Four Seasons Education Stock Price, News & Analysis

Four Seasons Education (Cayman) Inc. (NYSE: FEDU) announced significant changes following regulatory updates on after-school tutoring services in China. The company will cease K-9 Academic AST Services by year-end 2021, which is expected to severely impact revenues for the fiscal year ending February 28, 2022. Given that a majority of its revenues stem from these services, the cessation is a major business shift. However, Four Seasons Education aims to focus on non-K-9 services and will work closely with authorities to ensure compliance with the new regulations.

Four Seasons Education (Cayman) Inc. (NYSE: FEDU) announced the appointment of Marcum Bernstein & Pinchuk LLP as its new independent registered public accounting firm for the fiscal year ending February 28, 2022. This decision follows the mutual termination of Deloitte Touche Tohmatsu CPA LLP's services, effective immediately. The Board of Directors approved the change, emphasizing a smooth transition. Deloitte had served since 2017 and had no adverse opinions in their reports. However, a material weakness was noted in the company's Form 20-F filed on July 2, 2021.

Four Seasons Education announced a share repurchase program effective September 23, 2021, allowing for the buyback of up to US$15 million of its American depositary shares (ADSs) over the next year. This initiative aims to enhance shareholder value and will be funded through available working capital or future operational cash flows. Buybacks may occur via open market purchases or private transactions, with share price caps set by the CEO. This move reflects the company's confidence in its financial health and commitment to returning value to shareholders.

Four Seasons Education (Cayman) Inc. (NYSE: FEDU) has faced significant changes due to new regulations announced on July 24, 2021, by China's state media regarding after-school tutoring services. The regulations mandate that tutoring institutions for compulsory education must register as non-profit entities and prohibits foreign ownership and capital-raising for such services. The company anticipates that these changes will adversely affect its operations and results, as it assesses compliance with the new policies.

Four Seasons Education (Cayman) Inc. (NYSE: FEDU), based in Shanghai, has received a non-compliance notice from the NYSE due to its American depositary shares (ADSs) trading below the $1.00 threshold over a consecutive 30-day period. The company has six months from June 22, 2021, to regain compliance by ensuring the closing price and average share price both exceed $1.00. Failure to do so may lead to suspension and delisting from the NYSE. Four Seasons Education is exploring market conditions and options to address this issue.

Four Seasons Education (Cayman) Inc. (NYSE: FEDU) has filed its annual report on Form 20-F for the fiscal year ended February 28, 2021. The report includes audited financial statements and is accessible on the company’s investor relations website and the SEC's website. The Shanghai-based company specializes in after-school education services, with a primary focus on math education and recently expanded offerings including physics, chemistry, and languages for various grade levels. Shareholders can request a hard copy of the report at no charge.

Four Seasons Education (NYSE: FEDU) reported its unaudited financial results for Q4 and FY 2021, ending February 28, 2021. Q4 revenue declined slightly to RMB70.2 million (US$10.8 million), with a gross profit increase of 14.1% year-over-year, reaching RMB28.3 million (US$4.4 million). Operating loss improved significantly to RMB8.5 million (US$1.3 million) from RMB168.2 million last year. Net loss also decreased to RMB11.5 million (US$1.8 million) from RMB145.4 million. For FY 2021, revenue dropped to RMB280.3 million (US$43.3 million) due to COVID-19 effects, while total student enrollment grew 26.4% to 30,343.

Four Seasons Education (Cayman) Inc. (NYSE: FEDU) will announce its unaudited financial results for the fourth quarter and fiscal year 2021 on May 13, 2021, before the U.S. market opens. An earnings conference call is scheduled for 8:00 AM ET on the same day. The company specializes in after-school education services, particularly in high-quality math education. As part of its mission, Four Seasons Education aims to enhance students' academic potential across various subjects and grade levels, backed by a team of experienced educators.

Four Seasons Education (NYSE: FEDU) reported third quarter fiscal 2021 results, showing a revenue decline to RMB67.6 million (US$10.3 million) from RMB103.5 million year-over-year. Gross profit dropped to RMB25.2 million (US$3.8 million) from RMB53.0 million. The company experienced an operating loss of RMB12.8 million (US$1.9 million) compared to an operating income of RMB10.9 million last year. Total student enrollment decreased to 53,493 from 67,714. The company anticipates fourth-quarter revenue between RMB64.0 million and RMB67.5 million, reflecting ongoing impacts from regulatory changes and COVID-19.