Online language education service provider Koolearn Technology (HKG:1797) expects to record a net loss of between RMB 700 million (USD 100 million) to RMB 800 million (USD 114 million) for fiscal year ended May 31, a significant rise compared to RMB 64 million one year ago, according to a filing on Wednesday.
The company attributed the net loss to increased hiring, investment in technology including a new infrastructure system for its K-12 business, and costs related to free online courses offered to students in Wuhan and other cities during the COVID-19 pandemic.
Koolearn, which was founded by ESL giant New Oriental (NYSE: EDU) in 2005 as its online unit, gained RMB 631.4 million in revenue from college education, RMB 159.2 million from K-12 education, up 80.8% year-on-year (YoY) and RMB 33.4 million from pre-school education, up 205.8% YoY, in fiscal year 2019.
Koolearn added that the 2020 earnings prediction is made by the management and the board based on unaudited financial results, and that the final results will be disclosed by the end of August.
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.