Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
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, 2017 |
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 | 2,017 |
Document Fiscal Period Focus | FY |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 34,206,939 |
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, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 195,303 | $ 30,018 | ¥ 196,900 |
Restricted cash | 2,350 | 361 | 2,350 |
Short term investments, available for sale | 128,042 | 19,680 | 174,811 |
Short term investments, held to maturity | 93,000 | 14,294 | 64,700 |
Accounts receivable, net | 24,511 | 3,767 | 13,576 |
Amounts due from related parties | 0 | 0 | 1,823 |
Prepaid and other current assets, net | 129,517 | 19,906 | 153,867 |
Consideration receivable, net | 0 | 0 | 8,500 |
Total current assets | 572,723 | 88,026 | 616,527 |
Non-current assets: | |||
Property and equipment, net | 168,423 | 25,886 | 88,007 |
Land use rights, net | 1,848 | 284 | 1,892 |
Net Carrying Amount | 96,769 | 14,873 | 94,708 |
Goodwill | 73,166 | 11,245 | 67,954 |
Prepayment for acquisition of property | 0 | 0 | 71,024 |
Deferred tax assets, net | 8,222 | 1,264 | 6,554 |
Long-term loan receivables | 42,677 | 6,559 | 0 |
Other non-current assets, net | 13,592 | 2,089 | 6,357 |
Total non-current assets | 404,697 | 62,200 | 336,496 |
Total assets | 977,420 | 150,226 | 953,023 |
Current liabilities: | |||
Deferred revenue (including consolidated VIE amount without recourse to the Company of RMB 99,298 and RMB 109,878 as of December 31, 2016 and 2017, respectively) | 114,396 | 17,582 | 109,484 |
Accounts payable (including consolidated VIE amount without recourse to the Company of RMB 16,009 and RMB 19,809 as of December 31, 2016 and 2017, respectively) | 23,414 | 3,598 | 26,738 |
Accrued and other liabilities (including consolidated VIE amount without recourse to the Company of RMB 200,230 and RMB 219,009 as of December 31, 2016 and 2017, respectively) | 418,998 | 64,399 | 372,821 |
Income taxes payable (including consolidated VIE amount without recourse to the Company of RMB 198,176 and RMB 201,810 as of December 31, 2016 and 2017, respectively) | 202,314 | 31,095 | 321,297 |
Amounts due to related parties (including consolidated VIE amount without recourse to the Company of RMB 7,662 and RMB 3,430 as of December 31, 2016 and 2017, respectively) | 3,430 | 527 | 7,662 |
Total current liabilities | 762,552 | 117,201 | 838,002 |
Non-current liabilities: | |||
Long-term borrowings from third party (including consolidated VIE amount without recourse to the Company of RMB nil and RMB nil as of December 31, 2016 and 2017, respectively) | 39,205 | 6,026 | 0 |
Consideration payable for acquisitions (including consolidated VIE amount without recourse to the Company of RMB nil and RMB nil as of December 31, 2016 and 2017, respectively) | 6,766 | 1,040 | 0 |
Other non-current liabilities (including consolidated VIE amount without recourse to the Company of RMB nil and RMB nil as of December 31, 2016 and 2017, respectively) | 2,938 | 452 | 0 |
Total non-current liabilities | 48,909 | 7,518 | 0 |
Total liabilities | 811,461 | 124,719 | 838,002 |
Commitments and contingencies | |||
EQUITY | |||
Preferred shares (US$ 0.003 par value; 1,666,667 shares authorized, nil issued and outstanding as of December 31, 2016 and 2017) | 0 | 0 | 0 |
Additional paid-in capital | 3,456,307 | 531,225 | 3,453,227 |
Statutory reserve | 20,036 | 3,079 | 81,007 |
Accumulated deficit | (3,316,715) | (509,770) | (3,424,149) |
Accumulated other comprehensive income | 6,876 | 1,056 | 5,705 |
Total Ambow Education Holding Ltd.’s equity | 167,234 | 25,702 | 116,516 |
Non-controlling interests | (1,275) | (195) | (1,495) |
Total equity | 165,959 | 25,507 | 115,021 |
Total liabilities and equity | 977,420 | 150,226 | 953,023 |
Common Class A [Member] | |||
EQUITY | |||
Ordinary shares | 640 | 98 | 636 |
Total equity | 640 | 636 | |
Common Class C [Member] | |||
EQUITY | |||
Ordinary shares | 90 | $ 14 | 90 |
Total equity | ¥ 90 | ¥ 90 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares |
Deferred revenue | ¥ 114,396 | $ 17,582 | ¥ 109,484 | |
Accounts payable | 23,414 | 3,598 | 26,738 | |
Accrued and other liabilities | 418,998 | 64,399 | 372,821 | |
Income taxes payable | 202,314 | 31,095 | 321,297 | |
Amounts due to related parties | 3,430 | 527 | 7,662 | |
Deferred tax liabilities | ¥ | 23,183 | 23,172 | ||
Long-term borrowings | 39,205 | 6,026 | 0 | |
Consideration payable for acquisitions | 6,766 | 1,040 | 0 | |
Other non-current liabilities | ¥ 2,938 | $ 452 | ¥ 0 | |
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 | 1,666,667 |
Preferred shares, shares issued | shares | 0 | 0 | 0 | 0 |
Preferred shares, shares outstanding | shares | 0 | 0 | 0 | 0 |
Common Class A [Member] | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.003 | $ 0.003 | ||
Ordinary shares, shares authorized | shares | 66,666,667 | 66,666,667 | 66,666,667 | 66,666,667 |
Ordinary shares, shares issued | shares | 34,206,939 | 34,206,939 | 33,990,680 | 33,990,680 |
Ordinary shares, shares outstanding | shares | 34,206,939 | 34,206,939 | 33,990,680 | 33,990,680 |
Common Class C [Member] | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.003 | $ 0.003 | ||
Ordinary shares, shares authorized | shares | 8,333,333 | 8,333,333 | 8,333,333 | 8,333,333 |
Ordinary shares, shares issued | shares | 4,708,415 | 4,708,415 | 4,708,415 | 4,708,415 |
Ordinary shares, shares outstanding | shares | 4,708,415 | 4,708,415 | 4,708,415 | 4,708,415 |
Variable Interest Entity Primary Beneficiary [Member] | ||||
Deferred revenue | ¥ | ¥ 109,878 | ¥ 99,298 | ||
Accounts payable | ¥ | 19,809 | 16,009 | ||
Accrued and other liabilities | ¥ | 219,009 | 200,230 | ||
Income taxes payable | ¥ | 201,810 | 198,176 | ||
Amounts due to related parties | ¥ | 3,430 | 7,662 | ||
Deferred tax liabilities | ¥ | 23,183 | 23,172 | ||
Long-term borrowings | 0 | 0 | ||
Consideration payable for acquisitions | ¥ | 0 | 0 | ||
Other non-current liabilities | ¥ | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | ||
NET REVENUES | |||||
- Educational program and services | ¥ 432,754 | $ 66,513 | ¥ 412,016 | ¥ 395,715 | |
- Intellectualized operational services | 11,170 | 1,717 | 0 | 0 | |
Total net revenues | 443,924 | 68,230 | 412,016 | 395,715 | |
COST OF REVENUES | |||||
- Educational program and services | (249,400) | (38,332) | (238,742) | (245,945) | |
- Intellectualized operational services | (6,995) | (1,075) | 0 | 0 | |
Total cost of revenues | (256,395) | (39,407) | (238,742) | (245,945) | |
GROSS PROFIT | 187,529 | 28,823 | 173,274 | 149,770 | |
OPERATING EXPENSES | |||||
Selling and marketing | (36,710) | (5,642) | (41,818) | (55,511) | |
General and administrative | (142,252) | (21,864) | (145,513) | (280,634) | |
Research and development | (6,262) | (962) | (7,572) | (7,308) | |
