Core Viewpoint - Beijing Haixue Education Technology Co., Ltd. has submitted its main board listing application to the Hong Kong Stock Exchange, despite facing significant financial losses and a heavy reliance on its construction training business [1][2]. Financial Risks: Expanding Losses and Cash Flow Pressure - The company has shown a clear trend of "increasing revenue without increasing profit," with revenues growing from 400 million to 511 million yuan from 2022 to 2024, while net losses were 186 million, 175 million, and 90.7 million yuan respectively [2]. - In the first half of 2025, the net loss expanded by 125.7% year-on-year, with revenue declining by 5.3% to 232 million yuan, indicating worsening profitability [2]. - The company reported negative operating cash flow of 1.5 million yuan in the first half of 2025, raising concerns about its ability to sustain operations and fund business strategies [2]. - Accounting losses due to changes in the fair value of financial instruments have contributed significantly to the company's losses, reflecting a disconnect between investor expectations and actual profitability [2]. Business Structure: Overreliance on Construction Training - The company's revenue from construction-related vocational qualification exam courses accounted for nearly 60% of total revenue from 2022 to the first half of 2025 [3]. - This heavy reliance on the construction sector ties the company's performance to the cyclical nature of the real estate and construction industries, which are currently undergoing adjustments [3]. - Although the company is attempting to diversify into finance, law, and healthcare training, it acknowledges that returns from these new ventures may initially be lower than from existing construction-related courses [3]. - The online vocational training market in China is projected to grow from 46.9 billion yuan in 2024 to 60.2 billion yuan by 2029, with a modest compound annual growth rate of 5.1%, posing additional challenges for the company's expansion efforts [3]. Marketing Dependence: High Customer Acquisition Costs and Low Conversion Efficiency - The company's sales and marketing expenses have consistently exceeded 60% of total revenue from 2022 to the first half of 2025, with marketing costs reaching 1.47 billion yuan in the first half of 2025, accounting for 63.4% of total revenue [4]. - Customer acquisition costs have risen to 441.2 yuan in the first half of 2025, up from 414.8 yuan in 2022, yet the company has not seen a stable increase in paying users, with a decrease of 275,200 paying users in 2024 [4]. - In contrast to high marketing expenditures, the company's investment in research and development has been relatively limited, with R&D spending of 23.66 million yuan in 2024, lower than 24.53 million yuan in 2022, and only 4% of total revenue in the first half of 2025 [4]. Compliance Risks: Historical Issues and Ongoing Complaints - The company faces significant compliance risks, having been publicly criticized in 2020 for refund difficulties, which were highlighted by a major media outlet [5][6]. - Despite establishing a special task force and suspending operations of involved subsidiaries, issues have not been fully resolved, with over 8,000 complaints on a consumer complaint platform as of October 30, 2025, primarily related to false advertising, refund difficulties, and inducement to consume [6]. - The company has faced seven administrative penalties since 2016, including a fine of 200,000 yuan in July 2019 for misleading advertising practices [6]. - The company plans to use IPO proceeds for AI technology development, expanding service offerings, and network expansion, but the effectiveness of these investments in improving the business fundamentals remains uncertain [6].

Core Viewpoint - Beijing Haixue Education Technology Co., Ltd. (Haixue) has filed its prospectus on the Hong Kong Stock Exchange, with Zhuhai International as the sole sponsor. The company is positioned as the fourth largest online vocational training service provider in China by revenue in 2024 according to a Frost & Sullivan report [1]. Financial Performance - Haixue's revenue primarily comes from construction-related vocational qualification examination courses, which accounted for 68.2%, 61.5%, 59.3%, and 59.8% of total revenue in 2022, 2023, 2024, and the six months ending June 30, 2025, respectively [1]. - The company's revenues for the years 2022, 2023, 2024, and the six months ending June 30, 2025, were RMB 400.0 million, RMB 472.2 million, RMB 510.5 million, and RMB 231.6 million, respectively [2]. - Net losses for the same periods were RMB 185.8 million, RMB 175.0 million, RMB 90.7 million, and RMB 158.3 million, with a cumulative net loss of RMB 609.8 million over the past three and a half years [1][2]. Shareholding Structure - The company has a single largest shareholder group, with concerted action agreements allowing them to exercise approximately 32.61% of the voting rights [3]. - Key shareholders include Liang, who controls about 29.91% of the voting rights, and other significant shareholders such as Zhang and various investment entities [4]. Regulatory and Market Challenges - Haixue has faced scrutiny, having been named in a CCTV "3.15" program in 2020 for issues related to refund difficulties, false promises, and misleading advertising [5].

