BEIJING, Nov. 15, 2021 /PRNewswire/ -- Gaotu Techedu Inc.
("Gaotu" or the "Company") (NYSE: GOTU), a leading online
large-class tutoring service provider in China, today provided business updates
following the recent regulatory developments relating to
after-school tutoring services, including 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 the related implementation rules, regulations and
measures promulgated by competent authorities (collectively, the
"New Regulations").
In compliance with the New Regulations, the Company will cease
offering tutoring services related to academic subjects to students
from kindergarten through grade nine (the "K-9 Academic AST
Services") by the end of 2021 (the "Cessation"). The Company
expects that the Cessation will have a substantial adverse impact
on the Company's revenues for the fiscal year ending December 31, 2021 and the subsequent periods.
The Company will continue to consider appropriate strategic
opportunities that can effectively leverage the resources and
knowhow accumulated through its past K-9 Academic AST Services, and
will provide updates as appropriate. The Company will also continue
to operate its business outside of the K-9 Academic AST Services
and shift its focus towards developing course offerings and
services for professional education, explore possibilities in
digital products and vocational education, and continue to provide
quality learning experience for its students.
The Company is committed to complying with all applicable PRC
laws and regulations, including the New Regulations. To this end,
the Company will continue to seek guidance from and cooperate with
all relevant government authorities in China in connection with its efforts to comply
with the policy directives of the New Regulations. The Company will
further adjust its business operations as required and provide
updates as appropriate.
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 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 tutoring service provider in China. The Company offers foreign language,
vocational, professional, admission courses and STEAM courses.
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. The Company leverages big data
analytics and the latest technologies in multiple aspects of its
business to improve teaching delivery, student learning experience,
and operational efficiency.
For further information, please contact:
Gaotu Techedu Inc.
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.