China Merchants Securities: a win-win situation for online education content channels in the era of traffic dividends

China Merchants Securities: a win-win situation for online education content channels in the era of traffic dividends

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  Online education-the era of traffic dividends, a win-win content channel source China Merchants Securities1.

1 Public schools under the “War Epidemic”: Delayed start of school and start of online teaching ◆ School end: The start of school is generally repeated until the end of February or early March. When will the class not be officially taught?

Early childhood education: On January 28th, the National Health and Medical Commission issued a notice requiring all kinds of childcare institutions to suspend the provision of childcare services. Early childhood education institutions for infants and young children under the age of 3, and parent-child parks temporarily suspended offline training services.


K12: The Ministry of Education issued a notice on January 27, requesting that all affiliated institutions of higher learning, local colleges, primary and secondary schools, kindergartens and other schools change the start time of the semester at the beginning of the year. 30 provinces and cities across the country have issued corresponding documents, and the K12 step has been postponed.Until the end of February or early March, the Rockets will not teach online.


Higher education: The Ministry of Education recently issued the “Guiding Opinions on Doing a Good Job in the Organization and Management of Online Teaching in Ordinary Colleges and Universities during the Epidemic Prevention and Control Period,” which requires government intervention, college subjects, and social participation to ensure online teaching.

As of February 2, the Ministry of Education organized 22 online course platforms to open online courses for free2.

More than 40,000 courses, covering 12 disciplines of undergraduate courses, 18 professional majors in vocational colleges.

  Under the influence of the epidemic, the schedule of public schools in the K12 stage: 1.
Classes will not start before the end of February, and new classes will be taken forever, online and offline.

Whether the school will return to school after the end of February will be notified by the Municipal Education Commission.

If it is not possible to return to school in March, the online school will be started. In March, the city’s online teaching will be arranged by the city: video lectures by famous teachers will reach students and teachers through various media (including TV stations), and brake on-demand learning.

The city’s unified schedule, 6 lessons a day, 40 minutes each, about 25-30 minutes to watch a video of the teacher lectures, the remaining 15-10 minutes, the teacher in the class to answer questions in the online class.

Broadcast exercises, eye exercises, etc. will be arranged in 6 classes.


2 Educational institutions under the “War Epidemic”: Hold fast to the traffic bonus and promote free courses ◆ Educational institutions: intense online traffic grabbing and vigorously promote the “free and non-stop” live broadcast courses?

New Oriental Online: Provide 1 million copies of spring class live broadcast courses for primary and secondary school users in the country for free; Oriental Broadcasting provides free small class live broadcast training for public schools in the country?

Xueersi Online School: Trial operation on February 1st, and from February 10th, free live lessons and self-study classes in various disciplines will be launched in sync with the school time from Monday to Friday?

Who to learn from: High-Tow Class donates 20 million winter vacation regular-price live broadcast classes to 20,000 primary and secondary school students in Wuhan, and then promotes free online live broadcast classes nationwide?

Ape Coaching: Provide free live preview sessions to elementary and middle school students nationwide, starting on February 10th, 40 minutes per subject every Monday to Friday?

Homework help: Promote free live national courses. As of February 5th, the number of enrolled free live courses in the spring exceeded 10 million?

NetEase has a way: promote free live national courses, and establish 5 million attendance scholarships1.

3 OTT platform under the “war epidemic”: big screen “learning at home” plan ◆ OTT big screen end: online education on the home side has become an important entry, and the content + channel combination has continued to affect the epidemic situation. Schools have been postponed across the country. In the context of home educationInternet TV and online education are deeply integrated, giving full play to the advantages of the platform, bringing together many high-quality online content.

On February 6, the General Administration of Radio, Film and Television released “Guide to the Standardization of Online Education During the Epidemic Prevention and Control of Online Audiovisual Platforms”, affirming the related work of “stops and stops” for online video and audio platforms such as BesTV, Mango TV, and Huashu Media, and gradually strengthened unified fundingguide.


