Deep in the mire of loss, Danes education turns to programming for children

category:Finance
 Deep in the mire of loss, Danes education turns to programming for children


This is the third year in a row that the old training company has lost money.

The report card is clearly not going to satisfy investors.

As of June 19, U.S. stocks closed down 0.58% to close at $1.72 per share, setting a new record for the lowest share price since 2020. The total market value fell below the billion yuan mark, only $93.2162 million.

According to the annual report, Dane technology is vigorously reducing its main adult education business and shifting its focus to the childrens programming business Tong Cheng Tong Mei. In 2019, the companys income in adult education business was 1.527 billion yuan, a year-on-year decrease of 20.3%.

On June 22, according to the written materials sent to the reporter of time weekly by the relevant director of Dane technology, Tongcheng Tongmei developed rapidly in 2019, and its cash income exceeded RMB 100 million for several months, including over RMB 140 million in September.

On June 21, sun Guohua, vice president of Vocational Education Branch of College Graduates Employment Association, told the times weekly that the programming employment market has become a red sea at present, and the fast-growing talents trained by Dane technology and the programming talents with scientific background are at a disadvantage in the competition, the growth slowdown of adult trading business has also become the irreversible pain of Dane technology.

At present, Danet technology provides 14 it courses, 5 non it courses and 2 k12 education courses. Among them, the revenue of K12 business is 524 million yuan, a year-on-year increase of 208.6%, accounting for about 25% of the total revenue.

Over 600 million revenue in five years

With the adult IT training market entering a period of steady growth, the competition is more and more fierce. Since the first loss recorded in 2017, Dane technology has entered a long period of transformation pain.

At present, when enterprises recruit programming talents, they value not only practical ability, but also other qualities and abilities such as the first degree, academic background and development potential of the candidates. Sun Guohua pointed out that changes in the employment market environment will naturally have a negative effect on it training institutions enrollment.

According to the financial data, by the end of 2019, Dane technology has opened 130 adult training centers, 50 fewer than the beginning of the year. The total number of trainees decreased from 117000 to 109000, down 6.6% year on year. According to the data, the number of single center enrollment reached 840, an increase of 29% year on year.

Although the number of students has decreased, the tuition fees have increased.

Zhang Xue told the times weekly that the main reason for raising the charging standard is to realize the demand for profit as soon as possible, but it seems that the effect of turning around losses is not good. The premise of price increase is better service and better course quality.

She said that in the case of a red sea of industry, the advantages of Danet technology are not significant, and raising tuition fees will lead some students to choose other institutions.

In addition to the continuous loss of the main business, the serious defects of the companys internal control may be the biggest problem faced by Danet technology at present.

In its investigation, the independent audit committee found that Danet technology was suspected of deliberately overstating its income. The status and loan data recorded in the companys system are not accurate.

According to the data, in 2019, 52.3% of the adult students of Danet technology received tuition loan support from cooperative financial institutions.

Fraud has also led to frequent changes in the senior management of Dane technology.

Since March, Dane technology announced that Yang Yuduo, the former CFO, had resigned and Liu Yongji, the former CFO of perfect world (002624. SZ), had been appointed as the new CFO; in April, the board of directors of Dane technology appointed sun Yongji, the former independent director of the company, as the CEO, and Han Shaoyun, the founder and former CEO, continued to serve as the chairman.

Fali K12 track

In the past 2017 and 2018, childrens programming has gradually become one of the hottest segments in the K12 track.

According to the data of 2017-2023 Research Report on analysis, forecast and development trend of Chinese childrens programming market, the current domestic childrens programming market scale is 10.5 billion yuan, and when the penetration rate increases by 1%, the overall market scale is expected to expand by 10 billion yuan.

Sun Guohua pointed out to the times weekly that the childrens programming industry has become the main battleground for many education and training institutions and venture capital institutions, and the programming training market will also enter the huge market of 200 million people in primary and secondary schools.

I expect that the bonus period of childrens programming industry as a sunrise industry should not be less than 10 years. Sun Guohua said.

According to the data, in 2019, there were 217 technology childrens programming business centers in Dane, 69 learning centers were added, and the number of students enrolled reached 99000, an increase of 117.5% compared with 2018.

In terms of income, the average tuition fee of Danet technology in K12 business is between 8000-19200 yuan, and the class hours are 80-120 hours; the income of online courses and offline courses account for 6.7% and 93.3% respectively. Among them, K12 computing programming course revenue accounts for 12.8% of the total revenue.

According to the financial report, in 2019, the operating cost of Danet technology was 1.17 billion yuan, an increase of 27.8% year on year. In response, Daney explained that the rapid expansion of K12 business led to the expansion of teachers, teaching assistants and consultants.

Behind this is the fact that the overall customer acquisition cost of childrens programming industry remains high.

At present, the main consumer groups of children programming are concentrated in cities such as Beijing, Shanghai, Guangzhou and Shenzhen, which means that institutions have to pay more customer acquisition costs. Zhang Xue told time weekly that the market for childrens programming has just opened up, and that a considerable part of the energy of enterprises is to change the concept of parents. At present, the whole market is still in a very early stage, but the growth rate is very fast, and many companies have begun to emerge. Zhang Xue said. In addition, childrens programming market also faces the problem that evaluation standards are complex and difficult to unify. At present, there is no unified national standard system. Its hard to quantify the teaching effect of each institutions own teaching. Zhang Xue told time weekly. In its annual report, Danet said its k12 education curriculum had only been developed in recent years. Our business and prospects must be assessed on the basis of the risks and uncertainties the company is facing in the current stage of development. Source: responsible editor of times weekly: Wang Xiaowu_ NF

At present, the main consumer groups of children programming are concentrated in cities such as Beijing, Shanghai, Guangzhou and Shenzhen, which means that institutions have to pay more customer acquisition costs. Zhang Xue told time weekly that the market for childrens programming has just opened up, and that a considerable part of the energy of enterprises is to change the concept of parents.

At present, the whole market is still in a very early stage, but the growth rate is very fast, and many companies have begun to emerge. Zhang Xue said.

At present, there is no unified national standard system. Its hard to quantify the teaching effect of each institutions own teaching. Zhang Xue told time weekly.

In its annual report, Danet said its k12 education curriculum had only been developed in recent years. Our business and prospects must be assessed on the basis of the risks and uncertainties the company is facing in the current stage of development.