中国科教产业(01756) - 2023 - 中期业绩

Summary The Group achieved significant growth in revenue and profit, increased student enrollment, and improved gross and adjusted net profit margins for the six months ended February 28, 2023 Key Financial and Operating Data for the Six Months Ended February 28, 2023 | Indicator | Six Months Ended Feb 28, 2023 | Six Months Ended Feb 28, 2022 | Change | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Number of Schools | 3 | 3 | – | – | | Enrolled Students | 54,109 | 48,468 | 5,641 | 11.6% | | Revenue (RMB thousands) | 548,044 | 459,465 | 88,579 | 19.3% | | Gross Profit (RMB thousands) | 322,875 | 249,786 | 73,089 | 29.3% | | Profit for the Period (RMB thousands) | 215,055 | 142,927 | 72,128 | 50.5% | | Adjusted Net Profit (RMB thousands) | 216,532 | 141,844 | 74,688 | 52.7% | | Earnings Per Share (RMB) | 0.179 | 0.120 | 0.059 | 49.2% | | Gross Margin | 58.9% | 54.4% | +4.5% | | | Operating Margin | 48.9% | 43.7% | +5.2% | | | Net Profit Margin | 39.2% | 31.1% | +8.1% | | | Adjusted Net Profit Margin | 39.5% | 30.9% | +8.6% | | - During the reporting period, the Group achieved significant growth in both revenue and profit, with an increase in student enrollment, and improvements in gross margin and adjusted net profit margin[226][221] Management Discussion and Analysis This section provides a comprehensive review of the Group's financial performance, business operations, future strategies, and corporate governance practices for the reporting period Financial Review During the reporting period, the Group's revenue, gross profit, profit before tax, and adjusted net profit all achieved significant growth, primarily due to increased student enrollment and average tuition fees, while selling expenses decreased, capital expenditures reduced, and the financial position remained robust Comparison of Key Financial Indicators | Indicator | Six Months Ended Feb 28, 2023 (RMB thousands) | Six Months Ended Feb 28, 2022 (RMB thousands) | Change | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | 548,044 | 459,465 | 88,579 | 19.3% | | Gross Profit | 322,875 | 249,786 | 73,089 | 29.3% | | Operating Profit | 268,126 | 200,588 | 67,538 | 33.7% | | Profit Before Tax | 219,570 | 155,997 | 63,573 | 40.8% | | Profit for the Period | 215,055 | 142,927 | 72,128 | 50.5% | | Adjusted Net Profit | 216,532 | 141,844 | 74,688 | 52.7% | | Gross Margin | 58.9% | 54.4% | +4.5% | | | Operating Margin | 48.9% | 43.7% | +5.2% | | - Selling expenses decreased by 33.7% to RMB 6.3 million, primarily due to changes in marketing strategy and reduced promotional expenses for the 2022/2023 academic year[224] - Capital expenditure decreased by 41.7% to RMB 296.7 million, mainly due to reduced construction costs for new school campuses[35] - The debt ratio (borrowings as a percentage of total assets) was 37.0%, a slight increase from 36.7% as of August 31, 2022, but the Group maintains sufficient liquidity to meet daily management and capital expenditure needs[236][10] Business Overview As a leading private higher and vocational education group in South China, the Group operates three schools with a total student enrollment of 54,109, an 11.6% year-on-year increase, with tuition and boarding fee revenue growing significantly, school utilization rates remaining high, and multiple industry awards and recognitions received - The Group operates three schools: Huali College (undergraduate), Huali Vocational College (junior college), and Huali Technician College (technical school), offering application-science-focused, practice-oriented curricula[13][239] Comparison of Enrolled Students | School | Feb 28, 2023 | Feb 28, 2022 | Change | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Huali College | 21,615 | 17,662 | 3,953 | 22.4% | | Huali Vocational College | 21,582 | 19,343 | 2,239 | 11.6% | | Huali Technician College | 10,912 | 11,463 | (551) | (4.8%) | | Total | 54,109 | 48,468 | 5,641 | 11.6% | Comparison of Tuition and Boarding Fee Revenue | Revenue Type | Six Months Ended Feb 28, 2023 (RMB thousands) | Six Months Ended Feb 28, 2022 (RMB thousands) | Change | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Tuition Fees | 509,476 | 423,307 | 86,169 | 20.4% | | Boarding Fees | 38,568 | 36,158 | 2,410 | 6.7% | | Total Revenue | 548,044 | 459,465 | 88,579 | 19.3% | - School utilization rate at Zengcheng campus increased from 82.1% to 92.1%, and at Jiangmen campus significantly increased from 23.4% to 91.1%, indicating improved utilization of educational capacity[273] Future Outlook The Group will leverage the advantages of the Guangdong-Hong Kong-Macao Greater Bay Area, focus on high-quality academic vocational education, enhance educational capacity through campus expansion, and develop asset-light non-academic vocational education businesses for diversified and sustainable growth - The Group will fully leverage its geographical advantages in the Guangdong-Hong Kong-Macao Greater Bay Area, steadfastly pursuing a high-quality