01
year turnaround,
gross margin hit a new high
since listing
Recently, Onli Education disclosed the 2021 semi-annual report. In the first half of the year, it achieved operating income of 901.7 million yuan, a year-on-year increase of 14.8%. The net profit attributable to shareholders of listed companies was 169 million yuan, a year-on-year increase of 311 %.
In addition, the company's operating cost in the first half of 2021 was 490 million, a year-on-year decrease of 15.6%, pushing gross profit margin up by 19.7 percentage points to 45.33%, reaching the highest level since listing.
Attributable net profit in installments, the first quarter was 51.6 million, the second quarter was 117.5 million, and the second quarter was full.
But after deducting non-recurring gains and losses,Its net profit performance in the second quarter was a bit unsatisfactory. The net profit in the first quarter and the second quarter after deduction was 25.91 million and -3.865 million, respectively. The second quarter deduction of non-net profit decreased by 114.92% from the previous quarter.
It can be seen that Onlly Education’s net profit from operations in the first half of the year was only 22.05 million yuan, but fortunately there was a 116.66% increase year-on-year, and a loss of 130 million yuan in the same period last year.
As of June 30, 2021, Onlly Education’s education and training business has achieved operating income of 850 million yuan, accounting for 94.25% of the company’s operating income, of which business income involving discipline training accounts for about the company 80.68% of operating revenue; other integrated businesses only accounted for 5.75% of total revenue.
It is worth noting that the data disclosed in the 2020 annual report of Ongli Education shows that in 2020, the company’s education service business achieved operating income of 1.521 billion yuan, accounting for approximately 84% of the company’s operating income. Among them, the business income of discipline tutoring accounts for about 55% of the company's total income.
It is not difficult to see that K12 subject training business is the absolute cash cow of Onli Education. Regrettably, this cash cow will start to lose weight after "July 24".
data shows that Onlly Education’s operating cash flow has increased from -196 million in the same period last year to 151 million in the current period.A year-on-year increase of 176.8%.
02
debt ratio to rise,
frequently sell assets
As of June 30, 2021, Onlly Education’s asset-liability ratio was 77.72%, an increase of 12.55 percentage points year-on-year, and current liabilities were 2.159 billion yuan, accounting for 81.15% of total liabilities.
It can be seen from the chart data that the debt-to-asset ratio of Ongli Education has accelerated, especially after the pressure in 2019.
In fact, Onlly Education has made frequent actions in recent years, and it has also revealed to the outside world its determination to reduce debt and ease funding constraints.Such as optimizing the asset structure.
The semi-annual report shows that since the end of 2020, Onlly Education has successively reviewed and approved the "Proposal on the sale of shares of Shanghai Jiaotong University Zhongjing Forging Co., Ltd. and Jiangsu Nanyang Zhongjing Technology Co., Ltd. and related transactions." , "The Company's Proposal on the Sale of the Equity of Kunshan Xinnanyang Education Development Co., Ltd. by the Holding Subsidiary", and the sale of the real estate (including building And related assets such as the state-owned construction land use right of the land attached to the building.
The impact of the above three equity transactions on the net profit of Angli Education in the first half of 2021 is expected to be 6.18 million yuan, 19.29 million yuan and 94.41 million yuan respectively, accounting for 70.89% of net profit in total .
The earlier announcement revealed that the transaction consideration of Shanghai Jiaotong University Zhongjing was 42.178 million yuan, the transaction consideration of Jiangsu Nanyang Zhongjing was 13.426 million yuan; the consideration of Kunshan Xinnanyang was 100 million yuan; The transaction price of the real estate at No. 955 Panyu Road in the district was 174.38 million yuan.
There will be a final payment in the later period.
It is worth noting that in October 2019, ONLY Education chose to sell real estate due to shortage of funds. At that time, Ongli Education issued an announcement stating that it planned to sell 10 properties of its wholly-owned subsidiary in Xuhui District, Shanghai for a price of about 100 million yuan.
At that time, some people in the industry said that when the company faces financial difficulties, it has become a common phenomenon to replenish liquidity by selling real estate assets for cash, and it has become a common phenomenon to sell houses at the end of the year. There are not a few listed companies with pretty financial statements.
