Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take

no responsibility for the contents of this announcement, make no representation as to its accuracy
or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising
from or in reliance upon the whole or any part of the contents of this announcement.

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2023

The board of directors (the “Board”) of JH Educational Technology INC. (the “Company”) is
pleased to announce the unaudited interim consolidated financial results of the Company and its
subsidiaries (collectively, the “Group”) for the six months ended 30 June 2023 (the “Reporting
Period” or “Period”), together with the comparative figures for the corresponding period in 2022.
The unaudited interim consolidated financial results for the Reporting Period have been reviewed
by the audit committee of the Board (the “Audit Committee”).

HIGHLIGHTS

Six months ended 30 June Percentage

2023 2022 Change Change
RMB’000 RMB’000 RMB’000
(Unaudited) (Unaudited)

Revenue 441,055 385,545 55,510 14%

Gross profit 294,801 249,188 45,613 18%
Profit for the period 272,163 247,575 24,588 10%
Core net profit(Note) 274,194 249,594 24,600 10%

Note: Core net profit is defined as the profit for the period of the Group after adjusting for those items which are not
indicative of the Group’s operating performance. For details of the reconciliation of the profit for the period to
the core net profit of the Group, please refer to the section headed “Financial Review” in this announcement.

1
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2023

Six months ended 30 June

Notes 2023 2022
(Unaudited) (Unaudited)
’
RMB 000 RMB’000

REVENUE 4 441,055 385,545

Cost of sales (146,254) (136,357)

Gross profit 294,801 249,188

Other income and gains 4 39,389 22,326
Selling and distribution expenses (2,135) (2,589)
Administrative expenses (30,913) (19,574)
Other expenses (28,149) (407)
Finance costs (4) (12)

PROFIT BEFORE TAX 5 272,989 248,932

Income tax expense 6 (826) (1,357)

PROFIT FOR THE PERIOD 272,163 247,575

2
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME (Continued)

For the six months ended 30 June 2023

Six months ended 30 June

2023 2022
(Unaudited) (Unaudited)
’
RMB 000 RMB’000

PROFIT FOR THE PERIOD 272,163 247,575

OTHER COMPREHENSIVE INCOME

Other comprehensive income that may be reclassified
to profit or loss in subsequent periods:
Exchange differences:
Exchange differences on translation of
financial statements 12 17

Net other comprehensive income that may be

reclassified to profit or loss in subsequent periods 12 17

Other comprehensive income that will not be

reclassified to profit or loss in subsequent periods:
Exchange differences:
Exchange differences on translation of
financial statements 3,532 5,381

Net other comprehensive income that will not be

reclassified to profit or loss in subsequent periods 3,532 5,381

OTHER COMPREHENSIVE INCOME FOR

THE PERIOD, NET OF TAX 3,544 5,398

TOTAL COMPREHENSIVE INCOME FOR

THE PERIOD 275,707 252,973

3
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME (Continued)

For the six months ended 30 June 2023

Six months ended 30 June

Note 2023 2022
(Unaudited) (Unaudited)
’
RMB 000 RMB’000

Profit attributable to:

Owners of the parent 211,648 196,395
Non-controlling interests 60,515 51,180

272,163 247,575

Total comprehensive income attributable to:

Owners of the parent 215,192 201,793
Non-controlling interests 60,515 51,180

275,707 252,973

EARNINGS PER SHARE ATTRIBUTABLE TO

ORDINARY EQUITY HOLDERS OF
THE PARENT 8
Basic and diluted
– For profit for the period RMB13.22 cents RMB12.27 cents

4
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION

30 June 2023

As at As at
30 June 31 December
Notes 2023 2022
(Unaudited) (Audited)
RMB’000 RMB’000

NON-CURRENT ASSETS
Property, plant and equipment 1,408,425 1,422,215
Investment properties 185,418 185,418
Right-of-use assets 274,590 278,781
Goodwill 110,995 110,995
Other intangible assets 9,679 9,851
Prepayments for purchases of property, plant and
equipment 265 346

Total non-current assets 1,989,372 2,007,606

CURRENT ASSETS
Trade receivables 9 291 1,747
Prepayments, deposits and other receivables 48,773 15,184
Amount due from a related party 10,022 –
Other current assets 891 947
Cash and cash equivalents 1,302,824 1,500,901

Total current assets 1,362,801 1,518,779

CURRENT LIABILITIES
Other payables and accruals 10 121,903 135,290
Lease liabilities 35 234
Contract liabilities 4 15,774 436,078
Deferred income 4,412 4,332
Tax payable 660 2,777

Total current liabilities 142,784 578,711

NET CURRENT ASSETS 1,220,017 940,068

TOTAL ASSETS LESS CURRENT LIABILITIES 3,209,389 2,947,674

5
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION (Continued)

30 June 2023

As at As at
30 June 31 December
2023 2022
(Unaudited) (Audited)
RMB’000 RMB’000

NON-CURRENT LIABILITIES
Deferred income 34,971 27,263
Other liabilities 121 219

Total non-current liabilities 35,092 27,482

Net assets 3,174,297 2,920,192

EQUITY
Equity attributable to owners of the parent
Share capital 110,362 110,362
Reserves 2,415,475 2,221,885

2,525,837 2,332,247
Non-controlling interests 648,460 587,945

Total equity 3,174,297 2,920,192

6
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS

1. CORPORATE INFORMATION

The Company was incorporated in the Cayman Islands under the Companies Act as an
exempted company with limited liability on 23 June 2017. The registered office address of
the Company is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111,
Cayman Islands. The Company was listed on the Main Board of The Stock Exchange of
Hong Kong Limited (the “Stock Exchange”) on 18 June 2019.

The Company is an investment holding company. During the period, the Company and
its subsidiaries (collectively referred to as the “Group”) were principally engaged in the
provision of higher and secondary education services and the related management services
in the People’s Republic of China (the “PRC”).

2.1 BASIS OF PREPARATION

The unaudited interim condensed consolidated financial information for the six months
ended 30 June 2023 has been prepared in accordance with IAS 34 Interim Financial
Reporting . The unaudited interim condensed consolidated financial information does not
include all the information and disclosures required in the annual financial statements, and
should be read in conjunction with the Group’s annual consolidated financial statements for
the year ended 31 December 2022.

