☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
American Depositary Shares, each two ordinary shares, par value US$0.01 per share | REDU | The Nasdaq Stock Market LLC |
Large accelerated filer ☐ | Accelerated filer | Non-accelerated filer | ||||||||
Emerging growth company | ☒ |
U.S. GAAP ☒ | International Financial Reporting Standards as issued | Other ☐ | ||||||||
by the International Accounting Standards Board | ☐ |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
Page | ||||
INTRODUCTION | ||||
13 | ||||
14 | ||||
15 | ||||
20 | ||||
28 | ||||
29 | ||||
29 | ||||
29 | ||||
36 | ||||
44 | ||||
44 |
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. | KEY INFORMATION |
For the Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(thousands, except for EBITDA margin) | ||||||||||||||||||||||||
Selected Consolidated Statements of Operations Data: | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Educational programs (1) | 618,326 | 835,298 | 1,102,254 | 1,332,372 | 872,877 | 133,774 | ||||||||||||||||||
Franchise revenues (1) | 63,532 | 100,013 | 125,341 | 156,509 | 82,084 | 12,580 | ||||||||||||||||||
Other revenues (1) | 29,135 | 33,964 | 44,293 | 40,566 | 3,506 | 537 | ||||||||||||||||||
Total | 710,993 | 969,275 | 1,271,888 | 1,529,447 | 958,467 | 146,891 | ||||||||||||||||||
Cost of revenues | (363,579 | ) | (452,220 | ) | (576,530 | ) | (694,693 | ) | (602,934 | ) | (92,403 | ) | ||||||||||||
Gross profit | 347,414 | 517,055 | 695,358 | 834,754 | 355,533 | 54,488 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Selling and marketing | (128,475 | ) | (177,993 | ) | (245,662 | ) | (307,339 | ) | (233,687 | ) | (35,814 | ) | ||||||||||||
General and administrative | (148,093 | ) | (339,690 | ) | (242,084 | ) | (304,626 | ) | (260,239 | ) | (39,884 | ) | ||||||||||||
Total operating expenses | (276,568 | ) | (517,683 | ) | (487,746 | ) | (611,965 | ) | (493,926 | ) | (75,698 | ) | ||||||||||||
Operating income/(loss) | 70,846 | (628 | ) | 207,612 | 222,789 | (138,393 | ) | (21,210 | ) | |||||||||||||||
Interest income | 16,622 | 19,559 | 26,376 | 17,952 | 15,091 | 2,313 | ||||||||||||||||||
Interest expense | (6,073 | ) | (26,589 | ) | (33,803 | ) | (34,093 | ) | (23,611 | ) | (3,619 | ) | ||||||||||||
Foreign currency exchange (loss)/gain | (2,741 | ) | 388 | (1,383 | ) | (1,506 | ) | (187 | ) | (29 | ) | |||||||||||||
Other income, net | 4,391 | 6,594 | 15,397 | 10,115 | 26,961 | 4,132 | ||||||||||||||||||
Impairment loss on long-term investment | — | — | — | — | (37,000 | ) | (5,670 | ) | ||||||||||||||||
Income/(loss) before income tax expense | 83,045 | (676 | ) | 214,199 | 215,257 | (157,139 | ) | (24,083 | ) | |||||||||||||||
Income tax (expense)/benefit | (32,202 | ) | (52,924 | ) | (71,763 | ) | (70,697 | ) | 15,695 | 2,406 | ||||||||||||||
Net income/(loss) | 50,843 | (53,600 | ) | 142,436 | 144,560 | (141,444 | ) | (21,677 | ) | |||||||||||||||
Net loss attributable to non-controlling interests | 3,080 | 5,626 | 522 | 3,540 | 9,011 | 1,381 | ||||||||||||||||||
Net income/(loss) attributable to RISE Education Cayman Ltd | 53,923 | (47,974 | ) | 142,958 | 148,100 | (132,433 | ) | (20,296 | ) | |||||||||||||||
Non-GAAP Financial Measures: | ||||||||||||||||||||||||
EBITDA (2) | 142,318 | 56,064 | 279,852 | 301,419 | (64,370 | ) | (9,865 | ) | ||||||||||||||||
EBITDA margin (3) | 20.0 | % | 5.8 | % | 22.0 | % | 19.7 | % | -6.7 | % | ||||||||||||||
Adjusted EBITDA (2) | — | 242,510 | 300,204 | 349,308 | (9,371 | ) | (1,437 | ) | ||||||||||||||||
Adjusted EBITDA margin (4) | — | 25.0 | % | 23.6 | % | 22.8 | % | -1.0 | % | |||||||||||||||
Non-GAAP net income/(loss) attributable to RISE Education Cayman Ltd(2) | 86,042 | 144,954 | 179,932 | 213,363 | (60,070 | ) | (9,207 | ) |
NaaS is not a publicly traded company and does not have a long operating history, making it difficult to determine the fair market value of NaaS or the Merger consideration. |
As of December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(thousands) | ||||||||||||||||||||||||
Selected Consolidated Balance Sheet Data: | ||||||||||||||||||||||||
Total current assets | 707,738 | 1,142,445 | 1,402,270 | 1,084,866 | 744,568 | 114,110 | ||||||||||||||||||
Cash and cash equivalents | 639,999 | 1,055,982 | 1,288,080 | 999,012 | 554,620 | 84,999 | ||||||||||||||||||
Prepayments and other current assets | 45,517 | 40,571 | 71,537 | 51,420 | 94,556 | 14,491 | ||||||||||||||||||
Total non-current assets | 792,560 | 813,893 | 878,504 | 1,717,089 | 1,681,837 | 257,753 | ||||||||||||||||||
Property and equipment, net | 75,673 | 100,177 | 128,412 | 137,340 | 107,537 | 16,481 | ||||||||||||||||||
Intangible assets, net | 225,951 | 200,615 | 198,057 | 210,346 | 185,647 | 28,452 | ||||||||||||||||||
Goodwill | 461,686 | 475,732 | 491,969 | 665,416 | 659,255 | 101,035 | ||||||||||||||||||
Total assets | 1,500,298 | 1,956,338 | 2,280,774 | 2,801,955 | 2,426,405 | 371,863 | ||||||||||||||||||
Total current liabilities | 763,366 | 1,030,700 | 1,278,872 | 1,233,518 | 1,168,355 | 179,058 | ||||||||||||||||||
Current portion of long-term loan | 38,186 | — | 82,506 | 134,015 | 226,744 | 34,750 | ||||||||||||||||||
Accrued expenses and other current liabilities | 96,158 | 171,099 | 159,882 | 202,808 | 164,193 | 25,164 | ||||||||||||||||||
Deferred revenue and customer advances | 601,324 | 812,821 | 1,002,796 | 716,637 | 563,736 | 86,396 | ||||||||||||||||||
Total non-current liabilities | 338,505 | 629,906 | 561,068 | 944,136 | 756,544 | 115,946 | ||||||||||||||||||
Long-term loan | 333,102 | 623,439 | 502,356 | 370,163 | 191,397 | 29,333 | ||||||||||||||||||
Total liabilities | 1,101,871 | 1,660,606 | 1,839,940 | 2,177,654 | 1,924,899 | 295,004 | ||||||||||||||||||
Total RISE Education Cayman Ltd shareholders’ equity | 407,200 | 310,131 | 455,755 | 608,896 | 495,112 | 75,879 | ||||||||||||||||||
Non-controlling interests | (8,773 | ) | (14,399 | ) | (14,921 | ) | 15,405 | 6,394 | 980 | |||||||||||||||
Total equity | 398,427 | 295,732 | 440,834 | 624,301 | 501,506 | 76,859 | ||||||||||||||||||
Total liabilities, non-controlling interests and shareholders’ equity | 1,500,298 | 1,956,338 | 2,280,774 | 2,801,955 | 2,426,405 | 371,863 |
The fairness opinion was rendered orally to the audit committee of our Board of directors by China Renaissance in connection with, and at the time of, the audit committee’s evaluation of the Mergers on February 5, 2022, and subsequently confirmed in writing as of February 7, 2022, and does not speak as of any other date. The fairness opinion was based on information made available to China Renaissance as of the date of its fairness opinion, which may have changed, or may change, after the date of such fairness opinion. The Company has not obtained an updated opinion from China Renaissance or form any other party as of the date of this annual report and does not expect to obtain an updated opinion prior to consummation of the Mergers. Changes in the operations and prospects of the Company or NaaS, general market and economic conditions and other factors which may be beyond the control of the Company and NaaS, and on which the fairness opinion was based, may have altered the prices or values of shares of the ADSs or shares of NaaS since the date of such fairness opinion, or may alter such values and prices by the time the Mergers are completed. |
ITEM 4. | INFORMATION OF THE COMPANY |
In July 2013, Bain Capital Rise Education II Cayman Limited, or RISE Education, our current holding company, was incorporated as an exempted company under the laws of the Cayman Islands, and it was renamed as RISE Education Cayman Ltd in June 2017. |
As of December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Self-owned | 76 | 89 | 92 | |||||||||
Franchised | 304 | 383 | 420 | |||||||||
Total learning centers | 380 | 472 | 512 |
ITEM 4A. | UNRESOLVED STAFF COMMENTS |
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. Operating Results |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||
RMB | Percentage of Revenues | RMB | Percentage of Revenues | RMB | US$ | Percentage of Revenues | ||||||||||||||||||||||
(thousands, except for percentages) | ||||||||||||||||||||||||||||
Educational programs | 1,102,254 | 86.7 | 1,332,372 | 87.1 | 872,877 | 133,774 | 91.1 | |||||||||||||||||||||
Franchise revenues | 125,341 | 9.9 | 156,509 | 10.2 | 82,084 | 12,580 | 8.6 | |||||||||||||||||||||
Other revenues | 44,293 | 3.4 | 40,566 | 2.7 | 3,506 | 537 | 0.3 | |||||||||||||||||||||
Revenues | 1,271,888 | 100.0 | 1,529,447 | 100.0 | 958,467 | 146,891 | 100.0 | |||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||
RMB | Percentage of Revenues | RMB | Percentage of Revenues | RMB | US$ | Percentage of Revenues | ||||||||||||||||||||||
(thousands, except for percentages) | ||||||||||||||||||||||||||||
Personnel costs | 227,691 | 17.9 | 298,710 | 19.5 | 276,797 | 42,421 | 28.9 | |||||||||||||||||||||
Rental costs | 181,457 | 14.3 | 220,912 | 14.4 | 202,446 | 31,026 | 21.1 | |||||||||||||||||||||
Share-based compensation | 1,315 | 0.1 | 2,617 | 0.2 | 1,821 | 279 | 0.2 | |||||||||||||||||||||
Others | 166,067 | 13.0 | 172,454 | 11.3 | 121,870 | 18,677 | 12.7 | |||||||||||||||||||||
Total | 576,530 | 45.3 | 694,693 | 45.4 | 602,934 | 92,403 | 62.9 | |||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||
RMB | Percentage of Revenues | RMB | Percentage of Revenues | RMB | US$ | Percentage of Revenues | ||||||||||||||||||||||
(thousands, except for percentages) | ||||||||||||||||||||||||||||
Selling and marketing | 245,662 | 19.3 | 307,339 | 20.1 | 233,687 | 35,814 | 24.4 | |||||||||||||||||||||
General and administrative | 242,084 | 19.0 | 304,626 | 19.9 | 260,239 | 39,884 | 27.2 | |||||||||||||||||||||
Total operating expenses | 487,746 | 38.3 | 611,965 | 40.0 | 493,926 | 75,698 | 51.6 | |||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||
RMB | Percentage of Revenues | RMB | Percentage of Revenues | RMB | US$ | Percentage of Revenues | ||||||||||||||||||||||
(thousands, except for percentages) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Educational programs (1) | 1,102,254 | 86.7 | 1,332,372 | 87.1 | 872,877 | 133,774 | 91.1 | |||||||||||||||||||||
Franchise revenues (1) | 125,341 | 9.9 | 156,509 | 10.2 | 82,084 | 12,580 | 8.6 | |||||||||||||||||||||
Other revenues (1) | 44,293 | 3.4 | 40,566 | 2.7 | 3,506 | 537 | 0.3 | |||||||||||||||||||||
Total | 1,271,888 | 100.0 | 1,529,447 | 100.0 | 958,467 | 146,891 | 100.0 | |||||||||||||||||||||
Cost of revenues | (576,530 | ) | (45.3 | ) | (694,693 | ) | (45.4 | ) | (602,934 | ) | (92,403 | ) | (62.9 | ) | ||||||||||||||
Gross profit | 695,358 | 54.7 | 834,754 | 54.6 | 355,533 | 54,488 | 37.1 | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Selling and marketing | (245,662 | ) | (19.3 | ) | (307,339 | ) | (20.1 | ) | (233,687 | ) | (35,814 | ) | (24.4 | ) | ||||||||||||||
General and administrative | (242,084 | ) | (19.0 | ) | (304,626 | ) | (19.9 | ) | (260,239 | ) | (39,884 | ) | (27.2 | ) | ||||||||||||||
Total operating expenses | (487,746 | ) | (38.3 | ) | (611,965 | ) | (40.0 | ) | (493,926 | ) | (75,698 | ) | (51.6 | ) | ||||||||||||||
Operating income/(loss) | 207,612 | 16.3 | 222,789 | 14.6 | (138,393 | ) | (21,210 | ) | (14.5 | ) | ||||||||||||||||||
Interest income | 26,376 | 2.1 | 17,952 | 1.2 | 15,091 | 2,313 | 1.6 | |||||||||||||||||||||
Interest expense | (33,803 | ) | (2.7 | ) | (34,093 | ) | (2.2 | ) | (23,611 | ) | (3,619 | ) | (2.5 | ) | ||||||||||||||
Foreign currency exchange (loss)/gain | (1,383 | ) | (0.1 | ) | (1,506 | ) | (0.1 | ) | (187 | ) | (29 | ) | 0.0 | |||||||||||||||
Other income, net | 15,397 | 1.2 | 10,115 | 0.7 | 26,961 | 4,132 | 2.9 | |||||||||||||||||||||
Impairment loss on long-term investment | — | — | — | — | (37,000 | ) | (5,670 | ) | (3.9 | ) | ||||||||||||||||||
Income/(loss) before income tax expense | 214,199 | 16.8 | 215,257 | 14.1 | (157,139 | ) | (24,083 | ) | (16.4 | ) | ||||||||||||||||||
Income tax (expense)/benefit | (71,763 | ) | (5.6 | ) | (70,697 | ) | (4.6 | ) | 15,695 | 2,406 | 1.6 | |||||||||||||||||
