According to the company's plan, the company will divest assets in the semiconductor lighting related business. In 2017, the matter is in the process of steady progress. Therefore, the operation of semiconductor lighting and other related businesses during the reporting period is still reflected in the company's report. During the reporting period, the company carried out certain integration of this part of the business, mainly reflected in the gradual planning of related assets, liabilities and personnel. In 2017, the main business of Qinshang shares included the education industry and semiconductor lighting related industries. The education industry is a new expansion of Qinshang's shares through the acquisition of Longwen Education and British Education. In 2017, it has grown into a major growth point for the company's performance. In 2017, through the company's concerted efforts and joint efforts, the education industry and the company's platform advantages and capital advantages were organically combined to achieve the expected goals. The company realized operating income of 1,608,930,300 yuan and realized net profit attributable to shareholders of the listed company of 84,196,670 yuan. Successfully turned losses into profits, which also confirmed the correctness of the company's determination to adhere to the transformation of the education industry. According to the company's plan, the company will divest assets in the semiconductor lighting related business. In 2017, the matter is in the process of steady progress. Therefore, the operation of semiconductor lighting and other related businesses during the reporting period is still reflected in the company's report. During the reporting period, the company carried out certain integration of this part of the business, which was mainly reflected in the gradual transfer of relevant assets, liabilities and personnel to the company's subsidiaries, which provided guarantee for the smooth over-extension of subsequent asset stripping. After the divestiture of semiconductor lighting related industries, the company will become an A-share listed company with education industry as its main business. In order to meet the development needs of the company, the company changed its securities abbreviation from Qinshang Optoelectronics to Qinshang Shares during the reporting period. KINGSUN OPTO changed to KINGSUNSHARE. In recent years, the education industry has shown a good development trend and has become an important growth point in China's social and economic fields. At present, China has basically formed a multi-level, multi-system, and complete education system. The government is also increasing the expenditure on fiscal education funds year by year, which directly benefits the long-term development of the education industry. According to the “Investigation Report on the Status of Teachers in China's Counseling Education Industry and Counseling Institutions†issued by the China Education Association on December 27, 2016, the market size of China's primary and secondary school counseling institutions has exceeded 800 billion yuan in 2016. From 2014 to 2020, K12 extracurricular education counseling The market compound growth rate will be above 18%. Longwen Education, a wholly-owned subsidiary of the company, is one of the leading companies in K12's personalized 1-to-1 counseling field. It is based in more than 20 cities including Beijing, Shanghai and Guangzhou. At the end of the reporting period, it has nearly 400 business outlets, and its influence radiation. National. During the reporting period, Longwen Education's one-to-one business developed rapidly, its operations were stable, its management was standardized, and its teaching points were continuously optimized. As of the end of the reporting period, Longwen Education had a total of 4,648 teachers, including 2,572 full-time teachers and 2,076 part-time teachers, an increase of 393 over the same period; the number of students was 34,023, an increase of 11,043 over the same period; increase. At the same time, Longwen Education also actively responded to the impact and impact of rising costs through the company's internal cost control. The business achieved rapid growth, market share increased steadily, brand awareness and reputation, and social education credit increased rapidly. In first-tier cities and some new first-tier cities, Longwen Education has achieved its first market share in the one-to-one market, and its market share is expanding. With the steady improvement of teaching quality and the gradual transfer of school-running costs, the income scale of each teaching point has expanded rapidly. The overall economic and social benefits of Longwen Education in more than 20 cities across the country will enter another stage of better development. With the official implementation of China's "Private Education Promotion Law" and a series of follow-up rules, international schools with private education as the main body have also ushered in a new wave of development opportunities. According to statistics, the number of international schools in China has reached 987, and 49 new ones are added in 2017. It is expected that there will be more than 100 new schools in 2018. With the improvement of the quality of the people, the second-child policy will be liberalized. In the future, there will be a huge audience to catalyze the development and innovation of the international school industry. The development tide of international schools has just begun, and the potential is huge. The emergence of new generation of parents, the increasing consumption power of a large number of middle-class families, and a high degree of recognition of European and American educational concepts, increasingly favor the educational services provided by international schools. The Shenzhen International Academy of Sciences, which is 100% owned by the company's holding subsidiary, is a well-established American-style international school in Shenzhen. It has achieved good results in the industry since its inception. During the reporting period, Shenzhen Prep International College became the AP Code School of the American University Council. This means that the Pre-School Academy and the American Le Cordon Bleu High School are on the same level, which is of great significance to the development of the school and can further seize the market share of the US study abroad. . With the aging of the first-tier cities, the phenomenon of studying abroad has intensified. Following the market trend, the preparatory school is preparing to set up a primary school, gradually forming a complete 15-year international education system from the K12 grade. In 2017, the teachers and students of the preparatory school are in stable condition. As the charging standard has increased to a certain extent, the overall income in 2017 has improved compared with 2016. In the future, the company plans to further strengthen the education business by acquiring high-quality assets related to the education industry, and based on the existing Longwen education and British education, to carry out industrial linkage, achieve 1+12 effect, and enhance the company's industry competitiveness and profitability. Level and corporate value.
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