Youdao: The Way To Play Chinese Digital Education (NYSE:DAO)

Investment Thesis

Youdao (DAO), a subsidiary of NetEase (NTES), is an online education platform focused on the China market. From a macro perspective, online education is seeing strong tailwinds given an easier engagement model vs. in-person tutoring centers as well as COVID-related shifts towards socially distant education models. This has driven strong performance YTD as illustrated below. Although the stock has come down quite a bit from August highs, it is still at a material premium to the IPO price in Q4 2019.

Data by YCharts

The company generates revenues from two core segments: online education which accounts for 66% of revenues and digital advertising which accounts for 33% of revenues. Online education specifically consists of online courses and online education tools (dictionary/notebook) with a focus on K-12 and a growing platform focused on continuing education for adults.

A unique technology offering that Youdao has is the Smart Pen offering.

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Chinese ambassador rejects former Mongolian president’s remarks on bilingual education

Students at a class in Hohhot, north China’s Inner Mongolia Autonomous Region, May 7, 2020. Photo: Xinhua

The Chinese ambassador to Mongolia has rejected remarks made by former president of Mongolia Tsakhiagiin Elbegdorj on social media and in a letter addressed to China regarding the implementation of bilingual education of Putonghua and ethnic language in North China’s Inner Mongolia Autonomous Region, saying that his views in the letter are completely wrong and China won’t accept them. 

 “The national common language is a symbol of a country’s sovereignty, and it is the right and duty of every citizen to learn and use the common language, which is true not only for China, but also for all countries in the world,” said Chai Wenrui, the ambassador to Mongolia, in a letter sent to Elbegdorj. 

“At the same time, the Chinese government protects the rights of ethnic minorities, including Mongolians, to use their

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Chinese schoolchildren missing out on sex education, observers say



a group of people sitting at a table: Many Chinese schoolchildren are missing out on a formal sex education, observers say. Photo: Xinhua


Many Chinese schoolchildren are missing out on a formal sex education, observers say. Photo: Xinhua

A lack of suitably qualified teachers and conservative family attitudes mean Chinese schoolchildren are missing out on a formal sex education, observers say.

According to Li Hongyan, national programme officer at the Unesco Beijing cluster office, demand for sex education “far exceeds supply”.

“Family should be where sex education is first taught, but parents tend to shift the responsibility to schools because of their limited knowledge or personal values,” she said.

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“But schools also face many challenges, including the lack of specialist teachers and possible objections from parents.”

Sex education has been a mandatory part of the school curriculum in China since 2011, but Li said there was a lack of training programmes for teachers, with Chengdu

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Most Chinese students in Canada dislike online learning amid pandemic: report

OTTAWA, Sept. 27 (Xinhua) — Nearly 70 percent of Chinese students said they greatly or somewhat dislike online learning at Canadian universities, according to the latest report by Easy Group.

Less than 10 percent of students felt positively about online learning, with less than 5 percent enthusiastic, said the Disrupted Fall Semester of 2020 Survey Report.

The report focused on a survey that was administered to 389 Chinese students during the summer of 2020 amid the COVID-19 pandemic. The students either have been enrolled or previously intended to enroll in a Canadian university for the upcoming fall 2020 semester.

The survey looked at their opinions on a number of topics, including online learning, tuition reduction and mental health.

Eva Wu, the spokesperson for Easy Group, told Xinhua on Sunday that respondents to the survey represented 12 different Canadian Universities, though this representation was not evenly distributed. Easy Group is one

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Microsoft Downed 18 Azure Cloud applications Used By low-Budget Chinese Gadolinium Hacking Group

You probably didn’t hear it here first but the incredibly impressive thing about modern hacking groups is how darned cheap they are – in every sense of that word.

Why pay for cloud services when you can borrow free ones from large providers? Or, for that matter, make your own malware when you can re-purpose well-engineered tools made by other, more talented people?

It’s the low-budget MO that seems to get the people behind the allegedly Chinese Gadolinium hacking group out of bed in the morning, at least according to a new Microsoft report on the group’s recent activities.

In its detecting empires in the cloud report, the company details how in mid-April the Microsoft Threat Intelligence Center (MSTIC) spotted and suspended 18 Azure Active Directory applications that were being used by the threat

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Coping with the rational chaos of Chinese higher education

Despite being Hong Kong Chinese myself, I experienced profound culture shock when I began working in Chinese higher education.

Foreign, and particularly Western, scholars often find certain aspects of Chinese higher education very disconcerting. I come from the region categorised as jingwai (the Chinese areas outside mainland China, which include Hong Kong, Taiwan and Macao) by the government of the People’s Republic. So I was not surprised by things such as the lack of Western-style toilets. My Chinese cultural literacy and language proficiency also made it easier for me to integrate. However, the culture shock I felt when I moved from Hong Kong to Beijing to take up a full-time university post in 2018 was very real and emotionally draining.

The major cause of that shock was what Benjamin Green, in a paper presented to a 2019 conference in Manchester on China and higher education, called “rational chaos”. This can

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Koolearn Technology: Leading Chinese Online Education Company (OTCMKTS:KLTHF)

Elevator Pitch

I assign a Neutral rating to Chinese online education company Koolearn Technology Holding Limited (OTCPK:KLTHF) [1797:HK].

The K-12 education business is the key growth driver for Koolearn Technology, and all eyes are its location-based live interactive after-school tutoring courses referred to as DFUB. Looking ahead, DFUB has significant room to grow via further expansion into lower-tier cities in Mainland China and price increases.

On the flip side, Koolearn Technology’s K-12 education business remains loss-making, and the company’s recent share placement could possibly suggest that its share price has peaked. Koolearn Technology trades at a premium to most of its online peers, with consensus forward FY 2021 (YE May 31) and FY 2022 Enterprise Value-to-Revenue multiples at 15.9 times and 9.9 times, respectively. As such, I see a Neutral rating for Koolearn Technology as fair.

Readers have the option of trading in Koolearn Technology shares listed either on the

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Students in Inner Mongolia protest Chinese language policy

TAIPEI, Taiwan — Ethnic Mongolians, including students and parents, in China’s Inner Mongolia region are demonstrating their anger in rare public protests against a new bilingual education policy that they say is endangering the Mongolian language.

A high school student in the city of Hulunbuir said students rushed out of their school on Tuesday and destroyed a fence before paramilitary police swarmed in and tried to return them to class.

“We senior students were talking and we thought we had to do something,” said the student, Narsu, who like most Mongolians has only one name. “Although this doesn’t directly affect us now, this will have a huge impact on us in the future.”

The policy, announced on Monday ahead of the start of the new school year, requires schools to use new national textbooks in Chinese, replacing Mongolian-language textbooks. Protesters say they were aware of demonstrations and classroom walkouts in

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