6-K
Ambow Education Holding Ltd. (AMBO)
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUERPURSUANT TO RULE 13a-16 OR 15d-16 UNDERTHE SECURITIES EXCHANGE ACT OF 1934
For the month of April 2021
Commission File Number: 001-34824
Ambow Education Holding Ltd.
Not Applicable
(Translation of Registrant’s name into English)
Cayman Islands
(Jurisdiction of incorporation or organization)
12th Floor, Tower 1, Financial Street Chang’AnCenter,
Shijingshan District, Beijing 100043
People’s Republic of China
Telephone: +86 (10) 6206-8000
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If “Yes” marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___
Other Information
Attached hereto as Exhibit 99.1 is a press release dated April 8, 2021, announcing the Company’s unaudited financial and operating results for the fourth quarter and audited financial and operating results for the fiscal year ended December 31, 2020, respectively.
Exhibits
99.1 Press Release, dated April 8, 2021
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Ambow Education Holding Ltd. | |
|---|---|
| By: | /s/Jin Huang |
| Name: Dr. Jin Huang | |
| Title: President and Chief Executive Officer |
Date: April 8, 2021
Exhibit 99.1
Ambow Education Announces Fourth Quarter andFull Year 2020 Financial Results
BEIJING, April 8, 2021 -- Ambow Education Holding Ltd. (“Ambow” or the “Company”) (NYSE American: AMBO), a leading national provider of educational and career enhancement services in China, today announced its unaudited financial and operating results for the fourth quarter and audited financial and operating results for the fiscal year ended December 31, 2020, respectively.
“In the fourth quarter of 2020, we remained focused and diligent in our efforts to help students achieve positive learning outcomes, especially as they navigate these challenging times,” noted Dr. Jin Huang, Ambow’s President and Chief Executive Officer. “We’re pleased to report improved operating profitability in the fourth quarter, driven by healthy top-line performance and effective control over operating costs and expenses. Notably, gross margin increased 590 basis points year-over-year to 38.1%, reflecting the resilience of our business model in the wake of a weakened global economy due to COVID-19. With two decades of experience in education technology under our belt and powerful growth initiatives in place, we are confident in our ability to drive solid growth and further cement our leading position in China’s career enhancement market.”
“We recognize the increasingly pivotal role of advanced technologies and solutions as these uncertain times have reshaped the way education is delivered and received. The outbreak of COVID-19 further accelerated the integration of technology into classroom learning and significantly boosted the demand for online education from both students and education professionals. Through innovative solutions such as Huanyujun Education Hub, we are cultivating an online-to-offline education ecosystem that is built on cloud-based infrastructure to empower teaching and address both in-school and after-school learning needs. In December 2020, Ambow won approval to establish a postdoctoral scientific research workstation specialized in next-generation education tech research and development, a further testament to our strong capabilities in technology advancement and innovation. Heading into 2021, we look forward to executing our growth initiatives with the goal of consistently driving shareholder value," concluded Dr. Huang.
