[年报]中公教育(002607):2022年年度报告（英文版）
原标题:中公教育:2022年年度报告（英文版） OFFCN EDUCATION TECHNOLOGY CO., LTD. 2022 Annual Report Stock Code: 002607 Stock Abbr.: OFFCN EDU April, 2023 Chapter 1 Important Information, Table of Contents and Definitions The Company’s Board of Directors, Supervisory Committee, directors, supervisors, and senior management hereby guarantee that the contents of the annual report are true, accurate, and complete, and that there are no misrepresentations, misleading statements, or material omissions, and shall assume individual and joint legal liabilities. Wang Zhendong, the Company’s legal representative, Shi Lei, head in charge of accounting and Luo Xue, head of the accounting department (Accounting supervisor), declare that they warrant the truthfulness, accuracy and completeness of the financial report in the annual report. All directors attended the board meeting for reviewing this report. The forward-looking statements on future plans and development strategies involved in this report do not constitute a substantial commitment to investors. Investors are advised to invest rationally and pay attention to the potential investment risks. The possible risks and countermeasures have been detailed in Section XI Forecast of the Company’s future development of Chapter 3 Management Discussion and Analysis of this report. Investors are advised to pay attention to the relevant contents. On December 25, 2021, the Company was filed and investigated by China Securities Regulatory Commission (CSRC) on suspicion of failing to disclose related party transaction information and violating the laws and regulations of information disclosure. On April 27, 2022, the Company and the relevant parties received the official Decision of Administrative Penalty. The Anhui Securities Regulatory Bureau of the CSRC decided to give a warning to and impose a fine on the Company and the relevant parties, and order the Company and the relevant parties to rectify the situation. Specific information is stated in the announcement (No. 2022-032) disclosed on CNINFO (www.cninfo.com.cn) and other designated media. The Company plans not to distribute cash dividends, bonus shares, nor to increase share capital by converting capital reserve. The English version of this report is provided together with the Chinese version. Should there be any inconsistency between the Chinese version and the English version, the Chinese version shall prevail. Contents Chapter 1 Important Information, Table of Contents and Definitions ............................................... 1 Chapter 2 Corporate Profile & Key Financial Indicators .................................................................. 5 Chapter 3 Management Discussion and Analysis ............................................................................ 10 Chapter 4 Corporate Governance .................................................................................................... 35 Chapter 5 Environmental and Social Responsibilities..................................................................... 60 Chapter 6 Significant Events ........................................................................................................... 61 Chapter 7 Share Changes and Shareholders .................................................................................... 87 Chapter 8 Preferred Shares .............................................................................................................. 96 Chapter 9 Corporate Bonds ............................................................................................................. 97 Chapter 10 Financial Statements ..................................................................................................... 98 Documents Available for Reference I. The financial statement signed and sealed by the legal representative of the Company, the person in charge of accounting work and the person in charge of accounting department (accounting supervisor). II. The original copy of the audit report signed and sealed by the auditors and sealed by the accounting firm. III. The full text of 2022 Annual Report signed by Wang Zhendong, the Company’s legal representative. IV. The original copies of all the documents of the Company which have been disclosed in newspapers designated by the China Securities Regulatory Commission during the reporting period. V. The place where the above-mentioned documents are maintained: the office of the Company’s Secretary of the Board of Directors. Definitions
Chapter 2 Corporate Profile & Key Financial Indicators Section I. Corporate profile
Accounting firm hired by the Company
□ Applicable √ Not applicable Financial advisor engaged by the Company to perform continuous supervision duties during the reporting period □ Applicable √ Not applicable Section VI. Key Accounting Information and Financial Indicators Does the Company need to adjust its financial data retrospectively or restate its accounting data of previous year? □ Yes √ No
recent three financial years is negative, and the audit report of the most recent year shows that there are uncertainties on the Company’s ability to continue operations □ Yes √ No The lower of the net profit before and after deduction of non-recurring profits and losses is negative √ Yes □ No
Section VII. Differences in accounting data under domestic and overseas accounting standards 1. Differences between net profits and net assets disclosed in the financial reports in accordance with Chinese accounting standards and international accounting standards □ Applicable √ Not applicable There is no difference between the net profits and net assets disclosed in accordance with Chinese accounting standards and those disclosed in accordance with international accounting standards in the reporting period. 2. Differences between net profits and net assets disclosed in the financial reports in accordance with Chinese accounting standards and overseas accounting standards □ Applicable √ Not applicable There is no difference between the net profits and net assets disclosed in accordance with Chinese accounting standards and those disclosed in accordance with overseas accounting standards in the reporting period. Section VIII. Quarterly Key Financial Indicators Unit: RMB
quarterly and semi-annual reports? □ Yes √ No Section IX. Non-Recurring Profits and Losses √ Applicable □ Not applicable Unit: RMB
