Fenbi is an excellent non-academic vocational education and training service provider in China, and is an enterprise committed to providing high-quality non-academic vocational education and training services through technological innovation. On February 26, Chalk issued a positive profit warning, expecting the group to record a total revenue of no less than RMB3 billion by FY2023; Adjusted net profit was recorded of not less than RMB4200 million yuan, compared with 191.5 billion yuan, a year-on-year increase of 1193%；The net profit shall not be less than RMB16.6 billion yuan, a significant year-on-year turnaround, profitability continued to increase.
The announcement pointed out that the significant improvement in the group's financial performance was mainly due to: (1) strong market demand, stable advantages of first-class course products, and a steady increase in the unit price of small class students by virtue of the online and offline integration of the small-class teaching mode, and the group's brand power and students' reputation continued to strengthen; (2) The efficient advantages of online technical assistance are further reflected, the cost structure is continuously optimized, the teaching efficiency of teachers is greatly improved by artificial intelligence and other advanced technologies, and the continuous deepening of the online and offline integration teaching mode has improved the standardization of course products, ensured the unity of teaching quality, and reduced the demand for offline fixed teaching venues; Operational efficiency continued to be optimized, the three expenses remained stable, and the overall gross profit margin and net profit margin for the year ended December 31, 2023 are expected to increase significantly compared with the previous fiscal year.
Since its listing in January 2023, Chalk's operating performance has continued to improve and its development momentum is strong. The company's profitability showed a further release trend, and the growth of various business segments was steady. According to public information, Zhang Xiaolong, CEO of Chalbi, said in an internal speech recently that the company's next development strategy is still to be stable, adhere to technological innovation and content research and development as the core, sort out the process system, and do a good job in products and good brands. Wei Liang, president of Chalk, said that in 2023, the company has laid a solid foundation for development, and will continue to make progress while maintaining stability and focus on growth.
As an important brand in the industry, the business of Chalk will directly benefit from the overall development of the industry and the general trend of online, and further expand the online business development space with strong product strength. At the same time, Chalk's offline products are rapidly iterating into the OMO model, fully solving the pain points of low utilization rate of offline teachers and venues under the traditional model, continuously strengthening market differentiation, and gradually showing the channel synergy effect of leading the industry. It is reported that in 2023, the company will further improve the construction of the teacher system, the overall utilization rate of class time will increase, the teaching quality will increase steadily, the product coverage will be more comprehensive, the overall complaint rate will remain low, and the word of mouth moat will be built.
In 2023, Chalk has made significant progress in technological exploration in the field of artificial intelligence. It is reported that the intelligent correction system independently developed by Chalk continues to lead the industry, and the functions of AI interview comments, questions and analysis have been launched to assist daily work, with a high availability rate, empowering teachers' work processes and greatly improving the efficiency of teaching and research. In addition, Chalbi continues to optimize and iterate on core systems such as the fully self-developed live broadcast and playback system, question bank and mock test system, taking into account high performance, security and stability. It has been revealed that Chalk also has many new technology products in research and development, such as AI Q&A large models in open fields, which are worth looking forward to.
According to the data, in 2023, the data indicators of the chalk app will maintain strong growth, with the peak of new users, daily active users, and monthly active users reaching new highs throughout the year, and the number of question banks and live broadcast users setting new records. In the context of steady growth in market demand, the company still has the basis for further increase in revenue by virtue of the competitive advantages of chalk's products, brands and reputation, and there is still room for continuous optimization in terms of operational efficiency and profit margin.
Recently, a number of institutions have released research reports, optimistic about the follow-up business growth of chalk. Huatai ** believes that the popularity of the public examination continues, the scale of chalk users, brand reputation, research and development capabilities, and operational efficiency are all industry-leading, and the profit potential of offline long-term class income is expected, and the company's market share is expected to gradually increase and maintain the "** rating." Guotai Junan** said in the research report that Chalk is actively investing in AI research and development based on the deep accumulation of Internet + technology genes, and the collaborative growth of OMO is worth looking forward to, covering and giving Chalk an "overweight" rating for the first time. China Securities Construction Investment Co., Ltd. expects that Chalk will be based on the scale and traffic advantages of the online market, and the unit price, number of users, and profit margin will have room for continuous growth.
Since its establishment in 2015, Chalbi has always adhered to the "people-oriented" education concept, and in the future, Chalbi will continue to make efforts in the field of education, increase investment in scientific research, continue to carry out product and technological innovation, build a high-quality teaching team in the industry, and provide users with higher quality teaching services.