'Shark' Thuy: Apax Leaders determined to restore business operations in Ho Chi Minh City

Mr. Nguyen Ngoc Thuy said that Ho Chi Minh City is an extremely challenging market, the reopening of the center is slow, but Egroup is determined to restore business activities here.

This view was expressed by Mr. Nguyen Ngoc Thuy - Chairman of Egroup at the investor meeting last night (November 17). He admitted that Apax Leaders' plan to reopen operations in the Ho Chi Minh City and Southern markets is delayed. Currently, this chain of English teaching centers has only opened two centers: Him Lam (District 6) and Phan Xich Long (Phu Nhuan). Previously, the company planned to open 14 centers nationwide, mainly in Ho Chi Minh City and complete in July.

Explaining this, Mr. Thuy said that Apax Leaders had only recently completed a part of the fee withdrawal. The company had paid more than 20 billion VND to the first group of parents and was still late in paying the fees to the second group of parents (the new schedule will last until the end of 2025). This made them upset, causing difficulties for the company's operations.

"HCMC is an extremely difficult and challenging market, but we are determined to complete our plan to restore business operations here," he said.

Mr. Nguyen Ngoc Thuy (left) and Mr. Dinh Xuan Tung at the meeting on the evening of November 17. Photo: Egroup — Mr. Nguyen Ngoc Thuy (left) and Mr. Dinh Xuan Tung at the meeting on the evening of November 17. Photo: *Egroup*

Egroup leaders said that the number of parents who want to withdraw tuition fees is "only a fraction" and there are still many customers waiting for them to return. Recently, the company has recorded many parents continuing to come to Apax Leaders after the company resumed the Chungdamn program - the learning program that helped Apax develop from a single English center into a large system with 130 teaching locations during its heyday.

In 2019, Apax Leaders had 50 centers in Ho Chi Minh City and 22,000 students. Egroup did not provide the number of customers who wanted to withdraw tuition fees, but in the discussion group between parents with this need, the number of members is more than 950 people. After completing the payment for the first group of parents, the company currently has more than 230 parents who have not yet received their tuition fees.

In the past, when Apax Leaders was in a serious crisis, many English teaching units launched a program to support students from this chain to transfer to their centers with preferential tuition fees. This also reduced the number of students of Apax Leaders. Not to mention, there are still a large number of parents who transfer their children to study at other centers without having to withdraw tuition fees. In Ho Chi Minh City, the English teaching market for children is very vibrant, and centers are still "springing up" continuously everywhere.

However, Mr. Dinh Xuan Tung - CEO of Egroup, believes that this enterprise still has a competitive advantage from theeducational ecosystem model. Currently, Egroup is operating four brands including two English teaching chains Apax Leaders and English Now, CMS math thinking, Steame kindergarten. "If we list each brand separately, we are not the strongest service provider, but when combined, we will create a difference in the market," said Mr. Tung.

Therefore, in the coming time, Mr. Tung said that Egroup will focus on developing according to the model of a center providing many products, aiming at one customer using many services. The company's board of directors identified this as an important strategy and direction. Brands supporting and combining with each other help businesses reduce costs, optimize premises, and provide many educational services at the same location. In the near future, the company will convert 38 English centers into Apax Leaders centers combined with CMS. After that, 14 Steame kindergartens will also integrate at least one center under the brands CMS, Apax Leaders, English Now.

Apax Leaders is a chain of English teaching centers for children, the business pillar of Egroup. At the end of last year, Apax Leaders was complained by many parents in Ho Chi Minh City, Hanoi , Dak Lak, and Da Nang because the teaching quality was not as committed, "taking the money and abandoning the customers" and demanding a refund of tuition fees. At the same time, Egroup also owed salaries and insurance to employees, and delayed interest payments to investors.

After that, Egroup planned to restructure, focusing on optimizing costs for premises and operations, and devoting all resources to improving the quality of teaching at Apax Leaders. To date, this chain has 38 centers, mainly in the North, with more than 11,000 students. Mr. Nguyen Ngoc Thuy promised to repay the debt to investors in the next 3-5 years after restoring business operations and calling for capital from investment funds. For now, Egroup investors can only convert debt into real estate, investment packages to restructure English centers, English learning packages and household appliances.

Siddhartha

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