Today, Offcn Education Technology Co.Ltd(002607) released the performance forecast for 2021. The announcement shows that the revenue of Offcn Education Technology Co.Ltd(002607) is expected to reach 6.9-7.3 billion yuan in 2021, down 38.41-34.84% from 11.202 billion yuan in 2020; The net profit attributable to the shareholders of the listed company was a loss of 2-2.4 billion yuan, down 186.79-204.15% from the profit of 2.304 billion yuan in 2020.
According to the announcement, the main influencing factors of the company's loss in 2021 are that the business collection is less than expected, the rapid growth of student refund, the sharp decline of business income and the high growth of total operating cost. Among them, the sharp decrease in revenue is the direct cause of the company's loss. In terms of collection, the company expects to receive 19-21 billion yuan in training business in 2021, down 20.66-12.31% from 23.947 billion yuan in 2020. Zhonggong said that due to the impact of the economic environment and the epidemic, the talent recruitment and training industry has experienced periodic fluctuations in examinations, shrinking demand and weakening students' willingness to participate in training. Students' training consumption tendency is conservative, their willingness to pay for high-end training is reduced, and the industry as a whole shrinks.
In addition, due to the significant enrollment expansion in 2020, the number of recruits for core training programs of provincial examination, public institutions, teachers and other companies decreased to a certain extent in 2021. And affected by the epidemic, the examination recruitment time in some areas was advanced or cancelled, resulting in the decline of market training demand.
In addition, the increase of refund rate and the high growth of total operating cost are also the main reasons for the advance loss of Zhonggong. In terms of refund, Zhonggong said that in order to stabilize the market share, the proportion of high refund classes of the agreement classes launched by the company in 2021 has increased, and the impact of the increase in the average competition difficulty of the industry and the cross year cycle of refund of some examinations in the fourth quarter of 2020, the company expects that the refund of students will be 14-16 billion yuan in 2021, an increase of 39.87-59.86% over 10.09 billion yuan in 2020; In terms of total operating costs, the company said that in the first half of 2021, the competition in the vocational education industry intensified, and the company made continuous strategic investment. During the reporting period, the number of personnel and the scale of outlets reached a historically high level, which objectively increased the operating cost of the company. In the second half of the year, although the cost side of the company was continuously optimized, the contribution of the optimization degree to the profit was limited, and the pressure of fixed costs such as the salary of the company's personnel was still not small, resulting in a slight increase in the total operating cost of 2021 compared with 2020. It is estimated that the total operating cost of the company in 2021 will be 9.3-9.7 billion yuan, an increase of 1.61-5.98% over 9.153 billion yuan in 2020. According to public data disclosure, the number of employees in the company has exceeded 45000 and more than 1800 outlets in the first half of 2021.
For the pre loss of performance in 2021, Zhonggong said that it was the company's lack of strategic judgment and rapid response ability in the face of market changes in the post epidemic era, as well as the shortcomings of internal management and organizational structure. At the same time, Zhonggong also responded that the company's management team has carried out adjustment and launched the business boost plan in 2022 through five measures: adjusting product structure, internal optimization, cost reduction and efficiency increase, ameba business reform, online and offline integration, and new business layout of vocational education.
Offcn Education Technology Co.Ltd(002607) said that in terms of product structure adjustment, the company will take all products off the shelves and return them all. When the investment period of channel market expansion is completed in stages, the company will reduce the proportion of high refund shifts, improve the actual income of training business and consolidate the income of main business; In terms of internal optimization, cost reduction and efficiency increase, it mainly increases cost side control in combination with changes in market conditions, including a series of measures such as business process sorting and transformation, personnel organization structure optimization, salary performance appraisal adjustment, refinement of operating costs and so on; Amoeba's business reform focuses on value creation and profit assessment, and promotes the fine operation of various projects and sub centers; Online and offline integration and new business layout of vocational education are the direction that Zhonggong has been consolidating.
It is reported that Offcn Education Technology Co.Ltd(002607) will increase investment in vocational skills training and other businesses in 2022, set up a vocational education division, focus on six emerging industries such as artificial intelligence, intelligent manufacturing, digital economy, financial media, digital cultural innovation and intelligent aviation, and expand the revenue scale of new projects. At the same time, according to relevant policies, we will deepen school enterprise cooperation and combine the curriculum development of Vocational Colleges with the teaching and research resources of Offcn Education Technology Co.Ltd(002607) to realize business linkage.
