Koolearn Technology Holding Limited: history, ownership, mission, how it works & makes money

From its beginnings in 2005 as an online education provider to a dramatic pivot into livestreaming e‑commerce, Koolearn-now East Buy Holding Limited-has reinvented itself after raising approximately US$1.48 billion in net proceeds at its March 2019 IPO (listed as 1797.HK), exiting K‑12 tutoring in 2021 and rebranding in February 2023 to focus on private‑label sales via live channels like East Buy Beautiful Life and East Buy Private Label; a majority‑owned subsidiary of New Oriental with executives including CEO Minhong Yu and CFO Qiang Yin, the company had grown into a notable livestreaming player by November 2025 with a market capitalization of about HK$13.59 billion (as of July 1, 2025), monetizing direct‑to‑consumer private‑label offerings, influencer‑driven Douyin streams, and data‑driven sourcing and logistics to capture consumer demand-analysts assign a 12‑month average price target of HK$10.20 as East Buy expands product lines, scales live commerce operations and pursues sustainability and efficiency in its supply chain.

Koolearn Technology Holding Limited (1797.HK): Intro

• Founded: 2005 - online courses for college students and professionals.
• IPO: March 2019 on the Hong Kong Stock Exchange (1797.HK), raising approximately US$1.48 billion in net proceeds.
• Regulatory pivot: 2021 - ceased K‑12 online tutoring services in response to tightened regulations.
• Rebrand: February 2023 - renamed East Buy Holding Limited to reflect a shift toward e-commerce and new consumer-facing businesses.
• By November 2025: established as a livestreaming e‑commerce operator focused on private‑label goods.

• Origins: Historically affiliated with New Oriental's group of education businesses; initial controlling interests reflected links with New Oriental management and shareholders.
• Post‑IPO: Listed public company with institutional and retail investors; strategic decisions subsequently driven by management to pivot away from regulated K‑12 tutoring.
• Board & management: Recomposition of leadership and advisors to support consumer retail, supply‑chain, and livestreaming operations following the 2021-2023 transition.

• Transitioned mission from delivering scalable online education to building a consumer e‑commerce platform leveraging live streaming, supply‑chain integration, and private‑label development.
• Target segments: rural agricultural producers, daily household necessities, and value‑oriented consumer categories sold via livestream channels and direct e‑commerce.

• Livestreaming commerce: Hosts live shows on company channels (e.g., East Buy Beautiful Life; East Buy Private Label) to drive impulse and curated sales.
• Private label manufacturing: Sources, develops, and markets private‑label items-especially agricultural produce and daily necessities-to capture higher gross margins.
• Supply‑chain integration: Works with producers, logistics partners, and in‑house e‑commerce operations to reduce costs and control product quality.
• Monetization channels: product sales (direct margin), platform fees, promotional advertising, and cross‑selling of private‑label assortments.

• Live channels: East Buy Beautiful Life (lifestyle & daily needs) and East Buy Private Label (private label and agricultural specialties).
• Product focus: Fresh and packaged agricultural products, household consumables, beauty & wellness staples produced under private labels to improve margin capture.
• Customer acquisition: Livestream anchors, KOL partnerships, platform promotions, and targeted social advertising to convert audiences during live events.

• Competition: Intense competition from established livestream e‑commerce incumbents and vertical specialists.
• Supply chain & quality control: Scaling private‑label products requires robust sourcing, logistics, and quality assurance.
• Capital allocation: Converting IPO proceeds and subsequent cash reserves into profitable e‑commerce operations depends on efficient marketing ROI and margin management.

Koolearn Technology Holding Limited (1797.HK): History

Koolearn Technology Holding Limited (1797.HK) began as an online education arm associated with New Oriental Education & Technology Group Inc., later transforming its corporate identity and strategic focus. In February 2023 the company underwent a major restructuring and changed its English name to East Buy Holding Limited to reflect a shift from online education toward e-commerce. The company remains publicly traded on the Hong Kong Stock Exchange under the ticker 1797.HK and, as of July 1, 2025, had a market capitalization of approximately HK$13.59 billion. By November 2025 East Buy is a subsidiary of New Oriental, with New Oriental retaining a majority (controlling) stake and the group continuing to influence governance and strategic direction.

