(Yicai Global) March 21 -- Shares in Chinese early learning provider RYB Education have plummeted after the firm announced it lot USD1.8 billion last year.

Beijing-based RYB's share price [NYSE:RYB] closed down 2.94 percent at USD7.92 yesterday, Eastern Time, following publication of its financial report for 2018.

The firm's revenue came in at USD156.5 million, up from USD140.8 million the year prior, according to the report. But profit tumbled from 2017's USD7.1 million after RYB's cost of sales leapt almost a fifth to USD130.9 million, with major expenses coming from higher wages, increased rent and materials for kindergarten expansions.

RYB was hit by scandal in 2017 when one of the teachers at a kindergarten in Beijing was caught abusing her students, and has been aiming to get its reputation back on track ever since.

"With a multitude of policies related to the kindergarten and private education industry released in 2018, we supported such policies and took decisive steps, at times proactively, to adjust our kindergarten operations according to those requirements to achieve greater social benefits," said Chief Executive Shi Yanlai.

Editor: James Boynton