Strategic transformation most reflects the details and resilience of an enterprise, some quietly fall, some continue to go up against the wind.

Recently, EDU.US 's studio "Oriental selection" bilingual live broadcast has suddenly caught fire, which has once again focused people's attention on educational enterprises. Since the implementation of the "double reduction" policy, live streaming has obviously become one of the roads for the success of New Oriental's strategic transformation. In addition, stock prices have begun to repair valuations through strategic transformation, such as DAO.US and GOTU.US.

On June 10, YQ.US announced its results for the first quarter of 2022: revenue reached 233 million yuan, 11.1% higher than the upper limit of expected guidelines, operating expenses continued to be effectively controlled, and operating expenses decreased significantly to 171 million from 953 million in the same period last year. Adjusted net profit (non-GAAP) was 9.9 million, the second consecutive quarter of earnings on a non-GAAP basis since the company made a profit in the fourth quarter of 2021.

From a technical point of view, at the lowest point on January 24, according to the closing price on March 8, the increase in the first quarter has exceeded 70%, and the trading volume has been gradually magnified. After the rebound, it has been effectively supported in the key position, and the technical aspect has begun to show some performance.

After the transformation, we have made a profit on the basis of non-GAAP for the second consecutive quarter. " Liu Chang, founder and CEO of educational technology, said that in the face of the new needs and opportunities of educational digitization, many regions have issued policies to support high-quality educational resources, and these positive factors will become a new driving force for the future growth of educational science and technology.

Since the beginning of this year, the epidemic has posed a challenge to the development of China's high-quality basic education, and the Ministry of Education has clearly put forward the need to speed up the implementation of China's education digitization strategy. With strong policy support, China's education information market has entered a stage of rapid growth since 2017. It is estimated that the total industry income will reach 527.7 billion yuan in 2022, 613.8 billion yuan in 2024 and more than one trillion yuan in 2030.

Under the background of actively responding to the national "double reduction" policy, educational science and technology has rapidly transformed its on-campus business, which is positioned as a SaaS software service provider focusing on homework and other core teaching application scenarios. On the road of digital upgrading of education in Changpo, educational science and technology is proving itself with its technical strength and service ability.

The transformation is smooth, and the business growth of digital transformation shows its edge.

At the end of 2021, an educational science and technology shut down K12 tutoring business and announced a strategic transformation. On the premise of generating revenue only from the transformed business, the operating income in the first quarter of 2022 reached 233 million yuan, exceeding the previously estimated upper limit of 210 million yuan. And more than 20 times the income after excluding Kmur12 education and training business in the same period last year, growing rapidly. It is proved that after the closure of K12 online teaching and training business, education technology did not fall into a cash flow crisis, quickly find new sources of income, and make a smooth transition.

The revenue end is growing rapidly and unexpected, and the overall operational efficiency is also improving. The company's consolidated gross profit margin in the first quarter of 2022 was 60.7%, an increase of 0.3 percentage points over the same period last year. At the same time, after excluding the equity incentive fees, the proportion of the overall cost of the company continues to decrease. From 186% of Q1 in 2021 to 58.3%, revenue growth, cost-side operational efficiency improvement and cost decline are the root causes of the higher-than-expected results.

In terms of products, this financial quarter, the company officially released the "one teach, one learn" SaaS teaching platform. After ten years of accumulation and in-depth research and development, the company launched the "one teach, one learn" SaaS teaching platform. The goal is to provide digital transformation and upgrading solutions for the education and teaching of primary and secondary schools in China, and take homework big data as the entrance. We have signed contracts with more than 50 companies, including China Electric Technology, Bank of China, Intel China, Kangbang Technology, etc., to jointly create one-stop innovative solutions to support the overall transformation and upgrading of China's basic education digitalization. Based on big data-driven algorithms and content iterations, more targeted and efficient learning programs are developed to help China's basic education transform and upgrade in an all-round way.

According to media reports, a "Minzhi assignment" developed by educational science and technology for Minhang District, Shanghai, based on "one teaching, one learning" technology, is becoming a regular homework platform for primary and secondary school teachers and students in Minhang district. During this year's epidemic, Shanghai helped to "suspend classes without suspending schools" and obtained a case of innovative application of digital transformation and upgrading of education organized and selected by the Shanghai Municipal Education Commission; and in the 43 middle school in Xicheng District, Beijing, the smart pen technology of "one teach, one learn" helped this hutong middle school realize "homework does not go home, answer questions on the spot" in the process of educational digital transformation and upgrading, and teachers also obtained more accurate "class portraits of learning conditions." So far, in Beijing, Shanghai, Jiangsu and other places, there have been cases of "one teaching, one learning", and successfully integrated into the local education, at the same time, the platform has been recognized by the national education departments.

Policy leading, Educational Information Race "Application is King"

At present, the national education system is taking educational informatization as the strategic commanding point of development, using educational informatization to promote the high-quality development of education in our country. Since the beginning of this year, the Ministry of Education has clearly put forward the need to speed up the implementation of China's education digitization strategy. As the opening year of the education digitization strategy, according to incomplete statistics, the education departments of 26 provinces and cities across the country put forward a stage implementation outline, which was included in the government work report. At the same time, governments at all levels shall allocate no less than 8% of the education funds to education information investment. The overall digital transformation of education in China has become an inevitable trend, and the tide of educational digitization in China is coming.

Freezing three feet was not built in a day, and the digital reform of education is by no means achieved overnight. Under the background of double reduction, the epidemic situation not only poses a severe challenge to the development of high-quality education in our country, but also provides a new opportunity. It has become the consensus of educational practitioners to improve classroom effect and students' homework efficiency through digital education practice. As a high-end form of educational informatization, digital education practice not only helps teachers and students improve efficiency and reduce burden, but also effectively promotes the development of educational modernization. In the future, the educational digital reform of "demand traction, application is king, service first" will become a new trend.

According to the data of the prospective Research Institute, the total size of China's education information market has reached 433.5 billion yuan in 2020, with a compound growth rate of 9% in the past five years. In the future, this proportion will continue to increase significantly, and it is estimated that by 2030, the total size of the education information market will break through the trillion mark.

The digitization of education is a contemporary and beneficial cause, and this long slope and snowy track has just begun. with the continuous landing of support policies, how to help school teaching and students' learning scenes improve the efficiency and quality? narrowing the gap between urban and rural education by means of science and technology has become the most urgent problem for education authorities at all levels. in the face of the advent of the new wave of digital era, educational science and technology has been accumulated for a long time. I hope that in the future, I will ride the wind and waves in the cause of education and go up against the wind.