University City Holdings (Hong Kong) Limited, a GEM-listed company, and its primary business of leasing education facilities across Asia - The subject of this report is Oriental University City Holdings (Hong Kong) Limited, a company incorporated in Hong Kong and listed on GEM (Stock Code: **8067**), with its ultimate parent company being Raffles Education Corporation Limited, listed in Singapore[1](index=1&type=chunk)[13](index=13&type=chunk) - The Company primarily engages in the leasing of education facilities in China, Malaysia, and Indonesia[13](index=13&type=chunk) Financial Highlights The company reported a slight revenue increase but a significant decline in profit attributable to owners and basic earnings per share for the nine months ended March 31, 2020 Financial Highlights for the Nine Months Ended March 31, 2020 | Metric | For the Nine Months Ended March 31, 2020 | Compared to Same Period in 2019 | Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. RMB 58.4 million | Approx. RMB 57.1 million | +2.4% | | Profit Attributable to Owners of the Company | Approx. RMB 20.3 million | Approx. RMB 27.2 million | -25.5% | | Basic Earnings Per Share | RMB 0.11 yuan | RMB 0.15 yuan | -26.7% | [Financial Statements](index=7&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of changes in equity, highlighting key financial performance and position changes [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the nine months ended March 31, 2020, the Company recorded a slight revenue increase of 2.4%, but profit for the period decreased by 25.4% year-on-year to RMB 20.5 million due to significant increases in staff costs, repair and maintenance, legal and professional fees, and interest expenses Key Items from Consolidated Statement of Profit or Loss (For the Nine Months Ended March 31, 2020) | Item | 2020 (RMB '000) | 2019 (RMB '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 58,448 | 57,080 | +2.4% | | Operating Profit | 27,184 | 31,825 | -14.6% | | Profit Before Income Tax | 24,192 | 31,933 | -24.2% | | Profit for the Period | 20,548 | 27,527 | -25.4% | | Profit Attributable to Owners of the Company | 20,285 | 27,216 | -25.5% | - Significant increases in costs and expenses were the primary reasons for the profit decline, with **staff costs growing by 99.2%**, repair and maintenance expenses by **72.8%**, legal and professional fees by **49.6%**, and interest expenses surging by **375.1%**[8](index=8&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of March 31, 2020, total equity attributable to owners of the Company was RMB 1,229.0 million, an increase from RMB 1,155.0 million as of July 1, 2019, primarily driven by profit for the period and the equity component of convertible bonds, partially offset by exchange differences Summary of Changes in Equity (For the Nine Months Ended March 31, 2020) | Item | Amount (RMB '000) | | :--- | :--- | | Balance as at July 1, 2019 | 1,155,043 | | Profit for the Period | 20,285 | | Equity Component of Convertible Bonds | 59,678 | | Exchange Differences and Others | (4,944) | | Balance as at March 31, 2020 | 1,228,967 | [Notes to the Condensed Consolidated Third Quarterly Results](index=10&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%AC%AC%E4%B8%89%E5%AD%A3%E5%BA%A6%E6%A5%AD%E7%B8%BE%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated third quarterly results, covering segment information, connected transactions, earnings per share, and dividends [Segment Information](index=11&type=section&id=5.3%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Company revenue primarily derives from education facility leasing and commercial leasing of ancillary facilities, with the latter doubling and becoming the main growth driver, while core education facility leasing revenue slightly decreased Revenue by Category (For the Nine Months Ended March 31) | Revenue Category | 2020 (RMB '000) | 2019 (RMB '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Leasing of Education Facilities | 52,835 | 54,421 | -2.9% | | Commercial Leasing of Ancillary Facilities | 5,613 | 2,659 | +111.1% | | **Total** | **58,448** | **57,080** | **+2.4%** | [Connected Transactions and Continuing Connected Transactions](index=15&type=section&id=5.10%20%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93%E5%8F%8A%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) During the reporting period, the Company completed the acquisition of "Zhuyun Property" from its controlling shareholder, Raffles, partially paid by issuing convertible bonds worth approximately HKD 200 million to the vendor, and also has a continuing connected property lease transaction in Malaysia with a Raffles subsidiary - To acquire "Zhuyun Property", the Company issued convertible bonds valued at **HKD 200,379,982** to its controlling shareholder, Raffles Education Corporation Limited, on November 19, 2019, with a conversion price of **HKD 2.30 per share** and a maturity date of August 29, 2028[35](index=35&type=chunk)[36](index=36&type=chunk) [Earnings per Share and Dividends](index=17&type=section&id=5.11%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%20%26%205.12%20%E8%82%A1%E6%81%AF) For the nine months ended March 31, 2020, basic earnings per share decreased to RMB 0.11 yuan from RMB 0.15 yuan in the prior period, and the Board resolved not to declare any dividend for this period - Basic earnings per share decreased from **RMB 0.15 yuan** in the prior period to **RMB 0.11 yuan**[40](index=40&type=chunk) - The Board did not recommend the payment of