OFFCN EDU(002607)2024-04-29 18:24Financial Performance - Revenue for 2023 was RMB 3,086,320,031.57, a decrease of 36.03% compared to 2022[11] - Net profit attributable to shareholders in 2023 was RMB -209,429,678.58, an improvement of 80.98% compared to 2022[11] - Net cash flow from operating activities in 2023 was RMB -800,064,915.87, a significant decrease of 201.64% compared to 2022[11] - Basic earnings per share in 2023 were RMB -0.03, an improvement of 83.33% compared to 2022[11] - Weighted average return on equity in 2023 was -31.10%, an improvement of 51.38% compared to 2022[11] - Total assets decreased by 11.06% to RMB 7,139,624,337.37 in 2023 compared to RMB 8,027,414,353.26 in 2022[12] - Net assets attributable to shareholders of the listed company decreased by 27.29% to RMB 567,098,998.21 in 2023 from RMB 779,870,320.06 in 2022[12] - Revenue in 2023 was RMB 3,086,320,031.57, a decrease from RMB 4,824,814,105.43 in 2022[15] - Revenue after deducting other business income was RMB 3,047,336,721.73 in 2023, down from RMB 4,801,848,887.15 in 2022[15] - Net profit attributable to shareholders in Q4 2023 was negative RMB 451,466,616.45, a significant drop compared to previous quarters[18] - Non-recurring gains and losses in 2023 amounted to RMB 4,870,100.24, a decrease from RMB 11,017,433.07 in 2022[19] - The company achieved operating revenue of 3,086,320,031.57 yuan, a year-on-year decrease of 36.03%, and a net profit attributable to shareholders of -209,429,678.58 yuan, a year-on-year reduction in loss of 80.98%[33] - Total revenue for 2023 was RMB 3,086,320,031.57, a decrease of 36.03% compared to 2022[37] - Revenue from the education and training sector accounted for 98.74% of total revenue, decreasing by 36.54% year-over-year[37] - Revenue from the civil service exam segment decreased by 40.89% to RMB 1,137,095,203.47, accounting for 36.84% of total revenue[37] - Revenue from the public institution exam segment dropped by 54.83% to RMB 397,296,451.13, making up 12.87% of total revenue[37] - Revenue from the teacher exam segment fell by 38.52% to RMB 416,076,822.40, representing 13.48% of total revenue[37] - Revenue from the comprehensive exam segment decreased by 17.03% to RMB 1,096,868,244.73, accounting for 35.54% of total revenue[37] - Operating costs for the education and training sector were RMB 1,386,330,089.72, a decrease of 1.39% year-over-year, representing 97.91% of total operating costs[39] - Sales expenses decreased by 48.51% to RMB 699,749,962.63 due to cost optimization and reduced market operations[44] - Management expenses dropped by 47.26% to RMB 493,541,775.04, primarily due to cost-saving measures and staff optimization[44] - R&D expenses decreased by 52.41% to RMB 281,816,314.90, reflecting reduced spending on research and development activities[44] - R&D personnel decreased by 47.99% to 881 in 2023, with a slight increase in the proportion of R&D personnel to 7.92%[46] - R&D investment dropped by 52.41% to 281,816,314.90 yuan, accounting for 9.13% of revenue, down 3.14% year-on-year[46] - Operating cash flow turned negative at -800,064,915.87 yuan, a 201.64% decrease compared to 2022[47] - Investment cash flow decreased by 104.18% to -10,568,761.82 yuan[47] - Financing cash flow improved significantly, with a net increase of 788,373,921.39 yuan, a 129.99% rise[47] - Contract liabilities decreased by 7.83% to 2,953,368,611.73 yuan, reflecting reduced unfinished training business[50] - Fixed assets decreased by 0.91% to 1,688,072,119.74 yuan, partly due to conversion to investment properties[50] - Short-term loans increased by 2.09% to 149,271,726.40 yuan[50] - Long-term loans rose by 13.04% to 931,030,000.00 yuan[50] - Total restricted assets amounted to 1,392,448,000.07 yuan, including frozen cash and mortgaged properties[52] - Total investment in the reporting period was RMB 36,643,230.73, a decrease of 76.51% compared to the same period last year[56] - The company's subsidiary, Beijing Zhonggong Education Technology Co., Ltd., achieved revenue of RMB 3,082,440,725.56 in 2023, a decrease of 36.09% compared to 2022[61] - The subsidiary's operating costs in 2023 were RMB 3,078,980,900, a decrease of 49.16% compared to 2022[61] - The subsidiary reported an operating loss of RMB 59,068,230.89 in 2023, a reduction of 94.14% compared to 2022[61] - The company's total assets amounted to RMB 5,343,263,206.07, while its net assets were negative at RMB -112,289,655.42[61] - The company pledged 49% of its equity in Beijing Zhonggong Future Education Technology Co., Ltd., and mortgaged some properties and land use rights, with a total loan principal balance of RMB 1,094,960,000[55] - The company's subsidiary, Beijing Limited, obtained a loan principal balance of RMB 30,000,000 through the sale and leaseback of some fixed assets and the mortgage of some parking spaces[55] - The company did not engage in any securities or derivative investments during the reporting period[57] - The company did not sell any major assets or equity during the reporting period[58][60] - Total revenue for 2023 decreased to 3,086,320,031.57 RMB from 4,824,814,105.43 RMB in 2022, representing a decline of approximately 36%[192] - Net loss for 2023 was -209,429,723.34 RMB, an improvement from the net loss of -1,100,979,331.00 RMB in 2022[193] - Total liabilities increased to 2,713,247,829.26 RMB in 2023 from 2,580,690,330.21 RMB in 2022[191] - Research