China Online Education Group (COE) stock soared 3.36% in the current-market trading session at the price of $2.46 despite no fundamental reason. The last reported news was its financial results for the second quarter of 2021. COE is a virtual education system that aims to make higher education affordable and accessible.
COE Reported Second Quarter 2021 Financial Results
On 28th September 2021, COE published its financial results for the second quarter ended on 30th June 2021, and provided business updates.
Chief Executive Officer of 51Talk, Jack Jiajia Huang, remarked that their second-quarter revenue increased RMB579.8 million, a year-over-year gain of 35.7% in the number of active students. On 24th July 2021, the Chinese officials issued the Opinions on Alleviating the Burden of Homework and After-School Tutoring for Students. The Opinion had certain policy directives about the terms and limitations for both online and offline education services. 51Talk had launched updated Proficiency Courses for children and youngsters taught by Chinese teachers. It intends to expand its overseas business by presenting one-on-one classes for K-12 and adult students led by foreign teachers, Mr. Huang concluded.
Chief Financial Officer of 51Talk, Mr. Min Xu, commented that new challenges have brought new opportunities. They will keep updating courses and exploring growth opportunities while obeying the revised frameworks and regulations. The company reported net loss of RMB27.0 million for the second quarter due to higher operating expenses from brand building and upgrading courses services. COE has taken measures to adapt to the latest operating circumstances under the new ordinance. The company will continue to create value for its students and teachers while adhering to all rules and regulations, he added.
COE reported net revenues of RMB579.8 million (US$89.8 million) for the second quarter ended 30th June 2021. It represents a 17.5% gain from RMB493.5 million compared to the same quarter of 2020. The number of enrolled students was 404,700 in the second quarter of 2021. It is a 35.7% gain from 298,200 in the same period of the previous year.
COE reported a net loss of RMB27.0 million (US$4.2 million) for the second quarter of 2021. Net income was RMB32.8 million for the same quarter of the prior year. Gross profit was RMB421.6 million (US$65.3 million) for the second quarter ended 30th June 2021. It represents a rise of 20.5% from RMB349.9 million for the same quarter of 2020.