Fourth Quarter 2020 Financial Highlights
| · | Net revenues for the fourth quarter of<br>2020 remained flat at RMB173.5 million (US$26.6 million) compared to RMB173.3 million in the same period of 2019. |
|---|---|
| · | Gross profit for the fourth quarter of<br>2020 increased by 18.7% to RMB66.1 million (US$10.1 million) from RMB55.7 million in the same period of 2019. Gross profit margin was<br>38.1%, compared with 32.1% for the fourth quarter of 2019. The increases in gross profit and gross profit margin were mainly attributable<br>to stringent cost management. |
| --- | --- |
| · | Operatingexpenses for the fourth quarter of 2020 decreased by 11.7% to RMB62.8 million (US$9.6 million) from RMB71.1 million in the same period<br>of 2019. The decrease was primarily attributable to stringent expense controls to improve operating efficiency, partially offset by operating<br>expenses related to NewSchool of Architecture and Design, LLC (“NewSchool”) which was acquired in the first quarter of 2020. |
| --- | --- |
| · | Operating income for the fourth quarter<br>of 2020 was RMB3.3 million (US$0.5 million), compared to operating loss of RMB15.4 million in the same period of 2019. |
| --- | --- |
| · | Net income attributable to ordinary shareholderswas RMB11.0 million (US$1.7 million), or RMB0.23 (US$0.04) per basic and diluted share, compared with a net loss of RMB12.2 million,<br>or RMB0.28 (US$0.04) per basic and diluted share, for the fourth quarter of 2019. |
| --- | --- |
| · | As of December 31, 2020, Ambow maintained strong<br>cash resources of RMB282.5 million (US$43.3 million), comprised of cash and cash equivalents of RMB118.8 million (US$18.2 million), restricted<br>cash of RMB0.8 million (US$0.1 million) and short-term investments of RMB162.9 million (US$25.0 million). |
| --- | --- |
Fiscal Year 2020 Financial Highlights
| · | Net revenues for fiscal year 2020 decreased<br>by 8.9% to RMB532.0 million (US$81.5 million) from RMB583.9 million in 2019. The decrease was primarily due to fewer boarding and other<br>ancillary services provided for K-12 schools, and fewer services provided at the Company’s tutoring centers, training offices and<br>college campuses as a result of the outbreak of COVID-19. This was partially offset by the revenues from NewSchool. |
|---|
| · | Gross profit for fiscal year 2020 decreased<br>by 25.9% to RMB144.5 million (US$22.1 million) from RMB195.0 million in 2019. Gross profit margin was 27.2%, compared with 33.4% in 2019.<br>The decreases in gross profit and margin were mainly attributable to the decrease in revenue while keeping cost deployment to weather<br>the COVID-19 pandemic in 2020. |
|---|---|
| · | Operatingexpenses for fiscal year 2020 decreased by 8.1% to RMB269.0 million (US$41.2 million) from RMB292.7 million in 2019. The decrease<br>was primarily attributable to lower expenditures due to the temporary suspension of operations at training offices and tutoring centers<br>during the period as part of the national pandemic containment efforts and stringent expense controls to improve operating efficiency.<br>The decrease was partially offset by NewSchool’s operating expenses. |
| --- | --- |
| · | Operatingloss for fiscal year 2020 was RMB124.6 million (US$19.1 million), compared to operating loss of RMB97.7 million in 2019. |
| --- | --- |
| · | Net loss attributable to ordinary shareholderswas RMB62.7 million (US$9.6 million), or RMB1.41 (US$0.22) per basic and diluted share, compared with a net loss of RMB99.9 million,<br>or RMB2.30 (US$0.33) per basic and diluted share, in 2019. |
| --- | --- |
The Company's fourth quarter and fiscal year 2020 financial and operating results can also be found on its Form 6-K and Form 20-F filed with the U.S. Securities and Exchange Commission at www.sec.gov.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all amounts translated from RMB to U.S. dollars for the fourth quarter and the twelve months of 2020 are based on the effective exchange rate of 6.5250 as of December 31, 2020; all amounts translated from RMB to U.S. dollars for the fourth quarter and the twelve months of 2019 are based on the effective exchange rate of 6.9618 as of December 31, 2019. The exchange rates were according to the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.
About Ambow Education Holding Ltd.
Ambow Education Holding Ltd. is a leading national provider of educational and career enhancement services in China, offering high-quality, individualized services and products. With its extensive network of regional service hubs complemented by a dynamic proprietary learning platform and distributors, Ambow provides its services and products to students in 15 out of the 34 provinces and autonomous regions within China.
Follow us on Twitter: @Ambow_Education
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the outlook and quotations from management in this announcement, as well as Ambow’s strategic and operational plans, contain forward-looking statements. Ambow may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements, including but not limited to the following: the Company’s goals and strategies, expansion plans, the expected growth of the content and application delivery services market, the Company’s expectations regarding keeping and strengthening its relationships with its customers, and the general economic and business conditions in the regions where the Company provides its solutions and services. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Ambow undertakes no duty to update such information, except as required under applicable law.
