HANGZHOU, China, Aug. 19, 2021 /PRNewswire/ -- Youdao, Inc.
("Youdao" or the "Company") (NYSE: DAO), a leading intelligent
learning company in China, noted
that the Beijing Municipality Government and the Beijing
Municipal Committee of the Communist Party of China jointly
issued the Beijing Municipality's Measures to Further Reduce the
Burden of Homework and After-School Tutoring on Students in
Compulsory Education in Beijing (the "Beijing AST Measures")
to implement the requirements set forth in the Opinions on Further
Alleviating the Burden of Homework and After-School Tutoring for
Students in Compulsory Education, published in July by the PRC
central government (the "Central Government Opinions"). Pursuant to
the Beijing AST Measures:
- No new provider of after-school tutoring services on academic
subjects in China's compulsory
education system ("Academic AST") will be approved, while existing
Academic AST providers shall be subject to review and
re-registration aimed at reducing their numbers by phases. The
remaining Academic AST providers shall all be re-registered as
non-profit organizations. The registrations and ICP licenses of
disqualified online Academic AST providers will be rescinded.
- AST providers are strictly prohibited from providing Academic
AST during any national holiday, weekend, winter and summer break
period, subject to further restrictions over when Academic AST can
be offered to students during weekdays.
- Academic AST providers are prohibited from (i) offering classes
over content outside of or in advance of the school curriculum,
(ii) offering classes based on any foreign curriculum, (iii)
soliciting and recruiting school teachers by offering excessive
compensation, or (iv) employing foreign personnel to carry out
training activities. Non-Academic AST providers are prohibited from
offering any Academic AST classes.
- Tuition fees for Academic AST shall follow the guidelines from
the government to prevent any excessive charging or excessive
profit-seeking activities.
- Academic AST providers are prohibited
from financing its operations by way of listing its securities on
stock exchanges or other capital market activities. Listed
companies may not invest in Academic AST providers through capital
market fundraising activities, or acquire assets of Academic AST
providers by paying cash or issuing securities. Foreign investment
will be prohibited in Academic AST providers through merger and
acquisitions, variable interest entities or otherwise.
- AST advertising shall be subject to enhanced oversight.
The Company is committed to fully complying with the Beijing AST
Measures and similar measures to be adopted by other local
governments, if any, to implement the requirements of the Central
Government Opinions. In compliance with the Beijing AST Measures,
the Company has stopped offering Academic AST classes over
weekends, national holidays and the current school break period in
Beijing. Such measures are
expected to have material impacts on its existing K-12 course
business. In the first quarter of
this year, the revenues from K-12 Academic AST classes over these time
periods accounted for less than 50% of the
Company's total revenues. As previously disclosed, the
Company will continue to proactively seek guidance from the
government authorities in Beijing
and other relevant provinces and municipalities in connection with
its efforts to comply with the related PRC rules and
regulations.
About Youdao, Inc.
Youdao, Inc. (NYSE: DAO) is a leading intelligent learning
company in China dedicated to
developing and using technologies to provide learning content,
applications and solutions to users of all ages. Building on the
popularity of its online knowledge tools such as Youdao Dictionary
and Youdao Translation, Youdao now offers online courses covering a
wide spectrum of age groups, subject matters, learning goals and
areas of interest. In addition, Youdao has developed a variety of
interactive learning apps and smart learning devices. Youdao was
founded in 2006 as part of NetEase, Inc. (NASDAQ: NTES; HKEX:
9999), a leading internet technology company in China. For more information, please visit:
http://ir.youdao.com.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Statements that
are not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may," "will," "expect,"
"anticipate," "target," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to" or other
similar expressions. The Company may also make written or oral
forward-looking statements in its reports filed with, or furnished
to, the U.S. Securities and Exchange Commission, in its annual
reports to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding such risks, uncertainties or factors is
included in the Company's filings with the SEC. All information
provided in this press release is as of the date of this press
release, and the Company does not undertake any duty to update such
information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Jeffrey Wang
Youdao, Inc.
Tel: +86-10-8255-8163 ext. 89980
E-mail: IR@rd.netease.com
The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: youdao@thepiacentegroup.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: youdao@thepiacentegroup.com
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SOURCE Youdao, Inc.