Online education company Youdao Inc. (DAO.US) on Thursday reported its revenue rose slightly in the second quarter, as strong gains for its learning services offset declines for its smart device and online marketing services divisions.

The company, controlled by gaming giant NetEase, said its revenue rose 3.5% to 1.5 billion yuan ($223 million) in the three months to June from 1.4 billion yuan a year earlier. Revenue from its learning services rose 20.9% to 796 million yuan, making up more than half of total revenue, driven by strong momentum for tutoring services. But revenue from smart devices fell 31.5% year-on-year to 86.8 million yuan, while marketing services fell 7.7% to 584 million yuan.

The company swung to the black with a 73.8 million yuan profit in the second quarter, reversing a 17.8 million yuan loss in the year-ago period. Its non-GAAP net income rose to 90.6 million yuan in the second quarter from 12.5 million yuan a year earlier. The company also announced that NetEase founder Ding Lei has resigned from his longtime position as a member of Youdao’s board for personal reasons.

Youdao shares rose 1.3% on Thursday after the results were announced. The stock is up 75% this year.

By Doug Young

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Education services company New Oriental Education & Technology Group Inc. (EDU.US; 9901.HK) on Wednesday reported its revenue rose 23% in the three months through May, as it emerged from a difficult transition after a government ban of its original K-12 tutoring business.

New Oriental said its net revenue rose to $1.53 billion during the three months to May 31, the fourth quarter of its fiscal year, from $1.24 billion a year earlier. Revenues from its overseas test preparation and consulting business rose 3.6% year-on-year, while its domestic test preparation business targeting adults rose 29.1%. Its new educational initiatives rose 24.8%.

The company forecast it would generate $6.45 billion to $6.68 billion in revenue for its current fiscal year that runs through May 31, 2027, up 14% to 18% from the previous year.

New Oriental earned a profit of $62.2 million in the quarter through May this year, up more than eightfold from $7.1 million a year earlier. Excluding a $60.3 million goodwill impairment in its fiscal year through May 2025 and other adjustments, the company reported non-GAAP net income of $87.8 million in its fiscal year through May 2026, down 10.5% from the previous year.

New Oriental’s New York-listed shares rose 15.3% to close at $58.58 on Wednesday after the announcement. The stock is up 5.2% this year.

By Doug Young

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Vocational educator China New Higher Education Group Ltd. (2001.HK) on Tuesday reported its revenue rose 2.6% to nearly 1.5 billion yuan ($219 million) in the six months to March, the first half of its fiscal year, driven by higher tuition and boarding fees.

The company’s core operating costs climbed 4.9% year-over-year to 910 million yuan during the six-month period. That included a 5.3% year-over-year rise in labor costs, a result of rising compensation and benefits for core teaching roles. Its gross margin for the period fell by 1.3 percentage points to 37.2% from 38.5% a year earlier, while its net profit edged up 0.6% to 472 million yuan.

The company also said its partnership with Germany's Steinbeis University is steadily advancing to establish a higher education institution in the Hainan Free Trade Port, which will offer undergraduate and advanced degree programs.

Shares of China New Higher Education opened flat at HK$0.73 on Wednesday. The stock is down 50% from its 52-week high.

By Lau Chi Hang

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Tutoring services provider China Beststudy Education Group (3978.HK) announcedonThursday it expects to report its revenue ranged between 1.8 billion yuan ($263 million) and 2 billion yuan last year, up 63.3% to 81.5% from 2024. It projected its net profit for the year will be between 260 million yuan and 340 million yuan, up 35.2% to 76.8% year-on-year.

Management attributed the strong performance to strong user recognition for its teaching quality and service capabilities, and steady enhancement of its brand influence in the Guangdong-Hong Kong-Macao Greater Bay Area, where its regional expansion has delivered notable results.

Founded more than 28 years ago and headquartered in the city of Guangzhou, Beststudy is a K-12 extracurricular education services provider, offering primary and secondary academic tutoring and exam preparation courses. The company has shifted its focus in recent years toward compliant quality education and personalized learning, leveraging AI technologies to upgrade its education services.

Beststudy’s stock opened higher on Friday and closed at HK$3.45 by the midday break, up 3.92%. The stock is down about 13% this year.

By Lee Shih Ta

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Education services provider Tianli International Holdings Ltd. (1773.HK) said on Sunday that Chairman Luo Shi acquired 3.8 million of the company’s shares in the open market last Friday, representing about 0.18% of its total issued share capital.

Luo paid an average of HK$2.64 per share, spending HK$10.03 million ($1.28 million). He now holds 932 million shares, or 44.64% of the company’s total. The company said Luo does not rule out further increasing his holdings in the future.

The same day, the company repurchased 200,000 of its shares in the market, representing about 0.0095% of its total. Tianli said the buyback demonstrates the company's confidence in its business outlook and prospects, and will create value for shareholders.

Shares of Tianli International opened flat at HK$2.71 on Monday. The stock is down 45% from its 52-week high.

