China New Higher Education Thrives on Strong Record, Government Support

Vocational educator placed 98% of its graduates last year, giving it leverage to raise tuitions that powered a 31% revenue jump in its latest financial report Key Takeaways: China New Higher Education placed 98% of its graduates last year, much higher than the industry average, allowing it to raise tuitions Company should benefit from a slew of government policies supporting the sector, including continued involvement by private players By Fai Pui It’s graduation season again, which means a record 10 million students will be hitting the Chinese workforce this year,…

Read More »

LinkDoc Formally Withdraws Its U.S. IPO. Next Stop, Hong Kong?

Medical big data company has filed with U.S. securities regulator to officially terminate its plan to raise $200 million through a New York listing Key Takeaways: LinkDoc has formally withdrawn its plan to raise $200 million from a U.S. IPO, nine months after its 11th hour halt to the listing Three other Chinese companies with pending U.S. listings could revive their plans in the second half of this year as last year’s regulatory turmoil shows signs of receding By Doug Young Medical big data firm LinkDoc Technology Ltd. has formally…

Read More »

Vocational Focus Lets Minsheng Education Thrive Amid Crackdown

The company has benefited from a slew of government policies supporting private investment in the vocational sector, even as K-12 educators suffer from a major crackdown Key Takeaways: Minsheng Education said its revenue more than doubled last year, following a series of acquisitions with a focus on online services The company has performed well as China clarifies it will continue to welcome private investment in the vocational education market By Molly Wen China’s “double reduction” policy designed to ease pressure on the nation’s stressed-out students has taken a heavy toll…

Read More »

Tianli Education’s Transition Plan Fails to Convince Investors

Company logged a $214 million loss in the first eight months of last year after writing down assets that have been banned under China’s private education overhaul Key Takeaways: Tianli Education’s stock tumbled 60% after the end of a three-month trading suspension due to a delayed release of its latest financial report Following China’s ban on many of its former core education services, the company plans to offer new value-added services and changed its name By Fai Pui The past year has been a nightmare for private Chinese school operators,…

Read More »

New Oriental Education Records Huge Loss, But Forges Ahead

China’s former leading private educator has revealed the huge costs it incurred in its first earnings report since a major industry reshuffle Key takeaways: New Oriental fell deeply into the red in its latest six-month reporting period after incurring massive costs from suspending its K-9 instruction business Founder Yu Minhong said he is determined to defy all odds and chart a path forward by developing new businesses By Jony Ho The second half of 2022 was an instructive time for New Oriental Education & Technology Group Inc. (EDU.US; 9901.US), even though…

Read More »

Agora Looks for New Excitement With Online Workplace Audio, Karaoke Metaverse

Company that shot to fame as Clubhouse technology partner has taken a beating since then on China education crackdown and questions on about its security Key takeaways: Agora reported its revenue grew just 21.5% in the fourth quarter, and forecast the figure would rise just 5% in 2022 due to effects from China crackdown on private educators Company’s shares hit all-time low last week, but have rallied 20% since then, including an 11% rise after release of its latest results that spotlighted new growth initiatives By Doug Young What a…

Read More »

New Oriental Eyes Chip Design, China Liberal Chases Higher Education

New moves by one of China’s oldest and one of its newest private educators reflect scramble to find new businesses after last year’s education cleanup Key Takeaways: New Oriental Education’s potential move into chip design is one of many major new initiatives as it tries to transform after last year’s private education sector cleanup The company’s move into chips, if it comes, could get a boost from recent strong government support for China’s chip sector By Doug Young We’ll begin the week with a couple of items from the embattled…

Read More »

Virscend Education Eyes Management Services in Its Search for New Roadmap

Company is looking to an ‘asset-light’ model for its future survival, following China’s ban of for-profit K-12 education services   Key takeaways: Virscend Education plans to adopt an “asset-light” model by providing services for schools developed by governments and real-estate companies The company lost 1.8 billion yuan in the first eight months of last year after suspending most of its K-12 education operation By Molly Wen China’s new education law adopted last September has provided a difficult lesson for the nation’s K-12 private educators, putting many out of business and…

Read More »

New Oriental Tries Live Streaming E-commerce in Ongoing Transformation

Company’s revenue plummeted 80% last year and it laid off 60,000 employees after China’s crackdown on after-school tutoring Key takeaways: New Oriental has turned to live streaming e-commerce, with founder Yu Minhong selling agricultural products online Yu refused to shut company down after education crackdown, saying he bears responsibility for 50,000 remaining employees By Jony Ho China’s crackdown on after-school tutoring services first announced last July, known locally as the “double reduction” policy, may be easing the homework burden on students. But it has left a trail of carnage among the…

Read More »

Hailiang Sees the Writing on the China Blackboard

Private school operator launches privatization bid, setting a potential trend for others remaining in the embattled education sector Key takeaways: A management-led group has offered to privatize Hailiang Education at a large premium, setting a potential trend for China’s listed education companies Company was relatively less affected by recent government-led cleanup of private education sector, but still faces large uncertainties By Doug Young 2021 will go down as a landmark year for China’s private education sector, following a major government campaign aimed at easing the burden of after-school tutoring on…

Read More »