Net income/(loss) | 142,436 | 11.2 | 144,560 | 9.5 | (141,444 | ) | (21,677 | ) | (14.8 | ) | ||||||||||||||||||
Net loss attributable to non-controlling interests | 522 | — | 3,540 | 0.2 | 9,011 | 1,381 | 1.0 | |||||||||||||||||||||
Net income/(loss) attributable to RISE Education Cayman Ltd | 142,958 | 11.2 | 148,100 | 9.7 | (132,433 | ) | (20,296 | ) | (13.8 | ) | ||||||||||||||||||
Non-GAAP Financial Measures: | ||||||||||||||||||||||||||||
EBITDA (2) | 279,852 | 301,419 | (64,370 | ) | (9,865 | ) | ||||||||||||||||||||||
EBITDA margin (3) | 22.0 | % | 19.7 | % | -6.7 | % | ||||||||||||||||||||||
Adjusted EBITDA | 300,204 | 349,308 | (9,371 | ) | (1,437 | ) | ||||||||||||||||||||||
Adjusted EBITDA margin | 23.6 | % | 22.8 | % | -1.0 | % | ||||||||||||||||||||||
Non-GAAP net income/(loss) attributable to RISE Education Cayman Ltd | 179,932 | 213,363 | (60,070 | ) | (9,207 | ) |
For the Year Ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(thousands, except for EBITDA margin) | ||||||||||||||||
Net income/(loss) | 142,436 | 144,560 | (141,444 | ) | (21,677 | ) | ||||||||||
Add: Depreciation | 36,027 | 45,375 | 53,296 | 8,168 | ||||||||||||
Add: Amortization | 22,199 | 24,646 | 30,953 | 4,744 | ||||||||||||
Add: Interest expense | 33,803 | 34,093 | 23,611 | 3,619 | ||||||||||||
Add: Income tax expense/(benefit) | 71,763 | 70,697 | (15,695 | ) | (2,406 | ) | ||||||||||
Less: Interest income | 26,376 | 17,952 | 15,091 | 2,313 | ||||||||||||
EBITDA | 279,852 | 301,419 | (64,370 | ) | (9,865 | ) | ||||||||||
Add: Share-based compensation | 20,352 | 47,889 | 17,999 | 2,758 | ||||||||||||
Add: impairment loss on long-term investment | — | — | 37,000 | 5,670 | ||||||||||||
Adjusted EBITDA | 300,204 | 349,308 | (9,371 | ) | (1,437 | ) | ||||||||||
EBITDA margin | 22.0 | % | 19.7 | % | -6.7 | % | ||||||||||
Adjusted EBITDA margin | 23.6 | % | 22.8 | % | -1.0 | % | ||||||||||
Net income/(loss) | 142,436 | 144,560 | (141,444 | ) | (21,677 | ) | ||||||||||
Add: Share-based compensation | 20,352 | 47,889 | 17,999 | 2,758 | ||||||||||||
Add: Amortization of intangible assets in 2013 acquisition | 16,622 | 17,374 | 17,364 | 2,661 | ||||||||||||
Add: impairment loss on long-term investment | — | — | 37,000 | 5,670 | ||||||||||||
Non-GAAP net income/(loss) | 179,410 | 209,823 | (69,081 | ) | (10,588 | ) |
For the Year Ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(thousands) | ||||||||||||||||
Net cash generated from/(used in) operating activities | 380,034 | (39,854 | ) | (205,742 | ) | (31,531 | ) | |||||||||
Net cash used in investing activities | (100,875 | ) | (114,716 | ) | (111,782 | ) | (17,131 | ) | ||||||||
Net cash used in financing activities | (57,306 | ) | (140,732 | ) | (60,674 | ) | (9,299 | ) | ||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | 10,037 | 1,342 | (5,443 | ) | (835 | ) | ||||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash | 231,890 | (293,960 | ) | (383,641 | ) | (58,796 | ) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 1,084,895 | 1,316,785 | 1,022,825 | 156,755 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | 1,316,785 | 1,022,825 | 639,184 | 97,959 |
For the Year Ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Net cash (used in) continuing operating activities | (20,158 | ) | (18,615 | ) | (29,945 | ) | (4,698 | ) | ||||||||
Net cash (used in) discontinued operating activities | (19,696 | ) | (187,127 | ) | (509,825 | ) | (80,003 | ) | ||||||||
Net cash (used in) operating activities | (39,854 | ) | (205,742 | ) | (539,770 | ) | (84,701 | ) | ||||||||
Net cash generated from continuing investing activities | — | — | 15,932 | 2,500 | ||||||||||||
Net cash (used in) discontinued investing activities | (114,716 | ) | (111,782 | ) | (53,535 | ) | (8,401 | ) | ||||||||
Net cash (used in) investing activities | (114,716 | ) | (111,782 | ) | (37,603 | ) | (5,901 | ) | ||||||||
Net cash (used in) continuing financing activities | (140,732 | ) | (60,674 | ) | (15,841 | ) | (2,486 | ) | ||||||||
Net cash (used in) discontinued financing activities | — | — | (23,308 | ) | (3,658 | ) | ||||||||||
Net cash (used in) financing activities | (140,732 | ) | (60,674 | ) | (39,149 | ) | (6,144 | ) | ||||||||
Effect of foreign exchange rate changes | 1,342 | (5,443 | ) | (6,635 | ) | (1,041 | ) | |||||||||
Net (decrease) in cash, cash equivalents and restricted cash | (293,960 | ) | (383,641 | ) | (623,157 | ) | (97,787 | ) | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 1,316,785 | 1,022,825 | 639,184 | 100,302 | ||||||||||||
Cash, cash equivalents and restricted cash at end of year | 1,022,825 | 639,184 | 16,027 | 2,515 | ||||||||||||
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of year | 998,674 | 628,806 | — | — | ||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of year | 24,151 | 10,378 | 16,027 | 2,515 |
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Our company and our subsidiaries | ||||||||||||
Our company and Cayman Island subsidiaries | — | — | — | |||||||||
Our Hong Kong subsidiaries | 2.1 | % | 1.8 | % | 2.4 | % | ||||||
WFOE | 5.5 | % | 3.8 | % | 1.7 | % | ||||||
Our VIE and its subsidiaries and schools | 92.4 | % | 94.4 | % | 95.9 | % | ||||||
Total Revenues | 100 | % | 100 | % | 100 | % |
For the Year Ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(thousands) | ||||||||||||||||
License fees paid to our Cayman Islands subsidiaries by VIE | 17,514 | 14,080 | — | — | ||||||||||||
Service fees paid to Rise HK* by VIE | 14,016 | — | — | — | ||||||||||||
Service fees and license fees paid to our WFOE by VIE | 207,118 | 348,699 | 272,207 | 41,718 |
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Our company and our subsidiaries | ||||||||||||
Our company and Cayman subsidiaries | 24 | % | 8 | % | 5 | % | ||||||
Our Hong Kong subsidiaries | 4 | % | 10 | % | 14 | % | ||||||
WFOE | 12 | % | 13 | % | 15 | % | ||||||
Our VIE and its subsidiaries and schools | 60 | % | 69 | % | 66 | % | ||||||
Total Assets | 100 | % | 100 | % | 100 | % |
Payment Due by Period | ||||||||||||||||||||||||
Total | Less Than 1 Year | 2-3 Years | 4-5 Years | More than 5 Years | ||||||||||||||||||||
RMB | US$ | RMB | RMB | RMB | RMB | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Operating lease obligations (1) | 724,648 | 111,056 | 201,449 | 325,292 | 138,684 | 59,223 |
As of December 31, 2020 | ||||||||
RMB | US$ | |||||||
(in thousands) | ||||||||
Construction of leasehold improvements | 784 | 120 |
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. Directors and Senior Management |
Directors and Executive Officers | Age | Position/Title | ||
Lihong Wang | Chairwoman, Chief Executive Officer, Director | |||
Jonathan Jia Zhu | Director | |||
Zhongjue Chen | Director | |||
Weili Hong | Independent Director, | |||
Jun Yan | Independent Director, | |||
Acting Chief Financial Officer |
B. Compensation |
Underlying Outstanding Awards Granted | ||||||||||||||||
Name | Ordinary Shares (1) Underlying Outstanding Awards Granted | Price (2) (US$/Share) | Date of Grant (2) | Date of (2) Expiration | ||||||||||||||||
Lihong Wang | * | 0.25 |
* |
(1) | Represents options to purchase ordinary shares. |
(2) | In 2020, we amended certain options previously granted under the 2017 ESOP Plan in 2019, where the exercise price was amended from US$4.25 to US$1.75. In 2021, we amended certain options previously granted under the 2017 ESOP Plan in 2019, where the exercise price was amended from US$1.75 to US$0.25, and the date of grant was amended from August 14, 2020 to December 30, 2021. The date of expiration was amended from April 1, |
Name | Ordinary Shares (1) Outstanding Awards Granted | Price (2) (US$/Share) | Date of Grant (2) | Date of (2) Expiration | ||||||||||||||||
Lihong Wang | * | 0.25 |
* |
(1) | Represents options to purchase ordinary shares. |
(2) | In 2021, we amended certain options previously granted under the 2020 ESOP Plan in 2020, where the exercise price was amended from US$1.75 to US$0.25, and the date of grant was amended from September 11, 2020 to December 30, 2021. The date of expiration was amended from September 11, 2030 to December 31, 2022. |
C. Board Practice |
D. Employees |
As of December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Teachers | 1,911 | 2,315 | 2,049 | |||||||||
Sales and marketing | 668 | 723 | 666 | |||||||||
Administration | 933 | 976 | 906 | |||||||||
Total | 3,512 | 4,014 | 3,621 | |||||||||
E. Share Ownership |
Ordinary Shares Beneficially Owned | Percentage of Total Voting Power held (%†) | Ordinary Shares Beneficially Owned | Percentage of Total Voting Power held (%†) | |||||||||||||
Directors and Executive Officers: (1) | ||||||||||||||||
Lihong Wang | 1,969,896 | 1.7 | % | 3,171,296 | 2.7 | % | ||||||||||
Yiding Sun (2) | 1,430,000 | 1.3 | % | |||||||||||||
All directors and executive officers as a group | 3,399,896 | 3.0 | % | 3,171,296 | 2.6 | % | ||||||||||
Principal Shareholders: | ||||||||||||||||
Bain Capital Rise Education IV Cayman Limited (3) | 70,800,808 | 62.7 | % | |||||||||||||
Morgan Stanley (4) | 6,406,818 | 5.7 | % | |||||||||||||
ZHAO Bingxian (5) | 6,439,702 | 5.7 | % | |||||||||||||
Bain Capital Rise Education IV Cayman Limited (2) | 70,800,808 | 59.7 | % |
* | Less than 1% of our total outstanding shares. |
† | For each person and group included in this column, percentage ownership is calculated by dividing the number of ordinary shares beneficially owned by such person or group, including shares that such person or group has the right to acquire within 60 days after the date of this annual report, by the sum of (i) |
(1) | The business address of Mr. Zhongjue Chen and Mr. Jonathan Jia Zhu is Suite 2501, Level 25, One Pacific Place, 88 Queensway, Hong Kong, and the business address of Ms. Lihong Wang and our other directors and executive officers is c/o |
(2) |
Bain Capital Rise Education IV Cayman Limited, or Bain Capital Entity, is owned by Bain Capital Asia Integral Investors, L.P. Bain Capital Investors, LLC, or BCI, is the general partner of Bain Capital Asia Integral Investors, L.P. The governance, investment strategy and decision-making process with respect to investments held by the Bain Capital Entity is directed by the Global Private Equity Board of BCI. As a result of the relationships described above, BCI may be deemed to share beneficial ownership of the shares held by the Bain Capital Entity. The Bain Capital Entity has an address c/o Bain Capital Private Equity, LP, 200 Clarendon Street, Boston, Massachusetts 02116. |
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. Major Shareholders |
B. Related Party Transactions |
C. Interest of Experts and Counsel |
ITEM 8. | FINANCIAL INFORMATION |
B. Significant Changes |
ITEM 9. | THE OFFER AND LISTING |
A. Offer and Listing Details |
B. Plan of Distribution |
C. Markets |
D. Selling Shareholders |
E. Dilution |
F. Expenses of the Issue |
ITEM 10. | ADDITIONAL INFORMATION |
A. Share Capital |
B. Memorandum and Articles of Association |
C. Material Contracts The following summarizes each material contract, other than contracts entered into in the ordinary course of business, to which we or any subsidiary of ours is a party for the immediately preceding two years. WFOE Purchase Agreement. Pursuant to the WFOE Purchase Agreement, the Company has agreed to, through Rise HK, sell all of the equity interests in WFOE to the Buyer Consortium (the “WFOE Sale”), in consideration of the Buyer Consortium (i) paying to Rise HK a nominal consideration, and (ii) assuming all liabilities of WFOE and its subsidiaries. Conditions precedent to the WFOE Sale include, among others, (i) Rise HK and Rise IP shall grant WFOE or other entities designated by the Buyer Consortium a royalty-free, perpetual, irrevocable and exclusive license over all intellectual property rights owned by or licensed to Rise HK and/ or Rise IP, (ii) the Company shall make an additional capital contribution to WFOE in US dollars equivalent of RMB20 million, and (iii) the lenders (the “Lenders”) of the facilities agreement dated March 18, 2021 relating to the term and revolving facilities of up to an aggregate amount of US$80,000,000 (the “Facilities Agreement”) shall have released the applicable guarantees, obligations and equity pledges provided by WFOE and VIE. In addition, the Buyer SPV and its affiliates warrant that they will have no less than RMB100,000,000 at the closing of the WFOE Sale to fund the business operations of WFOE and its subsidiaries after completion of the Sale. IP Holdco Purchase Agreement Settlement Agreement. Convertible Loan Deed The Company announced closing of the Sale on December 30, 2021, upon which the Company has, through its subsidiaries, sold substantially all of its assets. Merger Agreement 30 Support Agreement Voting Agreement D. Exchange Controls |
