Meten EdtechX Education Group Ltd. (NASDAQ: METX) (“Meten EdtechX”
or the “Company”), a leading English language training (“ELT”)
service provider in China, today announces its unaudited financial
results for the second quarter and the first half year ended June
30, 2020.
|
Q2 2020 |
HY 2020 |
|
RMB (m) |
YoY (%) |
QoQ1 (%) |
RMB (m) |
YoY (%) |
Gross billings |
160.9 |
(57.7%) |
29.2% |
285.4 |
(60.1%) |
|
|
|
|
|
|
Revenue |
189.3 |
(47.0%) |
4.3% |
370.9 |
(44.8%) |
|
|
|
|
|
|
EBITDA2 |
(75.2) |
83.9% |
(15.6%) |
(164.2) |
120.9% |
|
|
|
|
|
|
Adjusted EBITDA2 |
(72.2) |
179.0% |
(17.4%) |
(159.6) |
194.2% |
|
|
|
|
|
|
Net (Loss)/Income |
(93.4) |
57.4% |
(8.2%) |
(195.1) |
92.3% |
|
|
|
|
|
|
Adjusted Net
(Loss)/Income2 |
(90.4) |
104.0% |
(9.7%) |
(190.5) |
134.1% |
Highlights
- Q2 2020 revenue decreased 47.0% year-on-year to RMB 189.3
million (US$ 26.8 million) but increased by 4.3% versus Q1 2020, as
trading conditions in the second quarter of 2020 improved in line
with the gradual lifting of COVID-19-related restrictions. HY 2020
revenue decreased 44.8% year-on-year to RMB 370.9 million (US$ 52.5
million), mainly due to the impact of the COVID-19 pandemic on the
six months ended June 30, 2020
- Supported by the re-opening of learning centers, revenue
generation was driven mainly by strong growth in online revenues,
which increased 34.3% year-on-year in Q2 2020 to RMB 79.2 million
(US$ 11.2 million) (Q2 2019: RMB 59.0 million) or 41.1%
year-on-year in HY 2020 to RMB 156.3 million (US$ 22.1 million) (HY
2019: RMB 111 million)
- As of June 30, 2020, Meten EdtechX had 95 learning centers in
operation; as of the date of this announcement, except for
twenty-four learning centers located in Beijing and Dalian, all
other learning centers of the Company have resumed full
operation
- Owing to a continuing strong focus on cost efficiency, as
reflected in the 27.6% reduction in our cost of revenues, and a 37%
decline in operating expenses year-on-year, the Company partially
mitigated the negative effect of the COVID-19 pandemic on its
profitability
- Q2 2020 adjusted EBITDA declined to a loss of RMB
72.2 million (US$ 10.2 million) but increased by 17.4% compared to
Q1 2020; HY 2020 adjusted EBITDA recorded a loss of RMB 159.6
million (US$ 22.6 million)
- Q2 2020 net loss was RMB 93.4 million (US$ 13.2 million),
compared with a net loss of RMB 59.3 million in Q2 2019 and a net
loss of RMB 101.7 million in Q1 2020; HY 2020 net loss increased
92.3% year-on-year to RMB 195.1 million (US$ 27.6 million)
- For Q2 2020, net operating cash outflow was RMB 69.9 million
(US$ 9.9 million), compared to an outflow of RMB 7.4 million in Q2
2019 and an outflow of RMB 97.7 million in Q1 2020
___________________________________________1 Compared to the
first three months ended March 31, 2020.
2 Non-GAAP measure. For more information about non-GAAP
financial measures, please see the section captioned "About
Non-GAAP Financial Measures" at the end of this release.
Alan Peng, Chief Executive Officer of Meten EdtechX
commented:
“We are pleased to report a resilient set of
results for the second quarter of 2020, reflecting our sharp focus
on effectively managing the gradual return to normal business as
COVID-19 related restrictions were lifted during the period. Today,
we are delighted to announce that all our learning centers (except
for twenty-four in Beijing and Dalian that remained closed due to
the re-introduction of COVID-19-related restrictive measures) are
now open to students and are operating in accordance with official
guidelines.
