The profits to China International and Oriental Fashion have declined: What happened to the driving test training?

Picture source: Oriental IC

Within the same day, the pessimistic performance expectations were released to China International and Oriental Fashion.

Among them, it is expected that the mid -term net profit to China International is not less than 95%, and it may even obtain a net loss. Oriental fashion revenue fell 7.32%, and net profit decreased significantly by 80.32%to 16.6 million yuan.

Profit has declined, what happened to the driving test training industry?

In addition to the epidemic, there are "X factor"

The epidemic is inevitable for the cause of losses in the first half of the year.

To China International's performance trailer, the group's income from the driving training service business of large and small vehicles from large vehicles and small vehicles has been reduced. , Resulting in the overall decline in the number of large and small vehicles driving courses. At the same time, as of the six months ended June 30, 2022, the number of trainees attending the driving course and the actual training time provided by the group were reduced.

In the Oriental Fashion's financial report, under the influence of the epidemic, subsidiaries during the reporting period have different degrees of suspension, suspension, and flight. Specifically, many subsidiaries of Oriental Fashion have suffered to varying degrees of losses.

Among them, Yunnan Oriental Fashion Company lost 6.561 million yuan; Shijiazhuang Oriental Fashion Company lost 13.4587 million yuan, Shandong Oriental Fashion lost 24.797 million yuan; Jingzhou Oriental Fashion lost 2.2619 million yuan. From the annual report of 2021, the total revenue of these four regions accounted for 31%of the total revenue. The cumulative loss of these four regions reached 47.072 million yuan, which dragged down the overall profit performance.

In addition to the epidemic, each family has different difficulties.

Due to the small volume Xiangzhong International, last year's revenue was only 67.151 million yuan last year. As a result, some special situations may also have a impact on operations. In the preview of the performance trailer, although the number of trainees driving the course in the first half of the year and the actual training hours provided by the group have decreased, the average price of gasoline increased the increase in fuel expenditure, which eventually led to the gross profit and gross profit of the group's driving training service business and The gross profit margin fell as a whole.

A grain of international oil prices soaring, falling into a mountain in Xiang International, which directly caused its performance to decline.

The expansion of Oriental Fashion in various places has further dragged down profit performance. In the financial report, in addition to Yunnan, Shijiazhuang, Shandong, Jingzhou and other places, some companies under construction are also losing money. Among them, Hubei Oriental Fashion lost 14.861 million yuan; Chongqing Oriental Fashion lost 4.2483 million yuan; Jin and Central Eastern fashion lost 1.3145 million yuan. None of the companies in the three places brought revenue, and eventually brought further to the overall profit.

Facing the influence of the normalization of the epidemic, what kind of response can the driving test training institution come out?

Small and medium -sized institutions: Based on the core market, price reduction and sinking

It did not introduce the response method to China International in the preview, but from the previous annual reports, it can be known to its strategy.

As a driving training service provider operating two driving schools (that is, Shunda Driving School and Tongtai Driving School) in Zhumadian City, Henan Province, the scale to China International itself is limited. Therefore, after the impact of the epidemic, the first thing that can be done is to control the main expenses. In 2020 and 2021, the administrative expenditures to China International were 17.346 million yuan and 16.96 million yuan, respectively, a significant decrease from 23.95 million yuan in 2019.

While controlling administrative expenses, some expenses were invested to China International to the sales terminal. Sales and distribution expenses were 30.27 million yuan and 4.012 million yuan, respectively, an increase of 2.153 million yuan in 2019.

The main sales strategy to China International is based on the core market, and then sinks down the market and the surrounding market radiation. It mentioned in the financial report, "We are based on the core market of Zhumadian City, and the market development of sinking to natural villages, realizing villages and villages, villages and villages, and laying a solid market foundation for fine cultivation."

In addition to sinking market development, it also tried to extend to China International to extend to the province. ","

In order to enhance the competitiveness of driving schools, it has sacrificed the price reduction strategy to China International. According to the financial report, the cost of the large -scale vehicle driving course and the cost of driving for small vehicles were reduced to China International. The price -down price also objectively led to a significant decrease in gross profit margin. The gross profit margin of large vehicle driving training services decreased from about 48.7%in 2020 to 37.5%of 2021; Reduced 10.3 percentage points to 15.9%.