Impairment loss | 0 | 0 | (22,402) | (162,351) | |
Total operating expenses | (185,224) | (28,468) | (217,305) | (505,804) | |
OPERATING (LOSS) INCOME | 2,305 | 355 | (44,031) | (356,034) | |
OTHER INCOME (EXPENSE) | |||||
Interest (expense) income, net | 5,191 | 798 | 5,941 | (51,015) | |
Foreign exchange (loss) gain, net | (522) | (80) | 84 | (183) | |
Other income, net | 1,652 | 254 | 2,570 | 486 | |
Income on reconsolidation of previously deconsolidated entities | 0 | 0 | 0 | 14,127 | |
Gain on disposal of subsidiaries | 38,145 | 5,863 | 0 | 0 | |
(Loss) Gain on sale of investment available for sale | 8,768 | 1,348 | 4,329 | (2,786) | |
Total other (expenses) income | 53,234 | 8,183 | 12,924 | (39,371) | |
(LOSS) INCOME BEFORE INCOME TAX, NON-CONTROLLING INTERESTS, AND DISCONTINUED OPERATIONS | 55,539 | 8,538 | (31,107) | (395,405) | |
Income tax benefit (expense) | (9,614) | (1,478) | (5,911) | 118,963 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | 45,925 | 7,060 | (37,018) | (276,442) | |
Income on and from sale of discontinued operations, net of income tax | 0 | 0 | 0 | 340,798 | |
NET INCOME (LOSS) | 45,925 | 7,060 | (37,018) | 64,356 | |
Less: Net income (loss) attributable to non-controlling interests from continuing operations | (538) | (83) | (1,318) | 606 | |
Less: Net income attributable to non-controlling interests from discontinued operations | 0 | 0 | 0 | 11 | |
NET INCOME (LOSS) ATTRIBUTABLE TO AMBOW EDUCATION HOLDING LTD. | 46,463 | 7,143 | (35,700) | 63,739 | |
NET INCOME (LOSS) | 45,925 | 7,060 | (37,018) | 64,356 | |
OTHER COMPREHENSIVE INCOME, NET OF TAX | |||||
Foreign translation adjustments | 3,876 | 596 | (1,160) | 7,869 | |
Unrealized gains on short term investments | |||||
Unrealized holding (loss)/gains arising during period | 2,901 | 446 | 5,622 | (1,105) | |
Less: reclassification adjustment for (loss)/gains included in net income | 5,606 | 862 | 3,870 | (2,089) | |
Other comprehensive income | 1,171 | 180 | 592 | 8,853 | |
TOTAL COMPREHENSIVE INCOME (LOSS) | ¥ 47,096 | $ 7,240 | ¥ (36,426) | ¥ 73,209 | |
Net (loss) income from continuing operations per share-basic | (per share) | ¥ 1.20 | $ 0.18 | ¥ (0.93) | ¥ (7.52) | |
Net (loss) income from continuing operations per share-diluted | (per share) | 1.18 | 0.18 | (0.93) | (7.52) | |
Net income from discontinued operations per share - basic and diluted | (per share) | [1] | ¥ 0 | $ 0 | ¥ 0 | ¥ 9.25 |
Weighted average shares used in calculating basic net income (loss) per share | 38,826,800 | 38,826,800 | 38,469,234 | 36,848,816 | |
Weighted average shares used in calculating diluted net income (loss) per share | 39,303,760 | 39,303,760 | 38,469,234 | 36,848,816 | |
Share-based compensation expense included in: | |||||
Share-based compensation expense | ¥ 4,640 | $ 713 | ¥ 7,828 | ¥ 50,117 | |
Selling and Marketing Expense [Member] | |||||
Share-based compensation expense included in: | |||||
Share-based compensation expense | 0 | 0 | 0 | 457 | |
General and Administrative Expense [Member] | |||||
Share-based compensation expense included in: | |||||
Share-based compensation expense | 4,640 | 713 | 7,828 | 49,371 | |
Research and Development Expense [Member] | |||||
Share-based compensation expense included in: | |||||
Share-based compensation expense | ¥ 0 | $ 0 | ¥ 0 | ¥ 289 | |
[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 CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Common Class A [Member]CNY (¥)shares | Common Class B [Member]CNY (¥)shares | Common Class C [Member]CNY (¥)shares | Additional paid-in capital [Member]CNY (¥) | Statutory reserves [Member]CNY (¥) | Retained Earnings (Accumulated deficit) [Member]CNY (¥) | Accumulated other comprehensive income (deficit) [Member]CNY (¥) | Non-controlling Interest [Member]CNY (¥) |
Balance at Dec. 31, 2014 | ¥ (53,306) | ¥ 487 | ¥ 87 | ¥ 3,325,288 | ¥ 80,777 | ¥ (3,451,958) | ¥ (3,740) | ¥ (4,247) | ||
Balance (in shares) at Dec. 31, 2014 | shares | 27,552,058 | 2,984,775 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Conversion of Class B ordinary shares to Class A ordinary shares | ¥ 87 | ¥ (87) | ||||||||
Conversion of Class B ordinary shares to Class A ordinary shares (in shares) | shares | 2,984,775 | (2,984,775) | ||||||||
Exchange of Class A ordinary shares for Class C ordinary shares | ¥ (90) | ¥ 90 | ||||||||
Exchange of Class A ordinary shares for Class C ordinary shares (in shares) | shares | (4,708,415) | 4,708,415 | ||||||||
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 | |||||||||
Foreign currency translation adjustment | (1,215) | (1,215) | ||||||||
Appropriation to statutory reserves | 228 | (228) | ||||||||
Unrealized gain on investment, net of income taxes | 984 | 984 | ||||||||
Disposal of subsidiaries | 14,929 | 9,084 | 5,845 | |||||||
Capital injection from minority shareholders | 163 | 163 | ||||||||
Non-controlling interests from reconsolidation of previously deconsolidated entities | (3,351) | (3,351) | ||||||||
Net income (loss) | 64,356 | 63,739 | 617 | |||||||
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 | |||||||||
Balance at Dec. 31, 2015 | 142,823 | ¥ 627 | ¥ 90 | 3,445,408 | 81,005 | (3,388,447) | 5,113 | (973) | ||
Balance (in shares) at Dec. 31, 2015 | shares | 33,556,762 | 4,708,415 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
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 | 0 | ||||||||
Foreign currency translation adjustment | (1,160) | (1,160) | ||||||||
Appropriation to statutory reserves | 2 | (2) | ||||||||
Unrealized gain on investment, net of income taxes | 1,752 | 1,752 | ||||||||
Capital injection from minority shareholders | 796 | 796 | ||||||||
Net income (loss) | (37,018) | (35,700) | (1,318) | |||||||
Balance at Dec. 31, 2016 | 115,021 | ¥ 636 | ¥ 90 | 3,453,227 | 81,007 | (3,424,149) | 5,705 | (1,495) | ||
Balance (in shares) at Dec. 31, 2016 | shares | 33,990,680 | 4,708,415 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Share-based compensation | 4,640 | 4,640 | ||||||||
Issuance of ordinary shares for restricted stock award | ¥ 4 | (4) | ||||||||
Issuance of ordinary shares for restricted stock award (in shares) | shares | 216,259 | |||||||||
Foreign currency translation adjustment | 3,876 | 3,876 | ||||||||
Appropriation to statutory reserves | 202 | (202) | ||||||||
Unrealized gain on investment, net of income taxes | (2,705) | (2,705) | ||||||||
Buy-outs of non-controlling interests | (798) | (1,556) | 758 | |||||||
Disposal of subsidiaries | (61,173) | 61,173 | ||||||||
Net income (loss) | 45,925 | $ 7,060 | 46,463 | (538) | ||||||
Balance at Dec. 31, 2017 | ¥ 165,959 | $ 25,507 | ¥ 640 | ¥ 90 | ¥ 3,456,307 | ¥ 20,036 | ¥ (3,316,715) | ¥ 6,876 | ¥ (1,275) | |
Balance (in shares) at Dec. 31, 2017 | shares | 34,206,939 | 4,708,415 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Cash flows from operating activities | ||||
