Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document Information [Line Items] | |
Entity Registrant Name | Ambow Education Holding Ltd. |
Entity Central Index Key | 1,494,558 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2016 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 33,990,680 |
Common Class C [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 4,708,415 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 196,900 | $ 28,359 | ¥ 246,303 |
Restricted cash | 2,350 | 338 | 2,050 |
Term deposits | 0 | 0 | 1,150 |
Short term investments, available for sale | 174,811 | 25,178 | 103,602 |
Short term investments, held to maturity | 64,700 | 9,319 | 151,790 |
Accounts receivable, net | 13,576 | 1,955 | 11,278 |
Amounts due from related parties | 1,823 | 263 | 1,847 |
Prepaid and other current assets, net | 153,867 | 22,161 | 156,104 |
Consideration receivable, net | 8,500 | 1,224 | 8,500 |
Total current assets | 616,527 | 88,797 | 682,624 |
Non-current assets: | |||
Property and equipment, net | 88,007 | 12,676 | 94,982 |
Land use rights, net | 1,892 | 273 | 1,937 |
Intangible assets, net | 94,708 | 13,641 | 103,394 |
Goodwill | 67,954 | 9,787 | 85,988 |
Prepayment for acquisition of property | 71,024 | 10,230 | 0 |
Deferred tax assets, net | 29,726 | 4,281 | 33,903 |
Other non-current assets, net | 6,357 | 916 | 5,097 |
Total non-current assets | 359,668 | 51,804 | 325,301 |
Total assets | 976,195 | 140,601 | 1,007,925 |
Current liabilities: | |||
Short-term borrowings (including consolidated VIE amount without recourse to the Company of RMB 2,300 and RMB nil as of December 31, 2015 and 2016, respectively) | 0 | 0 | 2,300 |
Deferred revenue (including consolidated VIE amount without recourse to the Company of RMB 105,559 and RMB 99,298 as of December 31, 2015 and 2016, respectively) | 109,484 | 15,769 | 115,886 |
Accounts payable (including consolidated VIE amount without recourse to the Company of RMB 17,663 and RMB 16,009 as of December 31, 2015 and 2016, respectively) | 26,738 | 3,851 | 28,391 |
Accrued and other liabilities (including consolidated VIE amount without recourse to the Company of RMB 210,413 and RMB 200,230 as of December 31, 2015 and 2016, respectively) | 372,821 | 53,697 | 367,357 |
Income taxes payable (including consolidated VIE amount without recourse to the Company of RMB 196,500 and RMB 198,176 as of December 31, 2015 and 2016, respectively) | 321,297 | 46,276 | 317,785 |
Amounts due to related parties (including consolidated VIE amount without recourse to the Company of RMB 7,662 and RMB 7,662 as of December 31, 2015 and 2016, respectively) | 7,662 | 1,104 | 7,662 |
Total current liabilities | 838,002 | 120,697 | 839,381 |
Non-current liabilities: | |||
Deferred tax liabilities (including consolidated VIE amount without recourse to the Company of RMB 25,721 and RMB 23,172 as of December 31, 2015 and 2016, respectively) | 23,172 | 3,337 | 25,721 |
Total liabilities | 861,174 | 124,034 | 865,102 |
Commitments and contingencies | |||
EQUITY | |||
Preferred shares (US$ 0.003 par value; 1,666,667 shares authorized, nil issued and outstanding as of December 31, 2015 and 2016) | 0 | 0 | 0 |
Ordinary shares (US$ 0.003 par value; 40,000,000 and 40,000,000 shares authorized, 38,265,177 and 38,699,095 shares issued and outstanding as of December 31, 2015 and 2016, respectively) | 726 | 105 | 717 |
Additional paid-in capital | 3,453,227 | 497,368 | 3,445,408 |
Statutory reserve | 81,007 | 11,667 | 81,005 |
Accumulated deficit | (3,424,149) | (493,180) | (3,388,447) |
Accumulated other comprehensive income | 5,705 | 822 | 5,113 |
Total Ambow Education Holding Ltd.’s equity | 116,516 | 16,782 | 143,796 |
Non-controlling interests | (1,495) | (215) | (973) |
Total equity | 115,021 | 16,567 | 142,823 |
Total liabilities and equity | ¥ 976,195 | $ 140,601 | ¥ 1,007,925 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015$ / shares |
Short-term borrowings | ¥ 0 | $ 0 | ¥ 2,300 | |
Deferred revenue | 109,484 | 15,769 | 115,886 | |
Accounts payable | 26,738 | 3,851 | 28,391 | |
Accrued and other liabilities | 372,821 | 53,697 | 367,357 | |
Income taxes payable | 321,297 | 46,276 | 317,785 | |
Amounts due to related parties | 7,662 | 1,104 | 7,662 | |
Deferred tax liabilities | ¥ 23,172 | $ 3,337 | ¥ 25,721 | |
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 | |
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.003 | $ 0.003 | ||
Ordinary shares, shares authorized | shares | 40,000,000 | 40,000,000 | 40,000,000 | |
Ordinary shares, shares issued | shares | 38,699,095 | 38,699,095 | 38,265,177 | |
Ordinary shares, shares outstanding | shares | 38,699,095 | 38,699,095 | 38,265,177 | |
Variable Interest Entity Primary Beneficiary [Member] | ||||
Short-term borrowings | ¥ 2,300 | |||
Deferred revenue | ¥ 99,298 | 105,559 | ||
Accounts payable | 16,009 | 17,663 | ||
Accrued and other liabilities | 200,230 | 210,413 | ||
Income taxes payable | 198,176 | 196,500 | ||
Amounts due to related parties | 7,662 | 7,662 | ||
Deferred tax liabilities | ¥ 23,172 | ¥ 25,721 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | ||
NET REVENUES | |||||
- Educational program and services | ¥ 412,016 | $ 59,343 | ¥ 395,715 | ¥ 411,998 | |
COST OF REVENUES | |||||
- Educational program and services | (238,742) | (34,386) | (245,945) | (274,036) | |
GROSS PROFIT | 173,274 | 24,957 | 149,770 | 137,962 | |
OPERATING EXPENSES | |||||
Selling and marketing | (41,818) | (6,023) | (55,511) | (80,377) | |
General and administrative | (145,513) | (20,958) | (280,634) | (508,544) | |
Research and development | (7,572) | (1,091) | (7,308) | (12,259) | |
Impairment loss | (22,402) | (3,227) | (162,351) | (292,577) | |
Total operating expenses | (217,305) | (31,299) | (505,804) | (893,757) | |
OPERATING LOSS | (44,031) | (6,342) | (356,034) | (755,795) | |
OTHER INCOME (EXPENSE) | |||||
Interest income (expense), net | 5,941 | 856 | (51,015) | (121,794) | |
Loss from extinguishment of debt | 0 | 0 | 0 | (143,901) | |
Foreign exchange gain (loss), net | 84 | 12 | (183) | (580) | |
Other income (loss), net | 2,570 | 370 | 486 | (8,989) | |
Income on reconsolidation of previously deconsolidated entities | 0 | 0 | 14,127 | 0 | |
Gain on disposal of subsidiary | 0 | 0 | 0 | 7,403 | |
(Loss) gain on sale of investment available for sale | 4,329 | 624 | (2,786) | 0 | |
Total other (expenses) income | 12,924 | 1,862 | (39,371) | (267,861) | |
LOSS BEFORE INCOME TAX, NON-CONTROLLING INTERESTS, AND DISCONTINUED OPERATIONS | (31,107) | (4,480) | (395,405) | (1,023,656) | |
Income tax (expense) benefit | (5,911) | (851) | 118,963 | (1,135) | |
LOSS FROM CONTINUING OPERATIONS | (37,018) | (5,331) | (276,442) | (1,024,791) | |
(Loss) income on and from sale of discontinued operations, net of income tax | 0 | 0 | 340,798 | (57,764) | |
NET (LOSS) INCOME | (37,018) | (5,331) | 64,356 | (1,082,555) | |
Less: Net (loss) income attributable to non-controlling interests from continuing operations | (1,318) | (190) | 606 | (6,244) | |
Less: Net income attributable to non-controlling interests from discontinued operations | 0 | 0 | 11 | 502 | |
NET (LOSS) INCOME ATTRIBUTABLE TO AMBOW EDUCATION HOLDING LTD. | (35,700) | (5,141) | 63,739 | (1,076,813) | |
NET (LOSS) INCOME | (37,018) | (5,331) | 64,356 | (1,082,555) | |
OTHER COMPREHENSIVE INCOME, NET OF TAX | |||||
Foreign translation adjustments | (1,160) | (167) | 7,869 | 12,137 | |
Unrealized gains on short term investments available for sale, net of tax effect of RMB nil, RMB 328 and RMB 584 for years ended December 31, 2014, 2015 and 2016, respectively | 1,752 | 252 | 984 | 0 | |
Other comprehensive income | 592 | 85 | 8,853 | 12,137 | |
TOTAL COMPREHENSIVE (LOSS) INCOME | ¥ (36,426) | $ (5,246) | ¥ 73,209 | ¥ (1,070,418) | |
COMPREHENSIVE LOSS | |||||
Net loss from continuing operations per share - basic and diluted | (per share) | [1] | ¥ (0.93) | $ (0.13) | ¥ (7.52) | ¥ (73.13) |
Net (loss) income from discontinued operations per share - basic and diluted | (per share) | [1] | ¥ 0 | $ 0 | ¥ 9.25 | ¥ (4.18) |
Weighted average shares used in calculating basic and diluted net income (loss) per share | [1] | 38,469,234 | 38,469,234 | 36,848,816 | 13,928,048 |
Share-based compensation expense included in: | |||||
Share-based compensation expense | ¥ 7,828 | $ 1,127 | ¥ 50,117 | ¥ 157,365 | |
Selling and Marketing Expense [Member] | |||||
Share-based compensation expense included in: | |||||
Share-based compensation expense | 0 | 0 | 457 | 351 | |
General and Administrative Expense [Member] | |||||
Share-based compensation expense included in: | |||||
Share-based compensation expense | 7,828 | 1,127 | 49,371 | 156,870 | |
Research and Development Expense [Member] | |||||
Share-based compensation expense included in: | |||||
Share-based compensation expense | ¥ 0 | $ 0 | ¥ 289 | ¥ 144 | |
[1] | All per share amounts and shares outstanding for all periods have been retroactively restated to reflect Ambow Education Holding Ltd.’s 1 for 30 reverse stock split, which was effective on September 4, 2015. |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unrealized gains on short term investments available for sale, tax | ¥ 584 | ¥ 328 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Huang [Member]CNY (¥) | Management [Member]New Flourish Holdings Limited [Member]CNY (¥) | Ordinary shares [Member]CNY (¥)shares | Ordinary shares [Member]Huang [Member]CNY (¥) | Ordinary shares [Member]Management [Member]New Flourish Holdings Limited [Member]CNY (¥) | Additional paid-in capital [Member]CNY (¥) | Additional paid-in capital [Member]Huang [Member]CNY (¥) | Additional paid-in capital [Member]Management [Member]New Flourish Holdings Limited [Member]CNY (¥) | Statutory reserves [Member]CNY (¥) | Statutory reserves [Member]Huang [Member]CNY (¥) | Statutory reserves [Member]Management [Member]New Flourish Holdings Limited [Member]CNY (¥) | Retained Earnings (Accumulated deficit) [Member]CNY (¥) | Retained Earnings (Accumulated deficit) [Member]Huang [Member]CNY (¥) | Retained Earnings (Accumulated deficit) [Member]Management [Member]New Flourish Holdings Limited [Member]CNY (¥) | Accumulated other comprehensive income (deficit) [Member]CNY (¥) | Accumulated other comprehensive income (deficit) [Member]Huang [Member]CNY (¥) | Accumulated other comprehensive income (deficit) [Member]Management [Member]New Flourish Holdings Limited [Member]CNY (¥) | Non-controlling Interest [Member]CNY (¥) | Non-controlling Interest [Member]Huang [Member]CNY (¥) | Non-controlling Interest [Member]Management [Member]New Flourish Holdings Limited [Member]CNY (¥) | |
Balance at Dec. 31, 2013 | ¥ 397,723 | ¥ 122 | ¥ 2,706,621 | ¥ 80,731 | ¥ (2,375,099) | ¥ (15,877) | ¥ 1,225 | ||||||||||||||||
Balance (in shares) at Dec. 31, 2013 | shares | [1] | 5,892,554 | |||||||||||||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||||||||||||
Beneficial conversion feature related to convertible loans | 302,765 | 302,765 | |||||||||||||||||||||
Conversion of convertible loans to ordinary shares | 226,298 | ¥ 462 | 225,836 | ||||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | shares | [1] | 25,182,076 | |||||||||||||||||||||
Shares surrendered by SummitView | (67,309) | ¥ (10) | (67,299) | ||||||||||||||||||||
Shares surrendered by SummitView (in shares) | shares | [1] | (537,797) | |||||||||||||||||||||
Share-based compensation | 8,694 | ¥ 54,311 | ¥ 94,360 | 8,694 | ¥ 54,311 | ¥ 94,360 | |||||||||||||||||
Appropriation to statutory reserves | 418 | (418) | |||||||||||||||||||||
Foreign currency translation adjustment | (379) | (379) | |||||||||||||||||||||
Deconsolidation of subsidiaries | 10,507 | (372) | 372 | 10,507 | |||||||||||||||||||
Disposal of subsidiaries | 2,009 | 2,009 | |||||||||||||||||||||
Non-controlling interests from new established subsidiaries | 270 | 270 | |||||||||||||||||||||
Net (loss) income | (1,082,555) | (1,076,813) | (5,742) | ||||||||||||||||||||
Balance at Dec. 31, 2014 | (53,306) | ¥ 574 | 3,325,288 | 80,777 | (3,451,958) | (3,740) | (4,247) | ||||||||||||||||
Balance (in shares) at Dec. 31, 2014 | shares | [1] | 30,536,833 | |||||||||||||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||||||||||||
Conversion of convertible loans to ordinary shares | 70,146 | ¥ 134 | 70,012 | ||||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | shares | 7,244,013 | ||||||||||||||||||||||
Shares surrendered by SummitView | |||||||||||||||||||||||
Share-based compensation | 50,117 | 50,117 | |||||||||||||||||||||
Issuance of ordinary shares for restricted stock award | ¥ 9 | (9) | |||||||||||||||||||||
Issuance of ordinary shares for restricted stock award (in shares) | shares | 484,331 | ||||||||||||||||||||||
Appropriation to statutory reserves | 228 | (228) | |||||||||||||||||||||
Foreign currency translation adjustment | (1,215) | (1,215) | |||||||||||||||||||||
Disposal of subsidiaries | 14,929 | 9,084 | 5,845 | ||||||||||||||||||||
Capital injection from minority shareholders | 163 | 163 | |||||||||||||||||||||
Unrealized gain on investment, net of income taxes | 984 | 984 | |||||||||||||||||||||
Non-controlling interests from reconsolidation of previously deconsolidated entities | (3,351) | (3,351) | |||||||||||||||||||||
Net (loss) income | 64,356 | 63,739 | 617 | ||||||||||||||||||||
Balance at Dec. 31, 2015 | 142,823 | ¥ 717 | 3,445,408 | 81,005 | (3,388,447) | 5,113 | (973) | ||||||||||||||||
Balance (in shares) at Dec. 31, 2015 | shares | 38,265,177 | ||||||||||||||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||||||||||||
Shares surrendered by SummitView | |||||||||||||||||||||||
Share-based compensation | 7,828 | 7,828 | |||||||||||||||||||||
Issuance of ordinary shares for restricted stock award | ¥ 9 | (9) | |||||||||||||||||||||
Issuance of ordinary shares for restricted stock award (in shares) | shares | 433,918 | ||||||||||||||||||||||
Appropriation to statutory reserves | 2 | (2) | |||||||||||||||||||||
Foreign currency translation adjustment | (1,160) | (1,160) | |||||||||||||||||||||
Capital injection from minority shareholders | 796 | 796 | |||||||||||||||||||||
Unrealized gain on investment, net of income taxes | 1,752 | 1,752 | |||||||||||||||||||||
Net (loss) income | (37,018) | (5,331) | (35,700) | (1,318) | |||||||||||||||||||
Balance at Dec. 31, 2016 | ¥ 115,021 | $ 16,567 | ¥ 726 | ¥ 3,453,227 | ¥ 81,007 | ¥ (3,424,149) | ¥ 5,705 | ¥ (1,495) | |||||||||||||||
Balance (in shares) at Dec. 31, 2016 | shares | 38,699,095 | ||||||||||||||||||||||
[1] | All per share amounts and shares outstanding for all periods have been retroactively restated to reflect Ambow Education Holding Ltd.’s 1 for 30 reverse stock split, which was effective on September 4, 2015. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Cash flows from operating activities | ||||
Net (loss) income | ¥ (37,018) | $ (5,331) | ¥ 64,356 | ¥ (1,082,555) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||
Depreciation and amortization | 24,997 | 3,599 | 45,690 | 86,599 |
Share-based compensation expense | 7,828 | 1,127 | 50,117 | 157,365 |
Bad debt provision | 1,727 | 249 | 42,960 | 151,080 |
Foreign exchange loss (gain), net | (84) | (12) | 183 | 580 |
Impairment loss | 22,402 | 3,227 | 162,351 | 292,577 |
Deferred income tax | 1,030 | 148 | (128,818) | (28,132) |
Disposal gain from subsidiaries | 0 | 0 | (343,912) | (7,403) |
Disposal loss from property and equipment | 534 | 77 | 536 | 1,347 |
Loss in extinguishment of debt | 0 | 0 | 0 | 143,901 |
Interest expense | 0 | 0 | 56,549 | 121,794 |
Loss from equity method investment | 10 | 1 | 0 | 0 |
Income on reconsolidation of previously deconsolidated entities | 0 | 0 | (14,127) | 0 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (2,298) | (331) | (3,513) | 25,326 |
Prepaid and other current assets | 510 | 73 | (18,203) | (64,976) |
Amounts due from related parties | 24 | 3 | 933 | (2,780) |
Other non-current assets | (189) | (27) | (625) | 10,201 |
Accounts payable | (1,653) | (238) | (1,925) | 393 |
Accrued and other liabilities | 2,605 | 375 | 34,400 | (18,472) |
Income tax payable | 3,512 | 506 | 6,902 | 11,159 |
Deferred revenue | (6,402) | (922) | 8,800 | 39,799 |
Amounts due to related parties | 0 | 0 | (2,773) | 1,830 |
Net cash (used in) provided by operating activities | 17,535 | 2,524 | (40,119) | (160,367) |
Cash flows from investing activities | ||||
Purchase of available-for-sale investments | (442,790) | (63,775) | (216,860) | 0 |
Redemption from available-for-sale investments | 373,917 | 53,855 | 114,570 | 0 |
Purchase of held-to-maturity investments | (651,470) | (93,831) | (527,870) | 0 |
Maturity and redemption from held-to-maturity investments | 738,560 | 106,375 | 376,080 | 0 |
Placement of term deposits | 0 | 0 | 0 | (10,223) |
Maturity of term deposits | 1,150 | 166 | 9,850 | 0 |
Prepayment for acquisition of property | (71,024) | (10,230) | 0 | 0 |
Purchase of property and equipment | (7,442) | (1,072) | (7,612) | (6,453) |
Prepayment for leasehold improvement | (3,854) | (555) | (4,265) | (8,127) |
Proceeds from disposal of property and equipment | 0 | 0 | 943 | 555 |
Purchase of intangible assets | (1,225) | (176) | 0 | 0 |
Purchase of subsidiaries (including cash payment in relation to prior acquisitions), net of cash acquired | 0 | 0 | (14,000) | 0 |
Payment for equity method investment | (1,040) | (150) | 0 | 0 |
Cash balance of deconsolidated entities | 0 | 0 | 0 | (531) |
Proceed from disposal of subsidiaries, net of cash balance at disposed entities | 0 | 0 | 287,378 | 135,000 |
Proceed from transferring financial assets | 0 | 0 | 40,000 | 0 |
Net cash provided by (used in) investing activities | (65,218) | (9,393) | 58,214 | 110,221 |
Cash flows from financing activities | ||||
Proceeds from minority shareholder capital injection | 796 | 115 | 163 | |
Proceeds from issuing convertible loan | 50,000 | 109,330 | ||
Proceeds from short-term borrowings | 2,300 | 54,403 | ||
Repayments of short-term borrowings | (2,300) | (331) | (39,633) | (77,000) |
Proceeds from issuance of shares upon of exercise of share options | 270 | |||
Net cash provided by (used in) financing activities | (1,504) | (216) | 12,830 | 87,003 |
Changes in cash, cash equivalents and restricted cash included in assets held for sale | 38,063 | 43,870 | ||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | 84 | 12 | (2,968) | 404 |
Net change in cash, cash equivalents and restricted cash | (49,103) | (7,073) | 66,020 | 81,131 |
Cash, cash equivalents and restricted cash at beginning of year | 248,353 | 35,770 | 182,333 | 101,202 |
Cash, cash equivalents and restricted cash at end of year | 199,250 | 28,697 | 248,353 | 182,333 |
Supplemental disclosure of cash flow information | ||||
Income tax paid | (1,369) | (197) | (1,659) | (2,379) |
Interest paid | (115) | (17) | (14,316) | (11,864) |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Conversion of convertible loan to ordinary shares and waiver of related accrued interest expenses | 70,146 | 226,298 | ||
Shares surrendered by SummitView | 67,309 | |||
Receipt of convertible loan by settlement of debt | 80,000 | |||
Purchase of property and equipment financed by accounts payable and other payables | 13,037 | |||
Waiver of payables in connection with disposal of subsidiaries | 4,483 | |||
Waiver of receivables in connection with disposal of subsidiaries | 18,195 | |||
Outstanding receivables in connection with disposal of subsidiaries | ¥ 70,000 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2016 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | a. Background The accompanying 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”. The Company was incorporated in the Cayman Islands on June 26, 2007. Pursuant to group reorganization in February 2005 and a share exchange agreement in July 2007, the Company became the ultimate parent company of the Group. On August 5, 2010, the Company and certain selling shareholders of the Company (the “Selling Shareholders”) completed its initial public offering of 355,907 300.0 6,558 22.5 19,673 362 In 2008, 2009, 2011 and 2012, the Group acquired different entities, and by the end of 2013, 22 operational entities remained. The Group conducted a restructuring that occurred in May 2014 by taking a loan facility from China Education Investment Holding Limited (“CEIHL”) which converted principal outstanding into economic interest in the Company. Please refer to Note 15 Second Amendment for details. The Group deconsolidated Jilin Clever Training School (“Jilin Tutoring”) on September 2014. Please refer to Note 26 for details. On September 5, 2014, US$ 31,692 16,716,954 5,678,963 2,786,159 5,000 6,308 5,000 4,457,854 2,786,159 On April 8, 2015, the Group disposed all of the 100 64 On September 4, 2015, the Company effected a 1-for- 30 The Company established Ambow Rongye Education and Technology Co., Ltd. (“Ambow Rongye”) and Ambow Zhixin Education and Technology Co., Ltd. (“Ambow Zhixin”) on September 8, 2015 and October 14, 2015, respectively. Ambow Rongye and Ambow Zhixin were VIEs of Beijing Ambow Shengying Education and Technology Co., Ltd. (“Ambow Shengying”). On October 31, 2015, 100 By December 31, 2015, the Company regained control over the previously deconsolidated subsidiaries, Tianjin Ambow Huaying Education Technology Co., Ltd., which owns the 100 The Company established Suzhou Ambow Jiaxue Education and Investment Co., Ltd. (“Suzhou Jiaxue”) on January 21, 2016. Ambow Zhixin holds 60 60 100 b. Nature of operations The Group is a national provider of educational and career enhancement services in the People’s Republic of China (“PRC”). 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. c. Major subsidiaries and VIEs Name Date of incorporation or establishment Place of Incorporation (or establishment) /operation Principal activity Subsidiaries Beijing Ambow Online Software Co., Ltd. (“Ambow Online”) August 24, 2000 PRC Software product and Investment holding Ambow Education Co., Ltd. January 25, 2005 Cayman Islands Investment holding Ambow Education Ltd. June 6, 2007 Cayman Islands Investment holding Ambow Education (Hong Kong) Ltd. December 17, 2007 Hong Kong Investment holding Beijing Ambow Chuangying Education and Technology Co., Ltd. January 18, 2008 PRC Investment holding Wenjian Gongying Venture Investment Enterprise July 20, 2009 PRC Investment holding Ambow (Dalian) Education and Technology Co., Ltd. March 10, 2009 PRC Career enhancement and Investment holding Ambow Education Management (Hong Kong ) Ltd. November 9, 2009 Hong Kong Investment holding Name Date of incorporation or establishment Place of Incorporation (or establishment) /operation Principal activity Ambow Education Management Ltd. June 6, 2007 Cayman Islands Investment holding Ambow Shengying October 13, 2008 PRC Investment holding Tianjin Ambow Yuhua Software Information Co., Ltd. (“Ambow Yuhua”) March 31, 2010 PRC Software product and Investment holding Ambow University Inc. July 5, 2016 United States Investment holding Variable interest entities ( “ VIEs ) Beijing Normal University Ambow Education Technology Co., Ltd. (“Ambow Shida”) July 30, 2004 PRC Investment holding Shanghai Ambow Education Information Consulting Co., Ltd. (“Ambow Shanghai”) May 16, 2006 PRC Investment holding Ambow Sihua April 17, 2007 PRC Investment holding Suzhou Wenjian Venture Investment Management Consulting Co., Ltd. (“Suzhou Wenjian”) February 25, 2009 PRC Investment holding Ambow Rongye September 8, 2015 PRC Investment holding Ambow Zhixin October 14, 2015 PRC Investment holding Name Date of incorporation or establishment Place of Incorporation (or establishment) /operation Principal activity Subsidiaries of VIEs Jinan Wangrong Investment Consulting Co., Ltd. May 21,2010 PRC Career Enhancement Hebei Yuanlong Corporate Management Co., Ltd. (“Hebei YL Career Enhancement”) January 13, 2011 PRC Career Enhancement Beijing Genesis Education Group (“Genesis Career Enhancement”) May 1, 2011 PRC Career Enhancement Changsha Newer Education Consulting Co., Ltd. (“Changsha Career Enhancement”) September 16, 2002 PRC Career Enhancement Kunshan Ambow August 28, 2008 PRC Career Enhancement Shanghai Hero Further Education Institute January 9, 2009 PRC Career Enhancement Beijing Century Tutoring April 1, 2002 PRC Tutoring Beijing Ambow Dacheng Education and Technology Co., Ltd. December 2, 2013 PRC Career Enhancement Shanghai Tongguo Education Technology Co., Ltd (“Shanghai Tongguo”) June 1, 2014 PRC Career Enhancement Suzhou Jiaxue January 21, 2016 PRC Career Enhancement Huanyu Liren April 27, 2016 PRC Career Enhancement Name Date of incorporation or establishment Place of Incorporation (or establishment) /operation Principal activity Schools of VIEs Changsha Study School (“Changsha Tutoring”) June 1, 1984 PRC Tutoring Beijing YZ Tutoring December 30, 1994 PRC Tutoring Hunan Changsha Tongsheng Lake Experimental School (“Changsha K-12”) June 18, 1999 PRC K-12 School Shenyang Universe High School (“Shenyang K-12”) December 8, 2003 PRC K-12 School Shuyang Galaxy School (“Shuyang K-12”) November 1, 2008 PRC K-12 School Beijing Haidian Ambow Xinganxian Training School March 28, 2005 PRC Tutoring Beijing Huairou Xinganxian Training School March 10, 2011 PRC Tutoring The names of certain schools or companies referred to above represent management’s best effort in translating the Chinese names of these entities as no English names for these entities have been registered. d. VIE arrangements VIEs of the Company PRC regulations restrict foreign owned companies from directly investing in certain businesses providing educational services in PRC. In order to comply with these regulations the Company, through its PRC subsidiaries, the Company has entered into exclusive technical consulting and service agreements (the “Service Agreements”) with a number of VIEs in PRC, which are able to provide such educational services. The shareholders of the VIEs, through share pledge agreements, have pledged all of their rights and interests in the VIEs, including voting rights and dividend rights, to the Company or its subsidiaries as collateral for their obligation to perform in accordance with the Service Agreements. Further, the shareholders of the VIEs, through exclusive call option agreements, granted to the Company or its subsidiaries an exclusive, irrevocable and unconditional right to purchase part or all of the equity interests in the VIEs for an amount equal to the original cost of their investment should the purchase become permissible under the relevant PRC law. Through the contractual agreements described above, the following companies: Ambow Shida, Ambow Shanghai, Ambow Sihua, Suzhou Wenjian, Ambow Rongye and Ambow Zhixin are considered to be VIEs in accordance with US GAAP for the following reasons: ⋅ Shareholders of the VIEs lack the right to receive any expected residual returns from the VIEs; ⋅ Shareholders of VIEs lack the ability to make decisions about the activities of the VIEs that have a significant effect on their operation; and ⋅ Substantially all of the VIEs’ businesses are conducted on behalf of the Company or its subsidiaries. Through the equity pledge arrangements, call option agreements and powers of attorney with the shareholders of VIEs, the Company controls decisions in relation to the operations of the VIEs, VIE’s subsidiaries and schools controlled. Specifically, the Company can make the following decisions which most significantly affect the economic performance of the VIEs: ⋅ The Company has the power to appoint the members of the VIE’s board of directors and senior management as a result of the powers of attorney; ⋅ The Company is closely involved in the daily operation of the VIE via appointing management personnel such as VP and other staff to oversee the operation of the VIEs; ⋅ Generally, the VIE’s board of directors and senior management may (1) modify the articles of the schools / centers; (2) approve the department structure of the schools / centers, and (3) approve the division, combination, termination of the schools / centers; ⋅ T he principals of the schools are involved in curriculum design, course delivery, hiring teachers, student recruitment, and approving school budgets and monthly spending plan; and ⋅ The principals sign significant contracts on behalf of the schools / training centers such as service arrangement, leasing contract etc. Further, the Company is also able to make the following decisions that enable it to receive substantially all of the economic returns from the VIEs: ⋅ The Company has the exclusive right to provide management / consulting services to VIEs. Given the Company controls the VIE’s board of directors, the Company has the discretion to set the service fees which enable the Company to extract the majority of the profits from the Company; ⋅ The Company has the right to renew the service contracts indefinitely, which ensures the Company will be able to extract profits on a perpetual basis; and The Company, either directly or through its subsidiaries, is the primary beneficiary of the VIEs because it holds all the variable interests in the VIEs. As a result, the accounts and operations of the VIEs and their subsidiaries are included in the accompanying consolidated financial statements. Other than the contractual control arrangements as disclosed, the Group’s officers, directors or shareholders do not have any written or oral agreement with the VIE shareholders. Subsidiaries of the VIEs The Company conducts education business in PRC primarily through contractual arrangements among the Group’s subsidiaries in PRC and VIEs. The Group’s VIEs have power over the activities of subsidiaries (mainly including schools and centers) through their role as the registered sponsors of schools or controlling shareholders of corporate centers. The VIEs control the equity in these schools and are also entitled to the economic benefits from the schools. The schools and centers, which are controlled by the VIEs, hold the necessary business and education licenses or permits to perform education activities. The schools and centers also sign all significant contracts, including leases, relating to the performance of these activities. In addition, the responsibilities of the schools and centers, under the direction of the VIEs and Company’s management (through the power invested in them by the VIEs) include the following: · Providing suitable facilities to house staff and deliver courses to students; · Designing an appropriate curriculum for the delivery of courses, in accordance with the Ministry of Education (“MOE”), or the MOE stipulations, where applicable; · Hiring, training and terminating the employment of teachers and other support staff to run the schools and centers; and · Selecting and recruiting students, in accordance with the Company’s entry requirements and to maximize the usage of capacity. Based on the nature of schools, the Company has categorized the schools into two categories, and applies the voting interest model when consolidating the schools requiring reasonable returns and applies the VIE model when consolidating the schools not requiring reasonable returns. For the schools requiring reasonable returns, the VIEs have a 100% equity interest in the schools, which allows them to make key operating decisions on behalf of the schools. Therefore, the Company through the VIEs consolidates the schools applying voting interest model. According to the Private Education Promotion Law, which regulates the education industry in China, schools not requiring reasonable returns are prohibited from distributing annual dividends. The Company through the VIEs has the power to direct the schools’ most significant activities for as long as the VIEs remain the equity holders of the schools and has the obligation to absorb operating losses and the rights to receive the schools’ expected residual returns. The Company is able to extract profits through technical service agreements / software agreements. Therefore, the Company through the VIEs is the primary beneficiary of the schools not requiring reasonable returns and consolidates them under the VIE model. Aggregation of VIEs The Company identifies and aggregates its subsidiaries and VIEs with similar nature for consolidation and reporting purpose. The VIEs and their schools and centers have very similar characteristics and are facing similar kinds/levels of risks: ⋅ The principal business of the VIEs are sponsors of the schools and centers, or the controlling shareholders of the companies which are the sponsors of the schools and centers; ⋅ All the schools of the VIEs require licenses from MOE (or commercial and business regulators if they are registered as companies); ⋅ The schools and centers, in addition to holding the business/education licenses, have to operate by conducting all necessary activities, including but not limited to, acquiring and provisioning of appropriate facilities, hiring and management of teachers and supporting staff, recruitment of students and course/training delivery; ⋅ The schools and centers operated their business in the education industry and hence subject to the regulations and risks associated with the industry; and ⋅ The VIEs, schools and centers are all registered and located in PRC. As such, they are facing similar risks in related to governmental, economic and currency. In addition, the Company enters into different contractual agreements with the six VIEs but these agreements are of similar format and structure. Therefore, the contract risk, if any, arising from the contractual relationship with the VIEs is also similar. As a result, the Company considers it is appropriate to, according to ASC 810, aggregate all these VIEs together for reporting in the periodic financial statements. Risk in relation to the VIE structure There are substantial uncertainties regarding the interpretation and application of PRC laws and regulations, including those that govern the Group’s VIE contractual arrangements. If the Group’s ownership structure and contractual arrangements are found to be in violation of any existing or future PRC laws or regulations, the relevant regulatory authorities would have broad discretion in dealing with such violation, including (i) revoking the business and operating licenses of the Company’s PRC subsidiaries and VIEs; (ii) discontinuing or restricting the operations of any related-party transactions among the Company’s PRC subsidiaries and VIEs; (iii) imposing fines or other requirements with which the Group or the Company’s PRC subsidiaries and VIEs may not be able to comply; (iv) revoking the preferential tax treatment enjoyed by the Company’s PRC subsidiaries and VIEs; (v) requiring the Group or the Company’s PRC subsidiaries and VIEs to restructure the ownership structure or operations. If any of the above penalties is imposed on the Group, the Group’s business operations and expansion, financial condition and results of operations will be materially and adversely affected. The new issued “The foreign investment law draft” as at January 19, 2015 will require the Group to apply access permit under the new foreign investment access system to ratify whether the Group’s subsidiaries and operations are already out of the fields of prohibited and restricted foreign investments. However, if not, the above draft law did not give any definite solution and the risk in revoking the current business and operating licenses would be low. Furthermore, “The foreign investment law” is to set up a new law not to revise any of the other laws, so it would spend more time from its consultation to final, so at least during this period, the Group’s VIE contractual arrangements will be legal. The Company’s operations depend on the VIEs and their respective shareholders to honor their contractual agreements with the Company. All of these agreements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC. The management believes that the VIE agreements are in compliance with PRC law and are legally enforceable. However, the interpretation and implementation of the laws and regulations in the PRC and their application to the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual agreements. Meanwhile, since the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Company to enforce the contractual arrangements should the VIEs or their shareholders fail to perform their obligation under those arrangements. In addition, if the Company is unable to maintain effective control over its VIEs, the Company would not be able to continue to consolidate the Group’s VIEs’ financial results with its financial results. The Company’s ability to conduct its education business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may not be able to consolidate Ambow Shanghai, Ambow Shida, Ambow Sihua, Suzhou Wenjian, Ambow Rongye and Ambow Zhixin, their respective schools and subsidiaries in its consolidated financial statements as it may lose the ability to exert effective control over these entities and their respective schools and subsidiaries and their shareholders, and it may lose the ability to receive economic benefits from these respective entities, schools and subsidiaries. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, the subsidiaries or the VIEs, and believes that the risk of losing the ability to maintain effective control over its VIEs is remote. Currently there are no contractual arrangements that could require the Company to provide additional financial support to the VIEs. As the Company is conducting its PRC educational and career enhancement services through the VIEs and their subsidiaries, the Company may provide such support on a discretional basis in the future, which could expose the Company to a loss. Financial information of the VIEs and their subsidiaries/schools: The combined financial information of the Group’s VIEs and, as applicable, subsidiaries/schools of the Group’s VIEs was included in the accompanying consolidated financial statements of the Group as follows: As of December 31, 2015 2016 RMB RMB Total assets 718,514 773,436 Total liabilities 565,818 544,547 Years ended December 31, 2014 2015 2016 RMB RMB RMB Net revenue 403,643 385,819 409,391 Net income (loss) (550,911) 370,818 (12,805) The following table sets forth cash and cash equivalents held by the Group’s VIEs and non-VIE in PRC by RMB currency as of December 31, 2015 and 2016: As of December 31, 2015 2016 RMB RMB VIEs in PRC 125,850 173,772 Non-VIEs in PRC 109,820 19,425 Total RMB 235,670 193,197 |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2016 | |
