From the top student in a small town to the richest man in education, Lu Zhongfang and Li Yongxin cashed out tens of billions of yuan but had no money to refund the students

Preface

In recent years, the civil service examination has been a hot topic that has attracted much attention, and civil service training institutions have also emerged as a result. In this industry, there is an institution called Zhonggong Education that has attracted much attention, and its founder Li Yongxin has attracted wide attention because of the huge profits made by the "agreement class" model. As time passed, Zhonggong Education fell into a turmoil, and Li Yongxin was also questioned because of his involvement in windfall loans and other issues. As a civil servant training entrepreneur, Li Yongxin's experience has triggered people's conjecture about the civil servant training industry and the original intention of entrepreneurs. This article will start with Li Yongxin's entrepreneurial experience, analyze the problems he faces, and also discuss the development status of the civil service training industry, as well as how entrepreneurs should view profiteering and original intention.

1. From civil servant training to profiteering entrepreneurship

As a former civil servant, Li Yongxin has a unique understanding of the profession of civil servants, and is also well aware of the admiration and pursuit of civil servants by Chinese people. In 2003, Li Yongxin chose to establish Zhonggong Education, specializing in the training of civil servants. Unlike other training institutions, Li Yongxin soon introduced the "agreement class" model, which requires students to sign a training agreement when they sign up, and once they are admitted to the civil service, they need to pay a certain percentage of their income to Zhonggong Education. As soon as this model was launched, it immediately caused a sensation because it not only gave students confidence and motivation, but also made Zhonggong Education stand out among its peers.

The most attractive thing is the huge profit brought by the "agreement class" model. Under this model, once a student is admitted to a high-paying civil service, Zhonggong Education can receive a commission of hundreds of thousands of yuan or even millions of yuan, and these commissions are almost pure profits. It can be said that it is precisely because of the "agreement class" model that Zhonggong Education has been able to achieve rapid development in just a few years, and it has also made Li Yongxin a successful entrepreneur.

2. The transition from civil servant to businessman

As public education gradually became a giant in the industry, Li Yongxin's fortune seemed to begin to change. In the eyes of many people, Li Yongxin is no longer a civil servant, but a pure businessman, who has begun to pursue huge profits, and even unscrupulous means in order to get more profits.

The most direct manifestation of this is windfall loans. In order to allow Zhonggong Education to obtain more development funds, Li Yongxin chose windfall loans, and the interest on these loans is almost astronomical, once there is a problem of repayment, it will put Zhonggong Education into huge economic pressure. In addition, in some marketing activities, Zhonggong Education has also been accused of using "routine loans" and "violent collection", which has undoubtedly greatly affected the image of Zhonggong Education.

It can be said that Li Yongxin's transformation has cast a shadow on the development of Zhonggong education, and the outside world has begun to question the operation and development of Zhonggong education.

3. Zhonggong education may face the risk of being ST

Nowadays, the problems faced by Zhonggong Education are not only questioned by the outside world, but more seriously, the company's performance has begun to decline, and may even be ST. And all this is inextricably related to Li Yongxin's business style.

The problem of windfall loans involved in Zhonggong Education has plunged the company into an economic crisis, because to repay such a huge amount of interest, it is undoubtedly worse for Zhonggong Education, and this has directly led to the company's cash flow is tight, unable to carry out normal operation and development.

Zhonggong Education was also exposed to the use of its own funds for cash management, which is undoubtedly a "misappropriation" of the company's finances, and also makes the outside world doubt the financial status of Zhonggong Education, believing that its performance is not as optimistic as it appears on the surface, and even has certain risks.

It can be said that the situation faced by Zhonggong Education has been very severe, and Li Yongxin has begun to realize his mistake and took the initiative to resign from the position of the company's legal representative, hoping to alleviate some of the pressure of public opinion and find a way out for the development of the company.

Fourth, the civil servant training industry needs to be developed in a standardized manner

The experience of Zhonggong Education has undoubtedly sounded the alarm for people, and profiteering is not the original intention of starting a business, nor should it become the driving force for the development of enterprises. Whether it is the civil servant training industry or other education and training industries, it is necessary to standardize some undesirable competitive behaviors and protect the legitimate rights and interests of trainees.

For civil servant training institutions, the "agreement class" model should be prudently supervised to avoid the loopholes being exploited, and to ensure that the interests of the trainees will not be harmed, and that windfall profits cannot become the "standard" of civil servant training.

Although the popularity of the civil service examination has declined, this does not mean that training institutions can act recklessly, on the contrary, they should pay more attention to the quality of education and provide students with high-quality services and teaching, which is really meaningful.

Fifth, entrepreneurs should maintain their original intentions

In addition to the standardized development of the civil servant training industry, the turmoil of public education has also sounded the alarm for other entrepreneurs, profiteering is not the original intention of entrepreneurship, once in order to pursue profiteering and violating laws and regulations, the final result can only be to abandon the previous efforts.

Entrepreneurs should be clear about what their original intention is, should pay attention to the long-term development and social responsibility of the enterprise, can not be carried away by the immediate profits, but also should understand that the so-called "windfall profits" are often accompanied by huge risks, and such profits are not worth pursuing.

6. The education industry should focus on the interests of students

The experience of public education has also made people have a deeper conjecture about the education industry, whether it is civil service training or other education and training, the interests of students should be put first, not just profit.

Profiteering does not represent the strength of the enterprise, nor can it represent the level of education, on the contrary, only by truly paying attention to the connotation of education and the all-round development of students, can we win the recognition and support of the society, and can also be invincible in the fierce market competition.

epilogue

The turmoil in public education may bring some regrets to people, but it also teaches us a profound social lesson. In this pluralistic society, every industry needs to be regulated, every entrepreneur needs to maintain his original intention, and the essence of education will never be overwhelmed by interests, it should be a kind of dedication and warmth, but also a kind of hope for the future.

It is hoped that the turmoil in Zhonggong education can become a reflection and wake-up call for the whole society, and it is also hoped that the relevant departments can strengthen the supervision of the education and training industry, so that every training institution can truly contribute to the growth of students and contribute to the progress of society.