“The reopening of our learning centers, coupled
with a continued strong performance by our online business,
supported revenue growth of 4.3% compared to the first quarter of
2020. Although overall enrollment numbers decreased in the period,
we saw encouraging growth in online enrollments, which increased by
53% year-on-year and partially mitigated a decline in offline
enrollments while our learning centers were temporarily closed.
Strict cost control during the COVID-19 pandemic resulted in a
27.6% reduction in cost of revenues which helped soften the impact
of the learning center closures on our profitability. Gross profit,
while down year-on-year, increased 46.7% compared to the first
quarter of 2020.
“The events of recent months have further
highlighted the importance of online learning and this is reflected
in ongoing healthy demand for our online services, with online
revenue increasing by 41.1% year on year. The success of our online
offering to date has laid the foundation for the rollout of further
services, and we are currently exploring possibilities to expand
our offering.
“During the first half of 2020, we have also
seen a shift in our favor in the competitive landscape, as other
education players adapt to the changed environment. As a result, we
recognize that new opportunities to gain market share and further
strengthen our position may arise in the short term.
“Looking ahead, having successfully reopened our
learning centers following prolonged closures in the first quarter
of 2020 and strengthened our online offering, we believe we are
well-positioned to meet seasonally higher demand in the third
quarter of 2020. In the longer term, our focus remains on
capitalizing on positive trends in the education market, increasing
marketing efforts, capturing nascent demand in tier 2-4 cities in
China, investing in state-of-the-art technology and strengthening
our position as a key market player.”
Operational developments
|
Q2 2020 |
HY 2020 |
Student enrollments |
14,049 |
(57%) |
26,230 |
(57%) |
|
|
|
|
|
Course withdrawal rate(1)
(%) |
10.45% |
(6.6 ppts) |
10.89% |
(0.5 ppts) |
(1) Refers to the amount of refunds issued in a specific period
of time as a percentage of the sum of the amount of gross billings
and the amount of refunds for such period.
|
March 31, 2020 |
June 30, 2020 |
Number of self-operated learning centers |
128 |
6.7%* |
112 |
12.5%* |
|
|
|
|
|
Number of franchised learning
centers |
17 |
6.3%* |
16 |
(5.9%)* |
|
(* Change compared to
the previous quarter) |
Growing online student enrollment
Meten EdtechX achieved strong growth in online
enrollment during the second quarter of 2020, which increased by
53% year-on-year for the first half year of 2020. Compared with Q1
2020, enrollment increased by 20% as the Company leveraged
cross-selling opportunities between offline and online as its
learning centers reopened. As a result of the negative impact of
COVID-19 on offline enrollment, overall student enrollment
decreased by 57% year-on-year in the second quarter of 2020 and 57%
for the first half of 2020.
Gross billings declined by 57.7% year-on-year
during the second quarter of 2020 to RMB 160.9 million (US$ 22.8
million) (Q2 2019: RMB 378.0 million) but showed an improvement of
29.2% versus Q1 2020. For the first half of 2020, gross billings
decreased by 60.1% year-on-year to RMB 285.4 million (US$ 40.4
million) (HY 2019: RMB 714.8 million), supported by the 51%
contribution of the online business during the period.
Continuing development of online
ELT
Development of the Likeshuo online learning
platform continued into the second quarter of 2020. At the end of
June 2020, the platform recorded 1.6 million registered users and
0.3 million paying users.
To leverage the rapid growth in demand for
online education, Meten EdtechX further expanded its high caliber
base of teachers and sales staff, recruiting more than 1,000 new
employees during the second quarter. of 2020.
Furthermore, following the launch of its online
Japanese language teaching service, JTalk, during the first quarter
of 2020, the Company delivered nearly 2,500 course hours to more
than 160 customers in the first half of 2020. Many of these
customers have committed to entering into long-term contracts,
adding further stability to the customer base. Meten EdtechX
intends to build on the success of this new business and is
exploring further language product offerings.