GOING CONCERN [Abstract] | |
GOING CONCERN | 2. GOING CONCERN Liquidity and Capital Resources The Group reported a net loss of RMB 276,442 37,018 205,311 56,549 22,402 1,727 The Group’s principal sources of liquidity have been cash provided by operating activities. As of December 31, 2016, the Group had RMB 196,900 173,772 221,475 115,021 118,727 17,622 Management plan and actions The Group had approximately RMB 174,811 64,700 Historically, the Group has addressed liquidity requirements through a series of cost reduction initiatives, debt borrowings and the sale of subsidiaries and other non-performing assets. From 2017 and onwards, the Group will focus on improving operation efficiency and cost reduction, developing core cash-generating business and enhancing marketing function. Actions include expanding Financial Share Service Centers across the Group wide and standardizing the Group’s Finance and Operation Policies throughout the Group; as well as implementing ERP systems to standardize operations, enhance internal controls, and create synergy of the Group’s resources. 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, curtailing the Group’s business development activities, suspending the pursuit of its business plan, 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 | 12 Months Ended |
Dec. 31, 2016 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES a. Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). All amounts in the accompanying 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 6.9430 As mentioned in Note 1 (a) and Note 24, Jinghan Group have been disposed in 2015 and its operations have been classified as discontinued operations for the years ended December 31, 2014 and 2015. The disposal of Jinghan Group has been completed by April 8, 2015. b. Comparability due to discontinued operations and reclassification adjustment Certain accounts in the consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2014 and related notes have been retrospectively adjusted to reflect the effect of discontinued operations. See Note 24 for details of discontinued operations. The results of discontinued operations in 2014 and 2015 have been reflected separately in the consolidated statement of operations as a single line item for all periods presented in accordance with U.S. GAAP. Cash flows from discontinued operations for the years ended December 31, 2014 and 2015 were combined with the cash flows from continuing operations within each of the three categories. c. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liabilities. On an on-going basis, the Group evaluates its estimates, including those related to the useful lives of long-lived assets including property and equipment, stock-based compensation, impairment of goodwill and other intangible assets, income taxes, provision for doubtful accounts and contingencies. The Group bases its estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, when these carrying values are not readily available from other sources. Actual results may differ from these estimates. d. Basis of consolidation All significant inter-company transactions and balances have been eliminated upon consolidation. Non-controlling interests represent the equity interests in the Company’s subsidiaries and VIEs that are not attributable, either directly or indirectly, to the Company. The consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIEs. The Company deconsolidates a subsidiary or derecognizes a group of assets as of the date the Company ceases to have a controlling financial interest in that subsidiary or group of assets. In 2013, the Group deconsolidated 3 e. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash in bank with no restrictions, as well as highly liquid investments which are unrestricted as to withdrawal or use, and which have remaining maturities of three months or less when initially purchased. f. Restricted cash Restricted cash relates to special deposit accounts required by the Education Commission for the purpose of preventing abusive use of tuition and fees of educational and training institutions. g. Term deposits Term deposits consist of bank deposits with an original maturity of between three to twelve months. h. Short term investments Short term investments consist of held-to-maturity investments and available-for-sale investments. The Group’s held-to-maturity investments consist of financial products purchased from banks. The Group’s short-term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. Investments classified as available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are reported net of tax in accumulated other comprehensive income until realized. The Group reviews its investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Group’s intent and ability to hold the investment. OTTI is recognized as a loss in the income statement. i. Accounts receivable Accounts receivable mainly represent the amounts due from the customers or students of the Company’s various subsidiaries and VIEs. j. Allowance for doubtful accounts An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable based on an assessment of specific evidence indicating doubtful collection, historical experience, account balance aging and prevailing economic conditions. Doubtful accounts balances are written off and deducted from allowance, when receivable are deemed uncollectible, after all collection efforts have been exhausted and the potential for recovery is considered remote. k. Land use rights Land use rights are recorded at cost less accumulated amortization. Amortization is provided on straight-line basis over the useful life of land use right. l. Property and equipment Property and equipment is stated at cost less accumulated depreciation. Buildings 20 40 Motor vehicles 5 Office and computer equipment 3 5 Leasehold improvements Shorter of the remaining lease terms or estimated useful lives m. Intangible assets Intangible assets represent software, trade name, student population, corporative agreement, customer relationship, favorable lease, non-compete agreement. The software was initially recorded at historic acquisition costs or cost directly incurred to develop the software during the application development stage that can provide future benefits, and amortized on a straight-line basis over estimated useful lives. Other finite lived intangible assets are initially recorded at fair value when acquired in a business combination, in which the finite intangible assets are amortized on a straight-line basis except student populations and customer relationships which are amortized using an accelerated method to reflect the expected departure rate over the remaining useful life of the asset. The Group reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. Software 2 10 Student populations 1.8 15 Customer relationships 5.7 Cooperative agreements 1.3 10 Favorable leases 0.8 20 Non-compete agreements 3 4.5 Trade names Indefinite The Group has determined that trade names have the continued ability to generate cash flows indefinitely. There are no legal, regulatory, contractual, economic or other factors limiting the useful life of the respective trade names. Consequently, the carrying amounts of trade names are not amortized but are tested for impairment annually in the fourth quarter or more frequently if events or circumstances indicate that the assets may be impaired. Such impairment test consists of a comparison of the fair values of the trade names with their carrying amounts and an impairment loss is recognized if and when the carrying amounts of the trade names exceed their fair values. The Group performed impairment testing of indefinite-lived intangible assets in accordance with ASC 350, which requires an entity to evaluate events and circumstances that may affect the significant inputs used to determine the fair value of the indefinite-lived intangible assets when performing qualitative assessment. When these events occur, the Group estimates the fair value of these trade names with the Relief from Royalty method (“RFR”), which is one of the income approaches. RFR method is generally applied for assets that frequently licensed in exchange for royalty payments. As the owner of the asset is relieved from paying such royalties to a third party for using the asset, economic benefit is reflected by notional royalty savings. An impairment loss is recognized for any excess in the carrying value over the fair value of trade names. n. Segments The Group evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Group evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Group determines if the segments are economically similar and, if so, the operating segments are aggregated. The Group has three reportable segments in 2014, 2015 and 2016. For further details, see Note 21. o. Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination or an acquisition by an entity that are not individually identified and separately recognized. Goodwill acquired in a business combination is tested for impairment at least annually or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The Group performed impairment analysis on goodwill as of September 30 every year either beginning with a qualitative assessment, or starting with the quantitative two-step process instead. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. A reporting unit constitutes a business for which discrete profit and loss financial information is available. The fair value of each reporting unit is established using a combination of expected present value of future cash flows. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Determining when to test for impairment, the Group’s reporting units, the fair value of a reporting unit and the fair value of assets and liabilities within a reporting unit, requires judgment and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions and determination of appropriate market comparable. The Group bases fair value estimates on assumptions it believes to be reasonable but that are unpredictable and inherently uncertain. Significant changes in the economic characteristics of components or reorganization of an entity’s reporting structure can sometimes result in a re-assessment of the affected operating segment and its components to determine whether reporting units need to be redefined where the components are no longer economically similar. Future changes in the judgments and estimates underlying the Group’s analysis of goodwill for possible impairment, including expected future cash flows and discount rate, could result in a significantly different estimate of the fair value of the reporting units and could result in additional impairment of goodwill. p. Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, using the expected future discounted cash flows. q. Revenue recognition The Group’s revenue is generated from delivering educational programs and services. The Group’s customers include mainly students attending classes at its own schools, training centers or college; students attending classes run by the Group’s cooperative partners; corporate clients attending the Group’s outbound and management training classes; and distributors whom the Group sells its services to. Revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, service is performed and collectability of the related fee is reasonably assured. Revenues presented in the consolidated financial statements represent revenues from educational programs and services. If any of the aforementioned criteria are not met, the Group defers the recognition of revenue until all criteria are met. Educational programs and services Educational programs and services primarily consist of primary and secondary curriculum education, tutoring programs that supplement primary and secondary curriculum education and career enhancement and other corporate training programs that are provided directly or indirectly to customers, where the Group is responsible for delivery of the programs and services. The Group normally collects tuition fee up front and the students consume the learning hours they bought along with a set courses schedule or upon their own decision. Tuition fees is generally paid in advance and is initially recorded as deferred revenue and is amortized and recognized as revenue along with the students consuming pace. For the curriculum education programs, the tuition revenue, including accommodation, is recognized on a straight-line basis over the length of the course, which is typically over a period of a semester. For tutoring programs, tuition revenue is recognized on a straight-line basis over the period during which tutoring services are provided to students. Educational materials revenue, which is immaterial and has not been disclosed separately, relates to the sales of books, course materials, course notes for which the Group recognizes revenue when the materials have been delivered to students. Educational programs and services also include programs offered online which could be accessed through a username and password. Revenue of this service offering is recognized when programs are delivered online, and collected within one to three months. As of December 31, 2015 2016 RMB RMB Career Enhancement 38,820 34,264 K-12 54,571 60,944 Tutoring 22,495 14,276 Total 115,886 109,484 r. Cost of revenues Cost of revenues for educational programs and services primarily consist of teaching fees and performance-linked bonuses paid to the teachers, rental payments for the schools and learning centers, depreciation and amortization of property, equipment and land use rights used in the provision of educational services, costs of educational materials. s. Leases Operating lease Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Minimum lease payments, including scheduled rent increases, made under operating leases are charged to the consolidated statements of operations and other comprehensive income (loss) on a straight-line basis over the lease term. Contingent rentals are excluded from minimum lease payments, and are recognized as expense when the achievement of the specified target is considered probable. Capital lease When the lease term is equal to 75 percent or more of the estimated economic life of the leased property, the lease is classified as a capital lease, where the lessee assumes substantially all the benefits and risks of ownership. The depreciation is calculated on a straight-line basis over the lease term. In a capital lease, assets and liabilities are recorded at the amount of the lesser of (a) the fair value of the leased asset at the inception of the lease or (b) the present value of the minimum lease payments (excluding executing costs) over the lease term. Recorded assets are depreciated over the lease terms. During the lease term, each minimum lease payment is allocated between a reduction of the obligation and interest expense to produce a constant periodic rate of interest on the remaining balance of the obligation. t. Research and development Research and development expenses comprise of (a) payroll, employee benefits, and other headcount-related costs associated with the development of online education technology platforms and courseware, and (b) outsourced development costs. Except for costs related to internal use software and website development costs, the Group expenses all other research and development costs when incurred for the years presented. For internal use software, the Group expenses all costs that are incurred in connection with the planning and implementation phases of development and costs that are associated with repair or maintenance of the existing software. Direct costs incurred to develop the software during the application development stage that can provide future benefits are capitalized. Capitalized internal use software and website development costs are included in intangible assets. u. Penalty charge on borrowings The Group recognizes penalty charges on outstanding borrowings according to individual loan contracts and agreements, which are reported as a component of interest expense in the consolidated financial statements. v. Advertising costs The Group expenses advertising costs as incurred. Total advertising expenses of continuing operations were RMB 4,435 1,858 1,857 w. Foreign currency translation and transactions The Group uses RMB as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands, Hong Kong and the British Virgin Islands is the US$, while the functional currency of the other entities in the Group is the RMB. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ as their functional currency, has been translated into RMB. Assets and liabilities are translated from each subsidiary’s functional currency at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income or loss in the statement of shareholders’ equity and comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange gain/loss, net on the consolidated statement of operations. x. Foreign currency risk The RMB is regulated by the PRC government and is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of PRC, controls the conversion of RMB into foreign currencies. Limitations on foreign exchange transactions imposed by the PRC government could cause future exchange rates to vary significantly from current or historical exchange rates. Further, the value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the PRC Foreign Exchange Trading System market. y. Fair value of financial instruments Financial instruments include cash and cash equivalents, short term investments, available for sale and short term investments, held to maturity, accounts receivable, accounts payable, borrowings and amounts due from and due to related parties. The carrying values of the financial instruments approximate their fair values due to their short-term maturities. z. Net income (loss) per share Basic earnings per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the year. Ordinary equivalent shares consist of the ordinary shares issuable upon the conversion of the convertible loans (using the if-converted method) and ordinary shares issuable upon the exercise of outstanding share options (using the treasury stock method). Ordinary equivalent shares are excluded from the computation of the diluted net income per share in years when their effect would be anti-dilutive. Ordinary equivalent shares are also excluded from the calculation in loss periods, as their effects would be anti-dilutive. On September 4, 2015, the Company effected a one-for-thirty reverse stock split. The principal effect of the Reverse Split was to decrease the number of outstanding shares of each of the Company’s common shares. All per share amounts and shares outstanding for all the periods have been retroactively restated to reflect the Reverse Split. aa. Income taxes Income taxes are provided for in accordance with the laws of the relevant taxing authorities. Income tax expense has been allocated between continued and discontinued operations in all periods to reflect the respective net operating results. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not some portion or all of the deferred tax assets will not be realized. All the deferred tax liabilities and assets have been classified as noncurrent in the consolidated balance sheets. The Group recognizes interest and penalties as income tax. As of December 31, 2015, in order to simplify financial presentation, the Company adopted ASU 2015-17 Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes and applied this Update retrospectively. Deferred tax liabilities and assets were classified as noncurrent in the consolidated balance sheets as of December 31, 2015 and 2016, respectively. This reclassification of deferred tax assets had no impact on the consolidated statements of operations and comprehensive income (loss), consolidated statements of changes in equity (deficit) and consolidated statements of cash flows for the year ended 2014. Uncertain tax positions The Group adopted the guidance on accounting for uncertainty in income taxes, which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on the de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Group believes that certain positions might be challenged despite its belief that its tax return positions are in accordance with applicable tax laws. The Group adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the effect of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties where applicable. See Note 18 (c) for additional information. In 2014, the Group received a document from the tax bureau cancelling Ambow Online’s preferential tax treatment. The Group had taken legal action to defend itself, also accrued the income tax and overdue fee for the year of 2014. In 2015, the Group lost the case and accrued the overdue fee by the end of 2015. In 2016, the Group accrued the overdue fee by the end of 2016. See Note 20 for detail. Also see Note 18 for details of the Group’s tax position as of December 31, 2016. cc. Comprehensive income U.S. GAAP generally requires that recognized revenue, expenses, gains and losses be included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income or loss. The components of other comprehensive income or loss consist of unrealized gain or loss on short term investments, available for sale and foreign currency translation adjustments. dd. Share-based compensation The Group grants share options/restricted stock to its employees, directors and non-employees. The Group measures the cost of employee services received at the grant-date using the fair value of the equity instrument issued net of an estimated forfeiture rate, and therefore only recognizes compensation costs for those shares expected to vest over the service period of the award. The Group records stock-based compensation expense on a straight-line basis over the requisite service period, generally ranging from one year to four years. Cost of services received from non-employees is measured at fair value at the earlier of the performance commitment date or the date service is completed and recognized over the period the service is provided. To the extent the Group recognizes any cost of service prior to the time the non-employees complete their performance, any interim measurements that the Group makes during the performance period are made at the then current fair values of equity instruments at each of those interim financial reporting dates. Forfeitures are estimated at the time of grant and revised in the subsequent periods if actual forfeitures differ from those estimates. ee. Discontinued Operations A discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: (1) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; (3) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). ff. Extinguishment of debt An exchange of debt instruments with substantially different terms is accounted for as a debt extinguishment. A debtor could achieve the same economic effect as an exchange of a debt instrument by making a substantial modification of terms of an existing debt instrument. A difference between the reacquisition price and the net carrying amount of the extinguished debt is recognized currently in income of the period of extinguishment as losses or gains and identified as a separate item. Gains and losses are not be amortized to future periods. gg. Loss contingencies An estimated loss contingency is accrued and charged to the consolidated statements of operations and other comprehensive income (loss) if both of the following conditions are met: (1) Information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements. It is implicit in this condition that it must be probable that one or more future events will occur confirming the fact of the loss; (2) The amount of loss can be reasonably estimated. The Group reviews its contingent issues on a timely basis to identify whether the above conditions are met. hh. Recently issued accounting pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, or ASU 2014-09. This new standard (Topic 606) will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to correlate with the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year, while allowing a company to adopt the new revenue standard early but not before the original effective date. In March 2016, the FASB issued ASU 2016-08, which amends the principal-versus-agent implementation guidance and illustrations in the new revenue standard. ASU No. 2016-08 specifically provides clarification around performance obligations for goods or services provided by another entity, assisting in determining whether the entity is the provider of the goods or services, the principal, or whether the entity is providing for the arrangement of the goods or services, the agent. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU No. 2016-10 provides guidance around identifying whether promised goods or services are distinct and separately identifiable, whether promised goods or services are material or immaterial to the contract, and whether shipping and handling is considered an activity to fulfill a promise or an additional promised service. ASU No. 2016-10 also provides guidance around an |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
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 consolidated statements of cash flows. Years ended December 31, 2014 2015 2016 RMB RMB RMB Cash and cash equivalents 180,285 246,303 196,900 Restricted cash 2,048 2,050 2,350 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows 182,333 248,353 199,250 The following table provides a reconciliation of changes in cash, cash equivalents, and restricted cash included in assets held for sale that sum to the total of the same such amounts shown in the consolidated statements of cash flows. Years ended December 31, 2014 2015 2016 RMB RMB RMB Changes in cash and cash equivalents included in assets held for sale 42,270 36,063 - Changes in restricted cash included in assets held for sale 1,600 2,000 - Total changes in cash, cash equivalents, and restricted cash included in assets held for sale shown in the consolidated statements of cash flows 43,870 38,063 - |
SHORT TERM INVESTMENTS
SHORT TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
SHORT TERM INVESTMENTS [Abstract] | |
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 range from thirty to sixty-two days, with contractual maturity dates from January 5, 2017, to February 8, 2017 and annual interest rates ranging from 3.50 4.50 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 OTTI loss was recognized for the year ended December 31 2016. 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 intend 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 December 31, 2016. No OTTI loss was recognized for the year ended December 31 2016. As of December 31, 2015 2016 RMB RMB Held-to-maturity investments 151,790 64,700 Available-for-sale investments 103,602 174,811 Total 255,392 239,511 The amortized cost, gross unrecognized holding gains and losses, gross unrealized gain in accumulated other comprehensive income, and estimated fair value of investments as of December 31, 2015 and 2016, are reflected in the tables below: As of December 31, 2015 Amortized Gross Gross Gross unrealized Estimated RMB RMB RMB RMB RMB Short-term investments: Held-to-maturity investments Fixed-rate financial products 151,790 - - - 151,790 Available-for-sale investments Adjustable-rate financial products 102,290 - - 1,312 103,602 As of December 31, 2016 Gross unrealized Gross Gross gain in accumulated Amortized unrecognized unrecognized other comprehensive Estimated Cost holding gains holding loss income Fair value RMB RMB RMB RMB RMB Short-term investments: Held-to-maturity investments Fixed-rate financial products 64,700 - - - 64,700 Available-for-sale investments Adjustable-rate financial products 171,163 - - 3,648 174,811 Gross realized gains and losses on available-for-sale investments for years ended December 31, 2014, 2015 and 2016 were as follows: Years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Gross realized gains on sales - 1,971 4,329 624 Gross realized loss on sales - (4,757) - - (Losses) gains on sale of available-for-sale investments - (2,786) 4,329 624 Interest income recognized on held-to-maturity investments for years ended December 31, 2014, 2015 and 2016 were as follows: Year Ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD Interest income recognized on held-to-maturity investments - 7,027 4,078 587 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2016 | |
ACCOUNTS RECEIVABLE, NET [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 6. ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: As of December 31, 2015 2016 RMB RMB Accounts receivable 127,893 13,576 Less: Allowance for doubtful accounts (116,615) - Accounts receivable, net 11,278 13,576 Allowance for doubtful accounts: As of December 31, 2015 2016 RMB RMB Balance at beginning of year (116,615) (116,615) Addition (Note i) - - Written off (Note ii) - 116,615 Balance at end of year (116,615) - (Note i) No bad debt provision was provided for the years ended December 31, 2015 and 2016. (Note ii) Bad debt provision of RMB 116,615 was written off in the year of 2016, after all collection efforts have been exhausted and the potential for recovery was remote. |
PREPAID AND OTHER CURRENT ASSET
PREPAID AND OTHER CURRENT ASSETS, NET | 12 Months Ended |
Dec. 31, 2016 | |
PREPAID AND OTHER CURRENT ASSETS, NET [Abstract] | |
PREPAID AND OTHER CURRENT ASSETS, NET | 7. PREPAID AND OTHER CURRENT ASSETS, NET Prepaid and other current assets consisted of the following: As of December 31, 2015 2016 RMB RMB Amount due from minority shareholder (Note i) 54,023 54,023 Amount due from Xihua Group (Note ii) 49,800 49,800 Value added tax refundable (Note iii) 24,811 24,811 Due from former owners (Note iv) 14,910 5,743 Staff advances 6,389 6,008 Rental deposits 8,331 7,835 Prepaid professional services fees 2,457 3,045 Prepaid rental fees (Note v) 3,067 3,533 Receivable from Zhenjiang operating rights (Note vi) 35,000 35,000 Receivable from Jinghan Group (Note vii) 122,822 122,822 Others (Note viii) 29,748 20,302 Total before allowance for doubtful accounts 351,358 332,922 Less: allowance for doubtful accounts (Note ix) (195,254) (179,055) Total 156,104 153,867 Allowance for doubtful accounts: As of December 31, 2015 2016 RMB RMB Balance at beginning of year (90,731) (195,254) Addition (Note iv, vii and ix) (122,718) (1,727) Written off (Note iv and vii) 18,195 17,926 Balance at end of year (195,254) (179,055) (Note ii) A payable balance amounted to RMB 49,800 (Note iii) Management considered the collectability of VAT refund was remote as a result of tax dispute between Ambow Online, Yuhua and the tax authority, as disclosed in Note 18(c), the Group provided a provision amounting to RMB 24,811 as of December 31, 2015 and 2016. 7,808 1,360 9,168 (Note v) In 2015 an impairment loss of RMB 3,995 (Note vi) 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 December 31, 2015 and 2016, the payable balance to Zhenjiang Foreign Language School amounted to RMB 36,770 36,770 141,017 18,195 96,863 (Note viii) Others mainly included inventory, prepaid education supplies, prepaid outsourcing service fee, and other miscellaneous items with trivial amount. |
CONSIDERATION RECEIVABLE, NET
CONSIDERATION RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2016 | |
CONSIDERATION RECEIVABLE, NET [Abstract] | |
CONSIDERATION RECEIVABLE, NET | 8. CONSIDERATION RECEIVABLE, NET Consideration receivables consisted of the following: As of December 31, 2015 2016 RMB RMB Receivables resulting from disposals (Note i) 14,000 14,000 Receivable resulting from disposal of Taishidian Holding (Note ii) 30,000 - Sub-total 44,000 14,000 Less: allowance for doubtful accounts (Note i & ii) (35,500) (5,500) Total 8,500 8,500 Allowance for doubtful accounts: As of December 31, 2015 2016 RMB RMB Balance at beginning of year (164,700) (35,500) Addition (Note i & ii) (35,300) - Written off (Note ii) 164,500 30,000 Balance at end of year (35,500) (5,500) (Note i) In the fourth quarter of 2011, the Group decided to concentrate its resources and focus on the Group’s core businesses. On December 2, 2011, the Company sold Xi’an Dragon Continuation School, Shandong North Resource Information Technology Co., Ltd. and Jinan Prosperous Resource Technology Co., Ltd., Guangzhou Modern Olympic Training School, and Tianjin Yimatong Technology Development Co., Ltd. to Beijing Tongshengle Investment Co., Ltd., (“Tongshengle”) for cash consideration of RMB 35,000 21,000 200 5,300 (Note ii) On July 25, 2013, the Group entered in a letter for intent with Kunshan Venture Investment Limited (“Kunshan Venture”) to transfer the equity interest of Taishidian Holding, with consideration of RMB 234,500 110,000 124,500 234,500 70,000 40,000 110,000 70,000 70,000 234,500 40,000 30,000 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2016 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 9. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: As of December 31, 2015 2016 RMB RMB Buildings 63,643 64,222 Capital lease of property 12,000 12,000 Motor vehicles 7,113 6,173 Office and computer equipment 87,067 87,121 Leasehold improvements 66,849 70,321 Sub-total 236,672 239,837 Less: accumulated depreciation (141,690) (151,830) Total 94,982 88,007 For the years ended December 31, 2014, 2015 and 2016, depreciation expenses of continuing operations were RMB 35,461 25,048 17,620 The capital leases of properties mainly represented prepaid long-term lease of Ambow Beijing campus and Shenyang K-12 School of which the original amounts were RMB 45,324 12,000 38,814 45,324 6,510 3,150 3,750 2,419 2,419 600 As of December 31, 2016, the Group is in the process of applying for the building ownership certificates for certain buildings with a total net carrying value of approximately RMB 34,870 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2016 | |