Net income (loss) | ¥ 45,925 | $ 7,060 | ¥ (37,018) | ¥ 64,356 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||
Depreciation and amortization | 22,673 | 3,485 | 24,997 | 45,690 |
Share-based compensation expense | 4,640 | 713 | 7,828 | 50,117 |
Bad debt provision | 5,090 | 782 | 1,727 | 42,960 |
Foreign exchange loss (gain), net | 522 | 80 | (84) | 183 |
Impairment loss | 0 | 0 | 22,402 | 162,351 |
Deferred income tax | (2,127) | (327) | 1,030 | (128,818) |
Disposal (gain) from subsidiaries | (38,145) | (5,863) | 0 | (343,912) |
Disposal loss from property and equipment | 90 | 14 | 534 | 536 |
Interest expense | 0 | 0 | 0 | 56,549 |
Loss from equity method investment | 16 | 2 | 10 | 0 |
Income on reconsolidation of previously deconsolidated entities | 0 | 0 | 0 | (14,127) |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (10,272) | (1,579) | (2,298) | (3,513) |
Prepaid and other current assets | 20,090 | 3,088 | 510 | (18,203) |
Amounts due from related parties | 1,523 | 234 | 24 | 933 |
Other non-current assets | (5,754) | (884) | (189) | (625) |
Accounts payable | 4,297 | 660 | (1,653) | (1,925) |
Accrued and other liabilities | (38,071) | (5,851) | 2,605 | 34,400 |
Income tax payable | 10,764 | 1,654 | 3,512 | 6,902 |
Deferred revenue | 3,386 | 520 | (6,402) | 8,800 |
Amounts due to related parties | (4,232) | (650) | 0 | (2,773) |
Other non-current liabilities | (205) | (32) | 0 | 0 |
Net cash (used in) provided by operating activities | 20,210 | 3,106 | 17,535 | (40,119) |
Cash flows from investing activities | ||||
Purchase of available-for-sale investments | (241,200) | (37,072) | (442,790) | (216,860) |
Proceeds from available-for-sale investments | 284,363 | 43,706 | 373,917 | 114,570 |
Purchase of held-to-maturity investments | (558,730) | (85,875) | (651,470) | (527,870) |
Maturity and proceeds from held-to-maturity investments | 530,430 | 81,526 | 738,560 | 376,080 |
Maturity of term deposits | 0 | 0 | 1,150 | 9,850 |
Prepayment for acquisition of property | 0 | 0 | (71,024) | 0 |
Purchase of property and equipment | (7,745) | (1,190) | (7,442) | (7,612) |
Prepayment for leasehold improvement | (13,325) | (2,048) | (3,854) | (4,265) |
Proceeds from disposal of property and equipment | 0 | 0 | 0 | 943 |
Purchase of intangible assets | (1,110) | (171) | (1,225) | 0 |
Purchase of subsidiaries (including cash payment in relation to prior acquisitions), net of cash acquired | (833) | (128) | 0 | (14,000) |
Prepayment for purchase of minority interest | (4,504) | (692) | 0 | 0 |
Purchase of other non-current assets | (640) | (98) | (1,040) | 0 |
Proceed from disposal of subsidiaries, net of cash balance at disposed entities | (4,309) | (662) | 0 | 287,378 |
Proceed from transferring financial assets | 0 | 0 | 0 | 40,000 |
Purchase of minority interest | (798) | (123) | 0 | 0 |
Long-term loan receivables | (42,677) | (6,559) | 0 | 0 |
Net cash provided by (used in) investing activities | (61,078) | (9,386) | (65,218) | 58,214 |
Cash flows from financing activities | ||||
Proceeds from minority shareholder capital injection | 0 | 0 | 796 | 163 |
Proceeds from issuing convertible loan | 0 | 0 | 0 | 50,000 |
Proceeds from short-term borrowings | 0 | 0 | 0 | 2,300 |
Proceeds from long-term borrowings | 39,205 | 6,026 | 0 | 0 |
Repayments of short-term borrowings | 0 | 0 | (2,300) | (39,633) |
Net cash provided by (used in) financing activities | 39,205 | 6,026 | (1,504) | 12,830 |
Changes in cash, cash equivalents and restricted cash included in assets held for sale | 0 | 0 | 0 | 38,063 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | 66 | 10 | 84 | (2,968) |
Net change in cash, cash equivalents and restricted cash | (1,597) | (244) | (49,103) | 66,020 |
Cash, cash equivalents and restricted cash at beginning of year | 199,250 | 30,624 | 248,353 | 182,333 |
Cash, cash equivalents and restricted cash at end of year | 197,653 | 30,380 | 199,250 | 248,353 |
Supplemental disclosure of cash flow information | ||||
Income tax paid | (932) | (143) | (1,639) | (1,659) |
Interest paid | 0 | 0 | (115) | (14,316) |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Conversion of convertible loan to ordinary shares and waiver of related accrued interest expenses | 0 | 0 | 0 | 70,146 |
Waiver of receivables in connection with disposal of subsidiaries | 0 | 0 | 0 | 18,195 |
Derecognition of assets other than cash of disposed subsidiary | 25,152 | 3,866 | 0 | 0 |
Derecognition of liabilities of disposed subsidiary, net of recognized amount due to the disposed subsidiary | 67,606 | 10,391 | 0 | 0 |
Contingent consideration of purchase of subsidiary | ¥ 6,766 | $ 1,040 | ¥ 0 | ¥ 0 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. 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. 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 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 16 for details. By the end of 2014, the Company conducted a series of acquisition and disposal of entities. As of December 31, 2014, 23 operational entities remained. On April 8, 2015, the Group disposed all of the 100 64 On September 4, 2015, the Company effected a 1-for-30 reverse stock split (the “Reverse Spilt”). 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 presented in notes of the consolidated financial statements have been retroactively restated to reflect the Reverse Split. On June 29, 2017, the shareholders of VIEs, which include Shanghai Ambow Education Information Consulting Co., Ltd. (“Shanghai Ambow”) and Ambow Sihua Education and Technology Co., Ltd. (“Ambow Sihua”), terminated their share pledge agreements, call options agreements, loan agreements, powers of attorney and exclusive consulting and service agreements with Beijing Ambow Online Software Co., Ltd. (“Ambow Online”); and entered into such contractual agreements with Ambow Shengying Education and Technology Co., Ltd. (“Ambow Shengying”) instead. As of June 29, 2017, the shareholders of VIE, Beijing Normal University Ambow Education Technology Co., Ltd. (“Ambow Shida”), terminated their share pledge agreements, call options agreements, loan agreements, powers of attorney and exclusive consulting and service agreements with Ambow Online; and entered into such contractual agreements with Beijing Ambow Chuangying Education and Technology Co., Ltd. (“Ambow Chuangying”) instead. Through the renewal of such contractual agreements, the Company through its subsidiaries, continued to control the operation decisions of the VIEs. Therefore, the accounts and operations of the VIEs and their subsidiaries remain unchanged in the Group’s consolidated financial statements. On August 31, 2017, the Company sold the 100 100 st 1 st The Company established IValley Co., Ltd. (“IValley”) on March 13, 2017. IValley is a VIE of Ambow Education Management (Hong Kong) Limited. The Company established IValley Beijing Technology Co. Ltd. (“IValley Beijing”) on September 15, 2017. IValley Beijing is a wholly owned