Shares of the OneSmart International Education Group Limited (ONE) stock were rising in the premarket trading session today on January 11, 2022. ONE stock price saw a surge of 33.38% to reach $0.25 a share at the time of this writing. The stock was gloomy in the previous trade and went down by 33.09% at closing. Let’s take a closer look at this stock to understand the reason for this bull.
What’s Happening?
One stock is hot among investors in the social media platforms like Reddit, Stock Twits. The stock declined in the previous trade after the news appeared that the company received the notification from NYSE concerning Delayed Form 20-F Filing. The company did not file its Annual Report on Form 20-F for the year ended August 31, 2021, timely due to which it is not in compliance with Section 802.01E of the NYSE Listed Company Manual.
OneSmart had to file the 2021 Form 20-F by the end of December 2021. The company delayed Form 20-F due to a change in its independent registered public accounting firm for the fiscal year 2021 ended August 31. The company is striving hard to fill the form as soon as possible. This news resulted in a decline in the per-share price of ONE stock which then recovered today due to the Reddit rally. Moreover, notice which company received does not impact the listing of its ADSs.
Previous Event of ONE stock
On October 12, 2021, the company announced that its board of directors approved the suspension of all the educational programs and learning centers in China. The suspension of educational programs and learning centers was due to strict educational policies by the Chinese Government. Moreover, the company was facing operational difficulties in such areas. OneSmart also reported the resignations of Liang (Mason) Xu and Yan Gong from the board.
Financial View of ONE stock
According to the financial results for the second quarter of fiscal 2021, the company generated RMB931.6 million in revenue. This represents an increase of 5.2% from the same quarter of last year. Operating costs of the company reached RMB1,042.0 million, higher than prior-year same quarter’s operating costs. The Operating loss in the reported quarter reached RMB110.4 million, compared to RMB54.8 million in the same tenure of the previous year. Operating margin was -11.8% in the second quarter of the fiscal year 2021. The company reported RMB26.1 million of net interest expense in the last reported quarter. By the end of the quarter on February 28, 2021, the company had RMB523.7 million in cash and cash equivalents.
