Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2021 | |
Document Information [Line Items] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | Ambow Education Holding Ltd. |
Entity Central Index Key | 0001494558 |
Current Fiscal Year End Date | --12-31 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 26,086 | ¥ 168,424 | ¥ 118,821 |
Restricted cash | 256 | 1,650 | 824 |
Short-term investments, available for sale | 13,266 | 85,652 | 117,854 |
Short-term investments, held to maturity | 310 | 2,000 | 45,000 |
Accounts receivable, net | 3,289 | 21,234 | 20,972 |
Amounts due from related parties | 501 | 3,235 | 3,024 |
Prepaid and other current assets, net | 18,858 | 121,757 | 117,634 |
Total current assets | 62,566 | 403,952 | 424,129 |
Non-current assets: | |||
Property and equipment, net | 21,989 | 141,972 | 144,492 |
Land use rights, net | 262 | 1,693 | 1,715 |
Intangible assets, net | 8,403 | 54,252 | 54,808 |
Goodwill | 3,982 | 25,710 | 25,710 |
Deferred tax assets, net | 883 | 5,704 | 6,338 |
Operating lease right-of-use asset | 35,522 | 229,353 | 247,608 |
Finance lease right-of-use asset | 860 | 5,550 | 5,850 |
Other non-current assets | 21,805 | 140,786 | 139,067 |
Total non-current assets | 93,706 | 605,020 | 625,588 |
Total assets | 156,272 | 1,008,972 | 1,049,717 |
Current liabilities: | |||
Short-term borrowings (including consolidated VIE amount without recourse to the Company of RMB 10,000 and RMB 10,000 as of June 30, 2021 and December 31, 2020, respectively) | 3,020 | 19,498 | 10,000 |
Deferred revenue (including consolidated VIE amount without recourse to the Company of RMB 132,947 and RMB 158,735 as of June 30, 2021 and December 31, 2020, respectively) | 21,106 | 136,274 | 163,699 |
Accounts payable (including consolidated VIE amount without recourse to the Company of RMB 10,346 and RMB 10,682 as of June 30, 2021 and December 31, 2020, respectively) | 3,320 | 21,425 | 19,423 |
Accrued and other liabilities (including consolidated VIE amount without recourse to the Company of RMB 168,420 and RMB 165,706 as of June 30, 2021 and December 31, 2020, respectively) | 31,473 | 203,207 | 209,590 |
Income taxes payable, current (including consolidated VIE amount without recourse to the Company of RMB 180,666 and RMB 180,070 as of June 30, 2021 and December 31, 2020, respectively) | 28,669 | 185,105 | 184,638 |
Amounts due to related parties (including consolidated VIE amount without recourse to the Company of RMB 2,771 and RMB 2,543 as of June 30, 2021 and December 31, 2020, respectively) | 429 | 2,771 | 2,543 |
Operating lease liability, current (including consolidated VIE amount without recourse to the Company of RMB 24,014 and RMB 27,962 as of June 30, 2021 and December 31, 2020, respectively) | 7,620 | 49,198 | 53,702 |
Total current liabilities | 95,637 | 617,478 | 643,595 |
Non-current liabilities: | |||
Long-term borrowing (including consolidated VIE amount without recourse to the Company of RMB nil and RMB nil as of June 30, 2021 and December 31, 2020, respectively) | 9,594 | ||
Other non-current liabilities (including consolidated VIE amount without recourse to the Company of RMB 95 and RMB 188 as of June 30, 2021 and December 31, 2020, respectively) | 47 | 304 | 292 |
Income taxes payable, non-current (including consolidated VIE amount without recourse to the Company of RMB 34,322 and RMB 34,763 as of June 30, 2021 and December 31, 2020, respectively) | 5,316 | 34,322 | 34,763 |
Operating lease liability, non-current (including consolidated VIE amount without recourse to the Company of RMB 71,459 and RMB 74,725 as of June 30, 2021 and December 31, 2020, respectively) | 32,196 | 207,877 | 220,319 |
Total non-current liabilities | 37,559 | 242,503 | 264,968 |
Total liabilities | 133,196 | 859,981 | 908,563 |
EQUITY | |||
Preferred shares (US$ 0.003 par value;1,666,667 shares authorized, nil issued and outstanding as of June 30, 2021 and December 31, 2020) | |||
Additional paid-in capital | 549,130 | 3,545,512 | 3,545,073 |
Statutory reserve | 652 | 4,210 | 4,210 |
Accumulated deficit | (528,302) | (3,411,035) | (3,419,146) |
Accumulated other comprehensive income | 1,844 | 11,907 | 12,101 |
Total Ambow Education Holding Ltd.'s equity | 23,461 | 151,478 | 143,122 |
Non-controlling interests | (385) | (2,487) | (1,968) |
Total equity | 23,076 | 148,991 | 141,154 |
Total liabilities and equity | 156,272 | 1,008,972 | 1,049,717 |
Class A Ordinary Shares [Member] | |||
EQUITY | |||
Ordinary shares | 123 | 794 | 794 |
Total equity | 794 | 794 | |
Class C Ordinary Shares [Member] | |||
EQUITY | |||
Ordinary shares | $ 14 | 90 | 90 |
Total equity | ¥ 90 | ¥ 90 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥)shares | Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020$ / shares |
Short-term borrowings | ¥ 19,498 | $ 3,020 | ¥ 10,000 | |
Deferred revenue | 136,274 | 21,106 | 163,699 | |
Accounts payable | 21,425 | 3,320 | 19,423 | |
Accrued and other liabilities | 203,207 | 31,473 | 209,590 | |
Income taxes payable, current | 185,105 | 28,669 | 184,638 | |
Amounts due to related parties | 2,771 | 429 | 2,543 | |
Operating lease liability, current | 49,198 | 7,620 | 53,702 | |
Long-term borrowing | 9,594 | |||
Other non-current liabilities | 304 | 47 | 292 | |
Income taxes payable, non-current | 34,322 | 5,316 | 34,763 | |
Operating lease liability, non-current | ¥ 207,877 | $ 32,196 | ¥ 220,319 | |
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.003 | $ 0.003 | ||
Preferred shares, shares authorized | shares | 1,666,667 | 1,666,667 | 1,666,667 | |
Preferred shares, shares issued | shares | 0 | 0 | 0 | |
Preferred shares, shares outstanding | shares | 0 | 0 | 0 | |
Class A Ordinary Shares [Member] | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.003 | 0.003 | ||
Ordinary shares, shares authorized | shares | 66,666,667 | 66,666,667 | 66,666,667 | |
Ordinary shares, shares issued | shares | 41,948,276 | 41,948,276 | 41,923,276 | |
Ordinary shares, shares outstanding | shares | 41,948,276 | 41,948,276 | 41,923,276 | |
Class C Ordinary Shares [Member] | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.003 | $ 0.003 | ||
Ordinary shares, shares authorized | shares | 8,333,333 | 8,333,333 | 8,333,333 | |
Ordinary shares, shares issued | shares | 4,708,415 | 4,708,415 | 4,708,415 | |
Ordinary shares, shares outstanding | shares | 4,708,415 | 4,708,415 | 4,708,415 | |
Variable interest entities and subsidiaries of VIEs | ||||
Short-term borrowings | ¥ 10,000 | ¥ 10,000 | ||
Deferred revenue | 132,947 | 158,735 | ||
Accounts payable | 10,346 | 10,682 | ||
Accrued and other liabilities | 168,420 | 165,706 | ||
Income taxes payable, current | 180,666 | 180,070 | ||
Amounts due to related parties | 2,771 | 2,543 | ||
Operating lease liability, current | 24,014 | 27,962 | ||
Long-term borrowing | 0 | 0 | ||
Other non-current liabilities | 95 | 188 | ||
Income taxes payable, non-current | 34,322 | 34,763 | ||
Operating lease liability, non-current | ¥ 71,459 | ¥ 74,725 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | |
NET REVENUES | ||||||
Total net revenues | $ 26,678 | ¥ 172,251 | ¥ 155,463 | $ 46,751 | ¥ 301,856 | ¥ 245,742 |
COST OF REVENUES | ||||||
Total cost of revenues | (14,919) | (96,322) | (95,051) | (28,081) | (181,305) | (173,782) |
GROSS PROFIT | 11,759 | 75,929 | 60,412 | 18,670 | 120,551 | 71,960 |
Operating expenses: | ||||||
Selling and marketing | (2,079) | (13,422) | (13,657) | (3,782) | (24,422) | (24,206) |
General and administrative | (5,949) | (38,412) | (45,042) | (13,220) | (85,357) | (84,243) |
Research and development | (582) | (3,757) | (1,567) | (868) | (5,602) | (2,698) |
Total operating expenses | (8,610) | (55,591) | (60,266) | (17,870) | (115,381) | (111,147) |
OPERATING INCOME (LOSS) | 3,149 | 20,338 | 146 | 800 | 5,170 | (39,187) |
OTHER INCOME (EXPENSES) | ||||||
Interest income | 302 | 1,948 | 2,145 | 621 | 4,008 | 4,135 |
Foreign exchange gain (loss), net | (2) | (12) | 9 | 31 | 203 | 35 |
Other (loss) income, net | (37) | (240) | 146 | (183) | (1,180) | 1,552 |
Gain from deregistration of subsidiaries | 183 | 1,181 | 3,897 | 205 | 1,325 | 3,897 |
Gain on the bargain purchase | ¥ | 40,273 | |||||
Gain on sale of investment available for sale | 73 | 474 | 530 | 189 | 1,221 | 1,056 |
Total other income | 519 | 3,351 | 6,727 | 863 | 5,577 | 50,948 |
INCOME BEFORE INCOME TAX AND NON-CONTROLLING INTEREST | 3,668 | 23,689 | 6,873 | 1,663 | 10,747 | 11,761 |
Income tax expense | (236) | (1,526) | (2,362) | (489) | (3,155) | (1,623) |
NET INCOME | 3,432 | 22,163 | 4,511 | 1,174 | 7,592 | 10,138 |
Less: Net loss attributable to non-controlling interest | (43) | (277) | (296) | (80) | (519) | (708) |
NET INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS | 3,475 | 22,440 | 4,807 | 1,254 | 8,111 | 10,846 |
NET INCOME | 3,432 | 22,163 | 4,511 | 1,174 | 7,592 | 10,138 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | ||||||
Foreign currency translation adjustments | (82) | (532) | 7,895 | (65) | (417) | 8,328 |
Unrealized gains on short-term investments | ||||||
Unrealized holding gains arising during period | 76 | 493 | 499 | 166 | 1,075 | 940 |
Less: reclassification adjustment for gains included in net income | 48 | 308 | 381 | 132 | 852 | 668 |
Other comprehensive (loss) income | (54) | (347) | 8,013 | (31) | (194) | 8,600 |
TOTAL COMPREHENSIVE INCOME | $ 3,378 | ¥ 21,816 | ¥ 12,524 | $ 1,143 | ¥ 7,398 | ¥ 18,738 |
Net income per share - basic and diluted | (per share) | $ 0.07 | ¥ 0.48 | ¥ 0.11 | $ 0.03 | ¥ 0.17 | ¥ 0.25 |
Weighted average shares used in calculating basic and diluted net income per share | shares | 46,648,495 | 46,648,495 | 43,583,418 | 46,642,280 | 46,642,280 | 43,577,168 |
Educational program and services | ||||||
NET REVENUES | ||||||
Total net revenues | $ 26,576 | ¥ 171,590 | ¥ 155,392 | $ 46,635 | ¥ 301,104 | ¥ 245,659 |
COST OF REVENUES | ||||||
Total cost of revenues | (14,797) | (95,536) | (94,891) | (27,782) | (179,375) | (172,324) |
Intelligent program and services | ||||||
NET REVENUES | ||||||
Total net revenues | 102 | 661 | 71 | 116 | 752 | 83 |
COST OF REVENUES | ||||||
Total cost of revenues | $ (122) | ¥ (786) | ¥ (160) | $ (299) | ¥ (1,930) | ¥ (1,458) |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ¥ in Thousands | Class A Ordinary Shares [Member]USD ($)shares | Class A Ordinary Shares [Member]CNY (¥)shares | Class C Ordinary Shares [Member]CNY (¥)shares | Additional paid-in capital [Member]CNY (¥) | Statutory reserves [Member]CNY (¥) | Accumulated deficit [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Accumulated deficit [Member]CNY (¥) | Accumulated other comprehensive income [Member]CNY (¥) | Non-controlling interest [Member]CNY (¥) | Cumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | USD ($) | CNY (¥) |
Balance at Dec. 31, 2019 | ¥ 730 | ¥ 90 | ¥ 3,508,745 | ¥ 20,185 | ¥ (3,371,815) | ¥ 6,341 | ¥ (680) | ¥ 163,596 | ||||
Balance (in shares) at Dec. 31, 2019 | shares | 38,858,199 | 38,858,199 | 4,708,415 | |||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||
Share-based compensation | 238 | 238 | ||||||||||
Issuance of ordinary shares for restricted stock award | $ 12,500 | ¥ 0 | 0 | |||||||||
