OFFCN EDU(SZ:002607) 盐财经·2025-12-02 10:07Core Viewpoint - The article discusses the challenges faced by the public examination training industry, particularly focusing on the experiences of a student named Li Yi with a leading training institution, Zhong Gong Education, highlighting issues related to refund difficulties and the decline of the company's financial health [3][6][17]. Group 1: Company Overview - Zhong Gong Education is a leading provider of training services for national and provincial civil service examinations, having established itself as a benchmark in the vocational education sector since its inception in 1999 [5][20]. - The company experienced rapid revenue growth, peaking at nearly 27 billion yuan, and was once valued at over 260 billion yuan after going public in 2019 [22][23]. - The business model of "money-back guarantee" for training programs was initially seen as innovative, significantly reducing the risk for students and attracting a large number of enrollments [20][21]. Group 2: Financial Challenges - Since 2021, Zhong Gong Education has faced a continuous decline in revenue, with year-on-year decreases of 38.3%, 30.19%, 36.03%, and 14.89% from 2021 to 2024 [26]. - The company reported a total of 700 new litigation and arbitration cases from January 25 to July 15, 2025, with a total amount involved reaching 53.8 million yuan, which is 7.43% of its audited net assets for 2024 [18][19]. - The refund rate has surged, exceeding 65% since 2021, indicating that for every three payments received for guarantee programs, two had to be refunded [27]. Group 3: Operational Issues - Complaints regarding refund difficulties have become a prominent issue for Zhong Gong Education, with over 100,000 complaints related to refunds on consumer complaint platforms [17][18]. - The company has implemented a new refund policy, where students who enrolled in guarantee programs from 2022 to 2023 can only receive partial refunds, significantly extending the waiting period for refunds [33]. - The operational chaos during training sessions, including disorganized logistics and inadequate facilities, has led to dissatisfaction among students [8][10]. Group 4: Market Dynamics - The public examination training market is becoming increasingly competitive, with new entrants and alternative training methods emerging, leading to a decline in Zhong Gong Education's market share [40][41]. - The company is attempting to pivot towards AI-driven educational tools, but initial market responses have been lukewarm, and the financial impact of these new initiatives remains uncertain [42][43]. - The overall trend in the public examination sector indicates a growing number of candidates, with 2.83 million participants expected for the 2026 civil service examination, yet this has not translated into improved financial performance for Zhong Gong Education [30][33].