Educational Institutions and Programs - The company operates 22 educational institutions, including 9 undergraduate schools, 11 vocational colleges, and 2 technical schools[8]. - In the fiscal year 2021, the company established 6 national-controlled majors and 15 provincial-controlled majors across 7 institutions, with 34 courses recognized as national-level courses[12]. - The company has cumulatively trained 125,800 skilled talents since its listing in 2018, contributing significantly to social and economic development[12]. - The company has a student enrollment of 232,000 across its institutions, supporting sustainable development in higher vocational education[13]. - The company is focused on sustainable development supported by national policies and a robust educational network across ten provinces, ensuring effective support for higher vocational education expansion[13]. - The company has received 516 awards or honors across its institutions, including 28 first prizes in national competitions and 304 first prizes in provincial competitions[12]. - The company operates 46 undergraduate and vocational programs, focusing on rail transportation and civil engineering as key disciplines[61]. - The company has established 11 first-class undergraduate programs and 24 first-class courses recognized at the regional level[66]. - The company has developed partnerships with 12 international institutions, enhancing its global educational collaboration[66]. - The company has achieved a record enrollment rate, ranking first among similar institutions in the province[63]. - The company has opened 28 undergraduate programs at the Inner Mongolia University Entrepreneurship College, with five programs recognized as first-class at the regional level[68]. - The company has a total of 29 undergraduate programs across six academic disciplines at Guizhou Qiannan Economic College[63]. - The company has established 110 stable off-campus practice bases in collaboration with enterprises[68]. - The company has 36 experimental training rooms at the Baiyin Hope Vocational and Technical College, focusing on new energy vehicle technology and big data[59]. - The company has a total of 25 undergraduate programs at Guizhou Qiannan Science and Technology College, covering six major academic disciplines[64]. - The company has achieved 574 awards in various provincial and national scientific competitions over the past five years[67]. - The college has established 43 majors across 9 categories, with 3 provincial-level characteristic majors and 127 research projects[71]. - The college has formed a "233+X" talent training model through deep integration with enterprises, establishing 119 off-campus training bases[72]. - The college has developed 20+ majors in automotive technology, with a 100% certification rate for graduates' vocational qualifications and an employment rate exceeding 85% for two consecutive years[75]. - The college has established 46 majors and maintained a graduate employment rate of over 97% for several years[78]. - The college has implemented a cooperative model with enterprises, completing internships for over 2,473 students across 27 projects[79]. - The college has formed three major professional groups focusing on film and television media, art design, and music and dance[81]. - The company has established partnerships with over 86 large enterprises and industry associations to create internship and training bases[87]. - The company plans to enhance its educational offerings by focusing on "one school, one feature" strategy, optimizing school positioning and increasing investment in characteristic majors[93]. - The company aims to improve student quality and capabilities by reforming curriculum and teaching content to meet new demands from society and industries[94]. - The company is committed to promoting collaborative development between domestic and overseas institutions, leveraging its partnerships with universities in Malaysia and Thailand[95]. - The company has signed cooperation agreements with over 30 enterprises, enhancing practical training facilities[83]. - The company has established a national-level key professional in construction engineering technology and several provincial-level key programs[82]. - The company has maintained stable operations in domestic institutions despite the impact of the COVID-19 pandemic, while facing challenges in overseas recruitment[89]. - The company is enhancing its competitive edge in private higher education by building distinctive schools and programs[92]. Financial Performance - Revenue for the year ended August 31, 2021, reached RMB 2,324.27 million, a significant increase of 166.5% compared to RMB 872.08 million for the same period in 2020[17]. - Adjusted gross profit for the same period was RMB 1,237.12 million, reflecting a 204.3% increase from RMB 406.53 million in 2020[19]. - Net profit for the year was RMB 605.12 million, up 407.0% from RMB 119.35 million in the previous year[17]. - The adjusted net profit margin improved to 37.3%, an increase of 14.2% from 23.1% in the prior year[17]. - New student