Offline network largely
reactivated
Since the end of the first quarter of 2020, the
Company gradually re-opened the majority of its learning centers in
accordance with the applicable regulatory guidance. As of the date
of this announcement, all of Meten EdtechX’s learning centers
(except for eight learning centers located in Beijing that remained
closed due to the re-introduction of COVID-19-related restrictive
measures) have resumed full operation. The operation of learning
centers remains subject to continuous social distancing measures
and cleaning protocols to ensure enhanced hygiene levels.
Through successful re-opening and operation of
its offline network, the Company believes it is well positioned to
capitalize on the seasonally high demand for English lessons during
the summer months.
Strong focus on efficiency
Since the beginning of 2020, Meten EdtechX has
taken proactive steps to reduce its operating costs in response to
the COVID-19 pandemic. Centralization of finance, HR, IT and other
administrative functions was achieved through the introduction of
shared centers, resulting in enhanced operating efficiency and
lower administrative expenses.
Rental expenses were effectively reduced by
merging headquarters and regional offices, and rent concessions
negotiated for 70 leased properties, representing nearly 40% of
total leases.
Owing to lower lesson occupancy, monthly
teaching costs declined by 10% during the first half of 2020 while
optimization of non-core functions helped reduce variable
costs.
Financial results
Revenues
In Q2 2020, revenues amounted to RMB 189.3
million (US$ 26.8 million), a decrease of 47.0% year-on-year (Q2
2019: RMB 357.2 million), but increased 4.3% quarter-on-quarter (Q1
2020: RMB 181.6 million). For the first half of 2020, a decline of
44.8% was recorded, from RMB 672.0 million in the first half of
2019, to RMB 370.9 million (US$ 52.5 million), primarily as a
result of the adverse impact of the COVID-19 pandemic during the
period.
Cost of revenues
The Company’s cost of revenues consists
primarily of staff costs, property expenses, depreciation and
amortization, and other costs which primarily include consulting
fees, foreign teacher-related administrative expenses, and teaching
materials costs.
In Q2 2020, cost of revenues decreased by 27.6%
year-on-year to RMB 135.7 million (US$ 19.2 million) (Q2 2019: RMB
187.5 million), and by 6.4% quarter-on-quarter (Q1 2020: RMB 145.0
million). In the first half of 2020, cost of revenues decreased to
RMB 280.8 million (US$ 39.7 million), from RMB 360.3 million in the
first half of 2019, predominantly due to savings achieved in sales
and marketing and general and administrative expenses as part of
the Company’s efforts to reduce operating expenses.
Gross profit
In Q2 2020, gross profit decreased by 68.4%
year-on-year to RMB 53.6 million (US$ 7.6 million) (Q2 2019: RMB
169.7 million) but increased by 46.7% versus the previous quarter
(Q1 2020: RMB 36.5 million) as trading conditions gradually
improved following the lifting of COVID-related restrictions. For
the first half of 2020, gross profit decreased to RMB 90.1 million
(US$ 12.8 million), from RMB 311.8 million in the first half of
2019, due to the negative impact of the COVID-19 pandemic.
Gross profit margin decreased by 19.2 percentage
points in Q2 2020 to 28.3%, from 47.5% in the same period of 2019.
For the first half of 2020, gross profit margin was 24.3%
compared to 46.4% for the first half of 2019.
Operating expenses
Selling and marketing expenses in Q2 2020
amounted to RMB 70.9 million (US$ 10.0 million), a decrease of
38.7% year-on-year from RMB 116.7 million in Q2 2019. In the first
half of 2020, selling and marketing expenses amounted to RMB 139.5
million (US$ 19.7 million), down from RMB 224.3 million in the
first half of 2019. This is primarily due to lower marketing
activity due to the temporary closure of offline learning
centers.
