On December 28, Offcn Education Technology Co.Ltd(002607) issued an announcement to reply to the letter of concern of Shenzhen Stock Exchange. In response to the negative cash received by the company from selling goods and providing labor services in the third quarter of 2021, Offcn Education Technology Co.Ltd(002607) explained in the letter of concern to Shenzhen stock exchange that the net flow of selling goods and providing labor services of the company in the third quarter of 2021 was RMB 505 million, which was mainly affected by the change of examination cycle, and the collection was less than expected, especially due to the superposition of fee refund cycle factors Due to the high refund rate of agreed classes of students in the current quarter, the sales collection appeared negative for the first time.
According to the announcement, Offcn Education Technology Co.Ltd(002607) in the third quarter of 2021, the net flow of selling goods and providing labor services was RMB 505 million, which was mainly due to the company's receipt of training fee of RMB 5.224 billion and payment of agreed class refund fee of RMB 5.725 billion in that quarter, resulting in a net negative of RMB 501 million (the remaining difference of 0.04 was the impact of other businesses). In terms of less than expected collection, Offcn Education Technology Co.Ltd(002607) said that affected by the epidemic, due to the advance of the joint examination of provincial civil servants in 2021, the students' preparation time was shortened, the training willingness was reduced, and the enrollment scale and training person times of provincial examination training decreased, resulting in the lower overall income level of the company. In addition, the announcement of teachers' serial recruitment and the number of applicants decreased significantly in the third quarter, which also led to the reduction of the company's collection, and the overall collection was less than expected.
In response to the question of "double high deposit and loan" raised by Shenzhen Stock Exchange, Offcn Education Technology Co.Ltd(002607) responded that under the agreement class mode, the company needs sufficient funds to deal with possible refund. According to the disclosure of Offcn Education Technology Co.Ltd(002607) , the company's agreement class income has always been maintained at about 75% of the total income. At the same time, the company's cash flow from operating activities has strong seasonality and requires bank loans periodically. According to the general quarterly distribution law, there are few receipts in the third and fourth quarters, and the refund amount is relatively high, resulting in the net cash flow of operating activities in the current quarter may be negative. The company needs to borrow some short-term bank loans to meet the seasonal capital demand.
In addition, the company has a large scale of building long-term assets and needs to supplement working capital through short-term loans. The announcement shows that in recent years, Offcn Education Technology Co.Ltd(002607) has successively purchased and constructed learning and office places in Shandong, Jilin, Liaoning, Shaanxi, Beijing and other places, which has a certain demand for funds.
(Beijing business daily)