enrollment increased by 49.3% to 72,830 for the academic year 2020/2021, compared to 48,789 in 2019/2020[17]. - Total enrolled students reached 196,747, a 40.4% increase from 140,125 in the previous year[17]. - The company acquired additional institutions, which contributed an estimated 24,257 students not included in the total enrollment figures[18]. - Adjusted net profit for the year was RMB 866.36 million, a 330.5% increase from RMB 201.26 million in the previous year[21]. - The adjusted gross profit margin for the year was 53.2%, up from 46.6% in the previous year, indicating improved operational efficiency[17]. - The company reported revenue of RMB 2,324.27 million for the fiscal year ending August 31, 2021, representing a 48.2% increase from RMB 1,568.12 million in the previous year[30]. - Adjusted gross profit for the same period was RMB 1,237.12 million, up 50.4% from RMB 822.36 million year-over-year[29]. - The net profit for the fiscal year was RMB 605.12 million, reflecting a 32.6% increase compared to RMB 456.45 million in the prior year[30]. - The company experienced a significant increase in enrollment numbers and raised tuition fees, contributing to the revenue growth[32]. - Sales costs rose to RMB 1,148.30 million, an increase of 45.2% from RMB 790.74 million in the previous year[33]. - The adjusted net profit for the fiscal year was RMB 866.36 million, a 50.5% increase from RMB 575.78 million year-over-year[29]. - The company incurred restructuring costs of RMB 412.30 million during the fiscal year, which were not present in the previous year[30]. - The company reported other income and gains of RMB 666.53 million, a substantial increase of 177.3% from RMB 240.37 million in the previous year[30]. - The adjusted gross margin improved to 53.2% for the fiscal year ending August 31, 2021, compared to 52.4% in the previous year[32]. - The company plans to continue expanding through acquisitions and increasing enrollment in its existing institutions[32]. - For the fiscal year ending August 31, 2021, the adjusted gross profit was RMB 1,237.12 million, with an adjusted gross profit margin of 53.2%, representing a year-on-year increase of RMB 414.76 million or 50.4%[35]. - Other income and gains for the fiscal year ending August 31, 2021, amounted to RMB 666.53 million, a significant increase of RMB 426.16 million or 117.3% compared to the previous year[35]. - Sales expenses for the fiscal year ending August 31, 2021, reached RMB 147.21 million, reflecting a year-on-year increase of RMB 85.88 million or 140% due to increased marketing expenses for student recruitment[37]. - Administrative expenses for the fiscal year ending August 31, 2021, were RMB 332.75 million, an increase of RMB 137.3 million or 70.2% compared to the previous year, primarily due to new acquisitions[37]. - The financing costs for the fiscal year ending August 31, 2021, were RMB 298.42 million, an increase of RMB 89.80 million or 43% year-on-year, attributed to expanded operational scale and acquisition-related financing[39]. - The adjusted net profit for the fiscal year ending August 31, 2021, was RMB 866.36 million, a year-on-year increase of RMB 290.58 million or 50.5%[39]. - As of August 31, 2021, the total cash and bank balances amounted to RMB 4,814.40 million, with cash and cash equivalents at RMB 4,357.29 million, up from RMB 2,894.44 million the previous year[42]. - The total bank loans and borrowings as of August 31, 2021, were RMB 3,110.50 million, with interest rates ranging from 4.34% to 14.5%[43]. - The current ratio as of August 31, 2021, was 0.83, down from 1.18 the previous year, indicating a decrease in liquidity[45]. - The company has committed capital expenditures of RMB 1,662.66 million as of August 31, 2021, primarily related to property and equipment acquisitions[41]. - The debt-to-equity ratio as of August 31, 2021, was 39.84%, a decrease from 54.75% as of August 31, 2020[47]. - The net debt-to-equity ratio was -21.83% as of August 31, 2021, down from -5.27% a year earlier, indicating a reduction of 16.56%[46]. Governance and Management - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors[101]. - The CEO and President, Wang Huiwu, has been with the group since January 5, 2005, and is responsible for overall strategic planning and operational management[103]. - The group appointed a new Chief Financial Officer, Yuan Junmin, effective January 1, 2021, responsible for financial management[103]. - The company has a strong governance structure with independent directors providing oversight and independent opinions[104]. - The chairman, Xu Changjun, has extensive experience in finance and has been recognized as an outstanding CFO in China[104]. - The management team includes CEO Wang Huiwu and COO Jiang Lin, with extensive experience in education and administrative management[114][116]. - The management team has a combined experience in various sectors, including finance, education, and administration, contributing to strategic decision-making[114][116]. - The board of directors has a commitment to corporate governance and compliance