The unusually huge profit fluctuation of public education in China has triggered the Shenzhen Stock Exchange to issue two letters of concern, asking for an explanation on the problems such as the sharp drop in contractual liabilities (that is, the tuition fees charged in advance by agreed classes and ordinary classes) and the large amount of deposits and loans. In addition, Zhonggong Education was recently investigated by the Securities and Futures Commission for allegedly failing to disclose related party transactions as required. Examining civil servants has increasingly become the mainstream option for the employment of contemporary young people. In 2020, about 1 of every 45 young people under the age of 35 will apply for civil servants. Taking an examination of civil servants, Chinese public education is almost an unavoidable name. Outside the examination room on the university campus, people can see its fiery posters and advertising flags everywhere.

The year 2020 is the heyday of public education in China. In the first three quarters, the number of trainees in the public examination of Chinese public education was close to 1, 654,380+million. Based on the comprehensive examination number and participation rate, it can be found that about half of the students have signed up for Chinese public education. Further, according to the third party organization Frost &; According to Sullivan's statistics, the market share of Chinese public education in the public examination industry has reached 33% in 20 19, which is more than twice that of the second-place painting education.

If traced back to 20 18, Zhonggong Education immediately became the first public examination training after landing in A shares with Yaxia Automobile. Zhonggong Education signed a gambling agreement with Yaxia Automobile, and its net profit in the next three years will reach 930 million yuan, 654.38+0.3 billion yuan and 654.38+0.65 billion yuan respectively. Surprisingly, under the pressure of the epidemic, Zhonggong Education still achieved a net profit of 65.438+55 billion yuan in the third quarter of 2020, a year-on-year increase of 234%, fulfilling its performance promise ahead of schedule. This makes the share price of Zhonggong Education go up all the way, reaching the peak of 43.58 yuan per share in 2020, with a market value of 268.7 billion yuan, exceeding the peak of 33.9 billion dollars in New Oriental.

As of the close of 65438+20221October 20th, the stock price of Zhonggong Education, 7.2 yuan, has a market value of 44.4 billion yuan, which is over 80% higher than the peak value. Some people have analyzed that there are two reasons for this result. First, it is affected by the overall shock of the education sector; The second is to superimpose the third quarter performance "big face change".