Koolearn, subsidiary of New Oriental, cuts K-9 tutoring business
2021-10-26 18:42:54

On Oct.25, 2021 Koolearn Technology Holding Limited (Stock code:1797) (Koolearn, or the "Company"), the Hong Kong-listed online tutoring arm of New Oriental(NYSE: EDU) announced that it will stop offering subject-based after-school tutoring services to students of K-9 or compulsory education period in mainland China, in light of the new regulations on after-school tutoring services. The cessation will take effect by the end of November 2021.  

According to the announcement, the cessation will adversely impact its revenue for the financial year ending May 31, 22 and subsequent periods as K-9 business contributes approximately 58% to 73%  of the K-12 education segment in terms of revenue. The Company expects Koolearn's profit would be positively affected given that its K-12 business was not realizing profits for the two financial years ended May 31, 2021.  

Koolearn, offers online courses covering three segments: college, K-12, and pre-school online education. In Sep, JMDedu reports that Dongfang Youbo, Koolearn's subsidiary that provided K-12 education, announced to suspend its academic tutoring services for K-12 students

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