E. Taxation |
F. Dividends and Paying Agents |
G. Statement by Experts |
H. Documents on Display |
I. Subsidiary Information |
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
Not applicable. B. Warrants and Rights Not applicable. C. Other Securities |
D. American Depositary Shares |
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
A.—D. Material Modifications to the Rights of Security Holders |
E. Use of Proceeds |
ITEM 15. | CONTROLS AND PROCEDURES |
ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. | CODE OF ETHICS |
ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
For the Year Ended December 31, | ||||||||||||||||
For the Year Ended December 31, | 2020 | 2021 | ||||||||||||||
2019 | 2020 | |||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Audit fees (1) | $ | 1,106 | $ | 1,143 | $ | 1,143 | $ | 612 | ||||||||
Tax fees (2) | $ | 15 | $ | — | — | — | ||||||||||
All other fees (3) | $ | 265 | $ | 881 | $ | 881 | — |
(1) | Audit fees means the aggregate fees billed in each of the fiscal periods listed for professional services rendered by our principal auditors for the audit of our annual consolidated financial statements and assistance with and review of documents filed with the SEC. |
(2) | Tax fees means the aggregate fees billed in each of the fiscal periods listed for professional tax services rendered by our principal auditors. |
(3) | “All other fees” means the aggregate fees billed in each of the fiscal periods listed for professional services rendered by our principal auditors other than the professional services reported under “audit fees”, “audit-related fees” and “tax fees”. In 2020, the professional services were related to permissible advisory services rendered by our principal auditors. |
ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. | CORPORATE GOVERNANCE |
ITEM 16H. | MINE SAFETY DISCLOSURE |
ITEM 16I. | DISCLOSURE REGARDING FOREIGN JURISDICTION THAT PREVENT INSPECTIONS |
ITEM 17. | FINANCIAL STATEMENTS |
ITEM 18. | FINANCIAL STATEMENTS |
ITEM 19. | EXHIBITS |
Exhibit Number | Description of Document | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104* | Cover Page Interactive Data File the cover page XBRL tags are embedded within the Exhibit 101 Inline XBRL document set |
* | ||
Filed with this annual report on Form 20-F. |
** | Furnished with this annual report on Form 20-F. |
RISE Education Cayman Ltd | ||
By: | /s/ Lihong Wang | |
Name: | Lihong Wang | |
Title: | Chairwoman and Chief Executive Officer |
Page | ||||
F-2 | ||||
F-3 | ||||
F-5 | ||||
F-6 | ||||
F-7-F-8 | ||||
F-10-F-45 |
As at December 31, | ||||||||||||
2020 | 2021 | 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 5,134 | 16,027 | 2,515 | |||||||||
Restricted cash | 5,244 | — | — | |||||||||
Amounts due from related parties | 181 | 177 | 28 | |||||||||
Prepayments and other current assets | 4,509 | 14,451 | 2,268 | |||||||||
Current assets of discontinued operations (including current assets of the variable interest entity (“VIE”) without recourse to the Company amounting to RMB420,254 and RMB 0nil as of December 31, 2020 and 2021, respectively) | 729,500 | — | — | |||||||||
Total current assets | 744,568 | 30,655 | 4,811 | |||||||||
Non-current assets: | ||||||||||||
Non-current assets of discontinued operations (including non-current assets of the VIE without recourse to the Company amounting to RMB1,134,372 and RMB 0nil | 1,681,837 | — | — | |||||||||
Total non-current assets | 1,681,837 | — | — | |||||||||
Total assets | 2,426,405 | 30,655 | 4,811 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of long-term loan | 226,744 | — | — | |||||||||
Accrued expenses and other current liabilities | 1,469 | 8,625 | 1,353 | |||||||||
Current liabilities of discontinued operations (including current liabilities of the variable interest entity (“VIE”) without recourse to the Company amounting to RMB882,038 and RMB 0nil | 940,142 | — | — | |||||||||
Total current liabilities | 1,168,355 | 8,625 | 1,353 | |||||||||
Non-current liabilities: | ||||||||||||
Long-term loan | 191,397 | — | — | |||||||||
Other non-current liabilities | — | 2,838 | 445 | |||||||||
Convertible loan from related parties | — | 108,334 | 17,000 | |||||||||
Non-current liabilities of discontinued operations (includingnon-current liabilities of the VIE without recourse to the Company amounting to RMB499,092 and RMB 0nil as of December 31, 2020 and 2021, respectively) | 565,147 | — | — | |||||||||
Total non-current liabilities | 756,544 | 111,172 | 17,445 | |||||||||
Total liabilities | 1,924,899 | 119,797 | 18,798 | |||||||||
Commitments and contingencies | 0 | 0 | 0 | |||||||||
Shareholders’ equity: | ||||||||||||
Ordinary shares (US$0.01 par value; 200,000,000 and 200,000,000 shares authorized, 112,951,232 and 113,030,392 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 6,959 | 6,964 | 1,093 | |||||||||
Additional paid-in capital | 603,173 | 274,036 | 43,002 | |||||||||
Statutory reserves | 105,357 | — | — | |||||||||
Accumulated deficit | (260,019 | ) | (403,149 | ) | (63,263 | ) | ||||||
Accumulated other comprehensive incom e | 39,642 | 33,007 | 5,181 | |||||||||
Total RISE Education Cayman Ltd shareholders’ equity (deficit) | 495,112 | (89,142 | ) | (13,987 | ) | |||||||
Non-controlling interests | 6,394 | — | — | |||||||||
Total equity (deficit) | 501,506 | (89,142 | ) | (13,987 | ) | |||||||
Total liabilities, non-controlling interests and shareholders’ equity | 2,426,405 | 30,655 | 4,811 |
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | (15,275 | ) | (17,606 | ) | (30,003 | ) | (4,708 | ) | ||||||||
Total operating expenses | (15,275 | ) | (17,606 | ) | (30,003 | ) | (4,708 | ) | ||||||||
Operating loss | (15,275 | ) | (17,606 | ) | (30,003 | ) | (4,708 | ) | ||||||||
Interest income | 80 | 13 | 2 | 0 | ||||||||||||
Gain on troubled debt restructuring | 0 | 0 | 279,097 | 43,796 | ||||||||||||
Net income/(loss)from continuing operations before income tax expense | (15,195 | ) | (17,593 | ) | 249,096 | 39,088 | ||||||||||
Net income/(loss) from continuing operations | (15,195 | ) | (17,593 | ) | 249,096 | 39,088 | ||||||||||
Net income/(loss) from discontinued operations, net of tax | 159,755 | (123,851 | ) | (507,280 | ) | (79,603 | ) | |||||||||
Net income/(loss) | 144,560 | (141,444 | ) | (258,184 | ) | (40,515 | ) | |||||||||
Net income /(loss) from continuing operations attributable to non-controlling interests | 0 | 0 | 0 | 0 | ||||||||||||
Loss from discontinued operations attributable to non-controlling interests | (3,540 | ) | (9,011 | ) | (9,697 | ) | (1,522 | ) | ||||||||
Less: Net loss attributable to non-controlling interests | (3,540 | ) | (9,011 | ) | (9,697 | ) | (1,522 | ) | ||||||||
Net income/(loss) attributable to RISE Education Cayman Ltd | 148,100 | (132,433 | ) | (248,487 | ) | (38,993 | ) | |||||||||
Net income/(loss) from continuing operations attributable to RISE Education Cayman Ltd | (15,195 | ) | (17,593 | ) | 249,096 | 39,088 | ||||||||||
Net income/(loss) from discontinued operations attributable to RISE Education Cayman Ltd, net of tax | 163,295 | (114,840 | ) | (497,583 | ) | (78,081 | ) | |||||||||
Net income/(loss) attributable to RISE Education Cayman Ltd | 148,100 | (132,433 | ) | (248,487 | ) | (38,993 | ) | |||||||||
Net income/(loss) per share - Basic: | ||||||||||||||||
Continuing operations | (0.13 | ) | (0.15 | ) | 2.21 | 0.35 | ||||||||||
Discontinued operations | 1.44 | (1.02 | ) | (4.41 | ) | (0.69 | ) | |||||||||
Total net income/(loss) per share - Basic | 1.31 | (1.17 | ) | (2.20 | ) | (0.34 | ) | |||||||||
Net income/(loss) per share - Diluted: | ||||||||||||||||
Continuing operations | (0.13 | ) | (0.15 | ) | 2.21 | 0.35 | ||||||||||
Discontinued operations | 1.42 | (1.02 | ) | (4.41 | ) | (0.69 | ) | |||||||||
Total net income/(loss) per share - Diluted | 1.29 | (1.17 | ) | (2.20 | ) | (0.34 | ) | |||||||||
Net income/(loss) per ADS*- Basic: | ||||||||||||||||
Continuing operations | (0.26 | ) | (0.31 | ) | 4.42 | 0.70 | ||||||||||
Discontinued operations | 2.88 | (2.04 | ) | (8.82 | ) | (1.38 | ) | |||||||||
Total net income/(loss) per ADS - Basic | 2.62 | (2.35 | ) | (4.40 | ) | (0.68 | ) | |||||||||
Net income/(loss) per ADS* - Diluted: | ||||||||||||||||
Continuing operations | (0.25 | ) | (0.31 | ) | 4.42 | 0.70 | ||||||||||
Discontinued operations | 2.84 | (2.04 | ) | (8.82 | ) | (1.38 | ) | |||||||||
Total net income/(loss) per ADS - Diluted | 2.59 | (2.35 | ) | (4.40 | ) | (0.68 | ) | |||||||||
Shares used in net income/(loss) per share computation | ||||||||||||||||
Basic | 113,187,721 | 112,813,031 | 112,868,532 | 112,868,532 | ||||||||||||
Diluted | 114,464,108 | 112,813,031 | 112,868,532 | 112,868,532 |
*1 | ADS represents 2 ordinary shares |
As at December 31, | ||||||||||||||||
Notes | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | US$ | ||||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | 999,012 | 554,620 | 84,999 | |||||||||||||
Restricted cash | 23,813 | 84,564 | 12,960 | |||||||||||||
Accounts receivable, net | 1,745 | 2,281 | 350 | |||||||||||||
Amounts due from related parties | 13 | 191 | 733 | 112 | ||||||||||||
Inventories | 8,685 | 7,814 | 1,198 | |||||||||||||
Prepayments and other current assets | 6 | 51,420 | 94,556 | 14,491 | ||||||||||||
Total current assets | 1,084,866 | 744,568 | 114,110 | |||||||||||||
Non-current assets: | ||||||||||||||||
Property and equipment, net | 7 | 137,340 | 107,537 | 16,481 | ||||||||||||
Intangible assets, net | 8 | 210,346 | 185,647 | 28,452 | ||||||||||||
Long-term investment | 2 | 33,000 | — | — | ||||||||||||
Goodwill | 9 | 665,416 | 659,255 | 101,035 | ||||||||||||
Deferred tax assets, net | 12 | 11,026 | 34,241 | 5,248 | ||||||||||||
Other non-current assets | 49,638 | 55,853 | 8,560 | |||||||||||||
Operating lease right-of-use assets | 2 | 610,323 | 639,304 | 97,977 | ||||||||||||
Total non-current assets | 1,717,089 | 1,681,837 | 257,753 | |||||||||||||
Total assets | 2,801,955 | 2,426,405 | 371,863 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities | ||||||||||||||||
Current portion of long-term loan | 11 | 134,015 | 226,744 | 34,750 | ||||||||||||
Accounts payable | 7,553 | 11,028 | 1,690 | |||||||||||||
Accrued expenses and other current liabilities | 10 | 202,808 | 164,193 | 25,164 | ||||||||||||
Deferred revenue and customer advances | 5 | 716,637 | 563,736 | 86,396 | ||||||||||||
Income taxes payable | 12 | 14,594 | 5,556 | 851 | ||||||||||||
Current portion of operating lease liabilities | 2 | 157,911 | 197,098 | 30,207 | ||||||||||||
Total current liabilities | 1,233,518 | 1,168,355 | 179,058 |
As at December 31, | ||||||||||||||||
Notes | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | US$ | ||||||||||||||
Non-current liabilitiesnon-current liabilities of the VIE without recourse to the Company amounting to RMB512,827 and RMB499,092 (US$76,489) as of December 31, 2019 and 2020, respectively) | ||||||||||||||||
Long-term loan | 11 | 370,163 | 191,397 | 29,333 | ||||||||||||
Deferred revenue and customer advances | 5 | 39,397 | 38,204 | 5,855 | ||||||||||||
Operating lease liabilities | 2 | 464,304 | 452,485 | 69,346 | ||||||||||||
Deferred tax liabilities, net | 12 | 31,116 | 24,011 | 3,680 | ||||||||||||
Other non-current liabilities | 12 | 39,156 | 50,447 | 7,732 | ||||||||||||
