Neusoft Education Announces 2023 Interim Results

Steady Strength In The Development of One Fundamental And Two Strategic Businesses And Revenue Increased by 23.5% YoY

HONG KONG, Aug. 29, 2023 /PRNewswire/ — On August 29th, Neusoft Education Technology Co., Ltd. (“Neusoft Education” or the “Company” or the “Group”; stock code: 09616.HK) is pleased to announce its unaudited interim results for the six months ended June 30, 2023 (the “Reporting Period”). The results showed that the Group achieved a revenue of approximately RMB 918 million, representing a year-on-year increase of 23.5%; The Gross profit reached approximately RMB 459 million, with a year-on-year increase of 31.4%. The adjusted net profit attributable to the parent was increased by a year-on-year growth of 17.4% to approximately RMB 272 million.

As a leading IT higher education technology group and digital talent education service provider in China, Neusoft Education has always adhered to its mission of “Boost Smart Education with Digital Technologies and Empower Students with Innovative Education”. With focusing on the IT and health care technology and relying on Neusoft’s industrial background and more than 20 years of educational experience, Neusoft Education has built an innovative 4S product and service system, thereby creating a business ecosystem characterized by “One Fundamental Business and Two Strategic Businesses”. “One Fundamental Business” refers to full-time formal higher education services, while the “Two Strategic Businesses” represent education resources services and continuing education services respectively.

Continuous refinement and enhancement of One Fundamental Business and A sustained release of the brand’s effectiveness

As of the end of the reporting period, Neusoft Education’s Revenue derived from our full-time formal higher education services reached approximately RMB 749 million, showing an impressive year-on-year growth of 29.1%, which demonstrated the strong development momentum of the three universities under the Group. Neusoft Education currently operates three applied undergraduate universities in Dalian, Chengdu, and Guangdong, with a total enrollment of nearly 53,000 full-time undergraduate and associate degree students and over 120,000 graduates. Neusoft Education has made significant contributions to the cultivation of talents with digital technology and skills in China.

Since the initiation of the “Double First-Class Initiative” for undergraduate program construction by the MOE in 2019, the aforementioned three universities have had a total of 25 majors selected, of which 22 were related to digital technology, accounting for nearly 90%. Accordingly, Dalian Neusoft University of Information has 7 National First-class Bachelor Degree Programme Construction Sites, with the number ranking the leading position of all private universities in China. In terms of major and curriculum construction,  Dalian Neusoft University of Information currently has 2 courses selected as “National First-class Bachelor Degree Courses”, ranking first among private universities in Liaoning Province. Chengdu Neusoft University and Neusoft Institute Guangdong achieved breakthroughs in this regard, with both of their courses, Fundamentals of Programming, being selected as “National First-class Bachelor Degree Courses”.

Additionally, in 2023, the project Innovation and Practice of Multi-Collaborative Digital Talent Training Model of Integrating Government, School, Industry and Enterprise Based on Digital Workshop, jointly submitted by Dalian Neusoft University of Information and Neusoft Education, under the leadership of Doctor Wen Tao, the honorary president of the university, won the first prize of the National Teaching Achievement Award. This was also another prestigious recognition for the university in the field of vocational education after becoming the first private university to win this prize in 2005.

Continuous expansion in the scale of Two Strategic Businesses, supporting for the digital transformation of higher education institutions

Besides full-time formal higher education services, the Group’s education resource services business also showed a significant growth momentum during the reporting period, with a revenue of approximately RMB 102 million in the first half of the year, representing an impressive year-on-year growth of 48.7%.

Neusoft Education, with a focus on learner value creation, relied on Neusoft’s industrial advantages and years of educational accumulation. In the areas of teaching management, teaching operations and teaching practice, it has constructed an innovative 4S characteristic service model that included resources, software, platforms and data. This system, consisting of CaaS (Content as a Service), SaaS (Software as a Service), PaaS (Platform as a Service) and DaaS (Data as a Service), provided a comprehensive range of products & services, such as joint construction of professional & industry academies, smart education platforms, teaching content & laboratory solutions for practical training, and digital workshops. Neusoft Education has formed a well-organized, widely covered and hierarchically distinct network.

Up to now, the products and services offered by Neusoft Education have been implemented in over 550 partner universities nationwide, including more than 30 Chinese “Double First-Class” universities and over 60 schools participating in the Chinese vocational education “Double High-level Initiative”. The total number of enrolled students covered has exceeded 54,000.

In the first half of 2023, teachers and students from the collaborative professional or industrial colleges established in partnership with Neusoft Education achieved a total of 20 national prize, 92 provincial prize, 3 municipal prize, and 3 industry prize in teaching achievements, skill innovation competitions and other areas. The employment rate of the 2022 graduates from the Neuedu Information Industrial College of Yunnan Industry & Trade Vocational College reached 91%, ranking first among all majors in the college.

Furthermore, Neusoft Education achieved a revenue of approximately RMB 65 million from Continuing education services. In terms of 2B training, leveraging various national, provincial and municipal qualifications, over 60 training programs were implemented in the first half of the year, covering nearly 9,000 learners. In terms of 2C training, training services were provided to approximately 13,000 learners in the first half of the year. In terms of formal continuing education, a total of 38 majors were offered, covering advantageous majors and popular fields such as software engineering, digital media and health services & management. Additionally, under the expansion strategy centered around “competition certification”, the group organized the “Neusoft Education Cup” series of competitions for university students through Neuedu Online Platform and Neuedu IT Cloud Class in the first half of 2023, rapidly expanding to more than 150 colleges and universities in over 20 provinces.

Looking towards the future, Neusoft Education will continue to pay close attention to the disruptive and leading role of cutting-edge technological innovation in the development of education. It will focus on the trends of digitalization and intelligent development in education, comprehensively promoting the scientific R&D and application of emerging frontier technologies such as Artificial Intelligence, Big data, and Metaverse in the field of education. Neusoft Education will enhance the R&D of educational resources and products, including teaching content, teaching platforms and practical training laboratories. It is committed to advancing the R&D strategy in “Education + Technology”, leveraging technological means and innovative teaching methods to continuously build core competitive advantages, leading and empowering a new wave of educational transformation.

Media Contact:
Lin Wei