Core Viewpoint - The company, Tongdahai, is experiencing significant financial challenges, with a notable decline in revenue and an increase in losses, attributed to external environmental changes and reduced client budgets for information technology [1][2]. Group 1: Shareholder Actions - Shareholders Xin Chenghai and Shi Yuqing plan to reduce their holdings by a total of up to 3.57%, with Xin Chenghai intending to sell up to 2.12% of shares and Shi Yuqing up to 1.45% due to personal financial needs [1]. Group 2: Financial Performance - For the fiscal year 2024, the company reported total revenue of 439 million yuan, a year-on-year decrease of 20.08%, and a net loss attributable to shareholders of 50.33 million yuan, compared to a profit of 54.50 million yuan in the previous year [1]. - The company's cash flow from operating activities was negative 5.91 million yuan, an improvement from negative 18.21 million yuan in the previous year [1]. - In the first quarter of 2025, the company reported revenue of 60.09 million yuan, a year-on-year decline of 29.4%, with net losses widening from 19.30 million yuan to 29.95 million yuan [2]. Group 3: Business Segment Performance - The decline in revenue is primarily due to a significant drop in the application software development segment, which saw a 52.71% decrease in revenue to 141 million yuan [1]. - Despite the overall revenue decline, service-related business revenues, including application software services and judicial auxiliary services, showed growth compared to the previous year [1].

Core Viewpoint - The education industry has been relatively quiet in the capital market since the implementation of the "double reduction" policy, but NetClass Technology Inc. has made a significant impact by successfully listing on NASDAQ, although its stock price has experienced extreme volatility [1][10]. Company Overview - NetClass Technology Inc. is a B2B supplier in the smart education sector, providing innovative IT solutions to various organizations including schools, training institutions, and public entities across Shanghai, Hong Kong, and Singapore [3]. - The company's service offerings include SaaS subscription services, application software development, and solutions for teaching management, online education, examination, data storage, and more [3]. Financial Performance - For the fiscal year 2024, NetClass Technology's revenue primarily came from application development services and SaaS subscription services, with revenues of $7.81 million and $2.29 million respectively [5][6]. - The revenue from application development services has increased significantly, accounting for 77.34% of total revenue in 2024, up from 74.90% in 2023 and 36.51% in 2022 [5]. - Total revenues for 2024 were approximately $10.10 million, a decrease of 8.9% from $11.09 million in 2023 [6]. Market Expansion - The company has seen a shift in revenue sources, with nearly 60% of its revenue now coming from overseas markets, indicating a successful expansion strategy [6]. - In 2025, NetClass Technology accelerated its international strategy, achieving a significant milestone by acquiring a 51% stake in Japan's createSolutions, aiming to use Japan as a base for further expansion into other digital markets like South Korea and Singapore [8]. Stock Performance and Market Sentiment - After an initial surge in stock price to $31.58, representing a 531.6% increase from the IPO price of $5, the stock faced a dramatic decline of 83.5% within ten trading days, dropping to $5.21 [1][10]. - The volatility in stock price has raised concerns among investors and analysts regarding the sustainability of the company's business model and market position amid increasing competition in the education technology sector [10].