On November 29, 2024, China Chunlai Education Group Limited (1969.HK) announced its comprehensive annual performance as of August 31, 2024. During the year, the group's revenue reached RMB 1631.5 million, an 8.9% year-on-year increase; gross profit reached RMB 955.5 million, a 7.4% year-on-year increase; gross margin reached 58.6%; profit reached RMB 778.2 million, a 13.7% year-on-year increase, mainly due to the increase in average tuition fees. In addition, tuition and lodging revenue reached RMB 1486.4 million and RMB 145.1 million respectively, with year-on-year increases of 9.4% and 4.6% respectively. The board of directors has recommended a final dividend of RMB 0.0924 per share (approximately HKD 0.1) for the reporting period.

School revenue has shown significant growth.

During the year, several schools under China Chunlai recorded significant revenue growth: Anyang University's revenue amounted to RMB 430.1 million, a 5.5% year-on-year increase; Anyang University's Yuanyang Campus revenue reached RMB 177.2 million, a 34.3% year-on-year increase; Hubei Health Vocational College recorded revenue of RMB 96.7 million, an 84.9% year-on-year increase; Jingzhou University's revenue reached RMB 293.2 million, a 25.2% year-on-year increase.

In the 2023/2024 academic year, the total number of enrolled students was 103,301. Among them, the total enrollment numbers at Anyang University's Yuanyang Campus, Jingzhou University, and Hubei Health Vocational College increased significantly by 32.9%, 22.1%, and 84.0% respectively.

High-quality education and good reputation effectively boost high enrollment rates.

China Chunlai stated that its educational philosophy at the schools, along with comprehensive curriculum and high employment rate of its graduates, enable the group to attract excellent students seeking a path to good job opportunities. Additionally, with over 20 years of operation, the group has a good reputation in providing quality education services and has established a warm and active alumni community, which will help the group continue to attract outstanding students. In addition to recommendations from the alumni network, the group also uses various publicity and enrollment methods to attract students and increase the number of enrollments, such as seminars, advertisements, and brochures, which have yielded good results.

China Chunlai's enrollment efforts, coupled with the quality and reputation of its educational programs, have helped the group achieve high enrollment rates in colleges offering undergraduate courses. For example, in the 2023/2024 academic year, the total enrollment rate (defined as the number of students enrolled in undergraduate courses divided by the number of students admitted to the courses) for the five colleges offering undergraduate courses by the group (namely Shangqiu College, Shangqiu College of Applied Science and Technology, Anyang University, Anyang University Yuanyang Campus, and Jingzhou University) was 94.41%.

Integration of production and education + continued cooperation with enterprises drives high employment rates.

An excellent teaching team, regardless of looking back on the past or looking forward to the future, plays an important role in achieving the success of educational institutions. The schools operated by China Chunlai focus closely on the goal of cultivating applied talents, value and actively carry out industry-education integration, strengthen school-enterprise cooperation, explore a "diversified talent cultivation, innovative practical education system," and establish their own characteristics and highlights.

In the year, China Chunlai carried out about 1100 school-enterprise cooperation projects, including internship and training, joint transformation of R&D results, joint training of order classes, and co-construction of majors and laboratories. The high employment rate of group graduates reflects the effectiveness of practical courses and training programs. As of August 31, 2024, the average employment rate of graduates from group colleges is approximately 93.56%.

AI education + international education synergistically drive high-quality development.

On February 2, 2024, China Chunlai signed a cooperation agreement with Beijing Gravity Internet Technology Co., Ltd., under which Gravity Internet agreed to provide consulting services to the school organizers for the design and construction of an artificial intelligence education platform. This cooperation will further strengthen the group's leading position in training AI marketing talents, while providing students with more accurate career planning and job search services.

In November 2024, Anyang College and Shangqiu College signed a cooperation agreement with the Australian Elite Education Institute, and Anyang College signed a cooperation agreement with Massey University in New Zealand to establish in-depth strategic cooperative relationships with these colleges, promoting the common goal of educational diversification and internationalization among all parties.

The Board of Directors of China Chunlai Education Group Limited stated: "In recent years, with the support of the government, the Chinese education industry has developed rapidly. Seizing the opportunity, we have achieved the expected results by building an excellent team of teachers, focusing on the practicality of the curriculum system, increasing enrollment efforts, expanding our presence. We believe that the group has strong potential for further business development. In addition, this group has been included in the list of qualified securities under the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect as of March 4, 2024, reflecting an increased recognition of the group's operating performance and development potential by global investors. It is expected to enhance the group's visibility and provide more opportunities for business development and cooperation."

In the future, we will gradually increase the capacity of the colleges, continuously increase the total number of enrolled students, and recruit teachers who have shown outstanding performance in their respective disciplines, have an open attitude towards innovative teaching methods, care about student interests, focus on teaching outcomes, achieve higher employment rates, bring solid momentum for sustainable development in the future, and maximize shareholder interests.