建桥教育(01525) - 2025 - 中期业绩

Interim Results Announcement Financial Highlights The Group's unaudited interim condensed consolidated financial results for the six months ended June 30, 2025, show a decrease in revenue, gross profit, profit before tax, and profit for the period, with profit before tax declining by 12.1% | For the six months ended June 30 | 2025 (RMB thousand) | 2024 (RMB thousand) | Percentage Change | | :------------------------------- | :------------------ | :------------------ | :---------------- | | Revenue | 534,054 | 535,434 | -0.3% | | Gross Profit | 317,204 | 330,833 | -4.1% | | Profit Before Tax | 212,334 | 241,690 | -12.1% | | Profit for the Period | 162,061 | 179,857 | -9.9% | Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue slightly decreased by 0.3% to RMB 534,054 thousand, with cost of sales increasing by 6.0%, leading to a 4.1% decline in gross profit | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :------------------------------- | :------------------ | :------------------ | | Revenue | 534,054 | 535,434 | | Cost of Sales | (216,850) | (204,601) | | Gross Profit | 317,204 | 330,833 | | Profit Before Tax | 212,334 | 241,690 | | Profit for the Period | 162,061 | 179,857 | | Basic and Diluted Earnings Per Share | 0.41 | 0.45 | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's profit for the period was RMB 162,061 thousand, with net other comprehensive income of RMB 230 thousand, resulting in total comprehensive income of RMB 162,291 thousand, a decrease from RMB 178,511 thousand in the prior year | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :------------------------------- | :------------------ | :------------------ | | Profit for the Period | 162,061 | 179,857 | | Net Other Comprehensive Income | 230 | (1,346) | | Total Comprehensive Income for the Period | 162,291 | 178,511 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total non-current assets increased to RMB 3,190,508 thousand, while current assets significantly decreased to RMB 443,265 thousand, primarily due to reduced financial assets and cash balances, with net assets increasing to RMB 2,442,808 thousand | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :----------------------------------- | :--------------------------- | :------------------------------- | | Total Non-current Assets | 3,190,508 | 3,144,694 | | Total Current Assets | 443,265 | 830,568 | | Total Current Liabilities | 513,792 | 978,993 | | Net Current Liabilities | (70,527) | (148,425) | | Total Assets Less Current Liabilities | 3,119,981 | 2,996,269 | | Total Non-current Liabilities | 677,173 | 679,139 | | Net Assets | 2,442,808 | 2,317,130 | | Total Equity | 2,442,808 | 2,317,130 | Notes to the Interim Condensed Consolidated Financial Information 1. Company Information The Company, incorporated in the Cayman Islands on May 8, 2018, operates as an investment holding company primarily providing undergraduate and vocational education services in China - The company is an investment holding company, primarily providing undergraduate and vocational education services in China[10] 2. Basis of Preparation and Changes in Accounting Policies and Disclosures The interim condensed consolidated financial information is prepared under IAS 34, with consistent accounting policies from 2024, and the initial adoption of revised IFRS had no material impact on the Group's financial information - Interim financial information is prepared in accordance with IAS 34, with accounting policies consistent with the prior year, and the newly adopted IAS 21 amendments have no impact on financial information[11][12][13] 3. Operating Segment Information The Group operates solely in China, providing higher education services, and therefore presents no separate operating segment or geographical information as all revenue and long-term assets originate from China - The Group operates solely in China, providing higher education services, with no separate operating segment or geographical information presented[14][15] - No single customer's revenue accounted for 10% or more of total revenue during the period[16] 4. Revenue The Group's revenue, primarily from tuition and accommodation fees, totaled RMB 534,054 thousand for the six months ended June 30, 2025, remaining largely stable compared to the prior year, with performance obligations generally satisfied over time and paid in advance | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :----------------------- | :------------------ | :------------------ | | Tuition Fees | 451,863 | 454,760 | | Accommodation Fees | 72,202 | 70,636 | | Education-related Services | 8,473 | 8,409 | | Other Services | 1,516 | 1,629 | | Total | 534,054 | 535,434 | - Performance