Meten EdtechX to Enhance Online Merge Offline (OMO) Services for Students

Rhea-AI Summary

Meten EdtechX Education Group Ltd. (Nasdaq: METX) announced enhancements to its online merge offline (OMO) services, successfully delivering 84,000 class hours in 2021, contributing RMB21 million in gross billing. The OMO model integrates online and offline education, improving operational efficiency and student satisfaction. The company invested RMB20 million in developing the 'dual-teacher classroom' approach, aimed at elevating teaching quality. Meten expects new integrated OMO products to drive growth and save approximately 25% in teaching costs for foreign teachers.

Positive

• Successfully delivered 84,000 class hours, contributing RMB21 million in gross billing.
• Investment of RMB20 million in developing innovative 'dual-teacher classrooms' to enhance teaching quality.
• The OMO model expected to lower customer acquisition costs and improve operational efficiency.
• Projected savings of approximately 25% in foreign teacher costs due to enhanced operational efficiency.

Negative

• None.

SHENZHEN, China, July 1, 2021 /PRNewswire/ -- 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 announced that the Company plans to enhance its online merge offline (OMO) services for its students. Since the beginning of 2021, the Company has completed the online delivery of 84,000 class hours of its offline courses through the OMO system, which contributed RMB21 million in gross billing.

OMO is an integrated learning model which combines the advantages of the online education with those of the traditional offline education, providing students with scale and personalization associated with online education, and real, effective learning experiences associated with offline education. The OMO model can help the Company quickly recover from the negative impact of the COVID-19 epidemic on offline businesses, lower customer acquisition costs, and improve operational efficiency. In addition, the OMO model can better meet the students' various needs, enhance their sense of experience, provide convenience for students, and increase customer retention and satisfaction.

Since 2020, the Company has invested RMB20 million developing "dual-teacher classroom", which is mainly used for ABC junior ELT services. The Company carefully selected the course content and electronic teaching aids, conducted trainings for foreign teachers, guided them through the qualification certification process, installed hardware equipment in the classrooms, and adopted standardized course materials and curriculums, among others. The "dual-teacher classroom" adopts an innovative approach to teaching, where foreign teachers conduct live stream teaching with the help of advanced Internet technology. "Dual-teacher classroom" learning integrates online and offline teaching, which greatly improves the teaching quality of foreign teachers and enhances the learning experience of students.

Currently, the Company has independent online and offline products. It plans to launch new offline and online integrated products (OMO products, such as the "dual-teacher classroom"), which is expected to bring new growth points for the company in the future. In 2021, the Company expects to continue implementing the OMO strategy to benefit a wider group of students. With a significant improvement in operational efficiency of the "dual-teacher classrooms", the Company can save an estimate of 25% teaching costs of foreign teachers.

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 sophisticated 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). The Company offers superior teaching quality and student satisfaction, served 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 competence 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 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

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SOURCE Meten EdtechX Education Group Ltd.

FAQ

What is Meten EdtechX's new OMO strategy?

Meten EdtechX's new OMO strategy integrates online and offline educational services to enhance student experience and operational efficiency.

How many class hours has Meten delivered in 2021?

Meten delivered 84,000 class hours in 2021 through its OMO services.

What are the financial impacts of the OMO model?

The OMO model contributed RMB21 million in gross billing and is expected to lower customer acquisition costs.

What is the projected impact of the 'dual-teacher classroom'?

The 'dual-teacher classroom' is expected to enhance teaching quality and save approximately 25% in teaching costs.

When was Meten EdtechX's announcement made?

The announcement was made on July 1, 2021.