Since the beginning of this year, the capital market has undoubtedly spotlighted China-based Edtech giant  Genshuixue(NASDAQ: GSX). On October 9th, the company announced a strategic upgrade that all its K12 businesses will be aggregated into its subsidiary brand Gaotu Ketang(高途课堂). And the closing price of GSX’s stock yesterday increased by 12.14% to $114.55 per share.

In the past, GSX had two brands providing K12 education services: eponymous brand GSX and Gaotu Ketang. The former also provides adult education services, including pre-examination training for teacher qualification certificates and civil servants. 

After the upgrade, GSX will merge all the K12 online courses and services under the GSX brand into Gaotu Ketang. Resources like star-teachers, tutors, as well as the education and research systems of the two brands will also be integrated.

According to the person in charge, the company realizes that the integration will help achieve higher operational efficiency at the current stage. He also introduced that the core idea of the latest adjustment is to integrate the original businesses into three major product brands following three sections of K12, adult education, and early childhood education. 

Chen Xiangdong, GSX’s founder, chairman, and CEO, said that Gaotu Ketang would provide upgraded online live-streaming courses and services based on “teaching in large-sized class, tutoring in small-sized class, and providing personalized experience.” The GSX brand will fully focus on business such as postgraduate entrance examination, adult English, finance, accounting, civil servants examination, and study abroad.

Reviewing its financial results of 2020H1, GSX achieved RMB 1.65 billion revenue, an increase of 366.6% year-on-year, and its net profit increased by 133% year-on-year to RMB 72.71 million.