The private basic education market in China has maintained a growing trend in recent years, according to Hailiang Education Group Inc.
The company has benefited from increased demand for private K-12 education (elementary schools, starting at age 6, middle and high schools for the fiscal years ended June 30, 2019, 2020 and 2021).
In general, this increase has been driven by economic growth, rising household disposable income and education spending, as well as improved education system and policies related to K-12 education in China.
According to the Ministry of Education of the People’s Republic of China, the total number of student enrollment in private K-12 education in China has steadily increased from 40.1 million in 2016 to 44.6 million in 2020, and the ratio of students in private K-12 schools to the total number of students in K-12 schools also increased from 17.70% to 18.13% during the same period.
Meanwhile, the demand for international and bilingual private K-12 education in China is also growing.
Private basic education
A report prepared at the request of Hailiang Education by Sansheng Consulting, an independent market research firm, the total number of students enrolled in private international and bilingual schools in China has increased from 216,100 in 2016 to 480,400 in 2020, realizing a rapid increase with a Compound Annual Growth Rate of 22.1 percent.
Above all, this growth can be attributed to the increasing recognition of the quality of overseas higher education by Chinese students, and the rising income and wealth of Chinese households.
As a result of demand and increasing student enrollments, the total revenue of private international and bilingual schools in China increased from RMB 21.4 billion in 2016 to RMB 52.6 billion in 2020 with a Compound Annual Growth Rate of increase of 25.2% (according to the Sansheng Report).
K-12 are to elementary (age 6 and above), middle and high schools for the fiscal year ended June 30, 2019, 2020 and 2021.
Also, «K-12 educational services» are to K-12 pupil management services, including after-school accommodation and enrichment services, high school curriculum education services and K-9 compulsory curriculum education services.
The K-9 Schools are 11 affiliated schools, namely: Zhejiang Zhuji Hailiang Elementary School, Zhejiang Zhuji Hailiang Middle School, Zhejiang Zhuji Hailiang Foreign Language School, Zhejiang Zhuji Tianma Experimental School, Ninghai Future School, Hailiang Overseas Chinese School, Xianghu Future School, Jinhua Hailiang Foreign Language School, Lanzhou Hailiang Experimental School, Wuhu Hailiang Experimental School, and Feicheng Hailiang Foreign Language School.
