丽翔教育美股招股说明书(2023-10-02版)

424B31ea186141-424b3_lixiangeduc.htmPROSPECTUS FiledPursuanttoRule424(b)(3)RegistrationNo.333-274209 AmericanDepositarySharesLixiangEducationHoldingCo.,Ltd. Representing50,000,000ordinaryshares Thisprospectusrelatestotheresale,fromtimetotime,ofupto50,000,000ordinarysharesintheformofAmericandepositaryshares(“ADSs”)ofLixiangEducationHoldingCo.,Ltd.,bycertainindividualinvestors(collectively,the“SellingShareholders”).See“SellingShareholders”beginningonpage33.EachADSrepresents5ordinaryshares,US$0.0001parvaluepershare.TheADSstowhichthisprospectusrelatesrepresentordinarysharesthatwillbeissuedtotheSellingShareholderspursuantto,andsubjecttothetermsandconditionsof,thesharesubscriptionagreements,datedasofAugust25,2023,byusandeachoftheSellingShareholders. WearenotsellinganysecuritiesunderthisprospectusandwillnotreceiveanyoftheproceedsfromthesaleofADSsbytheSellingShareholders. WewillpaytheexpensesincurredinregisteringtheADSstowhichthisprospectusrelates,includinglegalandaccountingfees.See“PlanofDistribution.” OurADSsarelistedonTheNasdaqGlobalMarketunderthesymbol“LXEH.”OnSeptember28,2023,thelastsalepriceofourADSsreportedonTheNasdaqGlobalMarketwasUS$0.2400. Wearean“emerginggrowthcompany”asdefinedinSection2(a)oftheSecuritiesAct,andwillbesubjecttoreducedpubliccompanyreportingrequirements. Unlessotherwiseindicatedorthecontextotherwiserequires,referencesinthisprospectusto“Lixiang,”“we,”“us,”“theCompany,”“ourcompany”and“our”refertoLixiangEducationHoldingCo.,Ltd.,theCaymanIslandsholdingcompanyanditssubsidiaries,and“VariableInterestEntities”or“VIEs”refertoLishuiMengxiang,QingtianInternationalSchool,BeijingXinxiang,BeijingP.X.,LangfangSchool,HainanJiangcaiandChuangmeiWeiye,theentities(eachasdefinedbelow)basedinmainlandChinaofwhichwehavepowertocontrolthemanagement,andfinancialandoperatingpoliciesandhavetherighttorecognizeandreceivesubstantiallyalltheeconomicbenefitsandinwhichwehaveanexclusiveoptiontopurchaseallorpartoftheequityinterestsandalloraportionoftheassetsattheminimumpricepossibletotheextentpermittedbythelawsofthePeople’sRepublicofChina(“PRC”). LixiangisnotaChineseoperatingcompany,butaCaymanIslandsholdingcompanywithoperationsmainlyconductedbyitssubsidiariesandtheVIEsbasedinmainlandChina.ThisstructureinvolvesuniqueriskstoinvestorsastheyarepurchasingequitysecuritiesinLixiang,theCaymanIslandsholdingcompany,andarenotpurchasing,andmayneverdirectlyhold,equityinterestsintheVIEs.PRClaws,regulations,andrulesrestrictandimposeconditionsondirectforeigninvestmentincertaintypesofbusiness,includingeducationattheprimary,middleschoolandhighschoollevels,andoperationofvocationalschools.Inresponsetotheserestrictions,LixiangoperatesthesebusinessesinChinathroughtheVIEstructurewhichprovidesinvestorswithexposuretoforeigninvestmentintheChineseoperatingcompanieswhereChineselawprohibitsusfromdirectforeigninvestmentintheoperatingcompanies.TherearesubstantialuncertaintiesregardingtheinterpretationandapplicationofcurrentandfuturePRClaws,regulations,andrulesrelatingtothecontractualarrangementsandtheVIEstructure.AlthoughthecontractualarrangementsandtheVIEstructurehavebeenwidelyadoptedbyPRCcompanieslistedoverseas,sucharrangements havenotbeentestedinanyofthePRCcourts.IfthePRCgovernmentfindsthesecontractualarrangementsortheVIEstructurenon-compliantwiththerestrictionsondirectforeigninvestmentintherelevantindustries,oriftherelevantPRClaws,regulations,andrulesortheinterpretationthereofchangeinthefuture,wecouldbesubjecttoseverepenaltiesorbeforcedtorelinquishourinterestsintheVIEsorforfeitourrightsunderthecontractualarrangements.LixiangandinvestorsintheADSsfaceuncertaintyaboutpotentialfutureactionsbythePRCgovernment,whichcouldaffecttheenforceabilityofourcontractualarrangements,consequently,significantlyaffectthefinancialconditionandresultsofoperations.IfweareunabletoclaimourrighttocontroltheassetsoftheVIEs,theADSsmaydeclineinvalueorbecomeworthless.ThePRCgovernmentcouldevendisallowtheVIEstructurecompletely,whichwouldlikelyresultinamaterialadversechangeinouroperationsandtheADSsmaysignificantlydeclineinvalueorbecomeworthless.Formoredetails,see“Item3.KeyInformation—D.RiskFactors—RisksRelatingtoOurCorporateStructure”inourannualreportonForm20-FfortheyearendedDecember31,2022incorporatedbyreferenceherein. WefacevariouslegalandoperationalrisksanduncertaintiesassociatedwithbeingbasedinandhavingthemajorityofouroperationsinmainlandChinaandthecomplexandevolvingmainlandChinalawsandregulations.Forexample,wefacerisksassociatedwiththefactthatthePRCgovernmenthassignificantauthorityinregulatingouroperationsandmayinfluenceorinterveneinouroperationsatanytime,regulatoryapprovalsonofferingsconductedoverseasby,andforeigninvestmentin,China-basedissuers,anti-monopolyregulatoryactions,andoversightondatasecurity,whichmayimpactourabilitytoconductcertainbusinesses,acceptforeigninvestments,orlistonaUnitedStatesexchange.OnDecember16,2021,thePublicCompanyAccountingOversightBoard(the“PCAOB”)issueditsreportnotifyingtheSecuritiesandExchangeCommission(the“SEC”)ofitsdeterminationthatitwasunabletoins