Benzinga | Dec 23, 2021 05:45AM EST

Four Seasons Education Announced Plans to Cease Offering Tutoring Services Related to Academic Subjects to Students From Kindergarten Through Grade Nine in Mainland China by the End of 2021

Four Seasons Education (Cayman) Inc. ("Four Seasons Education" or the "Company") (NYSE:FEDU), a leading Shanghai-based education company, today provided updates on the Company's business operations 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 for 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") and the related implementation rules, regulations and measures promulgated by competent authorities.

As part of its efforts to fully comply 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 grade nine ("K-9 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 February 28, 2022 and subsequent periods. In the fiscal year ended February 28, 2021, the Company generated a substantial majority of its revenues from K-9 Academic AST Services.

Building on its strong curriculum development capabilities, exceptional educational resources and a team well-versed in the high quality education content, the Company will continue to operate and develop its non- K-9 Academic AST Services business, and will further explore other opportunities to provide educational services in accordance with relevant rules and regulations.

The Company is committed to fully complying with the policy directives in the Opinion and any related implementation rules, regulations and measures adopted by the central and local governments of China. The Company will continue to seek guidance from and work constructively with the government authorities in connection with the cessation of its K-9 Academic AST Services, as well as other compliance efforts. The Company will continue developing and improving its services and update its shareholders as appropriate.