Sunlands Technology Group (NYSE:STG)

BEIJING, June 11, 2020 /PRNewswire/ -- Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education, today commented on the May 2020 publication of the China Ministry of Education's National Statistical Report of Education Development in 2019 (the "Education Report"). The Education Report revealed strong growth in post-secondary enrollment in China, including the continuing multi-year recovery in adult continuing education, driven by various government policies to encourage and promote higher education.

According to the Education Report, in 2019, adult post-secondary enrollment in China exceeded 3 million for the first time, growing 10.6% year-over-year. Additionally, the number of registrations for Self-Taught Higher Education Examinations ("STE"), which are state-administered exams in China for learners pursuing associate diplomas or bachelor's degrees, grew 9.6% to almost 6 million, following strong growth in 2018 that reversed the trend of sharp declines in 2016 and 2017.

In general, due to busy work schedule and lack of an appropriate learning environment for many STE students, in addition to more than ten mandatory examinations required to graduate, the overall student pass rate for self-taught examinations is historically quite low. Between 2012 and 2016, the average passing rates for STE exams achieved by self-taught students and students enrolled in private schools were 43.4% and 35.6%, respectively[1]. In comparison, Sunlands' students' average pass rate for STE exams was significantly higher, achieving 61.1% in 2019, and demonstrating the effectiveness of the Company's online STE courses and teaching paradigm. Equipped with a deep understanding of effective techniques for adult learning and exam preparedness, especially as it relates to self-taught learners, the Company has been capturing opportunities in the field of self-examination, and becoming a leader in this market.

Also indicated in the Education Report was a 2019 rise in secondary vocational school enrollment for the first time in the past eight years, with enrollment reaching 6 million. Enrollment in post-secondary vocational school also grew significantly by 31% to 4.8 million, surpassing university enrollment by 12.1%. This was driven by the Chinese government's vigorous promotion of, and emphasis on, vocational education. 

For students and graduates of vocational schools, Sunlands offers a series of vocational and professional certificate training courses covering various industries and professions, including accounting, human resources, teaching and finance. Sunlands' online one-to-many streaming model helps students learn anytime and anywhere, providing a perfect solution to vocational education's need for simultaneous learning and practicing. In addition, Sunlands' STE and master-degree oriented offerings are ideal for those vocational school graduates pursuing further degree advancement.

Another notable trend that we inferred from the Education Report was the growing number of people that have become increasingly dissatisfied with ending their educational pursuits once they have achieved their undergraduate degree. Of note, the size of postgraduate student enrollment has continued to increase over the past eight years. In 2019, the number of enrolled master's student reached over 800,000, growing 6.4% compared with 2018. In 2020, enrollment is expected to expand to over 1 million, as the Ministry of Education increases admission quotas in an effort to ease job vacancies and ensure better and applicable training for job openings in the market. At the same time, the number of students applying for postgraduate programs has also been recording historical highs, with the number expected to reach 3.4 million in 2020[2]. In order to capture this growth opportunity, Sunlands has launched numerous online training services for postgraduate entrance examinations, including domestic MBA training, part-time master's and international master's programs. In the first quarter of 2020, Sunlands' gross billings from its master's degree-oriented programs accounted for 22.5% of its total gross billings, increasing significantly from 12.1% in 2019.

Mr. Tongbo Liu, Chief Executive Officer of Sunlands, commented, "the Education Report further demonstrates the tremendous market opportunity when it comes to post-secondary and professional education in China. To support our students with the most effective education techniques as they navigate learning within their already busy schedules, we have developed a unique system combining teachers, mentors and artificial intelligence that offers not only community-based interactive online lectures, but also after-school supervision and student care that help our students better manage the balance between work and study. With a research and development team of nearly a thousand personnel and through the use of advanced technologies such as big data analytics and artificial intelligence, we are able to help our students improve both learning efficiencies and their examination pass rate. We are committed to continuing broadening our online course offerings by including additional content and subjects for STE, master's degree-oriented and professional certificates programs, in order to meet a diverse set of continuing educational needs, keep up with the latest trends and capture growth opportunities."

First Quarter 2020 Financial Results

• Net revenues were RMB565.1 million (US$79.8 million), representing a 0.2% increase year-over-year.
• Net loss was RMB65.6 million (US$9.3 million), representing a 41.9% decrease year-over-year. Net loss margin, defined as net loss as a percentage of net revenues, decreased to 11.6% from 20.0% in the first quarter of 2019.

