Educational Operations - As of June 30, 2023, China East Education operated 244 schools and centers with an average enrollment of 147,276 students[18]. - The culinary arts segment, under the New East brand, had 76 schools with 59,128 average students enrolled[18]. - The information technology and internet technology segment, represented by Xinhua Internet, operated 38 schools with 41,702 average students enrolled[18]. - The auto services segment, under the Wontone brand, had 40 schools with 38,827 average students enrolled[18]. - The fashion and beauty segment, represented by On-mind, operated 4 schools with 1,396 average students enrolled[18]. - The company focuses on vocational training in four sectors: culinary arts, information technology, auto services, and fashion and beauty[4]. - The comprehensive nationwide school network covers almost all provinces in mainland China and Hong Kong[4]. - The number of schools in operation reached 244 as of June 30, 2023, including 76 schools under New East Culinary Education and 40 schools under Wontone Automotive Education[19]. - The company established Anhui Xinhua Education to consolidate all schools under a single entity, increasing operational efficiency[19]. - The company expanded its business to Hong Kong, further enhancing its market presence[19]. Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 1,953 million, representing an increase from RMB 1,879 million in the same period of 2022, a growth of approximately 3.9%[20]. - Gross profit for the period was RMB 997 million, slightly up from RMB 993 million year-on-year[20]. - Net profit for the period decreased to RMB 204 million from RMB 242 million in the previous year, a decline of about 15.7%[20]. - Adjusted net profit was RMB 176 million, compared to RMB 181 million in the same period of 2022, reflecting a decrease of approximately 2.8%[20]. - Adjusted EBITDA for the period was RMB 633 million, down from RMB 674 million year-on-year, a decline of about 6.1%[20]. - Total assets as of June 30, 2023, were RMB 9,281 million, a decrease from RMB 9,489 million as of December 31, 2022[20]. - Net assets as of June 30, 2023, were RMB 5,522 million, down from RMB 5,692 million at the end of 2022[20]. Enrollment and Student Statistics - The average number of customers registered for the six months ended June 30, 2023, was 147,276[16]. - The company reported a total of 33,463 new student enrollments in culinary arts for the six months ended June 30, 2023, representing a 26.1% increase compared to 26,532 enrollments in the same period of 2022[29]. - New East Culinary Education had 14,324 long-term course enrollments, up 13.3% from 12,637 in the previous year[29]. - The short-term course enrollments in culinary arts increased by 37.7%, reaching 19,139 compared to 13,895 in the same period of 2022[29]. - The automotive services segment saw a subtotal increase of 21.7% in enrollment to 20,457 in 2023 from 16,812 in 2022[31]. - Long-term enrollment in the fashion & beauty segment surged by 322.6% to 1,526 in 2023 from 863 in 2022[31]. Cost and Expenses - The cost of revenue increased from approximately RMB 885 million for the six months ended June 30, 2022, to approximately RMB 956 million for the six months ended June 30, 2023, representing an increase of approximately 7.9%[50]. - Teaching staff salaries and benefits accounted for 37.9% of the total cost of revenue in 2023, up from 35.6% in 2022[53]. - Selling expenses increased from RMB 443 million for the six months ended June 30, 2022, to RMB 513 million for the same period in 2023, reflecting a focus on brand promotion and student recruitment[58]. - Administrative expenses rose from RMB 246 million for the six months ended June 30, 2022, to RMB 256 million for the same period in 2023, maintaining a stable ratio of 13.1% of revenue[58]. Strategic Initiatives - The company aims to enhance employability through innovative vocational training education[4]. - The company is focusing on enhancing its vocational education offerings and expanding its market presence in China[20]. - Future outlook includes potential new product launches and technology developments aimed at improving educational services[20]. - The company is exploring strategic partnerships and acquisitions to bolster its growth trajectory in the education sector[20]. - The Group intends to expand and diversify course offerings in culinary arts, information technology, auto services, and fashion & beauty, responding to industry trends and market demand[68]. Corporate Governance and Compliance - The company has adopted the standard code for securities transactions by directors as per the listing rules[81]. - The interests and short positions of directors are disclosed in compliance with the Securities and Futures Ordinance[82]. - The Group has confirmed compliance with the Model Code for securities transactions by Directors during the six months ended 30 June 2023[111]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended 30 June 2023, ensuring compliance with applicable accounting standards and adequate disclosures[113]. Market and Economic Context - The company supports China's evolving workforce requirements driven by sustained economic growth and urbanization[4]. - The Group's initiatives are in line with national goals to cultivate diverse talents and promote employment and entrepreneurship through vocational education[104]. - The Group's strategic alignment with government policies is expected to enhance its competitive position in the vocational education sector[106].
中国东方教育(00667) - 2023 - 中期财报