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GSX Comments on Industry Regulations Published on September 5th and Expects Long-Term Benefits to its Operations

2019-09-09 18:00 6424

BEIJING, Sept. 9, 2019 /PRNewswire/ -- On September 5, 2019, China's Ministry of Education along with other 7 government departments, published Opinions on Regulating Mobile Internet Applications in Education. The new regulations impact a wide range of applications, including study tool apps, campus service apps, as well as online tutoring apps. GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, believes that the regulations will have long-term benefits to the Company's business.

In summary, the regulations require that service providers have (1) ICP (Internet Content Provider) registration or Telecommunications Business Operating License, (2) a network security protection grading certificate issued by public security authority, and (3) a network security evaluation report issued by a qualified assessment agency. The entire filing process can be handled online and should be completed by the end of 2019. The results will be published for the public online.

In addition, the regulations reiterate certain requirements outlined in the Implementation Opinions on Regulating Online After-school Tutoring promulgated by the Ministry of Education and other authorities in July 2019 including teacher qualifications and information privacy.

GSX management is confident that the Company will be in full compliance with the requirements once the registration period is open.

Currently, apps that carry the Company's main courses, including Genshuixue and Gaotu Ketang, function seamlessly on all major systems and platforms. Earlier this month, the Genshuixue app was temporarily removed from Apple's iTunes' store for two days so the Company could make updates to meet Apple's requirements for in app purchases, which had no significant impact on its operations.

Management believes the most recent regulations will benefit the entire industry by creating a more sustainable environment, especially for top players like GSX. The Company will continue to update investors with the progress it is making in maintaining full compliance.

About GSX Techedu Inc. 
GSX Techedu Inc. (NYSE: GSX) ("GSX Techedu" or the "Company") is a technology-driven education company and leading online K-12 large-class after-school tutoring service provider in China. GSX Techedu offers K-12 courses covering all primary and secondary grades as well as foreign language, professional and interest courses. GSX Techedu 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. Big data analytics permeates each aspect of the Company's business and facilitates the application of the latest technology to improve teaching delivery, student learning experience, and operational efficiency.

For more information, please contact:

GSX Techedu Inc.
E-mail: ir@baijiahulian.com

Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com 

In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com

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Source: GSX Techedu Inc.
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