Can the transformation of the universe and mining, can the United States International Education be dark?

Picture source: Oriental IC

On May 17, in the 2021 financial report, Midland International Education proposed to actively develop the Yuan universe, blockchain and cryptocurrency mining business, and to complete the transformation to the Yuan Cosmic Technology Company in the next year or two.

On June 6, Midland International Education revealed that the company has invested in operating 1482 mining machines, mined 30.6 Bitcoin, and will continue to expand the scale of its digital currency business.

From teaching English to mining, why is the Milian International Education transformed track so obtrusive?

Three years in a row, walk to the end

According to the latest financial report of the United States International Education, the revenue in 2021 was 729 million yuan, a year -on -year decrease of 18.7%.

From the perspective of income composition, the revenue of ordinary adult English training decreased by 47%to 176 million yuan. Online English language training slightly rose by 0.2%, and jumped to the largest largest section with the highest income, creating a revenue of 290 million yuan. In addition, overseas training services revenue was 151 million yuan, an increase of 15.7%year -on -year; primary English income was 98 million yuan, a year -on -year decrease of 24.8%.

Obviously, the English training of ordinary adults no longer occupies an absolute share in the revenue structure of Midland International Education.

The financial report also revealed the progress of the diversified small language courses launched in December 2020. In fiscal 2021, the company's income from Japanese, Spanish and Korean training services was 8 million yuan. Such a performance is really not outstanding. Compared with the contracted primary English income during the same period, small language curriculum income accounts for only zero.

In the 2021 fiscal year, the net losses of Midland International Education were 386 million yuan, a slight loss of losses year -on -year. After the adjustment, the net loss was 360 million yuan, and the loss expanded by 12.9%. This is the third year of the continuous loss of international education in the United States. From 2019 to 2021, the net losses of Midland International Education were 225 million, 413 million and 386 million, respectively.

In the context of the decline in income and continuous blood loss, the United States has greatly controlled the cost. This indicator decreased from 20.3%to 483 million yuan from 607 million yuan in the 2020 fiscal year.

The reduction of cost is not from reasonable control, but a real "broken arm". The financial report shows that the company closed 84 offline learning centers by the end of 2021. As of the end of 2021, a total of 34 learning centers were operating, of which the number of self -operated learning centers decreased by 69.5%to 32, and the number of franchise centers decreased by 84.6%to 2.

The CEO of Midland International Education, Pence, said that the number of offline learning centers in fiscal 2021 was to effectively reduce the impact of epidemic on business.

Perhaps the epidemic is on the one hand. Behind the Milian International Education's move, I am afraid that it is still in the adult English training market that has shrunk sharply.

In the adult English training market, Midland International Education is not an example. In April this year, the "fluent theory" of adult English training brands listed in the United States was forcibly delisted. Looking back on its performance, it is also a consecutive years, with a cumulative loss of approximately 1.458 billion yuan from 2018 to 2020.

Faced with the shrinking adult English track, the direction of the transformation of the Midland International Education after "Broken Ant" is very surprising.

How can there be a vent?

The transformation of Midland International Education seems a bit uncertain.

In August 2021, in the context of the K12 education giant turned to quality education tracks and "medical beauty", Midland International Education stated in the semi -annual report that it is necessary to actively develop quality education business and cross -border medical beauty and VR cross -border Entering.

It mentioned in the financial report that it is planned to launch a growth center nationwide to teach Steam (science, technology, engineering, art and mathematics), handicrafts, creative arts, children's drama and calligraphy.

Later, no action was seen. Even in the latest annual report, the progress of the quality education business has disappeared. During the 2021 annual report, Midland International Education changed another set of statements to develop cryptocurrencies and Yuan cosmic education business, and hoped to transform into Yuan Cosmic Technology Company in the next year or two.

Unlike the previous transformation of "painting cakes", the pace of Midland International Education's transformation is very firm this time. Specifically, the transformation of Midland International Education can be divided into the following three directions.

The most related to education is teaching Chinese. The business was officially launched in May 2022. Midland International Education revealed that it will carry out foreign -language projects in countries along the “Belt and Road” in Malaysia and Indonesia.

Midland International Education emphasizes that the online platform of light asset business models will be used to integrate foreign teachers and collaborative channels that have been deeply cultivated in the English training market for many years, and combine professional teaching experience with artificial intelligence technology to build a global online learning platform.

The use of foreign teachers to teach foreign Chinese seems to be confusing. However, judging from the prospectus disclosed at the time of the Lianlian International Education listing, the risk reminder specifically mentioned that foreign teachers hired did not have a work visa and residence permit. This time, the online education platform is adopted to integrate foreign teachers' resources to carry out Chinese language training to avoid risks from the side.

His founder Zhao Jishuang said that the focus of Chinese teaching is to cultivate students' ability to practice and communicate with Chinese on online learning platforms. In this way of introduction, the goal of teaching Chinese language is not high.

Followed by the vocational education of the universe. That is, the vocational education based on the Yuan universe as the teaching content. However, how to teach the Yuan universe? The United States International Education believes that there is a shortage of infrastructure talents in the Yuan universe and blockchain industry.

In December 2021, Midland International Education began to test water in the vocational education course of the Yuan universe. For individuals who have just graduated from school but do not have visual design knowledge, and hope to start a career in this industry, they have set up visual design -related courses, such as post -video production, game rendering, building visualization and interior design.

But last year, the concept of the Yuan universe burst into fire, and the overall daily average of the Baidu index of the word "Yuan Universe" reached 20083. At the same time, vocational education has also become a popular track for education institutions. Under the "dual -winding" effect, Midland International Education has made certain progress.