These financial statements are presented in Renminbi (“RMB”) and all values are rounded
to the nearest thousand except when otherwise indicated.

2.2 CHANGES IN ACCOUNTING POLICIES

The accounting policies adopted in the preparation of the unaudited interim condensed
consolidated financial information are consistent with those applied in the preparation of
the Group’s annual consolidated financial statements for the year ended 31 December 2022,
except for the adoption of the following new and revised International Financial Reporting
Standards (“IFRSs”) for the first time for the current period’s financial information.

IFRS 17 Insurance Contracts

Amendments to IFRS 17 Insurance Contracts
Amendment to IFRS 17 Initial Application of IFRS 17 and
IFRS 9 – Comparative Information
Amendments to IAS 1 and Disclosure of Accounting Policies
IFRS Practice Statement 2
Amendments to IAS 8 Definition of Accounting Estimates
Amendments to IAS 12 Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
Amendments to IAS 12 International Tax Reform – Pillar Two Model

7
The nature and impact of the new and revised IFRSs that are applicable to the Group are
described below:

(a) Amendments to IAS 1 require entities to disclose their material accounting policy
information rather than their significant accounting policies. Accounting policy
information is material if, when considered together with other information included
in an entity’s financial statements, it can reasonably be expected to influence decisions
that the primary users of general purpose financial statements make on the basis of
those financial statements. Amendments to IFRS Practice Statement 2 provide non-
mandatory guidance on how to apply the concept of materiality to accounting policy
disclosures. The Group has applied the amendments since 1 January 2023. The
amendments did not have any impact on the Group’s interim condensed consolidated
financial information but are expected to affect the accounting policy disclosures in the
Group’s annual consolidated financial statements.

(b) Amendments to IAS 8 clarify the distinction between changes in accounting estimates
and changes in accounting policies. Accounting estimates are defined as monetary
amounts in financial statements that are subject to measurement uncertainty. The
amendments also clarify how entities use measurement techniques and inputs to
develop accounting estimates. The Group has applied the amendments to change
in accounting policies and changes in accounting estimates that occur on or after 1
January 2023. Since the Group’s policy of determining accounting estimates aligns
with the amendments, the amendments did not have any impact on the financial
position or performance of the Group.

(c) Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a
Single Transaction narrow the scope of the initial recognition exception in IAS 12 so
that it no longer applies to transactions that give rise to equal taxable and deductible
temporary differences, such as leases and decommissioning obligations. Therefore,
entities are required to recognise a deferred tax asset (provided that sufficient taxable
profit is available) and a deferred tax liability for temporary differences arising from
these transactions. The Group has applied the amendments on temporary differences
related to leases as at 1 January 2022, with any cumulative effect recognised as
an adjustment to the balance of retained profits or other component of equity
as appropriate at that date. In addition, the Group has applied the amendments
prospectively to transactions other than leases that occurred on or after 1 January 2022,
if any.

Prior to the initial application of these amendments, the Group applied the initial
recognition exception and did not recognise a deferred tax asset and a deferred tax
liability for temporary differences for transactions related to leases. Upon initial
application of these amendments, the Group recognised (i) a deferred tax asset for
all deductible temporary differences associated with lease liabilities (provided that
sufficient taxable profit is available), and (ii) a deferred tax liability for all taxable
temporary differences associated with right-of-use assets as at 1 January 2022, if any.
The amendments did not have significant impact on the Group’s interim condensed
consolidated financial information.

8
 (d) Amendments to IAS 12 International Tax Reform – Pillar Two Model Rules introduce
a mandatory temporary exception from the recognition and disclosure of deferred
taxes arising from the implementation of the Pillar Two model rules published by the
Organisation for Economic Co-operation and Development. The amendments also
introduce disclosure requirements for the affected entities to help users of the financial
statements better understand the entities ’ exposure to Pillar Two income taxes,
including the disclosure of current tax related to Pillar Two income taxes separately
in the periods when Pillar Two legislation is effective and the disclosure of known
or reasonably estimable information of their exposure to Pillar Two income taxes in
periods in which the legislation is enacted or substantively enacted but not yet in effect.
Entities are required to disclose the information relating to their exposure to Pillar
Two income taxes in annual periods beginning on or after 1 January 2023, but are
not required to disclose such information for any interim periods ending on or before
31 December 2023. The Group has applied the amendment retrospectively. Since the
Group did not fall within the scope of the Pillar Two model rules, the amendments did
not have any impact to the Group.

3. OPERATING SEGMENT INFORMATION

The Group is principally engaged in the provision of higher and secondary education
services in the PRC.

IFRS 8 Operating Segments requires operating segments to be identified on the basis

of internal reporting about components of the Group that are regularly reviewed by the
chief operating decision-maker in order to allocate resources to segments and to assess
their performance. The information reported to the directors of the Company, who are the
chief operating decision makers, for the purpose of resource allocation and assessment
of performance does not contain discrete operating segment financial information and
the directors reviewed the financial results of the Group as a whole. Therefore, no further
information about the operating segment is presented.

Geographical information

During the reporting period, the Group operated within one geographical location because
all of its revenue was generated in the PRC and all of its long-term assets/capital expenditure
were located/incurred in the PRC. Accordingly, no geographical information is presented.

Information about major customers

No revenue from services provided to a single customer accounted to 10% or more of total
revenue of the Group during the reporting period.

9
4. REVENUE, OTHER INCOME AND GAINS

An analysis of revenue, other income and gains is as follows:

Six months ended 30 June

Notes 2023 2022
RMB’000 RMB’000
(Unaudited) (Unaudited)

Revenue
Tuition fees 397,010 342,375
Boarding fees 33,934 32,517
Other education service fees (i) 10,111 10,653

Total revenue from contracts with customers 441,055 385,545

Other income and gains

Interest income 23,238 13,453
Rental income 8,157 5,082
Government grants (ii)
– related to expenses 4,026 246
– related to assets 2,209 1,802
Donation income – 115
Others 1,759 1,628

39,389 22,326

Notes:

(i) Revenue from other education services mainly represents fees received for training services provided to
the students, which was amortised over the training periods of the services rendered.

(ii) Government grants are related to subsidies received from local government for the purpose of
compensating the operating expenses arising from the Group’s teaching activities and expenditures on
teaching facilities. There were no unfulfilled conditions or contingencies relating to these grants.

