6-K

UNITEDSTATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUERPURSUANT TO RULE 13a-16 OR 15d-16 OFTHE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2023

Commission file number: 001-38423

SUNLANDSTECHNOLOGY GROUP

(Exact Name of Registrant as Specified in Its Charter)

Building 4-6, Chaolai Science Park, No. 36

Chuangyuan Road, ChaoyangDistrict

Beijing, 100012, thePeople’s Republic of China

+86-10-52413738

****(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F  ☒          Form 40-F  ☐

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release

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.

		Sunlands Technology Group
Date:	August<br> 18, 2023	By:	/s/ Tongbo Liu
			Name:	Tongbo Liu
			Title:	Chief Executive Officer

Exhibit 99.1

Sunlands TechnologyGroup Announces Unaudited

Second Quarter2023 Financial Results

Q2 net revenues decreased by 5.2% year-over-year

Q2 gross billings (non-GAAP) decreased by 4.2% year-over-year

Q2 net income reached RMB173.9 million

BEIJING, August18, 2023 -- Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), a leader in China’s online post-secondary and professional education, today announced its unaudited financial results for the second quarter ended June 30, 2023.

Second Quarter 2023Financial and Operational Snapshots

·	Net revenues were RMB526.4 million (US$72.6 million),<br>representing a 5.2% decrease year-over-year.
·	Gross billings (non-GAAP) were RMB354.1 million<br>(US$48.8 million), representing a 4.2% decrease year-over-year.
---	---
·	Gross profit was RMB466.9 million (US$64.4 million),<br>representing a 0.7% increase year-over-year.
---	---
·	Net income was RMB173.9 million (US$24.0 million),<br>as compared to RMB114.6 million in the second quarter of 2022.
---	---
·	Net income margin, defined as net income as a<br>percentage of net revenues, increased to 33.0% from 20.6% in the second quarter of 2022.
---	---
·	New student enrollments^1^<br>were 154,209, representing a 27.7% increase year-over-year.
---	---
·	As of June 30, 2023, the Company’s deferred<br>revenue balance was RMB1,379.1 million (US$190.2 million).
---	---

^1^ New student enrollments for a given period refers to the total number of orders placed by students that newly enroll in at least one course during that period, including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses. (In June 2019, we introduced low-price courses, including “mini courses” and “RMB1 courses,” to strengthen our competitiveness and improve customer experience. We offer such low-price courses mainly in the formats of recorded videos or short live streaming.)

1

“In Q2, our business showcased remarkable resilience and steady performance. Our second quarter net revenue reached RMB526.4 million, exceeding the high end of our guidance range. Net income experienced year-over-year increase, reaching RMB173.9 million in Q2, marking the ninth consecutive quarter of sustained profitability for our company. We maintain a positive outlook for the upcoming second half of the year,” said Mr. Tongbo Liu, Chief Executive Officer of Sunlands.

“Through proactive reassessment of our long-term strategic focus and implementation of a series of endeavors, our pursuit of developing valuable interest courses has continued to yield remarkable results. Specifically, our revenue in the professional certification preparation, professional skills and interest courses has surged by 32.7% year-over-year, and we have witnessed a 36.8% increase in new student enrollments in this sector. The robust market demands have instilled us with confidence and we remain committed to seizing emerging opportunities actively, promoting innovation and improvement to meet the diverse needs of adult learners, and achieving sustained growth and development,” concluded Mr. Liu.

Mr. Hangyu Li, Financial Controller of Sunlands, commented, “We are delighted to announce that this quarter was also an excellent quarter in financial perspective. Our gross profit margin reached 88.7%, an increase of 5.1 percentage points compared with the same period last year. Thanks to our persistent efforts in cost controls, the operating expenses decreased by RMB40.1 million, or 11.4%, year-over-year and our net income margin increased 12.4 percentage points compared to the same period last year. Looking forward, we will keep our commitment to delivering value to our stakeholders and maintaining a competitive edge in the industry.”

2

Financial Results for the second quarter of2023

Net Revenues

In the second quarter of 2023, net revenues decreased by 5.2% to RMB526.4 million (US$72.6 million) from RMB555.0 million in the second quarter of 2022. The decrease was mainly driven by the year-over-year decline in gross billings in 2023.