"Sunlands delivered solid first quarter results despite significant challenges stemming from the COVID-19 pandemic, specifically the lockdown of our Wuhan campus, which affected almost half of our sales force, and the postponement of national STE exams from April to August that has resulted in delay in student enrollments for our preparation classes," said Mr. Tongbo Liu, Chief Executive Officer of Sunlands." Our capacity utilization was significantly limited due to the pandemic and gradually improved to about 80% during the quarter, thanks to the extraordinary efforts of our employees and our robust online infrastructure. We achieved gross billings of RMB516.8 million in the first quarter, in addition to profitability improvement with net loss margin narrowed by 8.4 percentage points to 11.6%, as a result of our prudent cost and expense management. In addition, during the pandemic, we offered online courses of considerable value for free and made several donations including 5 million RMB in cash to Wuhan to show our support.

"We are also pleased to see continued loyalty and enthusiasm for learning demonstrated by our students. In the first quarter, total time spent on live streaming classes and number of quizzes taken per active user increased 19% and 21% respectively year-over-year. Inspired by people's changing behavior patterns during the lockdown , in the first quarter of 2020, we began experimenting with new approaches to student acquisition, aiming to increase sales efficiencies and student conversions. In addition, we continued to diversify our online course offerings to include more master's degree-oriented, professional certificate and non-degree programs, in order to drive new growth by catering to a wider student base, increasing our students' willingness to pay for more courses and maximizing their engagement. As the macro and market conditions continue to gradually improve, we are confident to enhance our financial and operating results for the rest of the year. In the long run, we will further focus on student acquisition strategies, diversification of our course offerings, upgrade of our offerings and investment in IT infrastructure, all in an effort to better satisfy our students' needs and strengthen our brand value."

Ms. Selena Lv Lu, Chief Financial Officer of Sunlands, said, "During the first quarter, we continued our balanced approach to both revenue growth and profitability. We were pleased, especially amidst the difficulties caused by the COVID-19 outbreak, to see sustained strength in our gross profit, which increased sequentially for two quarters in a row as well as narrowing of net losses both sequentially and year-over-year. With cost structure optimization a continued priority, our operating expenses decreased 7.3%, compared with the same period last year. Looking ahead, we are optimistic that along with our new initiatives focused on student acquisition and enriched content, we can further leverage our existing infrastructure to improve both the durability and effectiveness of our business model, and ultimately drive long-term growth."

Outlook

For the second quarter of 2020, Sunlands currently expects net revenues to be between RMB500.0 million to RMB520.0 million, which would represent a decrease of 9.5% to 5.9% year-over-year.

The above outlook is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty.

BEIJING, Nov. 27, 2019 /PRNewswire/ -- Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education, today announced that its Board of Directors (the "Board") has approved an extension of the Company's share repurchase program (the "Repurchase Program") to August 23, 2020 (the "Extended Repurchase Program").

The Repurchase Program, which was originally adopted and announced in August 2018, allows for the repurchase of up to US$50 million of the Company's Class A ordinary shares in the form of American depositary shares ("ADSs") and was scheduled to expire on August 23, 2019. The Board did not make any changes to the US$50 million repurchase authorization. To date, Sunlands has repurchased approximately US$9.6 million of its Class A ordinary shares, leaving a remaining authorization of approximately US$40.4 million.

Under the Extended Repurchase Program, the Company's Class A ordinary shares may be purchased from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission (the "SEC") Rule 10b-18 requirements. It is also expected that such repurchases will be effected pursuant to a plan in conformity with SEC Rule 10b5-1.

Mr. Tongbo Liu, Chief Executive Officer of Sunlands, said, "While we strive to continue improving our performance and enhancing our leadership position in China's online post-secondary and professional education market, we also intend to reiterate through the share repurchase program that the Board and the management team have full confidence in our Company's future."

Third Quarter 2019 Financial Results

• Net revenues were RMB527.3 million (US$73.8 million), representing a 2.0% increase year-over-year.
• Basic and diluted net loss per share was RMB19.00 (US$2.66) in the third quarter of 2019.