Foreign currency translation adjustment | 433 | 433 | ||||||||||
Unrealized gain on investment, net of income taxes | 154 | 154 | ||||||||||
Impact on adoption of ASC 326 | ¥ (594) | ¥ (594) | ||||||||||
Net income/(loss) | 6,039 | (412) | 5,627 | |||||||||
Balance at Mar. 31, 2020 | ¥ 730 | ¥ 90 | 3,508,983 | 20,185 | (3,366,370) | 6,928 | (1,092) | 169,454 | ||||
Balance (in shares) at Mar. 31, 2020 | shares | 38,870,699 | 38,870,699 | 4,708,415 | |||||||||
Balance at Dec. 31, 2019 | ¥ 730 | ¥ 90 | 3,508,745 | 20,185 | (3,371,815) | 6,341 | (680) | 163,596 | ||||
Balance (in shares) at Dec. 31, 2019 | shares | 38,858,199 | 38,858,199 | 4,708,415 | |||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||
Net income/(loss) | 10,138 | |||||||||||
Balance at Jun. 30, 2020 | ¥ 731 | ¥ 90 | 3,509,224 | 4,712 | (3,346,090) | 14,941 | (1,388) | 182,220 | ||||
Balance (in shares) at Jun. 30, 2020 | shares | 38,883,199 | 38,883,199 | 4,708,415 | |||||||||
Balance at Mar. 31, 2020 | ¥ 730 | ¥ 90 | 3,508,983 | 20,185 | (3,366,370) | 6,928 | (1,092) | 169,454 | ||||
Balance (in shares) at Mar. 31, 2020 | shares | 38,870,699 | 38,870,699 | 4,708,415 | |||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||
Share-based compensation | 242 | 242 | ||||||||||
Issuance of ordinary shares for restricted stock award | ¥ 1 | (1) | ||||||||||
Issuance of ordinary shares for restricted stock award (in shares) | shares | 12,500 | 12,500 | ||||||||||
Foreign currency translation adjustment | 7,895 | 7,895 | ||||||||||
Unrealized gain on investment, net of income taxes | 118 | 118 | ||||||||||
Deregistration of subsidiary | (15,473) | 15,473 | ||||||||||
Net income/(loss) | 4,807 | (296) | 4,511 | |||||||||
Balance at Jun. 30, 2020 | ¥ 731 | ¥ 90 | 3,509,224 | 4,712 | (3,346,090) | 14,941 | (1,388) | 182,220 | ||||
Balance (in shares) at Jun. 30, 2020 | shares | 38,883,199 | 38,883,199 | 4,708,415 | |||||||||
Balance at Dec. 31, 2020 | ¥ 794 | ¥ 90 | 3,545,073 | 4,210 | (3,419,146) | 12,101 | (1,968) | 141,154 | ||||
Balance (in shares) at Dec. 31, 2020 | shares | 41,923,276 | 41,923,276 | 4,708,415 | |||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||
Share-based compensation | 219 | 219 | ||||||||||
Issuance of ordinary shares for restricted stock award | ¥ 0 | 0 | ||||||||||
Issuance of ordinary shares for restricted stock award (in shares) | shares | 12,500 | 12,500 | ||||||||||
Foreign currency translation adjustment | 115 | 115 | ||||||||||
Unrealized gain on investment, net of income taxes | 38 | 38 | ||||||||||
Net income/(loss) | (14,329) | (242) | (14,571) | |||||||||
Balance at Mar. 31, 2021 | ¥ 794 | ¥ 90 | 3,545,292 | 4,210 | (3,433,475) | 12,254 | (2,210) | 126,955 | ||||
Balance (in shares) at Mar. 31, 2021 | shares | 41,935,776 | 41,935,776 | 4,708,415 | |||||||||
Balance at Dec. 31, 2020 | ¥ 794 | ¥ 90 | 3,545,073 | 4,210 | (3,419,146) | 12,101 | (1,968) | 141,154 | ||||
Balance (in shares) at Dec. 31, 2020 | shares | 41,923,276 | 41,923,276 | 4,708,415 | |||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||
Net income/(loss) | $ 1,174,000 | 7,592 | ||||||||||
Balance at Jun. 30, 2021 | ¥ 794 | ¥ 90 | 3,545,512 | 4,210 | (3,411,035) | 11,907 | (2,487) | 23,076,000 | 148,991 | |||
Balance (in shares) at Jun. 30, 2021 | shares | 41,948,276 | 41,948,276 | 4,708,415 | |||||||||
Balance at Mar. 31, 2021 | ¥ 794 | ¥ 90 | 3,545,292 | 4,210 | (3,433,475) | 12,254 | (2,210) | 126,955 | ||||
Balance (in shares) at Mar. 31, 2021 | shares | 41,935,776 | 41,935,776 | 4,708,415 | |||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||
Share-based compensation | 220 | 220 | ||||||||||
Issuance of ordinary shares for restricted stock award | ¥ 0 | 0 | ||||||||||
Issuance of ordinary shares for restricted stock award (in shares) | shares | 12,500 | 12,500 | ||||||||||
Foreign currency translation adjustment | (532) | (532) | ||||||||||
Unrealized gain on investment, net of income taxes | 185 | 185 | ||||||||||
Net income/(loss) | 22,440 | (277) | 3,432,000 | 22,163 | ||||||||
Balance at Jun. 30, 2021 | ¥ 794 | ¥ 90 | ¥ 3,545,512 | ¥ 4,210 | ¥ (3,411,035) | ¥ 11,907 | ¥ (2,487) | $ 23,076,000 | ¥ 148,991 | |||
Balance (in shares) at Jun. 30, 2021 | shares | 41,948,276 | 41,948,276 | 4,708,415 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | |
Cash flows from operating activities | |||
Net cash used in operating activities | $ (2,997) | ¥ (19,339) | ¥ (61,989) |
Cash flows from investing activities | |||
Purchase of available-for-sale investments | (10,532) | (68,000) | (86,000) |
Proceeds from available-for-sale investments | 15,565 | 100,500 | 65,000 |
Purchase of held-to-maturity investments | (18,741) | (121,000) | (25,000) |
Maturity and proceeds from held-to-maturity investments | 25,400 | 164,000 | 41,000 |
Purchase of property and equipment | (153) | (990) | (2,213) |
Prepayment for leasehold improvement | (674) | (4,353) | (15) |
Purchase of intangible assets | (47) | (306) | |
Purchase of subsidiary, net of cash acquired | 37,622 | ||
Purchase of other non-current assets | (2,883) | ||
Cash balances at disposed subsidiaries | (2) | (12) | (9) |
Loan to third party | (19,900) | ||
Net cash provided by investing activities | 10,816 | 69,839 | 7,602 |
Cash flows from financing activities | |||
Proceeds from long-term borrowing | 10,409 | ||
Net cash provided by financing activities | 10,409 | ||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (11) | (71) | (1,007) |
Net change in cash, cash equivalents and restricted cash | 7,808 | 50,429 | (44,985) |
Cash, cash equivalents and restricted cash at beginning of periods | 18,534 | 119,645 | 157,600 |
Cash, cash equivalents and restricted cash at end of periods | 26,342 | 170,074 | 112,615 |
Supplemental disclosure of cash flow information | |||
Income tax paid | (193) | (1,249) | (106) |
Interest paid | (34) | (220) | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Derecognition of assets other than cash of disposed subsidiaries/deregistered subsidiaries | 161 | 1,041 | 217 |
Derecognition of liabilities of disposed subsidiaries/deregistered subsidiaries, net of recognized amount due to the disposed subsidiaries/deregistered subsidiaries | 368 | 2,378 | 9,328 |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 2,041 | ¥ 13,175 | ¥ 98,845 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 6 Months Ended |
Jun. 30, 2021 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES a. Background The accompanying condensed consolidated financial statements include the financial statements of Ambow Education Holding Ltd. (the “Company”), its subsidiaries and variable interest entities (“VIEs”) for which the Company or its subsidiaries are the primary beneficiaries. The Company, its subsidiaries and VIEs are hereinafter collectively referred to as the “Group”. In the six months ended June 30, 2021, the Company established a few new subsidiaries and branch companies, and completed deregistration procedures of certain subsidiaries and branch companies in China. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jun. 30, 2021 | |
GOING CONCERN | |
GOING CONCERN | 2. GOING CONCERN Liquidity and Capital Resources As of June 30, 2021, the Group’s consolidated current liabilities exceeded its consolidated current assets by RMB 213,526. With certain non-cash payment adjustments excluded from the current liabilities, the gap between the current liabilities and current assets has been significantly reduced. The Group’s consolidated net assets were amounting to RMB 148,991 as of June 30, 2021. There are no liquidity concerns noted in the next 12 months. The Group’s principal sources of liquidity have been cash provided by operating activities. The Group had net cash used in operating activities of RMB 61,989 and RMB 19,339 for the six months ended June 30, 2020 and 2021, respectively. The net cash outflow for both periods were mainly due to seasonal fluctuations. As of June 30, 2021, the Group had RMB 168,424 in unrestricted cash and cash equivalents, RMB 85,652 in short-term investments, available for sale, and RMB 2,000 in short-term investments, held to maturity. The Group's operating results for future periods are subject to numerous uncertainties and it is uncertain if the Group will be able to achieve a net income position for the foreseeable future. If management is not able to increase revenue and/or manage cost and operating expenses in line with revenue forecasts, the Company may not be able to achieve profitability. From the beginning of 2021, all our K-12 schools, tutoring centers and training offices in China have been in full business operation. Teachers and students of Bay State College and NewSchool in U.S. returned to campus from September 2021. Yet the pandemic continues to be fluid and uncertain, making it difficult to forecast the final impact it could have on our future operations. There were certain regulatory policy updates in the past period of 2021. On April 7, 2021, Chinese regulatory authorities promulgated an amendment to the Implementation Rules of the Law for Promoting Private Education, which has been effective since September 1, 2021 (the “Implementation Rules”). The Implementation Rules stipulated, among other provisions, that (1) sponsors of private schools may choose to establish schools as either non-profit or for-profit schools, but nine-year compulsory education schools cannot be operated as for-profit schools; (2) foreign-invested enterprises established in China and social organizations whose actual controllers are foreign parties shall not sponsor, participate in or actually control private schools that provide compulsory education; (3) group-based education organizations shall not control non-profit private schools through mergers and acquisitions, franchise agreements and contractual arrangements; and (4) related party transactions entered into by private schools shall be open, fair and just, and shall not harm national interests, school interests, or student or teacher interests. The Group is assessing the impact of the Implementation Rules and formulating different scenarios as compliance measures. There are still significant uncertainties with respect to those scenarios. The Group, however, does not expect any related liquidity concerns in the next 12 months. On July 24, 2021, Chinese regulatory authorities issued a set of guidelines aiming to ease the burden of excessive homework and after-school tutoring on students receiving an elementary school or junior high school education (the “Guidelines”). The Group does not expect its operations to be materially affected by the Guidelines. Conclusion The Group believes that available cash and cash equivalents, short-term investments, available for sale and short-term investments, held to maturity, cash provided by operating activities, together with cash available from the activities mentioned above, should enable the Group to meet presently anticipated cash needs for at least the next 12 months after the date that the financial statements are issued and the Group has prepared the consolidated financial statements on a going concern basis. However, the Group continues to have ongoing obligations and it expects that it will require additional capital in order to execute its longer-term business plan. If the Group encounters unforeseen circumstances that place constraints on its capital resources, management will be required to take various measures to conserve liquidity, which could include, but not necessarily be limited to, initiating additional public offerings, curtailing the Group’s business development activities, suspending the pursuit of its business plan, obtaining credit facilities, controlling overhead expenses and seeking to further dispose of non-core assets. Management cannot provide any assurance that the Group will raise additional capital if needed. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES a. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and generally accepted accounting principles in the United States ("U.S. GAAP") for interim financial reporting. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly state the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and footnotes thereto, included in the Company’s 2020 Annual Report filed with the SEC on April 8, 2021. The interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year or any future periods. All amounts in the accompanying unaudited condensed consolidated financial statements and notes are expressed in Renminbi (“RMB”). Amounts in United States dollars (“US$”) are presented solely for the convenience of readers and use an exchange rate of RMB 6.4566, representing the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board as of June 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. b. Revenue recognition The Group has adopted ASC 606 Revenue from Contracts with Customers using the modified retrospective transition method from January 1, 2018. The Group’s revenue is generated from delivering educational programs and services and intellectualized operational services. Disaggregation of revenues The following table illustrates the disaggregation of revenue by operating segments for the six and three months ended June 30, 2021 and 2020, respectively: (RMB in thousands) K ‑ 12 Schools CP&CE Programs Consolidated RMB RMB RMB Net Revenues in the six months ended June 30, 2021 175,650 126,206 301,856 Net Revenues in the six months ended June 30, 2020 126,800 118,942 245,742 Net Revenues in the three months ended June 30, 2021 104,748 67,503 172,251 Net Revenues in the three months ended June 30, 2020 85,389 70,074 155,463 Contract Balances The transferred control of promised services to customers results in the Group’s unconditional rights and conditional consideration receivable on passage of time. Accordingly, as of June 30, 2021 and December 31, 2020, the Group has no other contract assets except for Accounts Receivable, in RMB 21,234 and RMB 20,972, respectively. Please refer to Note 6-Accounts Receivable, Net for detail. Contract liabilities represent the Group has received consideration but has not satisfied the related performance obligations. The tuition and service fees received in advance are the Group’s contract liabilities and presented in deferred revenue in the consolidated balance sheets. The revenue recognized during the six months ended June 30, 2021 that was previously included in the deferred revenue balances as of December 31, 2020 was RMB 163,699. The following table provides the deferred revenue balances by segments as of June 30, 2021 and December 31, 2020. As of June 30, 2021 December 31, 2020 RMB RMB Unaudited K-12 Schools 111,106 126,564 CP&CE Programs 25,168 37,135 Total 136,274 163,699 c. Allowance for doubtful accounts The Group adopted ASC 326 Financial Instruments – Credit Losses using the modified retrospective approach through a cumulative-effect adjustment to accumulated deficit from January 1, 2020 and interim periods therein. Management used an expected credit loss model for the impairment of trading receivables as of period ends. Management believes the aging of accounts receivable is a reasonable parameter to estimate expected credit loss, and determines expected credit losses for accounts receivables using an aging schedule as of period ends. The expected credit loss rates under each aging schedule were developed on basis of the average historical loss rates from previous years, and adjusted to reflect the effects of those differences in current conditions and forecasted changes. Management measured the expected credit losses of accounts receivable on a collective basis. When an accounts receivable does not share risk characteristics with other accounts receivables, management will evaluate such accounts receivable for expected credit loss on an individual basis. Doubtful accounts balances are written off and deducted from allowance, when receivables are deemed uncollectible, after all collection efforts have been exhausted and the potential for recovery is considered remote. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 6 Months Ended |
Jun. 30, 2021 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 4. CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the unaudited condensed consolidated statements of cash flows. As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Cash and cash equivalents 168,424 118,821 Restricted cash 1,650 824 Total cash, cash equivalents, and restricted cash shown in the unaudited condensed consolidated statements of cash flows 170,074 119,645 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 6 Months Ended |
Jun. 30, 2021 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 5. SHORT-TERM INVESTMENTS Short-term investments consist of held-to-maturity investments and available-for-sale investments. Held to maturity investments Held-to- maturity investments consist of various fixed-income financial products purchased from Chinese commercial banks, which are classified as held-to-maturity investments as the Group has the positive intent and ability to hold the investments to maturity. The maturities of these financial products are within one year, with annual interest rates ranging from 2.19% to 3.30% and matured and fully collected with principal and interest as of the date of this report. They are classified as short-term investments on the consolidated balance sheets as its contractual maturity dates are less than one year. The repayments of principal of the financial products are not guaranteed by the Chinese commercial banks from which the fixed income financial products were purchased. Historically, the Company has received the principal and the interest in full upon maturity of these investments. While these fixed-income financial products are not publicly traded, the Company estimated that their fair value approximate their amortized costs considering their short-term maturities and high credit quality. No other-than-temporary impairment ("OTTI") loss was recognized for the six months ended June 30, 2021 and 2020, respectively. Available-for-sale investments Investments other than held-to-maturity are classified as available-for-sale investments, which consist of various adjustable-income financial products purchased from Chinese commercial banks. All the available for sale investments did not have maturity date. They are classified as short-term investments on the consolidated balance sheets as management intends to hold them for a period less than one year. Available-for-sale securities are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. The aging of all the available-for-sale investments were less than 12 months as of June 30, 2021. No OTTI loss was recognized for the six months ended June 30, 2021 and 2020, respectively. The amortized cost, gross unrealized gain in accumulated other comprehensive income, and estimated fair value of investments as of June 30, 2021 and December 31, 2020, are reflected in the tables below: As of June 30, 2021 Gross unrealized gain in accumulated other Estimated Amortized Cost comprehensive income Fair value RMB RMB RMB Unaudited Unaudited Unaudited Short-term investments: Held-to-maturity investments Fixed-rate financial products 2,000 — 2,000 Available-for-sale investments Adjustable-rate financial products 84,500 1,152 85,652 As of December 31, 2020 Gross unrealized gain in accumulated other Estimated Amortized Cost comprehensive income Fair value RMB RMB RMB Short-term investments: Held-to-maturity investments Fixed-rate financial products 45,000 — 45,000 Available-for-sale investments Adjustable-rate financial products 117,000 854 117,854 Interest income recognized on held-to-maturity investments for the six months ended June 30, 2021 and 2020 were as follows: Six months ended June 30, 2021 2020 RMB RMB Unaudited Unaudited Interest income recognized on held-to-maturity investments 672 175 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 6 Months Ended |
Jun. 30, 2021 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | 6. ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Accounts receivable 28,447 27,219 Less: Allowance for doubtful accounts (7,213) (6,247) Accounts receivable, net 21,234 20,972 Allowance for doubtful accounts: As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Balance at beginning of year/period (6,247) (2,993) Addition (2,002) (7,857) Written off 1,036 4,603 Balance at end of year/period (7,213) (6,247) |
PREPAID AND OTHER CURRENT ASSET
PREPAID AND OTHER CURRENT ASSETS, NET | 6 Months Ended |
Jun. 30, 2021 | |
PREPAID AND OTHER CURRENT ASSETS, NET | |
PREPAID AND OTHER CURRENT ASSETS, NET | 7. PREPAID AND OTHER CURRENT ASSETS, NET Prepaid and other current assets consisted of the following: As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Amount due from Xihua Group (Note i) 49,800 49,800 Receivable from Zhenjiang operating rights (Note ii) 35,000 35,000 Prepaid input value-added tax 3,938 4,069 Staff advances 3,175 3,723 Rental deposits 2,860 2,826 Prepayments to suppliers 8,421 9,209 Subsidy receivable (Note iii) 4,522 4,567 Others (Note iv) 14,111 8,510 Total before allowance for doubtful accounts 121,827 117,704 Less: allowance for doubtful accounts (70) (70) Total 121,757 117,634 Allowance for doubtful accounts: As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Balance at beginning of year/period (70) (4,339) Addition (Note v) — (1,046) Written off (Note v) — 5,315 Balance at end of year/period (70) (70) (Note i) A payable balance amounted to RMB 49,800 was recorded by a subsidiary prior to its acquisition by the Group, and such payable was indemnified by Xihua Investment Group (“Xihua Group). No provision was made for the indemnity. The indemnity balance was still outstanding as of the date of issuance of the financial statements. (Note ii) The balance represented the prepaid operating rights to the Zhenjiang Foreign Language School and Zhenjiang International School. The Group started a negotiation of returning the operating right back to the original owner Zhenjiang Education Investment Center in the third quarter of 2011. As a result, the prepaid operating rights have been reclassified as receivable since then. As of June 30, 2021 and December 31, 2020, the payable balance to Zhenjiang Foreign Language School amounted to RMB 36,770 and RMB 36,770, respectively; therefore, no provision was made. As of the date of issuance of the financial statements, the negotiation was still in progress. (Note iii) On March 6, 2020, Ambow NSAD Inc. acquired 100% of the outstanding membership interest of NewSchool. As part of the acquisition, a subsidy was provided by the seller for each of the four years after the acquisition for the loss of certain online business of NewSchool after the change of ownership. (Note iv) Others mainly included inventories and supplies, prepayments for employees, and other miscellaneous items with trivial amounts. (Note v) Addition of allowance during the year of 2020 was mainly provided against third parties due to the remote recoverability. Certain provisions were written off after all collection efforts being exhausted and the potentials for recovery were remote. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 8. OTHER NON-CURRENT ASSETS Other non-current assets consisted of the following: As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Prepaid long-term deposit and loans to lock-up an equity interest investment (Note i) 92,865 89,929 Long-term receivables from Jinghan Taihe (Note ii) 13,723 13,723 Long-term restricted cash (Note iii) 19,168 19,373 Long-term lease deposits 3,521 3,603 Equity method investments 1,736 1,740 Long-term subsidy receivable (Note 7(iii)) 5,407 6,577 Others 4,366 4,122 Total 140,786 139,067 (Note i) In April 2019, Beijing Shida Ambow Education Technology Co., Ltd. (“Ambow Shida”) entered into an agreement to lock-up a no-less-than 51% equity interest of Hebi School held by Beijing Dongyuanzhongheng Investment Management Co., Ltd. (“Dongyuan”) for six years, starting from May 1, 2019 till April 30, 2025. Hebi School is a for-profit K-12 school located in Hebi, Henan Province in China, providing junior and senior high school full curriculum services. It has completed a phase I campus construction which started from July 2019, and is in phase II construction. It has admitted first-year students from fall 2020. Ambow Shida paid RMB 40,000 to Dongyuan as a deposit in April 2019 according to the agreement. As agreed by both parties, if Ambow Shida and Dongyuan reach an agreement to transfer the equity interest of Hebi School at any time during the six years, the deposit in RMB 40,000 plus 10% annual interest accrued would not be returned but as part of the consideration for the transfer; or, Dongyuan will return the deposit to Ambow Shida with 10% annual interest within seven days upon termination of the Agreement. Ambow Shida recognized RMB 40,000 as the principal and RMB 7,641 as interest receivable of the lock-up deposit as of June 30, 2021. Beijing Ambow Shengying Education and Technology Co., Ltd. (“Ambow Shengying”) also entered into a series of loan agreements with Dongyuan in 2019 and 2020 with 5% annual interest rate. The total outstanding principals and interest receivable were RMB 42,600 and RMB 2,624 as of June 30, 2021, respectively. All loan agreements were without any requirements for collateral or pledge on the loans. On April 8, 2020, the Group entered into an equity transfer intention agreement with Dongyuan to agree that the outstanding loans and interest due would be turned into part of consideration for the Group to acquire a no-less-than 51% equity interest of Hebi School depending on both parties further agreement. No allowance upon such deposit loans and interest receivable was provided in the first six months of 2021. (Note ii) As of June 30, 2021, the Group recognized long-term receivables due from Beijing Jinghan Taihe Education Technology Co., Ltd. (“Jinghan Taihe”) of RMB 13,723, including the present value of long-term receivable related to the acquisition of tutoring centers previously owned by Jinghan Taihe and accrued management fee income from Jinghan Taihe. Due to the termination of operation of Jinghan Tutoring Centers, the Group is negotiating with Jinghan Taihe on settlement of the outstanding receivables and payables as of the date of this report. (Note iii) It includes cash in collateral bank accounts for the issuance of letters of credit in U.S. and cash in special deposit accounts required by the Education Commission to prevent abusive use of educational funds in China. |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 6 Months Ended |
Jun. 30, 2021 | |
SHORT-TERM BORROWINGS | |
SHORT-TERM BORROWINGS | 9. SHORT-TERM BORROWINGS The following table sets forth the loan agreements of short-term borrowings from banks: Amount Original Amount Annual Repayment Date Borrower Lender (RMB) (US$) Interest Rate Due Date September 1, 2020 Ambow Shida Huaxia Bank 10,000 N/A 4.35 % September 1, 2021 May 1, 2020 Bay State College Small Business 9,498 1,470 1.00 % May 2, 2022 In July 2020, the Group mortgaged its office property in Beijing, China with the carry amount of RMB 65,078 to obtain a line of credit in RMB 30,000 from Bank of Huaxia with one-year term from July 1, 2020 to July 1, 2021. The mortgage shall be terminated once all borrowings were repaid and mortgage cancellation registration procedures were completed. On September 1, 2020, the Group received a loan from Huaxia Bank in the amount of RMB 10,000 with maturity date on September 1, 2021 and bearing interest at 4.35% per annum for working capital purpose. As of the date of this report, this loan was fully repaid. On May 1, 2020, Bay State College obtained a PPP loan under the CARES Act from the SBA through Bank of America for US$1,470, with maturity date on May 2, 2022. Bay State College accrued interest expense on the loan using a fixed rate of 1%. Bay State College is applying for the forgiveness of the PPP loan as of the date of this report. |
TAXATION
TAXATION | 6 Months Ended |
Jun. 30, 2021 | |
TAXATION | |
TAXATION | 10. TAXATION a. Value added tax (“VAT”) The PRC government implemented a value-added tax reform pilot program, which replaced the business tax with VAT. Since May 2016, the change from business tax to VAT are expanded to all other service sectors which used to be subject to business tax. The VAT rates applicable to the subsidiaries and consolidated variable interest entities of the Group ranged from 3% to 6% as compared to the 3%~5% business tax rate which was applicable prior to the reform. As of June 30, 2021 and December 31, 2020, the payable balances for VAT were RMB 2,675 and RMB 2,176 respectively. b. Business tax In PRC, business taxes used to be imposed by the government on the revenues arising from the provision of taxable services including but not limited to education in the years before 2016. The business tax rates for the Group’s subsidiaries and consolidated variable interest entities ranged from 3% to 5%. Business tax was then replaced by the VAT from 2016 and thereafter. As of June 30, 2021 and December 31, 2020, the payable balances for business tax were RMB 17,406 and RMB 17,456, respectively. c. Income taxes Cayman Islands Under the current laws of Cayman Islands, the Company and its subsidiaries incorporated in the Cayman Islands are not subject to tax on income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. British Virgin Islands The Company’s subsidiaries incorporated in the BVI are not subject to taxation. Hong Kong Only one of the Company’s subsidiaries incorporated in Hong Kong is subject to a profit tax rate of 8.25% for the first HK$ 2,000 of assessable profits. Profits exceeding HK$ 2,000 and other subsidiaries in Hong Kong are subject to profit tax at a rate of 16.5%. Taiwan Entity incorporated in Taiwan is subject to Taiwan profit tax at a rate of 17%. PRC and US Significant components of the provision for income taxes on earnings for the six months ended June 30, 2021 and 2020 are as follows: Six months ended June 30, 2021 2020 RMB RMB Unaudited Unaudited Current: PRC 1,872 2,506 U.S. 690 2,771 Deferred: PRC 869 (386) U.S. (276) (3,268) Provision for income tax expenses 3,155 1,623 Corporate entities The PRC Enterprise Income Tax (“EIT”) is calculated based on the taxable income determined under the applicable EIT Law and its implementation rules, which became effective on January 1, 2008. EIT Law imposes a unified income tax rate of 25% for all resident enterprises in China, including both domestic and foreign invested enterprises. Reconciliation between total income tax expense and the amount computed by applying the PRC statutory income tax rate to income before income taxes is as follows: Six months ended June 30, 2021 2020 % % Unaudited Unaudited PRC statutory income tax rate 25 % 25 % Impact of different tax rates in other jurisdictions (196) % 0 % Tax effect of preferential tax rate for small enterprises 15 % 28 % Tax effect of non-deductible expenses 48 % 8 % Tax effect of non-taxable income (281) % (3) % Tax effect of tax-exempt entities 548 % (24) % Tax effect of deemed profit 0 % 1 % Deferred tax effect of tax rate change 54 % 7 % Changes in valuation allowance (182) % (27) % Effective tax rate 31 % 15 % d. Uncertain tax positions A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Unrecognized tax benefits 34,322 34,763 The amounts of unrecognized tax benefits listed above are based on the recognition and measurement criteria of ASC Topic 740, and the balance is presented as a non-current liability in the consolidated financial statements since December 31, 2020 due to the fact that the Group does not anticipate payments of cash within one year. The Group recognizes interest and penalty charges related to uncertain tax positions as necessary in the provision for income taxes. The Group has a liability for accrued penalty and interest of RMB nil as of June 30, 2021 and December 31, 2020, respectively. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of uncertain tax positions may result in liabilities which could be materially different from these estimates. In such an event, the Group will record additional tax expense or tax benefit in the period in which such resolution occurs. As of June 30, 2021 and December 31, 2020, there were RMB 34,322 and RMB 34,763 unrecognized tax benefits that if recognized would affect the annual effective tax rate. The Group does not expect that the position of unrecognized tax benefits will significantly increase or decrease within 12 months of June 30, 2021. In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to assess underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities remain subject to examination by the tax authorities based on the above. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
NET INCOME PER SHARE | |
NET INCOME PER SHARE | 11. NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share for the periods indicated: Six months ended June 30, 2021 2020 RMB RMB Unaudited Unaudited Numerator: Numerator for basic and diluted income per share 8,111 10,846 Denominator: Denominator for basic and diluted income per share weighted average ordinary shares outstanding 46,642,280 43,577,168 Basic and diluted income per share 0.17 0.25 Basic net income (loss) per share is computed using the weighted average number of the ordinary shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of ordinary shares and ordinary equivalent shares outstanding during the period. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