obligations for tuition and accommodation fees are satisfied over time and generally paid in advance before the start of the academic year[19] 5. Profit Before Tax The Group's profit before tax is reported after deducting various expenses, including increased employee benefit expenses and depreciation/amortization, reflecting operational costs for the period | Expense Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :----------------------------------------- | :------------------ | :------------------ | | Cost of Services Provided | 216,850 | 204,601 | | Total Employee Benefit Expenses | 191,843 | 177,175 | | Depreciation of Property, Plant and Equipment | 57,882 | 50,932 | | Depreciation of Right-of-Use Assets | 7,990 | 7,952 | | Amortization of Other Intangible Assets | 1,135 | 495 | | Net Impairment Loss on Trade Receivables | 2,653 | 2,176 | | Net Impairment Loss on Other Receivables | 98 | 26 | 6. Income Tax Expense The Company is exempt from income tax in the Cayman Islands, while its mainland China subsidiaries are subject to either a 15% or 25% corporate income tax rate, resulting in a period income tax expense of approximately RMB 50.3 million due to reduced profit before tax - Gench WFOE benefits from a 15% corporate income tax rate due to its "High-tech Enterprise" qualification, while other mainland China subsidiaries are subject to 25%[21][22] | Income Tax Components | 2025 (RMB thousand) | 2024 (RMB thousand) | | :-------------------- | :------------------ | :------------------ | | Current | 48,879 | 56,246 | | Deferred | 1,394 | 5,587 | | Total Tax for the Period | 50,273 | 61,833 | 7. Dividends The Board of Directors has resolved to declare an interim dividend of HKD 0.10 per ordinary share for the six months ended June 30, 2025, maintaining consistency with the prior year - The Board of Directors resolved to pay an interim dividend of HKD 0.10 per ordinary share for the six months ended June 30, 2025, which is the same as the prior year[24] 8. Earnings Per Share Attributable to Owners of the Parent For the six months ended June 30, 2025, basic and diluted earnings per share decreased to RMB 0.41 from RMB 0.45 in the prior year, primarily reflecting a reduction in profit for the period | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :------------------------------------------------ | :------------------ | :------------------ | | Profit for the purpose of calculating basic and diluted earnings per share | 162,061 | 179,857 | | Weighted Average Number of Ordinary Shares (shares) | 394,500,000 | 395,401,500 | - For the six months ended June 30, 2025 and 2024, the Group had no outstanding potential dilutive ordinary shares[26] 9. Property, Plant and Equipment As of June 30, 2025, the Group's net property, plant and equipment was RMB 2,388,330 thousand, a slight decrease from the beginning of the year, primarily due to depreciation expenses exceeding new additions | Item | June 30, 2025 (RMB thousand) | | :--------------------------------- | :--------------------------- | | As at January 1, 2025 | 2,407,320 | | Additions | 38,929 | | Disposals | (37) | | Depreciation for the Period | (57,882) | | As at June 30, 2025 | 2,388,330 | 10. Trade Receivables As of June 30, 2025, total trade receivables significantly decreased to RMB 5,359 thousand from RMB 11,748 thousand as of December 31, 2024, with the majority concentrated within 1 year | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--------- | :--------------------------- | :------------------------------- | | Within 1 year | 4,288 | 9,517 | | 1 to 2 years | 885 | 1,684 | | 2 to 3 years | 186 | 481 | | Over 3 years | – | 66 | | Total | 5,359 | 11,748 | 11. Share Capital As of June 30, 2025, the Company's authorized share capital was 500,000,000 ordinary shares of HKD 0.01 each, with 415,000,000 issued and fully paid shares, amounting to RMB 3,677 thousand, consistent with December 31, 2024 | Share Capital Type | June 30, 2025 (Number of Shares) | December 31, 2024 (Number of Shares) | | :-------------------------------------- | :------------------------------- | :----------------------------------- | | Number of Authorized Ordinary Shares | 500,000,000 | 500,000,000 | | Number of Issued and Fully Paid Ordinary Shares | 415,000,000 | 415,000,000 | | Share Capital Amount | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :-------------------------------------- | :--------------------------- | :------------------------------- | | Authorized Ordinary Shares | 4,462 | 4,462 | | Issued and Fully Paid Ordinary Shares | 3,677 | 3,677 | 12. Share Award Scheme The Share Award Scheme, approved on December 11, 2020, aims to recognize and retain talent, with the trustee holding 20,500,000 