Cost of Revenues

Cost of revenues decreased by 34.8% to RMB59.5 million (US$8.2 million) in the second quarter of 2023 from RMB91.2 million in the second quarter of 2022. The decrease was primarily due to declined compensation expenses related to headcount reduction of our cost of revenues personnel, including teachers and mentors.

Gross Profit

Gross profit increased by 0.7% to RMB466.9 million (US$64.4 million) in the second quarter of 2023 from RMB463.8 million in the second quarter of 2022.

Operating Expenses

In the second quarter of 2023, operating expenses were RMB311.0 million (US$42.9 million), representing an 11.4% decrease from RMB351.2 million in the second quarter of 2022.

Sales and marketing expenses decreased by 7.9% to RMB270.0 million (US$37.2 million) in the second quarter of 2023 from RMB293.0 million in the second quarter of 2022. The decrease was mainly due to declined compensation expenses related to headcount reduction of our sales and marketing personnel.

General and administrative expenses decreased by 29.1% to RMB33.1 million (US$4.6 million) in the second quarter of 2023 from RMB46.6 million in the second quarter of 2022. The decrease was mainly due to declined rental expenses due to the early termination of a lease contract.

Product development expenses decreased by 31.0% to RMB8.0 million (US$1.1 million) in the second quarter of 2023 from RMB11.6 million in the second quarter of 2022. The decrease was mainly due to declined compensation expenses related to headcount reduction of our product development personnel.

3

Net Income

Net income for the second quarter of 2023 was RMB173.9 million (US$24.0 million), as compared to RMB114.6 million in the second quarter of 2022.

Basic and Diluted Net Income Per Share

Basic and diluted net income per share was RMB25.12 (US$3.46) in the second quarter of 2023.

Cash, Cash Equivalents, Restricted Cash andShort-term Investments

As of June 30, 2023, the Company had RMB749.5 million (US$103.4 million) of cash, cash equivalents and restricted cash and RMB63.2 million (US$8.7 million) of short-term investments, as compared to RMB757.4 million of cash, cash equivalents and restricted cash and RMB70.5 million of short-term investments as of December 31, 2022.

Deferred Revenue

As of June 30, 2023, the Company had a deferred revenue balance of RMB1,379.1 million (US$190.2 million), as compared to RMB1,690.9 million as of December 31, 2022.

Capital Expenditures

Capital expenditures were incurred primarily in connection with information technology (“IT”) infrastructure equipment and leasehold improvements necessary to support the Company’s operations. Capital expenditures were RMB1.0 million (US$0.1 million) in the second quarter of 2023, as compared to RMB0.3 million in the second quarter of 2022.

Share Repurchase

On December 6, 2021, the Company’s board of directors authorized a share repurchase program, under which the Company may repurchase up to US$15.0 million of Class A ordinary shares in the form of ADSs over the next 24 months. As of August 17, 2023, the Company had repurchased an aggregate of 456,118 ADSs for approximately US$2.1 million under the share repurchase program.

4

Financial Results for the First Six Monthsof 2023

Net Revenues

In the first six months of 2023, net revenues decreased by 6.4% to RMB1,093.2 million (US$150.8 million) from RMB1,168.3 million in the first six months of 2022.

Cost of Revenues

Cost of revenues decreased by 32.1% to RMB127.6 million (US$17.6 million) in the first six months of 2023 from RMB188.0 million in the first six months of 2022.

Gross Profit

Gross profit decreased by 1.5% to RMB965.6 million (US$133.2 million) from RMB980.3 million in the first six months of 2022.

Operating Expenses

In the first six months of 2023, operating expenses were RMB631.8 million (US$87.1 million), representing a 9.4% decrease from RMB697.0 million in the first six months of 2022.

Sales and marketing expenses decreased by 7.9% to RMB541.4 million (US$74.7 million) in the first six months of 2023 from RMB588.0 million in the first six months of 2022.

General and administrative expenses decreased by 14.5% to RMB72.7 million (US$10.0 million) in the first six months of 2023 from RMB85.1 million in the first six months of 2022.

Product development expenses decreased by 26.2% to RMB17.7 million (US$2.4 million) in the first six months of 2023 from RMB23.9 million in the first six months of 2022.

Net Income

Net income for the first six months of 2023 was RMB354.0 million (US$48.8 million), compared with RMB294.0 million in the first six months of 2022.

