Shenzhen, China — Shares of Chuanzhiboke Information Technology (SHE: 003032) rose by 2.3 percent, closing at CNY8.56 (USD1.21), after the Chinese education technology firm announced its intention to acquire a controlling stake in a Singaporean competitor.
The company plans to purchase a 51 percent stake in FIS Holdings from shareholders Li Wei and David Mok Kah Sing for SGD15.3 million (USD11.8 million) through its subsidiary, Weixue Education. The announcement was made on September 20.
This strategic acquisition aims to enhance Chuanzhiboke’s asset quality and profitability while promoting its overseas business expansion. The company indicated that the move is expected to have a positive impact on its financial condition and operating results in the coming years.
Upon completion of the acquisition, Weixue Education will become FIS’ largest shareholder, with Li retaining a 33 percent stake and HFXR Education holding 16 percent. HFXR Education, which recently acquired its stake from Li and Mok, is an overseas unit of Xiamen-based edtech firm Hengfuxueren, in which Chuanzhiboke owns over 30 percent.
FIS Holdings operates two subsidiaries: Furen International School and E-Jia Homestay. Furen International School, established in 2001, is a private institution in Singapore offering international Cambridge O-level and A-level courses, while E-Jia Homestay, founded in early 2023, provides accommodation services for Furen’s students.
As of June 30, FIS reported liabilities of CNY92.2 million (USD13.1 million) against total assets of CNY111 million (USD15.7 million). In the first half of the year, the company recorded a net profit of CNY11.7 million and revenue of CNY50.9 million.
Chuanzhiboke was the first Chinese edtech firm to go public in January 2021, focusing primarily on online courses and employment-oriented occupational education training. However, it reported a net loss of CNY34.2 million in the first half of the year, a significant decline from the previous year, with revenue dropping by 65 percent to CNY111 million.
Editor: Futura Costaglione