an interim dividend[41](index=41&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides management's perspective on the company's financial performance, business operations, significant investments, and future plans for the reporting period [Financial Review](index=18&type=section&id=6%20%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Financial performance for the period showed increased revenue but decreased profit, with revenue growing by 2.4% due to new leases, but profit significantly declining by 25.4% due to sharp increases in various costs and expenses, including staff costs, repair fees, acquisition-related legal fees, and interest expenses from new borrowings and convertible bonds - Staff costs increased by **99.2%** year-on-year due to an increase in headcount[45](index=45&type=chunk) - Legal and professional fees increased by **49.6%** due to expenses related to the acquisition of "Zhuyun Property"[48](index=48&type=chunk) - Interest expenses surged by **375.1%** due to increased bank borrowings and the issuance of convertible bonds for the acquisition of "Zhuyun Property"[54](index=54&type=chunk) - Property tax and land use tax decreased by **8.7%** due to tax exemption for student dormitories, being one of the few cost items to decline[46](index=46&type=chunk) [Business Review and Outlook](index=20&type=section&id=7%20%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) The company's core business involves leasing educational facilities such as teaching buildings and dormitories to educational institutions in China, Malaysia, and Indonesia, supplemented by minor commercial leasing, with management expecting student occupancy and related revenue from education facility leasing to remain relatively stable for the remainder of the fiscal year - The Company's core business is owning and leasing education facilities located in Langfang, China, Kuala Lumpur, Malaysia, and Jakarta, Indonesia[57](index=57&type=chunk) - Management expects revenue to remain relatively stable for the remainder of the current fiscal year[57](index=57&type=chunk) [Significant Investments and Future Plans](index=20&type=section&id=8%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E4%BB%A5%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E8%88%87%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%8B%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%88%83) During the reporting period, the Company actively pursued overseas expansion by signing agreements to acquire properties in Jakarta, Indonesia, and Ulaanbaatar, Mongolia, which will be funded by internal resources and/or borrowings, demonstrating its strategic intent to expand international education facility leasing operations - In February 2020, the Company, through its indirect wholly-owned subsidiary, signed an agreement to acquire "Thamrin Property" located in Jakarta, Indonesia, for approximately **HKD 53.4 million** (plus VAT)[58](index=58&type=chunk) - In March 2020, the Company signed an agreement to acquire "Misheel Property" located in Ulaanbaatar, Mongolia, for **RMB 32.71 million** (approximately **HKD 36.66 million**)[60](index=60&type=chunk) [Use of Proceeds from Listing](index=21&type=section&id=10%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E9%85%8D%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The Company's net proceeds from its 2015 listing, approximately HKD 75.3 million, were earmarked for constructing new dormitories at its Langfang campus in Hebei, China, with approximately HKD 29.4 million spent as of March 31, 2020, and construction ongoing - Of the **HKD 75.3 million** raised from the listing, intended for new dormitory construction, approximately **HKD 29.4 million** has been utilized as of the reporting period end, with the project still in progress[63](index=63&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section details the company's corporate governance practices, including information on directors' and major shareholders' interests, and the audit committee's review of the financial results [Interests of Directors and Chief Executive in Shares, Underlying Shares and Debentures](index=23&type=section&id=15%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of March 31, 2020, Mr. Chew Hua Seng, the Company's Chairman and Executive Director, indirectly held **135,000,000 shares**, representing **75%** of the total issued shares, through Raffles Education Corporation Limited, which is the Company's direct controlling shareholder Major Shareholder Holdings | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Raffles | Beneficial Owner | 135,000,000 | 75% | | Mr. Chew Hua Seng | Interest of Controlled Corporation | 135,000,000 | 75% | [Review by Audit Committee](index=26&type=section&id=18%20%E7%B6%93%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1) The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the quarterly results and confirmed their preparation in compliance with applicable accounting standards and GEM Listing Rules, with sufficient disclosures made - The Audit Committee has reviewed the quarterly results report[77](index=77&type=chunk)

