Meten EdtechX Education Group Ltd. (NASDAQ: METX) (“Meten EdtechX” or the “Company”), one of the leading omnichannel English language training (“ELT”) service providers in China, today reported that the Company achieved positive cash flow in March 2021.
The Company’s overall operating cash flow reached RMB8.2 million in March 2021. Particularly, the operating cash flow from offline learning centers was RMB15.59 million, excluding the ABC Junior ELT business which operation was temporarily paused due to policy restrictions. The positive operating cash flow was mainly a result of the increasing gross billing generated by the Company’s offline learning centers which have resumed normal operation and recovered from the impact of the COVID-19 outbreak.
Looking forward, the Company will implement its cash flow optimization strategies. The Company expects to adjust the operating structure by closing poorly performing stores or replacing their teams, increasing the sales of services with high profit margins through optimizing the incentive plan, reducing expenditures of headquarters and regional branches, and improving the efficiency of telemarketing.
About Meten EdtechX
Meten EdtechX is one of the leading ELT service providers in China, delivering English language and skills training for Chinese students and professionals. Through a sophisticated digital platform and a nationwide network of learning centers, the Company provides its services under three industry-leading brands: Meten (adult and junior ELT services), ABC (primarily junior ELT services) and Likeshuo (online ELT). The Company offers superior teaching quality and student satisfaction, served by cutting edge technology deployed across its business, including AI-driven centralized teaching and management systems that record and analyze learning processes in real time.
The Company is committed to improving the overall English language competence of the Chinese population to keep abreast of the rapid development of globalization. Its experienced management is focused on further developing its digital platform and expanding its network of learning centers to deliver a continually evolving service offerings to a growing number of students across China.