建桥教育(01525) - 2025 - 中期财报

Company Information This section provides an overview of the company's governance structure and fundamental operational details Board of Directors and Committees This chapter outlines the composition of the company's board of directors, including executive, non-executive, and independent non-executive directors, as well as audit, remuneration, and nomination committee members - The Board comprises executive directors (Mr. Zhao Donghui as Chairman), non-executive directors (Ms. Li Huihui, Mr. Ye Qionghai, Ms. Zhao Jiaqiao), and independent non-executive directors (Mr. Chen Baizhu, Mr. Hu Rongen, Ms. Liu Tao)[7] - The Audit Committee is chaired by Ms. Liu Tao, the Remuneration Committee by Mr. Hu Rongen, and the Nomination Committee by Mr. Zhao Donghui[7] Company Basic Information This chapter provides essential operational details including the company's registered office, China headquarters, Hong Kong principal place of business, legal advisors, auditors, share registrar, principal bankers, and stock code - The China headquarters and principal place of business are located at 1111 Hucheng Ring Road, Pudong New Area, Shanghai, China[7] - The auditor is Ernst & Young[7] - The company's stock code is 1525[8] Financial Highlights This section presents unaudited financial data for the six months ended June 30, 2025, showing a decrease in revenue, gross profit, and profit for the period compared to the prior year Financial Highlights This chapter provides unaudited financial data for the six months ended June 30, 2025, showing a decrease in revenue, gross profit, and profit for the period compared to the prior year Key Financial Indicators Comparison (Six Months Ended June 30) | 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 | - For the six months ended June 30, 2025, profit for the period was RMB 162,061 thousand, a 9.89% decrease from RMB 179,857 thousand in the same period last year[9] Management Discussion and Analysis This section provides an overview of the group's business operations, financial performance, and future strategies, highlighting key developments in student enrollment, tuition fees, and educational quality Business Overview The Group, as a higher vocational education provider, operates Shanghai Jian Qiao University, a leading private university in Shanghai and the Yangtze River Delta region. During the reporting period, full-time student enrollment slightly decreased, but plans are in place to increase tuition fees for new undergraduate and junior college students - Shanghai Jian Qiao University is the largest private university in Shanghai and a leading private university in the entire Yangtze River Delta, ranking third among Type I private universities in China for four consecutive years[12] - The total number of full-time students in the 2024/25 academic year was 23,928, a decrease of 1,085 students from the 2023/24 academic year, primarily due to graduates from the "top-up" bachelor's degree program[13] - For the 2025/26 academic year, the minimum tuition fee for new undergraduate students will increase from RMB 32,000/year to RMB 42,000/year, and for new junior college students, it will increase from RMB 20,000/year to RMB 23,000/year[16][40] Student Enrollment This chapter details the full-time student enrollment numbers for undergraduate, junior college, and "top-up" bachelor's degree programs at Shanghai Jian Qiao University for each academic year, showing a decrease in total enrollment for the 2024/25 academic year, mainly due to graduates from the "top-up" program Student Enrollment Trends (by Academic Year) | Academic Year | Undergraduate Programs | Junior College Programs | "Top-up" Bachelor's Programs | Total Students | | :--- | :--- | :--- | :--- | :--- | | 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 | - The total number of full-time students in the 2024/25 academic year was 23,928, a decrease of 1,085 students from the 2023/24 academic year[13] Tuition Fee Standards This chapter discloses the tuition fee standards for full-time programs at Shanghai Jian Qiao University and announces an increase in tuition fees for new undergraduate and junior college students in the 2025/26 academic year to optimize revenue structure Tuition Fee Standard Adjustments (New Students for 2025/26 Academic Year) | Program Type | 2023/24 Academic Year (RMB Yuan) | 2024/25 Academic Year (RMB Yuan) | 2025/26 Academic Year (RMB Yuan) | | :--- | :--- | :--- | :--- | | Undergraduate Programs | 32,000-39,800 | 32,000-39,800 | 42,000-48,000 | | Junior College Programs | 20,000 | 20,000 | 23,000 | | "Top-up" Bachelor's Programs | 30,000-39,800 | 32,000-39,800 | 32,000-39,800 | - The tuition fee range for undergraduate programs includes those under international projects, excluding special programs such as the International Design College, bilingual Digital Media Technology and Journalism programs, and international programs co-organized with Vaughn College of Aeronautics and Technology[17] Business Review and Operational Updates This chapter details Shanghai Jian Qiao University's latest progress and significant achievements in educational quality, policy support, vocational education system development, faculty strength, teaching facilities, student development, and industry-university cooperation, emphasizing the university's core role in industry-education integration transformation - The university has been ranked third among Type I private universities in China by Alumni Association for four consecutive years, and has repeatedly been awarded "National Civilized Unit" and "Shanghai Civilized Unit" honors[19] - The