Financial Performance - For the six months ended February 29, 2024, the Group achieved a 13.8% year-on-year increase in revenue from its principal business[10]. - Total revenue for the six months ended February 29, 2024, was RMB 1,482.3 million, an increase of 12.2% from RMB 1,321.3 million for the same period in 2023[55]. - Revenue increased to RMB 1,310.8 million, up 13.8% from RMB 1,152.2 million year-on-year, driven by the group's continuous high-quality development and steady growth in tuition and accommodation fees[56]. - Gross profit for the period was RMB 521.2 million, representing a 15.1% increase from RMB 452.7 million in the previous year, with a gross margin of 39.8% compared to 39.3% in the prior year[58]. - Adjusted net profit attributable to owners of the parent for the six months ended February 29, 2024, was RMB 426.1 million, a 7.6% increase from RMB 396.0 million for the same period in 2023[55]. - Profit before tax increased to RMB 530.0 million, representing a 14.7% increase from RMB 462.1 million year-on-year[68]. - Net profit increased by 10.6% to RMB 432.0 million, compared to RMB 390.5 million for the same period last year[68]. - Basic and diluted earnings per share for the period were RMB 0.28, compared to RMB 0.25 for the same period last year, indicating a 12% increase[172]. - Total comprehensive income for the period was RMB 424,950,000, up from RMB 386,838,000, marking a 9.8% increase year-over-year[174]. Employment and Talent Development - The employment rate of the Group's schools is among the highest in each province and region, with continuous improvement in high-quality employment rates[6]. - The overall employment rate of the Group's 2023 graduates is 96.97%, with high-quality employment proportion reaching 27.76%, an increase of 5.8 percentage points year-on-year[16]. - The number of graduates employed in Fortune Global 500, China's Top 100, and A-share listed companies increased by 88.06%[17]. - The Group has cumulatively cultivated over 400,000 high-quality technical talents for society as of February 29, 2024[6]. - The Group has established strategic partnerships with 1,156 well-known companies and built 54 modern industrial colleges[12]. - The number of students reaching the score line in the postgraduate entrance examination increased by 31.5% compared to last year[14]. - The Group has added 7 undergraduate majors urgently needed for national strategic and local regional development, including a dentistry program, with only five institutions nationwide approved to offer it[12]. Educational Quality and Initiatives - The Group focuses on building a student-oriented university and adheres to the philosophy of "teaching students in accordance with their aptitude" to enhance educational quality[10]. - The Group has been dedicated to higher vocational education for over 25 years, emphasizing practical application in its educational approach[10]. - The "Wonderful Classroom" competition has been successfully held for 15 consecutive years, promoting quality improvement in teaching[12]. - The proportion of students with high satisfaction reached 84%, an increase of 12 percentage points compared to the previous year[19]. - Complaints on the student and teacher opinion management platform have dropped by 39%, while praise opinions increased from 3% to 16%[19]. - The Group aims to create high-quality teaching, employment, experience, and campus environments for students[22]. Financial Management and Investments - The Group has invested RMB 281 million to enhance the educational environment, including upgrading teaching facilities and beautifying the campus[18]. - Investment in teachers increased by 10.5% year-on-year, with the number of "dual-qualified" teachers and "double-high" teachers rising by 19% and 25%, respectively[12]. - The group’s administrative expenses rose to RMB 53.3 million, an increase of 18.7% from RMB 44.9 million in the previous year[55]. - The cost of sales increased to RMB 789.6 million, up 12.9% from RMB 699.5 million year-on-year, primarily due to campus upgrades and increased personnel costs[57]. - Capital expenditures during the reporting period were RMB 397.3 million, mainly for the construction of school buildings and facilities, land acquisition, and purchase of furniture and equipment[78]. Corporate Governance and Compliance - The Group has complied with all applicable code provisions set out in the Corporate Governance Code during the reporting period[92]. - The Board will continue to review and improve corporate governance practices to optimize returns for shareholders[92]. - The Group emphasizes effective corporate governance as essential for creating shareholder value[92]. - The Group is committed to integrating ESG principles into its operations, focusing on stable performance growth and sustainable development[55]. - The Group has been awarded the "Best ESG Information Disclosure Award" in the 8th Zhitong Finance Listed Company Selection in 2023[21]. Shareholder Information and Dividends - The Group will maintain a dividend payout ratio of 50% for this financial year[10]. - The Group has resolved not to declare an interim dividend for the six months ended 29 February 2024, planning to pay dividends once a year instead[92]. - The company has a dividend policy aiming to recommend an annual dividend of not less than 30% of the profits available for distribution earned in each financial year[163]. - The board will continue to review the dividend policy but there is no assurance that dividends will be paid in any specific amount or at all[163]. Regulatory Environment - The provision of higher education in the PRC falls within the "restricted" category according to the Negative List, requiring foreign investors to cooperate with PRC educational institutions[127]. - The foreign portion of total investment in a Sino-Foreign Joint Venture Private School must be below 50% as per the Implementation Opinions[127]. - The establishment of these schools requires approval from provincial or national education authorities[130]. - The company is still awaiting approval from the BPPE to establish a new school in California[131]. - The Group's operations have not been affected by the 2021 Implementation Rules as of the report date[138].
新高教集团(02001) - 2024 - 中期财报