BEIJING, April 15, 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 firmly denied the false and
ungrounded allegations raised in a report by Citron Research dated
April 14, 2020. The Company strongly
believes that the report contains numerous errors, unsubstantiated
statements, and misinterpretation of information.
Specifically, the Company has two
K-12 live large course brands, Gaotu and Genshuixue, with
Gaotu contributing more than a majority of the Company's net
revenue from K-12 courses. The report falsefully equated the
revenue from Genshuixue to the
Company's entire revenue from K-12 courses, showing an apparent ignorance of the Company's
business.
Notably, hours after initially issuing the report on
April 14, Citron removed the portion
of the report that included the data collection methodology
which they used to support its core
allegation, implying doubt of its own research methodology.
GSX will consider any necessary and appropriate course of action
to protect the interest of the Company and all of its shareholders,
as well as its students, instructors and other constituents. The
Company endeavors to provide full and accurate disclosure to
investors and to rebut any false claims that attempt to impair
market confidence in GSX's business, operations and financial
statements. GSX is committed to maintaining the highest standards
of corporate governance, as well as transparent and timely
disclosure in compliance with the applicable rules and regulations
of the United States Securities and Exchange Commission and the New
York Stock Exchange.
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@genshuixue.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.