Restore the real red, yellow and blue: Runaway franchises and soaring tuition fees

Parent child education Beijing finance and Economics

lengjing· 2017-11-24 17:10:49

Author Jiang Xiaochuan Wang Danwei, editor of

| | Yang Hao

emotional parents gathered in Beijing a kindergarten entrance, the latter accused of child abuse angrily when these photos and video clips in the mad social network, how to quell public anger in the kindergarten has become operators "red yellow blue" (NYSE:RYB) in front of the most important the problem.

is not the first company to experience a public relations crisis because of a child abuse scandal. The public condemnation of a wave after wave, previously aligned owns nursery operators "golden cradle" Vtron shares, as well as providing welfare services for children care staff online travel agency ctrip.

now, red, yellow, blue, the company that just listed on the NYSE in September, has come to the forefront. At this point, it landed more than 2 months from the nyse.

11 24 morning, red, yellow, blue on child abuse incident formally announced. The company said, "has provided the police with relevant monitoring information and equipment, temporary suspension of teachers, cooperate with the public security departments to investigate … waiting for the government departments to investigate and collect evidence. "

11 23 on the morning of the entrance of someone's kindergarten. Photograph: "prism" author Jiang Xiaochuan

"if it is, take the lead in stock" the empty

of course, this is not the first encounter red yellow blue scandal, a kindergarten in Beijing another kindergarten and the northeastern province of Jilin, had revealed a similar incidents of child abuse; in addition, there are the franchisee with admission fee paid by the parents of "run away" news spread network.

in fact, red, yellow and blue have anticipated the risk of similar events. In the prospectus, the company prompted investors to: the company's business depends on the market for "red yellow blue" brand awareness, if the company is unable to maintain a reputation, and enhance brand awareness, the business and operation results will suffer significant adverse effects of this in the first 35 page shows the contents of risk.

as of press time, red, yellow, blue has not yet formally declared on the event. There are insiders to the financial Tencent "prism" said the parents after the alarm, the police involved in the investigation, the company required red yellow blue temporarily not issued a statement, "we (in) quiet period, bound hands and feet very anxious". Another person familiar with the matter said that the education authorities in some kindergartens also required red, yellow and blue to remain silent. The damage caused by the damage of

"red, yellow and blue" brand may continue to expand. The potential losses include the frustration of the expansion plan of the kindergarten in red, yellow and blue, the decrease in the number of students entering the kindergarten and the decrease of the tuition fee. This does not include the close relationship between the parent child center and the preschool education service. If the latter two businesses decline, the losses of red, yellow and blue will be very heavy.

industry insiders told the Tencent financial "prism", "kindergarten education, no entrance examination as a measure for the majority of parents of Kindergarten Based on brand trust, emphasizing perceptual cognition, child abuse caused by the accident harm may be irreparable, no one is willing to send their children exposed to the risk of this potential under.

in fact, around early education, red yellow and blue to build a covering kindergarten, parent-child center and service network: kindergarten curriculum of high barriers to entry, but the huge investment return; parent-child center is relatively lower threshold, to cover more people; and the kindergarten and family center are required courses, natural extension to the supporting course AIDS and R & D sales business.

also need to consider one of the risks, also expressed in the prospectus: Beijing revenue accounted for the company's total revenue share considerable, any adverse events in Beijing, will have a major adverse impact on the company's overall business and operational results. The suspected child abuse incident is happening in Beijing, if it has an impact on Beijing's early childhood education policy, which will bring more uncertainty to the future earnings of red, yellow and blue.

this is the opinion of the storm may have to be thankful, the storm's Thursday coincides with the American Thanksgiving holiday, investors can not trade was closed. In fact, investors have told Tencent financial "prism": "if it is true, take the lead in empty its stock.". There's still half a day on Friday, and it's not clear what the red, yellow, blue trends are.

, September 27th, red, yellow and blue landing nyse. Photo source: red, yellow, blue,

288 home kindergarten is preparing for the establishment of

, usually impression, compared to join mode, straight mode can provide more standardized services. Nursery operators are happy to be under direct park to build the franchisee model reference and imitation, to increase the potential of the parents and join the appeal, but the surprise is that the occurrence of suspected child abuse by the Beijing red yellow blue, it is red yellow and blue in the country 80 Direct in a kindergarten.

in fact, red, yellow, blue self-employed business accounted for more than 7 of total revenue, due to a larger share of self owned business, red, yellow, blue in the first half of 2017 gross profit rate of about 2 into. The first half of 2017, Wei Education (838140) of the gross margin of approximately 48%, Wei Chong shares (002308) preschool business gross profit margin of nearly 60%. The profits of these competitors come from franchise fees and training fees.

no doubt, chain kindergarten is the most popular mode of investors: high profit margins, quick results

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