On February 16, gaotu announced on its official website that it would stop providing discipline related counseling services to high school students before the end of February 2022, which is expected to have a significant adverse impact on the company's income in 2022 and beyond.
Source: gaotu official website
The announcement shows that according to the latest regulatory requirements of the Beijing municipal government, extracurricular counseling services for high school students should strictly follow the opinions on further reducing the homework burden and after-school training burden of students in the stage of compulsory education issued by the general office of the CPC Central Committee and the general office of the State Council in July 2021.
Gao Tu said that in the future, we will use the resources and expertise accumulated by K12 discipline counseling services in the past to focus on professional education services, vocational education services and digital products.
In view of the good start of non-k12 business, gaotu further expressed confidence to achieve profitability and positive operating cash flow as early as the fourth quarter of 2021.
