NaaS(US:NAAS)2019-11-18 15:40Company Overview - Rise Education is a leading national provider of premium, after-school English language training for children aged 3-18[8] - The company strategically focuses on the fastest-growing age group (3-6 year olds)[23] - As of September 30, 2019, Rise had a total of 451 learning centers, including 87 self-owned learning centers and 364 franchised learning centers[58] Market and Business Highlights - China's Junior ELT market is experiencing rapid growth, driven by rising wealth, the two-child policy, and the increasing importance of English[18] - The penetration rate of Junior ELT in China is low at 35.2% compared to Japan (60.5%) and Korea (20.4%)[18] - Rise's teaching philosophy focuses on both English language and subject matter knowledge[23] - The company develops its curricula with technology in mind, utilizing both HMH-based and self-developed courseware[27, 28] - Rise boasts a strong brand with high student retention (70%)[63] and a significant portion of new enrollments through word-of-mouth (~30%)[63] Financial Performance - Rise has experienced rapid top-line growth, with revenues increasing from RMB 406.7 million in 2014 to RMB 1,271.9 million[72] - The company has highly visible future revenues, with deferred revenue and customer advances reaching RMB 831.6 million as of September 30, 2019[73] - A learning center can achieve adjusted EBITDA margin like 45 – 50%[52] Growth Strategies - The company plans to open new self-owned centers in existing and new cities and increase efforts in acquiring franchised centers[80] - Rise aims to increase marketing expenses to further increase penetration rate in the junior ELT market[80]