and high-level academic vocational education development path[73] - Expand educational capacity through campus expansion to support future student enrollment growth and business diversification[73] - Vigorously develop the second curve of vocational education business, focusing on an asset-light model and diversifying non-academic vocational education offerings[73] Significant Events After Reporting Period No significant events affecting the Company or its subsidiaries occurred after the reporting period and up to the date of this announcement - No significant events affecting the Company or any of its subsidiaries occurred after the reporting period and up to the date of this announcement[74] Employees and Remuneration Policy The Group strictly adheres to labor laws and regulations, prohibits discrimination, and ensures equal employment opportunities, recruiting high-quality teachers, providing continuous training, and offering a remuneration policy based on industry characteristics and market factors, along with social insurance and benefits - As of February 28, 2023, the Group had 2,189 employees, an increase from 2,065 as of February 28, 2022[78] - The remuneration policy is formulated under the guidance of Chinese law, based on industry characteristics and market factors, and provides employees with social insurance schemes and various benefits[59] - The Group actively recruits high-quality teachers with profound theoretical and practical knowledge and relevant industry work experience, and provides continuous training[58][77] Interim Dividend The Board resolved not to declare any dividend for the reporting period - The Board resolved not to declare any dividend for the reporting period (six months ended February 28, 2022: nil)[60][79] Corporate Governance Practices The Company complies with the Corporate Governance Code, but the Chairman and Chief Executive Officer roles are held by the same person, an arrangement the Board believes provides strong and consistent leadership, enhancing decision-making efficiency - The Company has complied with all code provisions of the Corporate Governance Code, except for Mr. Zhang Zhifeng holding both the Chairman and Chief Executive Officer positions[81][61] - The Board believes that Mr. Zhang Zhifeng serving concurrently as Chairman of the Board and Chief Executive Officer provides strong and consistent leadership for the Group, enhancing decision-making and execution efficiency[61] Standard Code for Securities Transactions The Company has adopted the Standard Code as a code of conduct for securities transactions by directors and relevant employees, and confirmed compliance with it during the reporting period - The Company has adopted the Standard Code as the Group's code of conduct to regulate securities transactions by directors and relevant employees of the Group[82] - Following specific inquiries, all Directors confirmed full compliance with the required standards set out in the Standard Code throughout the reporting period[82] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the six months ended February 28, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[83] Audit Committee and Review of Unaudited Condensed Consolidated Financial Information The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended February 28, 2023, including accounting principles and practices - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended February 28, 2023[101] Publication of Interim Results Announcement and Interim Report This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and published on the same websites in due course - This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and published on the same websites in due course[102] Interim Condensed Consolidated Financial Statements This section presents the Group's interim condensed consolidated statement of comprehensive income and statement of financial position, detailing financial performance and asset-liability structure Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended February 28, 2023, the Group's revenue grew by 19.3% to RMB 548,044 thousand, profit for the period increased by 50.5% to RMB 215,055 thousand, and basic earnings per share were RMB 0.179 Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | Six Months Ended Feb 28, 2023 (RMB thousands) | Six Months Ended Feb 28, 2022 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 548,044 | 459,465 | | Cost of Sales | (225,169) | (209,679) | | Gross Profit | 322,875 | 249,786 | | Selling Expenses | (6,295) | (9,527) | | Administrative Expenses | (65,741) | (57,546) | | Other Income | 16,990 | 14,402 | | Net Other Gains | 297 | 3,473 | | Operating Profit | 268,126 | 200,588 | | Finance Income | 3,637 | 3,092 | | Finance Expenses | (52,193) | (47,683) | | Net Finance Expenses | (48,556) | (44,591) | | Profit Before Income Tax | 219,570 | 155,997 | | Income Tax Expense | (4,515) | (13,070) | | Profit for the Period | 215,055 | 142,927 | | Total