Basic and Diluted Net Income Per Share

Basic and diluted net income per share was RMB51.13 (US$7.05) in the first six months of 2023, compared with RMB43.95 in the first six months of 2022.

5

Capital Expenditures

Capital expenditures were incurred primarily in connection with IT infrastructure equipment and leasehold improvements necessary to support the Company’s operations. Capital expenditures were RMB4.8 million (US$0.7 million) in the first six months of 2023, compared with RMB1.2 million in the first six months of 2022.

Outlook

For the third quarter of 2023, Sunlands currently expects net revenues to be between RMB470 million to RMB490 million, which would represent a decrease of 15.0% to 18.4% year-over-year. The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty.

Exchange Rate

The Company’s business is primarily conducted in China and all revenues are denominated in Renminbi (“RMB”). This announcement contains currency conversions of RMB amounts into U.S. dollars (“US$”) solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB7.2513 to US$1.00, the effective noon buying rate for June 30, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2023, or at any other rate.

6

Conference Calland Webcast

Sunlands’ management team will host a conference call at 7:30 AM U.S. Eastern Time, (7:30 PM Beijing/Hong Kong time) on August 18, 2023, following the quarterly results announcement.

For participants who wish to join the call, please access the link provided below to complete online registration 15 minutes prior to the scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.

Registration Link:

https://register.vevent.com/register/BI2fa7774d43e34ce697c1d5bd158f825d

Additionally, a live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands' website at https://ir.sunlands.com/.

About Sunlands

Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), formerly known as Sunlands Online Education Group, is the leader in China's online post-secondary and professional education. With a one to many live streaming platform, Sunlands offers various degree- or diploma-oriented post-secondary courses as well as professional certification preparation, professional skills and interest courses. Students can access the Company's services either through PC or mobile applications. The Company's online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company's proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals.

7

About Non-GAAPFinancial Measures

We use gross billings, EBITDA, non-GAAP operating cost and expense, non-GAAP income from operations and Non-GAAP net income per share, each a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes.

We define gross billings for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, and income tax expenses. We believe that gross billings and EBITDA provide valuable insight into the sales of our course packages and the performance of our business.

These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measure prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based compensation expenses, non-GAAP net income exclude share-based compensation expenses, and basic and diluted net income per share excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider gross billings and EBITDA as a substitute for, or superior to, their respective most directly comparable financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

8

Safe Harbor Statement

This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and 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,” “confident” and similar statements. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Sunlands' beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Sunlands' goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to improve teaching quality and students’ learning results; its ability to improve sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development, results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands’ corporate structure, business and industry; and general economic and business condition in China Further information regarding these and other risks, uncertainties or factors is included in the Sunlands' filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation to update such information, except as required under applicable law.

For investor and mediaenquiries, please contact:

Sunlands Technology Group

Investor Relations

Email: sl-ir@sunlands.com

SOURCE: Sunlands Technology Group

9

SUNLANDS TECHNOLOGY GROUP<br> <br><br> <br>UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS<br> <br><br> <br>(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
Restricted cash		3,762		2,705
Short-term investments		70,542		63,209
Prepaid expenses and other current assets		98,272		116,157
Deferred costs, current		42,886		23,238
Total current assets		969,104		952,079
Non-current assets
Property and equipment, net		813,783		799,804
Intangible assets, net		1,509		1,784
Right-of-use assets		274,643		139,732
Deferred costs, non-current		78,839		72,789
Long-term investments		73,513		66,419
Deferred tax assets		26,799		20,270
Other non-current assets		37,880		35,342
Total non-current assets		1,306,966		1,136,140
TOTAL ASSETS		2,276,070		2,088,219
LIABILITIES AND SHAREHOLDERS’ DEFICIT
LIABILITIES
Current liabilities
Accrued expenses and other current liabilities		436,339		367,034
Deferred revenue, current		986,086		716,647
Lease liabilities, current portion		17,065		7,394
Long-term debt, current portion		38,654		38,654
Total current liabilities		1,478,144		1,129,729

All values are in US Dollars.