By Lau Chi Hang

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Vocational education platform Fenbi Ltd. (2469.HK) said on Sunday it has signed an agreement with Huatu Cendes (300492.SZ) to explore collaboration in recruitment examination preparation services. Fenbi said potential cooperation areas may include equity investment, corporate governance, technology development, distribution channel partnerships and customer service enhancements.

Fenbi indicated the tie-up could include potential integration of both parties' infrastructure and AI application technologies to expand their revenue bases or boost operational and marketing efficiency. Both sides believe the collaboration could substantially improve users' learning experience while consolidating their leadership position within the sector.

Huatu listed on Shenzhen Stock Exchange's ChiNext board in 2003. Its core businesses include construction engineering and design services, along with recruitment training, supported by an extensive network of physical branches.

Shares of Fenbi fell 5.8% on Monday to close at HK$2.46. The stock is down about 4% this year.

By Lau Chi Hang

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Shares of digital teaching and learning solutions provider Shanghai Able Digital Science & Tech Co. Ltd. (2687.HK) jumped in their Hong Kong trading debut on Monday, as the company raised HK$450 million ($58 million) after selling 6.67 million shares for HK$67.50 apiece.

The stock opened higher, and was up 26.2% at HK$85.20 midway through the Monday afternoon trading session. The Hong Kong portion of the listing for local investors was more than 4,000 oversubscribed, while the international portion was 1.3 times oversubscribed.

Able Digital will use 36.7% of the IPO proceeds for R&D, while another 31.8% will go to enhancing its customers service capabilities. The company’s revenue rose 14% year-on-year in the first half of 2025 to 275 million yuan, while its net loss for the period widened to 99 million yuan ($14 million) from 88.9 million yuan a year earlier.

By Doug Young

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China Education Group Holdings Ltd. (0839.HK) said on Wednesday it expects to report a net profit between 440 million yuan ($61.9 million) and 600 million yuan for its fiscal year through August, compared with a net profit of 502 million yuan a year earlier.

The company added it expects to recognize an impairment loss on goodwill and intangible assets related to certain cash-generating units (CGU) located in Hainan, Guangdong and Henan provinces. The anticipated impairment primarily reflects downward revisions to projected future cash flows of those CGUs, driven by intensified competition and reduced affordability in the current environment. 

Based on its preliminary assessment, the company expects the one-off, non-cash impairment loss, net of deferred tax, will range between 1.62 billion yuan and 1.7 billion yuan, and will be recognized in the 2025 fiscal year.

Shares of China Education opened down 4.5% at HK$2.98 on Thursday. The stock is down 27% from its 52-week high.

By Lau Chi Hang

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After-school education services provider Scholar Education Group (1769.HK) announced on Wednesday that it plans to place 110 million new shares with more than six independent third party investors, representing about 16.3% of its enlarged share capital, to raise HK$242 million ($31.13 million). The placement price of HK$2.20 per share represents a 13.04% discount to the stock’s latest closing price.

The company said proceeds will be used to enhance its teaching quality and learning experience, including curriculum development and facility upgrades, as well as to fund AI-related projects tied to its core business, and for working capital and general corporate purposes.

Scholar Education provides private education services in South China, offering art, sports, painting, performance and general education courses, as well as after-school care services. It recorded revenue of 439 million yuan in the first half of this year, up 10.1% year-on-year; its net profit of 62.93 million yuan for the period was down 23.9%, and its gross profit margin of 34.3% was down about 10 percentage points from a year earlier.

The company’s stock opened higher on Thursday and closed at HK$3.01 by the midday break, up 18.97%. The stock is down about 40% over the past six months.

By Lee Shih Ta

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Australian educator Top Education Group Ltd. (1752.HK) on Wednesday reported its revenue rose 16.5% to A$16 million ($10 million) in the six months to December last year, the first half of its fiscal year. It earned a profit of A$1.6 million for the period, up about 50%.

The company is based in Australia, but develops courses aimed at the Chinese students. In response to recent caps on foreign enrollment among educational institutions targeting overseas students, Top Education said it is developing new courses aimed at the domestic  Australian market.

The company it has held recently discussions with Liaocheng University focused on creating a pathway program where students start accounting courses at Liaocheng and complete them Top, qualifying them for provisional CPA status in Australia. The company’s other Chinese partner institutions with similar pathway programs include Guangxi University of Finance and Economics and Shandong Polytechnic College.

Shares of Top opened flat, but later rose and were up 5.3% in Thursday afternoon trade.

By Lau Chi Hang

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Vocational educator China New Higher Education Group Co. Ltd. (2001.HK) on Thursday announced its revenue rose 12.2% to 2.84 billion yuan ($392 million) in its latest fiscal year through August, while its net profit rose by a slower 7.5% to about 760 million yuan.

During the 12-month period, the company’s tuition revenue rose 13% to 2.15 billion yuan, and its revenue from accommodation fees rose 19% to 264 million yuan. But the company’s costs also increased by nearly 17%, mainly due to campus and equipment upgrades and teacher optimization. As a result, its gross profit margin fell by 1.7 percentage points to 36.3% from 38% in the previous fiscal year.