Research and development expenses in Q2 2020
decreased by 29.7% year-on-year to RMB 8.2 million (US$ 1.2
million), from RMB 11.6 million in Q2 2019. In the first half of
2020, research and development expenses decreased to RMB 15.2
million (US$ 2.1 million), from RMB 17.5 million in the first half
of 2019. This is largely due to a reduction in certain offline
research and development activities as a result of COVID-19-related
restrictions.
General and administrative expenses in Q2 2020
decreased to RMB 65.4 million (US$ 9.3 million), from RMB 101.4
million in Q2 2019. In the first half of 2020, general and
administrative expenses decreased by 28.8% year-on-year to RMB
130.4 million (US$ 18.5 million) (HY 2019: RMB 183.1 million). This
decrease was largely driven by the temporary closure of the
learning centers during the quarter.
Loss from operations
In Q2 2020, loss from operations was RMB 90.8
million (US$ 12.9 million), compared to a loss from operations of
RMB 59.0 million in Q2 2019.
For the first half of 2020, loss from operations
was RMB 194.9 million (US$ 27.6 million), compared to a loss from
operations of RMB 113.1 million in the first half of 2019.
Net income / loss
In Q2 2020, net loss was RMB 93.4 million (US$
13.2 million), compared to a net loss of RMB 59.3 million in Q2
2019 and a net loss of RMB 104.1 million for the first quarter of
2020.
For the first half of 2020, net loss was RMB
195.1 million (US$ 27.6 million), compared to a net loss of RMB
101.5 million in the first half of 2019.
Cash flow
Net operating cash inflow for the second quarter
of 2020 was RMB 69.9 million (US$ 9.9 million), compared to an
outflow of RMB 7.4 million in Q2 2019 and an outflow of RMB 97.7
million in Q1 2020. For the first half of 2020, an outflow of RMB
167.6 million (US$ 23.7 million) was recorded, compared to an
outflow of RMB 48.8 million in the first half of 2019.
Capital expenditure for Q2 2020 was RMB 5.1
million (US$ 0.7 million) compared to RMB 22.4 million in Q2 2019.
This decline was mainly due to the negative impact of COVID-19 on
the Company’s operations compared to Q2 2019.
Capital expenditure for the first half of 2020
was RMB 8.7 million (US$ 1.2 million), which decreased from RMB
51.5 million for the corresponding period of the previous year.
Cash and cash equivalents
As at June 30, 2020, Meten EdtechX had RMB 163.5
million (US$ 23.1 million) of cash and cash equivalents,
compared to RMB 152.2 million at March 31, 2020.
Outlook
Throughout the first half of 2020, Meten EdtechX
demonstrated resilience in the face of the challenging and
unprecedented conditions brought about by the COVID-19 pandemic.
The evolution of the pandemic and wider economic outlook remain
uncertain. However, Meten EdtechX remains optimistic about the
second half of 2020 due to significant investment in 2019 in
building the Company’s platform for future growth, the successful
gradual re-opening and operation of its offline network and ongoing
positive trends in the education technology sector.
Historically, the education technology sector
has benefitted from higher growth in gross billings in the third
quarter of the year when many students are on summer holidays and
have more time to take English language training courses. The
Company therefore expects to see the positive impact of this trend
on its performance during the next quarter. Furthermore, it expects
education technology spending to be positively impacted by the
COVID-19 pandemic, which continues to drive an increased uptake of
technology to replace, supplement and enhance teaching and learning
in the context of social distancing.
