Much chatter online recently said multi-billion dollar online education company Yuanfudao will change its service from tutoring to selling down jackets following a new guideline which imposes restrictions on tutoring classes.
But Yuanfudao said on Wednesday that its down jacket business is a financial investment and will run independently. Its major business will still be educational services, the Shanghai Observer website said.
Last year, Yuanfudao was one of China's top education and science companies valued at US$10 billion.
Business information provider Tianyancha says Yuanfudao wholly owns a Beijing-based garment company and the down jacket business is likely to be independent of Yuanfudao.
The tutoring firms, especially those featuring K-12 services, were badly hit after Chinese authorities in July rolled out a series of strict regulations to deal with off-campus training, aiming to ease the burden of students undergoing compulsory education.