For investor and media inquiries please contact:
Ambow Education Holding Ltd.
Tel: +86-10-6206-8000
Email: ir@ambow.com
The Piacente Group | Investor Relations
Tel: +1-212-481-2050 or +86-10-6508-0677
E-mail: ambow@tpg-ir.com
AMBOW EDUCATION HOLDING LTD.
AUDITED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands,except for share and per share data)
| As of December 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2019 | |||||||
| RMB | RMB | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | 118,821 | 157,600 | |||||
| Restricted cash | 824 | - | |||||
| Short term investments, available for sale | 117,854 | 57,487 | |||||
| Short term investments, held to maturity | 45,000 | 31,000 | |||||
| Accounts receivable, net | 20,972 | 17,939 | |||||
| Amounts due from related parties | 3,024 | 2,318 | |||||
| Prepaid and other current assets, net | 117,634 | 133,296 | |||||
| Total current assets | 424,129 | 399,640 | |||||
| Non-current assets: | |||||||
| Property and equipment, net | 144,492 | 157,463 | |||||
| Land use rights, net | 1,715 | 1,759 | |||||
| Intangible assets, net | 54,808 | 56,607 | |||||
| Goodwill | 25,710 | 60,353 | |||||
| Deferred tax assets, net | 6,338 | 10,195 | |||||
| Operating lease right-of-use asset | 247,608 | 257,361 | |||||
| Finance lease right-of-use asset | 5,850 | 6,450 | |||||
| Other non-current assets, net | 139,067 | 70,971 | |||||
| Total non-current assets | 625,588 | 621,159 | |||||
| Total assets | 1,049,717 | 1,020,799 | |||||
| LIABILITIES | |||||||
| Current liabilities: | |||||||
| Short-term borrowing * | 10,000 | - | |||||
| Deferred revenue * | 163,699 | 165,111 | |||||
| Accounts payable * | 19,423 | 14,718 | |||||
| Accrued and other liabilities * | 209,590 | 192,957 | |||||
| Income taxes payable, current * | 184,638 | 180,715 | |||||
| Amounts due to related parties * | 2,543 | 1,971 | |||||
| Operating lease liability, current * | 53,702 | 53,512 | |||||
| Total current liabilities | 643,595 | 608,984 | |||||
| Non-current liabilities: | |||||||
| Long-term borrowing | 9,594 | - | |||||
| Other non-current liabilities * | 292 | - | |||||
| Income taxes payable, non-current * | 34,763 | 32,152 | |||||
| Operating lease liability, non-current * | 220,319 | 216,067 | |||||
| Total non-current liabilities | 264,968 | 248,219 | |||||
| Total liabilities | 908,563 | 857,203 | |||||
| EQUITY | |||||||
| Preferred shares | |||||||
| (US 0.003<br> par value;1,666,667 shares authorized, nil issued and outstanding as of December 31, 2019 and 2020) | - | - | |||||
| Class A Ordinary shares | |||||||
| (US0.003 par value; 66,666,667<br> and 66,666,667 shares authorized, 38,858,199 and 41,923,276 shares issued and outstanding as of December 31, 2019 and 2020,<br> respectively) | 794 | 730 | |||||
| Class C Ordinary shares | |||||||
| (US0.003 par value; 8,333,333 and<br> 8,333,333 shares authorized, 4,708,415 and 4,708,415 shares issued and outstanding as of December 31, 2019 and 2020,<br> respectively) | 90 | 90 | |||||
| Additional paid-in capital | 3,545,073 | 3,508,745 | |||||
| Statutory reserve | 4,210 | 20,185 | |||||
| Accumulated deficit | ) | (3,419,146 | ) | (3,371,815 | ) | ||
| Accumulated other comprehensive income | 12,101 | 6,341 | |||||
| Total Ambow Education Holding Ltd.’s equity | 143,122 | 164,276 | |||||
| Non-controlling interests | ) | (1,968 | ) | (680 | ) | ||
| Total equity | 141,154 | 163,596 | |||||
| Total liabilities and equity | 1,049,717 | 1,020,799 |
All values are in US Dollars.
