SCVE GROUP (06913): Steady realization of revenue growth driven by flywheel effect for long-term growth.

On March 31, SCVE GROUP (06913) released its performance for the fiscal year 2024. During the period, the company's revenue was 684 million yuan, a year-on-year increase of 22.9%; gross profit was 190 million yuan, a year-on-year increase of 7.6%, and the net profit for the year was 90.89 million yuan. For the academic year 2024/2025, the full-time enrolled students in the group's schools had an average total of 33,737 students. It is believed that SCVE GROUP's solid performance in enrollment scale is mainly due to its established growth momentum of "emerging professional programs + high employment rate + strong branding effect," driving the company's long-term growth. Firstly, SCVE GROUP focuses on emerging industries such as "big health + TMT," providing skilled talents for the Guangdong-Hong Kong-Macao Greater Bay Area and nationwide. SCVE GROUP currently operates two schools: Lingnan Vocational and Technical College of Guangdong and Lingnan Modern Technician College of Guangdong. On December 31, 2024, Lingnan Vocational and Technical College integrated the original 13 secondary colleges into 8 secondary colleges, 2 public colleges, and 1 continuing education college, and established the College of Medical Application Technology, adding two new majors in dental medical technology and ophthalmic technology, offering over 40 professional courses covering a wide range of subjects including rehabilitation technology, medical laboratory technology, electronic information engineering technology, e-commerce, computer networking technology, cloud computing technology application, online broadcasting and operations, industrial internet, digital manufacturing technology for aircraft, and smart logistics technology. Lingnan Modern Technician College has 8 departments and offers over 38 majors, including but not limited to mechatronics integration, drones, automotive inspection and repair, firefighting engineering, traditional Chinese medicine, rehabilitation, nursing, advertising design, computer network application, computer program design, and digital media application. With the arrival of economic transformation, aging population trends, and other factors, the demand for skilled talents in emerging industries and big health-related industries in the Greater Bay Area will continue to grow. SCVE GROUP actively develops courses in emerging industries, not only increasing the attractiveness of student sources and laying a solid foundation for increasing tuition per student, but also providing assistance in improving employment rates. Secondly, continuously exploring new modes of school-enterprise cooperation to promote high employment rates through integration of production and education. SCVE GROUP has signed deep cooperation agreements with well-known companies such as JD.com and Tencent. Lingnan Vocational and Technical College is cooperating with well-known companies in four directions: "information engineering, new materials, big health, and e-commerce technology" by developing the construction of a demonstration park for Guangdong's production-education integration in Qingyuan. Lingnan Modern Technician College actively participates in the construction of Guangdong's "production-education evaluation" skills eco-chain to realize the "order class" mode where students graduate and enter employment. Focusing on emerging technologies such as artificial intelligence, big data, and cloud computing applications, a talent training system integrating industry-based and enterprise job standards for "production-education evaluation" and talent cultivation has been established. During the period, the group was awarded as one of the three projects of the provincial party secretary, the provincial-level "Cantonese Chef" training base; Lingnan Vocational and Technical College was named as the "Guangdong Province Demonstration School for Innovation and Entrepreneurship Education for College Students," and Lingnan Modern Technician College received the honor of "JD National Excellent Cooperative College" for the eighth time, all of which indicate recognition of the group's cultivation of high-quality composite technical talent. By accurately matching local industrial development and enterprise employment needs, SCVE GROUP cultivates high-quality technical talents in line with the country's policy directives on vocational education. With remarkable achievements in the integration of production and education, SCVE GROUP's employment rate has been consistently at a leading level nationally. Furthermore, with a good brand reputation, SCVE GROUP has built enrollment advantages in the Greater Bay Area. Having been deeply rooted in the Guangdong-Hong Kong-Macao Greater Bay Area for nearly 30 years, the group has gained wide recognition from the government and society, highlighting its brand competitiveness. During the reporting period, Lingnan Vocational and Technical College under the group ranked first among private comprehensive vocational colleges in China in the 2023-2024 China Vocational College Competitiveness Rankings released by the authoritative higher education assessment organization jinpingguo.com. The long-standing brand advantage helps enhance the stability of student sources and the enrollment strength of various majors, creating a virtuous cycle of growth. In addition, based on steadily developing and improving vocational education, SCVE GROUP actively explores and expands five major businesses including large-scale training programs, large dispatch programs, big health, big e-commerce, and big public welfare, promoting the development of a new pattern of "education + vocational training + technical services" driven by three rounds of "education + vocational training + technical services" under the guidance of high-quality development. Lingnan Vocational and Technical College is expanding its cooperation with large industries, major companies, and large projects, leading through its continuing education college to expand into social training and technical service areas. Lingnan Modern Technician College has obtained vocational skill level certification for 25 occupations, established 28 social training and evaluation centers in 9 prefecture-level cities in Guangdong, and plans to cover almost all prefecture-level cities in the province in the next three years. With the existing two schools as a base, SCVE GROUP continues to expand its campus network and tap into the vocational education market in the Guangdong-Hong Kong-Macao Greater Bay Area, enhancing its position as a leading provider of vocational education in the Greater Bay Area. In conclusion, guided by high-quality development, the "new programs + high employment + strong brand" flywheel effect of the group is gradually emerging, driving the group forward continuously. In the long run, with internal growth and external expansion, SCVE GROUP's diversified layout is expected to accelerate the benefits of recruitment scale, reduce customer acquisition costs, optimize cost expenses, and highlight the long-term certainty of value.