Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, indicating financial challenges ahead [1] Financial Performance - The company achieved an operating revenue of 1.155 billion yuan in the first half of 2025, representing a year-on-year decrease of 20.21% [1] - The net profit attributable to shareholders was 61.7843 million yuan, down 46.69% compared to the previous year [1] Dividend Policy - The company announced that it will not distribute cash dividends, issue bonus shares, or increase capital through reserves [1]

Core Insights - In the first half of 2025, the company reported a revenue of 1.155 billion and a net profit of 61.7843 million, highlighting significant growth in its AI employment services segment [1] - The company successfully transitioned its "Zhonggong AI Employment" strategic sub-brand from concept to product delivery, launching the industry's first AI employment learning machine and high-end employment service products [1] - The AI-enabled employment service market for college students is expanding, with the company aiming to capture emerging market share through its AI employment products, especially with the upcoming recruitment season [1] Financial Performance - The company achieved a revenue of 1.155 billion and a net profit of 61.7843 million in the first half of 2025 [1] - The overall sales scale of the AI employment services segment exceeded 50 million [1] Strategic Initiatives - The company is focusing on integrating AI technology into course development, personalized teaching, intelligent Q&A, and employment services, with a 8.36% increase in R&D investment in Q2 compared to Q1 [2] - Plans for the second half of the year include intensifying AI technology research and development, optimizing AI employment-related products, and increasing market penetration of "AI + Employment" products [2]

证券代码：002607 证券简称：中公教育 公告编号：2025-058 中公教育科技股份有限公司 关于持股 5%以上股东股份被司法处置的公告 股东王振东保证向本公司提供的信息内容真实、准确、完整，没有虚假记载、误 导性陈述或重大遗漏。 本公司及董事会全体成员保证公告内容与信息披露义务人提供的信息一致。 2、本次司法处置的原因 2023 年 8 月，烟台华秦投资中心(有限合伙)与王振东等签订借款合同，王振东分 别于 2023 年 8 月 7 日、2023 年 8 月 23 日将其名下公司股份 56,500,000 股质押给烟台 华秦投资中心（有限合伙），详见公司对外披露的《关于股东部分股份质押的公告》 （公告编号：2023-068）和《关于股东部分质押股份延期、提前购回及质押的公告》 （公告编号：2023-073）。由于借款期限届满未能按期还款，债权人向山东省烟台市 芝罘区人民法院申请司法再冻结上述质押股份，详见公司于 2025 年 4 月 4 日对外披露 的《关于股东部分股份被司法再冻结的公告》（公告编号：2025-032）。山东省烟台 市芝罘区人民法院要求华泰证券协助对王振东部分股份进行司法处置，造成王振东 ...

中公教育科技股份有限公司 2025 年半年度财务报告 证券代码：002607 证券简称：中公教育 二〇二五年八月 中公教育科技股份有限公司 2025 年半年度财务报告 财务报告 一、审计报告 半年度报告是否经过审计 □是 否 公司半年度财务报告未经审计。 二、财务报表 财务附注中报表的单位为：元 1、合并资产负债表 编制单位：中公教育科技股份有限公司 2025 年 06 月 30 日 单位：元 | 项目 | 期末余额 | 期初余额 | | --- | --- | --- | | 流动资产： | | | | 货币资金 | 176,631,230.95 | 293,035,297.50 | | 结算备付金 | | | | 拆出资金 | | | | 交易性金融资产 | 1,061,600.00 | 2,611,600.00 | | 衍生金融资产 | | | | 应收票据 | | | | 应收账款 | 19,914,851.99 | 27,545,598.72 | | 应收款项融资 | | | | 预付款项 | 666,350.00 | 391,468.00 | | 应收保费 | | | | 应收分保账款 | | | ...

| | 四川中公未来科技有限公司 | 上市公司之子公司 | 其他应收款 | 0.30 | | | 0.30 | 代垫款 | 经营性往来 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 北京中公致远科技有限公司 | 上市公司之子公司 | 其他应收款 | 7,804.70 | 11,373.72 | 16,202.80 | 2,975.62 | 代垫款 | 经营性往来 | | | 广西中公致远科技有限公司 | 上市公司之子公司 | 其他应收款 | | 50.00 | | 50.00 | 代垫款 | 经营性往来 | | | 贵州中公未来科技有限公司 | 上市公司之子公司 | 其他应收款 | | 33.26 | 5.00 | 28.26 | 代垫款 | 经营性往来 | | | 合肥中公未来教育科技有限公司 | 上市公司之子公司 | 其他应收款 | | 19.60 | 19.60 | | 代垫款 | 经营性往来 | | | 湖南中公振新教育科技有限公司 | 上市公司之子公司 | 其他应收款 | | 1.59 | | 1.59 | 代 ...

中公教育公告，2025年上半年净利润为6178.43万元，同比下降46.69%。 ...

Section I Important Notice, Table of Contents and Definitions [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, disclaiming future plans as substantive commitments and noting no dividend distribution or capital increase from reserves - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming individual and joint legal responsibility for no false records, misleading statements, or major omissions[3](index=3&type=chunk) - Forward-looking statements regarding future plans in this report do not constitute a substantive commitment to investors, who should be aware of investment risks[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Catalog of Documents for Reference](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) Documents for reference include financial statements signed and sealed by the legal representative, chief financial officer, and head of accounting, the full semi-annual report signed by the legal representative, and all publicly disclosed company documents and announcements from the reporting period, available at the company's board secretary office - Documents for reference include financial statements signed and sealed by the company's legal representative, chief financial officer, and head of accounting (accounting manager)[9](index=9&type=chunk) - Documents for reference include the full 2025 semi-annual report signed by the company's legal representative, Li Yongxin[9](index=9&type=chunk) - Location of documents for reference: Company Board Secretary's Office[9](index=9&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms used in the report, including general terms like "listed company" and "CSRC," as well as specific transaction explanations such as "this major asset restructuring," clarifying roles and transaction content - "Listed Company, the Company, Offcn Education" refers to Offcn Education Technology Co, Ltd[11](index=11&type=chunk) - "This Major Asset Restructuring, This Transaction, This Restructuring" refers to Asia Summer Auto's asset swap with 11 transaction parties including Li Yongxin, issuance of shares to purchase the difference, and Asia Summer Industrial's transfer of shares and cash consideration[11](index=11&type=chunk) Section II Company Profile and Key Financial Indicators [I. Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) The company's stock abbreviation is "Offcn Education," stock code 002607, listed on the Shenzhen Stock Exchange, with its full Chinese name being Offcn Education Technology Co, Ltd, and legal representative Li Yongxin - Stock Abbreviation: **Offcn Education**, Stock Code: **002607**, Stock Exchange: **Shenzhen Stock Exchange**[13](index=13&type=chunk) - Company's Chinese Name: Offcn Education Technology Co, Ltd, Company's Legal Representative: Li Yongxin[13](index=13&type=chunk) [II. Contact Person and Contact Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's Board Secretary is Gong Yafang, and Securities Affairs Representative is Xu Qin, both located at Building B, Hanhua Century Plaza, No 23 Xueqing Road, Haidian District, Beijing, with phone number 010-83433677 and email ir@offcn.com - Board Secretary: Gong Yafang, Securities Affairs Representative: Xu Qin[14](index=14&type=chunk) - Contact Address: Building B, Hanhua Century Plaza, No 23 Xueqing Road, Haidian District, Beijing, Phone: 010-83433677, Email: ir@offcn.com[14](index=14&type=chunk) [III. Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's registered address, office address, postal code, website, email, information disclosure website and media, or semi-annual report availability location, with specific details available in the 2024 annual report - The company's registered address, office address, postal code, website, and email remained unchanged during the reporting period, with specific details available in the 2024 annual report[15](index=15&type=chunk) - The company's information disclosure website and media for the semi-annual report, as well as the report's availability location, remained unchanged during the reporting period, with specific details available in the 2024 annual report[16](index=16&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, the company's operating revenue decreased by **20.21%** year-on-year, net profit attributable to shareholders decreased by **46.69%**, and net cash flow from operating activities decreased by **39.37%**, while total assets decreased by **5.84%** and net assets attributable to shareholders increased by **8.53%** Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,155,239,043.07 | 1,447,877,261.95 | -20.21% | | Net Profit Attributable to Shareholders | 61,784,302.94 | 115,902,988.47 | -46.69% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Gains and Losses | 61,881,209.13 | 106,167,045.42 | -41.71% | | Net Cash Flow from Operating Activities | 272,743,463.70 | 449,858,783.52 | -39.37% | | Basic Earnings Per Share (CNY/share) | 0.01 | 0.02 | -50.00% | | Diluted Earnings Per Share (CNY/share) | 0.01 | 0.02 | -50.00% | | Weighted Average Return on Net Assets | 8.18% | 18.54% | -10.36% | | **End of Current Reporting Period** | **End of Prior Year** | **Change from End of Prior Year** | | | Total Assets (CNY) | 6,130,194,965.59 | 6,510,125,085.01 | -5.84% | | Net Assets Attributable to Shareholders (CNY) | 786,181,113.15 | 724,396,810.21 | 8.53% | [V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards, overseas accounting standards, and Chinese Accounting Standards - The company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[19](index=19&type=chunk) - The company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[20](index=20&type=chunk) [VI. Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) During the reporting period, the company's total non-recurring gains and losses amounted to **-CNY 96,906.19**, primarily comprising gains/losses from disposal of non-current assets, government subsidies, investment income from entrusted investments, and other non-operating income/expenses, net of income tax effects Non-Recurring Gains and Losses and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains/losses from disposal of non-current assets (including the write-off portion of asset impairment provisions) | 77,468.03 | | Government subsidies recognized in current profit or loss (excluding those closely related to the company's normal operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss) | 734,403.09 | | Gains/losses from entrusted investments or asset management | 13,213.60 | | Other non-operating income and expenses apart from the above items | -801,996.18 | | Less: Income tax impact | 119,994.73 | | Total | -96,906.19 | - The company has no other specific situations that meet the definition of non-recurring gains and losses[23](index=23&type=chunk) Section III Management Discussion and Analysis [I. Main Business Activities of the Company During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) Offcn Education, a leading employment and re-employment service provider, focuses on public service recruitment exam training, academic upgrading, and vocational qualification training, expanding into industry-education integration, rural revitalization talent training, and human resource services, aiming to build an AI-powered education and employment service platform [ (I) Main Business, Products, and Operating Model of the Company](index=9&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E3%80%81%E4%BA%A7%E5%93%81%E5%8F%8A%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F%E7%AD%89) Offcn Education provides personalized and professional employment services for knowledge-based job seekers, covering over 100 categories including public service recruitment exam training, academic upgrading, and vocational qualification training, with a strategic goal to build an AI-powered education and employment service platform - Offcn Education is a leading employment and re-employment service provider in China, specializing in personalized and professional employment services for knowledge-based job seekers such as university students, graduates, and various vocational professionals[25](index=25&type=chunk) - The company's main business spans public service recruitment exam training, academic upgrading, and vocational qualification and ability training, offering over **100 categories** of comprehensive employment training services[25](index=25&type=chunk) - During the reporting period, the company, with "employment and re-employment service provider" as its strategic goal, focused on national strategies and social needs, vigorously building an AI education and employment service platform to empower traditional education services with AI technology[25](index=25&type=chunk) [ (II) Overview of the Company's Industry and Market Environment](index=9&type=section&id=%EF%BC%88%E4%B8%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E5%B8%82%E5%9C%BA%E7%8E%AF%E5%A2%83%E6%A6%82%E8%BF%B0) The employment service market is influenced by deepening "stable employment" policies, significant potential in the university graduate employment market, industry consolidation, new media reshaping user learning behavior, and AI technology becoming a new driver for the education sector - The "stable employment" policy continues to deepen, with the release of "Opinions on Implementing an Employment-First Strategy to Promote High-Quality and Full Employment" by the CPC Central Committee and the State Council in September 2024, ushering in a new round of policy dividends for vocational education and employment training services[28](index=28&type=chunk)[29](index=29&type=chunk) - The scale of China's university graduates is expected to reach **12.22 million** in 2025, highlighting structural contradictions in the youth employment market, with consumers preferring comprehensive employment service products covering multiple types of training and guidance, primarily seeking "high-quality employment"[30](index=30&type=chunk) - AI and other artificial intelligence technologies are continuously impacting the traditional barriers of the education industry, with AI application gradually becoming a new driver for the education sector, as leading institutions leverage data accumulation and R&D capabilities to develop course products and create intelligent learning scenarios and platforms using AI technology[35](index=35&type=chunk) [ (III) Key Performance Drivers](index=13&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E4%B8%BB%E8%A6%81%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0) In the first half of 2025, the company's strategic adjustments, product optimization, and personnel incentives led to an **18.42%** year-on-year increase in full-price course trainees (reaching **450,000**), two consecutive quarters of quarter-on-quarter revenue growth, a significant increase in gross margin, and over **CNY 50 million** in AI employment service sales, establishing a recovery trend - The company's training product market competitiveness significantly improved, driving the number of full-price course trainees to **450,000**, an **18.42%** increase compared to **380,000** in the same period last year[45](index=45&type=chunk) - The company's second-quarter operating revenue of **CNY 580.2177 million**, increased quarter-on-quarter from the first quarter's **CNY 575.0214 million**, marking two consecutive quarters of quarter-on-quarter operating revenue growth since 2024[46](index=46&type=chunk) 2025 First Half Key Performance Drivers | Indicator | Data | Year-on-Year/Quarter-on-Quarter Change | | :--- | :--- | :--- | | Full-price Course Trainees | 450,000 | Year-on-year increase of 18.42% | | Operating Revenue (First Half) | CNY 1,155.239 million | Year-on-year decrease of 20.21% | | Operating Revenue (Q2) | CNY 580.2177 million | Quarter-on-quarter increase from Q1 | | New Teaching Service Centers | 45 | - | | Gross Margin (First Half) | 59.61% | Year-on-year increase of nearly 3 percentage points | | Total Operating Costs | - | Year-on-year decrease of 18.51% | | Administrative Expenses | - | Year-on-year decrease of 33.56% | | AI Employment