BEIJING, July 25, 2021 /PRNewswire/ -- Gaotu Techedu Inc.
("Gaotu" or the "Company") (NYSE: GOTU), a leading online
large-class after-school tutoring service provider in China, announced that, on July 24, 2021, China's official state media, including Xinhua
News Agency and China Central Television, announced the Opinions on
Further Alleviating the Burden of Homework and After-School
Tutoring for Students in Compulsory Education (the "Opinion"),
issued by the General Office of the CPC Central Committee and the
General Office of the State Council. The Opinion contains
high-level policy directives about requirements and restrictions
related to online and offline after-school tutoring services,
including, among others, (i) institutions providing after-school
tutoring services on academic subjects in China's compulsory education system, or
Academic AST Institutions, need to be registered as non-profit;
(ii) changing the current registration-based regime for operating
online Academic AST Institutions to a government approval-based
regime, (iii) foreign ownership in Academic AST Institutions is
prohibited, including through contractual arrangements, and
companies with existing foreign ownership need to rectify the
situation; (iv) listed companies are prohibited from raising
capital to invest in businesses that teach academic subjects in
compulsory education; (v) Academic AST Institutions are prohibited
from providing tutoring services on academic subjects in compulsory
education during public holidays, weekends and school breaks; and
(vi) Academic AST Institutions must follow the fee standards to be
established by relevant authorities. The Opinion also provides that
institutions providing after-school tutoring services on academic
subjects in high schools (which do not fall within China's compulsory education system) shall
take into consideration the Opinion when conducting activities.
The Company will continue to comply with all applicable rules
and regulations in providing educational services, including those
rules and regulations to be adopted following the policy directives
of the Opinion. The Company is carefully considering the provisions
of the Opinion and assessing their implications for the Company's
business. The Company expects the Opinion,
related rules and regulations, and the compliance measures to be
taken by the Company will have material adverse impact on its
after-school tutoring services related to academic subjects in
China's compulsory education
system, which in turn may adversely affect the Company's results of
operations and prospect. The Company will proactively seek guidance
from and cooperate with government authorities in connection with
its efforts to comply with the Opinion and any related rules and
regulations.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
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. 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 these and other risks
is included in the Company's reports filed with, or furnished to
the U.S. Securities and Exchange Commission. All information
provided in this press release and in the attachments is as of the
date of this press release, and Gaotu undertakes no duty to update
such information or any forward-looking statement, except as
required under applicable law.
About Gaotu Techedu Inc.
Gaotu is a technology-driven education company and online
large-class after-school tutoring service provider in China. The Company offers foreign language,
professional and admission courses, and also offers K-12 courses
covering all primary and secondary grades through the brand Gaotu
K12. Gaotu adopts an online live large-class format to deliver its
courses, which the Company believes is the most effective and
scalable model to disseminate scarce high-quality teaching
resources to aspiring students in China. Big data analytics permeates each
aspect of the Company's business and facilitates the application of
the latest technology to improve teaching delivery, student
learning experience, and operational efficiency.
For further information, please contact:
Gaotu Techedu Inc.
Ms. Sandy Qin, CFA, CMA
E-mail: ir@gaotu.cn
Christensen
In China
Ms. Vivian Wang
Phone: +852 2232 3978
E-mail: gotu@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
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SOURCE Gaotu Techedu Inc.