After acquiring Jiapeng Culture and Qiyu Education, five kindergartens under the listed company DiPing Technology are prying open the entrance and entering the palace of middle and high-end early childhood education. The new policy on early childhood education in November is a wake-up call.
In December 2015, against the backdrop of the coal industry's capacity reduction reform, Dianguang Technology spent 128 million yuan to acquire 65% of Shanghai Yali Technology's equity and 75 million yuan to acquire 100% of Shanghai Ledi Network's equity, opening the curtain of transformation education. In the following two years, Electro-optical Technology has continuously increased its investment, driving the acquisition of war vehicles and laying out international education and training, mid-to-high-end early childhood education tracks.
In 2017, Dianguang Technology's education and training revenue was 83.41 million yuan and its attributable net profit was 14.12 million yuan. In the 2018 semi-annual report, Diopong Technology's revenue was 366 million yuan, a year-on-year increase of 15%; its non-net profit was 26 million yuan, a year-on-year increase of 44%.
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A third-generation relay entrepreneurship
Electronic Optical Technology was established in Liushi, Yueqing in 1998. It has grown from a small switch factory to a leading enterprise with the most complete range of mining explosion-proof electrical appliances in the country. In October 2014, Dianguang Technology was listed on the Shenzhen Stock Exchange SME Board. Founder and Chairman Shi Suibiao was 74 years old and was one of the oldest listed companies in China's A-share market.
As a typical family business, Shi Saibiao, the founder of LED and Optical Technology, has been focusing on the third generation of the explosion-proof electrical market segment, focusing on 20 years. In 1980, the first generation of stone crushing marks of the Shi family entered Yueqing Second Light Enterprise, starting from a salesperson and selling mining lamp accessories. On his first business trip, he took the 18-hour train to the Northeast, traveling to five mining bureaus and more than a dozen coal mines in Liaoning Province, and hitting a wall all the way. Finally, he walked 6 hours from Jinzhou to a mountain mine in Nanpiao Mining Bureau and signed his first order in his life.
In 1998, Shi Xiangcai, the second-generation eldest son of the Shi family, became the general manager of LED and optical technology, sent salesmen to learn from overseas, develop flagship products, and achieve rapid growth. In 2006, Dioptical Technology created three factories in one year, established a group headquarters in Caohejing, Shanghai, built a new factory in Yueqing Development Zone, and established a Zhongyuan production base in Anhui Suzhou . In 2014, Electro-Optical Technology was listed, and Shi Xiangcai served as director and president, eldest daughter Shi Zhiwei, third daughter Shi Xiaoxia served as directors, and second son Shi Xiaoxian served as vice president. Shi Xiangcai's wife Zhu Dan serves as the supervisor.
Shi Long, the third generation of the Shi family and the eldest son of Shi Zhiwei, joined the company in 2010 and served as the chief assistant. After listing, Shi Long served as director and general manager of the Science and Trade Information Center. In 2016, Dianguang Technology acquired Yiwu Qiyu, and Shi Long became chairman, making his mark in the transformation of education.
Fangtai Group Chairman Mao Lixiang said, "In the early stage of entrepreneurship, private enterprises must rely on the family system; when private enterprises develop to a certain scale, they must downplay the family system." During the entrepreneurship period, the three generations of family enterprises focus on building one enterprise and an industry, which can be regarded as a model for family enterprises. Transforming education, entering a brand new industry, also creates opportunities for electro-optical technology to introduce management talents and professional managers, improve family business governance, and create opportunities.
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Create an international education industry chain
In December 2015, Dianguang Technology announced that it had acquired two education companies with full capital. International education and early childhood education were both set up at the same time, and it seemed that it was determined and confident. At the same time, Dianguang Technology spent 150 million yuan to jointly initiate the Yueqing Fengyu Education Industry Fund with Yueqing Fengyu Investment Management Partnership, with a total scale of 500 million yuan. It cooperates with the listed company platform to quickly invest in education targets. The characteristics of family businesses that are concentrated in rights and make quick decisions are fully revealed.
electro-optical technology education transformation, completed 10 acquisitions and invested in
acquisitions in 3 years, when Shanghai Yali Technology was an international education and training platform, with a profit of only 150,000 yuan in 2015. In 2017, Yali Technology achieved a net profit of 79.04 million yuan, and it was no longer a surprise to complete the bet.
In February 2018, Yali Technology signed a strategic cooperation agreement with two century-old British schools, Adkot School and Middleton School, to acquire 44.93% of the shares of Adkot School for 2.4 million pounds and 32.09% of the shares of Middleton School for 4.21 million pounds.According to the agreement, Yali Technology extended from the platform to running schools, built the Shanghai Adkot Campus in Sheshan, Shanghai, and established the first own school.