Service Segment Sales | Over CNY 50 million | - | [II. Core Competitiveness Analysis](index=15&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness stems from its R&D-driven approach, extensive channel network, digital operations, technological innovation, Party building leadership, and corporate values, supported by a nearly **500-person** R&D team, **695** direct branches, over **20 years** of digital experience, continuous AI integration, and a "be kind" core value - The company has a dedicated R&D team of nearly **500 people**, forming an experienced R&D and R&D management expert echelon through frontline R&D refinement and rapid market creation iteration[53](index=53&type=chunk) - As of June 30, 2025, the company has **695** direct branches nationwide, deeply covering over **300 prefecture-level cities** and more than **1,500 colleges and universities**, ensuring standardized teaching quality and services[54](index=54&type=chunk) - The company continuously promotes the application of AI, digital human, and other technologies in employment service training, launching an **AI Employment Learning Machine** in 2025, which relies on big data technology to deeply analyze student learning data and needs, achieving a "assessment-planning-learning-job search-employment" closed loop[56](index=56&type=chunk) - The company has incorporated Party building into its articles of association, integrating Party leadership into all aspects of corporate governance, fully transforming political, organizational, and mass work advantages into the enterprise's market competitive advantages and innovation advantages[57](index=57&type=chunk)[58](index=58&type=chunk) [III. Main Business Analysis](index=16&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's operating revenue decreased by **20.21%** to **CNY 1.155 billion** due to lower-than-expected collections, but operating costs, administrative expenses, and R&D investment decreased by **23.42%**, **33.56%**, and **37.93%** respectively, demonstrating significant cost reduction and efficiency improvement, with education and training remaining the primary revenue source at **97.49%**, and civil servant recruitment training contributing **50.85%** Key Financial Data Year-on-Year Change | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,155,239,043.07 | 1,447,877,261.95 | -20.21% | Primarily due to lower-than-expected business collections in the current period | | Operating Costs | 466,622,251.37 | 609,312,253.41 | -23.42% | Primarily due to the company's comprehensive adjustment of product structure, cost reduction and efficiency improvement, accelerated integration of online and offline operations, resulting in good control over class opening costs, personnel optimization, and corresponding reduction in labor expenses | | Selling Expenses | 294,089,784.54 | 278,671,306.31 | 5.53% | No significant change in the current period | | Administrative Expenses | 143,988,971.18 | 216,710,181.98 | -33.56% | Primarily due to the company's cost reduction and efficiency improvement, optimization of management personnel, and corresponding reduction in labor expenses | | Financial Expenses | 78,506,395.64 | 73,076,079.91 | 7.43% | No significant change in the current period | | Income Tax Expense | 35,019,596.41 | 42,350,178.41 | -17.31% | Primarily due to reduced profitability of major holding and participating subsidiaries | | R&D Investment | 69,220,197.78 | 111,522,825.73 | -37.93% | Primarily due to the company's cost reduction and efficiency improvement, optimization of R&D personnel, and corresponding reduction in labor expenses | | Net Cash Flow from Operating Activities | 272,743,463.70 | 449,858,783.52 | -39.37% | Primarily due to reduced net collections from training business compared to the same period last year | | Net Cash Flow from Investing Activities | -11,281,164.33 | 6,675,883.09 | -268.98% | Primarily due to payment for engineering projects in the current period | | Net Cash Flow from Financing Activities | -374,607,328.98 | -469,117,260.55 | 20.15% | Primarily due to repayment of shareholder loans in the same period last year | | Net Increase in Cash and Cash Equivalents | -113,145,029.61 | -12,582,593.94 | -799.22% | Primarily due to the combined impact of reduced net collections from training business and payment for engineering projects in the current period | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Amount (CNY) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | **By Industry** | Education and Training | 1,126,195,400.28 | 97.49% | -20.93% | | | Other | 29,043,642.79 | 2.51% | 23.11% | | **By Product** | Civil Servant Recruitment Training | 587,421,789.87 | 50.85% | -19.41% | | | Public Institution Recruitment Training | 153,894,278.21 | 13.32% | -19.25% | | | Teacher Recruitment and Qualification Training | 87,364,850.95 | 7.56% | -37.32% | | | Comprehensive Training | 297,514,481.25 | 25.75% | -18.58% | | | Other | 29,043,642.79 | 2.51% | 23.11% | | **By Region** | Northeast Region | 108,097,460.46 | 9.36% | -29.82% | | | North China Region | 228,322,659.64 | 19.76% | -16.11% | | | East China Region | 237,167,494.51 | 20.53% | -15.57% | | | Central China Region | 147,831,577.20 | 12.80% | -34.91% | | | South China Region | 89,566,936.35 | 7.75% | -28.77% | | | Southwest Region | 150,399,940.38 | 13.02% | -18.97% | | | Northwest Region | 164,809,331.74 | 14.27% | -7.77% | | | Other | 29,043,642.79 | 2.51% | 23.11% | [IV. Non-Main Business Analysis](index=17&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's non-main business activities included investment income of **-CNY 1.238 million** (accounting for **-1.28%** of total profit), non-operating income of **CNY 18,801.37**, and non-operating expenses of **CNY 820,797.55**, all with uncertain sustainability Non-Main Business Profit and Loss | Item | Amount (CNY) | Proportion of Total Profit | Reason for Formation and Sustainability | | :--- | :--- | :--- | :--- | | Investment Income | -1,238,077.29 | -1.28% | Uncertain | | Non-Operating Income | 18,801.37 | 0.02% | Uncertain | | Non-Operating Expenses | 820,797.55 | 0.85% | Uncertain | [V. Analysis of Assets and Liabilities](index=18&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) As of the end of the reporting period, the company's total assets were **CNY 6.130 billion**, a **5.84%** decrease from the end of the previous year, while net assets attributable to shareholders were **CNY 786.181 million**, an **8.53%** increase, with significant asset restrictions due to judicial freezes, pledges, and mortgages Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (CNY) | Proportion of Total Assets | Amount at End of Prior Year (CNY) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 176,631,230.95 | 2.88% | 293,035,297.50 | 4.50% | -1.62% | | Investment Properties | 328,950,324.38 | 5.37% | 209,521,858.51 | 3.22% | 2.15% | | Contract Liabilities | 1,932,415,967.29 | 31.52% | 1,873,428,892.42 | 28.78% | 2.74% | | Total Assets | 6,130,194,965.59 | - | 6,510,125,085.01 | - | -5.84% | | Net Assets Attributable to Shareholders | 786,181,113.15 | - | 724,396,810.21 | - | 8.53% | - At the end of the period, the company had significant asset restrictions, including cash and bank balances (**CNY 27.661 million**, judicial freeze, etc), long-term equity investments (**CNY 45.791 million**, pledged), fixed assets and investment properties (**CNY 1.605 billion**, mortgaged), construction in progress (**CNY 163.341 million**, mortgaged), intangible assets (**CNY 545.043 million**, mortgaged), and other non-current assets (**CNY 1.618 billion**, mortgaged)[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) [VI. Investment Status Analysis](index=20&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company's