GSX Techedu (NYSE: GSX), an online tutoring platform, reported a 236.9% year-on-year increase in its 2020 revenues that hit USD 1.1 billion, the Beijing-based company announced on Friday.
K12 courses accounted for over 82% of the revenue, as per its earnings report. The net loss reached USD 200 million in the past year, compared to net income of USD 35.1 million in 2019.
A sixfold increase in expenses turned out to be the main reason behind the loss, as well as higher spending in R&D to consolidate its position in the competitive Chinese online education market.
GSX has come under attack by as many as nine short-seller reports in the first half of 2020, as US-listed Chinese firms drew attention from both regulators and analysts following fraudulent activity at Luckin Coffee, KrASIA reported.
At that time, GSX was alleged to have fabricating the number of enrolled students as well as its revenue, though the company refuted the accusations, claiming that the reports cited inaccurate and unreliable data and failed to understand its business.
This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.