shares totaling RMB 84,504 thousand as of June 30, 2025, and no awards granted, lapsed, or cancelled during the period - The Share Award Scheme aims to recognize contributions, retain talent, and attract suitable personnel, valid from December 11, 2020, until terminated by the Board or no awards are granted after its 10th anniversary[31] - China Merchants Wing Lung Trust Company Limited, as trustee, manages the trust fund, including awarded shares and related income[32][33] | Item | Number of Shares | Total (RMB thousand) | | :------------------------ | :----------------- | :------------------- | | As at January 1, 2025 | 20,500,000 | 84,504 | | Purchases and Withholdings | – | – | | As at June 30, 2025 | 20,500,000 | 84,504 | 13. Commitments As of the reporting period end, the Group's contractual commitments primarily related to the acquisition of property, plant and equipment, amounting to RMB 6,293 thousand, an increase from December 31, 2024 | Commitment Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--------------------------- | :--------------------------- | :------------------------------- | | Property, Plant and Equipment | 6,293 | 4,388 | Business Overview Introduction to the Group The Group operates Shanghai Jian Qiao University, Shanghai's largest private university by full-time student enrollment in 2024/25, consistently ranking third among Type I private universities in China - Shanghai Jian Qiao University, operated by the Group, is Shanghai's largest private university and has consistently ranked third among Type I private universities in China for four consecutive years[37] Student Enrollment In the 2024/25 academic year, total full-time student enrollment was 23,928, a decrease of 1,085 from the prior year, mainly due to graduates from the "Junior College to Undergraduate" program, while planned undergraduate enrollment for 2025/26 increased - Total full-time student enrollment for the 2024/25 academic year was 23,928, a decrease of 1,085 from the 2023/24 academic year, mainly due to graduates from the "Junior College to Undergraduate" program[38] | Academic Year | Undergraduate Programs | Vocational Programs | Junior College to Undergraduate Programs | Total | | :------------ | :--------------------- | :------------------ | :--------------------------------------- | :------ | | 2020/21 | 17,274 | 2,548 | 1,516 | 21,338 | | 2021/22 | 17,643 | 2,427 | 2,384 | 22,454 | | 2022/23 | 17,945 | 4,195 | 2,327 | 24,467 | | 2023/24 | 17,937 | 4,750 | 2,326 | 25,013 | | 2024/25 | 17,802 | 3,826 | 2,300 | 23,928 | - Planned undergraduate enrollment for the 2025/26 academic year is 5,486 (2024/25 academic year: 4,886), vocational enrollment is 850, and "Junior College to Undergraduate" enrollment is 1,902[38] Tuition Fee Data For the 2025/26 academic year, new undergraduate tuition fees will increase to RMB 42,000-48,000, new vocational fees to RMB 23,000, while "Junior College to Undergraduate" program fees remain unchanged | Program | 2023/24 Academic Year (RMB) | 2024/25 Academic Year (RMB) | 2025/26 Academic Year (RMB) | | :------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Undergraduate Programs | 32,000-39,800 | 32,000-39,800 | 42,000-48,000 | | Vocational Programs | 20,000 | 20,000 | 23,000 | | Junior College to Undergraduate Programs | 30,000-39,800 | 32,000-39,800 | 32,000-39,800 | Business Review and Operational Updates University Profile and Honors Shanghai Jian Qiao University offers 40 undergraduate and 10 vocational programs across 7 disciplines, consistently ranking third among Type I private universities in China for four years, and has repeatedly received "National Civilized Unit" honors - The University offers 40 undergraduate programs and 10 vocational programs, covering 7 disciplinary categories including economics, management, literature, engineering, arts, science, and education[40] - The University has consistently ranked third among Type I private universities in China for four consecutive years and has retained the "National Civilized Unit" honor title after three re-evaluations[42] - The University successfully passed the Ministry of Education's undergraduate teaching work audit evaluation twice, in November 2019 and April 2025[42] Dual Support from Lingang Special Area Policies and Vocational Education Policies Lingang New Area policies and national plans, including the "Outline of the Plan for Building a Strong Education Nation," provide strong support for industry-education integration and high-quality vocational education development, benefiting the Group's strategic initiatives - The "Implementation Plan for Comprehensive Reform Pilot in Pudong New Area (2023-2027)" grants greater autonomy to Pudong New