Total non-current liabilities | 944,136 | 756,544 | 115,946 | |||||||||||||
Total liabilities | 2,177,654 | 1,924,899 | 295,004 | |||||||||||||
Commitments and contingencies | 17 | 0— | 0— | 0— | ||||||||||||
Shareholders’ equity: | ||||||||||||||||
Ordinary shares (US$0.01 par value; 200,000,000 and 200,000,000 shares authorized, 112,755,320 and 112,951,232 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 6,946 | 6,959 | 1,067 | |||||||||||||
Additional paid-in capital | 583,262 | 603,173 | 92,440 | |||||||||||||
Statutory reserves | 14 | 104,830 | 105,357 | 16,147 | ||||||||||||
Accumulated deficit | (127,059 | ) | (260,019 | ) | (39,850 | ) | ||||||||||
Accumulated other comprehensive income | 18 | 40,917 | 39,642 | 6,075 | ||||||||||||
Total RISE Education Cayman Ltd shareholders’ equity | 608,896 | 495,112 | 75,879 | |||||||||||||
Non-controlling interests | 15,405 | 6,394 | 980 | |||||||||||||
Total equity | 624,301 | 501,506 | 76,859 | |||||||||||||
Total liabilities, non-controlling interests and shareholders’ equity | 2,801,955 | 2,426,405 | 371,863 |
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Net income/(loss) | 144,560 | (141,444 | ) | (258,184 | ) | (40,515 | ) | |||||||||
Other comprehensive income/(loss), net of tax of nil: | ||||||||||||||||
Foreign currency translation adjustment s | (1,542 | ) | (1,275 | ) | (6,635 | ) | (1,041 | ) | ||||||||
Other comprehensive income/(loss) | (1,542 | ) | (1,275 | ) | (6,635 | ) | (1,041 | ) | ||||||||
Comprehensive income/(loss) | 143,018 | (142,719 | ) | (264,819 | ) | (41,556 | ) | |||||||||
Less: comprehensive income (loss) attributable to non-controlling interests | (3,540 | ) | (9,011 | ) | (9,697 | ) | (1,522 | ) | ||||||||
Comprehensive income/(loss) attributable to RISE Education Cayman Ltd | 146,558 | (133,708 | ) | (255,122 | ) | (40,034 | ) |
Ordinary shares (Number) | Ordinary Shares (Amount) | Additional paid-in capital | Treasury shares | Statutory reserves | Accumulated deficit | Accumulative other comprehensive income/(loss) | Total RISE Education Cayman Ltd shareholder’s equity | Non- controlling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||
Balance at January 1, 2019 | 113,779,244 | 7,074 | 600,011 | (23,460 | ) | 78,345 | (248,674 | ) | 42,459 | 455,755 | (14,921 | ) | 440,834 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | 148,100 | — | 148,100 | (3,540 | ) | 144,560 | |||||||||||||||||||||||||||||
Acquisition of subsidiary | — | — | — | — | — | — | — | — | 33,866 | 33,866 | ||||||||||||||||||||||||||||||
Share-based compensation | — | — | 47,889 | — | — | — | — | 47,889 | — | 47,889 | ||||||||||||||||||||||||||||||
Issuances in relation to share option exercise | 468,384 | 32 | 4,615 | — | — | — | — | 4,647 | — | 4,647 | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | (1,542 | ) | (1,542 | ) | — | (1,542 | ) | |||||||||||||||||||||||||||
Repurchase of ordinary shares* | (1,492,308 | ) | — | — | (45,953 | ) | — | — | — | (45,953 | ) | — | (45,953 | ) | ||||||||||||||||||||||||||
Retirement of treasury shares* | — | (160 | ) | (69,253 | ) | 69,413 | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Appropriation of statutory reserves | — | — | — | — | 26,485 | (26,485 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Balance at December 31, 2019 | 112,755,320 | 6,946 | 583,262 | — | 104,830 | (127,059 | ) | 40,917 | 608,896 | 15,405 | 624,301 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (132,433 | ) | — | (132,433 | ) | (9,011 | ) | (141,444 | ) | ||||||||||||||||||||||||||
Share-based compensation | — | — | 17,999 | — | — | — | — | 17,999 | — | 17,999 | ||||||||||||||||||||||||||||||
Issuances in relation to share option exercise | 195,912 | 13 | 1,912 | — | — | — | — | 1,925 | — | 1,925 | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | (1,275 | ) | (1,275 | ) | — | (1,275 | ) | |||||||||||||||||||||||||||
Appropriation of statutory reserves | — | — | — | — | 527 | (527 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | 112,951,232 | 6,959 | 603,173 | — | 105,357 | (260,019 | ) | 39,642 | 495,112 | 6,394 | 501,506 |
For the years ended December 31, | ||||||||||||||||||||
Notes | 2018 | 2019 | 2020 | 2020 | ||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||
Revenues | 5 | 1,271,888 | 1,529,447 | 958,467 | 146,891 | |||||||||||||||
Cost of revenues | (576,530 | ) | (694,693 | ) | (602,934 | ) | (92,403 | ) | ||||||||||||
Gross profit | 695,358 | 834,754 | 355,533 | 54,488 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling and marketing | (245,662 | ) | (307,339 | ) | (233,687 | ) | (35,814 | ) | ||||||||||||
General and administrative | (242,084 | ) | (304,626 | ) | (260,239 | ) | (39,884 | ) | ||||||||||||
Total operating expenses | (487,746 | ) | (611,965 | ) | (493,926 | ) | (75,698 | ) | ||||||||||||
Operating income/(loss) | 207,612 | 222,789 | (138,393 | ) | (21,210 | ) | ||||||||||||||
Interest income | 26,376 | 17,952 | 15,091 | 2,313 | ||||||||||||||||
Interest expense | (33,803 | ) | (34,093 | ) | (23,611 | ) | (3,619 | ) | ||||||||||||
Foreign currency exchange loss | (1,383 | ) | (1,506 | ) | (187 | ) | (29 | ) | ||||||||||||
Other income, net | 15,397 | 10,115 | 26,961 | 4,132 | ||||||||||||||||
Impairment loss of long-term investment | 2 | — | — | (37,000 | ) | (5,670 | ) | |||||||||||||
Income/(loss) before income tax expense | 214,199 | 215,257 | (157,139 | ) | (24,083 | ) | ||||||||||||||
Income tax (expense)/benefit | 12 | (71,763 | ) | (70,697 | ) | 15,695 | 2,406 | |||||||||||||
Net income/(loss) | 142,436 | 144,560 | (141,444 | ) | (21,677 | ) | ||||||||||||||
Add: Net loss attributable to non-controlling interests | 522 | 3,540 | 9,011 | 1,381 | ||||||||||||||||
Net income/(loss) attributable to RISE Education Cayman Ltd | 142,958 | 148,100 | (132,433 | ) | (20,296 | ) | ||||||||||||||
Net income/(loss) per share: | ||||||||||||||||||||
Basic | 15 | 1.26 | 1.31 | (1.17 | ) | (0.18 | ) | |||||||||||||
Diluted | 15 | 1.23 | 1.29 | (1.17 | ) | (0.18 | ) | |||||||||||||
Net income/(loss) per ADS (1 ADS represents 2 ordinary shares): | ||||||||||||||||||||
Basic | 15 | 2.51 | 2.62 | (2.35 | ) | (0.36 | ) | |||||||||||||
Diluted | 15 | 2.47 | 2.59 | (2.35 | ) | (0.36 | ) | |||||||||||||
Shares used in net income/(loss) per share computation | ||||||||||||||||||||
Basic | 15 | 113,812,182 | 113,187,721 | 112,813,031 | 112,813,031 | |||||||||||||||
Diluted | 15 | 115,881,867 | 114,464,108 | 112,813,031 | 112,813,031 |
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Net income/(loss) | 142,436 | 144,560 | (141,444 | ) | (21,677 | ) | ||||||||||
Other comprehensive income/(loss), net of tax of nil: | ||||||||||||||||
Foreign currency translation adjustments | 2,419 | (1,542 | ) | (1,275 | ) | (196 | ) | |||||||||
Other comprehensive income/(loss) | 2,419 | (1,542 | ) | (1,275 | ) | (196 | ) | |||||||||
Comprehensive income/(loss) | 144,855 | 143,018 | (142,719 | ) | (21,873 | ) | ||||||||||
Add: comprehensive loss attributable to non-controlling interests | 522 | 3,540 | 9,011 | 1,381 | ||||||||||||
Comprehensive income/(loss) attributable to RISE Education Cayman Ltd | 145,377 | 146,558 | (133,708 | ) | (20,492 | ) |
Ordinary shares (Number) | Ordinary Shares (Amount) | Additional paid-in capital | Treasury Shares | Statutory reserves | Accumulated deficit | Accumulative other comprehensive income/(loss) | Total RISE Education Cayman Ltd shareholder’s equity | Non-controlling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||
Balance at January 1, 2018 | 110,000,000 | 6,782 | 532,474 | — | 46,366 | (315,531 | ) | 40,040 | 310,131 | (14,399 | ) | 295,732 | ||||||||||||||||||||||||||||
Issuance of ordinary shares for business acquisition * | 216,021 | 14 | 9,198 | — | — | — | — | 9,212 | — | 9,212 | ||||||||||||||||||||||||||||||
Issuances in relation to share option exercise | 4,388,397 | 278 | 39,708 | — | — | — | — | 39,986 | — | 39,986 | ||||||||||||||||||||||||||||||
Cash-settled share-based compensation (Note 16) | — | (1,721 | ) | — | — | — | — | (1,721 | ) | — | (1,721 | ) | ||||||||||||||||||||||||||||
Share-based compensation (Note 16) | — | — | 20,352 | — | — | — | — | 20,352 | — | 20,352 | ||||||||||||||||||||||||||||||
Appropriation of statutory reserves | — | — | — | — | 31,979 | (31,979 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Repurchase of ordinary shares** | (825,174 | ) | — | — | (23,460 | ) | — | — | — | (23,460 | ) | — | (23,460 | ) | ||||||||||||||||||||||||||
Net income | — | — | — | — | — | 142,958 | — | 142,958 | (522 | ) | 142,436 | |||||||||||||||||||||||||||||
Effect of adoption of ASU 2014-09 (Note 5) | — | — | — | — | — | (44,122 | ) | — | (44,122 | ) | — | (44,122 | ) | |||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 2,419 | 2,419 | — | 2,419 | ||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 113,779,244 | 7,074 | 600,011 | (23,460 | ) | 78,345 | (248,674 | ) | 42,459 | 455,755 | (14,921 | ) | 440,834 |
* |
Ordinary shares (Number) | Ordinary Shares (Amount) | Additional paid-in capital | Treasury Shares | Statutory reserves | Accumulated deficit | Accumulative other comprehensive income/(loss) | Total RISE Education Cayman Ltd shareholder’s equity | Non-controlling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||
Balance at January 1, 2019 | 113,779,244 | 7,074 | 600,011 | (23,460 | ) | 78,345 | (248,674 | ) | 42,459 | 455,755 | (14,921 | ) | 440,834 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | 148,100 | — | 148,100 | (3,540 | ) | 144,560 | |||||||||||||||||||||||||||||
Acquisition of subsidiary (Note 4) | — | — | — | — | — | — | — | — | 33,866 | 33,866 | ||||||||||||||||||||||||||||||
Share-based compensation (Note 16) | — | — | 47,889 | — | — | — | — | 47,889 | — | 47,889 | ||||||||||||||||||||||||||||||
Issuances in relation to share option exercise | 468,384 | 32 | 4,615 | — | — | — | — | 4,647 | — | 4,647 | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | (1,542 | ) | (1,542 | ) | — | (1,542 | ) | |||||||||||||||||||||||||||
Repurchase of ordinary shares* | (1,492,308 | ) | — | — | (45,953 | ) | — | — | — | (45,953 | ) | — | (45,953 | ) | ||||||||||||||||||||||||||
Retirement of treasury shares* | (160 | ) | (69,253 | ) | 69,413 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Appropriation of statutory reserves | — | — | — | — | 26,485 | (26,485 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Balance at December 31, 2019 | 112,755,320 | 6,946 | 583,262 | — | 104,830 | (127,059 | ) | 40,917 | 608,896 | 15,405 | 624,301 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (132,433 | ) | — | (132,433 | ) | (9,011 | ) | (141,444 | ) | ||||||||||||||||||||||||||
Share-based compensation (Note 16) | — | — | 17,999 | — | — | — | — | 17,999 | — | 17,999 | ||||||||||||||||||||||||||||||
Issuances in relation to share option exercise | 195,912 | 13 | 1,912 | — | — | — | — | 1,925 | — | 1,925 | ||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | (1,275 | ) | (1,275 | ) | — | (1,275 | ) | |||||||||||||||||||||||||||
Appropriation of statutory reserves | — | — | — | — | 527 | (527 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | 112,951,232 | 6,959 | 603,173 | — | 105,357 | (260,019 | ) | 39,642 | 495,112 | 6,394 | 501,506 | |||||||||||||||||||||||||||||
Balance at December 31, 2020 (US$) | 112,951,232 | 1,067 | 92,440 | — | 16,147 | (39,850 | ) | 6,075 | 75,879 | 980 | 76,859 |
In November 2018, the Board of Directors approved share repurchase program to purchase up to US$30,000 of the Company’s ordinary shares. As of December 31, 2019, pursuant to the share repurchase program, the Company repurchased 1,158,741 outstanding ADS representing 2,317,482 outstanding ordinary shares for an aggregated purchase price of RMB69,413. All shares repurchased were retired as of December 31, 2019 (Note 2). |