subsidiary of IValley. IValley Beijing’s business is to design, purchase, modify and integrate electronic equipment and devices, and develop mobile APP, performed by engineers and IT development and operational personnel, for end users to utilize office facilities, manage resources and administrative matters. The Company established Ambow BSC Inc. on February 14, 2017. Ambow BSC Inc. is a 100 100 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. The Group launched intellectualized operational services for schools and corporate clients to optimizing their teaching and operating environment in 2017. c. Major subsidiaries and VIEs Name Date of incorporation or establishment Place of Incorporation (or establishment) /operation Principal activity Subsidiaries 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 or acquisition 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 Ambow BSC Inc. February 14, 2017 United States Investment Holding Bay State College Inc. November 20, 2017 United States Career Enhancement 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 Ambow Rongye September 8, 2015 PRC Investment Holding Ambow Zhixin October 14, 2015 PRC Investment Holding IValley March 13, 2017 Taiwan 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 IValley Beijing September 15, 2017 PRC Others 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, 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 Company has chosen to operate the intellectualized operational service business in PRC through IValley, a Taiwan VIE. According to Taiwan related regulations, any individual, organization, or other institution of the Mainland Area, or any company it invests in any third area may not engage in any investment activity in the Taiwan Area unless permitted by the competent authorities. Hong Kong is considered a third area under Taiwan law. In order to comply with those regulations, through Ambow Education Management (Hong Kong) Ltd., the Company has entered into exclusive Service Agreements with IValley, which is able to provide the intellectualized operational services through its subsidiaries. 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, Ambow Rongye, Ambow Zhixin and IValley 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. 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 and intellectualized operational service business in PRC primarily through contractual arrangements among the Group’s subsidiaries and VIEs in PRC and Taiwan. 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 Law for Promoting Private Education, 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 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 ⋅ For the VIEs, schools and centers registered and located in PRC, they are facing similar risks in related to governmental, economic and currency. For VIE registered in Taiwan, its subsidiaries locate in PRC and facing similar risks in related to governmental, economic and currency with other VIEs. 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. There are uncertainties as to whether the Company can maintain the Taiwan VIE structure in the future. If Ambow Education Management (Hong Kong) Ltd. is classified as "organization of the Mainland Area", there may be a material impact to the viability to our current corporate structure, corporate governance and business operations. The Company may potentially be subject to fines and/or administrative or criminal liabilities. The Company’s operations depend on the VIEs and their respective shareholders to honor their contractual agreements with the Company. All of these agreements between the Company and Ambow Shida, Ambow Shanghai, Ambow Sihua, Ambow Rongye and Ambow Zhixin are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC. Agreements between the Company and IValley are governed by Taiwan laws and regulations and provide for the resolution of disputes through arbitration in the Taipei. The management believes that the VIE agreements are in compliance with PRC and Taiwan laws 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, Ambow Rongye, Ambow Zhixin and IValley, 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, and PRC intellectualized operational services through IValley and its 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: As of December 31, 2016 2017 RMB RMB Total assets 750,264 706,096 Total liabilities 521,375 553,936 Years ended December 31, 2015 2016 2017 RMB RMB RMB Net revenue 385,819 409,391 426,118 Net income (loss) 370,818 (12,805) 41,636 As of December 31, 2016 2017 RMB RMB VIEs in PRC 173,772 169,178 Non-VIEs in PRC 19,425 4,178 Total RMB 193,197 173,356 |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2017 | |
GOING CONCERN [Abstract] | |
GOING CONCERN | 2. GOING CONCERN Liquidity and Capital Resources The Group reported a net loss of RMB 37,018 45,925 22,402 1,727 5,090 38,145 The Group’s principal sources of liquidity have been cash provided by operating activities. As of December 31, 2017, the Group had RMB 195,303 181,181 189,829 165,959 161,349 33,774 Management plan and actions The Group had approximately RMB 128,042 93,000 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 has established intellectualized operational services as a new revenue driving business which would also bring in operating funds, and will continue to focus on developing core cash-generating business and products, improving operation efficiency and cost reduction, 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; implementing enhanced vendor review and selection processes 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, 2017 | |
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 6.5063 As mentioned in Note 1 (a) and Note 26, Jinghan Group have been disposed in 2015 and its operations have been classified as discontinued operations for the year ended December 31, 2015. The disposal of Jinghan Group has been completed by April 8, 2015. b. 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. c. 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. d. 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. e. 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. f. 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. g. Accounts receivable Accounts receivable mainly represent the amounts due from the customers or students of the Company’s various subsidiaries and VIEs. h. 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. i. 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. j. Property and equipment Property and equipment is stated at cost less accumulated depreciation. 