Financial Performance - The company achieved revenue of approximately RMB 969.9 million for the year ended December 31, 2024, representing a year-on-year growth of 4.3%[13] - Gross profit for the same period was approximately RMB 539.9 million, a decrease of 6.0% year-on-year[13] - Net profit for the year was approximately RMB 223.6 million, reflecting a year-on-year decline of 21.1%[13] - Revenue increased by RMB 40.0 million or 4.3% to RMB 969.9 million for the year ending December 31, 2024, primarily due to an increase in tuition and boarding fees by approximately RMB 36.6 million or 4.0%[47] - Cost of sales rose by approximately RMB 74.5 million or 20.9% to RMB 430.0 million, mainly driven by an increase in salary costs by approximately RMB 50.3 million or 26.8%[48] - Gross profit decreased by approximately RMB 34.5 million or 6.0% to approximately RMB 539.9 million, with a gross margin of 55.7%, down 6.1 percentage points from the previous year[49] - Profit before tax decreased by approximately RMB 81.0 million or 21.4% to approximately RMB 298.3 million[54] - The net profit margin fell to 23.1% in 2024 compared to 30.5% in 2023[65] - The return on assets (ROA) declined to 5.6% in 2024 from 7.5% in 2023[65] - The return on equity (ROE) decreased to 9.7% in 2024 from 13.1% in 2023[65] Student Enrollment and Employment - For the 2024/25 academic year, the company enrolled 4,505 undergraduate students and 763 diploma students, with a total full-time student population reaching 23,928[14] - The total number of full-time students at the university for the 2024/25 academic year is 23,928, a decrease of 1,085 from the previous year[21] - The university's undergraduate program enrollment for 2024/25 is 4,505, with 763 in the associate degree program and 1,838 in the top-up program[21] - The company maintained a stable employment rate for graduates, achieving a rate of 99.1% for the 2024 cohort[14] - The employment rate for the 2024 graduating class reached 99.1%, with a further 5.7% pursuing further education and 4.6% studying abroad[36] - The overall satisfaction rate of employers hiring graduates from the institution has consistently exceeded 95% from 2022 to 2024[36] Academic Programs and Development - The company has established 15 first-class undergraduate programs recognized by Shanghai, along with various national and provincial level programs[14] - The university has established 70 "AI+ courses" and successfully approved 9 of them for the 2024 Shanghai key course application, accounting for 32.1% of the total approved courses[17] - The college has 29 programs ranked in the top 10 nationally and 33 programs in the top 20, with 14 programs, including Gemstone and Material Craft, ranked first in the country[33] - The college aims to enhance practical teaching and quality education, with 12 courses selected as first-class undergraduate courses in Shanghai for 2024, bringing the total to 31[34] - The college is actively exploring new models of industry-education integration, supported by national policies to enhance vocational education quality[30] - The college's faculty development strategy includes a focus on dual-qualified teachers, with 45.7% of faculty meeting this criterion[34] Financial Management and Governance - The company plans to distribute a final dividend of HKD 0.1 per share, resulting in a total annual dividend of HKD 0.2 per share, with a payout ratio of 34.0%[13] - The company has established a risk management framework to address various operational risks, including changes in the regulatory environment and competition from other educational institutions[122] - The company has complied with all relevant laws and regulations that significantly impact its operations during the fiscal year ending December 31, 2024[121] - The company has not faced significant operational or liquidity issues due to currency fluctuations[68] - The company has a policy of conducting credit checks on all potential clients, and the level of bad debts remains insignificant[125] Strategic Initiatives and Future Plans - The university aims to complete the transformation into a vocational education integration university by 2030, with a full completion target by 2035[18] - The university is actively promoting digital transformation and has plans to enhance educational services by 2025 through the development of a large educational model[17] - The university's strategic focus includes deepening integration with industry and internationalization, aiming to enhance its influence as a leading private university in China[18] - The company plans to utilize the remaining unallocated net proceeds of approximately HKD 231.7 million for campus construction, reflecting a strategic focus on enhancing educational facilities[129] Shareholder Information and Corporate Structure - As of December 31, 2024, Mr. Zhao Donghui holds a total of 100,000,000 shares, representing 24.10% of the company's equity[148] - Mr. Ye Qionghai holds 4,728,000 shares, representing 1.14% of the company's equity[148] - The total issued share capital of the company is 415,000,000 shares as of December 31, 2024[149] - The company has a share incentive plan adopted on December 11, 2020, allowing for the issuance of existing shares and new shares under specific conditions[154] - The share incentive plan has a remaining duration of about 6 years as of December 31, 2024[157] Legal and Regulatory Compliance - The company is committed to complying with the qualification requirements for foreign investors in the education sector, which stipulate that the foreign investment portion must be less than 50%[188] - Future legal or regulatory changes could classify the new contractual arrangements as foreign investment, impacting their legality and operational status[191] - The effectiveness of the new contractual arrangements may not equate to direct ownership, potentially leading to loss of control over the new Chinese affiliate[197] - The company is monitoring the legal and operational environment to ensure compliance with applicable laws and regulations[200]
建桥教育(01525) - 2024 - 年度财报