In 2019, it has more than 300 million revenues and a net profit of less than 50 million yuan.
Recently, Zhengzhou K12 leader Dashan Education submitted a prospectus to the Hong Kong Stock Exchange in preparation for completing an IPO in Hong Kong. This will also become the third Hong Kong-listed K12 listed company after Excellence Education and Think Music Education. The sole sponsor is Tongren Capital Limited.
Dashan Education was established in 1998 and mainly provides after-school education services in primary and secondary schools in Zhengzhou. It was listed on the New Third Board in 2016 and delisted in 2018. Sullivan is the largest after-school service provider in Zhengzhou based on enrollment in 2018.
In terms of revenue, Dashan Education ranks second in Henan, with a market share of 2.2%. 50 million yuan away from the first place.
In fact, the after-school tutoring income of Henan in 2018 was 31.4 billion yuan, with a compound growth rate of 12.5%; it is estimated that by 2024, it will exceed 58.9 billion yuan. The top five market share of Zhengzhou is 61%, and the market share of Dashan Education is about 17.5%. However, Henan’s top five market share is only 9.9%.
As we all know, Henan’s college entrance examination is under great pressure. In 2019, there will be approximately 1.1 million students enrolled in the college entrance examination, occupying the first place in the country. However, the enrollment rate of a university is only 11.9%, which is the third lowest in 28 provinces. Note: The enrollment rate of a university in China is 17.7%, which is much higher than Henan.
Dashan Education currently has 80 self-operated teaching centers (1 in Xinxiang and the rest in Zhengzhou). There were 41,000 students in 2017, 54,000 in 2018, and the top three in 2019. There were 58,000 in the quarter. Corresponds to 1005 teachers.
In the risk reminder, according to Dashan Education, 58 of the 88 leased properties were defective. The reasons for the defects included the lessor’s failure to provide the house ownership certificate regarding its legal rights to lease these properties, and the lessor No authorization to lease property. And the lease agreements of its 73 teaching centers have not been registered with the relevant government agencies, and each unregistered lease may be fined between RMB 1,000 and 10,000.
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On October 31, 2019, SCGC Capital invested USD 7.08 million in convertible notes, and the number of convertible shares was 5.26% . SCGC Capital’s shareholders have a luxurious background. The first shareholder is Shenzhen State-owned Assets Supervision and Administration Commission, holding 46.63% of the shares; the second largest shareholder is Shenzhen Xinghewan, holding 20% of the shares; the third largest shareholder is Shanghai Public Utilities Group, a listed company with A + H shares , Holding 10.8%.
Before the IPO, Zhang Hongjun, the founder of Dashan Education, directly held 87.27% through Ruitian International, a wholly-owned company, and the remaining 12.73% was held by Baitai. And Baitai is mainly held by executives.
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