[ET Net News Agency, 26 October 2021] Koolearn Technology Holding Limited (01797) said
in light of the new regulations and with a view to ensuring that the group and its
operations fully comply with all applicable legal and regulatory requirements, the board
has decided that the group would cease operating after-school tutoring services for
academic subjects included in China's compulsory education system which is offered to
kindergarten to year nine students in mainland China. The cessation is expected to take
effect by the end of November 2021.
The cessation will have a material adverse impact on the group's revenues for the
financial year ending 31 May 2022 and subsequent periods; however, the board expects that
the group's profits would be positively affected given that the K-12 business segment was
loss making for the two financial years ended 31 May 2021. The board estimates that the
K-9 business represents approximately 58% to 73% of K-12 education segment in terms of
revenue contribution for the two financial years ended 31 May 2021. (RC)