Koolearn’s New Lesson: E-Commerce Pays Better Than Education

The former education company has returned to profits on spiking revenues, pointing to early success in its transition to livestreaming e-commerce Key Takeaways: By Molly Wen Former online education services provider Koolearn Technology Holding Ltd. (1797.HK) is getting an important lesson from its famous founder Yu Minhong, who preached “the pursuit of hope in a sea of despair will eventually lead to a great things.” The online arm of New Oriental Education & Technology Group Inc. (EDU.US; 9901.HK), one of China’s oldest providers of after-school tutoring for K-12 students, was…

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Big Banks Test the Waters for New China Listings With QuantaSing IPO

The adult education specialist’s IPO underwriters include Citigroup, as well as two of China’s biggest investment banks Key Takeaways: By Doug Young After hiding in the shadows for nearly two years, the big-name investment banks are quietly testing the waters for a return to underwriting Chinese IPOs in New York. That’s the big story in an IPO filing by QuantaSing Group Ltd. (QSG.US), an adult education company whose newly filed listing plan is most notable for the big names sponsoring it than anything else. The offering is being underwritten by…

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17 Education Becomes Latest China Stock to Soar as Investors Sniff for Bargains

The education services provider’s shares have jumped 70% in the last five trading days on heavy volume as many issues that dogged the company appear to be settled Key Takeaways: 17 Education appears to be the latest U.S.-traded China concept stock to be attracting new investor interest, with the company’s shares soaring 70% over the last week Other Chinese companies showing similar major gains this month include Hello Group and Gaotu Techedu, reflecting improving sentiment toward the beaten-down group By Doug Young First it was the march of the China…

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Operating in the Shadows of Education Crackdown, iHuman Nears Profit Milestone

The maker of ‘edutainment’ apps posted a net profit for the third quarter, bringing it closer to its first full-year profit since its IPO two years ago Key Takeaways: iHuman made a net profit in the third quarter, swinging from a loss a year earlier, as cost savings outweighed a decline in revenue The company faces a long list of regulatory risks, led by the educational nature of its apps that could subject them to more stringent rules By Warren Yang A major milestone is in sight for iHuman Inc.…

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Virscend Education Scores Return to Profits With Asset-Light Model

The private educator’s latest annual revenue more than doubled and it registered a net profit of 11.38 million yuan after changing its business model Key Takeaways: Virscend Education returned to profitability in its latest fiscal year after expanding the student base at its four high schools using a new asset-light model providing management services The company is actively exploring other ways to improve its performance, with education management and consulting services as one of its best prospects By Molly Wen China’s education crackdown last year has left private educators in…

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Economic Slowdown, Favorable Policies Boost Two Vocational Educators

China Education Group and China New Higher Education posted 25-30% revenue growth for their latest fiscal years through August Key Takeaways: China Education Group’s revenue rose 29% in its latest fiscal year, while its profit was up by a similar 31.5% on favorable policy and economic conditions China New Higher Education’s revenue rose 24.6% in its latest fiscal year, but its profit was up just 6.5% as its costs jumped and student enrollment fell slightly By Doug Young A “perfect storm” of factors has combined to boost China’s vocational education…

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Lesson Learned: Gaotu Tastes Early Success in Business Transformation

Facing a delisting threat after its shares fell below $1, the battered education company has responded with a major buyback plan in a bid to boost its price Key Takeaways: Gaotu Techedu’s revenue has resumed quarter-to-quarter growth and its loss narrowed by 94% as it transforms following China’s education crackdown last year The company and its chairman plan to purchase up to a combined $50 million worth of its shares, hoping to bring the stock back above the $1 mark By Tina Yip It used to boast of its ability…

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New Oriental Emerges from Carnage of Education Cleanup

Leading education services provider returned to profitability in its latest reporting quarter, drawing on new focuses in overseas study and non-academic tutoring Key Takeaways: New Oriental Education returned to profitability in its latest reporting quarter, as its revenue declines continued to ease The company’s new business mix after China banned K-12 tutoring in core curriculum areas includes non-academic tutoring and study abroad services By Doug Young Despite making earlier headlines with its creative new foray into livestreaming e-commerce, the latest quarterly results from New Oriental Education and Technology Group Inc.…

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Qudian in Search of a Business as Stock Returns to Penny Territory

The former fintech highflyer was warned a third time about possible delisting this year after its stock fell below $1 on the failure of its latest new foray into the food industry Key Takeways: Qudian was notified by the New York Stock Exchange that it was in violation of listing rules that require its stock price to stay above $1 The warning was its third one this year, and came after the company said it was scaling down a food business it started just six months ago and ceased its…

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