LAIX Inc. (LAIX) shares surged 16.10% in after-hours on Tuesday, August 31, 2021, and closed the daily trading at $1.37. In the Regular trading session of Tuesday, LAIX’s stock gained 11.32%. LAIX shares have fallen 48.70% over the last 12 months, and they have moved up 19.19% in the past week. Over the past three months, the stock has lost 31.40%, while over the past six months, it has declined 53.91%.
Let’s see what are the latest news and developments about the company?
LAIX recent financial results announcement
On August 26, 2021, LAIX Inc (LAIX) announced its unaudited financial results for the second quarter ended June 30, 2021.
Q2 2021 financial highlights
- LAIX reported revenue of 5 million(US$27.8 million) in Q2 2021, compared to RMB269.4 million in Q2 2020.
- The gross margin was 80.4% for Q2 2021 compared to 71.9% for the same quarter last year.
- The cost of revenues was 2 million(US$5.5 million) in Q2 2021 compared to RMB75.6 million for the same quarter last year.
- Total operating expenses were 1 million(US$21.2 million) in Q2 2021 compared to RMB289.7 million for Q2 2020.
- In Q2 2021, net income was 0 million(US$2.2 million) compared to a net loss of RMB92.5 million in Q2 2020.
- Adjusted EBITDA was6 million(US$3.8 million) in Q2 2021 compared with an adjusted EBITDA loss of RMB77.8 million in Q2 2020.
- The company had cash, cash equivalents, restricted cash, and short-term investments that amounted to 4 million(US$20.7 million) on June 30, 2021, compared to RMB172.6 million as of March 31, 2021.
LAIX special committee formation
On August 6, 2021, LAIX Inc board of directors formed a special committee consisting of two independent directors, Dr Li-Lan Cheng, who will serve as the chairman of the Special Committee, and Ms. Min (Jenny) Zhang, to evaluate and consider the previously announced preliminary non-binding proposal letter dated August 4, 2021.
The first proposal of the special committee
On August 17, 2021, the special committee of the Company’s board of directors retained Houlihan Lokey (China) Limited as its financial advisor and Kirkland & Ellis as its U.S. legal counsel in connection with its review and evaluation of the previously announced non-binding proposal.
LAIX Proposal to Acquire the Company
On August 4, 2021, LAIX Inc. board of directors received a preliminary non-binding proposal letter from Mr. Yi Wang, co-founder, chairman of the Board, and chief executive officer of LAIX, Mr. Zheren Hu, co-founder, director, and chief technology officer of LAIX, Mr. Hui Lin, co-founder, director and chief scientist of LAIX and PCIL IV Limited to acquire all of the outstanding ordinary shares of the Company including the Class A ordinary shares represented by the American Depositary Shares of the Company.
Conclusion
Well, as of this writing, we have no recent news or development which could be linked with its good performance on Tuesday. We hope that it will continue to perform well in the coming trading sessions of Wednesday.
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