Private higher education has made positive contributions in expanding the supply of educational resources and promoting the popularization and popularization of higher education. According to the statistics of the Ministry of Education, from 2000 to 2020, the number of private colleges and universities in China has been growing continuously, from 43 to 771. The number dropped to 764 in 2021 and remained unchanged in 2022, accounting for 25.4% of the total number of colleges and universities in the country.

With the continuous expansion of the scale of private higher education, to a certain extent, it provides more alternative opportunities for education. Based on the new development stage, private higher education should realize the transformation from quantity to quality and explore a new high-quality development path on the basis of scale development.

When it comes to the private higher education track, China Spring (01969) is a target that can not be ignored.

As the largest provider of high-quality higher education in Central China, the company continues to gain access to students in higher education and vocational education tracks with high-quality curriculum services. China's Chunlai stock price has doubled since 2023, winning the jackpot on the highly competitive track.

According to the APP of Zhitong Finance and Economics, while the territory continues to expand, there are also hidden worries in China's spring. On the one hand, horizontal development continues to increase, resulting in pressure on the safety of cash flow, so it is worth paying attention to magnify the risk of main business leverage through debt. On the other hand, the profit of the company's restructuring has not yet landed.

It is gratifying that Chunlai in China has formed a benign business cycle and synergy based on the balance between economic and social benefits, strong endogenous growth, brand benefits brought by high-quality schools and geographical advantages in central China. Tamp the foundation for its steady growth.

The coexistence of "danger" and "opportunity" in market-oriented expansion

Education is public, and China has always adhered to educating people-oriented and educating talents for the country. The company started in Henan and gradually expanded to Hubei and Jiangsu. It is the largest private education group in Central China. The number of students in the six schools is 113900, with a six-year compound growth rate of 15 per cent.

In the face of the new stage of the development of private higher education, China has come to give full play to its unique advantages, deliver high-quality educational services, and highlight the competitiveness of high-level private education in all dimensions and fields, such as retaining high-quality students and training excellent teachers.

According to the APP of Zhitong Finance and Economics, Spring in China has created an excellent university culture and educational atmosphere by strengthening the construction of the contingent of teachers and improving the modern university system. Specifically, the company employs more than 6000 teachers, of which more than 60 percent are teachers with middle and senior professional titles, more than 70 percent are teachers with graduate degrees or above, and 1399 are qualified as "double-qualified" teachers. Ten thousand excellent mentors, 53 provincial excellent teachers and 60 provincial civilized teachers were selected. High-level teachers are the key support for its high-quality development.

In addition to adhering to the social benefits of people-oriented education, higher private education can flourish only by taking the market-oriented quality. Under the current pattern of private education, it has become a common practice in the industry to increase the number of students by expanding the territory of schools.

It is not difficult to see that in recent years, through the market-oriented expansion of mergers and acquisitions, China Chunlai has indeed made a big step forward in the private education track, expanding the coverage of students on the basis of expanding the regional territory, but this is only a favorable side.

The way of mergers and acquisitions, although as one of the quickest ways to increase revenue, but also put forward higher requirements for China's spring cash flow. From 2018 to 2022, China's Chunlai current debt continued to soar, from 791 million yuan to 2.884 billion yuan, of which a large proportion was borrowing. As of February 28, 2023, the company's current assets are only 1.136 billion yuan, but the current liabilities are as high as 2.54 billion yuan, and the current liability ratio is 223.59%.

It is worth noting that the profit-making of Chunlai in China continues to advance, and the company's taxation and financial settlement procedures are still in accordance with the original way. If the company applies to turn the school into profit, if the progress is not as expected, it may lead to the risk that the company's dividend can not be transferred.

In addition, after the acceleration of securitization, many problems faced by private education will be examined by more eyes, such as how to achieve both quantity and quality in the spring of China, which is still the concern of the market.

Basic steady growth characteristics of running a school "strong by quality map"

Zhitong Finance APP believes that China's strong fundamental growth since spring has provided a strong source of strength for its steady expansion. Coupled with the continuous improvement of the capital structure, the company's future expansion will be more solid.