Mango TV: From February 4th, the official launch of the online learning plan of “Changing Classes without Suspension and Growth without Delay”, in the mobile IPTV business in Hunan Province, for children in the three major platforms of Telecom and Unicom, in educational TV channels, launched by the Hunan Provincial Department of EducationNetwork “Golden Course” and the designated classroom of Changsha Education Bureau, and think together with well-known educational institutions, Mai Tiange Education to create free courses for all subjects of all ages.


Oriental Pearl: BesTV, Wenguang Interactive, Oriental Cable fully responded to the education department’s calls for “suspending classes without suspension”, “prohibition of online sales of new semester courses before school” and other calls, integrated multi-channel joint planning and launch of “suspended classes without suspension, at home at home” educationproduct.

The BesTV Air Force has landed in 20 provinces across the country, and has jointly launched a learning and thinking class box. It has also launched the “Zhuge Academy” and “Hua Shi Mu Class”, and has actively deployed online.


Huashu Media: Provides high-quality educational resources at home and abroad through cable TV interactive on-demand; Zhejiang Huashu Media provides TV-side “school education” to achieve online teaching, online parent conference and other services.


Cloud Audiovisual Aurora (New Media Cooperative Partner): Go online[School Class at Home], join hands with 30 high-quality institutions, 100 + courses, 20,000 minutes + quality content, 1000 + live online live public classes, and join penguin tutors to invite many frontlineTeachers answer questions online.

Youku: United Dingyao launched the “Class at Home” program for free from February 10th. At present, nearly 50 primary and secondary schools in Hubei Province have joined the program.


4 The information platform under the “war epidemic”: live cloud platform has been launched one after another ◆ Online classroom: public school cooperation live broadcast cloud platform, online learning platform has been launched successively According to the Ministry of Education, National Cyber Cloud Class (www.

(cn) Based on ministry-edited textbooks and various versions of textbooks used, it covers all grades from the first grade of elementary school to the third grade of ordinary high school. Based on the teaching week, it establishes a unified curriculum that meets the teaching schedule and provides on-demand courses on the Internet.

Many social organizations have provided online live cloud platforms to assist public schools in successfully providing online courses.


CV Sources: Launched Xivo Cloud Class, which provides teachers with free online course live streaming solutions.


Honghe Technology: Launched a self-developed live broadcast platform system “Honghe Air Classroom” + Nail Cooperative System “Love School Class”, thereby embedding the application of “Love School Class” under the company flag (Jin Qilin analyst) into NailPlatform, the recent rapid growth of online course live users, currently reaching 20,000 online at the same time.


Jiafa Education: Free online classroom, primary education cloud platform, classroom ecosystem, scheduling platform, attendance platform and other smart campus tools are provided free of charge, with a total value of 5 million yuan.


Tianyu Information: The company launched remote office to ensure that the education cloud platform will not stop classes. As the leader of Wuhan’s education informatization, it actively communicates with the competent education department and urgently builds an aerial classroom platform for primary and secondary schools.


Topway Information: Provide free online teaching space and real-time teaching tools to the whole country, and open a full set of cold spring online courses.

At the same time, we cooperate with Huawei WeLink to provide localized online teaching services and national famous school resources.


Fangzhi Science and Technology: United People’s Education Publishing House and other multi-party publishing houses, in order to ensure non-stop classes and free of charge to launch a “smart learning platform” to the country, and provide free use of electronic teaching assistant APP.


China Hi-Tech (Protection of Rights): Operate two major MOOC platforms: Vocational Education MOOC Platform TopU and Chinese MOOCS, which are open to the public during the epidemic, and universities can apply for free SPOC platform services. The platform providesOne-on-one class instruction.


1 Development stage: Online education is still in the era of traffic dividend ◆ Current stage: The era of dividends, MAU growth is higher than GMV growth in 2020, online education is still in the era of traffic dividends, the underlying logic is: one, the level of user onlineization rate is lower,There is still room for continued growth, user traffic dividends continue, and online education companies have a lot to buy.

Second, the product and operation capabilities of online classes have not yet entered a mature form, and there is still room for breakthrough and improvement. Some polishing of teaching and research products, teacher training, and management training processes, and fine management and segmentation of class users.

