Educational Operations - As of December 31, 2023, China East Education operated 245 schools and centers with an average enrollment of 146,839 students[5]. - The culinary arts segment, under the New East brand, had 76 schools with an average of 58,529 students enrolled[10]. - The information technology segment, represented by Xinhua Internet, operated 39 schools with an average enrollment of 41,061 students[10]. - The auto services segment, under Wontone, had 41 schools with an average of 39,175 students enrolled[10]. - The fashion and beauty segment, represented by On-mind, operated 5 schools with an average enrollment of 1,955 students[10]. - The total average number of students enrolled across all segments for the year ended December 31, 2023, was 146,839[10]. - The company focuses on providing innovative vocational training in four key sectors: culinary arts, information technology, auto services, and fashion & beauty[5]. - The comprehensive nationwide school network covers almost all provinces in mainland China and Hong Kong[5]. - The number of schools in operation reached 245 as of December 31, 2023, including 76 schools under New East Culinary Education and 41 schools under Wontone Automotive Education[11]. - The company expanded its business to Hong Kong, increasing the number of operational schools from 71 to 126 over a specified period[11]. - The company founded Omick Education of Western Cuisine and Pastry to offer high-quality western-style catering education, diversifying its educational offerings[11]. - The company has established seven renowned school brands, including New East Culinary Education and Omick Education, to cater to diverse vocational training needs[32]. Financial Performance - For the year ended 31 December 2023, the Group's revenue was RMB 3,979 million, representing a year-on-year increase of 4.2% compared to 2022[18]. - The net profit for the year was approximately RMB 273 million, representing a year-on-year decrease of 25.8% compared to 2022[18]. - The adjusted net profit for the year was RMB 281 million, representing a year-on-year increase of 5.4% compared to 2022[18]. - Gross profit for the year was RMB 1,908 million, slightly up from RMB 1,891 million in 2022[18]. - Adjusted EBITDA for the year was RMB 1,136 million, down from RMB 1,189 million in 2022[18]. - Total assets as of 31 December 2023 were RMB 9,291 million, compared to RMB 9,489 million as of 31 December 2022[18]. - The cost of revenue rose from approximately RMB 1,928 million in 2022 to approximately RMB 2,070 million in 2023, marking an increase of 7.4%[60]. - Selling expenses increased from RMB 946 million for the year ended 31 December 2022 to RMB 1,037 million for the year ended 31 December 2023, reflecting a growth of approximately 9.6%[68]. - Administrative expenses rose from RMB 512 million in 2022 to RMB 529 million in 2023, representing about 13.3% of revenue for 2023, stable compared to 13.4% in 2022[68]. Student Enrollment and Growth - The number of new students enrolled was 152,881, representing a year-on-year increase of 13.8% compared to 2022[18]. - The average number of students enrolled nationwide in 2023 was 146,839[18]. - The Group opened 5 new schools, bringing the total number of institutions nationwide to 245[18]. - The total number of new students enrolled across all segments increased by 13.8% to 152,881 in 2023 from 134,347 in 2022[41]. - Long-term enrollment in the Fashion and Beauty segment surged by 392.3% to 1,728 in 2023 from 351 in 2022[41]. - Short-term course enrollment in the Auto Services segment increased by 31.9% to 17,923 in 2023 from 13,593 in 2022[41]. Corporate Governance - The Company has complied with all code provisions set out in the Corporate Governance Code for the year ended December 31, 2023[112]. - The Board is collectively responsible for promoting the success of the Company and directing its affairs[114]. - The Company is committed to enhancing its corporate governance practices and will review them periodically to align with statutory and professional standards[113]. - The Company has adopted a written human resources policy to govern recruitment and diversity of the workforce[157]. - The Company has provided appropriate insurance cover for Directors and officers' liabilities to protect against potential legal actions[131]. Future Plans and Strategic Initiatives - The Group plans to establish Vocational Education Industrial Parks in major student recruitment provinces, with the first phase in Sichuan and Shandong already operational, and projects in Guizhou and Henan nearing completion[87]. - The Group aims to expand its school network to cover all provincial capital cities in China, targeting cities with significant unmet demand for skilled workers in various sectors[88]. - The Group intends to diversify its course offerings in culinary arts, information technology, auto services, and fashion & beauty, while exploring new sectors like artificial intelligence and healthcare[89]. - The Group believes that the Vocational Education Industrial Parks will drive increased student demand for its education services and achieve cost synergies in the future[86]. Employee and Management Structure - As of December 31, 2023, the total number of employees is 10,881, with 48.0% being full-time teachers and instructors[97]. - The company plans to hire additional teachers and instructors as part of its expansion strategy[98]. - The remuneration packages are determined based on individual qualifications, experience, performance, and market rates[100]. - The executive directors and core management account for 3.1% of the total employee count[97]. - The company emphasizes performance-based bonuses in its employee compensation structure[100]. Risk Management and Financial Assets - The Group has sufficient capital to meet its commitments and working capital requirements for future operations and general business expansion[75]. - Internal control and risk management measures are in place to monitor the performance and redemption status of financial assets, which are generally low-risk and issued by reputable institutions[79]. - The Group did not use financial instruments for hedging purposes in 2023 but monitors foreign exchange exposure and may consider hedging when necessary[85]. Environmental, Social, and Governance (ESG) Reporting - The Group's Environmental, Social, and Governance (ESG) report covers the period from January 1, 2023, to December 31, 2023, adhering to the Stock Exchange's reporting guidelines[191]. - The report includes data from seven major industrial brands under the Group, maintaining consistency with the prior year[198]. - The Group emphasizes the importance of transparency in its reporting, avoiding any biases that could mislead stakeholders[197].
中国东方教育(00667) - 2023 - 年度财报