INTANGIBLE ASSETS, NET [Abstract] | |
INTANGIBLE ASSETS, NET | 10. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: As of December 31, 2015 2016 RMB RMB Gross carrying amount Trade names 51,563 48,908 Student populations 38,380 38,380 Software 88,670 91,254 Customer relationships 5,270 5,270 Cooperative agreements 5,230 5,230 Favorable leases 63,237 63,237 Non-compete agreements 833 833 253,183 253,112 Less: Accumulated amortization Trade names - - Student populations (36,244) (36,964) Software (87,145) (89,138) Customer relationships (3,002) (5,270) Cooperative agreements (2,537) (3,046) Favorable leases (20,028) (23,153) Non-compete agreements (833) (833) (149,789) (158,404) Intangible assets, net Trade names 51,563 48,908 Student populations 2,136 1,416 Software 1,525 2,116 Customer relationships 2,268 - Cooperative agreements 2,693 2,184 Favorable leases 43,209 40,084 Non-compete agreements - - 103,394 94,708 For the year ended December 31, 2014, the Group recorded an impairment loss of RMB 30,167 26,028 4,139 9,639 In 2016, the Group performed impairment test on the trade name, and as a result, for the year ended December 31, 2016, the Group recorded an impairment loss of RMB 2,655 Amortization expenses for intangible assets of continuing operations amounted to RMB 16,818 10,707 6,786 3,118 3,061 2,466 Amount RMB 2017 4,921 2018 4,438 2019 4,293 2020 4,132 2021 3,784 Thereafter 24,232 Total 45,800 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL [Abstract] | |
GOODWILL | 11. GOODWILL The changes in the carrying amount of goodwill by reporting unit for the years ended December 31, 2015 and 2016 were as follows: Better Schools Better Jobs K-12 Career Tutoring Schools Subtotal Enhancement Consolidated RMB RMB RMB RMB RMB Balance as of December 31, 2014 26,609 24,815 51,424 33,117 84,541 Foreign currency translation adjustments 417 410 827 620 1,447 Balance as of December 31, 2015 27,026 25,225 52,251 33,737 85,988 Foreign currency translation adjustments 493 485 978 735 1,713 Goodwill impairment (19,747) - (19,747) - (19,747) Balance as of December 31, 2016 7,772 25,710 33,482 34,472 67,954 In 2016, the Group elected to start with the quantitative two-step process in the impairment test for goodwill. The management determined that the Income Approach, specifically the Discounted Cash Flow (“DCF”) method, is appropriate. Considering the fact that the Tutoring segment has kept downward trends in business performance and operating results, the management decided to suspend those non-performing business units in the year of 2016, in order to solidify the operational base and enhance future growth prospects. Hence, lower projection of cash flows was used for Tutoring segment. For Career Enhancement segment, the management expected the revenues to gradually pick up in the following years. The management would continue to maintain and develop its business in following years. For K-12 segment, the management decided to use a flat and conservative growth rate. 16 17 3 |
PREPAYMENT FOR ACQUISITION OF P
PREPAYMENT FOR ACQUISITION OF PROPERTY | 12 Months Ended |
Dec. 31, 2016 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
PREPAYMENT FOR ACQUISITION OF PROPERTY | Prepayment for acquisition of property as of December 31, 2016 consisted of the following: As of December 31 2015 2016 RMB RMB Prepayment for acquisition of property - 71,024 On December 30, 2016, the Group prepaid RMB 71,024 1,500 |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
ACCRUED AND OTHER LIABILITIES [Abstract] | |
ACCRUED AND OTHER LIABILITIES | 13. ACCRUED AND OTHER LIABILITIES Accrued and other liabilities consisted of the following: As of December 31, 2015 2016 RMB RMB Business tax, VAT and others 75,354 75,444 Payable balance with indemnity by Xihua Group (Note 7(ii)) 49,800 49,800 Accrual for rental 56,194 57,809 Payable to Zhenjiang Foreign Language School (Note 7(vi)) 36,770 36,770 Accrued payroll and welfare 35,171 34,567 Payable to Jinghan Group (Note 24(a)) 25,959 25,959 Professional service fees payable 30,022 28,368 Student tuition refund payable (i) 253 10,743 Receipt in advance 6,757 6,551 Amounts due to cooperating partners 5,491 4,215 Lawsuit penalty payable - 2,176 Due to former owners 1,254 1,254 Accrued interest payable 349 209 Current portion of consideration payable for acquisitions 2,258 - Collection in advance on behalf of students 5,589 8,413 Advance from others 11,931 4,656 Employee reimbursement payable 6,927 6,927 Others 17,278 18,960 Total 367,357 372,821 (Note i) The balance represented tuition collected from students in advance but respective services could not be provided anymore. |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2016 | |
SHORT-TERM BORROWINGS [Abstract] | |
SHORT-TERM BORROWINGS | 14. SHORT-TERM BORROWINGS Short-term borrowings consisted of the following: As of December 31 2015 2016 Maturities RMB RMB Unsecured short-term borrowings from third party September, 2015 2,300 - Total Short-term borrowings 2,300 - The weighted average interest rate of short-term loans outstanding was 10.0 11,031 1,109 The short-term borrowings incurred interest expenses for the years ended December 31, 2014, 2015 and 2016 amounting to RMB 25,057 4,292 115 |
CONVERTIBLE LOAN
CONVERTIBLE LOAN | 12 Months Ended |
Dec. 31, 2016 | |
CONVERTIBLE LOAN [Abstract] | |
CONVERTIBLE LOAN | 15. CONVERTIBLE LOAN On June 12, 2012 and October 24, 2012, the Group finalized a loan agreement amounting to RMB 125,710 20,000 1,000 300 150 IFC C Loan bears variable rate of 4.5 6-month LIBOR (i) Within 12 months from the date of the Loan Agreement, 3.5 210.0 (ii) At any time prior to the fifth anniversary of the date of the first disbursement of the IFC C Loan, 3 360.0 The IFC C Loan was disbursed to the Group on October 22, 2012, with repayment schedule of 2 equal semi-annual installments starting on November 15, 2017. The IFC C Loan was not allowed to pay back in advance of the payment schedule. Management has determined that the conversion feature embedded in the convertible loan should not be bifurcated and accounted for as a derivative, since the embedded conversion feature is indexed to the Company’s own stock and would have been classified in shareholders’ equity if it was a free-standing derivative instrument. Since the conversion price of the IFC C Loan exceeds the market price of the Company’s ordinary shares on the date of issuance, no portion of the proceeds from the issuance was accounted for as the beneficial conversion feature, and was treated solely as a liability since the embedded conversion feature has no intrinsic value and accordingly does not meet the requirements of an equity component. Costs incurred by the Company that were directly attributable to the issuance of IFC C Loan amounting to approximately RMB 3,432 567 4,924 Management further determined that the interest rate change feature (“IRCF”) embedded in the convertible loan is required to be bifurcated and accounted for as a derivative asset. The fair value of the IRCF as of issuance date was RMB 369 61 121,074 20,000 In connection with the Loan Agreement, the Company signed a Registration Rights Agreement, which requires a liquidated damages in the amount of 0.5 30 6.0 (i) Requires registration statement to be declared effective within 30 90 (ii) Requires the Company to maintain the effectiveness of the registration statement until the earlier of (a) the date when all registrable securities have been resold, (b) the date when all registrable securities may be resold under Rule 144 without regard to information, volume or manner of sale requirements or (c) the date one year after the IFC C Loan is converted into ordinary shares. As stated below, the Registration Rights Agreement was terminated and that no party to the Registration Rights Agreement would have any liability in respect of any breach of that agreement on or before the effective date. First Amendment On April 29, 2013, the Company signed an Amendment Agreement with IFC (the “First Amendment”), pursuant to which, the disbursed IFC C Loan will be repaid based on an agreed schedule before September 30, 2013. Management determines that the First Amendment was not qualified as debt extinguishment, in accordance with ASC Topic 470, since the present value of the cash flows under the terms of the amended debt instrument was less than 10 percent different from the present value of the remaining cash flows under the terms of the original instrument. On the third payment date, specified as at June 30, 2013, the Company failed to pay principal and interest, which triggered one of the Default Events defined in the Loan Agreement. Subsequently, IFC transferred its participation in the loans to Sir Leslie Porter & Son Limited on August 20, 2013 and Sir Leslie Porter & Son Limited transferred its participation in the loans to the CEIHL on September 17, 2013. No amendment was made in these two transfers. The Company accrued a penalty interest on the amount of the payment due and unpaid with 2 1,082 Second Amendment On March 9, 2014, the Group executed an exclusivity agreement with CEIHL, the secured creditor of the Company. In return for continued forbearance under the loan facility between the Company and IFC, which was transferred ultimately to the benefit of CEIHL (“the Loan Facility”), the Company granted CEIHL a period of exclusivity to negotiate and implement a restructuring plan designed to, inter alia, return the Group to solvency and to allow for the discharge of the JPLs by the Grand Court of the Cayman Islands. A non-binding term sheet was subsequently executed by the JPLs with CEIHL on March 30, 2014. On May 5, 2014, the Company entered into Restructuring Agreement with CEIHL, according to which, CEIHL, will provide for funding for the Company approximately RMB 290,600 48,000 80,000 85 50.1 In connection with the restructuring plan, on May 13, 2014, the Group signed Amendment and Restatement Agreement to the Loan Agreement with CEIHL. The parties have agreed to amend and restate the terms and conditions of the IFC C Loan as set out in this Agreement. Pursuant to it, 1) the Registration Rights Agreement under IFC C Loan was terminated; 2) CEIHL agrees that it shall advance by way of an IFC D Loan to the Group, which was defined in the Second Amendment signed by the same parties on the same day with this agreement. Subject to the Second Amendment, a convertible loan, was comprised of IFC C Loan consisting of a principal amount of RMB 104,023 17,000 85,550 13,981 104,139 17,019 48,000 32,426,090 1.480 The Maturity Date of these loans is 3 3 30,595 5,000 According to the Second Amendment, the IFC C Loan was substantially amended by decreasing the conversion rate from US$ 150 1.479 254,169 41,538 104,023 17,000 6,862 1,121 143,901 23,417 Due to the fact that the Company was under provisional liquidation at the time of restructuring, favorable convertible loans, which were reflected in a lower conversion price as compared to the fair value of the Company’s ordinary share at the commitment date, was granted to new investors for the purpose of obtaining necessary funding to solve the liquidity issues. As of the commitment date, the fair value of the Company’s ordinary share in a fully diluted basis was US$ 3.465 1.479 In addition, if the intrinsic value of the BCF is greater than the proceeds allocated to the convertible instrument, the amount of the discount assigned to the BCF shall be limited to the amount of the proceeds allocated to the convertible instrument. As a result, the discount of the convertible loan was limited to the proceeds of RMB 300,574 49,121 On August 31, 2014, CEIHL entered a Share Interest Assignment Agreement (“Assignment Agreement”) with New Flourish Holding Limited (“New Flourish”), an entity control by CEO of the Company. Pursuant to the Assignment Agreement, CEIHL agreed to sell 5,678,963 5,779 94,360 On September 5, 2014, RMB 224,517 36,692 25,182,076 5,678,963 16,716,954 2,786,159 5,678,963 98,705 The principal of convertible loan before and after conversion as of September 5, 2014 are summarized in the following table: Before conversion After conversion US$ US$ CEIHL 38,000 6,308 SummitView 5,000 - Baring 5,000 5,000 Total amount 48,000 11,308 On March 5, 2015, CEIHL and Baring converted US$ 6,308 5,000 4,457,854 2,786,159 56,549 The actual conversion rates of convertible loans from the lenders are summarized in the following table: Actual conversion Loan principal Shares held through rate US$ conversion US$ per share CEIHL 38,000 26,853,771 1.415 SummitView 5,000 2,786,159 1.795 Baring 5,000 2,786,159 1.795 Total convertible loan 48,000 32,426,089 1.480 There was no impact on the consolidated financial statements regarding the accounting of convertible loan per the above actual conversion rate changes among the lenders. There were no convertible loans as of December 31, 2015 and 2016. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2016 | |
ORDINARY SHARES [Abstract] | |
ORDINARY SHARES | 16. ORDINARY SHARES Upon completion of the Company’s initial public offering (“IPO”) in August 2010, 250,000 105,907 0.003 2,691,863 0.003 Holders of Class A Ordinary Shares and Class B Ordinary Shares have the same rights except for the following: (i) Each Class A Ordinary Share is entitled to one vote, and each Class B Ordinary Share is entitled to ten votes and is convertible to one Class A Ordinary Share at any time; and (ii) Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances. Upon any sale, pledge, transfer, assignment or disposition of Class B Ordinary Shares by a holder thereof to any person or entity which is not an affiliate of such holder or an affiliate of the Company, such Class B Ordinary Shares shall be automatically and immediately converted into an equal number of Class A Ordinary Shares without payment of additional consideration. On June 3, 2013, the Company consummated the transactions provided for in a share purchase agreement dated April 28, 2013, an amendment to share purchase agreement as of May 24, 2013 and a supplementary agreement dated May 31, 2013 (collectively “SummitView SPA”), between the Company and SummitView, regarding the issuance and sale of 1,026,705 128,035 21,000 60,969 10,000 67,066 11,000 On May 5, 2014, 537,797 67,066 11,000 On September 5, 2014, RMB 224,517 36,692 25,182,076 5,678,963 16,716,954 2,786,159 5,678,963 As of December 31, 2014, there were 27,552,058 2,984,775 On October 14, 2014, the Board of Directors granted the restricted stock to each member of the Board who is not an employee of the Group. The number of shares of restricted stock subject to each award was 135,227 200 1.480 811,359 270,453 225,377 424,459 225,377 On January 21, 2015, Spin-Rich Ltd., a British Virgin Islands company that is wholly owned by Dr. Jin Huang, converted all of its 420,000 5 On March 5, 2015, CEIHL and Baring converted US$ 6,308 5,000 4,457,854 2,786,159 On May 18, 2015, the Board of Directors granted the restricted stock 86,473 59,872 6,666 On May 18, 2015, the Board of Directors granted the restricted stock 510,000 On September 4, 2015, the Company completed a 1-for- 30 On November 8, 2015, 4,708,415 As of December 31, 2015, there were 33,556,762 4,708,415 All shares outstanding for all periods reflect the Company’s 1-for- 30 As of December 31, 2016, there were 33,990,680 4,708,415 |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
SHARE BASED COMPENSATION [Abstract] | |
SHARE BASED COMPENSATION | 17. SHARE BASED COMPENSATION 2005 Share Incentive Plan On February 4, 2005, the Group adopted the 2005 Share Incentive Plan, or the “2005 Plan”, under which the Group may grant options to purchase up to 50,000 676,078 An individual who owns more than 10 (i) the per share exercise price shall be not less than 110 (ii) the purchase price shall be not less than 100 (iii) in the case of an Incentive Shares Option (“ISO”), such ISO by its terms is not exercisable after the expiration of five years from the date of grant. The 2005 Plan was approved and will terminate automatically 10 4 10 2010 Equity Incentive Plan On June 1, 2010, the Group adopted the 2010 Equity Incentive Plan, or the “2010 Plan”, which became effective upon the completion of the IPO on August 5, 2010. The 2010 Plan allows the Company to offer a variety of incentive awards to employees, outside directors and consultants. Under the plan, the Group may grant up to 633,333 333,333 833,333 5 The 2010 Plan was approved by the Board of Directors and shareholders, and will terminate automatically 10 10 10 110 5 Share options As of December 31, 2015 and 2016, options granted to employees to purchase 319,229 226,696 68,121 29,921 808,445 939,177 A summary of the share option activity as of December 31, 2014, 2015 and 2016 is as follows: Year ended December 31, 2014 Year ended December 31, 2015 Year ended December 31, 2016 Weighted Weighted Weighted Weighted Average Weighted Average Weighted Average Average Remaining Aggregate Average Remaining Aggregate Average Remaining Aggregate Exercise Contractual Intrinsic Exercise Contractual Intrinsic Exercise Contractual Intrinsic Shares Price Term Value Shares Price Term Value Shares Price Term Value RMB RMB RMB RMB RMB RMB Outstanding at beginning of year 450,670 506.70 4.54 10,940 427,273 503.40 3.49 175 387,350 3.08 2.59 3,836 Granted - - - - - - - - - - - - Exercised - - - - - - - - - - - - Forfeited or expired (23,397) 688.50 - - (39,923) 3.08 - - (130,733) 3.30 - - Outstanding at end of year 427,273 503.40 3.49 175 387,350 3.08 2.59 3,836 256,617 3.30 2.84 4,499 Exercisable at end of year 422,641 501.60 3.45 64 387,350 3.08 2.63 1,435 256,617 3.30 2.84 4,499 Expected to be vested 4,032 609.30 6.69 - - - - - - - - - On June 26, 2015, the Company offered its employees (including officers) the opportunity to exchange all outstanding options to purchase shares of the Company’s Class A ordinary shares granted under our 2005 Plan and granted on or prior to November 19, 2011 under our 2010 Plan, that have an exercise price per share greater than $ 0.4749 3.08 30 5,238 Management of the Group is responsible for determining the fair value of options granted and have considered a number of factors when making this determination, including valuations. The Group has not granted options during the year of 2015 and 2016. The Company recorded share-based compensation expenses (reversals) of RMB 5,110 (3,645) 4,787 83 94 4 As of December 31, 2015 and December 31, 2016, all share options were vested. Restricted stock awards On October 14, 2014, the Board of Directors granted the restricted stock to each member of the Board who is not an employee of the Group. The number of shares of restricted stock subject to each award shall be determined by dividing US$ 200 1.480 811,359 270,453 225,377 424,459 225,377 On May 18, 2015, the Board of Directors granted 86,473 59,872 6,666 On May 18, 2015, the Board of Directors granted 510,000 201,875 A summary of the restricted stock awards as of December 31, 2015 and 2016 is as follows: Year ended December 31, 2015 Weighted Average Grant-date Remaining Shares fair value Contractual Term RMB Outstanding at beginning of year 811,359 21.20 2.63 Granted 596,473 20.32 4.00 Issued (484,331) - - Forfeited or expired (61,979) 20.32 1.38 Outstanding at end of year 861,522 21.94 2.59 Shares vested but not issued at end of year 41,628 20.64 - Year ended December 31, 2016 Weighted Average Grant-date Remaining Shares fair value Contractual Term RMB Outstanding at beginning of year 861,522 21.94 2.59 Granted - - - Issued (433,918) 22.94 - Forfeited or expired (12,083) 21.72 2.39 Outstanding at end of year 415,521 22.28 1.89 Shares vested but not issued at end of year 34,962 22.73 - The Company recorded share-based compensation expenses of RMB 3,584 9,076 7,828 15,725 8,616 |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2016 | |
TAXATION [Abstract] | |
TAXATION | 18. TAXATION a. Value added tax (“VAT”) The PRC government implemented a value-added tax reform pilot program, which replaced the business tax with VAT on selected sectors including but not limited to education in Shanghai effective January 1, 2012, in Beijing effective September 1, 2012, in Tianjin effective December 1, 2012. In August 2013, the pilot program was expanded nationwide in certain industries. 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 6 3 5 As of December 31, 2015 and 2016, the payable balances for VAT were RMB 30,590 31,314 b. Business tax In PRC, business taxes are imposed by the government on the revenues arising from the provision of taxable services including but not limited to education, the transfer of intangible assets and the sale of immovable properties in PRC. The business tax rate varies depending on the nature of the revenues. Other than revenues generated from degree oriented educational activities provided by private schools that are accredited to issue diplomas or degree certificates recognized by the Ministry of Education of the PRC which are exempted from business tax, the applicable business tax rate for the Group’s revenues generally ranges from 3 5 From May 2016, as the final part of the VAT reform, VAT replaced business tax in all industries, on a nationwide basis. The VAT rates applicable to the subsidiaries and consolidated variable interest entities of the Group ranged from 3 6 3 5 As of December 31, 2015 and 2016, the payable balances for business tax were RMB 27,168 24,106 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 Entities incorporated in Hong Kong are subject to Hong Kong profit tax at a rate of 16.5 PRC Significant components of the provision for income taxes on earnings for the years ended December 31, 2014, 2015 and 2016 are as follows: Years ended December 31, 2014 2015 2016 RMB RMB RMB Current: PRC 13,537 8,562 4,881 Deferred: PRC (12,402) (127,525) 1,030 Provision for income tax expenses (benefits) 1,135 (118,963) 5,911 Corporate entities The PRC Corporate Income Tax (“CIT”) is calculated based on the taxable income determined under the applicable CIT Law and its implementation rules, which became effective on January 1, 2008. CIT Law imposes a unified income tax rate of 25 CIT Law also imposes a withholding income tax of 10 5 Ambow Online was recognized as a “Software Enterprise” and a “High and New Technology Enterprises”, and was exempted from income tax on its profits for 2008 and 2009, and is subject to a 50 15 25 7,278 3,435 10 1,328 1,332 Private schools and colleges The Group’s companies providing education services are taxed as corporate enterprises as referred to above. Private schools or colleges operated for reasonable returns are subject to income taxes at 25 1.5 2.5 CIT Law includes specific criteria that need to be met by an entity to qualify as a not-for-profit organization in order to be exempted from corporate income tax. In January 2014, the MOF and SAT jointly issued the “Circular on Management Issues Concerning Not-for-Profit Organizations’ Eligibility for Tax Exemption” in Circular Caishui [2014] No. 13. This circular set out further clarification of the requirements for not-for-profit organizations, and stipulated that only not-for-profit organizations certified jointly by finance and taxation authorities are entitled to tax exemption, and the circular shall be implemented as of January 1, 2013. However, as of December 31, 2016, the detailed implementation guidance has not been provided to local tax authorities on how to apply these changes to schools and colleges. The Group has recognized income tax payable for the above unrecognized tax benefits because the obligation was considered probable. Please see Note 18(d) for the movement of uncertain tax position. The principal components of the Group’s deferred tax assets and liabilities were as follows: As of December 31 2015 2016 RMB RMB Deferred tax asset Accrued expense 8,191 7,002 Allowance for doubtful accounts 73,475 73,907 Tax loss carried forward 436,586 445,263 Deferred advertising expense 13,579 11,519 Impairment of long-lived tangible assets 27,046 24,600 Others 5,384 4,273 564,261 566,564 Valuation allowance (530,358) (536,838) Deferred tax asset, net 33,903 29,726 Deferred tax liabilities - Unrecognized valuation surplus and deficit -acquisition 77,825 77,825 - Unrecognized valuation surplus and deficit Decrease due to amortization and impairment (53,644) (55,605) - Unrealized profit of short-term investments 521 952 - Unrealized profit of foreign exchange transaction 1,019 - Total deferred tax liabilities 25,721 23,172 The following represents the amounts and expiration dates of operating loss carried forwards for tax purpose: Amount RMB 2017 560,016 2018 340,224 2019 120,788 2020 96,696 2021 and thereafter 663,329 Total 1,781,053 The following represents a roll-forward of the valuation allowance for each of the years: As of December 31, 2014 2015 2016 RMB RMB RMB Balance at beginning of the year 444,946 539,704 530,358 Allowance made during the year 128,002 30,873 6,480 Allowance resulting from the reconsolidation of previously deconsolidated entities - 1,352 - Reversals (33,244) (41,571) - Balance at end of the year 539,704 530,358 536,838 Reconciliation between total income tax expense and the amount computed by applying the weighted average statutory income tax rate to income before income taxes is as follows: Years ended December 31, 2014 2015 2016 % % % Weighted average statuary tax rate 25 % 25 % 25 % Tax effect of non-deductible expenses (1) % 0 % (1) % Tax effect of non-taxable income 0 % 0 % 1 % Tax effect of tax-exempt entities (12) % (9) % (10) % Tax effect of deemed profit 0 % 0 % (1) % Tax effect of disposed entity 0 % 13 % 0 % Tax penalty (1) % 0 % (4) % Changes in valuation allowance (13) % 2 % (29) % Effective tax rate (2) % 31 % (19) % d. Uncertain tax positions A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: As of December 31, 2014 2015 2016 RMB RMB RMB Unrecognized tax benefits, beginning of year 14,930 15,011 23,648 Increases related to current tax positions 565 4,948 1,675 Addition from the consolidation of previously deconsolidated subsidiaries - 3,689 - Decrease due to deconsolidation (484) - - Unrecognized tax benefits, end of year 15,011 23,648 25,323 The amounts of unrecognized tax benefits listed above are based on the recognition and measurement criteria of ASC Topic 740. 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. For the years ended December 31, 2014, 2015 and 2016, there are RMB 565 4,948 1,675 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 claw back 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_LOSS PER SHARE
NET INCOME/LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
NET INCOME/LOSS PER SHARE [Abstract] | |
NET INCOME/LOSS PER SHARE | 19. NET INCOME/LOSS PER SHARE The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: Years ended December 31, 2014 2015 2016 RMB RMB RMB Numerator: Numerator for basic and diluted loss from continuing operations per share (1,018,547) (277,048) (35,700) Numerator for basic and diluted (loss) income from discontinued operations per share (58,266) 340,787 - Denominator: Denominator for basic and diluted (loss) income per share weighted average ordinary shares outstanding 13,928,048 36,848,816 38,469,234 Basic and diluted loss per share- continuing operations (73.13) (7.52) (0.93) Basic and diluted (loss) income per share- discontinued operations (4.18) 9.25 - 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. Due to the loss from continued operations for the periods, approximately 1,238,632 1,248,873 672,138 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES Operating leases The Group leases offices and classrooms under operating leases. The terms of substantially all of these leases are ten years or less. Future minimum lease payments under non-cancelable operating leases as of December 31, 2016 were as follows: Amount RMB 2017 17,622 2018 14,838 2019 12,888 2020 10,510 2021 8,628 Thereafter 54,241 Total 118,727 Rent expense for all cancelable and non-cancelable leases including continuing and discontinued operation were approximately RMB 143,499 54,939 26,184 Contingencies 1) Skillsoft In April 2012, Skillsoft Asia Pacific Pty Ltd. (“Skillsoft”) filed a statement of claim (HCCL19/2013) against the Company in the High Court of the Hong Kong Special Administrative Region Court of First Instance alleging breach of contract. The complaint seeks a declaration that the contract between the Company and Skillsoft remains in full force and effect as well as monetary damages, interest and costs. On December 12, 2013, the Hong Kong court has ordered a summary judgment in favor of Skillsoft for US$ 0.6 th 2.5 2.0 2.0 0.6 0.1 0.4 7.3 0.8 On January 12, 2016, the Company successfully resisted Skillsoft’s application for summary judgment for the Inspection Claims. On April 28, 2016, the Company went through mediation with Skillsoft. As the result of mediation, the Company agreed to pay Skillsoft no later than June 11, 2016 a sum of US$0.45 million as full and final settlement of Skillsoft’s claims in the above consolidated action. Upon receipt of payment of the said sum of US$0.45 million by Skillsoft, Skillsoft’s claims in the above consolidated action shall stand dismissed. The Company accrued the said sum of US$ 0.45 2) Changsha K-12 In February 2013, Changsha K-12 Experimental School was involved in a civil lawsuit in Hunan Province High Court, a cooperation dispute on host right of Changsha K-12 Experimental School, amounting to RMB 167,990 3) Ambow Online Administrative Lawsuit In November 2014, Beijing Ambow Online Software Company Ltd. filed an administrative lawsuit to Beijing Haidian District Court, with the Eighth Tax Office of National Tax Bureau in Beijing Haidian District as the defendant. The Tax Bureau made a tax notice on August 18th, 2014 that the Company’s preferential tax qualification for the year 2011 was cancelled because of tax evasion in 2011 and the Company needed to pay the enterprise income tax already exempted, which was RMB 7,278 3,435 10,713 10 1,328 1,332 12,041 13,373 4) Shenyang K-12 In March 2015, Shenyang K-12 filed a civil law suit to Shenyang First Intermediate People's Court of Liaoning Province, against its minority shareholders, as the co-defendants, to seek indemnification with interest and other related costs. The co-defendants have misappropriated of the tuition collected from students and the Company has provided bad debt allowance accordingly in 2014. On February 19, 2016, the trial was held on Shenyang First Intermediate People's Court of Liaoning Province. On March 29, 2016, Shenyang First Intermediate People's Court of Liaoning Province made a decision to support the claim of Shenyang K-12. On May 24, 2016, the minority shareholders of Shenyang K-12 appealed to Liaoning Provincial High Court. On November 8, 2016, the second trial was held on Liaoning Provincial High Court. On November 21, 2016, Liaoning Provincial High Court made a judgment to dismiss the appeal of the minority shareholders of Shenyang K-12 and ratify the original judgment. The Company did not accrue contingent income because the co-defendants showed no intent or ability to pay indemnification. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 21. 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. Based on management’s assessment, the Group has determined that it has three operating segments which are Tutoring, K-12 Schools and Career Enhancement. These three operating segments are also identified as reportable segments. The reportable segments of tutoring and K-12 schools are grouped under the “Better Schools” division because the segments offer programs and education services using a standards-based curriculum that enables students to improve their academic results and educational opportunities. The reportable segments of career enhancement was classified under the “Better Jobs” division because the segments offer services and programs that facilitate post-secondary students to obtain more attractive employment opportunities. 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, and gross profit. The CODM does not review balance sheet information to measure the performance of the reportable segments, nor is this part of the segment information regularly provided to the CODM. Revenues, cost of revenues, and gross profit by segment were as follows. Discontinued operations have been excluded from the segment information for periods presented. Better School Better Job Career Tutoring K-12 Subtotal Enhancement Consolidated RMB RMB RMB RMB RMB Net Revenues 68,203 168,244 236,447 175,551 411,998 Cost of revenues (52,728) (115,416) (168,144) (105,892) (274,036) Gross profit 15,475 52,828 68,303 69,659 137,962 For the year ended December 31, 2015 Better School Better Job Career Tutoring K-12 Subtotal Enhancement Consolidated RMB RMB RMB RMB RMB Net Revenues 54,888 186,747 241,635 154,080 395,715 Cost of revenues (41,048) (116,819) (157,867) (88,078) (245,945) Gross profit 13,840 69,928 83,768 66,002 149,770 For the year ended December 31, 2016 Better School Better Job Career Tutoring K-12 Subtotal Enhancement Consolidated RMB RMB RMB RMB RMB Net Revenues 47,985 222,592 270,577 141,439 412,016 Cost of revenues (33,465) (137,833) (171,298) (67,444) (238,742) Gross profit 14,520 84,759 99,279 73,995 173,274 The Group primarily operates in the PRC. Substantially all the Group’s long-lived assets are located in the PRC. |
PRC CONTRIBUTION AND PROFIT APP
PRC CONTRIBUTION AND PROFIT APPROPRIATION | 12 Months Ended |
Dec. 31, 2016 | |
PRC CONTRIBUTION AND PROFIT APPROPRIATION [Abstract] | |
