On August 2, China Jingda Education Group Holdings Co., Ltd. (hereinafter referred to as Jingda Education) from Guangzhou, Guangdong Province submitted a prospectus to the Stock Exchange and applied for listing on the main board of Hong Kong stocks. Macquarie is the exclusive sponsor of the company.

It is reported that Jingda Education applied for listing on the main board of the Hong Kong Stock Exchange on January 26 this year under the name of China University of Science and Technology Education Group Co., Ltd. Later, the University of Science and Technology of China announced that Guangzhou University of Science and Technology and "China University of Science and Technology Education Group Co., Ltd." did not have any factual or legal connection with China University of Science and Technology. The school has never authorized "China University of Science and Technology Education Group Co., Ltd." to use the word "China University of Science and Technology" as its enterprise name. On February 10, in order to avoid confusion, the company changed its name to China Jingda Education Group holding Co., Ltd.

The controlling shareholder holds 100% of the shares.

According to the prospectus, before the listing, Jingda Education's controlling shareholders were Feng Bingchang and Lu Caifeng, who each held 50 per cent through New Visual and New Container, a total of 100 per cent. Mr. Feng Bingchang is the executive director and chairman of the company, and Ms. Lu Caifeng is the executive director and chief executive officer of the company.

Guangzhou Vocational and Technical College of Science and Technology

The company's Guangzhou Vocational and Technical College of Science and Technology mainly provides undergraduate programs, specialist programs and 32nd special programs for full-time students, as well as continuing education for part-time students, such as two-year promotion programs and professional qualification certificate training.

In 1999, Guangdong Nanjing University, the predecessor of Guangdong Jingda and Guangzhou Vocational and Technical College of Science and Technology, was established. Guangzhou Vocational and Technical College of Science and Technology has offered a total of 14 undergraduate programs, 3 specialized programs, 10 specialties and 40 specialties, employing a total of 1412 teachers in the 2020 / 2021 academic year, Guangzhou Vocational and Technical College of Science and Technology has set up a total of 14 undergraduate programs, 10 specialties and 40 specialties. The total number of full-time students in the school increased from 11200 in 2017 to 25500 in 2020.

Before listing, Jingda Education occupies two campuses in Guangdong Province, namely, Guangzhou Campus and Binhai Campus. The number of full-time students in Guangzhou Vocational and Technical University of Science and Technology was 11200, 12500, 18600 and 25500 respectively in the 2017, 2018, 2018, 2019, 2019 and 2021 academic years, with a compound annual growth rate of about 31.5%.

Tuition fees bring about three consecutive years of revenue growth

According to the prospectus, Jingda Education's operating income from 2018 to 2020 was 173 million yuan, 207 million yuan and 348 million yuan respectively, and its net profit was 32 million yuan, 31 million yuan and 142 million yuan respectively.

The income of Jingda education mainly comes from tuition fees. Tuition fees accounted for 92.3%, 88.9% and 92.5% of total operating income in the past three years, respectively. In addition to tuition fees, other income is boarding fees, other educational service fees (mainly including fees earned from continuing education for part-time students) and income from non-educational business (mainly from Tongxin printing and Guangke moulds). According to the prospectus, in 2020, the tuition fees for all majors in the undergraduate program of Guangzhou Vocational and Technical University of Science and Technology are 23800 to 28500 yuan per full-time student per year, and the tuition fees for junior college programs are 16000 to 18500 yuan.

According to the prospectus, the company's fund-raising will be used to (1) expand the campus of Guangzhou Vocational and Technical University of Science and Technology, through the construction of additional teaching administrative facilities, entertainment facilities and student dormitories on the campus; (2) acquire qualified colleges and universities or junior colleges to expand the school's school-running network; and (3) for working capital and for general corporate purposes.