Gaotu refutes 16 past shorting attacks with 2020 Deloitte audited annual report

Chinese education provider Gaotu issued its Deloitte-audited 2020 financial report on April 26, saying it proves that the accusations it faced in 16 past short-selling attacks were false.

The company was renamed from GSX Techedu last week and will change its ticker symbol on the New York Stock Exchange from "GSX" to "GOTU." Trading under the new ticker symbol will begin on May 6, 2021.

Its CFO, Shen Nan, said the annual report released is an audited standard unqualified report that includes standards for dual audits of financial reporting and internal controls.

Together with the previous independent investigation report, it proves that the last 16 attacks by short-selling agencies were unfounded, Shen said, adding that Gaotu is a fully open and transparent company.

The company's 2020 revenue was RMB 7.125 billion ($1.098 billion), up 236.9 percent year-on-year, and its net loss was RMB 1.393 billion, compared with a net profit of RMB 227 million a year earlier, the annual report showed.

Gaotu's R&D expenses amount to RMB 735 million in 2020, an increase of 246.1% compared to RMB 212 million in the same period last year.

As of December 31, 2020, Gaotu held cash and cash equivalents, short-term investments and long-term investments totaling RMB 8.217 billion.

Gaotu's K-12 business reported revenues of RMB 6.237 billion in 2020, up 265.5% year-over-year, and 5.429 million paid visits for courses, up 177.3% year-over-year.

Gaotu's adult education business generated revenues of RMB 887 million in 2020, up 117.3% year-over-year; 442,000 course-paid visits, up 93.0% year-over-year.

Gaotu was shorted by Muddy Waters, Citron and other institutions as many as 16 times in 2020, and the stock price fluctuated significantly several times.

The company's shares rose 15% on Monday.