Financial Position and Performance - The consolidated financial statements reflect a fair view of the group's financial position as of August 31, 2024, in accordance with International Financial Reporting Standards[4]. - Total revenue for the year ended August 31, 2024, was RMB 322,901 thousand, representing an increase of 17.1% from RMB 275,765 thousand in 2023[25]. - Gross profit for the same period was RMB 118,871 thousand, up from RMB 105,358 thousand, indicating a growth of 12.9%[25]. - The company reported a net profit of RMB 19,952 thousand for 2024, a decrease of 65.3% compared to RMB 57,588 thousand in 2023[25]. - Other comprehensive income for the year was RMB 18,975 thousand, down from RMB 60,391 thousand in the previous year, reflecting a decline of 68.6%[27]. - Basic and diluted earnings per share for the parent company’s ordinary equity holders were RMB 0.0299, compared to RMB 0.0864 in 2023, a decrease of 65.4%[27]. - The company incurred financing costs of RMB 62,231 thousand, significantly higher than RMB 6,929 thousand in the previous year, indicating an increase of 798.5%[25]. - Other income and gains increased to RMB 7,864 thousand from RMB 3,699 thousand, marking a growth of 112.0%[25]. - The company experienced a foreign exchange loss of RMB 1,667 thousand in 2024, compared to a loss of RMB 8,125 thousand in 2023, showing an improvement[27]. - The total comprehensive income attributable to the parent company was RMB 18,980 thousand, down from RMB 60,406 thousand in the previous year, a decline of 68.7%[27]. - The company reported a pre-tax profit of RMB 20,067 thousand, a significant decrease of 65.2% from RMB 57,588 thousand in 2023[25]. Taxation and Compliance - The group has not incurred corporate income tax on formal education service revenue in China for the year 2024, benefiting from preferential tax treatment[8]. - The potential tax liability for the group's schools in China could be 25% on service fees if they do not qualify for any preferential tax treatment after registration as for-profit private schools[8]. - The group is currently in the process of classification registration for its schools in China, which are still categorized as non-enterprise private entities[8]. - Management's assessment of tax provisions involves significant judgments, particularly regarding the interpretation of tax laws related to the preferential tax treatment enjoyed by the group's schools[8]. - The group has engaged external legal advisors to understand the implications of existing tax rates applicable to its schools in China[8]. - The audit procedures included discussions with management to evaluate their interpretations of tax laws and the assessment of tax liabilities for the year[8]. - The group has received tax compliance confirmations from local tax authorities, which are considered in the audit[8]. - The financial statements include disclosures related to tax provisions and the group's tax obligations[8]. Assets and Liabilities - Non-current assets increased to RMB 2,179.7 million in 2024 from RMB 1,903.4 million in 2023, representing a growth of approximately 14.5%[29]. - Total current assets rose to RMB 363.8 million in 2024, up from RMB 292.4 million in 2023, marking an increase of about 24.4%[29]. - The company’s total liabilities, including current and non-current, increased to RMB 1,218.6 million in 2024 from RMB 926.8 million in 2023[42]. - Cash and cash equivalents amounted to approximately RMB 345.4 million as of August 31, 2024, compared to RMB 270.8 million in 2023, reflecting an increase of about 27.6%[42]. - The value of property, plant, and equipment rose to RMB 1,905.1 million in 2024, a year-on-year increase of approximately 7.2% from RMB 1,776.6 million in 2023[44]. - The company has sufficient working capital to meet its cash flow needs for at least the next 12 months, supported by accumulated net profits and available financing of RMB 336.2 million[41]. - The group recorded a net current liability of RMB 476,473,000, which includes contract liabilities of RMB 299,778,000 to be settled through educational services rather than cash[135]. - The group has sufficient financial resources amounting to RMB 156,167,000 and RMB 336,167,000 as of August 31, 2024, and the report date respectively, with RMB 192,894,000 already drawn post-period[135]. Operational Highlights - The company aims to strengthen professional construction and adapt to the development needs of the modern industrial system[99]. - The company is actively promoting the construction of a smart campus, launching the "Cloud Black Industry and Commerce" platform based on Huawei Cloud WeLink[117]. - The company aims to invest in vocational education by establishing vocational education institutions in the Yangtze River Delta and Beijing-Tianjin-Hebei regions, creating a new model of school-enterprise integration[121]. - The company is developing a digital lifelong learning system, aiming to create a "Future Learning Center" akin to an online education marketplace[122]. - The company has been recognized as a model unit for graduate employment and entrepreneurship work in Heilongjiang Province[116]. - The company has been appointed as the chairman unit of the employment cooperation body for private colleges in Heilongjiang Province[116]. - The company aims to develop a systematic, multi-level, and multi-dimensional operation for its educational services, gradually expanding its scale to continuously create value for shareholders[152]. - The strategic focus includes deep cooperation with international education groups to enhance dual-system education and talent cultivation models[149]. - The establishment of health-related majors and secondary colleges is planned to align with market demands[150]. - The company intends to integrate its advantageous majors with the Belt and Road Initiative, actively developing international student education[151]. - The group is positioned to serve regional economic and social