with regulatory standards[112]. - The company has a strong governance structure with independent directors and a diverse board[112]. Market Expansion and Strategy - The company plans to actively respond to national initiatives for international educational cooperation with ASEAN countries, focusing on vocational education and degree recognition[13]. - The company plans to continue expanding its market presence through acquisitions and new educational offerings[19]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[5]. - A strategic acquisition of a local educational technology firm is anticipated to enhance the company's product offerings and customer base[6]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs through process optimization[8]. - The company plans to implement new marketing strategies to boost brand awareness, aiming for a 40% increase in online engagement[10]. - The company is focused on providing higher education services as an investment holding company[120]. - The company has been expanding its educational offerings and partnerships to enhance its market presence[120]. - The company has implemented new strategies to improve operational efficiency and educational quality[120]. Risks and Compliance - The group faced significant risks including tuition fee dependency and intense competition in the private higher education sector in China[126]. - The company has adopted a dividend policy that is subject to the board's discretion based on future operational performance and capital needs[129]. - The company has implemented measures to mitigate risks and uncertainties related to regulatory changes in the private education sector[128]. - The group has not identified any significant non-compliance issues with relevant laws and regulations that would materially impact its business operations as of August 31, 2021[122]. - The company may face challenges in successfully integrating acquired businesses, which could lead to additional costs and loss of expected benefits[128]. Shareholder Information - As of August 31, 2021, the total number of shares issued by the company was 7,981,260,173 shares[141]. - Wang Huiwu, the CEO, holds a controlled entity interest of 4,140,948,240 shares, representing 51.88% of the company's equity[139]. - Major shareholders include Hope Education Investment Limited, which holds 4,140,948,240 shares, also representing 51.88%[145]. - The company has a stock option plan that involves a total of 500,000,000 shares, accounting for approximately 6.26% of the issued shares as of the report date[155]. - As of August 31, 2021, there are 276,577,787 unexercised stock options under the stock option plan, representing about 3.5% of the company's issued capital[161]. - The stock option plan was adopted on March 18, 2018, and is valid until the first trading day of the shares on the Hong Kong Stock Exchange, which was August 3, 2018[160]. - The exercise prices for the stock options are set at HKD 0.68, HKD 1.07, and HKD 1.30 for different batches[159]. - The company has a controlled equity structure with significant holdings by various entities, including China Everbright Group and its subsidiaries[148]. - The stock option plan aims to align the interests of selected participants with those of shareholders and reward outstanding performance[153]. - As of August 31, 2021, the company has granted stock options to 321 participants under the stock option plan[161]. Related Party Transactions - The company has established a property leasing framework agreement with related parties, effective from January 1, 2021, to August 31, 2023[176]. - The company has set annual rental caps for properties leased to related parties, with proposed limits of RMB 30 million for 2022 and 2023[175]. - The company confirmed that all related party transactions comply with the listing rules and are conducted on fair commercial terms[174]. International Operations and Compliance - The company is focused on expanding its business through contractual arrangements to comply with Chinese regulations on foreign ownership in the education sector[179]. - The company has not faced any interference or obstruction from Chinese regulatory authorities regarding contractual arrangements as of the report date[182]. - The exclusive management consulting and business cooperation agreement allows the foreign-invested enterprise to provide management and educational services, with all intellectual property rights generated from the agreement owned by the foreign-invested enterprise[186]. - The exclusive call option agreement grants the foreign-invested enterprise the right to purchase all or part of the company's equity at the minimum price permitted by Chinese laws[188]. - The equity pledge agreement provides the foreign-invested enterprise with a first priority pledge on all equity of the company to ensure compliance with the management consulting and call option agreements[189]. - The irrevocable power of attorney allows the foreign-invested enterprise to appoint directors and vote on matters requiring shareholder approval[191].
希望教育(01765) - 2021 - 年度财报