INFORMATION ON THE COMPANY
History and Development of the Company
We commenced operations in June 2014 through Beijing BaiJiaHuLian
Technology Co., Ltd., which was renamed as Beijing BaiJia
Technology Co., Ltd. in September 2020, or Beijing BaiJia. Our
holding company, BaiJiaHuLian Group Holdings Limited, was
incorporated in August 2014 in the Cayman Islands to facilitate
financing and offshore listing. In January 2019, we renamed our
company as GSX Techedu Inc.
In August 2014, we established a wholly-owned subsidiary in Hong
Kong, BaiJiaHuLian HK Holdings Limited. In January 2015,
BaiJiaHuLian HK Holdings Limited established a wholly-owned
subsidiary in China, Beijing Lexuebang Network Technology Co.,
Ltd., or Beijing Lexuebang.
In April 2015, we gained control over Beijing BaiJia through
Beijing Lexuebang by entering into a series of contractual
arrangements with Beijing BaiJia and its shareholders. The
contractual arrangements with Beijing BaiJia were subsequently
amended and restated in March 2019.
On June 6, 2019, our ADSs commenced trading on the NYSE under
the symbol “GSX.” We raised from our initial public offering and
from exercising the over-allotment option by the underwriters
US$196.3 million in net proceeds after deducting underwriting
commissions and the offering expenses payable by us.
On November 25, 2019, we completed a registered follow-on
public offering by certain selling shareholders of 20,700,000 ADSs
(including 2,700,000 ADSs sold from the exercise of over-allotment
option) at a public offering price of US$14.00 per ADS. We did not
receive any proceeds from the follow-on public offering.
In January 2020, we completed the acquisition of Zhengzhou Kaitong
Kegongmao Co., Ltd. and renamed it as Zhengzhou GaoTuYunJi
Education Technology Co., Ltd., which became a subsidiary of our
In May 2020, our board of directors authorized a share repurchase
program, under which we may repurchase up to US$150 million worth
of our shares. In the same month, we repurchased approximately
1.1 million ADSs for approximately US$39.8 million.
In December 2020, we raised US$870 million in net proceeds from the
private placement of our newly issued Class A ordinary shares
to certain investors. In the same month, we substantially completed
the acquisition of 100% of the equity interest in Tianjin Puxin
Online School Education Technology Co., Ltd., a K-12 education
institution, for a total consideration of RMB37.4 million. Tianjin
Puxin Online School Education Technology Co., Ltd. became a
subsidiary of our VIE after the acquisition.
From January 2020 to February 2021, we established two new wholly
foreign-owned enterprises in Beijing and Wuhan, respectively, one
new subsidiary of Beijing Lexuebang, as well as 11 new subsidiaries
of our VIE in 11 cities in China, including Wuhan, Jinan, Xi’an,
Hefei, Taiyuan, Hangzhou, Nanchang, Nanjing, Tianjin, Shanghai and
Our principal executive offices are located at Tower C, Beyondsoft
Building, 7 East Zone, 10 Xibeiwang East Road, Haidian District,
Beijing 100193, People’s Republic of China. Our telephone number at
this address is +86 10 8282-6826. Our registered office in the
Cayman Islands is located at the offices of Maples Corporate
Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104,
Cayman Islands. Our agent for service of process in the United
States is Puglisi & Associates, located at 850 Library
Avenue, Suite 204, Newark, Delaware 19711.
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We are a technology-driven education company with core expertise in
online K-12 courses. Our K-12 courses cover all primary and
secondary grades, and contributed 80.7% and 87.5%, respectively, of
our total revenues in 2019 and 2020. We also offer foreign
language, professional and admission courses. Our total paid course
enrollments increased from 552 thousand in 2018 to
2,187 thousand in 2019 and further increased to
5,871 thousand in 2020. We adopted the online live large-class
format to deliver our courses, which we believe is the most
effective and scalable model to disseminate scarce high quality
teaching resources to aspiring students in China.