university has established a major strategy to transform into an industry-education integrated university, proposing the "Shanghai Jian Qiao University Action Plan for Accelerating Transformation into an Industry-Education Integrated University," aiming for full transformation by 2035[36] - The Group's fourth phase of campus buildings, with a total construction area of approximately 86,400 square meters, was fully put into use in March 2025, aiming to deepen industry-education integration[37] The University This chapter introduces Shanghai Jian Qiao University as an applied technology university, detailing its professional offerings, disciplinary coverage, and its top-tier educational quality and brand reputation among similar institutions, listing multiple national and Shanghai municipal honors - The university offers 40 undergraduate programs and 10 junior college programs, covering seven disciplines including economics, management, literature, engineering, arts, science, and education[16] - The university has consecutively received the "Shanghai Civilized Unit" honorary title for 18 years since 2004 and was first awarded "National Civilized Unit" in 2015, passing re-evaluation three times[19] - The university passed ISO9001 quality management system certification by the Shanghai Quality System Audit Center in 2018 and twice passed the Ministry of Education's undergraduate teaching work audit and evaluation in November 2019 and April 2025[19] Dual Support from Lingang Special Area Policy and Vocational Education Policy This chapter explains how multiple policies issued by the Lingang New Area and at the national level provide strong strategic support and locational advantages for Shanghai Jian Qiao University in industry-education integration and high-quality vocational education development - The Lingang New Area Management Committee issued the revised "Several Policy Opinions on Supporting Industry-Education Integration Development in the China (Shanghai) Pilot Free Trade Zone Lingang New Area," providing special support for eligible industry-education integration projects[21] - The "China (Shanghai) Pilot Free Trade Zone Lingang New Area Action Plan for High-Quality Development of Industry-Education Integration (2025-2027)" explicitly supports the university's construction as an industry-education integrated university[22] - The "Outline of the Plan for Building a Strong Education Nation (2024-2035)" issued by the CPC Central Committee and the State Council, and the "2025 Government Work Report" both emphasize promoting high-quality development of modern vocational education and industry-education integration[25] Outstanding Achievements in High-Quality Vocational Education System Construction This chapter details the university's significant achievements in optimizing professional layout, enhancing faculty, upgrading teaching facilities, promoting student development, and deepening industry-university cooperation, with a special emphasis on the application of AI technology in teaching and the transformation strategy into an industry-education integrated university - The university has 29 programs ranked among the top 10 nationwide, 33 programs among the top 20 nationwide, with 13 programs ranking first nationwide (applied type)[28] - As of September 30, 2024, 85.8% of the university's full-time teachers hold master's degrees or above, 28.7% hold doctoral degrees, and 45.7% are "dual-qualified" teachers[29] - The university actively seizes the opportunity of AI development, comprehensively promoting "AI+Curriculum" construction and teaching innovation, having explored and built 70 "AI+Curricula"[29] - The university's 2024 graduates achieved an employment rate of 99.1%, a further study rate of 5.7%, and an overseas study rate of 4.6%[34] - The university is a high-skilled talent training base in Shanghai, one of the first batch of industry-education integration bases in the Lingang New Area, and successfully approved as one of the first "City-Region Industry-Education Joint Bodies" in Shanghai[36] Future Outlook and Business Strategies The Group will continue to uphold its high-quality education philosophy, leverage the advantages of the Pudong and Lingang dual special zones, and achieve sustainable growth and industry leadership through optimizing fees, diversifying business development (international education, adult continuing education, non-degree vocational education), and deepening industry-education-city integration - For the 2025/26 academic year, the minimum tuition fee for new undergraduate students will increase from RMB 32,000/year to RMB 42,000/year, and for new junior college students, it will increase from RMB 20,000/year to RMB 23,000/year[40] - The Group will vigorously develop international education, adult continuing education (with 4,065 enrolled students as of June 30, 2025), and non-degree vocational education (having provided over 400 types of vocational qualification certificate training)[41][43] - The Group will fully seize the policy opportunities of the Lingang New Area as a "pioneer and experimental field for socialist modernization construction" and a "national pilot core zone for industry-education integration," accelerating its transformation into an industry-education integrated university[44] Financial Review This chapter provides a detailed review of the financial performance during the reporting period, showing stable revenue but a decrease in gross profit and profit before tax due to increased cost of sales and administrative expenses, while finance costs decreased due to reduced borrowing scale and interest