On November 2nd, Chinese leading vocational education services provider Offcn(002607) stock closed trading at CNY 43.10, an increase of 9.06%. And the company was valued at CNY 265.815 billion, exceeding the market value of TAL Group for the first time. On the same day, TAL was valued at USD 39.560 billion(≈264.641 billion yuan), lagging Offcn and ranking the second among the listed Chinese education companies.
In the Chinese education and training sector, the company with the largest market value has changed twice during the past two decades, which marks the pivots of the whole Chinese society.
From 2006 to 2016, New Oriental ranked first, relying on language training for students going to study abroad since China’s reform and opening up.
From 2017 to 2020, TAL had the largest market value spurred by the burgeoning demand for K-12 after-school tutoring. The expansion of enrollment in colleges and universities nationwide that started in 1999 has brought more opportunities for higher education. Thus, Chinese people were beginning to pursue a bright future by getting good results in the college entrance examination.
In November 2020, Offcn took the top ranking driven by vocational training for college students, such as test preparation for Postgraduate Admission Test, public tendering, and teaching certificates.
Besides, amid the COVID-19 pandemic, China’s healthcare investment has soared. And the development of 5G has brought new demands for IT talents. Offcn has seen the changes and made more efforts in related sectors.
The company currently has more than 40,000 employees, including about 18,100 full-time teachers and 2702 R&D talents. Offcn’s Q3 financial results announced on October 31st show that in the past three quarters of 2020, its cash paid to and for employees increased by 33.25% year-on-year.
As vocational education in China has been accelerated by encouraging policies and a skyrocketing demand in career development and lifelong learning, Offcn is vying for more market shares through increasing its investment in critical elements such as R&D, teaching, market, and services.
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