1. Company Profile
  $ZHANGMEN EDUCATION INC (ZMENY.US)$, founded by Zhang Yi in 2014, has now become a leading online education company in China. The company focuses on providing high-quality online customized education services for primary and secondary school students, including all-subject education and comprehensive quality education. Its main brands include: Zhangmen One-on-One, Zhangmen Youke, and Zhangmen Kids.
Currently, the company's revenue is mainly composed of three business segments: 1) One-on-one courses, accounting for 93% of total revenue in 2020; 2) Small-class courses, accounting for 2% of total revenue in 2020; and 3) Other businesses, accounting for 5%.
According to the Frost & Sullivan report, in the 1) one-on-one course sector, Zhangmen Education is the absolute leader among domestic online K12 one-on-one after-school tutoring service providers, with a market share as high as 31.9%, surpassing the combined total of the other top ten companies in the industry. In the 2) small-class course sector, Zhangmen Education is among the top three domestic online K12 small-class after-school tutoring service providers, and its business growth rate ranked first among the top five companies in the industry in Q4 2020.
In terms of financial data, as of 2020, the company's total revenue was 4.018 billion yuan, an increase of 50.6% compared to 2.669 billion yuan in 2019. During the same period, the gross margin increased from 38% in 2019 to 45% in 2020, up 7%. In addition to maintaining rapid revenue growth and improving gross margin, Zhangmen Education also maintains healthy operating cash flow, with net cash flow from operating activities...