With the performance of the 200213 quarterly report changed dramatically, Chinese public education received two letters of concern in just a few months. In the second letter of concern reply notice yesterday (65438+February 28th), Zhonggong Education stated that according to the statistics of its company's financial department, the refund amount from 20021to1from October to September was 65448.
In addition to the negative impact of the decrease in the number of participants, the high refund rate has also become the reason for the decline in the performance of Chinese public education.
In the face of the high refund rate since this year, Zhonggong Education said that this is due to the decline in the number of public officials recruited in 20021and the state's regulation of the off-campus training market, which has led some off-campus training enterprises to enter the field of vocational education and intensified market competition. 202 1 The proportion of classes with high fee refund in Chinese public education increased, which led to an increase in the overall fee refund rate of 202 1 compared with previous years.
On the other hand, Zhonggong Education said that the student loan also directly pushed up the agreement class refund rate, which was the main reason for the high refund rate in the fourth quarter of 2020 and the first three quarters of this year.
Behind the decline in performance: the refund rate of the agreement class in the first three quarters reached 65.8 1%.
If students fail to pass the examination or fail to pass the examination of civil servants, they can get a partial or full refund. As a leading enterprise in the public examination industry, the agreed classes provided by Chinese public education have the characteristics of partial or full refund if they fail the examination, and the training price of the agreed classes is obviously higher than that of the ordinary classes of Chinese public education.
However, since the beginning of this year, the high refund rate of the agreement class has become one of the reasons for the sharp year-on-year decline in the income of Chinese public education and its core business-civil servant training.
According to the letter of concern from Shenzhen Stock Exchange, in the first three quarters of 20021,the number and income of Chinese public education civil servants decreased by 16% and 1 1% respectively compared with 20 19, and decreased by 42% and 2 1% respectively compared with 2020.
In this regard, Zhonggong Education said that in the first three quarters of 20021,the income from series training of civil servants decreased year-on-year, and the main influencing factors were that the collection was less than expected and the refund increased more.
According to the announcement of Zhonggong Education, in recent years, the amount of fee refund for its agreed classes has shown an overall upward trend, including 20 19 7.423 billion yuan, 4414%, 2020 10009 billion yuan, 46.54% and 20265438.
As for its core business-series training for civil servants, the amount of refunds in the first three quarters of this year has increased substantially. Zhonggong Education explained that with the fierce market competition this year, the proportion of high-refund classes launched by the company has increased. However, in the absence of obvious increase in recruitment announcements and recruitment numbers, it is more difficult to improve the pass rate, resulting in an increase in refunds.
In addition, Zhonggong Education said that although the number of students participating in the training was expanded by using student loans, some students did not pay enough attention to the training and were not fully prepared for the exam, which led to the passing rate of students using loans being significantly lower than the normal passing rate of the company, which also led to a higher refund rate.
On the other hand, due to the advance of the 20021Provincial Civil Servant Joint Examination, Zhonggong Education pointed out that the examination students' preparation time was shortened, which weakened the students' willingness to participate in the training, thus affecting the reduction of the company's recruitment and training, and adversely affecting the company's curriculum arrangement. Some long-term classes could not be carried out and were replaced by non-long-term classes. This also affected its income in the first three quarters.
However, Zhonggong Education believes that its market share has not dropped significantly, and that the use of student loans has consolidated the original market share and further increased the number of participants.
Responding to the query of "high deposit and loan": sufficient funds are needed to deal with possible refunds.
In addition to the sharp decline in income, another high loan-to-deposit ratio issue of Chinese public education has been mentioned again. In the reply to the previous inquiry letter, Zhonggong Education stated that it needs sufficient funds to deal with possible refunds.
However, in the second letter of concern, Shenzhen Stock Exchange pointed out that the monetary funds, time deposits and wealth management products at the end of 202018, 20 19 and 2020 were RMB 2,786,543,800,000, RMB 3,768,000 and RMB 3,994,000,000 respectively after deducting the contractual liabilities (accounts received in advance).
In this regard, Zhonggong Education replied that the annual and year-end balances of monetary funds, time deposits and wealth management products are true, and the amount and balance of short-term bank loans are true, so there are many factors that need sufficient funds.
Among them, including the aforementioned agreement mode, sufficient funds are needed to deal with possible refunds. According to the announcement of Chinese public education, the income of its agreement class has been maintained at about 75% of the total income.
In view of the fact that students in the agreement class only need to refund most of their tuition fees, from the perspective of steady operation, the company needs to keep a certain amount of monetary funds or assets that can be realized in time to deal with the possible refund of fees in the agreement class.
In addition, Zhonggong Education pointed out that due to the strong seasonality of cash flow from operating activities, the company needs to borrow from some short-term banks to meet the seasonal capital demand.
On the other hand, since 20 18, Chinese public education has not stopped expanding, and its business scale and branches are growing. Zhonggong Education pointed out that it has purchased and built study and office places in Shandong, Jilin, Liaoning, Shaanxi and Beijing, and there is a certain demand for funds.
Enhance the company's ability to resist risks, and the funds consumed by operating losses have also been included in the reasons and purposes for Zhonggong Education to continue to increase its liabilities in the case of abundant monetary funds. Zhonggong Education said that in order to cope with the potential risks caused by repeated shocks of the epidemic, the company increased its cash reserves through bank loans to improve its risk resilience.
In addition, since the beginning of this year, the state has successively issued a series of policies to regulate the off-campus training market, and put forward a series of normative requirements for the vocational education and training industry where Chinese public education is located.
For example, the setting conditions of offline outlets, fire safety, class management, charge management, advertising and so on. It also has an impact on Chinese public education. Zhonggong Education pointed out that this led to the company's negative net operating cash flow in the first three quarters of 20021,resulting in a large number of operating losses.
After the announcement of reply was disclosed yesterday, as of today's close (65438+February 29th), Zhonggong Education rose 1.8 1% to close at 7.87 yuan/share.