Education Operations - As of December 31, 2021, China East Education operated 231 schools and centers with an average enrollment of 144,365 students[3]. - The culinary arts segment, under the New East brand, had 72 schools and an average of 64,217 students enrolled[9]. - The information technology and internet technology segment, represented by Xinhua Internet Technology, operated 33 schools with 43,070 average students enrolled[9]. - The auto services segment, under Wontone brand, had 38 schools with an average enrollment of 28,188 students[9]. - The fashion and beauty segment, represented by On-mind, operated 1 school with 496 average students enrolled[9]. - The company focuses on four main industry sectors: culinary arts, information technology, auto services, and fashion & beauty[3]. - The average number of students enrolled across all segments for the year ended December 31, 2021, was 144,365[9]. - The comprehensive nationwide school network covers most provinces in mainland China and Hong Kong[3]. - The company aims to enhance employability through innovative vocational training education[3]. - The number of schools in operation reached 206 as of December 31, 2020, with a successful issuance of the first batch of vocational skill level certificates in China[10]. Financial Performance - Revenue for the year ended December 31, 2021, was RMB 4,140 million, an increase of 13.4% from RMB 3,649 million in 2020[11]. - Gross profit for 2021 was RMB 2,112 million, up from RMB 1,969 million in 2020, reflecting a gross margin improvement[11]. - Net profit for the year was RMB 302 million, compared to RMB 258 million in 2020, indicating a growth of 17.0%[11]. - Adjusted net profit for 2021 was RMB 432 million, down from RMB 500 million in 2020[11]. - Adjusted EBITDA for 2021 was RMB 1,380 million, slightly down from RMB 1,436 million in 2020[11]. - Net assets as of December 31, 2021, were RMB 5,739 million, a decrease from RMB 6,040 million in 2020[11]. - For the year ended December 31, 2021, the Group's main operating revenue was RMB 4,140 million, representing a year-on-year increase of 13.5% compared to 2020[16]. - The net profit for the year was approximately RMB 302 million, reflecting a year-on-year increase of 17.3% compared to 2020; however, the adjusted net profit was RMB 432 million, representing a year-on-year decrease of 13.6%[16]. Enrollment and Student Statistics - The number of new students enrolled was 154,259, which is a year-on-year increase of 6.0% compared to 2020[16]. - The average number of students enrolled nationwide exceeded 144,000, with a total of 231 institutions operating across the country, including 25 new institutions[17]. - New students enrollment in the Culinary Arts segment totaled 93,036 in 2021, a slight decrease of 1.1% from 94,101 in 2020[39]. - The number of new students enrolled in the Auto Services segment increased by 24.4% to 28,838 in 2021, compared to 23,176 in 2020[40]. - Long-term enrollment in the Fashion and Beauty segment surged by 122.4%, reaching 1,243 in 2021, up from 559 in 2020[40]. - The average number of students enrolled in the New East brand was 58,951 in 2021, reflecting a 1.8% increase from 57,897 in 2020[43]. - Short-term course enrollment in the Xinhua Internet brand rose by 49.6%, totaling 3,762 in 2021, compared to 2,515 in 2020[40]. - The total enrollment for the group in 2021 was 154,259, representing a 6.0% increase from 145,472 in 2020[40]. Strategic Initiatives and Expansion - The company established Anhui Xinhua Education to consolidate all schools under a single entity, enhancing operational efficiency[10]. - The company expanded its business to Hong Kong, increasing its market presence[10]. - The Group aims to further expand market share and accelerate the development of the senior technical section while enhancing skills training and enrollment scale[22]. - The construction of regional centers will be pushed forward to achieve intensive development and improve consultation efficiency[22]. - The Group plans to complete the development of preparatory colleges as scheduled and expand revenue growth through emerging businesses[22]. - The Group aims to diversify its course offerings in culinary arts, information technology, auto services, and fashion and beauty, in response to market demand and industry trends[100]. Corporate Governance - The company has complied with all code provisions set out in the Corporate Governance Code for the year ended December 31, 2021[136]. - The company is committed to enhancing its corporate governance practices to safeguard the interests of shareholders and align with statutory standards[137]. - The Company has adopted the corporate governance code and complied with all its provisions as of December 31, 2021[138]. - The Board of Directors held five meetings during the year, focusing on approving interim results and assessing business performance[142]. - The Company has established specific written terms of reference for both the Audit Committee and the Remuneration Committee, available on the Stock Exchange and Company websites[166]. Risk Management and Internal Controls - The Group's risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material adverse changes[186]. - Senior management establishes risk management policies and internal control processes to identify, evaluate, and manage risks, with significant risks reported regularly[187]. - The Company has an internal audit function to analyze and independently appraise the adequacy and effectiveness of the Group's risk management and internal control systems[188]. - The financial statements for the year ended December 31, 2021 were prepared on a going concern basis, reflecting a true and fair view of the Company's financial position[189]. Human Resources - The company has a total of 12,322 employees as of December 31, 2021[114]. - Full-time teachers and instructors make up 41.5% of the total workforce, totaling 5,114 employees[115]. - The company plans to hire additional teachers and instructors as part of its expansion strategy[117]. - Employee remuneration is based on individual qualifications, experience, performance, and market rates, including basic salaries and performance-based bonuses[117][119]. Future Outlook - The Group plans to establish five self-owned regional centers in major geographical regions of China, with the first phase of the Chengdu center expected to be completed by the end of 2022[95]. - The remaining proceeds are expected to be fully utilized within the next 3 to 5 years, subject to negotiations and governmental approvals[112]. - The Group believes its vocational education business aligns with the requirements of the Opinions and will benefit from future developments[200].
中国东方教育(00667) - 2021 - 年度财报