Neusoft Education announced its annual performance report for 2022

Driven by the positive impact of digitalization and empowering intelligent education with technology

HONG KONG, March 29, 2023 /PRNewswire/ -- The Board of Directors of Neusoft Education Technology Co. Limited (hereinafter referred to as "Neusoft Education" or "the Company"; Stock code: 9616.HK) is pleased to announce the audited comprehensive performance for the year ended December 31, 2022.

In 2022, Neusoft Education continued to pursue a high-quality, connotation-based development strategy and accelerated the construction of its "4S" characteristic product service model, achieving fruitful results. The company's operating performance steadily improved, with revenues reaching approximately RMB 1,548.4 million, a year-on-year increase of 13.6% and gross profits reaching approximately RMB 666.7 million, a year-on-year increase of 12.7%, with a gross profit margin of 43.1%.The company's net profit for the year was RMB 385.4 million, a year-on-year increase of 28.0%. Adjusted net profit attributable to shareholders was approximately RMB 380.6 million, a year-on-year increase of 23.0%.Basic earnings per share were RMB 0.59, a year-on-year increase of 37.2%, and proposed dividends per share were HKD 0.165, a year-on-year increase of 17.0%.

Brand reputation on the rise

Comprehensive strength in educational attainment widely recognized

The three universities operated by Neusoft Education in Dalian, Chengdu, and Guangdong have been widely recognized by students, parents, and society for their high-quality education. In the 2022-2023 academic year, the number of new students enrolled in the three universities exceeded 17,000, an increase of 17% compared to the previous year, and the number of current students in the three universities exceeded 50,000, setting a new historical record. According to third-party data, up to now, the average salary of Neusoft Education graduates has steadily increased, and the employment rate of each university has been higher than the national average for non-"Double-First Class" universities.

During the reporting period, the three universities added four national-level and four provincial-level first-class undergraduate program construction sites. A total of 25 first-class undergraduate program construction sites have been approved, including 8 national-level construction sites, with Dalian University having seven national-level construction sites, leading the way among private universities in China. This has laid a solid foundation for the sharing and output of Neusoft Education's high-quality educational resources.

Empowering smart education with technology

Continuing to expand the business in educational resource output

With a focus on enabling smart education with technology, Neusoft Education uses its reliable big data platform to digitize, productize, and platformize the advanced educational concepts, models, systems, and standards that have been validated through practice at the three universities. It continues to create a systematic educational product and teaching resource covering multiple dimensions and has built a comprehensive "4S" product service system that includes Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), Content-as-a-Service (CaaS), and Data-as-a-Service (DaaS), providing powerful support for educational reform and innovation in partner universities and expanding its educational resource output business.

In 2022, the company's smart education platform, teaching content, and experimental training laboratories generated revenues of approximately RMB 82 million, a 19% increase compared to the same period in 2021, achieving new heights in product sales.

In addition, in 2022, the company established cooperative partnerships with 69 universities to co-build industrial colleges and majors, covering nearly 25,000 students and generating revenues of approximately RMB 80 million, a year-on-year increase of 54%. Moreover, the company signed co-construction agreements with eight new universities for industrial colleges or majors, planning to launch cooperation in the new academic year, achieving comprehensive breakthroughs.

Building a distinctive continuing education system

Establishing a good reputation in the IT training industry

Neusoft Education continued to improve its continuing education system with "quality-based, open and shared, online and offline integrated" feature in 2022, empowering individual learners and organizational continuous development.

By the end of 2022, the company had obtained 19 national-level, 18 provincial-level, and 26 municipal-level training qualifications. The company continued to optimize and upgrade the "Neusoft Education Online" platform, offering more than 400 courses focusing on individual user certification and Internet + online learning platform projects for institutional users. In 2022, the company also launched the professional channel " Neusoft IT Cloud Academy" to provide IT vocational skill training services for individual learners, with 130 course products and 10 transformed primary industry projects.

In the context of the scattered outbreak of the epidemic in 2022, the company continued to expand its market share in continuing education and enhance its brand influence. And its online and offline integrated delivery method had been widely recognized by customers. In terms of B2B training, the company implemented 112 training projects for 43 institutions, serving nearly 8,000 students and generating revenues of approximately RMB 26 million. In terms of B2C training, the company provided skill training services for more than 14,000 learners, generating revenues of approximately RMB 49 million.

With the country's strong push for the development of the digital economy and further deepening the reform of modern vocational education system construction and promoting education digital transformation, facing vast market demands, Neusoft Education will take improving quality and promoting excellence as the main line, increase investment in research and development, continue to strengthen its educational attainment, expand its educational resource output and continuing education services, and consolidate its leading position in the field of digital talent education services. This will provide momentum for the company's sustained development and education empowerment and cultivate more high-quality digital talents for the development of the digital economy.