BEIJING, December 06, 2021 (GLOBE NEWSWIRE) – 17 Education & Technology Group Inc. (Nasdaq: YQ) (“17EdTech” or the “Company”), a leading educational technology company in China, has provided business updates today following recent regulatory developments relating to out-of-school tutoring services, including advice on further alleviating the homework load and after-school tutoring for education students mandatory, issued in July 2021 by the General Office of the CPC Central Committee and the General Office of the State Council (the “Notice”), also known as the Double Reduction Policy (the “Double Reduction Policy” ), and related rules, regulations and implementing measures promulgated by competent authorities.
In accordance with the Notice and applicable rules, regulations and measures, the Company plans to cease offering tutoring services related to academic subjects to students in kindergarten through the last year of high school (“AST Academic Services K-12 “) in mainland China by the end of 2021. The Company expects the discontinuance to have a material negative impact on the Company’s revenues for the year ending December 31, 2021 and subsequent periods. During the fiscal years ended December 31, 2019 and 2020, K-12 academic AST service revenues represented the substantial majority of the Company’s total revenues for each fiscal year.
The Company will continue to explore opportunities in educational products and services that are unrelated to AST K-12 academic services in accordance with relevant rules and regulations.
Leveraging its vast knowledge and expertise serving Chinese education authorities, schools, teachers and students over the past ten years, the company intends to shift its focus and resources to opportunities to facilitate digital transformation and upgrading in Chinese schools, with an emphasis on improving the efficiency and effectiveness of basic teaching and learning scenarios such as homework. The company has already entered into cooperation agreements with district education authorities, including those in Beijing and Shanghai, to explore and develop products and services for data-driven personalized learning and ‘AI + education “. The project in Shanghai Minhang district was named as one of the 10 case studies for the implementation of the “double reduction policy” by the Ministry of Education.
The Company will continue to seek advice from and cooperate with government authorities in various provinces and municipalities in China in its efforts to comply with the political guidelines of the Notice and all rules, regulations and implementing measures. related. The Company will further adjust its business operations as needed and inform its shareholders as appropriate.
About 17 Education & Technology Group Inc.
17 Education & Technology Group Inc. is a leading educational technology company in China. The company provides a smart classroom solution that delivers data-driven teaching, learning and assessment products to teachers, students and parents, covering more than 70,000 K-12 schools in 2020.
Leveraging the company’s academic leadership, 17EdTech offers K-12 online after-school tutoring services that complement students’ academic learning. 17EdTech’s online after-school tutoring courses for large grades K-12 are distinguished by their unique approach to personalization, achieved through a data-driven understanding of individual student academic performance, as well as insight. located at the district level.
Safe Harbor Declaration
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “will”, “expect”, “anticipate” “,” The future, “” intends “,” foresees “,” believes “,” believes “and similar statements. Statements that are not historical facts, including statements about 17EdTech’s beliefs and expectations, are forward-looking statements. 17EdTech may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. . Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including, but not limited to, the following: 17EdTech’s growth strategies; its future business development, financial condition and results of operations; its ability to continue to attract and retain users, convert non-paid to paid users, and increase paid user spending, trends, size, and relevant government policies and regulations relating to the Chinese mobile phone market. online education; its expectations regarding demand and market acceptance for its products and services; its expectations with regard to its relations with commercial partners; general economic and commercial conditions; and the assumptions underlying or related to all of the above. Further information regarding these and other risks is included in the documents filed by 17EdTech with the SEC. All information provided in this press release is as of the date of this press release, and 17EdTech assumes no obligation to update any forward-looking statement, except as required by applicable law.
For investor and media inquiries, please contact:
17 Education & Technology Group Inc.
Mr. Raymond Huang
Email: [email protected]
Christensen
In China
Mr. Eric Yuan
Phone: + 86-138-0111-0739
Email: [email protected]
In U.S
Ms. Linda Bergkamp
Phone: + 1-480-614-3004
Email: [email protected]
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