OneSmart International Education Group Ltd. (ONE), a company that provides tutoring services for students, has surged 18.75% in aftermarket trading session. Consequently, ONE is trading at $0.23 at the time of the writing. On Monday, ONE closed the day at $0.19 after slumping 33.09% during the regular trading session. The massive side could be attributed to the receipt of notification from NYSE regarding the delayed filing of Form 20-F.
Why ONE Declined?
On Monday, ONE announced that it had received a notice from NYSE regulation. The notice indicated that the company is not complying with Section 802.01E of the NYSE Listed Company Manual. The non-compliance is the result of its failure to timely file the Annual Report on Form 20-F for the 12 month period which ended on 31st August 2021. The company said that the delay occurred due to the change in the Company’s public accounting firm for the fiscal year ended 31st August 2021.
Suspension of Activities in China
On the 12th of October, ONE announced the suspension of all of the company’s education programs and learning centres in China. The Board of Directors of the company approved the move. The step was taken primarily due to the challenges posed by the recent changes in the relevant policy and regulatory landscape in China’s private educational service industry. As a result, the company was facing operating difficulties; hence, the decision was taken in best the best interest.
Future Outlook for ONE
Statistics reveal that during the last three month period, ONE stock has been in the doldrums. The more far-off statistics, like the one for the 12-month performance of the stock, also depict a similar abysmal picture. The reason for such a slide for the stock is the regulatory difficulties the company is facing, hence, creating negative sentiments from the investor’s viewpoint. Looking ahead, the situation doesn’t appear to get any better for the company, as stock is expected to decline further going ahead.