Financial Performance - The group recorded revenue of approximately RMB 39.0 million for the six months ended December 31, 2019, representing a growth of 3.3% compared to the same period in 2018[9]. - Profit attributable to owners of the company for the six months ended December 31, 2019, was approximately RMB 16.4 million, a decrease of 3.1% from the same period in 2018[9]. - Basic earnings per share for the six months ended December 31, 2019, remained at RMB 0.09, unchanged from the same period in 2018[9]. - Operating profit for the six months ended December 31, 2019, was RMB 20.5 million, compared to RMB 19.8 million for the same period in 2018, reflecting an increase of 3.3%[10]. - The group reported a net profit of RMB 16.5 million for the six months ended December 31, 2019, down from RMB 17.1 million in the same period of 2018[10]. - Total comprehensive income attributable to owners of the company for the six months ended December 31, 2019, was RMB 16.4 million, compared to RMB 16.9 million in the same period of 2018[11]. - The company reported a profit of RMB 16,901 thousand for the six months ended December 31, 2019, compared to RMB 20,019 thousand for the same period in 2018, showing a decrease of approximately 15.5%[19]. - Net profit for the current period was approximately RMB 165 million, down from approximately RMB 171 million in the same period of 2018[77]. Revenue Breakdown - For the six months ended December 31, 2019, total revenue was RMB 39,006,000, an increase of 3.3% compared to RMB 37,754,000 for the same period in 2018[25]. - Revenue from educational facility leasing was RMB 35,232,000 for the six months ended December 31, 2019, compared to RMB 35,887,000 for the same period in 2018, reflecting a decrease of 1.8%[25]. - Revenue from ancillary facility commercial leasing increased significantly to RMB 3,774,000 for the six months ended December 31, 2019, up from RMB 1,867,000 in the same period of 2018, representing a growth of 102.5%[25]. - Major clients contributing over 10% of revenue included University A, which generated RMB 23,599,000 and University B, which generated RMB 5,352,000 for the six months ended December 31, 2019[27]. Assets and Liabilities - The group’s total assets as of December 31, 2019, were RMB 100 million, reflecting a stable financial position[10]. - Total assets as of December 31, 2019, amounted to RMB 1,572,505 thousand, an increase from RMB 1,327,131 thousand as of June 30, 2019, representing a growth of approximately 17.5%[13]. - Non-current assets reached RMB 1,525,495 thousand, up from RMB 1,312,398 thousand, indicating a growth of about 16.2%[13]. - Total equity as of December 31, 2019, was RMB 1,237,767 thousand, an increase from RMB 1,164,924 thousand as of June 30, 2019, representing a growth of about 6.3%[15]. - Current liabilities rose to RMB 46,614 thousand from RMB 14,202 thousand, reflecting an increase of about 228%[13]. - The total assets of the group as of December 31, 2019, were approximately RMB 15.725 billion, with total liabilities of approximately RMB 3.347 billion[79]. Cash Flow and Expenses - The net cash generated from operating activities for the six months ended December 31, 2019, was RMB 29,198 thousand, compared to RMB 32,855 thousand for the same period in 2018[19]. - The company’s operating cash flow before tax adjustments was RMB 16,770 thousand, down from RMB 19,508 thousand in the previous year, indicating a decrease of approximately 14.1%[19]. - The group incurred employee costs of RMB 2.5 million for the six months ended December 31, 2019, an increase from RMB 1.3 million in the same period of 2018[10]. - Employee costs increased by 89.1% to RMB 25 million due to an increase in the number of employees[70]. - Property management fees rose by 9.2% to RMB 35 million, attributed to the expansion of rental space[72]. - Maintenance and repair costs increased from RMB 14 million to RMB 23 million, mainly due to external wall repainting and plumbing repairs[73]. - Legal and consulting fees increased by 52.7% to RMB 33 million, primarily due to costs associated with the acquisition of the Zhuyun property[74]. Financing and Investments - The company issued convertible bonds valued at HKD 200,379,982 with a conversion price of HKD 2.30 per share, which will mature on the due date[54]. - The proceeds from the bond issuance were partially used to pay for the acquisition of the Zhuyun property, costing RMB 252.37 million[55]. - The company’s bank borrowings increased to RMB 44,632 thousand from RMB 12,572 thousand, reflecting an increase of about 255%[15]. - The company had cash and cash equivalents of approximately RMB 31.1 million as of December 31, 2019, up from RMB 5.2 million as of June 30, 2019[81]. - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[86]. Shareholder Information - As of December 31, 2019, the chairman and executive director, Mr. Zhou, holds 135,000,000 shares, representing 75% of the company's issued shares[101]. - Mr. Zhou has a beneficial interest in Raffles, holding 462,907,764 shares, which accounts for 33.58% of the issued shares of the associated corporation[102]. - Raffles, directly controlled by Mr. Zhou, holds 135,000,000 shares in the company, equating to 75% ownership[104]. - The total number of issued shares of the company as of December 31, 2019, is 180,000,000 shares[101]. - No other directors or senior management hold 5% or more of the shares or related securities as of December 31, 2019[105]. Compliance and Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group[108]. - The company has made full disclosures in accordance with applicable accounting standards and GEM listing rules[108]. - There were no significant interests held by directors in any important transactions, arrangements, or contracts during the period[107]. - The company is committed to maintaining transparency and compliance with the Securities and Futures Ordinance[105].

