Rise education provides update on new regulations

Beijing, july 26, 2021 /prnewswire/ -- rise education cayman ltd ("rise" or "the company") (nasdaq: redu), a leading education service provider that focuses on the development of cognitive and aptitude training for young children in china, announced that, on july 24, 2021, china's official state media, including xinhua news agency and china central television, announced the opinions on further alleviating the burden of homework and after-school tutoring for students in compulsory education (the "opinion"), issued by the general office of the cpc central committee and the general office of the state council. the opinion contains high-level policy directives on the requirements and restrictions related to online and offline after-school tutoring services, including, among others, (i) institutions providing after-school tutoring services on academic subjects in china's compulsory education system, or academic ast institutions, are required to be registered as non-profit; (ii) no approval will be granted to new academic ast institutions or new training service providers for pre-school children; (iii) the current registration-based regime for online academic ast institutions will be changed to an approval-based regime; (iv) foreign ownership in academic ast institutions is prohibited, including through contractual arrangements, and companies with existing foreign ownership are required to rectify the situation; (v) listed companies are prohibited from acquiring academic ast institutions or raising capital from the capital markets to invest in academic ast institutions; (vi) academic ast institutions are prohibited from providing tutoring services on academic subjects in compulsory education during public holidays, weekends and school breaks; (vii) academic ast institutions are required to follow the fee standards to be established by relevant authorities; and (viii) online training to pre-school children and offline training on academic subjects in compulsory education to pre-school children are prohibited.
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