The Changfang Group has two cities: "LED + Education"

The traditional LED industry is deeply rooted in the vertical industrial chain integration: the company's original main business is based on the LED industry chain, achieving vertical integration, while the company's fixed increase in total funds does not exceed 910 million yuan for lighting energy saving based on PPP mode. Service projects, and set up an Internet financial platform around the main business, and dig deep into new profit points.

Even the next two cities, quickly formed the "LED + education" dual main business layout: the company set up Shenzhen Qianhai Changfang Education Management Co., Ltd. and the education industry investment M&A fund in June to lay the foundation for extension; November 23-28, completed For the merger of two famous kindergarten brands, Terai New and Shell Jinbao, the “LED+Education” dual main business pattern has been formed. The characteristics of the two kindergartens are distinct. In the future, it is expected to form synergies in the three aspects of market positioning, competitive advantage and regional coverage, helping the company to realize the layout of the whole industry chain of early childhood education. According to the performance commitment, the company can have 130 direct-operated parks nationwide after three years, and the book 809 million in cash will support the company's further extension in the future.

The sunrise industry welcomes 100 billion winds and the ternary operation mode is parallel: early childhood education is an organic part of basic education. In 2015, the market for early childhood education in China reached 145 billion yuan, an increase of 21.04%; if this growth rate is maintained, 2017 In the year, the market scale will exceed 200 billion yuan, and the market potential is huge; private early childhood education is now dominated by the industry. In 2015, private kindergartens totaled 146,400, accounting for 65% of the total, with direct, affiliated and mixed systems. The mainstream operation mode, but the industry concentration is low, CR5 is only 2.2%, the practitioners are more homogenous competition, the quality content is scarce, and the foreign high-quality preschool education brands also rush to the Chinese market.

The three major positives promote the vigorous development of the preschool education industry: (1) Young parents' consumption concept is upgraded, and the willingness to pay for education is strong. In 2015, China's urban per capita education expenditure was 1,292 yuan, an increase rate of 22.6%; (2) new national increase Education funds are tilted towards pre-school education, and the second-child policy fully liberalizes the dividends of school-age children. At the same time, various education policies are frequently introduced. In particular, the third-grade draft of the "Private Education Promotion Law" will be finalized. Private kindergarten organizers can choose non-self. For-profit or for-profit, open the gap in preschool education asset securitization, and benefit the preschool education industry as a whole; (3) Social capital is continuously injected into the preschool education industry. In 2011-2015, the pre-school education social fixed assets investment CAGR reached 30%, and many listed companies set up education industry. The fund has already cross-border M&A to lay out the preschool education industry.

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