Core Viewpoint - Beijing HiLearn Education Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, aiming to capitalize on its position as a leading provider of online vocational training services in China [1] Group 1: Company Overview - HiLearn is the fourth largest online vocational training service provider in China by revenue for 2024, and the largest in online construction vocational training [1] - The company offers tailored training services in various fields, including construction, emergency safety, finance, law, and healthcare [1] - As of June 30, 2025, HiLearn has served approximately 4.3 million paying users and over 130 enterprises and institutions [1] Group 2: Financial Performance - The company reported revenues of approximately RMB 400 million, RMB 472.18 million, RMB 511.54 million, and RMB 232.06 million for the years 2022, 2023, 2024, and the first half of 2025, respectively [2][3] - The net losses for the same periods were approximately RMB 186 million, RMB 175 million, RMB 90.69 million, and RMB 158 million, totaling a cumulative net loss of about RMB 610 million [2][3] - Major expenses in sales and marketing were RMB 285 million, RMB 315 million, RMB 330 million, and RMB 147 million, representing 71.3%, 66.8%, 64.7%, and 63.4% of revenue for the respective periods [4] Group 3: Business Strategy and Challenges - The company employs targeted customer acquisition strategies through mainstream e-commerce and social media platforms, converting users through free introductory materials [2] - HiLearn faces challenges in marketing returns as it expands into finance, law, and healthcare sectors, which may yield lower initial returns compared to established sectors like construction [4] - The company has implemented standardized content creation and AI measures to improve efficiency, but there are concerns about rising costs due to instructor turnover and the need for specialized knowledge in new course categories [4]

Core Viewpoint - Beijing Haixue Education Technology Co., Ltd. (Haixue) has submitted its listing application to the Hong Kong Stock Exchange, with CMB International as the sole sponsor [1]. Company Overview - According to a report by Frost & Sullivan, Haixue is the fourth largest online vocational training service provider in China by revenue for 2024. It is also the largest provider of online construction vocational training and the second largest for online emergency safety vocational training [3][4]. - The company's offerings cover various fields including construction, emergency safety, finance, law, and healthcare, providing tailored training services and solutions [3][4]. Business Model and Strategy - Haixue has developed a diversified product matrix centered around its flagship brand Haixue, advanced brand Jingjin, and corporate service brand Shupeitong, enabling it to meet diverse online vocational training needs in China [4]. - The company utilizes mainstream e-commerce and social platforms to acquire targeted customer groups, guiding them to register and create Haixue accounts. Initial offerings include learning materials and courses to enhance customer understanding and convert users into paying customers [4]. User Engagement and Efficiency - As of June 30, 2025, Haixue has served approximately 4.3 million paying users and over 130 enterprises and institutions through its Shupeitong platform, providing comprehensive and efficient talent development solutions [5]. - The average marketing return on investment reached approximately 8.9 in 2024, indicating industry-leading performance [5]. Financial Performance - The company's revenue for the six months ending June 30 for the years 2022 to 2025 was approximately 400 million, 472 million, 511 million, and 232 million RMB, respectively. The corresponding losses attributable to owners were approximately 186 million, 175 million, 90.7 million, and 158 million RMB [6][7].