Well, Not Coming From The Online Education Of Increasing Revenue.

After Rui Xing coffee, another "Star" company was caught in a fraud.

Beijing time April 8th, good future education (TAL.US) issued a notice that in the routine internal audit process found some "employee misconduct", the company suspected employees involved with external suppliers collusion, forging contracts and other documents to exaggerate sales revenue.

Good future indicates that some employees have exaggerated the sales data of Light Class. In the 2020 fiscal year ending February 29, 2020, Light Class sales accounted for 3% to 4% of the total revenue of the 2020 fiscal year.

Affected by this news, the company's stock price fell more than 20% after the market, the largest decline of over 28%. In the evening of April 8th, as of press release, good future share price fell 9.44%, to 50.55 U.S. dollars / share.

Good future stakeholders in an interview with the twenty-first Century economic news reporter said that this behavior violated the company's commercial behavior and internal control policy. After finding out the situation, a good future has been reported to the local police, the employee has been arrested by the police.

In the same online education platform, another online education platform is not immune to anyone. In its recent earnings report, its net profit surged 10 times, but it was still short of market doubt and its share price plummeted.

What has happened to online education? Why are they becoming short selling targets? In the eyes of the industry, this is essentially related to the industry's high cost of acquiring customers and the mode of calculating revenue.

Inflated income of nearly 100 million

A good future was founded in 2003. The earliest business is learning and thinking. In recent years, it has mainly attacked online education and launched online large class business. In 2010, a good future was listed on the NYSE and became the first domestic and primary educational institution in the US.

Along the way, the market value of the good future is also rising as the online education market expands and the future turns for the better. The official said, "in fact, we can not publicize the news. This is entirely spontaneous disclosure." Although the business involved is small in total revenue, the absolute amount is nearly one hundred million (US dollars), and we need to be accountable to investors. "

Good future stresses that the company has been committed to maintaining high standards of corporate governance, observing the rules of the securities and Exchange Commission and the New York stock exchange, making transparent and timely disclosure and zero tolerance for employee offenses.

January 21st, good future disclosure 2020 fiscal year Q3 earnings report: good future third quarter revenue of $862 million 400 thousand, compared with the same period last year's 586 million US dollars, an increase of 47.2%. In the 9 months ended November 30, 2019, good future net income reached US $2 billion 501 million 800 thousand, net profit of US $28 million 200 thousand, a net profit of US $123 million 800 thousand over the same period last year, down 77.2% from the same period last year.

It is worth noting that a good future in June 2018 was muddy water sniper profits. The muddy waters of the short agency pointed out that the good future will be fraudulent transactions from 2016 to 2018, exaggerating business income and net profit. The good future will refute the allegations of muddy water, which contain a lot of mistakes, unconfirmed speculation and malicious interpretation of the incident. But this incident ended in the end. And another company who met in February was also short. Grizzly, a short selling agency, issued a more than 50 page short report. It thought that there were many problems such as the existence of financial fraud, the number of students who brush up the number of students, the selling of stocks by old shareholders, and the sudden departure of CFO before the listing.

The double stack effect of the short selling report and the lucky thunder financial data exploded. Although the first extremely bright financial report has been released since April 3rd, the share price is still down 15.52%.

Who learns the financial report shows that in the 2019 fiscal year, the net income of those who studied was 2 billion 114 million 900 thousand yuan, an increase of 432.3% over the same period last year, and who learned to realize the net profit of non US general accounting standards of 286 million 900 thousand yuan, which was 25 million 570 thousand yuan last year, up 10 times over the same period last year. In this regard, who has learned, has said that for this subjective and logical report, "do not need to be evaluated."

In April 6th, who responded to the letter issued by investors who issued a letter to investors, said that the wording of the audit opinion was different from that of the new East and the future of the education unit, because it was less than a year after learning to go public, and enjoyed the exemption from the Sarbanes act.

Industry competition chaos

Online education has always been an investment outlet favored by capital. China Internet Network Information Center data show that as of the first half of 2019, the scale of online education users in China reached 232 million, an increase of 31 million 220 thousand compared with the previous year, accounting for 27.20% of the total Internet users, and the annual online education user scale is expected to reach 259 million.

Meanwhile, the scale of online education investment and financing in China has also increased rapidly in the past 2014-2018 years. Especially in 2018, the number of investment reached 18, and the investment scale reached 1 billion 250 million yuan. In 2019, the number of online education investment in China decreased significantly, but the scale of investment has expanded. As of November 2019, the number of online education investment in China was 9, with an investment scale of 1 billion 807 million yuan.

The rapid growth of online education has stimulated another round of capital entering this field. Internet giants BAT and NetEase have already begun to lay out online education, whether from internal incubation or external investment. However, from the whole online education market environment, there are giants in every subdivision, but there is no real oligarch and market share is dispersed.

In an interview with the economic news reporters in twenty-first Century, an education industry venture capitalist believes that online education pays attention to renewals, and the acquisition of new users is at a loss. It takes 35 years of learning cycle to test the platform and it is easy to hit the ceiling. At present, it seems that the largest New Oriental and academic thinking have experienced many hardships in the early years, and the core index is the user's life cycle. A lot of vertical platforms cost a lot of money. Whether they are looking for the right crowd, search rankings, telephone sales, they need a lot of input. Only when word of mouth and repeat purchase rate are raised can the marketing cost be reduced.

In this process, there is tremendous uncertainty and opacity. "The bottleneck of future lies in the standardization of content and service. Learning is to earn teachers' service price difference, and the back end content is standardized." He believes that education is not a quick response to the effectiveness of the industry, put in two or three years before we can see the results. For enterprises, we need to keep restraint and really do the product well, not just do the data. The behavior of relying on data financing is not worth promoting.

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