Offcn Education Technology Co.Ltd(002607) april 28 issue the first quarter report of 2022. During the reporting period, the company achieved an operating income of 1.213 billion yuan and a net loss of 464 million yuan, which narrowed significantly month on month, and the net operating cash flow also turned positive month on month. The annual operation boost plan has gradually achieved results.
For the year-on-year fluctuations in the first quarter results, Offcn Education Technology Co.Ltd(002607) announced that since 2022, the company’s external business environment has faced more severe challenges than that in 2021. Especially since March, the peak of enrollment over the years, the epidemic has spread in many places across the country, many cities have taken more stringent prevention and control measures, and hundreds of direct branches around the company have been suspended in stages. At the same time, the Joint Provincial examination, national examination interview and public institution examination have been postponed one after another, and the company’s enrollment and teaching have been greatly affected. The uncertainty of the business environment objectively impacts the development of training business and has a certain impact on the company’s performance.
Offcn Education Technology Co.Ltd(002607) said that the business boosting plan in 2022 was gradually effective, especially in terms of cost optimization and product structure adjustment. In terms of cost side optimization, the company implemented the amoeba business reform plan internally. During the reporting period, the total operating cost continued to be optimized, falling from 1.979 billion yuan to 1.77 billion yuan, a year-on-year decrease of 10.57%. During this period, the sales expense was 396 million yuan, a year-on-year decrease of 9.1%; The management fee was 320 million yuan, a year-on-year decrease of 5.92%; The financial cost was 70 million yuan, a year-on-year decrease of 35.97%, and there is still room for follow-up optimization; In terms of product structure adjustment, the company actively adjusted the product structure, continuously reduced the high refund proportion of products, and shifted from the expansion product strategy to stability. Thanks to the above work, the cash received by the company from selling goods and providing labor services is still basically the same as that in the same period last year. According to the financial report, in the first quarter of 2022, the net cash flow from operating activities of the company was 597 million yuan.
The company said that in the future, it will continue to maintain a prudent and prudent business strategy, timely judge and respond to market risks, continue to promote the 2022 business boost plan and improve the company’s operational efficiency through internal optimization, cost reduction and efficiency enhancement, structural product adjustment and accelerating the development of new business. At the same time, it will continue to expand the layout of relevant businesses in the field of vocational education and seize the strategic opportunity of the rapid development of vocational education.
