Epidemic Accelerates TAL's Online Business Which Accounts for 24% of the Total Revenue

After releasing the unaudited financial results for the fourth fiscal quarter and the fiscal year 2020, Luo Rong, CFO of TAL, introduced recently that the Group's business pressure of Q4 was enlarged as the income of Xueersi Peiyou , First Leap, Mobby and other teaching business all saw a decrease year-on-year. With the further influence of the epidemic, TAL planned to slow down offline business and accelerate the development of online business. Luo Rong expressed TAL also worried about the profit rate in Q1 due to the increasing sales expenditure. However, as the financial report estimated, the revenue will increase by 30% to 33%, which will achieve a break-even point.

Reviewing the charitable achievements during the epidemic, TAL established a 100-million-yuan foundation, of which 80 million yuan for educational foundation and 20 million yuan were donated to Wuhan Charity. The funding has helped the areas with severe conditions in Hubei Province gain support to establish online learning platforms, update online learning technology, and design teaching plan. By the end of February 2020, TAL's online business has covered learners from the prenatal education stage to the group who are going to study abroad.