嘉宏教育(01935) - 2025 - 中期业绩

Financial Highlights The company experienced revenue growth but a decline in profitability metrics for the six months ended June 30, 2025 Overview of Financial Highlights For the six months ended June 30, 2025, the company's revenue increased by 3% to RMB 534,563 thousand, but gross profit, profit for the period, and core net profit all decreased, by 5%, 10%, and 11% year-on-year respectively 2025 First Half Financial Highlights | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 534,563 | 517,419 | 17,144 | 3% | | Gross Profit | 328,717 | 347,238 | (18,521) | -5% | | Profit for the period | 305,311 | 340,998 | (35,687) | -10% | | Core Net Profit | 306,559 | 343,725 | (37,166) | -11% | Financial Statements The financial statements for the period show revenue growth offset by increased costs, leading to reduced profitability, alongside changes in asset and liability structures Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company's revenue grew by 3%, but a significant increase in cost of services provided led to a 5% decrease in gross profit, with profit for the period and total comprehensive income also declining by 10% and 11% respectively 2025 First Half Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 534,563 | 517,419 | 17,144 | 3% | | Cost of services provided | (205,846) | (170,181) | (35,665) | 21% | | Gross Profit | 328,717 | 347,238 | (18,521) | -5% | | Other income and gains | 34,969 | 40,167 | (5,198) | -13% | | Profit before tax | 306,787 | 341,204 | (34,417) | -10% | | Income tax expense | (1,476) | (206) | (1,270) | 617% | | Profit for the period | 305,311 | 340,998 | (35,687) | -10% | | Total comprehensive income for the period | 306,152 | 342,535 | (36,383) | -11% | - Profit for the period attributable to owners of the parent was RMB 237,806 thousand, a year-on-year decrease of 11.2%[7] - Basic and diluted earnings per share were RMB 14.86 cents, lower than 16.71 cents in the prior year period[7] Unaudited Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets and total equity increased, but net current assets and cash and cash equivalents significantly decreased, while non-current liabilities and interest-bearing bank borrowings substantially rose, leading to an increased gearing ratio 2025 June 30 Unaudited Condensed Consolidated Statement of Financial Position Key Data | Metric | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total non-current assets | 3,518,815 | 2,497,862 | 1,020,953 | 41% | | Total current assets | 1,442,929 | 2,208,371 | (765,442) | -35% | | Total current liabilities | 390,748 | 829,475 | (438,727) | -53% | | Net current assets | 1,052,181 | 1,378,896 | (326,715) | -24% | | Total non-current liabilities | 423,844 | 35,758 | 388,086 | 1085% | | Net assets | 4,147,152 | 3,841,000 | 306,152 | 8% | | Total equity | 4,147,152 | 3,841,000 | 306,152 | 8% | - Property, plant and equipment increased from RMB 1,497,586 thousand to RMB 1,997,053 thousand, primarily due to new campus construction[8] - Interest-bearing bank borrowings increased from nil to RMB 598,000 thousand (current RMB 215,950 thousand, non-current RMB 382,050 thousand), mainly for new campus construction[8][10] Notes to Financial Statements Detailed notes provide context on the company's operations, accounting policies, revenue breakdown, profitability drivers, and changes in financial position 1. Company Information The company was incorporated in the Cayman Islands in 2017, listed on the Hong Kong Stock Exchange in 2019, and primarily provides higher and secondary education services and related management services in China - The Company is an investment holding company primarily providing higher and secondary education services and related management services in China[13] 2. Basis of Preparation and Changes in Accounting Policies The accounting policies adopted for the interim financial information are consistent with the annual consolidated financial statements, with the initial adoption of amended IAS 21 (Lack of Exchangeability) having no material impact on the Group 2.1 Basis of Preparation The unaudited condensed consolidated interim financial information is prepared in accordance with IAS 34 and presented in RMB, with all values rounded to the nearest thousand - The financial information is prepared in accordance with IAS 34 and presented in RMB[14] 2.2 Changes in Accounting Policies The accounting policies adopted for the interim financial information are consistent with the annual consolidated financial statements, with the initial adoption of amended IAS 21 (Lack of Exchangeability) having no material impact on the Group - The initial adoption of amended IAS 21 (Lack of Exchangeability) has no impact on the financial information as the Group's transaction currencies are convertible[15][16] 3. Operating Segment Information The Group primarily provides higher and secondary education services in China, with all