Area, supporting high-level reform and opening up[43] - The Lingang New Area Administration Committee issued "Several Policy Opinions on Supporting Industry-Education Integration Development" and "Action Plan for High-Quality Development of Industry-Education Integration (2025-2027)," explicitly supporting the University's construction as an industry-education integrated university[44] - Both the "Outline of the Plan for Building a Strong Education Nation (2024-2035)" and the "2025 Government Work Report" emphasize promoting high-quality development of modern vocational education and industry-education integration[46] Curriculum and Faculty Development The University optimizes its curriculum to meet market demands, with 29 programs ranking in the top 10 nationwide and 13 ranked first, while faculty development shows 85.8% holding master's degrees or above and 28.7% holding doctoral degrees, alongside the development of 70 "AI+Curriculum" courses - The University has 29 programs ranked among the top 10 nationwide, with 13 programs ranked first nationwide[48] - The University introduced a new Business English undergraduate program, aiming to cultivate applied business English composite talents[48] - As of September 30, 2024, 85.8% of full-time teachers hold master's degrees or above, and 28.7% hold doctoral degrees[49] - The University has explored the development of 70 "AI+Curriculum" courses and successfully approved 9 Shanghai key "AI+Curriculum" courses[49] Upgrade of Teaching Facilities and Smart Campus Construction The Group is upgrading teaching facilities and laboratories to create a modern, intelligent teaching environment, establishing a student-centric smart teaching platform, and integrating AI, 5G, and VR technologies to enhance campus management - The Group is committed to creating a modern and intelligent teaching environment, upgrading teaching and research instruments and laboratories[50] - The "Cloud Jian Qiao" smart teaching platform has been established, building a teaching process support system "student-centric and learning-focused"[50] - Actively developing the DeepSeek Jian Qiao Education Application Large Model to create intelligent service, management, and teaching entities, achieving intelligent campus management[50] Student Cultivation and Employment The University prioritizes high-quality student employment, with a 99.1% employment rate for 2024 graduates, a 5.7% further study rate, and 58.8% remaining employed in Shanghai, consistently achieving over 95% employer satisfaction - The University's graduate employment rate has consistently remained at 98% or above, with the 2024 graduate employment rate reaching 99.1%[51] - For 2024 graduates, the further study rate reached 5.7%, overseas study rate 4.6%, and 58.8% remained employed in the Shanghai area[51] - Overall employer satisfaction with the University's graduates consistently exceeds 95%[51] School-Enterprise Cooperation and Industry-Education Integration As a Shanghai High-Skilled Talent Training Base and Lingang New Area's first industry-education integration base, the University is strategically transforming into an industry-education integrated university by 2035, implementing pilot projects and operating industry colleges through a "secondary college + industry college + entity company" model - The University is a Shanghai High-Skilled Talent Training Base and Lingang New Area's first industry-education integration base[52] - The University has established a strategy to transform into an industry-education integrated university, aiming for full transformation by 2035[53] - Eight pilot projects have been selected, introducing real production and service projects, and operating industry colleges through a "secondary college + industry college + entity company" model[53] Phase IV Campus Facilities Put into Use The Group's Phase IV campus facilities, totaling approximately 86,400 square meters, were fully put into use in March 2025, including a teaching and training building, talent apartment, and R&D center, to deepen industry-education integration and attract talent - The Group's Phase IV campus facilities were fully put into use in March 2025, with a total construction area of approximately 86,400 square meters[54] - The new campus facilities include a teaching and training building, talent apartment building, and multi-functional R&D center, facilitating deeper industry-education integration, talent attraction, and R&D support[54] Outlook Leveraging Existing Strengths, Adhering to High-Quality Development The Group will maintain its high-quality education philosophy, optimizing tuition fees for 2025/26 to RMB 42,000/year for undergraduate and RMB 23,000/year for vocational