2020-09-27

Luo Zhenyu is going to be listed on the GEM! Thinking Creation made a net profit of 120 million last year, with a gross profit margin of 44%, and”getting” over 5 million paying users

By yqqlm yqqlm

Obtained App’s operating subject thinking creation formally submitted the GEM listing prospectus on September 25. The company plans to publicly issue 10 million shares (before exercising the over-allotment option) and raise 1.037 billion yuan.

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Since Creation was established in 2014 by the former CCTV host Luo Zhenyu was founded. Luo Zhenyu holds 46.61%of the voting rights in total and is the actual controller of the company. Mind Creation is engaged in the payment business of life-long education knowledge. As of the end of March, Mind Creation’s Luo Ji Mind WeChat account has more than 12 million followers, has more than 3.5 million monthly active users of the App, and has accumulated 5.63 million paid users. The company has achieved profitability. In 2019, its revenue reached 628 million yuan, gross profit margin was 44.84%, and net profit attributable to the parent was 117 million yuan.

It has more than 5 million paid users of App

Education business is a sub-industry formed by the intersection of Internet information technology industry, cultural communication industry and education industry. The main services provided by the company include online knowledge services, offline knowledge services, e-commerce and others. In the first quarter of 2020, online and offline knowledge services accounted for nearly 90%of revenue.

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The company launched the”Friends of Time” New Year’s Eve speech in 2015. As of March 31, the company has held 5 New Year’s Eve speeches. The total number of participants exceeded 40,000.

In 2016, the company launched an App. As of March 31 this year, the number of App’s monthly active users (MAU) exceeded 3.5 million, the cumulative number of activated users exceeded 37.46 million, and the cumulative number of registered users reached 21.35 million. In China Apple App Store, the main Android application market for books, educational software download rankings continued to lead.

The prospectus shows that as of the end of 2019, the App had accumulated 5,354,800 paying users, and the ARPPU of paying users rose from 203.81 yuan in 2017 to 231.93 yuan.

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The company launched”Get University” in 2018 to provide professionals with innovative learning methods of online course learning, offline practice conversion and social networking. As of March 31, the offline campus of”Get University” has covered 11 cities in China, opened 85 classes, and admitted more than 7,000 students.

In addition, the company has also developed online knowledge services, accumulated teachers and copyrighted content, and engaged in book publishing. As of March 31, it had produced 26 self-owned copyrighted books and sold”get readers””16,000 units.

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Since Creation has made a profit. From 2017 to 2019 and the first quarter of 2020 (referred to as the”reporting period”), the company’s operating income is 556 million yuan, 738 million yuan, 628 million yuan and 192 million yuan, gross profit margins were 46%, 43.19%, 44.84%, 42.01%, and net profits attributable to the parent were 61.877 million yuan, 53.297 million yuan, 117 million yuan, 13.2782 million yuan, the company’s R&D investment accounted for 9.68%, 12.75%, 17.94%, 14.76%of revenue.

Won the favor of capital Zhang Quanling also joined

Luo Zhenyu is the founder of Thinking Creation. He is also the controlling shareholder, actual controller and chairman of the company. As of the prospectus disclosure, Luo Zhenyu directly and indirectly holds 46.6144%of the company’s voting rights. Among them, Mr. Luo Zhenyu directly holds 30.3537%of the shares and indirectly controls 16.2607%of the shares through Jie Huanggang.

According to the prospectus, Luo Zhenyu, born in 1973, graduated from Huazhong University of Science and Technology in 1994 with a bachelor’s degree, and graduated with a Ph.D. from Communication University of China in 2008, both majoring in journalism. Before founding Mind Creation, he served as a teacher at Beijing Normal University, a producer at CCTV, and the chief planner of the”China Business News” column.

As of the disclosure in the prospectus, Mind Creations has won the China Cultural Industry Investment Fund (hereinafter referred to as”Cultural Industry Fund”, holding 7.5%), Sequoia Hexin (holding 5.85%), Liu Chuanzhi, Yu Minhong and other partners The establishment of investment institutions like Wujia (holding 5.23%) and other capital favors.

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The former famous CCTV host Zhang Quanling has also joined Kude Youth, a subsidiary of Mind Creations, and serves as the chairman of the board. Currently, Kude The decision-making power of Juvenile’s daily business operations has been actually enjoyed by Zhang Quanling and his team, and Mind Creations no longer participates in the daily business operations of Kude Youth. In October 2019, Kude Youth completed a new round of external financing, and Mind Creation’s shareholding in Kude Youth dropped to 34.59%.

Strategic thinking:from”demographic dividend” to”talent dividend”

In the prospectus At the beginning of the main body of the article, thinking creation spent a lot of pen and ink describing the company’s strategic thinking on lifelong education.

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For example, they said, after completing 16 years of schooling, how can a person face at least 50 years of socialization challenges? In completing the work, how to face the challenges of diversified and cutting-edge knowledge? In the process of life development, how do you face the challenge of changing your identity and how to become a qualified parent? How to be a leader? How to become a rational investor?

Mind Creation believes that this is a vast market area to be explored.

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There are also many competitors in the lifelong education industry. Mind Creations said that its main competitors include Zhihu, Fan Dengshu, Ba Jiuling (Wu Xiaobo Channel), Chaos University, Palm Reading Technology, Zhong Gong Education, Entrepreneurship Dark Horse, Dou Shen Education, etc.

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According to iResearch, Mind Creation and Zhihu belong to the first echelon of China’s lifelong education industry. In 2019, from the calculation of general education related income, the company and Zhihu belong to the first echelon of the market, and the dark horse of entrepreneurship belongs to the second echelon.

However, thinking education believes that there are still three difficulties that need to be overcome in the current lifelong education industry:Where do high-quality educational resources come from, how to stimulate continuous learning motivation, and how to ensure the effect of knowledge transformation.

Thinking creation has also made its own exploration. In order to enhance learning motivation, the company integrated the learning behavior of online courses into the evaluation system of colleges and universities. According to reports, Mind Creation has reached a credit recognition cooperation with East China Normal University and was admitted as a learner of adult education at East China Normal University. Get the”App” to study designated courses, you can exempt credits and reduce tuition.

In addition, the company cooperates with Cheung Kong Graduate School of Business to provide students with enrollment conditions and scholarship discounts when they sign up for the Cheung Kong Graduate School of Business Chinese/Finance MBA program. Under the premise of meeting the application requirements, learners can directly enter the interview process if they get more than 650 credits; after admission, learners can receive a scholarship of 80,000 yuan, and the corresponding tuition will be deducted at the time of admission.

For the listing on the GEM, Thinking Creation stated that it plans to raise about 1.037 billion yuan of funds, which will be used for the company’s main business-related project construction to improve the company’s online and offline knowledge service production, research and development And service capabilities, and realize the construction of a new generation of intelligent and systematic knowledge search engine and service software, provide users with online and offline knowledge service business, and continuously enhance the company’s core competitiveness.

Editor:Wang Zhuying