As of August 31, 2021, the company realized an income of 2259 million yuan, an increase of 11.2% over the same period last year; a profit of 825 million yuan from its mother, an increase of 304.5% over the same period last year; and a profit of 1.435 billion yuan from the parent of the company, an increase of 38.9% over the same period last year. The operating profit of FY2021 increased by 1230bps to 63.5%. No final dividend is paid.

K9 compulsory education is separated from the report form and focuses on the main business of higher education: the regulations on the implementation of the people's Promotion Law, which came into effect on September 1, 2021, prohibit social organizations and individuals from controlling private schools that carry out compulsory education through simultaneous acceptance and coordinated control, and prohibit private schools that carry out compulsory education from dealing with stakeholders. At present, the company has 4 domestic and foreign universities, 5 senior high schools, 13 primary and junior high schools, and 5 childish schools. After listing, the company clearly takes higher education as its strategic development focus. After the implementation of the regulations, the company decided to separate its reports from K9 business. As a result, the company increased the K9 liability value of 1.04 billion people (the asset value of K9 tax) in the year 21. In the 21st century, the share of revenue and profit of K9 business was 14.6% and 9.37% respectively, and the departure of K9 business had a small impact on the overall business of the company.

Grasp the benefits of vocational education policies and actively integrate preparations: under the shadow of the policy of "people promoting the implementation of laws and regulations" and "opinions on promoting the development of high-quality vocational education in modern times", the company is more determined to develop vocational education. The company completed the placing financing in October 2021, placing 220 million shares at HK $419 per share, resulting in a total financing of HK $922 million. The proceeds will be used to: (1) convert the company's three K12 schools in Luohe, Jiaozuo and Luohe into higher vocational colleges, and the relevant regulations are in the process of approval, and are prepared to further increase investment in order to be included in the promotion rules and regulations during the 14th five-year Plan period, so as to upgrade vocational universities. (2) the company is closely linking up the land of the new campus of Hunan Institute of Foreign Economics with the local government, and it is expected that there will be definite news of site selection at the end of the year: (3) the existing three universities will increase investment and offer vocational undergraduate education. Through the upgrading of the newly-built higher education college and the existing undergraduate vocational undergraduate courses, the company is expected to fully benefit from this policy.

Target HK $5.50, maintain level: after leaving K9, the company will pay more attention to higher education and vocational education, the company's active financing program or the continued growth of the company in the future, considering the negative impact on the company's performance in the K9 business report, we adjusted the company target at HK $5.50, corresponding to 10.0 x and 9.1 x of 2223 pe. There was still 64.7% upward space at the close of trading yesterday.