20 40 Motor vehicles 5 Office and computer equipment 3 10 Leasehold improvements Shorter of the remaining lease terms or estimated useful lives k. Business combinations Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Acquisition-related expenses and restructuring costs are expensed as incurred. Where the consideration in an acquisition includes contingent consideration the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and is recorded as a liability, it is subsequently remeasured at fair value at each reporting date with changes in fair value reflected in earnings. Business combinations occurred during the year ended December 31, 2017 are disclosed in Note 24. l. Intangible assets Intangible assets represent brand, software, trade name, student population, corporative agreement, customer relationship, favorable lease, and 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 Cooperative agreements 1.3 10 Favorable leases 0.8 20 Trade names Indefinite Brand Indefinit The Group has determined that trade names and brand 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 and brand. Consequently, the carrying amounts of trade names and brand 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 and brand 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. m. 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 2015 and 2016, and four reportable segments in 2017. For further details, see Note 22. n. 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 assessment instead. The quantitative goodwill impairment test 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. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. 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. o. 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 The Group’s revenue is generated from delivering educational programs and services and intellectualized operational 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; distributors whom the Group sells its services to; and corporate clients, colleges and universities who procure intellectualized operational services. 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, 2016 2017 RMB RMB Career Enhancement 34,264 21,496 K-12 60,944 77,394 Tutoring 14,276 15,506 Total 109,484 114,396 Intellectualized operational services The Group enters into sales contractual arrangements related to its intellectualized operational services. The business is to design, purchase, modify and integrate electronic equipment and devices, and develop mobile APP, performed by engineers and IT development and operational personnel, for end users to utilize office facilities, manage resources and administrative matters. For each contract, 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. If any of the aforementioned criteria are not met, the Group defers the recognition of revenue until all criteria are met. Arrangements for intellectualized operational services are on a fixed-price basis. Revenues from fixed-price contracts are recognized using the percentage-of-completion method as determined by the proportional relation of the contract costs incurred to date relative to the estimated total contract costs at completion. Estimated contract costs are reviewed monthly and revised as necessary. The Group reviews the estimated revenues and estimated costs on each project at the end of each reporting period. Any revisions to existing estimates are made when required by members of management having the relevant authority. As part of the review process, management regularly compares and analyzes the actual costs incurred and the estimate of costs to complete the projects to the total estimated costs and the total contract price. Management make revisions to existing estimates as needed based on the analysis performed and with proper level of approval in the period in which changes become known. As a policy, provisions for estimated losses on such engagements will be made during the period in which a loss becomes probable and can be reasonably estimated. q. 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. Cost of revenues for intellectualized operational services primarily include cost of hardware, devices, materials and application services which were procured and integrated, subcontract cost to other service providers and labor cost of engineers and IT development and operational personnel. r. 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. s. 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. t. Advertising costs The Group expenses advertising costs as incurred. Total advertising expenses of continuing operations were RMB 1,858 1,857 2,701 u. 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, the British Virgin Islands and United States is the US$; the functional currency of the Company’s subsidiary in Taiwan is the TWD; 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$ and TWD 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 each quarter. 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. v. 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. w. 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. x. 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. y. 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 that 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. Deferred tax liabilities and assets are classified as noncurrent and presented with a netted off amount in the consolidated balance sheets as of December 31, 2016 and 2017, respectively. z. 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 19 (c) for additional information. In 2014, the Group received a document from the tax bureau cancelling Ambow Online’s preferential tax treatment. The Group took legal action to defend itself, and 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 and eight months ended August 31, 2017, the Company accrued the overdue fee respectively. On August 31, 2017, the Company sold 100 As such, fees have been deconsolidated from the Company’s financial reporting aa. 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. bb. 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. cc. 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). The results of discontinued operations in 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 2015 were combined with the cash flows from continuing operations within each of the three categories. dd. 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. ee. Recently issued accounting standards 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 t |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 4. CASH, CASH EQUIVALENTS AND RESTRICTED CASH Years ended December 31, 2015 2016 2017 RMB RMB RMB Cash and cash equivalents 246,303 196,900 195,303 Restricted cash 2,050 2,350 2,350 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows 248,353 199,250 197,653 Years ended December 31, 2015 2016 2017 RMB RMB RMB Changes in cash and cash equivalents included in assets held for sale 36,063 - - Changes in restricted cash included in assets held for sale 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 38,063 - - |
SHORT TERM INVESTMENTS
SHORT TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