"In the third quarter, we continued our focus on deploying a diversified set of methods towards student acquisition in an effort to both grow the total number of students utilizing our online platform and increase user stickiness," said Mr. Tongbo Liu, Chief Executive Officer of Sunlands. "Our efforts to further differentiate our offerings include providing a broader range of courses with more master's-oriented and professional certificate programs. Our unique and growing learning community adds a social and entertaining aspect to learning, in addition to our relentless pursuit of cutting-edge technologies, particularly with an emphasis on our strategy to apply AI to education. With these initiatives, as well as our significantly lower price points compared to traditional offline offerings, and our solid track record of pass rates, we expect to see positive results in gross billings and new student enrollments in the long run.  

"In addition to our strategic focus on expansion, we also continued to execute on our balanced approach to improve profitability in the third quarter by prudently managing our expenses. As a result, our net loss narrowed by 42.6% year-over-year during the quarter, to RMB129.8 million."

Mr. Steven Yipeng Li, Chief Financial Officer of Sunlands, said, "For the third quarter, our net revenues were RMB527.3 million (US$73.8 million), in line with our guidance. Our gross billings and new student enrollments declined 18.8% and 20.8%, respectively, year-over-year, as we continued to adjust our marketing strategies in view of uncertainties in student acquisition cost and macroeconomic trends. However, the rate of decrease for gross billings and new student enrollments moderated from the second quarter, showing traction of our student acquisition efforts. In addition, following a reduction in net loss in the second quarter, third quarter net loss also narrowed year-over-year to RMB129.8 million, compared with a loss of RMB226.3 million in third quarter of 2018. This was primarily driven by the decrease in administrative expenses as well as sales and marketing expenses by 30.4% and 20.8%, respectively, compared with the same quarter last year. Going forward, we will continue with steady execution of our five-pronged expansion and retention strategies, to bring long-term returns for both our customers and shareholders."

Outlook

For the fourth quarter of 2019, Sunlands currently expects net revenues to be betweenRMB520.0 milliontoRMB540.0 million, which would represent a decrease of 5.1% to 8.6% year-over-year.

First Quarter 2019 Financial Results

• Net revenues were RMB564.2 million (US$84.1 million), representing a 38.8% increase year-over-year
• Net loss was RMB112.9 million (US$16.8 million), representing a 54.0% decrease year-over-year. Net loss margin, defined as net loss as a percentage of net revenues, decreased to 20.0% from 60.3% in the first quarter of 2018.

"Diversifying student acquisition methods, increasing accessibility and enhancing user-friendly marketing techniques continue to be our focus. During the first quarter we advanced each of these initiatives, including launching a new mobile app that broadens our subject domains and deepens our content offerings," said Mr. Tongbo Liu, Chief Executive Officer of Sunlands. "This is a milestone and a starting point for Sunlands to build up our own free learning community and a self-developed traffic pool. We are actively providing and testing new content and adding additional subjects, as well as diversifying our student acquisition methods to attract more students to our online platform. With our significantly lower price point compared to traditional brick-and-mortar offerings, the flexibility to learn at one's own pace and schedule, and the cultural emphasis on education in China, we believe we are well-positioned to seize the tremendous growth opportunity before us.

"Our expansion and retention plan for 2019 follows a five-pronged approach. First, we are continuing to enrich and upgrade our existing trial programs. Second, we are hiring and training live streaming teachers suitable for adult students in China by offering a competitive compensation structure and robust teaching and research support. Third, we are cultivating a unique online learning community and encouraging our students to interact with our teachers, mentors and each other more actively. Fourth, we are enhancing our technology in order to enhance students' ability to learn efficiently. Finally, we are continuing to expand our range to cover more attractive course offerings, covering more highly desirable course offerings to help our students achieve their post-secondary and professional education goals. At the same time, we are offering more diverse trial programs and deploying more effective after-sales services, all in an effort to attract more students and strengthen our position as a market leader."

Mr. Steven Yipeng Li, Chief Financial Officer of Sunlands, said, "For the first quarter, our net revenues increased 38.8% year-over-year, in line with our guidance, and we further narrowed our net loss margin to 20.0%. Against the backdrop of the seasonal slowdown due to the Chinese New Year holiday period, softer marketing tactics and expanded trial programs, our new student enrollments declined, and gross billings were down 28.6% year-over-year. However, we are confident that our upgraded free trials, introductory seminars and free short courses for graduates, post-graduates and professionals, can increase average gross billings, conversion rates and sales efficiency, over the long-term. As these initiatives begin to take hold, we will continue to focus on growth through new student acquisitions and continue to improve the online learning experience for our students."