LEASES | 12. LEASES The Group has operating leases for classrooms, dormitories, offices and certain equipment; and finance lease for a teaching building used by Shenyang K-12 School. For the finance lease, all lease payments have been paid to the landlord from the commencement date of the lease. The components of lease expense were as follows: Six months ended June 30, 2021 2020 RMB RMB Unaudited Unaudited Operating and short-term lease expense 24,567 31,966 Finance lease expense 300 300 Supplemental cash flow information related to leases was as follows: Six months ended June 30, 2021 2020 RMB RMB Unaudited Unaudited Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 19,615 25,583 Operating cash flows from finance lease — — Supplemental balance sheet information related to leases was as follows: As of June 30, 2021 December 31, 2020 Unaudited Weighted-average Remaining Lease Term Operating leases 7.23 Years 7.41 Years Finance lease 9.18 Years 9.67 Years Weighted-average Discount Rate Operating leases 4.50 % 4.51 % The Group’s lease agreements do not have a discount rate that is readily determinable. The incremental borrowing rate is determined at lease commencement or lease modification and represents the rate of interest the Group would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The weighted-average discount rate was calculated using the discount rate for the lease that was used to calculate the lease liability balance for each lease and the remaining balance of the lease payments for each lease as of June 30, 2021 and December 31, 2020, respectively. The weighted-average remaining lease terms were calculated using the remaining lease term and the lease liability balance for each lease as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, maturities of lease liabilities were as follows: Amount RMB Unaudited 2021 (remaining) 29,900 2022 45,240 2023 43,487 2024 42,916 2025 42,501 Thereafter 110,113 Total lease payments 314,157 Less: interest (57,082) Total 257,075 Less: current portion (49,198) Non-current portion 207,877 As of June 30, 2021, the Group had no material operating or finance leases that had not yet commenced. Sublease The Group subleases offices to third parties under operating leases. Sublease income is recorded as a reduction of lease expense in the consolidated statements of operations. For the six months ended June 30, 2021 and 2020, gross sublease income of the Group was RMB 42 and RMB 139, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 13. SEGMENT INFORMATION The Group offers a wide range of educational and career enhancement services and products focusing on improving educational opportunities for primary and advanced degree school students and employment opportunities for university graduates. The Group’s chief operating decision maker (“CODM”) has been identified as the CEO who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the Group. Management has classified the reportable segments into two parts: 1) K-12 schools, 2) CP&CE Programs. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The CODM evaluates performance based on each reporting segment’s revenues, cost of revenues, gross profit, operating expenses, other income (expense), (loss) income before income tax and non-controlling interests and total assets as follows. For the six months ended June 30, 2021 (Unaudited) K-12 CP&CE (RMB in thousands) Schools Programs Consolidated RMB RMB RMB Net Revenues 175,650 126,206 301,856 Cost of revenues (97,886) (83,419) (181,305) GROSS PROFIT 77,764 42,787 120,551 OPERATING EXPENSES Selling and marketing (1,163) (22,098) (23,261) General and administrative (22,371) (38,131) (60,502) Research and development (424) (2,184) (2,608) Unallocated corporate expenses — — (29,010) Total operating expenses (23,958) (62,413) (115,381) OPERATING INCOME (LOSS) 53,806 (19,626) 5,170 OTHER INCOME Interest income 725 602 1,327 Other (loss), net (36) (1,439) (1,475) Gain from deregistration of subsidiaries — 1,325 1,325 Gain on sale of investment available for sale 1,001 — 1,001 Unallocated corporate other income — — 3,399 Total other income 1,690 488 5,577 INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS 55,496 (19,138) 10,747 Segment assets 402,185 399,336 801,521 Unallocated corporate assets — — 207,451 TOTAL ASSETS as of June 30, 2021 402,185 399,336 1,008,972 For the six months ended June 30, 2020 (Unaudited) K ‑ 12 CP&CE (RMB in thousands) Schools Programs Consolidated RMB RMB RMB Net Revenues 126,800 118,942 245,742 Cost of revenues (74,542) (99,240) (173,782) GROSS PROFIT 52,258 19,702 71,960 OPERATING EXPENSES Selling and marketing (580) (21,492) (22,072) General and administrative (18,270) (37,963) (56,233) Research and development — (724) (724) Unallocated corporate expenses — — (32,118) Total operating expenses (18,850) (60,179) (111,147) OPERATING INCOME (LOSS) 33,408 (40,477) (39,187) OTHER INCOME Interest income 218 1,412 1,630 Foreign exchange gain, net — 33 33 Other (loss) income, net (233) 979 746 Loss from deregistration of subsidiaries — (92) (92) Gain on sale of investment available for sale 827 — 827 Unallocated corporate other income — — 47,804 Total other income 812 2,332 50,948 INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS 34,220 (38,145) 11,761 The following table summarizes the net revenues by geographic areas for the six and three months ended June 30, 2021 and 2020, respectively. Six months ended June 30, Three months ended June 30, 2021 2020 2021 2020 RMB RMB RMB RMB Unaudited Unaudited Unaudited Unaudited Net Revenues PRC 234,927 182,039 141,066 116,729 U.S. 66,929 63,703 31,185 38,734 Total 301,856 245,742 172,251 155,463 Net revenues are attributed to areas based on the location where the service is performed to the customers. Other than in PRC and the United States, the Group does not conduct business in any other individual country. The following table summarizes long-lived assets by geographic areas as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Long-Lived Assets PRC 291,180 300,623 U.S. 167,350 179,560 Total 458,530 480,183 Long-lived assets represent property and equipment, land use rights, intangible assets, goodwill, operating and finance lease right-of-use assets for each geographic area. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 14. RELATED PARTY TRANSACTIONS a. Transactions The Group entered into the following transactions with related parties: Six months ended June 30, Transactions 2021 2020 RMB RMB Unaudited Unaudited Service purchased from Jinan QCY Intelligent Technology Co., Ltd., an entity significantly influenced by a member of management team of the Company (1,279) (1,417) Service purchased from Beijing QC Technology Company Limited, an entity significantly influenced by a member of management team of the Company (654) (152) Service purchased from Beijing HJRT Technology Co., Ltd., an entity significantly influenced by a member of management team of the Company (132) (132) b. The Group had the following balances with related parties: Amounts due from related parties Amounts due to related parties As of As of Relationship June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 RMB RMB RMB RMB Unaudited Unaudited Shandong Shichuang Software Engineering Co., Ltd., an entity controlled by Executive Principal of Ambow Research Center — — 2,417 2,417 Jinan QCY Intelligent Technology Co., Ltd., an entity significantly influenced by a member of management team of the Company 775 774 — — Beijing QC Technology Company Limited, an entity significantly influenced by a member of management team of the Company 2,039 1,961 354 126 URSUS Information Technology (Beijing) Company Limited, an entity significantly influenced by a member of management team of the Company 201 201 — — Beijing HJRT Technology Co., Ltd., an entity significantly influenced by a member of management team of the Company 220 88 — — 3,235 3,024 2,771 2,543 |
GAIN FROM DEREGISTRATION OF SUB
GAIN FROM DEREGISTRATION OF SUBSIDIARIES | 6 Months Ended |
Jun. 30, 2021 | |
GAIN FROM DEREGISTRATION OF SUBSIDIARIES | |
GAIN FROM DEREGISTRATION OF SUBSIDIARIES | 15. GAIN FROM DEREGISTRATION OF SUBSIDIARIES In the six months ended June 30, 2020 and 2021, the Company closed several subsidiaries through local government and corporate service institutions’ deregistration procedures. Those subsidiaries had no business operations and were in accumulated deficit for years. As a result, the Company recognized gain from deregistration of those subsidiaries in a collective amount of RMB 1,325 and RMB 3,897 in the six months ended June 30, 2021 and 2020, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS 1) Regulatory Policy on After-School Tutoring On July 24, 2021, Chinese regulatory authorities issued a set of guidelines aiming to ease the burden of excessive homework and after-school tutoring on students receiving an elementary school or junior high school education. The Company does not expect its operations to be materially affected by the Guidelines. The Group has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that there are not any other events that would have required adjustment or disclosure in the financial statements. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | a. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and generally accepted accounting principles in the United States ("U.S. GAAP") for interim financial reporting. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly state the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and footnotes thereto, included in the Company’s 2020 Annual Report filed with the SEC on April 8, 2021. The interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year or any future periods. All amounts in the accompanying unaudited condensed consolidated financial statements and notes are expressed in Renminbi (“RMB”). Amounts in United States dollars (“US$”) are presented solely for the convenience of readers and use an exchange rate of RMB 6.4566, representing the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board as of June 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Revenue recognition | b. Revenue recognition The Group has adopted ASC 606 Revenue from Contracts with Customers using the modified retrospective transition method from January 1, 2018. The Group’s revenue is generated from delivering educational programs and services and intellectualized operational services. Disaggregation of revenues The following table illustrates the disaggregation of revenue by operating segments for the six and three months ended June 30, 2021 and 2020, respectively: (RMB in thousands) K ‑ 12 Schools CP&CE Programs Consolidated RMB RMB RMB Net Revenues in the six months ended June 30, 2021 175,650 126,206 301,856 Net Revenues in the six months ended June 30, 2020 126,800 118,942 245,742 Net Revenues in the three months ended June 30, 2021 104,748 67,503 172,251 Net Revenues in the three months ended June 30, 2020 85,389 70,074 155,463 Contract Balances The transferred control of promised services to customers results in the Group’s unconditional rights and conditional consideration receivable on passage of time. Accordingly, as of June 30, 2021 and December 31, 2020, the Group has no other contract assets except for Accounts Receivable, in RMB 21,234 and RMB 20,972, respectively. Please refer to Note 6-Accounts Receivable, Net for detail. Contract liabilities represent the Group has received consideration but has not satisfied the related performance obligations. The tuition and service fees received in advance are the Group’s contract liabilities and presented in deferred revenue in the consolidated balance sheets. The revenue recognized during the six months ended June 30, 2021 that was previously included in the deferred revenue balances as of December 31, 2020 was RMB 163,699. The following table provides the deferred revenue balances by segments as of June 30, 2021 and December 31, 2020. As of June 30, 2021 December 31, 2020 RMB RMB Unaudited K-12 Schools 111,106 126,564 CP&CE Programs 25,168 37,135 Total 136,274 163,699 |
