Financial Performance - Revenue increased from RMB 873.3 million in 2023 to RMB 980.8 million in 2024, representing a growth of 12.3%[17] - Annual profit decreased from RMB 502.8 million in 2023 to RMB 438.4 million in 2024, a decline of 12.8% primarily due to increased corporate income tax expenses[17] - Core net profit for 2024 was RMB 444.5 million, down from RMB 526.7 million in 2023, a decrease of 15.6%[9] - The net profit margin for 2024 was 44.7%, down from 57.6% in 2023[12] - Profit before tax for the current year was approximately RMB 522.9 million, an increase of 4% compared to the year ended December 31, 2023[49] - The annual profit recorded was approximately RMB 438.4 million, a decrease of about 13% compared to the year ended December 31, 2023, mainly due to net losses from fair value adjustments of investment properties and increased corporate income tax expenses[51] - Gross profit rose by 10% from RMB 568.0 million for the year ended December 31, 2023, to RMB 627.2 million for the current year, driven by changes in revenue and sales costs[42] Enrollment and Educational Capacity - The number of enrolled students increased by 686 to a total of 58,340 students[16] - The Economic and Trade College's student enrollment increased from 35,543 in 2023 to 35,991 in 2024, reflecting a growth of 1.3%[35] - Long March College ranked first in the enrollment plan for private colleges in Zhejiang Province for 2024[22] - The new campus for the Economic and Trade College is expected to accommodate approximately 20,000 students, enhancing the capacity for educational services[37] - Long March College offers 38 full-time vocational programs across 11 categories, including finance, education, and healthcare[24] Assets and Equity - Current assets rose to RMB 2,208.4 million in 2024 from RMB 2,134.1 million in 2023, an increase of 3.5%[10] - Total equity increased to RMB 3,841.0 million in 2024 from RMB 3,403.1 million in 2023, reflecting a growth of 12.9%[10] - As of December 31, 2024, the net current assets were approximately RMB 1,378.9 million, a decrease of about RMB 25.3 million from RMB 1,404.2 million as of December 31, 2023[54] - Cash and cash equivalents decreased by RMB 400.0 million from RMB 1,995.9 million as of December 31, 2023, to RMB 1,596.2 million, primarily due to cash outflows from investing activities[55] Strategic Initiatives and Expansion - The company plans to build a new campus for a business college on two plots of land acquired in Zhengzhou, Henan Province, enhancing its educational service capacity[18] - The company aims to solidify its position as a leading private higher education institution in Zhejiang and Henan provinces[18] - The group achieved satisfactory operating performance in the fiscal year 2024 and plans to continue expanding its business scale through both organic growth and mergers and acquisitions[19] - The company plans to acquire or invest in underutilized private schools in Central, East, and South China, targeting significant growth potential[38] - The company is exploring the establishment or acquisition of new overseas schools to expand its educational network[39] Compliance and Governance - The group strictly complied with relevant laws, regulations, and environmental policies in China during the fiscal year 2024[93] - The independent directors highlighted the importance of compliance and governance, ensuring adherence to regulatory standards[76] - The group has established compliance mechanisms to ensure adherence to regulations and policies[93] - The board will review the overall performance and compliance of structured contracts at least once a year and disclose this information in annual and interim reports[168] Employee and Management - As of December 31, 2024, the group had 2,419 employees, with total employee benefits expenditure (excluding director remuneration) amounting to RMB 299.7 million[61] - The company has a strong management team with extensive experience in the education sector, including key personnel with over 27 years of experience[86] - The remuneration policy for directors and senior management is designed to attract and retain talent, with compensation reviewed against comparable companies[120] - The company has adopted an employee stock option plan to recognize and incentivize employee contributions[97] Market and Competitive Landscape - The group operates the largest private higher education institution in Zhejiang Province and is a leading institution in Henan Province, with a focus on high employment rates for graduates[21] - The group benefits from favorable government policies supporting vocational education in China, which is expected to continue driving demand[21] - The company faces risks related to market recognition, competition in the education sector, and the ability to maintain tuition and accommodation fee levels[99] Financial Management and Shareholder Information - The company has no bank borrowings as of December 31, 2024, and confirmed no difficulties in obtaining bank loans or any defaults on repayments[56] - The company did not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[106] - As of December 31, 2024, the company has approximately RMB 2,303.3 million available for distribution to shareholders[105] - The company has confirmed that all independent non-executive directors are independent as of December 31, 2024, in accordance with Listing Rule 3.13[117] Regulatory Environment - The foreign investment law effective from January 1, 2020, serves as the legal basis for foreign investment in China, replacing previous laws[161] - The 2021 implementation regulations issued by the State Council may significantly impact private schools, promoting their development and ensuring they enjoy relevant rights and preferential policies[163] - Non-profit private schools are entitled to the same tax benefits as public schools under the new regulations[164] - The group is committed to meeting qualification requirements for foreign investment and has adopted specific plans to achieve this[159] Share Option Plan - The total number of shares available for issuance under the share option scheme is 160,000,000, which is approximately 10% of the issued shares[190] - The share option plan aims to incentivize eligible participants to enhance their contributions to the company[191] - The stock option plan is valid for 10 years from the date it becomes unconditional, with a remaining term of 4 years and 1 month as of December 31, 2024[198][199] - No share options have been granted under the share option plan as of the report date[193]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 980,841,000, an increase of RMB 107,496,000 or 12% compared to RMB 873,345,000 in 2023[2] - Gross profit for the same period was RMB 627,225,000, reflecting a rise of RMB 59,256,000 or 10% from RMB 567,969,000 in the previous year[4] - Annual profit decreased to RMB 438,436,000, down by RMB 64,375,000 or 13% from RMB 502,811,000 in 2023[4] - Profit attributable to owners of the company was RMB 312,822,000, a decline of RMB 75,374,000 or 19% compared to RMB 388,196,000 in the prior year[5] - Core net profit was RMB 444,507,000, down by RMB 82,230,000 or 16% from RMB 526,737,000 in 2023[2] - Basic and diluted earnings per share for the year were RMB 19.54, down from RMB 24.25 in the previous year[5] - Total tax expenses for 2024 amount to RMB 84.51 million, significantly higher than RMB 1.52 million in 2023, indicating a substantial increase[7] - Core net profit decreased from RMB 526.7 million in 2023 to RMB 444.5 million in 2024, reflecting a decline of approximately 15.6%[55] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 3,841,000,000, an increase from RMB 3,403,095,000 in 2023[7] - Non-current assets totaled RMB 2,497,862,000, up from RMB 2,029,589,000 in the previous year[6] - Current liabilities increased to RMB 829,475,000 from RMB 729,945,000 in 2023[6] - The total contract liabilities at year-end 2024 were RMB 528,383,000, compared