BEIJING,
Feb. 16, 2022 /PRNewswire/ -- Gaotu
Techedu Inc. ("Gaotu" or the "Company") (NYSE: GOTU), a
technology-driven education company and online large-class tutoring
service provider in China, today
provided business updates following Beijing local government's updated regulatory
requirements (the "New Regulation") that after-school tutoring
services for senior high school students need to strictly follow
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.
In compliance with the New Regulation, the Company will cease
offering tutoring services related to academic subjects to students
in senior high schools before the end of February 2022 (the "Cessation"). The Company
expects that the Cessation will have a substantial adverse impact
on the Company's revenues for 2022 and subsequent periods.
The Company will leverage the resources and knowhow accumulated
through its past K-12 academic subject tutoring services, and turn
its focus on its professional education service, vocational
education service and digital products. The Company has seen a
promising start to its non-K12 business, and it is confident that
it will see profitability and positive operating cash flow in as
early as the fourth quarter of 2021.
The Company is committed to complying with all applicable PRC
laws and regulations, including the New Regulation. 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 Regulation. 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 vocational,
professional education and digital products. 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.
Investor Relations
E-mail: ir@gaotu.cn
Christensen
In China
Ms. Vivian Wang
Phone: +852 2232 3978
Email: 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.