On September 26, SCVE GROUP (06913) released high-quality interim results. During the period, the company delivered impressive revenue performance of RMB 362 million, representing a 7.8% year-on-year increase, demonstrating strong momentum in core business expansion and market influence enhancement. More importantly, the company maintained healthy cash flow and stable dividend policy, with the board proposing an interim dividend of 2.0 HK cents per share. Against the backdrop of favorable vocational education policies and continued market demand, SCVE GROUP actively seized development opportunities by deepening industry-education integration and optimizing professional structures, driving simultaneous improvement in business scale and quality.
**Scale Effects Emerge with Steady Revenue Growth**
From core financial indicators, SCVE GROUP's interim 2025 results demonstrated steady growth momentum. Revenue growth primarily stemmed from expanded student enrollment and optimized professional structures. An in-depth analysis of the income statement structure reveals that other income and gains increased 21.6% year-on-year to RMB 33.85 million, mainly benefiting from additional revenue growth from industry-education partnerships. Meanwhile, administrative expenses decreased 4.7% to RMB 41.83 million, indicating continuous improvement in operational efficiency. Additionally, financing costs dropped from RMB 6 million to RMB 4.88 million, a decrease of 18.7%, reflecting optimization of the company's debt structure and effective cost control. These operational improvements provided strong support for the company's profitability.
Furthermore, the unique characteristics of the education industry determine that student enrollment scale is a key indicator for measuring enterprise value. The enrollment data for the company's institutions was impressive: Guangdong Lingnan Vocational and Technical College recruited students from 15 provinces nationwide in 2025, with 11,978 admitted candidates, an increase of 1,701 from the previous year. Multiple programs at Guangdong Lingnan Modern Technical College saw enrollment rates surge by 200%, presenting a "dual excellence" situation in both enrollment and employment. From a financial perspective, the growth in student enrollment directly translates into stable tuition revenue cash flow.
More importantly, through professional structure optimization, the company significantly increased enrollment proportions in high value-added programs such as healthcare, artificial intelligence, and new energy vehicles, providing room for future tuition premiums. From a geographical distribution perspective, the institutions' enrollment coverage spans 15 provinces nationwide. The expansion of student sources relies partly on continuously accumulated brand influence enhancement, while future penetration can further expand nationwide influence, attracting more quality students and amplifying the valuation effects of student enrollment growth.
**Industry-Education Integration Builds Competitive Moat, Industry-University Cooperation Enhances Valuation Premium**
SCVE GROUP has established an industry-education integration ecosystem with over 3,000 enterprises. Guangdong Lingnan Modern Technical College partnered with JD.com to establish the "Lingnan·JD Digital Commerce Industry College" and founded the JD Education Research Institute (Guangdong-Hong Kong-Macao Greater Bay Area Branch). Collaboration with Huawei created the "Huawei ICT Industry College." Guangdong Lingnan Vocational and Technical College engages in government-industry-university-enterprise cooperation, establishing the "Xinjiang Cultural Tourism Live Streaming Studio," becoming a council member of the National Traditional Chinese Medicine Health Innovation and Entrepreneurship Industry-Education Integration Community, and co-building "Digital Creative Industry Alliance Cooperation Units" with enterprises. This industry-education integration ecosystem constitutes its core competitive advantage.
This deep industry-university cooperation not only improves employment quality but also brings multiple values. First, industry-university cooperation significantly reduces teaching costs. Equipment and technical support provided by enterprises reduce schools' fixed asset investments. As seen from the income statement, despite revenue growth, the company effectively controlled cost growth. Second, high-quality employment creates brand premiums. The overall employment rate of over 98%, particularly the nearly 100% employment rate for industry-university cooperation targeted training programs, creates strong enrollment attraction and reduces marketing costs. Sales and distribution expenses only increased 3.7%, far below revenue growth. Third, it opens new revenue sources. Corporate training and technical services began contributing revenue, with rapid growth in other income reflecting this trend.
The recent strategic cooperation between Guangdong Lingnan Modern Technical College and Huawei in Songshan Lake marks a new phase in industry-university cooperation. The college's national customer service training with JD.com has successfully held nineteen sessions, and the industry college co-built with JD Group will further deepen the "industry-education-evaluation" ecosystem. This deep binding with industry-leading enterprises brings significant valuation premiums to the group.
As an industry leader, SCVE GROUP benefits significantly from policy dividends. Twenty-three projects from Guangdong Lingnan Vocational and Technical College were selected for the Ministry of Education's Supply-Demand Connection Employment Education Project, and three programs from Guangdong Lingnan Modern Technical College were included in the national technical college work-study integration construction list. Obtaining these national-level qualifications further consolidates industry position.
Based on current development trends, SCVE GROUP's future growth path is clearly visible: First, enormous endogenous growth potential. Improving capacity utilization rates of existing campuses, steady tuition standard increases, and continuous professional structure optimization, focusing on regional economic and social development strategies and industrial upgrading needs, centering on emerging technology applications in characteristic industries like artificial intelligence, big data, and cloud computing, constructing an "industry-education-evaluation" ecosystem talent cultivation system integrating "talent training, enterprise services, and student entrepreneurship" functions based on industry and enterprise position standards. Adding programs in artificial intelligence, dental technology, and culinary arts will drive sustained revenue growth. The company's interim 7.8% revenue growth only reflects partial potential.
Second, conditions for external expansion are mature. The company's social reputation and brand influence accumulated through industry-education integration continue to improve, creating conditions for branded output of business models. Meanwhile, enhanced brand recognition further promotes enrollment work.
Third, broad business innovation space. The group will vigorously expand vocational skill level certification and adult continuing education businesses. Currently, Lingnan Modern Technical College has obtained vocational skill level certification for 25 trades and established 28 social training evaluation points in 9 prefecture-level cities in Guangdong Province, planning to basically cover prefecture-level cities within the province over the next three years. Simultaneously, the group actively conducts international cooperative education, introducing advanced vocational and basic education resources and projects. Guangdong Lingnan Vocational and Technical College has established solid cooperative relationships with multiple renowned universities in South Korea and Japan, establishing "Credit Recognition International Undergraduate Degree Connection" projects. Guangdong Lingnan Modern Technical College co-builds "Dual-Track International Classes," "Bilingual Integration Classes," and "New Era Programs" with overseas partner institutions, jointly committed to creating "low-risk, high-certainty" diversified development paths. Expansion of new businesses such as corporate training, online education, and skill certification will open new growth spaces.
In summary, the investment value created by SCVE GROUP's "academic education + vocational training + technical services" three-wheel drive development pattern is being verified across multiple dimensions. The company not only demonstrates steady financial performance in the medium to short term but also establishes long-term competitive advantages through industry-education integration strategic layout. In the current capital market environment that increasingly focuses on enterprise fundamentals and sustainable profitability, quality targets like SCVE GROUP deserve key attention.