SCVE GROUP: Steady student enrollment realizes revenue growth, with the flywheel effect driving 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 (in RMB), 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 90.892 million yuan.

In the 2024/2025 academic year, the total number of full-time students in the group's schools averaged 33,737. According to Zhitong Finance APP, SCVE GROUP has delivered a solid performance in enrollment scale, mainly due to its established growth flywheel of "layout of emerging majors + high employment rate + strong brand effect," driving the company's long-term growth.

First, SCVE GROUP focuses on emerging industry majors in "big health + TMT," supplying skilled talent to the Guangdong-Hong Kong-Macao Greater Bay Area and even nationwide.

SCVE GROUP currently operates two schools: Guangdong Lingnan Vocational Technical College and Guangdong Lingnan Modern Technician College. By December 31, 2024, Lingnan Vocational Technical College will consolidate its original 13 secondary colleges into 8 secondary colleges, 2 public colleges, and 1 continuing education college, and will re-establish the College of Medical Applied Technology, adding two new majors in Oral Medicine Technology and Optometry Technology, offering over 40 majors covering a wide range of disciplines, including but not limited to Rehabilitation Technology, Medical Laboratory Technology, Electronic Information Engineering Technology, E-commerce, Computer Network Technology, Cloud Computing Technology Applications, Online Live Streaming and Operations, Industrial Internet, Aircraft Digital Manufacturing Technology, and Smart Logistics Technology.

Lingnan Modern Technician College has 8 departments, offering over 38 majors, including but not limited to Mechatronics, Drones, Automotive Inspection and Maintenance, Fire Engineering, Traditional Chinese Medicine, Rehabilitation, Nursing, Advertising Design, Computer Network Applications, Computer Programming, and Digital Media Applications.

With the arrival of economic transformation and the trend of an aging population, the demand for skilled talent in emerging industries and big health-related industries in the Greater Bay Area will continue to grow. SCVE GROUP actively lays out emerging industry professional courses, which not only increases the attractiveness of student sources but also lays a solid foundation for the increase in per capita tuition fees and provides support for improving employment rates.

Second, continuously exploring new models of school-enterprise cooperation to promote high employment rates through industry-education integration.

SCVE GROUP has signed deep cooperation agreements with well-known enterprises such as JD.com and Tencent. Lingnan Vocational Technical College develops in parallel with the construction of the Guangdong Industry-Education Integration Demonstration Park (Qingyuan) and the expansion of the Industry College, exploring cooperation with well-known enterprises around four directions: "Information Engineering, New Materials, Big Health, E-commerce Technology." Lingnan Modern Technician College actively participates in the construction of the Guangdong Province "Industry-Education Evaluation" skill ecological chain, achieving the "order class" model where students graduate and immediately enter employment. Focusing on emerging technology applications such as artificial intelligence, big data, and cloud computing, it builds a "talent training, enterprise service, student entrepreneurship" integrated "Industry-Education Evaluation" talent training system based on industry and enterprise job standards. During the period, the group was recognized as one of the provincial-level "Cantonese Cuisine Master" training bases under the "Three Projects" of the provincial party secretary; Lingnan Vocational Technical College was awarded the title of "Demonstration School for Innovation and Entrepreneurship Education for College Students in Guangdong Province," and Lingnan Modern Technician College also received the honor of "JD National Excellent Cooperative College" for the eighth time, indicating recognition of its cultivation of high-quality compound technical skilled talents Accurately aligning with local industrial development and enterprise labor demand, SCVE GROUP cultivates high-quality technical and skilled talents in accordance with the series of major policy orientations such as improving the quality of vocational education proposed by the state. Thanks to the remarkable achievements of industry-education integration, the employment rate of SCVE GROUP has consistently maintained a leading level nationwide.

Moreover, a good brand reputation builds SCVE GROUP's enrollment advantage in the Greater Bay Area.

Having deeply cultivated the Guangdong-Hong Kong-Macao Greater Bay Area for nearly 30 years, the group has gained widespread recognition from the government and society, highlighting its brand competitiveness. During the reporting period, in the "2023-2024 China Higher Vocational Colleges Competitiveness Ranking" released by the authoritative national higher education ranking agency Jinpingguo China Science and Education Evaluation Network, Guangdong Lingnan Vocational Technical College ("Lingnan Vocational Technical College") ranked first among private comprehensive higher vocational colleges nationwide. The enduring brand advantage is conducive to enhancing the stability of student sources and the enrollment strength of various majors, thereby forming a virtuous cycle of growth.

In addition, based on the steady development and quality improvement of vocational education, the group actively explores and expands five major undertakings: large training, large dispatch, large health, large e-commerce, and large public welfare, deeply promoting the new development pattern of "academic education + vocational training + technical services" driven by three wheels and integrated into five aspects.

Lingnan Vocational Technical College is vigorously expanding cooperation with major industries, large enterprises, and large projects, leading the way with the Continuing Education College to expand social training and technical service fields. Lingnan Modern Technician College has been approved for vocational skill level recognition in 25 occupations and has established 28 social training evaluation sites in nine prefecture-level cities in Guangdong Province, with plans to cover prefecture-level cities in the province in the next three years. SCVE GROUP, based on its existing two schools, continuously expands its campus network and develops the vocational education market in the Guangdong-Hong Kong-Macao Greater Bay Area, diversifying its layout and consolidating its position as a leading vocational education provider in the Greater Bay Area.

In summary, under the guidance of high-quality development, the group's "new majors + high employment + strong brand" flywheel effect is gradually emerging, driving the group forward continuously. In the long run, driven by internal growth and external expansion, the diversified layout of SCVE GROUP is expected to accelerate the realization of enrollment scale benefits, leading to a decrease in customer acquisition costs, further optimization of cost expenses, and a clear long-term value certainty