3 6 Ke·2025-12-16 00:20Core Viewpoint - The competitive landscape of the civil service exam training market is intensifying, leading to a strategic partnership between two leading companies, Fenbi and Huatu, aimed at reducing vicious competition and promoting high-quality development in the industry [2][3][4]. Group 1: Market Dynamics - The civil service exam training market has become highly competitive, with a significant number of candidates vying for limited positions, resulting in a booming yet chaotic training market [1]. - The market is characterized by aggressive tactics from training institutions, including low pricing and guarantees of passing, which have led to a lack of quality and increased competition [2]. - The civil service exam training market in China is projected to exceed 100 billion yuan by 2026, with the civil service exam segment alone expected to reach 20 billion yuan [20]. Group 2: Strategic Partnership - On December 12, Fenbi and Huatu announced a strategic cooperation agreement to enhance the competitive environment of the civil service exam training market, improve user experience, and achieve resource complementarity [3][4]. - The partnership will explore collaboration in investment, corporate governance, technology development, and channel cooperation, including potential equity cooperation and joint ventures [4][5]. - Both companies aim to leverage their respective strengths—Huatu's extensive offline presence and Fenbi's online technology and user traffic—to improve operational efficiency and raise industry entry barriers [5][7]. Group 3: Industry Challenges - Despite the strategic partnership, the market reaction was lukewarm, with both companies' stock prices declining following the announcement [8]. - Fenbi has faced challenges in recent years, with revenue declining due to intensified competition and the rise of low-cost individual teachers on social media platforms [17][22]. - Huatu, while experiencing growth, is also dealing with legal issues related to its IPO process, which could impact its control and financial stability [17]. Group 4: Competitive Landscape - The civil service exam training market is fragmented, with many players leading to low concentration; the top five companies only hold a combined market share of 22.1% [22]. - Huatu has seen a revenue increase of 15.65% year-on-year, reaching 24.64 billion yuan, surpassing the struggling market leader, Zhonggong Education, which has seen a significant revenue decline [22]. - The partnership between Fenbi and Huatu may signal the beginning of a new round of industry reshuffling, as both companies seek to consolidate their positions in a challenging market [20][22].