02opida
3 years ago
BEIJING, Nov. 15, 2021 /PRNewswire/ -- Gaotu Techedu Inc. ("Gaotu" or the "Company") (NYSE: GOTU), a leading online large-class tutoring service provider in China, today provided business updates following the recent regulatory developments relating to after-school tutoring services, including the "Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for 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 the related implementation rules, regulations and measures promulgated by competent authorities (collectively, the "New Regulations").
In compliance with the New Regulations, the Company will cease offering tutoring services related to academic subjects to students from kindergarten through grade nine (the "K-9 Academic AST Services") by the end of 2021 (the "Cessation"). The Company expects that the Cessation will have a substantial adverse impact on the Company's revenues for the fiscal year ending December 31, 2021 and the subsequent periods.
The Company will continue to consider appropriate strategic opportunities that can effectively leverage the resources and knowhow accumulated through its past K-9 Academic AST Services, and will provide updates as appropriate. The Company will also continue to operate its business outside of the K-9 Academic AST Services and shift its focus towards developing course offerings and services for professional education, explore possibilities in digital products and vocational education, and continue to provide quality learning experience for its students.