SHENZHEN, China, Dec. 17, 2020 (GLOBE NEWSWIRE) -- Meten EdtechX Education Group Ltd. (Nasdaq: METX) (“Meten EdtechX” or the “Company”), a leading omnichannel English language training (“ELT”) service provider in China, today announced that it expects to increase prices of its products under the impact of the COVID-19 pandemic this year.
As a key player in the Chinese ELT market, Meten EdtechX has further strengthened its pricing power. The Company intends to increase the prices of its products by approximately 5%. This move is expected to increase the Company’s gross billings by approximately RMB80 million, net profit by approximately RMB60 million, and earnings per share by 50% in 2021. The net profit of Meten EdtechX will likely rapidly increase after hitting bottom during the COVID-19 pandemic in 2020.
In addition, Meten EdtechX is building more high-end SVIP courses for China's high-net-worth students/users. The price of the new SVIP courses is expected to be approximately RMB200,000 per student per year. Meten EdtechX will provide students/users with door-to-door teaching classes and a three-for-one attentive teaching service. The new SVIP courses will be offered in more than 20 cities across China to extend the Company’s high-end business.
As of September 30, 2020, Meten EdtechX had 123 learning centers (including 110 self-operated learning centers and 13 franchised learning centers). The Company believes that Meten EdtechX has become the only choice for adults in most cities in China to learn English offline. Based on this competitive advantage, Meten EdtechX has also continued to accelerate the development of junior and online ELT businesses to build a comprehensive education and training platforms.
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.
For more information, please visit: https://investor.metenedu-edtechx.com.
Safe Harbor Statement
This announcement contains forward-looking statements that involve risks and uncertainties. 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. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. 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 outbreak, 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.
For investor and media inquiries, please contact:
Meten EdtechX
Wendy Wang
+86 136-5142-6060
wendy_wsr@meten.com
Ascent Investor Relations LLC
Tina Xiao
+1 917-609-0333
tina.xiao@ascent-ir.com