openPR Logo
Press release

Lawsuit filed for Investors in First High-School Education Group Co., Ltd. (NYSE: FHS)

05-18-2022 04:19 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Shareholders Foundation

A lawsuit was filed on behalf of investors in First High-School Education Group Co., Ltd. (NYSE: FHS) shares.

A lawsuit was filed on behalf of investors in First High-School Education Group Co., Ltd. (NYSE: FHS) shares.

An investor, who purchased shares of First High-School Education Group Co., Ltd. (NYSE: FHS), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by First High-School Education Group Co., Ltd. in connection with First High-School Education's March 2021 initial public offering (IPO).

Investors who purchased shares of First High-School Education Group Co., Ltd. (NYSE: FHS) have certain options and for certain investors are short and strict deadlines running. Deadline: July 11, 2022. NYSE: FHS investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

China based First High-School Education Group Co., Ltd. operates private high schools in Western China. First High-School Education Group Co., Ltd. reported that its annual Total Revenue rose from 366.51 million CNY in 2019 to 445.83 million CNY in 2020, and that its Net Income increased from 31.60 million CNY in 2019 to 80.81 million CNY in 2020.

On or around March 11, 2021, First High-School Education Group Co., Ltd. conducted its initial public offering, issuing 7.5 million American depository shares ("ADSs") priced at $10.00 per ADS.

In the week immediately prior to the IPO - from March 4, 2021 through March 11, 2021 - China held its annual "Two Sessions" parliamentary meetings, where the two main political bodies of China meet, discuss, and reveal plans for China's policies involving the economy, military, trade, diplomacy, education, the environment, and other issues. Unbeknownst to investors until after the IPO, Chinese government leaders in attendance at the Two Sessions meetings had proposed - and ultimately adopted - stringent regulations governing the educational industry with material adverse repercussions for First High-School Education's business, operations, and financial prospects.
Soon after the IPO, media reports stated that attendees of the Two Sessions conference had proposed stricter regulations to rein in the for-profit education industry, such as regulations aimed at enhancing teacher quality, reducing market abuse, and reducing the stress that for-profit educational companies had placed on students in the Chinese educational system.

On May 12, 2021, news reports revealed that the impending government crackdown on for-profit educational companies in China would be much more drastic and far reaching than previously publicly known. Sources stated that anticipated rules would include measures such as banning on-campus tutoring classes, prohibiting tutoring services during weekend hours, and the imposition of industry-wide fee limitations.

Then, on May 14, 2021, China's state council announced rules that it would further tighten regulations on compulsory education and training institutions. According to an article on fitchratings.com titled "Legal Changes in Private Education in China: Rising Risks for K-12 Education Companies; Higher-Education Providers Benefit," the new rules "aim to prohibit profit-making in compulsory education," and "expose K-12 school operators to heightened regulatory risks and their revenue growth may slow . . . until they obtain more clarity on how the changes will be implemented." Thereafter, on July 23, 2021, China unveiled a sweeping overhaul of its education sector, banning companies that teach the school curriculum from making profits, raising capital, or going public. These drastic measures effectively ended any potential growth in the for-profit tutoring sector in China.

Then, on September 28, 2021, First High-School Education Group Co., Ltd. announced its first half of 2021 unaudited financial results, including, among other results, gross profit of RMB62.3 million (US$9.6 million), a decrease of 3.6% from RMB64.6 million in the first half of 2020; a net loss of RMB3.8 million (US$0.6 million), compared to a net income of RMB31.9 million in the first half of 2020, which was "primarily incurred by certain non-recurring expenses"; and adjusted net income (Non-GAAP) of RMB11.2 million (US$1.7 million), a decrease of 64.9% from RMB31.9 million in the first half of 2020.

On April 5, 2022, First High-School Education Group Co., Ltd. announced that it had received a letter from the New York Stock Exchange ("NYSE") stating that it was in non-compliance with the NYSE's listing requirements because its total market capitalization and stockholders' equity had fallen below compliance standards. The following week, on April 13, 2022, First High-School Education announced that its total revenues for 2021 were just RMB400.2 million, representing a substantial deceleration in the second half of the year. The release also stated that First High-School Education's total student enrollment had remained almost unchanged at 21,247 students at year's end, representing a paltry 3% increase year-over-year, and that First High-School Education's gross profit had declined 18.1% during the year.

Finally, on May 3, 2022, First High-School Education Group Co., Ltd. filed a notice with the U.S. Securities and Exchange Commission that it would not be able to timely file its annual report on Form NT 20-F.

Shares of First High-School Education Group Co., Ltd. (NYSE: FHS) declined to as low as $0.813 per share on May 06, 2022.

The plaintiff claims that the IPO's Registration Statement made inaccurate statements of material fact because defendants failed to disclose the following adverse facts that existed at the time of the IPO that the new rules, regulations, and policies to be implemented by the Chinese government following the Two Sessions parliamentary meetings were far more severe than represented to investors and posed a material adverse threat to First High-School Education and its business, that contemplated Chinese regulations and rules regarding private education were leading to a slowdown of government approval to open new educational facilities which would have a negative effect on First High-School Education's enrollment and growth, and that, as a result, the Registration Statement's representations regarding First High-School Education's historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, and financial results and trajectory of First High-School Education at the time of the IPO, and were materially false and misleading and lacked a factual basis.

