Breaking Down Offcn Education Technology Co., Ltd. Financial Health: Key Insights for Investors

From its founding by Peking University alumnus Li Yongxin in 1999 and an early pivot to civil service exam training with the 2002 launch of Zhonggongwang, Offcn Education Technology Co., Ltd. (SZSE: 002607) has grown into a national education powerhouse: reported 2017 revenue of 6.66 billion yuan with net income of 73.45 million yuan, a nationwide network that included 1,508 vocational training institutions by 2021, and a digital footprint exceeding 15 million registered users as of June 2023; today the publicly listed company combines a mixed ownership base led by founder Li, significant institutional and employee shareholdings, heavy investment in innovation (about 500 million yuan in R&D in 2023), a teaching and R&D force numbering in the thousands, diversified revenue from course fees, consulting and edtech products, and a roughly 3.5% share of China's online education market-making its mission to expand vocational access and public-service exam preparation a financially scaled, tech-driven operation that reverberates across more than 300 prefecture-level cities.

Offcn Education Technology Co., Ltd. (002607.SZ): Intro

• Founded in 1999 by Li Yongxin, a Peking University graduate from the Department of Political Science and Public Administration.
• Initial venture named 'Xinxing Weiye' pivoted in 2000 toward civil service exam training after early-market realization and demand for public-service preparation.
• In 2002 launched 'Zhonggongwang,' an online platform focused on civil service exam preparation, marking Offcn's entry into online education.
• By 2003 the 'Zhonggong Education' brand was introduced, consolidating Offcn's position in vocational education and training.

• Publicly listed company on the Shenzhen Stock Exchange under ticker 002607.SZ, with a mixed ownership structure including the founder's controlling interests and institutional/public investors.
• Corporate governance aligned with public-company disclosure requirements; strategic decisions influenced by market positioning in vocational and public-service exam training sectors.

• Mission: provide vocational and public-service exam training that improves employability and public-service talent supply nationwide.
• Vision and core values are detailed in the company's public guidance: Mission Statement, Vision, & Core Values (2026) of Offcn Education Technology Co., Ltd.

• Core service offerings:
  • Public service (civil service) exam training - classroom and online courses, materials and mock exams.
  • Vocational skills training - accredited vocational programs operated via a network of institutions.
  • Online education products - recorded courses, live classes, subscription services and app-based learning.
  • Publishing and educational materials - books, test banks and digital resources.
  • Recruitment and placement-related services, consulting and enterprise training.
• Delivery channels: nationwide classroom network, franchise/partners, proprietary online platforms (e.g., Zhonggongwang), mobile apps and multimedia content distribution.
• Customer segments: exam candidates (public service, judicial, teacher, professional qualifications), vocational students, corporate and governmental clients.

• Primary revenue streams:
  • Tuition and course fees (classroom and online)
  • Sales of study materials and published content
  • Subscription fees and pay-per-course online revenues
  • Franchise and partner network fees from vocational training institutions
  • Corporate/government training contracts and consulting services
• Complementary income: advertising and promotional partnerships, exam-related services and event-based revenues.

Offcn Education Technology Co., Ltd. (002607.SZ): History

• Founded as a test-prep and training services provider, expanded nationally through franchising and proprietary centers.
• Transitioned from predominantly offline classroom delivery to a blended model with online courses, live-streaming, and mobile apps.
• IPO and subsequent capital raises were used to scale content production, technology platforms, and marketing.

• Publicly listed on the Shenzhen Stock Exchange under ticker 002607, giving broad retail and institutional shareholder participation.
• Largest individual shareholder: Li Yongxin - Chairman and General Manager - holding a significant controlling stake (approximately 28.7%), reflecting concentrated founder leadership and strategic influence.
• Institutional investors (domestic and international funds, pension-related investors) together hold roughly 35.0%, providing capital depth and governance oversight.
• Employee stock ownership plans (ESOPs) and management holdings account for about 4.3%, aligning incentives between staff and shareholders.
• Free-float and other public shareholders make up the remaining ~31.0%, ensuring liquidity and market-based valuation discovery.

• Founder-led strategy: Li Yongxin's stake enables continuity in long-term strategy and operational decision-making.
• Institutional oversight: Significant fund holdings bring reporting and governance demands typical of listed education firms.
• Employee alignment: ESOP participation supports retention of teaching and content teams amid sector competition.

Offcn Education Technology Co., Ltd. (002607.SZ): Ownership Structure

• Mission: Enhance accessibility and quality of education, especially vocational and civil-service exam prep, to empower careers.
• Values: Innovation, inclusivity, global engagement, integrity and social responsibility.
• R&D focus: ~500 million yuan invested in research and development in 2023 to integrate AI and big data into learning platforms and course personalization.
• Course breadth: Launched and offered over 1,000 new courses across vocational, professional and lifelong-learning fields in 2023.
• Global reach: Initiated partnerships with 30+ international educational institutions to facilitate cross-border education exchange.
• Social commitment: Comprehensive vocational training services reflecting a focus on societal service and ethical standards.

• Listed status provides liquidity and broad shareholder base.
• Institutional investors play a key role in governance and capital allocation decisions.
• Management retains operational control to execute mission-driven initiatives.

Offcn Education Technology Co., Ltd. (002607.SZ): Mission and Values

• Offline: a nationwide network of physical learning centers-over 1,000 outlets across more than 300 prefecture-level cities-providing classroom instruction, in-person counseling, simulation exams, and local promotional events.
• Online: synchronous and asynchronous digital courses, mobile learning apps, live classes, recorded lessons, and AI-assisted practice platforms for remote learners.
• Blended offerings: hybrid programs that integrate classroom instruction with online resources, adaptive testing, and teacher-led revision sessions.