Finally, in the second half of 2020, Meten EdtechX remains
committed to its growth strategy based on the following key
pillars:
- Maintain sustainable growth of the online business by investing
in systems and product development, offline-to-online cross selling
and leveraging the offline network
- Further expand offline network coverage by focusing on tier 2-4
cities and expanding the K-12 after school tutoring business,
including one-to-one ELT and math tutoring through the Company’s
offline learning centers and marketing resources
- Enhance and diversify its education service offering, focusing
on the general adult ELT business while expanding the junior ELT
business and online ELT business
- Further expand online language courses such as Spanish, Korean
and French, as well as Japanese language training provided by
Jtalk
- Selectively pursue strategic acquisitions and partnerships by
seeking targets with a substantial regional presence and brand
recognition, strong content development capabilities, shared values
and goals and advanced technological capabilities
During the COVID-19 pandemic, the Company has
exerted tremendous efforts to reduce its operating costs through a
number of measures, including the centralization of administrative,
finance, HR and IT functions and the reduction of rental expenses.
The Company will continue to control operating expenses and enhance
operating efficiency for the remainder of 2020.
Exchange Rate
The Company’s business is primarily conducted in
China and all of the revenues are denominated in Renminbi (“RMB”).
This announcement contains translations of certain RMB amounts into
U.S. dollars (“USD” or “US$”) at specified rates solely for the
convenience of the readers. Unless otherwise noted, all
translations from RMB to USD for the second quarter and first half
of 2020 are made at the rate of RMB 7.0651 to US$ 1.00, the
exchange rate set forth in the H.10 statistical release of the
Federal Reserve Board on June 30, 2020, respectively. 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, as the case may be, or at any other rate.
About Non-GAAP Financial
Measures
Meten EdtechX’s consolidated financial results presented are in
accordance with GAAP. However, to provide meaningful supplemental
information regarding its performance, Meten EdtechX adopts the
following measures which are defined as non-GAAP financial measures
by the SEC:
- EBITDA: calculated by subtracting net interest income/loss and
adding back income tax expense and non-cash expense of depreciation
and amortization to a firm's net income/(loss).
- Adjusted EBITDA: calculated by removing certain one-off,
irregular and/or non-recurring items from EBITDA such as
offering expenses and share-based compensation expenses.
- Adjusted net (loss)/income: calculated by adding back certain
one-off, irregular and/or non-recurring items to net income/loss
such as offering expenses and share-based compensation
expenses.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP.
Results Presentation
The Company’s management team will host a
conference call at 08:00 EDT / 13:00 BST / 20:00 CST on Monday,
August 31, 2020, to discuss the financial results.
Dial-in
details for the conference call are as follows: |
|
|
Mainland
China: |
400 810 8228 |
|
|
Hong
Kong: |
+852 3005 1355 |
|
|
USA: |
+1 646 254 3594 |
|
|
UK: |
+44 20 7660 0166 |
|
|
Other
countries: |
+86 10 5808 4166 |
|
|
Participant
PIN: |
662592 |
Participants should dial-in at least 5 minutes
before the scheduled start time.
For investor and media enquiries, please
contact:
Meten EdtechXStanley Yang +86
1851-8513-075stanley_yts@meten.com
Citigate Dewe RogersonSandra Novakov / Christen
Thomson / Eleni Menikou / Lucy Eyles+44 (0)20 7638
9571meten@citigatedewerogerson.com
About Meten EdtechX
Meten EdtechX is a leading ELT service provider
in China, delivering English language and future skills
training for Chinese students and professionals. Through a
sophisticated digital platform and nationwide network of learning
centers, the Company provides its services under three
industry-leading brands: Meten (adult and junior ELT
services), ABC (primarily junior ELT services) and
Likeshuo (online ELT). It offers superior teaching quality and
student satisfaction, which are underpinned by cutting edge
technology deployed across its business, including AI-driven
centralized teaching and management systems that record and analyze
learning processes in real time.
The Company is committed to improving the
overall English language competence and competitiveness of the
Chinese population to keep abreast of the rapid development of
globalization. Its experienced management is focused on further
developing its digital platform and expanding its network of
learning centers to deliver a continually evolving service
offerings to a growing number of students across China.
