<SEC-DOCUMENT>0001144204-16-092094.txt : 20160506
<SEC-HEADER>0001144204-16-092094.hdr.sgml : 20160506
<ACCEPTANCE-DATETIME>20160401061230
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001144204-16-092094
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160401

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Ambow Education Holding Ltd.
		CENTRAL INDEX KEY:			0001494558
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-EDUCATIONAL SERVICES [8200]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			E9
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		18 FL. BLDG. A, CHENJIAN PLAZA, NO. 18
		STREET 2:		BEITAIPING ZHUANG RD.
		CITY:			BEIJING
		STATE:			F4
		ZIP:			100088
		BUSINESS PHONE:		86 (10) 6206-8000

	MAIL ADDRESS:	
		STREET 1:		18 FL. BLDG. A, CHENJIAN PLAZA, NO. 18
		STREET 2:		BEITAIPING ZHUANG RD.
		CITY:			BEIJING
		STATE:			F4
		ZIP:			100088
</SEC-HEADER>
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<P STYLE="margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4in; text-align: center; text-indent: -4in">April 1, 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4in; text-align: center; text-indent: -4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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    <TD STYLE="width: 3%; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Re: </B></FONT></TD>
    <TD STYLE="width: 97%; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ambow Education Holding Ltd.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Form 20-F for Fiscal Year Ended December 31, 2014</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Filed April 21, 2015</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>File No. 001-34824</B></FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Larry Spirgel<BR>
Assistant Director &ndash; AD Office 11</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Division of Corporation Finance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">100 F Street, N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Mr. Spirgel:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On behalf of Ambow Education Holding Ltd.
(the &ldquo;Company&rdquo;), we have set forth below responses to the comments of the staff (the &ldquo;Staff&rdquo;) of the Securities
and Exchange Commission (the &ldquo;Commission&rdquo;) contained in its letter of December 21, 2015 with respect to the Form 20-F
filed on April 21, 2015 (the &ldquo;20-F&rdquo;) by the Company. For your convenience, the text of the Staff&rsquo;s comments is
set forth below, followed in each case by the Company&rsquo;s response.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Results of Operations </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Year ended December 31, 2014 compared with year ended December
31, 2013</U>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.15in 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.15in 0pt 0"><U>Net revenues, page 132, Tutoring, page 135, Career
enhancement, page 137, and K-12 schools, page 138</U>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.15in 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.15in 0pt 0"><U></U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;1.</P></TD><TD>We note from the last paragraph of page 106 and the second paragraph of page 112 that your revenue have declined materially
in part because of &ldquo;increasing requested refund from the students&rdquo;. Please explain for us how your revenues can be
materially impacted by such request given your stated practice of not providing refunds. Explain for us whether refunds or credits
or other adjustments were made<B> </B>for the benefit of dissatisfied students during each of the reporting periods, and if so
tell us the terms of those refunds, credits or other adjustments.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 13.5pt"><B><U>Company Response</U>:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 13.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 13.5pt"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.15pt; text-indent: 0.05pt">The Company respectfully advises
the Staff that its refund policy only applies to educational programs and services, which includes K-12, tutoring and career enhancement.
