TCTM Kids IT Education Divests Subsidiaries to Focus on AI Healthcare

An announcement from TCTM Kids IT Education ( (VSA) ) is now available.

On July 22, 2025, TCTM Kids IT Education Inc. announced a strategic divestment of its subsidiaries, Kids IT Education Inc. and Tarena Hong Kong Limited, to First Winner Management Limited for a nominal cash consideration. This decision was driven by the subsidiaries’ sustained negative financial performance and aligns with TCTM’s strategic shift towards high-growth sectors like AI-powered healthcare solutions. The divestment is expected to improve TCTM’s financial structure by eliminating underperforming assets, thereby increasing stockholders’ equity significantly. Additionally, TCTM is advancing its brain-computer interface business, having generated revenue from technical service contracts and preparing to launch EEG acquisition devices aimed at medical and research institutions.

Spark’s Take on VSA Stock

According to Spark, TipRanks’ AI Analyst, VSA is a Neutral.

The overall score is primarily impacted by the company’s poor financial performance, particularly its declining revenues, persistent losses, and negative cash flows. Despite strong technical momentum, the company’s valuation is unattractive due to its negative P/E ratio and lack of dividend yield. These factors significantly weigh down the overall attractiveness of the stock.

To see Spark’s full report on VSA stock, click here.

More about TCTM Kids IT Education

TCTM Kids IT Education Inc. operates in the IT education industry, focusing on providing educational services and products. The company is currently expanding its focus into AI-driven medical software and brain-computer interface technologies, targeting clients such as internet technology firms, AI startups, and medical institutions in Asia.

Average Trading Volume: 207,059

Technical Sentiment Signal: Buy

Current Market Cap: $16.5M

Learn more about VSA stock on TipRanks’ Stock Analysis page.