Corporate Profile

About Meten EdtechX Education Group (“Meten”)

A leading ELT service provider in China, delivering English language and future skills training for Chinese students and professionals.

Through a sophisticated digital platform and nationwide network of learning centers, Meten provides its services under three industry-leading brands; Meten (adult and junior ELT services); ABC (primarily junior ELT services) and Likeshuo (online ELT).

Superior teaching quality and student satisfaction is underpinned by cutting edge technology deployed across the business, including AI-driven centralized teaching and management systems which record and analyze learning processes in real time.

Meten is committed to improving the overall English language competence and competitiveness of the Chinese population to keep apace with the rapid development of globalization.

The company’s experienced management is focused on further developing its digital platform and expanding its network of learning centers to deliver a continually evolving service offering to a growing number of students across China.

Our market

A total addressable market of 600+ cities in China

The rapid pace of urbanization in China is driving demand for education, vocational training and education technology services. According to the McKinsey Institute, China’s urban population is set to reach one billion by 2030. By this time, it is expected that 7 of the 10 richest cities in the world will be Chinese (Oxford Economics).

Continued digitalization required to facilitate this development is expected to transform education in China. According to a research report by Morgan Stanley, by 2030, online tutoring could be used by over 30% of those in education in China, representing a market worth $150 billion.

The growing aspirations of the urban Chinese middle class for their own careers and their children’s academic success are fueling consumer spend and investment opportunities for the education and lifelong learning markets in China. Demand for tutoring, English language training and job-oriented upskilling is experiencing double digit growth. 

Sector 13/18 CAGR 18/23E CAGR
Total ELT 19.0% 20.7%
General ELT 23.3% 26.3%
Test-orientated ELT 14.1% 13.6%
After school training 17.9% 18.1%

Key drivers of growing demand for ELT in ChinaMeten EdtechX operates at the heart of this environment with a market leading position in the ELT segment and a profitable omnichannel business model, combining a strategic retail presence, innovative technology and sophisticated digital delivery.

  1. Increasing disposable income and expenditure on education and training
    • Along with the growth of China’s economy, the disposable income of Chinese citizens has witnessed stable growth in recent years.
    • The per capita annual expenditure on education grew from RMB578 in 2013 to RMB881 in 2018, representing a CAGR of 8.8% (Frost and Sullivan Report).
    • Chinese residents have increased their spending on education and training, including ELT services.
  2. Globalization of Chinese enterprises and increasing demand for bilingual talents
    • Chinese enterprises have accelerated their globalization process, creating an increasing demand for bilingual and multilingual talents.
    • Proficiency in the English language is essential for conducting various business activities across different enterprises from other countries.
    • The evolving working environment towards internationalization has also raised the employment standards, which in turn promotes an increasing number of adults who want to improve their English language skills.
  3. Growing number of students studying abroad
    • In recent years, the number of Chinese students studying abroad has continued to grow and China has become the world’s largest source of international students.
    • The number of Chinese students studying abroad grew 8.8% year-on-year from 608,400 in 2017 to 662,100 in 2018 (The Ministry of Education).
    • The majority of study destinations are English-speaking countries that require applicants to pass language tests such as TOEFL and IELTS.
  4. Internet technology development
    • With innovation and the rapid development of internet technology, internet users in China had reached approximately 818 million by the end of 2018 (China Internet Network Information Center).
    • The rising internet penetration rate has increased the popularity of online services and expanded the user base.
    • The broad reach and interactive nature of online courses, as well as the growing willingness to access education services via the internet, is expected to play a key role in driving future industry growth.

Our business model

Meten operates a profitable omnichannel business model combining a strategic retail presence, innovative technology and sophisticated digital delivery.

What we do

what we do

We offer a comprehensive range of ELT services which continues to evolve in line with our students’ needs.

  • General adult ELT for students aged 15+, which are offered at our learning centers across China.
  • Junior ELT courses for students aged 6-18, aimed at improving communication abilities, critical thinking and creativity through the delivery of an integrated curriculum catering to varying educational needs. 
  • Overseas training services designed for students planning to take international standardized tests and/or study abroad.
  • Online ELT whereby live streamed English courses are delivered via our websites or our sophisticated intelligent “Likeshuo” App.

Where we operate

Since 2006, Meten has built a network of 149 learning centers located across 36 cities in 18 provinces in China. We plan to expand this network to include further tier two, three and four cities.

Our digital platform Likeshuo, which has more than 1.1 million registered users, is one of the top consumer brands in China.

How we deliver

Meten benefits from a highly efficient business model, which leverages synergies between its offline and online business segments, innovative technologies and an experienced management team, many of whom have been with the company since inception.

Our highly qualified personnel, centralized AI-driven management system, and technical expertise enable us to create a learning environment that caters to the specific learning demands of our students.

Our Likeshuo digital platform offers live streaming and innovative features including direct access to courses, scheduling and learning evaluation. 

Our comprehensive CRM system covers the full-service cycle, from customer acquisition to teaching service evaluation, while our integrated teaching management system helps manage teaching activities across all learning centers. We use an intelligent tracking service system to monitor service delivery throughout the learning cycle and a class scheduling system to optimize course booking and scheduling. Continuous development of additional systems facilitates teaching activities and optimizes daily operation across all our delivery channels.

Our dedicated content development team focuses on developing practical and innovative education materials, both independently and in collaboration with our strategic partners.

partners 1

partners 2

Our strategy

Meten has a clearly articulated growth strategy focused on:

  • further development of its digital offering,
  • expansion of the learning center network into tier two, three and four cities across China, and
  • enhancement and diversification of the company’s service offering.
Further development of digital offering Expansion of learning center network Enhancement and diversification of service offering
Meten’s management team is strongly committed to investing in high-end technology, leveraging the company’s in-house R&D team, to achieve an enhanced online service offering, user experience and marketing effectiveness.

The company’s goal is to significantly increase market penetration and share of its Likeshuo platform in the coming years.
The company plans to increase its focus on provincial and regional central cities with relatively high income per capita, a developed local economy and high demand for English language proficiency.

Rapid expansion of Meten’s offline network will be facilitated by a highly scalable centralized management system. The company has a standardized process in place for launching new learning centers, from site selection, build-out and launch, to operation management.

Efficient expansion will also be supported by Meten’s centralized management of teaching services, marketing, finance and human resources.
Meten has significant scope to further expand its market share in general adult ELT and strengthen junior ELT services through dedicated junior ELT centers.

The company plans to leverage cross-selling opportunities between its learning centers and the Likeshuo platform, as well as between its “Meten” and “ABC” brands.

During 2020, Meten plans to launch a K-12 quality education program for juniors (including Chinese, mathematics and computer programming) to capitalize on the growing demand for these services and opportunity for cross-selling to the company’s existing client base.

The company’s service offering will be further enhanced through dual teacher lectures, which allow the lectures physically conducted by teachers in one location to be simultaneously viewed by students in multiple locations.

In addition to pursuing continued organic growth, Meten plans to leverage its established M&A capability to selectively seek out strategic acquisition and partnerships. The company will focus on identifying potential targets that have a substantial regional presence and brand recognition, strong content development capabilities, core businesses that share the same values and goals as Meten, and utilize advanced technologies in connection with their business operations and the delivery of language training services.

Successful implementation of the company’s mid-term strategy is expected to deliver growth in both revenue and profitability.

Mid-term guidance
(RMB million) Revenue Adjusted EBITDA Adjusted net income
2019 1,447 135 64
2020 1,750 224 160
2021 2,140 301 230