Chairman's Statement

Chairman’s Statement

Dear Shareholders,

On behalf of the board (the “Board”) of directors (the “Director(s)”) of the Company, I hereby present the annual report of the Group for the year ended 31 December 2021.

OVERVIEW

Year 2021 is a year in which the Group responded positively and adhered to high-quality development. The Group endeavoured at all levels to overcome the impact of the pandemic by focusing on the goal of the year, actively responding to opportunities and challenges and effectively implementing various strategic plans, thereby maintaining a steady business development and achieving favorable economic and social benefits.

REVIEW OF RESULTS

  1. For the year ended 31 December 2021, with the Group’s operating efficiency affected by the COVID-19 pandemic, its main operating revenue was RMB4,140 million, representing a year-on-year increase of 13.5% as compared to year 2020. Net profit of the year was approximately RMB302 million, representing a year-on-year increase of 17.3% as compared to year 2020; the adjusted net profit of the year was RMB432 million, representing a year on-year decrease of 13.6% as compared to year 2020. The number of new students enrolled was 154,259, representing a year-on-year increase of 6.0% as compared to year 2020.
  2. The number of students enrolled of the Group in 2021 increased by 6.0% as compared to the previous year, with the average number of students enrolled nationwide exceeding 144,000; 25 new institutions, including Tibet New East, Fuzhou Xinhua, Yinchuan Wontone and Yichang Omick, recruited students and commenced operation, achieving full nationwide coverage by bringing the total number of institutions nationwide to 231, with 10 institutions at the preparation stage.
  3. The Group’s strategy of developing regional centres has achieved substantial results. The Shandong Vocational Education City Project Phase I with an area of 82,000 square meters and the Hefei Vocational Education City Project Phase II with an expansion area of 70,000 square meters was officially delivered for use; and the Chengdu Vocational Education City Project Phase I with 300 mu of land and an overall planning of 253,000 square meters has fully commenced construction.
  4. In 2021, four institutions, namely Anhui Xinhua, Chengdu New East, Gansu New East and Inner Mongolia New East, were upgraded to senior technical schools, and four new technical schools were added, bringing the Group’s total number of secondary technical schools to 43 and senior technical schools to 7. During the year, the Group was awarded 4 master studios at provincial and municipal levels, and received 985 awards in major competitions such as the National Rural Revitalization Vocational Skills Competition.

LOOKING AHEAD

  1. We will consolidate our position as a pioneer in the industry, further expand our market share, complete the development of preparatory colleges as planned, strengthen the foundation of skills training, expand the scale of enrolment, accelerate the pace of development of the senior technical section, raise the level of schooling, accelerate the development of emerging businesses, expand revenue growth, push forward the construction of regional centres, achieve intensive development, pay more attention to the accuracy of our network placement, improve the efficiency of our consultation process, and enrich the forms of media cooperation so as to expand our brand influence.
  2. We will consolidate the quality of teaching, improve the teaching management system and process control, accelerate the improvement of the research and development system, further strengthen the construction of the teaching staff, improve the construction of the professional system, strengthen the construction of the teaching quality assurance system, enhance its efforts in research on the development of emerging industries and shortage of professions, continue to deepen the exploration of college-enterprise cooperation model, and explore more effective experiences in talent cultivation and professional co-construction.

ACKNOWLEDGEMENT

On behalf of the Board, I would like to express my sincere gratitude to the parents of our students and the shareholders for their trust and support and to all employees and the management team for their contribution and dedication. In the future, we will continue to elevate our education standard, increase operating efficiency and perform corporate responsibility. We will strive to nurture our students and develop their talents with results satisfying their parents and employers and recognised by the society.

China East Education Holdings Limited
Wu Wei
Chairman of the Board