Those who purchased shares of First High-School Education Group Co., Ltd. (NYSE: FHS) have certain options and should contact the Shareholders Foundation.

Contact:
Christopher Clausen
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Lawsuit filed for Investors in First High-School Education Group Co., Ltd. (NYSE: FHS) here

News-ID: 2627530 • Views:

More Releases from Shareholders Foundation

Investigation announced for Investors in shares of Lifecore Biomedical, Inc. (NASDAQ: LFCR) over possible Violations of Securities Laws
Investigation announced for Investors in shares of Lifecore Biomedical, Inc. (NA …
An investigation was announced for investors of Lifecore Biomedical, Inc. (NASDAQ: LFCR) shares over potential securities laws violations by Lifecore Biomedical, Inc. Investors who purchased shares of Lifecore Biomedical, Inc. (NASDAQ: LFCR), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554. The investigation by a law firm focuses on whether a series of statements by Lifecore Biomedical, Inc. regarding its business, its prospects and
Investigation announced for Investors in shares of Designer Brands Inc. (NYSE: DBI) over potential Wrongdoing by certain directors
Investigation announced for Investors in shares of Designer Brands Inc. (NYSE: D …
An investigation was announced over potential breaches of fiduciary duties by certain officers and directors at Designer Brands Inc. Investors who purchased shares of Designer Brands Inc. (NYSE: DBI) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554. The investigation by a law firm concerns whether certain Designer Brands Inc. directors breached their fiduciary duties and caused damage to the company and its shareholders. Columbus,
Lawsuit Alert: Investors who lost money with shares of Innoviz Technologies Ltd. (NASDAQ: INVZ) should contact the Shareholders Foundation
Lawsuit Alert: Investors who lost money with shares of Innoviz Technologies Ltd. …
An investor, who purchased shares of Innoviz Technologies Ltd. (NASDAQ: INVZ), filed a lawsuit over alleged violations of Federal Securities Laws by Innoviz Technologies Ltd. in connection with certain allegedly false and misleading statements. Investors who purchased shares of Innoviz Technologies Ltd. (NASDAQ: INVZ) have certain options and for certain investors are short and strict deadlines running. Deadline: May 14, 2024. NASDAQ: INVZ investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com
Lawsuit filed for Investors who lost money with shares of iRobot Corporation (NASDAQ: IRBT)
Lawsuit filed for Investors who lost money with shares of iRobot Corporation (NA …
An investor, who purchased shares of iRobot Corporation (NASDAQ: IRBT), filed a lawsuit over alleged violations of Federal Securities Laws by iRobot Corporation in connection with certain allegedly false and misleading statements. Investors who purchased shares of iRobot Corporation (NASDAQ: IRBT) have certain options and for certain investors are short and strict deadlines running. Deadline: May 7, 2024. NASDAQ: IRBT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858)

All 5 Releases


More Releases for Education

Education & Training Market is Booming Worldwide | Creative Education, Apollo Ed …
Latest published market study on Global Education & Training Market provides an overview of the current market dynamics in the Education & Training space, as well as what our survey respondents—all outsourcing decision-makers—predict the market will look like in 2027. The study breaks market by revenue and volume (wherever applicable) and price history to estimates size and trend analysis and identifying gaps and opportunities. Some of the players that are
Online Higher Education Market Next Big Thing | Major Giants American Public Edu …
A New business Strategy report released by HTF MI with title Global Online Higher Education Market Study Forecast till 2026 . This Global Online Higher Education market report brings data for the estimated year 2020 and forecasted till 2026 in terms of both, value (US$ MN) and volume (MT). The report also consists of forecast factors, macroeconomic factors, and a market outlook of the Online Higher Education market. The study
Global Online Higher Education Market Attractiveness, Competitive Landscape and …
Online Higher Education Market report also provide a thorough understanding of the cutting-edge competitive analysis of the emerging market trends along with the drivers, restraints, challenges, and opportunities in the Online Higher Education Market to offer worthwhile insights and current scenario for making right decision. The report covers the prominent players in the market with detailed SWOT analysis, financial overview, and key developments of the products/services from the past three
Bilingual School Education Market to Perceive Biggest Trend and Opportunity with …
Bilingual education involves teaching academic content in two languages, in a native and secondary language with varying amounts of each language used in accordance with the program model. Bilingual education refers to the utilization of two languages as means of instruction for students and considered part of or the entire school curriculum. Some of the prominent models are: Early-exit / Late-exit transitional bilingual education Developmental or maintenance bilingual education Bilingual immersion Integrated (i.e., non-segregated)
Global Private Tutoring Market 2019-2025: Ambow Education, New Oriental, TAL Edu …
The Research Report, Global Private Tutoring Market Size, Status and Forecast 2018-2025, recently published by QY Market Insights carries details related to fundamental Private Tutoring overview to arrange a progressive and comprehensive international strategies of market statistics. The study insights of this report include the intensive analysis of global market with categorization by product type, end-use applications, market top contributors, and leading niches. The analysis projects the market features which
Online Higher Education Market 2018-2022 Analysis by Major Companies: American P …
The report on Global Online Higher Education Market, documents a detailed study of different aspects of the Global Online Higher Education Market. It shows the steady growth in market in spite of the fluctuations and changing market trends. In the past four years the Global Online Higher Education Market has grown to a booming value of $xxx million and is expected to grow more. Every market intelligence report is based on