Cooperating with English tutoring school, Binh Minh Company earns hundreds of billions of dong

Each school year, I pay more than 4 million VND to "get acquainted" with English.

Lao Dong newspaper has published a series of articles reflecting on the situation of schools "blatantly turning regular school hours into extra teaching time". Many enhanced classes, skill classes... are linked by schools with businesses and centers and require parents to pay fees.

According to Lao Dong's research, each school will be linked with different business units and centers. Depending on the curriculum, duration, and tuition fees, there will be differences, ranging from 100,000 - 150,000 VND/student/month, students study 1 - 2 periods/week.

Notable among them are ISMART Education JSC, Binh Minh Technology JSC, Vietnam-Australia International Education JSC, and E3 Education JSC. Notably, Binh Minh Technology JSC (Binh Minh Company) with the Binh Minh Foreign Language Center system (BME) is an enterprise that has many cooperation programs with many schools in Hanoi.

At the beginning of the 2023 - 2024 school year, Nghia Do Primary School announced the enrollment of grade 1, sending parents of students about continuing to coordinate with Binh Minh Foreign Language Center (BME) - Binh Minh Technology Joint Stock Company to implement the English and English through Math - Science language familiarization program. Teaching duration is 4 periods/week, 140 periods/school year. Tuition fee is 4,140,000 VND/9 months, collected monthly is 460,000 VND/month. In addition, parents must also buy English 1 textbooks, priced at 152,000 VND.

Similarly, Tan Dinh Primary School (Hoang Mai, Hanoi) also offers 3 teaching programs in conjunction with private units (not including after-school clubs), including the BME - KIDs English program with a fee of 150,000 VND/month.

A joint program between Binh Minh Company and Nghia Do Primary School. Photo: Provided by parents. — A joint program between Binh Minh Company and Nghia Do Primary School. Photo: Provided by parents

In addition, on September 6, 2023, Binh Minh Company also won Package No. 1: Organizing Robotics English teaching program for the 2023-2024 school year at Van Bao Primary School (Ha Dong District, Hanoi), the winning bid amount is more than 900 million VND.

Previously, at the end of August 2023, this enterprise also won Package No. 1: Organizing a program to familiarize and teach additional English for the 2023-2024 school year at Trang An Primary School (Hoan Kiem District, Hanoi), with a winning bid of nearly 7 billion VND.

Notably, this is the second time Binh Minh Company has accompanied Trang An Primary School. Before that, at the end of 2022, these two units "joined hands" in package No. 1: Organizing a program to familiarize and teach additional English for the 2022-2023 school year at Trang An Primary School for more than 5.7 billion VND.

Looking at the data on the National Bidding Network, it can be seen that Binh Minh Company also won bid packages invested by many educational units in Hanoi, such as the Hanoi Department of Education and Training, Hai Ba Trung District Department of Education and Training, Hanoi Pedagogical University, and Thanh Tri District Department of Education and Training.

Annual revenue of more than one hundred billion dong

According to information on the National Business Registration Portal, Binh Minh Company was established in 2006, located in Hai Ba Trung District, Hanoi. Mr. Nguyen Hong Hai (born in 1975) is introduced as the Chairman of the Board of Directors and Director of the company.

Graphics: Quang Dan - Tuong Van. — Graphics: Quang Dan

By the end of 2022, Binh Minh Company brought in revenue of about 182 billion VND, an increase of 80 billion VND compared to 2021. Of which, the majority was revenue from equipment sales and foreign language training with 164 billion VND. The remaining revenue came from software sales (6 billion VND) and book sales (12 billion VND).

It is worth mentioning that although the revenue is up to hundreds of billions of VND, due to the high cost of goods sold, along with the business management cost of up to nearly 30 billion VND, the company's after-tax profit will be less than 2 billion VND in 2022 and 200 million VND in 2021.

As mentioned by Lao Dong, one of the factors in the "handshake" between schools and businesses providing educational programs is "commission". Accordingly, the school will be refunded about 20% of the total revenue from the number of students by the affiliated units. In fact, this can partly affect the profits of businesses in the industry at the end of the period.

Thus, in the last two years, Binh Minh Company's revenue was about 284 billion VND, however, the profit achieved on the books was only about 2 billion VND.

As of December 31, 2022, the total assets of the enterprise are more than 56 billion VND. Liabilities account for a small proportion of only 18 billion VND. Notably, Binh Minh Company has no financial debt, and at the same time, the cash reserves at the company are quite high at about 22 billion VND.

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