Shulou(Shulou.com)06/02 Report--

According to the financial results for the first quarter of 2020 released by Jiafa Education on April 23, the company achieved a total revenue of 97.4884 million yuan in the first quarter, an increase of 29.59 percent over the same period last year, and a net profit of 27.3829 million yuan, an increase of 74.94 percent over the same period last year. Net profit after deduction was 28.2077 million yuan, an increase of 80.21% over the same period last year; and operating profit was 31.6324 million yuan, an increase of 78.48% over the same period last year.

On the whole, the performance of Jiafa Education in the first quarter has made relatively good progress compared with the same period last year, but this is also within the predictable range. In the past year, the state has attached importance to the informationization of education, and the business layout of Jiafa Education has laid a stable foundation for income generation.

60% of the total revenue comes from wisdom recruitment.

Jiafa Education is one of the earliest enterprises engaged in the information construction of the national educational examination, mainly providing information services such as standardized test sites and English man-machine dialogue examination for the Ministry of Education and the Ministry of Human Resources and Social Society. with the country's attention to the intelligent construction of enrollment, the wisdom recruitment and construction business of Jiafa Education has a better development space.

In 2019, Jiafa Education successively won the bid for the project of China National Education examination Integrated Management platform and Multi-provincial examination Education Integrated Management platform of the Ministry of Education, as well as provincial and provincial examination integrated management platforms in Guangdong, Sichuan and Guangxi provinces. It has participated in the construction of more than 200 standardized test sites in 29 provinces and cities, and continues to be the first in the market share of the provincial comprehensive examination management platform.

According to the 2019 financial report, standardized test equipment brought 350 million yuan in revenue to Jiafa Education, accounting for 60.06% of revenue, an increase of 20.09% over the same period last year, and a gross profit margin of 59.23%, an increase of 2.93% over the previous year.

The establishment of a close cooperative relationship with the government is the key for Jiafa Education to stand out from the recruitment business, and it is also a strong guarantee for Jiafa Education to occupy market share in the new round of examination center construction. In the national or provincial recruitment construction to achieve the first-mover advantage, to improve the sales of their own products play a certain role.

The income of wisdom education has increased significantly.

With the promotion of "Education Informatization 2.0 Action Plan" and the landing of "opinions of the Ministry of Education on the implementation of first-class undergraduate curriculum construction", the entrance advantage of Jiafa education informatization is becoming more and more obvious.

Jiafa Education has technical advantages in building the track of educational informatization 2.0, and has pioneered and innovated. It has achieved remarkable results through the overall planning of teaching and examination, the new college entrance examination and the intelligent campus.

According to the 2019 financial report, the revenue of Jiafa Education's intelligent education business reached 179 million yuan, an increase of 163.78% over the same period last year. Among them, the revenue of software products is 118 million yuan, and the gross profit margin is 70.1%; the revenue of hardware and integrated products is 61 million yuan, and the gross profit margin is 19.8%.

In terms of teaching and examination co-ordination, Jiafa Education mainly plans and integrates classroom examination equipment and teaching equipment through AI technology and big data analytical technology, and earns income by building integrated solutions based on classroom applications and selling intelligent education products.

In terms of the new college entrance examination, Jiafa Education relies on the intelligent campus integrated cloud platform, launches its own business with career planning products as the selling point, and cooperates with Jiangyou Municipal Government to build the "Northwest Sichuan Regional Wisdom Education Industrial Park headquarters Base Project".

In terms of smart campuses, Jiafa Education, based on the requirements of the Education Informatization 2.0 Action Plan, works closely with the government to promote its intelligent education products to many colleges and universities, and undertakes to build regional intelligent campuses. the intelligent education platform built in cooperation with the government continues to land.

The market of intelligent education products guided by national policy has a lot of room for imagination in the future. in the current form, the upgrading of educational informatization is still in the initial stage, and the industry situation of giant monopoly has not yet appeared. the advantageous business of each enterprise is relatively scattered, Jiafa education can make use of the advantages of technology and resources to further innovate the products and build its own "moat". Through the deep penetration of the education information market, expand the market share. Breaking through the single educational examination information business and seeking more diversified development will become a new growth point of Jiafa education.

