China General Education Group(Chinese brand name: 通才教育), providing higher educational services, recently applied to Hong Kong initial public offerings. And the sole sponsor was Guotai Junan Capital Limited.

The Shanxi-based Group was founded in 2004 and was approved and upgraded by the Ministry of Education to become the very first private undergraduate college in Shanxi Province with the name of Shanxi Technology and Business College(the College) in 2011. In 2015, Shanxi Technology & Business started to grant bachelor's degrees to its graduates. 

According to the prospectus, the Group’s revenues were RMB267.4 million for the year ended August 31, 2018, RMB266.3 million for the year ended August 31, 2019, and increased to RMB271.1 million for the year ended August 31, 2020. And the gross profit was RMB171 million, RMB158 million, and RMB164 million, respectively. 

The revenue decrease from 2018 to 2019 was mainly because the Group ceased recruiting new junior college students since the 2018/2019 school year as they decided to focus entirely on our undergraduate program to improve the overall quality and reputation of the College and make better use of the faculty resources.

As for the revenue rising from 2019 to 2020,the Group explained that it was mainly because of the increase in tuition fees and students enrolled in the College.

While deep-diving into the Group's revenue, students' tuition and accommodation fees contribute to the performance. Its business is relatively single and is considered facing greater operating risks.

Regarding this, China General Education Group said that they would continue to expand the business, planning to build new facilities to increase the capacity of the College and pursuing more growth opportunities through acquisitions and offering more education services.