[the truth] from LED to education, which is the group?

Admission is difficult, expensive admission, a lot of problems faced by young parents. From the news reports in recent years, in order to obtain a qualification for the nearest Park, parents queuing several days and nights seem to have become the norm. And there is a company doing LED packaging, trying to solve this problem.

Recently, the Shenzhen city group Limited by Share Ltd (hereinafter referred to as rectangular group) issued on the establishment of the company to participate in the establishment of investment in education industry investment fund signed an investment framework agreement announcement. "Notice" shows a group of Zhuhai Hengqin rectangular Yide education industry investment fund mergers and acquisitions (limited partnership), intends to equity transfer and capital investment in science and technology education Campbell shell (Beijing) Co., Ltd. (hereinafter referred to as the "shell Campbell, Campbell) eventually won the shell 51% stake, the transaction amount 120 million yuan.

Shell Campbell promised 2017 year 2018 year 2019 year three fiscal year audited net profit after deducting non recurring gains and losses attributable to owners of the parent company, were not less than 10 million yuan, 20 million yuan, 36 million yuan. At the same time commitment, since the date of the three years since the acquisition of the shell, the name of the name of a wholly owned or holding a direct nursery kindergarten not less than 30.

For this investment, the rectangular group said that this is the new strategic cooperation with the new Lei Lei, one of the actions to further promote the group's education strategy. Especially for the group in the first tier cities in China and focus on high-end kindergarten market pricing, business layout, expand the operation of a solid foundation.

Why are so optimistic about the vertical group of high-end straight kindergarten? At present, the status quo of domestic preschool education industry, market space?

Within two weeks to invest in two preschool institutions

In addition to Bacon Campbell, rectangular group in November 23rd has invested in another kindergarten.

According to the recent announcement of the rectangular group recently announced that the company intends to acquire a total of 60% equity interest in Shenzhen Lei Lei New Education Group Co., Ltd. (hereinafter referred to as the new bud).

It is reported that, in order to estimate the Telei new shareholders held Telei new 100% equity value of 800 million yuan as the base, the rectangular Group intends to 600 million yuan by the transferee equity (400 million yuan) and capital (200 million yuan) the total Telei new 60% stake.

New aspects of commitment, the company in 2016 consolidated net profit of not less than 25 million yuan audit. In addition, the 2017 year, year after year, the annual net profit after deducting non recurring gains and losses attributable to shareholders of the parent company was 50 million yuan, $65 million, $84 million 500 thousand, $2019, respectively. In addition, the company also promised to self cut within three years from the date of the name of a wholly owned or holding straight kindergarten less than 100.

For this investment, the company said it was in order to enter the field of private education, the integration of educational assets. As for the shell treasure investment, the company is conducive to the layout of the high-end direct kindergarten.

As of November 2016, the new special in the country has more than 40 children in the kindergarten, the number of children in the park about 9000, in addition to a preschool education, Education Research Institute, early education center. Preschool education park focused on the layout of a second tier cities, especially in Guangdong, especially in Shenzhen. Shell treasure, in addition to the Beijing campus of Shanghai, Guangzhou, Shenzhen and other places have a mature or new park.

It is worth mentioning that, according to the results of the two institutions in the next three years of commitment, rectangular group will have no less than 130 direct kindergarten.

Why do listed companies do preschool?

According to a group of third quarter earnings, the company achieved total revenue of 409984045.57 yuan, 408077972.33 yuan year-on-year growth of 0.47%; a total profit of 31473886.90 yuan, 42956816.74 yuan less than the same period last year 26.73%; net profit attributable to shareholders of listed companies 15634246.66 yuan, 27766828.91 yuan less than the same period last year 43.69%.

Rectangular group 2016 third quarter report

According to the annual report, the company's revenue was 727486267.72 yuan, 609940470.86 yuan year-on-year growth of 19.27%; operating profit 62460.914.93 yuan, 47859034.61 yuan year-on-year increase of 30.51%; net profit of 61656746.70 yuan, 46201882.90 yuan year-on-year growth of 33.45%.

While the first quarter earnings industry is particularly brisk, the company's revenue was 307346533.74 yuan, 153671900.10 yuan year-on-year growth of 100%; a total profit of 27906558.87 yuan, 8027044.14 yuan more than the same period last year growth of 247.66%, net profit attributable to shareholders of listed companies 14566947.08 yuan, 7316103.97 yuan more than the same period last year growth of 99.11%.

But the results of the previous three quarters, although revenue grew by 11.73%, but net profit fell by 15.74%. Net cash flow, down 146.47%. Significant changes in performance, mainly affected by the third quarter.

The company said it was mainly affected by the economic downturn and LED lighting to replace the impact of the rapid advance of traditional lighting. And this year, the LED industry after the price war and product homogeneity and other fierce competition, the industry reshuffle, industry polarization. Large enterprises through mergers and acquisitions to further expand the scale, while SMEs are difficult to survive.

Although the competition is fierce, but with the upgrading of energy consumption, LED industry still has a huge market space. In addition to consolidating the competitive position in the packaging market, the company will also extend production