China Newer Higher Education announced it will pay a final dividend of $0.233 per share, but the amount will be payable wholly as scrip shares. The company’s stock opened lower and was down nearly 40% early in the Friday trading session.

By Lau Chi Hang

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New Oriental Education & Technology Group Inc. (EDU.US; 9901.US) reported Wednesday that its revenue rose 30.5% to $1.44 billion in its fiscal first quarter through August, while its net profit increased 48.4% to $245 million.

The company said it benefited from revenue growth of 20.7% to 49.8% for its new educational, overseas study consulting and domestic test preparation businesses, adding it will strike a balance between healthy and sustainable growth, while improving profitability by enhancing efficiency. New Oriental’s Hong Kong-listed shares fell 11% to HK$44.5 in early Thursday morning trade.

By A. Au

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Vocational educator China East Education Holdings Ltd. (0667.HK) said on Monday its wholly owned Wontone Senior Technical School was officially upgraded by the Anhui provincial government to Anhui Wontone Technician College. The upgrade makes the facility China East Education’s first technical college. 

The company said the upgrade “not only reflects the strength of the group in running schools … but also is a strong proof of the group’s determination to expand and strengthen the vocational education industrial parks, marking a solid step towards building a ‘vertical integration’ vocational education system in response to the call of the national policy.”

Anhui Wontone Technician College currently has more than 8,100 students and 463 full-time teachers, and has a building area of more than 150,000 square meters. China East Education’s shares fell 1.05% in Monday trade in Hong Kong after the announcement.

By Doug Young

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The maker of education products for children said its revenue fell 11% in the third quarter, while its profit plunged 41%

By Teri Yu

Children’s educational products and services provider iHuman Inc. (IH.US) reported on Friday its net income tumbled 41% year-on-year to 24.7 million yuan ($3.52 million) in the quarter through June from 42.1 million yuan a year earlier. Its revenue fell 11% to 215 million yuan from 241 million yuan a year earlier.

China’s slowing economy has hurt consumer spending on discretionary items like educational products and services like iHuman’s, leading many companies to report declining revenue. Despite the declines, iHuman pointed out the latest period was its 10th consecutive profitable quarter, and that it ended the period with a strong cash position of 1.13 billion yuan. The company’s average total monthly active users (MAU) for the latest quarter totalled 24.57 million, up 20.8% year-over-year.

“We made steady progress in advancing our strategic priorities, intensifying our efforts across multiple fronts to build momentum for our sustainable growth,” said CEO Peng Dai.

During the quarter, the company developed an experimental product specifically designed for use with Apple’s Vision Pro goggles, delivering immersive experiences that it hopes will captivate children.

iHuman has also accelerated its global expansion efforts, which led to a 26.4% increase in its sales and marketing expenses in the latest quarter. The company launched a few new themes targeting young audiences worldwide, and its Kunpeng animation studio also made notable progress internationally through its Cosmicrew franchise. The franchise gained visibility with a movie and animated TV series using the Cosmicrew name that aired in several global markets.

In mid 2021, China implemented regulations to reduce academic pressure on families and promote education equality, banning most after-school tutoring services for K-12 students. While that ban didn’t apply to children-oriented products and services like the ones sold by iHuman, it has spurred some education technology companies to explore international markets as a diversification move.

iHuman was founded in Beijing in 1996 initially focused on educational content. The company went public in October 2020 and has since leveraged advanced technologies such as AI and big data to create educational experiences through its various interactive apps.

The company’s shares rose 17.4% on Friday after the announcement, though even after the rally the stock is still down 33% this year.

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The Latest: Smart learning device maker Readboy Education Holding Co. Ltd. (2385.HK) reported Tuesday its non-GAAP adjusted loss in the first half of this year doubled to 34.22 million yuan ($4.8 million) from 17.7 million yuan a year earlier.

Looking Up: The company’s revenue grew by 31.1% to 165 million yuan as it introduced a new line of learning machines that boosted average selling prices for its main tablets. At the same time, the company also improved its operation by reorganizing its sales channels.

Take Note: Its cost of sales increased by 68% to 130 million yuan due to its higher sales volume, causing its loss to widen in the first half of the year.

Digging Deeper: Founded in 1999, Readboy designs, manufactures and sells smart learning devices. Its initial products were rudimentary reading machines, and it later moved into personal student tablets, smart classroom solutions, wearable products and smart accessories. The company applied to list three times and finally debuted on the Hong Kong Stock Exchange in July last year. Readboy relied mostly on offline sales in the past, with the result that it took a severe hit during the pandemic. Since then, it has stepped up its online sales and marketing efforts, helping to significantly raise its revenue.

Market Reaction: Readboy’s shares rose on Tuesday, closing up 1.2% at HK$6.8 by the midday break. The stock now trades at the middle to lower end of its 52-week range.

Translation by A. Au

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Shares of YXT.com Group Holding Ltd. (YXT.US) sank 8.9% in their U.S. trading debut on Friday after pricing at the bottom of their range. The provider of corporate education services priced its American Depositary Shares (ADS) at $11, after previously setting a range of $11 to $13. The stock ended its first trading day at $10.02.