Financial Performance - The company recorded revenue of RMB 19.7 million for the three months ended September 30, 2019, representing an increase of 8.5% compared to the same period in 2018[7]. - Profit attributable to owners of the company was RMB 9.2 million, a decrease of 2% from RMB 9.4 million in the same period last year[7]. - Basic earnings per share remained stable at RMB 0.05, unchanged from the previous year[11]. - Operating profit for the period was RMB 10.5 million, compared to RMB 11.1 million in the prior year[9]. - Total comprehensive income for the period was RMB 9.2 million, down from RMB 14.4 million in the same period last year[11]. - Net profit for the three months ended September 30, 2019, was RMB 9,436,000, compared to RMB 9,339,000 for the same period in 2018, reflecting a slight increase of 1.0%[13]. - Rental income increased by 8.5% from RMB 182 million in the same period of 2018 to RMB 197 million in the current period[41]. - Operating profit for the current period was RMB 105 million, compared to RMB 111 million in the same period of 2018[42]. - Net profit for the current period was RMB 92 million, slightly down from RMB 94 million in the same period of 2018[52]. - Basic earnings per share remained at RMB 0.05 for both the current and previous periods[38]. Income and Expenses - The company reported a net interest income of RMB 165,000, up from RMB 19,000 in the previous year[9]. - The company’s other income for the period was RMB 768,000, an increase from RMB 576,000 in the prior year[9]. - The company incurred total other expenses of RMB 1,263,000 for the three months ended September 30, 2019, compared to RMB 711,000 for the same period in 2018, representing an increase of 77.6%[23]. - Employee costs increased to RMB 948,000 from RMB 536,000 in the previous year[9]. - Employee costs increased by 76.9% from RMB 5 million in the same period of 2018 to RMB 9 million in the current period due to an increase in staff numbers[45]. - Maintenance and repair costs rose from RMB 5 million in the same period of 2018 to RMB 21 million in the current period[48]. - Legal and consulting fees increased by 49.7% from RMB 5 million in the same period of 2018 to RMB 8 million in the current period[49]. - Income tax decreased by 30.3% from RMB 15 million in the same period of 2018 to RMB 10 million in the current period[51]. Foreign Exchange and Taxation - The company experienced a foreign exchange loss of RMB 1.5 million from overseas operations, compared to a gain of RMB 357,000 in the previous year[11]. - The company reported a foreign exchange gain of RMB 702,000 for the three months ended September 30, 2019, compared to RMB 576,000 in the same period of 2018, indicating a growth of 21.9%[22]. - The effective corporate income tax rate for the company's Chinese subsidiaries is 25%[26]. - Property tax and land use tax decreased by 23% from RMB 32 million in the same period of 2018 to RMB 25 million in the current period[43]. Strategic Plans and Market Expansion - The company plans to continue exploring market expansion opportunities and enhancing its product offerings in the upcoming quarters[7]. - The company continues to focus on expanding its educational facility leasing services in China and Malaysia[15]. - The company aims to maintain a stable occupancy rate and revenue from contracted colleges and universities for the remainder of the fiscal year[55]. Shareholder and Corporate Governance - The controlling shareholder, Raffles, holds a 33.58% stake in the company, with Mr. Zhou owning 75% of the issued shares[66][67]. - The company has complied with the corporate governance code as per GEM Listing Rules during the reporting period[61]. - The company is committed to enhancing shareholder value through solid corporate governance practices[60]. - No other entities or individuals, apart from the company's directors or senior management, hold 5% or more of the shares as of September 30, 2019[71]. - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group for the first quarter performance[74]. - The first quarter performance report for 2020 has been prepared in accordance with applicable accounting standards and GEM listing rules, with full disclosure made[74]. Construction and Development - The net proceeds from the placement of 45,000,000 shares at HKD 2.64 per share amounted to approximately HKD 75.3 million, which will be used to construct new dormitories in the campus located in Langfang[56]. - As of September 30, 2019, the construction of new dormitories on the campus is still ongoing[57]. Compliance and Trading Activity - No shares were repurchased or traded by the company or its subsidiaries during the reporting period[62]. - The company has no contingent liabilities as of September 30, 2019[29]. - The company has no direct or indirect competition with its controlling shareholder, Raffles, as per the non-competition agreement established[59].