revenue and substantially all long-term assets derived from China, thus no operating segment and geographical information is presented, and no single customer accounted for over 10% of revenue during the reporting period - The Group primarily provides higher and secondary education services in China, with all revenue generated in China and 99% of long-term assets located in China[17][18] - No single customer accounted for 10% or more of total revenue during the reporting period[19] 4. Revenue, Other Income and Gains For the six months ended June 30, 2025, total revenue increased by 3% year-on-year to RMB 534,563 thousand, primarily driven by tuition and accommodation fees, while other income and gains decreased by 13% mainly due to lower interest income 2025 First Half Revenue, Other Income and Gains Analysis | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | | | | | | Tuition fees | 489,615 | 470,100 | 19,515 | 4% | | Accommodation fees | 36,056 | 35,881 | 175 | 0.5% | | Other education service fees | 8,892 | 11,438 | (2,546) | -22% | | Total revenue from contracts with customers | 534,563 | 517,419 | 17,144 | 3% | | Other income and gains | | | | | | Interest income | 13,922 | 26,090 | (12,168) | -47% | | Rental income | 8,911 | 7,539 | 1,372 | 18% | | Government grants (related to expenses) | 4,939 | 2,776 | 2,163 | 78% | | Government grants (related to assets) | 3,112 | 2,696 | 416 | 15% | | Others | 4,085 | 1,066 | 3,019 | 283% | | Total other income and gains | 34,969 | 40,167 | (5,198) | -13% | - Total contract liabilities significantly decreased from RMB 528,383 thousand as of December 31, 2024, to RMB 14,113 thousand as of June 30, 2025, mainly due to prepaid tuition and accommodation fees being recognized as revenue[22] 5. Profit Before Tax For the six months ended June 30, 2025, profit before tax was RMB 306,787 thousand, a 10% year-on-year decrease, primarily impacted by increased employee benefit expenses, cost of services provided, depreciation and amortization, and reduced interest income 2025 First Half Profit Before Tax Key Influencing Factors | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Employee benefit expenses | 163,822 | 135,775 | 28,047 | 21% | | Cost of services provided | 205,846 | 170,181 | 35,665 | 21% | | Depreciation of property, plant and equipment | 33,323 | 32,453 | 870 | 3% | | Depreciation of right-of-use assets | 9,203 | 4,197 | 5,006 | 119% | | Amortisation of other intangible assets | 2,626 | 1,002 | 1,624 | 162% | | Interest income | (13,922) | (26,090) | 12,168 | -47% | 6. Income Tax Income tax expense significantly increased from RMB 206 thousand in the first half of 2024 to RMB 1,476 thousand in the first half of 2025, mainly due to increased PRC corporate income tax expense, as Jingyi High School transitioned to a for-profit private school taxed at 25%, while Zhengzhou Jingmao College and Changzheng College remain non-profit private entities with tax-exempt academic education income 2025 First Half Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current - Mainland China | 1,476 | 206 | - Jingyi High School transitioned to a for-profit private school in 2023 and has been subject to PRC corporate income tax at a rate of 25% since 2023[26] - Zhengzhou Jingmao College and Changzheng College remain non-profit private entities, with their academic education income considered tax-exempt[26][27] 7. Dividends No interim dividends were proposed for the six months ended June 30, 2025, or 2024 - No interim dividends were proposed for the six months ended June 30, 2025, and 2024[30] 8. Earnings Per Share Attributable to Owners of the Company's Ordinary Shares For the six months ended June 30, 2025, basic and diluted earnings per share were RMB 14.86 cents, lower than 16.71 cents in the prior year, primarily due to a decrease in profit for the period attributable to owners of the parent's ordinary shares 2025 First Half Earnings Per Share Data | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the parent (RMB thousands) | 237,806 | 267,523 | | Weighted average number of ordinary shares outstanding (shares) | 1,600,830,000 | 1,600,830,000 | | Basic and diluted earnings per share (RMB cents) | 14.86 | 16.71 | - The Group had no outstanding potential dilutive ordinary shares during the reporting period[31] 9. Trade Receivables As of June 30, 2025, net trade receivables were RMB 763 thousand, a significant decrease from RMB 1,851 thousand as of December 31, 2024, mainly due to reduced tuition and accommodation fees receivable and increased impairment, with most receivables aged within one year Trade Receivables Net Book Value and Ageing Analysis | Item | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Tuition and accommodation fees receivable | 4,709 | 5,136 | (427) | -8% | | Impairment | (3,946) | (3,285) | (661) | 20% | | Net book value | 763 | 1,851 | (1,088) | -59% | | Ageing analysis (net value): | | | | | | Within