28 dollars. Compared with the previous day’s closing of US$94.69 per share, the market value of GSX lost US$2.7 billion overnight, equivalent to approximately RMB 18.6 billion.
Just yesterday, the company announced its 2019 Q2 financial report. The report showed that the company’s Q2 revenue was 1.650.3 billion yuan, a year-on-year increase of 366.6%. Net profit increased by 133% year-on-year to 72.71 million yuan. During the epidemic, the demand for online live broadcast of large class students soared. In the second quarter, revenue increased by 367% year-on-year to reach 1.65 billion yuan; the number of regular-priced course payers increased by 332% year-on-year to 1.567 million. GSX is currently the only online education company that has been profitable for nine consecutive quarters.
At the same time, GSX revealed that the company was closely watched by short-sellers from February to July 2020. After a large number of short-sellers reported, it was under investigation by the SEC’s law enforcement department, and the company’s audit committee had Hiring a third-party professional consultant to investigate the allegations in the short selling report. The investigation is still in progress, and the company cannot predict the time, results and final conclusions of the review.
Subsequently, Shen Nan, CFO of GSX, responded to the matter at the earnings call, saying that the investigation process was stressful, stressful, and time-consuming. However, the company admires the professionalism of the investigation team, and both parties should perform their duties. As a public service and regulatory agency, the SEC needs to be responsible to all investors and perform regulatory duties; the audit committee of GSX is responsible for improving corporate governance.
I have been shorted 12 times a year. Who did you learn from?
For GSX, the past year has been ups and downs.
On the morning of June 6, 2019 Eastern Time, GSX was listed on the New York Stock Exchange under the stock code GSX. On the first day of listing, the company’s opening price was US$12.10 per share, an increase of 17% from the issue price of US$10.5, and its market value was close to US$3 billion.
For more than a year since its listing, GSX has released four financial reports, three of which saw its stock price rise or fall by more than 8% on the same day. Among them, after the first financial report was released on August 22, 2019, the company’s stock price fell by 8.69%. In 2020 On April 3, after GSX released its 2019 financial report, GSX’s stock price fell by 15.52%.
Although the stock price has fallen sharply from time to time, the stock price of GSX, which has been listed for one year, has soared. On August 3, US Eastern time, GSX’s stock price rose sharply. The total market value of US stocks at the closing day reached 23.260 billion U.S. dollars, exceeding the total market value of New Oriental at 22.676 billion.