YXT raised about $25 million by selling 2.27 million ADSs, short of its previous goal of raising $36 million. The company’s revenue fell slightly from 431 million yuan ($69 million) in 2022 to 424 million yuan last year. The declines continued this year, as the company’s revenue skidded 33% to 83.2 million in the first quarter from 122.2 million yuan a year earlier.

By Doug Young

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The Latest: Chinese vocational educator Minsheng Education Group Co. Ltd. (1569.HK) issued a profit warning last Friday, forecasting its net profit for the first half of this year will drop by about 64% from 307 million yuan in the same period last year.

Looking Up: The company’s costs have risen as a result of higher investment in the business, which may help to increase future revenues.

Take Note: The main reasons for the decline in its earnings were a sharp rise in the cost of its professional teaching team due to its expansion, an increase in tax expenses, and a sharp decline in net profit from its online education business.

Digging Deeper: China’s private education sector has suffered a major blow under the government’s “double reduction” policy launched in 2021, which aimed to ease the work burden on K-12 students. But private investment in vocational education, with its focus on adult learning, has been spared that pain and is even being encouraged. As a private vocational education group, Minsheng Education’s business has benefited. The company’s revenue has remained stable at over 2.3 billion yuan over the past three years, but has been on a downward trend in recent years as costs have increased.

Market Reaction: Minsheng Education’s shares plunged on Monday, closing down 11.2% at HK$0.174 by the midday break, a 52-week low.

Translation by A. Au

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The Latest: Private vocational educator China New Higher Education Group Co. Ltd. (2001.HK) said its profit rose 10.6% to 432 million yuan ($59.6 million) during the first half of its fiscal year through February, according to its latest interim results released on Wednesday.

Looking Up: The company’s revenue increased 13.8% to 1.31 billion yuan during the six-month period, aided by steady growth in tuition and boarding fee income.

Take Note: Its cost of sales increased by 12.9% to 790 million yuan, the result of ongoing campus and laboratory upgrades, as well as optimization of its teaching cost structure and strengthening of the quality of its teaching team.

Digging Deeper: Founded in 1999 and headquartered in Beijing, New Higher Education is a leading provider of higher education services in Southwest China. The company launched eight new majors in 2021, including ones closely following current science and technology trends such as smart manufacturing engineering, big-data technology, internet and new media. Meanwhile, it has also entered fields in need of specialists to deliver basic public services, such as community rehabilitation, childcare services and early education. Those additions have helped the company to post revenue and profit gains since 2021, even in the face of pandemic headwinds during that time.

Market Reaction: New Higher Education shares dipped on Thursday, closing down 1.3% to HK$2.26 at the midday break. It now trades in the middle of its 52-week range.

Translation by A. Au

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The leading vocational educator’s number of newly enrolled students rose by 13.8% last year, but its tuition revenue rose at just a third of that rate

By Teri Yu 

Vocational educator China East Education Holdings Ltd. (0667.HK) last year enrolled legions of Chinese looking to boost their skills in a slowing domestic economy, even as that same economic slowdown pressured its own tuition income.  

The company’s 2023 annual results filed last week show its new student enrollments grew 13.8% last year to over 152,000. But its tuition revenue rose just 4.2% to 3.98 billion yuan ($551 million), as its average tuition per student grew just 1.3%. Still, the growth marked an improvement from the 6.5% decline in its average tuition fee per student in 2022.

Headquartered in Hefei, China East Education operates a network of 245 schools across China and Hong Kong covering vocational training in culinary arts, data and information technology, fashion and beauty, and auto repair. 

Its Chinese culinary education programs continued to be its biggest revenue contributor last year, accounting for over 46% of its total, though the segment’s revenue shrank slightly from a year earlier. 

The company’s gross margin fell to 48.0% last year from 49.5% a year earlier, as it cited higher costs for teaching salaries and benefits. Its net profit declined 25.8% from 368 million yuan in 2022 to 273 million yuan last year, also reflecting higher expenses and margin contraction across its different types of vocational programs. 

Vocational training has traditionally been perceived as inferior to university education in China, leading many to pursue the latter when the economy was booming. But the government has been trying to change that perception as the nation suffers from an imbalance with too many college graduates who have relatively little skills. At the same time, there are not enough skilled workers in areas like auto repair and computer maintenance.

Last July, China’s Ministry of Education issued a statement announcing a nationwide revamp of its occupational training system to help supply more skilled engineers and blue-collar workers to fill a need in its manufacturing and technology sectors. 

China East Education said it will further increase the proportion of students studying in three-year long-term courses by establishing vocational education industrial parks with better teaching and training facilities. 

Its plans to expand and diversify its course offerings may lower its reliance on culinary arts by providing more high-tech related training programs to meet growing demand from China’s advanced manufacturing and hi-tech sectors. As China’s youth unemployment rate continues to rise, companies like China East Education are expected to benefit by attracting people looking to improve their skill sets to make themselves more employable. 

China East Education’s stock fell slightly last Thursday after the results came out, but then bounced back and were up nearly 3% late on Tuesday, the first day of trade after Hong Kong’s long Easter holiday. 

