Enrollment and Student Statistics - As of December 31, 2019, China East Education operated 177 schools and centers, with an average of 135,571 students enrolled for the year[11]. - The average number of students enrolled in the New East Culinary Education brand was 68,229, while Omick Education had 4,441 students[11]. - The company expanded its operations to include 30 schools under Wontone Automotive Education, serving an average of 21,076 students[11]. - The Xinhua Internet Technology Education brand operated 25 schools with an average enrollment of 40,142 students[11]. - The Wisezone Data Technology Education brand had 22 schools, with an average of 1,017 students registered[11]. - The number of new student enrollments and new customers registered was 152,611, reflecting a growth of 12.6% compared to 2018[1]. - New East Culinary Education had a total enrollment of 77,448 students in long-term and short-term culinary programs, reflecting an 8.6% increase from 71,335 in 2018[35]. - Omick Education of Western Cuisine and Pastry registered 12,269 new students, a 33.6% increase compared to 9,180 in 2018[38]. - Cuisine Academy saw a significant growth of 74.2% in short-term program enrollments, reaching 10,066 students in 2019[38]. - Xinhua Internet Technology Education reported 27,854 new students in long-term courses, a 14.1% increase from 24,415 in 2018[38]. - The total number of new student enrollments across all segments for 2019 was 99,783, up 15.6% from 86,293 in 2018[38]. - Long-term course enrollment for the group rose by 2.7% to 70,965 in 2019, compared to 69,099 in 2018[39]. - Short-term course enrollment increased by 22.9% to 81,646 in 2019 from 66,430 in 2018[39]. - The overall total enrollment for the group reached 135,571 in 2019, marking an 8.9% increase from 124,534 in 2018[44]. Financial Performance - Revenue for the year ended December 31, 2019, increased to RMB 3,905 million, up from RMB 3,265 million in 2018, representing a growth of 19.5%[17]. - Gross profit for the year was RMB 2,280 million, compared to RMB 1,705 million in 2018, reflecting a year-over-year increase of 33.7%[17]. - Net profit for the year reached RMB 848 million, a significant rise from RMB 515 million in 2018, marking an increase of 64.5%[17]. - Adjusted net profit for the year was RMB 900 million, up from RMB 547 million in 2018, indicating a growth of 64.4%[17]. - The Group's operating revenue reached RMB 3,905 million, representing an increase of 19.6% compared to 2018, while net profit was RMB 848 million, an increase of 64.6%[1]. - The average tuition/service fee per student/customer increased from RMB 26.1 in 2018 to RMB 28.7 in 2019, reflecting a growth of 9.8%[63]. - The cost of revenue rose from approximately RMB 1,560 million in 2018 to approximately RMB 1,625 million in 2019, representing an increase of 4.2%[66]. - The Group's gross profit for the year ended 31 December 2019 was RMB 2,279,999 million, reflecting a significant increase in profitability across various segments[71]. Strategic Initiatives and Future Plans - The company plans to continue expanding its market presence and investing in new technologies and products to drive future growth[17]. - The Group plans to accelerate school development and enhance student recruitment quality while optimizing market operations to increase revenue and profitability[22]. - The Group aims to increase research and development investment to enhance innovation capabilities and sustain core competencies for business development[23]. - The company plans to expand its school network to cover all provincial capital cities in China, targeting cities with populations over five million in densely populated provinces[94]. - The company aims to establish new programs in response to anticipated market demand growth in sectors such as beauty, artificial intelligence, and healthcare[94]. - The company plans to hire additional teachers and instructors as it expands, with recruitment channels including word-of-mouth referrals and online recruiting[101]. Governance and Management - The company has a strong governance structure with independent non-executive directors contributing to oversight and strategic direction[110]. - The financial management team is well-qualified, with members holding professional accounting qualifications and degrees from reputable institutions[112]. - The Company has complied with all code provisions set out in the Corporate Governance Code from its listing date to December 31, 2019[117]. - The Board held four meetings during the year, addressing key matters such as approving interim results and assessing business performance[120]. - The Company has established a sound corporate governance framework with various committees, including the Audit and Remuneration Committees, to oversee its operations[149]. Market and Industry Context - The Ministry of Education of the PRC published a discussion draft of the Proposed Amendments to the Vocational Education Law in December 2019, which aims to elevate vocational education to an equal status with general education[172]. - Over 90% of the Group's operations are conducted in Mainland China, and any changes in policies may adversely affect the Group's operations and results[173]. - The Company will monitor legislative developments closely and provide updates as necessary[175]. - The introduction of new legislation and rules may induce changes in market conditions that could adversely affect the Group's operating results[173]. Employee and Social Responsibility - The company is committed to fulfilling social responsibility and promoting employee benefits and development[186]. - Full-time employees in China participate in various social security plans, with contributions based on a fixed percentage of last year's average salaries[103]. - Full-time employees in Hong Kong are part of a Mandatory Provident Fund Scheme, with contributions based on a percentage of their relevant income[103]. Shareholder Engagement and Dividends - The proposed final dividend is HK$0.21 (approximately RMB0.19) per ordinary share for the year ended 31 December 2019[188]. - The Board plans to maintain distributing not less than 30% of the distributable profit of the relevant financial year as dividend[191]. - The Company has adopted a Shareholders Communication Policy to ensure equal and timely access to information[177].
中国东方教育(00667) - 2019 - 年度财报