BEIJING, April 6, 2020 /PRNewswire/ -- GSX Techedu Inc.
(NYSE: GSX) ("GSX" or the "Company"), a leading online K-12
large-class after-school tutoring service provider in China, today provided answers to frequently
asked questions on its annual report on Form 20-F for fiscal year
2019 filed with the SEC on April 3,
2020.
Q. Is the audit opinion letter issued by Deloitte Touche
Tohmatsu Certified Public Accountants LLP a standard, unqualified
audit opinion letter?
A. Yes. As stated in the audit opinion letter signed by
Deloitte Touche Tohmatsu Certified Public Accountants LLP, the
financial statements present fairly, in all material respects, the
financial position of the Company as of December 31, 2018 and 2019, and the results of
its operations and its cash flows for each of the three years in
the period ended December 31, 2019,
in conformity with accounting principles generally accepted in
the United States of
America.
Q. Why is it that the audit opinion letter issued by Deloitte
Touche Tohmatsu Certified Public Accountants LLP does not include
any opinion on the effectiveness of internal control over financial
reporting?
A. As the Company was listed on NYSE and became a SEC
reporting company in June 2019, it
will not be eligible for being a large accelerated filer nor an
accelerated filer until one year after it becomes a SEC reporting
company, as each such term is defined under the U.S. securities
law. Consequently, pursuant to Section 404(c) of the Sarbanes-Oxley
Act of 2002, the Company is exempt from the registered public
accounting firm attestation and reporting requirement on the
internal control over financial reporting of the Company. Such
exemption is commonly relied upon by newly listed first-time
issuers in their first annual reports after the IPO.
Q. When does the Company plan to conduct SOX 404 internal
control audit?
A. The Company has begun to prepare for the SOX 404 internal
control audit. The Company expects to include in its annual report
on Form 20-F for fiscal year 2020, to be filed in 2021, an
attestation and report from its registered public accounting firm
on the internal control over financial reporting of the
Company.
Q. Compared with the prospectus used in the registered
follow-on offering in November 2019,
why does the list of major shareholders in the annual report seem
to be much shorter?
A. In the annual report, the Company is only required to
identify shareholders that are the beneficial owners of 5% or more
of each class of the Company's voting securities as of the most
recent practicable date.
In the registered follow-on offering prospectus, all selling
shareholders in the offering, regardless of their shareholding
percentage in the Company, were listed in the Principal and Selling
Shareholders section of the prospectus, and the shareholders owning
less than 5% of the Company were listed because they were selling
shareholders in the offering.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. GSX may also make
written or oral forward-looking statements in its reports filed
with, or furnished to, the U.S. Securities and Exchange Commission,
in its annual reports to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about the Company'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 statement. Further information
regarding these and other risks is included in the Company's
reports filed with, or furnished to the U.S. Securities and
Exchange Commission. All information provided in this press release
and in the attachments is as of the date of this press release, and
GSX undertakes no duty to update such information or any
forward-looking statement, except as required under applicable
law.
About GSX
GSX is a technology-driven education company and leading online
K-12 large-class after-school tutoring service provider
in China. GSX offers K-12 courses covering all primary and
secondary grades as well as foreign language, professional and
interest courses. GSX 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 further information, please contact:
GSX Techedu Inc.
Ms. Sandy Qin, CFA
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.