The standard practice of not providing refunds only applies to sales of software products and services. The Company suspended its
sales of software products and services after 2012. There were no software sales after 2013. As such, the Company will exclude
the section related to &ldquo;Sales to distributors&rdquo; from its 2015 Annual Report filing on Form 20-F to avoid any confusion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.15pt; text-indent: 0.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.15pt; text-indent: 0.05pt">The refunds on tuition fees
collected from educational programs and services are only allowed after the first trial session, but before the start of the second
session, after which no refunds are allowed. In other cases, the Company may issue refunds when circumstances require it, such
as the students not receiving the educational program or service they have paid for. In this regard, in 2013, one of the former
owners of the deconsolidated entities in Guangzhou collected advance tuition fees from students but failed to start the educational
programs as promised, which caused these students&rsquo; parents to panic and request refunds. As a result, the Company refunded
approximately RMB3.0 million in aggregate to the affected students in 2014. Other than this incident, there was no major refunds
identified in relation to Company&rsquo;s educational programs and services segment for 2013 and 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.15pt; text-indent: 0.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.15pt; text-indent: 0.05pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.15pt; text-indent: 0.05pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt">2.</TD><TD>Tell us and quantify for us and disclose the separate impact of each factor materially affecting your revenues. Quantify the
impact of declining student enrollments and refunds to students. Quantify also as applicable any material impact on your revenues
due to changing course fee rates.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"><B><U>Company Response</U>:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">The Company respectfully advises the Staff that revenues
declined RMB124.5 million from RMB536.5 million in 2013 to RMB412.0 million in 2014. This decline in revenues was mainly caused
by the lower number of student enrollments, decreasing from 114,000 in 2013 to 83,000 in 2014, representing a 27% decrease in revenues
compared to 2013. The revision of tuition fees for the respective segment was not significant for the years ended December 31,
2013 and 2014. Hence, it did not have any material impact on the Company&rsquo;s revenues in those periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">There were two main reasons for the decrease in number
of student enrollments: under-performing tutoring business and deconsolidation of four entities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 31.65pt"></TD><TD STYLE="width: 18pt">-</TD><TD>Tutoring revenues declined by RMB89.2 million in 2014</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 31.5pt"></TD><TD STYLE="width: 18pt">a.</TD><TD>Tutoring centers (excluding deconsolidated entities): revenue declined by RMB65.1 million</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.5pt">Some of the tutoring centers encountered operational
difficulties following the appointment of the Joint Provisional Liquidators (&ldquo;JPLs&rdquo;) in June 2013. Under Cayman Islands
law, the authority of the Company&rsquo;s Board of Directors ceased upon the appointment of JPLs. The JPLs were in charge of the
Company&rsquo;s operations from June 2013 to May 2014. During this period, a significant number of students and parents cancelled
tutoring classes. In addition, employee morale was also significantly affected. High employee turnover during this period affected
the ability of the Company&rsquo;s profit centers to attract new student enrollments and generate new revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 31.5pt"></TD><TD STYLE="width: 18pt">b.</TD><TD>Impact from the Deconsolidation: revenue declined by RMB24.1 million</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt">There were three entities relating to our tutoring
business that were deconsolidated in 2013 and 2014. The reasons for the deconsolidation of these entities are further elaborated
in response to Comment 4 below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.65pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<tr>
    <TD NOWRAP STYLE="width: 52%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 12pt"><font style="font-family: Times New Roman, Times, Serif">&#12288;</font><b>Entity Name</b></td>
    <TD NOWRAP STYLE="width: 48%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>Deconsolidation date</b></td></tr>
<tr style="background-color: #CCEEFF">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">Guangzhou DP Tutoring</td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">December 31, 2013</td></tr>
<tr>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt">Tianjin Tutoring </td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">September 30, 2013</td></tr>
<tr style="background-color: #CCEEFF">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">Jilin Tutoring</td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">September 30, 2014</td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Career Enhancement: revenues declined by RMB20.0 million</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.55pt; text-indent: 0.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.55pt; text-indent: 0.1pt">The decline was mainly caused
from the deconsolidation of the Guangzhou ZS Career Enhancement as of December 31, 2013, which caused the revenue to decrease by
RMB9.0 million. In addition, certain contracts with the partner schools expired in 2014 which caused revenues to decrease by RMB11.0
million. These contracts were subsequently renewed in 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.55pt; text-indent: 0.1pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">-</TD><TD STYLE="text-align: justify">K-12: revenues declined by RMB15.3 million</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.55pt; text-indent: 0.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.55pt; text-indent: 0.1pt">The decline was mainly due to
