RYB Education reports strong earning in 3rd quarter, but shares decline

RYB Education, a NASDAQ-listed early childhood education service provider in China that has been under fire in China for child abuse allegations at one of its kindergartens in Beijing, reported strong third-quarter results on Thursday, but its share price still declined.

The company, which operates hundreds of kindergartens across China, generated revenue of $37.4 million, up 39 percent year-on-year, the company said. Gross profits was $9 million, up from $4.5 million a year earlier.

Despite the strong performances, RYB’s shares fell in after-hours trading. At 8 pm Wednesday New York time, the shares were down 8.42 percent at $20.33 in after-hour trading.

The company's stock slumped by 8.42 percent to $20.33 during regular trading on Wednesday, after gaining more than 20 percent on Tuesday.

The share price decline came after the latest update from police in Beijing’s Chaoyang district as to their investigation into child abuse allegations at the RYB kindergarten. The police said that a 22-year-old teacher had used needles to "tame" children but no sexual abuse had been found.

However, the nationwide outcry over the scandal continued on Thursday and authorities from the central government and in Beijing announced measures to inspect and prevent such cases across the country.

The State Council, said on Wednesday th inspectors to conduct spection of kindergart News Agency reported

The moves were in RYB scandal and sug company, which had enrolled as of the en would remain under i from the public and au

On Wednesday nig tion released an apolo saying that it "doesn't d doned."

The company may a tion in the US, where firms have announced company on behalf o alleging the company lated US securities law