PRC CONTRIBUTION AND PROFIT APPROPRIATION | 22. PRC CONTRIBUTION AND PROFIT APPROPRIATION Full time employees of the Group in the PRC participate in a government-mandated multiemployer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to qualified employees. PRC labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; hence, the Group has no further commitments beyond its monthly contributions. The total contributions for such employee benefits were RMB 31,896 28,085 29,029 In accordance with the Regulations on Enterprises with Foreign Investment of PRC and their articles of association, the Company’s subsidiaries in the PRC, being foreign invested enterprises established in PRC, are required to provide for certain statutory reserves, namely general reserve, enterprise expansion reserve and staff welfare and bonus reserve, all of which are appropriated from net profit as reported in the Group’s PRC statutory accounts. The Company’s subsidiaries in the PRC are required to allocate at least 10 50 In accordance with the PRC Company Laws, the Group’s VIEs established in PRC make appropriations from their after-tax profits as reported in their PRC statutory accounts to non-distributable reserves, namely statutory surplus reserve, statutory public welfare reserve and discretionary surplus reserve. The Company’s or its non-school subsidiaries’ VIEs are required to allocate at least 10 50 5 10 In accordance with the Law of Promoting Private Education (2003), the Group’s school subsidiaries in PRC must make appropriations from their after-tax profits as reported in their PRC statutory accounts to non-distributable reserves, namely the education development reserve, which requires annual appropriations of at least 25 The following table presents the Group’s appropriations to the general reserve fund, statutory surplus reserve and education development reserve as of December 31, 2015 and 2016: As of December 31, 2015 2016 RMB RMB General and statutory surplus reserve 59,307 59,309 Education development reserve 21,698 21,698 Total 81,005 81,007 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 23. RELATED PARTY TRANSACTIONS a. Transactions The Group entered into the following transactions with related parties: Years ended December 31, Transactions 2014 2015 2016 RMB RMB RMB Repayments to Executive Principal of Ambow Research Center (Note i) - (3,960) - Loan to/(collection from) A, a member of management team of the Company (Note ii) 2,770 (1,670) - Borrowing from/(repaid to) A, a member of management team of the Company (Note iii) 500 (1,350) - Loan to/(collection from) a member of management team of Beijing SIWA Century Zhisheng Education Technology Co., Ltd. (“Century Zhisheng”) (Note ii) 10 199 (24) Loan to Suzhou Chengpingheng Software Engineering Co., Ltd , an entity controlled by a member of management team of Century Zhisheng (Note iv) - 138 - Borrowing from a member of management team of Century Zhisheng (iii) 3,143 1,089 - Borrowing from Shandong Shichuang Software Engineering Co., Ltd., an entity controlled by Executive Principal of Ambow Research Center (Note iv) 3,430 - - Loan to B, a member of management team of the Company (Note ii) - 400 - Note (i) Due to the shortage of working capital, the Company borrowed funds from one management personnel. The borrowing of RMB 2,000 1,960 24 3,960 Note (ii) The loans were to management for operation purpose. Note (iii) The borrowings were made from management for operation purpose. The borrowings of RMB 3,143 1,089 500 10 Note (iv) The loans to and/or borrowings from entities controlled by of management were made for operation purpose without interest bearing and maturity date. b. The Group had the following balances with related parties: Amounts due from related parties Amounts due to related parties As of December 31, As of December 31, Relationship 2015 2016 2015 2016 RMB RMB RMB RMB A, a member of management team of the Company (Note 23 a (ii) & (iii)) 1,100 1,100 - - A member of management team of Century Zhisheng (Note 23 a (ii)) 209 185 4,232 4,232 Entity controlled by a member of management team of Century Zhisheng - Suzhou Chengpingheng Software Engineering Co., Ltd (Note 23a (iv)) 138 138 - - Entity controlled by Executive Principal of Ambow Research Center - Shandong Shichuang Software Engineering Co., Ltd. (Note 23 a (iv)) - - 3,430 3,430 B, a member of management team of the Company (Note 23 a (ii)) 400 400 - - 1,847 1,823 7,662 7,662 c. Principal shareholder transaction On October 26, 2011, Dr. Jin Huang, chief executive officer of the Company, and holder of more than 10 50.0 The return on the investment in Class A Ordinary Shares as contemplated by the Participation Agreement will be shared between Campus and Dr. Huang after Campus has received a minimum return on its investment following the occurrence of agreed transfer events. Dr. Huang’s share of such return will be dependent on the portfolio values of the Class A Ordinary Shares acquired by Campus plus the value of all other property delivered as a dividend or other distribution on such Class A Ordinary Shares (the “Portfolio Value”) expressed as a multiple of Campus’ net investment amount as set forth in the Participation Agreement and can be paid to Dr. Huang in cash, in Class A Ordinary Shares or a combination of cash and Class A Ordinary Shares. To secure Campus’ obligations under the Participation Agreement, Campus entered into a charge (the “Campus Share Charge”) in favor of Spin-Rich Ltd (“Spin-Rich”), a British Virgin Islands company that is wholly owned by Dr. Jin Huang, the president and chief executive officer of the Company, over 60,606 202,592 Between November 9, 2011 and January 25, 2012, Campus purchased an aggregate of 398,153 311,505 50,000 Management has assessed the accounting treatment for this transaction and believes that it should be accounted for as a share base compensation pursuant to FASB ASC Topic 718. The fair value of the combined terms of the Participation Agreement was approximately RMB 215,274 34,554 54,311 8,876 44,686 7,222 d. Share Interest Assignment between CEIHL and New Flourish On August 31, 2014, CEIHL entered a Share Interest Assignment Agreement with New Flourish, an entity control by CEO of the Company. Pursuant to the Assignment Agreement, CEIHL agreed to sell 5,678,963 5,779 433,333 On September 5, 2014, CEIHL converted US$ 31,692 5,678,963 Management has assessed the accounting treatment for this transaction which was regarded as one time settlement awards to Company’s senior management for past contribution to the Group and management believes that it should be accounted for as a one off share-based compensation pursuant to FASB ASC Topic 718. The discounted total consideration is US$ 4,257 19,678 3.465 94,360 15,421 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
DISCONTINUED OPERATIONS [Abstract] | |
DISCONTINUED OPERATIONS | 24. DISCONTINUED OPERATIONS a. Disposal of Jinghan Group On November 10, 2014, the Company entered into a sale and purchase agreement to dispose of all its interest in Jinghan Group to a third party, with net consideration of RMB 500,000 18,195 122,822 25,959 96,863 343,912 500,000 b. Discontinued operations Following are revenue and income (loss) from discontinued operation: Jinghan Group Years ended December, 31 2014 2015 2016 RMB RMB RMB Revenues 679,295 171,938 - Impairment loss - - - Loss from discontinued operation (73,499) (4,499) - Income tax benefit 15,735 1,385 - Loss from discontinued operation, net of income tax (57,764) (3,114) - Income on sale of discontinued operation, net of income tax (note(i)) - 343,912 - Income (loss) from and on sale of discontinued operation, net of income tax (57,764) 340,798 - Note (i) Foreign currency translation adjustment included in the loss on sale of discontinued operation is RMB 9,084 |
GAIN ON DISPOSAL OF SUBSIDIARY
GAIN ON DISPOSAL OF SUBSIDIARY | 12 Months Ended |
Dec. 31, 2016 | |
GAIN ON DISPOSAL OF SUBSIDIARY [Abstract] | |
GAIN ON DISPOSAL OF SUBSIDIARY | 25. GAIN ON DISPOSAL OF SUBSIDIARY Medium Range Online (Beijing) Technology Co., Ltd (“Zhongcheng”) is a company focusing on careen enhancement, acquired on September 2, 2009 and 100 70 9,090 30 693 6,710 7,403 As of December 31, 2015, the Company could not exercise its significant influence over the operating and financial policies of Zhongcheng, and did not expect to receive any economic benefit from the investment, thus recorded full impairment loss upon its 30% interest in Zhongcheng with an amount of RMB 693 |
DECONSOLIDATION AND RECONSOLIDA
DECONSOLIDATION AND RECONSOLIDATION | 12 Months Ended |
Dec. 31, 2016 | |
DECONSOLIDATION AND RECONSOLIDATION [Abstract] | |
DECONSOLIDATION AND RECONSOLIDATION | 26. DECONSOLIDATION AND RECONSOLIDATION a. Deconsolidation in 2014: In 2014, the principal of Jilin Tutoring lost confidence in the Group and stopped providing financial statements and reporting operation results to the Group after September 30, 2014, which was determined as the date that the Group ceased to have substantial control on Jilin Tutoring. Afterwards, the Group did not have any continuing involvement with Jilin Tutoring. During the year ended December 31, 2014, the Group recognized a total impairment loss amounting to RMB 29,462 Because of the deconsolidation, the amount due from the deconsolidated subsidiaries of RMB 4,750 The Company has regained control over Jilin Tutoring in the second half of 2015. However, all the operations of this deconsolidated entity has ceased. In the year of 2016, the Management took measures to gradually restore operation of these entities. b. Reconsolidation in 2015: In the second half of 2015, a legal team has been sent to resolve these issues with the ex-owners. The Company has regained control of the deconsolidated entities. As a result, the financials of these entities have been consolidated in its 2015 consolidated financial statements. Income resulting from reconsolidation of previously de-consolidated entities was RMB 14,127 49,472 38,696 3,351 |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2016 | |
NON-CONTROLLING INTERESTS [Abstract] | |
NON-CONTROLLING INTERESTS | 27. NON-CONTROLLING INTERESTS As of January 1, 2013, the Group recognized a non-controlling interest in the consolidated statements of operations and other comprehensive income (loss) to reflect the 5 10 30 36 23 In 2013, the 5 30 In 2014, the Group established Shanghai Tongguo under Ambow Shanghai, with a non-controlling interest of 31 270 In 2015, the 36 5 163 In 2016, the Group established Suzhou Jiaxue under Ambow Zhixin, with a non-controlling interest of 40 400 40 396 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 28. FAIR VALUE MEASUREMENTS The Group adopted ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value, establishes a framework for measuring fair value and expands financial statement disclosure requirements for fair value measurements. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1-Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2-Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3-Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Management of the Group is responsible for determining the fair value of equity issued, assets acquired, liabilities assumed and intangibles identified as of the acquisition date and considered a number of factors including valuations from independent appraiser. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group measures fair value using valuation techniques that use, when possible, current market-based or independently-sourced market parameters, such as interest rates and currency rates. The following is a description of the valuation techniques that the Group uses to measure the fair value of assets and liabilities that are measured and reported at fair value on a recurring basis: At December 31, 2016 and 2015 information about inputs into the fair value measurements of the assets and liabilities that the Group makes on a recurring basis were as follows: Fair Value Measurements at Reporting Date Using Total Fair Quoted Prices Value and in Active Significant Significant Carrying Markets Other Unobservable Value on for Identical Observable Inputs Balance Sheet Assets (Level 1) Inputs (Level 2) (Level 3) As of December 31, 2016 Assets: Short term investments, available for sale 174,811 174,811 - - Fair Value Measurements at Reporting Date Using Total Fair Quoted Prices Value and in Active Significant Significant Carrying Markets Other Unobservable Value on for Identical Observable Inputs Balance Sheet Assets (Level 1) Inputs (Level 2) (Level 3) As of December 31, 2015 Assets: Short term investments, available for sale 103,602 103,602 - - The following table presents the quantitative information about the Group’s Level 3 fair value measurements of intangible assets in 2015 and 2016, which utilize significant unobservable internally-developed inputs: Fair value Valuation Unobservable inputs Range Intangible assets as of September 30, 2015 61,354 Relief-from-royalty Royalty rate 1%-7% method Discount rate 16%-22% Terminal growth rate 3% Intangible assets as of September 30, 2016 115,941 Relief-from-royalty Royalty rate 0%-9% method Discount rate 16%-22% Terminal growth rate 3% |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2016 | |
CONCENTRATIONS [Abstract] | |
CONCENTRATIONS | 29. CONCENTRATIONS Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, term deposits, accounts receivable, other receivable, amounts due from related parties and other non-current assets, and advances to suppliers. The Group places its cash and cash equivalents and term deposits with financial institutions with high-credit ratings. The Group conducts credit evaluations of its customers and suppliers, and generally does not require collateral or other security from them. The Group evaluates its collection experience and long outstanding balances to determine the need for an allowance for doubtful accounts. No single customer represented 10% or more of the Group’s total revenues for the years ended December 31, 2014, 2015 and 2016. No single supplier represented 10% or more of the Group’s total costs of sales for the years ended December 31, 2014, 2015 and 2016. As of December 31, 2015 2016 Debtors RMB % RMB % Accounts receivable Company A 1,483 13 % 1,313 10 % Prepaid and other current assets Company B 49,800 32 % 49,800 32 % Company C 35,000 22 % 35,000 23 % Company D 25,959 17 % 25,959 17 % Other non-current assets Company E 1,858 36 % 1,570 25 % Consideration receivable Company F 8,500 100 % 8,500 100 % The Chinese market in which the Group operates exposes the Group to certain macroeconomic and regulatory risks and uncertainties. These uncertainties extend to the ability of the Group to provide educational and career enhancement services through contractual arrangements in the PRC since this industry remains highly regulated. The Chinese government may issue from time to time new laws or new interpretations on existing laws to regulate the education industry. Regulatory risk also encompasses the interpretation by the tax authorities of current tax laws, the status of properties leased for the Group’s operations and the Group’s legal structure and scope of operations in the PRC, which could be subject to further restrictions resulting in limitations on the Group’s ability to conduct business in the PRC. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 30. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of issuance of this consolidated financial statements, except the purchase of an office property as stated in Note 12, and the Company does not identified events with material financial impact on the Group’s consolidated financial statements. |
ADDITIONAL INFORMATION - CONDEN
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2016 | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Abstract] | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS | 31. ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS Relevant PRC statutory laws and regulations permit the payment of dividends by the Group’s PRC VIEs and subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, PRC laws and regulations require that annual appropriations of certain percentages of the after-tax income or the increase in net assets for the year (as determined under accounting principles generally accepted in the PRC) should be set aside at each year end as a reserve prior to the payment of dividends. As a result of these PRC laws and regulations, the Group’s PRC VIEs and subsidiaries are restricted in their ability to transfer a portion of their net assets to the Group either in the form of dividends, loans or advances. The Group’s restricted net assets, comprising of the registered paid in capital and statutory reserve of Company’s PRC subsidiaries and VIEs, were RMB 1,340,756 1,351,757 The condensed financial statements of the Company have been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Company used the equity method to account for investments in its subsidiaries and VIEs. The Company, its subsidiaries and VIEs were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. For the purpose of the Company’s condensed financial statements, its investments in subsidiaries are reported using the equity method of accounting. The Company is a Cayman Islands company, therefore, is not subjected to income taxes for all years presented. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S GAAP have been condensed or omitted. As of December 31, 2015 and 2016, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. Balance Sheets (All amounts in thousands, except for share and per share data) As of December 31, 2015 2016 2016 RMB RMB US$ Note 3(a) ASSETS Current assets: Cash and cash equivalents 8,658 1,467 211 Amounts due from related parties 201,341 183,676 26,456 Prepaid expenses and other current assets 160 341 49 Total current assets 210,159 185,484 26,716 Non-current assets: Intangible assets, net 16 8 1 Investment in subsidiaries - - - Total non-current assets 16 8 1 Total assets 210,175 185,492 26,717 LIABILITIES Current liabilities: Amounts due to related parties 14,839 19,605 2,824 Accrued and other liabilities 51,540 49,371 7,111 Total current liabilities 66,379 68,976 9,935 Total non-current liabilities - - - Total liabilities 66,379 68,976 9,935 SHAREHOLDERS’ EQUITY Ordinary shares (US$ 0.003 par value; 40,000,000 and 40,000,000 shares authorized, 38,265,177 and 38,699,095 shares issued and outstanding as of December 31, 2015 and 2016, respectively) 717 726 105 Additional paid-in capital 3,445,408 3,453,227 497,368 Accumulated deficit (3,307,442) (3,343,142) (481,513) Accumulated other comprehensive income 5,113 5,705 822 Total shareholders’ equity 143,796 116,516 16,782 Total liabilities and shareholders’ equity 210,175 185,492 26,717 Statements of Operations (All amounts in thousands, except for share and per share data) Years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Note 3(a) NET REVENUES - Educational program and services - - - - Cost of revenues - Educational program and services - - - - GROSS LOSS - - - - Operating expenses: Selling and marketing (348) (410) - - General and administrative (229,814) (79,562) (18,854) (2,716) Research and development (144) (660) - - Total operating expenses (230,306) (80,632) (18,854) (2,716) OPERATING LOSS (230,306) (80,632) (18,854) (2,716) Share of income (loss) from subsidiaries (609,711) 201,051 (23,274) (3,352) OTHER EXPENSE Interest income (expense) net (91,064) (56,549) 1 - Loss from extinguishment of debt (143,901) - - - Foreign exchange losses, net (459) (131) - - Other income (expense), net (1,372) 6,427 927 Income tax - - - - NET (LOSS) INCOME (1,076,813) 63,739 (35,700) (5,141) Statements of Cash Flows (All amounts in thousands, except for share and per share data) Years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Note 3(a) Cash flows from operating activities (109,368) (40,384) (6,348) (914) Cash flows from investing activities - - - - Cash flows from financing activities 109,330 48,876 (843) (121) Effects of exchange rate changes on cash and cash equivalents 2 - - - Net change in cash and cash equivalents (36) 8,492 (7,191) (1,035) Cash and cash equivalents at beginning of year 202 166 8,658 1,246 Cash and cash equivalents at end of year 166 8,658 1,467 211 Supplemental disclosure of cash flow information Supplemental disclosure of non-cash investing and financing activities Shares surrender by SummitView 67,309 - - - Conversion of convertible loan to ordinary shares and waiver of related accrued interest expenses 226,298 70,146 - - Receipt of convertible loan by settlement of debt 80,000 - - - |
SIGNIFICANT ACCOUNTING POLICI39
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of presentation | a. Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). All amounts in the accompanying 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 6.9430 As mentioned in Note 1 (a) and Note 24, Jinghan Group have been disposed in 2015 and its operations have been classified as discontinued operations for the years ended December 31, 2014 and 2015. The disposal of Jinghan Group has been completed by April 8, 2015. |
Comparability due to discontinued operations and reclassification adjustment | b. Comparability due to discontinued operations and reclassification adjustment Certain accounts in the consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2014 and related notes have been retrospectively adjusted to reflect the effect of discontinued operations. See Note 24 for details of discontinued operations. The results of discontinued operations in 2014 and 2015 have been reflected separately in the consolidated statement of operations as a single line item for all periods presented in accordance with U.S. GAAP. Cash flows from discontinued operations for the years ended December 31, 2014 and 2015 were combined with the cash flows from continuing operations within each of the three categories. |
Use of estimates | c. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liabilities. On an on-going basis, the Group evaluates its estimates, including those related to the useful lives of long-lived assets including property and equipment, stock-based compensation, impairment of goodwill and other intangible assets, income taxes, provision for doubtful accounts and contingencies. The Group bases its estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, when these carrying values are not readily available from other sources. Actual results may differ from these estimates. |
Basis of consolidation | d. Basis of consolidation All significant inter-company transactions and balances have been eliminated upon consolidation. Non-controlling interests represent the equity interests in the Company’s subsidiaries and VIEs that are not attributable, either directly or indirectly, to the Company. The consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIEs. The Company deconsolidates a subsidiary or derecognizes a group of assets as of the date the Company ceases to have a controlling financial interest in that subsidiary or group of assets. In 2013, the Group deconsolidated 3 |
Cash and cash equivalents | e. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash in bank with no restrictions, as well as highly liquid investments which are unrestricted as to withdrawal or use, and which have remaining maturities of three months or less when initially purchased. |
Restricted cash | f. Restricted cash Restricted cash relates to special deposit accounts required by the Education Commission for the purpose of preventing abusive use of tuition and fees of educational and training institutions. |
Term deposits | g. Term deposits Term deposits consist of bank deposits with an original maturity of between three to twelve months. |
Short term investments | h. Short term investments Short term investments consist of held-to-maturity investments and available-for-sale investments. The Group’s held-to-maturity investments consist of financial products purchased from banks. The Group’s short-term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. Investments classified as available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are reported net of tax in accumulated other comprehensive income until realized. The Group reviews its investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Group’s intent and ability to hold the investment. OTTI is recognized as a loss in the income statement. |
Accounts receivable | i. Accounts receivable Accounts receivable mainly represent the amounts due from the customers or students of the Company’s various subsidiaries and VIEs. |
Allowance for doubtful accounts | j. Allowance for doubtful accounts An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable based on an assessment of specific evidence indicating doubtful collection, historical experience, account balance aging and prevailing economic conditions. Doubtful accounts balances are written off and deducted from allowance, when receivable are deemed uncollectible, after all collection efforts have been exhausted and the potential for recovery is considered remote. |
Land use rights | k. Land use rights Land use rights are recorded at cost less accumulated amortization. Amortization is provided on straight-line basis over the useful life of land use right. |
Property and equipment | l. Property and equipment Property and equipment is stated at cost less accumulated depreciation. Buildings 20 40 Motor vehicles 5 Office and computer equipment 3 5 Leasehold improvements Shorter of the remaining lease terms or estimated useful lives |
Intangible assets | m. Intangible assets Intangible assets represent software, trade name, student population, corporative agreement, customer relationship, favorable lease, non-compete agreement. The software was initially recorded at historic acquisition costs or cost directly incurred to develop the software during the application development stage that can provide future benefits, and amortized on a straight-line basis over estimated useful lives. Other finite lived intangible assets are initially recorded at fair value when acquired in a business combination, in which the finite intangible assets are amortized on a straight-line basis except student populations and customer relationships which are amortized using an accelerated method to reflect the expected departure rate over the remaining useful life of the asset. The Group reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. Software 2 10 Student populations 1.8 15 Customer relationships 5.7 Cooperative agreements 1.3 10 Favorable leases 0.8 20 Non-compete agreements 3 4.5 Trade names Indefinite The Group has determined that trade names have the continued ability to generate cash flows indefinitely. There are no legal, regulatory, contractual, economic or other factors limiting the useful life of the respective trade names. Consequently, the carrying amounts of trade names are not amortized but are tested for impairment annually in the fourth quarter or more frequently if events or circumstances indicate that the assets may be impaired. Such impairment test consists of a comparison of the fair values of the trade names with their carrying amounts and an impairment loss is recognized if and when the carrying amounts of the trade names exceed their fair values. The Group performed impairment testing of indefinite-lived intangible assets in accordance with ASC 350, which requires an entity to evaluate events and circumstances that may affect the significant inputs used to determine the fair value of the indefinite-lived intangible assets when performing qualitative assessment. When these events occur, the Group estimates the fair value of these trade names with the Relief from Royalty method (“RFR”), which is one of the income approaches. RFR method is generally applied for assets that frequently licensed in exchange for royalty payments. As the owner of the asset is relieved from paying such royalties to a third party for using the asset, economic benefit is reflected by notional royalty savings. An impairment loss is recognized for any excess in the carrying value over the fair value of trade names. |
Segments | n. Segments The Group evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Group evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Group determines if the segments are economically similar and, if so, the operating segments are aggregated. The Group has three reportable segments in 2014, 2015 and 2016. For further details, see Note 21. |
Goodwill | o. Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination or an acquisition by an entity that are not individually identified and separately recognized. Goodwill acquired in a business combination is tested for impairment at least annually or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The Group performed impairment analysis on goodwill as of September 30 every year either beginning with a qualitative assessment, or starting with the quantitative two-step process instead. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. A reporting unit constitutes a business for which discrete profit and loss financial information is available. The fair value of each reporting unit is established using a combination of expected present value of future cash flows. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Determining when to test for impairment, the Group’s reporting units, the fair value of a reporting unit and the fair value of assets and liabilities within a reporting unit, requires judgment and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions and determination of appropriate market comparable. The Group bases fair value estimates on assumptions it believes to be reasonable but that are unpredictable and inherently uncertain. Significant changes in the economic characteristics of components or reorganization of an entity’s reporting structure can sometimes result in a re-assessment of the affected operating segment and its components to determine whether reporting units need to be redefined where the components are no longer economically similar. Future changes in the judgments and estimates underlying the Group’s analysis of goodwill for possible impairment, including expected future cash flows and discount rate, could result in a significantly different estimate of the fair value of the reporting units and could result in additional impairment of goodwill. |
Impairment of long-lived assets | p. Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, using the expected future discounted cash flows. |
Revenue recognition | q. Revenue recognition The Group’s revenue is generated from delivering educational programs and services. The Group’s customers include mainly students attending classes at its own schools, training centers or college; students attending classes run by the Group’s cooperative partners; corporate clients attending the Group’s outbound and management training classes; and distributors whom the Group sells its services to. Revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, service is performed and collectability of the related fee is reasonably assured. Revenues presented in the consolidated financial statements represent revenues from educational programs and services. If any of the aforementioned criteria are not met, the Group defers the recognition of revenue until all criteria are met. Educational programs and services Educational programs and services primarily consist of primary and secondary curriculum education, tutoring programs that supplement primary and secondary curriculum education and career enhancement and other corporate training programs that are provided directly or indirectly to customers, where the Group is responsible for delivery of the programs and services. The Group normally collects tuition fee up front and the students consume the learning hours they bought along with a set courses schedule or upon their own decision. Tuition fees is generally paid in advance and is initially recorded as deferred revenue and is amortized and recognized as revenue along with the students consuming pace. For the curriculum education programs, the tuition revenue, including accommodation, is recognized on a straight-line basis over the length of the course, which is typically over a period of a semester. For tutoring programs, tuition revenue is recognized on a straight-line basis over the period during which tutoring services are provided to students. Educational materials revenue, which is immaterial and has not been disclosed separately, relates to the sales of books, course materials, course notes for which the Group recognizes revenue when the materials have been delivered to students. Educational programs and services also include programs offered online which could be accessed through a username and password. Revenue of this service offering is recognized when programs are delivered online, and collected within one to three months. As of December 31, 2015 2016 RMB RMB Career Enhancement 38,820 34,264 K-12 54,571 60,944 Tutoring 22,495 14,276 Total 115,886 109,484 |
Cost of revenues | r. Cost of revenues Cost of revenues for educational programs and services primarily consist of teaching fees and performance-linked bonuses paid to the teachers, rental payments for the schools and learning centers, depreciation and amortization of property, equipment and land use rights used in the provision of educational services, costs of educational materials. |
Leases | s. Leases Operating lease Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Minimum lease payments, including scheduled rent increases, made under operating leases are charged to the consolidated statements of operations and other comprehensive income (loss) on a straight-line basis over the lease term. Contingent rentals are excluded from minimum lease payments, and are recognized as expense when the achievement of the specified target is considered probable. Capital lease When the lease term is equal to 75 percent or more of the estimated economic life of the leased property, the lease is classified as a capital lease, where the lessee assumes substantially all the benefits and risks of ownership. The depreciation is calculated on a straight-line basis over the lease term. In a capital lease, assets and liabilities are recorded at the amount of the lesser of (a) the fair value of the leased asset at the inception of the lease or (b) the present value of the minimum lease payments (excluding executing costs) over the lease term. Recorded assets are depreciated over the lease terms. During the lease term, each minimum lease payment is allocated between a reduction of the obligation and interest expense to produce a constant periodic rate of interest on the remaining balance of the obligation. |
Research and development | t. Research and development Research and development expenses comprise of (a) payroll, employee benefits, and other headcount-related costs associated with the development of online education technology platforms and courseware, and (b) outsourced development costs. Except for costs related to internal use software and website development costs, the Group expenses all other research and development costs when incurred for the years presented. For internal use software, the Group expenses all costs that are incurred in connection with the planning and implementation phases of development and costs that are associated with repair or maintenance of the existing software. Direct costs incurred to develop the software during the application development stage that can provide future benefits are capitalized. Capitalized internal use software and website development costs are included in intangible assets. |
Penalty charge on borrowings | u. Penalty charge on borrowings The Group recognizes penalty charges on outstanding borrowings according to individual loan contracts and agreements, which are reported as a component of interest expense in the consolidated financial statements. |
Advertising costs | v. Advertising costs The Group expenses advertising costs as incurred. Total advertising expenses of continuing operations were RMB 4,435 1,858 1,857 |
Foreign currency translation and transactions | w. Foreign currency translation and transactions The Group uses RMB as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands, Hong Kong and the British Virgin Islands is the US$, while the functional currency of the other entities in the Group is the RMB. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ as their functional currency, has been translated into RMB. Assets and liabilities are translated from each subsidiary’s functional currency at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income or loss in the statement of shareholders’ equity and comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange gain/loss, net on the consolidated statement of operations. |
Foreign currency risk | x. Foreign currency risk The RMB is regulated by the PRC government and is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of PRC, controls the conversion of RMB into foreign currencies. Limitations on foreign exchange transactions imposed by the PRC government could cause future exchange rates to vary significantly from current or historical exchange rates. Further, the value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the PRC Foreign Exchange Trading System market. |
Fair value of financial instruments | y. Fair value of financial instruments Financial instruments include cash and cash equivalents, short term investments, available for sale and short term investments, held to maturity, accounts receivable, accounts payable, borrowings and amounts due from and due to related parties. The carrying values of the financial instruments approximate their fair values due to their short-term maturities. |
