Meten EdtechX Reports a 485% Increase in Gross Billing a 483% Increase in Students Enrollment of its Junior ELT Business in the First Quarter of 2021

Rhea-AI Summary

Meten EdtechX Education Group Ltd. (Nasdaq: METX) announced a remarkable return to growth in its junior English language training (ELT) sector. For Q1 2021, gross billing surged by 485% and student enrollment increased by 483% year-over-year. All learning centers met profit targets, with 7 cities surpassing RMB1 million in gross billing. The company anticipates RMB121 million in gross billing for 2021, an 82% increase from 2020, driven by strong market feedback and student renewals.

Positive

• Gross billing increased by 485% in Q1 2021.
• Student enrollment rose by 483% year-over-year.
• All learning centers met profit targets in March.
• 7 cities achieved gross billing over RMB1 million.
• Expected gross billing of RMB121 million for 2021, an 82% increase from 2020.

Negative

• None.

SHENZHEN, China, April 29, 2021 (GLOBE NEWSWIRE) -- Meten EdtechX Education Group Ltd. (Nasdaq: METX) (“Meten EdtechX” or the “Company”), one of the leading omnichannel English language training (“ELT”) service providers in China, today reported that the gross billing and student enrollment of its junior ELT business increased by 485% and 483% respectively in the first quarter of 2021 compared to the same period of last year. The figures confirm that the Company has returned to its pre-pandemic rapid growth trajectory.

The Company is actively expanding its junior ELT business within its current network of 22 cities and has received positive market feedback. All of the Company’s learning centers achieved their profit goals in March, and the centers in 7 out of the 22 cities (Foshan, Guangzhou, Changsha, Dongguan, Chengdu, Shenzhen, and Chongqing) recorded gross billing of over RMB1 million. In addition, the gross billing from student renewals and referrals accounted for 61% of the total gross billing of the Company’s junior ELT business in the first quarter, demonstrating that the Company’s products and services have been widely appreciated and recognized by students and their parents.

Through leveraging its business experience, vertical expansion strategy and brand influence, the Company expects its junior ELT business to achieve RMB121 million in gross billing in fiscal year 2021, which would represent an 82% increase compared to fiscal year 2020.

About Meten EdtechX

Meten EdtechX is one of the leading ELT service providers in China, delivering English language and skills training for Chinese students and professionals. Through a digital platform and a nationwide network of learning centers, the Company provides its services under three industry-leading brands: Meten (adult and junior ELT services), ABC (primarily junior ELT services) and Likeshuo (online ELT). It offers superior teaching quality and student satisfaction, which are underpinned by cutting edge technology deployed across its business, including AI-driven centralized teaching and management systems that record and analyze learning processes in real time.

The Company is committed to improving the overall English language fluency of the Chinese population to keep abreast of the rapid development of globalization. Its experienced management is focused on further developing its digital platform and expanding its network of learning centers to deliver a continually evolving service offerings to a growing number of students across China.

For more information, please visit: https://investor.metenedu-edtechx.com.

Safe Harbor Statement

This announcement contains forward-looking statements that involve risks and uncertainties. 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. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the impact of the COVID-19 outbreak, our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our brands; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the English language training sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese English language training and private education market; Chinese governmental policies relating to private educational services and providers of such services; health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

Ascent Investor Relations LLC
Tina Xiao
+1 917-609-0333
tina.xiao@ascent-ir.com

FAQ

What were the growth figures for Meten EdtechX in Q1 2021?

Meten EdtechX reported a 485% increase in gross billing and a 483% rise in student enrollment in Q1 2021 compared to the previous year.

How many cities did Meten EdtechX operate in during Q1 2021?

Meten EdtechX operated in 22 cities during Q1 2021.

What is the expected gross billing for Meten EdtechX in 2021?

The company expects gross billing of RMB121 million for fiscal year 2021, which represents an 82% increase from 2020.

How did Meten EdtechX's learning centers perform in March 2021?

All of Meten EdtechX's learning centers achieved their profit goals in March 2021.