Lixiang Education Holding Co. Ltd. (NASDAQ:LXEH), an educational services provider, announced today that it has postponed its upcoming annual general meeting (AGM) from the previously set date of November 15, 2024, to November 18, 2024.
This decision was made by the company's board of directors to allow shareholders additional time to review and vote on new resolutions concerning the proposed third amended and restated memorandum and articles of association.
The meeting, which will take place at 10:00 a.m. Beijing Time, will still be held at No. 467, Chengbei Street, Liandu District, Lishui City, Zhejiang Province, in the People’s Republic of China. The original date for the AGM was disclosed in a filing with the Securities and Exchange Commission (SEC) on September 30, 2024.
Investors and interested parties should note that this information is based on a press release statement.
In other recent news, Lixiang Education Holding Co. Ltd. has experienced a significant decrease in half-year revenue, reporting RMB 15.3 million for the first half of 2024, compared to RMB 25.2 million for the same period the previous year.
This decline was attributed to a drop in tuition and accommodation income, particularly from Langfang School's vocational education programs, and a decrease in sales of meals, uniforms, and learning materials. The company also reported a net loss of RMB 8.6 million for the first half of 2024.
In other developments, Lixiang Education announced a resolution for a contractual dispute involving Langfang School, which will no longer need to pay rental expenses for a specified period. However, the school is required to vacate the premises by July 2024 and has since entered into a new lease agreement.
Furthermore, Lixiang Education has made a significant change to the ratio of its American Depositary Shares (ADS) to Class A ordinary shares, as detailed in Form 6-K filed with the U.S. Securities and Exchange Commission. This adjustment, aimed at increasing the ADS's trading liquidity on the NASDAQ, changes the representation from one ADS for two Class A ordinary shares to one ADS for eight Class A ordinary shares.
This change does not impact Lixiang Education's underlying equity value or market capitalization but is a technical adjustment to the trading instrument's structure.
InvestingPro Insights
As Lixiang Education Holding Co. Ltd. (NASDAQ:LXEH) prepares for its rescheduled annual general meeting, investors might benefit from a closer look at the company's financial health and market performance. According to InvestingPro data, LXEH's market capitalization stands at a modest $3.63 million, reflecting its small-cap status.
Two relevant InvestingPro Tips highlight that LXEH is "trading at a low Price / Book multiple" and "holds more cash than debt on its balance sheet." These factors could be of interest to shareholders reviewing the company's financial position before the AGM. The low Price / Book ratio, currently at 0.15, might suggest the stock is undervalued relative to its assets, which could be a point of discussion at the meeting.
It's worth noting that LXEH has faced significant challenges, with a year-to-date price total return of -85.86% and a one-year return of -65.9%. These figures underscore the importance of the upcoming AGM, where shareholders will likely seek explanations for the company's performance and future strategies.
For investors looking for a more comprehensive analysis, InvestingPro offers 10 additional tips that could provide deeper insights into LXEH's financial situation and market position.
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