Ordinary shares (Number) | Ordinary Shares (Amount) | Additional paid-in capital | Treasury shares | Statutory reserves | Accumulated deficit | Accumulative other comprehensive income/(loss) | Total RISE Education Cayman Ltd shareholder’s equity | Non- controlling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 112,951,232 | 6,959 | 603,173 | — | 105,357 | (260,019 | ) | 39,642 | 495,112 | 6,394 | 501,506 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (248,487 | ) | — | (248,487 | ) | (9,697 | ) | (258,184 | ) | ||||||||||||||||||||||||||
Share-based compensation | — | — | 9,537 | — | — | — | — | 9,537 | — | 9,537 | ||||||||||||||||||||||||||||||
Issuances in relation to share option exercise | 79,160 | 5 | 807 | — | — | — | — | 812 | — | 812 | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | (6,635 | ) | (6,635 | ) | — | (6,635 | ) | |||||||||||||||||||||||||||
Appropriation of statutory reserves | — | — | — | — | 1,565 | (1,565 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Disposal of RISE IP&RISE HK | — | — | (339,481 | ) | — | — | — | — | (339,481 | ) | — | (339,481 | ) | |||||||||||||||||||||||||||
Disposal of WFOE | — | — | — | — | (106,922 | ) | 106,922 | — | — | 3,303 | 3,303 | |||||||||||||||||||||||||||||
Balance at December 31, 2021 | 113,030,392 | 6,964 | 274,036 | — | — | (403,149 | ) | 33,007 | (89,142 | ) | — | (89,142 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2021 (US$) | 113,030,392 | 1,093 | 43,002 | — | — | (63,263 | ) | 5,181 | (13,987 | ) | — | (13,987 | ) |
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
Net income/(loss) | 142,436 | 144,560 | (141,444 | ) | (21,677 | ) | ||||||||||
Adjustments to reconcile net income/(loss) to net cash generated from operating activities: | ||||||||||||||||
Depreciation and amortization expenses | 58,225 | 70,021 | 84,249 | 12,912 | ||||||||||||
Share-based compensation | 18,631 | 47,889 | 17,999 | 2,758 | ||||||||||||
(Gain)/loss on disposal of equipment | (94 | ) | (7 | ) | 91 | 14 | ||||||||||
Amortization of debt issuance cost | 8,225 | 7,639 | 6,299 | 965 | ||||||||||||
Deferred income tax expense/(benefit) | 6,740 | 6,475 | (31,149 | ) | (4,774 | ) | ||||||||||
Impairment loss of long-term investment | — | — | 37,000 | 5,670 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepayments and other current assets | (29,839 | ) | 13,547 | 2,819 | 432 | |||||||||||
Accounts receivable, net | 112 | 706 | (647 | ) | (99 | ) | ||||||||||
Amounts due from related parties | 6,277 | — | (552 | ) | (85 | ) | ||||||||||
Inventories | (3,415 | ) | 3,104 | 871 | 133 | |||||||||||
Accounts payable | 2,385 | (873 | ) | 3,475 | 533 | |||||||||||
Accrued expenses and other current liabilities | 8,308 | (5,595 | ) | (24,145 | ) | (3,700 | ) | |||||||||
Income taxes payable | 4,242 | (11,698 | ) | (8,780 | ) | (1,346 | ) | |||||||||
Deferred revenue and customer advances | 181,828 | (331,657 | ) | (156,732 | ) | (24,020 | ) | |||||||||
Due to a related party | (20,000 | ) | — | — | — | |||||||||||
Other non-current assets | (9,479 | ) | 6,363 | (3,213 | ) | (492 | ) | |||||||||
Other non-current liabilities | 5,452 | (2,220 | ) | 9,730 | 1,491 | |||||||||||
Operating lease right-of-use | — | (610,323 | ) | (28,981 | ) | (4,441 | ) | |||||||||
Current portion of operating lease liabilities | — | 157,911 | 39,187 | 6,006 | ||||||||||||
Operating lease liabilities | — | 464,304 | (11,819 | ) | (1,811 | ) | ||||||||||
Net cash generated from/(used in) operating activities | 380,034 | (39,854 | ) | (205,742 | ) | (31,531 | ) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
Proceeds from disposal of equipment | 100 | 7 | 73 | 11 | ||||||||||||
Purchase of property and equipment | (65,210 | ) | (50,849 | ) | (23,876 | ) | (3,659 | ) | ||||||||
Purchase of intangible assets | (8,780 | ) | (11,592 | ) | (13,075 | ) | (2,004 | ) | ||||||||
Purchase of short-term investments | (405,000 | ) | (300,000 | ) | (568,000 | ) | (169,042 | ) | ||||||||
Proceeds from maturity of short-term investments | 405,000 | 300,000 | 568,000 | 169,042 | ||||||||||||
Acquisition of subsidiaries, net of cash acquired | (18,076 | ) | (16,782 | ) | (19,904 | ) | (3,050 | ) | ||||||||
Purchase of long-term investment | — | (33,000 | ) | (4,000 | ) | (613 | ) | |||||||||
Business acquisition advance payment | (8,909 | ) | (2,500 | ) | (3,000 | ) | (460 | ) | ||||||||
Short-term loan to franchisees (Note 6) | — | — | (48,000 | ) | (7,356 | ) | ||||||||||
Loans to a related party | (150,000 | ) | (100,000 | ) | — | — | ||||||||||
Repayment of loans to a related party | 150,000 | 100,000 | — | — | ||||||||||||
Net cash used in investing activities | (100,875 | ) | (114,716 | ) | (111,782 | ) | (17,131 | ) |
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
Net income/(loss) from continuing operation s | (15,195 | ) | (17,593 | ) | 249,096 | 39,088 | ||||||||||
Gain on troubled debt restructuring | 0 | 0 | (279,097 | ) | (43,796 | ) | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepayments and other current assets | (5,946 | ) | 1,437 | (9,942 | ) | (1,560 | ) | |||||||||
Accrued expenses and other current liabilities | 983 | (2,459 | ) | 7,160 | 1,125 | |||||||||||
Other non-current liabilitie s | 0 | 0 | 2,838 | 445 | ||||||||||||
Net cash (used in) continuing operating activities | (20,158 | ) | (18,615 | ) | (29,945 | ) | (4,698 | ) | ||||||||
Net cash (used in) discontinued operating activities | (19,696 | ) | (187,127 | ) | (509,825 | ) | (80,003 | ) | ||||||||
Net cash (used in) operating activities | (39,854 | ) | (205,742 | ) | (539,770 | ) | (84,701 | ) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
Proceeds from disposal of subsidiaries | 0 | 0 | 15,932 | 2,500 | ||||||||||||
Net cash generated from continuing investing activities | 0 | 0 | 15,932 | 2,500 | ||||||||||||
Net cash (used in) discontinued investing activities | (114,716 | ) | (111,782 | ) | (53,535 | ) | (8,401 | ) | ||||||||
Net cash (used in) investing activities | (114,716 | ) | (111,782 | ) | (37,603 | ) | (5,901 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
Repurchase of ordinary shares | (48,047 | ) | 0 | — | — | |||||||||||
Principal repayments on loans | (97,332 | ) | (62,599 | ) | (124,987 | ) | (19,613 | ) | ||||||||
Proceeds from exercise of share options | 4,647 | 1,925 | 812 | 127 | ||||||||||||
Convertible loan from related party | 0 | 0 | 108,334 | 17,000 | ||||||||||||
Net cash generated used in continuing financing activities | (140,732 | ) | (60,674 | ) | (15,841 | ) | (2,486 | ) | ||||||||
Net cash (used in) discontinued financing activities | 0 | 0 | (23,308 | ) | (3,658 | ) | ||||||||||
Net cash (used in) financing activities | (140,732 | ) | (60,674 | ) | (39,149 | ) | (6,144 | ) | ||||||||
Effects of exchange rate changes | 1,342 | (5,443 | ) | (6,635 | ) | (1,041 | ) | |||||||||
Net decrease in cash, cash equivalents and restricted cash | (293,960 | ) | (383,641 | ) | (623,157 | ) | (97,787 | ) | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 1,316,785 | 1,022,825 | 639,184 | 100,302 | ||||||||||||
Cash, cash equivalents and restricted cash at end of year | 1,022,825 | 639,184 | 16,027 | 2,515 | ||||||||||||
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of year | 998,674 | 628,806 | — | — | ||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of year | 24,151 | 10,378 | 16,027 | 2,515 | ||||||||||||
Supplemental disclosures of cash flow information of continuing operations: | ||||||||||||||||
Cash and cash equivalents | 14,043 | 5,134 | 16,027 | 2,515 | ||||||||||||
Restricted cash | 10,108 | 5,244 | 0 | 0 |
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
Principal repayments on loans | (75,924 | ) | (97,332 | ) | (62,599 | ) | (9,594 | ) | ||||||||
Repurchase of ordinary shares | (21,367 | ) | (48,047 | ) | — | — | ||||||||||
Proceeds from exercise of share options | 39,985 | 4,647 | 1,925 | 295 | ||||||||||||
Net cash used in from financing activities | (57,306 | ) | (140,732 | ) | (60,674 | ) | (9,299 | ) | ||||||||
Effects of exchange rate changes | 10,037 | 1,342 | (5,443 | ) | (835 | ) | ||||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash | 231,890 | (293,960 | ) | (383,641 | ) | (58,796 | ) | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | 1,084,895 | 1,316,785 | 1,022,825 | 156,755 | ||||||||||||
Cash, cash equivalents and restricted cash at end of year | 1,316,785 | 1,022,825 | 639,184 | 97,959 | ||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash and cash equivalents | 1,288,080 | 999,012 | 554,620 | 84,999 | ||||||||||||
Restricted cash | 28,705 | 23,813 | 84,564 | 12,960 | ||||||||||||
Income taxes paid | (55,326 | ) | (67,078 | ) | (13,945 | ) | (2,137 | ) | ||||||||
Interest expense paid | (26,707 | ) | (27,390 | ) | (16,117 | ) | (2,470 | ) | ||||||||
Non-cash investing activities: | ||||||||||||||||
Purchase of property and equipment included in accrued expenses and other current liabilities | (8,298 | ) | (10,771 | ) | (10,612 | ) | (1,626 | ) | ||||||||
Consideration for business acquisitions included in accrued expenses and other current liabilities | 2,000 | 18,075 | 1,750 | 268 |
1. | ORGANIZATION AND BASIS OF PRESENTATION |
1. | ORGANIZATION AND BASIS OF PRESENTATION (Continued) |
Name | Date of establishment | Place of establishment | Percentage of equity interest attributable to the Company | Principal activity | ||||||
Subsidiaries of the Company: | ||||||||||
RISE Education Cayman III Ltd (“Cayman III”) | July 29, 2013 | Cayman Islands | 100 | % | Investment holding | |||||
RISE Education Cayman I Ltd (“Cayman”) | June 19, 2013 | Cayman Islands | 100 | % | Investment holding | |||||
Tianjin” or “WFOE”) | of course materials, study tour service | |||||||||
1. | ORGANIZATION AND BASIS OF PRESENTATION (Continued) |
services | ||||||||
As at December 31, | ||||||||||||
2019 | 2020 | 2020 | ||||||||||
RMB | RMB | US$ | ||||||||||
Cash and cash equivalents | 742,402 | 339,018 | 51,957 | |||||||||
Restricted cas h | 13,705 | 4,369 | 670 | |||||||||
Accounts receivable, net | 852 | 1,679 | 257 | |||||||||
Inventories | 3,455 | 2,223 | 341 | |||||||||
Prepayments and other current assets | 36,983 | 72,413 | 11,098 | |||||||||
Amounts due from the Group’s subsidiaries | 14,916 | 4,577 | 701 | |||||||||
Total current assets | 812,313 | 424,279 | 65,024 | |||||||||
Property and equipment, net | 127,589 | 100,099 | 15,341 | |||||||||
Intangible assets, net | 19,031 | 14,511 | 2,224 | |||||||||
Long-term investment | 33,000 | 0 | 0 | |||||||||
Goodwill | 316,334 | 328,290 | 50,313 | |||||||||
Deferred tax assets, net | 7,567 | 26,812 | 4,109 | |||||||||
Other non-current assets | 47,945 | 54,688 | 8,381 | |||||||||
Operating lease right-of-use | 575,229 | 609,972 | 93,482 | |||||||||
Total non-current assets | 1,126,695 | 1,134,372 | 173,850 | |||||||||
Total assets | 1,939,008 | 1,558,651 | 238,874 | |||||||||
Accounts payable | 6,639 | 8,036 | 1,231 | |||||||||
Accrued expenses and other liabilities | 155,709 | 130,035 | 19,929 | |||||||||
Deferred revenue and customer advances | 690,273 | 552,911 | 84,737 | |||||||||
Income taxes payable | 7,391 | 1,884 | 289 | |||||||||
Amounts due to the Group’s subsidiaries | 119,593 | 2,257 | 346 | |||||||||
Current portion of operating lease liabilities | 153,248 | 189,172 | 28,992 | |||||||||
Total current liabilities | 1,132,853 | 884,295 | 135,524 | |||||||||
Deferred revenue and customer advances | 35,527 | 33,572 | 5,145 | |||||||||
Operating lease liabilities | 433,874 | 430,204 | 65,932 | |||||||||
Deferred tax liabilities, net | 5,431 | 3,560 | 546 | |||||||||
Other non-current liabilities | 37,995 | 31,756 | 4,866 | |||||||||
Total non-current liabilities | 512,827 | 499,092 | 76,489 | |||||||||
Total liabilities | 1,645,680 | 1,383,387 | 212,013 |
For the Years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Revenues | 1,175,618 | 1,443,373 | 918,696 | 140,796 | ||||||||||||
Net income/(loss) | 85,753 | 74,633 | (129,814 | ) | (19,895 | ) | ||||||||||
Net cash generated from/(used in) operating activities | 368,546 | (102,228 | ) | (364,015 | ) | (55,788 | ) | |||||||||
Net cash used in investing activities | (72,695 | ) | (102,734 | ) | (48,705 | ) | (7,464 | ) |
2. | SIGNIFICANT ACCOUNTING POLICIES |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Electronic equipment | 3 years | |||
