Performance Highlights (Unaudited relevant data for the six months ended February 29, 2024)

Revenue increased 19.3% year over year to approximately RMB 1,160.2 million (RMB, same below);

Gross profit increased 17.5% year over year to about 578.0 million yuan;

Profit attributable to company owners increased 13.2% year-on-year to about 338.2 million yuan; the number of students enrolled increased 12.3% year-on-year to 96,100;

Cash and cash equivalents amounted to $1,491.0 million. The cash level was sufficient, with an interim dividend of HK9.6 HK cents per share, with a dividend ratio of 30%.

(April 26, 2024, Hong Kong) - Zhonghui Group Holdings Limited (“Zhonghui Group” or the “Group”, stock code: 0382.HK) announced unaudited interim results for the fiscal year 2024 for the six months ended February 29, 2024 (the “reporting period”). During the reporting period, in the context of responding positively to national policies and keeping up with market demand and industry development trends, the Group continued to increase investment in schools, deepen the integration of industry and education and school-enterprise cooperation, and continuously optimize the professional layout of vocational education subjects to achieve sustainable development with seamless employment links between schools and enterprises, and steady improvement in performance.

During the reporting period, the Group recorded revenue of approximately RMB 1,160.2 million, an increase of 19.3% over the same period last year, mainly due to an increase in the number of students enrolled in the Group's domestic schools. The company's owner's profit for the period was approximately RMB 338.2 million, an increase of 13.2% over the same period last year. The Group's cash and cash equivalents reached $1,491.0 million, and the cash level was abundant. The number of students enrolled continues to reach a new peak of around 96,000. The Group's Board of Directors recommended an interim dividend of HK9.6 cents per share for the six months ended February 29, 2024, at a dividend ratio of 30%.

Cooperate with national policies to promote high-quality development of vocational education

In recent years, the Group has based on the Guangdong-Hong Kong-Macao Greater Bay Area and the Cheng-Chongqing economic circle, facing the whole country, radiating the world, and resonating with the times. Using industrial development and market needs as its foothold, the Group has continuously explored new models of “school, society and enterprise” collaborative education to cultivate complex highly skilled application talents urgently needed by the market. In order to meet the talent needs of the country's strategic emerging industries and Chaoyang's innovative industries, the Group also gave full play to the advantages of collaborative development in multiple disciplines such as economics, management, literature, engineering, art, education, science, medicine, etc., improved the professional layout, and actively established scarce majors in markets such as artificial intelligence, cloud computing, big data, new energy, stomatology, animation design, and digital economy. At the same time, in order to achieve a “seamless connection” between learning and employment and open up channels for campus education and internship employment, the Group established new School of Digital Economy, Trade and Industry, the Guangdong Provincial School of Rural Leisure Industry, etc. during the reporting period, and established school-enterprise partnerships with more than 1,000 large enterprises such as Huawei, China Mobile Games, Bosch, Oracle, JD, and iFLYTEK.

Optimize the professional layout of vocational education subjects to achieve a seamless connection between school-enterprise employment

In recent years, the Group has based on the Guangdong-Hong Kong-Macao Greater Bay Area and the Cheng-Chongqing economic circle, facing the whole country, radiating the world, and resonating with the times. Using industrial development and market needs as its foothold, the Group has continuously explored new models of “school, society and enterprise” collaborative education to cultivate complex highly skilled application talents urgently needed by the market. In order to meet the talent needs of the country's strategic emerging industries and Chaoyang's innovative industries, the Group also gave full play to the advantages of collaborative development in multiple disciplines such as economics, management, literature, engineering, art, education, science, medicine, etc., improved the professional layout, and actively established scarce majors in markets such as artificial intelligence, cloud computing, big data, new energy, stomatology, animation design, and digital economy. At the same time, in order to achieve a “seamless connection” between learning and employment and open up channels for campus education and internship employment, the Group established new School of Digital Economy, Trade and Industry, the Guangdong Provincial School of Rural Leisure Industry, etc. during the reporting period, and established school-enterprise partnerships with more than 1,000 large enterprises such as Huawei, China Mobile Games, Bosch, Oracle, JD, and iFLYTEK.

Closely following national policies, focusing on content, and building educational achievements have been highly recognized

Since starting the school, the Group has responded positively to national policies, closely followed market demand and industry trends, and continued to increase investment in running schools. During the reporting period, Guangzhou Huashang Vocational College was successfully approved to establish a doctoral workstation in Guangdong Province. It is the only private higher vocational college among those approved. At the same time, the Group provides a solid guarantee for the high-quality development of schools through measures such as strengthening teacher training, improving teacher treatment, and optimizing teacher evaluation mechanisms. In addition, the Group also continues to carry out campus construction, update and upgrade training facilities and equipment to create a high-quality educational environment and promote the steady improvement of the efficiency of the school brand. With the improvement of content construction, the Group's colleges and universities have also greatly improved their ability to run schools, ushering in a period of good harvest of educational achievements. During the reporting period, Guangzhou Huashang University achieved another breakthrough in first-class curriculum construction. A total of 7 courses were selected as provincial first-class undergraduate courses; Guangzhou Huashang Vocational College won the “2023 National Model Vocational College” by Tencent News for its unique teaching philosophy and outstanding educational achievements; Sichuan City Vocational College ranked fourth in the country and number one in Sichuan Province in the 2024 GDI Private Higher Vocational College TOP100 list. In terms of research, the Ministry of Education of higher vocational colleges ranked 9th in the country and 1st in Sichuan Province. It can be seen from this that through continuous improvement of content construction, the collaborative benefits of the various colleges and universities under the Group have been continuously enhanced, and their reputation for running schools has improved markedly. Running high quality schools has also become a strong driving force for the Group's performance to achieve sustainable and steady growth.

Future prospects

Looking forward to the future, with strong national policy support and over 20 years of private education experience, the Group will continue to deepen industry-education integration and school-enterprise cooperation, keep up with the pace of clustering development of strategic emerging industries in the country, and vigorously develop new and interdisciplinary disciplines such as artificial intelligence, digital economy, financial technology, health and pension, drive the optimization and upgrading of academic disciplines, cultivate a new generation of high-quality applied talents with an international perspective, and make positive contributions to achieving the country's strategic goals and promoting high-quality development of vocational education.