to RMB 521,624,000 in 2023, indicating a slight increase of 1.5%[19] - The total amount of other payables and accrued expenses increased to RMB 209.91 million in 2024 from RMB 201.71 million in 2023, showing a rise of 4.1%[25] Revenue Sources - Tuition revenue increased to RMB 894,298,000 in 2024 from RMB 794,061,000 in 2023, representing a growth of 12.6%[16] - Total customer contract revenue reached RMB 980,841,000 in 2024, up from RMB 873,345,000 in 2023, marking an increase of 12.3%[16] - The average tuition fee for the Economic and Trade College increased from RMB 14,885 in 2023 to RMB 15,994 in 2024, representing a growth of approximately 7.4%[40] - Total student enrollment increased from 57,654 in 2023 to 58,340 in 2024, reflecting a growth of about 1.2%[39] Operational Developments - The company continues to focus on providing higher education services in China, with plans for market expansion and new product development[8] - The company has acquired land use rights for two plots in Zhengzhou, Henan Province, to build a new campus for its economic and trade college, aligning with its expansion strategy[26] - The company plans to expand its school network in China and overseas, including the construction of a new campus in Zhengzhou, Henan, with an estimated capacity of approximately 20,000 students[41] - The company intends to acquire or invest in underutilized schools in China, particularly in Central, Eastern, and Southern regions[41] - The company has established nine research institutes and centers, enhancing its educational offerings and research capabilities[28] - The company operates ten on-campus training bases and 169 experimental training rooms, supporting its vocational education initiatives[29] Employee and Operational Costs - Employee benefits expenses, excluding director remuneration, rose to RMB 299,704,000 in 2024 from RMB 251,342,000 in 2023, reflecting a 19.2% increase[20] - Operating expenses increased, with administrative expenses rising by RMB 21.0 million to RMB 128.3 million, primarily due to higher employee costs[48] - The total employee benefits expenditure for the year, excluding directors' remuneration, was approximately RMB 299.7 million, with the number of employees increasing from 2,313 to 2,419[63] Strategic Partnerships and Rankings - Changzheng College has established partnerships with 375 industry associations and enterprises to create off-campus internship training bases[31] - The company ranks first in the enrollment plan for private colleges in Zhejiang Province for 2024, indicating strong demand for its educational services[27] - Zhengzhou Economic and Trade College ranks sixth in the enrollment plan for private undergraduate colleges in Henan Province for 2024[32] Financial Management and Governance - The group has no significant reliance on any single customer, with no customer contributing 10% or more to total revenue in 2023[15] - The group had no bank borrowings as of December 31, 2024, and confirmed no difficulties in obtaining bank loans or any defaults on repayments[58] - The group has no contingent liabilities, guarantees, or significant litigation as of December 31, 2024[59] - The group has not declared a final dividend for the year ending December 31, 2024[68] - The audit committee, consisting of three independent non-executive directors, reviewed the group's annual financial performance and internal controls[70] Future Outlook - The company is exploring opportunities to acquire suitable overseas target schools[42] - The remaining net proceeds of approximately RMB 415 million are now allocated for the construction and development of a new campus in Zhengzhou, Henan Province, expected to be completed by December 31, 2025[73]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 517,419 thousand, representing a 17% increase from RMB 441,055 thousand in the same period of 2023[11]. - Gross profit increased to RMB 347,238 thousand, up 18% from RMB 294,801 thousand year-over-year[11]. - Operating profit before tax rose by 25% to RMB 341,204 thousand compared to RMB 272,989 thousand in the previous year[11]. - The company reported a net profit of RMB 340,998 thousand, reflecting a 25% increase from RMB 272,163 thousand year-over-year[11]. - Profit before tax increased to RMB 341,204,000, a rise of 25.0% from RMB 272,989,000 in the previous year[77]. - Net profit for the period was RMB 340,998,000, compared to RMB 272,163,000 in the prior year, reflecting a growth of 25.3%[77]. - Core net profit for the six months ended June 30, 2024, was RMB 343.725 million, up from RMB 274.194 million in 2023, representing a growth of approximately 25.4%[41]. - The profit attributable to the owners of the company increased by approximately 26% to RMB 267.5 million[40]. - Basic and diluted earnings per share for the period were RMB 16.71, up from RMB 13.22 in the same period last year[78]. Assets and Liabilities - Net current assets increased by 21% to RMB 1,705,075 thousand from RMB 1,404,155 thousand[12]. - Total equity grew by 10% to RMB 3,745,630 thousand from RMB 3,403,095 thousand[12]. - Current liabilities decreased significantly by 74% to RMB 189,875 thousand from RMB 729,945 thousand[12]. - Total liabilities decreased significantly, with current liabilities dropping to RMB 189,875,000 from RMB 729,945,000, a reduction of approximately 74%[80]. - The net assets of the company increased to RMB 3,745,630,000 from RMB 3,403,095,000, marking an increase of around 10.1%[81]. - Cash and cash equivalents decreased by RMB 271.1 million to RMB 1,724.8 million as of June 30, 2024, primarily due to net cash outflow from operating activities of approximately RMB 143.8 million[44]. - The company had no bank loans or other borrowings as of June 30, 2024, resulting in a debt-to-asset ratio of 0%[45]. Educational Operations - The company operates the largest private higher education institution in Zhejiang Province and is a leading institution in Henan Province, focusing on both higher and secondary education services[16]. - Longzheng College has a recruitment plan for 2023 that ranks first in the private college recruitment plan in Zhejiang Province[16]. - Longzheng College offers 38 full-time vocational programs across 11 categories, including finance, education, and healthcare[16]. - The college has established 10 on-campus training bases and 169 experimental training rooms, with several recognized as provincial and national demonstration training bases[18]. - The company collaborates with 375 industry associations and enterprises to enhance student training and employment opportunities[18]. - Longzheng College is a pilot unit for the "Chinese Characteristic Apprenticeship System" and has developed 27 vocational skill standards for small and micro enterprises[18]. - The college has been recognized for its high-level professional groups, including the "Cross-Border E-Commerce Professional Group" and several provincial-level advantageous and characteristic programs[17]. - Zhengzhou Economic and Trade College ranked fifth in Henan Province for private undergraduate enrollment plans in 2023, with a total of 35,722 students as of June 30, 2024, up from 32,677 in 2023, representing a growth of approximately 6.3%[24]. - The college has established partnerships with over 200 enterprises to create high-quality off-campus internship bases, enhancing practical training opportunities for students[20]. Financial Management and Investments - The company plans to acquire or invest in underutilized higher education institutions in Central, Eastern, and Southern China[28]. - The financing cost for the period was RMB 13,000, compared to RMB 4,000 in the previous period[36]. - The company has created multiple technical service platforms, including the Zhejiang Small and Micro Enterprise Credit Research Center and the Zhejiang Small and Micro Enterprise Risk Prevention Consultation and Service Center[18]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[60]. - The company plans to allocate 