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]
嘉宏教育(01935) - 2024 - 年度财报