◆ Development stage: In the era of monetization, GMV and MAU will grow in both directions. In the next 3-5 years, the online education track will enter the era of monetization for the following reasons: First, with the stability of the competitive landscape, the platform ‘s demand for new users will decrease and advertisingFocus on, the user structure is mainly retained / continued students, and the average customer acquisition cost is reduced.

Second, operational efficiency has improved and business models have gradually matured. Major online platforms have achieved a certain level of stable conversion rate / continuation rate under the conditions of controllable costs and expenses, thereby achieving large-scale profitability. Online + offlineBecome the mainstream form of the education industry2.

2 driving factors: upgrading of live broadcast technology, the sinking market can provide overlapping support for technology iteration, 5G network popularization + artificial intelligence technology to drive online education development: from recording and broadcasting, large open network courses to online live courses, the core development drivers behind itTechnology upgrades, the spread of smartphones, 5G networks, artificial intelligence and big data technologies have accelerated the iteration of online education product models.

  With the popularization of webcast technology and the maturity of artificial intelligence technology, the course experience that drives online education is further increased to achieve accurate portraits and matching of user needs.

  Supply and education market for creating demand, education demand in low-tier cities has not yet been fully tapped: online education breaks through various restrictions such as geographical distribution, teaching time, communication channels, promotion channels, etc., and direct access of high-quality teachers to low-tier cities, Creating the demand for participation in low-line markets.

  According to the “2019 Online Education Market Research Report” released by the Mob Research Institute, user demand in the three to five tier sink markets continues to increase, and the proportion of online education users in low-tier cities increased from 42% in August 18 to August 1946%.


3 Market size: Driven by the online rate, it will approach 150 billion in 2023. With the increase of online user penetration, the market size is expected to increase from 20 billion in 2019 to 150 billion US dollars in 2023.


2018: 500 billion USD market for offline K12 training, 12 billion USD online K12 training, user penetration rate is only 10%.


2019-2020: The increase in the scale of online education platforms, the rapid increase in the rate of onlineization under the influence of the epidemic, and the increase in the number of online users. It is expected that the market size will reach nearly 500 billion in 2020, doubling its growth.


2023: The online penetration rate is expected to increase to 50%, the market size is close to 150 billion, and the compound growth rate of the industry in 2020-2023 is close to 50%.


4 Competition pattern: adjustment on the right, novice players enter the game ◆ K12 Online: Good Future (Xue Ersi Online School), New Oriental Online (Dongfang Youbo), Ape Coaching, Who to Learn From, Homework Help, Netease Youdao, etc. ◆ Vocational Education:Public education, chalk test, China Accounting Online School, Tencent Class, Netease Cloud Class, etc. ◆ Language Learning: Youths: VIPKID, DaDa English, 51Talk; Adults: Hujiang Online School, Fluent English, etc. 2.
4Competitive landscape: TAL / GSX / Ape Coach CR3 market share is about 40% Offline training institutions / online tool platforms / Internet platforms Three types of players have entered the online education, with a good future in 2019 + who to learn + ApeCalculating the total income of the three tutors is about 8 billion yuan. The market share of CR3 is about 40%. The initial initialization is above the head.


Moving from offline to online: New Oriental, Good Future. Two leading offline agencies have entered the military line, possessing the accumulated teaching strength and brand advantages of offline, lower customer acquisition costs in online competition and a higher K12 business renewal rate.
In addition, there are also offline institutions such as Li Sichen (Zhuge Xuetang) and Siyue Music.


From tools to content: Represented by ape tutoring, who to learn from, and homework help, early completion of user accumulation and brand building through the tool platform, and then transition to content platforms through strengthening teachers and teaching and research, pure online marketing, ground advertisingbudget.


From traffic to monetization: Represented by Youdao Class, Tencent Penguin Coaching, backed by the Internet platform, Netease, Tencent and other Internet platforms in terms of traffic, capital and technical advantages, online education as a key layout of the platform.


5 Business model: Customer acquisition-transformation-retention monetization The business model of closed-loop online education includes three core approaches-customer acquisition, conversion, and retention, that is, first to attract free low-cost users through advertising, and then increase the number of experience classes through WeChat groupsProduct experience and user stickiness, so as to achieve the conversion from low-priced users to regular-priced users, and further retain customers through product and service quality, and continue to achieve repurchase.