* All of the VIE's assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets.
AMBOW EDUCATION HOLDING LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except for share and per share data)
| For the years ended December 31, | For the three months ended December 31, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2020 | 2019 | 2020 | 2020 | 2019 | |||||||||||
| US | RMB | RMB | US | RMB | RMB | |||||||||||
| Audited | Audited | Audited | Unaudited | Unaudited | Unaudited | |||||||||||
| NET REVENUES | ||||||||||||||||
| Educational program and services | 525,727 | 582,706 | 167,629 | 173,339 | ||||||||||||
| Intelligent program and services | 6,253 | 1,203 | 5,901 | 10 | ||||||||||||
| Total net revenues | 531,980 | 583,909 | 173,530 | 173,349 | ||||||||||||
| COST OF REVENUES | ||||||||||||||||
| Educational program and services | ) | (379,571 | ) | (383,635 | ) | ) | (101,888 | ) | (118,181 | ) | ||||||
| Intelligent program and services | ) | (7,919 | ) | (5,259 | ) | ) | (5,579 | ) | 559 | |||||||
| Total cost of revenues | ) | (387,490 | ) | (388,894 | ) | ) | (107,467 | ) | (117,622 | ) | ||||||
| GROSS PROFIT | 144,490 | 195,015 | 66,063 | 55,727 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and marketing | ) | (52,355 | ) | (55,721 | ) | ) | (14,494 | ) | (14,943 | ) | ||||||
| General and administrative | ) | (174,283 | ) | (194,417 | ) | ) | (47,053 | ) | (53,907 | ) | ||||||
| Research and development | ) | (5,703 | ) | (3,793 | ) | ) | (1,247 | ) | (2,238 | ) | ||||||
| Impairment loss | ) | (36,699 | ) | (38,754 | ) | - | - | |||||||||
| Total operating expenses | ) | (269,040 | ) | (292,685 | ) | ) | (62,794 | ) | (71,088 | ) | ||||||
| OPERATING (LOSS) INCOME | ) | (124,550 | ) | (97,670 | ) | 3,269 | (15,361 | ) | ||||||||
| OTHER INCOME (EXPENSES) | ||||||||||||||||
| Interest income, net | 9,501 | 5,379 | 2,351 | 2,036 | ||||||||||||
| Foreign exchange gain (loss), net | 980 | 23 | 949 | (23 | ) | |||||||||||
| Other (loss) income, net | ) | (1,244 | ) | 396 | ) | (2,084 | ) | 203 | ||||||||
| Gain from derecognition of liabilities | 3,926 | - | 3,926 | - | ||||||||||||
| Gain from deregistration of subsidiaries | 3,967 | 1,841 | - | - | ||||||||||||
| Gain on disposal of subsidiaries | 752 | - | - | 562 | ||||||||||||
| Gain on the bargain purchase | 40,273 | - | - | - | ||||||||||||
| Gain from fair value change of contingent consideration payable | - | 1,322 | - | 1,322 | ||||||||||||
| Gain on sale of investment available for sale | 3,476 | 1,200 | 999 | 778 | ||||||||||||
| Total other income | 61,631 | 10,161 | 6,141 | 4,878 | ||||||||||||
| (LOSS) INCOME BEFORE INCOME TAX AND NON-CONTROLLING INTEREST | ) | (62,919 | ) | (87,509 | ) | 9,410 | (10,483 | ) | ||||||||
| Income tax (expense) benefit | ) | (1,062 | ) | (12,917 | ) | 1,337 | (1,885 | ) | ||||||||
| NET (LOSS) INCOME | ) | (63,981 | ) | (100,426 | ) | 10,747 | (12,368 | ) | ||||||||
| Less: Net loss attributable to non-controlling interest | ) | (1,269 | ) | (485 | ) | ) | (229 | ) | (216 | ) | ||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS | ) | (62,712 | ) | (99,941 | ) | 10,976 | (12,152 | ) | ||||||||