10

SUNLANDS TECHNOLOGYGROUP

UNAUDITED CONDENSEDCONSOLIDATED BALANCE SHEETS-continued

(Amounts in thousands,except for share and per share data, or otherwise noted)

			As of June 30,
			2023
			RMB			US
Non-current liabilities
Deferred revenue, non-current	704,860			662,426
Lease liabilities, non-current portion	316,844			161,215
Deferred tax liabilities	5,984			4,555
Other non-current liabilities	6,770			6,870
Long-term debt, non-current portion	143,319			123,992
Total non-current liabilities	1,177,777			959,058
TOTAL LIABILITIES	2,655,921			2,088,787
SHAREHOLDERS’ DEFICIT
Class A ordinary shares (par value of US0.00005, 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 US0.00005, 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 US0.00005, 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	)		)
Additional paid-in capital	2,309,740			2,308,277
Accumulated other comprehensive income	127,885			155,161
Total Sunlands Technology Group shareholders’ (deficit)/equity	(374,487	)		5,315
Non-controlling interest	(5,364	)		(5,883	)		)
TOTAL SHAREHOLDERS’ DEFICIT	(379,851	)		(568	)		)
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT	2,276,070			2,088,219

All values are in US Dollars.

11

SUNLANDS TECHNOLOGY GROUP<br> <br><br> <br>UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<br> <br><br> <br>(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
Cost of revenues		(91,237	)		(59,491	)		)
Gross profit		463,754			466,862
Operating expenses
Sales and marketing expenses		(292,978	)		(269,969	)		)
Product development expenses		(11,578	)		(7,992	)		)
General and administrative expenses		(46,635	)		(33,085	)		)
Total operating expenses		(351,191	)		(311,046	)		)
Income from operations		112,563			155,816
Interest income		3,842			7,561
Interest expense		(2,552	)		(2,046	)		)
Other income, net		4,750			8,171
Gain on disposal of a subsidiary		-			247
Income before income tax (expenses)/benefit
and (loss)/gain from equity method investments		118,603			169,749
Income tax (expenses)/benefit		(3,652	)		1,404
(Loss)/gain from equity method investments		(391	)		2,730
Net income		114,560			173,883
Less: Net loss attributable to non-controlling interest		(52	)		-
Net income attributable to Sunlands Technology Group		114,612			173,883
Net income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		16.89			25.12
Weighted average shares used in calculating net income
per ordinary share:
Basic and diluted		6,784,685			6,921,304

All values are in US Dollars.

12

SUNLANDS TECHNOLOGYGROUP

UNAUDITED CONDENSEDCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands)

	For the Three Months Ended June 30,
	2022			2023
	RMB			RMB		US
Net income		114,560			173,883
Other comprehensive income, net of tax effect of nil:
Change in cumulative foreign currency translation adjustments		31,807			29,603
Total comprehensive income		146,367			203,486
Less: comprehensive loss attributable to non-controlling
interest		(52	)		-
Comprehensive income attributable to Sunlands Technology
Group		146,419			203,486

All values are in US Dollars.

13

SUNLANDS TECHNOLOGYGROUP

RECONCILIATION OF GAAPAND NON-GAAP RESULTS

(Amounts in thousands)

	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

14

SUNLANDS TECHNOLOGYGROUP

RECONCILIATION OF GAAPAND NON-GAAP RESULTS

(Amounts in thousands, except for share and per share data, or otherwise noted)

	For the Three Months Ended June 30,
	2022			2023
	RMB			RMB
Cost of revenues		(91,237	)		(59,491	)
Less: Share-based compensation expenses in cost of revenues		-			-
Non-GAAP cost of revenues		(91,237	)		(59,491	)
Sales and marketing expenses		(292,978	)		(269,969	)
Less: Share-based compensation expenses in sales and marketing expenses		(4,088	)		-
Non-GAAP sales and marketing expenses		(288,890	)		(269,969	)
General and administrative expenses		(46,635	)		(33,085	)
Less: Share-based compensation expenses in general and administrative expenses		(2,725	)		-
Non-GAAP general and administrative expenses		(43,910	)		(33,085	)
Operating costs and expense		(442,428	)		(370,537	)
Less: Share-based compensation expenses		(6,813	)		-
Non-GAAP operating costs and expense		(435,615	)		(370,537	)
Income from operations		112,563			155,816
Less: Share-based compensation expenses		(6,813	)		-
Non-GAAP  income from operations		119,376			155,816
Net income attributable to Sunlands Technology Group		114,612			173,883
Less: Share-based compensation expenses		(6,813	)		-
Non-GAAP net income attributable to Sunlands Technology Group		121,425			173,883
Net income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		16.89			25.12
Non-GAAP net income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		17.90			25.12
Weighted average shares used in calculating net income
per ordinary share:
Basic and diluted		6,784,685			6,921,304
Weighted average shares used in calculating Non-GAAP net income
per ordinary share:
Basic and diluted		6,784,685			6,921,304

