Under the continuous loss, can Kaiyuan education, a vocational education giant with the label of “metaverse”, turn around by taking advantage of the policy

Huaxia Times reporter Yu Yujin reports from Beijing

As “metaverse” has become a “hot spicy chicken” in the hearts of enterprises, Kaiyuan Education (300338. SZ) has also labeled itself “metaverse”.

Kaiyuan Education said on the investor interaction platform on November 25 that the existing “metaverse” series courses of Tianhu education, such as indoor and outdoor 3D Max panoramic modeling, VR scene production, 3D dynamic creative design (role modeling, scene modeling, animation) and other related courses, have been delivered normally. On November 29, Kaiyuan education once raised the limit, and finally closed up 9.65%.

The reporter of Huaxia times called the relevant person in charge of Kaiyuan education as an investor. The person said that there was no concept of metaverse before. Now this concept appears. Metaverse has a wide range. There are elements of this concept in the curriculum we designed.

However, despite the lively concept of “metaverse”, Kaiyuan education has been losing money since 2019. As early as March 2017, it completed the acquisition of Hengqi education and CUHK talents, forming a dual main business of vocational education and instrument manufacturing. Two years later, Kaiyuan education stripped off the manufacturing industry and became a pure vocational education business. In this process, the original actual controller changed, Huge goodwill impairment has brought losses, and the epidemic is even worse.

Now, vocational education has ushered in favorable policies. Can Kaiyuan education fight a turnaround?

Self labeling “metaverse”

Kaiyuan education is hesitant about whether to label it “metaverse”.

As early as November 1, Kaiyuan education publicly said that it did not involve metaverse related businesses and AI intelligence related disciplines, and it will not rule out the development of related courses in the future.

After half a month, Kaiyuan Education said, “Tianhu education has developed and delivered metaverse series courses, indoor and outdoor 3D Max panoramic modeling and VR scene production, and the learning cycle is 25 days out of production; three-dimensional dynamic creative design (role modeling, scene modeling and animation) The learning cycle is 60 days of full-time production; the ue5 virtual reality design of Tianhu metaverse course series has been completed, and the learning cycle is expected to be about 2 months. “

According to the reporter, Kaiyuan education will acquire 44% equity of Tianhu education with 163 million yuan in 2020.

Kaiyuan education also said that Yunhu online, built for designers and online design education, is determined to gather students and designers from all over the world to build a design metaverse platform to jointly complete design projects and technical exchange and sharing. At present, more than 1.24 million users have settled in.

Since then, Kaiyuan education has frequently replied to investors’ questions about metaverse on the investor interaction platform. For example, the historical average price of offline enrollment of Tianhu education has exceeded 10000 yuan, and more than 7000 students have enrolled in 2021.

Kaiyuan education did not give a clear answer to whether it was a hot spot from not involving metaverse related businesses to answering related metaverse related courses in detail, “The real-time dynamic development of business operation makes it impossible to inform the real-time operation data. The specific operation data and financial data will be disclosed in the regular report in strict accordance with the relevant regulations of Shenzhen Stock Exchange. In the future, the development and application of ‘metaverse’ technology and the development process of talent demand market are still uncertain, and the impact on the company cannot be accurately evaluated. Please invest rationally Capital. “

Continuous loss

At present, Kaiyuan education is a domestic vocational education company, which wholly controls two subsidiaries of Shanghai Hengqi education and training Co., Ltd. (hereinafter referred to as “Hengqi education”) and Zhongda Yingcai (Beijing) Network Education Technology Co., Ltd. (hereinafter referred to as “Zhongda Yingcai”), and its business spans the four major tracks of “vocational skill training, vocational qualification examination training and academic counseling services”.

