Education Crackdown Creates ‘Zombies Companies’ in Need of Transformation

Beijing municipal government’s new rules requiring non-profit status for after-school tutoring firms marks group’s latest setback Key points: Beijing has become the first major city requiring all after-school education companies to become non-profits, according to announcements from the companies Companies are unlikely to be shut down, but may have to sell core assets and look for new businesses to take advantage of their core skills and technologies  By Doug Young China’s bustling crowd of after-school tutoring providers are increasingly looking like field of “zombie companies.” That’s one key takeaway from…

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Spark Education Launches IPO Into Regulatory Storm

Looming crackdown aimed at easing pressure on students could force online small-class specialist to slash its fundraising plans Key points: Despite its rapid growth, Spark Education’s IPO is likely to get most scrutinized for its comments about China’s looming crackdown on extracurricular educators Regulatory uncertainty could force the company to slash its fundraising target by about half By Doug Young Talk about bad timing. Online education specialist Spark Education Ltd. has just filed its prospectus for a New York IPO that would look quite attractive if not for a huge…

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17 Education Offers Lesson in Localization

Company posts triple-digit revenue growth in first quarterly earnings report since IPO as it transitions from do-it-yourself learning to localized classrooms By Doug Young When is 153% revenue growth just a slight disappointment? The answer: When you’re 17 Education & Technology Group Inc. (Nasdaq: YQ), which just announced its first quarterly earnings report since its IPO late last year. And those results were decidedly mixed, with the company looking for gold in a crowded field of money-losing education firms. They’re all trying to tap the wallets of millions of Chinese…

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