Comprehensive Income for the Period | 215,055 | 143,461 | | Profit Attributable to Owners of the Company | 215,055 | 143,461 | | Basic and Diluted Earnings Per Share (RMB) | 0.179 | 0.120 | Interim Condensed Consolidated Statement of Financial Position As of February 28, 2023, the Group's total assets were RMB 6,679,120 thousand, total liabilities were RMB 3,567,450 thousand, and total equity was RMB 3,111,670 thousand, with property, plant and equipment within non-current assets increasing, while cash and cash equivalents decreased Interim Condensed Consolidated Statement of Financial Position | Indicator | Feb 28, 2023 (RMB thousands) | Aug 31, 2022 (RMB thousands) | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 6,058,458 | 5,817,694 | | - Property, plant and equipment | 4,411,979 | 4,152,634 | | Current assets | 620,662 | 850,855 | | - Cash and cash equivalents | 538,352 | 803,845 | | Total Assets | 6,679,120 | 6,668,549 | | Equity | | | | Total Equity | 3,111,670 | 2,896,615 | | Liabilities | | | | Non-current liabilities | 2,275,477 | 2,400,487 | | Current liabilities | 1,291,973 | 1,371,447 | | Total Liabilities | 3,567,450 | 3,771,934 | | Total Equity and Liabilities | 6,679,120 | 6,668,549 | - Property, plant and equipment amounted to approximately RMB 4,412.0 million, an increase of approximately 10.1% compared to February 28, 2022[8] - Bank balances and cash amounted to approximately RMB 538.4 million, a decrease of approximately 3.4% compared to February 28, 2022[9] - As of February 28, 2023, the Group's current liabilities exceeded its current assets by RMB 671,311 thousand, but the Directors believe the Group has sufficient financial resources to meet future obligations[127][128] Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes on the Group's accounting policies, financial risk management, segment information, and specific financial statement line items for the interim period 1 General Information China Vocational Education Holdings Limited, incorporated in the Cayman Islands, primarily provides private higher education services in China, with its shares listed on the Main Board of the Hong Kong Stock Exchange, and the COVID-19 pandemic has not had a significant adverse impact on the Group's financial position or operating results - The Company is incorporated in the Cayman Islands and primarily provides private higher education services in China[94] - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since November 25, 2019[110] - The COVID-19 pandemic has not had any significant adverse impact on the Group's financial position or operating results[126] 2 Basis of Preparation This interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA, and on a going concern basis, as the Directors believe the Group has sufficient financial resources to meet future obligations - This interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[96] - The Directors believe that the Group will have sufficient financial resources to meet its financial obligations falling due within the next twelve months from February 28, 2023, and thus it is prepared on a going concern basis[128] 3 Accounting Policies The accounting policies applied are consistent with those of the previous financial year and the corresponding interim reporting period, with certain new and amended standards applied for the first time, which are not expected to have a significant impact on the financial statements - The accounting policies applied are consistent with those of the previous financial year and the corresponding interim reporting period, except for the income tax estimate disclosed in Note 11[98] - The Group has applied certain new and amended standards for the first time for the annual reporting period beginning September 1, 2022, which are not expected to have a significant impact on the current or future periods[114][130] 4 Estimates and Assumptions The management judgments, estimates, and assumptions made in preparing this interim financial information are the same as those applied in the 2022 financial statements - In preparing this interim financial information, management has made significant judgments in applying the Group's accounting policies and key sources of estimation. Estimates and assumptions are the same as those applied in the 2022 financial statements[116][131] 5 Financial Risk Management The Group faces market risks (foreign exchange, interest rate) and liquidity risk, with no changes in risk management policies during the reporting period, and manages liquidity through internal cash flows and bank borrowings, while estimating fair values for financial instruments - The Group's activities are exposed to various financial risks: market risk (including foreign exchange risk, cash flow interest rate risk, and fair value interest rate risk) and liquidity risk[117] - There were no changes in any risk management policies during the six months ended February 28, 2023[134] 5.1 Financial Risk Factors This interim