In recent years, China has achieved a double increase in revenue profitability in the spring. From 2018 to 2022, the company's revenue increased from 488 million yuan to 1.309 billion yuan, with a compound annual growth rate of 21.8 percent. In the same period, the net profit of homing increased from 119 million yuan to 552 million yuan, with an annual compound growth rate of 30.9 percent. The growth on the profit side is even better than that on the revenue side. This reflects from the side, under the scale effect of M & A, the operating efficiency of the company continues to improve.

More importantly, despite the rising debt, the company's overall financing costs have been effectively controlled, and the group's average financing costs last year have fallen by 3% to 4% compared with the listing period. The company's paper cash balance at the end of 2022 is 630 million, and the credit line of various unused financial institutions is about 2.1 billion, which can fully cover about 1.4 times of its interest-bearing liabilities and fully guarantee the short-term healthy operation and long-term development of Chunlai in China.

In addition, under the policy guidance, the profitability of the conversion of relevant private colleges and universities in Henan, Hubei and Jiangsu provinces is still being promoted. Chunlai will comply with the policy and steadily promote the profitability of the transformation.

In the view of Zhitong Finance and Economics APP, the ultimate thing for private education is how to return to the most real nature of education through its own advantages, which is also the core factor to increase the right of self-discourse in the education market and the secondary market.

Chinese Spring has always paid attention to the quality of running a school, balanced the needs of social development, market demand and the bearing capacity of the school in terms of specialty setting, and built a number of advantageous majors in line with the orientation of running a school with characteristics. In 2021, two colleges and universities of the company were approved as project construction units with master's degrees, indicating that their level of running a school was recognized.

Specifically, its colleges and universities have developed steadily and the curriculum is perfect. For example, Shangqiu College has been approved to offer double-degree courses in marketing, Chinese language and literature, economics, human resource management and international economy and trade. Hubei Health Vocational College has set up 19 majors, including three departments and two departments, in line with the strategic development needs of the country's "healthy China 2030" and "cause and Industry for the elderly".

At the same time, China Chunlai uses its own resources to promote the deep integration of schools and enterprises, promote the landing of practice, and enrich the learning experience. For example, Shangqiu College has set up an off-campus practical education base for garden and radio and television choreographers, and Anyang College has set up an off-campus practical education base for college students in computer science and technology and drone application technology. strengthen the construction of practical education platform. It is reported that the company cooperates with more than 700 leading enterprises to build schools and enterprises. by the end of February 2023, there were a total of 720 off-campus internship bases, providing a total of more than 7500 jobs.

Close cooperation between schools and enterprises can train talents who are more suitable for new business type and the development of new industries. Employers' satisfaction with graduates and talents as well as the degree of coincidence between graduates and social needs will be very high.

Under the industry-university-research cooperation, China Chunlai can give full play to the resource advantages of "education + industry", make the school students more competitive in the market, and set up a specialty setting and training program that is truly seamless with the industrial chain. cultivate cross-disciplinary and interdisciplinary innovative talents, so as to directly promote the development of productive forces, serve the social economy and lead industrial innovation.

More importantly, the in-depth implementation of policies and measures such as "school-enterprise deep cooperation" and "regional industry-education integration" will provide a broader space and hinterland for social capital to optimize the global layout of vocational education based on the logic of industrial chain. In this regard, the coming of Spring in China still has a lot to do in the direction of vocational education.

In the spring of China, we will strengthen the cultivation of applied talents and empower the development of the education industry. The company takes the initiative to meet the needs of national and regional economic and social development, constantly optimize discipline construction and layout, improve the quality of scientific research, personnel training and the ability to serve local economic and social development, and pave the way for high-quality employment for students. According to the financial report, in the 2021 and 2022 academic year, the employment rate of Shangqiu College graduates was as high as 79.12%; that of Anyang College graduates was as high as 78.96%; that of Shangqiu College graduates was as high as 75.88%; and that of Jingzhou College graduates was as high as 72.27%.

To sum up, Chunlai in China adheres to the original intention of educating people, promotes the good reputation of Chunlai brand with excellent school quality, and coexists "danger" and "opportunity" in the market-oriented expansion. Looking to the future, the blessing of capital will make China's spring forward more stable, constantly enhance its teaching achievements and the national needs of regional development, and enhance the ability and contribution to serve the national and social development.