rates - For the six months ended June 30, 2025, the Group's revenue was approximately RMB 534.1 million, remaining stable compared to the same period last year[47] - Cost of sales increased by approximately RMB 12.2 million or 6.0% compared to the same period last year, primarily due to a 7.3% increase in salary costs from a larger teaching staff and a 12.6% increase in depreciation and amortization expenses as the fourth phase of campus facilities became operational[48] - Gross profit decreased by approximately RMB 13.6 million or 4.1% to RMB 317.2 million, with a gross profit margin of 59.4%, a 2.4 percentage point decrease from the same period last year[49] - Administrative expenses increased by approximately RMB 17.7 million or 20.4% to RMB 104.5 million, mainly due to increased administrative salary expenses and logistics expenses[54] - 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%[55] - Profit before tax was approximately RMB 212.3 million, a decrease of approximately RMB 29.4 million from the same period last year[58] Liquidity and Capital Resources This chapter describes the Group's sources of liquidity, capital expenditures, bank borrowings, and financial leverage ratio. At the end of the reporting period, cash and cash balances decreased, but the financial leverage ratio declined, indicating a sound financial position - As of June 30, 2025, the Group's cash and cash equivalents and time deposits were approximately RMB 277.0 million, a 16.2% decrease from December 31, 2024, mainly due to seasonal factors[63] - As of June 30, 2025, total bank borrowings were approximately RMB 827.3 million, bearing interest at an effective annual rate of 3.07%[66] - Capital expenditure during the reporting period was RMB 58.5 million, primarily related to the university's fourth phase campus construction plan and maintenance upgrades of existing school premises[67] - The financial leverage ratio decreased from 0.4 as of December 31, 2024, to 0.3 as of June 30, 2025, mainly due to the repayment of some bank borrowings and an increase in equity[70] - As of June 30, 2025, the Group had 1,896 full-time employees, with a total staff cost of RMB 191.8 million[74] Other Information This section covers post-reporting period events, interim dividends, share transfer registration, securities transactions, corporate governance, and director information Events After Reporting Period This chapter discloses the progress of legal proceedings and the board's resolution regarding interim dividends that occurred after the reporting period - In early August 2025, the Group received two civil judgments from the Shanghai Pudong New Area People's Court regarding a construction contract dispute between Jian Qiao University and a contractor, where Jian Qiao University was ordered to pay construction fees totaling approximately RMB 8.3 million plus interest for overdue payments, and an appeal has been filed[76] - On August 28, 2025, the Board resolved to recommend the payment of an interim dividend of HKD 0.10 per ordinary share for the six months ended June 30, 2025, to shareholders whose names appear on the company's register of members on October 10, 2025[76] Interim Dividend This chapter discloses the board's resolution to declare an interim dividend consistent with the prior year and announces the payment and record dates - The Board has resolved to declare an interim dividend of HKD 0.10 per ordinary share for the six months ended June 30, 2025 (for the six months ended June 30, 2024: HKD 0.10 per ordinary share)[77] - The 2025 interim dividend is proposed to be paid from the company's share premium account[77] - The payment date for the 2025 interim dividend is expected to be Friday, October 24, 2025[77] Closure of Register of Members This chapter states that the company will temporarily suspend the registration of share transfers on specific dates to determine eligibility for the interim dividend, clarifying the relevant deadlines - To determine the entitlement of the company's shareholders to receive the 2025 interim dividend, the company will suspend the registration of share transfers on Friday, October 10, 2025[78] - To be eligible for the 2025 interim dividend, all transfer documents accompanied by the relevant share certificates must be lodged no later than 4:30 p.m. on Thursday, October 9, 2025[78] Purchase, Sale or Redemption of the Company's Listed Securities This chapter states that neither the company nor any of its subsidiaries purchased, sold, or redeemed any other listed securities of the company during the reporting period, and no treasury shares were held - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any other listed securities of the company[79] - As of June 30, 2025, the company did not hold any treasury shares[79] Compliance with Corporate Governance Code This chapter emphasizes the company's commitment to maintaining high standards of corporate governance and confirms compliance with all applicable provisions of the Corporate Governance Code during the reporting period - The company has complied with all applicable code provisions under the Corporate Governance Code for the six months ended June 30, 2025[82] Compliance with Model Code This chapter states that the company has adopted the Model Code as a code of conduct for directors' securities transactions and confirms that directors complied with it during the reporting period - Following specific enquiries made to all Directors, each Director confirmed that they have complied with the Model Code for the six months ended June 30, 2025[83] - The company has also adopted a code of conduct for