In 2020, the company's revenue is 1.386 billion yuan /-30%, the company's net profit loss is 2.567 billion yuan, and the non-net profit loss is 2.644 billion yuan, which is mainly due to the provision of 2.193 billion yuan of asset impairment loss and business development pressure, EPS-2.96 yuan, the company's revenue is 1.386 billion yuan /-30%, the company's net profit loss is 2.567 billion yuan, deducting non-net profit loss of 2.644 billion yuan, mainly due to the impairment loss of assets and the pressure of business development. Q4 single-quarter revenue of 538 million yuan /-18%, return to the mother of the net profit loss of 2.441 billion yuan, deducting the non-return performance loss of 2.498 billion yuan, EPS is-2.85 yuan.

Under the epidemic, the large language business grew steadily, and the enrollment service and wisdom education business were under pressure in 2020. In 2020, the recognized income of the big language was 565 million yuan / + 29%, deducting the non-return net profit of 138 million yuan, and the outstanding performance commitment (169 million). At the end of 2020, 112 million yuan in deferred income was recognized. Among them, the income of Q4 is 240 million yuan, and the net profit of returning mother is about 100 million yuan. At the end of the period, there were 98 direct operation centers, 13 more than the medium report, and 376 / + 31 joining centers. The income of further education service is 3075 yuan /-87%, and the net profit loss is 93.06 million yuan. The income of intelligent education is 689 million yuan /-34%, with a loss of 500 million +. In 2020, the gross profit margin was 32.6% gambit 7.8pct, due to a decline in revenue, cost rigidity and an increase in the proportion of low gross profit margin business; sales / management / R & D / financial rates increased by 3.7pm, 9.0amp, 4.1amp, 3.7pct, respectively. The increase in labor costs led to a greater increase in management expenses.

The net profit of 2021Q1 was reduced by 68%, the collection of large language increased by 2021Q1, the company's income was 239 million yuan / + 81%, the net profit loss of parent was 4458 yuan / + 68.18%, and the non-net profit loss was 4788 yuan /-66%. The big language income of 128 million yuan / + 43% is in line with expectations, and the collection amount is 8978 yuan / + 87% beautiful. The gross profit margin is 33.3% Maxime 3pct, and the sales / management / financial rates are the same as minus 29/59/10pct.

The refinancing plan passed the examination and approval, and the company's refinancing plan was finally approved, and the Beijing Municipal Education Commission stipulated that K12 training institutions could not apply for offline training until they were in compliance. Under the background of stringent supervision, the head training institutions with strong curriculum and financial strength may benefit for a long time. It is suggested that we should pay attention to the progress of the company's offline class resumption in the future.

Risk hints: risks such as stricter industry policies, slow divestiture of traditional business, impairment of goodwill, and so on.

Short-follow additional issuance on the ground, long-distance expansion, maintain the "buy" rating.

Without considering the dilution of IPOs for the time being, it is estimated that the EPS of the company in 21-23 years will be 0.05max 0.49max 0.85 yuan, of which the EPS of Chinese future + century-old talents in 21-23 years will be 0.28max 0.44max 0.66 yuan respectively, and the corresponding valuation will be 27max 17max 11x. Pay attention to the landing of additional issues and the pace of resuming classes, and maintain the "buy" rating.