However, when the 2020 annual performance report is released thereafter, Ongli Education stated to the media that the sale of assets has nothing to do with substantial losses.
In addition to the sale of idle assets, in the first half of 2021, Onli Education also had two major events, the resignation of the founder and the change of equity.
On March 10, 2021, four months before the release of the "double reduction" opinion, Lin Tao, a 28-year education veteran, founder of Ongli Education, and former group president, announced his resignation.
According to media reports, Lin Tao, who has successfully retired, will devote himself to equity investment, and jointly established a village Onlly Education Industry Fund with Liu Jing, the managing partner of One Village Capital , The fund will become a special fund focusing on the education industry.
On June 28, 2021, Onlly Education announced that Shanghai Jiaotong University intends to transfer its 90% equity interest in Jiaotong University Industrial Group and 100% equity interest in Jiaotong University Enterprise Management Center to Shanghai State-owned Assets Supervision and Administration Commission.This free transfer will lead to changes in the controlling shareholder of the company's shareholders, Jiaotong University Industrial Group and Jiaotong University Enterprise Management Center, and will be changed to the Shanghai State-owned Assets Supervision and Administration Commission. Changes in equity due to gratuitous transfers will not lead to changes in the company's current status of no controlling shareholders and actual controllers.
semi-annual report data shows that as of the end of June 2021, Shanghai Jiaotong University Industry Group and Jiaotong University Enterprise Management Center hold 10.13% and 6.45% of the equity of Ongli Education, ranking first and fifth. shareholder.
After the completion of this free transfer, the Shanghai SASAC will indirectly hold 15.57% of the shares of Ongli Education.
03
Main trapped,
transition imperative
It is reported that Ongli Education was founded in August 1983,Its predecessor was the Work-Study Technology Center of Shanghai Jiao Tong University, which was controlled by Shanghai Jiao Tong University.
In July 2014, the listed company Xin Nanyang completed a major asset reorganization of Shanghai Onley Education Technology Group Co., Ltd. (hereinafter referred to as Onley Education), and Onley Education became a wholly-owned subsidiary of Xin Nanyang. The subsidiary is also the only domestic K12 education company that has landed A shares through private placement.
After the completion of the merger, the main business of Xin Nanyang is the education service business. The strategic work center is to expand the development of the education service business, and further strengthen the rectification and divestiture of non-education industries, and further resources Gather to the education service business.
In November 2018, the company's securities abbreviation was officially changed from "Xin Nanyang" to "Only Education", and the securities code remained unchanged.
The 20201 semi-annual report shows that Onlly Education currently focuses on education and training, providing K12 subject education, K12 quality education, K12 full-time school operations, higher vocational colleges, vocational training, Educational products such as Japanese language education and high-end management continuing education.
As a K12 subject training company, the impact of Onli Education’s "double reduction" will be unpredictable.
Onli Education stated in the report,This "double reduction" policy has a significant impact on the operating model, operating income, and cash flow of the company's campuses engaged in subject training business. The company will further increase its business expansion in the fields of vocational education, international and basic education, and quality education.
In addition, the company has now relied on the advantages of traditional products in the field of children and children, and has upgraded the quality education business of early childhood to the "Kyton Children's Growth Center", mainly for the core literacy and ability development needs of young children. Focusing on the three major areas of science, art, and language, while focusing on the development of children's social behavior and physical and mental health, it has launched a diversified series of quality development products. The company also actively explores cooperation models with schools, seeks cooperation paths for school after-school services, and develops basic education.
Past investment data shows that since 2016, Onli Education has acquired 2 companies (children’s American language education organization Kayton Children’s American, international cooperative education exchange service company Yulun Education), strategic investment 2 Companies (children’s education and training platform Angli Youpei, Chinese teaching and training institution Xueyi Language), and also participated in the B round investment of K12 online 1 to 1 education counseling institution Hi Class, and children’s art training chain institutions Chagall Education’s Series A investment.
According to current industry trends, Chagall Education invested in may be highly valued by Only Education.
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