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 thirty-five days, with annual interest rates ranging from 4.89 6.00 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 2017. Available-for-sale investments Investments other than held-to-maturity are classified as available-for-sale investments, which consist of various adjustable-income financial products purchased from Chinese commercial banks. All the available for sale investments did not have maturity date. They are classified as short-term investments on the consolidated balance sheets as management intends to hold them for a period less than one year. Available-for-sale securities are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. The aging of all the available-for-sale investments were less than 12 months as of December 31, 2017. No OTTI loss was recognized for the year ended December 31 2017. As of December 31, 2016 Amortized Cost Gross unrealized gain Estimated 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 As of December 31, 2017 Amortized Cost Gross unrealized gain Estimated RMB RMB RMB Short-term investments: Held-to-maturity investments Fixed-rate financial products 93,000 - 93,000 Available-for-sale investments Adjustable-rate financial products 128,000 42 128,042 Year Ended December 31, 2015 2016 2017 2017 RMB RMB RMB USD Interest income recognized on held-to-maturity investments 7,027 4,078 3,799 584 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE, NET [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 6. ACCOUNTS RECEIVABLE, NET As of December 31, 2016 2017 RMB RMB Accounts receivable 13,576 25,257 Less: Allowance for doubtful accounts - (746) Accounts receivable, net 13,576 24,511 Allowance for doubtful accounts: As of December 31, 2016 2017 RMB RMB Balance at beginning of year (116,615) - Addition (Note i) - (746) Written off 116,615 - Balance at end of year - (746) (Note i) Full provision was provided to receivables due from different customers due to the remote collectability as of December 31, 2017. No bad debt provision was provided for the years ended December 31, 2015 and 2016 . |
PREPAID AND OTHER CURRENT ASSET
PREPAID AND OTHER CURRENT ASSETS, NET | 12 Months Ended |
Dec. 31, 2017 | |
PREPAID AND OTHER CURRENT ASSETS, NET [Abstract] | |
PREPAID AND OTHER CURRENT ASSETS, NET | 7. PREPAID AND OTHER CURRENT ASSETS, NET As of December 31, 2016 2017 RMB RMB Amount due from minority shareholder (Note i) 54,023 - Amount due from Xihua Group (Note ii) 49,800 49,800 Value added tax refundable (Note iii) 24,811 5,165 Due from former owners 5,743 5,743 Staff advances 6,008 5,857 Rental deposits 7,835 3,804 Prepaid professional services fees 3,045 6,513 Prepaid rental fees 3,533 5,520 Receivable from Zhenjiang operating rights (Note iv) 35,000 35,000 Receivable from Jinghan Group (Note v) 122,822 - Others (Note vi) 20,302 23,327 Total before allowance for doubtful accounts 332,922 140,729 Less: allowance for doubtful accounts (Note vii) (179,055) (11,212) Total 153,867 129,517 As of December 31, 2016 2017 RMB RMB Balance at beginning of year (195,254) (179,055) Addition (Note vii) (1,727) (2,690) Decrease due to disposal of subsidiary (Note iii) - 19,647 Written off (Note i and v) 17,926 150,886 Balance at end of year (179,055) (11,212) (Note i) The balance represented Shenyang K-12’s amount due from its minority shareholder amounting to RMB 54,023, which was tuition fees that have been collected from students but were misappropriated by its minority shareholder. As of December 31, 2016, full provision was provided as the collectability was remote. As of December 31, 2017, such provision was written off after all collection efforts have been exhausted and the potential for recovery was remote. (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 19(c), the Group provided a provision amounting to RMB 24,811 as of December 31, 2016. The Group disposed Ambow Online to a third party as at August 31, 2017, please see Note 27 for detail. VAT refundable of Ambow Online and the relative bad debt amount of RMB 19,647 (Note iv) 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, 2016 and 2017, the payable balance to Zhenjiang Foreign Language School amounted to RMB 36,770 36,770 (Note v) In the year ended December 31, 2017, bad debt provision of RMB 96,863 25,959 (Note vi) Others mainly included inventory, prepaid education supplies, prepaid outsourcing service fee, and other miscellaneous items with trivial amounts. (Note vii) Other addition of allowance during the years of 2017 and 2016 was mainly provided against third parties and former employees due to the remote recoverability. |
CONSIDERATION RECEIVABLE, NET
CONSIDERATION RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2017 | |
CONSIDERATION RECEIVABLE, NET [Abstract] | |
CONSIDERATION RECEIVABLE, NET | 8. CONSIDERATION RECEIVABLE, NET Consideration receivables consisted of the following: As of December 31, 2016 2017 RMB RMB Receivables resulting from disposals (Note i) 14,000 - Less: allowance for doubtful accounts (Note i) (5,500) - Total 8,500 - (Note i) The cost of consideration receivable came from the disposal of subsidiaries in 2011. Bad debt of RMB 5,500 has been provided in past few years. In the year ended December 31, 2017, the Company reached an agreement with the third party to offset the receivable due from and payable due to it at amount of RMB 8,500, and bad debt provision of RMB 5,500 was written off after all collection efforts have been exhausted and the potential for recovery was remote |
LONG-TERM LOAN RECEIVABLE
LONG-TERM LOAN RECEIVABLE | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE, NET [Abstract] | |
LONG-TERM LOAN RECEIVABLE | 9. LONG-TERM LOAN RECEIVABLE Date Borrower Lender Amount Annual Repayment 4/5/2017 Suzhou Zhixinliren Investments Co., Limited (“Suzhou Zhixinliren”) Ambow Shengying 42,677 0 % 4/4/2019 On April 5, 2017, Ambow Shengying entered into an agreement to provide an interest-free loan to Suzhou Zhixinliren in the amount of RMB 42,677 As of December 31, 2016 and 2017, the Company has RMB nil and RMB 42,677 In order to meet the Company’s acquisition fund and working capital needs in US Dollars, on April 5, 2017, the Company entered into an agreement to receive an interest-free loan from Sino Accord Investments Limited (“Sino Accord”) in the amount of US$ 6,000 39,205 6,000 42,677 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 10. PROPERTY AND EQUIPMENT, NET As of December 31, 2016 2017 RMB RMB Buildings 64,222 127,914 Capital lease of property 12,000 12,000 Motor vehicles 6,173 4,054 Office and computer equipment 87,121 69,804 Leasehold improvements 70,321 72,542 Sub-total 239,837 286,314 Less: accumulated depreciation (151,830) (117,891) Total 88,007 168,423 On December 30, 2016, the Group prepaid RMB 71,024 1,500 For the years ended December 31, 2015, 2016 and 2017, depreciation expenses of continuing operations were RMB 25,048 17,620 17,103 The prepaid long-term lease of Ambow Beijing campus was RMB 45,324 38,814 45,324 6,510 The capital leases of properties of Shenyang K-12 School was RMB 12,000 3,750 4,350 2,419 600 600 As of December 31, 2017, 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 33,913 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS, NET [Abstract] | |
