First High-School Education Group operates a network of private high schools and tutorial schools in Western China, focused on preparing students for China's national college entrance exam (the Gaokao). The company's schools are full-time boarding schools in smaller, lower-tier cities across Yunnan, Shaanxi, and neighboring provinces. As of year-end 2023, the company ran 14 high school programs and 2 tutorial programs for Gaokao repeaters, serving roughly 19,000 enrolled students across its own schools. The company generates revenue primarily through tuition and boarding fees, charging approximately RMB15,900–16,600 per student annually, with revenue scaling with enrollment. A notable feature of the business model is the government cooperative arrangement, where local governments contribute land and buildings in exchange for the company admitting publicly-sponsored students at subsidized rates, with governments paying the difference — a structure that reduces upfront capital but creates collection risk, as demonstrated when government cooperative payments declined sharply in 2023. Beyond its own schools, the company provides operational management services — including curriculum, teacher training, and student recruitment — to third-party public and private schools under annual fee agreements. This school management business, covering roughly 13,000 students across nine programs, is asset-light and is the company's primary near-term growth avenue, given regulatory and capital constraints on opening new for-profit private schools.