The "unspeakable secret" of the month-on-month decline

However, Jiafa Education, which establishes a close relationship with the government and moves forward in the face of favorable policies, cannot rest easy.

First, Jiafa Education focuses on the education information industry, while the customers of the education information industry are mainly schools. The use of education terminals in the education industry has seasonal characteristics, and the first quarter is a holiday. All colleges and universities belong to the holiday rest stage, and the reduced demand for education terminals has led to a significant reduction in Jiafa Education's business.

From a month-on-month point of view, Jiafa Education's revenue in the first quarter was 97.4884 million yuan, nearly half lower than that of 181 million yuan in the fourth quarter of last year. In addition, the net profit in the first quarter was 27.3829 million yuan, down nearly half from 49.8396 million yuan in the fourth quarter of last year.

Seasonal income shrinks are the norm, but the numbers are not good-looking. The revenue mode of relying only on providing intelligent services for the campus is slightly simple. Under the influence of the epidemic, the postponement of the opening of campus and the postponement of related examinations may become obstacles to the growth of Jiafa's education income.

Second, in recent years, the state has paid more and more attention to the education industry, and the news of the education industry continues to be good. The proposal of the education information 2.0 plan has brought a huge market space for the education information industry. Let more enterprises see the opportunities for development, competitors emerge in endlessly, examination information market manufacturers have Beijing Jingyeda, the field of intelligent education has iFLYTEK, are Jiafa education competitors can not be ignored.

According to Jiafa Education's 2019 financial results, last year's R & D spending was 35.3792 million yuan, while competitor iFLYTEK's R & D spending was 2.143 billion yuan last year, a significant gap.

In the final analysis, the track of educational informatization is a technological war, and technological exploration needs to be supported by strong R & D funds. in the face of the strong capital of competitors, the import advantage of Jiafa Education can not support the whole market. in the case of intensified competition, from product sales to service orders may decline, profit margins may be even smaller. It can be predicted that in the future, the gap between some well-capitalized competitors and Jiafa Education will become smaller and smaller, and may "overtake around the corner".

Third, most of Jiafa Education's customers are educational management institutions at all levels and all kinds of schools throughout the country. The company has a single business direction and is highly dependent on the development of the education information industry. If the country's macro policies or information related policies change in the future, it may lead to a recession in the education information industry or a slowdown in the speed of information construction, if customer demand is reduced. The company's products and services may lose market space.

The prospect of development is good, but the road is not easy.

The first-mover advantage of Jiafa Education has brought it rich customer resources and industry experience, but the education information industry mainly depends on technology. If Jiafa Education wants to consolidate its position in the industry, it also needs to increase investment in technology. speed up innovation in products and services, provide personalized and customized services, and reduce the risk of competition through excellent technology and services.

Judging from the current situation, the state will only pay more and more attention to education. Under the background of the information age, education is likely to keep up with the trend of information technology, and the market of education information industry should have a lot of room for expansion and appreciation. Whether it is the construction of online intelligent teaching system or the offline intelligent campus layout, there will be more competitors. Jiafa Education has mastered the entrance advantage and has become a leader in the industry with the help of a number of government bidding projects. however, the openness of the market determines that everyone can get a piece of the pie, and the intensification of competition makes the bidding of education information construction projects in the future full of uncertainty.

In addition, the local examination system is relatively independent, which also gives local enterprises room for development. In the face of low-cost and high-efficiency local enterprises, Jiafa Education's national expansion road may not be easy to follow.

The impact of the epidemic has ushered in a new tuyere for online education. If Jiafa Education wants to change the predicament of unitary income, it might as well add online education information products or services in the future, expand its customer range, and explore the path of diversified development through differentiated and personalized business. Expanding the scope of their business is also conducive to tapping new blue seas and helping them to "break through" in a highly competitive market.

Although the revenue and profits of Jiafa Education in the first quarter are not ideal compared with the previous quarter, the overall environment continues to be favorable, so the seasonal reduction should not have a significant impact on the overall development of Jiafa Education. With the gradual resumption of classes across the country, schools are putting forward higher requirements for campus epidemic prevention, and the demand for intelligent education may usher in explosive growth, which may provide new growth points for Jiafa Education's business. It can be predicted that the short-term fluctuation in performance will not affect its overall development.

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