total investment amounted to **CNY 56.914 million**, a **232.24%** increase year-on-year, with no significant equity investments, non-equity investments, securities investments, derivative investments, or use of raised funds Investment Amount During Reporting Period | Indicator | Amount (CNY) | | :--- | :--- | | Investment Amount in Current Reporting Period | 56,913,627.76 | | Investment Amount in Prior Year Period | 17,130,128.09 | | Change Percentage | 232.24% | - The company had no securities investments during the reporting period[72](index=72&type=chunk) - The company had no derivative investments during the reporting period[73](index=73&type=chunk) - The company had no use of raised funds during the reporting period[74](index=74&type=chunk) [VII. Major Asset and Equity Sales](index=20&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) During the reporting period, the company did not sell major assets but disposed of its equity in Pingshan Offcn Education Technology Co, Ltd for **CNY 48.2977 million**, contributing **-CNY 4.7023 million** to the listed company's net profit, representing **-7.61%** of total net profit - The company did not sell major assets during the reporting period[75](index=75&type=chunk) Major Equity Sales | Equity Sold | Transaction Price (CNY million) | Net Profit Contribution to Listed Company (CNY million) | Proportion of Net Profit to Total Net Profit | | :--- | :--- | :--- | :--- | | Equity in Pingshan Offcn Education Technology Co, Ltd | 48.2977 | -4.7023 | -7.61% | [VIII. Analysis of Major Holding and Participating Companies](index=22&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%90%A5%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Beijing Offcn Education Technology Co, Ltd, a wholly-owned subsidiary, achieved revenue of **CNY 1.0787 billion** in January-June 2025, a **25.26%** year-on-year decrease, with total operating costs of **CNY 875.36 million**, a **28.11%** year-on-year decrease, and net profit of **CNY 165.406 million**, a **16.59%** year-on-year decrease, primarily due to optimized product structure and cost control Key Financial Data of Beijing Offcn Education Technology Co, Ltd | Indicator | Amount Jan-Jun 2025 (CNY) | Amount Jan-Jun 2024 (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,078,734,882.90 | 1,443,734,882.90 (estimated) | -25.26% | | Total Operating Costs | 875,359,700.00 (estimated) | 1,217,359,700.00 (estimated) | -28.11% | | Net Profit | 165,405,898.94 | 198,305,898.94 (estimated) | -16.59% | - The main reasons for profitability are: during the reporting period, the company optimized its product structure and market strategy, improved operational efficiency, and effectively controlled labor costs, class opening costs, rent, and property expenses, leading to a significant reduction in total operating costs compared to the same period last year and achieving profitability[81](index=81&type=chunk) [IX. Structured Entities Controlled by the Company](index=23&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[82](index=82&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=23&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces industry policy, market competition, operational management (e.g., refund difficulties), and major litigation/arbitration risks, addressed by policy monitoring, new product expansion, AI empowerment, product structure optimization, refined management, improved employment mechanisms, and active resolution of refund issues and lawsuits - Industry policy risk: The vocational education industry's prosperity is highly correlated with the policy environment, and future policy changes may affect business operations and performance[82](index=82&type=chunk) - Market risk: Capital influx leads to intense market competition, with cyclical fluctuations in the training industry, shrinking demand, and reduced willingness of students to participate in training[83](index=83&type=chunk) - Operational management risk: Market uncertainties pose challenges to the stability of the core management team, and refund difficulties affect market reputation and customer trust[84](index=84&type=chunk) - Countermeasures: The company's branches have established teams to track and study policies, deeply analyze various policies issued, and make early arrangements and adjustments to avoid relevant policy risks and ensure legal and compliant operations[82](index=82&type=chunk) - Countermeasures: Leveraging AI empowerment, the company continues to invest in content operations, teaching assistance, and digital humans to improve teaching efficiency and the intelligence of learning tools, making technology and education integration an important driver for innovation in the company's training business[83](index=83&type=chunk) - Countermeasures: The company attaches great importance to the refund issues, addressing the current situation with a sincere attitude of never shirking responsibility, and striving to take various practical methods to continuously resolve student refund issues properly[86](index=86&type=chunk) [XI. Implementation of Market Value Management System and Valuation Enhancement Plan](index=24&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has established the "Offcn Education Technology Co, Ltd Market Value Management System" to regulate market value management and protect investors' legitimate rights, but no valuation enhancement plan was disclosed during the reporting period - The company has formulated the "Offcn Education Technology Co, Ltd Market Value Management System"[88](index=88&type=chunk) - The company did not disclose a valuation enhancement plan[88](index=88&type=chunk) [XII. Implementation of "Quality and Return Dual Improvement" Action Plan](index=24&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%22%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%22%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan[89](index=89&type=chunk) Section IV Corporate Governance, Environment and Society [I. Changes in Directors, Supervisors, and Senior Management of the Company](index=25&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company experienced multiple changes in its directors, supervisors, and senior management, including the appointment of Li Yongxin as General Manager, election of He Youli, Sun Wei, and Jin Hua as directors, election of Jiang Ronghai, Zhang Hongjun, and Liu Weiwei as supervisors, appointment of Wang Yue as CFO, and Gong Yafang as Board Secretary, while Wang Zhendong, Shi Lei, Zhang Xuanming, Yu Hongwei, He Di, Luo Xue, and Wang Xinhan departed due to term expiration Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Li Yongxin | General Manager | Appointment | 2025-02-14 | Re-election | | He Youli | Director | Elected | 2025-02-14 | Re-election | | Sun Wei | Director | Elected | 2025-02-14 | Re-election | | Jin Hua | Director | Elected | 2025-02-14 | Re-election | | Wang Zhendong | Director, General Manager | Term expired | 2025-02-14 | Re-election | | Shi Lei | Director | Term expired | 2025-02-14 | Re-election | | Zhang Xuanming | Independent Director | Term expired | 2025-02-14 | Re-election | | Jiang Ronghai | Independent Director | Elected | 2025-02-14 | Re-election | | Yu Hongwei | Chairman of Supervisory Board | Term expired | 2025-02-14 | Re-election | | He Di | Supervisor | Term expired | 2025-02-14 | Re-election | | Zhang Hongjun | Chairman of Supervisory Board | Elected | 2025-02-14 | Re-election | | Liu Weiwei | Supervisor | Elected | 2025-02-14 | Re-election | | Wang Yue | Chief Financial Officer | Appointment | 2025-02-14 | Re-election | | Luo Xue | Chief Financial Officer | Term expired | 2025-02-14 | Re-election | | Wang Xinhan | Board Secretary | Term expired | 2025-02-14 | Re-election | | Gong Yafang | Board Secretary | Appointment | 2025-02-14 | Re-election | [II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period](index=25&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[92](index=92&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=25&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[93](index=93&type=chunk) [IV. Environmental Information Disclosure](index=25&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law, thus no environmental information disclosure is required - Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental information by law: No[94](index=94&type=chunk) [V. Social Responsibility Performance](index=25&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company has not yet carried out targeted poverty alleviation or other social responsibility work for the semi-annual period - The company has not yet carried out targeted poverty alleviation or other work for the semi-annual period[94](index=94&type=chunk) Section V Important Matters [I. Commitments Fulfilled and Overdue Unfulfilled Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties During and as of the End of the Reporting Period](index=26&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The company's actual controller, shareholders, and related parties' commitments made during asset restructuring, including maintaining independence, avoiding horizontal competition, and regulating related-party transactions, were all being fulfilled normally during the reporting period, with no overdue unfulfilled commitments - Li Yongxin, Lu Zhongfang, Wang Zhendong, and Offcn Partnership's commitment letter regarding maintaining the independence of the listed company, committed on April 27, 2018, for a long-term period, is being fulfilled normally[96](index=96&type=chunk) - Li Yongxin and Lu Zhongfang's commitment letter regarding avoiding horizontal competition, committed on September 20, 2018, for a long-term period, is being fulfilled normally[97](index=97&type=chunk) - Wang Zhendong and Offcn Partnership's commitment letter regarding avoiding horizontal competition, committed on April 27, 2018, for a long-term period, is being fulfilled normally[99](index=99&type=chunk) - Li Yongxin and Lu Zhongfang's commitment letter regarding reducing and regulating related-party transactions, committed on July 27, 2018, for a long-term period, is being fulfilled normally[99](index=99&type=chunk) - Wang Zhendong, Aerospace Industry, and Offcn Partnership's commitment letter regarding reducing and regulating related-party transactions, committed on April 27, 2018, for a long-term period, is being fulfilled normally[100](index=100&type=chunk) [II. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties](index=29&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) During the reporting period, there were no non-operating funds occupied by controlling shareholders and other related parties of the listed company - During the reporting period, there were no non-operating funds occupied by controlling shareholders and other related parties of the listed company[101](index=101&type=chunk) [III. Irregular External Guarantees](index=29&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[102](index=102&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=29&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[103](index=103&type=chunk) [V. Explanation by the Board of Directors and Supervisory Board on the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period](index=29&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no non-standard audit report during the reporting period, thus no explanation from the board of directors or supervisory board is required - The company had no non-standard audit report during the reporting period[104](index=104&type=chunk) [VI. Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=29&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no non-standard audit report for the previous year, thus no explanation from the board of directors is required - The company had no non-standard audit report during the reporting period[104](index=104&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=29&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[104](index=104&type=chunk) [VIII. Litigation Matters](index=30&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company is involved in several significant litigation and arbitration cases, including an arbitration dispute with Shanghai Pudong Development Bank Beijing Branch for **CNY 593.988 million** (under review) and a financial loan contract dispute with China CITIC Bank Wuhu Branch for **CNY 56.2217 million** (final appeal settlement in progress), in addition to securities misrepresentation liability disputes from 2022 that are currently awaiting judgment Major Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (CNY million) | Progress | Disclosure Date | | :--- | :--- | :--- | :--- | | Arbitration case between Beijing Offcn Education Technology Co, Ltd and Shanghai Pudong Development Bank Co, Ltd Beijing Branch regarding payment agreement dispute | 593.988 | Under review | January 25, 2025 | | Financial loan contract dispute case between Offcn Education Technology Co, Ltd and China CITIC Bank Co, Ltd Wuhu Branch | 56.2217 | Final appeal settlement in progress | July 16, 2025 | - On April 27, 2022, the company and relevant parties received the "Administrative Penalty Decision," involving the company in securities misrepresentation liability dispute cases. As of now, the relevant cases have not yet been heard[106](index=106&type=chunk) [IX. Penalties and Rectification Status](index=30&type=section&id=%E4%B9%9D%E3%80%81%E7%BD%9A%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[107](index=107&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=30&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company had no issues regarding the integrity status of the company, its controlling shareholder, or actual controller during the reporting period - The company had no issues regarding the integrity status of the company, its controlling shareholder, or actual controller during the reporting period[108](index=108&type=chunk) [XI. Major Related-Party Transactions](index=30&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company had no related-party transactions related to daily operations, asset/equity acquisitions or sales, or joint external investments, but did have non-operating related-party debt, with Lu Zhongfang providing a shareholder loan of **CNY 139.4879 million** at period-end, enhancing the company's liquidity - The company had no related-party transactions related to daily operations during the reporting period[108](index=108&type=chunk) - The company had no related-party transactions involving asset or equity acquisitions or sales during the reporting period[109](index=109&type=chunk) - The company had no related-party transactions involving joint external investments during the reporting period[110](index=110&type=chunk) Debts Payable to Related Parties | Related Party | Related Relationship | Reason for Formation | Beginning Balance (CNY million) | Amount Repaid in Current Period (CNY million) | Ending Balance (CNY million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Lu Zhongfang | Person acting in concert with actual controller | Shareholder loan | 350.5394 | 220.3 | 139.4879 | | Impact of related-party debt on the company's operating results and financial position | Enhanced the company's liquidity | | | | | [XII. Major Contracts and Their Performance](index=31&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, the company had no entrustment, contracting, or leasing matters, but had multiple significant guarantees for