10
 The Group recognised the following revenue-related contract liabilities, which represented
the unsatisfied performance obligation as at 30 June 2023 and 31 December 2022 and are
expected to be recognised as revenue within one year:

As at As at
30 June 31 December
2023 2022
RMB’000 RMB’000
(Unaudited) (Audited)

Tuition fees 9,940 396,549

Boarding fees 5,834 39,529

Total contract liabilities 15,774 436,078

The Group receives tuition fees and boarding fees from students in advance prior to the
beginning of each academic year. Tuition and boarding fees are recognised proportionately
over the periods of the relevant programme. Students are entitled to the refund of payments
in relation to the proportionate services not yet rendered.

5. PROFIT BEFORE TAX

The Group’s profit before tax is arrived at after charging/(crediting):

Six months ended 30 June

Notes 2023 2022
RMB’000 RMB’000
(Unaudited) (Unaudited)

Employee benefit expense

(excluding directors’ remuneration) 106,898 91,644
Cost of services provided 146,254 136,357
Depreciation of property, plant and equipment 30,668 27,481
Depreciation of right-of-use assets 4,191 4,132
Amortisation of other intangible assets 776 775
Impairment of trade receivables 372 187
Interest income 4 (23,238) (13,453)
Government grants
– related to expenses 4 (4,026) (246)
– related to assets 4 (2,209) (1,802)
Loss on disposal of items of property,
plant and equipment 272 3
Foreign exchange differences, net (704) (740)

11
6. INCOME TAX

The Group is subject to income tax on an entity basis on profits arising in or derived from
the jurisdictions in which members of the Group are domiciled and operate.

The Company is incorporated in the Cayman Islands as an exempted company with limited
liability under the Companies Law of the Cayman Islands and accordingly is not subject to
income tax from business carried out in the Cayman Islands.

JH Educational Technology HK Limited and JH Investment (Hong Kong) Limited, the

subsidiaries incorporated in Hong Kong, are subject to income tax at the rate of 16.5%.
No provision for Hong Kong profits tax has been made as the Group did not generate any
assessable profits arising in Hong Kong during the period.

According to the decision (the “2016 Decision”) of the Standing Committee of the National
People’s Congress on Amending the Private Schools Promotion Law of the PRC (《全
國人民代表大會常務委員會關於修改 < 中華人民共和國民辦教育促進法 > 的決
定》), which was promulgated on 7 November 2016, and came into force on 1 September
2017, private schools are no longer being classified as either schools for which the school
sponsor(s) require reasonable returns or schools for which the school sponsor(s) do not
require reasonable returns. Instead, the school sponsor(s) of a private school may choose for
the school to be a for-profit private school or a non-profit private school, with the exception
that schools providing nine-year compulsory education must be non-profit.

On 14 May 2021, the State Council released the Implementation Rules for the Private
Schools Promotion Law of the PRC (《中 華 人 民 共 和 國 民 辦 教 育 促 進 法 實 施 條 例》)
with an effective date of 1 September 2021 (the “ 2021 Implementation Rules ” ). The
2021 Implementation Rules are the detailed implementation rules of the Private Schools
Promotion Law of the PRC. Pursuant to the 2016 Decision and the 2021 Implementation
Rules, a private school may enjoy the preferential tax policies, which are not defined under
neither the 2016 Decision nor the 2021 Implementation Rules, as stipulated by the related
government authorities and a non-profit school may enjoy the same tax policies as enjoyed
by a public school.

The local governments of Henan and Zhejiang, where the Group’s schools in the People’s
Republic of China (the “PRC Schools”) registered, have promulgated the implementation
opinions on encouraging private entities and individuals to operate schools and promote
healthy development of private education (the “ Local Implementation Opinions ” ),
according to which the Group ’s PRC Schools are required to complete classification
registration of the school as a for-profit private school or a non-profit private school by 31
December 2022. As at the date of approval of these financial statements, Zhengzhou College
of Economics and Business and Changzheng College have not yet registered as for-profit
private schools or non-profit private schools and remain as private non-enterprise units as
local governments have not started the work of registration.

12
During the period, Jingyi Secondary School has completed the registration to convert into
a for-profit private school to comply with the 2021 Implementation Rules. The Group has
established Jingyi Secondary School Company on 13 March 2023, as a for-profit private
school. Therefore, Jingyi Secondary School Company, which is running the for-profit private
school business, is subject to PRC corporate income tax at a rate of 25% from 2023 onward
if it does not enjoy any preferential tax treatment.

Considering that the relevant taxation policy regarding schools for which the school
sponsor(s) require reasonable returns or schools for which the school sponsor(s) do not
require reasonable returns remains unchanged and Zhengzhou College of Economics and
Business and Changzheng College remain as private non-enterprise units, Zhengzhou
College of Economics and Business and Changzheng Colleget treated their academic
education income as non-taxable income and did not pay corporate income tax for the
academic education income during the period. In the event Zhengzhou College of Economics
and Business and Changzheng College elect to register as for-profit private schools, they
may be subject to corporate income tax at a rate of 25% in respect of service fees they
receive from the provision of academic educational services going forward, if they do not
enjoy any preferential tax treatment.

Pursuant to the PRC Corporate Income Tax Law and the respective regulations, the non-
academic education services provided by the schools are subject to corporate income tax at a
rate of 25%.

Except for Zhengzhou College of Economics and Business and Changzheng College, all of
the Group’s subsidiaries established in the PRC were subject to corporate income tax at a
rate of 25% during the period.

Six months ended 30 June

2023 2022
RMB’000 RMB’000
(Unaudited) (Unaudited)

Current – Mainland China

Charge for the period 826 125
Under-provision in prior period – 1,232

Total tax charge for the period 826 1,357

13
7. DIVIDENDS

Six months ended 30 June

2023 2022
RMB’000 RMB’000
(Unaudited) (Unaudited)

Final dividend declared and paid – HK1.50 cents

(2022: nil) per ordinary share 21,602 –

Note:

The final dividend of HK1.50 cents per ordinary share in respect of the year ended 31 December 2022 was
approved by the shareholders at the annual general meeting of the Company on 19 May 2023. A total amount
of RMB21,602,000 has been fully distributed during the six months ended 30 June 2023.

