Core Viewpoint - Beijing Haixue Education Technology Co., Ltd. (referred to as "Haixue") has submitted its listing application to the Hong Kong Stock Exchange, but the company has faced significant financial losses and ongoing issues related to customer complaints and refund difficulties [1][7]. Financial Performance - Haixue reported losses of RMB 1.86 billion, RMB 1.75 billion, RMB 906.9 million, and RMB 1.58 billion for the years 2022 to 2024 and the first half of 2025, with the loss in the first half of 2025 exceeding both the same period last year and the total for the previous year [1][2]. - The company's revenue for the same periods was RMB 4.00 billion, RMB 4.72 billion, RMB 5.11 billion, and RMB 2.32 billion, showing a decline of 5.5% in the first half of 2025 compared to the previous year [2][5]. Business Model and Revenue Sources - Haixue primarily provides online vocational training services, with a significant portion of its revenue derived from construction-related vocational qualification courses, which accounted for 68.2%, 61.5%, 59.3%, and 59.8% of total revenue from 2022 to the first half of 2025 [4][5]. - The company has a high gross profit margin, with rates of 78.6%, 81.1%, 81.6%, and 85.8% for the same periods, but high marketing expenses have led to net losses [4][5]. Customer Complaints and Refund Issues - Haixue has been criticized for misleading advertising, inducing students to take loans for courses, and difficulties in obtaining refunds, with over 8,400 complaints filed on the Black Cat Complaints platform as of November 6, 2025 [1][7]. - The company's contract liabilities reached RMB 301 million by the first half of 2025, with a rising refund rate of 15.9%, indicating increasing customer dissatisfaction [12][7]. Employee Structure and Marketing Expenses - As of the first half of 2025, Haixue employed 1,258 full-time staff, with 80% (1,006 employees) dedicated to sales and marketing, reflecting a heavy reliance on marketing to drive revenue [4][5]. - Marketing expenses for the years 2022 to 2025 were RMB 2.85 billion, RMB 3.15 billion, RMB 3.30 billion, and RMB 1.47 billion, with corresponding sales expense ratios of 71.3%, 66.8%, 64.7%, and 63.4% [4].

Core Viewpoint - The company, HiLearn, is pursuing an IPO on the Hong Kong Stock Exchange despite facing multiple challenges, including continuous losses, a concentrated business structure, rising refund rates, and frequent user complaints. The integration of AI technology in online vocational training is seen as a potential breakthrough for the company and the industry [1]. Business Structure - HiLearn's revenue is heavily reliant on construction-related vocational qualification exams, accounting for 68.2%, 61.5%, 59.3%, and 59.8% of total revenue from 2022 to the first half of 2025 [3][6]. - The company serves approximately 4.3 million paying users and over 130 enterprises and institutions, with its product matrix including "HiLearn," "Jingjing," and "Shupeitong" [2]. Financial Performance - The company's revenue for 2022, 2023, 2024, and the first half of 2025 was approximately 400 million, 472 million, 511 million, and 232 million RMB, respectively, with gross profits of 315 million, 383 million, 416 million, and 199 million RMB [9]. - Despite a gross margin of around 78.6% to 85.8%, the company has reported significant losses, totaling approximately 610 million RMB over the same period [9]. User Complaints and Refund Rates - The refund rates for HiLearn's courses have been increasing, reaching 9.1%, 9.9%, 10.5%, and 15.9% from 2022 to the first half of 2025 [14][17]. - The company has faced numerous complaints regarding refund difficulties and service quality, with 8,414 complaints recorded on a consumer complaint platform [17][18]. AI Integration and Market Outlook - HiLearn plans to invest in AI technology to enhance operational efficiency and reduce customer acquisition costs, with the online vocational certification exam market projected to grow from 279 billion RMB in 2020 to 440 billion RMB by 2029 [19][20]. - The company has established an independent AI innovation team and aims to develop AI tools for educational support and marketing [20].