15

SUNLANDS TECHNOLOGY GROUP<br> <br><br> <br>UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<br> <br><br> <br>(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
Cost of revenues		(187,957	)		(127,646	)		)
Gross profit		980,348			965,583
Operating expenses
Sales and marketing expenses		(587,975	)		(541,383	)		)
Product development expenses		(23,933	)		(17,672	)		)
General and administrative expenses		(85,095	)		(72,725	)		)
Total operating expenses		(697,003	)		(631,780	)		)
Income from operations		283,345			333,803
Interest income		7,008			14,122
Interest expense		(5,277	)		(4,170	)		)
Other income, net		14,342			16,969
Gain on disposal of a subsidiary		-			247
Impairment loss on long-term investments		(500	)		-
Income before income tax expenses
and loss from equity method investments		298,918			360,971
Income tax expenses		(4,343	)		(6,327	)		)
Loss from equity method investments		(604	)		(654	)		)
Net income		293,971			353,990
Less: Net (loss)/income attributable to non-controlling interest		(1,279	)		1
Net income attributable to Sunlands Technology Group		295,250			353,989
Net income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		43.95			51.13
Weighted average shares used in calculating net income
per ordinary share:
Basic and diluted		6,717,836			6,923,858

All values are in US Dollars.

16

SUNLANDS TECHNOLOGY GROUP<br> <br><br> <br>UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME<br> <br><br> <br>(Amounts in thousands)
	For the Six Months Ended June 30,
	2022			2023
	RMB			RMB		US
Net income		293,971			353,990
Other comprehensive income, net of tax effect of nil:
Change in cumulative foreign currency translation adjustments		29,188			27,276
Total comprehensive income		323,159			381,266
Less: comprehensive (loss)/income attributable to non-controlling
interest		(1,279	)		1
Comprehensive income attributable to Sunlands Technology
Group		324,438			381,265

All values are in US Dollars.

17

SUNLANDSTECHNOLOGY GROUP

RECONCILIATIONOF GAAP AND NON-GAAP RESULTS

(Amounts in thousands)

	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

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SUNLANDSTECHNOLOGY GROUP

RECONCILIATIONOF GAAP AND NON-GAAP RESULTS

(Amounts in thousands, except for share and per share data, or otherwise noted)

	For the Six Months Ended June 30,
	2022			2023
	RMB			RMB
Cost of revenues		(187,957	)		(127,646	)
Less: Share-based compensation expenses in cost of revenues		(33	)		-
Non-GAAP cost of revenues		(187,924	)		(127,646	)
Sales and marketing expenses		(587,975	)		(541,383	)
Less: Share-based compensation expenses in sales and marketing expenses		(4,166	)		-
Non-GAAP sales and marketing expenses		(583,809	)		(541,383	)
General and administrative expenses		(85,095	)		(72,725	)
Less: Share-based compensation expenses in general and administrative expenses		(2,982	)		-
Non-GAAP general and administrative expenses		(82,113	)		(72,725	)
Operating costs and expense		(884,960	)		(759,426	)
Less: Share-based compensation expenses		(7,181	)		-
Non-GAAP operating costs and expense		(877,779	)		(759,426	)
Income from operations		283,345			333,803
Less: Share-based compensation expenses		(7,181	)		-
Non-GAAP income from operations		290,526			333,803
Net income attributable to Sunlands Technology Group		295,250			353,989
Less: Share-based compensation expenses		(7,181	)		-
Non-GAAP net income attributable to Sunlands Technology Group		302,431			353,989
Net income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		43.95			51.13
Non-GAAP net income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		45.02			51.13
Weighted average shares used in calculating net income
per ordinary share:
Basic and diluted		6,717,836			6,923,858
Weighted average shares used in calculating Non-GAAP net income
per ordinary share:
Basic and diluted		6,717,836			6,923,858

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