No interim dividend was proposed for the six months ended 30 June 2023 and 2022.

8. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS

OF THE COMPANY

The calculation of the basic earnings per share amounts is based on the profit for the period
attributable to ordinary equity holders of the parent of RMB211,648,000 (six months ended
30 June 2022: RMB196,395,000), and the weighted average number of ordinary shares of
1,600,830,000 (six months ended 30 June 2022: 1,600,830,000) in issue during the period.

The Group had no potentially dilutive ordinary shares in issue during the six months ended
30 June 2023 and 2022.

The calculations of basic and diluted earnings per share are based on:

Six months ended 30 June

2023 2022
RMB’000 RMB’000
(Unaudited) (Unaudited)

Earnings
Profit attributable to ordinary equity holders of the parent,
used in the basic and diluted earnings per share
calculation 211,648 196,395

14
 Number of shares
Six months ended 30 June
2023 2022
(Unaudited) (Unaudited)

Shares
Weighted average number of ordinary shares in issue
during the period for the purpose of the basic earnings
per share calculation 1,600,830,000 1,600,830,000

Earnings per share attributable to ordinary equity holders

of the parent
Basic and diluted RMB13.22 cents RMB12.27 cents

9. TRADE RECEIVABLES

As at As at
30 June 31 December
2023 2022
RMB’000 RMB’000
(Unaudited) (Audited)

Tuition and boarding fees receivables 3,066 4,150

Impairment (2,775) (2,403)

291 1,747

The Group’s students are required to pay tuition fees and boarding fees in advance for the
upcoming school year, which normally commences in September. Trade receivables represent
amounts due from students whose families were in financial difficulties. The Group seeks
to maintain strict control over its outstanding receivables to minimise credit risk. Overdue
balances are reviewed regularly by senior management. In view of the aforementioned and
the fact that the Group’s trade receivables are related to a number of individual students,
there is no significant concentration of credit risk. The Group does not hold any collateral
or other credit enhancements over its trade receivable balances. Trade receivables are non-
interest-bearing are repayable on demand.

15
 An ageing analysis of the trade receivables as at the end of the period, based on the
transaction date and net of provisions, is as follows:

As at As at
30 June 31 December
2023 2022
RMB’000 RMB’000
(Unaudited) (Audited)

Within 1 year 236 1,612

1 to 2 years 53 118
2 to 3 years 1 15
Over 3 years 1 2

291 1,747

10. OTHER PAYABLES AND ACCRUALS

As at As at
30 June 31 December
2023 2022
RMB’000 RMB’000
(Unaudited) (Audited)

Payables for salaries and welfares 31,408 38,344

Miscellaneous advances received from students 22,162 29,510
Other tax payables 12,075 11,858
Receipt on behalf of ancillary services providers 10,996 2,987
Payables for textbooks 7,968 6,801
Payables for accommodation service 3,511 3,511
Payables for purchase of property, plant and equipment 2,683 6,284
Payables for north campus co-operation costs to
Zhongyuan University of Technology 2,151 2,793
Other payables 28,949 33,202

121,903 135,290

The above balances are unsecured, non-interest-bearing and repayable on demand.

16
MANAGEMENT DISCUSSION AND ANALYSIS

Business Review

Overview

We are the largest private provider of formal higher education in Zhejiang province and we are
also one of the leading private higher education institutions in Henan province. In addition to
offering higher education services, we provide secondary education services for high school
students in Zhejiang province.

Our major business operations are located in Zhejiang province and Henan province. Our two
higher education institutions are located in Hangzhou and Zhengzhou, which are the provincial
capital cities of Zhejiang province and Henan province, respectively. Zhejiang province is one of
the most economically active provinces in China. It attaches great importance to education and its
thriving economy is the main driving force for the private higher education market. The economy
in Henan province is developing rapidly at a higher growth rate than the average in China and
Henan province’s total revenue of private higher education is continuously growing noticeably.
However, Henan province ’s higher education enrollment rate significantly lags behind the
country’s average level and demand for higher education is expected to continue to increase. The
employment rates for graduates from our two higher education institutions have been consistently
higher than those of similar colleges in their respective provinces.

In recent years, the PRC Government has launched a series of favorable policies including the
Implementation of the Private Education Promotion Law of the People’s Republic of China in
September 2021, the release of the Guidelines on Promoting the High-quality Development
of Modern Vocational Education in October 2021, the pass of the newly amended Vocational
Education Law of the People’s Republic of China in April 2022, etc., to continue to support and
encourage the development of vocational education. The Group considers it will continue to
benefit from the favorable policies on vocational education in China.

Changzheng College

Changzheng College is a junior college located in Hangzhou, Zhejiang province, the PRC,
which provides formal junior college education. Changzheng College’s educational philosophy
is “ to maintain teaching quality, to improve management system, to distinguish with unique
characteristics, and to empower by talent ”（ 品 質 立 校、制 度 治 校、特 色 興 校、人 才 強 校）.
Its educational goal is to build a high level private higher education institution. The school
has teaching buildings, experimental training buildings, a library, a gymnasium and student
dormitories, among other school facilities. The 2022 admission program of Changzheng College
ranked No. 1 among student enrollment programs of private junior colleges in Zhejiang province.

17
Distinctive majors

Changzheng College currently has eight faculties, namely finance and accounting, commerce and
trade, management, humanities and education, computer and information technology, construction
engineering, smart technology and nursing and health. In addition, it has two teaching departments,
namely basic course teaching department, and ideological and political theory teaching
department. The school offers 38 majors across eight key subject categories. These categories are
financial accounting, business and trade, operation and management, applied linguistics, computer
information, intelligent technologies, construction and engineering management, and nursing and
health. The majors include big data and accounting, construction and engineering management,
software technology, international economics and trade, human resource management, and
business English. Among the majors offered by Changzheng College:

• the e-commerce vocational education training base has been supported financially by the
PRC central government;

• the financial accounting training base has been identified by the provincial government of
Zhejiang province as a model training base;

• the international economics and trade major is a key major recognized by the Ministry of
Education of the PRC and a provincial specialty major;

• the big data and accounting, statistics and accounting, industrial and commercial enterprise
management and e-commerce majors are provincial-level specialty majors; and

• the cross-border e-commerce major cluster (including five majors, being international
economics and trade, cross-border e-commerce, business English, e-commerce and modern
logistics management) is a major cluster planned for high-quality development in Zhejiang
province.