Furniture | 3 | |||
Vehicles | 4 years | |||
Leasehold improvements | Shorter of the lease term or estimated useful life |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Category | Estimated Useful Life | |||
Courseware license | 15 years | |||
Franchise agreements | 2.5-3 years | |||
Student base | 3-5 years | |||
Trademarks | 10-15 years | |||
Purchased software | 3-5 years | |||
| ||||
The shorter of contractual terms or estimated useful lives of the assets | ||||
Teaching course materials | 10 years |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
(a) | Educational programs |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
(a) | Educational programs (Continued) |
(b) | Franchise revenues |
(c) | Other revenues |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
For the year ended December 31, 2020 | ||||||||
RMB | US$ | |||||||
Operating Lease Costs: | ||||||||
Fixed | 206,874 | 31,705 | ||||||
Short-term | 5,087 | 780 | ||||||
Total (1) | 211,961 | 32,485 |
For the year ended December 31, 2020 | ||||||||
RMB | US$ | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | 203,950 | 31,257 | ||||||
Right-of-use | 237,022 | 36,325 |
RMB | US$ | |||||||
2021 | 201,449 | 30,873 | ||||||
2022 | 181,642 | 27,838 | ||||||
2023 | 143,650 | 22,015 | ||||||
2024 | 90,348 | 13,846 | ||||||
2025 | 48,336 | 7,408 | ||||||
Thereafter | 59,223 | 9,076 | ||||||
Total lease payments | 724,648 | 111,056 | ||||||
Less: Imputed interest | 75,065 | 11,503 | ||||||
Present value of lease liabilities | 649,583 | 99,553 |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
3. | DISCONTINUED OPERATIONS |
Percentage | ||||||||
of equity | ||||||||
interest | ||||||||
attributable | ||||||||
Date of | Place of | to the | Principal | |||||
Name | establishment | establishment | company | activity | ||||
Subsidiaries of the Company: | ||||||||
Rise IP (Cayman) Limited (“Rise IP”) | 24-Jul-13 | Cayman Islands | 100% | Educational consulting | ||||
Edge Franchising Co., Limited (“Edge Franchising”) | 16-Mar-16 | Hong Kong | 100% | Educational consulting | ||||
Rise Education International Limited (“Rise HK”) | 24-Jun-13 | Hong Kong | 100% | Educational consulting | ||||
Edge Online Co., Limited | 1-Apr-18 | Hong Kong | 100% | Educational consulting | ||||
Rise (Tianjin) Education Information Consulting Co., Ltd. (“Rise Tianjin” or “WFOE”) | 12-Aug-13 | PRC | 100% | Educational consulting, Sale of course materials, study tour service | ||||
VIE: | ||||||||
Beijing Step Ahead Education Technology Development Co., Ltd. | 2-Jan-08 | PRC | 0 | Educational consulting | ||||
VIE’s subsidiaries and schools: | ||||||||
Beijing Haidian District Step Ahead Training School | 18-Sep-08 | PRC | 0 | Language education | ||||
Beijing Shijingshan District Step Ahead Training School | 14-Jul-09 | PRC | 0 | Language education | ||||
Beijing Changping District Step Ahead Training School | 3-Jul-09 | PRC | 0 | Language education | ||||
Beijing Chaoyang District Step Ahead Training School | 20-Jul-09 | PRC | 0 | Language education | ||||
Beijing Xicheng District RISE Immersion Subject English Training School | 5-Feb-10 | PRC | 0 | Language education | ||||
Beijing Dongcheng District RISE Immersion Subject English Training School | 30-Jul-10 | PRC | 0 | Language education | ||||
Beijing Tongzhou District RISE Immersion Subject English Training School | 19-Apr-11 | PRC | 0 | Language education | ||||
Beijing Daxing District RISE Immersion Subject English Training School | 31-Mar-13 | PRC | 0 | Language education | ||||
Beijing Fengtai District RISE Immersion Subject English Training School | 28-Feb-12 | PRC | 0 | Language education |
3. | DISCONTINUED OPERATIONS (Continued) |
Percentage | ||||||||
of equity | ||||||||
interest | ||||||||
attributable | ||||||||
Date of | Place of | to the | Principal | |||||
Name | establishment | establishment | company | activity | ||||
Beijing RISE Immersion Subject English Training School Co., Ltd. | 26-Oct-18 | PRC | 0 | Language education | ||||
Beijing Step Ahead Rise Education Technology Co., Ltd. | 11-Dec-19 | PRC | 0 | Language education | ||||
Beijing Huairou Ruida Education Training School | 19-Jan-18 | PRC | Language education | |||||
Shanghai Boyu Investment Management Co., Ltd. | 29-Jan-12 | PRC | 0 | Language education | ||||
Shanghai Riverdeep Education Information Consulting Co., Ltd. | 8-Mar-10 | PRC | Educational consulting services | |||||
Shanghai Ruiaidisi English Training School Co., Ltd. | 5-Aug-19 | PRC | 0 | Language education | ||||
Kunshan Ruiaidisi Education Technology Co., Ltd. | 30-Jul-19 | PRC | 0 | Language education | ||||
Guangzhou Ruisi Education Technology Development Co., Ltd. | 17-Aug-12 | PRC | 0 | Training services | ||||
Guangzhou Yuexiu District RISE Immersion Subject English Training School | 29-Apr-14 | PRC | 0 | Language education | ||||
Guangzhou Haizhu District RISE Immersion Subject English Training School-Chigang | 8-Dec-14 | PRC | 0 | Language education | ||||
Guangzhou Tianhe District RISE Immersion Subject English Training School | 11-Jul-17 | PRC | 0 | Language education | ||||
Guangzhou Liwan District Rise Education Training Center Co., Ltd. | 25-Nov-19 | PRC | 0 | Language education | ||||
Guangzhou Tianhe District Ruisi Education Consulting Co., Ltd. | 11-Jul-17 | PRC | 0 | Language education | ||||
Foshan Nanhai District Step Ahead Education Consulting Co., Ltd. | 21-Jan-20 | PRC | 0 | Language education | ||||
Shenzhen Mei Ruisi Education Management Co., Ltd. | 28-Feb-14 | PRC | 0 | Training services | ||||
Shenzhen Futian District Rise Training Center | 8-Jan-15 | PRC | 0 | Language education | ||||
Shenzhen Nanshan District Rise Training Center | 26-May-15 | PRC | 0 | Language education | ||||
Shenzhen Luohu District Rise Education Training Center | 3-Aug-17 | PRC | 0 | Language education | ||||
Shenzhen Longhua District Minzhi Rise Training Center | 27-May-20 | PRC | 0 | Language education |
3. | DISCONTINUED OPERATIONS (Continued) |
Percentage | ||||||||
of equity | ||||||||
interest | ||||||||
attributable | ||||||||
Date of | Place of | to the | Principal | |||||
Name | establishment | establishment | company | activity | ||||
Wuxi Rise Foreign Language Training Co., Ltd. | 5-Jun-13 | PRC | 0 | Training services | ||||
Wuxi Ruiying English Training Center Co., Ltd. | 10-Jun-19 | PRC | 0 | Language education | ||||
Ruisixing (Tianjin) Travel Services Co., Ltd. | 3-Jul-18 | PRC | 0 | Traveling services | ||||
Hebei Camphor Tree Information Technology Co., Ltd. | 5-Nov-15 | PRC | 0 | Investment holding | ||||
Shijiazhuang Forest Rock Education Technology Co., Ltd. | 28-Aug-18 | PRC | 0 | Investment holding | ||||
Shijiazhuang Xinhua District Oriental Red American Education Training School | 14-Nov-19 | PRC | 0 | Language education | ||||
Shijiazhuang Xinhua District Zhuoshuo Training School Co., Ltd. | 13-Dec-19 | PRC | 0 | Language education | ||||
Shijiazhuang Yuhua District Ai Ruisi Education Training School | 1-Feb-19 | PRC | 0 | Language education | ||||
Shijiazhuang Yuhua District Oriental Red Education Training School | 1-Feb-19 | PRC | 0 | Language education | ||||
Shijiazhuang Chang’an District Jinshuo Culture Education Training School Co., Ltd. | 1-Apr-19 | PRC | 0 | Language education | ||||
Shijiazhuang Qiaoxi District Deshuo Training School Co., Ltd. | 27-Aug-20 | PRC | 0 | Language education | ||||
Shijiazhuang Yuhua District Boshuo Training School Co., Ltd. | 2-Jan-20 | PRC | 0 | Language education |
3. | DISCONTINUED OPERATIONS (Continued) |
As at December 31, 2020 | ||||
RMB | ||||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | 549,486 | |||
Restricted cash | 79,320 | |||
Accounts receivable, net | 2,281 | |||
Amounts due from related parties | 552 | |||
Inventories | 7,814 | |||
Prepayments and other current assets | 90,047 | |||
Total current assets of discontinued operations | 729,500 | |||
Non-current assets: | ||||
Property and equipment, net | 107,537 | |||
Intangible assets, net | 185,647 | |||
Long-term investment | 0 | |||
Goodwill | 659,255 | |||
Deferred tax assets, net | 34,241 | |||
Other non-current assets | 55,853 | |||
Operating lease right-of-use | 639,304 | |||
Total non-current assets of discontinued operations | 1,681,837 | |||
Total assets belong to discontinued operations | 2,411,337 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Current liabilities | ||||
Accounts payable | 11,028 | |||
Accrued expenses and other current liabilities | 162,724 | |||
Deferred revenue and customer advances | 563,736 | |||
Income taxes payable | 5,556 | |||
Current portion of operating lease liabilities | 197,098 | |||
Total current liabilities of discontinued operations | 940,142 | |||
Non-current liabilitiesnon-current liabilities of the VIE without recourse to the Company amounting to RMB499,092 (US$76,489) as of December 31, 2020): | ||||
Deferred revenue and customer advances | 38,204 | |||
Operating lease liabilities | 452,485 | |||
Deferred tax liabilities, net | 24,011 | |||
Other non-current liabilities | 50,447 | |||
Total non-current liabilities of discontinued operations | 565,147 | |||
Total liabilities of discontinued operations | 1,505,289 |
3. | DISCONTINUED OPERATIONS (Continued) |
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Revenues | 1,529,447 | 958,467 | 890,386 | |||||||||
Cost of revenues | (694,693 | ) | (602,934 | ) | (596,412 | ) | ||||||
Gross profit | 834,754 | 355,533 | 293,974 | |||||||||
Operating expenses: | ||||||||||||
Selling and marketing | (307,339 | ) | (233,687 | ) | (191,816 | ) | ||||||
General and administrativ e | (289,351 | ) | (242,633 | ) | (417,381 | ) | ||||||
Research and development expenses | 0 | 0 | 0 | |||||||||
Total operating expenses | (596,690 | ) | (476,320 | ) | (609,197 | ) | ||||||
Operating income/(loss) | 238,064 | (120,787 | ) | (315,223 | ) | |||||||
Interest income | 17,872 | 15,078 | 8,640 | |||||||||
Interest expense | (34,093 | ) | (23,611 | ) | (16,823 | ) | ||||||
Foreign currency exchange gain/(loss) | (1,506 | ) | (187 | ) | 1,627 | |||||||
Other income, net | 10,115 | 26,961 | (78,908 | ) | ||||||||
Impairment loss of long-term investment | 0 | (37,000 | ) | 0 | ||||||||
Income/(loss) before income tax expense | 230,452 | (139,546 | ) | (400,687 | ) | |||||||
Loss on sale of discontinued operations | 0 | 0 | (97,777 | ) | ||||||||
Income tax (expense)/benefit | (70,697 | ) | 15,695 | (8,816 | ) | |||||||
Net income/(loss) from discontinued operations | 159,755 | (123,851 | ) | (507,280 | ) | |||||||
Net cash (used in) discontinued operating activities | (19,696 | ) | (187,127 | ) | (509,825 | ) | ||||||
Net cash (used in) discontinued investing activities | (114,716 | ) | (111,782 | ) | (53,535 | ) | ||||||
Net cash (used in) discontinued financing activities | 0 | 0 | (23,308 | ) |
4. | CONCENTRATION OF RISKS |
BUSINESS COMBINATION |
RMB | ||||
Purchase consideration | 44,061 | |||
Net assets acquired, excluding intangible assets and the related deferred tax liabilities | (83,813 | ) | ||
Intangible assets | 15,800 | |||
Student base | 15,800 | |||
Deferred tax liabilities | (4,742 | ) | ||
Non-controlling interest | (33,866 | ) | ||
Goodwill | 150,682 |
For the year ended December 31, 2019 | ||||||||
pro forma (unaudited) | As reported | |||||||
RMB | RMB | |||||||
Revenues | 1,555,302 | 1,529,447 | ||||||
Net income | 152,669 | 148,100 |
For the year ended December 31, 2019 | ||||||||
pro forma (unaudited) | As reported | |||||||
RMB | RMB | |||||||
Revenues | 1,555,302 | 1,529,447 | ||||||
Net income | 152,669 | 148,100 |
BUSINESS COMBINATION (Continued) |
For the year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Educational programs (a) | 1,102,254 | 1,332,372 | 872,877 | 133,774 | ||||||||||||
Franchise revenues (b) | 125,341 | 156,509 | 82,084 | 12,580 | ||||||||||||
Others | 44,293 | 40,566 | 3,506 | 537 | ||||||||||||
1,271,888 | 1,529,447 | 958,467 | 146,891 |
As at December 31, | ||||||||||||
2019 | 2020 | 2020 | ||||||||||
RMB | RMB | US$ | ||||||||||
Cost to obtain contract with customers-current | 1,091 | 1,092 | 167 | |||||||||