50% of the IPO proceeds (approximately RMB 231 million) for acquiring other schools to expand its school network by December 31, 2025[60]. - 40% of the IPO proceeds (approximately RMB 184 million) will be used for expanding the business, including establishing new campuses for the Economic and Trade Academy and the Long March Academy by December 31, 2025[60]. Regulatory and Compliance - The implementation of the 2021 Regulations on the Promotion of Private Education in China allows private schools to enjoy tax benefits similar to public schools, particularly for non-profit institutions[53]. - For profit-making private schools, at least 10% of audited annual net income must be allocated to a development fund for the school's development[53]. - The company operates private higher education and high school education businesses in China through structured contracts due to legal restrictions on foreign investment in the private education sector[54]. - The company has not faced any regulatory intervention regarding the adoption of structured contracts to consolidate the financial performance of its subsidiaries[54]. - The company has implemented specific measures to comply with qualification requirements for establishing Sino-foreign joint schools, although detailed guidelines are not yet published[55]. Employee and Management Information - Employee benefits expenses for the six months ended June 30, 2024, totaled approximately RMB 135.8 million, reflecting the company's commitment to maintaining good employee relations[50]. - Approximately 98.8% of teachers at Zhengzhou Economic and Trade College hold a bachelor's degree or higher, with about 73.1% possessing a master's degree or above, ensuring high teaching quality[22]. - The company reported a significant increase in management compensation, totaling RMB 12,442,000 for the six months ended June 30, 2024, compared to RMB 6,984,000 for the same period in 2023, marking an increase of about 78.5%[117]. Miscellaneous - The company has no significant contingent liabilities or major lawsuits as of June 30, 2024[47]. - There were no major investments or asset acquisitions or disposals during the reporting period[51]. - The company has no foreign exchange hedging policies in place but continues to monitor foreign exchange risks[48]. - No significant events occurred after June 30, 2024, that would materially impact the company's operations and financial performance[52].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 517,419,000, an increase of RMB 76,364,000 or 17% compared to RMB 441,055,000 for the same period in 2023[1] - Gross profit for the same period was RMB 347,238,000, reflecting an increase of RMB 52,437,000 or 18% from RMB 294,801,000 in 2023[1] - The company's profit for the period was RMB 340,998,000, which is an increase of RMB 68,835,000 or 25% compared to RMB 272,163,000 in the previous year[1] - Core net profit was reported at RMB 343,725,000, up by RMB 69,531,000 or 25% from RMB 274,194,000 in 2023[1] - Basic and diluted earnings per share for the period were RMB 16.71, compared to RMB 13.22 for the same period in 2023[4] - The group's profit before tax for the six months ended June 30, 2024, was RMB 267,523,000, compared to RMB 211,648,000 for the same period in 2023, representing a year-on-year increase of approximately 26.4%[21] - The basic and diluted earnings per share for the six months ended June 30, 2024, were RMB 0.1671, compared to RMB 0.1322 for the same period in 2023, marking an increase of approximately 26.5%[21] - The total tax expense for the six months ended June 30, 2024, was RMB 206,000, down from RMB 826,000 in the same period of 2023, representing a decrease of approximately 75.0%[19] - The company's profit before tax increased by 25% to approximately RMB 341.2 million for the period[47] - Net profit attributable to the company's owners grew by approximately 26% to RMB 267.5 million for the six months ended June 30, 2024[47] Revenue Sources - Tuition fees contributed RMB 470,100,000, up from RMB 397,010,000, reflecting a growth of 18.4% year-over-year[14] - Other educational service fees amounted to RMB 11,438,000, representing a 13.1% increase from RMB 10,111,000 in the previous year[14] - Interest income increased to RMB 26,090,000, compared to RMB 23,238,000, marking an increase of 12.0%[14] - Total other income and gains were RMB 40,167,000, slightly up from RMB 39,389,000, indicating a growth of 2.0%[14] - The group has no revenue from any single customer accounting for 10% or more of total revenue during the reporting period[13] Assets and Liabilities - Non-current assets totaled RMB 2,081,700,000 as of June 30, 2024, compared to RMB 2,029,589,000 at the end of 2023[5] - Current assets decreased to RMB 1,894,950,000 from RMB 2,134,100,000 at the end of 2023[5] - Total liabilities decreased significantly, with current liabilities at RMB 189,875,000 compared to RMB 729,945,000 at the end of 2023[5] - The company's total equity increased to RMB 3,745,630,000 as of June 30, 2024, from RMB 3,403,095,000 at the end of 2023[6] - The net value of current assets increased by approximately RMB 300.9 million to RMB 1,705.1 million as of June 30, 2024[48] - The company has no bank loans or other borrowings, resulting in a zero debt-to-asset ratio as of June 30, 2024[50] Employee and Operational Costs - Employee benefit expenses (excluding directors' remuneration) increased to RMB 135,775,000 for the six months ended June 30, 2024, from RMB 106,898,000 in the same period of 2023, reflecting a growth of about 27.0%[16] - The depreciation of property, plant, and equipment was RMB 32,453,000 for the six months ended June 30, 2024, compared to RMB 30,668,000 for the same period in 2023, indicating an increase of approximately 5.8%[16] - Employee benefits expenses for the six months ended June 30, 2024, amounted to approximately RMB 135.8 million, excluding director remuneration[55] Strategic Initiatives and Future Plans - The company continues to focus on providing higher education services in China, indicating potential for future growth in this sector[7] - The company plans to establish a degree-granting higher education institution in California, focusing on business administration and international business courses[40] - The company plans to acquire or invest in underutilized higher education institutions in China with significant development potential[39] - The college plans to establish a new campus in Kaifeng, Henan Province, with an estimated capacity of approximately 15,000 students, and aims to set up a new Changzheng College campus with a total enrollment of no less than 5,000 students[38] - The company has completed the registration of Lean Middle School as a for-profit private school, which will be subject to a corporate income tax rate of 25% starting from 2023[18] Educational Services and Collaborations - The group operates solely in China, with all revenue generated and long-term assets located within the country[12] - The college offers 38 full-time vocational programs across 11 categories, including finance, commerce, and healthcare, with several programs recognized as provincial-level specialties[26] - Changzheng College has established 10 on-campus training bases and 169 experimental training rooms, enhancing practical training opportunities for students[27] - The college collaborates with 375 industry associations and enterprises to establish off-campus internship training bases, promoting industry-academia integration[28] - The college has established partnerships with over 200 enterprises to create high-quality off-campus internship bases, enhancing the practical training of students[31] Governance and Compliance - The company has adopted all provisions of the Corporate Governance Code, with a noted exception regarding the separation of the roles of Chairman and CEO[58] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ended June 30, 2024[62] Market Position and Growth Potential - The company