Kaiyuan EDU(SZ:300338) Zheng Quan Zhi Xing·2025-06-06 14:12Core Viewpoint - The company, Kaiyuan Education Technology Group, has responded to the Shenzhen Stock Exchange's inquiry regarding its annual report, highlighting significant changes in revenue across its business segments, particularly in educational training and intermediary services. Group 1: Educational Intermediary Business - The educational intermediary business generated revenue of 0.17 billion yuan, a year-on-year increase of 6.99%, while costs rose by 43.15% to 0.1 billion yuan [1][6] - The increase in revenue is attributed to the self-study business, despite a decline in average transaction amounts and student numbers compared to the previous year [5][6] - The company faces potential refund risks due to its revenue recognition method, which considers historical refund rates when accounting for income [5][11] Group 2: Educational Training Business - The educational training business reported revenue of 1.17 billion yuan, a significant decrease of 52.85% year-on-year, primarily due to the completion of prior year contracts and a decline in student numbers [1][9] - The average price per student and the number of students enrolled in training courses have also decreased, contributing to the revenue drop [8][9] - Refund policies for both online and offline courses are in place, with specific conditions under which refunds can be requested [10][11] Group 3: Franchise Business - The number of franchise campuses and their revenue contributions have declined, attributed to financial constraints affecting promotional activities and operational management [13] - The company has seen a reduction in the number of franchise campuses, impacting overall revenue from this segment [13][14] - The revenue recognition policy for franchise income is based on net collections from campuses, which have also decreased [12][13] Group 4: Book Sales Business - The book sales business has a low gross margin, influenced by procurement costs and sales strategies [16] - The company engages in both retail and wholesale book sales, with revenue recognized upon customer confirmation of receipt [15][16] - The sales model includes a mix of purchased and self-published educational materials, with a focus on maintaining control over inventory and sales processes [15][16]