• Ticker: 1797.HK
• Market capitalization: ~HK$13.59 billion (as of 1 July 2025)
• English name change: Koolearn → East Buy (Feb 2023)
• Parent/subsidiary status: East Buy is a subsidiary of New Oriental (as of Nov 2025)

• Ownership structure highlights:
  • Majority/controlling ownership: New Oriental Education & Technology Group Inc.
  • Remaining shares: mix of institutional and individual investors traded publicly on the HKEX
  • Corporate governance: overseen by a board of directors with executive management led by CEO Minhong Yu and CFO Qiang Yin
• Strategic rationale for restructuring:
  • Align brand identity with e-commerce business model
  • Reallocate capital and management focus from online tutoring products to consumer and marketplace initiatives
• Primary revenue / monetization streams (post-shift):
  • Platform transaction fees and commissions from third-party sellers
  • Direct merchandise sales and inventory-driven retail margins
  • Value-added services: fulfillment, advertising, logistics partnerships, and subscription services
  • Cross-selling to New Oriental customer base and leveraging group synergies

For more on investor composition and buying motivations, see: Exploring Koolearn Technology Holding Limited Investor Profile: Who's Buying and Why?

Koolearn Technology Holding Limited (1797.HK): Ownership Structure

Koolearn Technology Holding Limited (1797.HK) operates as a leading online education and edtech solutions provider in Greater China. Its mission and values emphasize accessible, high-quality educational products delivered via innovative digital platforms, with customer-centricity, integrity, transparency, continuous innovation, sustainability, and a collaborative corporate culture at the core of its strategy. For more on corporate intent and values see: Mission Statement, Vision, & Core Values (2026) of Koolearn Technology Holding Limited.

• Mission: Provide high-quality, accessible educational products and services through scalable online solutions.
• Customer focus: Design offerings to meet diverse learner needs across K‑12, test prep, vocational and lifelong learning segments.
• Integrity & transparency: Uphold clear disclosure and ethical conduct in partnerships, content delivery, and data handling.
• Innovation: Invest in AI-driven adaptive learning, live streaming classrooms, and content personalization.
• Sustainability: Implement low-carbon operations, paperless materials, and supplier audits to reduce environmental impact.
• Culture: Foster collaboration, professional development, and employee well‑being to sustain talent for product growth.

Ownership and control are concentrated, with a strategic founder/parent shareholder and diversified institutional and retail holders. The simplified ownership snapshot below reflects typical major-holder categories and governance influence.

How Koolearn makes money (revenue model):

• Tuition & course fees - live online classes, recorded courses, subscription packages (largest revenue driver historically).
• Platform services - SaaS and B2B licensing to schools and institutions for content delivery and learning management.
• Content & materials - digital textbooks, practice banks, and proprietary adaptive learning content (monetized via sales and subscriptions).
• Test-prep & certification programs - high-margin cohorts for exams and professional certifications.
• Value-added services - tutoring, diagnostic assessments, learning analytics, and career services.

Governance and control dynamics:

• Board composition typically includes founders/major shareholder nominees, independent directors, and independent committee chairs to meet HKEX requirements.
• Major shareholder influence determines strategic investment, M&A, and alliance priorities; minority protections follow regulatory standards.
• Share incentive plans align management with shareholder returns, while disclosure and audit practices adhere to Hong Kong listing rules.

Koolearn Technology Holding Limited (1797.HK): Mission and Values

• Business model: Koolearn operates a livestreaming e-commerce arm branded as East Buy (East Buy Holding Limited) that uses short-video and livestream platforms such as Douyin to sell private-label and sourced consumer goods directly to consumers.
• Channels: Primary live channels include 'East Buy Beautiful Life' and 'East Buy Private Label,' each focused on product categories such as fresh agricultural produce, packaged foods, household goods, and daily necessities.
• Influencer & platform partnerships: East Buy signs collaboration agreements with anchor influencers and platform promotional programs to secure traffic, often leveraging Douyin's in-feed, live PK and campaign placements to scale sessions and convert viewers into buyers.
• Direct-to-consumer sourcing: Products are sourced directly from manufacturers or tight supply-chain partners to control unit economics, reduce intermediaries, and maintain quality assurance for private-label SKUs.
• Data analytics & optimization: Real-time analytics track viewer behavior, click-through, cart-add and conversion metrics to refine product mix, pricing, promotional timing and anchor scripts across sessions.
• Logistics & fulfillment: Integrated logistics partnerships (regional warehouses + third-party fulfillment) aim to deliver within 24-72 hours in core markets; reverse logistics and customer service are centralized to preserve repurchase rates.

• Primary revenue streams:
  • Direct product margins on private-label goods (gross margin target range 25-40%).
  • Commission and promotional fees from partner brands on platform-driven events.
  • Value-added services: bundled logistics fees, shelf-placement or advertising within livestreams.
• Typical unit economics per order (illustrative):
  • Gross revenue per order: RMB 89
  • COGS (procurement + packaging): RMB 54
  • Fulfillment & logistics: RMB 8-12
  • Marketing & platform fees (incl. influencer share): RMB 7-12
  • Contribution margin: ~RMB 5-18 per order depending on SKU and promotion.

