Sunlands Technology Group 6-K, filed Aug 18, 2023

Sunlands Technology Group (STG)

6-K 2023-08-18 For: 2023-08-18

Added on April 10, 2026

About this 6-K

Sunlands Technology Group filed this 6-K on August 18, 2023.

SUNLANDS TECHNOLOGY GROUP UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except for share and per share data, or otherwise noted)
	As of December 31,		As of June 30,
	2022		2023
	RMB		RMB		US$
ASSETS
Current assets
Cash and cash equivalents		753,642		746,770		102,984
Restricted cash		3,762		2,705		373
Short-term investments		70,542		63,209		8,717
Prepaid expenses and other current assets		98,272		116,157		16,019
Deferred costs, current		42,886		23,238		3,205
Total current assets		969,104		952,079		131,298
Non-current assets
Property and equipment, net		813,783		799,804		110,298
Intangible assets, net		1,509		1,784		246
Right-of-use assets		274,643		139,732		19,270
Deferred costs, non-current		78,839		72,789		10,038
Long-term investments		73,513		66,419		9,160
Deferred tax assets		26,799		20,270		2,795
Other non-current assets		37,880		35,342		4,874
Total non-current assets		1,306,966		1,136,140		156,681
TOTAL ASSETS		2,276,070		2,088,219		287,979

LIABILITIES AND SHAREHOLDERS’ DEFICIT

LIABILITIES
Current liabilities
Accrued expenses and other current liabilities		436,339		367,034		50,616
Deferred revenue, current		986,086		716,647		98,830
Lease liabilities, current portion		17,065		7,394		1,020
Long-term debt, current portion		38,654		38,654		5,331
Total current liabilities		1,478,144		1,129,729		155,797

	As of December 31,			As of June 30,
	2022			2023
	RMB			RMB			US$
Non-current liabilities
Deferred revenue, non-current		704,860			662,426			91,353
Lease liabilities, non-current portion		316,844			161,215			22,233
Deferred tax liabilities		5,984			4,555			628
Other non-current liabilities		6,770			6,870			947
Long-term debt, non-current portion		143,319			123,992			17,099
Total non-current liabilities		1,177,777			959,058			132,260
TOTAL LIABILITIES		2,655,921			2,088,787			288,057

SHAREHOLDERS’ DEFICIT
Class A ordinary shares (par value of US$0.00005, 796,062,195 shares
authorized; 2,982,516 and 3,131,807 shares issued as of December 31, 2022
and June 30, 2023, respectively; 2,618,698 and 2,740,119 shares
outstanding as of December 31, 2022 and June 30, 2023, respectively)		1			1			-
Class B ordinary shares (par value of US$0.00005, 826,389 shares
authorized; 826,389 and 826,389 shares issued and outstanding
as of December 31, 2022 and June 30, 2023, respectively)		-			-			-
Class C ordinary shares (par value of US$0.00005, 203,111,416 shares
authorized; 3,481,353 and 3,332,062 shares issued and outstanding
as of December 31, 2022 and June 30, 2023, respectively)		1			1			-
Treasury stock		-			-			-
Accumulated deficit		(2,812,114	)		(2,458,125	)		(338,991	)
Additional paid-in capital		2,309,740			2,308,277			318,326
Accumulated other comprehensive income		127,885			155,161			21,398
Total Sunlands Technology Group shareholders’ (deficit)/equity		(374,487	)		5,315			733
Non-controlling interest		(5,364	)		(5,883	)		(811	)
TOTAL SHAREHOLDERS’ DEFICIT		(379,851	)		(568	)		(78	)
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT		2,276,070			2,088,219			287,979

SUNLANDS TECHNOLOGY GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for share and per share data, or otherwise noted)
	For the Three Months Ended June 30,
	2022			2023
	RMB			RMB			US$
Net revenues		554,991			526,353			72,587
Cost of revenues		(91,237	)		(59,491	)		(8,204	)
Gross profit		463,754			466,862			64,383