Basic and diluted net loss per share was RMB16.48 (US$2.46) in the first quarter of 2019.

Outlook

For the second quarter of 2019, Sunlands currently expects net revenues to be between RMB550 million to RMB570 million, which would represent an increase of 14.2% to18.3% year-over-year.

Fourth Quarter 2018 Financial Results

• Net revenues were RMB568.8 million (US$82.7 million), representing a 65.0% increase year-over-year.
• Net loss was RMB183.7 million (US$26.7 million), representing a 57.1% decrease year-over-year. Net loss margin, defined as net loss as a percentage of net revenues, decreased to 32.3% from 124.1% in the fourth quarter of 2017.

Mr. Tongbo Liu, Chief Executive Officer of Sunlands, said, "2018 marked a year of strategic positioning and advancements for our Company. We completed our IPO, launched our AI-powered personalized study program, and broadened our graduate and post-graduate program offerings. We ended the year at the top end of our fourth quarter revenue guidance and narrowed our net loss margin.

"In 2018, we started to explore innovative ways to attract more students to our online learning platform. One of our biggest achievements was initiating free trials. By offering potential students our upgraded free trials withintroductory seminars and free short-courses, we believe we can increase average gross billings, conversion rates and sales efficiency over the longer-term.

"Our mission is to transform education with technology and innovation to make learning experiences enjoyable and rewarding. In line with these ideals, in 2018, we also began pursuing more user-friendly marketing tactics to introduce potential students not only to Sunlands' online STE platform, but to a broader range of our best-in-class programs. As we strengthen our brand awareness, we are capable of reaching a larger pool of prospective students who may benefit from our courses. In 2019, we will be focused on attracting more students to our platform by expanding our free trials with even more course offerings. We believe these initiatives will help develop online learning habits for more students, transferring them from offline to online, and enhance a stronger brand for Sunlands over the longer-term.

"As a pioneer in the massive and evolving online post-secondary and professional education market, we are dedicated to providing a comprehensive online continuing education ecosystem, powered by our proprietary software that is tailored to each student's learning patterns. In 2019, we will look to further expand our business and gain market share. Empowered by our one-to-many live streaming model, we plan to broaden our course offerings to serve a larger student base and leverage our premier AI-technology and industry leading online education platform to create additional value for our students, teachers, partners and investors," Mr. Liu concluded.

Mr. Steven Yipeng Li, Chief Financial Officer of Sunlands, said, "The continuous growth in the number of students[2] drove our growth in the fourth quarter, with our net revenues and gross profit increasing by 65.0% and 84.8%, respectively, year-over-year. Expanding our free trials with introductory seminars enabled us to enhance our sales productivity and efficiency, and our net loss margin decreased to 32.3% during the quarter from 124.1% in the fourth quarter of 2017. We plan to further invest in our growth by continuing to acquire and engineer best-in-breed content for our platform that supports our student acquisition efforts and maintains our leadership in the online post-secondary and professional education market."

Outlook

For the first quarter of 2019, Sunlands currently expects net revenues to be between RMB550.0 million to RMB570.0 million, which would represent an increase of 35.3% to 40.3% year-over-year.

BEIJING, Sept. 28, 2018 /PRNewswire/ -- Sunlands Online Education Group (STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education, today announced that it has initiated partnerships with five international universities, including Belhaven University in the U.S.A. and Torrens University Australia, to offer Chinese students a broader range of graduate and post-graduate programs via its one-to-many online platform.

Mr. Tongbo Liu, Chief Executive Officer of Sunlands, said, "Offering Chinese students high quality content from international institutions has long been on our agenda and we are very excited to initiate partnerships with these globally-respected universities."

Mr. Liu added,"There is strong demand among Chinese students who are keen to build on their academic credentials and study overseas, but many students don't have the resources needed to realize this dream. With our extensive experience helping students to obtain higher education degrees on our online platform, we are well placed to meet this demand by providing a cost-effective and unique solution. We will continue to expand our partnerships with global institutions to give our students access to an increasing range of international graduate and post-graduate offerings."

In July 2018, Sunlands started offering students Bachelor and MBA programs on its online platform in partnership with Belhaven University, a nationally recognized academic institution in the U.S. with a strong heritage stemming back to 1883. Starting from the end of October 2018, Sunlands will also offer specially tailored English-language Master of Education and MBA programs in partnership with Torrens University Australia. Sunlands will provide additional Chinese tutorials in essay writing, case studies, and career development to help students achieve better learning outcomes.