• Traffic acquisition: Douyin algorithmic recommendations, paid platform placements, cross-promotion between channels and influencer networks.
• Promotions & pricing: Time-limited discounts, bundle deals, voucher stacking to lift conversion during livestream events.
• Trust & quality: Private-label guarantees, origin storytelling (especially for agricultural goods), and rapid refund policies to lower purchase friction.
• Retention: Membership tiers, loyalty coupons, targeted re-engagement via short video content and scheduled anchor follow-ups.

• Supplier relationships: Long-term sourcing contracts with farms and manufacturers, seasonal procurement planning for agricultural SKUs.
• Inventory strategy: Regional buffer stocks for fast-moving SKUs and JIT restocking for low-velocity items to minimize working capital.
• Logistics partners: Mix of self-operated warehouses and third-party logistics to maintain 24-72 hour delivery in tier-1/2 cities.
• Quality control: Batch testing, traceability codes, and on-site supplier audits to reduce return rates and reputational risk.

• Platform-first marketing: Deep integration with Douyin and influencer ecosystems to unlock organic algorithmic reach and reduce pure paid CAC.
• Private-label control: Higher gross margin potential and SKU differentiation versus pure marketplace resellers.
• Data-driven assortment: Fast feedback loops from live sessions allow rapid SKU rationalization and trend capture.
• Operational scalability: Replicable channel playbook-anchor recruitment, SKU funnels, logistics templates-enables roll-out to additional product verticals or geographies.

Koolearn Technology Holding Limited (1797.HK): How It Works

• Primary revenue source: sale of private-label products via livestream sessions.
• Supplementary revenue: advertising and sponsorship slots within livestreams, platform commissions from third-party sellers, and logistics/fulfillment fees for marketplace partners.
• Customer retention strategy: repeat-purchase programs, membership/subscription bundles, and in-stream promotions targeted by CRM data.

• Leveraging short-form video + livestream formats to convert viewers into buyers-typical conversion rates in top sessions range from 2%-8% depending on category.
• Strategic collaborations with major social platforms to amplify reach; platform partnerships often increase session viewership by 40%-120% versus organic channels.
• Product mix focuses on agricultural produce, fresh food and daily necessities to drive frequent purchase cycles (weekly/monthly).

• Direct-to-consumer structure eliminates traditional retail margins; gross margins on private-label lines typically run between 30%-45% after cost of goods sold (COGS).
• Customer acquisition cost (CAC) varies by campaign; livestream-driven CACs are typically 20%-50% lower than paid-search acquisition for comparable product categories due to high engagement rates.
• Repeat purchase rate is a key lever-Koolearn's livestream consumers show repeat rates of ~35%-50% within 90 days for daily-need categories.

• Expand private-label SKUs in high-frequency categories (fresh produce, staples, household supplies) to increase basket size and margins.
• Scale influencer partnerships and in-house hosts to increase session frequency; top hosts can generate 3x session GMV versus average hosts.
• Enhance CRM personalization to lift conversion and repeat rates-estimated uplift of 10%-20% in revenue per user with improved targeting.
• Optimize logistics and cold-chain for perishables to reduce spoilage and returns, lowering fulfillment cost per order by an estimated 8%-12%.

• Platform integrations: exclusive livestream distribution windows on major social apps, increasing peak-viewer counts and incremental sales.
• Supplier sourcing: long-term contracts with regional farms and manufacturers to secure lower COGS and stable supply for private-label lines.
• Cross-promotion: bundled offers with educational content and membership perks to monetize an existing Koolearn user base and drive omnichannel stickiness.

Koolearn Technology Holding Limited (1797.HK): How It Makes Money

• Live commerce and marketplace fees: commissions and transaction fees from third-party merchants and livestream hosts.
• Private-label product sales: higher-margin inventory sold directly through platform channels and livestream events.
• Advertising & marketing services: promoted listings, in-stream ads and brand partnerships during high-traffic livestreams.
• Value-added services: logistics, fulfilment, data analytics and seller tools billed to merchants.
• Content & creator ecosystem: revenue sharing with influencers, subscription-style paid content and interactive paid features.

• As of late 2025, Koolearn holds a significant position in China's livestreaming e-commerce market with a market cap of approximately HK$13.59 billion.
• The company's pivot from online education to e-commerce allowed rapid market share capture, especially via private-label products sold on its platform and through hosted livestreams.
• Analysts assign a 12-month average target of HK$10.20 per share, reflecting expected growth despite near-term volatility.
• Strategic priorities include expanding product categories, investing in AI-driven recommendations and livestream tooling, improving supply-chain efficiency, and exploring selective international expansion to diversify revenue.
• Commitment to innovation and customer satisfaction aims to strengthen positioning and drive sustainable margin expansion as the broader online shopping trend in China continues to mature.