OneSmart Reopens Learning Centers Nationwide and Sees Solid Recovery in Cash Sales

Rhea-AI Summary

OneSmart International Education Group Limited (NYSE: ONE) announced that over 90% of its learning centers in China have reopened as of August 4, 2020, while continuing to offer online education for affected areas. The company's core tutoring service, OneSmart VIP, which generated 79% of total revenue in fiscal 2019, has seen cash sales rise by 29% year-over-year in July 2020. The renewal and referral rates also improved to 37% and 31%, respectively. OneSmart aims to resume growth momentum in its education business as the new semester begins in September.

Positive

• Over 90% of learning centers reopened nationwide.
• OneSmart VIP cash sales increased by 29% year-over-year in July 2020.
• Renewal rate for OneSmart VIP reached 37%, and referral rate reached 31% in July 2020.
• Strong demand for personalized tutoring services expected for new academic year.

Negative

• None.

SHANGHAI, Aug. 4, 2020 /PRNewswire/ -- OneSmart International Education Group Limited (NYSE: ONE) ("OneSmart" or the "Company"), the leading premium K-12 education services company in China, today announced that it has reopened more than 90% of its nationwide learning centers, including OneSmart VIP, HappyMath and FasTrack English. OneSmart continues to take appropriate measures to protect the health and safety of all of its employees and students during this time. Students in cities (including Beijing, Urumqi, etc.) affected by the resurgence of COVID-19 will continue to have access to OneSmart Online to facilitate their ongoing education until further notice.

OneSmart VIP, the Company's core premium K-12 one-on-one tutoring business, is well-known for its effective results for academic performance. In the fiscal year 2019, the net revenues from OneSmart VIP business accounted for 79% of the Company's total net revenues. Enrollments and cash sales for this premium program recover quickly following the reopening of cities all over China and resumption of school activities. After the National College Entrance Exam in July, commonly known as the Gaokao, OneSmart has seen a strong demand in personalized tutoring services during the summer vacation and the new academic year.

OneSmart VIP cash sales in July increased by 29% year-over-year, nearly in line with the year-over-year growth rate between September 2019 through January 2020, the first five months of fiscal year 2020 and prior to the coronavirus outbreak in China. In July 2020, OneSmart VIP's renewal rate was 37%, and referral rate was 31%, which were both higher compared with July 2019. These positive results were due to the Company's continuous efforts to improve the customer experience and personalize learning for each individual student. The Company believes it is on pace to resume its year-over-year growth momentum for its young children education business (including HappyMath and FasTrack English) after the new semester begins in September.

Mr. Steve Zhang, Chairman and Chief Executive Officer of OneSmart, commented, "Over the past few months of the health pandemic, we have taken our integrated educational experience to the next level for students and parents. With the dedication of our OneSmart VIP teachers and advisors, we continue to help students excel academically through OneSmart Online and its fully integrated OMO platform and premium content. Trust and customer loyalty, which are our key priorities when it comes to our premium education services business, combined with our high-quality services and innovative technology, should help us fuel our growth over the long term."

About OneSmart

Founded in 2008 and headquartered in Shanghai, OneSmart International Education Group Limited is a leading premium K-12 education services 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.

OneSmart's service offerings comprise of OneSmart VIP business (Premium K-12 1-on-1 tutoring services), HappyMath (Premium math education programs for young children), and FasTrack English (Premium English education programs for young children). We also offer our comprehensive online classes through OneSmart Online, our premium online tutoring services platform. As of November 30, 2019, OneSmart operated a nationwide network of 430 learning centers across 35 cities in China.

For more information on OneSmart, please visit http://ir.onesmart.org.

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.

For more information, please contact:

OneSmart
Ms. Ida Yu
+86-21-2250-5891
E-mail: ir@onesmart.org

Christensen

In China
Mr. Andrew McLeod
Phone: +86-10-5900-1548
E-mail: amcleod@christensenir.com 

In the US
Mr. Tip Fleming
Phone: +1-480-614-3004
Email: tfleming@ChristensenIR.com

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SOURCE OneSmart International Education Group Limited

FAQ

What recent update did OneSmart (NYSE: ONE) announce about its learning centers?

OneSmart announced that over 90% of its learning centers in China have reopened.

How did OneSmart VIP's cash sales perform in July 2020 compared to the previous year?

OneSmart VIP's cash sales increased by 29% year-over-year in July 2020.

What percentage of OneSmart's total revenue did the OneSmart VIP business account for in fiscal 2019?

OneSmart VIP business accounted for 79% of the Company's total net revenues in fiscal 2019.

What are the renewal and referral rates for OneSmart VIP in July 2020?

The renewal rate was 37%, and the referral rate was 31% in July 2020.

What is the outlook for OneSmart's education business in the upcoming academic year?

OneSmart expects to resume its growth momentum in its young children's education business as the new semester begins in September.