Allowance for doubtful accounts | c. Allowance for doubtful accounts The Group adopted ASC 326 Financial Instruments – Credit Losses using the modified retrospective approach through a cumulative-effect adjustment to accumulated deficit from January 1, 2020 and interim periods therein. Management used an expected credit loss model for the impairment of trading receivables as of period ends. Management believes the aging of accounts receivable is a reasonable parameter to estimate expected credit loss, and determines expected credit losses for accounts receivables using an aging schedule as of period ends. The expected credit loss rates under each aging schedule were developed on basis of the average historical loss rates from previous years, and adjusted to reflect the effects of those differences in current conditions and forecasted changes. Management measured the expected credit losses of accounts receivable on a collective basis. When an accounts receivable does not share risk characteristics with other accounts receivables, management will evaluate such accounts receivable for expected credit loss on an individual basis. Doubtful accounts balances are written off and deducted from allowance, when receivables are deemed uncollectible, after all collection efforts have been exhausted and the potential for recovery is considered remote. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Disaggregation of Revenue | (RMB in thousands) K ‑ 12 Schools CP&CE Programs Consolidated RMB RMB RMB Net Revenues in the six months ended June 30, 2021 175,650 126,206 301,856 Net Revenues in the six months ended June 30, 2020 126,800 118,942 245,742 Net Revenues in the three months ended June 30, 2021 104,748 67,503 172,251 Net Revenues in the three months ended June 30, 2020 85,389 70,074 155,463 |
Schedule of Disaggregation of Deferred Revenue | As of June 30, 2021 December 31, 2020 RMB RMB Unaudited K-12 Schools 111,106 126,564 CP&CE Programs 25,168 37,135 Total 136,274 163,699 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |
Schedule of Cash, Cash Equivalents and Restricted Cash | As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Cash and cash equivalents 168,424 118,821 Restricted cash 1,650 824 Total cash, cash equivalents, and restricted cash shown in the unaudited condensed consolidated statements of cash flows 170,074 119,645 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SHORT-TERM INVESTMENTS | |
Schedule of amortized cost, gross unrealized gain in accumulated other comprehensive income, and estimated fair value of investments | As of June 30, 2021 Gross unrealized gain in accumulated other Estimated Amortized Cost comprehensive income Fair value RMB RMB RMB Unaudited Unaudited Unaudited Short-term investments: Held-to-maturity investments Fixed-rate financial products 2,000 — 2,000 Available-for-sale investments Adjustable-rate financial products 84,500 1,152 85,652 As of December 31, 2020 Gross unrealized gain in accumulated other Estimated Amortized Cost comprehensive income Fair value RMB RMB RMB Short-term investments: Held-to-maturity investments Fixed-rate financial products 45,000 — 45,000 Available-for-sale investments Adjustable-rate financial products 117,000 854 117,854 |
Schedule of interest income recognized on held-to-maturity investments | Six months ended June 30, 2021 2020 RMB RMB Unaudited Unaudited Interest income recognized on held-to-maturity investments 672 175 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of Accounts Receivable, Net | As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Accounts receivable 28,447 27,219 Less: Allowance for doubtful accounts (7,213) (6,247) Accounts receivable, net 21,234 20,972 Allowance for doubtful accounts: As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Balance at beginning of year/period (6,247) (2,993) Addition (2,002) (7,857) Written off 1,036 4,603 Balance at end of year/period (7,213) (6,247) |
PREPAID AND OTHER CURRENT ASS_2
PREPAID AND OTHER CURRENT ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
PREPAID AND OTHER CURRENT ASSETS, NET | |
Schedule of Prepaid and Other Current Assets, Net | As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Amount due from Xihua Group (Note i) 49,800 49,800 Receivable from Zhenjiang operating rights (Note ii) 35,000 35,000 Prepaid input value-added tax 3,938 4,069 Staff advances 3,175 3,723 Rental deposits 2,860 2,826 Prepayments to suppliers 8,421 9,209 Subsidy receivable (Note iii) 4,522 4,567 Others (Note iv) 14,111 8,510 Total before allowance for doubtful accounts 121,827 117,704 Less: allowance for doubtful accounts (70) (70) Total 121,757 117,634 |
Schedule of Allowance for Doubtful Accounts | As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Balance at beginning of year/period (70) (4,339) Addition (Note v) — (1,046) Written off (Note v) — 5,315 Balance at end of year/period (70) (70) |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
OTHER NON-CURRENT ASSETS | |
Schedule of Other Non-current Assets | As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Prepaid long-term deposit and loans to lock-up an equity interest investment (Note i) 92,865 89,929 Long-term receivables from Jinghan Taihe (Note ii) 13,723 13,723 Long-term restricted cash (Note iii) 19,168 19,373 Long-term lease deposits 3,521 3,603 Equity method investments 1,736 1,740 Long-term subsidy receivable (Note 7(iii)) 5,407 6,577 Others 4,366 4,122 Total 140,786 139,067 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SHORT-TERM BORROWINGS | |
Schedule of short-term borrowing from bank | Amount Original Amount Annual Repayment Date Borrower Lender (RMB) (US$) Interest Rate Due Date September 1, 2020 Ambow Shida Huaxia Bank 10,000 N/A 4.35 % September 1, 2021 May 1, 2020 Bay State College Small Business 9,498 1,470 1.00 % May 2, 2022 |
TAXATION (Tables)
TAXATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
TAXATION | |
Schedule of Significant Components of Provision for Income Taxes on Earnings | Six months ended June 30, 2021 2020 RMB RMB Unaudited Unaudited Current: PRC 1,872 2,506 U.S. 690 2,771 Deferred: PRC 869 (386) U.S. (276) (3,268) Provision for income tax expenses 3,155 1,623 |
Schedule of Reconciliation Between Total Income Tax Expense and Amount Computed by Applying the Weighted Average Statutory Income Tax Rate to Income Before Income Taxes | Six months ended June 30, 2021 2020 % % Unaudited Unaudited PRC statutory income tax rate 25 % 25 % Impact of different tax rates in other jurisdictions (196) % 0 % Tax effect of preferential tax rate for small enterprises 15 % 28 % Tax effect of non-deductible expenses 48 % 8 % Tax effect of non-taxable income (281) % (3) % Tax effect of tax-exempt entities 548 % (24) % Tax effect of deemed profit 0 % 1 % Deferred tax effect of tax rate change 54 % 7 % Changes in valuation allowance (182) % (27) % Effective tax rate 31 % 15 % |
Schedule of Reconciliation of Beginning and Ending Amount of Liabilities Associated with Uncertain Tax Positions | As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Unrecognized tax benefits 34,322 34,763 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
NET INCOME PER SHARE | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share | Six months ended June 30, 2021 2020 RMB RMB Unaudited Unaudited Numerator: Numerator for basic and diluted income per share 8,111 10,846 Denominator: Denominator for basic and diluted income per share weighted average ordinary shares outstanding 46,642,280 43,577,168 Basic and diluted income per share 0.17 0.25 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
Schedule Of Components of Lease Expense | Six months ended June 30, 2021 2020 RMB RMB Unaudited Unaudited Operating and short-term lease expense 24,567 31,966 Finance lease expense 300 300 |
Schedule Of Supplemental Cash Flow Information | Six months ended June 30, 2021 2020 RMB RMB Unaudited Unaudited Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 19,615 25,583 Operating cash flows from finance lease — — |
Schedule Of Lease Terms And Discount Rates | As of June 30, 2021 December 31, 2020 Unaudited Weighted-average Remaining Lease Term Operating leases 7.23 Years 7.41 Years Finance lease 9.18 Years 9.67 Years Weighted-average Discount Rate Operating leases 4.50 % 4.51 % |
Schedule of Maturities of Lease Liabilities | Amount RMB Unaudited 2021 (remaining) 29,900 2022 45,240 2023 43,487 2024 42,916 2025 42,501 Thereafter 110,113 Total lease payments 314,157 Less: interest (57,082) Total 257,075 Less: current portion (49,198) Non-current portion 207,877 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SEGMENT INFORMATION | |
Schedule of Revenues, Cost of Revenues, Gross Profit, Operating Expenses, Other Income (Expense), (Loss) Income Before Income Tax and Non-controlling Interests and Total Assets | For the six months ended June 30, 2021 (Unaudited) K-12 CP&CE (RMB in thousands) Schools Programs Consolidated RMB RMB RMB Net Revenues 175,650 126,206 301,856 Cost of revenues (97,886) (83,419) (181,305) GROSS PROFIT 77,764 42,787 120,551 OPERATING EXPENSES Selling and marketing (1,163) (22,098) (23,261) General and administrative (22,371) (38,131) (60,502) Research and development (424) (2,184) (2,608) Unallocated corporate expenses — — (29,010) Total operating expenses (23,958) (62,413) (115,381) OPERATING INCOME (LOSS) 53,806 (19,626) 5,170 OTHER INCOME Interest income 725 602 1,327 Other (loss), net (36) (1,439) (1,475) Gain from deregistration of subsidiaries — 1,325 1,325 Gain on sale of investment available for sale 1,001 — 1,001 Unallocated corporate other income — — 3,399 Total other income 1,690 488 5,577 INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS 55,496 (19,138) 10,747 Segment assets 402,185 399,336 801,521 Unallocated corporate assets — — 207,451 TOTAL ASSETS as of June 30, 2021 402,185 399,336 1,008,972 For the six months ended June 30, 2020 (Unaudited) K ‑ 12 CP&CE (RMB in thousands) Schools Programs Consolidated RMB RMB RMB Net Revenues 126,800 118,942 245,742 Cost of revenues (74,542) (99,240) (173,782) GROSS PROFIT 52,258 19,702 71,960 OPERATING EXPENSES Selling and marketing (580) (21,492) (22,072) General and administrative (18,270) (37,963) (56,233) Research and development — (724) (724) Unallocated corporate expenses — — (32,118) Total operating expenses (18,850) (60,179) (111,147) OPERATING INCOME (LOSS) 33,408 (40,477) (39,187) OTHER INCOME Interest income 218 1,412 1,630 Foreign exchange gain, net — 33 33 Other (loss) income, net (233) 979 746 Loss from deregistration of subsidiaries — (92) (92) Gain on sale of investment available for sale 827 — 827 Unallocated corporate other income — — 47,804 Total other income 812 2,332 50,948 INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS 34,220 (38,145) 11,761 |
