Recommendation

The online education market in China has room for growth, and this growth has undoubtedly been accelerated by COVID-19. Furthermore, as technology in telecommunication continues to advance, the online education market will expand its reach to China's third-tier cities and beyond.

Yuanfudao's business model has proven to strategically respond to new government legislation by diversifying its suite of applications and services. Furthermore, I believe that Yuanfudao's mission is aligned with the government's in that it aims to relieve stress and improve the mental health of young learners. This mentality strengthens Yuanfudao's brand - a valuable asset in an industry filled with substitutes and rivalry. Yuanfudao is a prudent and worthwhile investment.