GSX Techedu : Third Quarter 2019 Presentation

Investor Presentation

November 2019

Disclaimer

This presentation has been prepared by GSX Techedu Inc. (the "Company") solely for informational purposes and does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.

This document has been prepared by the Company solely for use at this presentation. The information contained in this presentation, including the Company's unaudited result of operation for the third quarter of 2019, has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, directors, officers, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising from or in connection with this presentation.

This presentation contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company, which can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company or any of its affiliates, directors, officers, advisors or representatives has no obligation and does not undertake to revise forward-looking statements to reflect new information, future events or circumstances after the date of this presentation, except as required by law.

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OUR MISSION

MAKE EDUCATION BETTER THROUGH TECHNOLOGY

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Leadership in China's Online K-12Large-classAfter-school Tutoring Market(1)

Higher

Quality

LIVE

Higher			Higher
Efficiency	ONLINE	LARGE-	Profitability
	CLASS

Laser-focused on Online Live Large-class Tutoring

Note:
(1)	3rd largest online K-12large-classafter-school tutoring service provider in China in terms of gross billings in 2018, according to Frost & Sullivan	3

GSX Q3 FY2019 Overview

Total Enrollments(1)Gross BillingsNet RevenuesNet Profit

RMB 2mn

820,000	RMB 880mn	RMB 557mn	(GAAP)

RMB 20mn

(Non-GAAP)(2)

Q3 FY2019 vs	Q3 FY2019 vs	Q3 FY2019 vs		Q3 FY2019 adjusted
240% Q3 FY2018	420% Q3 FY2018	462% Q3 FY2018	4%
net margin(2)
YoY growth	YoY growth	YoY growth

Notes:

1. "Total enrollments" for a certain period refer to the cumulative number of courses (priced at or above RMB9.9) enrolled in and paid for by the students, including multiple paid courses enrolled in and paid for by the same student
2. Adjusting for share-based compensation expenses of RMB 18mn

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