(Yicai) Sept. 23 -- Shares of Chuanzhiboke Information Technology rose after the Chinese education technology firm said it intends to purchase a controlling stake in a Singaporean peer.

Chuanzhiboke [SHE: 003032] closed 2.3 percent up at CNY8.56 (USD1.21) in Shenzhen today, after gaining as much as 7.4 percent in morning trading.

Chuanzhiboke plans to buy a 51 percent stake in FIS Holdings from the latter's shareholders Li Wei and David Mok Kah Sing for SGD15.3 million (USD11.8 million) through its subsidiary Weixue Education, the Beijing-based parent company announced on Sept. 20.

The acquisition, which aims to enhance Chuanzhiboke's asset quality and profitability and promote its overseas business expansion, will positively impact the company's financial condition and operating results in future years, Chuanzhiboke noted.

Once the acquisition is completed, Weixue Education will become FIS' largest shareholder, followed by Li with 33 percent and HFXR Education with 16 percent, Chuanzhiboke said.

HFXR Education, an overseas unit of Xiamen-based edtech firm Hengfuxueren, bought 16% stake in FIS from Li and Mok Kah Sing earlier this month. Chuanzhiboke owns over 30 percent of Hengfuxueren, which was founded in May this year.

FIS has two subsidiaries, Furen International School and E-Jia Homestay. The former, founded in 2001, is a private school in Singapore providing international Cambridge O-level and A-level courses. The latter, established in February last year, mainly supplies accommodation services to Furen's students.

As of June 30, FIS had liabilities worth CNY92.2 million (USD13.1 million), compared with total assets of CNY111 million (USD15.7 million). In the first half of the year, it reported a net profit of CNY11.7 million and revenue of CNY50.9 million.

Chuanzhiboke was the first Chinese edtech firm to go public in January 2021. It mainly offers online courses and employment-oriented occupational education training.

Chuanzhiboke turned a net profit into a net loss of CNY34.2 million in the first half from a year earlier, with revenue plunging 65 percent to CNY111 million.

Editor: Futura Costaglione