Qtone Education Group Guangdong Ltd

Quantong Education released its 2026 interim report. During the reporting period, the company's total operating revenue was 87.8908 million yuan, down 29.44% year-on-year. Net profit attributable to the parent company was negative 41.5426 million yuan, with the loss widening by 9.24 million yuan compared with the same period last year. Net cash flow from operating activities was negative 53.2125 million yuan, a decrease of 8.4631 million yuan year-on-year. The company's asset-liability ratio was 18.46%, gross margin was 16.68%, return on equity was negative 8.45%, and diluted earnings per share was negative 0.07 yuan. The number of shareholders was 30,400, and the top ten shareholders held 43.20% of the total share capital.

Quantong Education announced that a court plans to dispose of 37.57 million frozen shares held by its controlling shareholder through a judicial auction, with the starting price for the first auction set at 80 percent of the average closing price over the twenty trading days before the auction announcement was published. The auction stems from a share transfer contract dispute between the controlling shareholder, Zhongwen Xushun, and founder Chen Chichang, involving an overdue second instalment of 80.75 million yuan. An arbitration ruling ordered Zhongwen Xushun to pay the principal plus penalty and other amounts, and Chen Chichang has applied for compulsory enforcement. The controlling shareholder and its concert parties currently hold 152 million shares in the company, representing 23.92 percent of total share capital. If all auctioned shares are transferred, their holding would fall to 114 million shares, or 17.99 percent. The company stressed that the dispute does not involve the listed company and that production and operations remain normal, but Quantong Education has posted losses for two consecutive years, with a net loss attributable to the parent of 69.28 million yuan in 2025 and a further loss of 20.33 million yuan in the first quarter of this year.