Gaotu Techedu Inc. Files 20-F Annual Report for Fiscal Year Ended December 31, 2023

TL;DR

<b>Gaotu Techedu Inc. has filed its 2023 annual report on Form 20-F, detailing its financial performance and operational disclosures.</b>

AI Summary

Gaotu Techedu Inc. (GOTU) filed a Foreign Annual Report (20-F) with the SEC on April 25, 2024. Gaotu Techedu Inc. filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The filing includes financial data and disclosures relevant to the company's operations and performance. The company's business address is located in Beijing, People's Republic of China. Gaotu Techedu Inc. was formerly known as GSX Techedu Inc., with a name change effective February 15, 2019. The report references various financial instruments and asset categories, including short-term investments and fair value measurements.

Why It Matters

For investors and stakeholders tracking Gaotu Techedu Inc., this filing contains several important signals. This 20-F filing provides investors with a comprehensive overview of Gaotu Techedu's financial health, strategic initiatives, and risk factors for the fiscal year 2023. Understanding the details within this report is crucial for assessing the company's current market position, future growth prospects, and potential challenges in the competitive educational technology sector.

Risk Assessment

Risk Level: — Gaotu Techedu Inc. shows moderate risk based on this filing. The company operates in the educational services sector, which is subject to evolving regulatory landscapes and intense competition, as indicated by the numerous references to specific subsidiaries and business segments within the filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 20-F to understand Gaotu Techedu's performance and strategic direction.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report.)
• 2024-04-25 — Filing Date (Date the 20-F was filed.)
• 8,598 — Value (Referenced numerical value in the filing.)
• 8,703 — Value (Referenced numerical value in the filing.)

Key Players & Entities

• Gaotu Techedu Inc. (company) — Filer of the 20-F report.
• GSX Techedu Inc. (company) — Former name of Gaotu Techedu Inc.
• Beijing (company) — Location of the company's business address.
• People's Republic of China (company) — Country of incorporation and business operations.

FAQ

Risk Factors

• Regulatory Environment [medium — regulatory]: The company operates in the educational services sector, which is subject to evolving regulations in the People's Republic of China.
• Competition [medium — market]: The educational technology market is highly competitive, with numerous players vying for market share.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 20-F filing.
• 2024-04-25: Filing Date — Date the 20-F was officially submitted to the SEC.

Glossary

20-F

An annual report required for foreign private issuers with securities traded on U.S. stock exchanges. (Provides a comprehensive overview of the company's financial performance and business operations.)

Fair Value Measurements

The process of determining the market value of assets and liabilities. (Indicates how the company values its investments and other financial instruments.)

Key Financial Figures

• $0.0001 — o Class A ordinary shares, par value US$0.0001 per share GOTU New York Stock Excha
• $ — legal currency of mainland China; "US$," "U.S. dollars," "$," and "dollars" ar
• $1 — were made at the rate at RMB7.0999 to US$1.0000, the exchange rate as set forth in

Filing Documents

• gotu-20231231.htm (20-F) — 5782KB
• gotu-ex8_1.htm (EX-8.1) — 14KB
• gotu-ex12_1.htm (EX-12.1) — 15KB
• gotu-ex12_2.htm (EX-12.2) — 14KB
• gotu-ex13_1.htm (EX-13.1) — 7KB
• gotu-ex13_2.htm (EX-13.2) — 7KB
• gotu-ex15_1.htm (EX-15.1) — 9KB
• gotu-ex15_2.htm (EX-15.2) — 5KB
• gotu-ex15_3.htm (EX-15.3) — 5KB
• gotu-ex97_1.htm (EX-97.1) — 35KB
• img123039138_0.jpg (GRAPHIC) — 137KB
• img123039138_1.jpg (GRAPHIC) — 31KB
• img123039138_2.jpg (GRAPHIC) — 439KB
• img123039138_3.jpg (GRAPHIC) — 281KB
• img123039138_4.jpg (GRAPHIC) — 84KB
• 0000950170-24-047938.txt (&nbsp;) — 20076KB
• gotu-20231231.xsd (EX-101.SCH) — 2002KB
• gotu-20231231_htm.xml (XML) — 3099KB

