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Jianzhi Education Technology Group Company Limited Reports Fiscal Year 2023 Financial Results
JZJianzhi Education(JZ) Newsfilter·2024-04-09 20:30

Core Viewpoint - Jianzhi Education Technology Group reported a challenging fiscal year 2023, with a significant decrease in net revenues and an increase in net loss, prompting a strategic shift towards more profitable IT-related services [1][3][13]. Financial Performance - Net revenues for fiscal year 2023 were RMB440.5 million (US62.0million),adecreaseof12.962.0 million), a decrease of 12.9% from RMB505.7 million in 2022 [2][3]. - Gross profit improved to RMB16.2 million (US2.3 million) in 2023, compared to a gross loss of RMB5.5 million in 2022, marking a 394.5% increase [2][9]. - The net loss for 2023 was RMB382.8 million (US53.9million),anincreaseof94.753.9 million), an increase of 94.7% from a net loss of RMB196.6 million in 2022 [2][13]. Revenue Breakdown - Revenue from educational content services and other services decreased by RMB133.2 million (US18.8 million) to RMB71.7 million (US10.1million)in2023,primarilyduetotheterminationofapartnershipwithChinaTelecomandadeclineinsubscriptionsonthe"FishLearning"platform[4][5].−Conversely,revenuefromIT−relatedsolutionservicesincreasedbyRMB68.0million(US10.1 million) in 2023, primarily due to the termination of a partnership with China Telecom and a decline in subscriptions on the "Fish Learning" platform [4][5]. - Conversely, revenue from IT-related solution services increased by RMB68.0 million (US9.6 million), or 22.6%, to RMB368.8 million (US51.9million)in2023,drivenbynewcloud−basedcustomeracquisitions[4][5].CostandExpenses−Costofrevenuesdecreasedby17.051.9 million) in 2023, driven by new cloud-based customer acquisitions [4][5]. Cost and Expenses - Cost of revenues decreased by 17.0% to RMB424.3 million (US59.8 million) in 2023, attributed to reduced amortization of educational content and lower material costs [8]. - Total operating expenses rose to RMB399.0 million (US56.2million)in2023,upfromRMB202.6millionin2022[10].StrategicAdjustments−Thecompanyisshiftingitsfocustowardsexpandingoperationsinareasalignedwithnationalpolicies,suchas5Gmessaginganddigitalworkforcesolutions,whilereducinginvestmentineducationalcontentservices[1][4].−Jianzhiaimstoestablishstrategicpartnershipswithtelecomoperatorsandcollaboratewithvocationalinstitutionstoenhancecourseofferingsandcertifications[1][4].Impairments−ThecompanyrecognizedimpairmentstotalingRMB197.5million(US56.2 million) in 2023, up from RMB202.6 million in 2022 [10]. Strategic Adjustments - The company is shifting its focus towards expanding operations in areas aligned with national policies, such as 5G messaging and digital workforce solutions, while reducing investment in educational content services [1][4]. - Jianzhi aims to establish strategic partnerships with telecom operators and collaborate with vocational institutions to enhance course offerings and certifications [1][4]. Impairments - The company recognized impairments totaling RMB197.5 million (US27.8 million) against purchased educational contents in 2023 due to obsolescence concerns [11].