  ◆ The three core indicators that determine its economic model are: ROI (cash income / marketing costs, greater than 2 means higher delivery efficiency) or customer acquisition costs (marketing costs / think users, the average summer customer acquisition cost is 500-800 yuan)), Conversion rate (the ratio of low price to regular price, the average conversion rate of summer to autumn is 15% -30%), and the renewal rate (the proportion of regular price users who renew, the average renewal rate is 50% -80%) 2.

5 Teaching Mode: Large and small classes are essentially profitable ◆ Offline class forms: There is irreplaceable demand.

Because offline lectures are more interactive and operation management is more in place, they are more connected with parents and students. They are still the mainstream teaching scene. In high-line cities, users with high ability can choose offline lessons.

  ◆ Online class: The advantage lies in convenience and product pricing. The average unit price of a class is 40-60 yuan / hour, only 50% of the offline class.

The class format can be further divided into large classes (more than 50 students) and small class models (within 50 students). There are differences in the economic models between large and small classes, mainly due to the efficiency of teacher operations. Large class models are more effective in reducing teacher wage costs, and small class models are more effective.The difference between the offline class model and the offline class is that at least the cost replaces the rental cost, the course pricing range is slightly different, and the large and small class model can achieve profitability in a stable state.

◆ Offline / Online 1 to 1: More targeted at offsetting needs.

The waist and tail students are more suitable for one-to-one format and provide targeted guidance. The economic model is not as good as the class model, and the cash flow turnover ability is higher.



1 Competitive factors: lower customer acquisition costs / higher advertising efficiency The main customer acquisition channels for online education are divided into the following:

Natural traffic: about 5%, mainly through natural traffic or search engine clicks.


Reintroduction: It accounts for about 20%, and the cost of customer acquisition increases. If the ratio of reintroduction exceeds, the overall customer acquisition cost is lower, and the delivery efficiency is improved.


Information flow advertising: mainstream customer acquisition channels, accounting for about 70%, the channel is WeChat circle of friends, headline information flow advertising, new registered user acquisition cost is about 200-400 yuan, increasing user acquisition cost at 1300-About 1600 yuan.


Light live broadcast: accounting for 5%, the cost of acquiring new registered users is only a few yuan.



1Enhancement space: light live stream diversion, reducing customer acquisition costs Three characteristics of light live broadcast mode1.
Low customer acquisition cost: Compared to the 49 yuan lesson model, live broadcast does not need to pay high promotion costs. The cost mainly comes from the class time fee + platform fee, which greatly reduces the customer acquisition cost.

  2.Strong user appeal: Light courses have a low degree of biology, and users can increase the appeal of the course by experiencing the course in advance.

  3.High teacher requirements: Live lesson recording and broadcasting courses have higher requirements on teachers’ experience and teaching level.


The most mainstream customer acquisition model for information flow advertising is 49 yuan lessons, mainly in the WeChat circle of friends. The advantage is that the traffic is huge, but the cost of acquiring customers is relatively high.Right or left, there is a conversion rate of 25% -30% for the regular price class. The cost of adding another user is 1300-1600, and the cost of acquiring customers is higher.


Light live broadcast is a kind of free live broadcast course that lasts for a long time, this form better has both the higher acquisition cost allowed by the traffic exposure machine.

The live broadcast is usually about 30 minutes. The lecturer conducts real-time online interactive teaching to provide potential users with the opportunity to experience the live broadcast course.


Light live broadcast, as a cost depression for online education, will become the main customer acquisition model for online education in the future.
Live broadcast selling lessons, light live broadcast currently accounted for about 5% of the overall customer acquisition, is expected to increase in the future a large proportion.



2 Competitive elements: training and operation management of the teacher team?
线上主讲老师主要来自于:1)社会招聘:主要招聘途径, 线下教培机构为主,公立学校老师为辅,通过一定时间 的培训和试课后上岗,多为4-5年有经验Teachers; 2) Internal promotion: If the main lecturer of Ape Coaching is partly promoted by the tutor; 3) Current recruiting: If some of the main lecturer who is studying from the recruitment of freshmen, they will also take the system after systematic training.