Its financial report revealed that in the first quarter of 2022, it achieved a curriculum income of 10 million yuan, and it exceeded the income of small language courses since the year since last year. It is expected that the total revenue of the course reached 50 million yuan in 2022.

After taste the sweetness, the United States International Education continued to advance. In March 2022, it cooperated with Shenzhen Shengxue Culture and Hainan Huoya Education to launch a meta -cosmic education business such as blockchain English courses.

In addition to the vocational education of the Yuan universe, the second direction of the United States International Education is cryptocurrency business. Specifically, cryptocurrency mining, mining construction, mining pools and data center operations in North America.

After determining cross -border cryptocurrencies, the Midland International Education "buy and buy": On the one hand, the acquisition of digital currency companies, on the other hand, buying mining machines and investing in mines.

In March 2022, the Midland International Education announced with Global Blockchain to participate in the construction of digital currency mining, and plans to invest a digital currency mining place with a capacity of 5 to 10 MW in the United States. In April 2022, Midland International Education cooperated with Tokenomomics Digital Tech Corporation (TDTC) to develop mergers and acquisitions from mining machine hosting services, digital currency third -party services, and digital currency companies. It is reported that TDTC will provide information about potential goals, provide suggestions on financial due to due diligence and valuation, and provide support for the company during the negotiation process.

The potential target company of digital currency mining needs to have at least 1,000 mining machines or minimum valuations in the United States and other regions that meet regulations. As of June 2022, Midland International Education has invested 1482 mining machines with a total computing power of 150PH/s. In addition, 600 XP mining machines purchased from Bitmain will be delivered and put into operation in the second half of 2022.

In summary, Midland International Education has transformed into three aspects: vocational education, cryptocurrencies, and Chinese language teaching in Yuan. The three transformation directions are different, but you can see the transition trend of the three business center of gravity.

The first is to change from offline to line. Whether it is the newly developed small -language courses and Chinese courses on the online platform, or the offline teaching center that has been significantly reduced, it implies this.

The second is to shift from domestic to foreign countries. That is, from China to North America from China to supporting cryptocurrency mining and the "Belt and Road" countries that require Chinese teaching.

The third is to gradually tilt to non -education business. In terms of three transformation directions, the biggest investment in the international education of the United States is the cryptocurrency business. Earlier also emphasized that the cryptocurrency business was the core business of the company's strategic transformation in 2022.

In addition, as early as August 2021, Midland International Education has announced that the company name has been replaced from "Meten Edtechx" to "Meten Holding Group". The peeling of the word "education" suggests its determination.

From teaching English to the basic technology of "Yuan Cosmic", and even going to North America, it is determined to become a Midland International Education for Yuan Cosmic Technology Company in one or two years. Is it feasible?

A gambling?

In fact, before exploring the direction of the transformation of the meta -universe, blockchain and cryptocurrencies, many problems of the original international education of the United States have not been resolved.

One is the business supported by "training loan". Blue Whale Education Inquiry Black Cat Complaint Platform found that many students complained about the "training loan" of the United Education. In May of this year, some consumers complained that the United States Education induced to handle online loan installment contracts, and will not be canceled after requesting a refund.

Second, a large number of offline training centers that have been revoked are questioned in the problem of refundable fees. Since 2022, a number of consumers have complained about the situation of "rolling running" and "refusal to refund" in international education. A consumer located in Dongguan said that Houjie Midland English has been closed, and the course has changed from offline to online. The online and offline courses are different. When refunding is required, the other party expressed rejection.

In response, Pence Guang, the CEO of Midland International Education, said that in order to adjust the optimization of business layout, we transfer offline courses to online courses and allow all offline students to arrange online courses simultaneously after September 2021.

However, consumers do not seem to buy online transitional plans. The annual report of 2021 shows that the withdrawal rate has soared by 5.4%again to 16.4%.

For Midland International Education, which is also necessary to carry out vocational education in the universe in China, the retirement rate and complaints that have always been high may lead to a fire in the backyard.

From the perspective of investment, for a company that must be tilted and determined to develop the Yuan universe technology online, its research and development costs in 2021 have reduced 42.2%to only 18.41 million yuan. Not only that, the cash and liabilities of the United States International Education seem to be not enough to support its large span transformation. From 2019 to 2021, its asset-liability ratio was 116.6%, 132.99%, and 95.87%, respectively. The financial report in 2021 shows that non -liabilities have decreased significantly from 200 million yuan to 59.82 million yuan. The liabilities of mobile leasing operations were reduced from 131 million yuan to 35.81 million yuan. The asset -liability ratio that declined in 2021 was mostly due to the reduction of offline teaching centers. But even so, 95.87%of the asset -liability ratio is not good.

In addition, as of the end of 2021, the cash and cash equivalents of the United States International Education were 168 million yuan. This amount seemed to be a bit uncomfortable to buy a mining machine and the transformation of digital currency companies.

At present, Midland International Education has invested in 1482 mining machines. In addition to the cost of mining machines, electricity and custody fees are a lot of expenses. At present, cryptocurrencies are undergoing a period of low downturn. This month, Bitcoin has fallen successively, the lowest point since December 16, 2020.

Investing in such a big downturn, the prospect of the transformation of Midland International Education has covered a shadow.

In terms of the Yuan universe, in the first year of the Yuan universe in 2021, its future development still has a lot of uncertainty. At present, from the professor's courses, the content of the video, game rendering, architecture visualization, and interior design are not special. The Yuan universe seems to be more like a gimmick. And even if the wind has arrived, the foundation of the financial education of the United States may not be enough to support its large -scale investment.

In the cryptocurrency industry, it is involved in the Yuan universe that has not seen a clear future. The United States International Education is more like a gambling, or even speculative. It may be that there are still many uncertainty if it can be dark.

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