Stock in Ambow Education Plunges 9% on Higher Losses, Tightened Regulations
Shares in Ambrow slipped on Thursday after the company reported mounting losses for the third quarter.
The stock in Ambow Education Holding Ltd. (NYSE: AMBO) dropped 9% to $1.38 per American depositary share by midday on Thursday after it announced higher losses for the third quarter.
The Beijing-based company said in a statement today that in the three months through September its net loss widened to $10.2 million, or 23 cents per share, compared with $1.8 million, or 4 cents per share, a year ago.
Revenue in the third quarter reached $17.7 million, up 13% year-over-year, according to the report. An increase in students enrollments drove the growth in the quarter, Ambow said.
Jin Huang, the president and chief executive officer of Ambow, credited the global exposure the company received at the China Annual Conference for International Education & Expo (CACIE) held during October, in Beijing.
"During the third quarter, the Company hosted a forum on innovation and international resource sharing across Chinese and foreign higher education, in Beijing," Huang said in a statement today.
She added, "The International Education Expo allowed Ambow to promote its cross-border education model which not only benefits international students seeking higher education opportunities but also the institutions that fall under the credentialing standards as maintained by Global Career Quality Assurance."
Established in 2001, Ambow provides K-12 education services, including online and internationally. According to Ambow's website, it operates tutoring centers in Beijing, Jiangsu, Gansu, Hunan and other provinces in China. Its international programs has partnerships with more than 100 universities and educational institutions including the United Kingdom, the United States, Canada and Australia.
To further expand its teaching platform, Ambow announced it partnered with Beijing Qiyu Technology Company Ltd. in April. The two parties planned to construct a training platform to focus on artificial intelligence and focus on humanoid robotics principles, Ambow said.
Huang also said in her statement that the company partnered with Hebei Agricultural University and Beijing University of Agriculture to construct a Big Data engineering lab.
Looking ahead, Huang said, "We believe we are positioning Ambow to remain a leading provider of educational and career enhancement services inside China. As well as a transformational cross-border leader in assisting career colleges and universities by addressing five key challenges across, curriculum development, retaining qualified faculty, practical training, job placement and international cooperation."
Ambow and other Chinese education companies have been affected by stricter regulations on after-school online training programs, as state-run news media Xinhua reported in July.