But even so, Xiangzhong International only guarantees that the revenue has not continued to decline sharply. The revenue in 2021 was 67.15 million yuan, which was basically the same as 2020, but a 28.1%decline in 93.452 million yuan in 2019. Due to the increase in sales and price reductions, the shareholders of China International accounted for a profit from 19.084 million yuan in 2019 to a loss of 3.45 million yuan in 2021.

Judging from the preview of the first half of this year, the profits of China International will be under pressure. Perhaps the impact of small and medium -sized driving institutions in the face of the environment such as the epidemic is successful. Oriental Fashion: VR+AI, continue to force flight training

For medium -sized institutions, their choices are more diverse.

Compared with the limited scale of Xiangzhong International, the Beijing market foundation is very reliable, which effectively guarantees revenue and profits. As early as 2013, its revenue exceeded 1 billion yuan. In the past 10 years, Oriental Fashion has always maintained positive profitability because it has a stable profitability.

Therefore, Oriental Fashion dared to expand to different parts of the country and different industries.

In the opening of the market outside the province, Oriental Fashion raised funds to invest in driving school projects in Hubei and Shijiazhuang in Hubei and Shijiazhuang. After the listing, it has entered the driving market of various provinces and cities through frequent establishment of different land companies, mergers and acquisitions of local driving schools. By 2021, the proportion of revenue created by foreign markets will reach 30 %.

Not only that, Oriental Fashion began to lay out the intelligent driving training mode of "VR+AI+Actual Road Training", and even across the field of flight training. In terms of intelligent driving training, the company is currently laid in Beijing, Kunming in Yunnan, Shijiazhuang, Hebei, Jingzhou, Hubei, Zibo, Shandong, and Inner Mongolia.

In terms of flight training, in the 2016 annual report, Oriental Fashion showed the optimism of aviation training. In 2018, Oriental Fashion established Oriental Fashion International Aviation Development Co., Ltd., and then continued to accelerate the layout of aviation training. During the epidemic in 2020, Oriental Fashion issued a non -public offering of A -share stock plans, and it was planned to not exceed 35 specific target non -public offering shares of not more than 151 million shares. The fundraising amount is expected to be 2.118 billion yuan. Among them, 830 million yuan was used for the construction project of the comprehensive configuration center of aviation aircraft and simulator. By 2021, its flight training revenue will reach 77.873 million yuan, accounting for 6.5%, and a year -on -year growth rate of 423.34%, which will gradually become the second largest source of revenue outside driving training.

These early layouts, coupled with the stability of the basic disk, during the response to the epidemic, Oriental fashion can withstand the 0 revenue of 0 revenue in Hubei, Chongqing, and Jinzhong, and even many businesses play a certain role in supporting. For example, flight training, from the semi -annual report, high -quality unit price flight training has become a very potential business. The announcement shows that the company currently has 50 aircraft. At present, the company's order is about 313 million yuan, and the profit of 17.8352 million yuan in the second quarter.

From the perspective of response, Oriental Fashion was greatly impacted in 2020, and the revenue of 848 million yuan once set a new low in nearly 10 years. However, in 2021, Oriental Fashion's revenue quickly returned to 1.199 billion yuan. Although it is still not as good as 2014-2015, it is also the best performance in recent years.

However, it should be seen that Oriental Fashion laid out the "VR+AI" intelligent driving training system and flight training in large span, and there are also situations of dragging on profits. From 2018 to the present, the scale of Oriental fashion has been less than 200 million yuan, and it is not even as good as the level in 2011. From the first half of this year, the profit level is also difficult to improve in 2022.

Whether it is the "VR+AI" intelligent driving training system or flight training, the investment cycle of these businesses is long, and it is difficult to reflect the progress in a short time. It has even dragged down the performance and aroused regulatory attention. After the interim report was released, Oriental Fashion received a letter of inquiries from the Communications. The amount was adjusted from 110 million yuan to 167 million yuan.

The inquiry letter requires that Oriental Fashion combines the existing production equipment of thousands of phantoms to explain whether it has the corresponding supply capacity, explain the specific transaction situation of the company and the thousands of phantoms this year, and explain that the company has a large number of procurement equipment from thousands of phantoms in the short term. The reasons and necessity, and whether it has business rationality.

Driving test training, as a track that depends on practical exercises and offline teaching, operations will inevitably be impacted by the epidemic. Therefore, whether it is Eastern fashion or small and medium -sized institutions to China International, it has been impacted and declining profits. However, in response to measures, different types of institutions have their own considerations, and try to match the choice that meets the actual situation. In the short term, as long as the epidemic is repeated, this pain is difficult to completely avoid.

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