the different amortization days of revenue basis due to timing of public holidays in China.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt">The Company will disclose the decrease in number
of enrollments as the major contributing factor that caused the decline in 2014 revenue in its 2015 Annual Report filing on Form
20-F and include disclosure regarding the separate impact of each factor materially affecting the Company&rsquo;s revenues in future
filings with the Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt">3.</TD><TD>Similarly, please quantify for us, and if material disclose the impact on your revenues and results of operations caused by
your loss of control over several of your VIEs during the reporting periods.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"><B><U>Company Response</U>:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.15pt; text-indent: 0.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.15pt; text-indent: 0.05pt">The Company respectfully advises
the Staff that there was a decrease in revenues in the amount of RMB29.4 million and a decrease in net losses of RMB20.7 million
caused by four VIEs that the Company lost control of in 2013 and 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.15pt; text-indent: 0.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.15pt; text-indent: 0.05pt">The impact of deconsolidating
these entities in 2013 was not material, since these entities were deconsolidated towards the last quarter of 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">The Company will disclose the impact on its revenues
and results of operations caused by the loss of control of the VIEs during the reporting periods in the Company&rsquo;s 2015 Annual
Report filing on Form 20-F.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Financial Statements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U></U>1. Organization and Principal Activities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR>
<U>c. Major subsidiaries and VIEs, page F-13</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<BR></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>26. Deconsolidation, page F-53</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U></U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt">4.</TD><TD>Explain for us in reasonable detail how loss of confidence in your Group by personnel at Tianjin Tutoring, Guangzhou DP Tutoring,
Guangzhou ZS Career Enhancement, and Jilin Tutoring resulted in your loss of control over these <I>legal subsidiaries </I>of your
VIEs. Describe how such control was lost. We note that your VIEs own 100% of the legal equity of these four subsidiaries. Explain
for us in detail the legal basis for the refusal by Tianjin Tutoring and Jilin Tutoring to provide you with financial statements.
In this regard please tell us the following:</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.3in">The circumstance surrounding the failure by Tianjin Tutoring and Jilin Tutoring to provide you
with financial statements;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The extent to which each of the four subsidiaries continue to operate;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.15in">Quantify the impact of the loss of these subsidiaries on your revenues and results of operations;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.1in">Describe your efforts to maintain and to recover control of these subsidiaries of your VIEs;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.1in">Describe what legal recourse, if any, is available for you to regain control over these four deconsolidated
subsidiaries of your VIEs; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Explain for us why you have not regained such control.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">Please address all pertinent accounting literature
in your response and tell us your basis for deconsolidating these four subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"><B><U>Company Response</U>:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">The Company respectfully advises the Staff that during
the reporting periods, the appointment of the JPLs caused significant doubts among the students and their parents, as well as the
Company staff about the ability of JPLs to control the Company effectively. As a result, the Company&rsquo;s revenues decreased
significantly from 2013 to 2014. In addition, cash flow constraints and high employee turnover caused significant operational difficulties.
The JPLs tried to raise funds for the Company during the period, but their attempts were unsuccessful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">All of the management teams of the deconsolidated
entities previously were the former owners of the centers. With decreased revenues and severe liquidity issues, the management
team requested the JPLs to provide financial support to these deconsolidated entities. However, their requests were unanswered.
Given the inadequate support received from the JPLs, these former owners and employees of the deconsolidated entities have all
left. They have taken away the deconsolidated entities company seals, business license and other relevant registration documents
(&ldquo;the relevant legal items&rdquo; or &ldquo;these items&rdquo;) when they left. In China, these items are important for an
entity to conduct day to day business activities, including entering into employment contracts with teachers, issuing tuition fee
invoices to students, making payments for business expenses, submitting regulatory filings and similar corporate actions. Without
possessing these items the Company did not have control over these entities by the deconsolidation date described above in response
to Comment 2.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">Following the dismissal of JPLs and the return of
management authority to the Board of Directors of the Company, the Company regained control over the deconsolidated entities in
the second half of 2015. All the previously mentioned legal items were returned and were placed under the custody of the Company.
