Gaosi Education: Net Profit Grown by 163.25%, K-12 Training On the Way | JD Star

2017-09-11

Just before the Teacher’s Day, Gaosi Education, one of JD Capital’s investees, released its semiannual report 2017. According to the report, Gaosi Education reaped a revenue of RMB 265 million yuan, registering a YoY increase of 55.96%; the net profit attributable to the shareholders of the listed company amounted to RMB 35.9215 yuan, implying a YoY increase of 163.25%.0wD九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Gaosi Education is mainly engaged in the R&D and application of K-12 education products, and the provision of product solutions and teaching services for primary and secondary students as well as K-12 education institutions. The curriculum it develops covers lots of disciplines including Chinese, mathematics, English, physics and chemistry for primary and secondary schools. Its businesses are operated under four major programs, namely, Be Excellent in Small Classes, Love Learning Program, Higher Grades Program, and Top Students Program.0wD九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

During the report period, the main businesses and business models of Gaosi Education and its sub-companies and training schools are as follows.0wD九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

According to the report, the consolidated gross profit of the report period basically equals that of the previous period, and so does the consolidated gross profit of Be Excellent in Small Classes and Higher Grades Program. In the first half of 2017, 6 small classes were newly developed, covering a teaching area of 6,554 square meters; 2 schools started to offer Higher Grades Program, with a teaching area of 1,425 square meters. The competition system of the Top Students Program reports a much higher gross profit compared with a year earlier. However, as the models of “Double-Teacher Class” and “Xidian Normal School” for Love Learning Program are still in the process of pilot promotion, and the costs are relatively higher, the gross profit goes lower than the previous period.0wD九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

In the future, Gaosi Education will develop under the business model of “Internet-based offline training + rapid online connection + industrial ecological integration”; that is, it will form a new pattern of the training industry by consolidating traditional businesses, and promoting their horizontal expansion and vertical extension in K-12 education by virtue of Internet technologies and industrial integration.0wD九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

The new media platform Blue Whale Education said that, “It can be seen from Gaosi’s semiannual report that the market favors its competition system very much, and the costs are controlled properly. The competition system of its Top Student Program performs especially well. It can be said that this is a rapidly growing education company listed on the National Equities Exchange and Quotations (NEEQ). But it needs to pay attention to the changes of labor cost and the construction of a sound operating structure.”0wD九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

In 2015, JD Capital invested in Gaosi Education, an important primary and secondary education and training institution. In the future, the profits will be used to expand and improve the K-12 training businesses of Gaosi.0wD九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

JD Capital plans to increase its investment in the education industry, and, availing its resource advantages, work with bellwethers in such industrial subdivisions as early childhood education, K-12 education, and vocational education, so as to build a comprehensive platform for education investment. 0wD九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

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