financial information does not include all financial risk management information and disclosures required in the annual financial statements and should be read in conjunction with the 2022 financial statements - This interim financial information does not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the 2022 financial statements[151] 5.2 Liquidity Risk The Group monitors and maintains levels of cash and cash equivalents that management deems sufficient for working capital and to mitigate the impact of cash flow fluctuations - The Group monitors and maintains levels of cash and cash equivalents that management considers adequate for the Group's working capital and to mitigate the effects of fluctuations in cash flows[152] Maturity Analysis of Non-derivative Financial Liabilities (February 28, 2023) | | Less than 1 year (RMB thousands) | 1 to 2 years (RMB thousands) | 2 to 5 years (RMB thousands) | More than 5 years (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Borrowings (principal plus interest) | 414,207 | 482,488 | 1,284,041 | 802,465 | 2,983,201 | | Accrued expenses and other payables (excluding non-financial liabilities) | 344,850 | 62,180 | – | – | 407,030 | | Amounts due to related parties | 69,574 | – | – | – | 69,574 | | Total | 828,631 | 544,668 | 1,284,041 | 802,465 | 3,459,805 | 5.3 Fair Value Estimation Due to the short-term nature of the Group's financial assets and liabilities, their carrying amounts approximate their fair values, and fair values of non-current borrowings are estimated using discounted cash flow methods - Due to the short-term nature of the Group's financial assets and financial liabilities, their carrying amounts approximate their fair values[138] - The fair value of non-current borrowings is estimated using the discounted cash flow method, based on market interest rates for financial instruments with substantially similar terms and characteristics available to the Group at the respective reporting date[138] 6 Segment Information The Group primarily provides private higher education and related services in China, with all revenue derived from mainland China, and while each school constitutes an operating segment, their segment information is aggregated into a single reportable segment due to similar services, customer types, and regulatory environments - The Group primarily provides private higher education and related services in China, with all revenue derived from businesses in mainland China and from customers in mainland China[123][124] - Each school constitutes an operating segment, but due to the similarity of services provided, customer types, and regulatory environment, their segment information is aggregated into a single reportable segment[139] 7 Other Income During the reporting period, other income increased by 18.1% to RMB 17.0 million, primarily due to increases in service income, rental income, and government grants Composition of Other Income | Item | Six Months Ended Feb 28, 2023 (RMB thousands) | Six Months Ended Feb 28, 2022 (RMB thousands) | | :--- | :--- | :--- | | Service income | 8,414 | 5,807 | | Rental income | 5,562 | 5,391 | | Government grants | 1,681 | 435 | | Book sales income | 1,333 | 2,769 | | Total | 16,990 | 14,402 | - Other income was approximately RMB 17.0 million, an increase of approximately 18.1% compared to approximately RMB 14.4 million in the same period last year[225] - Government grants significantly increased from RMB 435 thousand to RMB 1,681 thousand[142] 8 Net Other Gains During the reporting period, net other gains significantly decreased to RMB 0.3 million, primarily due to higher net exchange gains in the same period last year Composition of Net Other Gains | Item | Six Months Ended Feb 28, 2023 (RMB thousands) | Six Months Ended Feb 28, 2022 (RMB thousands) | | :--- | :--- | :--- | | Fair value gains on investment properties | 100 | – | | Gains/(losses) on disposal of property, plant and equipment | 44 | (447) | | Net exchange gains | 27 | 3,404 | | Others | 126 | 516 | | Total | 297 | 3,473 | - The Group recorded other gains of approximately RMB 0.3 million, a decrease of approximately RMB 3.2 million compared to approximately RMB 3.5 million in the same period last year, mainly due to a decrease in net exchange gains[5] 9 Expenses by Nature During the reporting period, total cost of sales, selling expenses, and administrative expenses amounted to RMB 297,205 thousand, an increase of 7.4% year-on-year, with employee benefit expenses and depreciation of property, plant and equipment significantly increasing, while student status management fees and promotional expenses decreased Comparison of Expenses by Nature | Item | Six Months Ended Feb 28, 2023 (RMB thousands) | Six Months Ended Feb 28, 2022 (RMB thousands) | | :--- | :--- | :--- | | Employee benefit expenses | 120,376 | 98,546 | | Depreciation of property, plant and equipment | 67,321 | 55,909 | | Student status management fees | 17,861 | 30,746 | | Depreciation of