operates as the largest private higher education institution in Zhejiang Province and a leading institution in Henan Province, benefiting from favorable government policies supporting vocational education[24] - The company anticipates continued growth in demand for higher education in Henan Province, where the enrollment rate is below the national average, indicating a strong market opportunity[24] - Zhengzhou Economic and Trade College ranked fifth in the enrollment plan among private undergraduate colleges in Henan Province for 2023, with a total of 35,722 students as of June 30, 2024, up from 32,677 in 2023, representing an increase of approximately 6.3%[36] - Approximately 98.8% of the college's teachers hold a bachelor's degree or above, and about 73.1% possess a master's degree or higher, indicating a strong emphasis on faculty quality[34] Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2024, amounted to RMB 84.9 million, significantly up from RMB 21.4 million in the same period last year[51] - The net proceeds from the IPO were approximately HKD 524 million (equivalent to about RMB 461 million), with 50% allocated for acquiring other schools to expand the school network[64] - 40% of the IPO proceeds are designated for business expansion, including establishing new campuses for the Economic and Trade Institute and Changzheng Institute[64] - 10% of the IPO proceeds, amounting to RMB 46 million, has been allocated for working capital and general corporate purposes[64] Other Notable Information - The group has no supplier financing arrangements, thus the recent accounting standard revisions had no impact on the interim financial data[10] - The group has not recognized any tax provision for the income generated from educational services provided by Zhengzhou Economic Trade College and Changzheng College during the reporting period[18] - The company has not engaged in any significant investments, acquisitions, or asset sales during the reporting period[56] - No significant events occurred after June 30, 2024, that would materially impact the group's operations and financial performance[57]

Financial Performance - The company's profit attributable to owners for the year was approximately RMB 388.2 million, representing a 6% increase compared to the previous year[7] - The company's total profit for the year was approximately RMB 502.8 million, a 6% increase compared to the previous year[16] - The company's financing costs decreased from RMB 0.6 million in the previous year to RMB 18,000 this year, primarily due to the maturity of short-term bank loans[12] - The company had no bank loans or other borrowings as of December 31, 2023, making the debt-to-equity ratio not applicable[161] - The company had no significant investments, acquisitions, or disposals of assets during the year[174] Expansion and Investment Plans - The company plans to acquire or invest in schools in China with relatively low utilization rates and/or significant development potential, focusing on regions such as Central China, East China, and South China[11] - The company is also exploring opportunities to acquire suitable target schools overseas[15] - The company plans to invest additional resources in teacher recruitment and retention to improve the student-to-teacher ratio, which currently does not meet the regulatory requirement of 1:18[175] - The company entered into an agreement in January 2024 to purchase office space and parking spaces in Hangzhou for a total cash consideration of approximately RMB 52.5 million, primarily for self-use[181] Employee and Training Statistics - The company's two main colleges employed a total of 2,219 full-time and part-time employees as of December 31, 2023, with a male-to-female ratio of 0.5:1[44] - The company's employee distribution by region shows 61% in Henan Province, 24% in Zhejiang Province, and 15% in other provinces of China[45] - Employee turnover rate for the company remained stable at 6% in 2023, consistent with the previous year[61] - The company trained 1,017 employees in 2023, representing 54% of total employees, with an average training duration of 33 hours per employee[74] - Female employees accounted for 68% of the total trained employees, while male employees accounted for 32%[65] - Non-management employees received an average of 18 hours of training, mid-level management received 23 hours, and leadership received 39 hours[67] - The company's training programs focused on teaching skills, subject matter, and cultural development, with 85% of trainees being non-management staff[74][78] - The company's training programs included both internal and external courses, with a focus on keeping teachers updated on industry changes and new teaching methods[54] - The company employed 2,313 employees as of December 31, 2023, an increase from 2,240 employees in the previous year, with total employee benefits expenses (excluding director remuneration) amounting to approximately RMB 251.3 million[162] Corporate Governance and Compliance - The company maintained a strong focus on intellectual property protection, complying with relevant Chinese laws and regulations[89] - The company has not received any cases involving violations of labor laws in China during the reporting period[96] - The company has not received any complaints or major cases involving the leakage of personal information of students and parents during the reporting period[117] - The company has not received any complaints related to the quality of school teaching during the reporting period[106] - The company has not received any reports of corruption or other significant misconduct by its employees during the reporting period[111] - The company has a举报政策 (whistleblower policy) in place to encourage employees to report any misconduct without fear of retaliation[104] - The company provided a total of 3 mandatory training courses for directors and staff, with a combined participation of 764 hours, to enhance their understanding of relevant rules and regulations[130] - 847 employees (99.5%) and 4 directors (0.5%) participated in anti-corruption training[132] - 233 staff members (96.3%) and 9 directors (3.7%) participated in anti-corruption training[134] Environmental and Social Responsibility - The company is implementing a paperless office initiative, aiming to reduce paper waste by 20% within one year[22] - The company implemented strict green procurement policies, adhering to national standards for energy-saving and environmentally friendly products[55] - The company's employee volunteer hours accumulated to 2,260 hours during the reporting period, a significant increase from 424 hours in 2022[114] Shareholder and Equity Information - The maximum number of shares that can be issued under the share option plan is 160,000,000 shares, representing approximately 10% of the company's issued share capital as of the report date[100] - The company's directors hold significant equity stakes, with Chen Yuguo holding 378,000,000 shares (23.61%), Chen Shu holding 216,000,000 shares (13.49%), and Chen Lingfeng holding 216,000,000 shares (13.49%)[151] - Chen Yuguo holds a 31.50% equity stake in Jia Hong Holdings Group with a registered capital of RMB 15,750,000[156] - Chen Shu holds an 18.00% equity stake in Jia Hong Holdings Group with a registered capital of RMB 9,000,000[156] - Chen Lingfeng holds an 18.00% equity stake in Jia Hong Holdings Group with a registered capital of RMB 9,000,000[156] - Chen Yuguo holds a 45.00% equity stake in Jingyi Middle School with a registered capital of RMB 450,000[156] - Chen Yuchun holds a 15.00% equity stake in Jingyi Middle School with a registered capital of RMB 150,000[156] - The company's share option plan allows for the issuance of up to 160,000,000 shares, representing approximately 10% of the issued shares as of the report date[172] Educational Programs and Partnerships - The company's graduate employment rate for the 2022/2023 academic year was approximately 98.35%[2] - The company has