one year | 668 | 1,544 | (876) | -57% | | One to two years | 93 | 222 | (129) | -58% | | Two to three years | 2 | 69 | (67) | -97% | | Over three years | – | 16 | (16) | -100% | - Trade receivables primarily represent amounts due from students with financial difficulties, which are interest-free and repayable on demand[33] 10. Other Payables and Accrued Expenses As of June 30, 2025, other payables and accrued expenses totaled RMB 151,618 thousand, a decrease from RMB 209,906 thousand as of December 31, 2024, mainly due to reductions in miscellaneous advances from students, salaries and welfare payables, and other taxes payable Other Payables and Accrued Expenses Main Components | Item | 2025 June 30 (RMB thousands) | 2024 Dec 31 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Miscellaneous advances from students | 35,858 | 47,692 | (11,834) | -25% | | Salaries and welfare payables | 35,501 | 59,514 | (24,013) | -40% | | Other taxes payable | 14,469 | 26,903 | (12,434) | -46% | | Textbooks payables | 14,006 | 12,451 | 1,555 | 12% | | Collections on behalf of ancillary service providers | 11,227 | 14,685 | (3,458) | -24% | | Other payables | 33,875 | 41,222 | (7,347) | -18% | | Total | 151,618 | 209,906 | (58,288) | -28% | - The balances mentioned above are unsecured, interest-free, and repayable on demand[35] Management Discussion and Analysis Management discusses business operations, strategic initiatives, financial performance, and human resources for the reporting period Business Review The Group is a leading private higher education provider in Zhejiang and Henan provinces, also offering high school education in Zhejiang, and is expanding its higher education capacity with a new campus while benefiting from supportive vocational education policies in China Overview The Group is the largest private higher education institution in Zhejiang Province and one of the leading private higher education institutions in Henan Province, also providing high school education in Zhejiang Province, and is constructing a new campus for Jingmao College to expand its higher education scale, benefiting from favorable policies for vocational education in China - The Group is the largest private higher education institution in Zhejiang Province and one of the leading private higher education institutions in Henan Province[36] - A new campus for Jingmao College is under construction in Zhengzhou, Henan Province, to expand higher education capacity, with educational services expected to commence in the 2026/2027 academic year[36][44] - The Group benefits from the Chinese government's continuous support and favorable policies for vocational education development[37] Changzheng College Zhejiang Changzheng Vocational Technical College, located in Hangzhou, offers junior college education and ranked first in Zhejiang Province for private junior college enrollment plans in 2024, boasting 40 on-campus training bases and collaborations with 594 industry associations and enterprises for school-enterprise cooperation and industry-education integration - Changzheng College's 2024 enrollment plan ranked first among private junior colleges in Zhejiang Province[38] - The college has 40 on-campus training bases and 186 experimental training rooms, with several designated as Ministry of Education or provincial demonstration training bases[40] - It has established off-campus internship and training bases with 594 industry associations and enterprises and is a pilot unit for the Chinese characteristic apprenticeship system in Zhejiang Province[42] Jingmao College Zhengzhou Jingmao College, located in Zhengzhou, Henan, offers undergraduate and junior college education, with its 2024 undergraduate enrollment plan ranking sixth among private undergraduate institutions in Henan Province, covering six major disciplines including management and economics, and actively enhancing applied talent training quality through government-school-enterprise cooperation and industry college construction - Jingmao College's 2024 undergraduate enrollment plan ranked sixth among private undergraduate institutions in Henan Province[43] - It comprises 12 schools and 1 department, offering 51 undergraduate majors and 32 junior college majors, with 5 provincial key construction disciplines and 6 provincial first-class majors[45] - The college has established government-school-enterprise cooperation with entities like the Shanghai Minhang District Investment Promotion Service Center and co-built high-standard off-campus internship bases with over 200 enterprises[46][48] Jingyi High School Yueqing Jingyi High School Co Ltd is a for-profit private high school in Wenzhou, Zhejiang, providing non-compulsory private education, focusing on fostering students' learning, character, and happiness, and equipped with extensive multimedia rooms, laboratories, and computer rooms - Jingyi High School is a for-profit private high school located