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The latest: Civil service exam preparation company Fenbi Ltd. (2469.HK) said on Monday it will report a net profit of 166 million yuan ($23 million) or more for 2023, reversing a loss of 2.09 billion yuan in 2022.

Looking up: The return to profitability was mainly attributable to strong demand for tutoring for people preparing to take China’s civil service exam last year, as well as ongoing optimization of Fenbi’s cost structure, which helped to significantly boost its gross and net margins.

Take Note: Excluding share-based compensation, losses on financial liabilities measured at fair value and listing expenses, the company expects to report an adjusted profit of 420 million yuan or more for 2023.

Digging Deeper: Fenbi, whose name means “chalk” in Chinese, was formerly part of an online education services company, and was hived off as an independent entity in 2020 to focus on tutoring for China’s civil service examinations. It enjoys a leading position in online education for aspiring professionals looking for such jobs, which are considered relatively secure in economically uncertain times. Its online platform has 56.2 million registered users, and its average monthly active users rose from 6.5 million in 2021 to about 9.2 million at the end of June 2023. Last year, it raised about HK$200 million ($25.6 million) in its Hong Kong IPO.

Market Reaction: Fenbi’s shares closed down 4.6% at HK$4.76 by the midday break on Tuesday, down by roughly half from its IPO price of HK$9.90 last year.

Translation by A. Au

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The latest: China Maple Leaf Educational Systems Ltd. (1317.HK) on Monday announced it earned a net profit of 15.48 million yuan ($2.1 million) in the six months to February, the first half of its fiscal year, reversing a loss of 45.58 million yuan a year earlier.

Looking up: The company’s local and overseas students rose by 35.9% and 22.5%, respectively, driving a 10.7% jump in its revenue for the period to 575 million yuan, led by an increase in tuition fee income.

Take Note: The positive revenue growth was partially offset by a 5.9% increase in the company’s cost of revenue and a 21.3% rise in administrative expenses.

Digging Deeper: Established in 1995 and listed on the Hong Kong Stock Exchange in 2014, Maple Leaf is one of China’s leading operators of international schools in terms of enrollment, and also operates international schools in Malaysia, Singapore and Canada. Its business took a hit two years ago after China restricted private operators of schools at the K-12 compulsory education level, a market that Maple Leaf caters to, resulting in a huge loss of more than 3.1 billion yuan for the company that financial year. The company’s shares have been suspended from trading since the end of April last year due to its failure to announce financial results in a timely manner.

Translation by A. Au

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The latest: Smart learning device maker Readboy Education Holding Co. Ltd. (2385.HK) said Sunday it expects to record a non-GAAP adjusted loss of 15 million yuan ($2.07 million) to 20 million yuan in the first half of this year, far worse than the adjusted profit of 17.5 million yuan recorded in the same period last year.

Looking up: The company's gross margin improved in the first half of the year due to higher pricing of new products and an increased share of sales on proprietary platform, which partially offset the unfavorable impact of lower sales.

Take Note: Its earnings performance was affected by the impact of the international environment on the domestic economy, the decrease in sales of personal student tablets and wearable products as some customers adopted a more cautious attitude towards consumption in the aftermath of the Covid epidemic, as well as increased competition from other companies joining the education electronics industry.

Digging Deeper: Founded in 1999, Readboy is engaged in the design, manufacture and marketing of various smart learning devices. Its initial core product was rudimentary reading machines, which later developed into the production of personal student tablets, smart classroom solutions, wearable products and smart accessories. The company has applied for listing three times and was finally debuted on the Hong Kong Stock Exchange in July last year, raising HK$365 million ($46.8 million). Its financial performance was deeply affected by the Covid epidemic, with its revenue plummeting 25.6% to 605 million yuan and adjusted profit dropping an even bigger 91.8% to 6.33 million yuan.

Market Reaction: Readboy’s shares dropped Monday morning and were down 0.6% to $7.91 by the midday break, 4% higher than its listing price of HK$7.60 a year ago.

Translation by A. Au

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The latest: Online tutoring services provider 17 Education & Technology Group Inc. (YQ.US) reported Wednesday that its first-quarter revenue plunged by 96% to just 9.27 million yuan ($1.3 million), while its net loss more than tripled to 92.5 million yuan.

Looking up: The company's first-quarter cost of revenue was 7.0 million, a 92.4% decrease from 91.8 million in the same period last year, which was largely in line with the revenue decrease.

Take Note: Covid disruptions in China at the end of last year led to delays in the bidding and delivery processes for some of the company's major projects, affecting its revenue recognition in the first quarter.

Digging Deeper: Founded in 2011 and listed on the Nasdaq in 2020, 17 Education operates an advanced K-12 smart education platform. Its revenue plunged 75.7% to 530 million yuan last year following a crackdown on extracurricular tutoring for K-12 students by China's Ministry of Education that began in 2021. Following the crackdown, the company has shifted to a new business model that focuses on providing school districts and educators with digital products and services to help with lesson planning and delivery, homework-related activities and academic assessments.

