School Network and Enrollment - The company operates 244 schools and centers with an average of 142,765 students enrolled and customers registered for the year ended 31 December 2022[4] - The culinary arts segment has 77 schools under the New East brand with 60,209 average students enrolled[7] - The information technology and internet technology segment has 38 schools under the Xinhua Internet brand with 41,947 average students enrolled[7] - The auto services segment has 39 schools under the Wontone brand with 33,898 average students enrolled[7] - The fashion & beauty segment has 3 schools under the On-mind brand with 855 average students enrolled[7] - The company's nationwide school network covers most provinces in mainland China and Hong Kong[4] - The number of schools in operation reached 244, including 77 under New East Culinary Education, 46 under Omick Education of Western Cuisine and Pastry, 20 under Cuisine Academy, 38 under Xinhua Internet Technology Education, 21 under Wisezone Data Technology Education, 39 under Wontone Automotive Education, and 3 under On-mind Fashion & Beauty Education as of December 31, 2022[9] - The company operates 244 vocational education institutions across China and Hong Kong as of December 31, 2022, under seven renowned brands including New East Culinary Education and Xinhua Internet Technology Education[26] - New East Culinary Education has 77 schools offering comprehensive culinary training programs, including Chinese and Western culinary skills[27] - Omick Education of Western Cuisine and Pastry operates 46 schools providing high-quality Western-style catering education, focusing on pastry and food[27] - Xinhua Internet Technology Education has 38 centers offering a wide range of IT and internet technology-related training programs[29] - Wisezone Data Technology Education operates 21 centers providing short-term IT and internet technology programs to college and university students[29] - Wontone Automotive Education has 39 centers focusing on hands-on auto repair skill training and other auto services[29] - 13 new schools were added in 2022, bringing the total number of institutions nationwide to 244[15] - The company operates 46 senior technical schools and secondary vocational technical schools, with 3 new schools established in 2022[191] Financial Performance - Revenue for the year ended December 31, 2022, was RMB 3,819 million, a decrease from RMB 4,140 million in 2021[10] - Gross profit for 2022 was RMB 1,891 million, down from RMB 2,112 million in 2021[10] - Net profit for the year 2022 was RMB 367 million, compared to RMB 302 million in 2021[10] - Adjusted net profit for 2022 was RMB 266 million, a decrease from RMB 432 million in 2021[10] - Adjusted EBITDA for 2022 was RMB 1,189 million, down from RMB 1,380 million in 2021[10] - Net assets as of December 31, 2022, were RMB 5,699 million, slightly down from RMB 5,739 million in 2021[10] - Total assets as of December 31, 2022, were RMB 9,473 million, compared to RMB 9,636 million in 2021[10] - Main operating revenue for 2022 was RMB3,819 million, a year-on-year decrease of 7.7% compared to 2021[15] - Net profit for 2022 was approximately RMB367 million, a year-on-year increase of 21.3% compared to 2021[15] - Adjusted net profit for 2022 was RMB266 million, a year-on-year decrease of 38.4% compared to 2021[15] - Total revenue for 2022 decreased by 7.7% to RMB 3,819.02 million compared to RMB 4,139.70 million in 2021[50] - The average tuition/service fee per student/customer decreased by 6.5% to RMB 26.4 thousand in 2022 from RMB 28.2 thousand in 2021[50] - Revenue from the Culinary Arts division decreased by 13.3% to RMB 2,242.55 million in 2022, with New East revenue down 9.2% to RMB 1,891.67 million[50] - The Information Technology and Internet Technology division saw a 6.5% revenue decline to RMB 781.25 million in 2022[50] - Auto Services division revenue increased by 13.2% to RMB 718.36 million in 2022, driven by Wontone's performance[50] - Cost of revenue decreased by 4.9% to RMB 1,928 million in 2022 from RMB 2,028 million in 2021[53] - Gross profit margin declined to 49.5% in 2022 from 51.0% in 2021, with gross profit decreasing to RMB 1,891 million[58] - The Culinary Arts division's gross profit margin decreased to 50.9% in 2022 from 52.4% in 2021[59] - The Information Technology and Internet Technology division maintained a strong gross profit margin of 52.5% in 2022[59] - Auto Services division improved its gross profit margin to 48.7% in 2022 from 44.4% in 2021[59] - Other income and expenses for 2022 amounted to approximately RMB107 million, a decrease from RMB131 million in 2021, primarily due to a reduction in interest income from entrusted loans by approximately RMB20 million[60] - The company recorded net gains of approximately RMB136 million in 2022, compared to net losses of RMB52 million in 2021, mainly due to net foreign exchange gains of RMB143 million from the appreciation of Hong Kong dollars against Renminbi[60] - Selling expenses decreased to approximately RMB946 million in 2022 from RMB988 million in 2021, primarily due to tighter control on advertising costs[61] - Administrative expenses decreased to approximately RMB512 million in 2022 from RMB542 million in 2021, mainly due to a reduction in equity-settled share-based payment expenses from RMB56 million to RMB43 million[61] - Finance costs for 2022 were approximately RMB156 million, representing interest expenses on lease liabilities