Since going public in the United States, head education has been doomed. On July 30, it was reported on the Internet that principal education was laying off employees, with the proportion of layoffs as high as 70%. There are even rumors that "(the relevant departments) have found Tencent for several rounds and let Tencent take over (manage) the head."
In this regard, Zhang Yi, founder and CEO of Head Education, said in a circle of friends, "The existing business of (Head Education) will develop better, healthily and orderly according to policies, and at the same time increase investment in quality education. We have to bid farewell to some business partners and seek more talents in quality education to meet the expectations of society."
Bedo Finance found that Zhang Yi did not deny the layoffs. Zhang Yi said that the reason for layoffs is that the transformation needs more qualified educational talents, not financial problems. Zhang Yi said, "There are even people who say that layoffs are due to financial problems." .
The implication is that head education is not short of money. According to its prospectus submitted to the US Securities and Exchange Commission (SEC), as of March 20021year, it held about 457 million US dollars in cash and cash equivalents. In the same period, Head Education's debt was $864 million.
On the books, it is difficult for the cash of head education to cover the liabilities. However, there is no problem with the cash flow of head education. According to the prospectus, in 2020, the enrollment rate of 1 and 1 paying students was 544,800, an increase of 43.2% compared with 380,500 in 20 19.
It is understood that head education was listed on the New York Stock Exchange on June 8, 20021. This time, the IPO price of head education in the United States is 1 1.50 USD /ADS, and the number of shares issued is 3.623 million. Based on this calculation, the amount of funds raised for head education is $465,438 +0.7 million (excluding over-allotment).
Financially, the income from head education in 20 19 and 2020 will be 2.669 billion yuan and 40.1800 million yuan respectively, which is 50.6% higher than that in 20 19 in 2020. The corresponding net losses were 65.438+0.504 billion yuan, 654.38+0.0/kloc-0.20 billion yuan respectively, and the total losses in recent two years were 2.5/kloc-0.60 billion yuan.
The data shows that the loss scale of head education is growing. Among them, the loss in the first quarter of 202/KLOC-0 increased by 244 times to 497 million yuan. It is noteworthy that the scale of head education in the first quarter of 20021is equivalent to half of its loss in 2020.
Bedo Finance learned from the social platform of workplace real-name authentication that head education began to lay off employees in the middle of 20021year. Some users broke the news that the product "Xiao Li AI Classroom" of the Principal Education AI Division has laid off more than 200 people, while the total number of principal education employees is only about 1 1,000.
At the same time of layoffs, head education has not stopped recruiting new employees. It is understood that Zhang Yi, the helm of Head Education, also said that he is "seeking more talents in quality education to meet the expectations of the society for the company".
In fact, in addition to the adjustment of the principal's academic qualifications and layoffs, Good Future and Gaotu Group (who studied together) have also begun to lay off employees. Among them, Zhang Bangxin, CEO of Good Future, said that businesses without demand will definitely be shut down, and employees of corresponding businesses will be transferred first if they can transfer jobs internally, and those who cannot be transferred will be compensated.
HR, the expressway group, told Bedo Finance that his group had not been affected in any way. The human resources department said that it belongs to the adult vocational education department and (related policies) have not been affected. According to LatePost, Chen Xiangdong, founder and CEO of Gaotu Group, held a meeting to close 13 centers, leaving only three.
On July 30th, Chen Xiangdong also issued an internal letter, saying, "I am very, very sorry that we have to make such a difficult decision. Very, very sad, many of our friends will have to leave. Very, very sad, we have to give up so many feelings and have to give up. "
In response to the layoffs, Head Education responded that the main optimization is the low-grade project team, because these businesses do not meet the requirements of national policies, and other product teams will adjust the compliance of teaching time according to the requirements of national policies, and also conduct normal teaching.
Zhangmen Education also stated that its positions as teaching teacher, class teacher and course consultant are all in normal operation. The overall business situation is stable and the financial situation is good. Zhang Yi also said that head education is a listed company with open financial reports and abundant funds.
Bedo Finance learned that since the listing of 202 1 on June 8, the share price of head education has been falling all the way. As of July 30th, US stocks closed at $5.30 per share, 53.9 1.50% lower than the IPO price of $65,438+$065,438, with a total market value of $836 million.
During this period, Chief Financial Officer (CFO) of Head Education also announced on July 9, 20021year that Ricky Kwok Yin Ng (Wu) resigned as Chief Financial Officer and Director of Head Education. After resigning, Wu was appointed as the vice president in charge of education business.
It is worth noting that the F-round investors of Head Education (including Softbank, Sheng Yuan Capital, CMC Capital, etc.) are all losing money on their books. In addition, Softbank and Sheng Yuan Capital are also the cornerstone investors of head education, and they plan to subscribe for ADS with a price of no more than $6,543,805 in IPO, which also suffered heavy losses.
In addition, there are many teachers in Zhangmen Education who work without a license. By March 3, 202654381,the company had more than 45,000 teachers, including about 25,000 full-time teachers and about 20,000 part-time teachers (1 1995), including teachers provided by third-party service providers.
According to the information disclosed in the prospectus of Zhangmen Education, as of March 3, 20265438, 69.6% of the company's full-time employees have obtained the teacher qualification certificate, and 2.3% of the full-time K- 12 teachers have passed the teacher qualification examination.
This also means that as of March 3, 20021year, about 30.4% of the full-time teachers in head education still do not hold the teacher qualification certificate. According to the number of 25,000 full-time teachers, about 7,600 full-time teachers in head education are in a "streaking" state.