BEIJING, Nov. 22, 2021 /PRNewswire/ -- RISE Education
Cayman Ltd (the "Company") (NASDAQ: REDU) today announced that
Ernst & Young Hua Ming LLP ("EY") had resigned as the
independent registered public accounting firm of the Company,
effective November 19, 2021.
EY's audit report on the Company's consolidated financial
statements as of and for the year ended December 31, 2020 did not contain an adverse
opinion or disclaimer of opinion and were not qualified or modified
as to uncertainty, audit scope or accounting principles. During the
audit for year ended December 31,
2020, there was no disagreements, as defined in Item 16F
(a)(1)(iv) of Form 20-F and the related instructions, between the
Company and EY on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure
which, if not resolved to the satisfaction of EY would have caused
them to make reference thereto in their report on the consolidated
financial statements for such year.
EY identified certain regulatory requirements during the audit
of the Company's consolidated financial statements for the year
ended December 31, 2021 that require
further assessment with respect to the impact of these regulatory
requirements on the Company's operations: "Opinions on Further
Alleviating the Burden of Homework and After-School Tutoring for
Students in Compulsory Education Stage" (the "Opinion"), and the
circular published by the Chinese Ministry of Education and two
other government authorities on its website to implement the
Opinion, which requires all academic after-school tutoring
institutions to complete registration as not-for-profit
organization by the end of December
31, 2021. As of the date of EY's resignation, the
Company has not been able to
provide additional information to EY to resolve the
above-mentioned matter to their satisfaction. Accordingly, EY were
unable to progress their audit or render their audit report on our
consolidated financial statements for the year ended December 31, 2021.
The Company intends to engage a new audit firm in due
course.
Safe Harbor Statement
This current report contains statements of a forward-looking
nature. These statements 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. All
information provided in this current report 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.
For investor and media inquiries, please
contact:
Luna Xing
RISE Education
Email: riseir@rdchina.net
Tel: +86 (10) 8559-9191
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SOURCE RISE Education Cayman Ltd