| NET (LOSS) INCOME | ) | (63,981 | ) | (100,426 | ) | 10,747 | (12,368 | ) | ||||||||
| OTHER COMPREHENSIVE INCOME, NET OF TAX | ||||||||||||||||
| Foreign currency translation adjustments | 6,234 | (2,924 | ) | ) | (4,497 | ) | 343 | |||||||||
| Unrealized gains on short term investments | ||||||||||||||||
| Unrealized holding gains arising during period | 2,458 | 2,046 | 940 | 808 | ||||||||||||
| Less: reclassification adjustment for gains included in net income | 2,932 | 1,086 | 771 | 597 | ||||||||||||
| Other comprehensive income (loss) | 5,760 | (1,964 | ) | ) | (4,328 | ) | 554 | |||||||||
| TOTAL COMPREHENSIVE (LOSS) INCOME | ) | (58,221 | ) | (102,390 | ) | 6,419 | (11,814 | ) | ||||||||
| Net (loss) income per share – basic and diluted | ) | (1.41 | ) | (2.30 | ) | 0.23 | (0.28 | ) | ||||||||
| Weighted average shares used in calculating basic and diluted net (loss) income per share | 44,372,326 | 43,505,175 | 46,721,812 | 43,529,884 |
All values are in US Dollars.
AMBOW EDUCATION HOLDING LTD.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(All amounts in thousands, except for share and per share data)
| Attributable to Ambow Education Holding Ltd.’s Equity | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Accumulated | ||||||||||||||||||||||||||
| Class A Ordinary | Class C Ordinary | Additional | other | Non- | ||||||||||||||||||||||
| shares | shares | paid-in | Statutory | Accumulated | comprehensive | controlling | Total | |||||||||||||||||||
| Shares | Amount | Shares | Amount | capital | reserves | deficit | income | Interest | Equity | |||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||
| Balance as of January 1, 2020 | 38,858,199 | 730 | 4,708,415 | 90 | 3,508,745 | 20,185 | (3,371,815 | ) | 6,341 | (680 | ) | 163,596 | ||||||||||||||
| Share-based compensation | - | - | - | - | 238 | - | - | - | - | 238 | ||||||||||||||||
| Issuance of ordinary shares for restricted stock award | 12,500 | 0 | - | - | (0 | ) | - | - | - | - | - | |||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | - | - | 433 | - | 433 | ||||||||||||||||
| Unrealized gain on investment, net of income taxes | - | - | - | - | - | - | - | 154 | - | 154 | ||||||||||||||||
| Impact on adoption of ASC 326 | - | - | - | - | - | - | (594 | ) | - | - | (594 | ) | ||||||||||||||
| Net income/(loss) | - | - | - | - | - | - | 6,039 | - | (412 | ) | 5,627 | |||||||||||||||
| Balance as of March 31, 2020 | 38,870,699 | 730 | 4,708,415 | 90 | 3,508,983 | 20,185 | (3,366,370 | ) | 6,928 | (1,092 | ) | 169,454 | ||||||||||||||
| Share-based compensation | - | - | - | - | 242 | - | - | - | - | 242 | ||||||||||||||||
| Issuance of ordinary shares for restricted stock award | 12,500 | 1 | - | - | (1 | ) | - | - | - | - | - | |||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | - | - | 7,895 | - | 7,895 | ||||||||||||||||
| Unrealized gain on investment, net of income taxes | - | - | - | - | - | - | - | 118 | - | 118 | ||||||||||||||||
| Deregistration of subsidiaries | - | - | - | - | - | (15,473 | ) | 15,473 | - | - | - | |||||||||||||||