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 for the third quarter of fiscal
year 2020 and full fiscal year 2020, quotations from management in
this announcement, as well as the Company’s strategic and
operational plans (in particular, the impact of the COVID-19
outbreak on our businesses, the solutions we adopted to mitigate
the effects of the outbreak, the impact on our financial
performance, the anticipated benefits of strategic growth
initiatives and the balancing growth and profitability), the
benefits of the Company’s 2019 investments and recent acquisitions,
as well as our four key growth strategies, contain forward-looking
statements. The Company 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. Statements that are not historical facts, including
statements about the Company’s beliefs and expectations, are
forward-looking statements. 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 statement, including but not limited to the
following: the impact of the COVID-19 outbreak, our ability to
attract students without a significant decrease in course fees; our
ability to continue to hire, train and retain qualified teachers;
our ability to maintain and enhance our “Meten” brand; our ability
to effectively and efficiently manage the expansion of our school
network and successfully execute our growth strategy; the outcome
of ongoing, or any future, litigation or arbitration, including
those relating to copyright and other intellectual property rights;
competition in the English language training sector in China;
changes in our revenues and certain cost or expense items as a
percentage of our revenues; the expected growth of the Chinese
English language training and private education market; Chinese
governmental policies relating to private educational services and
providers of such services; health epidemics and other outbreaks in
China; and general economic conditions in China. Further
information regarding these and other risks is included in our
annual report on Form 20-F and other documents filed with
the Securities and Exchange Commission. The Company does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information provided
in this press release and in the attachments is as of the date of
this press release, and the Company undertakes no duty to update
such information, except as required under applicable law.
Statement Regarding Unaudited Financial
Information
The unaudited financial information set forth in
this press release is preliminary and subject to adjustments.
Adjustments to the financial statements may be identified when
audit work is performed for the year-end audit, which could result
in significant differences from this preliminary unaudited
financial information.
Non-GAAP Financial Measures
This press release contains certain non-GAAP
financial measures, which are different from financial measures
calculated in accordance with U.S. GAAP. Such non-GAAP financial
measures should be considered in addition to and not as a
substitute for or superior to the financial measures calculated in
accordance with U.S. GAAP. In addition, the definition of adjusted
EBITDA and adjusted net income/loss in this press release may be
different from the definition of such terms used by other
companies, and therefore, comparability may be limited.
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET |
