Core Viewpoint - The stability of the controlling stake of Zhonggong Education is under threat due to the auction of 48 million shares held by its actual controller, Li Yongxin, amid declining performance and high debt levels [1][2][3]. Group 1: Share Auction and Stock Performance - Zhonggong Education announced that 48 million shares held by Li Yongxin were auctioned for a total of 1.01 billion yuan, which is approximately 80% of the market value based on the stock price of 2.65 yuan per share [2][3]. - The stock price of Zhonggong Education reached a limit up on December 10, closing at 2.65 yuan per share [2]. Group 2: Financial Performance - For the first three quarters of 2025, Zhonggong Education reported revenue of 1.657 billion yuan, a year-on-year decline of 21.09%, and a net profit attributable to shareholders of 91.97 million yuan, down 45.31% year-on-year [1][12]. - The company has seen a significant reduction in employee numbers, from 45,100 at the end of 2020 to 7,888 by the end of 2024, representing a decrease of over 82% [1][11]. Group 3: Debt and Financial Health - Zhonggong Education's debt-to-asset ratio has remained high, exceeding 80% since the fourth quarter of 2021, and reached 86.35% by the end of the third quarter of 2025 [1][13][14]. - As of the end of the third quarter of 2025, the company had cash and cash equivalents of 104 million yuan, with short-term and long-term borrowings of 2.5 million yuan and 571 million yuan, respectively [5]. Group 4: Historical Context and Strategic Initiatives - Zhonggong Education was previously successful, achieving a revenue of 11.202 billion yuan in 2020, marking its first year of exceeding 10 billion yuan in revenue [8]. - The company is exploring strategic initiatives in "AI + Employment" and has established a joint venture, New Era, to focus on building a digital talent cultivation system [15].