On December 12, last year, Shanghai Education updated its Hong Kong stock prospectus recently, disclosing its eight-month performance as of August 31, 2018. In the first eight months of 2018, Shanghai and Jiangsu had revenue of 436 million yuan, an increase of 27% over the same period of last year, and a net loss of 860 million yuan, an increase of 177% over the same period of last year.
According to Hujiang Education, the accumulated loss is mainly due to the significant investment in the self-owned intelligent learning system, and the net loss is mainly due to the continuous investment in cooperation with the development strategy of AI and CCtalk platform to expand the team of experts in technology, research and development, as well as the increase in advertising and promotion expenditure.
Shanghai Jiang expects to continue to incur losses as of December 31, 2018, and may continue to incur losses and negative operating cash flows in the near future.
In January this year, media reports said that the core management of Hujiang Education Company had collectively reduced their salaries by 20% to 50%. Hujiang cancelled the 2018 year-end award, and all business lines were laying off staff. In this regard, Shanghai and Jiangsu said that the management pay cut is true, layoffs are routine actions, the news of the cancellation of year-end bonuses is not true, year-end performance and bonuses.
In response to rumors on the social media about Shanghai this morning, the following statement is made:
1. The rumors about 95% layoffs are seriously untrue.
Faced with the cold winter of the economy, in order to improve the business fundamentals, without affecting the users learning experience, the company has recently optimized and merged the loss line of business, further strengthened the efforts of increasing revenue and reducing expenditure, enhanced the ability of resisting risks and docking capital market, performance appraisal and post optimization are the companys routine actions, but also the necessary measures to ensure that the company can increase efficiency, in line with the Shanghai and Jiangjiang stock markets. The long-term interests of the East, users and all employees.
2. In the process of listing, betting does not exist
At present, the company is still in the process of listing. Since the second half of last year, the capital market has undergone tremendous shocks, affecting the issue of new shares in the Hong Kong market. The company will choose the appropriate time of IPO issuance according to the situation of domestic and foreign capital markets.
3. The company will pursue the liabilities of rumor-makers
The company is operating normally at present. Please dont believe the rumors. We have identified the initiator of such rumors and are currently collecting relevant evidence and will take legal measures to hold them accountable.
Thank the media and friends from all walks of life for their concern about Shanghai.