China Online Education Group, the online and mobile education platforms that enable students to access live interactive English lessons with international foreign teachers, has announced a second-quarter 2021 net loss of ¥27 million (£3.1 million), compared to second-quarter net income of ¥32.8 million for 2020. Net revenue for the quarter was ¥579.8 million, up from ¥493.9 million reported for Q2 2020.
The Beijing-based company also reported results for the first six months of 2021. Its net loss for the period was ¥19 million, compared to net income of ¥83.6 reported for the first six months of 2020. Net revenue for the six-month period was ¥1.18 billion, compared to net revenue of ¥980.6 million reported for the first six months of last year.
Jack Jiajia Huang, founder, chairman and chief executive of 51Talk, subsidiary of China Online Education said: “Our second-quarter net revenue reached ¥579.8 million, primarily driven by a 35.7% year-over-year increase in the number of active students. On July 24, 2021, relevant Chinese authorities issued the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education, which contains high-level policy directives about requirements and restrictions related to online and offline after-school tutoring services. Aligned with the Opinion’s directives and requirements, 51Talk launched brand new all-round proficiency courses in small class format for children and teenagers led by Chinese teachers. Meanwhile, we plan to develop our overseas business by offering one-on-one classes for international K12 and adult student users taught by foreign teachers. Where there are new challenges, there will also be new opportunities. In keeping with the revised framework and regulations for our industry, we will continue to innovate our course offerings and explore growth opportunities.”
Date published: 5 October 2021