Shares in OneSmart International Education Group Ltd. (NYSE: ONE) ended 10% lower Tuesday, at $3.66 apiece, after the company reported declined revenues and wider losses.
The Shanghai-based company said revenue was $104.1 million in the fiscal first quarter, down 14% year-over-year. Its net loss widened 78% to $24.3 million in the three months ended November.
In its offline operations, OneSmart reported a strong recovery. OneSmart VIP, which accounted for 71% of total net revenues, generated $75.3 million, according to the report.
OneSmart provides a wide range of private supplementary education services to Chinese K-12 students with a nationwide network of 470 learning centers across China as of November 30. It provides OneSmart VIP business for K-12 personal tutoring services, HappyMath for young children STEAM education programs, OneSmart Online for the online education business.
“By the end of January 2021, we have refurbished 83% learning centers. The upgraded center study environments will provide a superb experience to our students. In addition, we are making great efforts on premium brand building and local marketing to reach our target customers more effectively. OneSmart's brand position of Premium Tutoring is rooted in target families mind evidenced by improved brand awareness in select cities,” Steve Zhang, the chief executive officer of OneSmart, said.
In the second quarter, the company said it expects to generate revenue in the range of 850 million yuan to 950 million yuan with a 24% to 39% year-over-year increase from the first quarter of the fiscal year 2021.