subsidiaries totaling **CNY 1.252 billion**, entrusted wealth management with an outstanding balance of **CNY 1.0616 million**, and several major contracts for leasing, network promotion, and asset acquisition, all in normal execution - The company had no entrustment situations during the reporting period[115](index=115&type=chunk) - The company had no contracting situations during the reporting period[116](index=116&type=chunk) - The company had no leasing situations during the reporting period[117](index=117&type=chunk) Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (CNY million) | Actual Guarantee Amount (CNY million) | Guarantee Type | Guarantee Start Date | Guarantee End Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Offcn Education Technology Co, Ltd | 300 | 300 | Joint and several liability guarantee | 2024/11/07 | 2028/08/30 | | Hunan Offcn Innovation Education Technology Co, Ltd | 10 | 10 | Joint and several liability guarantee | 2024/01/24 | 2029/01/24 | | Beijing Offcn Education Technology Co, Ltd | 30 | 30 | Joint and several liability guarantee | 2023/11/13 | 2029/11/13 | | Liaoning Offcn Education Academic Culture Exchange Co, Ltd | 130 | 130 | Joint and several liability guarantee | 2024/01/31 | 2030/01/30 | | Liaoning Offcn Education Technology Co, Ltd | 168.5 | 168.5 | Mortgage | 2024/07/24 | 2030/04/27 | | **Total Approved Guarantee Limit for Subsidiaries in Current Reporting Period** | **638.5** | **Total Actual Guarantees for Subsidiaries in Current Reporting Period** | **638.5** | | | | **Total Approved Guarantee Limit for Subsidiaries at End of Reporting Period** | **638.5** | **Total Actual Guarantee Balance for Subsidiaries at End of Reporting Period** | **0** | | | | **Total Company Guarantees (Sum of first three major items)** | **1,252** | **Proportion of Total Actual Guarantees (A4+B4+C4) to Company's Net Assets** | **0.00%** | | | Entrusted Wealth Management | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (CNY million) | Outstanding Balance (CNY million) | | :--- | :--- | :--- | :--- | | Bank wealth management products | Own funds | 7.0456 | 1.0616 | | Total | | 7.0456 | 1.0616 | Other Major Contracts | Name of Counterparty | Contract Subject | Contract Signing Date | Transaction Price (CNY million) | Related-Party Transaction | Execution Status as of End of Reporting Period | | :--- | :--- | :--- | :--- | :--- | :--- | | Shenyang Lijing Mingzhu Hotel Management Co, Ltd | Lease of building located at No 129 Beishuncheng Road, Shenhe District, Shenyang | October 01, 2023 | 54 | Yes | In execution | | Beijing Huicong International Information Co, Ltd | Lease of Huicong Park, Qiliqu South Village, Shahe Town, Changping District, Beijing | January 01, 2023 | 277.4065 | No | In execution | | Beijing Yunrui International Culture Media Co, Ltd | Network promotion services | April 26, 2024 | 70 | No | In execution | | Shaanxi Guancheng Industrial Co, Ltd | Asset acquisition | February 26, 2020 | 383.06 | Yes | In execution | | Beijing Hanhua Century Technology Co, Ltd | Lease of West Building, Hanhua Century Plaza, No 23 Xueqing Road, Haidian District, Beijing | June 18, 2022 | 67.6052 | No | In execution | [XIII. Explanation of Other Significant Matters](index=36&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[126](index=126&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=36&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[127](index=127&type=chunk) Section VI Changes in Shares and Shareholder Information [I. Changes in Share Capital](index=37&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's restricted shares decreased by **55,253,063 shares**, while unrestricted shares increased by **55,253,063 shares**, with the total share capital remaining unchanged at **6,167,399,389 shares**, primarily due to changes in senior management lock-up shares Changes in Share Capital | Item | Number of Shares Before Change | Proportion Before Change | Net Increase/Decrease in Current Change (shares) | Number of Shares After Change | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 1,138,655,074 | 18.46% | -55,253,063 | 1,083,402,011 | 17.57% | | 3. Other Domestic Holdings | 1,138,655,074 | 18.46% | -55,253,063 | 1,083,402,011 | 17.57% | | Domestic Natural Person Holdings | 1,138,655,074 | 18.46% | -55,253,063 | 1,083,402,011 | 17.57% | | II. Unrestricted Shares | 5,028,744,315 | 81.54% | 55,253,063 | 5,083,997,378 | 82.43% | | 1. RMB Ordinary Shares | 5,028,744,315 | 81.54% | 55,253,063 | 5,083,997,378 | 82.43% | | III. Total Shares | 6,167,399,389 | 100.00% | 0 | 6,167,399,389 | 100.00% | - Reason for share changes: Due to changes in senior management lock-up shares during the reporting period[130](index=130&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Released in Current Period | Restricted Shares Increased in Current Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Yongxin | 708,305,424 | 36,346,922 | 0 | 671,958,502 | Senior management lock-up shares change | | Wang Zhendong | 430,349,650 | 18,906,816 | 0 | 411,442,834 | Senior management lock-up shares change | | Jiang Ronghai | 0 | 0 | 675 | 675 | Senior management lock-up shares change | | Total | 1,138,655,074 | 55,253,738 | 675 | 1,083,402,011 | -- | [II. Securities Issuance and Listing](index=38&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[134](index=134&type=chunk) [III. Number of Shareholders and Shareholding Structure](index=38&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **297,359** ordinary shareholders, with Li Yongxin holding **14.38%**, Wang Zhendong **6.67%**, and Hunan Caixin Industrial Fund Management Co, Ltd - Hunan Caixin Changqin No 1 Fund Partnership (Limited Partnership) **4.98%**, while Li Yongxin, Lu Zhongfang, and Beijing Offcn Future Information Consulting Center (Limited Partnership) constitute parties acting in concert, and several major shareholders' shares are pledged or frozen - Total number of ordinary shareholders at the end of the reporting period: **297,359** accounts[135](index=135&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Number of Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Yongxin | Domestic Natural Person | 14.38% | 886,907,232 | 671,958,502 | 214,948,730 | Pledged | 591,277,945 | | | | | | | | Frozen | 343,629,287 | | | | | | | | Marked | 92,889,714 | | Wang Zhendong | Domestic Natural Person | 6.67% | 411,442,834 | 411,442,834 | 0 | Pledged | 318,600,000 | | | | | | | | Frozen | 149,342,584 | | Hunan Caixin Industrial Fund Management Co, Ltd - Hunan Caixin Changqin No 1 Fund Partnership (Limited Partnership) | Other | 4.98% | 307,369,922 | 0 | 307,369,922 | 0 | | | Lu Zhongfang | Domestic Natural Person | 2.38% | 146,651,798 | 0 | 146,651,798 | Pledged | 117,250,000 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 1.36% | 83,986,679 | 0 | 83,986,679 | 0 | | | Beijing Offcn Future Information Consulting Center (Limited Partnership) | Non-State-Owned Legal Person | 1.30% | 80,000,000 | 0 | 80,000,000 | 0 | | | Agricultural Bank of China Co, Ltd - CSI 500 ETF | Other | 1.19% | 73,651,172 | 0 | 73,651,172 | 0 | | | Sun Donghong | Domestic Natural Person | 0.42% | 26,034,980 | 0 | 26,034,980 | 0 | | | Goldman Sachs - Proprietary Capital | Overseas Legal Person | 0.37% | 22,567,449 | 0 | 22,567,449 | 0 | | | Liu Lichang | Domestic Natural Person | 0.35% | 21,580,500 | 0 | 21,580,500 | 0 | | - The company's controlling shareholders and actual controllers, Lu Zhongfang and Li Yongxin, are mother and son. Lu Zhongfang, Li Yongxin, and Beijing Offcn Future Information Consulting Center (Limited Partnership) constitute parties acting in concert[136](index=136&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=41&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) During