students, while advancing talent cultivation, curriculum, and faculty development with AI integration - For the 2025/26 academic year, the minimum tuition fee for new undergraduate students will be optimized from RMB 32,000/year to RMB 42,000/year, and for new vocational students from RMB 20,000/year to RMB 23,000/year[55] - Future plans include deepening talent cultivation model reforms, optimizing professional and disciplinary structures, advancing digital and intelligent curriculum reforms, and exploring AI-empowered education and teaching, such as DeepSeek[55] Promoting Business Diversification, Expanding New Growth Areas The Group plans to diversify by developing international, adult continuing, and non-degree vocational education, capitalizing on Lingang's talent demand, with adult continuing education having 4,065 enrolled students and offering over 400 types of vocational qualification training as of June 30, 2025 - The Group will vigorously develop international education, adult continuing education, and non-degree vocational education to meet Lingang's demand for international and highly skilled talent[56] - As of June 30, 2025, adult continuing education had 4,065 enrolled students, and over 400 types of vocational qualification certificate training have been cumulatively provided[57] Seizing Policy Dividends of Lingang New Area, Achieving Industry-Education-City Integration The Group will leverage Lingang New Area's policy opportunities to advance integrated, internationalized, and digitalized strategies, accelerating its transformation into an industry-education integrated university and aiming to become a first-class private university in China with international influence - The Group will fully leverage the policy opportunities of the Lingang New Area, serving the national strategy for high-quality vocational education development and Lingang's regional development strategy to build a "global power city"[58] - It will deeply advance integrated, internationalized, and digitalized strategies, accelerating its transformation into an industry-education integrated university, aiming to build a first-class private university in China[58] Financial Review Revenue For the six months ended June 30, 2025, the Group's revenue was approximately RMB 534.1 million, remaining stable year-on-year - For the six months ended June 30, 2025, revenue was approximately RMB 534.1 million, remaining stable year-on-year[59] Cost of Sales For the six months ended June 30, 2025, cost of sales increased by 6.0% to RMB 216,850 thousand, primarily due to a 7.3% increase in teacher salary costs and a 12.6% increase in depreciation and amortization expenses from new campus facilities - Cost of sales increased by 6.0% to RMB 216,850 thousand, primarily impacted by a 7.3% increase in teacher salary costs and a 12.6% increase in depreciation and amortization expenses[60] Gross Profit and Gross Profit Margin Gross profit decreased by 4.1% to RMB 317.2 million, with the gross profit margin at 59.4%, a year-on-year decrease of 2.4 percentage points, mainly due to increased salary and depreciation expenses - Gross profit decreased by 4.1% to RMB 317.2 million, with a gross profit margin of 59.4%, a year-on-year decrease of 2.4 percentage points[61] Other Income and Gains For the six months ended June 30, 2025, other income and gains amounted to RMB 17.0 million, remaining stable year-on-year, primarily from government grants, bank interest, and operating lease income - Other income and gains amounted to RMB 17.0 million, remaining stable year-on-year[62] Selling and Distribution Expenses Selling and distribution expenses decreased by 56.2% to approximately RMB 1.2 million, primarily due to effective labor cost control leading to reduced staff remuneration - Selling and distribution expenses decreased by 56.2% to RMB 1.2 million, primarily due to labor cost control[63] Administrative Expenses For the six months ended June 30, 2025, administrative expenses increased by 20.4% to RMB 104.5 million, mainly driven by an approximate RMB 8.1 million increase in administrative staff salaries and an approximate RMB 8.7 million increase in logistics expenses - Administrative expenses increased by 20.4% to RMB 104.5 million, primarily impacted by increased administrative salaries and logistics expenses[64] Finance Costs Finance costs decreased by 5.3% to RMB 13.0 million, primarily due to a reduction in interest-bearing borrowings and a decrease in the average annual effective interest rate from 3.79% to 3.07% - Finance costs decreased by 5.3% to RMB 13.0 million, primarily due to a reduction in borrowing scale and a decrease in the average effective interest rate[65] Profit Before Tax For the