Doushen Education Signs $119m GPU Compute Deal as It Pivots From Tutoring to AI Infrastructure
Doushen Education Technology (Beijing) — now trading on Shenzhen’s ChiNext board as ST Doushen (300010.SZ) after being placed under an "other risk warning" — used its third-quarter report, released on the evening of 29 October, to show a tutoring business that has stopped bleeding while a new AI compute business takes shape. For the three months to 30 September, revenue was 233 million yuan (about US$34.6 million), down 28.78% year on year, but net profit attributable to shareholders came in at 25.7 million yuan, up 312.35%.
For the first nine months, revenue was 758 million yuan, roughly flat at -2.31%, and net profit attributable was 1.30 million yuan, a swing into profit from a year-earlier loss even though the headline figure fell 98.59%. Stripping out non-recurring items, the nine-month result was a loss of 45.5 million yuan. Operating cash flow was negative 151 million yuan but improved 36.52% year on year. The profit was helped along by debt restructuring: Doushen settled two long-running legacy disputes, taking in 35 million yuan of cash and property valued at 65.4 million yuan, and booked an estimated restructuring gain of about 56.7 million yuan.
One line stands out. Nine-month R&D expense was 202,000 yuan, down 93.85% year on year, while administrative expenses rose 94.72% to 171 million yuan on higher staff costs, intermediary fees and depreciation and amortisation. Cost of sales rose 21.33% to 269 million yuan, which the company attributed to channel operating costs in its growing aesthetic-education business, while sales expenses fell 14.85% to 395 million yuan as it cut paid traffic acquisition.
The bigger signal is the compute contract. Doushen HK, a wholly-owned Hong Kong subsidiary, signed a cloud computing services agreement with a customer identified only as "VB" to provide GPU compute leasing, deployment and operations over 60 months for a total of US$118,855,680, or about 800.5 million yuan. The customer has prepaid 30% as agreed and the contract is performing normally; Doushen has guaranteed subsidiary obligations of up to US$47.5 million. Doushen HK separately signed a 60-month agreement to buy US$112,128,000 of compute capacity from a supplier named only as "XYZ" — a matching arrangement to source what it has sold.
Doushen frames the deal as the first major project of a new intelligent-computing business segment, a natural extension of its "AI + education" strategy down into compute infrastructure and its entry into a cloud computing and "token factory" track. Both contracts were approved by the board; neither is a related-party transaction nor a major asset restructuring. The company cautions that the accounting effect will depend on annual audited results.
On the education side, Doushen says it runs three in-house platforms: Ciyuan, a subject-specific model with a full knowledge graph for primary and secondary Chinese language, literature and aesthetic literacy; Jiuxiao, an AI content production platform aimed at accuracy and throughput; and Tianshu, a sales management platform that gives each salesperson an agent meant to close the loop from sensing to decision to execution. Its product line runs from Dou Shen Returns and subject-specific "Little King" apps to AI-Class and Doushen AI. The company also completed an internal-control remediation programme at the end of October, with an independent accounting firm engaged to review controls over its new business-to-business operations.
For the first nine months, revenue was 758 million yuan, roughly flat at -2.31%, and net profit attributable was 1.30 million yuan, a swing into profit from a year-earlier loss even though the headline figure fell 98.59%. Stripping out non-recurring items, the nine-month result was a loss of 45.5 million yuan. Operating cash flow was negative 151 million yuan but improved 36.52% year on year. The profit was helped along by debt restructuring: Doushen settled two long-running legacy disputes, taking in 35 million yuan of cash and property valued at 65.4 million yuan, and booked an estimated restructuring gain of about 56.7 million yuan.
One line stands out. Nine-month R&D expense was 202,000 yuan, down 93.85% year on year, while administrative expenses rose 94.72% to 171 million yuan on higher staff costs, intermediary fees and depreciation and amortisation. Cost of sales rose 21.33% to 269 million yuan, which the company attributed to channel operating costs in its growing aesthetic-education business, while sales expenses fell 14.85% to 395 million yuan as it cut paid traffic acquisition.
The bigger signal is the compute contract. Doushen HK, a wholly-owned Hong Kong subsidiary, signed a cloud computing services agreement with a customer identified only as "VB" to provide GPU compute leasing, deployment and operations over 60 months for a total of US$118,855,680, or about 800.5 million yuan. The customer has prepaid 30% as agreed and the contract is performing normally; Doushen has guaranteed subsidiary obligations of up to US$47.5 million. Doushen HK separately signed a 60-month agreement to buy US$112,128,000 of compute capacity from a supplier named only as "XYZ" — a matching arrangement to source what it has sold.
Doushen frames the deal as the first major project of a new intelligent-computing business segment, a natural extension of its "AI + education" strategy down into compute infrastructure and its entry into a cloud computing and "token factory" track. Both contracts were approved by the board; neither is a related-party transaction nor a major asset restructuring. The company cautions that the accounting effect will depend on annual audited results.
On the education side, Doushen says it runs three in-house platforms: Ciyuan, a subject-specific model with a full knowledge graph for primary and secondary Chinese language, literature and aesthetic literacy; Jiuxiao, an AI content production platform aimed at accuracy and throughput; and Tianshu, a sales management platform that gives each salesperson an agent meant to close the loop from sensing to decision to execution. Its product line runs from Dou Shen Returns and subject-specific "Little King" apps to AI-Class and Doushen AI. The company also completed an internal-control remediation programme at the end of October, with an independent accounting firm engaged to review controls over its new business-to-business operations.
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