• Civil service examination training-core volume driver for registrations and higher-ticket packages.
• Teacher recruitment preparation-structured programs for provincial and municipal teacher qualification exams.
• Vocational and professional skills enhancement-short courses, certificates, and continuing-education modules.
• Ancillary products-printed and digital materials, mock-exam packages, subscription services, and career counseling.

• Geographic reach: >1,000 outlets in >300 prefecture-level cities, supporting strong local penetration and brand recognition.
• Teaching force: over 9,000 teachers deployed across channels to deliver curriculum and live instruction.
• Operational staff: more than 20,000 employees handling course development, sales, marketing, operations, and support.
• R&D and product development: a dedicated R&D team of over 1,600 personnel focused on pedagogy, digital productization, assessment tools, and learning analytics.

• Central content teams develop standardized curricula; regional centers localize and deliver via campus and online channels.
• Digital operations integrate CRM, LMS, mobile apps, and data analytics to track learner progress, personalize recommendations, and optimize marketing conversion.
• Rapid feedback loops from classroom and online assessments feed R&D for iterative course improvements.

• Exam-focused courses (civil service & teacher prep): largest share-often the single biggest contributor in peak years.
• Online subscriptions and digital products: growing share as digital adoption increases.
• Vocational training and corporate deals: stable mid-sized contribution.
• Publishing and ancillary services: smaller but complementary revenue.

• High fixed-cost leverage from digital content-margins improve as online scale increases.
• Seasonality management-exam calendars concentrate revenue; Offcn smooths cash flows via subscriptions and year-round vocational offerings.
• Large teacher pool and regional footprint enable capacity scaling during peak periods without proportional increases in central overhead.

• Number of registered learners and paying conversions per exam cycle.
• Average Revenue Per User (ARPU) by product line-offline vs. online.
• Retention and repeat purchase rates for subscription and vocational customers.
• Utilization rates of offline centers and teacher-hours during peak vs. off-peak months.

Offcn Education Technology Co., Ltd. (002607.SZ): How It Works

• Core customer segments: civil service/job-seekers, teacher recruitment candidates, vocational learners, corporate and institutional clients.
• Delivery channels: proprietary online platforms (PC + mobile), livestreaming classrooms, recorded course libraries, and 320 offline training centers nationwide (networked local tutoring hubs).
• Key product types: subscription/one-off courses, hybrid classroom packages, printed and digital study materials, mock exams, and institutional tech solutions.

• Direct course fees - primary revenue driver: paid exam-prep courses (civil service, teacher recruitment, public institution jobs) and vocational training programs charged per student or package.
• Online services - scalable monetization: recorded courses, memberships, micro-courses and livestream tuition sold via the company's platforms (registered user base >15 million as of June 2023).
• Offline centers - localized revenue and service upsell: 320 physical centers provide face-to-face instruction, diagnostics, and premium tutoring packages.
• Edtech and consulting services - B2B revenue: technology development, platform integration, and consulting for educational institutions and government projects.
• Products and materials - ancillary sales: textbooks, test papers, practice banks and licensed course content sold separately from tuition.

• High gross margin on digital content once developed - recorded courses and question banks scale with low incremental cost per user.
• Higher marginal cost for offline delivery - classroom space, instructors and localized marketing drive variable costs.
• Diversified income mix reduces single-market risk - balancing high-volume, lower-price online offerings with higher-ticket offline and institutional contracts.

• Typical course price ranges (examples): short micro-courses: RMB 100-800; comprehensive exam-prep packages: RMB 1,500-12,000; premium 1:1 tutoring/bootcamps: RMB 8,000-30,000 depending on length and subject.
• Customer acquisition channels: organic search, referral from offline centers, paid digital advertising and partnerships with local governments/institutions.

• Lead generation: digital marketing and offline inquiries drive prospects to the platform or local center.
• Product selection: users choose recorded courses, livestream series, or in-person packages; institutional clients contract consulting or platform services.
• Payment & enrollment: one-off, installment, or membership billing; corporate contracts invoiced per agreement.
• Delivery: content via LMS, livestream classrooms, or in-person teaching; assessment and progress analytics provided through EdTech systems.
• Retention & upsell: mock exams, follow-up advanced courses, and printed/digital materials marketed to existing learners.

• Scale digital user base - leveraging >15M registered users to increase conversion rates and cross-sell higher-value packages.
• Expand institutional services - recurring B2B contracts for platform buildouts and consulting raise revenue predictability.
• Optimize offline footprint - 320 centers act as conversion and premium-service points while enabling local brand presence.

Offcn Education Technology Co., Ltd. (002607.SZ): How It Makes Money

• Paid training and exam prep courses (offline and online) targeted at civil service, teacher qualification, and professional certifications.
• Subscription and membership services for continuous learning and career development content.
• B2B contracts and institutional partnerships delivering customized training solutions.
• Platform services and content licensing leveraging AI-driven personalization and analytics.
• International programs and cross-border course offerings with partner institutions.

• Revenue drivers: high-margin exam-prep products, recurring subscription income, scalable online delivery, and enterprise contracts.
• Competitive edge: AI and big data improve learner outcomes and conversion rates, increasing lifetime customer value.
• Growth levers: expansion into Southeast Asia via international partners, continuous course additions (1,000+ in 2023), and platform monetization.