Koolearn changes its name to East Buy with the main business to select premium products for customers
Koolearn, the Hong Kong-listed online tutoring arm of New Oriental, announced recently to change its name from "Koolearn Technology Holding Limited" to East Buy Holding Limited", which marks the official transformation of the company's business from online tutoring to e-commerce.
The company was founded in 2005 and listed on the Hong Kong Stock Exchange in March 2019. As Koolearn stopped offering subject-based after-school tutoring services to students of K-9 or compulsory education period in mainland China due to the regulations, the company has explored new business for growth. After the adjustment, the company started a new business that focuses on selecting premium products for customers.
According to the financial results in H1 2023FY, Koolearn recorded revenues of RMB 2,080.1 million (US$293.5 million), a 590.2% increase from revenues from continuing operations of RMB301.4 million in the same period of the prior fiscal year, and recorded a net profit of RMB585.3 million (US$82.6 million), a 638.5% increase from net loss from continuing operations of RMB108.7 million in the same period of the prior fiscal year.
“The development has undoubtedly brought us a more optimistic mood and stronger confidence.” Said Michael Yu, chairman of East Buy.
Regarding the live streaming e-commerce business which has gained a lot of spotlight, concerned, Zhou Chenggang, CEO of East Buy said that while the company has become a well-known e-commerce platform, it will continue to actively cooperate with third parties and establish self-owned brands to expand its product selection and individual products.
On the same day of the name change, East Buy announced that it would invest 17.52 million yuan to expand its self-operated factory in Henan province and establish a joint venture company with its self-operated sausage manufacturer.
It is considered that the self-built supply chain can minimize food safety hazards and form an standardized operation mode. This is also the first investment case after East Buy announced to increase investment in agriculture a few months ago.
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