Kids gym brand sees zero earnings in H1
COLDSKY.CN – The cash-strapped QD Fun Game Club (趣动旅程) announced cooperation with Black Butterfly and Financial Consultant(黑蝶资本) for a team and business restructuring to tide over the difficulties caused by the COVDI-19 outbreak.
The Beijing-based club, established in 2015, said it runs 50 chain gyms for those aged 2.5 to 12 across the country, offering training to improve skills of balance, movement, and coordination. More than 100,000 families had participated in the train courses totalling for 400,000 hours.
The start-up raised 120 million yuan in 2017 and boasted an “original physical training plan for kids” that combines exercise and recreation. in 2018, the company suffered a blow to its reputation when a coach in Beijing was caught for “act of indecency” towards two girl students.
In this March, it projected zero earnings in the first half of the year due to the pandemic and said some executives and staff members quitted from the company.
“The profit margin in sports education is not big, and the governmental support is hardly helpful, so the company is facing a very difficult time,” said the statement.
Data from itjuzi.com showed Black Butterfly and Financial Consultant made four investment since 2016, three in sports ventures and one in event venue rental service LocationHunter.