the reporting period, some of the company's directors and senior management experienced changes in their shareholdings: Li Yongxin reduced his holdings by **57,500,000 shares** to **886,907,232 shares**; Wang Zhendong reduced his holdings by **51,000,000 shares** to **411,442,834 shares**; and Jiang Ronghai increased his holdings by **900 shares** to **900 shares** Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Beginning of Period (shares) | Shares Increased in Current Period (shares) | Shares Decreased in Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Yongxin | Chairman and General Manager | Current | 944,407,232 | 0 | 57,500,000 | 886,907,232 | | Wang Zhendong | Director and General Manager | Resigned | 462,442,834 | 0 | 51,000,000 | 411,442,834 | | Jiang Ronghai | Independent Director | Current | 0 | 900 | 0 | 900 | | Total | -- | -- | 1,406,850,066 | 900 | 108,500,000 | 1,298,350,966 | [V. Changes in Controlling Shareholder or Actual Controller](index=41&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[140](index=140&type=chunk) - The company's actual controller remained unchanged during the reporting period[140](index=140&type=chunk) [VI. Preferred Shares Information](index=41&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[141](index=141&type=chunk) Section VII Bond-Related Information [Bond-Related Information](index=42&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[143](index=143&type=chunk) Section VIII Financial Report [I. Audit Report](index=43&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[145](index=145&type=chunk) [II. Financial Statements](index=43&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the consolidated and parent company financial statements of Offcn Education Technology Co, Ltd for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position at the end of the reporting period and its operating results and cash flows during the period [1. Consolidated Balance Sheet](index=43&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the company's consolidated total assets were **CNY 6.130 billion**, with total current assets of **CNY 446.537 million** and total non-current assets of **CNY 5.684 billion**, while total liabilities were **CNY 5.344 billion**, including total current liabilities of **CNY 4.528 billion** and total non-current liabilities of **CNY 816.250 million**, and total owners' equity attributable to the parent company was **CNY 786.181 million** Consolidated Balance Sheet Key Data (Period-End Balance) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 6,130,194,965.59 | | Total Current Assets | 446,536,654.96 | | Total Non-Current Assets | 5,683,658,310.63 | | Total Liabilities | 5,343,874,526.23 | | Total Current Liabilities | 4,527,624,513.13 | | Total Non-Current Liabilities | 816,250,013.10 | | Total Owners' Equity Attributable to Parent Company | 786,181,113.15 | [2. Parent Company Balance Sheet](index=46&type=section&id=2%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the parent company's total assets were **CNY 22.082 billion**, with total current assets of **CNY 544.784 million** and total non-current assets of **CNY 21.537 billion**, while total liabilities were **CNY 3.211 billion**, including total current liabilities of **CNY 2.887 billion** and total non-current liabilities of **CNY 324.609 million**, and total owners' equity was **CNY 18.870 billion** Parent Company Balance Sheet Key Data (Period-End Balance) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 22,081,705,802.86 | | Total Current Assets | 544,783,753.27 | | Total Non-Current Assets | 21,536,922,049.59 | | Total Liabilities | 3,211,383,655.69 | | Total Current Liabilities | 2,886,775,135.24 | | Total Non-Current Liabilities | 324,608,520.45 | | Total Owners' Equity | 18,870,322,147.17 | [3. Consolidated Income Statement](index=48&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first half of 2025, the company achieved total operating revenue of **CNY 1.155 billion** and total operating costs of **CNY 1.062 billion**, resulting in an operating profit of **CNY 97.606 million** and total profit of **CNY 96.804 million**, with a net profit of **CNY 61.784 million**, of which **CNY 61.784 million** was attributable to parent company shareholders, and basic and diluted earnings per share were both **CNY 0.01** Consolidated Income Statement Key Data (First Half 2025) | Item | Amount (CNY) | | :--- | :--- | | Total Operating Revenue | 1,155,239,043.07 | | Total Operating Costs | 1,061,663,071.29 | | Operating Profit | 97,605,696.35 | | Total Profit | 96,803,700.17 | | Net Profit | 61,784,103.76 | | Net Profit Attributable to Parent Company Shareholders | 61,784,302.94 | | Basic Earnings Per Share | 0.01 | | Diluted Earnings Per Share | 0.01 | [4. Parent Company Income Statement](index=50&type=section&id=4%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first half of 2025, the parent company achieved operating revenue of **CNY 4.156 million** and operating costs of **CNY 3.343 million**, resulting in an operating profit of **-CNY 58.621 million**, total profit of **-CNY 58.621 million**, and a net loss of **-CNY 58.621 million** Parent Company Income Statement Key Data (First Half 2025) | Item | Amount (CNY) | | :--- | :--- | | Operating Revenue | 4,155,884.24 | | Operating Costs | 3,342,611.32 | | Operating Profit | -58,620,962.61 | | Total Profit | -58,620,962.61 | | Net Profit | -58,620,962.61 | [5. Consolidated Cash Flow Statement](index=51&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the first half of 2025, the company's net cash flow from operating activities was **CNY 272.743 million**, net cash flow from investing activities was **-CNY 11.281 million**, and net cash flow from financing activities was **-CNY 374.607 million**, resulting in a net decrease in cash and cash equivalents of **-CNY 113.145 million** Consolidated Cash Flow Statement Key Data (First Half 2025) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 272,743,463.70 | | Net Cash Flow from Investing Activities | -11,281,164.33 | | Net Cash Flow from Financing Activities | -374,607,328.98 | | Net Increase in Cash and Cash Equivalents | -113,145,029.61 | | Cash and Cash Equivalents at End of Period | 148,970,119.05 | [6. Parent Company Cash Flow Statement](index=52&type=section&id=6%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the first half of 2025, the parent company's net cash flow from operating activities was **CNY 119.630 million**, net cash flow from investing activities was **CNY 12.097 million**, and net cash flow from financing activities was **-CNY 265.561 million**, resulting in a net decrease in cash and cash equivalents of **-CNY 133.834 million** Parent Company Cash Flow Statement Key Data (First Half 2025) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 119,630,309.54 | | Net Cash Flow from Investing Activities | 12,097,040.00 | | Net Cash Flow from Financing Activities | -265,560,992.84 | | Net Increase in Cash and Cash Equivalents | -133,833,643.30 | | Cash and Cash Equivalents at End of Period | 1,113,781.77 | [7. Consolidated Statement of Changes in Owners' Equity](index=54&type=section&id=7%E3%80%81%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2025, the company's consolidated total owners' equity was **CNY 786.320 million**, an increase of **CNY 61.784 million** from the beginning of the period, primarily due to the increase in total comprehensive income for the current period Consolidated Statement of Changes in Owners' Equity Key Data (First Half 2025) | Item | Beginning Balance (CNY) | Change in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 724,396,810.21 | 61,784,302.94 | 786,181,113.15 | | Minority Interests | 139,525.39 | -199.18 | 139,326.21 | | Total Owners' Equity | 724,536,335.60 | 61,784,103.76 | 786,320,439.36 | [8. Parent Company Statement of Changes in Owners' Equity](index=56&type=section&id=8%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2025, the parent company's total owners' equity was **CNY 18.870 billion**, a decrease of **CNY 58.621 million** from the beginning of the period, primarily due to negative total comprehensive income for the current period Parent Company Statement of Changes in Owners' Equity Key Data (First Half 2025) | Item | Beginning Balance (CNY) | Change in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 18,928,943,109.78 | -58,620,962.61 | 18,870,322,147.17 | | Retained Earnings | -374,028,349.20 | -58,620,962.61 | -432,649,311.81 | [III. Company Basic Information](index=58&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Offcn Education Technology Co, Ltd (formerly Asia Summer Auto Co, Ltd) was listed on the Shenzhen Stock Exchange in August 2011, and through a major asset restructuring in 2018, its controlling shareholders and actual controllers became Li Yongxin and Lu Zhongfang, with the company primarily engaged in education and training, and its financial statements approved by the board of directors on August 28, 2025 - Offcn Education Technology Co, Ltd (formerly Asia Summer Auto Co, Ltd) was listed on the Shenzhen Stock Exchange in August 2011, stock code 002607[169](index=169&type=chunk) - In 2018, through a major asset restructuring, Asia Summer Auto divested all its assets and liabilities and acquired 100% equity of Beijing Offcn Education Technology Co, Ltd, with the company's controlling shareholders and actual controllers changing to Li Yongxin and Lu Zhongfang[169](index=169&type=chunk)[170](index=170&type=chunk) - The company and its subsidiaries are primarily engaged in education and training, with customers mainly being natural persons[171](index=171&type=chunk) - These financial statements were approved for issuance by the company's board of directors on August 28, 2025[172](index=172&type=chunk) [IV. Basis of Financial Statement Preparation](index=59&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) These financial statements are prepared in accordance with the Accounting Standa

Market Overview - The education sector experienced a decline of 0.46% on August 28, with ST Dongshi leading the drop [1] - The Shanghai Composite Index closed at 3843.6, up 1.14%, while the Shenzhen Component Index closed at 12571.37, up 2.25% [1] Individual Stock Performance - China High-Tech (600730) saw a significant increase of 6.26%, closing at 9.51 with a trading volume of 446,300 shares and a turnover of 414 million yuan [1] - Kede Education (300192) rose by 2.25%, closing at 24.13 with a trading volume of 819,900 shares and a turnover of 192.6 million yuan [1] - ST Dongshi (603377) led the decline with a drop of 5.01%, closing at 3.79 with a trading volume of 344,400 shares and a turnover of 132 million yuan [2] - Xueda Education (000526) fell by 4.36%, closing at 48.97 with a trading volume of 76,300 shares and a turnover of 371 million yuan [2] Capital Flow Analysis - The education sector saw a net outflow of 479 million yuan from institutional investors, while retail investors contributed a net inflow of 350 million yuan [2] - Major stocks like China High-Tech and Xueda Education experienced mixed capital flows, with China High-Tech seeing a net inflow of 17.98 million yuan from institutional investors [3] - ST Dongshi and Kede Education faced significant net outflows from institutional investors, indicating potential concerns among larger investors [3]

Market Overview - The education sector increased by 1.1% on August 26, with ST Dongshi leading the gains [1] - The Shanghai Composite Index closed at 3868.38, down 0.39%, while the Shenzhen Component Index closed at 12473.17, up 0.26% [1] Individual Stock Performance - ST Dongshi (603377) closed at 3.96, up 5.04% with a trading volume of 236,300 shares and a transaction value of approximately 93.59 million yuan [1] - Xueda Education (000526) closed at 53.49, up 3.40% with a trading volume of 44,800 shares and a transaction value of approximately 238 million yuan [1] - Chuangye Education (300688) closed at 36.85, up 2.88% with a trading volume of 221,500 shares and a transaction value of approximately 819 million yuan [1] - Guomai Technology (002093) closed at 13.28, up 2.87% with a trading volume of 831,400 shares and a transaction value of approximately 1.097 billion yuan [1] - Kede Education (300192) closed at 26.32, up 1.58% with a trading volume of 1,385,700 shares and a transaction value of approximately 3.71 billion yuan [1] Capital Flow Analysis - The education sector experienced a net outflow of 531 million yuan from institutional investors, while retail investors saw a net inflow of 417 million yuan [2] - The main capital inflow and outflow for individual stocks showed varied trends, with Guomai Technology receiving a net inflow of approximately 72.95 million yuan from institutional investors [3] - ST Dongshi experienced a net outflow of approximately 8.08 million yuan from institutional investors, despite a net inflow of 4.55 million yuan from speculative funds [3]

Core Viewpoint - The ongoing refund issues at Zhonggong Education highlight significant operational and financial challenges, with a growing number of complaints and lawsuits related to refund disputes, indicating a potential crisis for the company [4][7][21]. Group 1: Refund Issues - A recent case involved a student who was promised a refund of 17,000 yuan but was informed that only 1,000 yuan could be refunded per year, leading to a 17-year wait for full reimbursement [4]. - As of August 21, Zhonggong Education had 115,052 complaints on the Black Cat Complaints platform, significantly higher than competitors Huatu Education and Fenbi, which had 2,798 and 1,626 complaints, respectively [4]. - The company reported 700 new lawsuits and arbitration cases since January 25, 2025, with a total amount involved of 53.8 million yuan, including 575 cases related to refund disputes totaling 11.5 million yuan [7][8]. Group 2: Financial Performance - Zhonggong Education's revenue for Q1 2025 was 575 million yuan, a decrease of 24.69% year-on-year, while net profit dropped by 51.69% to approximately 40 million yuan [30][31]. - The company's cash flow from operating activities fell by 42.45%, indicating severe liquidity issues, with only 372 million yuan in cash by mid-2025, compared to competitors Fenbi and Huatu, which had 902 million yuan and 295 million yuan, respectively [31][32]. Group 3: Business Model and Market Position - Zhonggong Education's business model, particularly the "agreement class" system, allowed students to pay upfront for courses with a refund guarantee if they failed exams, creating a low-cost funding pool for the company [11][12]. - The company expanded rapidly, achieving nationwide coverage with 1,335 direct teaching points by 2019, but this aggressive expansion has now become a liability as it struggles to manage its financial obligations [12][14]. - The shift in the market towards smaller training institutions and the impact of AI on vocational education are posing additional challenges to Zhonggong Education's traditional business model [23][26]. Group 4: Strategic Missteps - The company's strategic focus on expansion and financial investments rather than addressing refund issues has led to a trust crisis among students, resulting in a significant drop in new enrollments [21][22]. - The founder, Li Yongxin, attributed the company's struggles to external factors like the pandemic, but internal strategic errors, such as failing to adapt to market changes, have also played a crucial role [17][18].