employees' securities transactions with terms no less exacting than those set out in the Model Code[83] Audit Committee and Review of Interim Results This chapter states that the Audit Committee has reviewed the Group's adopted accounting principles and interim condensed consolidated financial statements, deeming them compliant with applicable accounting standards and legal requirements - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and, together with the Board, reviewed the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025[84] - The Audit Committee believes that these financial statements comply with applicable accounting standards, the Listing Rules, and all other applicable legal requirements[84] Update on Directors' Information and Changes in Directors and Senior Management This chapter states that the Board was not informed of any changes in directors' information during the reporting period - During the reporting period, the Board was not informed of any changes in directors' information required to be disclosed under Rule 13.51B(1) of the Listing Rules[86] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures This chapter discloses the interests of the company's directors and chief executive in the company's shares or underlying shares as of June 30, 2025, with Mr. Zhao Donghui and Mr. Zhou Tianming holding a significant proportion of long positions - Mr. Zhao Donghui holds 100,000,000 long position shares (approximately 24.10%) and 87,190,000 long position shares (approximately 21.01%) in the company[87] - Mr. Zhou Tianming holds 6,297,000 long position shares (approximately 1.52%) in the company[87] - Mr. Ye Qionghai holds 4,728,000 long position shares (approximately 1.14%) in the company[87] Interests in Shares or Underlying Shares of the Company This chapter details the long positions of directors and the chief executive in the company's shares, including the number of shares and approximate percentages held through controlled corporations and guaranteed interests Directors' Shareholding Details (As of June 30, 2025) | Name | Capacity/Nature of Interest | Number of Shares | Long/Short Position | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Mr. Zhao Donghui | Interest in controlled corporation | 100,000,000 | Long Position | 24.10% | | | Person with guaranteed interest in shares | 87,190,000 | Long Position | 21.01% | | Mr. Zhou Tianming | Interest in controlled corporation | 6,297,000 | Long Position | 1.52% | | Mr. Ye Qionghai | Beneficial owner | 4,728,000 | Long Position | 1.14 | - Ai Xin Limited, controlled by Mr. Zhao Donghui, holds 117,190,000 shares, and Fwin Limited holds 70,000,000 shares[89] Interests in Shares of Associated Corporations of the Company This chapter discloses Mr. Zhao Donghui's interests in Jian Qiao Group, an associated corporation of the company - Mr. Zhao Donghui, as a beneficial owner, holds a 10.00% equity interest in Jian Qiao Group[90] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares This chapter discloses the interests of substantial shareholders, other than directors or the chief executive, in the company's shares or underlying shares as of June 30, 2025 Substantial Shareholders' Shareholding Details (As of June 30, 2025) | Name | Capacity/Nature of Interest | Number of Shares | Long/Short Position | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Ai Xin Limited | Beneficial owner | 30,000,000 | Long Position | 7.23% | | | Person with guaranteed interest in shares | 87,190,000 | Long Position | 21.01% | | Fwin Limited | Beneficial owner | 70,000,000 | Long Position | 16.87% | | Hangzhou Changqi Enterprise Management Consulting Partnership (Limited Partnership) | Interest in controlled corporation | 70,000,000 | Long Position | 16.87% | | Shanghai Jiuhao Enterprise Management Consulting Co., Ltd. | Interest in controlled corporation | 70,000,000 | Long Position | 16.87% | | Changjiu Industrial Group Co., Ltd. | Interest in controlled corporation | 70,000,000 | Long Position | 16.87% | | Ze Ren Limited | Beneficial owner | 30,600,000 | Long Position | 7.37% | | Zhuang Rije | Interest in controlled corporation | 30,600,000 | Long Position | 7.37% | | Su Wenjun | Interest in controlled corporation | 30,600,000 | Long Position | 7.37% | | Everone (Hong Kong) Company Limited | Beneficial owner | 25,880,000 | Long Position | 6.24% | - As of June 30, 2025, eight shareholders of the company pledged a total of 87,190,000 shares to Ai Xin Limited[93] Directors' Rights to Acquire Shares or Debentures This chapter states that during the reporting period, neither the company nor any of its subsidiaries entered into any arrangements enabling directors to acquire benefits by acquiring shares or debentures of the company or any other corporation - At no time during the reporting period did the company or any of its subsidiaries enter into any arrangements that would enable directors to acquire benefits by acquiring shares or debentures of the company or any other corporation[96] Share Award Scheme This chapter introduces the purpose and management of the company's share award scheme and its operation during the reporting period, noting no awards were granted or shares purchased - The Share Award Scheme aims to recognize and reward the contributions of eligible participants, retain them for the Group's continued operations and development, and attract suitable personnel to drive the Group's further growth[97] - During the reporting period, the Board did not grant, lapse, or cancel any awards, nor did the trustee of the Share Award Scheme purchase any shares[98] - At the beginning and end of the