China is the largest source of international students globally. According to China's Ministry of Education, 608,400 Chinese students left the country to pursue advanced studies overseas in 2017 with more than 1.4 million students enrolled in overseas higher education institutions in total. Sunlands' new offering will enable Chinese students to access highly respected graduate and post-graduate programs from international education institutions from the convenience of their mobile phones and computers, without the need to travel abroad.

BEIJING, Aug. 29, 2018 /PRNewswire/ -- Sunlands Online Education Group (STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education, today announced that its Board of Directors has approved a share repurchase program under which the Company is authorized to repurchase up to US$50 million of its Class A ordinary shares in the form of American depositary shares over the next 12 months.

Mr. Tongbo Liu, Chief Executive Officer of Sunlands, said, "The share repurchase program reflects the Board's confidence in our strategy to strengthen our leadership position in China's online post-secondary and professional education market. We are pleased that our strong cash generating ability enables us to return value to shareholders as well as continue to invest in enhancing our content, upgrading our technology, and attracting more students to our platform to sustainably grow our business."

The Company's proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission (the "SEC") Rule 10b-18 requirements. It is also expected that such repurchases will be effected pursuant to a plan in conformity with SEC Rule 10b5-1. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size or suspend or discontinue the program. The Company plans to fund repurchases from its existing cash balance.

Second Quarter 2018 Financial Results

• Net revenues were RMB481.8 million (US$72.8 million), representing a 134.1% increase year-over-year.
• Basic and diluted net loss per share was RMB39.37 (US$5.95) in the second quarter of 2018.

Mr. Tongbo Liu, Chief Executive Officer of Sunlands, said, "We achieved healthy revenue growth as students continued to realize the benefits of our highly effective mobile and online tutoring offerings. During the quarter, we improved our sales and marketing approach to enhance the experience of prospective users and optimize brand positioning. We also introduced free trial classes so that potential students can experience Sunlands' unique offering first-hand. We are pleased with the initial results of this initiative, which indicate that participants in free trial classes are significantly more likely to both become Sunlands' students and enroll in courses with higher price points. While it will take some time to realize the benefits of these initiatives, we are confident that they will translate into better user experience and more sustainable growth over the long term."

"In the second quarter, we continued to invest in introducing better technology and content that improve learning efficiency and ultimately lead to higher test pass rates. We enhanced our content by doubling knowledge points, which are essential to improving learning effectiveness, to approximately 275,000 by the end of the second quarter. We also continued to roll out our AI-powered personalized study programs that accelerate the learning process and significantly improve learning outcomes. These initiatives have contributed to ongoing improvements in the pass rates of Sunlands' students. For example, Sunlands' students based in Jiangsu achieved a Self-Taught Higher Education Examination, or STE, pass rate of 79.2% in April 2018, compared to a pass rate of 71.9% in 2017. Looking ahead, we will continue to invest in our content, teaching quality and technology platform to cement our leading position in China's online post-secondary and professional education market."

Mr. Steven Yipeng Li, Chief Financial Officer of Sunlands, said, "We are pleased to have exceeded our revenue projections reflecting the strong demand for online STE tutoring. In the second half of 2018, we will introduce new course packages and incrementally adjust pricing to better reflect the value we deliver to our students. At the same time, we will continue to focus on optimizing our sales and marketing operations to both increase effectiveness and improve the profitability of our business."

Outlook

For the third quarter of 2018, we currently expect net revenues to be between RMB500.0 million to RMB520.0 million, which would represent an increase of 89.4% to 96.9% year-over-year.

The above outlook is based on the current market conditions and reflects our current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty.

BEIJING, July 25, 2018 /PRNewswire/ -- Sunlands Online Education Group (STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education market, announced that it has recently launched AI-powered personalized study programs to accelerate the learning process and improve student test results.

The AI software, developed in-house, uses machine learning and natural language processing technology to analyze student behavior and their level of understanding of specific courses. Based on this analysis, Sunlands AI software is able to predict test results, with a high accuracy rate, and develop tailor-made learning solutions that are designed to improve study outcomes.

"Tertiary education is typically delivered as one-size-fits-all, with very little consideration for individual levels of understanding and progress," said Mr. Tongbo Liu, Chief Executive Officer of Sunlands. "Today, with AI technology, we are able to develop personalized solutions that prioritize educational content and accelerate the learning process for every student at every level."

