Wah Fu Education Group Ltd (NASDAQ: WAFU)

Wah Fu Education Group Limited is a provider of online exam preparation services and related technology solutions in China. The company has been operating for over 20 years, developing and operating online education platforms, producing training course materials, and offering technology research and development services to educational institutions and students. It designs proprietary platforms that support self study examination, continuing education, vocational training, and paperless examination functions, and it creates thousands of online classes for use by its customers. Its services are delivered via cloud based platforms accessible online and through mobile applications.

Revenue is generated primarily from fees charged to students for online courses offered through its B2C platform. In the B2C model, students pay between RMB10 and RMB180 per class depending on the course type and difficulty. For its B2B2C business, the company provides online education platforms to universities and academic institutions at no charge, while students using those platforms are charged fees ranging from RMB10 to RMB120 per class. The company also earns technology service fees from clients for platform development, maintenance, and consulting, calculated as development costs plus a 30% profit margin. Additionally, a small portion of revenue comes from service fees paid by its variable interest entity Beijing Digital Information, which represented about 5.0% of consolidated revenue in the fiscal year ended March 31, 2025. During the year ended March 31, 2025, the company delivered approximately 3,199,572 courses to students on its platforms and provided about 340,000 courses through its B2C offerings. Its platforms host over 12,936 courses, including self developed and authorized third party courses, and are used by more than 200 universities across China.

In the B2B2C market for self study online training, Wah Fu Education Group Limited considers itself a leading provider, citing advantages in geographic coverage, partner school count, course library, and operating experience over rivals such as Beijing Shangde Online Education Technology Co., Ltd., Suzhou Qingying Feifan Software Technology Co., Ltd., Beijing Aopeng Long Distance Education Center Co., Ltd., and Hongcheng Technology Development Co., Ltd. For its B2C exam preparation business, the company competes mainly with Beijing Shangde Online Education Technology Co., Ltd. and Beijing Dongda Zhengbao Technology Co., Ltd., leveraging its long operating history, brand recognition, and the breadth and depth of its course offerings. In the technology services segment, it faces competition from Shenzhen Youxuepai World Education Development Co., Ltd., Teewon Digital Media Technology Co., Ltd., Founder Tech Co., Ltd., and Hanwon Technology Co., Ltd., but benefits from established client relationships, an experienced technical team, and a long history of serving government and private sector clients.

The company serves universities and academic institutions across fourteen provinces, with notable B2B2C clients such as the College of Hubei University, Huaihua University, Hunan Normal University, and Jimei University. Its B2C offerings reach students nationwide, supporting learners preparing for various national examinations and professional qualifications. For technology services, the customer base includes government agencies, private publishers, and other enterprises seeking custom online education platforms and related technical support. Overall, the company reports that more than 200 universities utilize its B2B2C platforms and that its course catalogue exceeds 12,900 offerings.