right-of-use assets | 16,811 | 17,160 | | Property management fees | 15,321 | 14,016 | | Promotional expenses | 3,563 | 7,102 | | Total cost of sales, selling and administrative expenses | 297,205 | 276,752 | - Employee benefit expenses increased to RMB 120.4 million, reflecting higher personnel costs[143] - Student status management fees decreased to RMB 17.9 million, primarily related to the Huali College conversion agreement[143] 10 Net Finance Expenses During the reporting period, net finance expenses increased to RMB 48,556 thousand, primarily due to higher interest expenses on bank borrowings, partially offset by a decrease in capitalized interest expenses Composition of Net Finance Expenses | Item | Six Months Ended Feb 28, 2023 (RMB thousands) | Six Months Ended Feb 28, 2022 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 3,637 | 3,092 | | Interest expenses on bank borrowings | (48,710) | (47,637) | | Interest expenses on other borrowings from related parties | (9,178) | (8,625) | | Less: Interest expenses capitalized on property, plant and equipment | 8,822 | 17,344 | | Net finance expenses | (48,556) | (44,591) | - The Group recorded finance expenses of approximately RMB 52.2 million, an increase of approximately 9.4% compared to approximately RMB 47.7 million in the same period last year[32] - Interest expenses capitalized on property, plant and equipment decreased from RMB 17,344 thousand to RMB 8,822 thousand in the same period last year[159] 11 Income Tax Expense Income tax expense for the reporting period significantly decreased by 65.6% to RMB 4,515 thousand, primarily due to China's corporate income tax preferential policies and management's estimate of the annual tax rate - The Group recorded tax expenses of approximately RMB 4.5 million, a decrease of approximately 65.6% compared to approximately RMB 13.1 million in the same period last year[33] (a) Cayman Islands Profits Tax The Company and its direct subsidiaries, incorporated as exempted limited liability companies in the Cayman Islands, are exempt from income tax - The Company and its direct subsidiaries are incorporated as exempted limited liability companies in the Cayman Islands and are therefore exempt from income tax[160] (b) Hong Kong Profits Tax No provision for Hong Kong profits tax was made as the Group recorded no assessable profits in Hong Kong during the reporting period - No provision for Hong Kong profits tax has been made as the Group recorded no assessable profits in Hong Kong during the reporting period[147] (c) China Corporate Income Tax The corporate income tax rate for the Group's entities in mainland China is 25%, with certain wholly-owned subsidiaries registered in ethnic minority autonomous regions enjoying a preferential rate of 15%, and management believes income from academic education services is exempt from corporate income tax - The corporate income tax rate applicable to the Group's entities in mainland China ('China Entities') is 25%[162] - Certain wholly-owned subsidiaries of the Group registered in ethnic minority autonomous regions in China enjoy a preferential corporate income tax rate of 15%[149] - Management believes that, in accordance with relevant Chinese tax regulations, local tax authorities will not levy corporate income tax on income derived from providing academic education services[174] (d) United States of America ('US') Corporate Income Tax No provision for US corporate income tax was made as the Group recorded no assessable profits in the US during the reporting period - No provision for US corporate income tax has been made as the Group recorded no assessable profits in the US during the reporting period[175] (e) Income tax expense is recognized based on management's estimate of the weighted average actual annual income tax rate for the full financial year The estimated average annual tax rate used for the six months ended February 28, 2023, was 1.7%, a significant decrease from 7.2% for the six months ended February 28, 2022 - The estimated average annual tax rate used for the six months ended February 28, 2023, was 1.7%, a significant decrease from 7.2% for the six months ended February 28, 2022[177] Analysis of Income Tax Expense | Item | Six Months Ended Feb 28, 2023 (RMB thousands) | Six Months Ended Feb 28, 2022 (RMB thousands) | | :--- | :--- | :--- | | Current tax on profit for the period | 3,622 | 11,167 | | Deferred income tax | 114 | 7 | | Deferred withholding tax | 779 | 1,896 | | Total | 4,515 | 13,070 | 12 Earnings Per Share Basic earnings per share for the reporting period were RMB 0.179, an increase from RMB 0.120 in the same period last year, and diluted earnings per share were the same as basic earnings per share due to the absence of potential dilutive ordinary shares (a) Basic Basic earnings per share are calculated by dividing the profit attributable to owners of the Company by the weighted average number of ordinary shares outstanding - Basic earnings per share are