Group 1 - The number of applicants for the 2026 national civil service exam reached a record high of 3.718 million, with only 38,100 positions available, resulting in an acceptance ratio of approximately 98:1 [1] - Major players in the civil service exam training industry, such as Zhonggong Education, are experiencing significant revenue and profit declines, with Zhonggong's revenue dropping from 6.9 billion to 2.6 billion over four years [3][4] - The training institutions are heavily reliant on a model called "guaranteed pass classes," where students pay upfront and receive a full refund if they do not pass, leading to a paradox of increasing enrollment but decreasing profitability [3][4] Group 2 - The upfront payments from students are recorded as liabilities rather than income, creating a financial strain when refund requests increase [4][5] - Zhonggong Education expanded aggressively using prepayments and introduced a loan program that allowed students to enroll with no upfront cost, which initially boosted enrollment and revenue [5][7] - As the number of applicants increases and exam difficulty rises, refund claims have surged, with Zhonggong's refund liabilities exceeding training fees for the first time in Q3 2021 [7][9] Group 3 - The civil service training industry is facing intensified competition due to policies and the entry of other educational institutions, which has made traditional marketing and profit models less effective [9] - Universities are now providing their own civil service exam resources, further squeezing the market for training institutions [9]