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 140 ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 141 PART II . 143 ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 143 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 143 ITEM 15.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 143 ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT 145 ITEM 16B. CODE OF ETHICS 145 ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES 146 ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 146 ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 146 ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT 147 ITEM 16G. CORPORATE GOVERNANCE 147 ITEM 16H. MINE SAFETY DISCLOSURE 147 ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 147 ITEM 16J. INSIDER TRADING POLICIES 147 ITEM 16K. CYBERSECURITY 147 PART III . 148 ITEM 17.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 148 ITEM 18.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 148 ITEM 19. EXHIBITS 149 4 INTRO DUCTION Unless otherwise indicated and except where the context otherwise requires, references in this annual report to: "ADRs" are to the American depositary receipts that may evidence the ADSs; "ADSs" are to the American depositary shares, every three of which represent two Class A ordinary shares; "Beijing Lexuebang" are to Beijing Lexuebang Network Technology Co., Ltd.; "Beijing Yuexuebang" are to Beijing Yuexuebang Network Technology Co., Ltd.; "Class A ordinary shares" are to our Class A ordinary shares, par value US$0.0001 per share; "Class B ordinary shares" are to our Class B ordinary shares, par value US$0.0001 per share; "gross billings" for a specific period are to the total amount of cash received for the sale of course offerings, net of the total amount of refunds in such period; "Gaotu," "we," "us," "our company" and "our" are to Gaotu Techedu Inc., our Cayman Islands holding company and its subsidiaries, and in the context of describing our operations and consolidated financial information, the VIE (as defined below) and its subsidiaries; "NYSE" are to the New York Stock Exchange; "paid courses" are to our courses that are charged not less than RMB99.00 per course in fees; "paid course enrollments" for a certain period are to the cumulative number of paid courses enrolled in and paid for by our students, including multiple paid courses enrolled in and paid for by the same student; "RMB" and "Renminbi" are to the legal currency of mainland China; "US$," "U.S. dollars," "$," and "dollars" are to the legal currency of the United States; "VIE" or "Beijing Gaotu" are to Gaotu Education Technology Co., Ltd., formerly known as Beijing BaiJia Technology Co., Ltd., or Beijing BaiJia Hulian Technology Co., Ltd. The VIE is a domestic company incorporated in mainland China in which we do not have any equity ownership but whose financial results have been consolidated

IDEN TITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDEN TITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable.

OFFER STATIST ICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATIST ICS AND EXPECTED TIMETABLE Not applicable.

KEY INF ORMATION

ITEM 3. KEY INF ORMATION Our Holding Company Structure and Contractual Arrangements with the VIE Gaotu Techedu Inc. is not an operating company in mainland China but a Cayman Islands holding company with operations primarily conducted through (i) our subsidiaries incorporated in mainland China, or mainland China subsidiaries, and (ii) contractual arrangements with the VIE, namely Gaotu Education Technology Co., Ltd., and its subsidiaries based in mainland China. The following diagram illustrates our corporate structure, including our principal subsidiaries, the VIE and its principal subsidiaries, as of the date of this annual report: Note: (1) Shareholders of Beijing Gaotu and their respective shareholdings in Beijing Gaotu and relationship with our company are Larry Xiangdong Chen (98.28%), chairman of our board of directors and our chief executive officer, and Bin Luo (1.72%), our employee. 7 Gaotu Techedu Inc. is a Cayman Islands holding company with operations primarily conducted through (i) its mainland China subsidiaries and (ii) the VIE, namely Beijing Gaotu, and its subsidiaries based in mainland China. By purchasing the ADSs, you are purchasing interests in our Cayman Islands holding company, as opposed to interests in our mainland China subsidiaries or the VIE and its subsidiaries based in mainland China. The VIE structure involves unique risks to investors of our Cayman Islands holding company. See "Item 3. Key Information—D. Risk Factors—Risks Related to our Corporate Structure" for more details. The laws and regulations of mainland China prohibit, restrict or impose conditions on foreign direct investment in operating companies of certain industries. As of the date of this annual report, in terms of our operating entities, based on the opinion of our PRC counsel, Tian Yuan Law Firm, pursuant to the Special Administrative Measures (Negative List) for the Access of Foreign Investment, or the Negative List, (i) foreign investors cannot make dir

View Full Filing

View this 20-F filing on SEC EDGAR