Neusoft Education Announces 2022 Interim Results

The Result Growth Momentum Is Strong, and the Business Development of the Two Strategic Businesses Accelerated

HONG KONG, Sept. 1, 2022 /PRNewswire/ -- The Board of Neusoft Education Technology Co. Limited (hereinafter referred to as "Neusoft Education" or "the Company"; Stock code: 9616.HK) is pleased to announce the interim results of the Company ended on 30 June 2022.

In the first half of 2022, owing to the steady improvement of formal education and high-quality management achievements, as well as the rapid growth of the two strategic businesses of continuing education services and education resources output, the results of operations of the Company was significantly improved, achieving a revenue of approximately RMB743.7 million, representing an increase of 24.4% over the same period of last year. The gross profit amounted to approximately RMB349.5 million, representing an increase of 35.7% over the same period last year. The gross profit margin reached 47.0%, representing an increase of 3.9 percentage points over the same period last year. The net profit attributable to owners of the Company amounted to approximately RMB233.2 million, representing an increase of 114.7% over the same period last year.

Remarkable achievements have been made in Programme Construction and teaching reform to achieve high-quality employment for graduates

Neusoft Education, as the leading IT higher education technology group in China, has always adhered to the principle of strengthening moral education and cultivating talents and high-quality management achievements since its establishment. With the characteristic TOPCARES education approach as the guide, Neusoft Education has continuously deepened education and teaching reform, implemented the industry-education integration, and innovated talent training mode.

In the first half of 2022, the "One Fundamental Business" full-time formal higher education services continued to consolidate. Neusoft Education which can provide bachelor degree programmes, junior college diploma programmes and junior college to bachelor degree transfer programmes through its three branch campus - Dalian University, Chengdu University and Guangdong University. During the Reporting Period, there were 45,492 students in the three universities of the Company, representing an increase of 16.4% over the same period last year. In the 2022/2023 school year, the admission quota of the Group achieved steady growth, representing an increase of nearly 1,000 as compared with that of last school year. The Group believe that adhering to excellent education quality and preserving good brand reputation will help the Group maintain and further raise the admission quota of the three universities. In addition, according to the third-party statistics, the average salary of graduates has risen steadily, and the employment rate of all universities is higher than the average level of non double first-class universities in China. Those outstanding graduates were employed by well-known enterprises such as Accenture, Tencent, Lenovo, Baidu, NetEase, KPMG and Neusoft Corporation.

At the same time, Neusoft Education continued to optimize the professional layout in the first half of 2022, with remarkable achievements in professional construction and teaching reform. During the Reporting Period, Dalian University has been approved 7 recognised National-level First-class Bachelor Degree Programme Construction Sites, and the recognised number ranking the first among all private universities and colleges in China. Since the Ministry of Education officially launched the "Twenty Thousand Project" for the construction of first-class undergraduate majors in 2019, a total of 25 undergraduate majors from the three universities of Neusoft Education have been selected, of which 22 are digital technology related majors, accounting for nearly 90%, showing the Company's characteristic achievements and leading advantages in the construction of digital technology related majors, which have persisted in running schools in the field of digital technology for many years.

The reform and innovation of cooperative colleges and universities enabled by science and technology, and the two strategic businesses grew rapidly

As one of the "Two Strategic Businesses", education resources output relies on industrial advantages and academic education accumulation. Neusoft Education will digitise, product and platform the leading education concepts, methods, models, systems and standards, and take the form of joint establishment of academic majors and industrial college, smart education platform and teaching resources, practical training laboratory solutions, and take the apprenticeship programme as the implementation carrier to empower more ordinary colleges and vocational colleges with distinctive educational products and services. As of 30 June 2022, Neusoft Education has set up 14 off-campus execution centres for apprenticeship programme across the country (9 of which are jointly established). The Group has established cooperation relationship with 65 universities and colleges on joint establishment of industrial colleges and academic majors, of which more than three quarters are public institutions. The business in joint establishment of academic majors had a total of over 250 projects, covering 17,960 students, increasing by 35% from that of the same period of last year and realising a revenue of approximately RMB36 million. In addition, the Group entered into cooperative agreements on joint establishment of academic majors or industrial colleges with another 8 new universities and colleges during the Reporting Period, which are expected to be carried out in the coming school year. Revenue generated from the education resources was RMB68.9 million, representing an increase of 115.9% as compared with the corresponding period of last year, mainly due to the rapid growth of revenue from joint establishment of academic majors, smart education platform and teaching resources, practical training solutions.

