Ambow Responses To Market Confusion
BEIJING, Sept. 6, 2012 /PRNewswire/ -- Ambow Education Holding Ltd. ("Ambow" or the "Company") (NYSE: AMBO), a leading national provider of educational and career enhancement services in China, is aware of recent media reports about Beijing Jinghan Yingcai Education and Technology Co., Ltd. ("Jinghan"), one of the Company's subdivisions that currently operates approximately 100 tutoring centers nationwide that provide one-on-one tutoring services to students who are seeking admission to better schools.
The discussion in the media reports focuses on common issues facing the educational and tutoring industry in China, including competitive pressures for students to enter better schools and pricing concerns, as well as the overall regulatory framework for the industry. The Company believes the media reports were triggered by concerns about these issues. The media reported on complaints of several parents who do not believe Jinghan's services lived up to their expectations and raised questions regarding some parents' satisfaction with Jinghan's services and compliance with local registration requirements.
In response to concerns over the media reports, Jinghan internally reviewed the issues raised and found that:
- All of Jinghan's operated centers are legally registered with the local Administration for Industry and Commerce and the relevant local tax bureaus.
- As required by local regulations, all of Jinghan's centers display the service price list openly and the staff is required to explain the prices clearly. The Company believes that Jinghan's ability to raise prices reflects Ambow's market leadership in tutoring and the premium its one-on-one brand commands in the market.
- It has never been Jinghan's policy to encourage staff to exaggerate training results and any such unprofessional behavior of staff is not tolerated.
Based on the information currently known, the Company does not anticipate that these Jinghan matters will result in any restatement of previously announced financial results.
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