BEIJING, July 26, 2021 /PRNewswire/ -- Rise Education
Cayman Ltd ("RISE" or "the Company") (NASDAQ: REDU), a leading
education service provider that focuses on the development of
cognitive and aptitude training for young children in China, announced that, on July 24, 2021, China's official state media, including Xinhua
News Agency and China Central Television, announced the Opinions on
Further Alleviating the Burden of Homework and After-school
Tutoring for Students in Compulsory Education (the "Opinion"),
issued by the General Office of the CPC Central Committee and the
General Office of the State Council. The Opinion contains
high-level policy directives on the requirements and restrictions
related to online and offline after-school tutoring services,
including, among others, (i) institutions providing after-school
tutoring services on academic subjects in China's compulsory education system, or
Academic AST Institutions, are required to be registered as
non-profit; (ii) no approval will be granted to new Academic AST
Institutions or new training service providers for pre-school
children; (iii) the current registration-based regime for online
Academic AST Institutions will be changed to an approval-based
regime; (iv) foreign ownership in Academic AST Institutions is
prohibited, including through contractual arrangements, and
companies with existing foreign ownership are required to rectify
the situation; (v) listed companies are prohibited from acquiring
Academic AST Institutions or raising capital from the capital
markets to invest in Academic AST Institutions; (vi) Academic AST
Institutions are prohibited from providing tutoring services on
academic subjects in compulsory education during public holidays,
weekends and school breaks; (vii) Academic AST Institutions are
required to follow the fee standards to be established by relevant
authorities; and (viii) online training to pre-school children and
offline training on academic subjects in compulsory education to
pre-school children are prohibited. The Opinion also provides that
institutions providing after-school tutoring services on academic
subjects in high schools (which do not fall within China's compulsory education system) shall
take the Opinion into consideration when conducting business.
The Company is assessing the potential impact of the Opinion on
its business and considering appropriate compliance measures to be
taken, and will continue to comply with all applicable rules and
regulations, including those rules and regulations to be adopted
following the policy directives of the Opinion, in providing its
educational services. The Company expects the Opinion and the rules
and regulations to be adopted following the policy directives of
the Opinion to have material adverse impact on its English language
teaching business. However, the Company intends to continue to grow
its two aptitude training products announced in May, namely
WhySTEAM and Hiyeah, in compliance with the applicable laws, rules
and regulations. The Company will proactively seek guidance from
and cooperate with the government authorities in connection with
its efforts to comply with the Opinion and any related rules and
regulations.
About RISE
RISE Education Cayman Ltd ("RISE" or the "Company") (NASDAQ:
REDU) is a leading education service provider that focuses on the
development of cognitive and aptitude training for young children
facilitated by an integrated Online-Merge-Offline (OMO) teaching
approach model. Since its establishment in 2007, RISE has focused
on building a holistic education system that helps children develop
well-rounded skills and cultivate their talents with vision,
motivation and innovation.
The company's mission is to create an aptitude education
ecosystem that specializes in early child development, cognitive
thinking, and aptitude training. Through digital transformation and
continuous upgrading of its business and operations, RISE consists
of five brands – RISE English, an aptitude training brand for
students above six years old; Hiyeah, a brand focusing on social
interaction and emotional development of children between three to
eight years old; WhySTEAM, a brand focusing on STEAM-oriented
aptitude development for children under eight years old; RISE Study
Tour, a brand for students' comprehensive practical aptitude
development; and The Edge, a premium brand for academic tutoring,
test preparation and admissions consulting services, please visit
http://ir.risecenter.com/.
Safe Harbor Statement
This press release contains statements of a forward-looking
nature. These statements, including the statements relating to the
Company's future financial and operating results, are made under
the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. You can identify these
forward-looking statements by terminology such as "will,"
"expects," "believes," "anticipates," "intends," "estimates" and
similar statements. These forward-looking statements involve known
and unknown risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about RISE and
the industry. Potential risks and uncertainties include, but are
not limited to, those relating to changes in government policies
and regulations relating to the Company's business and corporate
structure and the industry as well as their potential impact on the
Company's financial condition, results of operations and business
prospects, the Company's ability to attract new students and retain
existing students, its ability to maintain or enhance its brand,
its ability to compete effectively against its competitors, its
ability to execute its growth strategy, its ability to introduce
new products or enhance existing products, its ability to obtain
required licenses, permits, filings or registrations, its ability
to grow or operate or effectively monitor its franchise business,
quarterly variations in its operating results caused by factors
beyond its control, changes in macroeconomic conditions in
China, and their potential impact
on the Company's future business development, financial condition
and results of operations. All information provided in this press
release is as of the date hereof, and RISE undertakes no obligation
to update any forward-looking statements to reflect subsequent
occurring events or circumstances, or changes in its expectations,
except as may be required by law. Although RISE believes that the
expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that its expectations will turn
out to be correct, and investors are cautioned that actual results
may differ materially from the anticipated results. Further
information regarding risks and uncertainties faced by RISE is
included in RISE's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F for the year
ended December 31, 2020.
For investor and media inquiries, please
contact:
Aaron Li
RISE Education
Email: riseir@rdchina.net
Tel: +86 (10) 8559-9191
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SOURCE RISE Education Cayman Ltd