Tan Dong Phuong Education Group announced to close 1,500 tutoring centers, after the Chinese government tightened regulation of this field.
The decision was announced by Du Man Hong, founder of Tan Dong Phuong Education Group, on Douyin’s social network on November 7. The group will donate 80,000 sets of tables and chairs to public schools in rural China.
Tan Dong Phuong will also close K-9, which teaches students from grades one to nine, at the end of November, according to a statement last month by Koolearn Technology, a subsidiary of Tan Dong Phuong listed on the stock exchange. Hong Kong stock. K-9 contributes 40% of Koolearn’s revenue.
After closing 1,500 tutoring facilities, Tan Dong Phuong will continue to provide adult teaching services, including foreign language teaching, exam preparation and study abroad counseling.
Du Man Hong claims to have enough cash in reserve to reimburse customers for tuition fees and pay salaries owed to employees.
Du Min Hong, 59, is the face of China’s thriving tutoring industry, serving parents and children who want to rise to the top of China’s competitive education system. this country.
He has grown Tan Phuong Dong from an English exam preparation facility in Beijing to an education group listed on the New York Stock Exchange, becoming China’s largest private education company.
However, the Chinese government’s decision to tighten the state of private tutoring in late July has dealt a blow to New Orient. Under the new rules, exam preparation schools in grades one through nine are banned from teaching subjects in the general curriculum. Extra-teaching activities on weekends or public holidays, summer and winter breaks, are also prohibited.
Many social media users praised Du Man Hong for bravely fulfilling his financial obligations to employees in the tutoring industry in China, where many founders who used to run away with customers’ money, leaving large debts. for company.
“Du Man Hong has proven himself to be a true gentleman,” wrote one social media user. “He was standing in the rain but still trying to cover others with an umbrella,” another praised his decision to donate tables and chairs to a rural school.
Tan Phuong Dong’s share price is down 90% from its February peak, but Du Man Hong still owns a personal fortune of $1.1 billion, according to Forbes estimates.
Hong Hanh (Follow SCMP)