Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, may, should, potential, continue, expect, predict,
anticipate, future, intend, plan, believe, is/are likely to, estimate and similar statements. Among other things, the outlook for the fourth quarter and full fiscal
year 2018 and quotations from management in this announcement, as well as the Companys strategic and operational plans (in particular, the anticipated benefits of strategic growth initiatives, including the acquisition of Beijing Ruida, the
promotion of the Companys lifelong learning ecosystem, as well as cost control) contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic and annual reports to the SEC, in press
releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Companys beliefs and expectations, are
forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to
the following: our goals and growth strategies; future prospects and market acceptance of our courses and other products and services; our future business development and results of operations; projected revenues, profits, earnings and other
estimated financial information; projected enrollment numbers; our plans to expand and enhance our courses and other products and services; competition in the education and test preparation markets; and Chinese laws, regulations and policies,
including those applicable to the Internet, Internet content providers, the education and telecommunications industries, mergers and acquisitions, taxation and foreign exchange.
Further information regarding these and other risks is included in the Companys annual report on Form
20-F
and
other documents filed or furnished with the SEC. All information provided in this press release is as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement, except as required under
applicable law.
Statement Regarding Unaudited Financial Information
The unaudited financial information set forth in this press release is preliminary and subject to adjustments. Adjustments to the financial statements may be
identified when audit work is performed for the
year-end
audit, which could result in significant differences from this preliminary unaudited financial information.
Use of
Non-GAAP
Financial Measures
To supplement the Companys consolidated financial results presented in accordance with U.S. generally accepted accounting principles, or GAAP, the
Company uses the following measures defined as
non-GAAP
financial measures:
non-GAAP
net income, operating income, gross profit, cost of sales, selling expenses, general
and administrative expenses, net income margin, operating margin, gross profit margin and basic and diluted earnings per ADS and per share. The presentation of these
non-GAAP
financial measures is not intended
to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these
non-GAAP
financial measures, please see the table
captioned Reconciliations of
non-GAAP
measures to comparable GAAP measures set forth at the end of this release.
10