17 Education & Technology Group Inc. Provides Business Updates

BEIJING, Dec. 06, 2021 (GLOBE NEWSWIRE) -- 17 Education & Technology Group Inc. (Nasdaq: YQ) (“17EdTech” or the “Company”), a leading education technology company in China today provided business updates following the recent regulatory developments relating to after-school tutoring services, including the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring on Students in Compulsory Education, published in July 2021 by the General Office of the CPC Central Committee and the General Office of the State Council (the "Opinion"), also known as the double reduction policy (the “Double Reduction Policy”), and the related implementation rules, regulations and measures promulgated by competent authorities.

In compliance with the Opinion and applicable rules, regulations and measures, the Company plans to cease offering tutoring services related to academic subjects to students from kindergarten through the last year of senior high school ("K-12 Academic AST Services") in mainland China by the end of 2021. The Company expects that the cessation will have a substantial adverse impact on the Company's revenues for the fiscal year ending December 31, 2021 and subsequent periods. In the fiscal years ended December 31, 2019 and 2020, revenues from K-12 Academic AST Services accounted for a substantial majority of the Company's total revenues for each fiscal year.

The Company will continue to explore opportunities in educational products and services that are not related to K-12 Academic AST Services in accordance with relevant rules and regulations.

Leveraging its extensive knowledge and expertise in serving China’s education authorities, schools, teachers and students over the last ten years, the Company further intends to shift its focus and resources towards opportunities to facilitate the digital transformation and upgrade at Chinese schools, with a focus on improving the efficiency and effectiveness of core teaching and learning scenarios such as homework assignments. The Company has already entered into cooperation agreements with district education authorities, including those in Beijing and Shanghai, to explore and develop products and services for data-driven personalized learning and “AI + education.” The project in Shanghai Minhang district was named as one of the 10 case studies for the implementation of the “Double Reduction Policy” by the Ministry of Education.