Cost to obtain contract with customers-non current | 3,026 | 2,091 | 320 | |||||||||
Contract liabilities-current | 702,737 | 550,658 | 84,392 | |||||||||
Contract liabilities-non current | 39,397 | 38,204 | 5,855 |
6. | PREPAYMENTS AND OTHER CURRENT ASSETS |
As at December 31, | ||||||||||||
2019 | 2020 | 2020 | ||||||||||
RMB | RMB | US$ | ||||||||||
Prepayments to suppliers | 15,799 | 22,200 | 3,402 | |||||||||
Prepaid rental expense | 5,748 | 3,658 | 561 | |||||||||
Staff advances | 1,586 | 723 | 111 | |||||||||
Deposits | 18,241 | 11,173 | 1,712 | |||||||||
Prepaid taxes and surcharges | 4,513 | 2,940 | 451 | |||||||||
Current portion of costs to obtain contracts with customers | 1,091 | 1,092 | 167 | |||||||||
Short-term loan to franchisees* | — | 48,000 | 7,356 | |||||||||
Other receivables | 4,442 | 4,770 | 731 | |||||||||
51,420 | 94,556 | 14,491 |
As at December 31, | ||||||||||||
2020 | 2021 | 2021 | �� | |||||||||
RMB | RMB | US$ | ||||||||||
Prepayments to suppliers | 4,365 | 14,311 | 2,246 | |||||||||
Deposits | 144 | 140 | 22 | |||||||||
4,509 | 14,451 | 2,268 |
7. |
As at December 31, | ||||||||||||
2019 | 2020 | 2020 | ||||||||||
RMB | RMB | US$ | ||||||||||
Electronic equipment | 60,737 | 64,698 | 9,915 | |||||||||
Furniture | 11,738 | 11,467 | 1,757 | |||||||||
Vehicles | 1,168 | 793 | 122 | |||||||||
Leasehold improvements | 277,042 | 293,061 | 44,914 | |||||||||
350,685 | 370,019 | 56,708 | ||||||||||
Less: accumulated depreciation | 213,345 | 262,482 | 40,227 | |||||||||
Property and equipment, net | 137,340 | 107,537 | 16,481 |
As at December 31, | ||||||||||||
2019 | 2020 | 2020 | ||||||||||
RMB | RMB | US$ | ||||||||||
Costs: | ||||||||||||
Courseware license | 214,087 | 200,657 | 30,752 | |||||||||
Franchise agreements | 62,158 | 62,437 | 9,569 | |||||||||
Student base | 116,828 | 119,111 | 18,255 | |||||||||
Trademarks | 50,338 | 47,182 | 7,231 | |||||||||
Purchased software | 26,514 | 29,517 | 4,523 | |||||||||
Teaching course materials | 21,115 | 29,882 | 4,580 | |||||||||
Licensed copyright | 2,840 | 2,840 | 435 | |||||||||
493,880 | 491,626 | 75,345 | ||||||||||
Accumulated amortization: | ||||||||||||
Courseware license | (89,094 | ) | (96,439 | ) | (14,780 | ) | ||||||
Franchise agreements | (61,221 | ) | (62,418 | ) | (9,566 | ) | ||||||
Student base | (99,101 | ) | (104,603 | ) | (16,031 | ) | ||||||
Trademarks | (20,572 | ) | (22,391 | ) | (3,432 | ) | ||||||
Purchased software | (7,644 | ) | (10,008 | ) | (1,533 | ) | ||||||
Teaching course materials | (5,902 | ) | (7,477 | ) | (1,146 | ) | ||||||
Licensed copyright | — | (1,420 | ) | (218 | ) | |||||||
(283,534 | ) | (304,756 | ) | (46,706 | ) | |||||||
Accumulated impairment: | ||||||||||||
Purchased software | — | (1,223 | ) | (187 | ) | |||||||
(1,223 | ) | (187 | ) | |||||||||
Net carrying amount | 210,346 | 185,647 | 28,452 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
As at December 31, | ||||||||||||
2019 | 2020 | 2020 | ||||||||||
RMB | RMB | US$ | ||||||||||
Payroll and welfare payable | 106,429 | 98,581 | 15,108 | |||||||||
Taxes payable | 17,584 | 14,476 | 2,219 | |||||||||
Interest payable | 672 | 503 | 77 | |||||||||
Accrued other operating expenses | 24,653 | 30,212 | 4,630 | |||||||||
Accrual for purchase of property and equipment | 10,771 | 10,612 | 1,626 | |||||||||
Payable for acquisition consideration (Note 4) | 18,075 | 1,750 | 268 | |||||||||
Others | 24,624 | 8,059 | 1,236 | |||||||||
202,808 | 164,193 | 25,164 |
As at December 31, | ||||||||||||
2020 | 2021 | 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
Accrued other operating expenses | 1,469 | 7,889 | 1,238 | |||||||||
Others | 0 | 736 | 115 | |||||||||
1,469 | 8,625 | 1,353 |
US$ | ||||
March | ||||
March 18, 2025 | 16,250 | |||
March 18, 2026 | 26,000 | |||
65,000 |
For the year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
PRC | 189,760 | 181,457 | (173,693 | ) | (26,620 | ) | ||||||||||
Non-PRC | 24,439 | 33,800 | 16,554 | 2,537 | ||||||||||||
214,199 | 215,257 | (157,139 | ) | (24,083 | ) |
For the years ended December 31, | ||||||||||||||||||||
Notes | 2019 | 2020 | 2021 | 2021 | ||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||
Bain Capital Education IV | (i | ) | 0 | 0 | 108,334 | 17,000 | ||||||||||||||
Bain Capital Education IV | 0 | 0 | 15,932 | 2,500 | ||||||||||||||||
Wuhan Xinsili Culture Development Co., Ltd. | (ii | ) | 0 | 0 | 0 | 0 |
(i) | The Company entered into a convertible loan deed with the Bain Capital Education IV (the “Shareholder”) on December 1, 2021 (the “Convertible Loan Deed”), pursuant to which the Shareholder will provide an interest-free convertible loan of US$17,000 to the Company for the period ended June 30, 2023, convertible into ordinary shares of the Company at US$0.35 per share, or US$0.70 per ADS. If the Company fails to pay any amount payable under this Deed on its due date, interest shall accrue on such amount from the due date at a rate two percent. The Group determined the appropriate accounting treatment of its convertible debt in accordance with the terms in relation to the conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The Group evaluated the equity components immaterial, and accounted for the convertible loan as a non-current liability as of December 31, 2021 |
For the year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Current income tax expense | (65,023 | ) | (64,222 | ) | (15,454 | ) | (2,368 | ) | ||||||||
Deferred income tax (expense)/benefit | (6,740 | ) | (6,475 | ) | 31,149 | 4,774 | ||||||||||
Income tax (expense)/benefit | (71,763 | ) | (70,697 | ) | 15,695 | 2,406 |
Year ended December 31, 2021 | ||||||||||
Loan granted | Principal | Interest Rate | Period | |||||||
Convertible loan | 108,334 | 0 | December 1, 2021 to June 30, 2023 |
(ii) | The CEO of the Company, Ms. Lihong Wang is the chairman of Wuhan Xinsili Culture Development Co., Ltd. As refer to Note 1, pursuant to the WFOE Purchase Agreement, the Company has agreed to, through Rise HK, sell all of the equity interests in WFOE to Wuhan Xinsili Culture Development Co., Ltd., in consideration of the Buyer SPV (i) paying to Rise HK a nominal consideration, and (ii) assuming all liabilities of WFOE and its subsidiaries. |
For the year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Income/(loss) before income tax | 214,199 | 215,257 | (157,139 | ) | (24,083 | ) | ||||||||||
Income tax (expense)/ benefit computed at the PRC statutory tax rate of 25 % | (53,550 | ) | (53,815 | ) | 39,285 | 6,021 | ||||||||||
Effect of different tax rates in different jurisdictions | 2,291 | (2,286 | ) | (13,281 | ) | (2,035 | ) | |||||||||
Effect of preferential tax rates | — | 8,444 | (332 | ) | (51 | ) | ||||||||||
Effect of tax rate change | — | (4,483 | ) | 2,942 | 451 | |||||||||||
Non-deductible expenses and others | (15,069 | ) | (19,438 | ) | (6,702 | ) | (1,027 | ) | ||||||||
Outside basis difference on investment in WFOE | (6,233 | ) | (9,872 | ) | 5,712 | 875 | ||||||||||
PRC royalty withholding tax | (6,080 | ) | (1,027 | ) | (2,405 | ) | (368 | ) | ||||||||
Changes in valuation allowance | 6,878 | 11,780 | (9,524 | ) | (1,460 | ) | ||||||||||
Income tax (expense)/benefit | (71,763 | ) | (70,697 | ) | 15,695 | 2,406 |
As at December 31, | ||||||||||||
2019 | 2020 | 2020 | ||||||||||
RMB | RMB | US$ | ||||||||||
Deferred tax assets: | ||||||||||||
Accrued expenses | 6,182 | 10,695 | 1,639 | |||||||||
Tax loss carry forward | 17,075 | 44,212 | 6,776 | |||||||||
Revenue recognition | 5,031 | 2,424 | 371 | |||||||||
Right-of-use | — | 161,642 | 24,773 | |||||||||
Others | 846 | 1,378 | 211 | |||||||||
Less: Valuation allowance | (16,850 | ) | (23,685 | ) | (3,629 | ) | ||||||
12,284 | 196,666 | 30,141 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Long-lived assets arising from acquisitions | 7,239 | 6,703 | 1,027 | |||||||||
Outside basis difference on investment in WFOE | 23,725 | 18,013 | 2,761 | |||||||||
Lease liabilities | — | 161,642 | 24,773 | |||||||||
Others | 1,410 | 78 | 12 | |||||||||
32,374 | 186,436 | 28,573 | ||||||||||
Presentation in the consolidated balance sheets: | ||||||||||||
Deferred tax assets, net | 11,026 | 34,241 | 5,248 | |||||||||
Deferred tax liabilities, net | (31,116 | ) | (24,011 | ) | (3,680 | ) | ||||||
Net deferred tax (liabilities)/assets | (20,090 | ) | 10,230 | 1,568 |
As at December 31, | ||||||||||||
2020 | 2021 | 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
Bain Capital Education IV | 181 | 177 | 28 |
As at December 31, | ||||||||||||
2020 | 2021 | 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
Bain Capital Education IV | 0 | 108,334 | 17,000 |
2019 | 2020 | 2020 | ||||||||||
RMB | RMB | US$ | ||||||||||
Balance at January 1, | 7,613 | 29,554 | 4,529 | |||||||||
Additions due to tax positions taken and business combination during the current year | 26,662 | 9,083 | 1,392 | |||||||||
Reversal based on tax positions related to prior years | (4,721 | ) | (5,809 | ) | (890 | ) | ||||||
Settlement | — | 0 | 0 | |||||||||
Foreign currency translation adjustments | — | 0 | 0 | |||||||||
Balance at December 31, | 29,554 | 32,828 | 5,031 |
For the year ended December 31, | ||||||||||||||||||||
Notes | 2018 | 2019 | 2020 | 2020 | ||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||
Loan to a related party: | ||||||||||||||||||||
Lionbridge | (i | ) | 150,000 | 100,000 | — | — | ||||||||||||||
Strategic partnership: | ||||||||||||||||||||
NYC | (ii | ) | — | — | 2,363 | 362 |
Year ended December 31, 2018 | ||||||||||||
Loan granted | Principal | Interest Rate | Period | |||||||||
Loan 1 | 150,000 | 7.0 | % | March 1, 2018 to November 30, 2018 | ||||||||
Year ended December 31, 2019 | ||||||||||||
Loan granted | Principal | Interest Rate | Period | |||||||||
Loan 1 | 100,000 | 7.2 | % | May 30, 2019 to November 30, 2019 | ||||||||
Year ended December 31, 2020 | ||||||||||||
Loan granted | Principal | Interest Rate | Period | |||||||||
Loan 1 | — | — | — |
As at December 31, | ||||||||||||
2019 | 2020 | 2020 | ||||||||||
RMB | RMB | US$ | ||||||||||
Bain Capital Education IV | 191 | 181 | 28 | |||||||||
NYC | — | 552 | 85 |
INCOME/(LOSS) PER SHARE |
For the year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Numerator: | ||||||||||||||||
Net income/(loss) attributable to RISE Education Cayman Ltd | 142,958 | 148,100 | (132,433 | ) | (20,296 | ) | ||||||||||
Denominator: | ||||||||||||||||
Weighted average number of ordinary shares outstanding-basic | 113,812,182 | 113,187,721 | 112,813,031 | 112,813,031 | ||||||||||||
Weighted average number of ordinary shares outstanding- diluted | 115,881,867 | 114,464,108 | 112,813,031 | 112,813,031 | ||||||||||||
Basic income/(loss) per share | 1.26 | 1.31 | (1.17 | ) | (0.18 | ) | ||||||||||
Diluted income/(loss) per share | 1.23 | 1.29 | (1.17 | ) | (0.18 | ) | ||||||||||
Basic income/(loss) per ADS | 2.51 | 2.62 | (2.35 | ) | (0.36 | ) | ||||||||||
Diluted income/(loss) per ADS | 2.47 | 2.59 | (2.35 | ) | (0.36 | ) |
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
RMB | RMB | RMB | USD | |||||||||||||
Numerator: | ||||||||||||||||
Net income/(loss) from continuing operations attributable to RISE Education Cayman Ltd | (15,195 | ) | (17,593 | ) | 249,096 | 39,088 | ||||||||||
Net income/(loss) from discontinued operations attributable to RISE Education Cayman Ltd | 163,295 | (114,840 | ) | (497,583 | ) | (78,081 | ) | |||||||||
Net income/(loss) attributable to RISE Education Cayman Ltd | 148,100 | (132,433 | ) | (248,487 | ) | (38,993 | ) | |||||||||
Denominator: | ||||||||||||||||
Weighted average number of ordinary shares outstanding-basic | 113,187,721 | 112,813,031 | 112,868,532 | 112,868,532 | ||||||||||||
Weighted average number of ordinary shares outstanding-diluted | 114,464,108 | 112,813,031 | 112,868,532 | 112,868,532 | ||||||||||||
Net income/(loss) per share - Basic: | ||||||||||||||||
Continuing operations | (0.13 | ) | (0.15 | ) | 2.21 | 0.35 | ||||||||||
Discontinued operations | 1.44 | (1.02 | ) | (4.41 | ) | (0.69 | ) | |||||||||
