GSX Firmly Denies Allegations in Grizzly Report

Rhea-AI Summary

On April 9, 2021, GSX Techedu Inc. (NYSE: GSX) strongly denied the allegations presented in a report by Grizzly Research dated April 8, 2021. The company asserts that the report is based on numerous errors and misinterpretations. GSX emphasizes its commitment to transparency and corporate governance, stating it will take necessary actions to protect the interests of its stakeholders. The company continues to provide online K-12 tutoring services in China, leveraging big data and technology to enhance educational delivery.

Positive

• GSX maintains a strong commitment to transparency and corporate governance.
• The company continues to leverage technology and big data analytics to enhance educational delivery.

Negative

• The allegations from Grizzly Research may affect market confidence in GSX.
• The company may face reputational challenges due to the negative claims made in the report.

BEIJING, April 9, 2021 /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 denies the false and ungrounded allegations raised in a report by Grizzly Research dated April 8, 2021. The Company strongly believes that the report contains numerous errors, unsubstantiated statements, and misinterpretation of information.

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, parents, employees and other stakeholders. 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 Techedu Inc.     

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 through the brand Gaotuketang as well as foreign language, professional and interest courses through the brand Genshuixue. 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
Investor Relations Director
E-mail: ir@genshuixue.com

Christensen
In China
Ms. Vivian Wang
Phone: +852 2232 3978
E-mail: gsx@christensenir.com

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

 

View original content:http://www.prnewswire.com/news-releases/gsx-firmly-denies-allegations-in-grizzly-report-301265779.html

SOURCE GSX Techedu Inc.

FAQ

What allegations did GSX deny on April 9, 2021?

GSX denied allegations made by Grizzly Research on April 8, 2021, claiming they were based on errors and misinterpretations.

How is GSX responding to the Grizzly Research report?

GSX is considering necessary actions to protect the interests of its shareholders and maintain market confidence.

What is GSX's focus in the education sector?

GSX focuses on providing online K-12 large-class after-school tutoring services in China.

What is GSX's approach to transparency and governance?

GSX is committed to full and accurate disclosure to investors and adheres to corporate governance standards.

What impact could the Grizzly Research report have on GSX's stock?

The negative allegations may affect investor confidence and, consequently, the stock performance of GSX.