GSX Techedu Inc renames itself Gaotu Group

Chinese education firm GSX Techedu Inc renamed itself Gaotu Group recently, as the New York Stock Exchange-listed firm strives to streamline and upgrade its business for greater growth.

According to founder Chen Xiangdong, the company has undergone fundamental changes through transforming to a business-to-customer business model, and Gaotu Classroom has become the company's major source of revenue, accounting for nearly 90 percent of business.

"Therefore, Gaotu Group is a better choice both in internal consensus and market perception," Chen said. "Also, it is time for us to embrace a new era after conquering challenges amid accusations."

US short-sellers, including Citron and Muddy Waters, called out the company over revenue and other financial problems. GSX denied all the allegations as false and ungrounded.

"More importantly, such brand focus will save marketing expenses. The focus of business under one brand can achieve business resonance in both a spokesman and brand launching," he added.

After the name change, Gaotu Group was divided into Gaotu Class and Gaotu College, which aims to serve grades kindergarten-to-12, and adults, respectively.