Net income (loss) per share | z. Net income (loss) per share Basic earnings per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the year. Ordinary equivalent shares consist of the ordinary shares issuable upon the conversion of the convertible loans (using the if-converted method) and ordinary shares issuable upon the exercise of outstanding share options (using the treasury stock method). Ordinary equivalent shares are excluded from the computation of the diluted net income per share in years when their effect would be anti-dilutive. Ordinary equivalent shares are also excluded from the calculation in loss periods, as their effects would be anti-dilutive. On September 4, 2015, the Company effected a one-for-thirty reverse stock split. The principal effect of the Reverse Split was to decrease the number of outstanding shares of each of the Company’s common shares. All per share amounts and shares outstanding for all the periods have been retroactively restated to reflect the Reverse Split. |
Income taxes | aa. Income taxes Income taxes are provided for in accordance with the laws of the relevant taxing authorities. Income tax expense has been allocated between continued and discontinued operations in all periods to reflect the respective net operating results. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not some portion or all of the deferred tax assets will not be realized. All the deferred tax liabilities and assets have been classified as noncurrent in the consolidated balance sheets. The Group recognizes interest and penalties as income tax. As of December 31, 2015, in order to simplify financial presentation, the Company adopted ASU 2015-17 Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes and applied this Update retrospectively. Deferred tax liabilities and assets were classified as noncurrent in the consolidated balance sheets as of December 31, 2015 and 2016, respectively. This reclassification of deferred tax assets had no impact on the consolidated statements of operations and comprehensive income (loss), consolidated statements of changes in equity (deficit) and consolidated statements of cash flows for the year ended 2014. |
Uncertain tax positions | Uncertain tax positions The Group adopted the guidance on accounting for uncertainty in income taxes, which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on the de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Group believes that certain positions might be challenged despite its belief that its tax return positions are in accordance with applicable tax laws. The Group adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the effect of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties where applicable. See Note 18 (c) for additional information. In 2014, the Group received a document from the tax bureau cancelling Ambow Online’s preferential tax treatment. The Group had taken legal action to defend itself, also accrued the income tax and overdue fee for the year of 2014. In 2015, the Group lost the case and accrued the overdue fee by the end of 2015. In 2016, the Group accrued the overdue fee by the end of 2016. See Note 20 for detail. Also see Note 18 for details of the Group’s tax position as of December 31, 2016. |
Comprehensive income | cc. Comprehensive income U.S. GAAP generally requires that recognized revenue, expenses, gains and losses be included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income or loss. The components of other comprehensive income or loss consist of unrealized gain or loss on short term investments, available for sale and foreign currency translation adjustments. |
Share-based compensation | dd. Share-based compensation The Group grants share options/restricted stock to its employees, directors and non-employees. The Group measures the cost of employee services received at the grant-date using the fair value of the equity instrument issued net of an estimated forfeiture rate, and therefore only recognizes compensation costs for those shares expected to vest over the service period of the award. The Group records stock-based compensation expense on a straight-line basis over the requisite service period, generally ranging from one year to four years. Cost of services received from non-employees is measured at fair value at the earlier of the performance commitment date or the date service is completed and recognized over the period the service is provided. To the extent the Group recognizes any cost of service prior to the time the non-employees complete their performance, any interim measurements that the Group makes during the performance period are made at the then current fair values of equity instruments at each of those interim financial reporting dates. Forfeitures are estimated at the time of grant and revised in the subsequent periods if actual forfeitures differ from those estimates. |
Discontinued Operations | ee. Discontinued Operations A discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: (1) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; (3) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). |
Extinguishment of debt | ff. Extinguishment of debt An exchange of debt instruments with substantially different terms is accounted for as a debt extinguishment. A debtor could achieve the same economic effect as an exchange of a debt instrument by making a substantial modification of terms of an existing debt instrument. A difference between the reacquisition price and the net carrying amount of the extinguished debt is recognized currently in income of the period of extinguishment as losses or gains and identified as a separate item. Gains and losses are not be amortized to future periods. |
Loss contingencies | gg. Loss contingencies An estimated loss contingency is accrued and charged to the consolidated statements of operations and other comprehensive income (loss) if both of the following conditions are met: (1) Information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements. It is implicit in this condition that it must be probable that one or more future events will occur confirming the fact of the loss; (2) The amount of loss can be reasonably estimated. The Group reviews its contingent issues on a timely basis to identify whether the above conditions are met. |
Recently issued accounting pronouncements | hh. Recently issued accounting pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, or ASU 2014-09. This new standard (Topic 606) will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to correlate with the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year, while allowing a company to adopt the new revenue standard early but not before the original effective date. In March 2016, the FASB issued ASU 2016-08, which amends the principal-versus-agent implementation guidance and illustrations in the new revenue standard. ASU No. 2016-08 specifically provides clarification around performance obligations for goods or services provided by another entity, assisting in determining whether the entity is the provider of the goods or services, the principal, or whether the entity is providing for the arrangement of the goods or services, the agent. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU No. 2016-10 provides guidance around identifying whether promised goods or services are distinct and separately identifiable, whether promised goods or services are material or immaterial to the contract, and whether shipping and handling is considered an activity to fulfill a promise or an additional promised service. ASU No. 2016-10 also provides guidance around an entity's promise to grant a license providing a customer with either a right to use or a right to access the license, which then determines whether the obligation is satisfied at a point in time or over time, respectively. In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which rescinds various standards codified as part of Topic 605, Revenue Recognition in relation to the future adoption of Topic 606. These rescissions include changes to topics pertaining to revenue and expense recognition including accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. The above standards will be effective for us on January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and disclosures. Based on its preliminary evaluation of ASU No. 2014-09, the Company expects no material impact on its results of operations or cash flows in the periods after adoption. The Company expects to complete its assessment of the effect of adopting ASU No. 2014-09 by the end of 2017, as well as the selection of a transition approach. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this Update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this Update require public business entities that are required to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion consistent with Topic 820, Fair Value Measurement. The amendments in this Update require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option. The amendments in this Update require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application by public business entities to financial statements of fiscal years or interim periods that have not yet been issued or, by all other entities, that have not yet been made available for issuance of the following amendments in this Update are permitted as of the beginning of the fiscal year of adoption: an entity should present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The Company does not expect the adoption of ASU No. 2016-01 will have a significant effect on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard creates Topic 842, Leases, in the FASB Accounting Standards Codification (FASB ASC) and supersedes FASB ASC 840, Leases. ASU 2016-02 requires a lessee to recognize the assets and liabilities that arise from leases (operating and finance). However, for leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and disclosures. Based on its preliminary evaluation of ASU No. 2016-02, the Company expects the recognition of lease assets and lease liabilities for operating leases on its statements of financial position as of December 31, 2019 and 2018 after adoption. The Company expects no material impact on its results of operations or cash flows in the periods after adoption. The Company expects to complete its assessment of the effect of adopting ASU No. 2016-02 by the end of 2018. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments require that all excess tax benefits and all tax deficiencies should be recognized as income tax expense or benefit in the income statement and that those benefits and deficiencies are discrete items in the reporting period in which they occur. Because excess tax benefits are no longer recognized in additional paid in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share is amended to exclude the amount of excess tax benefits that would be recognized in additional paid-in capital. The amendments also require to no longer delay recognition of a tax benefit until the tax benefit is realized through a reduction to taxes payable. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company does not expect the adoption of ASU No. 2016-09 will have a significant effect on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. Earlier adoption is permitted. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Company elected to early adopt this guidance on a retrospective basis and have applied the changes to the consolidated statements of cash flows as of December 31, 2014, December 31, 2015 and December 31, 2016. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 from the goodwill impairment test. Under the amendments in this update, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective for the Company beginning in the first quarter of fiscal 2021. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company will early adopt ASU 2017-04 in the third quarter of fiscal 2017 with the annual goodwill impairment tests. The Company does not expect the adoption of ASU No. 2017-04 will have a significant effect on its consolidated financial statements. Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the company’s consolidated results of operations or financial position. |
ORGANIZATION AND PRINCIPAL AC40
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | |
Schedule of the Company's Major Subsidiaries and VIEs | Name Date of incorporation or establishment Place of Incorporation (or establishment) /operation Principal activity Subsidiaries Beijing Ambow Online Software Co., Ltd. (“Ambow Online”) August 24, 2000 PRC Software product and Investment holding Ambow Education Co., Ltd. January 25, 2005 Cayman Islands Investment holding Ambow Education Ltd. June 6, 2007 Cayman Islands Investment holding Ambow Education (Hong Kong) Ltd. December 17, 2007 Hong Kong Investment holding Beijing Ambow Chuangying Education and Technology Co., Ltd. January 18, 2008 PRC Investment holding Wenjian Gongying Venture Investment Enterprise July 20, 2009 PRC Investment holding Ambow (Dalian) Education and Technology Co., Ltd. March 10, 2009 PRC Career enhancement and Investment holding Ambow Education Management (Hong Kong ) Ltd. November 9, 2009 Hong Kong Investment holding Name Date of incorporation or establishment Place of Incorporation (or establishment) /operation Principal activity Ambow Education Management Ltd. June 6, 2007 Cayman Islands Investment holding Ambow Shengying October 13, 2008 PRC Investment holding Tianjin Ambow Yuhua Software Information Co., Ltd. (“Ambow Yuhua”) March 31, 2010 PRC Software product and Investment holding Ambow University Inc. July 5, 2016 United States Investment holding Variable interest entities ( “ VIEs ) Beijing Normal University Ambow Education Technology Co., Ltd. (“Ambow Shida”) July 30, 2004 PRC Investment holding Shanghai Ambow Education Information Consulting Co., Ltd. (“Ambow Shanghai”) May 16, 2006 PRC Investment holding Ambow Sihua April 17, 2007 PRC Investment holding Suzhou Wenjian Venture Investment Management Consulting Co., Ltd. (“Suzhou Wenjian”) February 25, 2009 PRC Investment holding Ambow Rongye September 8, 2015 PRC Investment holding Ambow Zhixin October 14, 2015 PRC Investment holding Name Date of incorporation or establishment Place of Incorporation (or establishment) /operation Principal activity Subsidiaries of VIEs Jinan Wangrong Investment Consulting Co., Ltd. May 21,2010 PRC Career Enhancement Hebei Yuanlong Corporate Management Co., Ltd. (“Hebei YL Career Enhancement”) January 13, 2011 PRC Career Enhancement Beijing Genesis Education Group (“Genesis Career Enhancement”) May 1, 2011 PRC Career Enhancement Changsha Newer Education Consulting Co., Ltd. (“Changsha Career Enhancement”) September 16, 2002 PRC Career Enhancement Kunshan Ambow August 28, 2008 PRC Career Enhancement Shanghai Hero Further Education Institute January 9, 2009 PRC Career Enhancement Beijing Century Tutoring April 1, 2002 PRC Tutoring Beijing Ambow Dacheng Education and Technology Co., Ltd. December 2, 2013 PRC Career Enhancement Shanghai Tongguo Education Technology Co., Ltd (“Shanghai Tongguo”) June 1, 2014 PRC Career Enhancement Suzhou Jiaxue January 21, 2016 PRC Career Enhancement Huanyu Liren April 27, 2016 PRC Career Enhancement Name Date of incorporation or establishment Place of Incorporation (or establishment) /operation Principal activity Schools of VIEs Changsha Study School (“Changsha Tutoring”) June 1, 1984 PRC Tutoring Beijing YZ Tutoring December 30, 1994 PRC Tutoring Hunan Changsha Tongsheng Lake Experimental School (“Changsha K-12”) June 18, 1999 PRC K-12 School Shenyang Universe High School (“Shenyang K-12”) December 8, 2003 PRC K-12 School Shuyang Galaxy School (“Shuyang K-12”) November 1, 2008 PRC K-12 School Beijing Haidian Ambow Xinganxian Training School March 28, 2005 PRC Tutoring Beijing Huairou Xinganxian Training School March 10, 2011 PRC Tutoring |
Schedule of Consolidated Financial Information of the Group's VIEs and Non-VIEs were Included in the Accompanying Consolidated Financial Statements of the Group | As of December 31, 2015 2016 RMB RMB Total assets 718,514 773,436 Total liabilities 565,818 544,547 Years ended December 31, 2014 2015 2016 RMB RMB RMB Net revenue 403,643 385,819 409,391 Net income (loss) (550,911) 370,818 (12,805) |
Schedule of the Group's Cash and Cash Equivalents Held by Foreign Banks or Foreign Currency in PRC Banks | As of December 31, 2015 2016 RMB RMB VIEs in PRC 125,850 173,772 Non-VIEs in PRC 109,820 19,425 Total RMB 235,670 193,197 |
SIGNIFICANT ACCOUNTING POLICI41
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of Estimated Useful Lives for Calculation of Depreciation | Buildings 20 40 Motor vehicles 5 Office and computer equipment 3 5 Leasehold improvements Shorter of the remaining lease terms or estimated useful lives |
Schedule of Original Useful Lives of Intangible Assets | Software 2 10 Student populations 1.8 15 Customer relationships 5.7 Cooperative agreements 1.3 10 Favorable leases 0.8 20 Non-compete agreements 3 4.5 Trade names Indefinite |
Schedule of Deferred Revenue Balances by Segments | As of December 31, 2015 2016 RMB RMB Career Enhancement 38,820 34,264 K-12 54,571 60,944 Tutoring 22,495 14,276 Total 115,886 109,484 |
CASH, CASH EQUIVALENTS AND RE42
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | Years ended December 31, 2014 2015 2016 RMB RMB RMB Cash and cash equivalents 180,285 246,303 196,900 Restricted cash 2,048 2,050 2,350 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows 182,333 248,353 199,250 |
Schedule of Changes in Cash, Cash Equivalents and Restricted Cash | Years ended December 31, 2014 2015 2016 RMB RMB RMB Changes in cash and cash equivalents included in assets held for sale 42,270 36,063 - Changes in restricted cash included in assets held for sale 1,600 2,000 - Total changes in cash, cash equivalents, and restricted cash included in assets held for sale shown in the consolidated statements of cash flows 43,870 38,063 - |
SHORT TERM INVESTMENTS (Tables)
SHORT TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHORT TERM INVESTMENTS [Abstract] | |
Schedule of short-term investments | As of December 31, 2015 2016 RMB RMB Held-to-maturity investments 151,790 64,700 Available-for-sale investments 103,602 174,811 Total 255,392 239,511 |
Schedule of amortized cost, gross unrecognized holding gains and losses, gross unrealized gain in accumulated other comprehensive income, and estimated fair value of investments | As of December 31, 2015 Amortized Gross Gross Gross unrealized Estimated RMB RMB RMB RMB RMB Short-term investments: Held-to-maturity investments Fixed-rate financial products 151,790 - - - 151,790 Available-for-sale investments Adjustable-rate financial products 102,290 - - 1,312 103,602 As of December 31, 2016 Gross unrealized Gross Gross gain in accumulated Amortized unrecognized unrecognized other comprehensive Estimated Cost holding gains holding loss income Fair value RMB RMB RMB RMB RMB Short-term investments: Held-to-maturity investments Fixed-rate financial products 64,700 - - - 64,700 Available-for-sale investments Adjustable-rate financial products 171,163 - - 3,648 174,811 |
Schedule of gross realized gains and losses on available-for-sale investments | Years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Gross realized gains on sales - 1,971 4,329 624 Gross realized loss on sales - (4,757) - - (Losses) gains on sale of available-for-sale investments - (2,786) 4,329 624 |
Schedule of interest income recognized on held-to-maturity investments | Year Ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD Interest income recognized on held-to-maturity investments - 7,027 4,078 587 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
ACCOUNTS RECEIVABLE, NET [Abstract] | |
Schedule of Accounts Receivable | As of December 31, 2015 2016 RMB RMB Accounts receivable 127,893 13,576 Less: Allowance for doubtful accounts (116,615) - Accounts receivable, net 11,278 13,576 Allowance for doubtful accounts: As of December 31, 2015 2016 RMB RMB Balance at beginning of year (116,615) (116,615) Addition (Note i) - - Written off (Note ii) - 116,615 Balance at end of year (116,615) - (Note i) No bad debt provision was provided for the years ended December 31, 2015 and 2016. (Note ii) Bad debt provision of RMB 116,615 was written off in the year of 2016, after all collection efforts have been exhausted and the potential for recovery was remote. |
PREPAID AND OTHER CURRENT ASS45
PREPAID AND OTHER CURRENT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PREPAID AND OTHER CURRENT ASSETS, NET [Abstract] | |
Schedule of Prepaid and Other Current Assets | As of December 31, 2015 2016 RMB RMB Amount due from minority shareholder (Note i) 54,023 54,023 Amount due from Xihua Group (Note ii) 49,800 49,800 Value added tax refundable (Note iii) 24,811 24,811 Due from former owners (Note iv) 14,910 5,743 Staff advances 6,389 6,008 Rental deposits 8,331 7,835 Prepaid professional services fees 2,457 3,045 Prepaid rental fees (Note v) 3,067 3,533 Receivable from Zhenjiang operating rights (Note vi) 35,000 35,000 Receivable from Jinghan Group (Note vii) 122,822 122,822 Others (Note viii) 29,748 20,302 Total before allowance for doubtful accounts 351,358 332,922 Less: allowance for doubtful accounts (Note ix) (195,254) (179,055) Total 156,104 153,867 (Note ii) A payable balance amounted to RMB 49,800 (Note iii) Management considered the collectability of VAT refund was remote as a result of tax dispute between Ambow Online, Yuhua and the tax authority, as disclosed in Note 18(c), the Group provided a provision amounting to RMB 24,811 as of December 31, 2015 and 2016. 7,808 1,360 9,168 (Note v) In 2015 an impairment loss of RMB 3,995 (Note vi) 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 December 31, 2015 and 2016, the payable balance to Zhenjiang Foreign Language School amounted to RMB 36,770 36,770 141,017 18,195 96,863 (Note viii) Others mainly included inventory, prepaid education supplies, prepaid outsourcing service fee, and other miscellaneous items with trivial amount. |
Schedule of Allowance for Doubtful Accounts | As of December 31, 2015 2016 RMB RMB Balance at beginning of year (90,731) (195,254) Addition (Note iv, vii and ix) (122,718) (1,727) Written off (Note iv and vii) 18,195 17,926 Balance at end of year (195,254) (179,055) (Note i) The balance represented Shenyang K-12’s amount due from its minority shareholder amounting to RMB 54,023, which were tuition fees that have been collected from students but were misappropriated by its minority shareholder. As of December 31, 2015 and 2016, full provision was provided as the collectability was remote. (Note iv) Provisions of RMB 7,808 1,360 9,168 (Note vii) As of December 31, 2015 and 2016, the original receivable due from Jinghan Group was RMB 141,017 18,195 96,863 |
CONSIDERATION RECEIVABLE, NET (
CONSIDERATION RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
CONSIDERATION RECEIVABLE, NET [Abstract] | |
Schedule of Consideration Receivables | As of December 31, 2015 2016 RMB RMB Receivables resulting from disposals (Note i) 14,000 14,000 Receivable resulting from disposal of Taishidian Holding (Note ii) 30,000 - Sub-total 44,000 14,000 Less: allowance for doubtful accounts (Note i & ii) (35,500) (5,500) Total 8,500 8,500 Allowance for doubtful accounts: As of December 31, 2015 2016 RMB RMB Balance at beginning of year (164,700) (35,500) Addition (Note i & ii) (35,300) - Written off (Note ii) 164,500 30,000 Balance at end of year (35,500) (5,500) (Note i) In the fourth quarter of 2011, the Group decided to concentrate its resources and focus on the Group’s core businesses. On December 2, 2011, the Company sold Xi’an Dragon Continuation School, Shandong North Resource Information Technology Co., Ltd. and Jinan Prosperous Resource Technology Co., Ltd., Guangzhou Modern Olympic Training School, and Tianjin Yimatong Technology Development Co., Ltd. to Beijing Tongshengle Investment Co., Ltd., (“Tongshengle”) for cash consideration of RMB 35,000 21,000 200 5,300 (Note ii) On July 25, 2013, the Group entered in a letter for intent with Kunshan Venture Investment Limited (“Kunshan Venture”) to transfer the equity interest of Taishidian Holding, with consideration of RMB 234,500 110,000 124,500 234,500 70,000 40,000 110,000 70,000 70,000 234,500 40,000 30,000 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
Schedule of Property and Equipment | As of December 31, 2015 2016 RMB RMB Buildings 63,643 64,222 Capital lease of property 12,000 12,000 Motor vehicles 7,113 6,173 Office and computer equipment 87,067 87,121 Leasehold improvements 66,849 70,321 Sub-total 236,672 239,837 Less: accumulated depreciation (141,690) (151,830) Total 94,982 88,007 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INTANGIBLE ASSETS, NET [Abstract] | |
Summary of Intangible assets | As of December 31, 2015 2016 RMB RMB Gross carrying amount Trade names 51,563 48,908 Student populations 38,380 38,380 Software 88,670 91,254 Customer relationships 5,270 5,270 Cooperative agreements 5,230 5,230 Favorable leases 63,237 63,237 Non-compete agreements 833 833 253,183 253,112 Less: Accumulated amortization Trade names - - Student populations (36,244) (36,964) Software (87,145) (89,138) Customer relationships (3,002) (5,270) Cooperative agreements (2,537) (3,046) Favorable leases (20,028) (23,153) Non-compete agreements (833) (833) (149,789) (158,404) Intangible assets, net Trade names 51,563 48,908 Student populations 2,136 1,416 Software 1,525 2,116 Customer relationships 2,268 - Cooperative agreements 2,693 2,184 Favorable leases 43,209 40,084 Non-compete agreements - - 103,394 94,708 |
Schedule of estimated amortization expenses of intangible assets for future annual periods | Amount RMB 2017 4,921 2018 4,438 2019 4,293 2020 4,132 2021 3,784 Thereafter 24,232 Total 45,800 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL [Abstract] | |
Schedule of changes in the carrying amount of goodwill by segment | Better Schools Better Jobs K-12 Career Tutoring Schools Subtotal Enhancement Consolidated RMB RMB RMB RMB RMB Balance as of December 31, 2014 26,609 24,815 51,424 33,117 84,541 Foreign currency translation adjustments 417 410 827 620 1,447 Balance as of December 31, 2015 27,026 25,225 52,251 33,737 85,988 Foreign currency translation adjustments 493 485 978 735 1,713 Goodwill impairment (19,747) - (19,747) - (19,747) Balance as of December 31, 2016 7,772 25,710 33,482 34,472 67,954 |
PREPAYMENT FOR ACQUISITION OF50
PREPAYMENT FOR ACQUISITION OF PROPERTY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
Prepayment For Property, Plant and Equipment | As of December 31 2015 2016 RMB RMB Prepayment for acquisition of property - 71,024 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
ACCRUED AND OTHER LIABILITIES [Abstract] | |
Schedule of Accrued and Other Liabilities | As of December 31, 2015 2016 RMB RMB Business tax, VAT and others 75,354 75,444 Payable balance with indemnity by Xihua Group (Note 7(ii)) 49,800 49,800 Accrual for rental 56,194 57,809 Payable to Zhenjiang Foreign Language School (Note 7(vi)) 36,770 36,770 Accrued payroll and welfare 35,171 34,567 Payable to Jinghan Group (Note 24(a)) 25,959 25,959 Professional service fees payable 30,022 28,368 Student tuition refund payable (i) 253 10,743 Receipt in advance 6,757 6,551 Amounts due to cooperating partners 5,491 4,215 Lawsuit penalty payable - 2,176 Due to former owners 1,254 1,254 Accrued interest payable 349 209 Current portion of consideration payable for acquisitions 2,258 - Collection in advance on behalf of students 5,589 8,413 Advance from others 11,931 4,656 Employee reimbursement payable 6,927 6,927 Others 17,278 18,960 Total 367,357 372,821 (Note i) The balance represented tuition collected from students in advance but respective services could not be provided anymore. |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHORT-TERM BORROWINGS [Abstract] | |
Schedule of Short-term Borrowings | As of December 31 2015 2016 Maturities RMB RMB Unsecured short-term borrowings from third party September, 2015 2,300 - Total Short-term borrowings 2,300 - |
CONVERTIBLE LOAN (Tables)
CONVERTIBLE LOAN (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
CONVERTIBLE LOAN [Abstract] | |
Schedule of convertible loans Before and After Conversion | Before conversion After conversion US$ US$ CEIHL 38,000 6,308 SummitView 5,000 - Baring 5,000 5,000 Total amount 48,000 11,308 |
Schedule of actual conversion rates of convertible loans | Actual conversion Loan principal Shares held through rate US$ conversion US$ per share CEIHL 38,000 26,853,771 1.415 SummitView 5,000 2,786,159 1.795 Baring 5,000 2,786,159 1.795 Total convertible loan 48,000 32,426,089 1.480 |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHARE BASED COMPENSATION [Line Items] | |
Summary of Share Option Activity | Year ended December 31, 2014 Year ended December 31, 2015 Year ended December 31, 2016 Weighted Weighted Weighted Weighted Average Weighted Average Weighted Average Average Remaining Aggregate Average Remaining Aggregate Average Remaining Aggregate Exercise Contractual Intrinsic Exercise Contractual Intrinsic Exercise Contractual Intrinsic Shares Price Term Value Shares Price Term Value Shares Price Term Value RMB RMB RMB RMB RMB RMB Outstanding at beginning of year 450,670 506.70 4.54 10,940 427,273 503.40 3.49 175 387,350 3.08 2.59 3,836 Granted - - - - - - - - - - - - Exercised - - - - - - - - - - - - Forfeited or expired (23,397) 688.50 - - (39,923) 3.08 - - (130,733) 3.30 - - Outstanding at end of year 427,273 503.40 3.49 175 387,350 3.08 2.59 3,836 256,617 3.30 2.84 4,499 Exercisable at end of year 422,641 501.60 3.45 64 387,350 3.08 2.63 1,435 256,617 3.30 2.84 4,499 Expected to be vested 4,032 609.30 6.69 - - - - - - - - - |
Schedule of restricted stock awards activities | Year ended December 31, 2015 Weighted Average Grant-date Remaining Shares fair value Contractual Term RMB Outstanding at beginning of year 811,359 21.20 2.63 Granted 596,473 20.32 4.00 Issued (484,331) - - Forfeited or expired (61,979) 20.32 1.38 Outstanding at end of year 861,522 21.94 2.59 Shares vested but not issued at end of year 41,628 20.64 - Year ended December 31, 2016 Weighted Average Grant-date Remaining Shares fair value Contractual Term RMB Outstanding at beginning of year 861,522 21.94 2.59 Granted - - - Issued (433,918) 22.94 - Forfeited or expired (12,083) 21.72 2.39 Outstanding at end of year 415,521 22.28 1.89 Shares vested but not issued at end of year 34,962 22.73 - |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
TAXATION [Abstract] | |
Schedule of Significant Components of Provision for Income Taxes on Earnings | Years ended December 31, 2014 2015 2016 RMB RMB RMB Current: PRC 13,537 8,562 4,881 Deferred: PRC (12,402) (127,525) 1,030 Provision for income tax expenses (benefits) 1,135 (118,963) 5,911 |
Schedule of Principal Components of the Group's Deferred Tax Assets and Liabilities | As of December 31 2015 2016 RMB RMB Deferred tax asset Accrued expense 8,191 7,002 Allowance for doubtful accounts 73,475 73,907 Tax loss carried forward 436,586 445,263 Deferred advertising expense 13,579 11,519 Impairment of long-lived tangible assets 27,046 24,600 Others 5,384 4,273 564,261 566,564 Valuation allowance (530,358) (536,838) Deferred tax asset, net 33,903 29,726 Deferred tax liabilities - Unrecognized valuation surplus and deficit -acquisition 77,825 77,825 - Unrecognized valuation surplus and deficit Decrease due to amortization and impairment (53,644) (55,605) - Unrealized profit of short-term investments 521 952 - Unrealized profit of foreign exchange transaction 1,019 - Total deferred tax liabilities 25,721 23,172 |
Summary of amounts and expiration dates of operating loss carryforward | Amount RMB 2017 560,016 2018 340,224 2019 120,788 2020 96,696 2021 and thereafter 663,329 Total 1,781,053 |
Schedule of Roll-forward of Valuation Allowance | As of December 31, 2014 2015 2016 RMB RMB RMB Balance at beginning of the year 444,946 539,704 530,358 Allowance made during the year 128,002 30,873 6,480 Allowance resulting from the reconsolidation of previously deconsolidated entities - 1,352 - Reversals (33,244) (41,571) - Balance at end of the year 539,704 530,358 536,838 |
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 | Years ended December 31, 2014 2015 2016 % % % Weighted average statuary tax rate 25 % 25 % 25 % Tax effect of non-deductible expenses (1) % 0 % (1) % Tax effect of non-taxable income 0 % 0 % 1 % Tax effect of tax-exempt entities (12) % (9) % (10) % Tax effect of deemed profit 0 % 0 % (1) % Tax effect of disposed entity 0 % 13 % 0 % Tax penalty (1) % 0 % (4) % Changes in valuation allowance (13) % 2 % (29) % Effective tax rate (2) % 31 % (19) % |
Schedule of Reconciliation of Beginning and Ending Amount of Liabilities Associated with Uncertain Tax Positions | As of December 31, 2014 2015 2016 RMB RMB RMB Unrecognized tax benefits, beginning of year 14,930 15,011 23,648 Increases related to current tax positions 565 4,948 1,675 Addition from the consolidation of previously deconsolidated subsidiaries - 3,689 - Decrease due to deconsolidation (484) - - Unrecognized tax benefits, end of year 15,011 23,648 25,323 |
NET INCOME_LOSS PER SHARE (Tabl
NET INCOME/LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
NET INCOME/LOSS PER SHARE [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share | Years ended December 31, 2014 2015 2016 RMB RMB RMB Numerator: Numerator for basic and diluted loss from continuing operations per share (1,018,547) (277,048) (35,700) Numerator for basic and diluted (loss) income from discontinued operations per share (58,266) 340,787 - Denominator: Denominator for basic and diluted (loss) income per share weighted average ordinary shares outstanding 13,928,048 36,848,816 38,469,234 Basic and diluted loss per share- continuing operations (73.13) (7.52) (0.93) Basic and diluted (loss) income per share- discontinued operations (4.18) 9.25 - |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases | Amount RMB 2017 17,622 2018 14,838 2019 12,888 2020 10,510 2021 8,628 Thereafter 54,241 Total 118,727 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SEGMENT INFORMATION [Abstract] | |
Schedule of Revenues, Cost of Revenues, and Gross Profit by Segment | For the year ended December 31, 2014 Better School Better Job Career Tutoring K-12 Subtotal Enhancement Consolidated RMB RMB RMB RMB RMB Net Revenues 68,203 168,244 236,447 175,551 411,998 Cost of revenues (52,728) (115,416) (168,144) (105,892) (274,036) Gross profit 15,475 52,828 68,303 69,659 137,962 For the year ended December 31, 2015 Better School Better Job Career Tutoring K-12 Subtotal Enhancement Consolidated RMB RMB RMB RMB RMB Net Revenues 54,888 186,747 241,635 154,080 395,715 Cost of revenues (41,048) (116,819) (157,867) (88,078) (245,945) Gross profit 13,840 69,928 83,768 66,002 149,770 For the year ended December 31, 2016 Better School Better Job Career Tutoring K-12 Subtotal Enhancement Consolidated RMB RMB RMB RMB RMB Net Revenues 47,985 222,592 270,577 141,439 412,016 Cost of revenues (33,465) (137,833) (171,298) (67,444) (238,742) Gross profit 14,520 84,759 99,279 73,995 173,274 |
PRC CONTRIBUTION AND PROFIT A59
PRC CONTRIBUTION AND PROFIT APPROPRIATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PRC CONTRIBUTION AND PROFIT APPROPRIATION [Abstract] | |
Schedule of Appropriations to General Reserve Fund, Statutory Surplus Reserve and Education Development Reserve | As of December 31, 2015 2016 RMB RMB General and statutory surplus reserve 59,307 59,309 Education development reserve 21,698 21,698 Total 81,005 81,007 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Schedule of Transactions with Related Parties | Years ended December 31, Transactions 2014 2015 2016 RMB RMB RMB Repayments to Executive Principal of Ambow Research Center (Note i) - (3,960) - Loan to/(collection from) A, a member of management team of the Company (Note ii) 2,770 (1,670) - Borrowing from/(repaid to) A, a member of management team of the Company (Note iii) 500 (1,350) - Loan to/(collection from) a member of management team of Beijing SIWA Century Zhisheng Education Technology Co., Ltd. (“Century Zhisheng”) (Note ii) 10 199 (24) Loan to Suzhou Chengpingheng Software Engineering Co., Ltd , an entity controlled by a member of management team of Century Zhisheng (Note iv) - 138 - Borrowing from a member of management team of Century Zhisheng (iii) 3,143 1,089 - Borrowing from Shandong Shichuang Software Engineering Co., Ltd., an entity controlled by Executive Principal of Ambow Research Center (Note iv) 3,430 - - Loan to B, a member of management team of the Company (Note ii) - 400 - Note (i) Due to the shortage of working capital, the Company borrowed funds from one management personnel. The borrowing of RMB 2,000 1,960 24 3,960 Note (ii) The loans were to management for operation purpose. Note (iii) The borrowings were made from management for operation purpose. The borrowings of RMB 3,143 1,089 500 10 Note (iv) The loans to and/or borrowings from entities controlled by of management were made for operation purpose without interest bearing and maturity date. |