| Net income/(loss) | - | - | - | - | - | - | 4,807 | - | (296 | ) | 4,511 | |||||||||||||||
| Balance as of June 30, 2020 | 38,883,199 | 731 | 4,708,415 | 90 | 3,509,224 | 4,712 | (3,346,090 | ) | 14,941 | (1,388 | ) | 182,220 | ||||||||||||||
| Share-based compensation | - | - | - | - | 239 | - | - | - | - | 239 | ||||||||||||||||
| Issuance of ordinary shares for restricted stock award | 12,501 | 0 | - | - | (0 | ) | - | - | - | - | - | |||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | - | - | 2,403 | - | 2,403 | ||||||||||||||||
| Unrealized gain on investment, net of income taxes | - | - | - | - | - | - | - | (915 | ) | - | (915 | ) | ||||||||||||||
| Deregistration of subsidiary | - | - | - | - | - | - | - | - | (16 | ) | (16 | ) | ||||||||||||||
| Disposal of subsidiaries | - | - | - | - | (133 | ) | (502 | ) | 502 | - | - | (133 | ) | |||||||||||||
| Net loss | - | - | - | - | - | - | (84,534 | ) | - | (332 | ) | (84,866 | ) | |||||||||||||
| Balance as of September 30, 2020 | 38,895,700 | 731 | 4,708,415 | 90 | 3,509,330 | 4,210 | (3,430,122 | ) | 16,429 | (1,736 | ) | 98,932 | ||||||||||||||
| Share-based compensation | - | - | - | - | 228 | - | - | - | - | 228 | ||||||||||||||||
| Issuance of ordinary shares for restricted stock award | 12,500 | 0 | - | - | (0 | ) | - | - | - | - | - | |||||||||||||||
| Issuance of ordinary shares in a registered direct offering | 3,015,076 | 63 | - | - | 35,515 | - | - | - | - | 35,578 | ||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | - | - | (4,497 | ) | - | (4,497 | ) | ||||||||||||||
| Unrealized gain on investment, net of income taxes | - | - | - | - | - | - | - | 169 | - | 169 | ||||||||||||||||
| Deregistration of subsidiary | - | - | - | - | - | - | - | - | (3 | ) | (3 | ) | ||||||||||||||
| Net income/(loss) | - | - | - | - | - | - | 10,976 | - | (229 | ) | 10,747 | |||||||||||||||
| Balance as of December 31, 2020 | 41,923,276 | 794 | 4,708,415 | 90 | 3,545,073 | 4,210 | (3,419,146 | ) | 12,101 | (1,968 | ) | 141,154 | ||||||||||||||
| Balance as of January 1, 2019 | 38,756,289 | 794 | 4,708,415 | 90 | 3,507,123 | 20,149 | (3,271,838 | ) | 8,305 | (1,786 | ) | 262,771 | ||||||||||||||
| Share-based compensation | - | - | - | - | 872 | - | - | - | - | 872 | ||||||||||||||||
| Issuance of ordinary shares for restricted stock award | 28,646 | 1 | - | - | (1 | ) | - | - | - | - | - | |||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | - | - | (2,428 | ) | - | (2,428 | ) | ||||||||||||||
| Unrealized gain on investment, net of income taxes | - | - | - | - | - | - | - | 75 | - | 75 | ||||||||||||||||
| Net loss | - | - | - | - | - | - | (23,756 | ) | - | (93 | ) | (23,849 | ) | |||||||||||||
| Balance as of March 31, 2019 | 38,784,935 | 729 | 4,708,415 | 90 | 3,507,994 | 20,149 | (3,295,594 | ) | 5,952 | (1,879 | ) | 237,441 | ||||||||||||||
| Share-based compensation | - | - | - | - | 266 | - | - | - | - | 266 | ||||||||||||||||
| Issuance of ordinary shares for restricted stock award | 19,097 | 0 | - | - | (0 | ) | - | - | - | - | - | |||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | - | - | (746 | ) | - | (746 | ) | ||||||||||||||