in Wenzhou, Zhejiang, providing non-compulsory private education[47] - Its curriculum is designed with reference to the general high school curriculum standards of Zhejiang educational institutions, offering 13 main courses[47] Teachers The company places high importance on teacher quality, focusing on educational background, teaching experience, professional competence, and communication skills during recruitment, with approximately 99.9% of teachers holding a bachelor's degree or above and 77.7% holding a master's degree or above as of June 30, 2025 - As of June 30, 2025, approximately 99.9% of teachers hold a bachelor's degree or above, and approximately 77.7% hold a master's degree or above[49] Tuition and Accommodation Fees The company typically collects tuition and accommodation fees in advance at the beginning of each academic year and recognizes revenue proportionally over the period related to the school curriculum - Tuition and accommodation fees are typically collected in advance at the beginning of each academic year and recognized as revenue proportionally over the course period[50] Student Enrollment As of June 30, 2025, student enrollment at Jingmao College, Changzheng College, and Jingyi High School all showed growth Student Enrollment as of June 30 | School Name | 2025 | 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Jingmao College | 36,052 | 35,722 | 330 | 0.9% | | Changzheng College | 21,094 | 20,926 | 168 | 0.8% | | Jingyi High School | 1,125 | 1,101 | 24 | 2.2% | Average Tuition and Accommodation Fees For the six months ended June 30, 2025, average tuition and accommodation fees increased at Jingmao College and Jingyi High School, while Changzheng College experienced a slight decrease Average Tuition and Accommodation Fees as of June 30 (RMB) | School Name | 2025 Average Tuition | 2024 Average Tuition | Change (%) | 2025 Average Accommodation Fee | 2024 Average Accommodation Fee | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jingmao College | 8,219 | 7,829 | 5.0% | 677 | 635 | 6.6% | | Changzheng College | 8,604 | 8,730 | -1.4% | 924 | 929 | -0.5% | | Jingyi High School | 12,641 | 11,198 | 12.9% | 623 | 445 | 40.0% | Business Strategies The company plans to further expand its school network in China and overseas, leveraging IPO proceeds, bank borrowings, and internal funds 1. Expand Business Operations and School Network The company is constructing a new campus for Jingmao College, expected to accommodate approximately 20,000 students, which will significantly enhance educational services and facilities, positively impacting future sustainable development - A new campus for Jingmao College is under construction, expected to accommodate approximately 20,000 students, which will significantly enhance educational services and facilities[54] 2. Acquisitions The company plans to acquire or invest in for-profit private schools in China with low utilization and/or significant development potential, particularly in Central, East, and South China - Plans to acquire or invest in for-profit private schools in China with low utilization and/or significant development potential, focusing on Central, East, and South China[55] 3. Establish or Acquire New Overseas Schools The company plans to establish California School, a degree-granting higher education institution in California, USA, offering business administration and international business courses, and is actively seeking suitable overseas acquisition targets - Plans to establish California School, a degree-granting higher education institution in California, USA, offering business administration and international business-related courses[58] - Actively seeking opportunities to acquire suitable overseas schools[58] 4. Optimize Pricing Strategy to Enhance Profitability The company plans to optimize its pricing strategy to enhance profitability without compromising its reputation or ability to attract and retain students - Plans to optimize pricing strategy to enhance profitability without compromising reputation or ability to attract and retain students[57] Financial Review The Group's revenue primarily comes from tuition and accommodation fees from its schools in China, with revenue increasing by 3% during the period, but a significant rise in cost of services provided led to a 5% decrease in gross profit, and profit for the period and core net profit both declined by approximately 10-11% Overview The Group's revenue primarily comes from tuition and accommodation fees from its schools in China, with revenue increasing by 3% during the period, but a significant rise in cost of services provided led to a 5% decrease in gross profit, and profit for the period and core net profit both declined by approximately 10-11% - Revenue primarily derived from tuition and accommodation fees from schools in China, with a 3% year-on-year increase to RMB 534.6 million for the period[59] - Gross profit