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 2022.
Year 2022 is a year in which the Group responded positively and adhered to high-quality development. Oriented by excellent vocational education, the Group endeavoured at all levels to overcome the impact of the pandemic, changing market and intensified competition by focusing on the goal of the year. All divisions and institutions effectively implementing various strategic plans, thereby maintaining a steady business development and achieving favorable economic and social benefits.
REVIEW OF RESULTS
- For the year ended 31 December 2022, with the Group’s operating efficiency affected by the COVID-19 pandemic, its main operating revenue was RMB3,819 million, representing a year-on-year decrease of 7.7% as compared to year 2021. Net profit of the year was approximately RMB367 million, representing a year-on-year increase of 21.3% as compared to year 2021; the adjusted net profit of the year was RMB266 million, representing a year on-year decrease of 38.4% as compared to year 2021. The number of new students enrolled was 134,347, representing a year-on-year decrease of 12.9% as compared to year 2021.
- The average number of students enrolled nationwide in 2022 was approximately 143,000; 13 new schools, including Zhaotong New East and Changsha On-mind, recruited students and commenced operation, achieving nationwide coverage by bringing the total number of institutions nationwide to 244, with 3 institutions at the preparation stage, including Qingdao Wontone and Zhengzhou On-mind.
- The Group’s strategy of developing regional centres was continuously boosted. Phase I project of Chengdu Vocational Education Industrial Park and Shandong Vocational Education Industrial Park with a total area of 150,000 square meters were officially put into use, while another 260,000 square meters are under construction. The construction of Phase I project of Guiyang Vocational Education Industrial Park covering an area of 248 mu has been started. The Group succeeded in the auction of the land for Henan Vocational Education Industrial Park, and the Phase I project with an coverage of 238 mu is about to start construction. The construction of Hefei Vocational Education City Project has been steadily advanced, and the total number of students at three institutions in Hefei has exceeded 25,000.
- In year 2022, four institutions, namely Sichuan Xinhua, Hainan New East, Jiangxi Wontone and Chengdu Wontone were upgraded to senior technical schools, and three new technical schools were added, bringing the Group’s total number of secondary technical schools to 46 and among that senior technical schools to 11. During the year, the Group was awarded 6 master studios at provincial and municipal levels, accumulating the total number to 37, and received 1,028 awards in major competitions such as the Qualifiers of World Skills Competition, National Vocational Competence Competition for Vocational School Teachers, Adobe Certified Professional and 3D Design Show.
- We will consolidate our position as a pioneer in the industry, enhance our brand recognition and influence, further expand our market share, 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, continue to develop new professions and products, accelerate the development of emerging businesses, expand revenue growth, pay more attention to the accuracy of our network placement, improve the construction of multiple recruitment channels, strengthen media and traffic cooperation, improve the efficiency of our consultation process, increase marketing benefits and expand marketing increment through multiple measures, complete the preparation for institution development as scheduled, push forward the construction of regional centres so as to achieve intensive development.
- We will improve teaching quality and teaching management standards, improve the teaching management system and process control, build a team of high-quality teachers and teaching management personnel, improve the teaching quality assurance system, further complete the construction of R&D system and professional system, grasp the opportunity of industrial structure reform and skilled talents upgrading, continue to practice and innovate the college-enterprise cooperation model, and explore more effective experiences in talent cultivation, professional co-construction and industrial institution construction.
On behalf of the Board, I would like to express my sincere gratitude to the parents of our students, the shareholders, and all sectors of society for their trust and support and to all employees and the management teams for their contribution and dedication. With full confidence in the future, we will continue to improve schooling quality, perform social responsibility and increase operating benefits with the goal of high-quality development to cultivate more high-quality skilled talents for the society and the industry and create greater value for shareholders.
China East Education Holdings Limited
Chairman of the Board