On Monday, several China media outlets reported that DFUB, a subsidiary of New Oriental, had decided to close its tutoring business for Grade 12 students. Zhu Yu, Vice President of Koolearn and CEO of DFUB, plans to teach in mountainous and underdeveloped areas for one or two years to continue to make his own contribution to educational public welfare undertakings.
Koolearn Technology said this action is in accordance with the national “double reduction” policy, adding that the company has abundant funds and will be able to refund students’ fees in full and compensate employees.
Today, Koolearn Technology’s stock price is HK $4.75 per share, down 14.57%, while New Oriental Group’s stock price reached HK $16.06 per share, down 7.91%.
DFUB was established in 2016, which was jointly invested by New Oriental Group and Koolearn Technology. Its main business is live online courses, mainly for K-12 students. The platform takes Beijing’s teaching resources as the core foundation and spreads course content and services to third-tier, fourth-tier and fifth-tier cities over the internet.
According to the financial report previously released by Koolearn Technology, the number of paid students of DFUB’s broadcasting courses in its K12 business increased by 102% year-on-year. As of May 31, 2021, services provided by DFUB can be found in 273 cities in 27 provinces of China.