On April 22, 2024, Canpoint Culture and Education Holdings Limited (hereinafter referred to as “Quanpin Culture and Education”) from Haidian District of Beijing submitted a prospectus to the Hong Kong Stock Exchange to be listed on the Hong Kong Main Board.
Links to the full literature and education prospectus:
https://www1.hkexnews.hk/app/sehk/2024/106409/documents/sehk24042201993_c.pdf
Main business
As a leading independent teaching aid book planner and distributor in China, Quanpin Education is committed to producing and providing high-quality teaching aids, student supplies and related services. The history of Quanpin Culture and Education can be traced back to 1992. The founder of the company, Xiao Zhongyuan, founded the Beijing Haidian Book City exam bookstore. In 2002, Mr. Xiao registered the “Full Product” trademark, and since then he has focused on providing and developing basic teaching aids.
According to the Frost & Sullivan Report, in 2022, measured by yards*:
* Ma Yang: A commonly used indicator to measure the value of a book, that is, the total amount obtained by multiplying the book's label price by the total sales volume of the book
Quanpin Wenjiao is the fifth largest independent teaching aid book planner and distributor in China, with a market share of 5.7%.
Quanpin Wenjiao is the third largest independent planning and distributor of teaching aids in compulsory education in China, with a market share of 7.7%.
As of April 17, 2024, all educational materials are provided:
Teaching aid books, which basically cover all major subjects from elementary school to high school. The main teaching aid book series includes: “Full Product Review Plan”, “Full Product Study Test”, “Full Product Workbook”, and others including 773 SKU teaching aid books (up to the end of 2023);
Student supplies, products for various daily student activities, from eye care products to sports and fitness-related equipment, and other school supplies and equipment. As of December 31, 2023, the company's student supplies covered multiple categories, with a total of 357 SKUs;
Related services and others include digital education resources and services that can help students enhance their learning experience. The company launched a full-product education platform in June 2020, integrating educational resources and various digital service solutions, including question banks, smart work-related solutions, and teaching resources.
Shareholder structure
According to the prospectus, Quanpin Wenjiao had a shareholder structure before listing,
Mr. Xiao Zhongyuan and his family trust hold 71.8012% of the shares through Dimeng Investment;
Choice Investment holds 8.73% of the shares;
* Shareholders of Choice Investment: Ms. Xiao Shufang (Mr. Xiao's sister, 33.69%), Ms. Xiao Yourong (Mr. Xiao's sister, 30.63%), Mr. Peng Hao (son of Mr. Xiao's sister, 27.57%), Ms. Liu Fen (spouse of Mr. Xiao's younger brother, 5.05%), and Mr. Xiao Zhongxue (Mr. Xiao's younger brother. 3.06%).
Reach Investment holds 4.36% of the shares;
* Reach Investment's shareholders: Mr. Xiong Hui (28.22%), Ms. Liu Yan (25.77%), Ms. Shao Xiaopeng (15.95%), Mr. Zhang Yongsheng (15.34%), and Ms. Li Hongmian (14.72%), who are directors or former directors of the Group or subsidiary companies.
Rongtong Investment holds 1.27% of the shares;
* Shareholders of Rongtong Investment: Ms. Wei Hua (28.42%), Ms. Xu Juanjuan (21.05%), Mr. Cui Xiwang (21.05%), Ms. Zheng Shuyan (18.95%), and Mr. Gao Haifeng (10.53%), who are employees or former employees of the Group.
Nice Investment holds 1.06% of the shares;
* Nice Investment's shareholders: Mr. Hu Lei (30.38%), Ms. Zhang Ling (25.32%), Ms. Zhou Haixia (24.05%), Mr. Zhang Bo (13.92%), and Mr. Jiao Jinlong (6.33%), who are Group employees or former employees.
Great Investmen holds 2.14% of the shares;
* Great Investmen's shareholders: (i) Mr Shi Wei (62.50%); (ii) Mr Zheng Tuliang (18.75%); (iii) Mr Ji Xiaoyu (12.50%); and (iv) Mr Li Jun (6.25%), who are friends of Mr Xiao.
Leheng Culture, through Leheng Investment, holds 7.49% of the shares;
* Shareholder of Leheng Culture: Ms. Yu Fan is a general partner and 45 other limited partners. Such shareholders are Group employees and former employees, as well as family members, relatives, friends and business acquaintances of the company's management.
Shuren Culture, through Shuren Investment, holds 1.95% of the shares;
* Shareholder of Book Man Culture: Ms. Wang Shunqin is a general partner and 37 other limited partners. Such shareholders are Group employees and former employees, as well as family members, relatives, friends and business acquaintances of the company's management.
Aoxiu Education holds 1.20% of the shares through Osho Investment.
* Shareholder of Aoxiu Education: Ms. Sun Ying (13.44%) is a general partner and 26 other limited partners. Such shareholders are Group employees and former employees, family members of employees and business acquaintances of management.
Directors and Executives
The board of directors of Quanpin Education consists of 7 directors, including:
4 Executive Directors: Mr. Xiao Zhongyuan (Chairman and CEO), Ms. Shao Xiaopeng (Chief Financial Officer), Ms. Liu Yan, and Mr. Xiong Hui;
Four independent non-executive directors: Mr. Yu Zhenqiu, Mr. Xing Lei, and Mr. Liu Rude.
Company performance
According to financial data, in the past 2021, 2022 and 2023, Quanpin Education's revenue was RMB 514 million, 496 million yuan, and RMB 622 million, respectively, and the corresponding net profit was RMB 349.08 million, 344.47 million, and RMB 643.31 million, respectively.
Intermediary team
Quanpin Wenjiao's intermediary team for this IPO mainly includes: CITIC Construction Investment International as its sole sponsor; Deloitte as its auditor; Jingtian Gongcheng and Jingtian Gongcheng (Hong Kong) as their corporate lawyers in China and Hong Kong lawyers respectively; Tianyuan and Pu Heng are their lawyers in China, and lawyers in Hong Kong and the US; and Frost Sullivan as their industry advisors.