(Yicai Global) Nov. 22 -- Shares in Koolearn Technology Holding surged 23 percent today after the Chinese online education platform said its founder and chairman has pumped in HKD9.9 million (USD1.3 million) to increase his holdings.

Koolearn’s share price [HKG:1797] closed at HKD8.49 (USD1). In the past ten trading days the stock has more than doubled.

Yu Minhong bought 1.4 million shares at an average price of HKD7 apiece on Nov. 17, hiking his stake to 4.77 percent from 4.63 percent, according to a filing to the Hong Kong bourse on Nov. 19.

It is a big turnaround from the all-time low of HKD3.71 that the shares slumped to in July after the Chinese government began an overhaul of the e-tutoring sector to ease the ‘twin pressures’ of excessive homework and extracurricular classes on students in compulsory education.

Koolearn, which is a unit of educational technology giant New Oriental Education and Technology Group, will stop teaching kindergarten to ninth-grade pupils to comply with new regulations in the off-campus education sector, the Beijing-based firm said on Oct. 25. Revenue from its K9 business had made up 40 percent of the total in the fiscal year 2021.

"We will continue to operate the portion of our business that is not related to compulsory education and shift our focus and resources towards enhancing our other educational products and services, exploring new business opportunities and continuing to be a ‘lifelong learning partner’ for our students," it said.

New Oriental is also planning a big turnaround and will set up a fresh produce e-marketplace to help farmers sell their harvests through livestreaming. The Beijing-based company holds a 74.5 percent stake in the parent firm of Dongfang Youxuan Beijing Technology, which sells fresh meat, fish, eggs and fresh fruits and vegetables.

Editor: Kim Taylor