OneSmart International Education Group Limited Announces Approval of Business Suspension and Resignation of Independent Directors

Rhea-AI Summary

On October 12, 2021, OneSmart International Education Group Limited (NYSE: ONE) announced the suspension of all education programs and learning centers in China due to regulatory challenges facing the private educational sector. This decision reflects the operational difficulties the company has encountered. Additionally, independent directors Liang (Mason) Xu and Yan Gong have resigned from the board, with plans to appoint two new directors soon. The company aims to navigate its future, emphasizing its focus on technology and education despite current challenges.

Positive

• Fresh leadership perspectives expected with the appointment of new independent directors.

Negative

• Complete suspension of education programs and learning centers in China due to regulatory challenges.
• Resignation of independent directors may raise concerns about continuity and governance.

SHANGHAI, Oct. 12, 2021 /PRNewswire/ -- OneSmart International Education Group Limited ("OneSmart" or the "Company") (NYSE: ONE) today announced the approval by the board of directors of the Company of the suspension of all of the Company's education programs and learning centers in China, primarily due to challenges posed by recent changes in the relevant policy and regulatory landscape in China's private educational service industry and the resulting operational difficulties experienced by the Company.  The Company also announced that its independent directors Liang (Mason) Xu and Yan Gong had resigned from the board recently. 

The Company intends to appoint two new independent directors in due course.

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and 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," "confident" and similar statements. OneSmart 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 report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about OneSmart's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: OneSmart's goals and strategies; its future business development, financial condition and results of operations; its ability to continue to penetrate premium K-12 after-school education services market; diversify and enrich our education offerings; enhance the development and management of our teacher team and teaching materials; competition in our industry in China; its ability to maintain and expand online education presence; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect our students' information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and OneSmart does not undertake any obligation to update such information, except as required under applicable law.

About OneSmart

Founded in 2008 and headquartered in Shanghai, OneSmart International Education Group Limited is a leading premium K-12 education company in China. Our vision is to be the most trusted and heartful high-tech education company and our mission is POWER LEARNING changes the future with technology advancement. Our company culture is centered on the core values of customer focus, excellence, integrity, and technology and innovation.

For more information, please contact:
OneSmart
Ms. Ida Yu
+86-21-2250-5891
E-mail: ir@onesmart.org

ICA (Institutional Capital Advisory)
Mr. Kevin Yang
Phone: +86-021-8028-6033
E-mail: onesmart@icaasia.com

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SOURCE OneSmart

FAQ

What led to the suspension of OneSmart's education programs?

The suspension was primarily due to challenges posed by recent changes in China's private educational service industry regulations.

Who resigned from the board of OneSmart?

Independent directors Liang (Mason) Xu and Yan Gong have resigned from the board.

What is the stock symbol for OneSmart?

The stock symbol for OneSmart is ONE.

What is the company's plan regarding new board members?

OneSmart intends to appoint two new independent directors in due course.

How might the suspension affect OneSmart's future?

The suspension of programs could significantly impact OneSmart's operational capabilities and market presence in China.