Xueda Education Group is a holding company and was incorporated under the laws of the Cayman Islands on April 24, 2009. The Company, its subsidiaries, its consolidated variable interest entity ('VIE') and VIE's subsidiaries and schools are mainly engaged in providing private personalized tutoring services for primary and secondary school students in the People's Republic of China. Its personalized service model consists of six main components: assessment, consultation, formulation of a customized study plan, personalized tutoring, delivery of student-oriented supporting services and results. As of December 31, 2013, 109 of its 111 schools were solely sponsored and established either directly by its VIE or by one of its VIE's subsidiaries, and two of its 111 schools were sponsored and established directly by one of its VIE's schools. The Company delivers its services to students through a national network, consisting of 408 learning centers as of December 31, 2013, all of which are operated by the Company, in 77 cities in China. The Company faces competition from other large market participants and various smaller, mostly local and regional players. It also faces competition from many different companies which focus on multiple areas related to its business and are able to cross-sell their services across their business lines. Private schools providing certifications, pre-school education, education for self-study aid and other academic education are subject to approval by the education authorities, while private vocational schools are subject to approvals from the authorities in charge of labor and social welfare.