As economies grow, many countries are experiencing declining birth rates, making population aging a global trend in human societal development. China, as the world’s most populous nation, inevitably faces this issue. In an interview, Lu Zhiyuan, the Minister of Civil Affairs of China, stated that by the end of 2023, the population aged 60 and above had surged to 297 million, accounting for 21.1% of the total population; those aged 65 and above totaled 217 million, representing 15.4% of the total population.
China has a large elderly population and is experiencing rapid aging. Drawing from international experiences, countries and regions like Japan and the European Union, upon entering advanced stages of aging, have chosen to develop the silver economy, transforming the demographic challenges of an aging population into a driving force for domestic consumption. Reflecting this trend, the 2024 Chinese Government Work Report emphasizes the implementation of a proactive national strategy to address population aging, with a strong focus on expanding the silver economy.
The silver economy encompasses a broad range of sectors and diverse business models. Surveys indicate that China’s elderly population is seeking higher-quality eldercare services. Beyond basic necessities such as food, clothing, housing, and healthcare, the elderly increasingly prioritize self-actualization and personal development. There is a rising demand for more diverse and superior services in areas such as lifelong learning, leisure, and entertainment.
Jin Weigang, Vice President of the Chinese Society of Social Security and Deputy Dean of the National Institute of Governance at Zhejiang University, has stated, "The silver economy industry chain is extensive, and society should provide the elderly with the products and services they need, particularly in health, cultural entertainment, and tourism. They require emotional comfort and social engagement."
The spiritual needs of the elderly population undoubtedly present significant development opportunities. In this area, some Chinese companies have already positioned themselves strategically. For instance, QuantaSing (Nasdaq: QSG) has launched QianChi, a platform offering personal interest courses tailored for the elderly. QianChi is committed to broadening the horizons of middle-aged and elderly people and realizing their unlimited potential. By offering diverse courses covering various interests, elderly people can engage in lifelong learning in their beloved fields. Research indicates that lifelong learning can enrich the spiritual world of the elderly, providing them with a vibrant and fulfilling experience. By studying courses such as painting, music, and calligraphy developed by QianChi, elderly individuals can enhance their quality of life and increase their joy and happiness.
According to the unaudited financial results for the second quarter of the fiscal year 2024 released by QuantaSing, the company achieved revenue of RMB 980.5 million, an increase of 24.7% year-over-year. Net income for the quarter was RMB 107.6 million, with adjusted net income reaching RMB 103.9 million, both surpassing RMB 100 million for the first time and setting a new historical record. The robust growth of QuantaSing's business is, to some extent, reflected the growing market opportunities in China’s silver economy
With a robust financial performance and scalable business model, QuantaSing is accelerating its international expansion efforts. The recent return of the Company's executive team from the United States marks a milestone in its international journey. Engaging in dozens of meetings with investors, potential partners and other key stakeholders in the market, the team is focusing on the company’s development, establishing and fortifying new and existing relationships, and strategizing the next steps for QuantaSing’s expansion. These discussions underscored QuantaSing's commitment to sustainable growth and its proactive approach to international market penetration. The company is set to establish a new office in Hong Kong this summer, signaling its firm commitment to expanding its global footprint. Through its international expansion initiatives, QuantaSing aims not only to broaden its market reach but also to provide a model for the global advancement of China's silver economy.
Currently, the country has explicitly called for high-quality development within the eldercare industry. China's silver economy is still in its early stages. As the economy grows, the demand for goods and services among the elderly population is expected to increase, leading to a shift towards a more sophisticated and multi-layered consumption structure. The needs of elderly consumers are evolving towards a preference for enjoyment-focused products and services. Consequently, the elderly education industry is witnessing huge market opportunities. Companies with a first mover advantage in this field are poised to capitalize on these important market prospects.
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Company Name: QuantaSing Group Limited
Contact Person: Vivian Li
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City: Beijing
Country: China
Website: https://ir.quantasing.com/