following the adoption of HKFRS 16, compared to RMB161 million in 2021[61] - Adjusted net profit for 2022 was RMB266,046 thousand, excluding non-cash share-based payments and net foreign exchange gains/losses, compared to RMB432,009 thousand in 2021[63] - Adjusted EBITDA for 2022 was RMB1,188,512 thousand, derived from adjusted net profit excluding finance costs, income tax expenses, and depreciation expenses, compared to RMB1,380,229 thousand in 2021[63] Student Enrollment and Tuition Fees - Number of new students enrolled in 2022 was 134,347, a year-on-year decrease of 12.9% compared to 2021[15] - Average number of students enrolled nationwide in 2022 was approximately 143,000[15] - New East long-term student enrollment decreased by 13.2% to 27,090 in 2022 compared to 31,224 in 2021[33] - Omick short-term student enrollment dropped by 32.3% to 10,592 in 2022 from 15,648 in 2021[34] - Cuisine Academy short-term student enrollment declined by 34.3% to 9,189 in 2022 from 13,980 in 2021[34] - Xinhua Internet long-term student enrollment increased by 0.6% to 23,437 in 2022 compared to 23,307 in 2021[34] - Wontone long-term student enrollment rose by 10.6% to 17,490 in 2022 from 15,817 in 2021[35] - On-mind short-term student enrollment grew by 24.8% to 1,158 in 2022 from 928 in 2021[35] - The Group's total student enrollment decreased by 12.9% to 134,347 in 2022 from 154,259 in 2021[35] - New East average long-term student enrollment dropped by 5.7% to 55,608 in 2022 from 58,951 in 2021[38] - New East three-year long-term student enrollment increased by 20.5% to 27,806 in 2022 from 23,067 in 2021[38] - New East short-term student enrollment decreased by 12.6% to 4,601 in 2022 from 5,266 in 2021[38] - Omick's long-term courses (one to less than two years) saw a 27.5% increase in student enrollment, from 1,125 in 2021 to 1,434 in 2022[39] - Omick's short-term courses experienced a 40.3% decline in student enrollment, dropping from 5,060 in 2021 to 3,019 in 2022[39] - Cuisine Academy's short-term courses saw a 29.4% decrease in student enrollment, from 1,376 in 2021 to 972 in 2022[39] - Xinhua Internet's long-term courses (three years) increased by 13.6%, from 27,398 in 2021 to 31,117 in 2022[39] - Wontone's long-term courses (three years) grew by 34.2%, from 19,938 in 2021 to 26,763 in 2022[40] - On-mind's long-term courses (three years) increased by 85.4%, from 254 in 2021 to 471 in 2022[40] - The Group's total student enrollment decreased by 1.1%, from 144,365 in 2021 to 142,765 in 2022[41] - The Group's long-term courses saw a 1.2% increase in student enrollment, from 128,996 in 2021 to 130,491 in 2022[41] - New East's long-term tuition fees ranged from RMB 8,200 to 101,000 in 2022, compared to RMB 8,833 to 102,320 in 2021[43] - Xinhua Internet's short-term tuition fees ranged from RMB 499 to 36,000 in 2022, compared to RMB 240 to 48,000 in 2021[43] - Long-term program tuition fees for Wontone ranged from RMB6,800 to RMB38,800 in both 2021 and 2022[44] - Short-term program tuition fees for Wontone ranged from RMB800 to RMB37,500 in both 2021 and 2022[44] - Long-term program tuition fees for On-mind increased from RMB13,800-23,900 in 2021 to RMB13,900-27,800 in 2022[44] - Short-term program tuition fees for On-mind ranged from RMB3,600-29,600 in 2021 and RMB5,800-21,800 in 2022[44] Employment and Entrepreneurship Rates - Recommended employment and entrepreneurship rate for Wontone long-term program graduates reached 96.3% in 2022[46] - Recommended employment and entrepreneurship rate for On-mind long-term program graduates reached 95.5% in 2022[46] - New East and Xinhua Internet long-term program graduates achieved recommended employment and entrepreneurship rates of 94.0% and 94.1% respectively in 2022[46] - Omick long-term program graduates achieved a recommended employment and entrepreneurship rate of 92.3% in 2022[46] - The company provides graduate placement and entrepreneurial services to all long-term program students, with rates calculated based on students hired through these services[47] Expansion and Development Plans - The company plans to establish five self-owned regional centers in Beijing, Shanghai, Guangzhou, Chengdu, and Xi'an, equipped with advanced teaching and training facilities[83] - The company has acquired land in Guiyang and Henan for the construction of provincial education bases to reduce rental expenses and improve long-term student stability[83] - The company aims to expand its school network to cover all provincial capital cities and densely populated provinces with unmet demand for skilled workers[83] - The company plans to diversify course offerings in culinary arts, IT, auto services, and fashion/beauty, and explore new industry sectors for vocational training[84] - The company's regional center in Chengdu and education base in Shandong have already commenced operations[83] - The company has fully utilized the net proceeds of RMB 4,223.185 million from its initial public offering as of 31 December 2022, with 45% allocated for the acquisition of land and construction facilities to establish regional centers and provincial education bases[92] - 15% of the net proceeds (RMB 633.478 million) were used to establish schools in selected markets, while another 15% (RMB 633.478 million) was allocated for the establishment of new majors and curriculum innovation[92] - 15% of the net proceeds (RMB 633.478 million) were utilized for the construction and upgrade of school facilities