The largest education in Hong Kong stocks IPO was released, giving birth to the new richest man in Anhui.
circulating in the rivers and lakes Yu Minhong has two difficult wishes: to run an New Oriental university and acquire New Oriental Cooking. The latter New Oriental has a very high status in the field of vocational education, but it has nothing to do with Yu Minhong. Today, New Oriental Cooking's main company " Oriental Education " was officially listed on the Hong Kong stock market, with a market value of more than HK$22.4 billion as of press time.
New Oriental Cooking IPO has brought Anhui's invisible wealthy Wu Junbao into the public's vision. Xinhua Education, which he controls, is currently worth about HK$4.1 billion, plus HK$23 billion of Oriental Education. According to its shareholding ratio, it is conservatively estimated that its personal value is around HK$13 billion (more than RMB 11 billion). If you are not considered an Anhui rich man, Wu Junbao is the new richest man in Anhui.
Oriental Education not only has the support of the richest man behind it, but also has become the fourth-ranked education listed company with market value after Good Future , New Oriental, and Zhonggong Education . The net funds raised by this IPO were HK$4.7692 billion, setting the highest IPO for global education companies.
Anhui Invisible Rich Entrepreneurship History,
From Xinhua Computer to New Oriental Cooking School
0 Wu Junbao, the founder of Oriental Education, is known as "Anhui Invisible Rich". Although he is low-key and does not reveal much personal information, "New Oriental Cooking" and "Xinhua Computer" are enough to make him famous.
1988, in an era when computers were still luxury goods, Wu Junbao used his personal funds to provide professional computer training and education in China. In 2004, in order to further expand and regulate his business, he established Anhui Xinhua Education and integrated all schools. The company's headquarters is located in Hefei, Anhui Province.
, which mainly engages in academic education, is also a private higher education group under Wu Junbao. It currently operates two schools, namely private university Xinhua College and private secondary vocational school Xinhua School, and China Xinhua Education controls these two schools through contracts. In March 2018, Xinhua Education was listed in Hong Kong. Wu Junbao and his sons held most of the equity of the listed company. Since October 2017, Wu Junbao has served as the chairman of the board of directors and non-executive director of China Xinhua Education Group .
It should be pointed out that China Xinhua Education and the packaged and integrated asset "Xinhua Computer Education", a subsidiary of Oriental Education, which has the same major shareholder, have no other business relationship. The difference between the two is that China Xinhua Education is positioned as higher education, while Xinhua Computer Education is positioned as vocational education.
Oriental Education has a total of 5 school brands, namely: New Oriental Cooking Education (50 schools), Xinhua Computer Education (24 schools), Omic Western Cuisine Education (23 schools), Huaxin Zhiyuan DT Talent Training Base (22 schools), and Wantong Automobile Education (26 schools).
The most famous school in Oriental Education is New Oriental Cooking. The advertisement of "Learn from Chef, Go to New Oriental" was once deeply rooted in the hearts of the people, and many people also confused it with Yu Minhong's New Oriental. In fact, the two "New Orientals" have nothing to do with each other, and after Wu Junbao worked in the computer education industry for 5 years, Yu Minhong established Beijing New Oriental Education in a rented house in Beijing. There is even circulating on the Internet that Yu Minhong has two wishes: to run New Oriental University and acquire New Oriental Cooking.
Of course, Wu Junbao is not only Oriental Education and Xinhua Education. His Xinhua industry spans multiple fields such as education, real estate, finance, etc. The industrial control in multiple fields is mainly implemented through Xinhua Holding Group. Currently, Wu Junbao, his cousin and Xiao Guoqing hold a total of 99.5% of the equity of Xinhua Holding Group.
raised 4.8 billion yuan,
The largest global education listed company
Oriental Education IPO raised HK$4.7692 billion (about US$625 million), and the fundraising scale exceeded the US$490 million IPO when Laurie Education Group was listed in the United States, becoming the largest IPO in history in the global education industry.
prospectus shows that China Oriental Education Group is China's largest vocational skills education provider. As of December 31, 2018, China Oriental Education operated 145 schools in 29 provinces and Hong Kong.As mentioned earlier, the group has 5 school brands - New Oriental Cooking Education, Omic Western Cuisine Education, Xinhua Computer Education, Huaxin Zhiyuan DT Talent Training Base and Wantong Automobile Education.
As of December 31, 2018, the average number of trainees in the brand was 69,100, 31,000, 31,000, 1,364 and 19,300, respectively, among which New Oriental Cooking Education and Training had the largest number of trainees. From 2016 to 2018, the growth rates of the total number of trainees in the group were 10.89% and 6.36% respectively.