decreased by 5% year-on-year, profit for the period decreased by 10% year-on-year, and core net profit decreased by 11% year-on-year[4][61][69][72] Revenue Revenue increased by 3% year-on-year to RMB 534.6 million, primarily driven by increased enrollment leading to higher tuition and accommodation fee income - Revenue increased by 3% year-on-year to RMB 534.6 million, primarily due to increased enrollment, leading to growth in tuition and accommodation fee income[59] Cost of Services Provided Cost of services provided increased by 21% year-on-year to RMB 205.8 million, mainly due to higher staff costs, depreciation expenses, and student activity expenses - Cost of services provided increased by 21% year-on-year to RMB 205.8 million, primarily due to increased staff costs, depreciation expenses, and student activity expenses[60] Gross Profit Gross profit decreased by 5% year-on-year to RMB 328.7 million, primarily impacted by the increase in cost of services provided - Gross profit decreased by 5% year-on-year to RMB 328.7 million, primarily impacted by the increase in cost of services provided[61] Other Income and Gains Other income and gains decreased by 13% year-on-year to RMB 35.0 million, mainly due to reduced interest income - Other income and gains decreased by 13% year-on-year to RMB 35.0 million, primarily due to reduced interest income[62] Selling and Distribution Expenses Selling and distribution expenses decreased by 19% year-on-year to RMB 2.1 million - Selling and distribution expenses decreased by 19% year-on-year to RMB 2.1 million[63] Administrative Expenses Administrative expenses increased by 23% year-on-year to RMB 52.1 million, mainly due to higher staff costs, depreciation expenses, and professional fees - Administrative expenses increased by 23% year-on-year to RMB 52.1 million, primarily due to increased staff costs, depreciation expenses, and professional fees[64] Other Expenses Other expenses increased by 64% year-on-year to RMB 1.8 million, mainly due to increased losses from disposal of fixed assets - Other expenses increased by 64% year-on-year to RMB 1.8 million, primarily due to increased losses from disposal of fixed assets[65] Finance Costs Finance costs significantly increased to RMB 0.9 million, primarily due to interest incurred on new bank borrowings for new campus construction - Finance costs significantly increased to RMB 0.9 million, primarily due to interest incurred on new bank borrowings for new campus construction[66] Profit Before Tax Profit before tax decreased by 10% year-on-year to RMB 306.8 million, resulting from the combined impact of increased expenses and reduced income - Profit before tax decreased by 10% year-on-year to RMB 306.8 million[67] Income Tax Expense Income tax expense significantly increased to RMB 1.5 million, primarily due to higher PRC corporate income tax expense - Income tax expense significantly increased to RMB 1.5 million, primarily due to higher PRC corporate income tax expense[68] Profit for the Period Profit for the period decreased by 10% year-on-year to RMB 305.3 million - Profit for the period decreased by 10% year-on-year to RMB 305.3 million[69] Profit Attributable to Owners of the Company Profit attributable to owners of the company decreased by 11% year-on-year to RMB 237.8 million - Profit attributable to owners of the company decreased by 11% year-on-year to RMB 237.8 million[70] Core Net Profit Core net profit was RMB 306,559 thousand, a 11% year-on-year decrease, representing profit for the period adjusted for items not indicative of the Group's operating performance Reconciliation of Profit for the Period to Core Net Profit | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Profit for the period | 305,311 | 340,998 | (35,687) | -10% | | Less: Exchange gains | 1,487 | 8 | 1,479 | 18488% | | Add: Amortisation of property, plant and equipment and intangible assets arising from acquisition of Jingmao College | 2,735 | 2,735 | 0 | 0% | | Core Net Profit | 306,559 | 343,725 | (37,166) | -11% | Financial and Liquidity Position Net current assets decreased by 24% year-on-year to RMB 1,052.2 million, and cash and cash equivalents decreased by RMB 953.8 million, while bank borrowings increased to RMB 598 million, primarily for new campus construction, raising the gearing ratio to 14% - Net current assets decreased by RMB 326.7 million to RMB 1,052.2 million, primarily due to a decrease in contract liabilities and cash and cash equivalents[73] - Cash and cash equivalents decreased by RMB 953.8 million, mainly due to cash outflows from operating activities, additions to property, plant and equipment, and an increase in time deposits, partially offset by new bank loans[74] - Bank borrowings increased to RMB 598 million, primarily for new campus construction, leading to a gearing ratio increase from nil to 14%[75][76] Capital Expenditure Capital expenditure significantly increased to RMB 641.3 