and development expenses decreased significantly to 281,816,314.90 RMB in 2023 from 592,208,850.10 RMB in 2022, a reduction of approximately 52%[193] - Sales expenses were reduced to 699,749,962.63 RMB in 2023 from 1,359,096,659.05 RMB in 2022, a decrease of about 48%[192] - Total assets slightly increased to 21,794,879,661.19 RMB in 2023 from 21,775,827,922.30 RMB in 2022[191] - Basic earnings per share improved to -0.03 RMB in 2023 from -0.18 RMB in 2022[194] - Total comprehensive income for 2023 was -212,729,723.34 RMB, compared to -1,107,804,331.00 RMB in 2022[194] - Interest expenses decreased to 38,230,229.67 RMB in 2023 from 82,900,952.64 RMB in 2022[193] - Deferred tax liabilities increased to 1,027,962.70 RMB in 2023 from 2,125,000.00 RMB in 2022[191] - Net loss for the year was RMB -1,102.06 million, compared to RMB -633.19 million in the previous year[196] - Operating cash flow was negative at RMB -800.06 million, a significant decline from RMB 787.19 million in the previous year[198] - Cash and cash equivalents at the end of the year decreased to RMB 358.63 million from RMB 380.89 million at the beginning of the year[199] - Revenue from sales of goods and services was RMB 2,136.41 million, down from RMB 5,878.64 million in the previous year[198] - Payments to employees and for employee benefits amounted to RMB 2,079.66 million, a decrease from RMB 3,731.69 million in the previous year[198] - Investment activities resulted in a net cash outflow of RMB -10.57 million, compared to a net inflow of RMB 252.79 million in the previous year[199] - Financing activities generated a net cash inflow of RMB 788.37 million, a significant improvement from a net outflow of RMB -2,628.91 million in the previous year[199] - The company received RMB 1,125.00 million from borrowings during the year[199] - Total comprehensive loss for the year was RMB -1,135.06 million, compared to RMB -701.44 million in the previous year[196] - The company's cash flow from operating activities in the parent company was negative at RMB -982.44 million, compared to a positive RMB 1,156.90 million in the previous year[200] Business Operations - The company did not distribute cash dividends, stock dividends, or capital reserve transfers in 2023[2] - The company's registered address is in Wuhu, Anhui Province, and its office address is in Beijing[6] - The company's website is http://www.offcn.com, and its email for investor relations is ir@offcn.com[6] - The company's auditor is Tianzhi International Accounting Firm (Special General Partnership)[10] - The company's stock code is 002607, and it is listed on the Shenzhen Stock Exchange[6] - The number of direct branches decreased by 29.65% to 783, and the number of employees decreased by 50.89% to 11,125[34] - Face-to-face training revenue decreased by 38.19% to 1,780,585,203.84 yuan, and online training revenue decreased by 34.07% to 1,266,751,517.89 yuan[35] - The total number of trainees decreased by 36.77% to 1,951,870[35] - The company's operating costs decreased by 50.78%, sales expenses decreased by 48.51%, and management expenses decreased by 47.26%[36] - The company has a dedicated R&D team of over 800 people, enhancing efficiency and synergy across product categories[27] - The company operates nearly 800 direct branches across 300+ cities and 1,500+ colleges, ensuring standardized teaching quality and service[28] - The company established an AI and Education Research Institute in 2023, leveraging AI and digital human technologies to improve teaching efficiency and learning tools[29] - The company has over 2,000 party members, accounting for more than one-fifth of the total employees[31] - The 2024 national civil service examination plans to recruit 39,600 people, a year-on-year increase of 6.74%, with over 3 million applicants[23] - The company plans to optimize its management mechanisms and improve operational efficiency by restructuring its organizational framework and enhancing technological support for various businesses[69] - The company established an AI and Education Research Institute in 2023, focusing on AI applications in public service employment training, aiming to improve teaching efficiency and learning tool intelligence[72] - In 2024, the company plans to continue exploring AI technology applications in the employment service sector to alleviate market supply-demand contradictions and promote high-quality employment[72] - The company completed organizational setups for regional branches in Central China, North China, and East China in 2023 to enhance resource allocation and talent flexibility[73] - A stock incentive plan was launched in 2023, covering 260 core personnel including regional principals, R&D staff, and key teachers to align interests with company growth[73] - The company aims to reduce the proportion of agreement classes and increase cash-based classes in 2024, while expanding the product matrix in employment services, including skills training, study abroad, and vocational certification[74] - The company plans to restore and expand credit and financing in 2024, aiming to lower financing costs and maintain stable liquidity through strategic partnerships with financial institutions[75] - The company faces industry policy risks due to potential changes in vocational education regulations, which could impact business operations and performance[76] - Market risks include increased competition and