Securities code: 002659 securities abbreviation: Beijing Kaiwen Education Technology Co.Ltd(002659)
Beijing Kaiwen Education Technology Co.Ltd(002659)
Record of investor relations activities
No.: 2022-001
Category of investor relations activities √ specific object research □ analyst meeting
□ media interview □ performance briefing
□ press conference □ Roadshow
□ site visit
□ others
Name and personnel of participants: sudo yonganxin securities
Dong limong Asia Pacific Insurance
Fengqing Bank of communications Schroeder
Qianguang Aijian securities proprietary
Qifei Changxin Fund Management Co., Ltd
Wang Shuwei Taiping pension
Jiao Wenlong ICBC Credit Suisse
Zhang Bin BOC fund
Tangqi Zhongrong fund
Xia Linfeng Huabao Xingye
Li Yuanbo Fuguo fund
Liu Hui invests in Morgan
Tangzhe Hainan Qianxin Private Equity Fund Management Co., Ltd
Chen Xin Shanghai shangya Investment Management Co., Ltd
Lin Qing Fuguo fund
Xu Junping Taibao assets
Jiangfeng Xincheng fund
Time: January 29, 2022
Location teleconference
Receptionist of listed company Mr. Wang Weiqing, chairman
Mr. Ye Xiao, Secretary of the board of directors
Ms. Peilei, financial director
1、 Activity profile
Wang Weiqing, chairman of the board of directors, ye Xiao, Secretary of the board of directors and Pei Lei, financial director, shared the company's business performance and future development ideas and strategies.
The company has announced the annual performance forecast for 2021 on January 28. Compared with the previous period, the profit of the company in this period has narrowed by about 10% and slightly improved. Due to the impact of the implementation regulations of the people's promotion law, considering that the income and cost of the two schools are not consolidated after September, we have revised the third quarterly report. The proportion of revenue growth was adjusted from 35.71% to 19.53%, and the proportion of profit growth was adjusted from 44.62% to 24.5%.
On May 14, 2021, the State Council promulgated the regulations on the implementation of the people's promotion law, which has a great impact on the whole k12 education industry. Before November 2021, other public companies in the same industry had no clear statement and public information on income, profit and subsequent arrangements. Due to the significant impact on the company, we continued the consolidation of school income based on the principle of prudence and through communication with auditors and lawyers. After November, the whole audit institution has also formed a more unified understanding of the consolidation of the industry. The company is also actively discussing and communicating with the competent authorities, including the competent departments of the two schools, Chaoyang District and Haidian District Education Commission, major shareholders and district leaders, on how to ensure the stable operation of listed companies and meet the development direction of shareholders' interests. Finally, it is clear that the organizers of the two schools will be changed in the future to meet the compliance requirements and ensure the stable operation of the company.
It is very clear that changing the organizer does not mean that the two schools will become public. Since the establishment of the two schools, they have operated and invested in accordance with the market, without occupying financial funds. After the adjustment of the organizers of the two schools in the future, they will no longer constitute interested parties with listed companies. The follow-up company will also stably and continuously produce market-oriented education service transactions with the two schools, including rent income, quality education courses, etc., which are guaranteed. Auditors and lawyers also have clear communication and demonstration that there is no problem with the sustainable and stable operation of listed companies. This is also a clear message to investors and the market through this exchange meeting.
In general, the future development of the company has reached a transformation node. A lot of uncertainties and the haze brought by the policy are certain for the future development of the company after this clarification.
