On December 4, K12 intelligent education platform together education technology (hereinafter referred to as “together education”) was listed on NASDAQ with the securities code of “YQ”, and the Underwriters were Morgan Stanley, Goldman Sachs and Bank of America Securities.
public information shows that an education was founded in 2011, is an intelligent education company providing Internet plus solutions for basic education. It provides comprehensive intelligence learning space for students, parents and teachers through products, technology, content, implementation of the combination of the school’s outside and outside campus and online and offline communication. The main products include homework together with online school education platform. , online family education platform and public welfare social education platform. < / P > < p > according to the company’s prospectus, in 2018, 2019 and the first three quarters of 2020, the company’s revenue was 310 million yuan, 406 million yuan and 808 million yuan respectively, its net loss was 656 million yuan, 964 million yuan and 975 million yuan respectively, and its accumulated loss reached 2.595 billion yuan.
China covid-19 education market share rose from 4% in 2019 to 70% in 2020, according to the Ping An Securities Research Institute, due to the impact of the new crown epidemic in 2020. The share of China’s K12 online education market was soaring. Among them, the leading companies in China’s K12 online education industry are who to learn from, New Oriental online and Netease (Youdao). By the third quarter of 2020, the revenue of Netease Youdao was RMB 2.06 billion, with a year-on-year increase of 123%; the loss during the period was RMB 1.305 billion, with a year-on-year increase of 227%; by the first three quarters of 2020, the revenue of Netease Youdao was RMB 4.914 billion, with a year-on-year increase of 316%; the loss during the period was RMB 766 million, with a year-on-year increase of 1528%. < / P > < p > K12 online education industry companies mostly lost money, mainly due to joining the industry marketing war, which is an important reason for its high cost. < / P > < p > according to the company’s prospectus, in 2018 and 2019, the marketing expenses of joint education were RMB 303 million and RMB 584 million respectively, accounting for 97.7% and 144% of the revenue; in the first three quarters of 2020, it was RMB 851 million, with a year-on-year growth of 92.39%, exceeding the revenue of the same period by RMB 808 million, accounting for 105% of the revenue. < / P > < p > comparison shows that in the first three quarters of 2020, New Oriental online, who to learn from and Netease Youdao, the leading companies in K12 online education industry, accounted for a higher proportion of marketing expenses, but the proportion of marketing expenses of one education exceeded that of other companies, ranking first. < / P > < p > in response, Luo Zhanhong, a former analyst of Savills, an international consulting firm, disclosed to investor.com that “the industry barrier of K12 online education is not classroom content or software technology, but marketing. In fact, in the industry, the lower the customer acquisition cost, the more obvious the competitive advantage. However, the K12 online education industry is highly competitive, with large homogeneity and small differentiation. There are many “long tail enterprises”, which is not a sunrise industry. ” < / P > < p > the R & D expenses of joint education mainly include: salary and welfare of technical and content developers of in school and after school business, as well as other expenses related to R & D activities. < / P > < p > according to the company’s prospectus, the R & D cost of one education in 2018 was RMB 398 million, and that in 2019 was more than RMB 491 million, a year-on-year increase of 23.24%, even higher than the net income of that year. In 2020, R & D expenditure will increase by 16.54% to 423 million yuan, accounting for 52%. < / P > < p > it is worth noting that since the establishment of Tongyu education, it has provided in school business, online lesson preparation, assignment and other products for teachers, students and parents, but these products are completely free of charge. < p > < p > according to its prospectus, it has provided teaching, learning and evaluation applications to more than 900000 teachers, 54.3 million students and 45.2 million parents across the country, and currently serves 70000 schools across the country, covering one third of public primary and secondary schools across the country. < / P > < p > according to the company, the specific number of students and parents that the after school business (i.e. the main source of income business) serves is not given by the company, but only the fifth in the industry. According to the company’s prospectus, in school business is divided into four sections, while after school business is only two modules. This shows that most of the company’s R & D investment may fall on the free product – in school business. < / P > < p > in this regard, Luo Zhanhong said that providing free services for in school business is actually a marketing means to achieve the role of brand promotion and drainage, which is part of the operation. Therefore, most of the R & D expenses can be regarded as marketing expenses. < / P > < p > according to the public information, most of K12 online education institutions’ profitable businesses are big classes and double teachers big classes, but this is also the business of almost every company in the industry, and the product homogenization is more serious. < / P > < p > in this regard, education industry analyst he Wenpu disclosed to investor.com that K12 online education large class is different from adult online vocational education, because students’ self-control is not as high as adults, so the effect will be worse. Many children’s qualifications are uneven, and it is difficult to teach students in accordance with their aptitude. “For example, when students make mistakes, it is difficult for teachers in large online classes to find and correct them in time.” < / P > < p > secondly, he believes that K12 online education is more difficult to hierarchical teaching and understand the real situation of students. “Online testing is more difficult to supervise students’ attendance and testing. Online testing is difficult to find out whether students play games and wander in class, whether they turn books and copy answers by mobile phone in the process of testing. In addition, it is also difficult to play a positive role in cultivating students’ good learning habits and concentration.” < / P > < p > he Wenpu believes that students lack discrimination, and some teachers may be particularly popular with students, probably because they can tell jokes rather than lectures very well. “In this regard, parents generally choose to recognize platforms and brands, but many online education platforms spend a lot of money on marketing and advertising crazily, and brands are basically smashed by advertisements, and these teachers are not sure If you can impart good knowledge, it may be uneven. ” < / P > < p > however, he Wenpu also said that K12 online education large class is relatively more beneficial than harmful for children of ordinary families. Many children from families with slightly poor economic conditions can receive online education guidance even if they spend hundreds of yuan. “In any case, it’s better than nothing, but the homogeneity of large class is too serious, although this year’s epidemic is a wave for K12 online education Good, but there is vicious competition in the industry. In fact, for the company, it may not be very profitable. ” In addition, Zhang Tianxing, founder of buqingyun education group, also expressed his views on K12 online education to investor.com. He said that China’s family environment and society have not yet formed a common habit and atmosphere of online classes. This standardized education mode has not been individualized, and it is difficult to bring good influence to students in terms of etiquette, personal quality and behavior. It is likely that it is just to cultivate “examination machines”. 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