RISE Education Cayman Ltd (REDU) has seen a decrease of 10.81% in the premarket. However, the last trading session closed at $0.74 with an incline of 17.46%.
REDU announces management change
REDU stated on 31st August 2021 that Mr. Warren Wang has opted to depart from his position as CFO for personal reasons. Now Mr. Alex Wu will be the Company’s acting CFO. To facilitate a smooth transition of REDU, Mr. Warren Wang will stay with REDU until September 30, 2021. Firstly, Mr. Wu has a wealth of knowledge in the areas of corporate finance, technology, and management. He is a member of Bain Capital Private Equity’s Asian Pacific private equity team. As a portfolio business of Bain Capital Private Equity, Mr. Wu has been in charge of Rise.
Secondly, Mr. Wu worked at PricewaterhouseCoopers Consulting before joining Bain Capital Private Equity in 2017. Thirdly, Mr. Wu has planned and executed transformation initiatives for airlines and telecoms firms. Lastly, Mr. Wu graduated from Peking University with a bachelor’s degree in computer science and the University of New South Wales with an MBA.
REDU Updates on Quarterly Earnings Release
REDU announced on 16th August 2021 that in view of recent regulatory changes, it would not be issuing a quarterly results report at this time. If additional information becomes available, REDU will issue an update at the appropriate time.
REDU updates new regulations
On 26th July 2021, the General Office of the CPC Central Committee and the General Office of the State Council jointly announced the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education. REDU is evaluating the Opinion’s potential impact on its business and considering appropriate compliance measures.
REDU will continue to provide its educational services in accordance with all applicable rules and regulations, including those that will be adopted in response to the Opinion’s policy directives. The Company anticipates that the Opinion, as well as the rules and regulations that will be implemented in response to the Opinion’s policy instructions, will have a significant negative impact on its English language teaching business.
Second Quarter 2021 New Enrollments and Students in Class
On 14th July 2021, REDU announced new updates for the second quarter of 2021, as well as students enrolled in classes as of June 30, 2021. Firstly, in the second quarter of 2021, 3,582 new students registered in Rise regular courses. Secondly, 6,790 new students registered in other REDU courses (including Rise Up, Can-Talk, other Rise online courses. Thirdly, the number of new students registered in REDU regular courses remain unchanged from the second quarter of 2020. Lastly, REDU’s business success in these two quarters was influenced by various market situations.