According to Frost & Sullivan statistics, Oriental Education has market share of 23.1%, 3.4% and 9.7% in the three industries of cooking technology, information technology and automobile services, respectively, ranking first in terms of average training students, especially cooking technology education, with a market share of up to 23.1% in terms of training students in 2017.
In 2018, China Oriental Education's revenue reached 3.265 billion yuan, gross profit of 1.75 billion yuan, and net profit of 510 million yuan. Among all brands, New Oriental Cooking Education contributed the largest revenue, with revenue reaching 1.9 billion yuan, accounting for 58.2% of the group's total revenue, while Xinhua Computer Campus ranked second with revenue of 604 million yuan, accounting for 18.5% of the total revenue. The prospectus shows that the main sources of income are tuition and accommodation fees, with revenue accounting for 99.6% of the total in 2018.
However, although Oriental Education's revenue is on the rise year by year, the growth rate has slowed down, and all financial ratios have declined to varying degrees. From 2016 to 2018, Oriental Education's revenue was 2.335 billion, 2.85 billion and 3.265 billion, respectively, with year-on-year growth rates of 22.06% and 14.5%, respectively, and the revenue growth rate declined. Gross profit margin fell from 56.6% in 2016 to 55.0% in 2017, further down to 52.2% in 2018, and net interest rate fell from 25.1% to 15.8%.
Oriental Education Group said that this is because the group operated 36 new schools and 6 new centers in 2017, and 19 new schools and 12 new centers in 2018. There were fewer trainings during the start-up period, resulting in heavy fixed costs.
Currently, Wu Junbao serves as a non-executive director within the group. According to the prospectus, the other two shareholders are Wu Wei and Xiao Guoqing, both of whom serve as executive directors of the company.
Education companies go public in Hong Kong
China's vocational education ushered in a big explosion
The market value of more than HK$23 billion makes Oriental Education the fourth-ranked education listed company with market value after Good Future, New Oriental and Zhonggong Education. Based on revenue and net profit in 2017, it also surpassed Zhongjia Holdings and became the largest IPO project in the Hong Kong-listed education industry.
In fact, this is just the "tip of the iceberg" of the craze for listing in Hong Kong in recent years. In 2018, we witnessed the grand event of education companies joining Hong Kong stocks, mainly focusing on the collective IPO of offline private education groups. The investment community (WeChat ID: pedaily2012) has compiled the (planned) listing situation in Hong Kong since 2017 based on public information. At least 15 education companies have successfully ringed the bell in Hong Kong, and more than 13 have submitted IPO applications.
"The education industry is ushering in the best opportunity for its scale and asset securitization." Under the unabated wave of education IPOs in Hong Kong, private education groups have achieved outstanding results, especially private academic education companies are very popular.
Behind the wave of education companies going public in Hong Kong is the explosion of China's vocational education.
On February 13 this year, the State Council issued the "Notice on Issuing the Implementation Plan for the Reform of National Vocational Education". For the first time, enterprises were established as the main body of vocational education, and encouraged social capital to invest in the establishment of vocational education, and will open up the long-neglected "gold mine" of vocational education.
VC/PE has set its sights on vocational education early. According to incomplete statistics, from the beginning of 2018 to the beginning of 2019, a total of 69 investments in the field of vocational education were launched, of which the seed wheel, angel wheel and A wheel accounted for 50% of the total investment. Behind the move is investment institutions full of confidence in the "money prospects" of vocational education. According to the Ministry of Education data and the Sullivan report, the market size of China's vocational education industry is expected to reach RMB 106.23 billion in 2022.
Vocational education can be divided into two types: academic qualifications and non-academic education . Academic education is secondary vocational and higher vocational colleges. Non-academic education is divided into corporate education (2B) and individual education (2C) according to the paid customer group.Among the 2C products, the classification is based on whether it is a basic need, namely, passing the exam, vocational skills training, interest needs, etc. A few years ago, online vocational education for individuals was also a small trend.
According to media reports, in recent years, the employment wage level of higher vocational graduates has increased year by year, and some popular majors have even approached the salary level of undergraduate graduates. This has regained the appeal of higher vocational education and has also attracted some ordinary undergraduate colleges to transform into applied universities.
Wu Junbao is the actual controller of the two listed companies, and can be said to be the first to find gold, ahead of this policy trend. The vocational education reform plan has finally brought vocational education into its main horizon and has also brought a new wave of wealth creation.
This article comes from the investment world
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