Sanle Youhe Capital: The worst start in the history of education investment. Can 2020 go low and go high?

2019 has already been so difficult. Both the equity market's fundraising and investment volume have dropped. The overall education investment has shrunk by 60% from the highest peak. It is generally regarded by the industry as the "education capital winter". The sudden epidemic in 2020 caught education and training institutions by surprise and fell into an ice cave. Although the epidemic has acted as a catalyst to significantly increase the market penetration of online education, a large number of education and training institutions have also suffered heavy losses.
　　
　　On the positive side, in the context of "patriotic house", "postponed school opening", and "school suspension without suspension", the sudden new crown epidemic has brought unexpected outbreaks to sub-industries such as online education and K-12 tutoring. , Which also greatly improves the bullish expectations of other sub-tracks such as vocational education, education technology, education informatization, and quality education.
　　
　　However, we cannot generalize. The strong performance of these online education stocks just reflects the overall downturn in the education industry.
　　
　　How to counterattack a bad start? Can we drive low and go high in 2020? As an investment expert in the field of education, Sanle Youhe Industry Fund is full of confidence in the steady development of China’s economy and the steady progress of China’s education industry. This confidence comes from the objective reality that "the fundamentals of China’s economy have not undergone profound changes" and also from us Deep understanding of China's education industry.
　　
　　Sanle Youhe Capital believes that from the perspective of industry development trends, the fundamentals of China's education industry are still improving. The "ballast stone" of the education industry is as stable as Mount Tai, and the people's demand for quality education is still huge. The short-term freezing point is not simply a blow to the development of the education industry, but more of a readjustment of the industry. We can do more comprehensive scheduling and shaping coordination from the two aspects of "recognizing the general trend and reacting immediately."
　　
　　First of all: Recognize the general trend, see the development trend of the education industry, and grasp the initiative of development
　　
　　Many people say that the epidemic has completely suspended offline education and catalyzed the rapid increase in online education penetration. So, in the future development, should we all switch to online education?
　　
　　Nowadays, many organizations are considering shifting their business to online, believing that they cannot survive without transforming to online. It is believed that the epidemic has prompted the development of online education. In fact, with the development of 5G and emerging technologies, there is an irreversible trend in the development of online education. The epidemic is only a catalyst, and its essence has not changed.
　　
　　But this does not mean that the education industry is suitable for transformation online, especially those STEAM education that focuses on practice. How do swimming, dancing, painting, and music go to the front? These are things we need to think about, not blindly obeying.
　　
　　This is the beginning of 2020. Educational practitioners may be pessimistic and go to hospital in a hurry. In fact, it is completely unnecessary.
　　
　　With the continuous increase of urbanization rate and the continuous expansion of the target user group for scientific education, China’s education industry is strongly supported by factors such as the number of newborns, the improvement of consumption levels, and the improvement of educational concepts. The development prospects are very good. broad.
　　
　　In-depth understanding of industry trends and full understanding of customer needs can make accurate judgments on the market and grasp the initiative of development.
　　
　　Second: respond immediately, seize new opportunities at the turning point in education, and achieve a win-win situation.
　　
　　When encountering difficulties, we must follow the rhythm. Doing the right thing is more important than doing more.
　　
　　The first is re-listing: you can appropriately cut down negative cash flow or business that has nothing to do with the main business; inventory customer refunds; fully understand the existing problems of the organization; try to make use of the content advantages to increase user retention; the
　　
　　second is adjustment: combination External and internal forces, to achieve breakthroughs in the industry, through active self-improvement, integration of high-quality educational resources, strong alliances to overcome the current difficulties, while seeking a new direction for long-term development.
　　
　　From the perspective of industry development pattern, after the epidemic, industry differentiation will further intensify, and the industry may be shuffled ahead of schedule. In the process of differentiation and reshuffle, new growth points and new investment opportunities will also emerge.
　　
　　In the past few years when education investment and financing have "turned from prosperity to decline", it is difficult for us to beg the industry to return to its former prosperity, but we have every reason to believe that the education industry and industry investment and financing in 2020 will also be as the epidemic ends. Stabilization and recovery, even if it is difficult to reach the height of the past few years, it is still worth looking forward to!
　　
　　For example, recently, Sanle Youhe Capital has completed the first batch of financial investment plans for a number of domestic education and training institutions. This round of financial investment of nearly 100 million yuan will be used for the integration and optimization of high-quality education resources, the establishment of OMO education models and strategies upgrade. Next, Sanle Youhe Education will continue to focus on the quality education track, acquire and invest in high-quality education brands, continue to enrich the education product line, and accelerate the development of the education industry.
　　
　　As Dr. Ren Zeping said: Sometimes dreams are not only believed because of seeing them, but because of believing.