In April 2016, Dianguang Technology spent 107 million yuan to acquire 65% of the equity of Newfield International Education, a study abroad service company. Fengyu Education Fund, a subsidiary of Dianguang Technology, acquires 8% of Newfield's equity. In 2015, Newfield had revenue of 30.36 million yuan and net profit of 9.23 million yuan. Newfield promises that the net profit in 2016 will not be less than RMB 15 million, and the compound growth rate of annual net profit from 2016 to 2018 will not be less than 35.8%.
Yali Technology + Newfield, Electro-optical Technology has initially integrated international education and training, study abroad services, and cooperation between famous overseas universities through two major acquisitions to create an international education industry chain.
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layout Preschool education aims at mid-to-high-end
In the field of early childhood education, electro-optical technology has a clear positioning and is aimed at the mid-to-high-end market.
In September 2016, Dianguang Technology spent 45.05 million yuan to acquire 51% of the shares of Shanghai Jiapeng Culture, and Fengyu Education Fund, a subsidiary of Dianguang Technology, acquired 15% of the shares, controlling four direct-operated kindergartens in Shanghai. Jiapeng Culture’s four kindergartens belong to the Taiwanese-funded “Jidi Debao” brand franchise park, focusing on bilingual teaching. From 2017 to 19, Jiapeng Culture promised to achieve a net profit of no less than 9 million, 10 million and 11 million. In 2018, Jiapeng Culture added two new early education centers, and it was already full in less than half a year.
3 months later, Dianguang Technology made another move, spending 90 million yuan to acquire 100% of the equity of Yiwu Qiyu Education, control Yiwu Oujing International Kindergarten, and launch the construction of Yiwu Oujing Early Education Center, becoming a high-end layout for 0-6 years old.
Jiapeng Culture’s four kindergartens, together with Yiwu Oujing International Kindergarten, open the entrance to early childhood education for electro-optical technology. In December 2015, Dianguang Technology acquired Ledi Network, and acquired "Extracurricular Treasure" (Ledi English E-school Bag) and "LEAD21" (Ledi English Course). In 2016, it acquired Shanghai Weile and acquired the "LeDangjia" APP, forming a correlation and interaction with offline physical parks, campuses, and early education centers, and building a preschool education industry chain around the mid-to-high-end market positioning.
Ledi Network mainly engages in educational software development, and promises that its net profit will not be less than 8 million yuan in 2016, its net profit will not be less than 13 million yuan in 2017, and its net profit will not be less than 24 million yuan in 2018. Shanghai Weile mainly provides course content and service platforms for K12 training institutions, and provides parents with home-school communication services. It promises that the net profit in 2016-18 will not be less than RMB 8 million, RMB 16 million and RMB 32 million respectively.
From Jiapeng Culture and Qiyou Education, to Ledi Network, Shanghai Weile, to Adkot School, Middle School, to Yali Technology and Newfield, Electrooptic Technology is positioned as a mid-to-high-end, and is committed to a complete industrial chain from early childhood education to international high schools and studying abroad. In January 2017, Dianguang Technology invested 50 million yuan to establish a wholly-owned subsidiary Shanghai Dianguang Education, "promoting the development of the second main business education business and creating an electro-optical education industry ecological chain."
In the first half of 2018, Dianguang Technology's education and training business increased by 67% year-on-year, and its net profit increased by 98%, quickly entering a virtuous cycle.
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Industry Fund takes action New Third Board
In addition to the listed company platform, Fengyu Education Industry Fund, a subsidiary of Dianguang Technology, is also active. It not only participates in the listed company's mergers and acquisitions of Newfield and Jiapeng Culture, but also takes action alone, locking in high-quality targets for listed companies to acquire future mergers and acquisitions in advance. At the beginning of its establishment in 2016, Fengyu Fund invested 18.2 million yuan to invest in Shanghai Newban Culture, founded by famous singer and musician Hu Yanbin , and obtained 28% of the equity. Newban Culture’s product “Niu Ban NEW BAND” is a music education APP dedicated to building the first online music education platform in China.
In November 2017, Fengyu Fund invested 86.14 million yuan to purchase 27.9% of the shares of Aileqi, an early education company on the New Third Board, to lock in high-quality merger and acquisition targets for listed companies in advance. Ailes was listed on the New Third Board in 2015. It is the first physical early education institution in China to be listed on the New Third Board. It has 7 direct early education centers and 17 early education centers.
2017 annual report, the education and training industry accounts for 10% of the total revenue of electro-optical technology. It is still difficult to judge whether the educational transformation of electro-optical technology is successful or not.Especially after the implementation of the new policy on early childhood education, it is still an unknown where the five kindergartens under the Dianguang Technology will go. Building a closed loop of the industrial chain, Electro-optical Technology, which has acquired ten times in three years, has been full of twists and turns.
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