Market Reaction: 17 Education’s shares rose 1.9% in New York during the regular trading day on Wednesday, but fell 4.7% to $1.01 in after-hours trading after the quarterly results were announced. The stock now trades near the lower end of its 52-week range.

Translation by Jony Ho

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The Latest: Adult education company QuantaSing Group Ltd. (QSG.US) made its IPO trading debut on Wednesday, becoming the first new U.S. listing by Chinese company sponsored by big investment banks in more than a year.

Looking Up: The company’s American depositary shares (ADSs) priced at $12.50, in the middle of their range of $11.50 to $13.50, reflecting relatively strong demand.

Take Note: QuantaSing raised a modest $40 million from the IPO, slightly more than its 233 million yuan ($34 million) loss for its most recent fiscal year through June 2022.

Digging Deeper: QuantaSing provides adult education services, with a focus on financial literacy instruction. The company’s revenue grew 63% to 2.87 billion yuan in its fiscal year through June 2022, though the figure contracted in its latest reporting quarter through September last year. The company’s listing is most notable for its big-name underwriters, including U.S. giant Citigroup and Chinese majors CICC and Citic Securities. Such big investment banks stopped underwriting new American listings for Chinese companies for more than a year due to a dispute between the U.S. and Chinese securities regulators. But that dispute was largely resolved in the second half of last year, paving the way for new listings to resume this year.

Market Reaction: QuantaSing’s shares jumped nearly 10% when trading began on Wednesday. But they later gave back the gains and even traded below the IPO price, before closing at $12.52, slightly above the IPO price.

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Reporting by Doug Young

The Latest: Shares of civil service education services provider Fenbi Ltd. (2469.HK) opened at HK$10.50 in their Monday trading debut, 6.1% higher than their IPO price of HK$9.90, which was the upper end of its price range.

Looking Up: The local portion of the company’s public offering in Hong Kong was oversubscribed by about 33 times, raising HK$120 million ($15.4 million) in net proceeds.

Take Note: Fenbi is still in the red with a net loss of 2.05 billion yuan ($300 million) in 2021. The company recorded another loss of around 392 million yuan in the first half of 2022 due to continued expansion of its classroom-based tutoring and disruptions caused by the Covid pandemic.

Digging Deeper: Fenbi, whose name means “chalk” in Chinese, was formerly part of an online learning unicorn, defined as a company worth more than $1 billion, before the Chinese government began cracking down on private tutoring services providers. It was hived off as an independent entity in 2020 to focus on tutoring for China’s civil service examinations, and enjoys a leading position in online education for aspiring professionals. Its online platform has 43 million registered users, and its average monthly active users rose from 6.5 million in 2021 to about 7.5 million at the end of June in 2022. Tutoring for takers of China’s civil service exams accounted for around 67% of its revenue in the first half of 2022.

Market Reaction: Fenbi’s stock continued to rise after the open and was up 13.9% at HK$11.28 by the midday trading break on Monday.  

Reporting by Chan Ka Po

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The latest: Koolearn Technology Holding Ltd. (1797.HK) announced on Friday its revenue dropped 36.7% to 899 million yuan ($130 million) in its fiscal year ended May 31, with its net loss narrowing 67.8% to 534 million yuan.

Looking up: In the wake of a government crackdown, the company terminated its K-12 education-related business at the end of last year and focused on providing college test and overseas test preparation courses. Revenue from this business decreased by 5.7% year-over-year to 518 million yuan, a relatively modest decline compared to the much steeper fall in the company’s K-12 and pre-school education business.

Take Note: Koolearn’s livestreaming e-commerce segment, which was launched in December last year, only recorded revenue of approximately 24.6 million during the reporting period, accounting for less than 3% of its overall revenue.

Digging Deeper: Since ceasing its K-12 online training business last year following a government crackdown, Koolearn, the online education arm of New Oriental Education (EDU.US; 9901.HK), has been trying to transform to other businesses to survive. Under the leadership of Chairman Yu Minhong, the company opened a livestreaming e-commerce business to promote agricultural products in December, but initial sales were disappointing. That business has performed better with the company’s June launch of unique bilingual sales pitches by its anchors, many of them former teachers,  drawing the attention of netizens. The number of fans of its platform surpassed 20 million by the end of June, with rapidly rising sales expected to generate significant revenue in Koolearn’s current fiscal year.

Market Reaction: Koolearn shares surged 15.5% in early trade on Monday, but then gave back most of that before closing up 5.3% at HK$22.80 at the midday break. The stock currently trades near the high end of its 52-week range.

Translation by Jony Ho

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The latest: Chinese vocational educator Minsheng Education Group Co. Ltd. (1569.HK) announced on Wednesday that its net profit fell 12% in the first half of the year to 339 million yuan ($50 million), and added it won’t distribute an interim dividend.

Looking up: Despite the challenges of disruptive Covid control measures throughout the reporting period, the group still managed to post 2.9% year-on-year revenue growth to 1.27 billion yuan, benefiting from higher tuition and boarding fee income.

Take Note: The profit decline was mainly due to an increase of over 10% in administrative, selling and distribution expenses, as well as a 22% increase in financing costs.