Training bases

Changzheng College has seven on-campus training bases, including training base for financial and
accounting of small and micro enterprises, e-commerce training base, cross-border e-commerce
training base, open training base for robot applications of small and medium enterprises, network
information training base, comprehensive training base for service and management of medium,
small and micro enterprises, applied linguistics training base, engineering management training
base, public computer centers and multi-media technology centers and has 133 on-campus
practical training rooms.

18
College-enterprise co-operation

Changzheng College considers reforms and innovations as its driving force to strengthening
the development of the students’ potentials and social service skills and improving its overall
education and teaching quality in order to cultivate high-quality technical and skilled personnel
who can adapt to regional economic and social development. Changzheng College has:

• established off-campus practice and training bases with 328 enterprises, public institutions
and associations including Alibaba, Zhejiang Geely Holding Group Co., Ltd., Zhejiang
Sanjian Construction Group Co., Ltd., Guosen Securities Co., Ltd., Hangzhou Hanggang
Metro Co., Ltd., Zhejiang SF Express Co., Ltd. and Zhejiang Merchants Museum, etc;

• cooperated with 14 enterprises including Hangzhou Cross-border E-commerce Industrial

Park and Alibaba Haibo, etc in training modern talents with apprenticeship;

• worked with Dajiangdong Industrial Cluster in training skilled talents in industrial robot
technology and automotive electronics application technology; and

• cooperated with Dream Town affiliated enterprises in training innovative and entrepreneurial
talents.

The school is among the second batch of modern apprenticeship pilot units in Zhejiang province
and a vice chairman unit of the Geely Automobile Smart Manufacturing Industry-Education
Integration Alliance. In addition, Hangzhou Jiande (West Zhejiang) Cross-border E-commerce
Industrial Park has become a “cross-border e-commerce talent training model park of Zhejiang
Changzheng Vocational & Technical College”.

College of Economics and Business

College of Economics & Business is a wholly-privately owned undergraduate college located in

Zhengzhou, Henan province, the PRC, which provides formal undergraduate education and junior
college education. The educational philosophy of College of Economics and Business is “to focus
on service as the principle and employment as the guidance, use special characteristics to create
brand and quality to seek development”（ 以服務為宗旨，以就業為導向，以特色創品牌，以品
質謀發展）. College of Economics and Business has teaching buildings, administrative buildings,
experimental training buildings, a library, gymnasiums, indoor and outdoor sports facilities and
student dormitories, among other school facilities. The 2022 undergraduate admission program
(excluding undergraduate-oriented junior college program) of College of Economics and Business
ranked No. 7 among the undergraduate enrollment programs of private undergraduate colleges in
Henan province.

19
Distinctive disciplines and majors

The disciplines of College of Economics and Business cover six key subject areas, comprising
management, economics, engineering, arts, literature and law. It has 12 faculties and one
department, covering 46 majors in the undergraduate program (including accounting, mechanical
design, manufacturing and automation, architecture and computer and technology) and 29 majors
in the junior college program (including big data and accounting, project costing, computer
application technology, and fashion and apparel design). Among the disciplines and majors offered
by College of Economics and Business, there are:

• three provincial level key development disciplines (mechanical design, manufacturing and
automation, control theory and control engineering, and business management);

• six provincial first-class majors (financial management, fashion and apparel design,
computer science and technology, accounting, marketing and TV & Radio Broadcasting);

• two provincial level experiential education and demonstration centers (integrated experiential
education center for fashion and textile design, and experiential education center for
economic management);

• three modelling established majors of virtual simulation experiential education in Henan

province (virtual simulation experiment of fashion and textile design, virtual simulation
experiment of enterprise investment and financing decision-making and virtual simulation of
inventory taking);

• nine provincial private higher education branded majors (building environment and energy
application engineering, fashion and apparel design, marketing, electrical engineering and
automation, accounting, financial management, international economics and trade, e-commerce,
broadcasting and television); and

• four pilot majors under the provincial comprehensive major reform (accounting, information
management and information system, fashion and apparel design and English).

College-enterprise co-operation

College of Economics and Business is proactive in introducing high-quality resources of industrial

enterprises to carry out college-enterprise cooperation. The College of Economics and Business
has:

• established college-government-enterprise cooperation with Shanghai Minhang District

Investment Promotion Service Center, Hangzhou Lin’an District Bureau of Commerce and
the Human Resources and Social Security Bureau of Kunshan Economic and Technological
Development Zone;

• set up high-quality off-campus practice bases with over 200 enterprises including Xinzheng
International Airport, Henan Xiangrong Media Group Co., Ltd., YTO Group Corporation,
China (Hangzhou) Cross-border E-commerce Comprehensive Pilot Zone (Lin’an Park),
ABDAS Space Information Technology Co., Ltd., Beijing Ocean Airlines Service Co., Ltd.,
Dongguan Yishion Group Co., Ltd. and Sichuan Yixin Industrial Co., Ltd., etc; and

20
• co-operated with enterprises to offer more than 20 experimental classes with integration
of industry and education and collaborative education by college and enterprises including
“Cross-border E-commerce”, “Fund Manager”, “Muyuan Group”, “Fengrun Group” and
“Handian Group”.

College of Economics and Business also introduced a number of enterprises to carry out
practical training in the campus. It continued to explore the construction of industrial schools and
comprehensively promoted college-enterprise cooperation in order to improve the development
level of application-based majors and strengthen its application-based talent training quality and
the competitiveness of its students in employment.

