The net outflow of operating cash is nearly 500 million!High -way transformation business behind a single quarter profit needs to be polished?

In the first quarter of 2022, the net outflow of high -journey operating cash outflow was nearly 500 million yuan.

"Investment Times" Researcher Prince Xixi

For nearly a year after the "dual reduction policy", how did the original K12 education and training head company's business transformation effective?

A few days ago, the online education listed company GOTU.N disclosed that the first quarter of 2022 has not been audited financial results in the first quarter of 2022, and its net income and revenue costs have "doubled" to 725 million yuan and 213 million yuan year -on -year. The gross profit margin increased slightly by 0.1 percentage points year -on -year.

At the same time, due to the significant reduction of various expenses, especially under policy control, the expenditure of disciplinary counseling service marketing activities is greatly reduced. The company's sales expenses dropped by nearly 90 % year -on -year, reflected in the profit side, and the company achieved net profit of 53.718 million yuan. Compared with the same period of the previous year, it was also the second quarterly profit after the release of the "dual reduction policy". However, its net interest rate indicator is only "single -digit", which is about 15 percentage points from the fourth quarter of 2021.

Some analysts believe that the transformation path of the original K12 education and training companies such as Gaomu Group has gradually become clear and showed some results. Some analysts believe that the company's various transformation directions are facing different difficulties. The transformation business is in the early stage of development and is still uncertain.

It is worth noting that on May 20 this year, the company released the white paper of the postgraduate entrance examination for the first time, and proposed that "the two years will become the first in the postgraduate education industry", which shows that the company attaches great importance to the field. But can Gao Tu Group's wish come true? Faced with the same competition of the "players" leading "players" and the original K12 teaching and training head company, the company's business transformation is final? And in the first quarter of 2022, the company's operating cash outflow of nearly 500 million yuan. If the short -term period continues to flow out, cash may gradually be under pressure.

In terms of stock price trend, on June 7th and 8th, Gaomu Group's stock price rose for two days. However, the waves have not been shocked since then. As of June 14, the closing was at $ 1.85/share (no right, the same below), and there was still a gap compared to the US $ 2.57/share in February this year.

Gaomu Group's stock price trend (USD) this year (USD)

Data source: wind

Net interest rate decreased month -on -month

Public information shows that Gaotu Group was formerly known as "who learned from" and was founded in June 2014. In July 2021, the "dual reduction policy" landed, and the K12 education and training head companies such as New Oriental, Hao Future, Dou Shen Education, Study of Education, Ape Counseling, and Operations Gang have transformed. In the third quarter of 2021, Gaomu Group announced that it would transform into the direction of adults, vocational education and smart digital products to start the third entrepreneurial. At the end of 2021, the company stopped the K9 service; before February 2022, it stopped providing tutoring services related to disciplines to high school students.

Judging from the first quarter report disclosed a few days ago, in the first quarter of 2022, the company achieved net income of 725 million yuan, a decrease of 43.1%month -on -month and a decrease of 62.7%year -on -year. Affected by the company's business reorganization, the cost of learning materials, and the decline in rent expenditure, the company's revenue cost was reduced from 572 million yuan in the same period last year to 213 million yuan, and the decrease was about 62.7%, which was consistent with the decline in net income. As a result, the comprehensive gross profit margin was 70.6%, a slight increase of 0.1 percentage points from the same period last year.

From the perspective of the data, the highlight of Gao Tu Group's performance in this quarter is the profit end. Due to policy control and disciplinary counseling brand and marketing activities, the expenses of Gao Tu Group were only 284 million yuan, a decrease of 87.6%from the 2.289 billion yuan in the same period last year, far exceeding the decline in net income.

The company's R & D costs, general and administrative expenses decreased slightly, and their declines were more than 63%. On the whole, the company's operating expenses fell from 2.871 billion yuan in the same period last year to 486 million yuan, a decrease of 83.1%.

As a result, in the first quarter of 2022, Gaomu Group realized net profit of 53.718 million yuan, and the net profit of non-recognized accounting standards (NON-GAAP) was 92.543 million yuan. Yuan and 1.329 billion yuan have turned their losses.

From the quarter, the company has two consecutive quarters of profit, but the net interest rate indicator has not fully recovered. In the first quarter of 2022, the company's net interest rate and net interest rate (NON-GAAP) were only 7.4%and 12.8%. Compared with 22.4%and 25.5%in the fourth quarter of 2021, about 15 or 13 percentage points were dropped.

The main financial and operating data of Gaomu Group in the first quarter of 2022 (1,000 yuan,%)

Data source: company quarterly report

The transformation business needs to be followed

In the first quarter report, Chen Xiangdong, the founder, chairman and CEO of the company, said that compared with the previous quarter, the scale of professional and vocational education services was further expanded. STEAM education (quality education) services have also made progress, especially in programming counseling business. In the future, the company will continue to develop four core businesses, namely college students and adult education, vocational education, quality education and digital products.

Relevant research reports show that during the reporting period, the company's college students and adult education, quality education, vocational education and digital products revenue increased by more than 200%year -on -year, and this part of the cash income was 42%year -on -year; of which, adult business income The year -on -year and month -on -month increases exceeded 80%, especially the cash income of programming business increased by more than 10 times year -on -year. However, the researcher of the "Investment Times" noticed that in the quarterly report, the company did not "refine" the income of each business sector, so the specific revenue and income contribution of various business sectors were unknown. Huatai Securities Research Report pointed out that the transformation direction of the K12 education company has gradually become clear. Among them, adults, vocational education, quality courses and other business bases are relatively small and are more likely to achieve high growth. Renewal needs to be followed for a long time.

Some people in the industry believe that there is no problem with the business direction of Gaomu Group at this stage, but the difficulty is different from all directions. For example, the civil servant examination market has occupied Zhonggong Education and Huatu Education, and there are not many remaining markets. The high threshold for vocational education and the market logic are different from the K12 field.

In fact, on May 20 this year, the company first released the "White Paper Graduate Book of Gao Tu College Students" and the "Concentric Circle 4.0" product that upgraded the business of college students, and proposed that "two -year period became the first in the postgraduate education industry." The postgraduate entrance examination is the company's existing business and market size of tens of billions, but whether the "two -year" desire can come true, it is to be viewed.

In addition, it is not to be ignored that the Dao.N in the same way, diversified investment in intelligent hardware, Steam, and adult education. In the first quarter of 2022, the total revenue of 1.201 billion yuan, a year -on -year and month -on -month increase of 26.6%, 14.5, 14.5 %, The gross profit margin year-on-year, an increase of 1 and 11 percentage points to 53.5%month-on-month, and the net loss of the mother-in-law narrowed by nearly 60%year-on-year and was -095 million yuan. Based on the advantages of the original teaching and research and technology, the good future (TAL.N) is also exploring the field of technology and content service providers outside the learning service.

Faced with the leading "players" in various market segments and the original K12 teaching and training company competing in the same game, the future performance direction of Gao Tu Group still has certain uncertainty.

In addition, in the first quarter of 2022, the net operating cash outflow of Gaomu Group was 481 million yuan. Although the amount of net outflows in the same period last year decreased, it was still out of flow. The company holds cash equivalent, restricted cash and short -term investment of 3.207 billion yuan, which is 464 million yuan compared with 3.671 billion yuan in the end of 2021. If in the future, the company's operating cash will continue to flow out, and cash may continue to undergo pressure.

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