Main points of investment

Chengdu Foreign language School is the absolute leader of private middle schools in Chengdu, with a rate of more than 20% in Chengdu and 90% in Chengdu, much higher than the level in Chengdu. Chengwai walks 15-16 people from Tsinghua University and Peking University every year, with a total of 2500 (6500 students in senior high school and 6500 in junior high school), and only 5600 people who do not take part in the college entrance examination. Chengwai basically monopolizes the number of places in Sichuan Province, accounting for 95% of Chengdu City and 75% of Sichuan Province, and the rest is basically Chengdu No. 7 Middle School. More than 30 people go to Tsinghua and Peking University every year. Chengwai ranks 39th in the admission ranking of Tsinghua and Peking University, and the top 38 are all public schools.

After the third trial of the people's Promotion Law, the profit of K9 is blocked, but the company's high school part will not be affected (the pricing of primary and junior high school will be controlled by the government, so the company's future expansion plan is mainly high school). When the company is listed in Hong Kong, the profits will enter the listed company in the form of service fee from a company in Tibet. Non-profit taxes are exempted, and the rules for for-profit schools have not been issued all over the country, and neither the tax department nor the Bureau of Education knows how to implement them. Chengdu government agencies also want to wait for the coastal sector rules to follow up.

In the future, the company will carry out nine campus expansion plans that can accommodate 22000 people, of which high school will account for 50%. The 20,000-person campus needs nearly 2 billion yuan of capital, so the company will cooperate with developers in order to expand rapidly and will cooperate with developers. (at present, the school run in cooperation with Vanke, Longhu and in the mood for Love is already under renovation, and the specific cooperation is different in Chengdu. Vanke and other will make more profits, but also a strategic concession to big brands). And the light asset model can contribute profits in the same year, while the heavy asset model can break even in the first year of the company's enrollment plan. The company's next five-year plan is to achieve a market share of 5% in the southwest, compared with 0.43% at present. With a 20 per cent increase in pre-tax profits in 17 years, 6000 students will grow (nearly 20 per cent), and tuition fees will rise by 6-7 per cent. The teacher training center is currently being renovated and will contribute 400 to 500 people a year in the future. At present, it has a good relationship with Panzhihua municipal government and has reached a cooperation agreement on teacher delivery.