The CEO's public apology was insufficient to prevent a significant decline in the company's stock price, which has now lost more than 90% of its value since its market debut three years ago.
FENBI is actively focusing on the "AI + Education" sector. While substantial capital investments in this area are beginning to yield returns, they are also placing pressure on the company's revenue.
Following controversial remarks made at Renmin University of China, FENBI (2469.HK) CEO Zhang Xiaolong issued a public apology to the university's faculty and students via Weibo this morning. Despite this, the company's share price experienced a sharp drop during the trading day.
At the market close, FENBI's share price stood at HK$0.61, representing a decrease of 8.96%.
Public records indicate that FENBI was established in 2015 as a vocational education and training provider. The company listed on the Hong Kong Stock Exchange in January 2023, gaining recognition as a leading online vocational education stock in the Hong Kong market. Zhang Xiaolong currently serves as the company's executive director, CEO, and board chairman, with primary responsibility for overall strategic planning, business development, operations, as well as technology research and course development.
AI-related courses have been a primary strategic focus for FENBI in recent years. In August 2025, the company announced it would allocate all remaining unused funds from its IPO towards AI research and infrastructure development. Consequently, the company's R&D expenses last year increased by 10.6% year-over-year, reaching 244 million yuan.
Building on this foundation, the company launched an AI-powered test preparation system, which attracted nearly 300,000 paying users between April and December 2025, generating annual revenue of over 38 million yuan.
However, the significant investment in AI has also exerted pressure on the company's revenue and profitability. In 2025, FENBI reported operating revenue of 2.677 billion yuan, a decrease of 4.06% from the previous year. Net profit was 198 million yuan, down 17.3% year-over-year. Meanwhile, the gross profit margin improved from 52.5% to 53.5%.
Examining a longer timeframe, FENBI's financial performance over the past five years has been generally lackluster. From 2023 to 2025, the company's operating revenues were 3.02 billion yuan, 2.79 billion yuan, and 2.68 billion yuan respectively, marking two consecutive years of decline and failing to return to the 2021 peak of 3.429 billion yuan. Concurrently, its employee headcount has been reduced from over 12,000 in 2021 to just over 7,000 last year.
Simultaneously, FENBI's share price has trended almost consistently downward since its listing. The stock debuted on the HKEX at an issue price of HK$9.9 per share but fell below HK$1 by mid-April this year, becoming a "penny stock." Based on the latest closing price, the company's market capitalization has evaporated by over 90% since its initial public offering.
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