After the "double reduction", the education industry handed over the annual report card for the first time. Under the consensus of transformation, experts suggest that enterprises "start a second business"
Our reporter Gui Xiaosun
After the release of the "Double Reduction" policy, the overall development of the education industry has attracted the attention of the capital market. As the disclosure of the 2021 annual report comes to an end, investors can get a glimpse of the overall situation of the industry and the company from the annual report card handed over by the company.
Flush data shows that as of April 23, a total of 23 education companies have released their 2021 annual reports or performance forecasts. Judging from the information disclosed by these companies, many companies will suffer serious losses in 2021.
The data shows that 2 of the 8 companies that have released performance results have a loss in net profit, while 12 of the 15 companies that have released performance forecasts are expected to have a loss in net profit.
As for the reasons for the losses, many companies mentioned that they were affected by the "double reduction" policy.
It should be noted that many companies entered the education field through mergers and acquisitions, and with the impact of the "double deduction" policy on the industry and enterprises, the provision of large depreciation has also become a problem for many companies. topic.
For example, Xueda Education’s previous announcement mentioned that it is expected to lose net profit last year, with a year-on-year decrease of 1450% to 1199%.
As for the reasons for the changes in performance, Xueda Education explained that it adjusted the existing business strategy and business structure to reduce the performance.
In addition, when Xueda Education acquired 100% equity of Xueda Education Group and Peking Xueda Information Technology Group Co., Ltd. in May 2016, it formed a goodwill of up to 1,526.7733 million yuan.
The company preliminarily judged that the impairment of goodwill in the reporting period was 450 million yuan, which reduced the performance of the reporting period.
Zhang Yi, CEO of iiMedia Research, said in an interview with the "Securities Daily" reporter: "The poor performance of the education industry is not surprising. In the future transformation, it is very important to find a suitable track."
In addition to A-share education companies, a number of education Chinese concept stocks have also released some performance data before. On the whole, how to transform in difficult times is the focus of follow-up development.
Zhang Yi told the "Securities Daily" reporter that the transformation of education companies is also divided into several directions: "Some companies that continue to engage in education have transformed to intelligent learning, such as hardware products; some companies have turned to adult education and vocational education. This is the choice for most businesses that still want to grow in education.”
New Oriental, a veteran education company, has chosen to return to the field of adult English education.
On April 22, New Oriental announced the release of a new business English product. Chairman Yu Minhong explained in his speech that the relevant subdivisions of adult English training will still be valued in the future: "New Oriental started by training college students to go abroad and learn English. Now back to the main line of business, the release of this business English product is a return in a sense, and I hope that this business will be revived in the future." On the same day, New Oriental also announced that it had a business relationship with ETS. The new cooperation in the field of English and the joint release of TOEIC test products will jointly cultivate more international high-quality talents and jointly promote the vigorous development of China's international education in the new era.
In this regard, the relevant person of New Oriental introduced to the reporter of "Securities Daily" that the advantages of New Oriental lie in the previous brand accumulation and the unique teaching advantages that have been verified. Moreover, it has provided various forms of language training services and services for many major national-level international events. Other supports have accumulated rich experience. Therefore, choosing to return to adult English education will have a multiplier effect.
Zhang Yi told the "Securities Daily" reporter, "The market capacity exists. It depends on whether the company has the intention to 'secondary entrepreneurship' in the education industry. This is the key issue for the company's future development." (Securities Daily)