Operating expenses
Sales and marketing expenses		(292,978	)		(269,969	)		(37,230	)
Product development expenses		(11,578	)		(7,992	)		(1,102	)
General and administrative expenses		(46,635	)		(33,085	)		(4,563	)
Total operating expenses		(351,191	)		(311,046	)		(42,895	)
Income from operations		112,563			155,816			21,488
Interest income		3,842			7,561			1,043
Interest expense		(2,552	)		(2,046	)		(282	)
Other income, net		4,750			8,171			1,127
Gain on disposal of a subsidiary		-			247			34
Income before income tax (expenses)/benefit
and (loss)/gain from equity method investments		118,603			169,749			23,410
Income tax (expenses)/benefit		(3,652	)		1,404			194
(Loss)/gain from equity method investments		(391	)		2,730			376
Net income		114,560			173,883			23,980

Less: Net loss attributable to non-controlling interest		(52	)		-			-
Net income attributable to Sunlands Technology Group		114,612			173,883			23,980
Net income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		16.89			25.12			3.46
Weighted average shares used in calculating net income
per ordinary share:
Basic and diluted		6,784,685			6,921,304			6,921,304

SUNLANDS TECHNOLOGY GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for share and per share data, or otherwise noted)
	For the Six Months Ended June 30,
	2022			2023
	RMB			RMB			US$
Net revenues		1,168,305			1,093,229			150,763
Cost of revenues		(187,957	)		(127,646	)		(17,603	)
Gross profit		980,348			965,583			133,160

Operating expenses
Sales and marketing expenses		(587,975	)		(541,383	)		(74,660	)
Product development expenses		(23,933	)		(17,672	)		(2,437	)
General and administrative expenses		(85,095	)		(72,725	)		(10,029	)
Total operating expenses		(697,003	)		(631,780	)		(87,126	)
Income from operations		283,345			333,803			46,034
Interest income		7,008			14,122			1,948
Interest expense		(5,277	)		(4,170	)		(575	)
Other income, net		14,342			16,969			2,340
Gain on disposal of a subsidiary		-			247			34
Impairment loss on long-term investments		(500	)		-			-
Income before income tax expenses
and loss from equity method investments		298,918			360,971			49,781
Income tax expenses		(4,343	)		(6,327	)		(873	)
Loss from equity method investments		(604	)		(654	)		(90	)
Net income		293,971			353,990			48,818

Less: Net (loss)/income attributable to non-controlling interest		(1,279	)		1			-
Net income attributable to Sunlands Technology Group		295,250			353,989			48,818
Net income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		43.95			51.13			7.05
Weighted average shares used in calculating net income
per ordinary share:
Basic and diluted		6,717,836			6,923,858			6,923,858

	For the Three Months Ended June 30,
	2022			2023
	RMB			RMB
Net revenues		554,991			526,353
Less: other revenues		(31,088	)		(42,377	)
Add: tax and surcharges		17,209			9,779
Add: ending deferred revenue		1,998,062			1,379,073
Add: ending refund liability		199,028			107,319
Less: beginning deferred revenue		(2,170,948	)		(1,513,896	)
Less: beginning refund liability		(197,494	)		(112,188	)
Gross billings (non-GAAP)		369,760			354,063



Net income		114,560			173,883
Add: income tax expenses/(benefit)		3,652			(1,404	)
depreciation and amortization		9,274			7,677
interest expense		2,552			2,046
Less: interest income		(3,842	)		(7,561	)
EBITDA (non-GAAP)		126,196			174,641

	For the Six Months Ended June 30,
	2022			2023
	RMB			RMB
Net revenues		1,168,305			1,093,229
Less: other revenues		(57,995	)		(84,224	)
Add: tax and surcharges		44,421			27,774
Add: ending deferred revenue		1,998,062			1,379,073
Add: ending refund liability		199,028			107,319
Less: beginning deferred revenue		(2,348,179	)		(1,690,946	)
Less: beginning refund liability		(243,236	)		(133,066	)
Gross billings (non-GAAP)		760,406			699,159



Net income		293,971			353,990
Add: income tax expenses		4,343			6,327
depreciation and amortization		19,161			15,267
interest expense		5,277			4,170
Less: interest income		(7,008	)		(14,122	)
EBITDA (non-GAAP)		315,744			365,632