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 »

FAST NEWS: New Oriental Education Sees New Business Revenue Coming Soon

The latest: New Oriental Education & Technology Group Inc. (EDU.US; 9901.US) reported a 48% revenue decline to $614 million and a $122 million loss during its fiscal third quarter through February, according to its latest quarterly report released late Tuesday. Looking up: Founder and Chairman Yu Minhong said revenue from its overseas test preparation and overseas study consulting business – the remaining key business from its core education services – rose by 15% year-on-year. Its domestic test preparation business targeting adults and university students posted even stronger 59% year-on-year growth. Take…

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 »

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 »

FAST NEWS: Rise Education Hits All-Time Low After Auditor Resignation

The latest: Rise Education Cayman Ltd. (REDU.US) announced that Ernst & Young Hua Ming LLP (EY) resigned as its independent auditor effective Nov. 19. Looking up: EY’s resignation isn’t related to suspicions about accounting fraud, but rather to insufficient information. Rise Education has been caught up in China’s “Double Reduction” policy to reduce the burden on primary and secondary school students caused by extra-curricular tutoring, which has dealt a severe blow to Rise and many of its peers, who remain at risk of future additional measures. Take Note: Rise Education failed to…

Read More »