OneSmart Online Drives Strong Momentum During COVID-19 Pandemic
SHANGHAI, May 7, 2020 /PRNewswire/ -- OneSmart International Education Group Limited (NYSE: ONE) ("OneSmart" or the "Company"), a leading premium and online education platform in China, today outlined how its financial and operational performance was strongly supported by OneSmart Online throughout the period from February to April 2020 when the COVID-19 outbreak was impacting China the hardest. During the period, the Company was able to maintain the vast majority of its revenue and gross margin when compared to the same period last year. Class delivery through OneSmart Online during the period reached comparable levels to that of its offline operations prior to the COVID-19 pandemic.
The Company is driving momentum by successfully migrating the majority of its existing students and attracting large numbers of new students to its online platform while maintaining high levels of customer satisfaction. During regular customer surveys conducted during the period, OneSmart's customer satisfaction rate remained well above 90% while the refund rate fell to as low as 5% when compared with approximately 10% prior to the coronavirus outbreak. This reflects the Company's strong ability to strategically manage and operate OneSmart Online and its determination to build it into the largest premium online education platform in China over the next few years.
OneSmart Online serves the core needs of students and parents to improve test scores by leveraging its customized approach to teaching based on student aptitude. This is a key differentiator from online big class format or other courses. The online K-12 after-school education industry is massive and online education is rapidly growing in popularity since the COVID-19 outbreak began. The pursuit of teaching efficiency required by parents will drive the continuous penetration of premium personalized online educational products going forward. With this in mind, the Company's strategy to drive growth through OneSmart Online over the next five years will focus on:
- Penetrating markets in various provincial capitals and regional central cities to take 10% of local market share through the OMO model and subsequently expand deeper into surrounding tier 2-3 cities leveraging OneSmart's strong brand name and localized teaching and research methods.
- Building out OneSmart Online to its full growth potential to ensure high-quality, profitable, and sustainable growth going forward as opposed to burning cash and eroding its bottom line. OneSmart's OMO model has the benefit of carefully balancing lower customer acquisition through offline channels while rapidly scaling it up through online channels.
- Setting a target of serving more than 1 million customers and generating over RMB10 billion in sales.
Mr. Steve Zhang, Chairman and Chief Executive Officer of OneSmart, commented, "What we have achieved in the most challenging business environment in modern history demonstrates the adaptability and resilience of OneSmart's business model and employees. The Company is ideally positioned to further gain market share by quickly adapting to the needs of students online. OneSmart's innovative online platform incorporates AI-powered smart assessment systems and a robust online teaching bank that it built over the past decade to ensure students can quickly and smoothly acclimate to an online learning experience. Market sentiment is quickly improving with most of the provinces in China having announced back-to-school dates and the postponement of ZhongKao – the Senior High School Entrance Examination, and GaoKao – the National College Entrance Examination, which will allow students more time to prepare for the exams in afterschool learning centers. We see enormous growth potential ahead and will take advantage of any opportunities that arise as the industry consolidates after the pandemic."
Founded in 2008 and headquartered in Shanghai, OneSmart International Education Group Limited is a leading premium online education platform in China. Our vision is to be the most trusted and heartful high-tech education company and our mission is POWER LEARNING changes the future with technology advancement. Our company culture is centered on the core values of customer focus, excellence, integrity, and technology and innovation.
The Company has built a comprehensive premium K-12 education platform that encompasses OneSmart VIP business (Premium K-12 1-on-1 training services), HappyMath (Premium math education programs), and FasTrack English (Premium English education programs). We also offer our comprehensive online classes through OneSmart Online, our premium online education services platform. As of November 30, 2019, OneSmart operates a nationwide network of 430 learning centers across 35 cities in China.
For more information on OneSmart, please visit http://www.onesmart.investorroom.com.
For more information, please contact:
Ms. Rebecca Shen
Mr. Christian Arnell
In the US
Ms. Linda Bergkamp
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