RYB Education, Inc. Announces Divestiture of Directly Managed Kindergarten Business and Proposes Name Change

BEIJING, March 3, 2022 /PRNewswire/ — RYB Education, Inc. (“RYB” or the “Company”) (NYSE: RYB) announces that its subsidiaries have entered into termination agreements with certain variable interest entities, a decision made after careful consideration of the regulatory landscape and development needs of the society. By entering into these termination agreements, RYB will no longer have contractual control over its directly operated kindergarten business (the “Assignment”). The divestment is intended to fully meet compliance requirements with respect to applicable laws and regulations (including the Opinion of the State Council on deepening the reform and normalized development of preschool educationthe Regulations implementing the law on the promotion of private educationand the Early Education Act (Draft for comments)). At the same time, the Company proposes to change its name from RYB Education Inc. to Gravitas Education Holdings Inc., subject to approval at the next extraordinary general meeting.

This divestment enhances the Company’s ability to adapt to changing industry trends, improve regulatory compliance, expand its product and service offering, and be a strong industry leader. The Company will continue to develop its preschool education activity by Singapore and overseas, and its domestic operations will undergo a strategic transformation: leveraging its long experience and deep knowledge of the early childhood education industry and its strength in curriculum development, teacher training and management process, the company is well positioned to provide end-to-end end-to-end services across brand, content, systems, training, and more, to educational institutions. The divested kindergartens will continue to be run by the current management team, ensuring consistency and the continued delivery of high quality education to students.

This assignment includes the termination of agreements by and between Beijing RYB Technology Development Co., Ltd. (“our WFOE”), Beijing RYB Children Education Technology Development Co., Ltd. (“our LIFE”) and its shareholders. As compensation for termination of VIE contracts, an overall amount of 158.5 million RMB will be paid in installments to our WFOE. At the same time, to ensure continued stability and the continued provision of quality kindergarten education, our WFOE has entered into service agreements on arm’s length terms, following market prices and conditions, with our VIE. The audit committee of the Company’s board of directors, with the assistance of a third-party financial advisor, has independently reviewed and approved the Disposal as a related party transaction at arm’s length. The sale proposal was submitted to the Board of Directors of the Company and was officially approved on February 21, 2022.

About RYB Education, Inc.

Founded on the core values ​​of “Care” and “Responsibility”, “Inspire” and “Innovate”, RYB Education, Inc. is one of the leading providers of early childhood education services in China. Since opening its first play and learning center in 1998, the company has grown and flourished with the mission of providing high quality, individualized, age-appropriate care and education for nurture and inspire every child for their betterment in life. Over its two-decade operating history, the company has established “RYB” as a well-recognized education brand and helped establish many new educational practices in China early childhood education sector. RYB’s comprehensive early childhood education solutions meet the needs of children from infancy to age 6 through structured lessons in kindergartens and play and learning centers, as well as products and home educational services.

For more information, please visit http://ir.rybbaby.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “will”, “expect”, “anticipate” , “future”, “intends”, “plans”, “believes”, “estimates”, “confidently”, and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including, but not limited to, the following: the Company’s brand recognition and reputation in the Marlet ; the Company’s growth strategies; trends and competition in China early childhood education market; variations in its revenues and certain cost or expense items; the expected growth of the Chinese early childhood education market; Chinese government policies relating to the Company’s industry and general economic conditions in China. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statements except as required by applicable law.

For investor and media inquiries, please contact:

In China:

RYB Education, Inc.
Investor Relations
Email: ir@rybbaby.com

Piacente Group, Inc.
Song Yang
Tel: +86 (10) 6508-0677
Email: ryb@tpg-ir.com

In United States:

Piacente Group, Inc.
Brandi Piecente
Tel: +1-212-481-2050
Email: ryb@tpg-ir.com

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SOURCE RYB Education, Inc.

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