FIRST HIGH SCHOOL EDUCATION GROUP CO., LTD. CLASS ACTION

NEW YORK, May 17, 2022 (GLOBE NEWSWIRE) — Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Southern District of New York against First High-School Education Group Co., Ltd. (NYSE: FHS) American Depositary Shares (“ADS”) on behalf of all investors who purchased shares in First High-School Education’s March 2021 initial public offering (the “IPO ”) or attached to it.

All investors who purchased the shares of First High-School Education Group Co., Ltd. and losses incurred are advised to contact the company immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You can get additional information about the action or join the case on our website, www.whafh.com.

If you have suffered losses in First High School Education Group Co.,Ltd., you can, at the latest July 11, 2022, ask the Court to name you as the lead plaintiff in the proposed class. Please contact Wolf Haldenstein to find out more about your rights as an investor in First High School Education Group Co., Ltd.

PLEASE CLICK HERE TO JOIN THE CASE

The filed complaint alleges that the IPO’s registration statement misrepresented because the defendants failed to disclose the following adverse facts that existed at the time of the IPO:

  • that the new rules, regulations and policies to be implemented by the Chinese government following the parliamentary meetings of the two sessions were much more severe than what was presented to investors and posed a significant adverse threat to First High-School Education and its activities ;
  • that China’s regulations and rules regarding private education were causing slower government approval for the opening of new educational institutions, which would have a negative effect on First High-School Education’s enrollment and growth; and
  • that, therefore, statements in the listing statement regarding First High-School Education’s historical financial and operating measures and alleged market opportunities did not accurately reflect the actual business, operations and financial results and trajectory of First High-School Education at the time of the IPO, and were materially false and misleading and lacked a factual basis.

On May 12, 2021, news reports revealed that the impending government crackdown on for-profit educational enterprises in China would be far more drastic and far-reaching than previously thought.

Subsequently, on May 14, 2021, Chinese authorities announced rules that would further tighten regulations on compulsory education and training institutions. According to an article on fitchratings.com title “Legal Changes in Private Education in China: Growing Risks for K-12 Education Companies; Benefits for Higher Education Providers,” the new rules “aim to prohibit profit-making in compulsory education” and “expose K-12 school operators to increased regulatory risk and their revenue growth could be weak . . . until that they get more clarity on how the changes will be implemented.

On July 23, 2021, China unveiled a sweeping overhaul of its education sector, banning companies that teach the school curriculum from making a profit, raising capital, or going public. These drastic measures have effectively ended any potential growth of the for-profit tutoring industry in China.

Two months later, on September 28, 2021, First High-School Education disclosed that its revenue for the first half of 2021 was RMB 231.9 million, a year-on-year increase of only 24, 8%, a sharp decline from 30.5% for the year – the year-on-year revenue increase for the first nine months of 2020 and the 32.5% year-over-year revenue increase another for the whole of 2020.

The following month, on October 13, 2021, First High-School Education issued a statement announcing that its chief financial officer, defendant Lidong Zhu, had resigned as chief financial officer. And on December 16, 2021, First High-School Education announced that it had terminated its KPMG auditor Huazhen LLP.

On April 5, 2022, First High-School Education announced that it had received a letter from the New York Stock Exchange (“NYSE”) stating that it did not meet NYSE listing requirements because its market capitalization total and its shareholders equity had fallen below compliance standards. The following week, on April 13, 2022, First High-School Education announced that its total revenue for 2021 was only RMB 400.2 million, representing a substantial deceleration in the second half of the year.

Then, on May 3, 2022, First High-School Education filed a notice with the United States Securities and Exchange Commission stating that it would not be able to timely file its annual report on Form NT 20- f.

As of May 10, 2022, First High School Education’s ADSs closed below $1 per ADS – more than 90% below the $10 per ADS price at which the ADSs were sold to the investing public just over a year. year before.

Wolf Haldenstein has extensive experience in prosecuting securities class action and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. This firm’s reputation and expertise in shareholder litigation and other class actions have been repeatedly recognized by the courts, which have appointed it to major positions in complex, multi-district and consolidated securities litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this matter, please contact Wolf Haldenstein immediately by phone at (800) 575-0735 or by email at [email protected]

Contact:

Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Business and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774

This press release may be considered attorney advertising in certain jurisdictions under applicable law and ethics rules.

Comments are closed.