Jingyi Secondary School

Jingyi Secondary School is located in Wenzhou, Zhejiang province, the PRC, and mainly focuses
on providing non-compulsory private education for high school students. The school’s educational
goals are to “teach students to learn, to be human, to be happy, and to help them get into the
ideal college”（ 教 會 學 生 學 習，教 會 學 生 做 人，教 會 學 生 快 樂，讓 學 生 考 上 自 己 理 想 的
大 學）. Jingyi Secondary School has teaching buildings, a science and technology building, an
administrative building, canteens and student dormitories. It also has numerous sporting facilities,
such as outdoor track and field, to encourage students to participate in physical activities in order
to improve their health. To further stimulate students’ interest in learning and to create a conducive
educational environment, Jingyi Secondary School has numerous multimedia rooms, laboratories
and computer rooms, to provide students with visual, audio and hands-on practical training.
The core curriculum is generally designed with reference to the ordinary high school curricular
standards formulated by the Zhejiang education authorities. In accordance with the curriculum
requirements of the Zhejiang Department of Education, Jingyi Secondary School currently offers
13 main courses in Chinese, mathematics, English (while a small number of students study
Japanese), technology, politics, history, geography, physics, chemistry, biology, sports, arts and
music. Among them, Chinese, mathematics, English, technology, politics, history, geography,
physics, chemistry and biology are 10 courses that are part of Zhejiang academic proficiency
examinations. Chinese, mathematics and English are required subjects in Gaokao while 3 of the
7 courses in technology, politics, history, geography, physics, chemistry and biology are elective
courses in Gaokao.

The Group has completed the registration to convert Jingyi Secondary School into a for-profit
private school to comply with the Implementation Rules for the Private Schools Promotion Law
of the PRC (《中 華 人 民 共 和 國 民 辦 教 育 促 進 法 實 施 條 例》) with an effective date of 1
September 2021 (the “2021 Implementation Rules”), and has started the conversion process and
established Jingyi Secondary School Company in March 2023, as a for-profit private school. The
conversion process includes but not limited to transferring all the assets and liabilities of Jingyi
Secondary School to Jingyi Secondary School Company, applying for private school operating
permit for Jingyi Secondary School Company and de-registration of Jingyi Secondary School.
Jingyi Secondary School Company has obtained the relevant private school operating permit
during the Period.

21
Our Teaching Staff

We believe the quality of our teachers is one of the most vital factors affecting our educational
quality and future growth and success. Before hiring each teacher, we usually consider his or her
education background and/or performance in the interview. We prefer to recruit teachers who: (i)
have sufficient prior teaching experience or teaching track record; (ii) are dedicated to teaching
and improving students ’ academic performance and practical skills; (iii) demonstrate strong
command of their subject areas; (iv) can effectively implement tailored teaching methods; and (v)
possess strong communication, language and interpersonal skills. We also prefer to recruit teachers
who have master’s degree or above, and for certain practical/vocational subjects, those that hold
relevant professional and/or technical qualifications. As of 30 June 2023, approximately 99.0% of
our teachers had a bachelor’s degree or above, and approximately 71.8% of them had a master’s
degree or above.

Tuition Fees and Boarding Fees

We typically charge our students fees comprising tuition fees and boarding fees. The school year
for Changzheng College and College of Economics and Business is generally from September of
the current year to August of the following year, whereas the school year for Jingyi Secondary
School is usually from August of the current year to July of the following year. In general, tuition
fees and boarding fees for each school year are paid in advance prior to the start of each school
year and we recognize revenue proportionately over the relevant period of the school program.

Number of Students

The following table sets forth information relating to the number of students by school:

As at 30 June
Number of Students
School name 2023 2022

College of Economics and Business 32,677 27,791

Changzheng College 19,082 16,261
Jingyi Secondary School (Note) 1,188 1,172

Note: Includes students attend training programs provided by Yueqing Jiayan Educational Technology Co., Ltd.

22
Average Tuition Fees and Average Boarding Fees

Average tuition fees and average boarding fees by school for the periods indicated are set out
below:

For the six months ended 30 June

Average tuition fees Average boarding fees
School name 2023 2022 2023 2022
(RMB) (RMB) (RMB) (RMB)

College of Economics and Business 7,445 7,366 666 718

Changzheng College (Note 1)
7,748 8,160 (Note 2)
848 916
Jingyi Secondary School 9,953 10,342 423 466

Note 1: Number of school days for revenue recognition decreased as compared to the same period in 2022 due to the
difference of winter break commencement dates. Therefore, average tuition fee during the Period was lower
as compared to the same period in 2022.

Note 2: Starting from the 2022/2023 school year, Changzheng College adopts two plus one and one plus one teaching
models, students can choose not to live on campus during the final internship year. Therefore, average
boarding fee dropped.

Future Prospects

We intend to solidify our position as the largest private provider of formal higher education in
Zhejiang province focusing on nurturing professional talent. We intend to leverage our operating
experience in Henan province to further expand our school network in the PRC and overseas with
the proceeds from the listing of the Company’s shares on The Stock Exchange of Hong Kong
Limited (the “Stock Exchange”) and the internal fund generated from our operation. To achieve
this goal, we plan to pursue the following business strategies:

1. Expand our business operations and school network to achieve economies of scale

• We plan to establish a new campus of Changzheng College. On 11 October 2016,

we entered into a framework agreement with Hangzhou East River Industrial Cluster
Management Committee（ 杭 州 大 江 東 產 業 集 聚 區 管 委 會）, an independent third
party, pursuant to which the parties agreed to establish a new campus of Changzheng
College with an aggregate expected enrollment of not less than 5,000 students.

• We plan to establish a new campus of College of Economics and Business in Kaifeng,

Henan province, that will primarily offer undergraduate courses. The estimated student
capacity is approximately 15,000 students.

23
2. Acquisitions

• We plan to acquire or invest in schools that offer higher education with relatively low
utilization rates and/or have substantial growth potential in the PRC. We prefer to
acquire qualified undergraduate colleges and/or junior colleges whose school sponsors
have elected them to be for-profit private schools in central China, eastern China and
southern China.

3. Establish a new school overseas

• We plan to establish a degree-granting higher education institution in California,

the United States (the “California School”) to offer programs relating to business
administration and international business. We have engaged an agent who has
experience in post-secondary education to assist us in establishing the California
School in California and filing applications with the California Bureau for Private
Postsecondary Education regarding the establishment of a higher education institution
in California.

4. Enhance our profitability by optimizing our pricing strategies

• The tuition fees and boarding fees we charge are significant factors affecting our
profitability. Due to the increase of our brand awareness and market recognition, we
believe we are in a good position to further optimize our pricing without compromising
our reputation and our ability to attract and retain students.