and the purchase of teaching equipment[92] - 10% of the net proceeds (RMB 422.318 million) were allocated for working capital and general corporate purposes[92] Corporate Governance and Leadership - Mr. Wu Wei, aged 55, is the founder, executive director, and chairman of the board, responsible for the overall management and strategic development of the company[98] - Mr. Xiao Guoqing, aged 54, is an executive director and deputy chairman of the board, responsible for business management and providing opinions to the board[98] - Mr. Wu Junbao, aged 57, is a founder and non-executive director, responsible for providing opinions and judgments to the board[99] - Mr. Lu Zhen, aged 47, is a non-executive director, responsible for providing opinions and judgments to the board[99] - Mr. Wu Wei has over 30 years of experience in education and holds a senior economist qualification[98] - Mr. Xiao Guoqing has over 20 years of experience in education and holds a senior economist qualification[98] - Mr. Wu Junbao has over 30 years of experience in education and holds a senior economist qualification[99] - Mr. Lu Zhen has over 10 years of experience in education and holds a master's degree in business administration[99] - Mr. Wu Wei graduated from Tsinghua University with an executive master of business administration in 2009[98] - Mr. Xiao Guoqing graduated from Renmin University of China with a master of business administration in 2004 and an executive master of business administration in 2009[98] - Mr. Hung Ka Hai, Clement has served as an independent non-executive director of Gome Finance Technology Company Limited since 31 October 2016[100] - Mr. Hung served as an independent non-executive director of SY Holdings Group Limited from 19 June 2017 to 15 July 2022[101] - Mr. Hung has been a non-executive director of High Fashion International Limited since 1 December 2017[101] - Mr. Hung served as an independent non-executive director of Zhongchang International Holdings Group Limited from 12 January 2018 to 15 June 2020[101] - Mr. Hung has been an independent non-executive director of Aoyuan Healthy Life Group Company Limited since 22 February 2019[101] - Mr. Hung has been an independent non-executive director of Huarong International Financial Holdings Limited since 13 December 2019[101] - Mr. Hung served as an independent non-executive director of Tibet Water Resources Limited from 31 December 2019 to 30 June 2021[101] - Mr. Hung has been an independent non-executive director of Skyworth Group Limited since 18 March 2020[101] - Mr. Hung has been an independent non-executive director of Hong Kong Aerospace Technology Group Limited since 16 July 2021[101] - Mr. Hung has been an independent supervisor of Ping An Insurance (Group) Company of China, Ltd. since 18 July 2022[101] - Dr. Zhu Guobin, aged 61, is an independent non-executive Director of the company with extensive academic and legal expertise[102] - Dr. Zang Yunzhi, aged 43, is an independent non-executive Director since May 2021, holding a PhD in Business Administration (Accounting) from Duke University[103] - Mr. Au Yeung Siu Kei, aged 47, is the Chief Financial Officer responsible for the company's financial management, with over 20 years of experience in auditing and accounting[104] - Mr. Mao Chaosheng, aged 43, is the Joint Company Secretary with over 19 years of experience in administrative and human resources management[104] - Ms. Ng Sau Mei was appointed as Joint Company Secretary on December 31, 2021, with over 20 years of experience in corporate secretarial services[104] - The company has complied with all the code provisions set out in the Corporate Governance Code for the year ended 31 December 2022[105] - The Board held four meetings during the year, approving interim results and assessing business development and performance[107] - All Directors attended 4 out of 4 Board meetings, demonstrating full commitment[109] - The Board ensures timely provision of necessary information to members to enable effective discharge of duties[111] - The company is committed to enhancing corporate governance practices and regularly reviews them to align with statutory and professional standards[105] - The Board is responsible for formulating the Group's long-term strategy, approving dividends, and reviewing interim and annual reports[106] - Independent Non-executive Directors ensure high standards of financial and management reporting and provide a balanced composition in the Board[105] - The Board monitors the performance of senior management and reviews material acquisitions and disposals of assets[106] - The Chairman held a meeting with Independent Non-executive Directors without the presence of other Directors[110] - The company maintains a clear division of responsibilities between the Board and management, with the Board providing high-level guidance and oversight[106] - The company has no CEO, and daily operations are managed by an experienced management team[112][114] - The company has three Independent Non-executive Directors, all confirmed to be independent[113][115] - Directors are appointed for specific terms and subject to retirement by rotation and re-election at annual general meetings[116][117] - One-third of the Directors must retire and be eligible for re-election at each annual general meeting[117] - New Directors are introduced to the Group's major business activities and their responsibilities upon appointment[117] -
中国东方教育(00667) - 2022 - 年度财报