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.
On June 20, Zhang Xue (pseudonym), an investor in education, told the times weekly that vocational education and quality education seem to have similar operation logic, but they are actually two tracks. Its unclear whether Darnay education can transfer the advantages of adult education business to childrens programming business.
Over 600 million revenue in five years
With the halo of the first stock of adult IT training, Dane education once enjoyed a great reputation for obtaining investment from IDG capital, Goldman Sachs and other financial institutions, and became the first Chinese equity company to land on NASDAQ in 2014.
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.
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.
According to the financial report, Danet technology has raised the charging standard for some courses, making the tuition fees for each course of adult training between 19800 and 26800 yuan. Among them, the average increase of full-time courses is 2000-3000 yuan, and that of part-time courses is 1000-2000 yuan.
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 April this year, after a year long investigation, the independent audit committee of the board of directors finally released the 2014-2018 performance report after the re audit.
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.
In the adult training market, it is common for educational institutions to cooperate with financial institutions to encourage students to pay tuition in the form of installment loans, which is also the main reason for many training institutions to explode.
According to the data, in 2019, 52.3% of the adult students of Danet technology received tuition loan support from cooperative financial institutions.
According to the results released by the independent audit committee, the actual revenue of the company in 2014-2018 fiscal years was 712 million yuan, 1.1 billion yuan, 1.52 billion yuan, 1.753 billion yuan and 2.085 billion yuan respectively; before the re audit, the revenue of these five fiscal years was 837 million yuan, 1.178 billion yuan, 1.58 billion yuan, 1.97 billion yuan and 2.239 billion yuan respectively, with a cumulative virtual increase of 636 million yuan.
Fraud has also led to frequent changes in the senior management of Dane technology.
Fali K12 track
In the face of domestic and foreign difficulties, Danet technology has turned its attention to the high-speed development of K12 quality education 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 from blackboard insight, in January to February 2020, among the 36 financing events in the education industry, 11 were steam (Interdisciplinary) education financing events, with the amount and quantity leading the whole track, of which 6 were programming education.
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.
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.
The cost of scale expansion is the rapid growth of operating costs and expenses.
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.
At the same time, the operating expenses of Danet technology reached 1.998 billion yuan, an increase of 12.2% year on year. Among them, advertising expenses increased from 340 million yuan in 2018 to 420 million yuan, because the network of learning centers has been expanded and the expenditure on search engines has been increased.
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 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.