INTANGIBLE ASSETS, NET | 11. INTANGIBLE ASSETS, NET As of December 31, 2016 2017 RMB RMB Gross carrying amount Trade names 48,908 48,908 Brand - 5,920 Student populations 38,380 39,818 Software 91,254 33,770 Customer relationships 5,270 5,270 Cooperative agreements 5,230 5,230 Favorable leases 63,237 63,237 Non-compete agreements 833 833 253,112 202,986 Less: Accumulated amortization Trade names - - Brand - - Student populations (36,964) (37,580) Software (89,138) (32,712) Customer relationships (5,270) (5,270) Cooperative agreements (3,046) (3,554) Favorable leases (23,153) (26,268) Non-compete agreements (833) (833) (158,404) (106,217) Intangible assets, net Trade names 48,908 48,908 Brand - 5,920 Student populations 1,416 2,238 Software 2,116 1,058 Customer relationships - - Cooperative agreements 2,184 1,676 Favorable leases 40,084 36,969 Non-compete agreements - - 94,708 96,769 The Group recorded impairment loss of trade names in RMB 9,639 2,655 Amortization expenses for intangible assets of continuing operations amounted to RMB 10,707 6,786 4,782 3,061 2,466 1,393 Amount RMB 2018 4,606 2019 4,520 2020 4,436 2021 3,491 2022 3,292 Thereafter 21,596 Total 41,941 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL [Abstract] | |
GOODWILL | 12. GOODWILL Better Schools Better Jobs K-12 Career Tutoring Schools Subtotal Enhancement Consolidated RMB RMB RMB RMB RMB 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 Goodwill acquired during the year (Note 24) - - - 5,212 5,212 Balance as of December 31, 2017 7,772 25,710 33,482 39,684 73,166 In 2017, the Group elected to start with the quantitative 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. Other key assumptions besides cash flow projections included discount rates in the range from 16 17 3 |
OTHER NON-CURRENT ASSETS, NET
OTHER NON-CURRENT ASSETS, NET | 12 Months Ended |
Dec. 31, 2017 | |
OTHER NON-CURRENT ASSETS, NET [Abstract] | |
OTHER NON-CURRENT ASSETS, NET | 13. OTHER NON-CURRENT ASSETS, NET As of December 31, 2016 2017 RMB RMB Prepayment for purchase of minority interest (Note i) - 4,504 Equity method investments 1,140 1,764 Prepayment for development of internal use software 1,779 1,211 Others 3,438 6,113 Total 6,357 13,592 (Note i) In 2017, the Group prepaid RMB 4,504 10 |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUED AND OTHER LIABILITIES [Abstract] | |
ACCRUED AND OTHER LIABILITIES | 14. ACCRUED AND OTHER LIABILITIES As of December 31, 2016 2017 RMB RMB Payable to Ambow Online (Note 27) - 137,532 Business tax, VAT and others 75,444 41,437 Payable balance with indemnity by Xihua Group (Note 7(ii)) 49,800 49,800 Accrual for rental 57,809 42,612 Payable to Zhenjiang Foreign Language School (Note 7(vi)) 36,770 36,770 Accrued payroll and welfare 34,567 27,383 Payable to Jinghan Group (Note 7(vii)) 25,959 - Professional service fees payable 28,368 20,850 Receipt in advance 11,207 18,578 Amounts due to students 19,156 11,423 Lawsuit penalty payable 2,176 2,315 Employee reimbursement payable 6,927 - Others 24,638 30,298 Total 372,821 418,998 |
LONG-TERM BORROWING FROM THIRD
LONG-TERM BORROWING FROM THIRD PARTY | 12 Months Ended |
Dec. 31, 2017 | |
CONVERTIBLE LOAN [Abstract] | |
Long-term Debt [Text Block] | 15. LONG-TERM BORROWING FROM THIRD PARTY Date Borrower Lender Amount Original Amount Annual Repayment 4/5/2017 Ambow Education Holding Ltd. Sino Accord 39,205 6,000 0 % 4/4/2019 On April 5, 2017, the Company entered into an agreement to receive an interest-free loan from Sino Accord in the amount of US$ 6,000 39,205 April 4, 2018 April 4, 2019 As of December 31, 2016 and 2017, the Company has RMB nil and RMB 39,205 Through an understanding among the Company, Ambow Shengying, Suzhou Zhixinliren and Sino Accord, the long-term borrowing due to Sino Accord at amount of US$ 6,000 42,677 |
CONVERTIBLE LOAN
CONVERTIBLE LOAN | 12 Months Ended |
Dec. 31, 2017 | |
CONVERTIBLE LOAN [Abstract] | |
CONVERTIBLE LOAN | 16. CONVERTIBLE LOAN 56,549 |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2017 | |
ORDINARY SHARES [Abstract] | |
ORDINARY SHARES | 17. ORDINARY SHARES 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 May 14, 2014 811,359 1 225,377 93,906 225,377 93,906 On May 18, 2015, the Board of Directors granted the restricted stock 86,473 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 Reverse Stock Split of its issued and outstanding Class A Ordinary Shares and ADSs. The ratio of ADS to Class A Ordinary Shares remained the same: one to two. On November 8, 2015, 4,708,415 As of December 31, 2015, there were 33,556,762 4,708,415 As of December 31, 2016, there were 33,990,680 4,708,415 As of December 31, 2017, there were 34,206,939 4,708,415 |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
SHARE BASED COMPENSATION [Abstract] | |
SHARE BASED COMPENSATION | 18. 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 10 110 5 Share options As of December 31, 2016 and 2017, options granted to employees to purchase 226,696 223,895 29,921 29,921 939,177 941,978 Year ended December 31, 2015 Year ended December 31, 2016 Year ended December 31, 2017 Shares Weighted Weighted Aggregate Shares Weighted Weighted Aggregate Shares Weighted Weighted Aggregate RMB RMB RMB RMB RMB RMB Outstanding at beginning 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 Granted - - - - - - - - - - - - Exercised - - - - - - - - - - - - Forfeited or expired (39,923) 3.08 - - (130,733) 3.30 - - (2,801) 3.09 - - Outstanding at end of year 387,350 3.08 2.59 3,836 256,617 3.30 2.84 4,499 253,816 3.09 1.86 1,186 Exercisable at end of year 387,350 3.08 2.63 1,435 256,617 3.30 2.84 4,499 253,816 3.09 1.86 1,186 Expected to be vested - - - - - - - - - - - - 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 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 2016 and 2017. The Company recorded share-based compensation expenses (reversals) of RMB (3,645) 83 4 As of December 31, 2016 and 2017, 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 1.480 811,359 225,377 93,906 225,377 93,906 On May 18, 2015, the Board of Directors granted 86,473 6,666 On May 18, 2015, the Board of Directors granted 510,000 201,875 127,500 201,875 122,353 Year ended December 31, 2016 Shares Grant-date fair Weighted Average 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 - Year ended December 31, 2017 Shares Grant-date fair value Weighted Average RMB Outstanding at beginning of year 415,521 22.28 1.89 Granted - - - Issued (216,259) 21.25 - Forfeited or expired (2,625) 20.36 1.47 Outstanding at end of year 196,637 20.50 1.29 Shares vested but not issued at end of year 49,500 21.44 - The Company recorded share-based compensation expenses of RMB 9,076 7,828 4,640 8,616 3,575 |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2017 | |
