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China education
TechPolicy

Chinese education firm OneSmart faces demands for refunds after closing its off-campus tutoring activities nationwide

  • Angry parents are asking OneSmart for refunds, ranging from US$155 to US$15,000, after the firm shut down its K-12 off-campus education activities across China
  • The Shanghai-based company said it will shift its business to non-school curriculum areas, without elaborating

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Shanghai-based OneSmart International Education Group plans to pivot its business to non-school curriculum areas. Photo: Weibo
Jane Zhang

New York-listed OneSmart International Education Group has closed all of its off-campus tutoring programmes and learning centres across China, sparking outrage from angry parents who are demanding refunds.

Dozens of parents this week protested outside OneSmart’s headquarters in Shanghai’s Putuo District, many of whom called out the company for refunds that range from 10,000 yuan to 100,000 yuan (US$155 to US$15,524), according to a video posted online by Chinese weekly newspaper The Economic Observer.

“We have decided to fully transform our business to non-school curriculum areas,” said OneSmart, without elaborating, in an apology letter to students and their parents posted on the firm’s WeChat account on Wednesday. In the same post, the company provided a link for parents to apply for refunds.
OneSmart, which provides K-12 – referring to kindergarten to 12th grade – off-campus tutoring services, said it was a casualty of the difficult market and regulatory environment, according to its statement on Tuesday.
Dozens of parents are seen outside OneSmart International Education Group’s headquarters in Shanghai, as they demanded refunds after the company shut down its tutoring programmes and learning centres across China. Photo: Weibo
Dozens of parents are seen outside OneSmart International Education Group’s headquarters in Shanghai, as they demanded refunds after the company shut down its tutoring programmes and learning centres across China. Photo: Weibo
OneSmart’s pivot to undisclosed non-academic curriculum activities shows that the company, like other off-campus education services providers in China, has no choice but to abide by the new policy promulgated by the country’s State Council.

That policy, which was formally released on July 24, directed local authorities to bar the provision of holiday and weekend tutoring. Companies that operate education technology platforms, or services that provide online education, will also no longer be allowed to raise capital through initial public offerings. Listed companies and overseas investors are barred from investing, or acquiring stakes, in education firms that teach the school curriculum, according to the policy.

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