In early June 2026, the CEO of FENBI, Zhang Xiaolong, was invited to deliver a career planning lecture at the School of Philosophy of Renmin University of China. What was intended as a serious discussion about the civil service exam tutoring industry quickly veered off course. Before the event began, Zhang unilaterally changed the topic to "Career Planning in the AI Era" without prior consultation with the university.
According to accounts from students present, Zhang began by sharing his views on the job market. He stated that the competition for civil service positions was excessively fierce and that government recruitment was shrinking. He bluntly remarked that "most people who sign up for tutoring courses are those who can't pass the exams; what institutions offer is merely emotional support and public internship opportunities." He then proceeded to promote what he saw as the most promising career path: stock trading. He advocated for technology stocks, particularly US-listed ones, and even suggested involving one's family, boasting about his own recent market success where he claimed to have turned an 80 million cash investment into a 53 million profit in a single month, adding, "I'm mainly saying this to show off."
As the audience reacted with indifference, Zhang's demeanor shifted dramatically. He became increasingly agitated, transitioning from a calm presentation to provocative statements, frequently using profanity. He eventually lashed out at the entire student body, accusing them of being "deservedly unemployed" and destined to "idle away their lives," before storming out of the venue. The lecture was abruptly terminated, leaving students and faculty in stunned silence.
The following day, amid rapidly escalating public criticism, FENBI issued a formal apology on its official social media account. The statement, issued in Zhang Xiaolong's name, acknowledged "improper personal conduct, leaving midway, and making inappropriate remarks," and offered a sincere apology to Renmin University and its faculty and students. Many online commentators condemned the behavior as hypocritical, akin to "biting the hand that feeds you." A significant number of netizens and customers called for a boycott and refunds on social media platforms.
The fallout from this incident swiftly extended to the financial markets. On the day of the lecture, FENBI's stock price closed at HK$0.67, marking a decline of 4.29%, after hitting an intraday low of HK$0.62. The downward trend continued the next day. Looking back over the preceding four months, the stock had experienced a severe and sustained drop. From a high earlier in the year, the share price had plummeted by over 80% by early June, falling below the HK$1 threshold and officially entering "penny stock" territory on the Hong Kong exchange.
Angry investors began voicing demands on investment forums for Zhang Xiaolong to resign and be held accountable for the massive destruction of shareholder value. These signals indicated that market confidence in FENBI had reached a nadir.
Underlying Business Challenges
The company's troubles extend far beyond this single public relations disaster. Deteriorating fundamentals have been a growing concern. According to its financial reports, FENBI's full-year 2025 revenue was 2.677 billion yuan, representing a year-on-year decrease of 4.1%. Its adjusted net profit was 281 million yuan, a significant drop of approximately 22.4% compared to the previous year. The primary drivers were declines in both training service revenue and book sales.
While its core business faced pressure, the competitive landscape within the industry was also shifting. In 2025, rival Huatu Education projected a net profit attributable to shareholders ranging from 280 million to 420 million yuan, representing a staggering increase of 428% to 692% compared to the previous year's approximately 53 million yuan. This performance effectively surpassed FENBI's net profit for the same period.
Compounding Pressures on the Horizon
With a sustained downturn in its financial performance and the CEO's personal brand now severely damaged, FENBI faces heightened challenges in customer acquisition costs and brand reputation repair. The company's core competitive advantage lies in its accumulated online traffic and technological edge in the civil service exam preparation sector. If the negative sentiment spreads to its core user base, the impact could be immeasurable.
In just two months from April to June 2026, the company endured a series of setbacks: its annual profit being overtaken by a competitor, the dissolution of a key shareholder alliance, and the CEO's public relations crisis. By early June 2026, FENBI's total market capitalization had shrunk dramatically from its post-IPO peak. The ranking among the "big three" in China's civil service exam training sector remains in flux. Should brand repair efforts fail and new customer acquisition be hindered, the company's revenue performance in the coming quarters could face severe pressure.
Signs of Internal Strain
Approximately three weeks prior to this brand crisis, cracks in Zhang Xiaolong's control had already appeared. On May 15, 2026, FENBI announced that a major shareholder, Li Yong, had signed a supplementary agreement terminating his status as a person acting in concert with Zhang Xiaolong and Wei Liang. This dissolution of a long-standing shareholder alliance left only Zhang and Wei in the pact. From the departure of a core ally to the public relations fiasco at the university, this professional training company, which has seen billions in market value evaporate, is being pushed into its most precarious position since going public.
The Path Forward
One失控的讲座 has exposed deeper, long-standing concerns regarding internal governance and operations at this listed education firm. While Zhang Xiaolong's apology mentioned a willingness to "bear corresponding responsibility," shareholders await answers far more complex than a simple apology. Key questions remain: When will the stock price decline halt? Can the rift within the top decision-making layer, following the breakup of the shareholder alliance, be mended? How can the trust built with students over years be rebuilt? The answers to these questions will ultimately determine whether FENBI can navigate its way out of this storm.
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