six months ended June 30, 2025, profit before tax was approximately RMB 212.3 million, representing a year-on-year decrease of approximately RMB 29.4 million - Profit before tax was approximately RMB 212.3 million, a year-on-year decrease of RMB 29.4 million[66] Income Tax Expense For the six months ended June 30, 2025, income tax expense was approximately RMB 50.3 million, primarily attributable to the decrease in profit before tax during the reporting period - Income tax expense was approximately RMB 50.3 million, primarily due to a decrease in profit before tax[67] Liquidity and Capital Resources The Group primarily funds its operations through cash generated from operations and bank borrowings, with future liquidity needs to be met by a combination of operating cash flow, bank borrowings, and capital market fundraising - Operations are primarily funded by cash generated from operations and bank borrowings[68] Treasury Policy The Group maintains a prudent financial management approach, with the Board actively monitoring liquidity to ensure all funding requirements are adequately met - The Group adopts a prudent financial management approach, with the Board closely monitoring liquidity status[69] Property, Plant and Equipment As of June 30, 2025, property, plant and equipment amounted to approximately RMB 2,388.3 million, a 0.8% decrease from December 31, 2024, mainly due to new additions being less than depreciation expenses - Property, plant and equipment amounted to approximately RMB 2,388.3 million, a year-on-year decrease of 0.8%, primarily because new additions were less than depreciation expenses[70] Cash and Cash Equivalents and Time Deposits As of June 30, 2025, cash and cash equivalents and time deposits totaled approximately RMB 277.0 million, a 16.2% decrease from December 31, 2024, primarily influenced by seasonal factors with lower first-half tuition income and higher expenses - Cash and cash equivalents and time deposits amounted to approximately RMB 277.0 million, a year-on-year decrease of 16.2%, primarily due to seasonal factors[71] Bank Borrowings As of June 30, 2025, total bank borrowings were approximately RMB 827.3 million, a slight decrease from December 31, 2024, with an effective annual interest rate of 3.07%, primarily used for campus construction and working capital - Total bank borrowings amounted to approximately RMB 827.3 million, with an effective annual interest rate of 3.07%[73] | Maturity Status | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :----------------------------------- | :--------------------------- | :------------------------------- | | Repayable within one year | 164,000 | 163,000 | | Repayable in the second year | 178,000 | 172,000 | | Repayable in the third to fifth year (inclusive) | 465,903 | 437,653 | | Repayable after five years | 19,372 | 57,273 | | Total | 827,275 | 829,926 | Capital Expenditures During the reporting period, capital expenditures amounted to RMB 58.5 million, primarily allocated to the University's Phase IV campus construction plan and the maintenance and upgrade of existing school premises - Capital expenditures amounted to RMB 58.5 million, primarily for Phase IV campus construction and maintenance/upgrade of existing facilities[74] Contractual Commitments As of June 30, 2025, the Group's capital commitments primarily related to the acquisition of property, plant and equipment, totaling RMB 6,293 thousand | Commitment Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--------------------------- | :--------------------------- | :------------------------------- | | Property, Plant and Equipment | 6,293 | 4,388 | Contingent Liabilities As of June 30, 2025, the Group had no significant outstanding or threatened contingent liabilities or material guarantees that would impact its financial position - As of June 30, 2025, the Group had no significant contingent liabilities or guarantees[77] Financial Leverage Ratio For the six months ended June 30, 2025, the financial leverage ratio decreased from 0.4 as of December 31, 2024, to 0.3, primarily due to the repayment of some bank borrowings and an increase in equity - The financial leverage ratio decreased from 0.4 to 0.3, primarily due to repayment of bank borrowings and increased equity[78] Foreign Exchange Risk Management The Company's functional currency is RMB, with most income and expenses denominated in RMB, and no significant impact from currency exchange rate fluctuations was observed during the period, nor were any financial instruments entered into for hedging purposes - The Company's functional currency is RMB, with no significant impact from exchange rate fluctuations during the period, and no hedging activities