The future development direction of the company is very clear. (1) The change of the organizers of the two schools is expected to be completed in the next three months. (2) And the two schools will continue to maintain a compliant market-oriented cooperation mode to ensure the continuation of the advantages of campus assets and teachers in the early stage. (3) In recent years, the company has reserved the market resources of vocational education and has made a layout. The major shareholders support the expansion of the field of vocational education. The opinions on high quality development of vocational education, which is very conducive to the development of vocational education, was issued in November 2021. As a state-owned enterprise and the only listed educational company in Haidian District, the company is also integrating resources. Haidian District has great advantages in vocational education, both in industry and education. In the Beijing Centergate Technologies (Holding) Co.Ltd(000931) Software Park, a large number of software technology enterprises need corresponding talents, and many higher education institutions have gathered in Haidian District. Innovation and technology are also the development direction of major shareholders. Doing a good job in vocational education can bring these resources together. At present, we have reserved some resources in Shandong, Henan, Hebei, Shanghai and other regions. We believe that we will make some achievements in the field of Vocational Education in 2022. In the future, vocational education will also strongly build the income support and profit source of Listed Companies in 2022 and beyond.
This policy adjustment has both challenges and opportunities for the company: (1) as a listed company controlled by SASAC, the company can have better policy support and room for maneuver; (2) This adjustment has straightened out the relationship between school management and obtaining reasonable returns; (3) This policy adjustment is also Beijing Kaiwen Education Technology Co.Ltd(002659) a major period of strategic opportunity. The attention of the company has increased significantly, and the major shareholders of the company and the district government have also given firm support.
2、 Main contents of investor interaction
(I) impact of policy adjustment on the company
Q: At present, the implementation regulations have been officially implemented. Our response is to change the organizer. Who will change it to? How to operate? After changing the sponsor, does the company still have control over the school's teacher team? Will it affect the stability of the school in the future?
A: At present, many schools are dealing with the compliance of policies. It needs to be clear that the current Beijing Kaiwen Education Technology Co.Ltd(002659) as the organizer of Kevin school does not belong to the scope of public participation and public supervision and adjustment. After changing the organizer, it will also meet the current policies and regulatory requirements.
We guarantee the stable operation of the existing schools, and the teachers and principals will not change. The school system will not change. The school will still carry out quality education with the characteristics of international bilingual education with the original characteristics of Kevin. At the same time, the top hardware and software facilities of the two schools will not change. In the future Beijing Kaiwen Education Technology Co.Ltd(002659) will continue to support the two schools and ensure their development in a better direction.
Q: The policy is mainly aimed at the stage of compulsory education. Both schools have high school education. Has high school considered being included in the scope of consolidation?
A: After the introduction of the policy, we have had various arguments, such as whether junior middle school and senior high school should be separated, the dual track system, joint operation and so on. At present, we still hope to maintain the characteristics of the two schools and give full play to their respective advantages and characteristics. The company also does not intend to split junior high school and senior high school, because it is inconvenient in physical conditions and license sector splitting. We are still based on the perspective that is most beneficial to students, teachers and parents, so that the two schools can continue the original accumulation. The next 1-2 years are also the time for the two schools to make achievements, so we don't have such arrangements and plans. The reasons for not splitting compulsory education and senior high school are: ① it will have an impact on the actual education and teaching of the two schools. If it is split, it is necessary to separate the compulsory education stage from the high school stage, which will have a great impact on students, education and teaching, and it can not completely solve Kevin's problem after consolidation. ② The training mode of K12 consistent system is scientific and reasonable. Once it is separated, it can not reach the through training mode.
Based on the above reasons, after in-depth discussion, we finally choose the existing way to change the school organizer. After the change of the organizer, Beijing Kaiwen Education Technology Co.Ltd(002659) provides guidance for the comprehensive education and teaching of the two schools.
Q: How to determine the transfer price in the process of company change?
A: As a civil non legal person, the change of the sponsor of the school is not an asset transaction in the traditional sense. The civil affairs department and the Education Commission have special requirements. The change process and submission materials must be in accordance with the guidance of the Civil Affairs Bureau. The Civil Affairs Bureau requires the sponsor to have the fund. At present, the fund for the two schools is 20 million, and the educational assets of the school still belong to Beijing Kaiwen Education Technology Co.Ltd(002659) , The organizer will conduct transactions according to the requirements of the Civil Affairs Bureau without premium or discount.
Q: After the change, what is the impact of enrollment?