established partnerships with 375 enterprises, institutions, and associations, including Alibaba and Geely Holding Group, to create off-campus internship and training bases[2] - The company has established eight applied technology majors, including air service, investment, e-commerce, international economics and trade, accounting, and English, through its校企合作计划 (school-enterprise cooperation program)[105] - The company has introduced over 20 applied technology courses through its校企合作计划 (school-enterprise cooperation program), including VBSE financial comprehensive training, ERP financial comprehensive training, and securities trading practice simulation[105] Infrastructure and Regulatory Compliance - The company's student-to-teacher ratio at Changzheng College and Jingmao College did not fully meet the regulatory requirements during the year[175] - The company's per-student teaching and administrative building area at Changzheng College and Jingmao College was 4.7 square meters and 5.1 square meters, respectively, as of December 31, 2023[182] - The company's per-student land area at Changzheng College and Jingmao College was 16.2 square meters and 14.4 square meters, respectively, as of December 31, 2023[182] - The company's Changzheng College and Jingmao College did not fully meet the regulatory requirements for per-student teaching and administrative building area and per-student land area during the year[180] Supply Chain and Procurement - The company collaborated with 146 suppliers in 2023, down from 151 in 2022, with 78% located in Zhejiang Province, China[70][85] - The company's supply chain management emphasized supplier reputation and after-sales service to ensure consistency in materials and services[55] Board and Management Information - Chen Lingfeng, aged 35, joined the group in November 2015 and was appointed as an executive director on November 3, 2018. He is responsible for admissions, recruitment, and school logistics management[191] - Zhang Xuli, aged 57, was appointed as a non-executive director on November 3, 2018. She holds multiple qualifications including a clinical nursing certificate, a law degree, and an MBA[193][194] - Feng Nanshan, aged 47, was appointed as an independent non-executive director on November 3, 2018. He is a certified public accountant in Hong Kong and a practicing accountant in Australia[196][199] Asset and Liability Information - The company has no asset mortgages as of December 31, 2023, and December 31, 2022[160]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 873,345 thousand, an increase of 7% from RMB 819,358 thousand in 2022[18] - Gross profit for the same period was RMB 567,969 thousand, reflecting a 10% increase from RMB 514,084 thousand in the previous year[18] - Net profit for the year was RMB 502,811 thousand, up 6% from RMB 472,942 thousand in 2022[18] - Core net profit, as defined, was RMB 526,737 thousand, representing a 10% increase from RMB 478,393 thousand in the prior year[18] - The total comprehensive income for the year was RMB 504,505 thousand, compared to RMB 483,794 thousand in 2022[21] - The company reported a basic and diluted earnings per share of RMB 0.2425, compared to RMB 0.2291 in the previous year[34] - The company reported a profit attributable to ordinary shareholders of RMB 388,196,000 for 2023, an increase of 5.1% from RMB 366,727,000 in 2022[99] - The group recorded a profit of approximately RMB 502.8 million for the year, representing a growth of about 6% compared to the year ended December 31, 2022[147] - The pre-tax profit for the year was approximately RMB 504.3 million, an increase of 6% compared to the previous year[169] Assets and Liquidity - Cash and cash equivalents increased to RMB 1,995,904 thousand from RMB 1,500,901 thousand, indicating strong liquidity[23] - Non-current assets totaled RMB 2,029,589 thousand, slightly up from RMB 2,007,606 thousand in the previous year[23] - Current assets rose to RMB 2,134,100 thousand from RMB 1,518,779 thousand, showing significant growth in short-term resources[23] - Total equity increased to RMB 3,403,095 thousand from RMB 2,920,192 thousand, reflecting a significant growth in shareholder value[37] - The company has no bank loans or other borrowings, resulting in an asset-liability ratio not applicable as of December 31, 2023[190] Revenue Sources - Tuition fees contributed RMB 794,061,000 in 2023, up from RMB 736,596,000 in 2022, reflecting a growth of 7.8%[79] - Other income and revenue totaled RMB 83,966,000 in 2023, a significant increase of 47.0% compared to RMB 57,120,000 in 2022[79] - Bank interest income rose to RMB 51,659,000 in 2023, up from RMB 32,623,000 in 2022, marking an increase of 58.5%[79] - The group received government subsidies totaling RMB 13,921,000 in 2023, compared to RMB 11,920,000 in 2022, reflecting a growth of 16.8%[79] Employee and Operational Costs - Employee benefits expenses (excluding directors' remuneration) totaled RMB 251,342,000 in 2023, up 22.7% from RMB 204,683,000 in 2022[5] - Administrative expenses grew from RMB 70.1 million in 2022 to RMB 107.3 million in 2023, an increase of about 53.0%, largely due to rising employee costs[144] - The cost of sales for the year was approximately RMB 305.4 million, similar to RMB 305.3 million in the previous year, with significant increases in employee costs and other expenses[57] Student Enrollment and Employment - Total student enrollment increased from 53,051 in 2022 to 57,654 in 2023, representing a growth of approximately 8.3%[115] - The initial employment rate for graduates from Changzheng College was approximately 98.35% for the 2022/2023 academic year, indicating strong job placement success[63] - The initial employment rate for graduates from the Economic and Trade College was approximately 87.05%, with an employment rate of about 96.33% as of the year-end[156] Strategic Initiatives and Future Plans - The group established partnerships with 375 enterprises and organizations to create off-campus internship training bases, enhancing practical training opportunities for students[43] - The company plans to expand its enrollment in the Zhengzhou Economic and Trade College, which ranked fifth in the private undergraduate college enrollment plan in Henan Province for 2023[111] - The company intends to acquire or invest in underutilized schools in Central, Eastern, and Southern China, targeting profitable private institutions[139] - A new degree-granting institution, California School, is planned to be established in California, focusing on business administration and international business courses[140] - The group plans to establish a new campus for Changzheng College, with an expected total enrollment of no less than 5,000 students[161] Regulatory and Compliance - The company has adopted new and revised International Financial Reporting Standards for the current financial year[10] - The group has implemented a series of favorable policies from the Chinese government to support and encourage vocational education development[52] - The group has not been affected by the implementation of the OECD's Pillar Two legislation, as it does not fall within its scope[75] Dividends and Financing - The group has not recommended the declaration of a final dividend for the year ended December 31, 2023, compared to a dividend of 1.5 HK cents in the previous year[61] - The company's financing costs and dividend analysis are under review, with specific figures not disclosed in the provided content[98] - The company plans to use 50% of the net proceeds from the global offering, amounting to RMB 231 million, for acquiring other schools to expand its school network[200] - 40% of the net proceeds, or RMB 184 million, will be allocated for business expansion, including establishing new campuses for the Economic and Trade Academy and Changzheng Academy[200] - The remaining 10% of the net proceeds, totaling RMB 46 million, is designated for working capital and general corporate purposes[200] Teaching Staff