HANGZHOU, China, Sept. 30, 2021 /PRNewswire/ -- Youdao, Inc.
("Youdao" or the "Company") (NYSE: DAO), a leading intelligent
learning company in China, today
announced its plan to dispose of its after-school tutoring services
for academic subjects included in China's compulsory education system (the
"Academic AST Business"), as part of its efforts to fully comply
with applicable PRC regulatory requirements which have been
previously discussed in the Company's press releases on
July 26, 2021 and August 19, 2021.
As the Company previously announced, the Opinions on Further
Alleviating the Burden of Homework and After-School Tutoring for
Students in Compulsory Education published in July by the PRC
central government (the "Central Government Opinions") and related
measures subsequently published by the local government in
Beijing require that existing
Academic AST providers be re-registered as non-profit
organizations. To implement the Central Government Opinions, on
September 3, 2021 the Ministry of
Education, Ministry of Civil Affairs and State Administration for
Market Regulation of the PRC jointly published the Notice on
Re-registration of Academic AST Institutions as Non-Profit
Organizations, which requires, among other things, that all
Academic AST providers be re-registered as non-profit organizations
by the end of 2021.
To comply with such regulatory requirements, on September 30, 2021, Youdao submitted an
application to the competent local government for approval of the
proposed disposal of its Academic AST Business to a buyer with
which Youdao is in discussions. The total consideration for the
transaction will be determined after arm's length negotiations
between Youdao and the buyer, subject to definitive agreements to
be entered into by the relevant parties. The proposed transaction
involves the disposal of Youdao's Academic AST Business, including
the transfer of the related employees and assets and liabilities
(including existing service contracts with enrolled students), to
the buyer. Youdao currently expects the transaction to be
completed by the end of 2021, subject to execution of the
definitive agreements and regulatory approval. There can be no
assurance regarding the ultimate timing of the proposed transaction
or that the transaction will be completed.
In the second quarter of 2021, revenues from Youdao's Academic
AST Business accounted for approximately 24% of its total
revenues.
Youdao is committed to fully complying with applicable PRC laws
and regulations, including all regulations and rules adopted by the
central and local governments of China which are designed to implement the
requirements of the Central Government Opinions. Youdao will
continue to work constructively with the government authorities in
connection with the proposed disposal of the Academic AST Business
and to continue developing and improving its innovative products
and technologies for its users.
About Youdao, Inc.
Youdao, Inc. (NYSE: DAO) is a leading intelligent learning
company in China dedicated to
developing and using technologies to provide learning content,
applications and solutions to users of all ages. Building on the
popularity of its online knowledge tools such as Youdao Dictionary
and Youdao Translation, Youdao now offers online courses covering a
wide spectrum of age groups, subject matters, learning goals and
areas of interest. In addition, Youdao has developed a variety of
interactive learning apps and smart learning devices. Youdao was
founded in 2006 as part of NetEase, Inc. (NASDAQ: NTES; HKEX:
9999), a leading internet technology company in China. For more information, please
visit: http://ir.youdao.com.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. 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, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may," "will," "expect,"
"anticipate," "target," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to" or other
similar expressions. 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 such risks, uncertainties or factors 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 duty to update such
information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Jeffrey Wang
Youdao, Inc.
Tel: +86-10-8255-8163 ext. 89980
E-mail: IR@rd.netease.com
The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: youdao@thepiacentegroup.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: youdao@thepiacentegroup.com
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SOURCE Youdao, Inc.