Consumer Discretionary Author: EqualOcean News, Yiru Qian Nov 15, 2021 06:37 PM (GMT+8)

TAL Education will explore quality-oriented education from multiple aspects.

Competence Education

On November 13, Zhang Bangxin, CEO of TAL (TAL:NYSE) issued an internal letter to all employees, indicating the new strategic direction for the future and the personnel adjustments made in accordance with the new direction.

According to the announcement, TAL plans to cease offering academic subjects to students from kindergarten through grade nine ('K9 Academic AST Services') in the mainland of China by the end of December 2021. Any course services users have signed up for would be guaranteed.

Zhang expressed that the company's business focus will be transferred from the subject training to quality-oriented training, aiming to cultivate the ability that will bring children lifelong benefit. Several trials have been made: on one hand, humanities and aesthetic education, scientific puzzles, programming and other subjects; on the other hand, it may actively explore music, sports, art and other categories.

The internal letter also mentioned that TAL will further increase investment in research and development for education technology, refering to science and technology to promote the educational progress. Besides, TAL will promote overseas business with great patience, continuing to build overseas business models, brand awareness and operational capabilities in the next five to ten years or even more. Finally, TAL will continue to incubate new business, regarding it as a driving force for new organizational capacity. It said that the company would do more in digital content publishing, education hardware, hosting services and other aspects to be well-prepared for the future.

Zhang said that, although the main business has experienced huge changes, the unchanged initial motivation of education, the core management stability, the solid research and development accumulation and deep-rooted brand consciousness should help the company to locate its own position. It will continue to creat value for customers, employees and the whole society.