Is studying abroad still a good business?

Established in 2004, International Education Technology mainly provides overseas education consulting services for Chinese students. The overseas education locations are mainly located in Australia, the United Kingdom, and the United States. Its income mainly comes from commissions and bonuses paid by overseas educational institutions for successfully arranging students' advancement.

In the three financial years of 2018, 2019 and 2020, the net profit of International Education Technology was 23.983 million Hong Kong, S.A.R., China dollars, 39.352 million Hong Kong, S.A.R., China dollars and 30.984 million Hong Kong, S.A.R., China dollars, respectively.

The prospectus issued on May 12 showed that in the past three financial years of 2018, 2019 and 2020, the income of international education technology was 154 million, 208 million and 181 million Hong Kong, S.A.R., China dollars respectively, and the corresponding net profit was 2398.3 respectively. Million Hong Kong, S.A.R., China dollars, 39.352 million Hong Kong, S.A.R., China dollars and 30.984 million Hong Kong, S.A.R., China dollars.

According to iResearch Consulting's calculations, before the epidemic, the growth rate of the overseas study consulting industry has slowed down year by year, and the industry has gradually entered a stable period. The track is relatively mature, but the industry is highly competitive. Since the study abroad consultation market is directly related to the number of students studying abroad, it is seriously affected by the epidemic. It is estimated that the market size will shrink to 6.1 billion yuan in 2020. It is expected that the market will gradually pick up as the number of overseas students picks up after the epidemic.

International Education Technology stated in its prospectus that based on the commission income generated by the B2B model in 2020, the company is China's largest purely B2B overseas education consulting service provider. Based on B2B revenue in 2020, the company ranks fourth among China's B2B overseas education consulting service providers (including comprehensive B2C and pure B2B overseas education consulting service providers).

Up to now, International Education Technology has cooperated with more than 400 overseas universities and teaching institutions, and students can submit applications to more than 1,100 overseas schools and teaching institutions through the company. Among them, business and social sciences are the two most popular disciplines among students who apply for undergraduate and postgraduate courses through the company.

In cooperation with the channel business, the channel business provides the company with applications for students who are interested in seeking overseas education, and the company pays the channel business a rebate based on the pre-agreed proportion of the students' first-year tuition payable by the overseas educational institution.