Financial Performance - The company recorded rental income of approximately RMB 765 million for the fiscal year ending June 30, 2019, representing a 13.6% increase compared to RMB 673 million for the previous fiscal year[6]. - Operating profit decreased significantly from RMB 2,222 million in 2018 to RMB 466 million in 2019, primarily due to a substantial reduction in fair value gains from investment properties[12]. - Fair value gains from investment properties dropped from RMB 1,704 million in 2018 to RMB 53 million in 2019, indicating a much smaller increase in land and building values in Langfang, China[12]. - The company’s net profit for the year was RMB 31.5 million, a significant decrease from RMB 164.7 million in 2018, reflecting a decline of approximately 80.9%[17]. Expenses and Costs - Employee costs increased by 19.6% from RMB 25 million in 2018 to RMB 30 million in 2019, attributed to an increase in the number of employees[12]. - Business tax and additional taxes rose by 17.6% from RMB 3 million in 2018 to RMB 4 million in 2019, driven by the increase in revenue[12]. - Property tax and land use tax increased from RMB 121 million in 2018 to RMB 126 million in 2019 due to the expansion of leased facilities[12]. - Property management fees rose from RMB 64 million in 2018 to RMB 69 million in 2019, reflecting the increase in leased space[14]. - Maintenance and repair costs increased by 21.4% to RMB 15 million in 2019 from RMB 13 million in 2018, due to routine maintenance and preventive wear[14]. - Legal and consulting fees increased by 8.2% to RMB 4.4 million, up from RMB 4.1 million in 2018, primarily due to costs associated with property acquisition[15]. Assets and Liabilities - Total assets as of June 30, 2019, were approximately RMB 1,327.1 million, with total liabilities and equity attributable to owners at RMB 162.2 million and RMB 1,155.0 million, respectively[18]. - The current ratio decreased from 1.4 as of June 30, 2018, to 1.0 as of June 30, 2019, indicating a decline in liquidity[18]. - The debt-to-asset ratio was 1.3% as of June 30, 2019, down from approximately 1.5% in the previous year, calculated based on total bank borrowings of RMB 14.9 million[19]. - Cash and cash equivalents as of June 30, 2019, were approximately RMB 2.2 million, a decrease from RMB 26.6 million in 2018, indicating a significant reduction in liquidity reserves[20]. Strategic Initiatives - The company aims to continue creating shareholder returns through strategic management and operational improvements[8]. - The company acquired properties in Langfang for RMB 252.37 million, expected to enhance core business operations due to proximity to Beijing Daxing International Airport[6]. - The company expects stable occupancy rates for contracted colleges and commercial leasing revenues in the upcoming year[24]. - The company aims to utilize the remaining funds for the completion of the dormitory project by the end of 2020, enhancing its operational capacity[38]. Corporate Governance - The board of directors consists of two executive directors and four independent non-executive directors, maintaining a balance of governance[139]. - The company has complied with the GEM Listing Rules and corporate governance codes, enhancing shareholder value[134]. - The independent auditor for the group's financial statements is Shinewing, with reappointment to be proposed at the upcoming annual general meeting[132]. - The board held five meetings during the year, demonstrating active governance and oversight[145]. - The company has maintained a high level of corporate governance, with all independent non-executive directors confirmed as independent[144]. Environmental Commitment - The company is committed to environmental policies, promoting energy efficiency and waste reduction practices[124]. - The total electricity consumption for the year was 51,628 kWh, resulting in CO2 emissions of 40,528 kg, compared to 53,477 kWh and 41,979 kg in 2018, indicating a reduction in both energy use and emissions[195]. - The total water consumption for the year was 4,750 tons, a decrease from 4,860 tons in 2018, reflecting the company's commitment to resource conservation[195]. - The company promotes environmental awareness among students and staff, advocating for waste sorting and recycling initiatives[197]. Employee and Workforce - The total number of employees increased to 23 in 2019 from 17 in 2018, highlighting the company's growth in human resources[198]. - The gender distribution of employees in 2019 was 13 males and 10 females, compared to 8 males and 9 females in 2018, showing a shift in workforce composition[198]. - The age distribution of employees in 2019 included 1 under 30, 7 aged 30-40, 4 aged 40-50, and 5 over 50, compared to 2 under 30, 9 aged 30-40, 6 aged 40-50, and 6 over 50 in 2018[199]. - Employee compensation is determined based on market salaries reflecting individual experience and performance[126].

