Recently, Shanghai Excellence Ruixin Digital Technology Co., Ltd. (hereinafter referred to as "Excellence Ruixin") submitted a prospectus to be listed on the main board of the Hong Kong Stock Exchange, with ABCI as the sole sponsor.
According to the prospectus, Excellence Ruixin is a provider of digital solutions for university teaching, committed to the development, delivery and operation of digital education content, digital teaching scene services and products in colleges and universities, and its products and services cover teaching, learning, practice, examination, evaluation, management and other aspects.
Tianyancha App shows that Excellence Ruixin was established in April 2008 and has invested in a total of 12 companies. At present, the registered capital of the company is 60 million yuan, the legal representative is Xi Puzhao, and the shareholders include Wang Hui, Ge Xin, Sina, Baidu, Datai Venture Capital, etc.
According to Frost & Sullivan, in 2023, Excellence ranked second among all companies in China's higher education teaching digitalization market by revenue, with a market share of 3.4%, and ranked first among all companies in China's higher education digital teaching content production market by revenue, with a market share of 6.2%.
Excellence Ruixin said in the prospectus that it has created and launched more than 27,000 digital courses, and its services and products cover 12 disciplines and 92 majors recognized by the Ministry of Education. At present, the company's 513 digital courses have been awarded gold courses in the first and second batches of national first-class undergraduate courses recognized by the Ministry of Education and the selection of national online excellent courses for vocational education.
In 2021, 2022 and 2023, the revenue of Excellence Ruixin will be 417 million yuan, 400 million yuan and 653 million yuan respectively, the gross profit will be 213 million yuan, 177 million yuan and 396 million yuan respectively, and the profit attributable to the company's owners will be 33.74 million yuan, -59.11 million yuan and 81.421 million yuan respectively.
It is not difficult to see that the performance of Excellence Ruixin has fluctuated, among which the revenue in 2022 has declined, while in 2023 it has achieved significant growth. In addition, the company also recorded a certain loss in 2022, and in 2023, it rebounded rapidly and achieved large-scale profitability again.
Correspondingly, the gross profit margin of Excellence Ruixin also fluctuated. During the reporting period, the company's gross profit margin was 51.1%, 44.1% and 60.7% respectively, of which in 2022 it decreased by 7 percentage points from the previous year to 44.1%, and in 2023, it jumped by 16.6 percentage points to 60.7%.
As of December 31, 2023, Excellence Ruixin's cash and cash equivalents were $142 million, a decrease of $64.528 million from $206 million at the end of 2022. Beduo Finance learned that the company's operating cash flow in 2023 will be positive, that is, 10.914 million yuan, and the cash used in investment activities and financing activities will be 57.807 million yuan and 17.635 million yuan respectively, all of which are outflow.
Since its establishment, Excellence Ruixin has received multiple rounds of financing, and investors include Sina, Baidu, etc. According to the prospectus, the company received 10 million yuan in May 2015 Pre-A round of financing, in July of the same year received 50 million yuan in Series A financing, in 2016, completed 350 million yuan in Series B financing, and in 2020 received 235 million yuan in Series C financing.
However, there are also shareholders who choose to reduce their holdings and sell the equity of Excellence Ruixin. In September 2016, Wang Hui transferred part of the company's equity to Lou Ming, an independent third party, and "cashed out" 6 million yuan. Among them, Wang Hui is also the executive director, chairman and controlling shareholder of Excellence Ruixin.
In 2020, Datai Yueda transferred part of its equity to Zhongye Zhiyuan and Guangzhou Chengheng, and "cashed out" 24.5 million yuan. In December 2020, Xi Puzhao and Yang Qiushi transferred part of their shares to Shanghai Changse, Zhu Dapeng, Ren Yaozhang, Sun Yi, Feng Jingfen, etc., totaling about 8 million yuan.
In addition, in April 2024, Zhu Dapeng's equity in Excellence Ruixin has been transferred to Xi Puzhao and Yang Qiushi, with a total consideration of about 5.3456 million yuan. During the same period, Wang Hui and Ge Xin's son Wang Yunning obtained 3 million shares of Wang Hui and 3 million shares of Ge Xin at zero consideration, becoming a shareholder of Excellence Ruixin.
Before the IPO, Wang Hui held 23.92% of the shares, Ge Xin held 14.52% of the shares, Sina's Jinzhuo Hengbang held 17.89% of the shares, Baidu's Bairuixiang Venture Capital held 10.06% of the shares, Wang Yunning held 10.00% of the shares, and Datai Venture Capital held 2.20% and 1.21% of the shares respectively through Datai Yueda and Yueda Taihe.