The company is the leader of Online + offline vocational examination and training with rapid development. The company’s business started in 2013. At present, it mainly provides recruitment and qualification examination training courses such as public examination, public institution recruitment and teacher recruitment through online and offline methods. The company submitted a prospectus to the Hong Kong Stock Exchange on February 28, 2022.
The expansion of offline training has driven the high growth of income scale, and the number of positive price paying people has increased rapidly. In 2020 / 2021q1-q3, the operating revenue of the company was 2.132 billion yuan / 2.633 billion yuan respectively, an increase of 83.7% / 79.5% at the same time; The number of people paying for positive price courses increased by 33.0% / 57.7% to 179.32048000. The company’s business comes from online training. In May 2020, it promoted offline training on a large scale, driving the rapid growth of revenue scale. The proportion of offline training revenue in 2021q1-q3 has reached 49.8%, forming a parallel and rapid development pattern of Online + offline.
Vocational examination and training industry: the market scale is growing steadily and the penetration rate continues to improve. The scale of China’s vocational examination and training market is expected to increase from 64.6 billion yuan in 2020 to 123 billion yuan in 2026, with CAGR reaching 11.3%. By category, the market scale of public officials / institutions / teacher recruitment examination and training in 2020 is RMB 12.6/11.5/6.7 billion, and by 2026, the market scale is RMB 26.8/184/15.3 billion, and the CAGR is 13.4% / 8.1% / 14.8% respectively. Intensified employment competition, technology upgrading and Omo integration drive the growth of market scale, and also drive the training penetration rate to increase from 26.4% in 2020 to 33.1% in 2026. The competition pattern of vocational examination and training institutions shows a long tail trend. In 2020, Cr5 = 27.4%. With a training revenue of 1.9 billion in 2020, the company has obtained a market share of 2.9%, ranking third in the industry.
The scale of online users is leading and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated development. As a pioneer in online vocational examination training, the company has a rich product matrix such as online training courses, online learning products and chalk online platform. By the end of 2021, the company has accumulated more than 37.7 million registered users and 45.3 million online payment people. Based on the huge online user pool, about 67.5% of all offline course paying students of the company in 2021 came from online product paying users. The company’s offline channels have been rapidly rolled out. By the end of 2021, it has covered more than 260 cities in 31 provinces, autonomous regions and municipalities directly under the central government in China, with a total of 363 operation centers. The company has a professional R & D and lecturer team with strong course iteration ability, and carries out strict screening and systematic training for lecturers to ensure that lecturers closely follow the changes of students’ needs, admission standards, examination data, examination requirements and other key industry trends.
Purpose of raised funds. The purposes of the funds raised by the company in submitting the prospectus include: 1) strengthening and upgrading the existing curriculum content, especially the teacher qualification / teacher recruitment / Postgraduate Entrance Examination curriculum; 2) Develop and launch vocational skills training courses with high demand and great growth potential, such as information technology and cooking technology; 3) Strengthening technology development capacity and improving technology and infrastructure; 4) Recruit more experienced content developers and strengthen the ability of content development; 5) Selectively seek investment and acquisition opportunities to help penetrate the adjacent fields of China’s non academic vocational education and training market; 6) Launch advertising and promotional activities through various channels to carry out marketing activities for newly developed courses; 7) Working capital and general corporate purposes.
Risk warning: uncertainty risk of recruitment policy change; Intensified market competition; Offline business enrollment is less than expected; Risk of recurrence.
