Tsingda eEDU Corporation, which filed for an IPO on Jan. 20, doesn’t shy away from the “tiger moms” label. “Parents who demand academic excellence in their children are known in China as ‘tiger mothers,’ and Tsingda eEDU runs a den for their cubs,” Hoovers writes in its description.
In a culture that prizes academic achievement, Tsingda Education seems to have found a model that appeals to tiger moms. The company uses its “Internet Classroom” platform to tutor more than 1.5 million Chinese students with a mix of pre-recorded courses, one-on-one tutoring sessions and virtual classroom-based instruction.
The company’s franchising model has helped Tsingda mushroom across the country, so that it now operates approximately 2,271 learning centers. And it appears to be minting cash. According to Tsingda’s S-1 filing, revenues were up 101 percent in 2009 and net income rose 77.9 percent to $4 million.
During the first nine months of 2010, revenue grew 64 percent to $18.7 million and net income hit $10.9 million; an increase of 95 percent year over year. The company’s total number of active students grew by 34 percent between Q3 2009 and Q3 2010 to 337,440.
The online education sector in China has fallen under pressure of late on allegations that at least one company, China Education Alliance, Inc. (NYSE:CEU), overstated revenues in SEC filings. CEU’s shares have tumbled more than 54 percent over the past three months.
If Tsingda’s the real deal, though, it might help turn around the sector’s image in the minds of investors.
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Tags: CEU, tiger moms, Tsingda eEDU
