The stock of China Liberal Education Holdings (Nasdaq: CLEU) surged 6% to $3.82 per share Monday on doubled income in the fiscal year 2020.
CLEU reported its net income increased by 176% year-over-year to $1.21 million, or 21 cents per share, from $440,000 in 2019. However, revenue decreased 4% year-over-year to $5.02 million.
The company attributed the decrease in revenue to the declines in overseas study consulting services in 2020.
CLEU said the results of operations and financial conditions in 2020 were affected by the Covid-19 pandemic and may continue to be affected in 2021 and beyond.
The negative impact was traced across one-on-one consulting services, the demand overall, and the ability of partner schools to pay back accounts receivable on a timely basis, the company added.
“Looking forward, we will implement our growth strategy in identifying, acquiring, and integrating schools including universities, colleges, technical secondary schools or full-time elementary schools, junior high schools and high schools," said Ngai Ngai Lam, the chairwoman and chief executive officer of China Liberal.
Based in Beijing, China Liberal Education offers Sino-foreign jointly managed academic programs, accompanied with overseas study consulting services, technological consulting service to Chinese universities, and job readiness training to graduating students.