Along with business growth, the teacher team is expanding rapidly, testing the ability of large-scale teacher training and coaching operations.
Take whom to learn as an example. In 2018-2019Q3, 46 new lecturers and 2000 new tutors were added.
The number of full-time teachers in Oriental Broadcasting is expected to increase from 550 in 20H1 to 1,200 in 20H2.
  2.6.2 Improvement space: refined management of content + users in the big class mode?

Content side: The degree of localization of teaching materials needs to be improved.
Most of the online classes use the universal version of the textbooks. Xueersi Online School and Ape Coaching cover different versions of primary school mathematics, such as human education, Beijing Normal University, and Soviet education, but they are relatively limited. The localization of teaching content is for future content upgradeDirection one.

Client: The hierarchical management of students needs to be refined.
The student grouping mode mainly includes three forms, namely textbook & difficulty, course difficulty, and course type. User grouping can achieve more targeted training content and more refined user management.
Grouping students according to the difficulty of the course has the most models, usually with 2-4 levels of difficulty; according to the type of course, there are generally long and short classes, sprint classes, and special purpose classes.
  2.6.3 Competitive factors: the balance between product pricing and course quality?

The product has a pricing advantage, and has both teaching quality and cost performance.
Compared with the average one-hour pricing of 85-100 yuan for offline K12 institutions, the average pricing of online courses is 45-60 yuan / hour, which is 40% -50% of the offline price. From the perspective of the course price difference, there can be three echelons.: Huh?

The first echelon is represented by whom to learn from, Dongfang Youbiao, and Xue Peiyou Online. The actual one-hour course is priced at 60-75 yuan.

The second echelon thinks of online school, New Oriental Online and Youdao class for learning. The price per hour is 45-60 yuan.

The third echelon is homework help and ape tutoring, and the unit price of class hours is 30-45 yuan.
  2.6.3 Space for improvement: OMO mode, integration of online and offline boundaries. New Oriental / Good Future two giants are the first to explore OMO mode?
New Oriental: OMO education and online education dual platform strategy?

In 2019, New Oriental focused on promoting the progress of the dual platform strategy, that is, OMO education and online education parallel.
In 2020Q2, the company invested $ 44 million in the OMO ecosystem, and the annual investment is expected to be 1.
$ 600 million, compared to 1.
$ 300 million.
New Oriental continued to upgrade the OMO standard classroom teaching system, and the interactive courseware in Bubble Children has been extended to more cities.
Online education: With New Oriental Online listed companies as the main body, Oriental Broadcasting in K12 business also uses the OMO model, that is, to obtain customer diversion through offline, teach online lessons online, and combine offline teacher and student meetings and parent interaction activities.

Good future: learn and think better + learn and think better online, OMO is an important layout for sinking the market?
In 2019, Good Future will integrate its learning and online learning and offline learning and thinking, explore the OMO model, and learn and think online and learn and think and promote excellent content as a complement to offline.
Good Future is planning to accelerate the Group’s layout in sinking markets through the OMO model.

The OMO model represented by the double division has become one of the most important ways to enter low-tier cities in the future.

  ? As of 2020Q3 (2019.


30) Of the 70 cities that Xue Peiyou entered, more than 30 cities have launched Xue Ersi online business, and more than half have not yet entered.

Xueersi has about 240,000 people, Q1 / Q2 revenue growth rate is higher than 150%, Q3 growth rate is higher than 200%.

  OMO in the educational context: online and offline teaching integrated?

OMO definition: Online merger offline, full integration of online and offline?

Difference from O2O: O2O mode is unidirectional from online to offline. In OMO mode, online and offline will be bidirectionally intertwined to guide each other?

OMO in educational scenarios: While teaching offline, you can accept online remote lectures, after-school tutoring, Q & A, etc. Local teachers, remote teachers, and adaptive systems can master the learning progress.

  In the early stage of platform development, the R & D investment was above 20%, and after that, the scale increased. After the technology matured, the investment accounted for about 10%.

The R & D investment of the online live broadcast platform includes the upgrade of real-time tools and the update and iteration of the data center. During the teaching process, it is necessary to continuously expand the technology research and development to ensure the platform’s more stable performance, more convenient operating experience and more accurate data portraits.

