Summary of Key Points
Chuanzhi Education was originally an IT training institution that faced the risk of delisting in 2025 due to declining performance. One of its founders, Li Huoming, led the company through a complete transformation towards AI training by introducing AI-related courses and sub-brands. In 2026, the company turned losses into profits and was removed from the *ST (delisted) status, with its stock price rising for six consecutive days. However, it still faces challenges such as "gained growth through acquisitions" (in the field of academic education), high costs for AI instructors, and short-term training programs that have not yet reached their peak performance. The rise in the stock price may also be influenced by market sentiment.
I. From the Brink of Delisting to Six Consecutive Daily Limits: How Did the AI Transformation Save the Company?
Chuanzhi Education’s critical moment came between 2024 and 2025: the boom in IT training had passed, and there was little demand for traditional Java and front-end courses, leading to increasing customer acquisition costs and consecutive losses, which resulted in it being labeled as *ST (one more year of loss would have led to delisting). Li Huoming bet on AI correctly—by 2026, the company launched new courses such as "AI Intelligent Application Development" and "Large Model Development," and created two sub-brands: "Chuanzhi AI" for teaching AI applications (e.g., using AI in design and manga creation), and "Black Horse Programmer" for teaching AI development (e.g., writing code for large models).
The transformation was immediate: revenue increased by 43% in the first quarter of 2026, and the company no longer suffered losses that quarter. The semi-annual report forecasted net profits to be 4-6 times higher than the previous year, and in June, the company was successfully removed from the *ST status. The stock price began to rise in mid-July and hit six consecutive daily limits by August 3rd—capital markets love stories of companies making a miraculous turnaround.
II. Li Huoming: The Young Man from Guangdong Who Rejected Three Job Offers Before Taking Charge
Li Huoming was the savior for Chuanzhi Education. In 2006, Zhang Xiaoxiang, the founder of Chuanzhi, noticed his programming e-books and invited him to teach three times, but Li Huoming declined each time due to the non-standard Cantonese language used in the company and the perceived small size of the business. It wasn’t until 2009, when Zhang Xiaoxiang increased his stake to 20% and mentioned that the company’s cash flow was growing faster than Li Huoming’s entrepreneurial efforts, that Li Huoming agreed to join.
When Zhang Xiaoxiang passed away suddenly in 2011, Chuanzhi did not collapse because students came there to learn skills, not to see a famous entrepreneur; the quality of education remained high. During the golden decade of IT training, Li Huoming used private marketing channels (self-media and textbooks for universities) and spent hundreds of thousands on advertising, comparable to the millions invested by competitors like Tarena. Once again, it was Li Huoming who made the right decision in the direction of AI transformation.
III. Why Has AI Training Become So Popular? The Logic Behind Its Success
Chuanzhi’s turnaround is essentially due to tapping into the shortage of AI talent:
1. Clear Demand: The Ministry of Industry and Information Technology reports a shortage of 5 million AI professionals in China, with companies competing for skilled AI programmers. Chuanzhi’s AI training provides tools needed by these companies, ensuring stable demand.
2. Scarcity: Chuanzhi is the only pure IT training company listed on the A-share market, making it an attractive target for investors seeking similar opportunities.
3. Market Sentiment: AI is currently a hot sector, and any company associated with it can see its stock price rise; Chuanzhi’s timely shift to AI coincided with this trend.
IV. Hidden Concerns Behind the Bright Success: How Far Can Chuanzhi Go?
Despite the rising stock price, Chuanzhi has several issues:
1. Gained Growth in Academic Education: The 646% increase in academic education revenue in 2025 came from the acquisition of a 51% stake in the Singaporean Fu Ren School, not from internal efforts.
2. Short-Term Training Not at Peak: Current short-term training revenue (54% of total income) is lower than its peak in 2022, indicating that the long-term appeal of AI courses needs to be proven.
3. High Costs for AI Instructors: The average monthly salary for AI instructors is 60,000 yuan, and for large model engineers, it’s 70,000 yuan, while traditional IT instructors earn only 300,000-500,000 yuan per year. Chuanzhi must hire experts, which significantly increases labor costs.
4. Stock Price Volatility: AI-related stocks are volatile, and Chuanzhi’s rise may reflect both the success of its transformation and market speculation. The future depends on whether students truly learn AI skills and whether companies are willing to pay them high salaries.
Conclusion
Chuanzhi Education’s story of turnaround is inspiring, but it has not yet entered a period of sustained growth. While the AI transformation was a lifesaver, the company still needs to address issues related to internal growth, cost control, and teaching quality. After all, the capital market ultimately values real performance, not temporary trends.