Fate's boomerang has struck its target after three years.
On June 3rd, FENBI (2469.HK) CEO Zhang Xiaolong was invited by the School of Philosophy at Renmin University of China to give a career planning lecture. During this speech, Zhang talked about getting rich from stock trading. However, due to the students' tepid reaction, he lost his temper, used profanity, and left the venue. What was supposed to be a career guidance talk for university students turned into a public spectacle watched by the entire internet. Although Zhang issued an apology letter the day after the inappropriate remarks, the capital market was not appeased. The company's stock price fell nearly 9% in a single day by the close on June 4th. Furthermore, the share price has plummeted over 90% from its post-IPO high, relegating it to "penny stock" status.
Three years ago, Zhang Xiaolong criticized investor Zhang Lei on social media for "mindlessly selling frantically" on the first day of FENBI's post-lockup period. Three years later, he lost his composure in front of Zhang Lei's juniors, deriding students aiming for civil service exams as "just waiting to die while idling away." Having previously publicly mocked an investor for reducing their stake in FENBI, does Zhang Xiaolong now also hold a pessimistic view of the civil service exam prospects himself?
From Stock Market Riches to Public Insults: Is Zhang's Apology Enough?
On the afternoon of June 3rd, Zhang Xiaolong entered Renmin University's Lide Building. According to the original schedule, the lecture topic was supposed to revolve around the civil service exam tutoring industry. For FENBI Technology, which focuses on public exam training, this was a prime opportunity for positive brand exposure. However, just before starting, he abruptly changed the speech topic to "Career Planning in the AI Era." Those familiar with Zhang Xiaolong know he is not a conventional speaker. Yet, this lecture at Renmin University, which should have covered AI trends, youth employment choices, and industry development opportunities, deviated from its core purpose of career guidance. Instead, it became a platform for sharing his personal stock trading experiences and wealth gains.
According to on-site audio recordings, Zhang Xiaolong began by extensively discussing "getting rich from stocks." "I don't have a huge amount of money myself, but I certainly have more than most students here. Last month, I used all 80 million yuan in cash to buy stocks and made 53 million yuan," he stated without reservation. "The main reason I'm talking about this is to show off my wealth, to tell you all I've struck it rich."
This off-topic presentation promoting stock market riches severely diverged from the career planning content the Renmin University students expected. Consequently, it failed to gain recognition or response from the audience, and there was no applause. After realizing the cold reception, Zhang Xiaolong's demeanor changed drastically.
"I'm a bit angry, let me criticize you all. Don't think just because you're from Renmin University, you're something special," he said, his tone becoming aggressive. Immediately after, more extreme remarks followed: "You have no feeling for new things that bring huge transformation and immense wealth to society. So, it's only right that you can't find jobs; society shouldn't give you jobs. Apart from going into the system to take the civil service exam and idling away waiting to die, you have no other skills..."
This "speech" caused an uproar across the internet. After the incident, accompanying teachers and the college dean arrived to console the students, while some students chose to leave midway. A lecture meant to convey career concepts ended in bewilderment and anger.
As a listed education company highly dependent on revenue from civil service exam candidates, FENBI's business foundation is built upon countless young people渴望"上岸" (seeking stable jobs). However, founder Zhang Xiaolong's remarks created a significant logical paradox with the very public exam training business his company relies on for survival.
On the morning of June 4th, FENBI Technology's official Weibo account published an apology letter signed by Zhang Xiaolong: "Due to my inappropriate personal言行, I left midway and made improper remarks, causing distress to the teachers and students present and disrupting the normal交流 atmosphere. The responsibility for this incident lies entirely with me. I sincerely accept everyone's criticism and am reflecting deeply on this."
Some netizens commented under the apology post, saying, "In my four years at Renmin University, yours was the worst lecture I've heard," "You take money from students while calling them slackers. Without these so-called 'slackers,' could you have used that money to profit from stocks?" and "If your own CEO looks down on the civil service exam, why even run a training class?"
On a consumer complaint platform, searching for "FENBI" yields over 3,000 complaints, most related to "difficulty getting refunds." On June 4th, one user complained, demanding a refund from the company because Zhang Xiaolong's "idling away waiting to die" remarks insulted customers.
In the afternoon of June 4th, Zhang Xiaolong issued another statement and apology regarding the Renmin University lecture incident. He mentioned, "I believe everyone can try for jobs within the system, but don't focus only on system jobs. It's not that the jobs are bad, but the chances are too low," and clarified that "I absolutely did not say the best job is stock trading."
According to informed sources, Zhang Xiaolong will no longer attend FENBI's on-campus lecture activities in the future. However, apologies could not stop the reaction from the capital market. On June 4th, FENBI's stock price fell unilaterally throughout the day. By the close, it was reported at HK$0.61 per share, down 8.96%, with a total market capitalization of approximately HK$1.35 billion, evaporating about HK$132 million in market value in a single day. For a company dubbed the "first internet vocational education stock," which had an IPO price of HK$9.9 in January 2023 and once saw its market cap exceed HK$24 billion, these figures are lamentable. Over the past three years, FENBI's stock price has plummeted from a historical high of HK$15.04 to HK$0.61, a staggering drop of 96%, wiping out over HK$20 billion in market value.
