Ministry of Education Report Reveals Strong Growth and Interest in Adult Continuing Education, Vocational Training and Master's Programs

BEIJING,June 11,2020 --Sunlands Technology Group (NYSE: STG)("Sunlands" or the "Company"),a leader in China's online post-secondary and professional education,today commented on the May 2020 publication of the China Ministry of Education'sNational Statistical Reportof Education Development in 2019(the "Education Report").The Education Report revealed strong growth in post-secondary enrollment in China,including the continuingmulti-year recovery in adult continuing education,driven by various government policies to encourage and promote higher education.

According to theEducation Report,in 2019,adult post-secondaryenrollmentin China exceeded 3 million for the first time,growing 10.6% year-over-year.Additionally,the number of registrations for Self-Taught Higher Education Examinations("STE"),which arestate-administered examsin China for learners pursuing associate diplomas orbachelor's degrees,grew 9.6% to almost 6 million,following strong growth in 2018 that reversedthe trend of sharp declinesin 2016and 2017.

In general,due to busy work schedule and lack of an appropriate learning environment for many STE students,in addition tomore than ten mandatory examinationsrequired to graduate,the overall student pass rate forself-taught examinationsis historically quite low. Between 2012 and 2016,the average passingrates for STE examsachieved by self-taught students and students enrolled in private schools were 43.4% and 35.6%,respectively[1].In comparison,Sunlands'students'average pass rate for STE examswas significantly higher,achieving 61.1% in 2019,and demonstrating the effectiveness ofthe Company'sonline STE coursesand teaching paradigm. Equipped with a deep understanding of effective techniques for adult learningand exam preparedness,especially as it relates toself-taughtlearners,the Companyhasbeen capturingopportunitiesin the field of self-examination,andbecominga leader in this market.

Also indicated in the Education Reportwas a 2019 rise in secondaryvocational schoolenrollmentfor the first timein the past eight years,with enrollment reaching6 million. Enrollment in post-secondary vocational schoolalso grewsignificantly by 31% to 4.8 million,surpassinguniversity enrollmentby 12.1%. This wasdrivenby the Chinese government's vigorous promotionof,and emphasis on,vocational education.

For students and graduates of vocationalschools,Sunlands offersa series of vocationaland professionalcertificatetraining coursescovering various industries and professions,including accounting,human resources,teaching and finance. Sunlands' online one-to-many streaming model helpsstudents learn anytimeandanywhere,providing a perfect solution tovocational education's need for simultaneouslearningand practicing.Inaddition,Sunlands' STE and master-degree oriented offerings are ideal for those vocational school graduates pursuing further degree advancement.

Another notable trend that we inferred fromthe Education Report was thegrowing number ofpeople that have become increasingly dissatisfied with ending their educational pursuits once they have achieved their undergraduate degree. Of note,the sizeof postgraduate studentenrollmenthas continued to increaseover the past eight years. In 2019,the number of enrolledmaster's student reachedover 800,000,growing 6.4% compared with 2018. In 2020,enrollment is expected to expand to over 1 million,as the Ministry of Education increases admission quotasin an effort toease job vacancies and ensure better and applicable training for job openings inthe market. At the same time,the number of students applying for postgraduate programs has also been recordinghistorical highs,with the numberexpected to reach 3.4 million in 2020[2].In order to capture this growth opportunity,Sunlands has launchednumerous online training services for postgraduate entrance examinations,including domestic MBA training,part-time master'sand international master'sprograms. In the first quarter of 2020,Sunlands' gross billingsfrom its master's degree-oriented programsaccounted for 22.5% of its totalgross billings,increasing significantly from 12.1% in 2019.

Mr. Tongbo Liu,Chief Executive Officer of Sunlands,commented,"the Education Report further demonstrates the tremendous market opportunity when it comes to post-secondary and professional education in China. To support our students with the most effective education techniques as they navigate learning within their already busy schedules,we have developed a unique system combining teachers,mentors and artificial intelligence that offers not only community-based interactive online lectures,but also after-school supervision and student care that help our students better manage the balance between work and study. With a research and development team of nearly a thousand personnel and through the use of advanced technologies such as big data analytics and artificial intelligence,we are able to help our students improve both learning efficiencies and their examination pass rate. We are committed to continuing broadening our online course offerings by including additional content and subjects for STE,master's degree-oriented and professional certificates programs,in order to meet a diverse set of continuing educational needs,keep up with the latest trends and capture growth opportunities."

[1] according to a report prepared by iResearch

[2] according to an educational industry information platform,China Education Online

About Sunlands

Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"),formerly known as Sunlands Online Education Group,is the leader in China's online post-secondary and professional education. With a one to many,live streaming platform,Sunlands offers various degree and diploma-oriented post-secondary courses as well as online professional courses and educational content,to help students prepare for professional certification exams and attain professional skills. Students can access its services either through PC or mobile applications. The Company's online platform cultivates a personalized,interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees,the Company's proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals.

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934,as amended,and the U.S. Private Securities Litigation Reform Act of 1995.These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission,in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Any statements that are not historical facts,including statements about Sunlands' beliefs and expectations,are forward-looking statements that involve factors,risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include,but not limited to the following: Sunlands' goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to improve teaching quality and students' learning results; its ability to improve sales and marketing efficiency and effectiveness; its ability to engage,train and retain new faculty members; its future business development,results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands' corporate structure,business and industry; and general economic and business condition in China Further information regarding these and other risks,uncertainties or factors is included in the Sunlands' filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release,and Sunlands does not undertake any obligation to update such information,except as required under applicable law.

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