BEIJING, July 25, 2021 / PRNewswire-Asia / – New Oriental Education & Technology Group Inc. (“New Oriental” or the “Company”) (NYSE: EDU and SEHK: 9901), the largest provider of private educational services in China, announced that on July 24, 2021, China Official state media, including the Xinhua News Agency and China Central Television, announced the statements to further reduce the burden of homework and tutoring for students in compulsory school (the “Statement”) issued by the General Office of the CCP Central Committee and the General Secretariat of the State Council . The opinion provides high-level policy guidance on requirements and restrictions related to after-school tutoring, including (i) institutions that provide after-school tutoring in academic subjects China Compulsory education or AST academic institutions must be registered as non-profit, new AST academic institutions will not be approved, and an approval mechanism will be put in place for online AST academic institutions; (ii) foreign ownership of AST academic institutions is prohibited, including by contractual arrangements, and companies with existing foreign ownership must rectify the situation; (iii) publicly traded companies are prohibited from raising capital to invest in companies that teach compulsory academic subjects; (iv) AST academic institutions are prohibited from offering tuition in compulsory academic subjects on public holidays, weekends and school vacations; and (v) AST Academic Institutions must adhere to fee standards to be determined by the relevant authorities. The opinion also provides that institutions that offer tutoring in academic subjects at grammar schools (not covered by the China Compulsory school system) take the opinion into account when carrying out activities.
The company will follow the spirit of the opinion and adhere to the relevant rules and regulations in providing educational services. The company is considering taking appropriate compliance measures and expects these measures to have a material adverse effect on its after-school tutoring services related to academic subjects in China compulsory school system. The Company will proactively seek advice and work with government agencies in connection with its efforts to comply with the Statement and all related rules and regulations.
Safe Harbor Statement
This release contains forward-looking statements. These statements are made in accordance with the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terms such as “will”, “expected”, “expected” and “future”. “intends”, “plans”, “believes”, “estimates” and similar statements. New Oriental may also make forward-looking statements, whether written or oral, in its reports filed or submitted to the Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials, and in oral statements from its officers, Directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental’s beliefs and expectations, are forward-looking statements. 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 statements, including but not limited to the following: our ability to attract students without significantly reducing course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and improve our New Oriental brand; our ability to effectively and efficiently manage the expansion of our school network and successfully implement our growth strategy; the outcome of any ongoing or future litigation or arbitration, including those relating to copyright and other intellectual property rights; Competition in the private education sector in China; Changes in our income and certain items of costs or expenses as a percentage of our income; the expected growth of the Chinese private education market; Chinese Government Policy Regarding Private Education Services and Providers of Such Services; Health epidemics and other outbreaks in China; and general economic conditions in China. For more information about these and other risks, see our Annual Report on Form 20-F and other filings with the Securities and Exchange Commission. New Oriental assumes no obligation to update any forward-looking statements unless required by applicable law. All information contained in this press release and in the appendices is as of the date of this press release and New Oriental assumes no obligation to update this information unless required by applicable law.
About New Oriental
New Oriental is the largest provider of private educational services in China to offer a wide range of educational programs, services and products to a diverse student body China. New Oriental’s program, service and product offering includes K-12 after-school tutoring, exam preparation, adult language training, preschool education, elementary and secondary education, educational materials and distribution, online education and other services. New Oriental is listed on the NYSE (NYSE: EDU) or SEHK (9901.SEHK). New Oriental ADSs, each representing one common share. That Hong Kong-listed stocks are fully fungible with the NYSE listed ADSs.
For more information on New Oriental, see http://www.neworiental.org/english/.
For investor and media inquiries, please contact:
MS. Sisi Zhao
New Oriental Education & Technology Group Inc.
Tel: + 86-10-6260-5568
E-mail: [email protected]
SOURCE New Oriental Education and Technology Group Inc.