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…

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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…

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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…

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China East Education Shifts Into Conservative Spending Mode

Company discloses a go-slow program for spending $233 million in its coffers earmarked for development of five regional operating centers Key takeaways: China East Education has revealed it could take as long as 10 years to spend $233 million in remaining funds from its 2019 IPO earmarked for development of five regional centers Company’s conservative spending mode may reflect caution as it awaits results from China’s ongoing overhaul of its private education sector By Doug Young What do you do when the outlook for your industry looks extremely murky due…

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Education Stocks Could Offer Bargains – For Those Who Choose Correctly

Massive selloff saw Chinese educator stocks fall as much as 70% on Friday on fears government could ban them from operating for profit Key points: Latest government ‘opinion’ document could ban private after-school education companies from operating on for-profit basis Policy is likely to meet with industry pushback, and also protest from parents who see it as too extreme By Doug Young This week may look like any other for most people, but it has turned into a sudden life-or-death situation for many of China’s private education companies. The group…

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Investors Bet on Older, Offline Plays Among Battered Education Stocks

Embattled sector braces for reckoning day in September when all private educators will be required to have government licenses Key points: China East Education’s rally owes to its newly announced share buyback, as well as growing confidence it will suffer less impact from an ongoing sector crackdown Older players like New Oriental and TAL Education also look well positioned to weather the cleanup By Doug Young There’s nothing like a fire at someone else’s home to divert attention from your own burning house. That’s the latest message coming from China’s…

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Expansion or Retreat? Vocational Training Specialist China East Education Looks to Provinces

Privately owned traditional education pioneer shifts plans for IPO funds to focus on less-competitive non-Tier 1 cities Key Takeaways China East Education is shifting its strategy to focus on campuses in provincial capitals rather than Tier-1 centers Shift could boost revenue from long-term courses but undercut tuitions By Eric Auchard 欧加德 Vocational education company China East Education Holdings Ltd (0667.HK) is undergoing a mid-course correction, freeing up funds from its 2019 IPO to focus on a provincial-level expansion beyond the five Tier 1 cities where it previously focused its efforts.…

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