undertaken[79] Material Investments, Acquisitions and Disposals, Future Plans for Material Investments and Capital Assets As of June 30, 2025, the Group had no other material investments, acquisitions, or disposals of subsidiaries and associates, nor any immediate plans for material investments and capital asset acquisitions - As of June 30, 2025, the Group had no material investments, acquisitions, disposals, or future plans for capital asset acquisitions[80] Pledge of Assets As of June 30, 2025, secured bank borrowings totaled RMB 827.3 million, with RMB 642.4 million secured by tuition and accommodation fee rights, and the remainder by the charging rights of the Phase IV Talent Center - Secured bank borrowings totaled RMB 827.3 million, with part secured by tuition and accommodation fee rights and part by charging rights of the Phase IV Talent Center[81] Other Information Employees and Remuneration Policy As of June 30, 2025, the Group had 1,896 full-time employees, with a total remuneration cost of RMB 191.8 million for the period, and provides training and social security schemes - As of June 30, 2025, the Group had 1,896 full-time employees, with a total remuneration cost of RMB 191.8 million[82] - The Group provides external and internal training programs and participates in various employee social security schemes[82] Events After Reporting Period In early August 2025, Jian Qiao University was ordered to pay approximately RMB 8.3 million in construction fees and interest due to a contract dispute, which it has appealed, with no material impact on financial position or daily operations to date - Jian Qiao University was ordered to pay approximately RMB 8.3 million in construction fees and interest due to a construction contract dispute, and has filed an appeal[83] - As of the announcement date, the Group's financial position and daily operations have not been materially affected[83] Interim Dividend The Board resolved to pay an interim dividend of HKD 0.10 per ordinary share for the six months ended June 30, 2025, from the share premium account, expected on or about October 24, 2025 - The Board of Directors resolved to pay an interim dividend of HKD 0.10 per ordinary share, to be paid from the share premium account[84] - The 2025 interim dividend is expected to be paid on or about October 24, 2025, to shareholders registered on October 10, 2025[84] Closure of Register of Members To determine the entitlement to the 2025 interim dividend, the Company will suspend the registration of share transfers on Friday, October 10, 2025, which will also serve as the record date - To determine interim dividend entitlement, share transfer registration will be suspended on October 10, 2025, which is also the record date[85][86] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor did they hold any treasury shares, and the Share Award Scheme trustee also made no purchases - Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, nor did they hold treasury shares[87] - The trustee of the Share Award Scheme also did not purchase any shares during the period[87] Compliance with Corporate Governance Code The Group is committed to high corporate governance standards, having adopted and complied with all applicable provisions of the Corporate Governance Code for the six months ended June 30, 2025 - The Group has adopted the Corporate Governance Code and complied with all applicable code provisions during the reporting period[88] Compliance with Model Code The Company has adopted the Model Code for directors' securities transactions and confirmed their compliance, also implementing a similar code for employees with inside information - The Company has adopted the Model Code as the code of conduct for directors' securities transactions and confirmed all directors' compliance[89] - A code of conduct no less exacting than the Model Code has been adopted for employees who may possess inside information[89] Audit Committee and Review of Interim Results The Audit Committee has reviewed the Group's accounting principles and the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, confirming compliance with applicable standards and legal requirements - The Audit Committee has reviewed and deemed the interim condensed consolidated financial statements compliant with applicable accounting standards, Listing Rules, and legal requirements[90] Publication of Interim Results and Interim Report This announcement and the interim report have been published on the HKEX website and the Company's website, with the report to be dispatched to shareholders requiring a printed copy - This announcement and the interim report have been published on the HKEX website and the Company's website[91] Definitions