Double -minus B, this education company's profit increased by more than 22 times

On August 2nd, Century Tianhong released a semi -annual report, and the net profit in the first half of the year increased by more than 22 times year -on -year.

In May of this year, Century Tianhong announced the latest stock incentive plan and set up three performance targets with double net profit of the year.

Century Tianhong is so arrogant, where does the confidence come from?

Under the "double reduction", the determination to make a three -year net profit doubled?

According to the financial report, in the first half of 2022, Century Tianhong achieved revenue of 120 million yuan, an increase of 26.84%year -on -year.

Back to the first half of the year's revenue data for the first half of the year, the revenue during this report revenue set a new high since its listing in September 2017.

The performance of net profit was even more eye -catching. In the first half of the year, it turned to a profit of 7.5034 million yuan, which increased by more than 22 times compared with the loss of 356,400 yuan in the same period last year.

Back to the previous data, the revenue and profits in the first half of 2020 declined significantly. In the financial report, Century Tianhong said that in the first half of 2020, revenue and net profit appeared significantly due to the affected affected by the epidemic.

By the first half of 2021, despite the return of revenue, the net profit changed from profit to losses. This is also the first loss of the first half of the year since Century Tianhong's listing. In this regard, Century Tianhong said that the introduction of the "double reduction" policy objectively accelerated the progress of precision teaching projects such as "educational content AI system". During the reporting period, the company increased the progress of the project and continued to increase investment in the construction of question banks, software development, foreign cooperation, user experience, school pilot, etc. The products have been tried in schools in Shandong, Hebei and other places, and strive to use accurate teaching to use accurate teaching. The policy Dongfeng enabled the company to achieve the growth of the second curve on the basis of the original teaching aid business.

Compared with the downturn in the same period of the previous two years, the large -scale performance of Tianhong in the first half of this year is really concerned. Southwest Securities released a research report on August 4, and the average net profit in 2022 was 44.19 million yuan, an increase of 27.56% over last year.

But Century Tianhong seems to have a higher goal of development in the next three years. In May of this year, Century Tianhong announced the latest stock incentive plan. The draft plan was determined to be based on June 7, 2022 as the day of grant, and the grant price of 3.985 yuan/share was awarded to 142 incentive objects that meet the granted conditions to award 5.553 million restrictions. stock.

For the company's performance, the annual assessment of the incentive plan is the three accounting years of 2022-2024. The goal is to use 2021 to deduct non-net profit to eliminate shares after paying shares. %, 100%. After 2021, its net profit was 26.9553 million yuan, an increase of 62.49%year -on -year.

If this assessment requirement is not met, the restrictive stocks that all incentive objects corresponding to the plan will not be attributed or deferred to the next period, and will be invalidated.

From the performance of the first half of the year, Century Tianhong hopes to complete the annual profit index. And it is achieved when revenue was renovated in the same period. Why can Century Tianhong perform such a dazzling performance?

Teaching and assistant off -season, directory product sales increase

Subdivided products and services. In the first half of 2022, Century Tianhong revenue mainly comes from teaching auxiliary books. During the period Increased by 8.28%.

In addition, the planning income business revenue was 12.358 million yuan, a year -on -year decrease of 19.81%; the gross profit margin was 45.34%, a year -on -year decrease of 5.3%.

It can be seen that the growth of revenue is mainly due to the growth of teaching auxiliary books.

Regarding the growth of teaching auxiliary book business, Century Tianhong said that the growth of the company's directory products during the reporting period was better. Century Tianhong pointed out that in the first half of the year, the company added more than 200 species of review catalog products in Shaanxi, Guizhou, Zhejiang and other provinces.

It is reported that as the development and publishing of the main teaching aid books, Century Tianhong has created the "Optimized Design", "College Entrance Examination Blue Book", "Ten Years College Entrance Examination", "Excellent Teaching Plan", "Smart Backpack" and "Shiwen Selected Cushion" and so on. The inner series of teaching auxiliary books, with the high school stage as the core, also covers the mainstream textbook versions of my country's primary school, junior high school, and full disciplines. It can meet students and teachers at the same time. Reference and teaching and research activities and other needs.

During the reporting period, Century Tianhong also created a high school overall review fist product "Optimized Design of College Entrance Examination General Review", and newly developed a series of "Morning Reading and Evening English" series of products, "Junior High School Connection Teaching Materials" biology, political disciplines, and parts of some places Special version of the product, a total of 1,780 books and production books, with a total number of nearly 700 million.