|
(In thousands of RMB and USD, except for share, per share and per
ADS data) |
|
|
As of December 31, |
As of June 30, |
|
2019 |
2020 |
|
RMB'000 |
RMB'000 |
US$'000 |
ASSETS |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
140,132 |
163,542 |
23,148 |
Short-term investments |
- |
42,391 |
6,000 |
Contract assets |
7,824 |
6,781 |
960 |
Accounts receivable |
28,903 |
45,133 |
6,388 |
Other contract costs |
54,088 |
53,220 |
7,533 |
Prepayments and other current
assets |
64,790 |
20,673 |
2,926 |
Amounts due from related
parties |
9,662 |
1,933 |
274 |
Prepaid income tax |
12,265 |
14,615 |
2,069 |
|
|
|
|
Total current assets |
317,664 |
348,288 |
49,298 |
|
|
|
|
Non-current
assets |
|
|
|
Restricted cash |
11,599 |
10,998 |
1,557 |
Other contract costs |
10,114 |
4,733 |
670 |
Equity method investments |
26,084 |
26,491 |
3,750 |
Property and equipment,
net |
220,118 |
169,650 |
24,012 |
intangible assets |
24,968 |
22,153 |
3,136 |
Deferred tax assets |
4,200 |
4,030 |
570 |
Goodwill |
302,158 |
285,657 |
40,432 |
Right-of-use assets |
484,225 |
386,507 |
54,707 |
Other non-current assets |
62,435 |
53,428 |
7,560 |
|
|
|
|
|
|
|
|
Total non-current assets |
1,145,901 |
963,647 |
136,394 |
|
|
|
|
Total assets |
1,463,565 |
1,311,935 |
185,692 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET |
|
(In thousands of RMB and USD, except for share, per share and per
ADS data) |
|
|
As of December 31, |
As of June 30, |
|
2019 |
|
2020 |
|
|
RMB'000 |
|
RMB'000 |
|
US$'000 |
|
LIABILITIES, MEZZANINE
EQUITY AND OWNERS’ DEFICIT |
|
|
|
Current
liabilities |
|
|
|
Accounts payable |
15,714 |
|
28,845 |
|
4,083 |
|
Bank loans |
92,000 |
|
84,700 |
|
11,989 |
|
Deferred revenue |
408,287 |
|
375,449 |
|
53,141 |
|
Salary and welfare
payable |
74,139 |
|
59,048 |
|
8,358 |
|
Financial liabilities from
contracts with customers |
490,095 |
|
420,995 |
|
59,588 |
|
Accrued expenses and other
payables |
48,457 |
|
76,247 |
|
10,792 |
|
Income taxes payable |
495 |
|
2,015 |
|
285 |
|
Current lease liabilities |
142,155 |
|
143,111 |
|
20,256 |
|
Amounts due to related
parties |
851 |
|
31,050 |
|
4,395 |
|
|
|
|
|
Total current
liabilities |
1,272,193 |
|
1,221,460 |
|
172,887 |
|
|
|
|
|
Non-current
liabilities |
|
|
|
Deferred revenue-Non
current |
60,528 |
|
51,384 |
|
7,273 |
|
Deferred tax liabilities |
14,085 |
|
5,400 |
|
764 |
|
Non current tax payable |
26,085 |
|
28,737 |
|
4,067 |
|
Lease liabilities |
333,613 |
|
238,601 |
|
33,772 |
|
|
|
|
|
Total non-current liabilities |
434,311 |
|
324,122 |
|
45,876 |
|
|
|
|
- |
|
Total liabilities |
1,706,504 |
|
1,545,582 |
|
218,763 |
|
|
|
|
|
Mezzanine
equity |
|
|
|
Redeemable Owners’
Investment |
- |
|
- |
|
- |
|
Owners’
deficit |
|
|
|
Owners’ Investment |
219 |
|
37 |
|
5 |
|
Subscriptions Receivable from
founding shareholders |
(2 |
) |
(1 |
) |
(0 |
) |
Additional paid-in
capital |
264,175 |
|
468,738 |
|
66,346 |
|
Statutory reserve |
- |
|
- |
|
- |
|
Accumulated other
comprehensive income |
- |
|
- |
|
- |
|
Accumulated deficit |
(525,262 |
|
(723,789 |
) |
(102,446 |
) |
|
|
|
|
Total deficit
attributable to owners of Company |
(260,870 |
|
(255,015 |
) |
(36,095 |
) |
Non-controlling interests |
17,931 |
|
21,368 |
|
3,024 |
|
|
|
|
|
Total
deficit |
(242,939 |
) |
(233,647 |
) |
(33,071 |
) |
|
|
|
|
Commitments and
contingencies |
- |
|
- |
|
- |
|
|
|