Schedule of Balances with Related Parties | Amounts due from related parties Amounts due to related parties As of December 31, As of December 31, Relationship 2015 2016 2015 2016 RMB RMB RMB RMB A, a member of management team of the Company (Note 23 a (ii) & (iii)) 1,100 1,100 - - A member of management team of Century Zhisheng (Note 23 a (ii)) 209 185 4,232 4,232 Entity controlled by a member of management team of Century Zhisheng - Suzhou Chengpingheng Software Engineering Co., Ltd (Note 23a (iv)) 138 138 - - Entity controlled by Executive Principal of Ambow Research Center - Shandong Shichuang Software Engineering Co., Ltd. (Note 23 a (iv)) - - 3,430 3,430 B, a member of management team of the Company (Note 23 a (ii)) 400 400 - - 1,847 1,823 7,662 7,662 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Jinghan Group [Member] | |
Discontinued operations [Line Items] | |
Schedule of Revenues and Income (Loss) from Discontinued Pperations | Years ended December, 31 2014 2015 2016 RMB RMB RMB Revenues 679,295 171,938 - Impairment loss - - - Loss from discontinued operation (73,499) (4,499) - Income tax benefit 15,735 1,385 - Loss from discontinued operation, net of income tax (57,764) (3,114) - Income on sale of discontinued operation, net of income tax (note(i)) - 343,912 - Income (loss) from and on sale of discontinued operation, net of income tax (57,764) 340,798 - Note (i) Foreign currency translation adjustment included in the loss on sale of discontinued operation is RMB 9,084 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Schedule of Information about Inputs Into the Fair Value Measurements of the Assets and Liabilities that the Group Makes on a Recurring Basis | Fair Value Measurements at Reporting Date Using Total Fair Quoted Prices Value and in Active Significant Significant Carrying Markets Other Unobservable Value on for Identical Observable Inputs Balance Sheet Assets (Level 1) Inputs (Level 2) (Level 3) As of December 31, 2016 Assets: Short term investments, available for sale 174,811 174,811 - - Fair Value Measurements at Reporting Date Using Total Fair Quoted Prices Value and in Active Significant Significant Carrying Markets Other Unobservable Value on for Identical Observable Inputs Balance Sheet Assets (Level 1) Inputs (Level 2) (Level 3) As of December 31, 2015 Assets: Short term investments, available for sale 103,602 103,602 - - |
Schedule of Quantitative Information about Level 3 Fair Value Measurements of Property and Equipment, Other Non-current Assets and Intangible Assets | Fair value Valuation Unobservable inputs Range Intangible assets as of September 30, 2015 61,354 Relief-from-royalty Royalty rate 1%-7% method Discount rate 16%-22% Terminal growth rate 3% Intangible assets as of September 30, 2016 115,941 Relief-from-royalty Royalty rate 0%-9% method Discount rate 16%-22% Terminal growth rate 3% |
CONCENTRATIONS (Tables)
CONCENTRATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
CONCENTRATIONS [Abstract] | |
Summary of the Debtors who Accounted for 10% or More of the Group's Consolidated Prepaid and Other Current Assets, Other Non-current Assets and Consideration Receivable | A summary of the debtors who accounted for 10% or more of the Group’s consolidated accounts receivable, prepaid and other current assets, other non-current assets and consideration receivable was as follows: As of December 31, 2015 2016 Debtors RMB % RMB % Accounts receivable Company A 1,483 13 % 1,313 10 % Prepaid and other current assets Company B 49,800 32 % 49,800 32 % Company C 35,000 22 % 35,000 23 % Company D 25,959 17 % 25,959 17 % Other non-current assets Company E 1,858 36 % 1,570 25 % Consideration receivable Company F 8,500 100 % 8,500 100 % |
ADDITIONAL INFORMATION - COND64
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2016 | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |
Schedule of Information of Consolidating Balance Sheets | As of December 31, 2015 2016 2016 RMB RMB US$ Note 3(a) ASSETS Current assets: Cash and cash equivalents 8,658 1,467 211 Amounts due from related parties 201,341 183,676 26,456 Prepaid expenses and other current assets 160 341 49 Total current assets 210,159 185,484 26,716 Non-current assets: Intangible assets, net 16 8 1 Investment in subsidiaries - - - Total non-current assets 16 8 1 Total assets 210,175 185,492 26,717 LIABILITIES Current liabilities: Amounts due to related parties 14,839 19,605 2,824 Accrued and other liabilities 51,540 49,371 7,111 Total current liabilities 66,379 68,976 9,935 Total non-current liabilities - - - Total liabilities 66,379 68,976 9,935 SHAREHOLDERS’ EQUITY Ordinary shares (US$ 0.003 par value; 40,000,000 and 40,000,000 shares authorized, 38,265,177 and 38,699,095 shares issued and outstanding as of December 31, 2015 and 2016, respectively) 717 726 105 Additional paid-in capital 3,445,408 3,453,227 497,368 Accumulated deficit (3,307,442) (3,343,142) (481,513) Accumulated other comprehensive income 5,113 5,705 822 Total shareholders’ equity 143,796 116,516 16,782 Total liabilities and shareholders’ equity 210,175 185,492 26,717 |
Schedule of Information of Consolidating Statement of Operations | Years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Note 3(a) NET REVENUES - Educational program and services - - - - Cost of revenues - Educational program and services - - - - GROSS LOSS - - - - Operating expenses: Selling and marketing (348) (410) - - General and administrative (229,814) (79,562) (18,854) (2,716) Research and development (144) (660) - - Total operating expenses (230,306) (80,632) (18,854) (2,716) OPERATING LOSS (230,306) (80,632) (18,854) (2,716) Share of income (loss) from subsidiaries (609,711) 201,051 (23,274) (3,352) OTHER EXPENSE Interest income (expense) net (91,064) (56,549) 1 - Loss from extinguishment of debt (143,901) - - - Foreign exchange losses, net (459) (131) - - Other income (expense), net (1,372) 6,427 927 Income tax - - - - NET (LOSS) INCOME (1,076,813) 63,739 (35,700) (5,141) |
Schedule of Information of Consolidating Statement of Cash Flows | Years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Note 3(a) Cash flows from operating activities (109,368) (40,384) (6,348) (914) Cash flows from investing activities - - - - Cash flows from financing activities 109,330 48,876 (843) (121) Effects of exchange rate changes on cash and cash equivalents 2 - - - Net change in cash and cash equivalents (36) 8,492 (7,191) (1,035) Cash and cash equivalents at beginning of year 202 166 8,658 1,246 Cash and cash equivalents at end of year 166 8,658 1,467 211 Supplemental disclosure of cash flow information Supplemental disclosure of non-cash investing and financing activities Shares surrender by SummitView 67,309 - - - Conversion of convertible loan to ordinary shares and waiver of related accrued interest expenses 226,298 70,146 - - Receipt of convertible loan by settlement of debt 80,000 - - - |
ORGANIZATION AND PRINCIPAL AC65
ORGANIZATION AND PRINCIPAL ACTIVITIES (Narrative) (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Sep. 04, 2015 | Mar. 05, 2015USD ($)shares | Sep. 05, 2014CNY (¥)shares | Sep. 05, 2014USD ($)shares | Aug. 31, 2014shares | May 13, 2014shares | Jun. 03, 2013shares | Aug. 05, 2010USD ($)$ / sharesshares | Jan. 21, 2016 | Dec. 31, 2016 | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Jul. 05, 2016 | Apr. 08, 2015 |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Convertible loans converted into Class A Ordinary Shares | ¥ | ¥ 70,146 | ¥ 226,298 | ||||||||||||
Reverse stock split ratio | 30 | |||||||||||||
Ambow University Inc [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 100.00% | |||||||||||||
CEHIL [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued on conversion of convertible loan | 4,457,854 | 5,678,963 | 32,426,090 | |||||||||||
Amount of debt converted | $ | $ 6,308 | |||||||||||||
New Flourish [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued on conversion of convertible loan | 5,678,963 | 5,678,963 | ||||||||||||
Baring [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued on conversion of convertible loan | 2,786,159 | |||||||||||||
Amount of debt converted | $ | $ 5,000 | |||||||||||||
Convertible Debt [Member] | CEHIL [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Amount of debt converted | $ | 6,308 | $ 31,692 | ||||||||||||
Convertible Debt [Member] | Baring [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Convertible loans converted into Class A Ordinary Shares | $ | $ 5,000 | |||||||||||||
SummitView [Member] | CEHIL [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued on conversion of convertible loan | 25,182,076 | 25,182,076 | ||||||||||||
Amount of debt converted | ¥ 224,517 | $ 36,692 | ||||||||||||
Tianjin Ambow Huaying Education Technology Co Ltd [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Ownership interest (as a percent) | 100.00% | |||||||||||||
Jinghan Group [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Disposal percentage | 100.00% | |||||||||||||
Beijing JH Tutoring [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Disposal percentage | 100.00% | |||||||||||||
Beijing JT Tutoring [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Disposal percentage | 100.00% | |||||||||||||
Ambow Jingxue [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Disposal percentage | 64.00% | |||||||||||||
Ambow Zhixin [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Ownership interest transferred | 60.00% | |||||||||||||
Kunshan Ambow [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Ownership interest transferred | 60.00% | |||||||||||||
Warrant [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued | 19,673 | |||||||||||||
Share exchange ratio | 0.33 | |||||||||||||
Fair value of the exercised warrants | $ | $ 362 | |||||||||||||
Class A Ordinary Shares [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued | 1,026,705 | |||||||||||||
Reverse stock split ratio | 2 | |||||||||||||
Class A Ordinary Shares [Member] | CEHIL [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued on conversion of convertible loan | 4,457,854 | 16,716,954 | 16,716,954 | |||||||||||
Class A Ordinary Shares [Member] | New Flourish [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued on conversion of convertible loan | 5,678,963 | 5,678,963 | ||||||||||||
Class A Ordinary Shares [Member] | Baring [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued on conversion of convertible loan | 2,786,159 | |||||||||||||
Class A Ordinary Shares [Member] | SummitView [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued on conversion of convertible loan | 2,786,159 | 2,786,159 | ||||||||||||
Amount of debt converted | $ | $ 5,000 | |||||||||||||
American Depository Shares [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of shares issued | 355,907 | |||||||||||||
Issue price of American depositary shares (in dollars per share) | $ / shares | $ 300 | |||||||||||||
Series B Preferred Stock [Member] | Warrant [Member] | ||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||||||||||
Number of warrants exercised (in shares) | 6,558 | |||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 22.5 |
ORGANIZATION AND PRINCIPAL AC66
ORGANIZATION AND PRINCIPAL ACTIVITIES (Schedule of Consolidated Financial Information of the Group's VIEs and Non-VIEs were Included in the Accompanying Consolidated Financial Statements of the Group) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | |
VIE arrangements [Line Items] | |||||
Total assets | ¥ 976,195 | ¥ 1,007,925 | $ 140,601 | ||
Total liabilities | 861,174 | 865,102 | $ 124,034 | ||
Net revenue | 412,016 | 395,715 | ¥ 411,998 | ||
Net (loss) income | (37,018) | $ (5,331) | 64,356 | (1,082,555) | |
Consolidated variable interest entity without recourse [Member] | |||||
VIE arrangements [Line Items] | |||||
Total assets | 773,436 | 718,514 | |||
Total liabilities | 544,547 | 565,818 | |||
Net revenue | 409,391 | 385,819 | 403,643 | ||
Net (loss) income | ¥ (12,805) | ¥ 370,818 | ¥ (550,911) |
ORGANIZATION AND PRINCIPAL AC67
ORGANIZATION AND PRINCIPAL ACTIVITIES (Schedule of the Group's Cash and Cash Equivalents by Currency Denomination and Jurisdiction) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
VIE arrangements [Line Items] | ||||
Cash and cash equivalents | ¥ 196,900 | $ 28,359 | ¥ 246,303 | ¥ 180,285 |
Non-VIEs [Member] | China [Member] | ||||
VIE arrangements [Line Items] | ||||
Cash and cash equivalents | 19,425 | 109,820 | ||
Group [Member] | China [Member] | ||||
VIE arrangements [Line Items] | ||||
Cash and cash equivalents | 193,197 | 235,670 | ||
Variable Interest Entity Primary Beneficiary [Member] | ||||
VIE arrangements [Line Items] | ||||
Cash and cash equivalents | 173,772 | |||
Variable Interest Entity Primary Beneficiary [Member] | China [Member] | ||||
VIE arrangements [Line Items] | ||||
Cash and cash equivalents | ¥ 173,772 | ¥ 125,850 |
GOING CONCERN (Details)
GOING CONCERN (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | |
Going Concern [Line Items] | |||||
Loss from continued operations | ¥ (37,018) | $ (5,331) | ¥ (276,442) | ¥ (1,024,791) | |
Impairment charge related to the provision of receivables, disposal loss of subsidiary, goodwill and intangible assets | 1,727 | 205,311 | |||
Loss from extinguishment of debt and interest expense of convertible loan | 22,402 | 56,549 | |||
Unrestricted cash and cash equivalents | 196,900 | 246,303 | ¥ 180,285 | $ 28,359 | |
Amount by which consolidated current liabilities exceeded consolidated current assets | 221,475 | ||||
Consolidated net assets | 115,021 | ||||
Total lease commitment amount | 118,727 | ||||
Lease commitment within one year | 17,622 | ||||
Short term investments, available for sale | 174,811 | 103,602 | 25,178 | ||
Short term investments, held to maturity | 64,700 | ¥ 151,790 | $ 9,319 | ||
Variable Interest Entity Primary Beneficiary [Member] | |||||
Going Concern [Line Items] | |||||
Unrestricted cash and cash equivalents | ¥ 173,772 |
SIGNIFICANT ACCOUNTING POLICI69
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013Item | |
Basis of presentation | ||||
Exchange rate | 6.9430 | |||
Advertising expenses of continuing operations | ¥ | ¥ 1,857 | ¥ 1,858 | ¥ 4,435 | |
Basis of consolidation | ||||
Number of deconsolidated schools | Item | 3 | |||
Minimum [Member] | ||||
Basis of presentation | ||||
Original maturity period of term deposits | 3 months | |||
Basis of consolidation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 1 year | |||
Maximum [Member] | ||||
Basis of presentation | ||||
Original maturity period of term deposits | 12 months | |||
Basis of consolidation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years |
SIGNIFICANT ACCOUNTING POLICI70
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives for Calculation of Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Building [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 20 years |
Building [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 40 years |
Vehicles [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Office And Computer Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Office And Computer Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
SIGNIFICANT ACCOUNTING POLICI71
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Original Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Computer Software Intangible Asset [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 2 years |
Computer Software Intangible Asset [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 10 years |
Student Populations [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 1 year 9 months 18 days |
Student Populations [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 15 years |
Customer Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 5 years 8 months 12 days |
Cooperative Agreement [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 1 year 3 months 18 days |
Cooperative Agreement [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 10 years |
Off Market Favorable Lease [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 9 months 18 days |
Off Market Favorable Lease [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 20 years |
Non-compete Agreements [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 3 years |
Non-compete Agreements [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Original estimated useful lives | 4 years 6 months |
SIGNIFICANT ACCOUNTING POLICI72
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Deferred Revenue Balances by Segments) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Significant Accounting Policies [Line Items] | |||
Deferred revenue balances | ¥ 109,484 | $ 15,769 | ¥ 115,886 |
Career Enhancement [Member] | |||
Significant Accounting Policies [Line Items] | |||
Deferred revenue balances | 34,264 | 38,820 | |
K12 Schools [Member] | |||
Significant Accounting Policies [Line Items] | |||
Deferred revenue balances | 60,944 | 54,571 | |
Tutoring [Member] | |||
Significant Accounting Policies [Line Items] | |||
Deferred revenue balances | ¥ 14,276 | ¥ 22,495 |
CASH, CASH EQUIVALENTS AND RE73
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Summary of Reconciliation of Cash, Cash Equivalents, and Restricted Cash) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) |
Unrestricted cash and cash equivalents | ¥ 196,900 | $ 28,359 | ¥ 246,303 | ¥ 180,285 | ||
Restricted cash | 2,350 | 338 | 2,050 | 2,048 | ||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | ¥ 199,250 | $ 28,697 | ¥ 248,353 | $ 35,770 | ¥ 182,333 | ¥ 101,202 |
CASH, CASH EQUIVALENTS AND RE74
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Summary of Reconciliation of Changes in Cash, Cash Equivalents, and Restricted Cash) (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Changes in cash and cash equivalents included in assets held for sale | ¥ 36,063 | ¥ 42,270 | ||
Changes in restricted cash included in assets held for sale | 2,000 | 1,600 | ||
Total changes in cash, cash equivalents, and restricted cash included in assets held for sale shown in the consolidated statements of cash flows | ¥ 38,063 | ¥ 43,870 |
SHORT-TERM INVESTMENTS (Narrati
SHORT-TERM INVESTMENTS (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
OTTI loss, held-to-maturity investments | $ 0 |
OTTI loss, available-for-sale investments | $ 0 |
Maximum [Member] | |
Derivative, Remaining Maturity | 62 days |
Derivative, Fixed Interest Rate | 4.50% |
Minimum [Member] | |
Derivative, Remaining Maturity | 30 days |
Derivative, Fixed Interest Rate | 3.50% |
SHORT-TERM INVESTMENTS (Schedul
SHORT-TERM INVESTMENTS (Schedule Of Short-term Investments) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Held-to-maturity investments | ¥ 64,700 | $ 9,319 | ¥ 151,790 |
Available-for-sale investments | 174,811 | $ 25,178 | 103,602 |
Total | ¥ 239,511 | ¥ 255,392 |
SHORT-TERM INVESTMENTS (Sched77
SHORT-TERM INVESTMENTS (Schedule of Amortized Cost, Gross Unrecognized Holding Gains and Losses, Gross Unrealized Gain in Accumulated Other Comprehensive Income, and Estimated Fair Value of Investments) (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Held-to-maturity investments | ||
Amortized Cost | ¥ 64,700,000 | |
Gross unrecognized holding gains | ||
Gross unrecognized holding loss | ||
Gross unrealized gain in accumulated other comprehensive income | ||
Estimated Fair value | 64,700,000 | |
Available-for-sale investments | ||
Amortized Cost | 171,163,000 | |
Gross unrecognized holding gains | ||
Gross unrecognized holding loss | ||
Gross unrealized gain in accumulated other comprehensive income | 3,648,000 | |
Estimated Fair value | ¥ 174,811,000 | |
Fixed-Rate Financial Products [Member] | ||
Held-to-maturity investments | ||
Amortized Cost | ¥ 151,790 | |
Gross unrecognized holding gains | ||
Gross unrecognized holding loss | ||
Gross unrealized gain in accumulated other comprehensive income | ||
Estimated Fair value | 151,790 | |
Adjustable-Rate Financial Products [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 102,290 | |
Gross unrecognized holding gains | ||
Gross unrecognized holding loss | ||
Gross unrealized gain in accumulated other comprehensive income | 1,312 | |
Estimated Fair value | ¥ 103,602 |
SHORT-TERM INVESTMENTS (Sched78
SHORT-TERM INVESTMENTS (Schedule of Gross Realized Gains and Losses on Available-For-Sale Investments) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Gross realized gains on sales | ¥ 4,329 | $ 624 | ¥ 1,971 | ¥ 0 |
Gross realized loss on sales | 0 | 0 | (4,757) | 0 |
(Losses) gains on sale of available-for-sale investments | ¥ 4,329 | $ 624 | ¥ (2,786) | ¥ 0 |
SHORT-TERM INVESTMENTS (Sched79
SHORT-TERM INVESTMENTS (Schedule of Interest Income Recognized on Held-To-Maturity Investments) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Interest income recognized on held-to-maturity investments | ¥ 4,078 | $ 587 | ¥ 7,027 | ¥ 0 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | ||
ACCOUNTS RECEIVABLE, NET | ||||||
Accounts receivable | ¥ 13,576 | ¥ 127,893 | ||||
Less: Allowance for doubtful accounts | ¥ (116,615) | ¥ (116,615) | 0 | (116,615) | ||
Accounts receivable, net | ¥ 13,576 | $ 1,955 | ¥ 11,278 | |||
Less: allowance for doubtful accounts | ||||||
Balance at beginning of year | (116,615) | (116,615) | ||||
Addition | [1] | 0 | 0 | |||
Written off | [2] | 116,615 | 0 | |||
Balance at end of year | ¥ 0 | ¥ (116,615) | ||||
[1] | No bad debt provision was provided for the years ended December 31, 2015 and 2016. | |||||
[2] | Bad debt provision of RMB 116,615 was written off in the year of 2016, after all collection efforts have been exhausted and the potential for recovery was remote. |
PREPAID AND OTHER CURRENT ASS81
PREPAID AND OTHER CURRENT ASSETS, NET (Schedule of Prepaid and Other Current Assets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | |
Amount due from minority shareholder | [1] | ¥ 54,023 | ¥ 54,023 | |
Amount due from Xihua Group | [2] | 49,800 | 49,800 | |
Value added tax refundable | [3] | 24,811 | 24,811 | |
Due from former owners | [4] | 5,743 | 14,910 | |
Staff advances | 6,008 | 6,389 | ||
Rental deposits | 7,835 | 8,331 | ||
Prepaid professional services fees | 3,045 | 2,457 | ||
Prepaid rental fees | [5] | 3,533 | 3,067 | |
Receivable from Zhenjiang operating rights | [6] | 35,000 | 35,000 | |
Receivable from Jinghan Group | [7] | 122,822 | 122,822 | |
Others | [8] | 20,302 | 29,748 | |
Total before allowance for doubtful accounts | 332,922 | 351,358 | ||
Less: allowance for doubtful accounts | [9] | (179,055) | (195,254) | |
Total | ¥ 153,867 | $ 22,161 | ¥ 156,104 | |
[1] | The balance represented Shenyang K-12’s amount due from its minority shareholder amounting to RMB 54,023, which were tuition fees that have been collected from students but were misappropriated by its minority shareholder. As of December 31, 2015, full provision was provided as the collectability was remote. As of December 31, 2016, the receivable was fully written off, after all collection efforts have been exhausted and the potential for recovery was remote. | |||
[2] | 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 statement. | |||
[3] | Management considered the collectability of VAT refund was remote as a result of tax dispute between Ambow Online, Yuhua and the tax authority, as disclosed in Note 18(c), the Group provided a provision amounting to RMB 24,811 as of December 31, 2015 and 2016. | |||
[4] | Provisions of RMB 7,808, 1,360 and nil were made against the amounts due from the former shareholders due to remote recoverability during the years ended December 31, 2014, 2015 and 2016 respectively. As of December 31, 2016, the receivable of RMB 9,168 was written off, after all collection efforts have been exhausted and the potential for recovery was remote. | |||
[5] | In 2015 an impairment loss of RMB 3,995 was made against the current portion of the prepaid long-term lease regarding the Career Enhancement Education Facility in Beijing (“Ambow Beijing Campus”), as the capital lease and prepaid long-term lease regarding Ambow Beijing Campus were not available for use (Note 9). | |||
[6] | 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 December 31, 2015 and 2016, the payable balance to Zhenjiang Foreign Language School amounted to RMB 36,770 and RMB 36,770, respectively (Note 13); therefore, no provision was made. As of the date of issuance of the financial statements, the negotiation was still in progress. | |||
[7] | As of December 31, 2015 and 2016, the original receivable due from Jinghan Group was RMB 141,017. Along with the disposal of Jinghan Group, RMB 18,195 of the receivable was written off according to the waiver agreement and an additional allowance of RMB 96,863 was provided in 2015 (see Note 24(a)). | |||
[8] | Others mainly included inventory, prepaid education supplies, prepaid outsourcing service fee, and other miscellaneous items with trivial amount. | |||
[9] | Other addition of allowance during the year of 2016 and 2015 was mainly provided against third parties and former employees due to the remote recoverability. |
PREPAID AND OTHER CURRENT ASS82
PREPAID AND OTHER CURRENT ASSETS, NET (Schedule of Allowance for Doubtful Accounts) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Allowance for doubtful accounts: | |||
Balance at beginning of year | ¥ (195,254) | ¥ (90,731) | |
Addition | [1],[2],[3] | (1,727) | (122,718) |
Written off | [1],[3] | 17,926 | 18,195 |
Balance at end of year | ¥ (179,055) | ¥ (195,254) | |
[1] | As of December 31, 2015 and 2016, the original receivable due from Jinghan Group was RMB 141,017. Along with the disposal of Jinghan Group, RMB 18,195 of the receivable was written off according to the waiver agreement and an additional allowance of RMB 96,863 was provided in 2015 (see Note 24(a)). | ||
[2] | Other addition of allowance during the year of 2016 and 2015 was mainly provided against third parties and former employees due to the remote recoverability. | ||
[3] | Provisions of RMB 7,808, 1,360 and nil were made against the amounts due from the former shareholders due to remote recoverability during the years ended December 31, 2014, 2015 and 2016 respectively. As of December 31, 2016, the receivable of RMB 9,168 was written off, after all collection efforts have been exhausted and the potential for recovery was remote. |
PREPAID AND OTHER CURRENT ASS83
PREPAID AND OTHER CURRENT ASSETS, NET (Summary of Receivable Transferred and Consideration Allocated Based on Management's Estimation on Recoverability) (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Consideration allocated | ||||
Payable to Zhenjiang Foreign Language School | ¥ 36,770 | ¥ 36,770 | ||
Bad debt provision included in the waiver agreement and written off | ¥ 4,483 | |||
Provision For Receivables Arising From Discountinued Operation Subsidiaries | 0 | 1,360 | ¥ 7,808 | |
Receivables Arising from Discontinued Operations Subsidiaries Written Off | 9,168 | |||
Jinghan Group [Member] | ||||
Consideration allocated | ||||
Receivable from discontinued operations | 141,017 | |||
Bad debt provision | 96,863 | 96,863 | ||
Bad debt provision included in the waiver agreement and written off | ¥ 18,195 | |||
Ambow Beijing Campus [Member] | ||||
Consideration allocated | ||||
Impairment of Leasehold | ¥ 3,995 |
CONSIDERATION RECEIVABLE, NET84
CONSIDERATION RECEIVABLE, NET (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 28, 2015CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2012CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Feb. 06, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Jul. 25, 2013CNY (¥) | Dec. 02, 2011CNY (¥) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Receivables resulting from disposals | [1] | ¥ 14,000 | ¥ 14,000 | ||||||||||||||||
Receivable resulting from disposal of Taishidian Holding | 0 | [2] | 30,000 | [2] | ¥ 234,500 | ||||||||||||||
Sub-total | 14,000 | 44,000 | |||||||||||||||||
Less: allowance for doubtful accounts | ¥ (35,500) | [1],[2] | ¥ (35,500) | [1],[2] | ¥ (164,700) | (5,500) | [1],[2] | (35,500) | [1],[2] | (164,700) | |||||||||
Total | ¥ 8,500 | $ 1,224 | 8,500 | ||||||||||||||||
Allowance for Doubtful Consideration Receivable [Rollforward] | |||||||||||||||||||
Balance at beginning of year | (35,500) | [1],[2] | (164,700) | ||||||||||||||||
Addition | [1],[2] | (35,300) | |||||||||||||||||
Written off | [2] | 30,000 | 164,500 | ||||||||||||||||
Balance at end of year | (5,500) | [1],[2] | (35,500) | [1],[2] | (164,700) | ||||||||||||||
Bad debt provision | ¥ 1,727 | $ 249 | 42,960 | 151,080 | |||||||||||||||
Suzhou Hezhijia Investment Management Limited [Member] | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Receivables resulting from disposals | ¥ 234,500 | ¥ 110,000 | |||||||||||||||||
Receivable resulting from disposal of Taishidian Holding | ¥ 70,000 | ||||||||||||||||||
Allowance for Doubtful Consideration Receivable [Rollforward] | |||||||||||||||||||
Bad debt provision | ¥ 40,000 | 30,000 | 70,000 | ||||||||||||||||
Taishidian Holding [Member] | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Receivables resulting from disposals | ¥ 234,500 | ||||||||||||||||||
Allowance for Doubtful Consideration Receivable [Rollforward] | |||||||||||||||||||
Best estimation of recoverable | 110,000 | ||||||||||||||||||
Bad debt provision | ¥ 124,500 | ||||||||||||||||||
Taishidian Holding [Member] | Suzhou Hezhijia Investment Management Limited [Member] | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Receivable resulting from disposal of Taishidian Holding | ¥ 70,000 | ||||||||||||||||||
Allowance for Doubtful Consideration Receivable [Rollforward] | |||||||||||||||||||
Written off | ¥ 40,000 | ||||||||||||||||||
Dragon Continuation School, Shandong North Resource Information Technology Co., Ltd. and Jinan Prosperous Resource Technology Co., Ltd., Guangzhou Modern Olympic Training School, and Tianjin Yimatong Technology Development Co., Ltd. [Member] | |||||||||||||||||||
Allowance for Doubtful Consideration Receivable [Rollforward] | |||||||||||||||||||
Cash payment received | ¥ 21,000 | ||||||||||||||||||
Dragon Continuation School, Shandong North Resource Information Technology Co., Ltd. and Jinan Prosperous Resource Technology Co., Ltd., Guangzhou Modern Olympic Training School, and Tianjin Yimatong Technology Development Co., Ltd. [Member] | Tongshengle [Member] | |||||||||||||||||||
Allowance for Doubtful Consideration Receivable [Rollforward] | |||||||||||||||||||
Cash consideration | ¥ 35,000 | ||||||||||||||||||
Bad debt provision | ¥ 5,300 | ¥ 200 | |||||||||||||||||
[1] | In the fourth quarter of 2011, the Group decided to concentrate its resources and focus on the Group's core businesses. On December 2, 2011, the Company sold Xi’an Dragon Continuation School, Shandong North Resource Information Technology Co., Ltd. and Jinan Prosperous Resource Technology Co., Ltd., Guangzhou Modern Olympic Training School, and Tianjin Yimatong Technology Development Co., Ltd. to Beijing Tongshengle Investment Co., Ltd., ("Tongshengle") for cash consideration of RMB 35,000, and RMB 21,000 of which has been received by December 31, 2012. A bad debt allowance of RMB 200 was provided in 2012. In 2015, the Group provided an additional allowance of RMB 5,300 by reducing the net receivables, after netting of payable balance, from Tongshengle to zero after assessing the collectability. | ||||||||||||||||||
[2] | On July 25, 2013, the Group entered in a letter for intent with Kunshan Venture Investment Limited ("Kunshan Venture").to transfer the equity interest of Taishidian Holding, with consideration of RMB 234,500. The legal title of Taishidian Holding has been transferred to Kunshan Venture in July 2013, and the Group has no continuing involvement in Taishidian Holding since that. Management assessed the recoverable value with best estimation to be approximately RMB 110,000. Bad debt provision of RMB 124,500 was provided for the excessive portion and was included in the disposal loss in 2013. On February 6, 2015, the receivable balance of RMB 234,500 was transferred to Suzhou Hezhijia Investment Management Limited with a consideration of RMB 70,000. Therefore, the difference of RMB 40,000 between the carrying amount of RMB 110,000 and the consideration of RMB 70,000 was recognized as bad debt in 2014. Following the transfer, the gross balance of the receivable was reduced to RMB 70,000 from RMB 234,500. In February 2015, the Group received RMB 40,000 of the consideration. By the end of 2015, the Group had not collected the remaining balance. After assessing the collectability, management provided an allowance of RMB 30,000. As of December 31, 2016, the remaining balance of RMB 30,000 was written off, after all collection efforts have been exhausted and the potential for recovery was remote. |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | Mar. 01, 2012CNY (¥) | Dec. 30, 2010CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||||
Sub-total | ¥ 239,837 | ¥ 236,672 | ||||
Less: accumulated depreciation | (151,830) | (141,690) | ||||
Total | 88,007 | 94,982 | $ 12,676 | |||
Depreciation expenses of continuing operations | 17,620 | 25,048 | ¥ 35,461 | |||
Net carrying value of certain buildings for which the Group is in the process of applying for building ownership certificates | 34,870 | |||||
Ambow Beijing Campus And Shenyang K12 [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Depreciation expenses of continuing operations | 600 | 2,419 | ¥ 2,419 | |||
Capital leases of properties | 3,750 | 3,150 | ¥ 45,324 | ¥ 12,000 | ||
Property Plant Equipment, Cost, Write Off | 45,324 | |||||
Accumulated Depreciation Write Off | 6,510 | |||||
Building [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Sub-total | 64,222 | 63,643 | ||||
Assets Held Under Capital Leases [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Sub-total | 12,000 | 12,000 | ||||
Impairment loss on property and equipment | 38,814 | |||||
Vehicles [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Sub-total | 6,173 | 7,113 | ||||
Office And Computer Equipment [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Sub-total | 87,121 | 87,067 | ||||
Lease hold Improvements [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Sub-total | ¥ 70,321 | ¥ 66,849 |
INTANGIBLE ASSETS, NET (Summary
INTANGIBLE ASSETS, NET (Summary of Intangible Assets) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
INTANGIBLE ASSETS, NET [Line Items] | ||
Trade names, Gross and Net Carrying Amount | ¥ 48,908 | ¥ 51,563 |
Finite-lived intangible assets | ||
Less: accumulated amortization | (158,404) | (149,789) |
Total | 45,800 | |
Intangible assets | ||
Gross Carrying Amount | 253,112 | 253,183 |
Less: accumulated amortization | (158,404) | (149,789) |
Net Carrying Amount | 94,708 | 103,394 |
Student populations [Member] | ||
Finite-lived intangible assets | ||
Gross carrying amount | 38,380 | 38,380 |
Less: accumulated amortization | (36,964) | (36,244) |
Total | 1,416 | 2,136 |
Intangible assets | ||
Less: accumulated amortization | (36,964) | (36,244) |
Software [Member] | ||
Finite-lived intangible assets | ||
Gross carrying amount | 91,254 | 88,670 |
Less: accumulated amortization | (89,138) | (87,145) |
Total | 2,116 | 1,525 |
