Chinese Tech Demystified: Episode 3 Premieres This Week

Hello, Jags!

Hope everybody’s enjoying the weekend.

The third episode of “Chinese Tech Demystified” will be released sometime this week, along with a full research note.

In this episode, we will be covering Youdao, an education spinoff from NetEase. The following topics will be in focus:

• Breaking down Youdao’s current offerings.
• Some cool projects that are in the company’s pipeline.
• Why Youdao’s most popular offering is not the biggest growth driver, and the company’s actual main growth drivers.
• Are Youdao’s growing losses a concern? Plus the company’s incomplete financial reporting.
• Why Chinese internet companies tend to rely significantly less on advertising revenue vs their American counterparts.
• China’s “Two-teachers” system.
• Overview of China’s private education market, and where the fastest growth is coming from.
• Thoughts on competition from TAL, COE Group, New Oriental, etc.
• The two roadblocks Youdao will need to overcome.
• Our final verdict on the stock.

See you there!