Financial Performance - The company reported revenue of approximately RMB 57.1 million for the nine months ended March 31, 2019, an increase of 13.7% compared to the same period in 2018[8]. - Profit attributable to owners of the company for the nine months ended March 31, 2019, was approximately RMB 27.2 million, a decrease of 22.4% from the same period in 2018[8]. - Basic earnings per share for the nine months ended March 31, 2019, was RMB 0.15, down from RMB 0.19 in 2018[8]. - The company recorded an operating profit of RMB 31.8 million for the nine months ended March 31, 2019, compared to RMB 39.8 million in the same period of 2018[9]. - Total comprehensive income attributable to owners for the nine months ended March 31, 2019, was RMB 27.2 million, down from RMB 35.1 million in 2018[11]. - The profit for the period ended March 31, 2019, was RMB 27,216,000, compared to RMB 35,091,000 for the same period in 2018, indicating a decrease of about 22.4%[13]. - The total comprehensive income for the period was RMB 26,971,000, down from RMB 30,656,000 in the previous year, marking a decline of approximately 12.3%[13]. - The company declared an interim dividend of RMB 7,672,000 for the period, which is a decrease from the previous year's interim dividend[13]. Revenue and Income Sources - The company’s revenue for the three months ended March 31, 2019, was RMB 19.3 million, compared to RMB 16.9 million in the same period of 2018, reflecting a growth of 8.3%[9]. - Revenue from educational facility leasing for the three months ended March 31, 2019, was RMB 18,534,000, an increase of 22.5% compared to RMB 15,207,000 for the same period in 2018[30]. - Total revenue for the nine months ended March 31, 2019, reached RMB 57,080,000, up 13.7% from RMB 50,216,000 in the previous year[30]. - The revenue from ancillary facility commercial leasing for the nine months ended March 31, 2019, was RMB 2,659,000, a decrease of 48.9% from RMB 5,211,000 in the same period of 2018[30]. - Interest income from bank deposits for the nine months ended March 31, 2019, was RMB 836,000, an increase of 58% from RMB 529,000 in the same period of 2018[35]. Expenses and Costs - The company incurred employee costs of RMB 2.16 million for the nine months ended March 31, 2019, an increase from RMB 1.88 million in the same period of 2018[9]. - The company’s tax expense for the nine months ended March 31, 2019, was RMB 4.41 million, compared to RMB 2.98 million in the same period of 2018[9]. - The company incurred income tax expenses of RMB 4,406,000 for the nine months ended March 31, 2019, compared to RMB 2,978,000 for the same period in 2018, reflecting a 48% increase[37]. - The company reported finance costs of RMB 728,000 for the nine months ended March 31, 2019, down from RMB 2.01 million in 2018[9]. - Financial expenses related to bank loans for the nine months ended March 31, 2019, were RMB 728,000, a decrease of 63.7% from RMB 2,009,000 in the same period of 2018[36]. - Maintenance and repair expenses increased by 64.3% to RMB 15 million from RMB 9 million in the same period last year, primarily due to plumbing and waterproofing repairs[55]. Assets and Equity - As of March 31, 2019, the total equity attributable to owners was RMB 1,148,778,000, reflecting an increase from RMB 1,012,804,000 as of March 31, 2018, representing a growth of approximately 13.4%[13]. - The total assets as of March 31, 2019, were RMB 1,158,636,000, showing an increase from RMB 1,021,089,000 as of March 31, 2018, which is an increase of approximately 13.5%[13]. Corporate Governance and Compliance - The financial results for the period were reviewed by the audit committee, ensuring compliance with regulatory standards[18]. - The company has complied with the GEM Listing Rules and corporate governance codes during the reporting period[63][64]. - The audit committee consists of three independent non-executive directors, chaired by Mr. Lin Binglin[75]. - The audit committee reviewed the accounting principles and practices adopted by the group for the third quarter[75]. - The unaudited condensed consolidated results for the third quarter were prepared in accordance with applicable accounting standards and GEM listing rules[75]. Market and Operational Insights - The company operates in the education facility leasing sector in China and Malaysia, indicating potential for market expansion in these regions[15]. - The company rents educational facilities primarily in China and Malaysia, including teaching buildings and dormitories, with