Core Viewpoint - The company reported a revenue decline of 7.7% year-on-year for 2024, amounting to 2.7898 billion yuan, while net profit increased by 27% to 239.6 million yuan, indicating a shift in focus towards cost control and new business ventures in health products [1][2][6]. Revenue Performance - Revenue for 2024 was 2.7898 billion yuan, down from 3.0213 billion yuan in 2023, a decrease of over 200 million yuan [1][6]. - The decline in revenue was primarily due to a 30% drop in paid participants for large class training courses, from 1.2 million to 900,000 [2][6]. - The revenue from large class training courses fell by 23.69% to 508.2 million yuan, while small class training courses saw a slight increase from 1.665 billion yuan to 1.6873 billion yuan [6]. Profitability and Cost Management - Despite revenue decline, net profit rose to 239.6 million yuan, reflecting a 27% increase [2][6]. - The company reduced employee welfare expenses by approximately 289 million yuan, totaling around 1.368 billion yuan, and cut administrative expenses by 12.7% to 411.4 million yuan [9][10]. - The total number of employees decreased to 7,177, with nearly 200 fewer instructors [9][10]. Strategic Shifts - The company is diversifying its business by entering the health product market, as indicated by the recent addition of pre-packaged food and health food sales qualifications for its subsidiary, Beijing Fenbi Lantian Technology Co., Ltd [3][5]. - The CEO expressed intentions to expand services beyond public examination training to a broader employment service market [3]. Market Challenges - The decline in paid participants is attributed to intensified competition in the examination training sector and the rise of individual teachers on social media platforms offering lower prices [6]. - Changes in examination policies and overlapping exam schedules have also negatively impacted book sales, which dropped from 506.8 million yuan to 449 million yuan, a decline of 11.4% [7]. Complaints and Refunds - The company has faced numerous complaints, with refund liabilities reported at 275 million yuan, 227.1 million yuan, and 173.5 million yuan from 2022 to 2024 [15][16]. - Complaints include issues related to pricing and service quality, although the company claims its complaint resolution rate is high compared to industry averages [14].
学员跑掉三成，粉笔改卖保健品，转型还是求生