As another one, the continuing education service business has also developed vigorously. As at 30 June 2022, the number of student enrolments for formal continuing education was 10,083, basically remaining even with that of last year, realising a revenue of approximately RMB38 million. In the non-formal continuing education business (institution entrusted training and individual training business), the revenue in the first half of the year was RMB27 million, and it has accumulated more than 50 national, provincial and municipal training qualifications. We carried out diversified training programmes including teachers' quality improvement training, "1+X" certificate training and staff skill training for 18 institutions from 7 province and autonomous regions of Sichuan, Shanxi, Hebei and others.

The embryonic form of characteristic online education has emerged, and the policy will help the future development

Facing the change of education mode under the new situation, we launched an online studying platform - "Neuedu Online" APP in 2021, as an active respond to the national policy, a timely compliance with the market demands and layout of the online education segments, so that students can learn in any place and make full use of fragmented time. As of 30 June 2022, "Neuedu Online" had more than 700,000 registered accounts. In the first half year of 2022, we launched "Neuedu IT Cloud Class". The successive launch of "Neuedu Online" and "Neuedu IT Cloud Class" initially constructed the framework of the Company's online education business, and further demonstrated our strength and confidence in the development in this area.

The newly revised Vocational Education Law of the People's Republic of China was published on 20 April 2022, encouraging enterprises to provide quality vocational education. Previously, the key assignments of vocational education in 2022 published by the MOE also clearly pointed out the need to promote the quality development of modern vocational education.

Against this background, Neusoft Education relies on Neusoft's strong industrial advantages and more than 20 years of education accumulation of three universities. Based on the two strategic businesses and the characteristic TOPCARES education methodology, Neusoft Education has built a multi-dimensional systematic education product and teaching resources and built a "4S" product service system of PAAS (platform as a service), SaaS (software as a service), CAAS (content as a service) and DAAS (data as a service). In the future, Neusoft Education will always adhere to the excellent quality of running a school in academic education, persist in building a first-class undergraduate and junior college specialty, and lead applied education development; In terms of the "Two Strategic Businesses", the Group will continue to strengthen product research and development, explore cutting-edge technologies, expand business network, consolidate the light asset delivery mode, maintain the sustained and rapid development of the "two strategic businesses", and strive to realise the vision of "Becoming a Leading Education Service Provider of Digital Talents in China".

About Neusoft Education Technology Co. Limited

Neusoft Education Technology Co., Ltd. (hereinafter referred to as the "Company") is a leading IT higher education technology group in China. It focuses on training digital technology talents to meet the rapid growth demand of China's digital economy. We have developed an ecosystem with full-time formal higher education services as our fundamental business; continuing education services, and education resources and apprenticeship programme as our two strategic businesses. Taking advantage of the unique TOPCARES methodology, the high-quality education resources accumulated since its establishment in 2000 and its leading market position, the Company has invested the experience and resources accumulated in the past 20 years into high-quality education products, services and solutions, and has divided the education resource output business into three modules: joint establishment of academic majors and industrial college, intelligent education platform and teaching resources, and experimental training room solutions, with digital workshop as the implementation carrier. The Company's unique asset light and highly expandable "3+N" business model ("3" represents the Company's three universities and "N" represents other higher education institutions enjoying the Company's high-quality education resources) can provide other universities, colleges or vocational schools with standardised or customised education resources integrating the Company's unique education concepts, methods, models, systems and standards. The Company has provided quality education resources to more than 400 universities, colleges and vocational schools, including 31 universities included in the "Double First-class University" Higher Education Development Program and 64 vocational schools included in the "Double High-levels Plan" for vocational education in China.