Quality - Approximately 99.2% of the teachers hold a bachelor's degree or above, with about 73.2% holding a master's degree or higher, reflecting the quality of the teaching staff[55]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 441,055,000, representing a 14% increase from RMB 385,545,000 in 2022[29] - Gross profit increased by 18% to RMB 294,801,000 compared to RMB 249,188,000 in the previous year[29] - Other income and gains rose significantly by 76% to RMB 39,389,000 from RMB 22,326,000[29] - The net profit attributable to the company's owners for the six months ended June 30, 2023, was approximately RMB 211.6 million, an increase of about 8% compared to the same period in 2022[76] - The group achieved a pre-tax profit of approximately RMB 273.0 million, which is a 10% increase from the previous period[75] - The group recorded a profit of approximately RMB 272.2 million for the period, representing a growth of about 10% compared to RMB 247.6 million for the six months ended June 30, 2022[98] - Total comprehensive income for the period was RMB 275,707,000, up from RMB 252,973,000, reflecting a growth of 9.0% year-over-year[183] - The basic and diluted earnings per share for the period were RMB 13.22, compared to RMB 12.27 in the previous year, representing an increase of 7.8%[183] Expenses and Costs - Administrative expenses increased by 58% to RMB 30,913,000, up from RMB 19,574,000[29] - Sales costs increased from RMB 136.4 million for the six months ended June 30, 2022, to RMB 146.3 million, primarily due to rising employee costs and depreciation[93] - Employee benefits expenses for the six months ended June 30, 2023, totaled approximately RMB 106.9 million, excluding director remuneration[85] - Other income and expenses related to sales and distribution decreased from RMB 2.6 million to RMB 2.1 million during the same period[94] - Income tax expenses decreased from RMB 1.4 million to RMB 0.8 million, mainly due to prior period adjustments[97] Assets and Liabilities - The company's total assets as of June 30, 2023, were RMB 3,209,389,000, an increase from RMB 2,947,674,000 at the end of 2022[159] - Current liabilities decreased significantly to RMB 142,784,000 from RMB 578,711,000, showing a reduction of approximately 75.3%[159] - The company's cash and cash equivalents stood at RMB 1,302,824,000, down from RMB 1,500,901,000, indicating a decrease of about 13.1%[159] - Net assets rose to RMB 3,174,297,000, up from RMB 2,920,192,000, indicating a growth of 8.7%[186] - Non-current liabilities increased to RMB 35,092,000 from RMB 27,482,000, marking a rise of 27.5%[186] Educational Operations and Growth - The company operates major educational institutions in Zhejiang and Henan provinces, benefiting from the growing demand for higher education in these regions[20] - The company has established partnerships with over 200 enterprises to create high-quality off-campus internship bases[26] - The company is recognized as the largest private higher education institution in Zhejiang province and a leading institution in Henan province[31] - Recent favorable policies from the Chinese government are expected to continue benefiting the company in the vocational education sector[32] - The company plans to establish a new campus for Changzheng College, with an expected enrollment of no less than 5,000 students[48] - The group plans to establish a new campus for the Business School in Kaifeng, Henan Province, with an estimated capacity of about 15,000 students[67] - The company aims to acquire or invest in underutilized higher education institutions in Central, Eastern, and Southern China that are transitioning to for-profit private schools[67] Corporate Governance and Compliance - The company is committed to adhering to corporate governance best practices, with the chairman and CEO roles held by the same individual to ensure consistency in leadership[112] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[115] - The company complies with corporate governance codes, ensuring clear separation of roles between the chairman and the CEO[134] - The company has confirmed compliance with the standards of conduct for securities trading as outlined in the listing rules[113] Shareholder Information - Guo's Investment Holdings Limited holds 378,000,000 shares, representing 23.61% of the total shares[125] - Shu's Investment Holdings Limited owns 216,000,000 shares, accounting for 13.49% of the total shares[125] - Chun's Investment Holdings Limited has 120,000,000 shares, which is 7.50% of the total shares[125] - Cao's Investment Holdings Limited possesses 90,000,000 shares, equating to 5.62% of the total shares[125] - The net proceeds from the company's initial public offering amounted to approximately HKD 524 million (equivalent to RMB 461 million)[138] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[137] - The company has a stock option plan approved by shareholders, with 160,000,000 options available for grant as of June 30, 2023[152] Future Strategies - The company is exploring strategies to optimize pricing to improve profitability[49] - The company has introduced multiple professional programs, including nine brand majors recognized at the provincial level[39] - The company aims to enhance its position as the largest private higher education institution in Zhejiang Province and expand its school network in China and overseas[48]

Financial Performance - Revenue increased by 14% from RMB 385.5 million to RMB 441.1 million due to an increase in student enrollment[21] - Gross profit rose by 18% from RMB 249.2 million to RMB 294.8 million, consistent with revenue growth[24] - Profit before tax increased by approximately 10% to RMB 273.0 million compared to the previous period[11] - Net profit attributable to the company's owners grew by about 8% to RMB 211.6 million[15] - Total revenue for the six months ended June 30, 2023, was RMB 441,055 thousand, representing a 14% increase from RMB 385,545 thousand in the same period of 2022[41] - Gross profit for the same period was RMB 294,801 thousand, an 18% increase from RMB 249,188 thousand year-over-year[41] - The period profit was RMB 272,163 thousand, reflecting a 10% increase from RMB 247,575 thousand in the prior year[41] - Core net profit for the six months ended June 30, 2023, was RMB 274,194 thousand, also a 10% increase from RMB 249,594 thousand in the previous year[41] - The basic and diluted earnings per share for the period profit was RMB 13.22, compared to RMB 12.27 in the previous year[45] - Core net profit for the period was RMB 272,163,000, compared to RMB 247,575,000 in the previous year, reflecting a growth of 9.9%[52] - Other income and gains increased to RMB 39,389,000 from RMB 22,326,000, marking a significant rise of 76.7%[52] - The total tax expense for the period was RMB 826,000, a decrease from RMB 1,357,000 in the previous year[121] Expenses and Costs - Administrative expenses increased by RMB 11.3 million to RMB 30.9 million, primarily due to rising employee costs and depreciation[3] - Other expenses surged from RMB 0.4 million to RMB 28.1 million, mainly due to costs associated with transforming Lean School into a for-profit institution[9] - Employee benefit expenses (excluding directors' remuneration) increased to RMB 106,898,000 in 2023 from RMB 91,644,000 in 2022, reflecting a rise of approximately 16.6%[116] - The cost of services provided increased to RMB 146,254,000 in 2023 from RMB 136,357,000 in 2022, marking an increase of approximately 7.3%[116] Assets and Liabilities - As of June 30, 2023, the net current assets amounted to approximately RMB 1,220.0 million, an increase of about RMB 279.9 million compared to RMB 940.1 million on December 31, 2022[30] - Cash and cash equivalents decreased to RMB 1,302.8 million as of June 30, 2023, down RMB 198.1 million from RMB 1,500.9 million on December 31, 2022, primarily due to a net cash outflow of RMB 127.0 million from operating activities[31] - Total assets as of June 30, 2023, were