Whales English's CEO Tom Wu announces a breakthrough of 100 million Yuan revenue per month and 70K Premium users on its 8th anniversary

BEIJING,July 25,2020 -- On July 20,2020,on the 8th Anniversary of Whales English,the CEO Tom Wu published an internal letter to announce its milestone of reaching more than 100 million yuan revenue per month and 70K Premium users.

Whales English celebrated its 8th anniversary on July 20

Highlighting this special moment and its strong vision on education,the full text of the internal letter from Whales English CEO Tom Wu can be read here:

Dear Whalies,

July 20 marks the 8th Anniversary of the establishment of Whales English. In June,we reached another milestone; we officially entered the ranks of the industry's top brands with over 100 million yuan revenue a month,and our Premium users (enrolled students) have reached 70K! Looking back on the first half of the year,Whales English has continuously been ahead of the game. Looking at the entire K-12 English live classes racing track,you would notice we have also entered the Top 3! After talking to many friends about this,it's hard to believe that Whales (English),a company that has always been so down-to-earth,is making such rapid progress!

Looking back on the past eight years,starting from a non-profit organization called Sprout in 2012,and with the original intention of providing the best English education for Chinese children,we have been constantly refining our products and services for our own children. In 2017,Sprout officially started to operate as a company. In the face of what was already characterized as a turbulent K-12 English education industry,Sprout adhered to the group class model with its own unique characteristics. In 2018,Sprout was renamed Whales English and at that time,for the very first time,the company broke through 10 million yuan revenue in one month and achieved a rare positive net cash flow in the industry amid doubts about whether the "Three fixed model" would work out. In the hard winter of the 2019 capital market,the strategy of industry wide reckless money-spending had become completely unsustainable. On the contrary,Whales English,a company that relies on the effects and reputation and a healthy economic model,had made further breakthroughs and by the end of the year,won the first place in K-12 English group-class education for the very first time. When online education became even more booming in the first half of 2020,we were already the industry's leading brand. We had taken another step and,against the trend,completed a new round of financing. Whales English was now far ahead in the K-12 English group-class education field and had also entered the Top 3 in the K-12 English education industry. All these achievements are not only inseparable from the hard work of everyone at Whales English,but it also shows that the company is effective in adhering to the essence of long-term education and creating unique value for its users.

With all the ups and downs of many star start-ups in the past two years,no one can really be clear about the future direction of K-12 English industry or know for sure what kind of companies will eventually persevere. I think that a company that can ultimately lead the K-12 English industry should meet two conditions at the same time: one is to create unique value for users,and the other is to realize large-scale profit. Companies that cannot create unique value for users will either simply not grow up at all or will not be able to hold on when they grow up and will be gradually replaced by others. Companies with unhealthy economic models,even if they grow up,lack long-term profitability and have to rely on external investments to survive. In essence,those companies still fail to create enough value for users.Whales English's group-class products perfectly balance the needs of these two aspects,which not only meet the needs of users for personalized learning,but also achieve a very healthy economic model. Group class has been dominant in offline industry. Whales English sees an excellent opportunity to replicate this historical trajectory towards dominance in the online field. This is why Whales English always adheres to the group class model and allows children to "learn smoothly" through "teaching abundantly",and thereby providing the unique value of training. Compared with most K-12 English schools on the market,the main focus at Whales English is on encouraging children to "love learning" and to "dare to speak". Whales English is serious pursuing and always putting children's long-term learning first.

Education is hard work at a gentle pace. It cannot be rushed in any way at all. Whales English absolutely agrees with this,and truly believes that the foundation of a good education model is on knowing what the right educational values are. For us,education is not just about sending children to school,or making sure that they attain the ability to speak English. It is much more than that. Whales English strives to help children learn English in the best way possible,and to be able to use English in practical ways in real-life situations for the long term.We are not only preparing children to acquire English,but to be literate in it.

We hope that Whalies who share the above values,will continue to walk hand in hand with us. Even though there are uncertainties and potential hardships ahead,we will face them together. We will proceed,without hesitation,to continue to influence our children's lives in the best way possible. We will achieve this a sense of purpose and responsibility,and with the right people moving in the right direction; forward. Let's enjoy this time together as we continue to work to see long term-returns and rewards!

Finally,I wish Whales English and all Whalies a Happy 8th Birthday! Cheers to another 8 fantastic years!

Tom Wu

2020-7-20

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