a stable student population expected for the fiscal year[58]. - The company has confirmed that it has no competitive interests outside of its holdings and is committed to solid corporate governance to enhance shareholder value[61][62]. Shareholder Information - As of March 31, 2019, the company had 135,000,000 shares outstanding, with a 75% ownership held by the chairman and executive director[67][71]. - Raffles, the direct holding company, holds 462,907,764 shares, representing approximately 33.58% of the company[68]. - No shares were repurchased or traded by the company or its subsidiaries during the period[64]. - The company has adopted trading standards for directors in accordance with GEM Listing Rules, ensuring compliance during the reporting period[65]. - No significant interests were reported by directors or senior management in any important transactions or contracts during the period[73]. Other Notable Points - The company adopted new accounting standards, including HKFRS 9 and HKFRS 15, which may impact the financial reporting and recognition of revenue[20]. - The new revenue recognition standard (HKFRS 15) is not expected to have a significant impact on the recognition of rental income from investment properties[28]. - The company has not recognized any additional impairment losses on trade receivables as a result of adopting the simplified expected credit loss method under HKFRS 9[26]. - The company completed a property acquisition approved by shareholders on December 20, 2018, with no significant acquisitions or disposals of subsidiaries or associates during the period[60]. - The company received government grants totaling RMB 400,000 for the nine months ended March 31, 2019, compared to none in the same period of 2018[9]. - The company received government subsidies of RMB 4 million for its performance in the Langfang Economic and Technological Development Zone[56].

Financial Performance - The company recorded revenue of approximately RMB 37.8 million for the six months ended December 31, 2018, representing a growth of 13.4% compared to the same period in 2017[9]. - Profit attributable to owners of the company for the six months ended December 31, 2018, was approximately RMB 16.9 million, an increase of 14.9% year-on-year[9]. - Basic earnings per share for the six months ended December 31, 2018, was RMB 0.09, compared to RMB 0.08 for the same period in 2017[9]. - Operating profit for the six months ended December 31, 2018, was RMB 19.8 million, up from RMB 17.9 million in the same period of 2017[10]. - The company reported a net profit of RMB 17.1 million for the six months ended December 31, 2018, compared to RMB 14.9 million for the same period in 2017[10]. - Total revenue for the three months ended December 31, 2018, was RMB 19.6 million, compared to RMB 14.9 million for the same period in 2017[10]. - The company’s total comprehensive income for the period was RMB 24,771 thousand, compared to RMB 14,876 thousand in the previous period, representing an increase of approximately 66.4%[19]. - Revenue from educational facility leasing was RMB 35,887,000, an increase of 20.0% compared to RMB 29,798,000 for the same period in 2017[38]. - Revenue from commercial leasing of supporting facilities for the six months ended December 31, 2018, was RMB 1,867,000, a decrease of 46.5% compared to RMB 3,496,000 for the same period in 2017[38]. - Revenue from external customers for the three months ended December 31, 2018, was RMB 15,328,000, an increase of 7.5% compared to RMB 14,258,000 for the same period in 2017[39]. - For the six months ended December 31, 2018, revenue was RMB 30,592,000, representing a growth of 7.5% from RMB 28,462,000 in the same period of 2017[39]. Dividends and Shareholder Information - The board declared an interim dividend of HKD 0.05 per share, equivalent to approximately RMB 0.044 per share, consistent with the previous year[9]. - The company declared an interim dividend of HKD 0.05 per share, an increase from HKD 0.04 per share in 2017[100]. - The controlling shareholder, Raffles, holds a 75% stake in the company as of December 31, 2018[107]. - Raffles, owned by Chairman and Executive Director Mr. Zhou, has a total of 135,000,000 shares, representing 75% of the issued shares[109]. - Mr. Zhou also has a beneficial interest in Raffles, which holds 462,907,764 shares, accounting for 33.58% of Raffles[108]. Assets and Liabilities - Total assets decreased from RMB 1,335,600 thousand as of December 31, 2018, to RMB 1,299,509 