Digging Deeper: China’s private education sector has suffered a major blow under the government’s “double reduction” policy launched last July, which aimed to ease the work burden on K-12 students. But private investment in vocational education, with its focus on adult learning, has been spared that pain and is even being encouraged. With the implementation of a newly revised Vocational Education Law in May, Beijing has clearly established that vocational education is of equal importance to general education, and is supportive of participation by private enterprises in the sector. As a private vocational education group, Minsheng Education's business has benefited and recorded a 116% year-on-year jump in revenue and a more than three-fold increase in net profit last year. The company has also acquired major stakes in several online education companies, making it one of China’s largest “internet + vocational” educators.

Market Reaction: Minsheng Education’s shares sank Thursday morning, ending down 3.2% at HK$0.61 at the midday break. The stock now trades at the lower end of its 52-weeks price range.

Translation by Jony Ho

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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 Note: Following the Chinese government's "double reduction" education policy designed to ease pressure on students from too much homework and after-school classes, the company's total number of schools and learning centers fell by 778 from a year ago to 847 at the end of February.

Digging Deeper: China’s "double reduction" policy, aimed at reducing the burdens of extra homework and after-school classes for K-12 students, has decimated the after-school tutoring industry following its launch last September. Both revenue and share prices of many companies have plunged by more than 90%, and many smaller players have folded completely. Yu Minhong once revealed that New Oriental, the former sector leader, had laid off 60,000 employees and bore nearly 20 billion yuan ($76 million) in dismissal, employee compensation and rent surrender costs. In order to survive, the company has shifted its business to smart learning systems, study tours and camps, live streaming, movies and art, and even designing and manufacturing microchips. In its latest quarterly report, Yu said he expects these new businesses to start providing revenue in New Oriental’s next fiscal year that starts in June, and is confident the company has a bright future.

Market Reaction: New Oriental's U.S. shares sank 6.3% to $9.75 on Tuesday. Its Hong Kong shares opened down 5.7% on Wednesday, but recovered in the morning and closed up 0.4% at HK$7.88 at the midday break. But the stock is still down 94% from its 52-week high.

Translation by Jony Ho

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The latest: Online education company Koolearn Technology Holding Ltd. (1797.HK) said its interim loss for the six months through last November narrowed by 19.3% year-on-year to 544 million yuan ($85.9 million), according to an announcement issued late on Friday.

Looking up: The group's total revenue for the period decreased by 15.3% year-on-year to 573 million yuan. But its costs also fell by 23.5% to 400 million yuan, mainly due to the phasing out of its K-9 business under China’s recent new education regulations.

Take Note: The company's university education business and the number of fee-paying university students, which are not affected by the new education policy, also recorded decreases of 8.5% and 8%, respectively, mainly due to adjustments in its core products and marketing strategies.

Digging Deeper: China’s private education sector is fighting for its survival amid an ongoing regulatory overhaul that has banned for-profit companies from offering K-9 courses in core curriculum areas. Yu Minhong, chairman of New Oriental Education (9901.HK, EDU.US), Koolearn’s parent, recently said that his company will transform its business to live streaming e-commerce, among other things. Koolearn has said it is fully committed to this new business, and plans to leverage its existing online education facilities and technology to develop that area in cooperation with its parent. It has begun trying out livestreaming activities on well-known short-video platforms such as Douyin. New Oriental’s future goals include promotion of agricultural products and related products from different parts of China through its livestreaming business to help develop the nation's agricultural industry

Market Reaction: Koolearn’s shares surged more than 14% to HK$5.25 when trading began on Monday. But the stock is still down more than 80% from its high of HK$30.05 last January.

Translation by Jony Ho

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The latest: Online tutoring services provider 17 Education & Technology Group Inc. (YQ.US) disclosed that K-12 classes that are being discontinued following a government clampdown accounted for 94.1% of its revenues in its fiscal year 2020. It made that disclosure as part of the announcement for its third-quarter financial results released on Monday.

Looking Up: The company’s latest results showed its revenue rose 61.8% in last year’s third quarter to 496.8 million yuan ($78.2 million). It also noted it had 1.4 billion yuan in cash that could provide a cushion as it seeks to transform itself following China’s education crackdown.

Take Note: Of the 496.8 million yuan in third-quarter revenue, 477.7 million yuan, or about 96% of its total, came from K-12 services, most of which it can no longer offer under China’s new education sector rules that took effect in September.

Digging Deeper: The company also announced that it has “formed clear new business strategies” to ensure its future following the loss of revenues after China’s education crackdown. Most of China’s sector offering after-school instruction is seeking similar new directions, focusing on areas like art education and study abroad that aren’t restricted by the new rules. Under the crackdown announced during the summer and implemented in September, for-profit companies are banned from offering instruction in core curriculum areas to most elementary and high school students.

Market Reaction: 17 Education’s shares fell about 6% on Tuesday after the announcement. At their latest close of $1.10, the shares have lost nearly 90% of their value from their $10.50 IPO price in December 2020, giving the company a market value of just $54 million.

