On December 27, Gelonghui reported that education stocks collectively surged, with Suzhou Kingswood Education Technology rising over 7% leading the way, followed by Dou Shen Education and Offcn Education Technology rising over 3%, and Qtone Education Group(Guangdong) and Xueda(Xiamen)Education Technology Group rising over 2%. According to a recent research report by Everbright Securities, after the "double reduction" policy implementation, many small and medium-sized tutoring institutions are gradually being eliminated from the market because they cannot meet the higher requirements in terms of entry thresholds, operation compliance, and capital control, resulting in a significant clearing in the industry and an optimized competitive landscape that is bullish for leading companies. As of October 2022, the original 124,000 offline academic tutoring institutions for compulsory education have been reduced by 96% to 4,932, and online tutoring institutions have been reduced from 263 to 34. Under the optimized competitive landscape, the operational leverage of leading K12 companies is released, driving a performance recovery, and profitability is expected to continue to improve. (Gelonghui)