A History of Criticizing Investors for Selling Shares
For the company FENBI, Zhang Xiaolong is not only the founder but also a popular IP. Born in 1983, Zhang graduated with a bachelor's degree from the Philosophy Department of Guizhou University and then pursued a combined master's and doctoral program in the Philosophy Department of Sun Yat-sen University. In 2006, he entered the public exam training industry as a lecturer. During his postgraduate studies, to supplement household income, he worked part-time as a public exam lecturer for Huatu Education, thus entering the field. In 2013, Zhang Xiaolong joined Yuanfudao to oversee the public exam project. In 2015, he spun off FENBI from Yuanfudao and served as CEO. Before 2021, FENBI was consistently operating at a loss, only turning profitable in the first half of 2023 due to the civil service exam boom.
For the full year 2025, FENBI Technology reported annual operating revenue of 2.677 billion yuan, a year-on-year decrease of 4.1%; net profit was 198 million yuan, down 17.3% year-on-year. This marked the second consecutive year of revenue decline for FENBI, following 2024 revenue of 2.79 billion yuan, which was already 7.7% lower than the 3.021 billion yuan in 2023. Zhang Xiaolang直言 in July 2024 that severe industry price wars had objectively cost the company part of its market share.
Zhang Xiaolong's frequent "out-of-bounds" remarks on the internet are also well-known. In mid-September 2023, he expressed dissatisfaction with a fund manager surnamed Tan. A screenshot showed Zhang Xiaolong stating on social media that he was treated impolitely by a fund manager surnamed Tan during a roadshow for Anxin Fund. He claimed he left angrily but then returned and cursed for ten minutes before leaving.
On June 28, 2023, Zhang Xiaolong drew attention by mocking Hillhouse Capital founder Zhang Lei on social media. Zhang Xiaolong stated that Zhang Lei had previously claimed to practice value investing and invested in education for public good,不需要退出 (not needing to exit). However, he "mindlessly sold frantically on the first day of the lockup expiration, making everyone think something major had happened with us." Zhang Xiaolong said, "He should have sold almost all by now, and I've blocked him."
Interestingly, shortly after publicly criticizing Zhang Lei, Zhang Xiaolong posted again on social media saying he had "had a bit to drink," implying the remarks were made while intoxicated. He also stated, "Boss Zhang didn't sell much, just ten or twenty million shares," while clarifying that "personally, I still think Boss Zhang is a very successful and excellent investor. Of course, regardless of whether he is excellent or not, investors buying and selling is normal, it's their own right. I have no opinion;吐槽 (complaining about) buying and selling is a sign of my own incompetence."
The外界 (outside world) believes that behind Zhang Xiaolong's drunken吐槽, the decline in FENBI's stock price at the time was inseparable. When FENBI went public in early 2023, its IPO price was HK$9.9 per share. On the first day of trading, the stock price一度 (at one point) surged 17%,最终 (finally) closing at HK$11.1 per share. Since entering the post-lockup period, FENBI's stock price began a downward trend. On June 20, 2023, the first day of the lockup expiration, FENBI fell 18.62%; on June 21st, it暴跌 (plummeted) 38.47%; on June 23rd, the stock price dropped another 14.29%. In just three trading days, FENBI's stock price fell 57%,最终 (finally) closing at HK$2.96 per share, a 275% drop from its first-day closing price.
An economist stated that the thoughts and demands of investors and entrepreneurs不可能总是一致 (cannot always align). As long as the motivation for reducing stakes aligns with their own interests and主张 (positions), and the methods are legal and compliant, such actions are无可谴责 (beyond reproach). Hillhouse's Zhang Lei is被誉为 (renowned as) a helmsman in the investment world, managing Asia's largest equity私募基金 (private equity fund). In terms of investments, Hillhouse Capital几乎覆盖了整个中国的经济领域 (has almost覆盖 the entire spectrum of China's economy). Beyond traditional finance, Hillhouse has ventured into technology, healthcare, consumer sectors, and more. Among these, the internet and technology industries are key areas for Hillhouse. It took Hillhouse only 15 years to grow from 0 to 500 billion.回顾 (Looking back at) Hillhouse's glorious past, it's不难发现 (not hard to see) that it accurately caught the massive wave of China's internet崛起 (rise). In the early stages, it first invested in Tencent Holding Ltd., then heavily invested US$300 million in JD.com, and later invested in companies like Meituan, Didi, Gree,爱奇艺 (iQiyi),百丽国际 (Belle International),未来汽车 (NIO), and over 800 others, repeatedly astonishing the外界 with its商业头脑 (business acumen) and洞察力 (insight).
Yet, Hillhouse's当年 (at the time)减持 (stake reduction) in FENBI was met with Zhang Xiaolong's "阴阳" (sarcastic criticism) on social media. Interestingly, now even Zhang Xiaolong himself says "taking the civil service exam is idling away waiting to die." Looking back, might Zhang Xiaolong now understand Zhang Lei? With this, Zhang Xiaolong has completed a full circle within the walls of the Lide Building.
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