SHANGHAI, July 26, 2021
/PRNewswire/ -- Zhangmen Education Inc. ("Zhangmen" or the
"Company") (NYSE: ZME), a leading online education company in
China focused on providing
personalized online courses to K-12 students, noted that the
General Office of the Communist Party of China Central Committee
and the General Office of the State Council jointly issued a set of
guidelines on July 24, 2021, aiming
to ease the burden of excessive homework and after-school tutoring
for students receiving compulsory education (the "Guidelines"). The
Guidelines, among other things, require that all institutions
offering after-school tutoring on academic subjects in compulsory
education be registered as non-profit organizations, obtain
approval from the relevant regulatory authorities, and comply with
various operational requirements with respect to class hours,
faculty qualifications, tuition standards, advertising and others.
In addition, the Guidelines prohibit all such tutoring businesses
from raising funds through stock exchange listings or other
capital-related activities. Foreign investments in school
curriculum-based tutoring institutions through variable interest
entity (VIE) arrangements, mergers and acquisitions or otherwise
are also prohibited. Listed companies are banned from raising
capital through equity offerings to invest in businesses offering
tutoring on academic subjects in compulsory education. The
Guidelines require that all businesses that have already violated
these rules take corrective measures as appropriate. The Guidelines
also provide that institutions offering after-school tutoring on
high school curriculum, which is not part of compulsory education,
shall also take into consideration of the Guidelines when
conducting activities.
Although the interpretation and implementation of the Guidelines
remain uncertain, we expect the Guidelines to have material impacts
on our existing business operations, financial condition and
corporate structure. As we are currently exploring measures to
comply with the requirements in the Guidelines, we will continue to
seek guidance from the regulatory authorities to improve our
operations in strict compliance with all laws and regulations,
fulfil our social responsibilities, provide our users with
high-quality services, and promote the long-term development of
China's education industry.
About Zhangmen Education Inc.
Zhangmen Education Inc. (NYSE: ZME) is a leading online
education company in China focused
on providing personalized online courses to K-12 students. The
Company's core course offerings encompass one-on-one and
small-class after-school tutoring services covering all core K-12
academic subjects, with an established portfolio of well-recognized
online education brands including Zhangmen One-on-One, Zhangmen Small Class, Zhangmen
Kids and Xiaoli. Leveraging its high-quality teaching talents with
localized insights, data-driven localized educational content and
powerful technology infrastructure, the Company provides a
personalized and results-driven learning experience to students
across different regions. Over the years, the Company has
successfully garnered wide recognition in the industry and
established "Zhangmen" as a trusted online education brand. For
more information, please visit ir.zhangmenedu.com.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking" statements which are made pursuant to 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," "aims,"
"future," "intends," "plans," "believes," "estimates," "likely to,"
and similar statements. Statements that are not historical facts,
including statements about the Company's beliefs, plans, 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 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 obligation to update any
forward-looking statement, except as required under applicable
law.
For investor and media inquiries, please contact:
In China:
Zhangmen Education Inc.
Investor Relations
E-mail: ir@zhangmen.com
The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: zhangmen@thepiacentegroup.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: zhangmen@thepiacentegroup.com
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SOURCE Zhangmen Education Inc.