Group 1: Market Overview - The Hong Kong IPO market remains active in Q3 2025, with total fundraising reaching HKD 182.9 billion, a significant increase of approximately 230% compared to the same period in 2024, and the number of IPOs rising by about 50% to 67 [1] - The focus on vocational education as a key policy-supported sector continues to attract capital, with ongoing reforms in the education system and heightened expectations for vocational education in building a skills-based society and promoting industry-education integration [1] Group 2: Company Profile - HiLearn is the fourth largest online vocational training service provider in China, having served 4.3 million paying students, with a product matrix centered around three brands: "HiLearn," "Jingjin," and "Shupeitong," covering various professional fields [2] - Despite steady revenue growth, HiLearn remains in a loss-making position, with revenues of RMB 400 million, RMB 472 million, and RMB 511 million from 2022 to 2024, and a loss of RMB 1.58 billion in the first half of 2025, indicating significant profitability pressure [2] - The company's gross margin has shown a steady improvement, increasing from 78.6% in 2022 to 85.8% in the first half of 2025, reflecting optimization in course content and operational efficiency [2] Group 3: Product and Service Offerings - HiLearn offers two main product categories: "HiLearn Classroom," which provides recorded and live courses along with AI learning tools, and "Jingjin Classroom," which focuses on efficient exam preparation with customized learning plans and one-on-one teaching [3] - The company heavily relies on individual users, with consumer service revenue accounting for 98.2% in the first half of 2025, while enterprise service revenue from the "Shupeitong" platform remains small at RMB 4.12 million, highlighting the challenge of expanding B2B services [4] Group 4: Financial Performance - The revenue structure shows a high dependency on consumer services, with the breakdown of revenue from "HiLearn Classroom" and "Jingjin Classroom" indicating a need for diversification [5] - The average marketing return on investment reached approximately 8.9 in 2024, positioning the company at a leading level in the industry [5] Group 5: AI Development - HiLearn has made progress in AI applications, establishing an independent AI innovation team in 2025 and completing over 30 AI applications for production processes, focusing on "assisting learning, teaching, and sales" [6] - AI tools have been successfully implemented, with features like note organization and personalized course recommendations, leading to significant user engagement [6] Group 6: Industry Trends and Challenges - The Chinese government has intensified vocational education reforms, shifting focus from expansion to quality improvement, with a significant increase in vocational undergraduate enrollment from 41,400 in 2021 to nearly 500,000 in 2025 [8] - The skills talent gap is projected to reach 30 million in key manufacturing sectors by 2025, indicating strong demand for vocational education [8] - HiLearn ranks fourth in the online vocational training market, with a leading position in construction training but remains heavily reliant on construction-related courses, which account for about 60% of revenue [10]

Core Insights - The Hong Kong IPO market remains active, with total fundraising reaching HKD 182.9 billion in the first three quarters of 2025, a significant increase of approximately 230% compared to the same period in 2024, and the number of IPOs rising by about 50% to 67 [1] - The company, HiLearn Education Technology Co., Ltd. (嗨学网), has submitted its listing application to the Hong Kong Stock Exchange, marking another significant IPO case in the vocational education sector [1] Company Overview - HiLearn is the fourth largest online vocational training service provider in China, having served 4.3 million paid learners [2] - The company operates under three main brands: "HiLearn," "Jingjin," and "Shupeitong," covering various vocational fields such as construction, emergency safety, finance, law, and healthcare [2] - Despite steady revenue growth, the company remains in a loss-making position, with revenues of RMB 400 million, RMB 472 million, and RMB 511 million from 2022 to 2024, and a loss of RMB 1.58 billion in the first half of 2025 [2] Financial Performance - The company's gross margin has shown a steady improvement, increasing from 78.6% in 2022 to 85.8% in the first half of 2025, indicating operational efficiency and content optimization [2] - The revenue structure is heavily reliant on consumer services, with 98.2% of revenue coming from individual users in the first half of 2025 [4] - The company has served over 130 enterprises and institutions but generated only RMB 4.12 million from its enterprise service brand "Shupeitong," indicating a need for growth in the B2B segment [4] Product and Service Offerings - HiLearn offers two main product categories: "HiLearn Classroom" for recorded and live courses, and "Jingjin Classroom" focused on efficient exam preparation with personalized learning plans [3] - The company has made strides in AI applications, launching over 30 AI smart agents to enhance learning and teaching processes, with significant user engagement reported [6] Market Trends and Opportunities - The vocational education sector is experiencing growth due to government policies aimed at improving quality and expanding access, with vocational undergraduate enrollment increasing from 41,400 in 2021 to nearly 500,000 in 2025 [8] - The demand for skilled talent is projected to grow, with a predicted talent gap of 30 million in key manufacturing sectors by 2025 [8] Competitive Landscape - HiLearn ranks fourth in China's online vocational training market and holds the top position in construction vocational training [10] - The company’s revenue structure is still heavily dependent on construction-related qualification courses, which accounted for around 60% of revenue from 2022 to the first half of 2025 [10] - The company faces challenges in diversifying its course offerings and expanding into non-construction fields to ensure sustainable growth [10]