|
|
Total liabilities, mezzanine equity and owners'
deficit |
1,463,565 |
|
1,311,935 |
|
185,692 |
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
2019 |
|
2020 |
|
Q2 |
|
H1 |
|
|
Q2 |
|
|
|
H1 |
|
|
|
|
RMB'000 |
|
RMB'000 |
|
|
RMB'000 |
|
US$'000 |
|
RMB'000 |
|
US$'000 |
|
Revenues |
357,240 |
|
672,043 |
|
|
189,328 |
|
26,798 |
|
370,909 |
|
52,499 |
|
Cost of revenues |
(187,509 |
) |
360,281 |
) |
|
(135,727 |
) |
(19,211 |
) |
(280,775 |
) |
(39,741 |
) |
|
|
|
|
|
|
|
|
Gross
profit |
169,731 |
|
311,762 |
|
|
53,601 |
|
7,587 |
|
90,134 |
|
12,758 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Selling and marketing
expenses |
(115,672 |
) |
(224,280 |
) |
|
(70,862 |
) |
(10,030 |
) |
(139,466 |
) |
(19,740 |
) |
General and administrative
expenses |
(101,433 |
) |
(183,059 |
) |
|
(65,391 |
) |
(9,255 |
) |
(130,415 |
) |
(18,459 |
) |
Research and development
expenses |
(11,624 |
) |
(17,491 |
) |
|
(8,176 |
) |
(1,157 |
) |
(15,182 |
) |
(2,149 |
) |
|
|
- |
|
|
|
- |
|
|
- |
|
(Loss)/income from
operations |
(58,998 |
) |
(113,068 |
) |
|
(90,828 |
) |
(12,856 |
) |
(194,929 |
) |
(27,590 |
) |
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
|
Interest income |
233 |
|
411 |
|
|
149 |
|
21 |
|
282 |
|
40 |
|
Interest expenses |
(465 |
) |
(816 |
) |
|
(1,219 |
) |
(173 |
) |
(2,284 |
) |
(323 |
) |
Foreign currency exchange
gain/(loss), net |
(10 |
) |
(13 |
) |
|
466 |
|
66 |
|
258 |
|
37 |
|
Gains on available-for-sale
investments |
- |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Gains on disposal of
subsidiaries |
(1,888 |
) |
(1,888 |
) |
|
- |
|
- |
|
- |
|
- |
|
Government grants |
391 |
|
2,050 |
|
|
10,453 |
|
1,480 |
|
12,879 |
|
1,823 |
|
Loss on equity method
investments |
296 |
|
2,849 |
|
|
1,350 |
|
191 |
|
107 |
|
15 |
|
Others, net |
369 |
|
306 |
|
|
(10,880 |
) |
(1,540 |
) |
(11,095 |
) |
(1,570 |
) |
|
|
|
|
|
|
|
|
(Loss)/income before
income tax |
(60,072 |
) |
(110,169 |
) |
|
(90,509 |
) |
(12,811 |
) |
(194,782 |
) |
(27,570 |
) |
|
|
|
|
|
|
|
|
Income tax expense |
763 |
|
8,699 |
|
|
(2,858 |
) |
(405 |
) |
(308 |
) |
(44 |
) |
|
|
- |
|
|
|
- |
|
|
- |
|
Net
(loss)/income |
(59,309 |
) |
(101,470 |
) |
|
(93,367 |
) |
(13,215 |
) |
(195,090 |
) |
(27,613 |
) |
|
|
|
|
|
|
|
|
Less: Net (loss)/income attributable to non-controlling
interests |
(1,395 |
) |
(2,401 |
) |
|
2,026 |
|
287 |
|
3,437 |
|
486 |
|
|
|
|
|
|
|
|
|
Net (loss)/income
attributable to shareholders of the Company |
(57,914 |
) |
(99,069 |
) |
|
(95,393 |
) |
(13,502 |
) |
(198,527 |
) |
(28,100 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income |
(59,309 |
) |
(101,470 |
) |
|
(93,367 |
) |
(13,215 |
) |
(195,090 |
) |
(27,613 |
) |
|
|
|
|
|
|
|
|
Other comprehensive
income |
- |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
Comprehensive
(loss)/income |
(59,309 |
) |
(101,470 |
) |
|
(93,367 |
) |
(13,215 |
) |
(195,090 |
) |
(27,613 |
) |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Offering expenses |
13,040 |
|
16,198 |
|
|
- |
|
- |
|
|
- |
|
Share-based
compensationexpenses |
1,944 |
|
3,888 |
|
|
2,964 |
|
420 |
|
4,577 |
|
648 |
|
|
|
|
|
|
|
|
|
Adjusted Net
(loss)/income |
(44,325 |
) |
(81,384 |
) |
|
(90,403 |
) |
(12,796 |
) |
(190,513 |
) |
(26,965 |
) |
EdtechX Holdings Acquisi... (NASDAQ:EDTX)
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