Total net income/(loss) per share - Basic | 1.31 | (1.17 | ) | (2.20 | ) | (0.34 | ) | |||||||||
Net income/(loss) per share - Diluted: | ||||||||||||||||
Continuing operations | (0.13 | ) | (0.15 | ) | 2.21 | 0.35 | ||||||||||
Discontinued operations | 1.42 | (1.02 | ) | (4.41 | ) | (0.69 | ) | |||||||||
Total net income/(loss) per share - Diluted | 1.29 | (1.17 | ) | (2.20 | ) | (0.34 | ) | |||||||||
Net income/(loss) per ADS - Basic: | ||||||||||||||||
Continuing operations | (0.26 | ) | (0.31 | ) | 4.42 | 0.70 | ||||||||||
Discontinued operations | 2.88 | (2.04 | ) | (8.82 | ) | (1.38 | ) | |||||||||
Total net income/(loss) per ADS - Basic | 2.62 | (2.35 | ) | (4.40 | ) | (0.68 | ) | |||||||||
Net income/(loss) per ADS - Diluted: | ||||||||||||||||
Continuing operations | (0.25 | ) | (0.31 | ) | 4.42 | 0.70 | ||||||||||
Discontinued operations | 2.84 | (2.04 | ) | (8.82 | ) | (1.38 | ) | |||||||||
Total net income/(loss) per ADS - Diluted | 2.59 | (2.35 | ) | (4.40 | ) | (0.68 | ) |
SHARE-BASED PAYMENTS (Continued) |
Number of options | Weighted - average exercise price | Weighted - Average grant date fair value | Weighted - average remaining contractual term | Aggregate intrinsic Value | Number of options | Weighted– average exercise price | Weighted- average grant date fair value | Weighted- average remaining contractual term | Aggregate intrinsic value | |||||||||||||||||||||||||||||||
US$ | Years | US$ | US$ | US$ | US$ | |||||||||||||||||||||||||||||||||||
Outstanding, December 31, 2019 | 2,067,719 | 1.44 | N/A | 5.52 | 4,260 | |||||||||||||||||||||||||||||||||||
Outstanding, December 31, 2020 | 1,861,474 | 1.44 | N/A | 4.61 | 2,988 | |||||||||||||||||||||||||||||||||||
Exercised | (195,915 | ) | 1.44 | N/A | N/A | 365 | (50,000 | ) | 1.44 | N/A | N/A | 16 | ||||||||||||||||||||||||||||
Forfeited/Cancelled | (10,330 | ) | 1.44 | N/A | (110,000 | ) | 1.44 | N/A | N/A | |||||||||||||||||||||||||||||||
Outstanding, December 31, 2020 | 1,861,474 | 1.44 | N/A | 4.61 | 2,988 | |||||||||||||||||||||||||||||||||||
Vested and expected to vest at December 31, 2020 | 1,861,474 | 1.44 | N/A | 4.61 | 2,988 | |||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2020 | 1,861,474 | 1.44 | N/A | 4.61 | 2,988 | |||||||||||||||||||||||||||||||||||
Outstanding, December 31, 2021 | 1,701,474 | 0.64 | N/A | 1.00 | 0 | |||||||||||||||||||||||||||||||||||
Vested and expected to vest at December 31, 2021 | 1,701,474 | 0.64 | N/A | 1.00 | 0 | |||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2021 | 1,701,474 | 0.64 | N/A | 1.00 | 0 |
SHARE-BASED PAYMENTS (Continued) |
Number of options | Weighted - average exercise price | Weighted - Average grant date fair value | Weighted - average remaining contractual term | Aggregate intrinsic Value | ||||||||||||||||
US$ | US$ | Years | US$ | |||||||||||||||||
Outstanding, December 31, 2019 | 4,600,000 | 4.25 | N/A | 9.26 | N/A | |||||||||||||||
Granted | 1,613,506 | 1.75 | 1.47 | |||||||||||||||||
Forfeited/Cancelled | (2,340,000 | ) | 3.71 | 2.26 | ||||||||||||||||
Outstanding, December 31, 2020 | 3,873,506 | 1.89 | 1.76 | 8.86 | 4,731 | |||||||||||||||
Vested and expected to vest at December 31, 2020 | 3,873,506 | 1.89 | 1.76 | 8.86 | 4,731 | |||||||||||||||
Exercisable at December 31, 2020 | 602,500 | 2.66 | 1.62 | 8.25 | 495 |
Number of options | Weighted– average exercise price | Weighted- average grant date fair value | Weighted- average remaining contractual term | Aggregate intrinsic value | ||||||||||||||||
US$ | US$ | US$ | ||||||||||||||||||
Outstanding, December 31, 2020 | 3,873,506 | 1.89 | 1.76 | 8.86 | 4,731 | |||||||||||||||
Granted | 850,000 | 1.75 | 0.63 | |||||||||||||||||
Exercised | (23,300 | ) | 1.75 | 3.09 | 14 | |||||||||||||||
Forfeited/Cancelled | (3,030,852 | ) | 1.93 | 1.52 | ||||||||||||||||
Outstanding, December 31, 2021 | 1,669,354 | 0.46 | 2.15 | 1.00 | 0 | |||||||||||||||
Vested and expected to vest at December 31, 2021 | 1,669,354 | 0.46 | 2.15 | 1.00 | 0 | |||||||||||||||
Exercisable at December 31, 2021 | 1,669,354 | 0.46 | 2.15 | 1.00 | 0 |
Number of options | Weighted - average exercise price | Weighted - Average grant date fair value | Weighted - average remaining contractual term | Aggregate intrinsic Value | ||||||||||||||||
US$ | Years | US$ | ||||||||||||||||||
Outstanding, December 31, 2019 | — | N/A | N/A | N/A | N/A | |||||||||||||||
Granted | 3,817,494 | 1.75 | 1.49 | |||||||||||||||||
Forfeited/Cancelled | (172,000 | ) | 1.75 | 1.52 | ||||||||||||||||
Outstanding, December 31, 2020 | 3,645,494 | 1.75 | 1.49 | 9.70 | 4,721 | |||||||||||||||
Vested and expected to vest at December 31, 2020 | 3,645,494 | 1.75 | 1.49 | 9.70 | 4,721 | |||||||||||||||
Exercisable at December 31, 2020 | — | N/A | N/A | N/A | N/A |
SHARE-BASED PAYMENTS (Continued) |
Number of options | Weighted– average exercise price | Weighted- average grant date fair value | Weighted- average remaining contractual term | Aggregate intrinsic value | ||||||||||||||||
US$ | US$ | US$ | ||||||||||||||||||
Outstanding, December 31, 2020 | 3,645,494 | 1.75 | 1.49 | 9.70 | 4,721 | |||||||||||||||
Exercised | (5,860 | ) | 1.75 | 1.59 | 3 | |||||||||||||||
Forfeited/Cancelled | (2,932,538 | ) | 1.75 | 1.47 | ||||||||||||||||
Outstanding, December 31, 2021 | 707,096 | 0.57 | 1.60 | 1.00 | 0 | |||||||||||||||
Vested and expected to vest at December 31, 2021 | 707,096 | 0.57 | 1.60 | 1.00 | 0 | |||||||||||||||
Exercisable at December 31, 2021 | 707,096 | 0.57 | 1.60 | 1.00 | 0 |
11. | SHARE-BASED PAYMENTS (Continued) |
2016 Equity Incentive Plan | ||||||||
For the years ended December 31, | ||||||||
2018 | 2019 | |||||||
Risk-free interest rate | 3.51%-3.82 | % | 2.41%-3.34 | % | ||||
Expected volatility range | 49.90%-53.60 | % | 53.70%-55.20 | % | ||||
Suboptimal exercise factor | 2.80 | 2.80 | ||||||
Fair value per ordinary share as at valuation date | US$5.28 ~US$ 7.06 | US$4.11 ~US$ 5.37 |
2017 Share Incentive Plan and Modified 2017 Share Incentive Plan | ||||||||
For the years ended December 31, | ||||||||
2019 | 2020 | |||||||
Risk-free interest rate | 3.29 | % | 1.65%~1.69 | % | ||||
Expected volatility range | 54.80 | % | 55.10%~55.80 | % | ||||
Suboptimal exercise factor | 2.80 | 2.80 | ||||||
Fair value per ordinary share as at valuation date | US$4.94 | US$1.99~ US $2.69 |
2016 Equity Incentive Plan | ||||||||||||
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Risk-free interest rate | 2.41%-3.34% | N/A | N/A | |||||||||
Expected volatility range | 53.70%-55.20% | N/A | N/A | |||||||||
Suboptimal exercise factor | 2.80 | N/A | N/A | |||||||||
Fair value per ordinary share as at valuation date | US$4.11~US$5.37 | N/A | N/A |
2017 Share Incentive Plan and Modified 2017 Share | ||||||||||||
Incentive Plan | ||||||||||||
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Risk-free interest rate | 3.29% | 1.65%~1.69% | 1.00%~2.30% | |||||||||
Expected volatility range | 54.80% | 55.10%~55.80% | 57.00%~114.50% | |||||||||
Suboptimal exercise factor | 2.80 | 2.80 | 2.80 | |||||||||
Fair value per ordinary share as at valuation date | US$4.94 | US$1.99~US$2.69 | US$0.25~US$1.60 |
For the year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Cost of revenues | 1,315 | 2,617 | 1,821 | 279 | ||||||||||||
Selling and marketing expenses | 4,229 | 1,016 | 1,497 | 229 | ||||||||||||
General and administrative expenses | 14,808 | 44,256 | 14,681 | 2,250 | ||||||||||||
Total | 20,352 | 47,889 | 17,999 | 2,758 |
2020 Share Incentive Plan and Modified 2020 Share | ||||||||||||
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Risk-free interest rate | N/A | 1.69%~1.86% | 1.00% | |||||||||
Expected volatility range | N/A | 55.10%~55.80% | 114.50% | |||||||||
Suboptimal exercise factor | N/A | 2.80 | 2.80 | |||||||||
Fair value per ordinary share as at valuation date | N/A | US$2.52~US$2.69 | US$0.25 |
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
RMB | RMB | RMB | USD | |||||||||||||
Cost of revenues | 2,617 | 1,821 | (895 | ) | (141 | ) | ||||||||||
Selling and marketing expenses | 1,016 | 1,497 | (1,124 | ) | (176 | ) | ||||||||||
General and administrative expenses | 44,256 | 14,681 | 11,556 | 1,813 | ||||||||||||
Total | 47,889 | 17,999 | 9,537 | 1,496 |
RMB | US$ | |||||||
Construction of leasehold improvements | 784 | 120 |
Foreign currency translation adjustments | ||||
RMB | ||||
Balance as of January 1, 2019 | 42,459 | |||
Foreign currency translation adjustments, net of tax of nil | (1,542 | ) | ||
Balance as of December 31, 2019 | 40,917 | |||
Foreign currency translation adjustments, net of tax of nil | (1,275 | ) | ||
Balance as of December 31, 2020 | 39,642 | |||
Foreign currency translation adjustments, net of tax of nil | (6,635 | ) | ||
Balance as of December 31, 2021 | 33,007 | |||
US$ | ||||
Balance as of December 31, 2021 | 5,181 |
Delisting |
As at December 31, | ||||||||||||
2019 | 2020 | 2020 | ||||||||||
RMB | RMB | US$ | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 13,979 | 58 | 9 | |||||||||
Due from subsidiaries of the Group | 52,910 | 64,503 | 9,886 | |||||||||
Prepayments and other current assets | 8,648 | 13,723 | 2,103 | |||||||||
Total current assets | 75,537 | 78,284 | 11,998 | |||||||||
Non-current assets: | ||||||||||||
Investment in subsidiaries | 636,322 | 528,049 | 80,927 | |||||||||
Total non-current assets | 636,322 | 528,049 | 80,927 | |||||||||
Total assets | 711,859 | 606,333 | 92,925 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accrued expenses and other liabilities | 3,714 | 4,290 | 658 | |||||||||
Amount due to a subsidiary of the Group | 99,249 | 106,931 | 16,388 | |||||||||
Total current liabilities | 102,963 | 111,221 | 17,046 | |||||||||
Total liabilities | 102,963 | 111,221 | 17,046 | |||||||||
Shareholders’ equity: | ||||||||||||
Ordinary shares (US$0.01 par value; 200,000,000 and 200,000,000 shares authorized, 112,755,320 and 112,951,232 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 6,946 | 6,959 | 1,067 | |||||||||
Additional paid-in capital | 583,262 | 603,173 | 92,440 | |||||||||
Treasury shares, at cost | — | 0 | 0 | |||||||||
Accumulated deficit | (22,229 | ) | (154,662 | ) | (23,703 | ) | ||||||
Accumulated other comprehensive income | 40,917 | 39,642 | 6,075 | |||||||||
Total shareholders’ equity | 608,896 | 495,112 | 75,879 | |||||||||
Total liabilities and shareholders’ equity | 711,859 | 606,333 | 92,925 |
For the year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
General and administrative expenses | (8,400 | ) | (5,600 | ) | (8,537 | ) | (1,308 | ) | ||||||||
Operating loss | (8,400 | ) | (5,600 | ) | (8,537 | ) | (1,308 | ) | ||||||||
Equity in profit/(loss) of subsidiaries and the VIEs | 138,698 | 153,668 | (123,902 | ) | (18,989 | ) | ||||||||||
Interest income | 22 | 32 | 6 | 1 | ||||||||||||
Others, net | 12,638 | — | — | — | ||||||||||||
Income/(Loss) before income tax expense | 142,958 | 148,100 | (132,433 | ) | (20,296 | ) | ||||||||||
Income tax expense | 0 | 0 | 0 | 0 | ||||||||||||
Net income/(loss) | 142,958 | 148,100 | (132,433 | ) | (20,296 | ) | ||||||||||
Other comprehensive income/(loss), net of tax of nil | ||||||||||||||||
Foreign currency translation adjustments | 2,419 | (1,542 | ) | (1,275 | ) | (196 | ) | |||||||||
Other comprehensive income/(loss) | 2,419 | (1,542 | ) | (1,275 | ) | (196 | ) | |||||||||
Comprehensive income/(loss) | 145,377 | 146,558 | (133,708 | ) | (20,492 | ) |
For the year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Net cash used in operating activities | — | — | (13,050 | ) | (2,000 | ) | ||||||||||
Net cash generated from investing activities | 13,774 | 32 | 7 | 1 | ||||||||||||
Net cash used in financing activities | — | 0 | 0 | 0 | ||||||||||||
Effect of exchange rate changes | — | 173 | (878 | ) | — | |||||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash | 13,774 | 205 | (13,921 | ) | (1,999 | ) | ||||||||||
Cash, cash equivalents and restricted cash at beginning of year | — | 13,774 | 13,979 | 2,008 | ||||||||||||
Cash, cash equivalents and restricted cash at end of year | 13,774 | 13,979 | 58 | 9 |