Core Insights - The article discusses the IPO of Beijing Haixue Education Technology Co., Ltd. (referred to as "Haixue"), which is focused on online vocational training and aims to leverage AI technology in its services [1][17]. Company Overview - Haixue offers online training courses related to various professional qualifications in fields such as construction, emergency safety, accounting, law, and healthcare [1][4]. - The company has a product matrix consisting of three main brands: "Haixue," "Jingjin," and "Shupaitong," catering to different segments of the market [4]. Market Potential - The adult education market is divided into two main categories: working professionals and senior citizens, with a significant potential market size of 396 million individuals aged 25 to 44 by 2024 [1]. - The online vocational training market in China is projected to reach RMB 469 billion by 2024, with a compound annual growth rate (CAGR) of 5.1% expected until 2029 [13]. Financial Performance - Haixue's revenue has shown growth, with figures of approximately RMB 400 million in 2022, RMB 472 million in 2023, and projected revenues of RMB 510 million in 2024 [11][12]. - Despite revenue growth, the company has faced net losses, totaling over RMB 600 million in three and a half years, primarily due to investments in sales, marketing, and technology [11][12]. Revenue Breakdown - Over 60% of Haixue's revenue comes from construction-related courses, with a notable increase in revenue from emergency safety courses, rising from 13.3% to 21.6% during the reporting period [7][8]. - The refund rate for courses has been increasing, reaching 15.9% in the first half of 2025, which may impact future revenue [9]. Competitive Landscape - Haixue is the fourth largest online vocational training provider in China, holding a market share of 1.1%, and is the largest in the online construction training sector [16]. - The online vocational training market is competitive and fragmented, with several key players including Gaodun, Global Online School, and Zhongda Online School [13][16]. IPO Details - The IPO aims to raise funds for strategic investments in AI technology, expanding product offerings, and enhancing sales networks [19]. - The management team has extensive experience in investment, technology, and consulting, which may contribute to the company's future growth [18][19].

Core Viewpoint - Beijing HiLearn Education Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, aiming to capitalize on its position as a leading provider of online vocational training services in China [1] Group 1: Company Overview - HiLearn is the fourth largest online vocational training service provider in China by revenue for 2024, and the largest in online construction vocational training [1] - The company offers tailored training services in various fields, including construction, emergency safety, finance, law, and healthcare [1] - As of June 30, 2025, HiLearn has served approximately 4.3 million paying users and over 130 enterprises and institutions [1] Group 2: Financial Performance - The company reported revenues of approximately RMB 400 million, RMB 472.18 million, RMB 511.54 million, and RMB 232.06 million for the years 2022, 2023, 2024, and the first half of 2025, respectively [2][3] - The net losses for the same periods were approximately RMB 186 million, RMB 175 million, RMB 90.69 million, and RMB 158 million, totaling a cumulative net loss of about RMB 610 million [2][3] - Major expenses in sales and marketing were RMB 285 million, RMB 315 million, RMB 330 million, and RMB 147 million, representing 71.3%, 66.8%, 64.7%, and 63.4% of revenue for the respective periods [4] Group 3: Business Strategy and Challenges - The company employs targeted customer acquisition strategies through mainstream e-commerce and social media platforms, converting users through free introductory materials [2] - HiLearn faces challenges in marketing returns as it expands into finance, law, and healthcare sectors, which may yield lower initial returns compared to established sectors like construction [4] - The company has implemented standardized content creation and AI measures to improve efficiency, but there are concerns about rising costs due to instructor turnover and the need for specialized knowledge in new course categories [4]

Group 1 - The company, HiLearn, has submitted an application for listing on the Hong Kong Stock Exchange, with CMB International acting as the sole sponsor [1] - HiLearn is the fourth largest online vocational training service provider in China, leading in the fields of construction and emergency safety training [2] - The company's business covers various sectors including construction, emergency safety, finance and economics, law, and healthcare, offering customized training services [2] Group 2 - HiLearn operates three main product lines: "HiLearn," "JinJing," and "ShuPeiTong," serving both individual and corporate clients [2] - The customer acquisition strategy primarily utilizes mainstream e-commerce and social media platforms, providing free trials to convert users into paying customers [2] - The product system includes "HiLearn Classroom" (offering recorded, live, and AI learning tools) and "JinJing Academy" (focusing on efficient exam preparation and one-on-one teaching) [2] Group 3 - As of June 30, 2025, HiLearn has served approximately 4.3 million paying users and provided services to over 130 enterprises and public institutions [2]

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