Fenbi fights back with HK$200M buyback after record stock slump
Fenbi Ltd., a leading provider of civil service exam preparation and state industry job services, has been through a rollercoaster of events recently. The company's shares hit a record low in April 2025, with chairman Zhang Xiaolong accusing Hillhouse of share dumping. Despite these challenges, Fenbi has announced a share buyback plan, aiming to boost investor confidence.
Fenbi's share price initially soared to HK$15 after debuting at HK$9.9 but later faced selling pressure, dropping to a record low of HK$2. The company has faced intense competition in the testing sector, leading to declining turnover and profits in 2024 and the first half of 2025. To combat this, Fenbi launched cost-cutting measures in 2024 and 2025, reducing expenses in administration, marketing, and R&D.
Fenbi's AI-powered products, such as Fenbi AI Teacher and interview coaching services, have generated around 20 million yuan in revenue as of June 30, 2025. The company specializes in preparing candidates for civil service exams and jobs in state industries, with prominent investors including Tencent, Hillhouse Capital, IDG Capital, Matrix Partners, and DCP Capital supporting its growth.
Fenbi has announced a share buyback plan, intending to spend up to HK$200 million ($25.64 million) over six months to purchase up to 10% of its issued equity capital. Chairman Zhang Xiaolong and executive director Wei Liang have pledged not to sell their holdings for two years, aiming to reassure investors. Despite recent challenges, Fenbi remains committed to its mission and is taking steps to strengthen its financial position.