□Applicable √ Not applicable There is no other profit and loss items that meet the definition of non-recurring profits or losses Provide explanations for classifying items of non-recurring profits or losses defined or listed in the Explanatory Announcement No. 1 for Information Disclosures of the Company Issuing Securities Publicly — Non-recurring Profits and Losses as items of recurring profits or losses. □ Applicable √ Not applicable The Company has not classified non-recurring profit or loss items defined or listed in the Explanatory Announcement No. 1 for Information Disclosures of the Company Issuing Securities Publicly — Non-recurring Profits and Losses as recurring profit or loss items in the reporting period. Chapter 3 Management Discussion and Analysis Section I. The industry situation of the Company during the reporting period 1. The industry is under short-term pressure, but the demand expansion remains unchanged.. In 2022, due to the complex and ever-changing domestic and international situations and multiple unexpected factors, the demand and supply of the recruitment and training industry have also been greatly affected. However, with the gradual recovery of the market economy at the end of the fourth quarter, industry demand has been boosted. Urbanization, equalization of public services, large-scale renewal of working personnel and other elements are major trends in economic and social development, which lead to a long-term growth in the number of civil servants recruitment and examinees. In the “14th Five-Year Plan” for Public Services, jointly issued by the National Development and Reform Commission and other related departments, the goal of continuously promoting the equalization of basic public services is clarified, and social forces are encouraged to focus on strengthening the supply of inclusive and standardized services in fields such as elderly care, childcare, education, and medical care. As a result, the market demand from a wide range of cities, counties, and even towns is further released, and the long-tail trend of the market will continue to strengthen. 2. The “14th Five-Year Plan” requires that the quality and capacity of education, medical care, elderly care and other services be greatly improved.. In terms of education, the “14th Five-Year Plan” requires to greatly improve education equality and quality; promote the popularization of higher education, create more than 60 million new jobs in cities and towns; build, renovate or expand 20,000 kindergartens to increase enrollments by over 4 million for ordinary families; and build, renovate or expand more than 4,000 primary and secondary schools. In terms of medical and health care, it requires to expand disease prevention and control bases, build national and regional medical centers, and strive to upgrade 500 county-level hospitals to meet the facilities and service capabilities of top-tier hospitals. In terms of elderly care service, 500 districts and counties will be supported in building a model community home elderly care service network, about 300 training and convalescent institutions will be supported in transformation into inclusive elderly care institutions, and more nursing beds will be provided for about 1,000 public elderly care institutions. In terms of childcare service, 150 cities will be supported to develop childcare service with social resource, and more than 500,000 exemplary inclusive childcare enrollments will be added. All of these investments mentioned above will strongly promote the sustainable growth of the recruitment sectors, especially the recruitment sectors of teachers, medical staff and community workers. 3. Policy support for vocational education is enhanced. The year of 2022 is a crucial year for improving the quality and excellence of vocational education, as well as for tackling the challenges of reform. It is also a milestone year in the development of vocational education. This year, a series of favorable policies were introduced at the national level to promote the development of vocational education: In May 2022, the newly revised Vocational Education Law of the People’s Republic of China was officially implemented, marking the first major overhaul of the law since its promulgation and implementation in 1996. This law specifies the need to coordinate the development of vocational education and general education. In September 2022, the Ministry of Education and Ministry of Human Resources and Social Security of the People’s Republic of China officially released the new version of the Introduction to the Majors of Vocational Education and Occupational Classification System of the People’s Republic of China (2022). The new version of Introduction to the Majors of Vocational Education unifies the framework of introduction to majors in secondary vocational schools, vocational colleges, and vocational undergraduate education, covering all 19 major categories of the new version of the professional catalog, including 1,349 majors in 97 major sub-categories. In October 2022, the report of the 20th National Congress of the Communist Party of China proposed a new discourse on vocational education. The report emphasized the need to promote collaborative innovation in vocational education, higher education and continuing education, to promote integration between vocational education and general education, between industry and education, and between science and education, and to better position various types of vocational education. For the first time, the report explicitly included “master craftsmen” and “high-skilled workers” in the national strategic talent list. In December 2022, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued Opinions on Deepening the Reform of Modern Vocational Education System Construction, proposing strategic tasks including exploring new models of provincial system construction, creating municipal industry-education consortium and industry-education integration communities, and striving to complete key work in five areas and complete condition-guarantee work in four areas, including improving key abilities of running schools, building a team of “Academic-Practical Teachers”, and constructing practice center for integrating regional industry and education. 