Intangible assets | ||
Less: accumulated amortization | (89,138) | (87,145) |
Customer relationships [Member] | ||
Finite-lived intangible assets | ||
Gross carrying amount | 5,270 | 5,270 |
Less: accumulated amortization | (5,270) | (3,002) |
Total | 2,268 | |
Intangible assets | ||
Less: accumulated amortization | (5,270) | (3,002) |
Cooperative agreements [Member] | ||
Finite-lived intangible assets | ||
Gross carrying amount | 5,230 | 5,230 |
Less: accumulated amortization | (3,046) | (2,537) |
Total | 2,184 | 2,693 |
Intangible assets | ||
Less: accumulated amortization | (3,046) | (2,537) |
Favorable leases [Member] | ||
Finite-lived intangible assets | ||
Gross carrying amount | 63,237 | 63,237 |
Less: accumulated amortization | (23,153) | (20,028) |
Total | 40,084 | 43,209 |
Intangible assets | ||
Less: accumulated amortization | (23,153) | (20,028) |
Non-compete agreements [Member] | ||
Finite-lived intangible assets | ||
Gross carrying amount | 833 | 833 |
Less: accumulated amortization | (833) | (833) |
Total | ||
Intangible assets | ||
Less: accumulated amortization | ¥ (833) | ¥ (833) |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
INTANGIBLE ASSETS, NET [Line Items] | |||
Impairment loss | ¥ 30,167 | ||
Amortization expenses for intangible assets of continuing operations | ¥ 6,786 | ¥ 10,707 | 16,818 |
Amortization expenses for intangible assets of continuing operations included in cost of sales | 2,466 | 3,061 | 3,118 |
Zhenjiang International School [Member] | |||
INTANGIBLE ASSETS, NET [Line Items] | |||
Impairment loss | 4,139 | ||
Trade name [Member] | |||
INTANGIBLE ASSETS, NET [Line Items] | |||
Impairment loss | ¥ 2,655 | ¥ 9,639 | ¥ 26,028 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expenses of Intangible Assets for Future Annual Periods) (Details) ¥ in Thousands | Dec. 31, 2016CNY (¥) |
Estimated amortization expenses for each of the future annual periods | |
2,017 | ¥ 4,921 |
2,018 | 4,438 |
2,019 | 4,293 |
2,020 | 4,132 |
2,021 | 3,784 |
Thereafter | 24,232 |
Total | ¥ 45,800 |
GOODWILL (Details)
GOODWILL (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | ¥ 85,988 | ¥ 84,541 | ||
Foreign currency translation adjustments | 1,713 | 1,447 | ||
Goodwill impairment | (19,747) | 0 | ¥ (229,914) | |
Balance at the end of the period | ¥ 67,954 | $ 9,787 | 85,988 | 84,541 |
Terminal growth rate (as a percent) | 3.00% | 3.00% | ||
Minimum [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Discount rate (as a percent) | 16.00% | 16.00% | ||
Maximum [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Discount rate (as a percent) | 17.00% | 17.00% | ||
Tutoring [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Goodwill impairment | ¥ (19,747) | |||
Better Schools [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | 52,251 | 51,424 | ||
Foreign currency translation adjustments | 978 | 827 | ||
Goodwill impairment | (19,747) | |||
Balance at the end of the period | 33,482 | 52,251 | 51,424 | |
Better Schools [Member] | Tutoring [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | 27,026 | 26,609 | ||
Foreign currency translation adjustments | 493 | 417 | ||
Goodwill impairment | (19,747) | |||
Balance at the end of the period | 7,772 | 27,026 | 26,609 | |
Better Schools [Member] | K-12 Schools [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | 25,225 | 24,815 | ||
Foreign currency translation adjustments | 485 | 410 | ||
Goodwill impairment | ||||
Balance at the end of the period | 25,710 | 25,225 | 24,815 | |
Better Jobs [Member] | Career Enhancement [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | 33,737 | 33,117 | ||
Foreign currency translation adjustments | 735 | 620 | ||
Goodwill impairment | ||||
Balance at the end of the period | ¥ 34,472 | ¥ 33,737 | ¥ 33,117 |
PREPAYMENT FOR ACQUISITION OF90
PREPAYMENT FOR ACQUISITION OF PROPERTY (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 30, 2016CNY (¥)a | Dec. 31, 2015CNY (¥) |
Earnest Money Deposits | ¥ 71,024 | $ 10,230 | ¥ 71,024 | ¥ 0 |
Area of Land | 1,500 |
PREPAYMENT FOR ACQUISITION OF91
PREPAYMENT FOR ACQUISITION OF PROPERTY (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 30, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Prepayment for acquisition of property | ¥ 71,024 | $ 10,230 | ¥ 71,024 | ¥ 0 |
ACCRUED AND OTHER LIABILITIES92
ACCRUED AND OTHER LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | |
Business tax, VAT and others | ¥ 75,444 | ¥ 75,354 | ||
Payable balance with indemnity by Xihua Group | 49,800 | 49,800 | ||
Accrual for rental | 57,809 | 56,194 | ||
Payable to Zhenjiang Foreign Language School | 36,770 | 36,770 | ||
Accrued payroll and welfare | 34,567 | 35,171 | ||
Payable to Jinghan Group | 25,959 | 25,959 | ||
Professional service fees payable | 28,368 | 30,022 | ||
Student tuition refund payable | [1] | 10,743 | 253 | |
Receipt in advance | 6,551 | 6,757 | ||
Amounts due to cooperating partners | 4,215 | 5,491 | ||
Lawsuit penalty payable | 2,176 | |||
Due to former owners | 1,254 | 1,254 | ||
Accrued interest payable | 209 | 349 | ||
Current portion of consideration payable for acquisitions | 2,258 | |||
Collection in advance on behalf of students | 8,413 | 5,589 | ||
Advance from others | 4,656 | 11,931 | ||
Employee reimbursement payable | 6,927 | 6,927 | ||
Others | 18,960 | 17,278 | ||
Total | ¥ 372,821 | $ 53,697 | ¥ 367,357 | |
[1] | The balance represented tuition collected from students in advance but respective services could not be provided anymore. |
SHORT-TERM BORROWINGS (Schedule
SHORT-TERM BORROWINGS (Schedule of Short-term Borrowings) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
SHORT-TERM BORROWINGS [Line Items] | |||
Total short-term borrowings | ¥ 0 | $ 0 | ¥ 2,300 |
Unsecured short-term borrowings from third party [Member] | |||
SHORT-TERM BORROWINGS [Line Items] | |||
Total short-term borrowings | ¥ 2,300 |
SHORT-TERM BORROWINGS (Narrativ
SHORT-TERM BORROWINGS (Narrative) (Details) - Short-term borrowings [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SHORT-TERM BORROWINGS [Line Items] | |||
Interest expenses incurred | ¥ 115 | ¥ 4,292 | ¥ 25,057 |
Weighted average interest rate (as a percent) | 0.00% | 10.00% | |
Weighted average short-term borrowings | ¥ 1,109 | ¥ 11,031 |
CONVERTIBLE LOAN (Narrative) (D
CONVERTIBLE LOAN (Narrative) (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Mar. 05, 2015USD ($)shares | Sep. 05, 2014CNY (¥)shares | Sep. 05, 2014USD ($)shares | Aug. 31, 2014USD ($)shares | May 13, 2014CNY (¥)shares | May 13, 2014USD ($)shares | May 05, 2014CNY (¥) | Jun. 03, 2013CNY (¥) | Jun. 03, 2013USD ($) | Oct. 24, 2012CNY (¥) | Dec. 31, 2016CNY (¥)Item | Dec. 31, 2016USD ($)Item$ / shares | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2013CNY (¥) | May 13, 2014USD ($)$ / shares | May 05, 2014USD ($) | Mar. 13, 2014CNY (¥) | Mar. 13, 2014USD ($) | Oct. 24, 2012USD ($)$ / shares | Jun. 12, 2012CNY (¥) | Jun. 12, 2012USD ($) |
Convertible loan [Line Items] | |||||||||||||||||||||||
Amount of gain recognized | ¥ 0 | $ 0 | ¥ 0 | ¥ (143,901) | |||||||||||||||||||
Class A Ordinary Shares [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Total purchase consideration of shares issued and sold | ¥ 128,035 | $ 21,000 | |||||||||||||||||||||
SummitView [Member] | Class A Ordinary Shares [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Value of convertible promissory notes held by creditor at the time of conversion | $ | $ 5,000 | ||||||||||||||||||||||
Number of shares issued on conversion of convertible loan | shares | 2,786,159 | 2,786,159 | |||||||||||||||||||||
Amount of debt converted | $ | $ 5,000 | ||||||||||||||||||||||
Baring [Member] | Class A Ordinary Shares [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Number of shares issued on conversion of convertible loan | shares | 2,786,159 | ||||||||||||||||||||||
CEHIL [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Value of convertible promissory notes held by creditor at the time of conversion | $ | $ 6,308 | ||||||||||||||||||||||
Amount of loans and funds provided for restructuring plan | ¥ 290,600 | $ 48,000 | $ 48,000 | ||||||||||||||||||||
Amount of loan repaid | ¥ 80,000 | ||||||||||||||||||||||
Economic interest (as a percent) | 85.00% | ||||||||||||||||||||||
Voting rights (as a percent) | 50.10% | ||||||||||||||||||||||
Amount assigned to lenders | ¥ 30,595 | $ 5,000 | |||||||||||||||||||||
Number of shares issued on conversion of convertible loan | shares | 4,457,854 | 5,678,963 | 32,426,090 | 32,426,090 | |||||||||||||||||||
Conversion rate (in dollars per share) | 1.480 | 1.480 | |||||||||||||||||||||
Amount of debt converted | $ | $ 6,308 | ||||||||||||||||||||||
Total purchase consideration of shares issued and sold | $ | $ 5,779 | ||||||||||||||||||||||
Share-based compensation expenses | 94,360 | ||||||||||||||||||||||
CEHIL [Member] | Class A Ordinary Shares [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Number of shares issued on conversion of convertible loan | shares | 4,457,854 | 16,716,954 | 16,716,954 | ||||||||||||||||||||
CEHIL [Member] | SummitView [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Value of convertible promissory notes held by creditor at the time of conversion | ¥ 224,517 | $ 36,692 | |||||||||||||||||||||
Number of shares issued on conversion of convertible loan | shares | 25,182,076 | 25,182,076 | |||||||||||||||||||||
Amount of debt converted | ¥ 224,517 | $ 36,692 | |||||||||||||||||||||
New Flourish Holdings Limited [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Number of shares issued on conversion of convertible loan | shares | 5,678,963 | 5,678,963 | |||||||||||||||||||||
New Flourish Holdings Limited [Member] | Class A Ordinary Shares [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Number of shares issued on conversion of convertible loan | shares | 5,678,963 | 5,678,963 | |||||||||||||||||||||
IFC Loan [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Conversion price (in dollars per ADS) | $ / shares | $ 300 | ||||||||||||||||||||||
Variable interest rate margin (as a percent) | 4.50% | 4.50% | |||||||||||||||||||||
Variable rate basis | 6-month LIBOR | 6-month LIBOR | |||||||||||||||||||||
Number of equal semi-annual installments | Item | 2 | 2 | |||||||||||||||||||||
Penalty interest rate (as a percent) | 2.00% | 2.00% | |||||||||||||||||||||
Penalty interest amount | ¥ 1,082 | ||||||||||||||||||||||
Costs incurred attributable to the issuance of Loan | ¥ 3,432 | $ 567 | |||||||||||||||||||||
Front fee paid | 4,924 | ||||||||||||||||||||||
Front fee amortization amount | |||||||||||||||||||||||
Required liquidated damages (as a percent) | 0.50% | ||||||||||||||||||||||
Principal IFC loan | ¥ 125,710 | $ 20,000 | |||||||||||||||||||||
Each period for which liquidated damages required | 30 years | ||||||||||||||||||||||
Required liquidated damages cap (as a percent) | 6.00% | ||||||||||||||||||||||
Period within which registration statement is required to be declared effective in the event there are no SEC comments | 30 days | ||||||||||||||||||||||
Period within which registration statement is required to be declared effective in the event there are SEC comments | 90 days | ||||||||||||||||||||||
Period after conversion of debt, for which Company required to maintain the effectiveness of the registration statement | 1 year | 1 year | |||||||||||||||||||||
Interest expense | ¥ 98,705 | ||||||||||||||||||||||
Amortization of convertible loan discount | ¥ 98,705 | ||||||||||||||||||||||
IFC Loan [Member] | Class A Ordinary Shares [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Conversion price (in dollars per ADS) | $ / shares | $ 150 | ||||||||||||||||||||||
IFC Loan [Member] | CEHIL [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Value of convertible promissory notes held by creditor at the time of conversion | $ | $ 6,308 | $ 31,692 | |||||||||||||||||||||
Interest expense | 56,549 | ||||||||||||||||||||||
Amount of debt converted | $ | $ 6,308 | $ 31,692 | |||||||||||||||||||||
Amortization of convertible loan discount | ¥ 56,549 | ||||||||||||||||||||||
IFC Loan [Member] | Minimum [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Amount of debt that may be converted | $ | $ 1,000 | ||||||||||||||||||||||
IFC Loan [Member] | Interest rate change feature [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Fair value of derivative assets | ¥ 369 | $ 61 | |||||||||||||||||||||
Principal IFC loan | ¥ 121,074 | $ 20,000 | |||||||||||||||||||||
IFC Loan [Member] | Within 12 months from the date of the Loan Agreement [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Variable interest rate margin (as a percent) | 3.50% | 3.50% | |||||||||||||||||||||
IFC Loan [Member] | Within 12 months from the date of the Loan Agreement [Member] | Minimum [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Average trading price of ADSs (in dollars per share) | $ / shares | $ 210 | ||||||||||||||||||||||
IFC Loan [Member] | At any time prior to the fifth anniversary of the date of the first disbursement of the IFC Loan [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Variable interest rate margin (as a percent) | 3.00% | 3.00% | |||||||||||||||||||||
IFC Loan [Member] | At any time prior to the fifth anniversary of the date of the first disbursement of the IFC Loan [Member] | Minimum [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Average trading price of ADSs (in dollars per share) | $ / shares | $ 360 | ||||||||||||||||||||||
Period for average trading price of ADSs | 4 months | 4 months | |||||||||||||||||||||
IFC C Loan [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Proceeds from issuance accounted for as the conversion feature | ¥ 300,574 | $ 49,121 | |||||||||||||||||||||
Principal IFC loan | ¥ 104,023 | $ 17,000 | |||||||||||||||||||||
Conversion rate (in dollars per share) | 1.479 | 1.479 | |||||||||||||||||||||
Fair value of IFC loan after amendment | 254,169 | 41,538 | |||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 3.465 | ||||||||||||||||||||||
Interest accrued and not paid | ¥ 6,862 | $ 1,121 | |||||||||||||||||||||
Amount of gain recognized | ¥ 143,901 | $ 23,417 | |||||||||||||||||||||
IFC C Loan [Member] | CEHIL [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Principal IFC loan | ¥ 104,023 | $ 17,000 | |||||||||||||||||||||
Interest rate (as a percent) | 3.00% | 3.00% | |||||||||||||||||||||
IFC C Loan [Member] | Minimum [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Conversion rate (in dollars per share) | 1.479 | 1.479 | |||||||||||||||||||||
IFC C Loan [Member] | Maximum [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Conversion rate (in dollars per share) | 150 | 150 | |||||||||||||||||||||
IFC D Loan [Member] | CEHIL [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Principal IFC loan | ¥ 85,550 | $ 13,981 | |||||||||||||||||||||
Term of debt agreement | 3 years | 3 years | |||||||||||||||||||||
Interest rate (as a percent) | 3.00% | 3.00% | |||||||||||||||||||||
Other loan [Member] | CEHIL [Member] | |||||||||||||||||||||||
Convertible loan [Line Items] | |||||||||||||||||||||||
Principal IFC loan | ¥ 104,139 | $ 17,019 |
CONVERTIBLE LOAN (Schedule of C
CONVERTIBLE LOAN (Schedule of Convertible Loan) (Details) - IFC Loan [Member] $ in Thousands | Sep. 05, 2014USD ($) |
Debt Before Conversion [Member] | |
Summary of convertible loan | |
Net carrying amount | $ 48,000 |
Debt After Conversion [Member] | |
Summary of convertible loan | |
Net carrying amount | 11,308 |
SummitView [Member] | Debt Before Conversion [Member] | |
Summary of convertible loan | |
Net carrying amount | 5,000 |
SummitView [Member] | Debt After Conversion [Member] | |
Summary of convertible loan | |
Net carrying amount | |
Baring [Member] | Debt Before Conversion [Member] | |
Summary of convertible loan | |
Net carrying amount | 5,000 |
Baring [Member] | Debt After Conversion [Member] | |
Summary of convertible loan | |
Net carrying amount | 5,000 |
CEHIL [Member] | Debt Before Conversion [Member] | |
Summary of convertible loan | |
Net carrying amount | 38,000 |
CEHIL [Member] | Debt After Conversion [Member] | |
Summary of convertible loan | |
Net carrying amount | $ 6,308 |
CONVERTIBLE LOAN (Schedule of A
CONVERTIBLE LOAN (Schedule of Actual Conversion Rates of Convertible Loans) (Details) $ in Thousands | Mar. 05, 2015shares | Sep. 05, 2014shares | Aug. 31, 2014shares | May 13, 2014shares | Dec. 31, 2016USD ($)shares |
Convertible Loans [Member] | |||||
Convertible loan [Line Items] | |||||
Total convertible loan, loan principal | $ | $ 48,000 | ||||
Total convertible loan, shares held through conversion | 32,426,089 | ||||
Total convertible loan, actual conversion rate (in dollars per share) | 1.480 | ||||
SummitView [Member] | Convertible Loans [Member] | |||||
Convertible loan [Line Items] | |||||
Total convertible loan, loan principal | $ | $ 5,000 | ||||
Total convertible loan, shares held through conversion | 2,786,159 | ||||
Total convertible loan, actual conversion rate (in dollars per share) | 1.795 | ||||
Baring [Member] | Convertible Loans [Member] | |||||
Convertible loan [Line Items] | |||||
Total convertible loan, loan principal | $ | $ 5,000 | ||||
Total convertible loan, shares held through conversion | 2,786,159 | ||||
Total convertible loan, actual conversion rate (in dollars per share) | 1.795 | ||||
CEHIL [Member] | |||||
Convertible loan [Line Items] | |||||
Total convertible loan, shares held through conversion | 4,457,854 | 5,678,963 | 32,426,090 | ||
Total convertible loan, actual conversion rate (in dollars per share) | 1.480 | ||||
CEHIL [Member] | Convertible Loans [Member] | |||||
Convertible loan [Line Items] | |||||
Total convertible loan, loan principal | $ | $ 38,000 | ||||
Total convertible loan, shares held through conversion | 26,853,771 | ||||
Total convertible loan, actual conversion rate (in dollars per share) | 1.415 | ||||
CEHIL [Member] | SummitView [Member] | |||||
Convertible loan [Line Items] | |||||
Total convertible loan, shares held through conversion | 25,182,076 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Nov. 08, 2015Itemshares | Sep. 04, 2015 | Mar. 05, 2015USD ($)shares | Oct. 14, 2014$ / sharesshares | Sep. 05, 2014CNY (¥)shares | Sep. 05, 2014USD ($)shares | Aug. 31, 2014USD ($)shares | May 13, 2014shares | May 05, 2014CNY (¥)shares | Jun. 03, 2013CNY (¥)shares | Jun. 03, 2013USD ($)shares | May 18, 2015shares | Jan. 21, 2015Itemshares | Aug. 31, 2010$ / sharesshares | Dec. 31, 2016CNY (¥)Itemshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2016USD ($)Item$ / sharesshares | Dec. 31, 2014shares | May 05, 2014USD ($) |
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Number of American depositary shares issued | 250,000 | ||||||||||||||||||
Number of shares offered by selling shareholders | 105,907 | ||||||||||||||||||
Par value of ordinary shares (in dollars per share) | $ / shares | $ 0.003 | $ 0.003 | $ 0.003 | ||||||||||||||||
Shares issued | 38,699,095 | 38,265,177 | 38,699,095 | ||||||||||||||||
Shares outstanding | 38,699,095 | 38,265,177 | 38,699,095 | ||||||||||||||||
Reverse stock split ratio | 30 | ||||||||||||||||||
Stock split ratio | 30 | ||||||||||||||||||
Awards vested | 225,377 | 270,453 | |||||||||||||||||
Employees [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Awards vested | 6,666 | 59,872 | |||||||||||||||||
Director [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Awards vested | 225,377 | 424,459 | |||||||||||||||||
Restricted stock [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Granted (in shares) | 135,227 | 596,473 | |||||||||||||||||
Denominator used to determine number of shares of restricted stock subject to each award | $ / shares | $ 200 | ||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 1.480 | ||||||||||||||||||
Awards outstanding | 811,359 | 415,521 | 861,522 | 415,521 | 811,359 | ||||||||||||||
Awards vested | 225,377 | 270,453 | |||||||||||||||||
Restricted stock [Member] | Employees and new hires [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Granted (in shares) | 510,000 | 201,875 | 0 | ||||||||||||||||
Vesting period | 36 months | ||||||||||||||||||
Awards vested | 201,875 | 0 | |||||||||||||||||
Restricted stock [Member] | Employees [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Granted (in shares) | 86,473 | ||||||||||||||||||
CEHIL [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 4,457,854 | 5,678,963 | 32,426,090 | ||||||||||||||||
Total purchase consideration of shares issued and sold | $ | $ 5,779 | ||||||||||||||||||
Amount of debt converted | $ | $ 6,308 | ||||||||||||||||||
New Flourish [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 5,678,963 | 5,678,963 | |||||||||||||||||
Baring [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 2,786,159 | ||||||||||||||||||
Amount of debt converted | $ | $ 5,000 | ||||||||||||||||||
SummitView [Member] | CEHIL [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 25,182,076 | 25,182,076 | |||||||||||||||||
Amount of debt converted | ¥ 224,517 | $ 36,692 | |||||||||||||||||
Convertible Debt [Member] | CEHIL [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Amount of debt converted | $ | $ 6,308 | $ 31,692 | |||||||||||||||||
Class A Ordinary Shares [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Number of votes per ordinary share | Item | 1 | 1 | |||||||||||||||||
Shares issued | 33,990,680 | 33,556,762 | 33,990,680 | 27,552,058 | |||||||||||||||
Shares outstanding | 33,990,680 | 33,556,762 | 33,990,680 | 27,552,058 | |||||||||||||||
Stock Issued During Period, Shares, New Issues | 1,026,705 | 1,026,705 | |||||||||||||||||
Total purchase consideration of shares issued and sold | ¥ 128,035 | $ 21,000 | |||||||||||||||||
Amount received for issuance and sale of shares | ¥ 60,969 | $ 10,000 | |||||||||||||||||
Amount outstanding in connection of shares issued and sold | ¥ 67,066 | $ 11,000 | |||||||||||||||||
Reverse stock split ratio | 30 | ||||||||||||||||||
Stock split ratio | 2 | ||||||||||||||||||
Class A Ordinary Shares [Member] | CEHIL [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 4,457,854 | 16,716,954 | 16,716,954 | ||||||||||||||||
Class A Ordinary Shares [Member] | New Flourish [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 5,678,963 | 5,678,963 | |||||||||||||||||
Class A Ordinary Shares [Member] | Baring [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 2,786,159 | ||||||||||||||||||
Class A Ordinary Shares [Member] | Spin-Rich Ltd [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Conversion ratio for conversion of Class B ordinary shares into Class A ordinary shares | 1 | ||||||||||||||||||
Number of ordinary shares converted to Class A ordinary shares | 420,000 | ||||||||||||||||||
Class A Ordinary Shares [Member] | SummitView [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 2,786,159 | 2,786,159 | |||||||||||||||||
Amount outstanding in connection of shares issued and sold | ¥ 67,066 | $ 11,000 | |||||||||||||||||
Amount of debt converted | $ | $ 5,000 | ||||||||||||||||||
Number of shares surrendered | 537,797 | ||||||||||||||||||
Class B Ordinary Shares [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Par value of ordinary shares (in dollars per share) | $ / shares | $ 0.003 | ||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 2,691,863 | ||||||||||||||||||
Number of votes per ordinary share | Item | 10 | 10 | 10 | ||||||||||||||||
Shares issued | 2,984,775 | ||||||||||||||||||
Shares outstanding | 2,984,775 | ||||||||||||||||||
Class B Ordinary Shares [Member] | Spin-Rich Ltd [Member] | Jinghan Group [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Reduction in ownership percentage (as a percent) | 5.00% | ||||||||||||||||||
Class C Ordinary Shares [Member] | |||||||||||||||||||
ORDINARY SHARES [Line Items] | |||||||||||||||||||
Number of votes per ordinary share | Item | 10 | ||||||||||||||||||
Shares issued | 4,708,415 | 4,708,415 | 4,708,415 | ||||||||||||||||
Number of ordinary shares converted to Class A ordinary shares | 4,708,415 | ||||||||||||||||||
Shares outstanding | 4,708,415 | 4,708,415 | 4,708,415 |
SHARE BASED COMPENSATION (Narra
SHARE BASED COMPENSATION (Narrative) (Details) ¥ / shares in Units, ¥ in Thousands | Oct. 14, 2014$ / sharesshares | Jun. 01, 2010shares | Feb. 04, 2005shares | Jun. 26, 2015¥ / shares | May 18, 2015shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2014CNY (¥)shares | Jun. 26, 2015$ / shares | Nov. 14, 2008shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation expenses | ¥ | ¥ 7,828 | ¥ 9,076 | ¥ 3,584 | |||||||
Unrecognized share-based compensation expenses | ¥ | 8,616 | 15,725 | ||||||||
Difference between the fair value of the consideration and ordinary shares | ¥ | 0 | ¥ (3,645) | ¥ 5,110 | |||||||
Incremental share-based compensation expenses | ¥ | ¥ 5,238 | |||||||||
Awards vested | 225,377 | 270,453 | ||||||||
Employees [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Awards vested | 6,666 | 59,872 | ||||||||
Board members [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Awards vested | 225,377 | 424,459 | ||||||||
Restricted stock [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 135,227 | 596,473 | ||||||||
Denominator used to determine number of shares of restricted stock subject to each award | $ / shares | $ 200 | |||||||||
Share price (in dollars per share) | $ / shares | $ 1.480 | |||||||||
Awards outstanding | 811,359 | 415,521 | 861,522 | 811,359 | ||||||
Awards vested | 225,377 | 270,453 | ||||||||
Awards issued | (433,918) | (484,331) | ||||||||
Restricted stock [Member] | Employees [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 86,473 | |||||||||
Awards issued | 6,666 | 59,872 | ||||||||
Restricted stock [Member] | Employees and new hires [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 36 months | |||||||||
Granted (in shares) | 510,000 | 201,875 | 0 | |||||||
Awards vested | 201,875 | 0 | ||||||||
Restricted stock [Member] | Board members [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Awards issued | 225,377 | 424,459 | ||||||||
Share Incentive Plan 2005 [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares authorized for grant | 50,000 | 676,078 | ||||||||
Expiration term | 10 years | |||||||||
Vesting period | 4 years | |||||||||
Automatic termination period of the plan | 10 years | |||||||||
Share Incentive Plan 2005 [Member] | Minimum [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Percentage of voting interest to be held by an individual to be eligible for designation as an optionee or purchaser | 10.00% | |||||||||
Exercise price per share granted to a 10% stockholder relative to fair market value per share on the grant date (as a percent) | 110.00% | |||||||||
Purchase price per share granted to a 10% stockholder relative to fair market value per share on the grant date (as a percent) | 100.00% | |||||||||
Equity Incentive Plan 2010 [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Minimum exercise price of options to purchase shares to whom opportunity was offered to exchange shares | (per share) | ¥ 3.08 | $ 0.4749 | ||||||||
Period used to calculate average trading price of the Company's Class A ordinary shares | 30 days | |||||||||
Automatic termination period of the plan | 10 years | |||||||||
Equity Incentive Plan 2010 [Member] | Common Class A [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares authorized for grant | 633,333 | |||||||||
Annual increase in shares authorized on the first day of each fiscal year | 833,333 | |||||||||
Annual increase in shares authorized on the first day of each fiscal year (as a percent) | 5.00% | |||||||||
Equity Incentive Plan 2010 [Member] | Common Class A [Member] | Maximum [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of shares to be added to the 2010 Plan from the 2005 Plan | 333,333 | |||||||||
Equity Incentive Plan 2010 [Member] | Incentive Shares Option [Member] | Maximum [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Expiration term | 10 years | |||||||||
Equity Incentive Plan 2010 [Member] | Incentive Shares Option [Member] | Employees [Member] | Minimum [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Percentage of voting interest to be held by an individual to be eligible for designation as an optionee or purchaser | 10.00% | |||||||||
Exercise price per share granted to a 10% stockholder relative to fair market value per share on the grant date (as a percent) | 110.00% | |||||||||
Expiration term | 5 years |
SHARE BASED COMPENSATION (Summa
SHARE BASED COMPENSATION (Summary of Share Option Activity) (Details) - Employee and Directors Stock Options [Member] - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Available for future grants (in shares) | 939,177 | 808,445 | ||
Shares | ||||
Outstanding at the beginning of the year (in shares) | 387,350 | 427,273 | 450,670 | |
Granted (in shares) | ||||
Exercised (in shares) | ||||
Forfeited or expired (in shares) | (39,923) | (23,397) | ||
Outstanding at the end of the year (in shares) | 256,617 | 387,350 | 427,273 | 450,670 |
Exercisable at the end of the year (in shares) | 256,617 | 387,350 | 422,641 | |
Expected to vested (in shares) | 4,032 | |||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the year | ¥ 3.08 | ¥ 503.40 | ¥ 506.70 | |
Granted | ||||
Exercised | ||||
Forfeited or expired | 3.30 | 3.08 | 688.50 | |
Outstanding at end of year | 3.30 | 3.08 | 503.40 | ¥ 506.70 |
Exercisable at end of year | 3.30 | 3.08 | 501.60 | |
Expected to be vested | ¥ 609.30 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding at end of year | 2 years 10 months 2 days | 2 years 7 months 2 days | 3 years 5 months 26 days | 4 years 6 months 14 days |
Exercisable at end of year | 2 years 10 months 2 days | 2 years 7 months 17 days | 3 years 5 months 12 days | |
Expected to be vested | 6 years 8 months 8 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at beginning of year | ¥ 3,836 | ¥ 175 | ¥ 10,940 | |
Granted | ||||
Exercised | ||||
Forfeited or expired | ||||
Outstanding at end of year | 4,499 | 3,836 | 175 | ¥ 10,940 |
Exercisable at end of year | 4,499 | 1,435 | 64 | |
Expected to be vested | ||||
Employees [Member] | ||||
Shares | ||||
Outstanding at the beginning of the year (in shares) | 226,696 | 319,229 | ||
Outstanding at the end of the year (in shares) | 226,696 | 319,229 | ||
Non Employees [Member] | ||||
Shares | ||||
Outstanding at the beginning of the year (in shares) | 29,921 | 68,121 | ||
Outstanding at the end of the year (in shares) | 29,921 | 68,121 |
SHARE BASED COMPENSATION (Sched
SHARE BASED COMPENSATION (Schedule of Assumptions Used) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employees [Member] | |||
Additional disclosures | |||
Total fair values of option and warrants vested | ¥ 0 | ¥ 83 | ¥ 4,787 |
Non Employees [Member] | |||
Additional disclosures | |||
Total fair values of option and warrants vested | ¥ 0 | ¥ 4 | ¥ 94 |
SHARE BASED COMPENSATION (Sc102
SHARE BASED COMPENSATION (Schedule of Restricted stock ) (Details) - Restricted stock [Member] - ¥ / shares | Oct. 14, 2014 | Dec. 31, 2016 | Dec. 31, 2015 |
Shares | |||
Outstanding at beginning of year (in shares) | 861,522 | 811,359 | |
Granted (in shares) | 135,227 | 596,473 | |
Issued (in shares) | (433,918) | (484,331) | |
Forfeited or expired (in shares) | (12,083) | (61,979) | |
Outstanding at end of year (in shares) | 811,359 | 415,521 | 861,522 |
Shares vested but not issued at end of year (in shares) | 34,962 | 41,628 | |
Grant-date fair value | |||
Outstanding at beginning of year | ¥ 21.94 | ¥ 21.20 | |
Granted | 20.32 | ||
Issued | 22.94 | ||
Forfeited or expired | 21.72 | 20.32 | |
Outstanding at end of year | 22.28 | 21.94 | |
Shares vested but not issued at end of year | ¥ 22.73 | ¥ 20.64 | |
Weighted Average Remaining Contractual Term | |||
Outstanding at beginning of year | 2 years 7 months 2 days | 2 years 7 months 17 days | |
Granted | 0 years | 4 years | |
Forfeited or expired | 2 years 4 months 20 days | 1 year 4 months 17 days | |
Outstanding at end of year | 2 years 7 months 2 days | 2 years 7 months 17 days | |
Shares vested but not issued at the end of the period |
TAXATION (Narrative) (Details)
TAXATION (Narrative) (Details) - CNY (¥) ¥ in Thousands | Mar. 13, 2015 | Aug. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2007 | Dec. 31, 2012 |
Income Taxes [Line Items] | ||||||||
Income tax rate (as a percent) | 25.00% | 25.00% | ||||||
Unrecognized tax benefits that if recognized would affect the annual effective tax rate | ¥ 1,675 | ¥ 1,675 | ¥ 4,948 | ¥ 565 | ||||
Minimum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
VAT (as a percent) | 3.00% | |||||||
Business tax (as a percent) | 3.00% | |||||||
Maximum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
VAT (as a percent) | 6.00% | |||||||
Business tax (as a percent) | 5.00% | |||||||
China [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
VAT payable | ¥ 31,314 | 31,314 | 30,590 | |||||
Business tax payable | ¥ 24,106 | ¥ 24,106 | 27,168 | |||||
Favorable tax rate for a High and New Technology Enterprise (as a percent) | 15.00% | |||||||
Transition period for the entities enjoying favorable income tax rate | 5 years | |||||||
Withholding income tax on dividends distributed by an FIE to its immediate holding company outside China (as a percent) | 10.00% | |||||||
Lower withholding income tax on dividends distributed by an FIE to its immediate holding company registered in Hong Kong or other jurisdiction that have a tax treaty or arrangement with China (as a percent) | 5.00% | |||||||
Income tax rate for schools in certain cities registered as requiring reasonable returns (as a percent) | 25.00% | |||||||
China [Member] | Minimum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
VAT (as a percent) | 3.00% | |||||||
Business tax (as a percent) | 3.00% | |||||||
Income tax rate for schools in certain cities registered as requiring reasonable returns (as a percent) | 1.50% | |||||||
China [Member] | Maximum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
VAT (as a percent) | 6.00% | |||||||
Business tax (as a percent) | 5.00% | |||||||
Income tax rate for schools in certain cities registered as requiring reasonable returns (as a percent) | 2.50% | |||||||
Hong Kong [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax rate (as a percent) | 16.50% | |||||||
Beijing Ambow Online Software Co Ltd [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Period within which appeal can be filed | 10 days | |||||||
Late payment interest recognized for the loss contingency | ¥ 1,332 | 1,328 | ||||||
Claw back amount claimed by tax authority | ¥ 7,278 | |||||||
Corresponding late payment interest on claw back amount claimed by tax authority | ¥ 3,435 | ¥ 1,332 | ¥ 1,328 | |||||
Beijing Ambow Online Software Co Ltd [Member] | China [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Percentage of tax deduction | 50.00% |
TAXATION (Schedule of Significa
TAXATION (Schedule of Significant Components of Provision for Income Taxes on Earnings) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2012 | |
Current: | |||||
PRC | ¥ 4,881 | ¥ 8,562 | ¥ 13,537 | ||
Deferred: | |||||
PRC | 1,030 | (127,525) | (12,402) | ||
Provision for income tax expenses (benefits) | ¥ 5,911 | $ 851 | ¥ (118,963) | ¥ 1,135 | |
Applicable tax rate (as a percent) | (19.00%) | (19.00%) | 31.00% | (2.00%) | 12.50% |
Preferential tax rate (as a percent) | 15.00% | 15.00% | |||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% |
TAXATION (Schedule of Principal
TAXATION (Schedule of Principal Components of the Group's Deferred Tax Assets and Liabilities) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Deferred tax asset | |||
Accrued expense | ¥ 7,002 | ¥ 8,191 | |
Allowance for doubtful accounts | 73,907 | 73,475 | |
Tax loss carried forward | 445,263 | 436,586 | |
Deferred advertising expense | 11,519 | 13,579 | |
Impairment of long-lived tangible assets | 24,600 | 27,046 | |
Others | 4,273 | 5,384 | |
Non-current deferred tax assets | 566,564 | 564,261 | |
Valuation allowance | (536,838) | (530,358) | |
Deferred tax asset, net | 29,726 | 33,903 | |