Mr. Liu added, "Many of our students are juggling full-time jobs, caring for their families as well as studying. This kind of innovation can mean the difference between passing and failing. We will continue to invest in AI and other technology that will enable us to make the learning experience as seamless and effective as possible."

The introduction of predictive software and personalized study programs has translated into tangible benefits for Sunlands' students. With the help of such learning solutions introduced in early 2018, the average pass rate of tests taken by our students in April 2018 increased by approximately 15% compared to the average pass rate of tests taken by the same group of students in October 2017. The learning solutions also significantly increase the time students spend learning on Sunlands' platform. 

The Company's ongoing investment in cutting-edge technology and educational content has led to continuous improvement. According to iResearch, the national average pass rate of STE exam-takers who participated in STE tutoring courses was 46.5% in 2016. The pass rate for Sunlands students taking STE exams in Jiangsu Province increased from 71.9% in 2016 to 79.2% in the first half of 2018.

First Quarter 2018 Financial Results

• Net revenues were RMB406.4 million (US$64.8 million), representing a 161.1% increase year-over-year.
• Basic and diluted net loss per share was RMB55.25 (US$8.81) in the first quarter of 2018.

Mr. Tongbo Liu, Chief Executive Officer of Sunlands, said, "We are pleased to deliver a strong set of results following our initial public offering on the NYSE. Our investments in higher quality educational offerings, our IT platform and distinctive marketing initiatives to attract more students led to robust growth in new student enrollments and net revenues during the first quarter. This enabled us to gain market share and strengthen our leadership position in China's online post-secondary and professional education market."

Mr. Liu added, "Looking forward, we are excited by the growth potential of the higher education market in China. According to iResearch, as of December 31, 2017, there were over 600 million people between the ages of 18 and 48 without a bachelor's degree in China. Our online tutoring services are designed to address this enormous unmet demand and provide a path for underserved adult students to significantly improve their employment and career prospects. We will continue to invest in long term initiatives to unlock the potential market and attract more students to our platform, enhance our content and teaching quality, and upgrade our IT platform. We are confident that these investments will enable us to continuously improve the student experience and sustainably grow our market share."

Mr. Steven Yipeng Li, Chief Financial Officer of Sunlands, said, "During the first quarter, we delivered strong financial results with net revenue increasing 161.1% year-over-year and net cash provided by operating activities of RMB226.3 million. Bolstered by the recent capital infusion from the IPO and a significant and growing deferred revenue base, we have the resources that we need to continue to build our online education platform and attract more students. We look forward to growing our market share and realizing the growth potential of our highly scalable business model in the coming quarters."

Outlook

For the second quarter of 2018, we currently expect net revenues to be between RMB460.0 million to RMB480.0 million, which would represent an increase of 123.5% to 133.2% year-over-year.

The above outlook is based on the current market conditions and reflects our current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty.

Sunlands Online Education Group (NYSE:STG) (IPO), one of the leaders in China's online post-secondary and professional education, announced that it priced its IPO of 13 million ADS at US$11.50 per ADS, for an aggregate of US$149.5 million, assuming the underwriters do not exercise their option to purchase additional ADSs. The ADSs are expected to begin trading today under the ticker symbol "STG".

BEIJING, March 23, 2018 /PRNewswire/ -- Sunlands Online Education Group (STG) ("Sunlands" or the "Company"), the leader in China's online post-secondary and professional education, today announced that it has priced its initial public offering of 13,000,000 American Depositary Shares ("ADSs"), representing 520,000 Class A Ordinary Shares of the Company, at US$11.50 per ADS for a total offering size of US$149.5 million, assuming the underwriters do not exercise their option to purchase additional ADSs. The ADSs have been approved for listing on the New York Stock Exchange and are expected to begin trading today Eastern Time under the ticker symbol "STG."

The underwriters have been granted an option, exercisable within 30 days from the date of the final prospectus, to purchase up to 1,950,000 additional ADSs at the initial public offering price less the underwriting discount.

Goldman Sachs (Asia) L.L.C., J.P. Morgan Securities LLC, and Credit Suisse (USA) LLC are acting as joint bookrunners and the representatives of the underwriters, and CLSA Limited is acting as co-manager, for the offering.

Sunlands' registration statement relating to the offering has been filed with, and declared effective by, the U.S. Securities and Exchange Commission. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.