On June 12, China Eastern Education was listed in Hong Kong. This senior skill training company that witnessed China’s 30-year vocational education has ushered in a “highlight moment” on behalf of the skill training company under the dual advantages of policy and market environment. As early as the end of 2018, China’s vocational education sector began to gradually emerge in the capital market. In 2019, a number of favorable policies were introduced to continuously increase vocational education. The road to capitalization of vocational skills training was ignited at this point, which was both unexpected and seemingly reasonable.
Chinese vocational education can be divided into two categories: academic vocational education with an academic diploma and non-academic vocational education with a qualification certificate. Prior to 2018, vocational education landing in the capital market, especially the Hong Kong stock market, was basically academic education. Since the end of 2018, non-degree vocational education has gradually become a “market rookie.”
Compared with academic vocational education, the audience of non-degree vocational education is more extensive. The industry span covers the two major industries of manufacturing and service industries, aged from 15 to 45 years old, and spans 30 years old. From cooking to computer involves all aspects of people’s living standards. Because of this, the market for non-degree vocational education service providers is broader and the opportunities are more diverse.
“Post-90s” is not just a generation
Back in the 1990s, a time full of opportunities and challenges. In 1990, the Shanghai Stock Exchange and the Shenzhen Stock Exchange were established one after another. During the same period, the Internet tide entered China. In 1994, China officially connected to the Internet. In the following years, Netease, Sohu, Tencent, Sina, Ali and Baidu was established one after another.
However, during this period, China’s employment structure is far from market changes. According to the relevant data of the National Bureau of Statistics, from 1990 to 2000, China’s employed population increased from 170 million to 230 million, an increase of 35.85%. Among them, the number of rural employees has always accounted for more than 67%, and it is for this reason that rural employees have become the main component of China’s labor market during this period.
During this period, China’s “restaurant” was still a kind of “luxury”, and learning computer was still a kind of “advance”. Today, 30 years later, a series of catering groups went public, computers became the standard office, and mobile Internet developed rapidly. As a pioneer enterprise of domestic private vocational education, China Orient Education as early as 1988 seized the market opportunity and entered the vocational education and training sector. With the growth of the “post-90s” generation, New Oriental Cuisine quickly entered thousands of households. Xinhua Computer has also become a “choice” to obtain employment opportunities. Aircraft carrier-level enterprises of vocational skills training quietly came out during this period.
Entering the 21st century, with the ringing of the millennium bell, the Chinese economy has entered a new stage. Before 2006, China’s car ownership was less than 5,000, but by 2018 China’s car ownership reached 240 million, an increase of nearly 5 times. Along with this is the rapid increase in demand for car services. According to Frost & Sullivan’s statistics, the total income of vocational skills education with car services alone will reach 3.8 billion yuan in 2022. As early as 2005, China Eastern Education set up the automotive service field and established Wantong Automotive Education, which can be said to have witnessed the changes of China’s automotive service industry.
30-year-old vocational education is still full of vitality
In the process of the continuous development of China’s economy, vocational education has affected all aspects of people’s lives in time and time again. With 30 years of changes, seizing key opportunities at a critical moment is both a talent and an ability. China Eastern Education undoubtedly maximizes this ability.
From the 1990s, seizing the huge opportunities of consumption upgrading and the Internet, the establishment of the two main business brands of New Oriental Cooking and Xinhua Computer; by 2005, insight into the opportunities of the automotive service industry, the layout of automotive training in advance, and the establishment of Wantong Auto; After discovering the potential needs of China’s urbanization process, we have successively acquired and established Huaxin Zhiyuan, which specializes in DT technology training, Omitch, Western food and Western training, and high-end customized short-term training delicious school, China Oriental Education finally officially in 2019 Landing on the capital market has unveiled its mysterious veil. Let the market see the vitality and potential of China’s vocational skills training.
According to Frost & Sullivan’s statistics, based on the average number of trainees and income generated in 2017, China Eastern Education has a market share of approximately 1.7% and 2.5%, respectively, making it China’s largest provider of vocational skills education. In the three major markets of cooking technology, information technology and Internet technology, and car service, based on the average number of trainees, China Eastern Education ranked first in various markets.
In terms of professional settings, China Orient Education still leads the development of the industry and the progress of talents. At present, in terms of cooking technology, in addition to the traditional eight major cuisine courses, China Eastern Education has added more modern catering courses including Chinese medicinal meals, baked desserts, Western cuisine, fine bartending, coffee drinks and more. In the rapid development of Internet technology and business, VR + film and television animation designers, VR + environmental art designers, UI visual designers, e-commerce engineers, Internet application engineers, e-sports sports and management have become information technology and Internet technology. “Sweet and sour” in the business. Of course, the automotive service field is also changing, and the huge energy brought by new energy vehicles will also be released in the development of China Eastern Education.
In the future, vocational education will be more “Eastern”
In the rapid development of China’s economy, the potential for years of skills training industry development is still expected. According to Frost & Sullivan’s statistics, from 2013 to 2017, China’s total vocational education income increased from 63 billion to 98 billion, with a compound annual growth rate of 11.7%. And from 2017 to 2022, the compound annual growth rate of the total income of skills education will still maintain a growth rate of about 10.5%, reaching 161.4 billion yuan in 2022. China Oriental Education, which already has a strong brand and skills advantage in the field of vocational skills training, has never stopped. In the future, China Orient Education will further build a vocational education group with brand internationalization and strategic innovation to strengthen its industry leadership and reputation.
As of May 20, 2019, China Eastern Education operated schools and centers reached 168, including 52 New Oriental Cooking, 24 Xinhua Computers, 27 Wantong Automobiles, 24 schools under Omitch’s jurisdiction, and Huaxin Zhiyuan DT There are 22 schools under the jurisdiction of the talent training base, and 19 private customized cooking experience centers under the Delicious Academy.
China Orient Education plans to establish business networks in all provincial capital cities in China within 1-3 years, and build five regional centers including Beijing, Shanghai, Guangdong, Chengdu and Xi’an. In 2019-2021, China Eastern Education plans to establish 34 cooking technology schools, 8 information and Internet technology schools, 9 auto service schools, and 6 private custom cooking experience centers operated by the delicious schools.
China Orient Education will also respond to industry trends and market demands with a wealth of courses. Based on market demand trends and future trends, it will conduct market research on the emerging industry areas involved in the new school, tailor courses and content for students of different backgrounds, and continuously improve The actual combat training model and teaching equipment. Further develop the business department and subordinate research centers, establish research funds to ensure the improvement of teaching and research capabilities; further strengthen and expand existing partnerships; actively expand and improve training methods and facilities
The development of vocational education has a long way to go, and Wu Wei, chairman and executive director of China Eastern Education, said: In a diverse social environment, vocational education embodies true fair education, “letting everyone have a chance to win life.” Talents must be diversified, just like the diversified forms of economic development. Vocational education that meets market needs can help students master the skills and achieve higher quality and fuller employment and entrepreneurship. China Orient Education has always been committed to being a promoter of the development of China’s vocational education, providing talent and intellectual support for national and social development.