Century Tianhong showed confidence in the future development prospects of teaching auxiliary books. In the financial report, Century Tianhong revealed that the core user group of teaching materials and auxiliary is at school students. It believes that teaching materials and teaching aids are rigid markets. Compared with general books, the ability to resist risk is high. Its quoted data pointed out that in recent years, the number of primary schools, junior high schools and high schools has risen steadily, and in 2020, it has reached 107.25 million, 49.14 million, and 24.94 million. At the same time, the number of college entrance examinations in the country has also increased steadily. From 2019-2021, the number of national college entrance examinations is 10.31 million, 10.71 million, and 10.78 million, respectively.

The seasonal characteristics of the teaching auxiliary book business are obvious, which is related to the teaching arrangements of primary and secondary schools in my country. The teaching of primary and secondary schools in my country is generally divided into two semesters, that is, autumn semester and spring semester. The start time is September and March of the following year. The monthly semester of the year is issued, and the following spring semester is issued in November and December each year. Therefore, the company's main business income showed an imbalance in the last and second half of the year, and the revenue in the third and fourth quarters was significantly higher than the first and second quarters. Education AI business has no revenue for the time being, and continuously implemented construction

In addition to teaching auxiliary book business, the progress of other businesses is relatively slow.

Although it has been invested for several years and "dragged down" the profit of 2021 to losses, there is no related contribution to educating the AI ​​business in this financial report.

Regarding the development of related business, Century Tianhong stated in the financial report that during the reporting period, its key research and development of precision teaching products with independent intellectual property rights, based on new curriculum standards, new textbooks, and new college entrance examinations, relying on their teaching auxiliary content resources to create content to create content F. At present, its products have covered the students' daily homework, weekly test/monthly test, mid -term/last teaching scenarios, and continuously extended to other application teaching scenarios based on this, and tried in Sichuan, Shandong, Henan and other places. He served more than 40 schools and nearly 10,000 students.

During the reporting period, it was continuously developed by the entrepreneurial incubation platform created by all -thermal Shandong Hongyi Education. During the reporting period, he also invested in the establishment of Henan Puogao Education, which promoted the improvement of teaching and research capabilities through the joint entrance examination business. The platform company that has also relying on education on education, through data engine technology, big data mining and other technologies, it provides comprehensive education services such as academic career planning, comprehensive quality process evaluation, and volunteer reporting for school teachers and students and regional education departments.

From its recent disclosure capital operation, it seems that Century Tianhong's continued efforts on education AI systems can also be seen.

In March of this year, Century Tianhong announced that with a high discount rate of 98%of the 20 trading price of 20 trading days before the purchase quotation, 29.843 million shares were issued to 10 specific objects. The net fundraising was 236 million yuan. The distribution objects include Beijing Zhihong Education Investment Co., Ltd., Li Tianhong, Zhang Jianfei, Caitong Fund Management Co., Ltd. and 4 private equity securities investment funds.

At the time of the announcement of the announcement, Century Tianhong pointed out that all the funds raised will be used for educational content AI system construction projects.

In just one month after the fixed increase plan was released, Century Tianhong invested 30 million yuan in cash to increase Beijing Micro Mechanical Technology. And this investment payment will be all used for the research and development, promotion and operation of "precision teaching" business.

It is reported that Micro Mulberry Technology is an educational information application tool provider, serving front -line teachers. It owns sub -brands such as "garden nails" and "gardener exchange". At present, it has four regional centers in Beijing, Chengdu, Shanghai, and Wuhan.

In the sub -brand, "Garden Nail" is a class management tool brand based on WeChat ecology. It provides teachers with functions such as learning data collection, academic analysis, personalized layout operations, targeted release notices, and class voting. Schools; "Garden Dinghui" mainly sells the knowledge of CC -end products under WeChat ecology and short video live ecology, including library, including books, learning notes and some vocational training courses.

For this cooperation, Century Tianhong said that after the capital increase is completed, it will hold 26.087%of the equity of Micro Meak Technology. In the future, the two parties will explore and cooperate in the field of smart education, fully do the advantages of resource, promote mutual support for educational content and informatization technology, and jointly expand the accurate teaching business in the school, and accelerate the expansion of the market layout.

Regarding the capital increase, Micro Meak Technology and Founding shareholders promised that they will do their best to go public, and the market value of the first public offering is not less than 2 billion yuan, and the financing amount is not less than RMB 500 million.

However, according to Century Tianhong Investment Announcement, Micro Meak Technology has not yet achieved positive profit. The annual revenue of Micro Meak Technology in 2021 was 20.38 million yuan, and the operating cost was 8.07 million yuan. The net profit was negative. In 2020, the revenue of Micro Meak Technology was 10.66 million yuan, with a net loss of 1.83 million yuan.

From a business point of view, Century Tianhong's new business still does not improve much, but the publication of Faithy has grown rapidly after the "double reduction", which has strongly supported the overall operation. "Several happy and more worries", the demand for teaching aids in the short term may bring more flexibility to the future layout.

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