reporting period, the number of existing and new share awards that could be granted under the Share Award Scheme remained at 20,750,000[99] Share Option Scheme This chapter introduces the purpose of the company's share option scheme and notes that no share options have been granted, exercised, lapsed, or canceled since its listing - The Share Option Scheme aims to provide eligible persons with an opportunity to hold personal equity in the company and incentivize them to enhance their future contributions to the Group[100] - Since the company's listing, no share options under the Share Option Scheme have been granted, exercised, lapsed, or canceled[101] - The number of share options that could be granted under the Share Option Scheme was 40,000,000 at both the beginning and end of the reporting period[102] Contractual Arrangements This chapter states that during the reporting period, the Board reviewed the overall performance of the contractual arrangements and found that the Group had complied with them in all material respects, with no significant changes - During the reporting period, the Board reviewed the overall performance of the contractual arrangements and considered that the Group had complied with the contractual arrangements in all material respects[104] - As of the date of this interim report, there have been no changes to the new contractual arrangements and/or the adoption of new contractual arrangements[105] Latest Regulatory Developments This chapter states that there have been no significant updates in regulatory developments since the publication of the 2024 annual report, and the Board believes that existing laws and regulations will not have an immediate material adverse impact on the Group's business operations and financial position - There have been no significant updates since the publication of the 2024 annual report[106] - The Board believes that the aforementioned laws, decisions, implementing regulations and rules, and administrative measures will not have an immediate material adverse impact on the Group's business operations, business plans, and financial position[106] Acknowledgement This chapter expresses the Board's sincere gratitude to all shareholders, management team, employees, business partners, and students for their support and contributions to the Group's development - The Group extends its sincere gratitude to our shareholders, management team, employees, business partners, and our students for their support and contributions to the Group[107] Interim Condensed Consolidated Statement of Profit or Loss This section presents the statement of profit or loss for the six months ended June 30, 2025, showing a decrease in profit for the period to RMB 162,061 thousand Interim Condensed Consolidated Statement of Profit or Loss This chapter provides the statement of profit or loss for the six months ended June 30, 2025, showing a profit for the period of RMB 162,061 thousand, a decrease from the same period last year Interim Condensed Consolidated Statement of Profit or Loss (Six Months Ended June 30) | 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 | | Other income and gains | 17,007 | 16,585 | | Selling and distribution expenses | (1,182) | (2,701) | | Administrative expenses | (104,473) | (86,797) | | Impairment loss on financial assets | (2,751) | (2,202) | | Other expenses | (442) | (272) | | Finance costs | (13,029) | (13,756) | | Profit before tax | 212,334 | 241,690 | | Income tax expense | (50,273) | (61,833) | | Profit for the period | 162,061 | 179,857 | | Earnings per share attributable to ordinary equity holders of the parent (Basic and diluted) | RMB 0.41 | RMB 0.45 | Interim Condensed Consolidated Statement of Comprehensive Income This section presents the statement of comprehensive income for the six months ended June 30, 2025, showing a total comprehensive income of RMB 162,291 thousand, a decrease from the prior year Interim Condensed Consolidated Statement of Comprehensive Income This chapter provides the statement of comprehensive income for the six months ended June 30, 2025, showing a total comprehensive income for the period of RMB 162,291 thousand, a decrease from the same period last year Interim Condensed Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 162,061 | 179,857 | | Other comprehensive income/(loss), net of tax | 230 | (1,346) | | Total comprehensive income for the period | 162,291 | 178,511 | | Attributable to owners of the parent | 162,291 | 178,511 | Interim Condensed Consolidated Statement of Financial Position This section presents the statement of financial position as of June 30, 2025, showing total assets less current liabilities of RMB 3,119,981 thousand and net assets of RMB 2,442,808 thousand, an increase from the end of 2024 Interim Condensed Consolidated Statement of Financial Position This chapter provides the statement of financial position as of June 30, 2025, showing total assets less current liabilities of RMB 3,119,981 thousand and net assets of RMB 2,442,808 thousand, an increase from the end of 2024 Interim Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | | | | Property, plant and equipment | 2,388,330 | 2,407,320 | | Total non-current assets | 3,190,508 | 3,144,694 | | Current assets | | | | Cash and cash equivalents and time deposits | 285,410 | 338,768 | | Total current assets | 443,265 | 830,568 | | Current liabilities | | | | Total current liabilities | 513,792 | 978,993 | | Net current liabilities | (70,527) | (148,425) | | Non-current liabilities | | | | Interest-bearing bank borrowings | 663,275 | 666,926 | | Total non-current liabilities | 677,173 | 679,139 | | Net assets | 2,442,808 | 2,317,130 | | Total equity | 2,442,808 | 2,317,130 | - As of June 30, 2025, net assets were RMB 2,442,808 thousand, an increase from RMB 2,317,130 thousand as of December 31, 2024[117] Interim Condensed Consolidated Statement of Changes in Equity This section presents the statement of changes in equity for the six months ended June 30, 2025, showing an increase in total equity attributable to owners of the parent from RMB 2,317,130 thousand at the beginning of the period to RMB 2,442,808 thousand at the end of the period Interim Condensed Consolidated Statement of Changes in Equity This chapter provides the statement of changes in equity for the six months ended June 30, 2025, showing an increase in total equity attributable to owners of the parent from RMB 2,317,130 thousand at the beginning of the period to RMB 2,442,808 thousand at the end of the period Interim Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30, 2025) | Indicator | 2025 January 1 (RMB thousand) | Profit for the period (RMB thousand) | Other comprehensive income (RMB thousand) | Final dividend declared for 2024 (RMB thousand) | 2025 June 30 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the parent | 2,317,130 | 162,061 | 230 | (36,613) | 2,442,808 | Interim Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30, 2024) | Indicator | 2024 January 1 (RMB thousand) | Profit for the period (RMB thousand) | Other comprehensive loss (RMB thousand) | Final dividend declared for 2023 (RMB thousand) | 2024 June 30 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the parent | 2,169,829 | 179,857 | (1,346) | (35,990) | 2,312,350 | Interim Condensed Consolidated Statement of Cash Flows This section presents the statement of cash flows for the six months ended June 30, 2025, showing net cash used in operating activities of RMB (204,190) thousand, net cash from investing activities of RMB 203,861 thousand, and net cash used in financing activities of RMB (53,267) thousand, resulting in a net decrease in cash and cash equivalents Interim Condensed Consolidated Statement of Cash Flows This chapter provides the statement of cash flows for the six months ended June 30, 2025, showing net cash used in operating activities of RMB (204,190) thousand, net cash from investing activities of RMB 203,861 thousand, and net cash used in financing activities of RMB (53,267) thousand, leading to a net decrease in cash and cash equivalents Interim Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (204,190) | (242,269) | | Net cash from investing activities | 203,861 | 16,163 | | Net cash (used in)/from financing activities | (53,267) | 27,391 | | Net decrease in cash and cash equivalents | (53,596) (Decrease) | (198,715) (Decrease) | | Cash and cash equivalents at end of period | 247,033 | 306,046 | - Net cash from investing activities in 2025 was RMB 203,861 thousand, a significant increase from RMB 16,163 thousand in 2024, primarily due to the redemption of financial assets at fair value through profit or loss[127] Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information, covering company details, accounting policies, segment information, revenue breakdown, profit before tax, income tax, dividends, earnings per share, property, plant and equipment, trade receivables, share capital, share award scheme, commitments, related party transactions, fair value of financial instruments, and post-reporting period events 1. Company Information This chapter briefly introduces the company's place of incorporation, nature, and primary business of providing undergraduate and junior college education services in China - The company was incorporated in the Cayman Islands as an exempted company under the laws of the Cayman Islands on May 8, 2018[128] - The Group primarily provides undergraduate and junior college education services in the People's Republic of China[128] 2. Basis of Preparation and Changes in Accounting Policies and Disclosures This chapter clarifies that the interim condensed consolidated financial information is prepared in accordance with IAS 34 and states that, except for the initial adoption of revised IFRSs, accounting policies are consistent with the annual consolidated financial statements - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[129] - Except for the initial adoption of revised International Financial Reporting Standards during this financial information period, the accounting policies adopted in preparing the interim condensed consolidated financial information are the same as those used in preparing the Group's annual consolidated financial statements for the year ended December 31, 2024[130] - IAS 21 (Amendment) "Lack of Exchangeability" has no impact on the interim condensed consolidated financial information, as the functional currencies of the Group and Group entities transacting in and converting to the Group's presentation currency are exchangeable[131] 3. Operating Segment Information This chapter states that the Group primarily provides higher education services in China, and no separate operating segment and geographical information is presented as all revenue and long-term assets are derived from China - The Group primarily provides higher education services in China, and the Directors review the Group's financial performance as a whole, thus no information on operating segments is presented[133] - During the period, as all revenue was generated in China and all long-term assets/capital expenditures were located in/originated from China, the Group operated in only one geographical location, and no geographical information