million, primarily for the acquisition of land use rights and construction of new campuses - Capital expenditure was RMB 641.3 million, a significant year-on-year increase, primarily for the acquisition of land use rights and construction of new campuses[77] Contingent Liabilities As of June 30, 2025, the Group had no unrecorded significant contingent liabilities or major litigations - As of June 30, 2025, the Group had no unrecorded significant contingent liabilities or major litigations[78] Foreign Exchange Risk The Group's majority of income and losses are denominated in RMB, with some bank balances in USD, AUD, or HKD, but no significant foreign exchange risk was encountered during the reporting period, and no hedging policy is in place - The Group's majority of income and losses are denominated in RMB, and no significant foreign exchange risk was encountered, with no hedging policy in place[79] Pledge of Group Assets As of June 30, 2025, the Group had no assets pledged - As of June 30, 2025, the Group had no assets pledged[80] Employees and Remuneration Policy As of June 30, 2025, the Group had 3,092 employees, with total employee benefit expenses of RMB 163.8 million, offering comprehensive remuneration, benefits, and training, while maintaining good employee relations - As of June 30, 2025, the Group had 3,092 employees, with total employee benefit expenses of RMB 163.8 million[81] - Remuneration is based on performance, experience, and industry practice, with a share option scheme provided to incentivize and retain talent[81] Corporate Governance and Other Information This section covers corporate governance practices, significant events, and other disclosures related to the company's operations and compliance Material Investments, Major Acquisitions and Disposals Other than those disclosed in this interim results announcement, the Group had no other material investments, acquisitions, or disposals of assets during the reporting period - During the reporting period, the Group had no other material investments, acquisitions, or disposals of assets[82] Events After the Reporting Period From June 30, 2025, to the date of this announcement, no events have occurred that would significantly impact the Group's operations and financial performance - No events have occurred after the reporting period up to the date of this announcement that would significantly impact the Group's operations and financial performance[83] Compliance with Corporate Governance Code The Group is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code set out in Appendix C1 of the Listing Rules, though the Chairman also serving as Chief Executive Officer deviates from Code Provision C.2.1, which the Board believes benefits the Group's overall strategic planning and efficient decision-making - The Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[84] - The Chairman also serving as Chief Executive Officer deviates from Code Provision C.2.1, but the Board believes this arrangement facilitates consistent leadership and efficient decision-making for the Group[84] Standard Code for Securities Transactions All Directors confirm compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the reporting period - All Directors confirm compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the reporting period[85] Interim Dividend The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[86] Audit Committee The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's unaudited interim results and accounting treatment for the six months ended June 30, 2025 - The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[87] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[88] - As of June 30, 2025, the Company held no treasury shares[88] Use of Proceeds from the Company's Initial Public Offering The net proceeds from the initial public offering were approximately RMB 461 million, of which RMB 415 million (90%) was resolved in March 2025 to be reallocated for the construction and development of new campuses, and is expected to be fully utilized by December 31, 2025 - The net proceeds from the initial public offering were approximately RMB 461 million[89] - Approximately RMB 415 million (90%) was resolved in March 2025 to be reallocated for the construction and development of new campuses[89] - As of June 30, 2025, the RMB 415 million for new campus construction and development remained unutilized and is expected to be fully utilized by December 31, 2025[89] Publication of Interim Results Announcement and Interim Report This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be published and dispatched to shareholders who have opted to receive a printed version in due course - This interim results announcement has been published on the HKEX website and the Company's website[90] - The interim report will be published and dispatched to shareholders who have opted to receive a printed version in due course[90]