After the release of the "double reduction" policy, the overall development of the education industry has attracted the attention of the capital market. With the disclosure of the 2021 annual report coming to an end, investors can get a glimpse of the overall situation of the industry and the company from the annual report card handed over by the enterprise. According to tonghuashun data, as of April 23, a total of 23 education enterprises have issued annual reports or performance forecasts for 2021. According to the information disclosed by these companies, many companies suffered serious losses in 2021. Data show that among the eight companies that have released their results, two have net profit losses, while among the 15 companies that have released their performance forecasts, 12 are expected to have net profit losses. For the reasons for the loss, many companies mentioned the impact of the "double reduction" policy. It should be noted that many companies have entered the field of education through mergers and acquisitions, and with the impact of the "double reduction" policy on industries and enterprises, the provision of large impairment has also become a topic that many enterprises can't get around. For example, the previous announcement of XueDa education mentioned that the net profit loss last year is expected to decline by 1450% to 1199% year-on-year. For the reasons for performance changes, XueDa education explained that it adjusted the existing business strategy and business structure and reduced performance. In addition, when XueDa education acquired 100% equity of XueDa education group and Beijing XueDa Information Technology Group Co., Ltd. in May 2016, the goodwill was as high as 1526773300 yuan. The company preliminarily judged that the provision for goodwill impairment in the reporting period was RMB 45 million, which reduced the performance in the reporting period. Zhang Yi, CEO of AI media consulting, said in an interview with the Securities Daily: "it is not surprising that the performance of the education industry is poor. In the future transformation, it is very important to find a suitable track." In addition to the data on the overall development of a shares, there are also a number of key enterprises in the transformation of education. Zhang Yi told the reporter of Securities Daily that the transformation of education enterprises is also divided into several directions: "some enterprises that continue to engage in education are transformed into intelligent learning, such as hardware products; some enterprises are transformed into adult education and vocational education, which is the choice of most enterprises that still want to develop in the field of education." The old education enterprise new Oriental chose to return to the fields related to adult English education. On April 22, New Oriental announced the launch of a new business English product. Chairman Yu Minhong explained in his speech that for the relevant segments of adult English training, It will still be valued in the future: "New Oriental started by training college students to go abroad and study English. Now it has returned to the main line of business. In a sense, the release of business English products is a return. I hope this business can be revitalized in the future." On the same day, New Oriental also announced a new cooperation with ETS in the field of business English and jointly released TOEIC test products. The two sides will work together to cultivate more international high-quality talents and jointly promote the vigorous development of China's international education in the new era. In this regard, the relevant person of New Oriental told the reporter of Securities Daily that the advantage of New Oriental lies in its previous brand accumulation and proven unique teaching advantages. In addition, it has provided various forms of language training services and other support for many national major international activities and accumulated rich experience. Therefore, choosing to return to adult English education can achieve twice the result with half the effort. Zhang Yi told the reporter of Securities Daily, "the market capacity exists. It depends on whether the enterprise has the mind to 'start a second business' in the education industry. This is the key issue for the future development of the company." (Xinhua News Agency)