is presented[134] - During the period, no revenue from services provided to a single customer accounted for 10% or more of the Group's total revenue[135] 4. Revenue This chapter provides a detailed analysis of the Group's revenue sources, primarily including tuition fees, boarding fees, education-related services, and other services, with total revenue remaining stable compared to the prior year Revenue Composition (Six Months Ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Tuition fees | 451,863 | 454,760 | | Boarding fees | 72,202 | 70,636 | | Education-related services | 8,473 | 8,409 | | Other services | 1,516 | 1,629 | | Total | 534,054 | 535,434 | - Most revenue (tuition fees, boarding fees, some education-related services, and other services) is recognized over time, while a small portion of education-related services is recognized at a point in time[138] - Performance obligations for tuition fees and boarding fees are satisfied over time as services are provided, generally prepaid before the start of each academic year[139] 5. Profit Before Tax This chapter lists the main expenses deducted from the Group's profit before tax, including cost of services provided, employee benefit expenses, depreciation and amortization, and impairment of financial assets Major Deductions (Six Months Ended June 30) | 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 of financial assets | 2,751 | 2,202 | - For the six months ended June 30, 2025, depreciation of property, plant and equipment, depreciation of right-of-use assets, amortization of other intangible assets, and a portion of employee benefit expenses have been included in "cost of sales" in the statement of profit or loss[141] 6. Income Tax Expense This chapter explains the Group's income tax policies in different jurisdictions and discloses the composition of income tax expense for the reporting period, with Gench WFOE enjoying a preferential tax rate of 15% due to its high-tech enterprise qualification - The company is not subject to income tax in the Cayman Islands, and its directly held subsidiaries are not subject to income tax in the British Virgin Islands[142] - All subsidiaries operating in mainland China, except for Wangting Education Technology (Shanghai) Co., Ltd. (Gench WFOE), are subject to China corporate income tax at a rate of 25%[145] - Gench WFOE, due to its "High-tech Enterprise" qualification, is subject to corporate income tax at a rate of 15% for the six months ended June 30, 2025, and 2024[145] Income Tax Expense Composition (Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 48,879 | 56,246 | | Deferred | 1,394 | 5,587 | | Total tax deduction for the period | 50,273 | 61,833 | 7. Dividends This chapter discloses the final dividends declared and paid and the interim dividends proposed by the Board - Final dividends declared and paid were HKD 0.10 per ordinary share (2025: RMB 36,613 thousand; 2024: RMB 35,990 thousand)[147] - The Board resolved to declare an interim dividend of HKD 0.10 per share for the six months ended June 30, 2025 (for the six months ended June 30, 2024: HKD 0.10 per ordinary share)[147] 8. Earnings Per Share Attributable to Ordinary Equity Holders of the Parent This chapter explains the calculation method for basic earnings per share and provides the profit for the period and weighted average number of ordinary shares used in the calculation - The basic earnings per share amount is calculated based on the profit for the period attributable to ordinary equity holders of the parent of RMB 162,061 thousand (for the six months ended June 30, 2024: RMB 179,857 thousand) and the weighted average number of ordinary shares outstanding during the period of 394,500,000 shares (for the six months ended June 30, 2024: 395,401,500 shares)[149] - For the six months ended June 30, 2025, and 2024, the Group had no outstanding potential dilutive ordinary shares[150] Earnings Per Share (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent used for calculating basic and diluted earnings per share | 162,061 | 179,857 | | Weighted average number of ordinary shares used for calculating basic and diluted earnings per share | 394,500,000 | 395,401,500 | 9. Property, Plant and Equipment This chapter discloses the changes in property, plant and equipment during the reporting period, showing a slight decrease in the ending balance, mainly due to new additions being less than depreciation - As of June 30, 2025, the Group's property, plant and equipment amounted to approximately RMB 2,388,330 thousand[152] - Additions during the period were RMB 38,929 thousand, and depreciation charged was RMB (57,882) thousand, resulting in a decrease in the ending balance compared to the beginning of the period[152] - As of June 30, 2025, the original cost of the Group's property, plant and equipment of RMB 237,369 thousand was offset by government grants received[152] 10. Trade Receivables This chapter provides an aging analysis of trade receivables at the end of the reporting period, showing a significant decrease in receivables within one year Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 June 30 (RMB thousand) | 2024 December 31 (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 | - Total trade receivables decreased from RMB 11,748 thousand as of December 31, 2024, to RMB 5,359 thousand as of June 30, 2025[153] 11. Share Capital This chapter discloses the company's authorized and issued share capital, showing that the number and amount of share capital remained unchanged during the reporting period - The authorized share capital consists of 500,000,000 ordinary shares with a