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.
Qtone Education Group Guangdong LtdControlling shareholder faces judicial auction of 37.57 million shares at a 20% discount due to a dispute, potentially reducing stake and signaling financial distress.
