Home » Giant Education in Mainland China announces suspension of class tuition, unable to fully refund | Education and training industry | Bankruptcy | Double reduction

Giant Education in Mainland China announces suspension of class tuition, unable to fully refund | Education and training industry | Bankruptcy | Double reduction

by admin

[Epoch Times September 01, 2021](Epoch Times reporter Liu Yi comprehensive report) On August 31, Giant Education, a long-established education institution in mainland China, announced on its official WeChat account that due to operating difficulties, the Giant School will not be able to continue to provide students Provide teaching services, and Giant Group has been unable to complete all student refunds.

On August 31, Giant Education released a “Letter to Giant Students” on its official WeChat account, stating that due to business difficulties, it will not be able to continue to provide teaching services to students in the fall, nor will it be able to meet parents’ refund requirements. The company has contacted many excellent training institutions to provide courses, and also coordinated many resources through third-party institutions, hoping to use these courses and resources to help Giant’s students convert unconsumed tuition fees and reduce parents’ losses.

According to the news from the Mainland’s “Daily Economic News” on September 1, Giant Education informed parents on August 10 that all summer classes will be completely suspended from August 11, and unused hours can be postponed to fall.

According to an internal letter from Giant Education, the recent multi-party pressures of the epidemic, compliance governance and business transformation have caused Giant Education’s operations to be temporarily in trouble.

Employees of Giant Education revealed that they did not receive July’s wages on time on the August 10 payday, and the company did not pay social security on time. A head of the campus who has served in Giant Education for four years said: “The management has not paid wages since June until now. The employees’ wages have not been paid in July, and social security has been suspended.”

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According to upstream news reports, the parents revealed that after giving their children a few lessons in the “Giant Education” class during the summer, the teacher said that they were unable to attend classes because their wages had been owed for more than two months. Then they contacted Giant Education to find out the situation. Respond clearly.

The staff of Giant Education said that the funding chain of Giant Education has been broken. There are currently about 13,000 people who have registered for refunds, but there is no timetable for when the refunds will be received.

“Daily Economic News” reported that in early August, the director and CEO of Giant Education, Luo Moming, spoke in the company’s internal group, saying that with the implementation of the “double reduction” policy, Giant Education is facing extremely difficult transformation and greater operating pressure. Hope that the core Elite shareholder education can lend a helping hand.

On August 11, Luo Moming told the company’s employees that Elite Education has decided not to invest funds in Giant Online School. At present, the company has no way to pay salaries normally. The company is communicating with the leaders of the Beijing Municipal Education Commission. Teachers and employees provide employment opportunities, but no framework agreement has been formed yet.

And elite education is currently in trouble. According to the financial report, in the 2020 fiscal year, due to the huge impact of the epidemic, Elite Education lost 725 million yuan a year. In the first half of 2021, Elite Education will still have a net loss of 332 million yuan. Considering the huge impact of the “double reduction” policy in the second half of the year, 2021 will be a particularly difficult year for elite education.

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Commentator Wen Xiaogang believes that the CCP’s “double reduction” policy may become an important factor in overwhelming Giant Education. Although Giant Education did not clearly indicate that it will go bankrupt, some mainland media use “bankruptcy” to describe the suspension of classes of Giant Education. event.

Giant Education’s full name is Beijing Sunshine Giant Education Technology Co., Ltd., established in 1994, is a training institution in the field of basic education in China, targeting young people aged 5 to 18 years old. There are more than 1,000 courses in English, Chinese, mathematics, middle school science, comprehensive quality all-around courses, quality education, domestic and foreign study tours, winter and summer camps, etc. for primary and secondary schools. The company has 32 campuses in Beijing.

Editor in charge: Lin Congwen#

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