Under the background of the national implementation of the double reduction policy, the main service objects are Chinese K12 students with extracurricular counseling needs. The performance of Xueda (Xiamen) Education Technology Group Co.Ltd(000526) (000526) based on “one-to-one” teaching counseling is undoubtedly impacted.
the performance loss in 2021 is nearly 590 million yuan
On January 14 Xueda (Xiamen) Education Technology Group Co.Ltd(000526) , the performance forecast for 2021 was released. During the period, the company is expected to realize an operating revenue of 2.48 billion yuan – 2.58 billion yuan; The net profit is expected to lose 480 million yuan to 590 million yuan, with a profit of 43.6877 million yuan in the same period of last year, a year-on-year decrease of 1199% – 1450%; Deducting non net profit, the estimated loss is 490 million yuan – 600 million yuan, with a profit of 80.4553 million yuan in the same period of last year; The loss of basic earnings per share is 5.1678 yuan / share -4.2043 yuan / share.
As for the reasons for performance changes, Xueda (Xiamen) Education Technology Group Co.Ltd(000526) said that on July 24, 2021, the general office of the CPC Central Committee and the general office of the State Council issued the opinions on further reducing the homework burden and after-school training burden of students in the stage of compulsory education. Since then, the competent education departments and local governments have successively issued relevant management policies (above referred to as the “double reduction policy”), and the company firmly supports the Party Central Committee The decision-making and deployment of the State Council deeply understood the significance of the “double reduction” work, strictly implemented relevant regulations and requirements, and operated in accordance with the law. In the reporting period, the existing business strategy and business structure were adjusted in combination with the actual situation, reducing the performance in the reporting period.
In addition, when the company acquired 100% equity of Xueda (Xiamen) Education Technology Group Co.Ltd(000526) group and Beijing XueDa Information Technology Group Co., Ltd. in May 2016, the difference between the merger cost and the fair value share of the identifiable net assets of the merged party formed the goodwill of RMB 1.527 billion in the company’s consolidated statements. Affected by the “double reduction policy”, based on the current operating conditions and the analysis and prediction of future operating conditions, and in accordance with the relevant provisions of enterprise regulatory risk tips No. 8 – goodwill impairment, accounting standards for business enterprises and the company’s accounting policies, and in accordance with the principle of prudence, The company preliminarily judged that the provision for goodwill impairment in the reporting period was 450 million yuan (the actual amount should be determined after evaluation and audit by the evaluation institution and audit institution), which reduced the performance in the reporting period.
It is noteworthy that in the first three quarters of 2021, Xueda (Xiamen) Education Technology Group Co.Ltd(000526) performance maintained an overall growth trend.
the company realized an operating revenue of RMB 2.152 billion in the first three quarters of 2021, an increase of 11.2% compared with the same period of the previous year, and the net profit attributable to the shareholders of the listed company was RMB 44.7767 million, an increase of 47.19% compared with the same period of the previous year.
Xueda (Xiamen) Education Technology Group Co.Ltd(000526) in the performance forecast, the company said that it had a deep understanding of the significance of the “double reduction policy”, strictly complied with educational regulations and policies, paid close attention to the changes of the industry situation, took prudent investment and steady development as the purpose, and ensured legal and compliant operation. During the reporting period, the company began to focus on enriching vocational education, quality, science and technology and other education and training products, Actively explore and expand new business growth points to enhance the company’s sustainable operation ability and core competitiveness.
industry transformation and adjustment
In 2021, under the background of gradually clarifying the policy orientation of each segment of the education industry, the market affirmed the long-term logic of the demand for higher education and vocational education. Listed companies in the education industry involving K12 age business also actively divested their assets and promoted the transformation plan.
in December 2021, the early education institution Dalian My Gym Education Technology Co.Ltd(002621) announced that the company would transfer 100% equity of Kaide education to Huzhou Tangwen Enterprise Management Consulting Co., Ltd. Kaide education is mainly engaged in English training and consulting services related to studying abroad at the age of K12. Dalian My Gym Education Technology Co.Ltd(002621) said that both parties to the transaction have completed the industrial and commercial change registration procedures of Kaide education equity in accordance with the relevant provisions of the agreement. After the completion of this industrial and commercial change, the listed company will no longer hold Kaide education equity or relevant assets engaged in discipline training business involving K12 age.
Xueda (Xiamen) Education Technology Group Co.Ltd(000526) it was also announced in November 2021 that in order to strictly comply with regulatory requirements and further adjust and optimize the existing business structure, the company plans to stop carrying out online discipline education and training business in the stage of compulsory education from January 1, 2022. The plan is expected to take effect before December 31, 2021. From the beginning of 2021 to the end of October, Xueda (Xiamen) Education Technology Group Co.Ltd(000526) at the stage of compulsory education, the operating revenue of online discipline education and training business accounts for about 5.6% of the operating revenue of the company’s education and training business (2019) the above revenues accounted for about 0.32%. Due to the phased impact of external factors such as New Coronavirus epidemic, the company focused on converting some of the stock curriculum teaching models from offline to online, resulting in a relatively high proportion of online business revenue. It is expected that with the weakening of external factors, the proportion of subject education and training business will quickly recover. The company will do a good job in matters related to this business adjustment. At the same time, on the basis of continuously consolidating the existing high school education and training business and non discipline business, the company will strive to enrich education and training products such as vocational education, quality and science and technology, and actively explore and expand new business growth points.
In the recently disclosed announcement on investor relations activities, Xueda (Xiamen) Education Technology Group Co.Ltd(000526) said that in the field of quality education, Beijing XueDa Information Technology Group Co., Ltd. (hereinafter referred to as “XueDa information”) and Beijing Wuling Technology Co., Ltd., a wholly-owned subsidiary of the company, jointly funded and established Beijing Lingyue Culture Communication Co., Ltd. as a business operation and comprehensive management platform for both parties in the field of picture books, Explore and layout in the direction of “artificial intelligence + education”, give play to the advantages of their respective resources, business and technology, and jointly explore the reading market for children and adolescents.
In the field of vocational education and science and technology education, XueDa information, a wholly-owned subsidiary of the company, signed the strategic cooperation framework agreement with Dane times Technology Group Co., Ltd. to carry out in-depth cooperation in non disciplinary education and training business in the radiation areas of the centers of both parties, including but not limited to adult vocational education, children’s programming education, intelligent Siasun Robot&Automation Co.Ltd(300024) courses, competition cooperation With the theme of science and technology, China’s overseas study tours, winter and summer camps and other types of businesses carry out cooperation in joint venture promotion and market development. Jointly contribute to the high-quality development of vocational education and provide solid talent and skill support for the comprehensive construction of a socialist modern country.
