In a statement on Thursday, Spark Education said it has deposited all tuition collected in advance in the banks as regulated, and promises “not to spend a penny of this money,” adding that “Spark Education has contacted the public security organs, and does not rule out follow-up reports and take legal measures to investigate the relevant legal responsibilities of malicious rumors.”
CNR also reported on October 19 that as required by policies, Spark Education has deposited all tuition collected in advance in the banks, and this could systematically guarantee the interests of parents.
In May this year, regulatory authorities of the Beijing government jointly issued ‘Administrative Measures on Pre-Charging of Off-Campus Training Institutions’. As required, institutions that collect training fees in advance must deposit the money in the bank and is subject to fund supervision. The disbursement of the deposit must be synchronized with the teaching progress and withdrawn in the same proportion. In case of abnormal capital changes, the bank will give risk warnings to relevant departments in time.
Public information shows that Spark Education was established in December 2017 as an online education platform focusing on children’s logical thinking. Its main products include logical thinking, Chinese literacy, programming and others, and its business is mainly conducted through online small classes. In June this year, Spark Education submitted an IPO application to the SEC, seeking to list on NASDAQ.