(Yicai Global) April 13 -- East Buy Holding, an online business arm of New Oriental Education & Technology Group which is transforming into an e-commerce company amid China's stricter private education regulation, intends to gift HKD883 million (USD112.5 million) of shares to its employees.

East Buy, previously known as Koolearn Technology Holding, will give almost 30.5 million shares to 154 employees, the Beijing-based company that used to offer online tutoring to kids said in a statement recently. That equals nearly 10 percent of its headcount of 1,670 employees. Based on the closing price of HKD29 (USD3.70) on April 11, the total value of the giveaway is around HKD883 million.

Chinese private education companies are seeking growth by changing their business models after regulators banned for-profit tutoring in 2021 to ease kids' burdens.

This may not be the last time East Buy incentivizes staff with equity as the sum of 30.5 million shares is only 30 percent of the previous plan for this year.

Chief Executive Sun Dongxu is the biggest winner of the scheme as he will get three million shares. Founder Yu Minhong will have 1.5 million additional shares and Chief Financial Officer Yin Qiang will receive 600,000 units. However, the winners will need to meet certain performance requirements to obtain the full number of shares over the course of three years.

The company has managed to turn losses into profits in the first half of the fiscal year of 2023 after starting to sell goods via live-streaming shows. From June to November 2022, East Buy recorded a net profit of CNY585 million (USD85.1 million) compared to a net loss of CNY544 million a year ago, according to its earnings report. Revenue almost quadrupled to CNY2.1 billion (USD300 million).

East Buy's stock price [HKG: 1797] climbed 1.7 percent to HKD29.65 as of 3.12 p.m.

Editor: Emmi Laine, Xiao Yi