Chaoyang District, Beijing (November 2025) – Etu Zhizhi School, a renowned international school in Beijing’s affluent Chaoyang District, is grappling with a severe financial crisis, sparking widespread online concern. The situation came to light on November 11 when co-founder Li Yinuo issued a detailed public statement explaining the turmoil.
Cash Flow Collapse and Unpaid Salaries
Since October 2025, the school’s bank accounts have been nearly depleted, leaving it unable to fully compensate teachers and staff or settle debts with suppliers. Co-founder Huazhang reportedly used personal credit to cover half of October’s salaries, but funds for November’s payroll remain uncertain.
Alleged Misuse of Funds by Partner Organization
Li pinned the crisis on Zhizhi School, a partner organization, accusing it of leveraging Etu Zhizhi’s cash flow as collateral to secure over 50 million yuan (approximately $7 million) in loans from major financial institutions, including Industrial Bank, Haier Financial Leasing, and Bank of Beijing. According to Li, most of these funds were diverted to affiliated companies or used to pay “break-up fees” from a previous collaboration, rather than benefiting Etu Zhizhi. This, she claims, left the school burdened with insurmountable debt—while Huazhang, as the legal representative, now faces unlimited joint liability.
Operations Continue Amid Shareholder Dispute
Despite the financial strain, Etu Zhizhi—which runs campuses in Beijing and Guangzhou with nearly 700 students—assured parents on November 13 that classes remain uninterrupted. School staff described the issue as an “internal shareholder dispute” unrelated to daily operations, confirming efforts to address delayed salaries.
For parents considering withdrawing their children, the school outlined its refund policy:
- Withdrawal within two months: 60% refund
- Withdrawal after two months: No refund for the current semester, but full reimbursement for next semester’s fees
Co-Founder’s Reflection and Legal Action
In her candid statement, Li acknowledged:
“Ultimately, this stems from our poor management. We are pursuing legal action to recover the misappropriated funds. Protecting the children’s right to education is our bottom line—everything else is negotiable. We hope the shareholder dispute can be resolved without disrupting teaching or school operations.”
About Etu Zhizhi School
Founded in 2016 as an education innovation initiative with roots in Silicon Valley, Etu Education established its Beijing campus in the upscale Central Villa District of Chaoyang, spanning over 20,000 square meters. The school offers a 12-year program (elementary to high school) blending China’s national curriculum with international elements.
Li Yinuo, a high-profile figure in education and philanthropy, previously served as a global partner at McKinsey, head of the Gates Foundation China office, and founder of the influential public account “Slave Society.”She holds a PhD in molecular biology from Tsinghua University and UCLA.
