17 Education & Technology Group Inc. Provides Update on Regulatory Development
August 25 2021 - 8:30AM
17 Education & Technology Group Inc. (Nasdaq: YQ) (“17EdTech”
or the “Company”), a leading education technology company in China
with an “in-school + after-school” integrated model, announced that
the Shanghai local government issued the “Measures to Further
Alleviate the Burden of Homework and After-School Tutoring on
Students in Compulsory Education” and answers to twelve questions
related to such measures (collectively, the “Shanghai Measures”) on
August 24, 2021. The Shanghai Measures were adopted to implement
the Opinions on Further Alleviating the Burden of Homework and
After-School Tutoring on Students in Compulsory Education,
published in July 2021 by the General Office of the CPC Central
Committee and the General Office of the State Council of the PRC,
and aim to, within one year, “(i) effectively control the volume
of, and the amount of time it takes to complete, homework assigned
to students during the compulsory education stage, (ii) ensure all
compulsory education schools provide on-campus, after-school
services, (iii) complete the rectification of business practices of
online and offline providers of after-school tutoring services on
academic subjects in China’s compulsory education system (“Academic
AST”), (iv) effectively reduce the excessive burden upon students
from school homework and after-school tutoring, the education
expenditures from their families and the burden on their parents’
energy.”
With respect to homework assignment and after-school tutoring
services, among other things, the Shanghai Measures contain the
following provisions:
- Schools are prohibited from assigning homework to first- and
second-graders, assigning written homework that takes longer than
60 minutes on average to complete to third-, fourth- or
fifth-graders, or assigning written homework that takes longer than
90 minutes on average to complete to students in junior
high-school.
- Previously registered online Academic AST providers will be
subject to a new round of approval process.
- After-school tutoring providers are strictly prohibited from
providing Academic AST during any national holiday, weekend, winter
and summer break period; Online Academic AST classes cannot be
offered after 9:00 p.m. during weekdays, and each class session
cannot last longer than 30 minutes, with mandatory recessions of
not less than 10 minutes between classes.
- Academic AST providers are prohibited from (i) offering classes
over contents 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 from overseas. Non-Academic AST providers are
prohibited from offering Academic AST classes.
- Prices for Academic AST will need to follow the guidelines from
the government.
- Academic AST providers are prohibited from financing by way of
publicly listing its securities; listed companies may not invest in
Academic AST providers through capital markets fundraising
activities, and may not acquire assets of Academic AST providers;
and foreign capital is prohibited from controlling or participating
in Academic AST providers.
- Enhancing oversight of AST advertising, including restricting
the channels for deploying AST advertisements.
- Institutions providing after-school tutoring services on
academic subjects in high schools (which do not fall within China's
compulsory education system) will be supervised with reference to
the Shanghai Measures.
- Academic AST providers are strictly prohibited from
recommending or inducing students to use consumer loan products to
pay training fees.
The Company’s compliance with the Shanghai Measures will have a
material adverse impact on its business, results of operations and
financial condition. In compliance with the Shanghai Measures, the
Company has stopped and will stop offering online Academic AST
classes over weekends, national holidays and school break
periods.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the
United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as “will,” “expects,” “anticipates,” “future,” “intends,”
“plans,” “believes,” “estimates” and similar statements. Statements
that are not historical facts, including statements about
17EdTech’s beliefs and expectations, are forward-looking
statements. 17EdTech may also make written or oral forward-looking
statements in its periodic reports to the SEC, in its annual report
to shareholders, in press releases and other written materials and
in oral statements made by its officers, directors or employees to
third parties. Forward-looking statements involve inherent risks
and uncertainties. A number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement, including but not limited to the following: 17EdTech’s
growth strategies; its future business development, financial
condition and results of operations; its ability to continue to
attract and retain users, convert non-paying users into paying
users and increase the spending of paying users, the trends in,
size of, and relevant government policies and regulations relating
to China’s online education market; its expectations regarding
demand for, and market acceptance of, its products and services;
its expectations regarding its relationships with business
partners; general economic and business conditions; and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks is included in 17EdTech’s filings
with the SEC. All information provided in this press release is as
of the date of this press release, and 17EdTech does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law.
About 17 Education & Technology Group
Inc.
17 Education & Technology Group Inc. is a leading education
technology company in China with an “in-school + after-school”
integrated model. The Company provides a smart in-school classroom
solution that delivers data-driven teaching, learning and
assessment products to teachers, students and parents, covering
over 70,000 K-12 schools in 2020.
Leveraging the Company’s in-school leadership, 17EdTech offers
online K-12 large-class after-school tutoring services that
complement students’ in-school learning. Powered by its integrated
model and technology, 17EdTech’s online K-12 large-class
after-school tutoring courses stand out in terms of its unique
approach to personalization, realized through a data-driven
understanding of individual students’ in-school performance, as
well as district-level localized insights.
For investor and media inquiries, please
contact:
17 Education & Technology Group Inc.Mr.
Raymond HuangE-mail: ir@17zuoye.com
ChristensenIn ChinaMr. Eric YuanPhone:
+86-138-0111-0739E-mail: Eyuan@christensenir.com
In USMs. Linda BergkampPhone: +1-480-614-3004E-mail:
lbergkamp@christensenir.com
17 Education and Technol... (NASDAQ:YQ)
Historical Stock Chart
From Jun 2024 to Jul 2024
17 Education and Technol... (NASDAQ:YQ)
Historical Stock Chart
From Jul 2023 to Jul 2024