Schedule of net revenues long lived assets geographical areas | Six months ended June 30, Three months ended June 30, 2021 2020 2021 2020 RMB RMB RMB RMB Unaudited Unaudited Unaudited Unaudited Net Revenues PRC 234,927 182,039 141,066 116,729 U.S. 66,929 63,703 31,185 38,734 Total 301,856 245,742 172,251 155,463 As of June 30, 2021 December 31, 2020 RMB RMB Unaudited Long-Lived Assets PRC 291,180 300,623 U.S. 167,350 179,560 Total 458,530 480,183 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
Schedule of Transactions with Related Parties | Six months ended June 30, Transactions 2021 2020 RMB RMB Unaudited Unaudited Service purchased from Jinan QCY Intelligent Technology Co., Ltd., an entity significantly influenced by a member of management team of the Company (1,279) (1,417) Service purchased from Beijing QC Technology Company Limited, an entity significantly influenced by a member of management team of the Company (654) (152) Service purchased from Beijing HJRT Technology Co., Ltd., an entity significantly influenced by a member of management team of the Company (132) (132) |
Schedule of Balances with Related Parties | Amounts due from related parties Amounts due to related parties As of As of Relationship June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 RMB RMB RMB RMB Unaudited Unaudited Shandong Shichuang Software Engineering Co., Ltd., an entity controlled by Executive Principal of Ambow Research Center — — 2,417 2,417 Jinan QCY Intelligent Technology Co., Ltd., an entity significantly influenced by a member of management team of the Company 775 774 — — Beijing QC Technology Company Limited, an entity significantly influenced by a member of management team of the Company 2,039 1,961 354 126 URSUS Information Technology (Beijing) Company Limited, an entity significantly influenced by a member of management team of the Company 201 201 — — Beijing HJRT Technology Co., Ltd., an entity significantly influenced by a member of management team of the Company 220 88 — — 3,235 3,024 2,771 2,543 |
GOING CONCERN (Details)
GOING CONCERN (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | |||||||
Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021CNY (¥) | Mar. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Mar. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Going Concern [Line Items] | ||||||||
Liabilities in excess of assets | ¥ 213,526 | |||||||
Equity | $ 23,076 | ¥ 182,220 | 148,991 | ¥ 126,955 | ¥ 141,154 | ¥ 169,454 | ¥ 163,596 | |
Unrestricted cash and cash equivalents | 26,086 | 168,424 | 118,821 | |||||
Short-term investments, available for sale | 13,266 | 85,652 | 117,854 | |||||
Short-term investments, held to maturity | 310 | 2,000 | ¥ 45,000 | |||||
Net Cash Provided by (Used in) Operating Activities | $ (2,997) | ¥ (19,339) | ¥ (61,989) | |||||
Variable interest entities and subsidiaries of VIEs | ||||||||
Going Concern [Line Items] | ||||||||
Short-term investments, available for sale | 85,652 | |||||||
Short-term investments, held to maturity | ¥ 2,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Basis of presentation (Details) | Jun. 30, 2021 |
SIGNIFICANT ACCOUNTING POLICIES | |
Exchange rate | 6.4566 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | |
Revenues | $ 26,678 | ¥ 172,251 | ¥ 155,463 | $ 46,751 | ¥ 301,856 | ¥ 245,742 | ||
Accounts receivable, net | 3,289 | 3,289 | ¥ 21,234 | ¥ 20,972 | ||||
Deferred revenue | $ 21,106 | $ 21,106 | 136,274 | 163,699 | ||||
K-12 Schools [Member] | ||||||||
Revenues | 104,748 | 85,389 | 175,650 | 126,800 | ||||
Deferred revenue | 111,106 | 126,564 | ||||||
CP&CE Programs | ||||||||
Revenues | ¥ 67,503 | ¥ 70,074 | ¥ 126,206 | ¥ 118,942 | ||||
Deferred revenue | ¥ 25,168 | ¥ 37,135 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Jun. 30, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||||||
Cash and cash equivalents | $ 26,086 | ¥ 168,424 | ¥ 118,821 | |||
Restricted cash | 256 | 1,650 | 824 | |||
Total cash, cash equivalents, and restricted cash shown in the unaudited condensed consolidated statements of cash flows | $ 26,342 | ¥ 170,074 | $ 18,534 | ¥ 119,645 | ¥ 112,615 | ¥ 157,600 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Other-than-temporary impairment loss, held-to-maturity investments | ¥ 0 | ¥ 0 |
OTTI loss, available-for-sale investments | ¥ 0 | ¥ 0 |
Minimum | ||
Interest rate (as a percent) | 2.19% | |
Maximum | ||
Maturities | 1 year | |
Interest rate (as a percent) | 3.30% |
SHORT-TERM INVESTMENTS - Amorti
SHORT-TERM INVESTMENTS - Amortized cost, gross unrealized gain, estimated fair value (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Held-to-maturity investments | ||
Amortized Cost | ¥ 2,000 | ¥ 45,000 |
Estimated Fair value | 2,000 | 45,000 |
Available-for-sale investments | ||
Amortized Cost | 84,500 | 117,000 |
Gross unrealized gain in accumulated other comprehensive income | 1,152 | 854 |
Estimated Fair value | ¥ 85,652 | ¥ 117,854 |
SHORT-TERM INVESTMENTS - Intere
SHORT-TERM INVESTMENTS - Interest income (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
SHORT-TERM INVESTMENTS | ||
Interest income recognized on held-to-maturity investments | ¥ 672 | ¥ 175 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) |
ACCOUNTS RECEIVABLE, NET | |||
Accounts receivable | ¥ 28,447 | ¥ 27,219 | |
Less: Allowance for doubtful accounts | (7,213) | (6,247) | |
Accounts receivable, net | $ 3,289 | ¥ 21,234 | ¥ 20,972 |
ACCOUNTS RECEIVABLE, NET - Allo
ACCOUNTS RECEIVABLE, NET - Allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Allowance for doubtful accounts: | ||
Balance at beginning of year/Period | ¥ (6,247) | ¥ (2,993) |
Addition | (2,002) | (7,857) |
Written off | 1,036 | 4,603 |
Balance at end of year/period | ¥ (7,213) | ¥ (6,247) |
PREPAID AND OTHER CURRENT ASS_3
PREPAID AND OTHER CURRENT ASSETS, NET (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) |
Amount due from Xihua Group | ¥ 49,800 | ¥ 49,800 | |
Receivable from Zhenjiang operating rights | 35,000 | 35,000 | |
Prepaid input value-added tax | 3,938 | 4,069 | |
Staff advances | 3,175 | 3,723 | |
Rental deposits | 2,860 | 2,826 | |
Prepayments to suppliers | 8,421 | 9,209 | |
Subsidy receivable | 4,522 | 4,567 | |
Others | 14,111 | 8,510 | |
Total before allowance for doubtful accounts | 121,827 | 117,704 | |
Less: allowance for doubtful accounts | (70) | (70) | |
Total | $ 18,858 | ¥ 121,757 | ¥ 117,634 |
PREPAID AND OTHER CURRENT ASS_4
PREPAID AND OTHER CURRENT ASSETS, NET (Schedule of Allowance for Doubtful Accounts) (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Allowance for doubtful accounts: | ||
Balance at beginning of year/Period | ¥ (6,247) | ¥ (2,993) |
Written off | 1,036 | 4,603 |
Balance at end of year/period | (7,213) | (6,247) |
Prepaid and Other Current Assets | ||
Allowance for doubtful accounts: | ||
Balance at beginning of year/Period | (70) | (4,339) |
Addition | (1,046) | |
Written off | 5,315 | |
Balance at end of year/period | ¥ (70) | ¥ (70) |
PREPAID AND OTHER CURRENT ASS_5
PREPAID AND OTHER CURRENT ASSETS, NET (Summary of Receivable Transferred and Consideration Allocated Based on Management's Estimation on Recoverability) (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 06, 2020 |
Amount due from minority shareholder | ¥ 49,800 | ¥ 49,800 | |
Zhenjiang Foreign Language School | |||
Payable to Zhenjiang Foreign Language School (Note 7(ii)) | 36,770 | ¥ 36,770 | |
Provision | 0 | ||
Ambow NSAD Inc | NewSchool | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
Xihua Group | |||
Amount due from minority shareholder | 49,800 | ||
Provision | ¥ 0 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) |
OTHER NON-CURRENT ASSETS | |||
Prepaid long-term deposit and loans to lock-up an equity interest investment (Note i) | ¥ 92,865 | ¥ 89,929 | |
Long-term receivables from Jinghan Taihe (Note ii) | 13,723 | 13,723 | |
Long-term restricted cash (Note iii) | 19,168 | 19,373 | |
Long-term lease deposits | 3,521 | 3,603 | |
Equity method investments | 1,736 | 1,740 | |
Long-term subsidy receivable (Note 7(iii)) | 5,407 | 6,577 | |
Others | 4,366 | 4,122 | |
Total | $ 21,805 | ¥ 140,786 | ¥ 139,067 |
OTHER NON-CURRENT ASSETS - Addi
OTHER NON-CURRENT ASSETS - Additional information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 24 Months Ended | |||||
Apr. 30, 2019CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Apr. 08, 2020 | |
Additional information | |||||||||
Long-term receivables | ¥ 13,723 | ¥ 13,723 | |||||||
Interest income | $ 302 | 1,948 | ¥ 2,145 | $ 621 | 4,008 | ¥ 4,135 | |||
Dongyuan | |||||||||
Additional information | |||||||||
Annual interest rate of loan agreements | 5.00% | ||||||||
Outstanding principal | 42,600 | 42,600 | |||||||
Interest receivable | 2,624 | 2,624 | |||||||
Hebi School | |||||||||
Additional information | |||||||||
Ownership (as a percent) | 51.00% | 51.00% | |||||||
Long-term Deposit | ¥ 40,000 | 40,000 | 40,000 | ¥ 40,000 | |||||
Interest on security deposit, percentage | 10 | ||||||||
Interest On Security Deposit, Value | 7,641 | ||||||||
Allowance upon deposit loans and interest receivable | ¥ 0 | ¥ 0 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | ||||||
Jul. 31, 2020CNY (¥) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Sep. 01, 2020CNY (¥) | May 01, 2020CNY (¥) | May 01, 2020USD ($) | |
Short-term borrowings | ¥ 19,498 | $ 3,020 | ¥ 10,000 | ||||
Bank of Huaxia | |||||||
Mortgaged property amount | ¥ 65,078 | ||||||
Line of credit | ¥ 30,000 | ||||||
Term of line of credit (in years) | 1 year | ||||||
Ambow Shida | |||||||
Short-term borrowings | ¥ 10,000 | ||||||
Interest rate (as a percent) | 4.35% | ||||||
Bay State College Inc | |||||||
Short-term borrowings | ¥ 9,498 | $ 1,470 | |||||
Interest rate (as a percent) | 1.00% | 1.00% |
TAXATION (Details)
TAXATION (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
May 31, 2016 | Apr. 30, 2016 | Jun. 30, 2021USD ($) | Jun. 30, 2020 | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | |
Taxation | ||||||
Unrecognized tax benefits that if recognized would affect the annual effective tax rate | ¥ 34,322 | ¥ 34,763 | ||||
China | ||||||
Taxation | ||||||
VAT payable | 2,675 | 2,176 | ||||
Business tax payable | ¥ 17,406 | ¥ 17,456 | ||||
Income tax rate (as percent) | 25.00% | 25.00% | ||||
China | Minimum | ||||||
Taxation | ||||||
VAT (as a percent) | 3.00% | |||||
Business tax (as a percent) | 3.00% | 3.00% | ||||
China | Maximum | ||||||
Taxation | ||||||
VAT (as a percent) | 6.00% | |||||
Business tax (as a percent) | 5.00% | 5.00% | ||||
Hong Kong | Tax rate for the first HK$ 2,000 of assessable profits | ||||||
Taxation | ||||||
Assessable profits to calculate tax rate | $ | $ 2,000 | |||||
