Company Profile

OneSmart International Education Group Limited (“OneSmart” or the “Company”) (NYSE: ONE) is the largest premium K-12 after-school education service provider in China in terms of revenue in 2016 and 2017, according to Frost & Sullivan. OneSmart has built a comprehensive K-12 after-school education platform that encompasses its acclaimed premium tutoring services, premium young children education services and language and culture programs. In 2017, the Company had the largest market share of 2.4% in China's premium K-12 after-school education market, as measured by revenues, according to Frost & Sullivan. OneSmart operate a nationwide network of 225 study centers across 42 cities in China as of November 30, 2017. 

OneSmart introduced and implements its distinctive "Power Learning" education philosophy and case study teaching method, which aims at cultivating the study motivation, capability and perseverance of each student by means of interactive learning experiences, throughout all stages of its education programs and services and in all of its study centers. By carefully tailoring its teaching to each student's capabilities and aptitude, OneSmart has become a critical "Third Classroom" for its students, complementing the education they receive at home and in school.

The Company’s services mainly feature premium K-12 after-school education programs that target students from affluent families and mass affluent families, representing families with annual incomes of over RMB250,000 and between RMB100,000 and RMB250,000, respectively, which together accounted for approximately 48.0% of all Chinese families in 2017, according to Frost & Sullivan. Over OneSmart’s ten years of operation, the Company has built a leading "OneSmart" brand upon its OneSmart VIP programs which offer premium tutoring services in one-on-one and one-on-three teacher-to-student settings with a full spectrum of course offerings covering core academic subjects taught in primary and secondary schools in China at levels between the third and twelfth grades of the K-12 system. "HappyMath", its premium young children education brand originally focusing on mathematics has become one of the most renowned brands in the young children mathematics tutoring market in China. In 2016 and 2017, HappyMath was the largest after-school mathematics education service provider for students in kindergarten to the third grade in Shanghai, as measured by revenues, according to Frost & Sullivan.

The effectiveness of the Company’s premium tutoring services and young children mathematics education services has been demonstrated by the success of its students in school admissions and examinations. Students from the 2017 graduating class of its OneSmart VIP programs were able to achieve a 90.3% admission rate into high schools and 90.7% admission rate into universities as compared with China's nationwide admission rates for high schools and universities of 56.6% and 39.6%, respectively, in 2017, according to Frost & Sullivan. The admission rate of students from the Company’s HappyMath mathematics program into the top 10 private primary schools in Shanghai was 44.7% in 2017, as compared with the general admission rate for these schools of 8.3% in 2017, according to Frost & Sullivan. OneSmart has been able to command premium pricing for the education programs that its offers as a result of its quality service, excellent track record and leading position. The average hourly tuition fees that the Company charges for its services and programs were among the highest compared to those charged by the other after-school education service providers in China for similar class formats in 2016, according to Frost & Sullivan.

Drawing upon OneSmart’s success and experience in its OneSmart VIP and HappyMath programs, the Company has been successfully expanding its service offerings and launched the following programs:

 

  • Other premium young children services, including Chinese language and computer programming, which are now integrated and carried out under its "HappyMath" brand, and English tutoring services focusing on early childhood English study under the brand of "FasTrack English." 

 

  • Language and culture programs, including English language study under the brand of "OneSmart Elite English", overseas study test preparation services under the brand of "OneSmart overseas Language Training" and summer and winter study tours under the brand of "OneSmart Study Camp."

 

The Company also continues to expand its program offerings to address evolving education needs through its newly launched online education programs and OneSmart class programs.

OneSmart’s proprietary centralized technology platform provides full technological support and connects its online teaching resources database, its teaching service management system and its operation management system. This technology platform ensures a high degree of standardization and helps the Company maintain high service quality in its education, while facilitating curriculum development and customized teaching for students across its broad network of study centers. It also enables OneSmart to build a set of robust operational and managerial information systems that integrate its operations, and improve the efficiency of how the Company expands and operates its study center network.

OneSmart’s success also lies in its well-trained education service team. The Company’s commitment to recruiting and training qualified teachers is crucial to the quality of its education services and the development of its students. OneSmart’s teachers and advisors undergo strict and systematic training to improve their service quality.