Founder Zhang Xiaolong Steps Down, Leaving FENBI with Its AI Story Half-Told

FENBI officially announces the end of the "Zhang Xiaolong Era."

On July 8, FENBI announced on the Hong Kong Stock Exchange that Zhang Xiaolong has resigned as Executive Director, CEO, and Chairman of the Board due to personal matters. He will not hold any position within the group after his resignation, and his former responsibilities will be handed over to Vice President Sheng Haiyan.

Sheng Haiyan is an early executive at FENBI and is currently responsible for the overall management of the group's book distribution and sales.

Zhang Xiaolong bore the strong imprint of a founder in FENBI's development.

Since FENBI's business began developing independently around 2015, he has long played a core role, responsible for the group's overall strategic planning, business development and operations, as well as overall technology and course development.

However, before Zhang Xiaolong's resignation, there had already been a round of adjustments in FENBI's management and corporate governance.

In April this year, FENBI co-founder Wei Liang resigned as an Executive Director and member of the Board's Remuneration Committee and Nomination Committee. After his resignation, he continued to serve as President of the company, responsible for training business and technical affairs.

In May, Li Yong, co-founder and CEO of Yuanfudao and former Non-Executive Director of FENBI, terminated the acting-in-concert arrangement with Zhang Xiaolong and Wei Liang, meaning he was no longer obligated to act in accordance with Zhang Xiaolong's instructions.

In June, Zhang Xiaolong publicly apologized for inappropriate remarks made during a lecture at Renmin University of China, causing FENBI to become embroiled in public controversy.

These changes combined mean that the founder's departure is not an isolated event. For FENBI, this represents both a redistribution of management responsibilities and a transition from strong founder influence to professionalized operations.

In recent years, despite the sustained popularity of civil service exams and other recruitment-related examinations, FENBI's performance has failed to grow in tandem.

In 2025, FENBI generated revenue of RMB 2.677 billion, a year-on-year decrease of 4.1%; adjusted net profit was RMB 281 million, lower than the RMB 363 million recorded in 2024. The company's average monthly active users were approximately 9.12 million, basically flat compared to 9.14 million in 2024.

In its annual report, FENBI explained that the decline in core business training services was mainly affected by low-price competition from small institutions in the recruitment exam training industry.

In 2025, FENBI launched an AI practice question system class, priced at RMB 399. Based on FENBI's self-developed vertical large language model, the course provides students with learning diagnostics, review planning, and learning path adjustments, adopting a dual-teacher model of "famous teachers + AI digital humans."

According to the company's plan, it will continue to deepen its "AI + Education" strategy in 2026, increase investment in AI vertical models, technology R&D, and the commercialization of AI products, and expand the already operational AI education framework to a broader range of recruitment exam categories.

The logic behind AI is to standardize and scale processes such as practice questions, diagnostics, and explanations, thereby reducing reliance on famous teachers and lowering marginal costs.

However, current AI course pricing is significantly lower than that of traditional large-class courses. While this has boosted sales volume, it has lowered the average selling price, offsetting part of the revenue growth.

In the short term, it appears more like a tool for user acquisition and stabilizing scale; it still needs to prove it can upgrade to a product matrix with sustainable repurchases and high profit margins.

With Zhang Xiaolong's departure, FENBI urgently needs to answer: Can the strategy remain sustainable? Can it maintain brand premium amidst low-price competition? Can AI truly become a new growth engine? Sheng Haiyan takes over a FENBI that must re-prove its growth capabilities.