However, the deconsolidated entities businesses had ceased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">The Company also respectfully advises the Staff with
respect to specific points listed above:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 31.5pt"></TD><TD STYLE="width: 25.2pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The circumstance surrounding the failure by Tianjin Tutoring and Jilin Tutoring to provide you with financial statements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.6pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 52.45pt"></TD><TD STYLE="width: 21pt">a)</TD><TD STYLE="padding-right: 21.55pt">Tianjin Tutoring</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 1in">The relevant legal items, as well as books and records
of Tianjin Tutoring were under the management of the former owner and principal. The Tianjin Tutoring management stopped providing
financial statements to the Group beginning September 30, 2013 as the business was slowing down and they were not satisfied with
the JPL&rsquo;s management and support. Since then, the former owner and all the employees resigned from their positions in Tianjin
Tutoring. By the deconsolidation date, the Company did not have the ability to control the business activities of Tianjin Tutoring,
therefore the Company decided to deconsolidate this entity. As mentioned in the preceding section, the Company re-established control
over Tianjin Tutoring in the second half of 2015. However all the operations of Tianjin Tutoring had ceased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 52.5pt"></TD><TD STYLE="width: 21pt">b)</TD><TD STYLE="padding-right: 0.3in">Jilin Tutoring</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 73.5pt">The management of Jilin Tutoring did not receive
the level of expected financial support from the Company after the JPLs took control of the Company. Similar to Tianjin Tutoring,
their business was slowing down and the management was not satisfied with the JPL&rsquo;s management and support and therefore
they stopped providing financial statements to the Company. The relevant legal items were also under the custody of Jilin Tutoring
management. As such, management and employees of Jilin Tutoring all left the Company after September 30, 2014. By that time, the
Company had decided to deconsolidate this entity. As mentioned in the preceding section, the Company re-established control over
Jilin Tutoring in the second half of 2015. However all the operations of Jilin Tutoring had ceased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 21.55pt 0pt 73.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 29.25pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The extent to which each of the four subsidiaries continue to operate;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">The operations of all four subsidiaries have
completely ceased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.3in">Quantify the impact of the loss of these subsidiaries on your revenues and results of operations;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">The revenue included in the 2013 Group results
for Tianjin Tutoring, Guangzhou DP Tutoring, Guangzhou ZS Career Enhancement and Jilin Tutoring were RMB7.0 million (nine months),
RMB1.8 million (twelve months), RMB9.0 million (twelve months) and RMB15.3 million (twelve months), respectively; while there were
nil, nil, nil and RMB3.7 million (nine months) of revenue included in 2014 for these deconsolidated entities, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">All the four deconsolidated entities were operating
at a loss in 2013. The net loss for Tianjin Tutoring, Guangzhou DP Tutoring, Guangzhou ZS Career Enhancement and Jilin Tutoring
were RMB10.8 million (nine months), RMB4.1 million (twelve months), RMB6.5 million (twelve months) and RMB1.3 million (twelve months),
respectively; while there was nil, nil, nil and RMB2.0 million (nine months) of net loss in 2014 for these deconsolidated entities,
respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.3in">Describe your efforts to maintain and to recover control of these subsidiaries of your VIEs;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">Following the dismissal of JPLs and with the
return of management authority to the Board of Directors of the Company, the Company regained control of these deconsolidated entities
in the second half of 2015. A legal team has been sent to resolve the issues with the ex-owners. As a result, the management has
successfully regained control over the relevant legal items and the subsidiaries of VIEs. However, all the operations of these
deconsolidated entities have ceased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 21.55pt 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.1in">Describe what legal recourse, if any, is available for you to regain control over these four deconsolidated
subsidiaries of your VIEs; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">As mentioned in the preceding paragraph, the
Company has regained control over these four deconsolidated subsidiaries in the second half of 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.3in">Explain for us why you have not regained such control.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.3in 0pt 14.2pt">As mentioned in the preceding paragraph, the
Company has regained control over these four deconsolidated subsidiaries in the second half of 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt"><B>Determination of deconsolidation and accounting
literature: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt; text-align: justify">Following literature (ASC Subtopic
