BEIJING, Aug. 19, 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 the Beijing Municipal
Committee of the Communist Party of China and the Beijing Municipality Government
jointly issued the "Beijing Municipality's Measures to Further
Reduce the Burden of Homework and After-School Tutoring on Students
in Compulsory Education in Beijing" (the "Beijing Measures") on
August 14, 2021, and published the
full text of the Beijing Measures on August
18, 2021. The Beijing Measures were adopted to implement 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 aim to ensure that "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 will be effectively reduced by the
end of 2021, with significant impact achieved within two
years."
With respect to after-school tutoring services, among other
things, the Beijing Measures contain the following provisions:
- Previously registered online providers of after-school tutoring
services on academic subjects in China's compulsory education system ("Academic
AST") will be subject to review and re-registration, and the
registration and ICP license of any unqualified online Academic AST
providers will be rescinded.
- 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.
- 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 to prevent "any excessive charging or excessive
profit-seeking activity."
- Academic AST providers are prohibited from financing by way of
listing its securities or conducting other capital market
activities; listed companies may not invest in Academic AST
providers through capital markets fundraising activities, and may
not acquire assets of Academic AST providers by paying cash or
issuing securities; foreign capital is prohibited from controlling
or participating in Academic AST providers through mergers and
acquisitions, entrusted operations, joining franchises, using
variable interest entities or other structures.
- 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 in accordance with relevant national
regulations and local regulations of Beijing.
The Company's compliance with the Beijing Measures will have a
material adverse impact on its business, results of operations and
financial condition. Specifically, in compliance with the Beijing
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 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.