The "Zhang Xiaolong era" has officially concluded at Fenbi.
On July 8th, Fenbi announced on the Hong Kong Stock Exchange that Zhang Xiaolong has resigned from his positions as executive director, CEO, and chairman of the board due to personal affairs. Following his departure, he will no longer hold any role within the group. His former responsibilities will be transferred to Vice President Sheng Haiyan.
Sheng Haiyan, a senior executive from Fenbi's early days, is currently responsible for the overall management of the group's book publishing and sales.
Zhang Xiaolong's influence as a founder was deeply ingrained in Fenbi's development.
Since the business began operating independently around 2015, he had long served in a central role, overseeing the group's overall strategic planning, business development, operations, as well as its technology and course development.
However, a series of adjustments in management and corporate governance preceded Zhang Xiaolong's resignation.
In April of this year, Fenbi co-founder Wei Liang resigned as an executive director and a member of the board's remuneration and nomination committees, though he remained as company president responsible for training services and technical affairs.
In May, Li Yong, co-founder and CEO of Yuanfudao and a former non-executive director of Fenbi, terminated the concerted action relationship with Zhang Xiaolong and Wei Liang, freeing himself from any obligation to act according to Zhang Xiaolong's instructions.
In June, Zhang Xiaolong issued a public apology for inappropriate remarks made during a lecture at Renmin University, drawing Fenbi into public controversy.
These cumulative changes indicate that the founder's exit is not an isolated incident. For Fenbi, this represents both a reallocation of management duties and a transition from a strong founder-led culture towards more professionalized operations.
In recent years, despite sustained demand for civil service and recruitment examinations, Fenbi's financial performance has not kept pace.
In 2025, the company reported revenue of 2.677 billion yuan, a decrease of 4.1% year-over-year. Its adjusted net profit was 281 million yuan, lower than the 363 million yuan recorded in 2024. The average monthly active users remained largely flat at approximately 9.12 million, compared to 9.14 million in 2024.
In its annual report, Fenbi attributed the decline in its core training services business to intense price competition from smaller players in the recruitment exam training industry.
In 2025, Fenbi launched an AI-based practice question system course priced at 399 yuan. This course utilizes the company's self-developed vertical large model to provide students with learning diagnostics, review planning, and personalized learning path adjustments, adopting a dual-teacher model combining "star instructors + AI digital tutors."
According to the company's plan, 2026 will see a continued deepening of its "AI + Education" strategy, with increased investment in AI vertical models, technological R&D, and the commercialization of AI products. The operational AI education framework is also slated for expansion into a broader range of recruitment exam categories.
The underlying logic of AI integration is to standardize and scale processes like practice question drilling, diagnostics, and explanations, thereby reducing reliance on star instructors and lowering marginal costs.
Currently, however, the pricing for AI courses is significantly lower than that of traditional large-class courses. While this has boosted sales volume, it has also depressed the average selling price, offsetting some of the potential revenue growth.
In the short term, AI appears more as a tool for customer acquisition and user base stabilization. It still needs to prove its ability to evolve into a sustainable, high-margin product matrix that encourages repeat purchases.
With Zhang Xiaolong's departure, Fenbi urgently needs to address key questions: whether its strategy can be sustained, whether it can maintain brand premium amidst low-price competition, and whether AI can genuinely become a new growth engine. What Sheng Haiyan inherits is a Fenbi that must now re-prove its capacity for growth.
Comments