SHENZHEN, China, July 10, 2020 (GLOBE NEWSWIRE) -- Meten EdtechX Education Group Ltd. (Nasdaq: METX) (“Meten EdtechX” or the “Company”), a leading English language training (“ELT”) service provider in China, today provided shareholders and the market a business update regarding the impact of the COVID-19 pandemic on the Company’s business and how the Company is coping with it.
As of June 30, 2020, 95 out of the Meten EdtechX’s 133 physical sites have reopened. Most of the sites that remain closed were located in Beijing, which recently experienced additional COVID-19 cases. Different from some of the Company’s competitors who suffered more heavily because they do not have solid online channel, the Company offers both online and in-person courses, and students do not have to worry about missing classes even if they cannot go to a physical learning center due to COVID-19 containment policies.
The Company has been conducting cost reduction and retrenchment exercises and its monthly cash flow is expected to turn positive in July 2020 after being affected by the pandemic in the first half of the year. In addition, the Company is also exploring the area of multi-language training services besides the Japanese language training it is currently offering to its clients.
Mr. Alan Peng, Chief Executive Officer of Meten EdtechX commented: “we are committed to deliver education service of top quality while minimizing the COVID-19’s impact on our clients and employees. Despite the uncertainties brought by the pandemic, our business has recovered and grown much faster than we expected. Looking forward, we remain confident in our growth strategy, unique market position and bright prospect of future development.”
This update is preliminary in nature, based on information available to management as of the date of this release, including with respect to those impacts of the COVID-19 that are currently known to management, and is subject to further changes based on the duration and severity of the ongoing COVID-19 pandemic. Meten EdtechX undertakes no obligation to update the information in this release in the event facts or circumstances change after the date of this release.
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About Meten EdtechX
Meten EdtechX is a leading ELT service provider in China, delivering English language and future skills training for Chinese students and professionals. Through a sophisticated digital platform and nationwide network of learning centers, the Company provides its services under three industry-leading brands: Meten (adult and junior ELT services), ABC (primarily junior ELT services) and Likeshuo (online ELT). It offers superior teaching quality and student satisfaction, which are underpinned by cutting edge technology deployed across its business, including AI-driven centralized teaching and management systems that record and analyze learning processes in real time.
The Company is committed to improving the overall English language competence and competitiveness of the Chinese population to keep abreast of the rapid development of globalization. Its experienced management is focused on further developing its digital platform and expanding its network of learning centers to deliver a continually evolving service offerings to a growing number of students across China.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the Company’s projection on cash flow, plan for multi-language training services, assessment on the impact of the COVID-19 pandemic and the quotations from management in this announcement, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the impact of the COVID-19 pandemic, our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our “Meten” brand; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the English language training sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese English language training and private education market; Chinese governmental policies relating to private educational services and providers of such services; health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.
Source: Meten EdtechX Education Group Ltd.