4. Main industry characteristics and cyclical characteristics The institutions of vocational education distribute vastly all over the country. Such situation lifts the barriers to competition in this field. The demand of vocational education distributes vastly in every province and every city, especially in the prefecture-level cities and the counties. Almost every county has a vocational high school, and every prefecture-level city has vocational colleges. The recruitment demand for civil servants also comes in large numbers from prefecture-level cities and counties. This has given rise to a large number of local small and medium- sized training institutions, and provided large institutions with a wide space to expand their channel networks, while making management difficulties and barriers to competition suddenly higher. The training for civil servant recruitment tests is seasonal. For trainees, the 1-2 years before or after their graduation are the key period to take training classes for the recruitment tests. The national civil servant test takes place once a year, and the provincial civil servant examinations basically take place once a year, while a few provinces will have another joint examination in the second half year. And the recruitment of public institution employees and teachers are carried out according to the needs of the provinces and cities, which are distributed in each month throughout the year uncertainly. The documents of recruitment plan are of a great amount. This seasonal fluctuation of recruitment has caused major growth bottlenecks for small and medium-sized training institutions and has also provided large institutions with continuous motivation to constantly challenge the scale boundary. With the rapid increase in examination categories and business sectors, large institutions will increasingly enjoy the benefits of scale effects and obtain a more sound resource allocation structure. In recent years, the momentum of recruitment examinations has switched to new areas such as public institutions, teachers and comprehensive recruitment, bringing rapid concentration of market share to leading enterprises. Section II. The Company’s main business during the reporting period Offcn Edu is a large-scale multi-category vocational education institution, and it is also the pioneer and leader in the field of public service recruitment examination training in the country. The Company bravely undertakes the mission of the times, continues to create new markets, and serves the society with kindness and altruism. Offcn Edu mainly serves knowledge-based employment population including college students, university graduates, and various professionals, aged 18 to 45. This huge group of hundreds of millions of people is spread throughout the country, cities and towns at all levels and in all walks of life. Employment and vocational ability improvement are their two core demands. For hundreds of millions of knowledge-based people and based on the two core demands, the Company’s main business covers three major sectors including training for public service recruitment examinations, college and high institution enrollment examinations and vocational ability enhancement, and it provides more than 100 categories of comprehensive vocational training service. The Company has more than 1,000 outlets across the country, covering more than 300 prefecture-level cities. After a long-term exploration and accumulation, Offcn Edu has owned a large-scale full-time R&D team of more than 1,600 people, a large-scale teaching team of more than 9,000 teachers, and a staff of more than 20,000 people. Relying on its outstanding team execution and nationwide vertical integrated fast response capability, the Company has developed into an innovation-driven enterprise platform. Section III. Analysis of the Company’s core competitiveness vertical integrated fast response. The key driving factors are as follows: 1. Clustered professional R&D continuously outputs momentum for innovation. At the beginning of the career, the Company took the lead in carrying out full-time and professional R&D, based on which it created a brand-new market. Over the past decade, the Company has fostered an expert team with rich practical experience in R&D and R&D management through front-line teaching practice and adaption to market upgrading. Under the joint lead of the founding team and the expert team, a full-time R&D team of more than 1,600 people has formed. With the expansion of categories and the involvement of different sectors, the Company's professional R&D not only achieves the continuous division of labor under the scale effect, but also constantly creates R&D cluster effect of collaboration between categories, which greatly improves the efficiency of R&D, especially the grafting efficiency of using stock R&D resources in new categories and new businesses. 2. Vertical integrated fast response capability supports the Company’s sustainable operation structurally and efficiently. The high operation efficiency far beyond the general industries is a necessity to realize scale economy and establish competitive barrier in the decentralized market. Therefore, vertical integrated fast response system and capability can best adapt to this kind of market environment. In each exam, “Business outlets — Headquarters command center — Teaching sites” are giving responses and feedback with high frequency every day. Thus, management and learning effect far above the average can be realized. Vertical integrated corporate structure can not only realize the high efficiency of operation, but also be effectively compatible with the management impact brought by rapid business category expansion. So investment in and innovation on this corporate structure has always been a central part of the management reform. At present, Offcn Edu has established more than 1,000 business outlets covering 300 prefecture-level cities. Simultaneously, the headquarters command center continues to seek the scale effect of management with the help of management reform and digital operation. In recent years, Offcn Edu has also continuously invested in the construction of large-scale one-stop bases for food, housing and learning to promote the realization of large-scale factory operation on the teaching sites. 