GSX Responses to Citron's Part III Report
On the morning of May 7 US Time, Citron issued its Part III of short reports against GSX. The report is full of false allegations. We understand the short attack mechanism in the capital market, but we strongly condemn the irresponsible libels which aim to hurt the company's reputation and pursue improper benefit.
1. Those WeChat official accounts in the list, are purely for the purpose of marketing and promotion. Posts on those accounts are related to education content and aim to provide informative support to students and parents. We want to emphasize that, there are over 1 billion daily active users on WeChat, and we regard WeChat as one of the super effective promotional channels.
2. All our related party transactions have been fully disclosed in the annual report on 20-F.
3. Paid enrollments, as disclosed in GSX's financial report, are calculated on the time of payment.
This means a large part of the paid enrollments in the fourth quarter of 2019 will be attending courses in the first half of 2020. With the additional paid enrollments in the first quarter of 2020, the students attending our Spring courses have reached around 1.2 million.
GSX Techedu Inc
May 7th, 2020