Fenbi Mocks Rivals with Cheap Courses: 'No Profit in Written Exams, We'll Cheat in Interviews'

Fenbi (02469.HK) has recently drawn widespread attention after publishing a series of candid, self-critical posts on its official social media channels.

Financial Struggles in the First Half of the Year

According to Red Star Capital Bureau, Fenbi experienced significant financial pressure in the first half of this year, slipping into a loss-making position. The company also saw declines in both its average monthly active users and employee headcount.

In the first half of the year, Fenbi reported:

• Revenue: RMB 1.248 billion, down 16.35% year-on-year
• Net loss: RMB 184 million, compared to a net profit of RMB 227 million in the same period last year

By business segment, revenue from both training services and book sales declined. Training service revenue fell to RMB 1.069 billion, a 17.5% decrease from RMB 1.295 billion in the same period last year. Fenbi attributed this to a reduction in the number of positions offered in China's civil service exams and intensifying competition in the training industry.

"Mini Essays" Reveal Internal Frustrations

From September 16 to the evening of September 17, Fenbi published multiple posts on its official WeChat public account and Weibo, openly discussing its challenges.

Fenbi stated that it has long been a benchmark for the civil service exam training industry, but acknowledged that the organization has become bureaucratic, bloated, and inefficient. To address these issues, the company said it plans to learn from competitors and launch similar low-priced products.

Using its "Family Bucket" course series as an example, Fenbi noted that competitors sell similar courses for around RMB 680, while Fenbi's version is priced at RMB 299. The company explained: "We priced it lower not because we want vicious competition or to appear virtuous, but mainly because we were afraid it wouldn't sell... Since everyone likes cheap products, we'll make cheap ones. We won't make money on the written exam—we'll wait to 'cheat' people during the interview."

On September 17, Fenbi revealed in a second post that its newly launched course, modeled after a competitor (ChaoGe Education), sold over 1,200 copies in one day at RMB 1,380 (cheaper than ChaoGe's version). The post also accused ChaoGe of lying about not making money on the course, estimating that ChaoGe had earned approximately RMB 3 million in profit from it.

Later that evening, Fenbi published a third post, claiming it was the first to lower training fees in the civil service exam industry but has since been criticized as "unscrupulous." It also alleged that a competitor spent RMB 2 million to poach Fenbi staff.

Fenbi added: "The recent series of critical posts is mainly because we've been bullied in public opinion for years and we've had enough. Combined with poor management, ineffective leadership, and heavy losses, seeing competitors make money and poach our teachers made us both anxious and angry. So we resorted to launching various low-priced products to vent our frustration... In truth, Fenbi's losses aren't because the system courses aren't profitable—it's mainly because of our own mistakes."

Employee and User Decline

The issue of staff poaching mentioned in Fenbi's posts is also reflected in its financial reports.

As of June 30, Fenbi had 5,963 employees, including 2,154 full-time lecturers. By comparison, at the end of 2025, the company had 7,005 employees, including 2,870 full-time lecturers.

This means that in the first half of the year, over 1,000 employees left the company, including 716 full-time lecturers.

Average monthly active users also declined, from 9.1 million at the end of 2025 to 8.5 million as of June 30.

No Comment from Company

On September 18, Red Star Capital Bureau called the phone number listed for Beijing Fenbi Blue Sky Technology Co., Ltd. in business registration records. After the reporter stated their purpose, the call was immediately disconnected.

(Source: Red Star Capital Bureau)