Radar Finance and Economics wen | Yuan Fen, ed., |The deep sea
Recently, Chalk Technology filed a prospectus on the Hong Kong Stock Exchange to launch a listing plan at a valuation of US$3 billion. It is reported that as a veteran institution in the industry, Chalk Technology has won the largest single financing in the industry. The sprint IPO to Hong Kong is also backed by many star shareholders.
According to the prospectus, Chalk Technology is China's leading vocational education platform, and the revenue mainly comes from its training services, but also a small part from the sales of internally developed teaching materials and tutoring materials, covering recruitment examinations, teacher recruitment examination training, as well as examination and research, accounting, legal examination, construction certificate, open courses, level 4 and 6 training, etc.
According to the Frost & Sullivan report, the market size of China's vocational education and training industry is accelerating, and the market size of China's non-degree vocational education and training industry (including vocational examination training and vocational education and training) will reach 202.6 billion yuan in 2020 and 344.5 billion yuan in 2026.
In the favorable policies and the accelerated expansion of the scale of the industry market, Chalk Technology has also gradually expanded its business direction from the original focus on online to offline, and launched the online and offline dual-channel layout. In May 2020, Chalk Technology began to launch a wide range of offline training to expand its target market and serve a wider range of student groups.
From the perspective of user data, as of December 31, 2021, the online platform of Chalk Technology has accumulated 45.3 million online payers; the average monthly active users in 2020 and 2021 are about 4.7 million and about 6.5 million, respectively, an increase of 62% and 38% year-on-year. Offline business has covered more than 260 cities in 31 provinces, autonomous regions and municipalities directly under the Central Government in China, with a total of more than 1.7 million offline payments.
It is worth mentioning that with the accumulation of past online business, chalk technology's online and offline business can achieve mutual synergy. According to the prospectus, in 2021, about 67.5% of the paid students of offline courses will be converted from the paying users of online services. At the same time, in terms of the number of paying trips in 2020, Chalk ranks first in China's vocational examination training industry with 8.8 million paid trips, exceeding the size of the latter four market participants combined.
Some insiders said that with the continuous release of vocational education policies, the vocational education industry will usher in more development space. With the blessing of massive user base and high-quality products and services, chalk technology will be favored by more users and usher in greater development space.