Chinese tutoring companies take big financial hit amid crackdown

Three U.S.-listed Chinese education companies reported heavy losses after Beijing banned for-profit tutoring for most school-age children, showing the large financial toll of the crackdown on the industry last summer.

New Oriental Education & Technology Group Inc., one of the country’s largest private-education businesses, on Tuesday reported an $876 million loss for the six months to Nov. 30, compared with a net profit of about $229 million in its fiscal first half a year ago.

The 28-year-old company incurred sharply higher operating costs and expenses, due to employee layoffs and lease terminations at learning centers that it closed.

A day earlier, TAL Education Group said it lost $99 million in the three months to Nov. 30, pushing its net loss in the first nine months of its financial year to $1.03 billion. That compared with the company’s nine-month profit of $53 million a year earlier.

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