cyclical fluctuations in the training industry, potentially affecting demand and enrollment[77] - The company is addressing management risks by optimizing organizational structures and enhancing employee incentives to reduce turnover of core management teams[80] - The company held its 2022 Annual General Meeting with an investor participation rate of 32.92%[93] - The 2023 First Extraordinary General Meeting had an investor participation rate of 32.61%[93] - The 2023 Second Extraordinary General Meeting saw an investor participation rate of 32.37%[93] - Chairman Li Yongxin reduced his shareholding by 28,204,104 shares, bringing his total holdings to 944,407,232 shares[94] - Director and General Manager Wang Zhendong reduced his shareholding by 186,975,884 shares, bringing his total holdings to 573,799,534 shares[94] - The company maintains strict compliance with information disclosure regulations, ensuring equal access to information for all shareholders[89] - The company has established an independent financial system with separate bank accounts and tax filings[91] - The company's business structure is independent and complete, with no substantial competition with the controlling shareholder[91] - The company has an independent workforce with separate R&D, sales, administration, and financial departments[91] - The company's organizational structure is independent, with clear division of responsibilities among various departments[91] - Li Yongxin, Chairman of Offcn Education Technology Co., Ltd., has nearly 20 years of experience in public service exam training and management[98] - Wang Zhendong, Director and General Manager of Offcn Education Technology Co., Ltd., has been responsible for internal operations management since 2005[98] - Shi Lei, Director of Offcn Education Technology Co., Ltd., has been in charge of market operations management since 2005[98] - Yi Ziting, Director of Offcn Education Technology Co., Ltd., has been in the education and training industry since 2011[99] - Chen Yuqin, Independent Director of Offcn Education Technology Co., Ltd., has extensive experience in banking and financial management[99] - Jiang Tao, Independent Director of Offcn Education Technology Co., Ltd., is an associate professor at Southwestern University of Finance and Economics[99] - Zhang Xuanming, Independent Director of Offcn Education Technology Co., Ltd., has been a partner at Beijing Hechuan Law Firm[100] - Yu Hongwei, Chairman of the Supervisory Board of Offcn Education Technology Co., Ltd., has been the Party Secretary of Beijing Offcn Education Technology Co., Ltd. since 2018[101] - He Di, Supervisor of Offcn Education Technology Co., Ltd., has been the Assistant President of Beijing Offcn Future Education Consulting Co., Ltd. since 2010[101] - Luo Xue, CFO of Offcn Education Technology Co., Ltd., has extensive experience in accounting and financial management, including roles at Deloitte and Sinopec[102] - Wang Xinhuan was appointed as the Board Secretary of Zhonggong Education Technology Co., Ltd. in December 2023[103] - Li Yongxin serves as the Chairman of Beijing Zhonggong Education Technology Co., Ltd. and receives compensation[106] - Shi Lei is a director at Beijing Zhonggong Education Technology Co., Ltd. and receives compensation[106] - Wang Zhendong is a director at Beijing Zhonggong Education Technology Co., Ltd. and receives compensation[106] - The company was fined by the China Securities Regulatory Commission for failing to disclose related transactions in 2022[107] - The company and its executives received public condemnation from the Shenzhen Stock Exchange for failing to disclose related transactions in 2022[108] - The company has a compensation system for directors, supervisors, and senior management, which was approved at the 2023 annual shareholders' meeting[110] - The total pre-tax compensation for directors and senior management in 2023 was 48.903 million yuan, with the highest compensation being 551,900 yuan for Li Wen, a supervisor[111] - The company held 7 board meetings in 2023, with all directors attending either in person or via communication, and no director missed more than two consecutive meetings[114] - The Audit Committee held 6 meetings in 2023, focusing on internal audit reports and recommending the company to strengthen internal controls to mitigate operational risks[116] - The company's board of directors approved several key proposals, including asset抵押 for bank loans and providing融资担保 for subsidiaries[112] - The company's third-quarter report was approved during the 12th meeting of the 6th board of directors on October 27, 2023[113] - Independent directors provided professional and objective opinions on various matters, contributing to the company's strategic development and decision-making[115] - Total number of employees at the end of the reporting period: 11,125, with 11,125 employees receiving salaries[120] - Employee composition: 1,136 managers, 881 R&D personnel, 4,565 teachers, 1,219 customer service personnel, and 3,324 marketing personnel[120] - Educational background of employees: 2,148 with master's degree or above, 8,263 with bachelor's degree, 702 with associate degree, and 12 with high school diploma or below[120] - The company focuses on cost reduction and efficiency improvement, maintaining refined operations and strengthening financial planning and control to ensure healthy cash flow[118] - The