| Unrealized gain on investment, net of income taxes | - | - | - | - | - | - | - | 173 | - | 173 | ||||||||||||||||
| Addition of noncontrolling interests resulting from new subsidiaries | - | - | - | - | - | - | - | - | 502 | 502 | ||||||||||||||||
| Net income (loss) | - | - | - | - | - | - | 8,778 | - | (180 | ) | 8,598 | |||||||||||||||
| Balance as of June 30, 2019 | 38,804,032 | 729 | 4,708,415 | 90 | 3,508,260 | 20,149 | (3,286,816 | ) | 5,379 | (1,557 | ) | 246,234 | ||||||||||||||
| Share-based compensation | - | - | - | - | 244 | - | - | - | - | 244 | ||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | - | - | (93 | ) | - | (93 | ) | ||||||||||||||
| Unrealized gain on investment, net of income taxes | - | - | - | - | - | - | - | 501 | - | 501 | ||||||||||||||||
| Net (loss) / income | - | - | - | - | - | - | (72,811 | ) | - | 4 | (72,807 | ) | ||||||||||||||
| Balance as of September 30, 2019 | 38,804,032 | 729 | 4,708,415 | 90 | 3,508,504 | 20,149 | (3,359,627 | ) | 5,787 | (1,553 | ) | 174,079 | ||||||||||||||
| Share-based compensation | - | - | - | - | 242 | - | - | - | - | 242 | ||||||||||||||||
| Issuance of ordinary shares for restricted stock award | 54,167 | 1 | - | - | (1 | ) | - | - | - | - | - | |||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | - | - | 343 | - | 343 | ||||||||||||||||
| Appropriation to statutory reserves | - | - | - | - | - | 36 | (36 | ) | - | - | - | |||||||||||||||
| Unrealized gain on investment, net of income taxes | - | - | - | - | - | - | - | 211 | - | 211 | ||||||||||||||||
| Deregistration of subsidiaries | - | - | - | - | - | - | - | - | 306 | 306 | ||||||||||||||||
| Noncontrolling interests from new subsidiaries | - | - | - | - | - | - | - | - | 783 | 783 | ||||||||||||||||
| Net loss | - | - | - | - | - | - | (12,152 | ) | - | (216 | ) | (12,368 | ) | |||||||||||||
| Balance as of December 31, 2019 | 38,858,199 | 730 | 4,708,415 | 90 | 3,508,745 | 20,185 | (3,371,815 | ) | 6,341 | (680 | ) | 163,596 |
Discussion of SegmentOperations
(All amounts in thousands)
| For the years ended December 31, | For the three months ended December 31, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2020 | 2019 | 2020 | 2020 | 2019 | |||||||||||
| US | RMB | RMB | US | RMB | RMB | |||||||||||
| NET REVENUES | ||||||||||||||||
| K-12 Schools | 291,539 | 313,747 | 105,773 | 110,533 | ||||||||||||
| CP&CE Programs | 240,441 | 270,162 | 67,757 | 62,816 | ||||||||||||
| Total net revenues | 531,980 | 583,909 | 173,530 | 173,349 | ||||||||||||
| COST OF REVENUES | ||||||||||||||||
| K-12 Schools | ) | (188,628 | ) | (197,064 | ) | ) | (68,656 | ) | (68,177 | ) | ||||||
| CP&CE Programs | ) | (198,862 | ) | (191,830 | ) | ) | (38,811 | ) | (49,445 | ) | ||||||
| Total cost of revenues | ) | (387,490 | ) | (388,894 | ) | ) | (107,467 | ) | (117,622 | ) | ||||||
| GROSS PROFIT | ||||||||||||||||
| K-12 Schools | 102,911 | 116,683 | 37,117 | 42,356 | ||||||||||||
| CP&CE Programs | 41,579 | 78,332 | 28,946 | 13,371 | ||||||||||||
| Total gross profit | 144,490 | 195,015 | 66,063 | 55,727 |
All values are in US Dollars.