Financial Review

Overview

Revenue

The Group’s revenue primarily represents income derived from tuition fee and boarding fee for
education services provided in the Group’s schools located in China. Our revenue increased by
14% from RMB385.5 million for the six months ended 30 June 2022 to RMB441.1 million for the
six months ended 30 June 2023, which was primarily due to the growths in tuition fee income and
boarding fee income, as a result of the increase in student enrollment quota.

Cost of Sales

Cost of sales mainly includes staff costs, depreciation and amortization, maintenance and other
education services costs for education services provided in the Group’s schools. Cost of sales
increased by approximately RMB9.9 million from RMB136.4 million for the six months ended 30
June 2022 to RMB146.3 million for the Period, mainly due to the increases in staff costs, student
activity costs and depreciation costs. Such increase was partially offset by the decrease in school
co-operating cost.

24
Gross Profit

Gross profit increased by 18% from RMB249.2 million for the six months ended 30 June 2022
to RMB294.8 million for the Period. The increase in gross profit was generally, in line with the
increase in revenue.

Other Income and Gains

Other income and gains mainly consists of interest income, rental income and government grants.
Other income and gains increased by approximately RMB17.1 million from RMB22.3 million
for the six months ended 30 June 2022 to RMB39.4 million for the Period mainly due to overall
increases in interest income, government grants and rental income.

Selling and Distribution Expenses

Selling and distribution expenses mainly represents advertising and other expenses incurred for
student enrollment. Selling and distribution expenses decreased by RMB0.5 million from RMB2.6
million for the six months ended 30 June 2022 to RMB2.1 million for the Period.

Administrative Expenses

Administrative expenses primarily consist of staff costs, depreciation and amortization and other
office expenses. Administrative expenses increased by RMB11.3 million from RMB19.6 million
for the six months ended 30 June 2022 to RMB30.9 million for the Period. The increase was
mainly due to the increase in staff costs included in administrative expenses as well as the increase
in depreciation expenses during the Period.

Other Expenses

Other expenses for the Period mainly represent costs for the conversion of Jingyi Secondary
School into a for-profit private school and other non-recurring expenses. Other expenses increased
by RMB27.7 million from RMB0.4 million for the six months ended 30 June 2022 to RMB28.1
million for the Period. The increase was mainly due to the costs incurred for the conversion of
Jingyi Secondary School into a for-profit private school during the Period.

Finance Costs

Finance costs for the Period primarily represent interest on lease commitment. The balances for
the six months ended 30 June 2022 and the Period were RMB12,000 and RMB4,000, respectively.

Profit before Tax

As a result of the foregoing, profit before tax for the Period was approximately RMB273.0 million,
representing an increase of 10% from that for the six months ended 30 June 2022.

25
Income Tax Expense

Income tax expense decreased from RMB1.4 million for the six months ended 30 June 2022
to RMB0.8 million for the Period primarily due to adjustment made for tax under-provision in
previous period.

Profit for the Period

As a result of the foregoing, the Group recorded a profit of approximately RMB272.2 million for
the Period, while the profit for the six months ended 30 June 2022 was approximately RMB247.6
million, representing an increase of approximately 10%.

Profit Attributable to Owners of the Company

For the six months ended 30 June 2023, the profit attributable to owners of the Company amounted
to approximately RMB211.6 million, representing an increase of approximately 8% as compared
to that for six months ended 30 June 2022.

Core Net Profit

The Group’s core net profit does not represent its profit for the Period after the adjustment of
the Group’s operating performance (as presented in the table below), and is not an International
Financial Reporting Standards measure. The Group has presented this item because the Group
considers it as an important supplemental measure of the Group’s operational performance used by
the Group’s management, analysts and investors. The following table reconciles from profit for the
period to core net profit for the periods presented:

For the six months ended

30 June
2023 2022
RMB’000 RMB’000
(Unaudited) (Unaudited)

Profit for the period 272,163 247,575

Less:
Exchange gain 704 740
Add:
Amortisation of fixed assets and intangible assets arising
from the acquisition of College of Economics and Business 2,735 2,759

Core net profit 274,194 249,594

26
Finance and Liquidity Position

Net Current Assets

As at 30 June 2023, net current assets amounted to approximately RMB1,220.0 million (31
December 2022: RMB940.1 million). The increase in net current assets of approximately
RMB279.9 million was mainly due to impacts of the decrease in contract liabilities of
approximately RMB420.3 million as most of the prepaid tuitions and accommodation fees had
been recognized as revenue during the Period; and the decrease in cash and cash equivalents of
RMB198.1 million.

Liquidity and Capital Resources

The Group had cash and cash equivalents of RMB1,302.8 million as at 30 June 2023 (31
December 2022: RMB1,500.9 million). Cash and cash equivalents decreased by RMB198.1
million during the Period mainly caused by the (i) net cash outflows used in operating activities
amounted to approximately RMB127.0 million; (ii) expenditures in fixed asset additions and other
assets amounted to approximately RMB21.4 million; and (iii) dividend payments of RMB21.6
million.

The Group’s use of cash is primarily related to operating activities and capital expenditure. The
Group finances its operations mainly through cash flows generated from operations. The Group
had no bank borrowings as at 30 June 2023 and 31 December 2022. The Board confirmed that
the Group did not experience any difficulties in obtaining bank loans, default on outstanding bank
loan repayments or breach of covenants during the Period.

Indebtedness and Gearing Ratio

There was no gearing ratio as at 30 June 2023 and 31 December 2022 as the Group had no bank
loan and other borrowings.

Capital Expenditures

For the six months ended 30 June 2023, the Group’s capital expenditures were RMB21.4 million
(six months ended 30 June 2022: RMB238.7 million), which mainly comprise additions and
replacements of teaching equipment, furniture & fixtures, motor vehicles and other fixed assets
during the Period.

Contingent Liabilities

Save as disclosed in this interim results announcement, as at 30 June 2023, the Group did not have
any unrecorded significant contingent liabilities, or any material litigation against the Group (31
December 2022: nil).

27
Foreign Exchange Exposure

Most of the Group’s gains and losses are denominated in RMB. As at 30 June 2023, several bank
balances were denominated in US Dollars or Hong Kong Dollars (“HK$”). The Group currently
does not have any foreign exchange hedging policy. The management will continue to monitor the
Group’s foreign exchange risk and consider adopting discreet measures as and when appropriate.

