GSX Provides Update on Its Internal Review

Rhea-AI Summary

GSX Techedu Inc. (NYSE: GSX), a top online K-12 tutoring provider in China, announced the near completion of its internal review following previous allegations from short-sellers. This review did not reveal any evidence that would materially affect GSX's earlier financial statements. The company will continue cooperating with the SEC regarding an ongoing investigation but cannot predict its duration or impact. GSX focuses on delivering K-12 courses and utilizes technology to enhance teaching efficiency.

Positive

• Internal review nearly complete without material impact on financial statements.

Negative

• Continued uncertainty regarding the duration and outcome of the SEC investigation.

BEIJING, March 1, 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 provided an update on the status of its internal review.  As previously disclosed, following the publication of a number of short-seller reports about the Company from early- to mid-2020, the Company's independent audit committee engaged third-party professional advisers to conduct an independent review into these reports' key allegations (the "Internal Review").

The Internal Review is now substantially complete.  Based on the agreed upon scope and procedures performed, the Internal Review did not uncover evidence that would have a material impact on GSX's previously reported financial statements. 

The Company intends to continue to cooperate with the SEC in connection with the ongoing SEC investigation, as previously disclosed.  The Company is unable to predict the duration, outcome, or impact of the SEC investigation.

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 more information, please contact:

GSX Techedu Inc.
Ms. Sandy Qin, CFA
E-mail: ir@genshuixue.com

Christensen

In China
Mr. Andrew McLeod
Phone: +852-2232-3941
E-mail: gsx@christensenir.com

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

 

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SOURCE GSX Techedu Inc.

FAQ

What is the latest update from GSX regarding its internal review?

GSX reported that its internal review is nearly complete and found no material impact on previous financial statements.

Is GSX facing an SEC investigation?

Yes, GSX is cooperating with an ongoing SEC investigation but cannot predict its duration or outcome.

What services does GSX provide?

GSX offers online K-12 tutoring services in China, focusing on primary and secondary education through a large-class format.

What is the significance of the internal review for GSX shareholders?

The internal review's results suggest stability in previously reported financial statements, which may be reassuring for shareholders.