A: This change is a change in management level and financial compliance level, and will not affect the existing education and teaching of the two schools. The long stage of school development from enrollment to export should follow the education law, rather than be affected by the city.
Haidian school will be full in 2022, and the school will be more optimized to continuously improve the quality and standard of students. Chaoyang School is still facing great enrollment pressure, which is related to the large size of the school, the fierce competition in international education in Chaoyang area and the impact of the epidemic on parents' choice of international training.
(II) future development strategy
Q: The fixed cost of the company is relatively high. Last year, we also discussed the securitization of campus assets and the optimization of financial structure. What measures can the company take in 2022 to improve the relative matching between the company's operation and market expectations?
A: The primary goal of the company is to turn losses into profits. At the same time, Kevin is currently in the adjustment period, including both the compliance adjustment of the original business and the implementation of the layout of the new track in the future. These tasks are also very important.
The company's overall strategic thinking:
① Bottom line goal: complete the change of sponsor of the company as soon as possible with the support of major shareholders and relevant government regulatory departments
To resume the company's non related party transactions with the reasonable income of the two schools and ensure the stable income scale of the company of more than 100 million;
② Key objectives: turn losses into profits as soon as possible. If the company successfully completes the adjustment, it will peel off part of the revenue, but also part of the cost, which will not have a great impact on the profits realized in the company's K12 business. Other business strategies of the company:
① Building leasing business: after this high attention, the major shareholder of the company, haiguotou, has paid more attention to Beijing Kaiwen Education Technology Co.Ltd(002659) . For example, haiguotou coordinates the docking of enterprises specializing in building leasing in the park for the company, empowers the company, and strives to achieve a significant growth in the leased building business in 2022;
② New business of Vocational Education: the company cuts into the vocational education track and will not choose to regain customer investment. It will expand the certificate and grade examination services by increasing the flow. The main reason is that the industry threshold is high and the cost of obtaining customers is high, and the company's resource background does not have a strong foundation. The company will still focus on vocational education, rely on the integration of industry and education advocated by the state, as the integrator of resources, and rely on the resources and support given to the company by Haidian District government to continuously optimize the company's fundamentals and improve new business performance.
Q: Under the current accounting system, how to judge the level of rental income and educational consulting services in the future to achieve profit and loss balance? If the future increment is not considered, what is the volume of education service revenue in the first and second quarters? A: Before the implementation of the policy, the company adopted the financial treatment of merging the two schools, so that the financial data can objectively reflect the business situation of Beijing Kaiwen Education Technology Co.Ltd(002659) on the basis of meeting the accounting standards, and bring the two schools into the scope of consolidation. However, based on the current policy and market environment, including the communication with auditors, we will not merge the two schools from September 2021 according to the definition of merger in accounting standards. This adjustment has a great impact on the overall income, cost and expense of Beijing Kaiwen Education Technology Co.Ltd(002659) , but it will not have a substantive impact on the overall profit of Beijing Kaiwen Education Technology Co.Ltd(002659) , because Beijing Kaiwen Education Technology Co.Ltd(002659) obtains reasonable and fair income by providing campus asset leasing, after-school training and all educational consulting services to the school.
On the issue of next year's revenue volume, including the future revenue volume, after our calculation and the adjustment of our organizers, the revenue indicators of future listed companies will meet the relevant listing requirements.
Q: What is the income structure that can be included in the table in 2022?
A: For the existing K12 business: since the two schools are no longer included in the consolidation scope, the tuition income of the two schools will no longer be reflected in the financial statements. The income included in the company's financial statements in 2022 will be the income provided by Beijing Kaiwen Education Technology Co.Ltd(002659) to the two schools, including: (1) providing campus operation, including real estate leasing; (2) Provide Kevin's characteristic art and physical education courses and training. At the same time, the income Beijing Kaiwen Education Technology Co.Ltd(002659) included in 2022 also includes the service income of quality, music, sports and beauty training provided by market-oriented students. In addition, the company will also expand new vocational education tracks, which
