Beijing HiXue Online Education Technology Co., Ltd. (hereinafter referred to as "HiXue Net") recently filed its prospectus for a Hong Kong IPO. As an online vocational education platform, HiXue Net focuses on professional qualification exam training and skill enhancement, covering fields such as construction, emergency safety, finance, law, and healthcare. Despite capturing market opportunities with a gross margin exceeding 80%, high marketing costs continue to erode profits. Additionally, the company faces declining paid user numbers. Notably, HiXue Net was previously criticized by China's 3·15 Gala for its refund difficulties, raising compliance concerns.
**Market Position & Origins** HiXue Net was incubated by Sunlands Technology Group. Founded in 2003, Sunlands transitioned entirely to online education in 2014, targeting professionals aged 18–40. In 2018, Sunlands became China’s first adult online education firm listed on the NYSE. According to its website, Sunlands invested heavily in HiXue Net’s launch in 2011, initially adopting a pre-recorded course model. HiXue Net became independent in 2012 but later saw Sunlands exit entirely by 2017, cashing out ¥186 million from equity sales.
Currently, HiXue Net’s major shareholders include Liang Re, who holds 29.91% voting rights and serves as CEO. The platform offers three core courses: 1. **Construction Certification Exams**: Primary revenue driver (60%+ of income), targeting China’s mandatory builder qualifications. 2. **Emergency Safety Exams**: Including fire engineering and safety engineer certifications. 3. **Other Professional Exams**: Such as CPA, legal, and pharmacist qualifications.
Per Frost & Sullivan, HiXue Net ranks as China’s fourth-largest online vocational training provider by 2024 revenue, leading in construction and ranking second in emergency safety training.
**Persistent Losses & User Decline** Despite serving 4.3 million paid users by June 2025, HiXue Net remains unprofitable. From 2022 to H1 2025, revenues grew from ¥400 million to ¥232 million, but cumulative losses hit ¥610 million. High gross margins (78.6%–85.8%) were offset by soaring marketing costs, consuming 60%+ of revenue. Notably, paid users dropped by 275,200 in 2024, while customer acquisition costs rose to ¥441.2 per user.
**Challenges: Cooling Demand & Regulatory Scrutiny** The construction certification market, once booming during China’s property boom, has slowed amid real estate downturns and stricter anti-fraud policies (e.g.,社保-certificate alignment checks). HiXue Net’s construction-related revenue grew marginally to ¥303 million in 2024 but fell 11% YoY in H1 2025.
Moreover, HiXue Net’s reputation suffered after its 2020 3·15 Gala exposure for misleading ads, hidden contract terms, and refund obstacles. As recently as February 2025, media reports highlighted unresolved refund disputes tied to unfulfilled promises like "pass-or-refund" guarantees.
**IPO Deadline & Path Forward** HiXue Net’s prospectus reveals a deadline: if it fails to list by December 31, 2027, investors may demand share redemption. To survive, the firm must address service gaps and refine its monetization model.
*Image source: HiXue Net prospectus; header image via VR protocol.*
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