Reporting by Doug Young

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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 provide additional information to EY to allow it to assess the impact of the "Double Reduction" policy on the company’s operations. So the auditor decided it was unable to assess the situation and resigned the account.

Digging Deeper: Since China’s Ministry of Education rolled out its strict limits on off-campus subject training, institutions that provide such training have adopted different responses. Rise Education CEO and Chairwoman Wang Lihong in late October offered to acquire all the company's domestic assets at a “zero price,” hinting that the listed company had conceded in the face of the strict new measures. Since then, the company's shares have lost more than half of their value and face potential delisting from the Nasdaq.

Market Reaction: Rise Education’s stock plunged another 8.73% after the latest announcement to close at a historical low of $0.59. Year to date the stock has lost about 90% of its value.

Translation by Jony Ho

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The latest: Online tutoring services provider Youdao Inc. (DAO.US) announced its revenue grew 54.8% year-on-year to 1.4 billion yuan ($215 million) in the third quarter. Meantime, its net loss narrowed sharply by 85.3% to 129 million yuan.

Looking up: The company’s revenue from learning products grew 56% to 255 million yuan on strong growth for its smart learning hardware business. Revenue from its learning services also soared by 65.9% to 996 million yuan. Despite recording a loss for the quarter, the company’s loss margin from operations fell sharply to 9.3% from 99.8% in the same period a year earlier.

Take note: Regulatory changes affecting tutoring services for primary students caused Youdao’s gross billings for online courses to drop by 33.9% to 632 million yuan; gross billings for its premium courses also decreased by 34.6% to 573.5 million yuan.

Digging deeper: China’s recent crackdown on extracurricular tutoring, aimed at reducing the homework burden for primary and secondary students, has dealt a huge blow to extracurricular education operators. Youdao's business is more diversified than many of those, relying on a wider range of learning products and related services beyond courses targeted at primary and secondary students. Youdao also announced it will cease its compulsory education-stage subject training business at the end of the year, and will focus on the four major businesses of intelligent learning hardware, quality education, adult education and education informatization.

Market reaction: Youdao’s stock jumped 17.2% on Tuesday, the day it announced its quarterly results. The stock gave back some of those gains the next day, and closed down 3.45% for the day at $17.07.

Translation by Jony Ho

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The latest: Educational services provider New Oriental Education & Technology Group Inc. (9901.HK; EDU.US) announced plans to terminate its primary school curriculum-based tutoring services for students from kindergarten to 9^th grade in all of its learning centers nationwide by the end of this year.

Looking up: The move will put the company in compliance with new regulatory steps to rein in the after-school tutoring business, which will reduce the risk of future policy supervision. The company will use the pivot to explore new business opportunities such as test preparation and adult language education to offset the lost income.

Take Note: Curriculum-based K-9 classes accounted for as much as 50% to 60% of New Oriental’s revenue in its last fiscal year. That means the decision will have a significant adverse impact on its operating revenue for the current fiscal year that runs through May 2022.

Digging Deeper: Following a government clampdown on after-school tutoring dating back to July, Koolearn Technology Holding Ltd. (1797.HK), New Oriental’s online education subsidiary, announced last month that it would stop providing K-9 students with curriculum-based after-school tutoring services. Now New Oriental has provided its response to the impact it will feel. According to the Ministry of Education, more than 40% of classroom curriculum-based training institutions have closed since the changes were first announced. Shares of some listed education companies have fallen by 90% or more, and many have announced plans to transform their business model.

Market Reaction: New Oriental’s Hong Kong shares initially rose 0.7% after the announcement, but later reversed course and were down by 1.1% midway through the trading day on Monday.

Translation by Jony Ho

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The latest: Koolearn Technology Holding Ltd. (1797.HK) said it will stop offering after-school tutoring services for kindergartners to ninth-year students (K-9) for academic subjects included in China’s compulsory education system. The Hong Kong-listed online arm of education giant New Oriental (EDU.US) said the cessation will take place by the end of November, according to a statement released after markets closed on Monday.

Looking Up: The move, a response to China’s ban on such classes by for-profit companies, will remove a huge overhang for Koolearn, allowing the education services provider to move forward on a more solid footing. China’s after-school tutoring services sector has been in a state of turmoil since new rules recently took effect aimed at easing pressure on students from after-school coursework.

Take Note: Classes being discontinued accounted for between 58% and 73% of the company’s K-12 education services business over the company’s last two fiscal years through May 2021, Koolearn estimated. K-12 services generated 787 million yuan ($123 million), or more than half of Koolearn’s total revenue of 1.4 billion yuan in its latest fiscal year.

Digging Deeper: The roughly dozen publicly-listed Chinese companies offering after-school tutoring services have lost most of their value since the start of the year, with some stocks down 90% or more. Koolearn is one of the first companies to announce how it will move ahead under the new restrictions. Based on its latest announcement, the discontinued business should result in a reduction of 32% to 40% of its current revenues.

Market Reaction: Koolearn shares were down 2.8% at HK$4.88 late on Tuesday, giving the company a market value of HK$4.9 million ($630 million). The shares are down about 80% this year, but have stabilized at their current level since early August as more details of the new restrictions emerged.

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