calculated by dividing the profit attributable to owners of the Company for the six months ended February 28, 2023 and 2022 by the weighted average number of ordinary shares outstanding[166] Calculation of Basic Earnings Per Share | Indicator | Six Months Ended Feb 28, 2023 (Unaudited) | Six Months Ended Feb 28, 2022 (Unaudited) | | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB thousands) | 215,055 | 143,461 | | Weighted average number of ordinary shares in issue (thousands) | 1,200,000 | 1,200,000 | | Basic earnings per share (expressed in RMB per share) | 0.179 | 0.120 | (b) Diluted Diluted earnings per share are the same as basic earnings per share because there were no outstanding potential dilutive ordinary shares during the reporting period - Diluted earnings per share presented are the same as basic earnings per share because there were no outstanding potential dilutive ordinary shares during the six months ended February 28, 2023 and 2022[168] 13 Trade and Other Receivables As of February 28, 2023, total trade and other receivables amounted to RMB 58,647 thousand, a significant increase from August 31, 2022, primarily driven by tuition fees receivable from students and government subsidies receivable Composition of Trade and Other Receivables | Item | Feb 28, 2023 (RMB thousands) | Aug 31, 2022 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 47,369 | 13,123 | | - Tuition fees receivable from students | 29,836 | 12,951 | | - Government subsidies receivable for tuition fee waivers granted to students | 17,051 | – | | Other receivables | 11,278 | 15,589 | | Total | 58,647 | 28,712 | - Tuition fees receivable from students increased from RMB 12,951 thousand to RMB 29,836 thousand, and government subsidies receivable for tuition fee waivers granted to students newly amounted to RMB 17,051 thousand[180] - Management closely monitors the credit quality and recoverability of these receivables and believes the expected credit risk is very low[172] 14 Accrued Expenses and Other Payables and Amounts Due to Related Parties As of February 28, 2023, total accrued expenses and other payables amounted to RMB 420,739 thousand, a decrease from August 31, 2022, with notable reductions in amounts payable for Huali College conversion compensation and student status management fees Composition of Accrued Expenses and Other Payables | Item | Feb 28, 2023 (RMB thousands) | Aug 31, 2022 (RMB thousands) | | :--- | :--- | :--- | | Payables for construction and purchase of non-current assets | 247,677 | 224,472 | | Amounts payable for Huali College conversion compensation | 51,678 | 103,404 | | Student status management fees payable | 42,344 | 61,207 | | Sundry fees received from students | 11,132 | 24,623 | | Government subsidies payable to students | 8,033 | 31,740 | | Total | 420,739 | 498,115 | - Amounts payable for Huali College conversion compensation decreased from RMB 103,404 thousand to RMB 51,678 thousand[183] - Student status management fees payable decreased from RMB 61,207 thousand to RMB 42,344 thousand[183] 15 Capital Commitments As of February 28, 2023, the Group's contracted but unprovided capital commitments amounted to RMB 462,651 thousand, primarily for the construction and purchase of property, plant and equipment, a decrease from August 31, 2022 Comparison of Capital Commitments | Item | Feb 28, 2023 (RMB thousands) | Aug 31, 2022 (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for | 462,651 | 627,237 | - Contracted but not provided for capital commitments amounted to RMB 462,651 thousand, a decrease of 26.3% compared to RMB 627,237 thousand as of August 31, 2022[184] - Capital commitments are primarily for the construction and purchase of property, plant and equipment[203] Definitions This section provides definitions for key terms and abbreviations used in the report, such as 'Academic Year', 'Corporate Governance Code', and 'the Group', to ensure accurate understanding of the report's content - This section provides definitions for key terms and abbreviations used in the report, such as 'Academic Year', 'Corporate Governance Code', 'the Group', etc., to ensure readers' accurate understanding of the report's content[186][204][205][206][207][208][209][210][211][212][213][216][217] Other Information This section lists the Company's executive and independent non-executive directors and clarifies that English names for Chinese entities, laws, or government departments are translations, with Chinese names prevailing in case of discrepancy - The Company's executive directors are Mr. Zhang Zhifeng, Mr. Ye Yaming, Mr. Zhang Yude, and Mr. Zou Kang; independent non-executive directors are Ms. Zhao Lijuan MH JP, Mr. Yang Ying, and Mr. Ding Yi[215] - The English names of the China Entities (including schools), Chinese laws or regulations, and Chinese government departments mentioned in this announcement are translations of their Chinese names, and in case of any discrepancy, the Chinese names shall prevail[214]