FAST NEWS: Readboy loss widens as cost of sales jumps
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
To subscribe to Bamboo Works weekly free newsletter, click here
