Lixiang Education Holding Co., Ltd. (Nasdaq: LXEH) announced the first earnings results after it listed in New York in October.
In the third quarter of 2020, Lixiang reported revenue grew slightly year-over-year to $3.03 million. The net loss was $505,810 for the three months through September. the cost of revenues for the third quarter, the company said, increased by 9.3% to $3.58 million on increasing labor costs.
Wei Biao, the chief executive officer of Lixiang, stated: "In response to the challenges created by the unprecedented Covid-19 pandemic starting from the first quarter this year, we promptly implemented various actions, such as introducing high-quality online education services and maintaining ongoing and effective school-teacher communication, to minimize the negative repercussions brought by Covid-19. We have managed to ensure the quality of teaching amid the pandemic.”
Lixiang added that the company will continuously enhance the quality of teaching and strengthen the overall competitiveness, and aims to strengthen both student recruiting and pricing.
Looking forward, Lixiang expects net revenue to be between 50 million yuan to 55 million yuan in the fourth quarter, representing an increase of 4.8% to 15.3% year-over-year.
Founded in 2001, Lixiang was among the top ten private school operators in Zhejiang Province in terms of student enrollments for the 2019-2020 school year, according to Frost & Sullivan.
Shares of Lixiang traded down slightly, closing at $9.19, still above its IPO share price of $7.50.