Long-Spring Education Group

Sales: CNY 214 million in 2017
EBITDA: CNY 94 million in 2017
Employees: 828

Long-Spring Education is the largest privately-owned education group in the Yunnan Province. It offers high school students full-time education offerings and tutoring services.

The business was founded in 2004, beginning with tutoring services, and opened its first full-time high school in 2014. By the end of 2017, Long-Spring Education had over 8,000 students on campus across seven high schools in the Yunnan Province with a focus on Chinese curriculum.

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Market trends and drivers

Yunnan is a stable and large market with four million people in the high school age range. Gross enrollment rate is increasing and good quality education resources are scarce. Private education has grown vigorously with the continuous support of central and Yunnan local government policy. Private education will continue to grow further, driven by a relatively stable birth rate, improvements in the high school enrollment rate and the rise of private education penetration in the market.

Investment potential

Long-Spring focuses on the mass market of mainstream Chinese curriculum under a light asset business model and has a leading position in full-time high school tutoring and retake segments. The centralized and modularized management model secures control over key resources to mitigate the reliance on school principals, therefore making it highly replicable. Long-Spring’s cooperation with the government is a win-win model, through which the government can save fiscal expenditure, speed up education coverage and improve education quality while Long-Spring can save the capital expenditure on campus  and facilities.   

The top priority is to further grow its full-time education offerings in scale and reputation by continuously improving education quality and seeking opportunities for geographic expansion. Long-Spring will focus on utilizing M&A to drive strategic development into adjacent segments in the education sector while EQT helps introduce international curriculum it Long-Spring’s local students.