Image Source: Visual China
BEIJING, March 18 (TMTPOST) — TAL Education Group (NYSE: TAL) said that it has started a full transition phase, during which non-education businesses such as technical services will be the company’s top priority.
TAL Education Group is adjusting its business structure in accordance with the changing education policy in China to seek new growth, sources familiar with the matter said. The company will be transitioning to non-education businesses such as technological services, smart hardware and life science.
TAL Education Group had ended its K9 education business in 2021 after China launched its double reduction policy that cracks down on the private education sector. The company’s main business has been converted to STEAM (science, technology, engineering, arts and mathematics) education and education technology.
TAL Education Group’s K9 business has been taken over by two online non-profit organizations——Ledu and Xiwangxue. The group has shut down nearly 200 of its companies in China, according to 21st Century Business Herald.
TAL Education Group has also been opening up new companies since the double reduction policy was launched, mainly focusing on offline STEAM education.
The company is exploring STEAM fields such as humanities and arts, programming education for children, music, sports and daycare centers.
A report from Morgan Stanley on China’s education sector says that there is strong demand for learning services in China. Education giants in China have been working to establish their advantages in their own sectors after the era of K9 education ended.
Statistics from Morgan Stanley show that demand for learning services on non-school subjects has been growing in the market. Young students’ interest in learning services has increased, the report shows. The market will grow at the speed of 25% in 2022 and reach a scale of 709 billion yuan.
The report concludes that TAL Education Group’s main source of income will remain to be its STEAM education business.
