KINGSUN SHARE(SZ:002638)2022-12-06 09:01Group 1: Company Overview and Investor Relations - Dongguan Qunshang Optoelectronics Co., Ltd. held an investor relations activity on May 13, 2016, at the company headquarters, focusing on communication with investors and ensuring compliance with information disclosure regulations [1][2]. - The meeting was attended by key company executives, including the actual controller, chairman, and general manager [2]. Group 2: Business Transition and Strategy - The company transitioned from its original LED business to the education sector, driven by the belief in the future growth potential of the education industry [2][3]. - The acquisition of Longwen Education is aimed at establishing a robust educational platform and supporting its growth in the K12 sector [3]. Group 3: Longwen Education's Competitive Edge - Longwen Education's core offering is one-on-one training, which is challenging to manage due to the need for a large number of teachers and the difficulty in standardizing teaching methods [3][4]. - The introduction of a mistake analysis system aims to enhance teaching quality by streamlining the learning process and focusing on student-centered education [4]. Group 4: Profitability and Investment Focus - The current profit margins for one-on-one training are low due to inconsistent teaching standards; however, standardization and process optimization could improve profitability [5]. - The company is not considering investments in public schools, focusing instead on private and international schools in economically developed regions [5]. Group 5: Teacher Recruitment and Retention - Teacher recruitment comes from local public and private schools, as well as internally trained staff, with retention strategies including competitive salaries and a positive corporate culture [5][6]. Group 6: Industry Trends and Future Outlook - The company believes that the current examination system in China will remain in place in the short term, as it plays a crucial role in talent selection [6]. - The funds raised from financing will be used for hardware upgrades and developing an efficient online education system [6][7]. Group 7: Operational Challenges and Management - The decline in the number of Longwen Education's outlets post-2013 was attributed to over-expansion and poor site selection, leading to losses in certain areas [7]. - Typically, a new teaching outlet can recover about 30% of its investment in the first year and achieve full cost recovery by the second year [7][8].