3. Digital operation forms the enterprise platform with “real-time situational awareness”. The team’s exploration for digital operation has lasted for more than 15 years, and in recent years, the investment scale for digital operation infrastructure has increased significantly. One reason is to meet the management needs for rapid expansion of categories. The other reason lies in the great adaptability of vertical integrated fast response system to digitization. After the system was integrated with digitization in depth, it generated higher operating efficiency and significantly improved the foreground and background response frequency from units of days to a level close to “real- time situational awareness”, which enhanced the Company’s core competitiveness based on speed economy 4. The values of kindness and altruism are ubiquitous and flourishing. As a knowledgeable staff-intensive vocational education institution, the Company has established a concise and effective corporate culture in the long journey of arduous entrepreneurship, with the core value of “Be Kind & Do Right” and advocating altruism. Not only has it become a company system, but also the founding team has taken the lead to set an example, influenced the staff level by level, and unswervingly implemented it in the operation, making the values of Offcn Edu ubiquitous and flourishing in the enterprise. This distinctive and tangible corporate culture allows the Company to maintain strong organizational cohesion. of the Company. From the establishment of the Party committee in 2018 to the founding of the first Party school of non-public- owned enterprise in 2019, the Party committee of Offcn Edu has fully utilized the Company’s advantages of knowledge, theory, and technology and actively promoted employees and students to implement the Party’s political routes, principles, and policies. Meanwhile, Offcn Edu focuses on the integration of the Party building of non-public enterprises and corporate culture cultivation to promote the healthy and vigorous development of the enterprise. As of December 31, 2022, the Company had about 5,000 Party members, accounting for more than one-fifth of the total number of employees. Section IV. Core business analysis 1. Overview (1)The Company’s losses have significantly narrowed. In 2022, the situation in the education and training industry is even more severe than that in 2021. Due to the complex and ever-changing domestic and international situations and multiple unexpected factors, the development environment of the education and training industry continues to be under pressure, and the industry remains sluggish. At the Company level, due to multiple unexpected factors, the Company’s directly operated branches and learning centers in various regions were closed temporarily, causing significant interference in enrollment and teaching. On a quarterly basis, the civil servant provincial joint examination in various provinces, originally scheduled for late March, has been postponed to early July, and there have also been delays in the interview of national civil servant examinations, teacher recruitment examinations and recruitment examination for public institutions. Those uncertainties in business environment have had a significant adverse impact on the Company’s business receipts and recognition of revenue in the first half of the year. But in the third quarter, the Company took various effective operational measures and optimized management to turn losses into profits. However, in the fourth quarter, due to travel restrictions, the Company’s face-to-face teaching business was almost completely suspended. Due to rigid operating expenses such as labor and venue costs, the fourth quarter suffered losses. However, during the reporting period, although greatly impacted by the harsh market environment, the Company carried out a series of annual business boost plans such as internal optimization to reduce costs and increase efficiency, and structural adjustments of products, resulting in a significant reduction in losses of annual performance compared with that of previous years. In the next stage, the liberalization of policies and the gradual recovery of the economy will user in new opportunities for the reconstruction of the global economic order, and will also bring us confidence. In order to further improve the overall business performance, the Company has launched the “Recovery and Consolidation Action”, addressing the problems in business management from aspects such as organizational structure, employee motivation, product innovation, and marketing methods, so as to gradually restore and stabilize the Company’s performance. During the current reporting period, the Company achieved a total operating income of RMB 4,824,814,105.43 yuan, a 30.19% year-on-year decrease. Net profit attributable to shareholders of the listed Company was RMB - 1,102,059,818.43 yuan, a decreased loss of 53.49% from the previous year. After deducting non-recurring profits and losses, net profits attributable to shareholders of the parent company was RMB -1,113,077,251.50 yuan, a decreased loss of 55.22% from the previous year. The key operating resources and performance indicators during the reporting period are stated in the table below:
optimized its organizational structure and closed ineffective branches. At the end of the reporting period, the total number of directly operated branches of the Company was 1,113, a decrease of 395 from 1,508 in 2021 and a year- on-year decrease of 26.19%. The closure of the branches was also accompanied by the optimization of staff. At the end of the reporting period, the total number of employees in the Company was 22,652, a decrease of 37.33% on an annual basis. In addition, the Company has made efforts to reduce costs and expenses. During the reporting period, the Company’s total operating costs decreased by 37.63% year-on-year, sales expenses decreased by 35.44% year-on- year, and management expenses decreased by 28.87% year-on-year. Significant results have been achieved on controlling expenses. (3) Vocational education business has achieved phased practical results. In 2022, the Company integrated internal resources and continued to explore new vocational education businesses, achieving some practical results in school-enterprise cooperation and deepening the integration between industry and education. During the reporting period, the Company jointly established majors with colleges in Henan, Shaanxi, Sichuan, Hunan, and other regions, and the number of trainees has reached nearly 4000. Among them, the major of AI technology application jointly built with Puyang Petrochemical Vocational and Technical College, the major of software testing jointly built with Kaifeng Information Engineering School, the major of UI/UE interaction （未完）  |