Vtron Shares(002308) recently released its 2019 financial report, showing revenue of 1.102 billion yuan, a decrease of 5.79% year-on-year. The net profit attributable to shareholders of listed companies was 1.23 billion yuan, which turned from profit to loss year-on-year. The company's net cash flow from operating activities was 180 million yuan, an increase of 15.54% year-on-year increase.

Founded in 2002, Vtron Shares tapped into the education industry by acquiring CradleEdu and Hongying Education. Vtron also successively established several children's education brands like Korr Education and Dingqi Education.

According to the financial report, the sharp decline in Vtron's net profit was mainly because the Group has accrued an impairment loss of 1.2 billion for the acquisition of Hongying Education, CradleEdu, Dingqi Education and its subsidiaries. From the perspective of business composition, the revenue decline in its kids' growth platform business also led to the overall decrease in Vtron Shares's revenue. Additionally, the report suggests that changing policies also affect its business growth and add uncertainty to the kindergarten market environment.

Vtron indicates that in the future, the company will achieve the "digitalization" of traditional curriculum system through research and by adopting "digitalization, Platformization, productization" strategy. Also, the company will further develop the business for kids' growth through its extensive resources.