RMB 3,174,297,000, up from RMB 2,920,192,000 as of December 31, 2022[58] - The total current liabilities decreased significantly to RMB 142,784,000 as of June 30, 2023, from RMB 578,711,000 as of December 31, 2022, a reduction of about 75.7%[81] - The company reported a significant decrease in contract liabilities from RMB 436,078,000 as of December 31, 2022, to RMB 15,774,000 as of June 30, 2023, a decline of approximately 96.4%[99] - The company’s total liabilities decreased to RMB 121,903,000 as of June 30, 2023, down from RMB 135,290,000 at the end of 2022, indicating a reduction of approximately 9.9%[113] Strategic Initiatives - The company plans to establish new campuses, including a new campus for Changzheng College with an expected enrollment of at least 5,000 students[16] - The company aims to acquire or invest in underutilized higher education institutions in Central, Eastern, and Southern China[18] - The company plans to optimize pricing strategies to enhance profitability, leveraging brand recognition and market acceptance[20] - The company has completed the registration to transform Jingyi Middle School into a for-profit private school, in compliance with the Private Education Promotion Law effective from September 1, 2021[34] - The company has established partnerships with over 328 enterprises and institutions to create off-campus training bases, enhancing practical training opportunities for students[142] - The company actively collaborates with over 200 enterprises to build high-quality off-campus internship bases, fostering industry connections for students[146] Employment and Education Quality - Approximately 99.0% of the teachers hold a bachelor's degree or above, with about 71.8% holding a master's degree or higher as of June 30, 2023[36] - The employment rate of graduates from the company's institutions consistently exceeds that of similar colleges in the same provinces, indicating strong job market performance[137] - The company ranks first in the private college enrollment plan in Zhejiang Province for 2022, highlighting its competitive position in the education sector[138] - The company has established six provincial first-class programs and nine brand programs in private higher education, reflecting its commitment to quality education[145] Government and Regulatory Environment - The company received government subsidies amounting to RMB 4,026,000 for operational expenses, compared to RMB 246,000 in the previous year[69] - The local government has issued guidelines to encourage the development of private education, which may impact the company's future operations and classifications[75] - The company continues to assess the impact of recent tax reforms on its operations and potential future tax liabilities[102] Corporate Governance and Financial Position - The group maintains a high standard of corporate governance to protect shareholder interests and enhance corporate value[168] - The company has no bank loans or other borrowings as of June 30, 2023, indicating a strong financial position with no debt obligations[147] - The company has a cash flow generated from operating activities to meet its operational funding needs, ensuring financial stability[147] - The company has no significant unrecorded liabilities or major lawsuits as of June 30, 2023[163] Capital Allocation - 50% of the funds allocated for acquiring other schools to expand the school network amounts to RMB 231 million[190] - 40% of the funds allocated for business expansion, including the establishment of new campuses for the Economic and Trade College and Changzheng College, totals RMB 184 million[190] - 10% of the funds allocated for working capital and general corporate purposes is RMB 46 million, which has been fully utilized[190] - Total funds allocated amount to RMB 461 million, with RMB 415 million remaining unutilized as of December 31[190]

Financial Performance - The company's revenue for 2022 was RMB 819,358,000, an increase of 19.7% compared to RMB 684,596,000 in 2021[6] - Gross profit for 2022 reached RMB 514,084,000, up from RMB 420,677,000 in 2021, reflecting a growth of 22.2%[6] - The annual profit for 2022 was RMB 472,942,000, compared to RMB 408,970,000 in 2021, marking an increase of 15.6%[6] - The core net profit for 2022 was RMB 478,393,000, which is a rise from RMB 415,016,000 in 2021, representing a growth of 15.2%[6] - The net profit margin for 2022 was 57.7%, slightly down from 59.7% in 2021[8] - The company reported a net profit margin of 20% for the fiscal year, maintaining a stable profitability level despite market challenges[122] Assets and Liabilities - Total assets increased to RMB 3,526,385,000 in 2022 from RMB 3,014,766,000 in 2021, showing a growth of 17.0%[21] - The current ratio improved to 2.6 in 2022 from 2.3 in 2021, indicating better liquidity management[8] - The income tax expense increased from RMB 0.8 million for the year ended December 31, 2021, to RMB 1.9 million for the current year, primarily due to tax adjustments made this year[43] - The company has no bank or other borrowings as of December 31, 2022[167] Educational Expansion and Strategy - The company plans to expand its vocational education offerings in response to government policies encouraging private sector involvement in education[14] - The company is positioned as the largest private higher education institution in Zhejiang Province and a leading institution in Henan Province[27] - The 2022 enrollment plan for Changzheng College ranked first among private colleges in Zhejiang Province[29] - The company plans to expand the Changzheng College campus, constructing new training buildings, dormitories, and administrative offices totaling approximately 57,102 square meters, increasing student accommodation capacity by about 5,000 students[38] - The company operates two higher education institutions located in Zhejiang and Henan provinces, with a focus on benefiting from favorable policies in vocational education in China[47] - The company aims to expand its school network both domestically and internationally, leveraging its operational experience[195] Student and Teacher Statistics - The initial employment rate of graduates from the School of Economics and Trade for the 2021/2022 academic year was approximately 90.89%[34] - As of December 31, 2022, about 98.7% of the teachers held a bachelor's degree or above, and approximately 69.7% held a master's degree or above[35] - The average teaching administrative building area per student for Long March College and Economic and Trade College was 5.15 square meters and 5.4 square meters, respectively[72] - The average land area per student for Long March College and Economic and Trade College was 17.7 square meters and 15.6 square meters, respectively, which does not fully meet regulatory requirements[72] - The student-to-teacher ratio for Long March College and Economic and Trade College did not meet the regulatory requirement of at least 1:18 during the year[71] Investment and Development - The company has allocated RMB 231 million for acquiring other schools to expand its network[179] - A total of RMB 184 million is designated for establishing new campuses, including the Economic and Trade College and the Long March College[180] - The company is investing G million in research and development to enhance product offerings and maintain competitive advantage[92] - The company has allocated HKD 50 million for research and development of new educational technologies in 2023[126] Market Position and Competition - The company is facing intense competition in the education sector, which may lead to pricing pressures and a potential decrease in operating profit margins[126] - The company aims to increase its market share by 5% over the next fiscal year through strategic marketing initiatives[126] - The company is expanding its market presence, targeting E new regions, which is expected to enhance overall market share[92] Governance and Compliance - The board has established