  ?The platform represented by learning and thinking about online school, who to learn from, and the New Oriental large class usually adopts a self-built platform model. R & D personnel account for a relatively high number of people. From whom, New Oriental Online 天津夜网 accounts for 22% and 25%. Netease has the right way.In addition, there is an online tool business, with R & D personnel accounting for up to 33%.

  ?The platform represented by the Oriental Optimum Small Class is usually another third-party live broadcast platform, such as Classin Wingguo Education, Shengyou Network, Zhanshi Interactive, WeChat, Cloud Course, Talk Cloud, etc. The charging mode is usually one person per hour.Pricing, taking the example of Weihou class, small class 0.

36 yuan / person / hour, open class 1.

2 yuan / person / hour, recording and broadcasting class 2 yuan / GB, the course traffic will have a relative discount.

  Good future (TAL): fast running online + integrated integration giant Good future (TAL): entry grade + high-tier cities dominate, great expansion potential New Oriental Online (1797): Group spin-off and listing, K12 as coreWhat to watch?

The Group’s only online platform was split and listed.

The company was established in 2005 and operates independently. In 2006, the company went public with the group.

In May 2017, the company was listed on the New Third Board and terminated listing in February of the following year. It was listed on the Hong Kong Stock Exchange in March 2019.

  ? The main business of K12 consists of Oriental Broadcasting + K12 classes.

Operating university, K12, pre-school three major business segments, covering all age groups of 3-30 years old. It owns multiple online platforms such as New Oriental Online School, Dongfang Youbiao, Kuxue Dona, etc., 2020H1 university business revenue accounted for 64%,K12 business accounts for 23%, preschool education accounts for 4%, and institutional client revenue accounts for 10%.

? K12 business income and the proportion of estimated visits have grown rapidly.

The company achieved 5 in 20H1.

6.8 billion yuan, an increase of 19%, net profit attributable to mothers-71.28 million yuan, a decrease of 246%.

  The total number of bidding students reached 1.3 million, an increase of 19.

3%, of which the university business decreased by 15 due to business structure adjustment.

3% to 52.

60,000 people, K12, same-time increase of 159% to 75.

50,000 people.
  New Oriental Online (1797): U-broadcast focused on sinking the market, with strong operating barriers to learn from (GSX): large-scale profitable large-scale online platform to learn from (GSX): brand bargaining and high operating efficiency to achieve profitOnline platform, who can learn 70% + gross margin and 10% + OPmargin from the following three points?

Double teacher and big class model, teachers have high operating leverage.

As of the first three quarters of 2019, the company has driven 1.09 million listeners with 209 full-time teachers. The number of simultaneous online students in K12 classes is up to 1,400, and the number of simultaneous online teachers’ courses has reached 2,000+. The gross profit margin is close to 75%.

Famous teachers’ blessings ensure teaching quality and brand bargaining power.

In the first three quarters of 2019, the overall per capita rate was 856 yuan, and the K12 course per capita rate was 979 yuan, a 37% increase, 45-60 yuan / hour at the elementary stage and 70-80 yuan / hour at the high school stage, which is higher than the industry average.
The feedback from course operations is better, with K12 business conversion rates exceeding 20% and renewal rates exceeding 70%;

Mature delivery strategy, community marketing + information flow advertising + word-of-mouth marketing multi-faceted comprehensive customer acquisition.

The customer acquisition cost in the first three quarters of 2019 was 549 yuan, exceeding the industry average. It is estimated that the cost of customer acquisition in 2019 will be around 500 yuan, and the sales expense ratio will not exceed 50%.

  Youdao (DAO.

N): Youdao Quality Class focuses on K12 Online Youdao (DAO.

N): Technology core, tool platform and hardware additional services?

The leader of the “Big Chinese” track, in 2018, acquired 100% equity of Chinese Future.

After the acquisition of Chinese in the future, it will accelerate its expansion. In 19H1, it has entered 21 cities and opened a total of 366 learning centers (144 of which are directly operated and 222 are joined).

The company is expected to benefit from the improvement in the level of Chinese language in basic education after the reform of the new college entrance examination, and the rapid growth of large language income. Revenue 1 will be recognized in 2019H1.

