(Yicai Global) May 10 -- Chinese kindergarten to 12th grade online education provider GSX Techedu filed an application with the US Securities and Exchange Commission for an initial public offering with the stock code [NYSE:GSX] on May 8, but without stating the amount it seeks to raise.
The Beijing-based company achieved profitability in the third quarter, with its net revenues rising over fourfold to USD59.2 million last year and by nearly five times to USD40.1 million in the first quarter over the same time last year, its prospectus shows.
Founded in 2014, the firm provides Chinese students with K-12 lessons covering Chinese, Mathematics, English, Physics and Chemistry, and applies a 'one teacher to teach + two teachers to tutor' method of instruction. This is also its main business and contributed 76 percent to first-quarter revenue this year. The company also offers language learning and professional qualification education for college students, workers and other adults, and this sideline added 22.5 percent to its first-quarter take.
GSX had 211,002 paid users as of the quarter.
The company faces regulatory risks, however, as 49 percent of its teachers lack qualifications. It also charges over three months' worth of fees in an advance lump sum payment, and this flouts regulations, online media Blue Whale Finance reported.
Editor: Ben Armour