Source: Puxin Limited Offical Website   https://www.pxjy.com/

Puxin Limited (NYSE: NEW) ("Puxin" or the "Company"), a China-based education company that offers a full spectrum of K-12 and study-abroad tutoring programs, announced that it received a notice (the "Notice") from the New York Stock Exchange (the "NYSE") dated August 18, 2021, notifying Puxin that it is below compliance criteria in connection with the performance of trading price of Puxin's American depositary shares (the "ADSs").

Pursuant to Section 802.01C of the NYSE's Listed Company Manual, a company will be considered to be below compliance criteria if the average closing price of its security is less than US$1.00 over a consecutive 30 trading-day period. Once notified, the company must bring its share price and average share price back above US$1.00 within six months following receipt of the notification. The Company can regain compliance with Section 802.01C at any time during the cure period if the share price is at least US$1.00 on both the last trading day of any calendar month within the six-month cure period and the average share price over the 30 trading days preceding the end of that month.

In the event that at the expiration of the six-month cure period, both a US$1.00 closing share price on the last trading day of the cure period and a US$1.00 average closing share price over the 30 trading-day period ending on the last trading day of the cure period are not attained, the NYSE will commence suspension and delisting procedures.

According to Puxin, the Notice has no immediate impact on the listing of the Company's ADSs, which will continue to be listed and traded on the NYSE during the cure period subject to continued compliance with the other listing requirements of the NYSE. To address this issue, the Company intends to monitor the market conditions of its listed securities and is still considering its options.

On Feb.17, 2021, Puxin's stock price hit a record high, closing at $8.81, and falls since then. On July 23, it closed at $0.84, a 33% decrease compared to the last trading day. By the end of August 20, it closed at $0.56. Like Puxin, other China-based K-12 after-school private education providers, such as TAL Education(NYSE: TAL) and New Oriental(NYSE: EDU) have also precipitated a stock freefall. The slump of the stock price was driven by the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education (the "Opinion") issued by the General Offices of the Communist Party of China Central Committee and the General Office of the State Council On July 24, 2021.

On July 27, Puxin responded that "the Company will follow the requirements under the Opinion and comply with all applicable rules and regulations in providing educational services, including those to be adopted by local governmental authorities following the Opinion. The Company is carefully considering appropriate compliance measures in response to the Opinion, and expects such measures to have material adverse impact on the Company's after-school tutoring services, results of operations and prospectus. The Company will proactively seek guidance from, and cooperate with, the government authorities in connection with its efforts to comply with the Opinion and any related rules and regulations." 

Puxin's Q1 2021 financial results ended March 31, 2021, show that net revenues were RMB686.8 million (US$104.8 million), a decrease of 8.6% from RMB751.3 million in the first quarter of 2020. Net revenues of K-12 tutoring services achieved RMB550.6 million, accounting for 80.2% of total net revenues and growing at 5.2% year-over-year.