GSX Released 2020Q1 Fiscal Report with A Net Income of 1.298 Billion RMB
2020-05-07 09:03:19

Genshuixue (NYSE: GSX), a leading EdTech company in China, released its financial report in Q1 2020 fiscal year, showing a net income of 1.298 billion yuan, an increase of 358% year-on-year. The gross profit extended to 148 million yuan, with an increase of 334%. Besides, GSX announced a two-year share repurchase plan with 150 million dollars.

The total income of GSX in the Q1 2020 FY was 1.374 billion yuan, with a 307% increase. Compared with the same period last year, the revenue of the K-12 business witnessed a rise of 448%. Among the 922 million expense in Q1, sales expense dominated 757 million yuan for enlarging user scale, increasing brand awareness, and popularizing its free courses during the epidemic. By the end of this March, GSX's net profit and cash flow increased to 148 million yuan and 118 million, respectively. 

Except for launching its Q1 financial report, GSX also announced a two-year share repurchase plan that the company will offer the repurchasing funds from its existing cash balance and financial products before the valid date on May 6th, 2022. 

Previously, GSX has updated the response to Citron's accusation of financial fraud, but another asset management agency Hero Start raised yesterday some new questions to the issues including purchasing buildings in Zhengzhou, teachers' salary, courses quality, etc. Up to now, there have not been any replies from GSX.

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