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…

Read More »

Loss-hit Fenbi Tech Seeks IPO Cash After Education Sector Upheaval

The slimmed-down provider of tutoring for civil service exams and vocational training has filed to list on the Hong Kong Stock Exchange for the second time Key Takeaways: Fenbi Technology has posted losses of more than 2.5 billion yuan in the past two years after shifting from online into offline training The company laid off more than 9,400 employees and cut staff salaries to ease financial pressure By Fai Pui A year after a tutoring crackdown shattered China’s prosperous education sector, the still viable pieces of the business are seeking…

Read More »

Jianzhi Education Debuts Like Meme, But Then Gets Lesson in Gravity

The adult education materials provider’s stock rose by as much as a factor of 25 on its first trading day, but since then has returned to near its IPO level Key Takeaways: Jianzhi Education’s big first-day jump, followed by gradual declines back to its IPO price, signal the recent parade of China meme stocks on Wall Street could be losing steam The IPO is unlikely to signal a major resumption of New York listings by Chinese firms despite a landmark agreement last week between the U.S. and Chinese securities regulators…

Read More »

China East Education Suffers Covid Slowdown as New Enrollments Drop

Vocational educator’s revenue slipped 6% in the first half of the year as school closures led to a 12% decline in income from the company’s core cooking classes Key Takeaways: China East Education’s revenue fell 6.1% in the first half of the year, as its new student enrollments dropped 14% due to Covid-related disruptions Income fell 12% for the company’s cooking academies that account for 60% of its total revenue, reflecting soft demand from the struggling restaurant industry   By Doug Young The latest results from vocational schools operator China…

Read More »

With Post-IPO Profit Warning, Is Readboy Losing Its Gold Star?

Less than a month after its Hong Kong listing, the smart learning device maker admitted losing up to 45 million yuan in first half of the year Key Takeaways: Readboy has warned it expects to post a loss of 40 million yuan to 45 million yuan in the first half of the year The learning device maker’s offline distribution network, which accounts for up to 90% of sales, took a hit from Covid store closures during the period By Fai Pui Continual school closures with a steady stream of Covid…

Read More »

Jianzhi Bets on Education Stock Renaissance with New York IPO

Instructional materials provider sets price range and $34.5 million fundraising target a year after first filing for a New York listing Key Takeaways A year after first filing for a New York IPO, Jianzhi Education has set a price range of $5 to $7 and a $34.5 million fundraising target for the listing The listing would come after a strong trading debut for another Chinese education firm, indicating investor interest could be returning to the group after a major crackdown last year By Doug Young Could a new dawn be…

Read More »

Investors Unfazed as TAL Education Added to List of Chinese Firms at Risk of Delisting

The education company’s shares fell 1.6% after it was cited by the U.S. securities regulator for non-compliance with the Holding Foreign Companies Accountable Act Key Takeaways: The U.S. Securities and Exchange Commission has added TAL Education and two other firms to its list of Chinese companies that could be delisted The SEC and its Chinese counterpart have been silent for more than a month on their talks for a key information-sharing deal to end the delisting threat By Doug Young And the list goes on. After a frenzied period where…

Read More »

Golden Sun Education Shines Brightly in New York Trading Debut

The foreign language educator’s shares quadrupled on their New York debut on Wednesday, and continued to climb on their second day Key Takeaways: Golden Sun Education’s shares quadrupled in their first two trading days in New York, reflecting returning investor confidence to U.S.-listed Chinese stocks Company sold off several schools after last year’s Chinese crackdown on private education providers, and now focuses on foreign language tutoring services By Doug Young Is the sun finally set to shine again on new U.S. listings by Chinese companies? The answer appears to be…

Read More »

Is Koolearn’s Stock Surge on Boom in Livestreaming Business Just a Blip?

Gamble by tuition platform to transform into a livestreaming e-commerce business appears to have paid off, with sales booming and shares climbing more than sixfold in a week Key Takeaways: The company’s unique bilingual sales pitches by its anchors have drawn millions to the platform, which topped livestream e-commerce rankings for days But share price rise may have been due to frothy investor speculation in mainland stocks, as opposed to a broad positive long-term view of company fundamentals By Molly Wen If the recent sudden reversal of fortunes for shares…

Read More »

Dead Man Reawakening? Defunct Rise Education Reborn as EV Charging Company

Former education company backed by Bain Capital rises from the ashes through a reverse merger with the electric vehicle charging business of Newlink, another Bain-backed Chinese company Key Takeaways: Shares of the former Rise Education soared as it completed a reverse takeover merger with the electric vehicle charging business of Newlink The new company, NaaS Technology, provides software to help China’s growing legions of EV owners use the country’s vast charging network more efficiently By Edith Terry Life after death-by-regulation looks pretty good for one company in China’s defunct after-school…

Read More »