810-10, paragraph 810-10-40-4) states when a subsidiary should de-consolidated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt; text-align: justify"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt; text-align: justify"><I>A parent shall deconsolidate
a subsidiary or derecognize a group of assets specified in the preceding paragraph as of the date the parent ceases to have a controlling
financial interest in that subsidiary or group of assets. See paragraph 810-10-55-4A for related implementation guidance.&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 14.2pt"><B><I>810-10-55&nbsp;Implementation
Guidance and Illustrations&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 14.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><B><I>&gt;&gt;&nbsp;&nbsp;Deconsolidation
of a Subsidiary</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><B><I>55-4A</I></B><I>&nbsp;All
of the following are circumstances that result in deconsolidation of a subsidiary under paragraph&nbsp;810-10-40-4:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>a.&nbsp;A parent sells all
or part of its ownership interest in its subsidiary and, as a result, the parent no longer has a controlling financial interest
in the subsidiary.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>b.&nbsp;The expiration of a
contractual agreement that gave control of the subsidiary to the parent.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>c.&nbsp;The subsidiary issues
shares, which reduces the parent&rsquo;s ownership interest in the subsidiary so that the parent no longer has a controlling financial
interest in the subsidiary.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>d.&nbsp;The subsidiary becomes
subject to the control of a government, court, administrator, or regulator. &nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt; text-align: justify">The Company acknowledges that
the facts and circumstances relating to the four deconsolidated VIEs does not come within the examples referred to in the guidance
described above. However, they meet the requirements of item a.1. in the exceptions for consolidation for subsidiaries described
in paragraph 810-15-10 below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>A reporting entity shall apply
consolidation guidance for entities that are not in the scope of the Variable Interest Entities Subsections (see the Variable <B>Interest</B>
Entities Subsection of this Section) as follows:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>a.&nbsp;All majority-owned
subsidiaries&mdash;all entities in which a parent has a controlling financial interest&mdash;shall be consolidated. However, there
are exceptions to this general rule.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24pt"></TD><TD STYLE="width: 18pt"><I>1.</I></TD><TD STYLE="text-align: justify"><B><I>A majority-owned subsidiary shall not be consolidated if control does not rest with the majority
owner</I></B><B><I> [Emphasis added]</I></B><I>&mdash;for instance, if any of the following are present:</I></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>i.&nbsp;The subsidiary is in
legal reorganization</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>ii.&nbsp;The subsidiary is
in bankruptcy</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><I>iii.&nbsp;The subsidiary operates
under foreign exchange restrictions, controls, or other governmentally imposed uncertainties so severe that they cast significant
doubt on the parent's ability to control the subsidiary.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt">&hellip;..</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt">Although the Company owned 100% of the equity interest
in these deconsolidated entities during all periods involved, following the appointment of the JPLs, it lost effective control
(within the meaning of ASC 810) over these entities as a result of the withholding of relevant books and records (for Tianjin Tutoring
and Jilin Tutoring), including the relevant legal items, and accordingly the Company determined that further consolidation was
inappropriate for these entities. The facts and circumstances of this situation appear very similar to the item &ldquo;iii&rdquo;
above, although the controls and uncertainties were not &ldquo;governmentally imposed.&rdquo; We note, however, that the list of
(i)-(iv) is illustrative only, and that other circumstances could exist pursuant to which &ldquo;control does not rest with the
majority owner,&rdquo; which would be the situation encountered by the Company after losing possession of the relevant legal items
for the subsidiaries of the VIEs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt">5.</TD><TD>We note that your prior consolidation of Tianjin Tutoring, Guangzhou DP Tutoring, Guangzhou ZS Career Enhancement, and Jilin
Tutoring was based on your conclusion that you controlled each of these four subsidiaries. It appears from your disclosures in
prior filings that these four subsidiaries were governed and controlled in the same manner by which your currently consolidated
VIE subsidiaries are controlled. Explain to us management&rsquo;s consideration of this circumstance, the loss of control over
the four subsidiaries, when concluding that the Company&rsquo;s current consolidation policy is appropriate with respect to its
VIEs and similarly situated subsidiaries. Also, please tell us how your arrangements providing control over your currently consolidated
subsidiaries differs from the arrangements that were in place over your deconsolidated VIE subsidiaries.<BR>
<BR>
</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"><B><U>Company Response</U>: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">The Company respectfully advises the Staff that,
although the four deconsolidated entities were governed and controlled in the same manner as other entities within the Company&rsquo;s