par value of HKD 0.01 per share, amounting to RMB 4,462 thousand[154] - The issued and fully paid share capital consists of 415,000,000 ordinary shares with a par value of HKD 0.01 per share, amounting to RMB 3,677 thousand[154] 12. Share Award Scheme This chapter details the eligibility, purpose, and management of the share award scheme, as well as share purchases during the reporting period, indicating no share purchases or awards granted - Eligible participants in the Share Award Scheme include employees, executives or officers, directors, or any consultants or advisors of any member of the Group[157] - The purpose and objectives of the Share Award Scheme are to recognize and reward the contributions of certain eligible participants, to retain them for the Group's continued operations and development, and to attract suitable personnel to drive the Group's further growth[157] - For the six months ended June 30, 2025, the trustee did not purchase any shares under the Share Award Scheme, nor did the Board grant, lapse, or cancel any awards[163] 13. Commitments This chapter discloses the Group's capital commitments at the end of the reporting period, primarily related to the acquisition of property, plant and equipment - The Group's capital commitments related to property, plant and equipment at the end of the reporting period amounted to RMB 6,293 thousand[164] 14. Related Party Transactions This chapter lists transactions with related parties during the reporting period, including repayment of lease deposits and lease payments by associated companies, and discloses key management personnel compensation - Related parties include Shanghai Changjiu Qisheng Energy Co., Ltd. and Shanghai Changjiu Real Estate Development Co., Ltd., both controlled by Mr. Zhao Donghui[165] Transactions with Related Parties (Six Months Ended June 30) | Transaction Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total repayment of lease deposits by associated companies | — | 1,600 | | Total lease payments by associated companies | — | 328 | Key Management Personnel Compensation (Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Short-term employee benefits | 3,321 | 3,402 | | Contributions to retirement benefit plans | 343 | 275 | | Total | 3,664 | 3,677 | 15. Fair Value and Fair Value Hierarchy of Financial Instruments This chapter explains the Group's fair value measurement methods and fair value hierarchy classification for financial instruments, including financial assets at fair value through profit or loss, debt investments at fair value through other comprehensive income, and equity investments Fair Value of Financial Assets (As of June 30) | Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 145,531 | 473,168 | | Debt investments at fair value through other comprehensive income | 192,906 | 131,037 | | Equity investments designated at fair value through other comprehensive income | 2,000 | — | | Total | 340,437 | 604,205 | Fair Value of Financial Liabilities (As of June 30) | Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest-bearing bank borrowings | 843,459 | 846,162 | - The fair value of unlisted investments (certificates of deposit and wealth management products) is estimated using the effective interest method and discounted cash flow valuation models; the fair value of unlisted equity investments designated at fair value through other comprehensive income is estimated using market-based valuation techniques[174][176] Fair Value Hierarchy (As of June 30, 2025) | Type | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 145,531 | — | 145,531 | | Debt investments at fair value through other comprehensive income | 192,906 | — | 192,906 | | Equity investments designated at fair value through other comprehensive income | — | 2,000 | 2,000 | | Total assets | 338,437 | 2,000 | 340,437 | | Interest-bearing bank borrowings | 843,459 | — | 843,459 | 16. Events After Reporting Period This chapter reconfirms the legal proceedings and interim dividend payment resolution that occurred after the reporting period - In early August 2025, the Group received two civil judgments from the Shanghai Pudong New Area People's Court regarding a construction contract dispute between Jian Qiao University and a contractor, where Jian Qiao University was ordered to pay construction fees totaling approximately RMB 8.3 million plus interest for overdue payments[186] - On August 28, 2025, the Board resolved to recommend the payment of an interim dividend of HKD 0.10 per ordinary share for the six months ended June 30, 2025, to shareholders whose names appear on the company's register of members on Friday, October 10, 2025[186] 17. Approval of Interim Condensed Consolidated Financial Information This chapter specifies the approval date of the interim condensed financial information - The interim condensed financial information was approved by the Board and authorized for issue on August 28, 2025[187] Definitions This section provides definitions for key terms used in this interim report to ensure clear understanding of the content Definitions This chapter lists definitions for key terms used in this interim report, such as "2016 Decision," "Affiliates," "Associate," "Audit Committee," "Board," "Corporate Governance Code," "China," "Company," "Contractual Arrangements," "Directors," and "Group," to ensure clear understanding of the report's content - This chapter lists definitions for key terms such as "2016 Decision," "Affiliates," "Associate," "Audit Committee," "Board," "Corporate Governance Code," "China," "Company," "Contractual Arrangements," "Directors," and "Group"[189][191][197]