Deferred tax liabilities | |||
Unrecognized valuation surplus and deficit -acquisition | 77,825 | 77,825 | |
Unrecognized valuation surplus and deficit - Decrease due to amortization and impairment | (55,605) | (53,644) | |
Unrealized profit of short-term investments | 952 | 521 | |
Unrealized profit of foreign exchange transaction | 1,019 | ||
Total deferred tax liabilities | ¥ 23,172 | $ 3,337 | ¥ 25,721 |
TAXATION - (Summary of Amounts
TAXATION - (Summary of Amounts and Expiration Dates of Operating Loss Carryforward) (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2016CNY (¥) | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 1,781,053 |
2017 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 560,016 |
Operating loss carryforward expiration years | 2,017 |
2018 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 340,224 |
Operating loss carryforward expiration years | 2,018 |
2019 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 120,788 |
Operating loss carryforward expiration years | 2,019 |
2020 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 96,696 |
Operating loss carryforward expiration years | 2,020 |
2021 and thereafter [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 663,329 |
Operating loss carryforward expiration years | 2021 and thereafter |
TAXATION (Schedule of Roll-forw
TAXATION (Schedule of Roll-forward of Valuation Allowance) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement of valuation allowance | |||
Balance at beginning of the year | ¥ 530,358 | ||
Balance at end of the year | 536,838 | ¥ 530,358 | |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement of valuation allowance | |||
Balance at beginning of the year | 530,358 | 539,704 | ¥ 444,946 |
Allowance made during the year | 6,480 | 30,873 | 128,002 |
Allowance resulting from the reconsolidation of previously deconsolidated entities | 1,352 | ||
Reversals | (41,571) | (33,244) | |
Balance at end of the year | ¥ 536,838 | ¥ 530,358 | ¥ 539,704 |
TAXATION (Schedule of Reconcili
TAXATION (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) (Details) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | |
Reconciliation between total income tax expense and the amount computed by applying the weighted average statutory income tax rate to income before income taxes | ||||
Weighted average statuary tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |
Tax effect of non-deductible expenses | (1.00%) | 0.00% | (1.00%) | |
Tax effect of non-taxable income (as a percent) | 1.00% | 0.00% | 0.00% | |
Tax effect of tax-exempt entities (as a percent) | (10.00%) | (9.00%) | (12.00%) | |
Tax effect of deemed profit (as a percent) | (1.00%) | 0.00% | 0.00% | |
Tax effect of disposed entity (as a percent) | 0.00% | 13.00% | 0.00% | |
Tax penalty (as a percent) | (4.00%) | 0.00% | (1.00%) | |
Changes in valuation allowance (as a percent) | (29.00%) | 2.00% | (13.00%) | |
Effective tax rate (as a percent) | (19.00%) | 31.00% | (2.00%) | 12.50% |
TAXATION (Schedule of Reconc109
TAXATION (Schedule of Reconciliation of Beginning and Ending Amount of Liabilities Associated with Uncertain Tax Positions) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions | |||
Unrecognized tax benefits, beginning of year | ¥ 23,648 | ¥ 15,011 | ¥ 14,930 |
Increases related to current tax positions | 1,675 | 4,948 | 565 |
Addition from the consolidation of previously deconsolidated subsidiaries | 3,689 | ||
Decrease due to deconsolidation | (484) | ||
Unrecognized tax benefits, end of year | ¥ 25,323 | ¥ 23,648 | ¥ 15,011 |
NET INCOME_LOSS PER SHARE (Sche
NET INCOME/LOSS PER SHARE (Schedule of Computation of Basic and Diluted Net Loss Per Share) (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2016$ / shares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | ||
Numerator: | |||||
Numerator for basic and diluted loss from continuing operations per share | ¥ (35,700) | ¥ (277,048) | ¥ (1,018,547) | ||
Numerator for basic and diluted (loss) income from discontinued operations per share | ¥ 340,787 | ¥ (58,266) | |||
Denominator: | |||||
Denominator for basic and diluted (loss) income per share weighted average ordinary shares outstanding (in shares) | shares | [1] | 38,469,234 | 36,848,816 | 13,928,048 | |
Basic and diluted loss per share- continuing operations (in CNY per share) | (per share) | [1] | ¥ (0.93) | $ (0.13) | ¥ (7.52) | ¥ (73.13) |
Basic and diluted (loss) income per share- discontinued operations (in CNY per share) | (per share) | [1] | ¥ 0 | $ 0 | ¥ 9.25 | ¥ (4.18) |
[1] | All per share amounts and shares outstanding for all periods have been retroactively restated to reflect Ambow Education Holding Ltd.’s 1 for 30 reverse stock split, which was effective on September 4, 2015. |
NET INCOME_LOSS PER SHARE (Narr
NET INCOME/LOSS PER SHARE (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares that were excluded from the calculation of diluted net income (loss) per share | 672,138 | 1,248,873 | 1,238,632 |
COMMITMENTS AND CONTINGENCIE112
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) ¥ in Thousands, $ in Thousands, HKD in Millions | Mar. 15, 2015 | Aug. 31, 2014CNY (¥) | Jun. 12, 2014USD ($) | Dec. 12, 2013USD ($)Item | Oct. 21, 2013USD ($) | Jun. 06, 2013USD ($) | May 31, 2016USD ($) | Mar. 20, 2015USD ($) | Jun. 18, 2014USD ($) | Jun. 18, 2014HKD | Feb. 28, 2013CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) |
Loss Contingencies [Line Items] | |||||||||||||||
Operating Leases, Rent Expense | ¥ | ¥ 26,184 | ¥ 54,939 | ¥ 143,499 | ||||||||||||
Loss Contingency Accrual, Payments | $ | $ 450 | ||||||||||||||
Changsha K12 Experimental School [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damage amount sought by plaintiff | ¥ | ¥ 167,990 | ||||||||||||||
Beijing Ambow Online Software Co Ltd [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Amount of enterprise income tax already exempted claimed by tax authority | ¥ | ¥ 7,278 | ||||||||||||||
Accrued overdue fee | ¥ | ¥ 3,435 | 1,332 | 1,328 | ||||||||||||
Total amount to be paid | ¥ | ¥ 13,373 | ¥ 12,041 | ¥ 10,713 | ||||||||||||
Period from receipt of the ruling within which appeal can be filed | 10 days | ||||||||||||||
Breach of Contract [Member] | Skillsoft [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damage amount sought by plaintiff | $ | $ 2,000 | $ 2,500 | $ 7,300 | ||||||||||||
Settlement amount paid | $ | $ 100 | $ 600 | $ 800 | ||||||||||||
Settlement costs | HKD | HKD 0.4 | ||||||||||||||
Settlement amount | $ | $ 600 | ||||||||||||||
Number of claims filed | Item | 2 | ||||||||||||||
Invoices for Pre Paid Licensing Fees [Member] | Skillsoft [Member] | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damage amount sought by plaintiff | $ | $ 2,000 |
COMMITMENTS AND CONTINGENCIE113
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases) (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2016CNY (¥) | |
Operating leases | |
2,017 | ¥ 17,622 |
2,018 | 14,838 |
2,019 | 12,888 |
2,020 | 10,510 |
2,021 | 8,628 |
Thereafter | 54,241 |
Total | ¥ 118,727 |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lease term | 10 years |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | 3 | 3 | 3 | 3 |
Number of reportable segments | 3 | 3 | 3 | 3 |
Net Revenues | ¥ 412,016 | ¥ 395,715 | ¥ 411,998 | |
Cost of revenues | (238,742) | (245,945) | (274,036) | |
GROSS PROFIT | 173,274 | $ 24,957 | 149,770 | 137,962 |
Better Schools [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 270,577 | 241,635 | 236,447 | |
Cost of revenues | (171,298) | (157,867) | (168,144) | |
GROSS PROFIT | 99,279 | 83,768 | 68,303 | |
Better Schools [Member] | Tutoring [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 47,985 | 54,888 | 68,203 | |
Cost of revenues | (33,465) | (41,048) | (52,728) | |
GROSS PROFIT | 14,520 | 13,840 | 15,475 | |
Better Schools [Member] | K12 Schools [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 222,592 | 186,747 | 168,244 | |
Cost of revenues | (137,833) | (116,819) | (115,416) | |
GROSS PROFIT | 84,759 | 69,928 | 52,828 | |
Better Job [Member] | Career Enhancement [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 141,439 | 154,080 | 175,551 | |
Cost of revenues | (67,444) | (88,078) | (105,892) | |
GROSS PROFIT | ¥ 73,995 | ¥ 66,002 | ¥ 69,659 |
PRC CONTRIBUTION AND PROFIT 115
PRC CONTRIBUTION AND PROFIT APPROPRIATION (Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Contribution and Profit Appropriation [Line Items] | |||
Total contribution for employee benefits | ¥ 29,029 | ¥ 28,085 | ¥ 31,896 |
CHINA [Member] | Minimum [Member] | |||
Contribution and Profit Appropriation [Line Items] | |||
Percentage appropriation to statutory reserve required for education development reserve | 25.00% | ||
Subsidiaries [Member] | CHINA [Member] | Minimum [Member] | |||
Contribution and Profit Appropriation [Line Items] | |||
Percentage appropriation to general reserve fund required | 10.00% | ||
Subsidiaries [Member] | CHINA [Member] | Maximum [Member] | |||
Contribution and Profit Appropriation [Line Items] | |||
Reserve level threshold for mandatory transfer requirement (as a percent) | 50.00% | ||
Variable Interest Entity Primary Beneficiary [Member] | CHINA [Member] | Minimum [Member] | |||
Contribution and Profit Appropriation [Line Items] | |||
Percentage appropriation to statutory surplus reserve required | 10.00% | ||
Percentage appropriation to statutory public welfare fund required | 5.00% | ||
Variable Interest Entity Primary Beneficiary [Member] | CHINA [Member] | Maximum [Member] | |||
Contribution and Profit Appropriation [Line Items] | |||
Reserve level threshold for mandatory transfer requirement (as a percent) | 50.00% | ||
Percentage appropriation to statutory public welfare fund required | 10.00% |
PRC CONTRIBUTION AND PROFIT 116
PRC CONTRIBUTION AND PROFIT APPROPRIATION (Schedule of Appropriations to General Reserve Fund, Statutory Surplus Reserve and Education Development Reserve) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Appropriation to statutory reserve | |||
General and statutory surplus reserve | ¥ 59,309 | ¥ 59,307 | |
Education development reserve | 21,698 | 21,698 | |
Total | ¥ 81,007 | $ 11,667 | ¥ 81,005 |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of Transactions with Related Parties) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Short-term borrowings | ¥ 0 | ¥ 2,300 | $ 0 | |||
Loan to/(collection from) A, a member of management team of the Company [Member] | ||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Interest rate (as a percent) | 10.00% | |||||
Executive Principal of Ambow Research Center [Member] | ||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Interest bearing borrowings | ¥ 2,000 | |||||
Noninterest bearing borrowings | $ | $ 1,960 | |||||
Interest rate (as a percent) | 24.00% | 24.00% | ||||
Borrowings from (repayments) to related party | [1] | ¥ (3,960) | ||||
Repayments of borrowings | 3,960 | |||||
Member Of Manangement Team One [Member] | ||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Loan to (collection) from related party | [2] | (1,670) | 2,770 | |||
Member Of Manangement Team Two [Member] | ||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Borrowings from (repayments) to related party | [3] | ¥ (1,350) | 500 | |||
Member Of Management Team of Century Zhisheng [Member] | ||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Interest rate (as a percent) | 10.00% | 10.00% | ||||
Loan to (collection) from related party | [2] | (24) | ¥ 199 | 10 | ||
Member Of Management Team of Century Zhisheng [Member] | Borrowing [Member] | ||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Transactions amount | 500 | |||||
Suzhou Chengpingheng Software Engineering Co., Ltd , an entity controlled by a member of manangement team of Century Zhisheng [Member] | ||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Transactions amount | [4] | 138 | ||||
Member Of Management Team Of Beijing SIWA Century Zhisheng Education Technology Co., Ltds [Member] | ||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Transactions amount | [3] | 1,089 | 3,143 | |||
Shandong Shichuang Software Engineering Co., Ltd., an entity controlled by Executive Principal of Ambow Research Center [Member] | ||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Short-term borrowings | [4] | 3,430 | ||||
B a Member Of Manangement Team [Member] | ||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||
Transactions amount | [2] | ¥ 400 | ||||
[1] | Due to the shortage of working capital, the Company borrowed funds from one management personnel. The borrowing of RMB 2,000 from the management personnel was with a maturity date on February 7, 2014 and noninterest bearing; RMB 1,960 was with a maturity date on December 8, 2013 and bearing interest at 24% per annum. The borrowings of RMB 3,960 were repaid to the management personnel in the year ended December 31, 2015. | |||||
[2] | The loans were to management for operation purpose. | |||||
[3] | The borrowings were made from management for operation purpose. The borrowings of RMB 3,143 and 1,089 from a member of management team of Century Zhisheng in 2014 and 2015 were noninterest bearing. The borrowings of RMB 500 from A, a member of management team of the Company in year 2014 were bearing interest at 10% per annum, and fully repaid in 2015. | |||||
[4] | The loans to and/or borrowings from entities controlled by of management were made for operation purpose without interest bearing and maturity date. |
RELATED PARTY TRANSACTIONS (118
RELATED PARTY TRANSACTIONS (Schedule of Balances with Related Parties) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | ¥ 1,823 | ¥ 1,847 | |
Amounts due to related parties | 7,662 | 7,662 | |
A a Member Of Manangement Team [Member] | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | [1],[2] | 1,100 | 1,100 |
Amounts due to related parties | [1],[2] | ||
Member Of Management Team Of Beijing SIWA Century Zhisheng Education Technology Co., Ltd [Member] | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | [2] | 185 | 209 |
Amounts due to related parties | [2] | 4,232 | 4,232 |
Suzhou Chengpingheng Software Engineering Co., Ltd , an entity controlled by a member of manangement team of Century Zhisheng [Member] | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | [3] | 138 | 138 |
Amounts due to related parties | [3] | ||
Shandong Shichuang Software Engineering Co., Ltd., an entity controlled by Executive Principal of Ambow Research Center [Member] | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | [3] | 0 | 0 |
Amounts due to related parties | [3] | 3,430 | 3,430 |
B a Member Of Manangement Team [Member] | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | [2] | 400 | 400 |
Amounts due to related parties | [2] | ||
[1] | The borrowings were made from management for operation purpose. The borrowings of RMB 3,143 and 1,089 from a member of management team of Century Zhisheng in 2014 and 2015 were noninterest bearing. The borrowings of RMB 500 from A, a member of management team of the Company in year 2014 were bearing interest at 10% per annum, and fully repaid in 2015. | ||
[2] | The loans were to management for operation purpose. | ||
[3] | The loans to and/or borrowings from entities controlled by of management were made for operation purpose without interest bearing and maturity date. |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Mar. 05, 2015shares | Sep. 05, 2014USD ($)shares | Aug. 31, 2014USD ($)shares | May 13, 2014shares | Jun. 03, 2013CNY (¥) | Jun. 03, 2013USD ($) | Oct. 26, 2011 | Aug. 31, 2010shares | Jan. 25, 2012CNY (¥)shares | Jan. 25, 2012USD ($)shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2011CNY (¥) | Dec. 31, 2011USD ($) |
Senior Management [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Total consideration | $ | $ 4,257 | |||||||||||||||||
Fair value of ordinary shares | $ | $ 19,678 | |||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 3.465 | |||||||||||||||||
Difference between the fair value of the consideration and ordinary shares | ¥ 94,360 | $ 15,421 | ||||||||||||||||
CEHIL [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 4,457,854 | 5,678,963 | 32,426,090 | |||||||||||||||
Total purchase consideration of shares issued and sold | $ | $ 5,779 | |||||||||||||||||
Number of shares under right to repurchase from New Flourish If the Company fails to file the annual report of Form 20-F for the year 2014 on or before the date in compliance with the Security Act | 433,333 | |||||||||||||||||
Conversion of convertible loans to ordinary shares | $ | $ 31,692 | |||||||||||||||||
Difference between the fair value of the consideration and ordinary shares | ¥ | ¥ 94,360 | |||||||||||||||||
New Flourish Holdings Limited [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 5,678,963 | |||||||||||||||||
Class A Shares [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Total purchase consideration of shares issued and sold | ¥ 128,035 | $ 21,000 | ||||||||||||||||
Class A Shares [Member] | CEHIL [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 4,457,854 | 16,716,954 | ||||||||||||||||
Class A Shares [Member] | New Flourish Holdings Limited [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 5,678,963 | |||||||||||||||||
Class B Shares [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Conversion of convertible loans to ordinary shares (in shares) | 2,691,863 | |||||||||||||||||
Dr Jin Huang [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Minimum percentage of interest in voting power held by related party | 10.00% | |||||||||||||||||
Campus [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Aggregate consideration paid for shares purchased by related party | ¥ 311,505 | $ 50,000 | ||||||||||||||||
Fair value of the Participation Agreement to be expensed | ¥ 215,274 | $ 34,554 | ||||||||||||||||
Share-based compensation | ¥ 44,686 | $ 7,222 | ¥ 54,311 | $ 8,876 | ||||||||||||||
Campus [Member] | Class A Shares [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Maximum shares agreed to be purchased by related party | $ | $ 50,000 | |||||||||||||||||
Shares charged in favor of Spin-Rich to secure campus' obligations under the Participation Agreement | 60,606 | 60,606 | ||||||||||||||||
Shares purchased by related party | 398,153 | 398,153 | ||||||||||||||||
Campus [Member] | Class B Shares [Member] | ||||||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | ||||||||||||||||||
Shares charged by Spin-Rich in favor of campus to secure campus' agreed-upon minimum return on its investment under the Participation Agreement | 202,592 | 202,592 |
DISCONTINUED OPERATIONS (Narrat
DISCONTINUED OPERATIONS (Narrative) (Details) - CNY (¥) ¥ in Thousands | Nov. 10, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Discontinued operations [Line Items] | |||||
Receivables resulting from disposals | [1] | ¥ 14,000 | ¥ 14,000 | ||
Jinghan Group [Member] | |||||
Discontinued operations [Line Items] | |||||
Cash consideration | 500,000 | ||||
Cash payment received | ¥ 18,195 | ||||
Total consideration | ¥ 500,000 | ||||
Receivables resulting from disposals | 122,822 | ||||
Income on sale of discontinued operation, net of income tax | [2] | 343,912 | |||
Payables arising from disposal of subsidiaries | 25,959 | ||||
Bad debt provision | ¥ 96,863 | ¥ 96,863 | |||
[1] | In the fourth quarter of 2011, the Group decided to concentrate its resources and focus on the Group's core businesses. On December 2, 2011, the Company sold Xi’an Dragon Continuation School, Shandong North Resource Information Technology Co., Ltd. and Jinan Prosperous Resource Technology Co., Ltd., Guangzhou Modern Olympic Training School, and Tianjin Yimatong Technology Development Co., Ltd. to Beijing Tongshengle Investment Co., Ltd., ("Tongshengle") for cash consideration of RMB 35,000, and RMB 21,000 of which has been received by December 31, 2012. A bad debt allowance of RMB 200 was provided in 2012. In 2015, the Group provided an additional allowance of RMB 5,300 by reducing the net receivables, after netting of payable balance, from Tongshengle to zero after assessing the collectability. | ||||
[2] | Foreign currency translation adjustment included in the loss on sale of discontinued operation is RMB 9,084 for the year ended December 31, 2015. |
DISCONTINUED OPERATIONS (Schedu
DISCONTINUED OPERATIONS (Schedule of Revenues and Income (Loss) from Discontinued Operations) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | ||
Revenues and income (loss) from discontinued operations | |||||
Income (loss) from and on sale of discontinued operation, net of income tax | ¥ 0 | $ 0 | ¥ 340,798 | ¥ (57,764) | |
Jinghan Group [Member] | |||||
Revenues and income (loss) from discontinued operations | |||||
Revenues | 171,938 | 679,295 | |||
Impairment loss | |||||
Loss from discontinued operation | (4,499) | (73,499) | |||
Income tax benefit | 1,385 | 15,735 | |||
Loss from discontinued operation, net of income tax | (3,114) | (57,764) | |||
Income on sale of discontinued operation, net of income tax | [1] | 343,912 | |||
Income (loss) from and on sale of discontinued operation, net of income tax | 340,798 | ¥ (57,764) | |||
Foreign currency translation adjustment | ¥ 9,084 | ||||
[1] | Foreign currency translation adjustment included in the loss on sale of discontinued operation is RMB 9,084 for the year ended December 31, 2015. |
GAIN ON DISPOSAL OF SUBSIDIARY
GAIN ON DISPOSAL OF SUBSIDIARY (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Sep. 30, 2014CNY (¥) | |
Schedule of Equity Method Investments [Line Items] | |||||
Gain on disposal | ¥ 0 | $ 0 | ¥ 0 | ¥ 7,403 | |
Zhongcheng [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of equity interest transferred | 70.00% | ||||
Remaining ownership interest (as a percent) | 30.00% | ||||
Liabilities assumed by third party in exchange of equity | ¥ 9,090 | ||||
Fair value of retained noncontrolling interest in Zhongcheng | ¥ 693 | ||||
Carrying amount of net liabilities after the waiver of the net intercompany balances | 6,710 | ||||
Gain on disposal | ¥ 7,403 | ||||
Impairment loss | ¥ 693 | ||||
Zhongcheng [Member] | Ambow Shanghai [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as a percent) | 100.00% |
DECONSOLIDATION AND RECONSOL123
DECONSOLIDATION AND RECONSOLIDATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013Item | |
DECONSOLIDATION AND RECONSOLIDATION [Line Items] | |||||
Number of deconsolidated schools | Item | 3 | ||||
Income on reconsolidation of previously deconsolidated entities | ¥ 0 | $ 0 | ¥ 14,127 | ¥ 0 | |
Reverse of bad debt allowance of de-consolidated entities | 49,472 | ||||
Offsetting of the net liabilities of de-consolidated entities | 38,696 | ||||
Recognition of the non-controlling interest | ¥ 3,351 | ||||
Jilin Tutoring [Member] | |||||
DECONSOLIDATION AND RECONSOLIDATION [Line Items] | |||||
Loss (gain) on deconsolidation of subsidiaries | 29,462 | ||||
Amount due from deconsolidated subsidiaries | ¥ 4,750 |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥)Item | Dec. 31, 2015CNY (¥)Item | Dec. 31, 2014CNY (¥)Item | Dec. 31, 2013 | Jan. 02, 2013 | |
NON-CONTROLLING INTERESTS [Line Items] | |||||
Capital injection from minority shareholders | ¥ 796 | ¥ 163 | |||
Guangzhou ZS Career Enhancement [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 5.00% | ||||
Percentage of economic interest derecognized | 5.00% | ||||
Percentage of economic interest rerecognized | 0.00% | ||||
Shenyang K-12 [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 10.00% | ||||
Taishidian Holding [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 30.00% | ||||
Percentage of economic interest derecognized | 30.00% | ||||
Ambow Jingxue [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 36.00% | 36.00% | |||
Genesis Career Enhancement [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 23.00% | ||||
Shanghai Tongguo Education Technology Co [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 31.00% | ||||
Non-controlling interest acquired | ¥ 270 | ||||
Number of individual shareholders | Item | 3 | 3 | |||
Capital injection from minority shareholders | ¥ 163 | ||||
Suzhou Ambow Jiaxue Education and Investment Co., Ltd [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 40.00% | ||||
Non-controlling interest acquired | ¥ 400 | ||||
Number of individual shareholders | Item | 1 | ||||
Number of corporate shareholders | Item | 1 | ||||
Shanghai Huanyu Liren Ducation Training Co., Ltd [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 40.00% | ||||
Non-controlling interest acquired | ¥ 396 | ||||
Number of individual shareholders | Item | 1 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Information about Inputs Into the Fair Value Measurements of the Assets and Liabilities that the Group Makes on a Recurring Basis) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | |||
Short term investments, available for sale | ¥ 174,811 | ||
Recurring basis [Member] | |||
Assets: | |||
Short term investments, available for sale | 174,811 | ¥ 103,602 | |
IRCF | |||
Recurring basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets: | |||
Short term investments, available for sale | 174,811 | 103,602 | |
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets: | |||
Short term investments, available for sale | |||
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets: | |||
Short term investments, available for sale |
FAIR VALUE MEASUREMENTS (Sch126
FAIR VALUE MEASUREMENTS (Schedule of Quantitative Information about Level 3 Fair Value Measurements of Property and Equipment, Other Non-current Assets and Intangible Assets) (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | |
Unobservable inputs | |||
Terminal growth rate (as a percent) | 3.00% | ||
Minimum [Member] | |||
Unobservable inputs | |||
Discount rate (as a percent) | 16.00% | ||
Maximum [Member] | |||
Unobservable inputs | |||
Discount rate (as a percent) | 17.00% | ||
Nonrecurring [Member] | Level 3 [Member] | Relief-from-royalty method [Member] | |||
FAIR VALUE MEASUREMENTS [Line Items] | |||
Intangible assets | ¥ 115,941 | ¥ 61,354 | |
Unobservable inputs | |||
Terminal growth rate (as a percent) | 3.00% | 3.00% | |
Nonrecurring [Member] | Level 3 [Member] | Relief-from-royalty method [Member] | Minimum [Member] | |||
Unobservable inputs | |||
Royalty rate (as a percent) | 0.00% | 1.00% | |
Discount rate (as a percent) | 16.00% | 16.00% | |
Nonrecurring [Member] | Level 3 [Member] | Relief-from-royalty method [Member] | Maximum [Member] | |||
Unobservable inputs | |||
Royalty rate (as a percent) | 9.00% | 7.00% | |
Discount rate (as a percent) | 22.00% | 22.00% |
CONCENTRATIONS (Details)
CONCENTRATIONS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2016USD ($) | |
CONCENTRATIONS [Line Items] | |||
Accounts receivable | ¥ 13,576 | ¥ 11,278 | $ 1,955 |
Prepaid and other current assets | 153,867 | 156,104 | 22,161 |
Other non-current assets, net | ¥ 6,357 | ¥ 5,097 | $ 916 |
Accounts receivable [Member] | Credit risk [Member] | Company A [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 10.00% | 13.00% | |
Accounts receivable | ¥ 1,313 | ¥ 1,483 | |
Prepaid and other current assets [Member] | Credit risk [Member] | Company B [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 32.00% | 32.00% | |
Prepaid and other current assets | ¥ 49,800 | ¥ 49,800 | |
Prepaid and other current assets [Member] | Credit risk [Member] | Company C [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 23.00% | 22.00% | |
Prepaid and other current assets | ¥ 35,000 | ¥ 35,000 | |
Prepaid and other current assets [Member] | Credit risk [Member] | Company D [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 17.00% | 17.00% | |
Prepaid and other current assets | ¥ 25,959 | ¥ 25,959 | |
Other non-current assets [Member] | Credit risk [Member] | Company E [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 25.00% | 36.00% | |
Other non-current assets, net | ¥ 1,570 | ¥ 1,858 | |
Consideration receivable [Member] | Credit risk [Member] | Company F [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 100.00% | 100.00% | |
Consideration receivable | ¥ 8,500 | ¥ 8,500 |
ADDITIONAL INFORMATION - CON128
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS (Schedule of Information of Consolidating Balance Sheets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | ||||||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | ¥ 1,351,757 | ¥ 1,340,756 | ||||
Current assets: | ||||||
Cash and cash equivalents | 196,900 | $ 28,359 | 246,303 | ¥ 180,285 | ||
Amounts due from related parties | 1,823 | 263 | 1,847 | |||
Prepaid expenses and other current assets | 153,867 | 22,161 | 156,104 | |||
Total current assets | 616,527 | 88,797 | 682,624 | |||
Non-current assets: | ||||||
Intangible assets, net | 94,708 | 103,394 | ||||
Total non-current assets | 359,668 | 51,804 | 325,301 | |||
Total assets | 976,195 | 140,601 | 1,007,925 | |||
Current liabilities: | ||||||
Amounts due to related parties | 7,662 | 1,104 | 7,662 | |||
Accrued and other liabilities | 372,821 | 53,697 | 367,357 | |||
Total current liabilities | 838,002 | 120,697 | 839,381 | |||
Total liabilities | 861,174 | 124,034 | 865,102 | |||
SHAREHOLDERS' EQUITY | ||||||
Ordinary shares (US$ 0.003 par value; 40,000,000 and 40,000,000 shares authorized, 38,265,177 and 38,699,095 shares issued and outstanding as of December 31, 2015 and 2016, respectively) | 726 | 105 | 717 | |||
Additional paid-in capital | 3,453,227 | 497,368 | 3,445,408 | |||
Accumulated other comprehensive income | 5,705 | 822 | 5,113 | |||
Total shareholders’ equity | 116,516 | 16,782 | 143,796 | |||
Total liabilities and shareholders’ equity | 976,195 | 140,601 | 1,007,925 | |||
Parent Company [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 1,467 | 211 | 8,658 | $ 1,246 | ¥ 166 | ¥ 202 |
Amounts due from related parties | 183,676 | 26,456 | 201,341 | |||
Prepaid expenses and other current assets | 341 | 49 | 160 | |||
Total current assets | 185,484 | 26,716 | 210,159 | |||
Non-current assets: | ||||||
Intangible assets, net | 8 | 1 | 16 | |||
Investment in subsidiaries | ||||||
Total non-current assets | 8 | 1 | 16 | |||
Total assets | 185,492 | 26,717 | 210,175 | |||
Current liabilities: | ||||||
Amounts due to related parties | 19,605 | 2,824 | 14,839 | |||
Accrued and other liabilities | 49,371 | 7,111 | 51,540 | |||
Total current liabilities | 68,976 | 9,935 | 66,379 | |||
Total non-current liabilities | ||||||
Total liabilities | 68,976 | 9,935 | 66,379 | |||
SHAREHOLDERS' EQUITY | ||||||
Ordinary shares (US$ 0.003 par value; 40,000,000 and 40,000,000 shares authorized, 38,265,177 and 38,699,095 shares issued and outstanding as of December 31, 2015 and 2016, respectively) | 726 | 105 | 717 | |||
Additional paid-in capital | 3,453,227 | 497,368 | 3,445,408 | |||
Accumulated deficit | (3,343,142) | (481,513) | (3,307,442) | |||
Accumulated other comprehensive income | 5,705 | 822 | 5,113 | |||
Total shareholders’ equity | 116,516 | 16,782 | 143,796 | |||
Total liabilities and shareholders’ equity | ¥ 185,492 | $ 26,717 | ¥ 210,175 |
ADDITIONAL INFORMATION - CON129
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS (Schedule of Information of Consolidating Balance Sheets) (Parenthetical) (Details) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 31, 2010 |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |||
Ordinary shares, par value (in dollars per share) | $ 0.003 | $ 0.003 | $ 0.003 |
Ordinary shares, shares authorized | 40,000,000 | 40,000,000 | |
Ordinary shares, shares issued | 38,699,095 | 38,265,177 | |
Ordinary shares, shares outstanding | 38,699,095 | 38,265,177 | |
Parent Company [Member] | |||
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |||
Ordinary shares, par value (in dollars per share) | $ 0.003 | $ 0.003 | |
Ordinary shares, shares authorized | 40,000,000 | 40,000,000 | |
Ordinary shares, shares issued | 38,699,095 | 38,265,177 | |
Ordinary shares, shares outstanding | 38,699,095 | 38,265,177 |
ADDITIONAL INFORMATION - CON130
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS (Schedule of Information of Consolidating Statement of Operations) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
NET REVENUES | ||||
- Educational program and services | ¥ 412,016 | $ 59,343 | ¥ 395,715 | ¥ 411,998 |
Cost of revenues | ||||
- Educational program and services | (238,742) | (34,386) | (245,945) | (274,036) |
GROSS PROFIT | 173,274 | 24,957 | 149,770 | 137,962 |
Operating expenses: | ||||
Selling and marketing | (41,818) | (6,023) | (55,511) | (80,377) |
General and administrative | (145,513) | (20,958) | (280,634) | (508,544) |
Research and development | (7,572) | (1,091) | (7,308) | (12,259) |
Total operating expenses | (217,305) | (31,299) | (505,804) | (893,757) |
OPERATING LOSS | (44,031) | (6,342) | (356,034) | (755,795) |
OTHER EXPENSE | ||||
Interest income (expense) net | 5,941 | 856 | (51,015) | (121,794) |
Loss from extinguishment of debt | 0 | 0 | 0 | (143,901) |
Foreign exchange losses, net | 84 | 12 | (183) | (580) |
Other income (expense), net | 2,570 | 370 | 486 | (8,989) |
Income tax | (5,911) | (851) | 118,963 | (1,135) |
NET (LOSS) INCOME | (35,700) | (5,141) | 63,739 | (1,076,813) |
Parent Company [Member] | ||||
NET REVENUES | ||||
- Educational program and services | ||||
Cost of revenues | ||||
- Educational program and services | ||||
GROSS PROFIT | ||||
Operating expenses: | ||||
Selling and marketing | (410) | (348) | ||
General and administrative | (18,854) | (2,716) | (79,562) | (229,814) |
Research and development | (660) | (144) | ||
Total operating expenses | (18,854) | (2,716) | (80,632) | (230,306) |
OPERATING LOSS | (18,854) | (2,716) | (80,632) | (230,306) |
Share of income (loss) from subsidiaries | (23,274) | (3,352) | 201,051 | (609,711) |
OTHER EXPENSE | ||||
Interest income (expense) net | 1 | (56,549) | (91,064) | |
Loss from extinguishment of debt | (143,901) | |||
Foreign exchange losses, net | (131) | (459) | ||
Other income (expense), net | 6,427 | 927 | (1,372) | |
Income tax | ||||
NET (LOSS) INCOME | ¥ (35,700) | $ (5,141) | ¥ 63,739 | ¥ (1,076,813) |
ADDITIONAL INFORMATION - CON131
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS (Schedule of Information of Consolidating Statement of Cash Flows) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Statements of Cash Flows [Line Items] | ||||
Cash flows from operating activities | ¥ 17,535 | $ 2,524 | ¥ (40,119) | ¥ (160,367) |
Cash flows from investing activities | (65,218) | (9,393) | 58,214 | 110,221 |
Cash flows from financing activities | (1,504) | (216) | 12,830 | 87,003 |
Effects of exchange rate changes on cash and cash equivalents | 84 | 12 | (2,968) | 404 |
Net change in cash and cash equivalents | (49,103) | (7,073) | 66,020 | 81,131 |
Cash and cash equivalents at beginning of year | 246,303 | 180,285 | ||
Cash and cash equivalents at end of year | 196,900 | 28,359 | 246,303 | 180,285 |
Supplemental disclosure of non-cash investing and financing activities | ||||
Shares surrendered by SummitView | 67,309 | |||
Conversion of convertible loan to ordinary shares and waiver of related accrued interest expenses | 70,146 | 226,298 | ||
Receipt of convertible loan by settlement of debt | 80,000 | |||
Parent Company [Member] | ||||
Statements of Cash Flows [Line Items] | ||||
Cash flows from operating activities | (6,348) | (914) | (40,384) | (109,368) |
Cash flows from investing activities | ||||
Cash flows from financing activities | (843) | (121) | 48,876 | 109,330 |
Effects of exchange rate changes on cash and cash equivalents | 2 | |||
Net change in cash and cash equivalents | (7,191) | (1,035) | 8,492 | (36) |
Cash and cash equivalents at beginning of year | 8,658 | 1,246 | 166 | 202 |
Cash and cash equivalents at end of year | 1,467 | 211 | 8,658 | 166 |
Supplemental disclosure of non-cash investing and financing activities | ||||
Shares surrendered by SummitView | 67,309 | |||
Conversion of convertible loan to ordinary shares and waiver of related accrued interest expenses | 70,146 | 226,298 | ||
Receipt of convertible loan by settlement of debt | ¥ 80,000 |