Rui Finance Wang Min On April 23, according to Hong Kong Stock Exchange documents, Quanpin Culture & Education Holdings Limited (hereinafter referred to as “Quanpin Education”) submitted a listing application to the Hong Kong Stock Exchange, with CITIC Construction Investment International as its sole sponsor.
According to the prospectus, Quanpin Wenjiao is an independent teaching aid book planner and distributor in China. It is committed to producing and providing high-quality teaching aids, student supplies and related services.
According to Frost & Sullivan's data, Quanpin Wenjiao is the fifth largest independent textbook planner and publisher in China, with a market share of 5.7%, according to the 2022 foreign standard. According to the 2022 version, Quanpin Wenjiao is also the third largest independent teaching aid book planner and distributor at the compulsory education level in China, with a market share of 7.7%.
The history of Quanpin Wenjiao dates back to 1992. In that year, Xiao Zhongyuan, the founder of Quanpin Wenjiao, established the Beijing Haidian Book City Exam Bookstore (“Beijing Haidian Bookstore”), a bookstore dedicated to examinations. Since then, Xiao Zhongyuan registered the “All Products” trademark in 2002, and since then he has focused on providing and developing basic teaching aids. After years of development and restructuring, Xiao Zhongyuan established the Group's operating subsidiary Beijing Quanpin in 2015.
Beijing Haidian Bookstore was then restructured as a limited liability company in August 2005 and renamed Beijing Quanpin Test Bookstore Co., Ltd., then changed its name to Beijing Baojing Consulting Co., Ltd. in 2020. As of the last practical date, Beijing Baojing Consulting Co., Ltd. was 90.0% owned by Xiao Zhongyuan and 10.0% by his spouse.
On November 24, 2023, Beijing Quanpin Co., Ltd. was restructured as a limited liability company and renamed Beijing Quanpin Culture & Education Technology Co., Ltd.
According to the prospectus, all products are held by Dimeg Investment, Choice Investment, Reach Investment, Rongtong Investment, Nice Investment, Great Investment, Leheng Investment, Shuren Investment, and Osho Investment separately hold approximately 71.80%, 8.73%, and 4.36 %, 1.27%, 1.06%, 2.14%, 7.49%, 1.95%, and 1.20%.
Dimeng Investment is controlled by Xiao Zhongyuan because it is managed by Vistra Trust (Singapore) Pte. Diamond Investment, the holding company used by Limited (the trustee of Xiao Zhongyuan Family Trust) holds 90% of the shares, while the Xiao Zhongyuan Family Trust is a discretionary trust established by Xiao Zhongyuan as the sole grantor and protector of the assets. The beneficiaries are Xiao Zhongyuan's family members and Dimeng International; and Dimeng International, which is wholly-owned by Xiao Zhongyuan, owns 10% of the shares.
According to data, Xiao Zhongyuan, 59, is the founder, executive director, chairman and CEO of the company. He obtained a bachelor's degree in engineering and a master's degree in law from Renmin University of China in July 1987 and July 1990, respectively. Appointed as a director on January 3, 2024, appointed as chairman and re-elected as an executive director on April 16, 2024. Xiao Zhongyuan is mainly responsible for formulating the Group's overall strategic planning, business development and operation.
Xiao Zhongyuan has more than 30 years of experience in the education industry. Xiao Zhongyuan began his career as a teacher at the Beijing Youth School of Political Science in 1990; since April 1992 and August 2005, he has been the general manager and director of Beijing Baojing Consulting Co., Ltd. (formerly known as Beijing Quanpin Test Bookstore Co., Ltd. and Beijing Haidian Book City Special Bookstore); he has also been a director of Beijing Quanpin Cultural Development Co., Ltd. since January 2011.
In terms of performance, in 2021, 2022, and 2023, Quanpin Culture & Education achieved revenue of approximately RMB 514 million, RMB 496 million, and RMB 622 million respectively; for the same period, total annual profit and comprehensive revenue were approximately RMB 349.08 million, RMB 344.47 million, and RMB 643.31 million, respectively.
Quanpin Wenjiao has established a national sales and distribution network, including a wide distribution network and direct sales channels. As of December 31, 2023, the company's sales network covered 31 provincial administrative districts across the country and has cooperated with 982 dealers. In 2021, 2022, and 2023, the revenue of the Quanpin Education Distribution Network accounted for 93.1%, 93.7%, and 90.3% of its total revenue, respectively.