FAST NEWS: Koolearn Proposes New Name in Move From Education
The latest: Koolearn Technology Holding Ltd. (1797.HK) on Thursday proposed changing its name to East Buy Holding Ltd. to reflect its new business direction.
Looking up: The company believes the change better aligns with its current and future business direction and will facilitate long-term brand building.
Take Note: Dropping the Koolearn Technology name suggests the company will move away from its original focus in online education, following a government clampdown on the sector. But the company’s college education business, which wasn’t affected by the crackdown, still contributed 518 million yuan ($75 million) in revenue last fiscal year, accounting for 57.6% of its total.
Digging Deeper: Since ceasing its K-12 online tutoring business in late 2021 following a government ban, Koolearn, the online education arm of New Oriental Education (EDU.US; 9901.HK), has been trying to move into other businesses to survive. Under the leadership of Chairman Yu Minhong, the company opened a livestreaming e-commerce business to promote agricultural products. That business got off to a strong start last June by using creative bilingual sales pitches delivered by its former English teachers. That service generated more than 5 billion yuan in gross merchandise volume (GMV) in the second half of last year, according to media reports.
Market Reaction: Koolearn shares jumped on Friday to close up 5.7% at HK$54 by the midday break. They now trade at the upper end of their 52-week range.
Translation by Jony Ho
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