Business Revie

Through its cooperation with overseas institutions, Huashang College offered 34 bachelor’s degree programmes and abundant international courses in the 2018/2019 school year. As of 31 August 2019, the top 5 majors (in terms of student enrolment) were accounting, English, international economics and trade, financial engineering and Chinese literature. Among them, accounting was designated as a “featured key disciplines in Guangdong Province” (“廣東省特色重點學科”)and journalism was designated as a“key development disciplines of colleges in Guangdong Province” (“廣東省高校重點培育學科”) . In September 2016, Huashang College also cooperated with Guangdong Association of Management Accountants to launch the first bilingual programme(“GAMA class”). For the year ended 31 August 2019, its total number of students was 22,665. For the 2018/2019 school year, the initial employment rate of Huashang College graduates was 97.4%, being 4.0% higher than the average level of initial employment rate recorded by graduates of the general higher education sector in Guangdong Province as well as ranking No.1 among the independent colleges in Guangdong Province.

Huashang Vocational College is a full-time, higher vocational college approved by Guangdong Province Government and recognized by the Ministry of Education, which offers 32 junior college diploma programmes for the 2018/2019 school year. As of 31 August 2019, the school’s top five majors in terms of student enrolment were accounting, electronic commerce, business English, internet technology, and marketing. Huashang Vocational College has two affiliated colleges, Huashang Auto Engineering School and Huashang Hospitality Management School, which were established in May 2015 and September 2014, respectively. As of 31 August 2019, Huashang Auto Engineering School had a total of 331 students and Huashang Hospitality Management School had a total of 469 students. Tourism and hotel management was designated as a “key disciplines” (“重點建設學科”)in Huashang Hospitality Management School by Department of Education of Guangdong Province in 2014. For the year ended 31 August 2019, the total number of students in Huashang Vocational College was 9,541. In the 2018/2019 school year, the initial employment rate of Huashang Vocational College graduates was 97.7%, being 1.6% higher than the average level of initial employment rate recorded by graduates of the general higher education sector in Guangdong Province as well as ranking No.4 among private vocational colleges in Guangdong Province.

GBCA is a vocational education and training organization recognised by Australian Skills Quality Authority (“ASQA”) and is committed to providing a multicultural academic platform for students from both Australia and abroad, aiming to improve students’ practical skills and graduate employability. GBCA currently offers 15 training programmes that are divided into five main categories: interpreting, English, business and accounting, information technology and childcare and community services programmes. Students will receive certifications issued by GBCA which are recognised or endorsed by relevant training agencies, such as the National Accreditation Authority for Translators and Interpreters, or a diploma or advanced diploma upon completing all courses required by the respective programmes. GBCA currently cooperates with six enterprises to provide internship programmes and trainings for its students. For the year ended 31 August 2019, its total number of students was 837.

Outlook

The Group will increase its investment in existing campuses and teaching facilities at Huashang College and Huashang Vocational College to further improve the overall environment of its campuses in Zengcheng District. The Group plans to build a Science & Technology Centre and an International Conference Centre at its Zengcheng campus to satisfy the expansion needs of the schools in the next few years. The Science & Technology Centre, with a total GFA of approximately 69,000 sq.m. and estimated capital expenditure amounting to approximately RMB200 million, will be used for education activities. With a total GFA of approximately 28,000 sq.m. and estimated capital expenditure amounting to approximately RMB75 million, the International Conference Centre will be used to host industry meetings, seminars, academic activities and practical training.

In order to keep in line with the development of society, the Group continues to optimize disciplines and offers diversified education services, while students can earn a lot. In addition, the Group plans to launch business in Shenzhen, the purpose being to serve as the base for innovation entrepreneurship and Fintech and other vocational training. In addition, the Group is considering acquiring new schools in the Pan-Pearl River Delta area, where is economically robust and developed with a strong demand for quality private high education schools as well as education institutions with great development potential in other regions of China. The Group is in the process of study and negotiation of prospective projects. All plans are under steady progress. The Group will disclose the details of merger and acquisition to the public in due course.

In addition to GBCA, the Group will follow the asset-light model and launch new campuses in Singapore and London, as a way of expanding its overseas network. To accelerate its overseas expansion, the Group will also take M&A of targeted institutions into consideration. The Group’s overseas expansion has been supported massively by students and their parents. The building-up of an overseas network will not only offer more options of destination to those who wish to study abroad, but also help students to gain international exposure and improve their language capability.

Taking advantage of the Group’s rich experience in operating schools and its understandings of the education industry, the Group officially kicked off its Smart Campus project in 2015 and launched an online APP, Huashang e-Home, which combined marketing, smart service, talent training, platform for start-ups by students, export of successful cases of operational management, and income generation. As of 31 August 2019, Huashang e-Home has over 220,000 real-name users with an average daily active user (“DAU”) of 24,000. Until now, 572 services were launched accumulatively to serve more than 1,000,000 people. In the future, the Group will Focus on the “5A” intelligence innovative entrepreneurship stage of colleges. Based on the talent cultivation with internet model, break the innovative entrepreneurship ecosystem construction of traditional campus, combine the school life with entrepreneurship and create the “5A” new innovative entrepreneurship model, i.e. Anyone can do Any business and get Any services related to entrepreneurship and employment at Anywhere in Anytime. The Group will continue its steadfast efforts to build a digital campus platform that facilitates better study and life for our Huashang students. The Group will continue its Smart Campus development to popularization and application about the superior solution of integration in teaching quality, student management, office automation, supporting service administrative management and resources optimization.