control, the particular surrounding circumstances gave rise to critical concerns relating to these tutoring centers during the
periods under the JPL&rsquo;s control, as mentioned earlier, and impacted the level of actual control held by the entity&rsquo;s
majority equity interest owner within the meaning of ASC 810. Since the dismissal of the JPLs in May 2014, the Company&rsquo;s
Board of Directors has been reconstituted -- three new directors were appointed to the Board. With the new Board of Directors in
place, the Company&rsquo;s management has strengthened its control over its existing legal entities and believes the standards
stated in ASC 810 are met with respect to these entities. Management is of the view that the likelihood of losing control of its
existing entities is remote.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">Additionally, the Company has taken the actions listed
below (which differ from the arrangements that were in place over the deconsolidated VIE subsidiaries):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"> -Sending new management teams of the Company to individual schools following acquisition and replacing all management positions previously governed by the former owners;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt"> -Centralizing the operations of respective schools and tutoring centers by:</P>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 35.45pt"></TD><TD STYLE="width: 18pt">a.</TD><TD>setting up Financial Share Service Centers across the Company and standardizing the Company&rsquo;s Finance and Operation Policies
throughout the Company; as well as</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 35.45pt"></TD><TD STYLE="width: 18pt">b.</TD><TD>Implementing new ERP systems to standardize operations, enhance central controls, and create synergy of the Company&rsquo;s
resources;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">-Streamlining the internal control structure with
effective communication channels and regular management meetings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt">Since the deconsolidation of these entities, the
Company&rsquo;s management is heavily involved in restructuring the tutoring centers and the school operating process through the
appointment of key management persons in the tutoring centers and schools, centralizing treasury management and reorganizing finance
policies and procedures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt">With the above practices in place, the Company is
confident that it will be able to control all legal entities within the Company going forward.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.05in; text-indent: 0.45in">Please note that attached hereto
as <U>Exhibit A</U> is the written acknowledgement by the Company. Should you have any questions relating to the foregoing or wish
to discuss any aspect of the Company&rsquo;s responses, please contact me at 212.407.4970.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.05in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in">Very truly yours,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in">/s/ Norwood Beveridge</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in">Norwood Beveridge</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">EXHIBIT A</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ACKNOWLEDGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In response to the
comments of the staff (the &ldquo;Staff&rdquo;) of the Securities and Exchange Commission (the &ldquo;Commission&rdquo;) contained
in its letter dated December 21, 2015 with respect to the Form 20-F File No. 001-34824, filed on April 21, 2015, by Ambow Education
Holding Ltd. (the &ldquo;Company&rdquo;), the undersigned hereby acknowledges on behalf of the Company that in connection with
its response to the Staff&rsquo;s comments:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the Company is responsible for the adequacy and accuracy of the disclosure in the filing;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission
from taking any action with respect to the filing; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission
or any person under the federal securities laws of the United States.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="RIGHT" STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td colspan="3" style="padding-right: 2.75pt"><b>Ambow Education Holding Ltd.</b></td></tr>
<tr>
    <td style="padding-right: 0.75pt">&nbsp;</td>
    <td colspan="2">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1.8pt 0pt 0; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1.8pt 0pt 0">&nbsp;</P></td></tr>
<tr>
    <TD STYLE="vertical-align: top; width: 11%; padding-right: 0.75pt">By:</td>
    <TD STYLE="vertical-align: bottom; width: 2%; padding-right: 0.8pt">&nbsp;</td>
    <TD STYLE="vertical-align: bottom; width: 87%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 0.5pt solid">/s/ Jin Huang</P></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 0.75pt">Name:</td>
    <td style="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 0.8pt">Dr. Jin Huang</td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 0.75pt">Title:</td>
    <td style="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 0.8pt">President and Chief Executive Officer</td></tr>
<tr>
    <td colspan="3" style="padding-right: 2.75pt">&nbsp;</td></tr>
</table><BR STYLE="clear: both">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.05in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.05in; text-align: justify"><B></B></P>

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<P STYLE="margin: 0"></P>

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