Securities code: Kaiyuan Education Technology Group Co.Ltd(300338) securities abbreviation: Kaiyuan Education Technology Group Co.Ltd(300338) Announcement No.: 2022023 Kaiyuan Education Technology Group Co.Ltd(300338)
With regard to the announcement that the company’s outstanding losses reach one-third of the total paid in capital, the company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions. 1、 Overview of the situation
Audited by Tianjian Certified Public Accountants (special general partnership), as of December 31, 2021, Kaiyuan Education Technology Group Co.Ltd(300338) (hereinafter referred to as “the company”) has audited that the undistributed profit in the consolidated balance sheet is -14377034896 yuan, the amount of the company’s outstanding loss is 14377034896 yuan, the company’s paid in share capital is 33961969200 yuan, and the amount of the company’s outstanding loss exceeds one third of the total paid in share capital.
According to the relevant provisions of the company law of the people’s Republic of China and the articles of association, this matter still needs to be submitted to the 2021 annual general meeting of shareholders for deliberation. 2、 Reasons for loss
The company’s outstanding losses exceeded one-third of the total paid in share capital, mainly due to the company’s significant losses in 2019, 2020 and 2021.
The main reasons for the loss in 2021 are as follows:
Business decline due to the impact of the epidemic: due to the repeated regional impact of covid-19 epidemic, the offline business of vocational education cannot resume work and classes on time, resulting in the recovery of business sales order turnover not up to expectations and the delay of teaching delivery progress; At the same time, the company’s online business scale accounts for a relatively small proportion, which can not offset the impact of the decline of offline business. As a result, the overall operating income of the company recovered slowly and continued to suffer significant losses.
Provision for impairment of Goodwill: due to the continuous impact of the epidemic, the further intensification of competition in the vocational education market and the actual operation of the company’s vocational education sector, the company made a total provision for impairment of goodwill of 562324 million yuan in the reporting period, accounting for 12.20% of the net profit attributable to the shareholders of the parent company in the current period.
3、 Proposed measures
The company has conducted in-depth discussion and Analysis on the current situation and internal environment, and put forward the improvement measures affecting the sustainable operation ability as follows:
1. Actively respond to the repeated epidemic, and focus on strengthening the management of class elimination
In 2021, the company focused on promoting the business recovery in the post epidemic era. However, due to the repeated impact of the epidemic and the high proportion of education and training services under the middle line of the existing business structure, the average output value of the company’s single school has not returned to the normal level, and the teaching delivery process has been greatly affected, resulting in the continued rise of the company’s contract liability balance in the reporting period, reaching 603 million yuan by the end of 2021.
Although the epidemic continues to repeat regionally, under the strong control of our party and the Chinese government, the management expects that the impact of the epidemic in China is unsustainable and mankind will eventually overcome the epidemic. In 2022, the company will focus on: (1) actively responding to the epidemic. First of all, we should pay close attention to the epidemic prevention and control as before to ensure the stability of the company’s team and operation; Secondly, unite as one, deeply tap internal potential, improve team collaboration efficiency, strengthen user thinking and business awareness, and realize iterative upgrading of management ability; Finally, embrace change, formulate a sound and efficient business plan, pay close attention to implementation, correct deficiencies and make up for weaknesses, so as to improve the comprehensive operating efficiency of the enterprise. (2) Focus on strengthening the management of class elimination. First, strengthen the source management and optimize the management of enrollment agreement, suspension, refund and repair; Secondly, optimize the course scheduling management of the campus and accelerate the delivery cycle; Finally, strengthen the comprehensive assessment, and include the completion rate index of course scheduling income into the monthly performance assessment scheme from campus teachers to management at all levels, so as to improve the execution.
2. Deepen the research and development of content and technology and promote the rapid development of online education business
The company will continue to adhere to the concept of “technology driven”, deepen content and technology research and development, increase investment with the help of “meta universe” technology, accelerate the development and construction of Hengqi online school platform, and upgrade and optimize online platforms such as CUHK online school and Yunhu online; Strengthen product innovation, develop and create cost-effective and high-quality course products, enrich the online product category matrix to meet the market demand, and promote the rapid development of online education business.
3. We will strictly reduce costs and increase efficiency and strictly control costs
By optimizing the preparation, adjusting the performance plan, controlling the promotion cost, reducing the discount interest of students, reducing outsourcing R & D, reducing rent, and practicing diligence and thrift, we can promote the rapid reduction of costs.
4. Implement the “central kitchen” strategy to improve the company’s core competitiveness and business quality
Since the outbreak of covid-19 epidemic in 2020, the scale growth of vocational education business has been greatly limited, while the fixed cost remains high. In this regard, the company will open the “central kitchen” middle platform of constant enterprise education to the whole society by establishing the “central kitchen” middle platform, comprehensively empowering the campus, and creating a new franchise model, including four standardized agent products: flow realization agent, content delivery agent, whole store output agent and brand output agent, so as to create the whole society’s vocational education and training ecology, reduce the systematic training cost and improve the training efficiency and effect. In 2022, the company will fully start the strategic transformation of “central kitchen”, implement the restructuring of the campus, change the self operated campus mode into the franchised campus mode, concentrate the existing resources to provide students with the best quality products and high-quality services, significantly reduce the company’s fixed cost expenditure level, improve the company’s core competitiveness and improve the operation quality of listed companies. 4、 Directory of documents for future reference
Resolution of the 23rd Meeting of the 4th board of directors of the company.
It is hereby announced.
Kaiyuan Education Technology Group Co.Ltd(300338) board of directors April 29, 2022
