Core Viewpoint - The article discusses the transformation of anxiety into income within the education and training industry, particularly focusing on the civil service examination training sector, which has seen a significant increase in applicants but a decline in revenue for leading training institutions [4][5]. Group 1: Industry Dynamics - The number of applicants for civil service examinations has increased by 1.4 times over the past five years, reaching 3.718 million in the latest round of applications [8]. - Despite the surge in applicants, leading training institutions like Zhonggong Education and Fenbi have reported revenue declines of 20.2% and 8.5% respectively in the first half of the year [5][8]. - The training model known as "agreement classes," which allows for refunds if students do not pass, has contributed to a significant increase in refund rates, from 44.14% in 2019 to 68.46% in 2021 for Zhonggong Education [14]. Group 2: Financial Challenges - The financial strain on training institutions is evident, with Zhonggong Education reporting cash reserves of 1.77 billion yuan and pending refunds amounting to 4.82 billion yuan [12][14]. - The business model has shifted from earning "tuition fees" to "result fees," where institutions rely on a small number of successful students to cover the refunds for the majority who do not pass [14][16]. - The investment income for Zhonggong Education has decreased significantly, from 79.27 million yuan in 2021 to 5.78 million yuan in 2024, indicating a decline in profitability [14]. Group 3: Market Competition - The civil service training market is experiencing increased competition from smaller institutions and new entrants leveraging social media platforms, which has intensified the market dynamics [10][11]. - The influx of competitors has led to a decrease in sales efficiency for leading institutions, with Zhonggong Education's sales expense ratio increasing by 6 percentage points to 25.4% [8][10]. Group 4: Strategic Shifts - In response to the challenging environment, Zhonggong Education has begun restructuring, reducing its workforce from 45,000 to 7,888 and cutting down its direct branches from 1,669 to 681 [16]. - The company is exploring new business avenues, including health services and AI employment training, although these initiatives currently contribute less than 3% to overall revenue [16][17]. - The strategic focus has shifted towards becoming an "employment and re-employment service provider," indicating a pivot from traditional training to broader employment services [17].