Can online education return to reason?
The butterfly effect caused by the listing of Hujiang Hongkong stock market is happening.
Recently, according to media “Finance Graffiti” sources said that Fu Cairui, founder and CEO of Educational Technology Co., Ltd. (hereinafter referred to as: Hujiang), stepped down as legal representative and chairman, and replaced it with Song Xiangwei. In addition, the news also stated that a number of gambling agreements signed by Hujiang in the previous rounds of D and E financing will also be triggered.
Querying Tianyan’s information revealed that Hujiang has recently made a number of business changes, including adjustments to its legal representative and chairman.
The hidden dangers of the “triggering agreement” mentioned in the report have brought many crises to Shanghai. Although Hujiang has said that there is no gambling agreement, Wanxin Media, which is in a dispute with Hujiang, has already issued a statement to prove the truth of the rumors.
Wanxin Media has issued an announcement saying that it signed an Investment Cooperation Agreement with Hujiang in October 2015 and subscribed for 266,700 shares at a price of 100 million yuan, accounting for the total shares of Hujiang after the additional issue. The proportion is 1.43%. Wanxin Media also stated in the announcement In addition to force majeure (including but not limited to national policies and listing queuing factors), for example, if Hujiang failed to complete the listing and issuance by the end of 2018 (main board, medium and small) Board, ChiNext, Strategic Emerging Edition), Hujiang needs to repurchase shares held by investors at the repurchase price, which is the sum of the investment amount plus interest calculated at 10% compound interest per year.
And Hujiang’s dream of being listed in Hong Kong Hong Kong’s listing dream finally broke on May 7 this year, Hujiang then responded that the The listing plan has indeed been adjusted. This adjustment is the company’s active adjustment after various factors such as the comprehensive market environment and future development. The company will choose to land in the capital market at the right time at the right time.
This means that the previous gambling agreement signed by Hujiang with multiple stakeholders will also take effect.
According to the previous listing prospectus submitted by Hujiang, Hujiang’s losses in 2015, 2016, and 2017 were 280 million yuan, 422 million yuan, and 537 million yuan, respectively. It is to enhance the imagination of valuation and serve as a service. The business-oriented CCtalk is still not profitable. The trials facing Shanghai’s own business have also increased the uncertainty of listing.
However, HujiangSome good news was announced last week. According to the public account “Hujiang Gramophone”, Hujiang has achieved profit for 5 consecutive months, and has made a loss. Industry insiders analyzed that Hujiang achieved profitability in June and its user base continued to grow, largely thanks to cost control after personnel optimization.
In March of this year, Hujiang adjusted itself. It is reported that Hujiang has cut its staff by 95%, involving Hujiang’s senior management, marketing department, and supervision department, and all teachers have been laid off. At that time, he sought confirmation from Hujiang about the matter, and the other party stated that the listing is still in progress and there is no gambling agreement. The rumors of “95% layoffs” are seriously misrepresented. Recently, optimization and consolidation of loss-making business lines have been carried out to further increase revenues and reduce expenditures, and improve the ability to resist risks and connect with capital markets.
However, from insiders of Hujiang, Hujiang did lay off staff. The number of employees was around 1,000, involving all posts. According to previous reports from Wall Street, the total number of employees of Hujiang Education about 2400 years ago.
Although Hujiang failed to list Hong Kong stocks as scheduled this year, today’s optimization adjustments can lay a good foundation for subsequent listings.
The addition of capital has led to the chaos of online education, and players from all walks of life are desperately smashing money to seek performance growth, ignoring the hidden dangers of losses. But after the capital has cooled down, online education still has to return to rational growth.