Virscend Education Company Limited

Climate Impact & Sustainability Data (2017)

Total Carbon Emissions:23,295.91 tCO2e/year

Scope 1 Emissions:10,444.16 tCO2e/year

Scope 2 Emissions:12,840.87 tCO2e/year

Scope 3 Emissions:10.28 tCO2e/year

Total Energy Consumption:2,442.62 Ten thousand kWh/year

Water Consumption:3,834,055.51 Metric tons/year

Waste Generated:4,816.27 tons/year

Carbon Intensity:0.27 and 0.33 tCO2e/student for Scope 1 and 2 respectively

Reduced greenhouse gas emissions through energy-saving initiatives (e.g., using energy-saving lamps, reducing business trips).
Saved approximately 18,015 metric tons of water and 207,000 kWh of electricity.
Achieved 100% safe disposal rate of hazardous waste.
Implemented water and electricity cut-off during holidays.

Increased total student enrollment by 11.7% to approximately 38,498.
Maintained a high rate of high school graduates accepted into first-tier universities in China (94.6% in 2017).
Established a teacher development center to enhance teaching quality and research capabilities.
Implemented a flexible working hours system for faculty members.
Provided competitive salaries and benefits to employees, including social security contributions and supplementary insurance.

Established a human resources management system and a remuneration and welfare system.
Complied with relevant laws and regulations relating to remuneration and dismissal, recruitment and promotion, working hours, holidays, equal opportunities, anti-discrimination and other welfare benefits.
Formulated and implemented rules and regulations for the management of student safety, laboratory and sports equipment, school bus safety, health and medical protection, management of food safety and hygiene and handling of accidents on campus.
Formulated and implemented the Rules of Chengdu Foreign Languages School Governing Teachers Teaching with Honest and Integrity to govern teaching practices and ensure quality education.

Medium-term Goals:

Short-term Goals:

Changes in general market conditions and perceptions of private education.
Changes in the regulatory environment in the PRC education industry.
Competition from other school operators.
Potential expansion into other regions in Southwest China.
Availability of financing to fund expansion and operations.
Risks associated with structured contracts due to PRC regulations on foreign ownership in the education sector.

Leveraging reputation to expand school network.
Optimizing school pricing, diversifying service offerings, and increasing revenue sources.
Expanding international programs.
Establishing asset-light schools through collaboration with third-party business partners.
Acquiring new schools or collaborating with overseas schools.
Implementing risk management structures and measures, including insurance coverage and arrangements with lenders.
Regularly reviewing major funding positions to ensure adequate financial resources.
Disclosing overall performance and compliance with structured contracts in annual and interim reports.
Engaging external legal and professional advisors to review the implementation of structured contracts and legal compliance.

Incorporating suppliers’ CSR requirements into selection criteria (environmental measures, employee treatment, legal compliance).

Frameworks Used: Appendix 27 of the Listing Rules