Kaiyuan education, formerly known as Kaiyuan shares and Kaiyuan instruments, was founded in 1992 and listed on the gem of Shenzhen Stock Exchange in July 2012. It specializes in the R & D, production and sales of a full set of equipment for mining, manufacturing and chemical in the field of coal quality detection. However, as the coal industry enters the cold winter, the demand for detection analyzers in the domestic market gradually shrinks, and the deducted non net profit of Kaiyuan instruments in 2015 was only 1.4398 million Yuan and began to solve the dilemma through M & A.

On August 16, 2016, Kaiyuan instrument said that it planned to acquire 100% equity of Shanghai Hengqi education by issuing shares and paying cash, with a transaction amount of 1.2 billion yuan; and acquire 70% equity of Zhongda Yingcai in the same way, with a transaction amount of 182 million yuan. The merger was approved by the CSRC in December of that year, and Kaiyuan instrument consolidated the financial statements of the two companies in March of the next year in order to adapt to the situation For the needs of double main business, Kaiyuan instrument was also renamed Kaiyuan shares.

In 2017 and 2018, the net profit of Kaiyuan shares increased by 55.31% and 2617.09% year-on-year, to RMB 5.8916 million and RMB 160 million respectively.

However, the good times are not long. Kaiyuan education lost 635 million yuan in 2019, which is due to the decline in the profits of vocational education business, which led to the provision for large amount of goodwill impairment in the reporting period, and the expansion of the original manufacturing loss due to the transfer loss of financial assets caused by the stripping of manufacturing industry.

In November 2018 before the loss, Luo Jian, the former chairman of Kaiyuan education, resigned as the chairman of the company and cashed out.

The sudden epidemic in 2020 made Kaiyuan education even worse. The impact of the epidemic and the provision for goodwill impairment led to a significant loss of 766 million yuan in 2020.

For the loss, the above Kaiyuan educator told our reporter, “before the loss was affected by the epidemic, the company also carried out online promotion, but because we had more than 400 campuses offline, we had to suspend classes before. During the recovery of the epidemic, the consumption ability of consumers was also severely damaged.”

In the first three quarters of this year, Kaiyuan education still suffered a loss of 180 million yuan.

Can vocational education turn over?

Before the stock price change on November 29, Kaiyuan education had gained several trading limits this year, especially on October 13 and October 14.

On October 12 this year, the central office and the State Council Office issued the opinions on promoting the high-quality development of modern vocational education (hereinafter referred to as the “opinions”), encouraging listed companies and industry leading enterprises to organize vocational education and encouraging all kinds of enterprises to participate in vocational education according to law. Industry leading enterprises are encouraged to lead the establishment of national and industrial vocational education groups and promote substantive operation.

In this regard, the above Kaiyuan educator said, “the policy is really good for the company, and the company’s share price has been rising two days after the policy came out.”

Ge Wenwei, partner of Duojing capital, said in an interview with Huaxia times at the end of October this year that at present, vocational education is divided into three categories. The first category focuses on textual research, such as Dane education, intellectual education and public education; The second category is entity vocational schools, such as Hong Kong stock higher vocational colleges; The third category is short-term skill training, such as chef and auto repair training. The policies issued by the central office and the state office are good for physical vocational schools.

According to ge Wenwei’s analysis, the state is also encouraging large enterprises such as iFLYTEK and Huawei to hold vocational education. It is encouraged by policies for leading companies that have been deeply cultivated in an industry for many years to do vocational education.

For the combination of production and learning, the above Kaiyuan educator said, “the company also has this consideration. The company will evaluate and plan.”

“The company takes vocational skill training as its core business, always adheres to cooperating with industry, schools and leading enterprises, explores the integration training system of vocational education, transmits excellent experience, skills and learning methods to students, and is committed to integrating China’s vocational education resources to create a lifelong vocational education system and personalized learning education system for students.” Kaiyuan education further said that in the future, the company will make unremitting efforts to become an integrator of China’s vocational education resources and a participant in China’s vocational education standards, and spare no effort to promote the development of China’s vocational education. The preference and strong support of national policies for vocational education constitute a long-term good for the company’s main business. The company will take positive action to seize the opportunity to become bigger and stronger.