This article only represents the author's own views.
Online tutoring services provider Youdao Inc. (DAO.US) is offering a real-life lesson on the virtues of diversification, as many of its peers fall victim to China’s crackdown on extracurricular education for young students.
Net revenue at the company, a unit of online gaming giant NetEase, more than doubled to 1.3 billion yuan ($200 million) in the second quarter of 2021 from a year earlier, according to its latest results released last week. Gross profit surged by an even larger 140% during the latest reporting period, as its gross margin improved to 52.3% from 45.2% a year earlier.
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