development while aiming to be a first-class, nationally recognized application-oriented university[148]. Human Resources and Educational Quality - The number of teachers increased to 755 as of August 31, 2024[97]. - Total salary costs for the year ending August 31, 2024, amounted to RMB 100.8 million, up from RMB 87.4 million for the previous year[156]. - The employment rate for the 2024 graduates reached 87.92%, an increase of 2 percentage points compared to the previous year, with a local employment rate of 44.18%[116]. - The satisfaction rate of 2024 graduates regarding the education quality was 94.81%, while the satisfaction with faculty quality was 95.75%[116]. - Investment in teaching expenses increased by RMB 4.3 million compared to the previous year, reflecting a commitment to enhance teaching quality[87]. - A total of 598 teachers participated in various training programs throughout the year, enhancing their educational and professional skills[111]. - The school published 76 academic papers and received 3 patents and 3 software copyrights from September 2023 to August 2024[112]. - The school organized 14,359 student participations in research and practical activities from September 2023 to August 2024, with a total investment of 5.58 million RMB[104]. - The school has implemented a "145" research and practical education model, integrating various educational activities and themes[104]. Governance and Compliance - The audit report does not cover other information included in the annual report, which is the responsibility of the company's directors[12]. - The independent auditor for the company is Ernst & Young, providing audit services for the consolidated financial statements for the year ending August 31, 2024[105]. - The company established a compensation committee in July 2020 in accordance with the corporate governance code and report as per the listing rules[103]. - The board of directors is responsible for assessing and determining the nature and extent of risks acceptable to the group in achieving strategic objectives[108]. - The company has not appointed any other directors in the past three years[168]. Financial Reporting Standards - The company's financial statements are prepared in accordance with International Financial Reporting Standards and presented in Renminbi[131]. - The company plans to apply new and revised international financial reporting standards once they come into effect[179]. - The company expects no significant impact from the upcoming revisions to international financial reporting standards[181]. - The company is currently evaluating the impact of recent amendments to liability classification and their potential effects on financial statements[182]. - The company is currently analyzing the impact of the newly issued International Financial Reporting Standards (IFRS) 18 on its financial statement presentation and disclosures[185]. - The amendments to IFRS 9 and IFRS 7 clarify the derecognition date of financial assets or liabilities and introduce an accounting policy option for certain financial liabilities[189]. - The company does not expect any significant impact on its financial statements from the newly issued IFRS amendments[189]. - The amendments to IFRS 10 clarify relationships described in the standard, which are examples of various relationships that may exist between investors and other parties acting as their agents[191]. - The company is not eligible to apply IFRS 19 as it is a listed company, although some subsidiaries are considering its application in their specific financial statements[186]. - The amendments to IFRS 7 have been updated to simplify terminology and ensure consistency with other standards[190]. - The company is allowed to early adopt the new IFRS standards and amendments, which are effective for annual periods beginning on or after January 1, 2027[185]. - The amendments to IFRS 9 address potential confusion regarding the derecognition of lease liabilities and require recognition of any resulting gains or losses in profit or loss[191]. - The company anticipates no significant impact on its financial statements from the amendments to IFRS 7, IFRS 9, and IFRS 10[191]. - The company is evaluating the cumulative effects of the new standards on its retained earnings and equity components[189]. Joint Ventures and Fair Value Measurement - The group accounts for investments in joint ventures using the equity method, recognizing its share of net assets less any impairment losses in the consolidated balance sheet[193]. - The group's share of joint ventures' performance and other comprehensive income is included in the consolidated income statement and other comprehensive income[193]. - Upon loss of joint control over a joint venture, the group measures and recognizes any retained investment at fair value, with any difference between the carrying amount and fair value recognized in profit or loss[194]. - Fair value measurements for equity investments are conducted at each reporting period end, assuming orderly transactions in the principal market[199]. - The group employs appropriate valuation techniques and uses observable data wherever possible to measure fair value, minimizing reliance on unobservable inputs[199]. - Non-financial asset fair value measurements assess the ability of market participants to maximize economic benefits from the asset[199]. - The group classifies all assets and liabilities measured or disclosed at fair value into three levels based on the significance of the inputs used[199]. - The group recognizes unrecognized gains and losses from transactions with joint ventures only to the extent of the group's investment in the joint venture[193]. - The goodwill arising from the acquisition of joint ventures is included as part of the group's investment in the joint venture[193]. - The group must be able to transact in the principal or most advantageous market for the asset or liability being measured[199].
立德教育(01449) - 2024 - 年度财报