Charge on Group Assets

As at 30 June 2023, the Group did not have any charges on its assets (31 December 2022: nil).

Employee and Remuneration Policy

As at 30 June 2023, the Group had 2,284 employees (31 December 2022: 1,970). The total
employee benefit expense (excluding directors’ remuneration) for the six months ended 30 June
2023 amounted to approximately RMB106.9 million. Remuneration of the Group’s employees is
determined based on their performance and experience as well as prevailing industry practices,
and all remuneration policies and packages are regularly reviewed. As required by PRC laws and
regulations, the Group participate in various employee social security plans for our employees
that are administered by local governments, including housing provident fund, pension, medical
insurance, maternity insurance, work-related injury insurance and unemployment insurance. We
believe we maintained a good working relationship with our employees and did not experience
any material labor disputes. Directors and the senior management can also buy options pursuant
to the share option scheme adopted by the Company on 30 May 2019. The purpose of the scheme
is to give the eligible persons an opportunity to have a personal stake in the Company and help
motivate them to optimize their future contributions to the Group and/or to reward them for their
past contributions, to attract and retain or otherwise maintain on-going relationships with such
eligible persons who are significant to and/or whose contributions are or will be beneficial to the
performance, growth or success of the Group. In addition, the Group offers comprehensive training
to existing and new employees and/or funds employees to participate in various occupational
training courses.

Significant Investments, Material Acquisition and Disposal

The Group did not have any other plans regarding material investment and asset acquisition
or disposal during the Reporting Period other than those disclosed in this interim results
announcement.

Events After the Reporting Period

There is no material events subsequent to 30 June 2023 which would materially affect the Group’s
operating and financial performance as of the date of this interim results announcement.

28
CORPORATE GOVERNANCE AND OTHER INFORMATION

Compliance with the Code on Corporate Governance Practices

The Group is committed to maintaining high standards of corporate governance to safeguard the
interests of shareholders and strengthen corporate value and accountability. The Company has
adopted all code provisions of the Corporate Governance Code (the “Corporate Governance
Code”) contained in Part 2 of Appendix 14 of Rules Governing the Listing of Securities on the
Stock Exchange (the “Listing Rules”).

The Company devotes to the best practices on corporate governance, and has complied with the
code provisions of the Corporate Governance Code during the Reporting Period, except for the
following deviation.

Pursuant to code provision C.2.1 of Part 2 of the Corporate Governance Code, the roles of
chairman of the Board (the “Chairman”) and chief executive officer (the “CEO”) should be
separated and should not be performed by the same individual. The division of responsibilities
between the Chairman and the CEO should be clearly established and set out in writing.

Mr. Chen Yuguo is the Chairman and the CEO of the Company. As Mr. Chen Yuguo has been
managing the Group’s business and overall strategic planning since its establishment, the directors
of the Company (the “Directors”) consider that the vesting of the roles of Chairman and CEO in
Mr. Chen Yuguo is beneficial to the business prospects and management of the Group by ensuring
consistent leadership within the Group, aligning the directions and approaches on the board level
and execution level and enabling more effective and efficient overall strategic planning for the
Group. The Board considers that the balance of power and authority for the present arrangement
will not be impaired and this structure will enable the Company to make and implement decisions
promptly and effectively. Accordingly, the Company had not segregated the roles of its Chairman
and CEO.

Model Code for Securities Transactions

The Company has adopted Appendix 10 Model Code for Securities Transactions by Directors of
Listed Issuers (the “Model Code”) contained in the Listing Rules as a code of conduct regarding
securities transactions by Directors. After making specific enquiries with all Directors, all
Directors confirmed that they complied with the standards set out in the Model Code during the
Reporting Period.

Interim Dividend

The Board did not recommend the payment of an interim dividend for the six months ended 30
June 2023 (six months ended 30 June 2022: nil).

Audit Committee

The Board has established the audit committee (the “Audit Committee”), which consists of three
independent non-executive Directors, namely Mr. Fung Nam Shan (Chairman), Ms. Bi Hui and
Mr. Wang Yuqing. The primary responsibility of the Audit Committee is to review and supervise
the financial reporting process and internal control of the Company.

29
The Audit Committee, together with the management, has reviewed the unaudited interim results
of the Group for the six months ended 30 June 2023, this interim results announcement and the
accounting treatment adopted by the Group.

Purchase, Sale or Redemption of the Company’s Listed Securities

Neither the Company nor any of its subsidiaries purchased, sold or redeemed any listed securities
of the Company during the Reporting Period.

Use of Proceeds from the Initial Public Offering of the Company

The net proceeds from the initial public offering of the Company (net of underwriting fees and
relevant expenses) amounted to approximately HK$524 million (equivalent to RMB461 million).
The net proceeds will be applied in the following manners:

Amount
Utilized Amount
% of as of Utilized Expected Time of
the Net Proceeds 31 December during Unutilized Full Utilization of
Use of Proceeds Proceeds Allocated 2022 the Period Balance Unutilized Balance
(RMB (RMB (RMB (RMB
million) million) million) million)

– Expansion of our school network,

through the acquisition of other
schools 50% 231 – – 231 31 December 2024
– Expansion of our business, including
establishing new campuses of
College of Economics and Business
and Changzheng College 40% 184 – – 184 31 December 2024
– Working capital and general corporate
purposes 10% 46 46 – –

Total 100% 461 46 – 415

30
Publication of Interim Results Announcement and Interim Report

This interim results announcement is published on the website of the Stock Exchange at
www.hkexnews.hk and website of the Company at www.jheduchina.com, respectively. The interim
report of the Company for the six months ended 30 June 2023 containing all the information
required by the Listing Rules will be dispatched to the shareholders of the Company and published
on the above websites in due course.

By order of the Board

JH Educational Technology INC.
Chen Yuguo
Chairman

Zhejiang, the PRC, 30 August 2023

As at the date of this announcement, the executive Directors of the Company are Mr. Chen Yuguo,
Mr. Chen Yuchun, Mr. Chen Shu, Mr. Chen Nansun and Mr. Chen Lingfeng; the non-executive
Director is Ms. Zhang Xuli; and the independent non-executive Directors are Ms. Bi Hui, Mr.
Fung Nam Shan and Mr. Wang Yuqing.

31