thousand as of June 30, 2019, representing a decline of approximately 2.7%[15]. - Non-current assets slightly decreased from RMB 1,272,298 thousand to RMB 1,267,581 thousand, a reduction of about 0.4%[15]. - Current assets saw a significant drop from RMB 63,302 thousand to RMB 31,928 thousand, a decrease of approximately 49.6%[15]. - Total liabilities increased from RMB 175,968 thousand to RMB 176,863 thousand, indicating a marginal rise of about 0.5%[17]. - Net assets decreased from RMB 1,159,632 thousand to RMB 1,149,646 thousand, reflecting a decline of approximately 0.9%[17]. - Cash and cash equivalents increased from RMB 26,562 thousand to RMB 39,460 thousand, an increase of about 48.5%[21]. - The total trade and other receivables as of December 31, 2018, amounted to RMB 23,842,000, significantly higher than RMB 5,366,000 as of June 30, 2018, indicating a substantial increase of 344.5%[63]. - Trade payables as of December 31, 2018, were RMB 3,136,000, slightly up from RMB 3,001,000 as of June 30, 2018, indicating a modest increase of 4.5%[68]. - The net amount of other receivables increased to RMB 7,575,000 as of December 31, 2018, from RMB 5,161,000 as of June 30, 2018, representing a growth of 46.7%[63]. - The total value of investment properties as of December 31, 2018, was RMB 1,158,001,000, reflecting a slight increase from RMB 1,155,987,000 at the beginning of the period[58]. Cash Flow and Expenses - Operating cash flow before tax profit increased from RMB 20,019 thousand to RMB 19,508 thousand, a slight increase of about 2.5%[21]. - The company reported a net cash inflow from operating activities of RMB 32,855 thousand, compared to RMB 32,323 thousand in the previous period, an increase of approximately 1.6%[21]. - The company paid dividends amounting to RMB 17,869 thousand during the period[21]. - Employee costs rose by 7.7% from RMB 1.2 million in 2017 to RMB 1.3 million in the current period due to increased social benefits and annual salary reviews[79]. - The income tax expense for the six months ended December 31, 2018, was RMB 2,921,000, up from RMB 1,735,000 for the same period in 2017, reflecting a 68.5% increase[45]. - The company incurred employee costs of RMB 1.3 million for the six months ended December 31, 2018, compared to RMB 1.2 million in the same period of 2017[10]. - The company reported a depreciation expense of RMB 163,000 for property and equipment during the six months ended December 31, 2018[58]. Governance and Compliance - The unaudited interim financial statements have been reviewed by the audit committee, and the independent auditor has issued a report without any reservations[25]. - The independent auditor's report did not highlight any matters that require attention under the Companies Ordinance[25]. - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and practices adopted by the group and deemed the interim results to be prepared in accordance with applicable accounting standards[114]. - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15[103]. - The company has adopted trading standards for directors as per GEM Listing Rules[106]. - The stock option plan was adopted conditionally, allowing full-time employees and directors to be granted options to subscribe for shares, but no options were granted during the reporting period[111]. - There were no significant interests held by directors in any important transactions, arrangements, or contracts related to the group's business during the period[112]. Future Plans and Investments - The company has committed to purchasing educational land in Langfang, Hebei Province, for a total consideration of RMB 252,370,000[73]. - The company approved a major related party transaction involving the purchase of educational land in Langfang, Hebei, for RMB 252,370,000[51]. - A new lease agreement was established for a three-year term starting January 1, 2019, with Raffles College, following the expiration of the previous lease[52]. - The company has no significant investments or capital commitments as of December 31, 2018, and no future plans for major investments or capital asset purchases[91]. - The company raised approximately HKD 75.3 million from the placement of 45,000,000 shares at HKD 2.64 per share[98]. - The funds will be used to construct new dormitories at the campus located in Langfang Economic and Technological Development Zone, Hebei Province, China[98]. - As of December 31, 2018, approximately HKD 10.1 million has been spent on the construction of the new dormitories[98].