4.3 billion, an annual increase of 142%.

The company’s high-level teacher model has rebuilt the moat and established a CBAS four-level teacher training system. As of December 2019, there have been about 1,200 teaching teachers, which nearly doubled in the same period last year.

  ? Launched “Zhuge Academy”, low-cost diversion in light play mode.

Zhuge Class is the main product form of online regular price classes. Using third-party short video / audio APPs such as Himalayan for diversion, low-cost class diversion marketing has achieved significant results. Until the first half of 2019, big language WeChat, big language APP and ZhugeThe number of school users reached 460,000 and 7 respectively.

80,000 and 8.53 million people.

During the epidemic, the company has transferred all the Chinese language colleges to the online colleges and used the method of giving lessons to the spread.

Aiming at low-tier cities, we launched dual-teacher mini-classes in the OMO mode to solve the problem of high-quality education resource allocation and explore market opportunities in second- and third-tier cities.

  Mango Super Media (300413): An entire industry chain platform centered on Mango TV?

The Internet video platform of the entire industry chain service has been opened, with Mango TV as its core asset.

The company’s financial performance is dazzling in the industry, and it is the first domestic video website to achieve profitability, with revenue of 82 in the first three quarters of 2019.

300 million (+14.

6%) Net profit attributable to mother 9.

7.5 billion (+19.


Variety content self-control ability is outstanding. Happy Sunshine has 16 variety production teams, which can accommodate 6 seats in the top 10 variety platforms in 2019.

In 2020, the variety show reserves will exceed 20+ units.

  ? Mango TV launched the online course of Hunan Education Department to create a free course for all subjects.

The mango cloud classroom under the mango tv education channel covers many fields such as preschool education, basic education, art, science and popular science. The online education channel of mango supermedia is beneficial to benefit from the huge basic traffic of the platform and convenient on-site diversion.

In terms of cooperation resources, we cooperate with Hunan Education Department, Hunan Satellite TV, professional education institutions (learning and thinking), and well-known campuses.

Currently, Mango TV has launched online courses in Hunan Province’s education department to create free courses for all subjects in all ages.

  New Media (300770): Teaming up with Tencent Cloud Audio-visual “Class at Home”?

The OTT side cooperates with Tencent and has a leading domestic new media operation platform.

The company’s IPTV has a monopoly advantage in the operating market in Guangdong. The OTT and Tencent’s in-depth cooperation in the “cloud audiovisual” series has obvious advantages.

The company’s revenue has grown rapidly, with operating income in the first three quarters of 20197.
2.9 billion yuan (+ 65%), net profit attributable to mother 2.

7.7 billion yuan (+ 77%).

In terms of user growth, the number of basic IPTV users increased from 4.57 million straight lines in 2016 to 16.85 million in the first half of 2019. The OTT cloud audiovisual aurora business gradually activated users to reach 1.

6 billion.

  ? Cloud Audiovisual Aurora teamed up with high-quality resources to launch the “Class at Home” program.

Cloud Audiovisual has cooperated with 30 high-quality institutions, 100+ courses, 20,000 minutes + high-quality content, 1000+ online live broadcast public courses, and together with Penguin Coaching, invited many front-line teachers to answer questions online.

In the area of outreach M & A, acquisition of education-related companies.

Second-tier wholly-owned subsidiary Guangdong Nanxin Financial Holdings Investment Co., Ltd. acquired Shengjian Network.

0045% shares.

The research and development and operation of military smart TV products of Saint Sword Network. The affiliated products include game platforms, Lexue Xingkong, etc. Among them, “Lexue Xingkong” builds online interactive education products for children aged 3-12.

  Oriental Pearl (600637): BesTV + Dongfang Cable Joint Promotion?

Relying on SMG, building a whole industry chain entertainment group.

The company’s Oriental Shopping is currently the largest video shopping platform in the country, with a wide membership and the largest component of the company’s revenue.

With BesTV being the pioneer and founder of China’s IPTV business model, in 2019H1 BesTV IPTV users reached 51.24 million and revenue was 9.

7.8 billion, which contributed to the revenue of most media network segments.

