Enrollment and Academic Programs - The total number of enrolled students increased from 56,518 as of December 31, 2021, to 60,510 as of December 31, 2022, representing a growth of approximately 6%[8]. - The Clinical Medicine College saw an enrollment increase to 5,993 students as of December 31, 2022, which is a year-on-year growth of 40.65%[12]. - The new undergraduate programs approved for Xinhua College include Financial Technology and Artificial Intelligence, contributing to a total of 57 undergraduate programs offered[11]. - The Clinical Medicine College has added three new undergraduate programs: Preventive Medicine, Intelligent Medical Engineering, and Biomedical Data Science[12]. - The group added new undergraduate programs in financial technology, artificial intelligence, preventive medicine, intelligent medical engineering, and biomedical data science, totaling 4 national-level first-class undergraduate programs and 14 provincial-level first-class undergraduate programs[18]. Financial Performance - Revenue rose from RMB 565.4 million for the year ended December 31, 2021, to RMB 625.5 million for the year ended December 31, 2022, marking an increase of about 10.6%[8]. - The group's revenue increased by 10.6% from RMB 565.4 million for the year ended December 31, 2021, to RMB 625.5 million for the year ended December 31, 2022, primarily due to an increase in student enrollment and average tuition fees[24]. - Adjusted revenue for 2022 was RMB 860,098,000, an increase of 11.1% from RMB 774,046,000 in 2021[25]. - The company reported a revenue of 1.2 billion RMB for the fiscal year 2022, representing a year-over-year increase of 15%[76]. - The gross margin for the year was reported at 40%, a slight improvement from 38% in the previous year[76]. Costs and Expenses - Main operating costs rose by 31.5% to RMB 256,800,000 in 2022 from RMB 195,300,000 in 2021, driven by increased educational investments[27]. - Administrative expenses surged by 147.1% to RMB 158,400,000 in 2022 from RMB 64,100,000 in 2021, largely due to increased foreign exchange losses[31]. - Profit before tax fell by 33.0% to RMB 239,400,000 in 2022 from RMB 357,300,000 in 2021, primarily due to increased foreign exchange losses[33]. - Net profit for the year was RMB 235,500,000, a decline of 33.6% from RMB 354,500,000 in 2021[36]. - Current assets decreased significantly by 77.0% to RMB 537,936,000 in 2022 from RMB 2,338,874,000 in 2021, mainly due to reclassification of other receivables[39]. Investments and Capital Expenditures - Capital expenditures for the group amounted to RMB 436.7 million in 2022, a decrease from RMB 997.7 million in 2021, primarily related to the construction of buildings and school facilities[49]. - The group has invested significantly in modernizing campus facilities, including the construction and renovation of 80 experimental training centers and 3 academic report centers[18]. Employment and Workforce - The workforce increased to approximately 2,297 employees as of December 31, 2022, compared to 1,995 in the previous year[63]. - The group conducted 680 training sessions to enhance the skills of its faculty, focusing on attracting high-level talent, including PhDs and senior professionals[18]. Strategic Initiatives and Future Plans - The company aims to enhance the management level of existing schools and improve the quality of educational services to increase student competitiveness in the job market[9]. - The company is focused on integrating education with industry and strengthening school-enterprise cooperation to leverage market potential in higher education[9]. - The company plans to leverage favorable policies to enhance educational services and contribute to the modernization of education in China, as outlined in the "Strategic Plan for Expanding Domestic Demand (2022-2035)"[20]. - The company expects a revenue growth of 10-15% for the next fiscal year, driven by new product launches and market expansion[76]. Risk Management - The company faces operational risks including changes in the private education market, regulatory environment, and competition from other educational institutions[107]. - The company has a risk management structure in place to address various risks, including credit and liquidity risks[111]. Shareholder and Governance - The board of directors has approved a dividend payout of 0.2 RMB per share, reflecting a commitment to returning value to shareholders[76]. - The company has established a dividend policy that allows the board to decide on dividend distribution based on financial performance, working capital needs, and future plans[101]. - The controlling shareholder has committed to a non-competition agreement, ensuring no direct or indirect competition with the group's business during the restricted period[167]. - The company has confirmed the independence of its independent non-executive directors as per the listing rules[133]. Compliance and Legal Structure - The group operates private higher education businesses in China through structured contracts due to restrictions on foreign ownership in the sector[173]. - The company has established a second structured contract, which is substantially similar to the first, ensuring the flow of economic benefits from Chinese operating schools to the company[176]. - The agreements are designed to protect the company's interests and ensure the sustainability of its educational services[182].
中国新华教育(02779) - 2022 - 年度财报