Income tax rate (as percent) | 8.25% | |||||
Hong Kong | Tax rate for profits exceeding HK$ 2,000 | ||||||
Taxation | ||||||
Assessable profits to calculate tax rate | $ | $ 2,000 | |||||
Income tax rate (as percent) | 16.50% | |||||
Taiwan | ||||||
Taxation | ||||||
Income tax rate (as percent) | 17.00% |
TAXATION - Provision for Income
TAXATION - Provision for Income Taxes (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | |
Deferred: | ||||||
Provision for income tax expenses | $ 236 | ¥ 1,526 | ¥ 2,362 | $ 489 | ¥ 3,155 | ¥ 1,623 |
China | ||||||
Current: | ||||||
Current | 1,872 | 2,506 | ||||
Deferred: | ||||||
Deferred | 869 | (386) | ||||
U.S. | ||||||
Current: | ||||||
Current | 690 | 2,771 | ||||
Deferred: | ||||||
Deferred | ¥ (276) | ¥ (3,268) |
TAXATION - Reconciliation (Deta
TAXATION - Reconciliation (Details) - China | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation between total income tax expense and the amount computed by applying the weighted average statutory income tax rate to income before income taxes | ||
PRC statutory income tax rate | 25.00% | 25.00% |
Impact of different tax rates in other jurisdictions | (196.00%) | 0.00% |
Tax effect of preferential tax rate for small enterprises | 15.00% | 28.00% |
Tax effect of non-deductible expenses | 48.00% | 8.00% |
Tax effect of non-taxable income | (281.00%) | (3.00%) |
Tax effect of tax-exempt entities | 548.00% | (24.00%) |
Tax effect of deemed profit | 0.00% | 1.00% |
Deferred tax effect of tax rate change | 54.00% | 7.00% |
Changes in valuation allowance | (182.00%) | (27.00%) |
Effective tax rate | 31.00% | 15.00% |
TAXATION - Uncertain Tax Positi
TAXATION - Uncertain Tax Positions (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions | ||
Unrecognized tax benefits | ¥ 34,322 | ¥ 34,763 |
TAXATION - Narrative (Details)
TAXATION - Narrative (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
TAXATION | ||
Unrecognized tax benefits | ¥ 0 | ¥ 0 |
NET INCOME PER SHARE - Computat
NET INCOME PER SHARE - Computation of Basic and Diluted Net Loss Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | |
Numerator: | ||||||
Numerator for basic and diluted income per share | $ 3,475 | ¥ 22,440 | ¥ 4,807 | $ 1,254 | ¥ 8,111 | ¥ 10,846 |
Denominator: | ||||||
Denominator for basic and diluted income per share weighted average ordinary shares outstanding | 46,648,495 | 46,648,495 | 43,583,418 | 46,642,280 | 46,642,280 | 43,577,168 |
Basic and diluted income per share | (per share) | $ 0.07 | ¥ 0.48 | ¥ 0.11 | $ 0.03 | ¥ 0.17 | ¥ 0.25 |
LEASES - Lease Expenses (Detail
LEASES - Lease Expenses (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
LEASES | ||
Operating and short-term lease expense | ¥ 24,567 | ¥ 31,966 |
Finance lease expense | ¥ 300 | ¥ 300 |
LEASES - Supplemental cash flow
LEASES - Supplemental cash flow information (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
LEASES | ||
Operating cash flows from operating leases | ¥ 19,615 | ¥ 25,583 |
Operating cash flows from finance lease | ¥ 0 | ¥ 0 |
LEASES - Supplemental balance s
LEASES - Supplemental balance sheet information (Details) | Jun. 30, 2021 | Dec. 31, 2020 |
LEASES | ||
Weighted-average Remaining Lease Term, Operating leases | 7 years 2 months 23 days | 7 years 4 months 28 days |
Weighted-average Remaining Lease Term, Finance lease | 9 years 2 months 4 days | 9 years 8 months 1 day |
Weighted-average Discount Rate, Operating leases | 4.50% | 4.51% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Operating leases- ASU842 | |||
2021 (remaining) | ¥ 29,900 | ||
2022 | 45,240 | ||
2023 | 43,487 | ||
2024 | 42,916 | ||
2025 | 42,501 | ||
Thereafter | 110,113 | ||
Total lease payments | 314,157 | ||
Less: interest | (57,082) | ||
Total | 257,075 | ||
Less: current portion | (49,198) | $ (7,620) | ¥ (53,702) |
Non-current portion | ¥ 207,877 | $ 32,196 | ¥ 220,319 |
LEASES - Narratives (Details)
LEASES - Narratives (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Sublease Income | ¥ 42 | ¥ 139 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021USD ($)segment | Jun. 30, 2021CNY (¥)segment | Jun. 30, 2020CNY (¥) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | |
Segment Reporting Information [Line Items] | ||||||||
Net Revenue | $ 26,678 | ¥ 172,251 | ¥ 155,463 | $ 46,751 | ¥ 301,856 | ¥ 245,742 | ||
Cost of revenues | (14,919) | (96,322) | (95,051) | (28,081) | (181,305) | (173,782) | ||
GROSS PROFIT | 11,759 | 75,929 | 60,412 | 18,670 | 120,551 | 71,960 | ||
Operating expenses: | ||||||||
Selling and marketing | (2,079) | (13,422) | (13,657) | (3,782) | (24,422) | (24,206) | ||
General and administrative | (5,949) | (38,412) | (45,042) | (13,220) | (85,357) | (84,243) | ||
Research and development | (582) | (3,757) | (1,567) | (868) | (5,602) | (2,698) | ||
Total operating expenses | (8,610) | (55,591) | (60,266) | (17,870) | (115,381) | (111,147) | ||
OPERATING INCOME (LOSS) | 3,149 | 20,338 | 146 | 800 | 5,170 | (39,187) | ||
OTHER INCOME | ||||||||
Interest income | 302 | 1,948 | 2,145 | 621 | 4,008 | 4,135 | ||
Foreign exchange gain (loss), net | (2) | (12) | 9 | 31 | 203 | 35 | ||
Other (loss) income, net | (37) | (240) | 146 | (183) | (1,180) | 1,552 | ||
Gain on sale of investment available for sale | 73 | 474 | 530 | 189 | 1,221 | 1,056 | ||
Total other income | 519 | 3,351 | 6,727 | 863 | ¥ 5,577 | 50,948 | ||
TOTAL ASSETS | $ 156,272 | $ 156,272 | ¥ 1,008,972 | ¥ 1,049,717 | ||||
Number of Reportable Segments | segment | 2 | 2 | ||||||
Consolidated | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenue | ¥ 301,856 | 245,742 | ||||||
Cost of revenues | (181,305) | (173,782) | ||||||
GROSS PROFIT | 120,551 | 71,960 | ||||||
Operating expenses: | ||||||||
Selling and marketing | (23,261) | (22,072) | ||||||
General and administrative | (60,502) | (56,233) | ||||||
Research and development | (2,608) | (724) | ||||||
Unallocated corporate expenses | (29,010) | (32,118) | ||||||
Total operating expenses | (115,381) | (111,147) | ||||||
OPERATING INCOME (LOSS) | 5,170 | (39,187) | ||||||
OTHER INCOME | ||||||||
Interest income | 1,327 | 1,630 | ||||||
Foreign exchange gain (loss), net | 33 | |||||||
Other (loss) income, net | (1,475) | 746 | ||||||
Gain (loss) from deregistration of subsidiaries | 1,325 | (92) | ||||||
Gain on sale of investment available for sale | 1,001 | 827 | ||||||
Unallocated corporate other income | 3,399 | 47,804 | ||||||
Total other income | 5,577 | 50,948 | ||||||
INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS | 10,747 | 11,761 | ||||||
TOTAL ASSETS | 1,008,972 | |||||||
Segment assets | ||||||||
OTHER INCOME | ||||||||
TOTAL ASSETS | 801,521 | |||||||
Unallocated corporate assets | ||||||||
OTHER INCOME | ||||||||
TOTAL ASSETS | 207,451 | |||||||
K-12 Schools [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenue | 104,748 | 85,389 | 175,650 | 126,800 | ||||
Cost of revenues | (97,886) | (74,542) | ||||||
GROSS PROFIT | 77,764 | 52,258 | ||||||
Operating expenses: | ||||||||
Selling and marketing | (1,163) | (580) | ||||||
General and administrative | (22,371) | (18,270) | ||||||
Research and development | (424) | |||||||
Total operating expenses | (23,958) | (18,850) | ||||||
OPERATING INCOME (LOSS) | 53,806 | 33,408 | ||||||
OTHER INCOME | ||||||||
Interest income | 725 | 218 | ||||||
Other (loss) income, net | (36) | (233) | ||||||
Gain on sale of investment available for sale | 1,001 | 827 | ||||||
Total other income | 1,690 | 812 | ||||||
INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS | 55,496 | 34,220 | ||||||
TOTAL ASSETS | 402,185 | |||||||
K-12 Schools [Member] | Segment assets | ||||||||
OTHER INCOME | ||||||||
TOTAL ASSETS | 402,185 | |||||||
CP&CE Programs | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Revenue | ¥ 67,503 | ¥ 70,074 | 126,206 | 118,942 | ||||
Cost of revenues | (83,419) | (99,240) | ||||||
GROSS PROFIT | 42,787 | 19,702 | ||||||
Operating expenses: | ||||||||
Selling and marketing | (22,098) | (21,492) | ||||||
General and administrative | (38,131) | (37,963) | ||||||
Research and development | (2,184) | (724) | ||||||
Total operating expenses | (62,413) | (60,179) | ||||||
OPERATING INCOME (LOSS) | (19,626) | (40,477) | ||||||
OTHER INCOME | ||||||||
Interest income | 602 | 1,412 | ||||||
Foreign exchange gain (loss), net | 33 | |||||||
Other (loss) income, net | (1,439) | 979 | ||||||
Gain (loss) from deregistration of subsidiaries | 1,325 | (92) | ||||||
Total other income | 488 | 2,332 | ||||||
INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS | ¥ (19,138) | ¥ (38,145) | ||||||
TOTAL ASSETS | 399,336 | |||||||
CP&CE Programs | Segment assets | ||||||||
OTHER INCOME | ||||||||
TOTAL ASSETS | ¥ 399,336 |
SEGMENT INFORMATION - Revenues
SEGMENT INFORMATION - Revenues and Long Lived, Geographical Areas (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | |
Segment Reporting Information [Line Items] | |||||||
Total net revenues | $ 26,678 | ¥ 172,251 | ¥ 155,463 | $ 46,751 | ¥ 301,856 | ¥ 245,742 | |
Long-lived Assets | 458,530 | 458,530 | ¥ 480,183 | ||||
PRC | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenues | 141,066 | 116,729 | 234,927 | 182,039 | |||
Long-lived Assets | 291,180 | 291,180 | 300,623 | ||||
U.S. | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenues | 31,185 | ¥ 38,734 | 66,929 | ¥ 63,703 | |||
Long-lived Assets | ¥ 167,350 | ¥ 167,350 | ¥ 179,560 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Jinan QCY Intelligent Technology Co., Ltd | ||
RELATED PARTY TRANSACTIONS [Line Items] | ||
Service purchased from related party | ¥ (1,279) | ¥ (1,417) |
Beijing QC Technology Company Limited | ||
RELATED PARTY TRANSACTIONS [Line Items] | ||
Service purchased from related party | (654) | (152) |
Beijing HJRT Technology Company, Limited | ||
RELATED PARTY TRANSACTIONS [Line Items] | ||
Service purchased from related party | ¥ (132) | ¥ (132) |
RELATED PARTY TRANSACTIONS - Ba
RELATED PARTY TRANSACTIONS - Balances (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) |
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | $ 501 | ¥ 3,235 | ¥ 3,024 |
Amounts due to related parties | $ 429 | 2,771 | 2,543 |
Management | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | 3,235 | 3,024 | |
Amounts due to related parties | 2,771 | 2,543 | |
Shandong Shichuang Software Engineering Company Limited | Senior employee | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due to related parties | 2,417 | 2,417 | |
Jinan QCY Intelligent Technology Co., Ltd | Management | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | 775 | 774 | |
Beijing QC Technology Company Limited | Management | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | 2,039 | 1,961 | |
Amounts due to related parties | 354 | 126 | |
URSUS Information Technology (Beijing) Company Limited | Management | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | 201 | 201 | |
Beijing HJRT Technology Company, Limited | Management | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | ¥ 220 | ¥ 88 |
GAIN FROM DEREGISTRATION OF S_2
GAIN FROM DEREGISTRATION OF SUBSIDIARIES (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | |
Gain from deregistration of subsidiaries | $ 183 | ¥ 1,181 | ¥ 3,897 | $ 205 | ¥ 1,325 | ¥ 3,897 |