Financial Performance - The total revenue for the year ended December 31, 2021, increased to RMB 684.6 million, up 22% from RMB 561.3 million in the previous year[24]. - Annual profit rose to RMB 409.0 million, representing a 26% increase from RMB 325.6 million in the prior year[24]. - The gross profit for the year was RMB 420.7 million, up from RMB 334.3 million in 2020, indicating a growth of 25.8%[12]. - Core net profit for the year was RMB 415.0 million, an increase from RMB 331.8 million in the previous year[12]. - The net profit margin improved to 59.7% in 2021, up from 58.0% in 2020[15]. - Revenue increased by 22% from RMB 561.3 million in 2020 to RMB 684.6 million in 2021, primarily due to an increase in tuition fees by RMB 90.8 million and accommodation fees by RMB 25.1 million[58]. - Gross profit rose by 26% from RMB 334.3 million in 2020 to RMB 420.7 million in 2021, driven by the increase in revenue[61]. - Net profit for the year was approximately RMB 409.0 million, a growth of about 26% compared to RMB 325.6 million in 2020[68]. Student Enrollment and Employment - The number of enrolled students expanded to 45,506, marking a 17% increase compared to the previous academic year[23]. - The employment rate of graduates from the company's institutions is consistently higher than that of similar colleges in the provinces[30]. - The initial employment rate of graduates from Changzheng College for the 2020/2021 academic year was approximately 98.68%[38]. - The initial employment rate for graduates from Zhengzhou University of Economics and Trade was approximately 93.80% for the 2020/2021 academic year[42]. - Zhengzhou University of Economics and Trade had a total student enrollment of 27,881 in 2021, up from 24,147 in 2020, representing an increase of approximately 11.4%[48]. Institutional Growth and Expansion Plans - The company plans to leverage the growth potential in China's higher education market, focusing on private higher education institutions[23]. - The company aims to expand its operational scale through both organic growth and mergers and acquisitions[27]. - The company plans to expand its school network, including a new campus in Kaifeng, Henan, with an estimated capacity of 15,000 students[54]. - The company aims to acquire or invest in underutilized schools in Central, Eastern, and Southern China, focusing on profitable private institutions[55]. - A new degree-granting institution is planned in California, USA, offering courses in business administration and international business[56]. Financial Position and Assets - Total assets increased to RMB 3,014.8 million in 2021, compared to RMB 2,646.1 million in 2020[12]. - The total equity for the year reached RMB 2,436.4 million, up from RMB 2,182.5 million in 2020[12]. - The net current assets increased to approximately RMB 731.1 million as of December 31, 2021, up from RMB 717.6 million in 2020, mainly due to an increase in bank balances[71]. - As of December 31, 2021, the group had cash and cash equivalents of RMB 1,227.3 million, an increase of RMB 77.7 million from RMB 1,149.6 million as of December 31, 2020[74]. Operational Efficiency and Management - The company plans to enhance profitability by optimizing pricing strategies and diversifying revenue sources[25]. - The company is focused on attracting and retaining qualified teachers while enhancing their research and curriculum development capabilities[25]. - The company has a strong management team with members holding various educational qualifications, including master's degrees in engineering and business administration[98]. - The management team collectively brings decades of experience in their respective fields, enhancing the company's strategic decision-making capabilities[106]. - The company has been expanding its management team with experienced professionals to enhance operational efficiency[120][123]. Compliance and Governance - The company has maintained compliance with relevant laws and regulations without any significant violations during the fiscal year ending December 31, 2021[136]. - The board has no disclosed relationships among its members, ensuring independent governance[123]. - All independent non-executive directors confirmed their independence according to the listing rules, and the company considers them independent as of December 31, 2021[158]. - The company emphasizes the importance of financial control and discipline within its operations[123]. Environmental and Social Responsibility - The company is committed to integrating environmental protection concepts into its educational practices, although its operations do not have significant environmental impacts[135]. - The company has established a compliance mechanism to adhere to environmental policies and has not encountered any violations related to environmental protection during the year[135]. Shareholder and Financial Structure - The company reported a distributable reserve of approximately RMB 1,410 million as of December 31, 2021[145]. - The company's issued and paid-up shares amounted to 1,600,830,000 shares as of December 31, 2021[142]. - The company raised approximately HKD 600 million from its IPO by issuing 400,000,000 shares at HKD 1.5 per share, with a net amount of approximately HKD 524 million after deducting underwriting fees and related expenses[151]. - 50% of the net proceeds (approximately RMB 231 million) is allocated for acquiring other schools to expand the school network, with the expected utilization by December 31, 2024[151]. Contracts and Agreements - The company operates through Wholly Foreign-Owned Enterprises (WFOEs) to manage its educational business in China[173]. - The structural contracts allow the company to effectively control the financial and operational policies of schools operating in China, complying with applicable laws[173]. - The exclusive purchase option agreement allows WFOEs to acquire all or part of the equity of Jia Hong Holdings Group and its subsidiaries, as well as the interests of the organizer of Jingyi Middle School, at the minimum price permitted by Chinese laws and regulations[198].
嘉宏教育(01935) - 2021 - 年度财报