In terms of film and television entertainment, the film and television are realized on the basis of comprehensive connection with SMG content resources, and the overall layout of the game is to create a content-side industry chain with rich content reserves.

Revenue for the first three quarters of 2019 was 85.

400 million, net profit attributable to mother 13.

100 million yuan.

  ? Work with professional partners to form a diverse online education front.

Beststone’s IPTV, Wenguang Interactive and Dongfang Cable all involve online education. The company has developed online education earlier. Since 2010, Beststone has launched such services.

BesTV has already landed in 20 provinces across the country, and jointly launched the “Learning and Thinking” lesson box. It also launched “Zhuge Academy” and “Hua Shi Mu Class”.

In the future, it is also possible to carry out live teaching on the Oriental Cable platform. The establishment of more than 12 channels involves disciplines of different grades and can cover 1.4 million home users in Shanghai.

  Honghe Technology (002955): Two self-developed on-line research + Dingding cooperation in the air?

Educational intelligent interactive display industry giants, overseas business profit and increase revenue.

The company’s main sources of revenue include smart interactive tablets (18 years of revenue accounted for 63.

16%), projector (14% of revenue.

16%), electronic interactive whiteboard (revenue ratio 4).


Actively lay out overseas markets. In 2017, the company exchanged with internationally renowned educational fields, established business cooperation with product brand owners, and achieved overseas revenue in 201814.

8.8 billion, an annual increase of 74.


And Shiyuan Co., Ltd. are two of the top educational intelligent interactive display industry giants. At the same time, they have expanded the field of intelligent interactive tablet applications to the tablet market for business meetings.

  ? Self-developed platform “Honghe Nailing Class” + Nailing cooperation “Honghe Nailing class” went online at the same time.

The two major platforms, “Honghe Nailing Classroom” and the self-developed live broadcast platform “Honghe Air Classroom”, are both undergoing large-scale testing and are expected to be officially promoted to the market after the start of the school.

The “Love Class”, a subsidiary application of Honghe Technology embedded in the DingDing platform, provides comprehensive teaching functions and digital teaching resources, which can help teachers to achieve “online preparation lessons, live lectures in the air, and homework review”.
The company can directly contact the school for cooperation in areas that can not be covered by Nail.

Recently, the number of online course broadcast users has increased rapidly and currently reaches 20,000 people online at the same time.

  Jiafa Education (300559): Wisdom Admission + Wisdom Education Two Wheel Drive?

The wisdom of leading the examinations, the “new college entrance examination” reform started the second round of growth.

As the domestic leader in intelligent recruitment, the market share of the first round of standardized test sites is about 60%.

Benefit from standardized test room 2.
With the promotion of 0 construction, the construction of standardized test sites increased from 500,000 to 1.5 million under the “new college entrance examination” reform, and the demand for standardized test site equipment increased significantly.

Wisdom examination + smart education promote the company’s revenue growth, the first three quarters of 2019 revenue4.

2 billion (+ 65%), net profit attributable to mother 1.

5.5 billion yuan (+ 101%).

  ? Smart education integrated solution provider.

Since 2017, smart education has become an independent sector, with revenues of 27 million in 17 years and 67 million in 18 years. It has maintained rapid growth in 19-20 years.

Product lines include smart education, new college entrance examination product line, smart campus business, new college entrance examination personalized development needs to enter smart class cards, scheduling and elective system and other new product and service forms.

The online classroom platform helps teachers create an “in-flight classroom”. Schools and teachers can initiate live lectures from anywhere, and students can participate in live learning in a variety of ways.

During the epidemic, free online classrooms, primary education cloud platforms, classroom ecosystems, scheduling platforms, and attendance platforms were provided free of charge as smart campus tools, with a total value of 5 million yuan.

  Risk Warning 1.
Online education supervision policies are becoming stricter: strictly follow the offline supervision policies, and any relevant policy changes will have a transmission effect2.
Intensified competition pattern: players on the content side, technology side, and traffic side enter the game, intensifying market competition, and extending the transformation time of the competition pattern3.
Profitability failed to meet expectations: User retention and conversions did not meet expectations. Online platforms continued to acquire customers and were in a potential state. The rate of profitability was not up to expectations.