The main income of Dashan Education, which is cultivating offline, also comes from offline tuition income.
Editor’s note: This article comes from the WeChat public account “Voice of Securities Daily” (ID: securitiesdaily) , author : Li Chunlian.
Ten days after Dashan Education submitted its prospectus to the Hong Kong Stock Exchange, the epidemic spread to the whole country. After the epidemic, offline education institutions became the hardest hit areas, and Dashan Education’s listing in Hong Kong also cast a shadow.
As of now, there have been offline institutions such as Brother Lian Education and Mingxi Language, which have been closed due to funding constraints.
Since the resumption of classes by offline training institutions is far from being expected, some insiders expect that 60% of offline institutions in the education industry will close after June.
While relying heavily on offline Dashan Education, offline revenue in the first three quarters of 2019 accounted for 94.2% of full-year results in 2018, and its online business is still in its infancy, with a total of 366,000 yuan in the first three quarters of 2019 income.
On April 20, a reporter from the Securities Daily called the Dongming Road campus and the Yousheng Road campus phone according to the phone number announced by the official website of Dashan Education, and they all indicated that they had owed payment for downtime; No one answered the phone.
A staff member of Dashan Education Garden Road campus told the “Securities Daily” reporter that, due to the epidemic, no courses are currently taking place offline.
Over 90% offline revenue
It is understood that Dashan Education is the largest post-primary education institution in Henan. It currently focuses on the post-primary education in primary and secondary schools. It has brands such as Dashan Foreign Language, Yufuzi Language and Decimal Mathematics.
At present, there are a total of 80 direct education outlets in Henan Province, of which 79 are located in Zhengzhou City and 1 is located in Xinxiang. The prospectus also mentioned that it plans to establish 140 direct education centers by the end of 2022, with the intention of occupying the sinking market.
The main income of Dashan Education under the deep cultivation line also comes from the offline tuition income.
The prospectus shows that in 2018 Dashan Education received a revenue of 289 million yuan, a 33.3% increase over the same period, and a net profit of 53.556 million yuan, a year-on-year increase of 44.7%. For the nine months ended September 30, 2019, Dashan Education achieved revenue of 277 million yuan, a year-on-year increase of 33.9%.
In the first three quarters of 2019, the income of Dashan Education’s offline teaching and auxiliary classes has reached 259 million yuan, accounting for 94.2% of the 2018 annual results. Offline tuition income is the core source of income for Dashan Education.
According to business segment revenue, Dashan English (English tutoring business) is the main business of Dashan Education. In 2019, Dashan