an audit committee to oversee financial reporting and internal controls, ensuring compliance with regulatory standards[123] - The company has maintained compliance with relevant laws and regulations without any significant violations during the fiscal year[150] - The management team emphasized a commitment to sustainability, with plans to allocate K million towards eco-friendly initiatives[92] Shareholder Returns - The board of directors has proposed a final dividend of HKD 0.10 per share, reflecting a commitment to returning value to shareholders[132] - The company proposed a final dividend of HKD 0.015 per share for the year ended December 31, 2022, compared to no dividend in 2021[173] - The company reported a total revenue of approximately RMB 1,736 million available for distribution to shareholders as of December 31, 2022[154] Employee Relations and Training - The company has implemented an employee training program managed by the human resources department to maintain competitiveness in the industry[150] - The company has established a stock option plan to recognize and incentivize employee contributions[150] - The company has maintained good relationships with employees, suppliers, and customers, which are deemed essential for achieving corporate goals[152]

Financial Performance - The group recorded a profit of approximately RMB 472.9 million for the year, representing a growth of about 16% compared to RMB 409.0 million for the previous year[22]. - The company reported a profit attributable to owners of approximately RMB 366.7 million for the year, representing a growth of about 12% compared to the previous year[49]. - The core net profit for the year was RMB 478.4 million, compared to RMB 415.0 million in the previous year[50]. - The company's revenue for the year ended December 31, 2022, was RMB 819,358,000, representing an increase of RMB 134,762,000 or 20% compared to the previous year[97]. - Gross profit for the same period was RMB 514,084,000, reflecting a growth of RMB 93,407,000 or 22% year-over-year[97]. - Net profit for the year was RMB 472,942,000, which is an increase of RMB 63,972,000 or 16% from the prior year[97]. - Profit attributable to equity holders of the company was RMB 366,727,000, up by RMB 40,691,000 or 12% compared to the previous year[97]. - Core net profit reached RMB 478,393,000, marking an increase of RMB 63,377,000 or 15% year-over-year[97]. - Annual profit before tax increased to RMB 474,824,000, representing a growth of 15.9% compared to RMB 409,734,000 in 2021[118]. - The company reported a net profit of RMB 472,942,000 for 2022, a rise of 15.6% from RMB 408,970,000 in the previous year[118]. Revenue and Tuition Fees - Tuition fees generated RMB 396,549,000, an increase from RMB 343,527,000 in the previous year[110]. - Tuition fees generated RMB 736,596,000 in 2022, a 20.5% increase from RMB 611,000,000 in 2021[131]. - Total revenue for 2022 reached RMB 819,358,000, an increase of 19.7% from RMB 684,596,000 in 2021[118]. - The average tuition fee for Changzheng College in 2022 was RMB 15,398, compared to RMB 14,880 in 2021, reflecting an increase of approximately 3.5%[15]. - The average tuition fee for Jingyi School in 2022 was RMB 19,164, up from RMB 18,649 in 2021, indicating an increase of approximately 2.8%[15]. Assets and Liabilities - As of December 31, 2022, the net current assets amounted to approximately RMB 940.1 million, an increase from RMB 731.1 million the previous year, mainly due to an increase in bank balances by approximately RMB 273.6 million[24]. - As of December 31, 2022, the company's net assets amounted to RMB 2,920,192 thousand, an increase from RMB 2,436,398 thousand in the previous year[80]. - Cash and cash equivalents at the end of 2022 amounted to RMB 1,500,901,000, an increase from RMB 1,227,318,000 in 2021[121]. - Non-current assets totaled RMB 2,007,606,000, up from RMB 1,729,584,000 in 2021, indicating a growth of 16.1%[121]. - Total contract liabilities amounted to RMB 436,078,000, up from RMB 380,290,000 in the prior year[110]. Dividends - The board proposed a final dividend of HKD 0.015 per share for the year ended December 31, 2022, compared to no dividend in the previous year[32]. - The company did not declare any interim dividends for the years ended December 31, 2022, and December 31, 2021[113]. - The company will suspend shareholder registration from May 25, 2023, to May 30, 2023, for determining eligibility for the proposed final dividend[198]. Operational Developments - The group has completed the registration to transform Jingyi School into a for-profit private school, with the conversion process starting on March 13, 2023[13]. - The group plans to acquire or invest in underutilized schools in Central, East, and South China, aiming to expand its operational network[17]. - The company plans to establish a new campus for the Business School in Kaifeng, Henan Province, with an estimated capacity of about 15,000 students[43]. - The company plans to establish a new campus for Changzheng College, with an expected enrollment of no less than 5,000 students[157]. - The company plans to expand the campus of Changzheng College, constructing new training buildings, dormitories, and administrative offices totaling approximately 57,102 square meters, which will increase student capacity by about 5,000 students[183]. Student Enrollment and Employment - The total number of students across all schools increased to 53,051 in 2022, up from 45,506 in 2021, reflecting a growth of approximately 16.7%[41]. - The initial employment rate for graduates from the Economic and Trade College was approximately 90.89% for the 2021/2022 academic year[152]. - The initial employment rate for graduates from Changzheng College was approximately 98.48% for the 2021/2022 academic year[176]. Partnerships and Collaborations - The company has established over 200 high-standard off-campus internship bases in collaboration with various enterprises[12]. - The company has established partnerships with 328 enterprises and institutions to create off-campus internship training bases[74]. - The company has partnered with over 20 enterprises to establish collaborative education programs, enhancing industry integration[179]. Cost and Expenses - Operating expenses increased from RMB 7.9 million to RMB 8.8 million, primarily due to an increase in enrollment capacity[46]. - Other expenses rose significantly from RMB 9.4 million to RMB 16.9 million, mainly due to a net loss of RMB 8.5 million related to fair value adjustments of investment properties[47]. - Employee benefits expenses, excluding director remuneration, rose to RMB 204,683,000 in 2022 from RMB 168,206,000 in 2021, marking an increase of approximately 21.6%[163]. - The company's sales cost increased from RMB 263.9 million to RMB 305.3 million, a rise of approximately RMB 41.4 million, primarily due to an increase in employee costs of RMB 29.3 million and pandemic-related expenses of RMB 17.1 million[186]. Financial Management - The company aims to optimize its pricing strategy to enhance profitability[89]. - The company is positioned to further optimize its pricing strategy without affecting its reputation or ability to attract and retain students[158]. - The company has implemented strict controls over trade receivables to mitigate credit risk, with overdue balances regularly reviewed by senior management[72]. - The number of trade receivables aged within one year increased significantly to RMB 1,612,000 in 2022 from RMB 537,000 in 2021, indicating a growth of approximately 200%[140]. - The impairment of trade receivables increased to RMB 180,000 in 2022 from RMB 134,000 in 2021, reflecting a rise of approximately 34.3%[163]. Compliance and Reporting - The company has adopted revised international financial reporting standards in its financial statements for the current year[81]. - The audit committee and management have reviewed the group's annual consolidated financial performance for the year[199].