getUrls?link=16d9e5943041d0256f3859274af325b1 - The false propaganda and teaching content of Chuanzhi Education were complained by users, and the qualifications of running the school were in doubt

On January 20, Chuanzhi Education issued an announcement of abnormal stock trading fluctuations. According to the announcement, the deviation of the closing price increase for three consecutive trading days on January 15, January 18, and January 19, 2021 has exceeded 20%. As of the close of the market on January 19, 2021, Chuanzhi Education has reached 19.61 yuan per share, an increase of more than 10 yuan compared to the issue price of 8.46 yuan per share.

However, there is a shadow behind the stock price of Chuanzhi Education.

As can be seen from the prospectus, the company’s profitability in 2020 is not ideal. From January to September 2020, the company’s operating income was 440 million yuan, and the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was -11 million yuan. Moreover, in recent years, Chuanzhi Education’s net sales margin has continued to decline.

In addition, Chuanzhi Education is also faced with problems such as doubts about education qualifications, inconsistent use of many houses with planned uses, and no proof of property rights.

01 There are hidden dangers

The profitability development of Chuanzhi Education has not been as fierce as its stock price rise.

From 2017 to 2019, Chuanzhi Education’s sales gross profit margin was 47.44%, 45.96%, 49.33%, respectively , Slowly up. Nevertheless, the company’s net sales margin has shown a downward trend. Wind shows that in 2018, its net sales margin was 21.45%; in 2019, this data indicator was 19.52%, a decrease of 1.93 percentage points from the previous year.

At the same time, in 2019, Chuanzhi Education achieved an operating income of 924 million yuan, a net profit of 180 million yuan, and a total operating cost of 759 million yuan. Furthermore, Phoenix Net Finance”No. 4 Qiyang Road” combed the financial report and found that starting from 2015, the total operating cost of Chuanzhi Education continued to rise. During the five years from 2015 to 2019, its total operating cost rose from 173 million yuan to 7.59 It should be noted that, except for 2017, its annual operating income growth rate is not as fast as the growth rate of total operating costs. In 2019, the company’s total operating costs increased by 18.15%compared to 2018’s 643 million yuan.

However, by the first half of 2020, this imbalance has not yet eased. Wind shows that from January to June 2020, the company achieved a total operating cost of 326 million yuan, 62 million yuan higher than the current operating income of 264 million yuan; and its gross profit margin was 28.75%. The net profit margin is -11.67%. In this regard, the explanation given by Chuanzhi Education is that the increase in company operating costs is mainly due to the expansion of the company’s business scale.

However, comparing the performance of companies in the same industry, Phoenix Net Finance”No. 4 Qiyang Road” noticed that the data of Chuanzhi Education is not good, and even lags behind the industry average.

Among the five comparable listed companies disclosed by Chuanzhi Education, the entrepreneurial dark horse has a comprehensive gross profit margin of 56.59%from January to June 2020; a comprehensive gross profit margin of 44.06%during the same period of All Access Education; Zhong Gong Education the comprehensive gross profit margin for the same period was 48.27%; Oriental Fashion’s comprehensive gross profit margin for the same period was 26.48%; Ongli Education’s comprehensive gross profit margin for the same period was 25.60%; and The current comprehensive gross profit margin of Chuanzhi Education is only 28.75%, which is 11.45%lower than the industry average of 40.2%in the same period.

In fact, in the prospectus, Chuanzhi Education also explained that the gross profit margin is lower than Oriental Fashion and Zhong Gong Education. The company attributed the reason to maintaining high-quality training and good customer reputation. The company invested more energy and funds in the process of introducing high-quality teachers and training quality, and the average cost was high.

However, user complaints about Chuanzhi Education continue to emerge on the Internet.

A user of Chuanzhi Education stated on the complaint platform that he spent 13,380 yuan on the online education and training courses of Chuanzhi Education in February 2019. But later he discovered that Chuanzhi Education only taught basic knowledge points and some training projects, and did not involve data structure algorithms, computer network operating systems and other issues that would be asked in actual job interviews. He said,”I learned all these contents through free videos on video sites.”

It should be noted that such complaints are not an exception.

Another user of Chuanzhi Education once said that under the guidance of Chuanzhi Education sales, when he purchased the Chuanzhi Education course, he opened the Training loan. However, in the later period, he proposed to withdraw from school due to the large course skip and the epidemic, but he was rejected. In his complaint, he bluntly stated that “the repayment pressure of the training loan is increasing, and it is now unable to repay it.” At present, on the public complaint platform, Chuanzhi Education involves complaints including false propaganda, overlord clauses, poor service quality, etc. .

02 Qualification risk?

It is mentioned in the prospectus of Chuanzhi Education that with the expansion of the company’s business scale, more teaching centers will be established, and staff salaries and rental fees will increase accordingly. As of October 31, 2020, Chuanzhi Education has a total of 47 leased premises.

However, Phoenix Net Finance”No. 4 Qiyang Road” noticed that there are many hidden dangers behind these 47 leased premises.

First of all, among the 47 rental sites, 14 rentals will expire in 2021, and one will expire on December 5, 2020. This means that more than 30%of the school sites need to renew or rent again.

Secondly, among these rental sites, 15 houses are used for inconsistencies with the planned use, and some houses have not yet been approved by relevant units. These houses were originally planned for industrial and R&D centers, but the company and its subsidiaries and branches used these houses for office or training purposes. In this context, the competent authority can request Chuanzhi Education to vacate the house because the actual use of the house is inconsistent with the planned use. Chuanzhi Education said that if the company is forced to relocate, the company will increase its costs and expenses due to the relocation.

Finally, of the 47 leased sites, 5 of them could not provide proof of property rights. Among them, for”3 houses in Shuyang Software Industrial Park Building”, Chuanzhi Education gave the reason that the real estate certificate is in the process of processing. The house of Chuanzhi Education in the Huailai Shacheng Economic Development Zone is due to a new house, and the property right certificate has not yet been applied for; the house located in the main building of Jin’an Creative Park, No.58 Zhuji Road is due to the”house built on collective construction land, which has not been processed deed”. It should be noted that the Zhuji Road House is where the Guangzhou campus of Chuanzhi Education is located, covering an area of ​​8,500 square meters. At present, only the subdistrict office of Chuanzhi Education has issued a”Explanation” on December 31, 2019, confirming that these houses are legal buildings, and the main purpose is to lease them out as commercial properties, and they agree that Chuanzhi Education can be used for Education and training.

Some industry analysts believe that there are hidden risks behind these houses. If the lease of defective houses cannot be renewed, the company will face the cost of finding new houses and decoration.

In addition, Chuanzhi Education has also been on the”blacklist” of the local education bureau.

On August 3, 2018, on the”blacklist” announced by the Zhengzhou Municipal Education Bureau, Chuanzhi Education Zhengzhou University Science and Technology Park campus was”on the list” for operating without a license and without a license. However, it should be noted that this is not the only campus where Chuanzhi Education has ever operated without a license. According to many media reports, there may have been unlicensed and unlicensed operations in the Chengdu branch campus and the No. 2 campus in Maolingshan Road, Lixia District, Jinan. In addition, Chuanzhi Education Beijing Changping, Shunyi campus and Xiamen campus have all started running schools, but they still have not obtained a school permit.

Source:Phoenix Net Finance

Text:Wang Muqing