TAXATION [Abstract] | |
TAXATION | 19. 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 As of December 31, 2016 and 2017, the payable balances for VAT were RMB 31,314 8,965 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% to 5%. Business tax and related surcharges are deducted from revenues before arriving at net revenues. 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% to 6% as compared to the 3 5 As of December 31, 2016 and 2017, the payable balances for business tax were RMB 24,106 18,423 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 Taiwan Entity incorporated in Taiwan is subject to Taiwan profit tax at a rate of 17 PRC and US Years ended December 31, 2015 2016 2017 RMB RMB RMB Current: PRC 8,562 4,881 11,648 U.S. - - 93 Deferred: PRC (127,525) 1,030 (2,161) U.S. - - 34 Provision for income tax expenses (benefits) (118,963) 5,911 9,614 Corporate entities The PRC Enterprise Income Tax (“EIT”) is calculated based on the taxable income determined under the applicable EIT Law and its implementation rules, which became effective on January 1, 2008. EIT Law imposes a unified income tax rate of 25 EIT 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 1,328 1,332 100 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 The principal regulations governing private education in China are The Law for Promoting Private Education and The Implementing Rules for the Law for Promoting Private Education, or 2004 Implementing Rules. The Standing Committee of the National People's Congress promulgated an amendment to The Law for Promoting Private Education on November 7, 2016, which went into effect on September 1, 2017. Pursuant to this amendment, private schools not requiring reasonable returns were treated in a similar manner to public schools and were generally not subject to income tax. To date, no separate regulations or guidelines have been released on how to define reasonable return for the purposes of assessing a school’s tax status. We currently do not believe it is likely that our schools and college would qualify as not-for-profit organizations and therefore be exempt from corporate income tax under the EIT Law. The Group has recognized income tax payable for the above unrecognized tax benefits because the obligation was considered probable. Please see Note 19(d) for the movement of uncertain tax position. U.S. Tax Cuts and Jobs Act The U.S. Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act makes significant changes to U.S. income tax law, including, but not limited to, reducing the U.S. federal corporate income tax rate from 35 21 On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. As of December 31, 2017, the Company has completed its accounting for the effects of the Tax Act based on currently available information, and no material impact have been identified. The Company will monitor future guidance set forth by the Department of Treasury with regard to the Transition Tax provisions under the Act, and true up this estimate as appropriate within the one year measurement period. If revisions are needed as new information becomes available, the final determination of the deemed incremental income tax expense, deemed re-measurement of the deferred assets and liabilities or other applicable provisions of the Tax Act will be completed as additional information becomes available within the 12 month re-measurement period. As of December 31 2016 2017 RMB RMB Deferred tax asset: Accrued expense 7,002 7,028 Allowance for doubtful accounts 73,907 47,593 Tax loss carried forward 445,263 359,908 Deferred advertising expense 11,519 670 Impairment of long-lived tangible assets 24,600 19,691 Others 4,273 - Total deferred tax assets 566,564 434,890 Valuation allowance (536,838) (403,485) Deferred tax assets, net of valuation allowance 29,726 31,405 Deferred tax liabilities: - Unrecognized valuation surplus and deficit - acquisition 77,825 79,834 - Unrecognized valuation surplus and deficit - decrease due to amortization and impairment (55,605) (56,677) - Unrealized profit of short-term investments 952 26 Total deferred tax liabilities 23,172 23,183 Deferred tax assets, net of valuation allowance and deferred tax liabilities 6,554 8,222 For entities incorporated in Hong Kong, net loss can be carried forward indefinitely; for entity incorporated in Taiwan, net loss can be carried forward for ten years; for entity incorporated in U.S., net loss can be carried forward for 20 years; for entity incorporated in P.R.C. mainland, net loss can be carried forward for five years. Amount RMB 2018 374,479 2019 210,296 2020 85,336 2021 62,867 2022 and thereafter 707,550 Total 1,440,528 The following represents a roll-forward of the valuation allowance for each of the years: As of December 31, 2015 2016 2017 RMB RMB RMB Balance at beginning of the year 539,704 530,358 536,838 Allowance made during the year 30,873 6,480 10,764 Allowance resulting from the reconsolidation of previously deconsolidated entities 1,352 - - Decrease due to disposal of subsidiaries - - (120,069) Reversals (41,571) - (24,048) Balance at end of the year 530,358 536,838 403,485 Years ended December 31, 2015 2016 2017 % % % PRC statutory income tax rate 25 % 25 % 25 % Impact of different tax rates in other jurisdictions - - (6) % Tax effect of non-deductible expenses 0 % (1) % 15 % Tax effect of non-taxable income 0 % 1 % (13) % Tax effect of tax-exempt entities (9) % (10) % 7 % Tax effect of deemed profit 0 % (1) % 0 % Tax effect of disposed entity 13 % 0 % 0 % Tax penalty 0 % (4) % 2 % Changes in valuation allowance 2 % (29) % (12) % Effective tax rate 31 % (19) % 18 % d. Uncertain tax positions As of December 31, 2015 2016 2017 RMB RMB RMB Unrecognized tax benefits, beginning of year 15,011 23,648 25,323 Increases related to current tax positions 4,948 1,675 5,941 Addition from the consolidation of previously deconsolidated subsidiaries 3,689 - - Decrease due to disposal of subsidiaries (Note 27) - - (6,645) Unrecognized tax benefits, end of year 23,648 25,323 24,619 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, 2015, 2016 and 2017, there are RMB 4,948 1,675 5,941 In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to assess underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities remain subject to examination by the tax authorities based on the above. |
NET INCOME_LOSS PER SHARE
NET INCOME/LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
NET INCOME/LOSS PER SHARE [Abstract] | |
NET INCOME/LOSS PER SHARE | 20. NET INCOME/LOSS PER SHARE Years ended December 31, 2015 2016 2017 RMB RMB RMB Numerator: Numerator for basic and diluted (loss) income from continuing operations per share (277,048) (35,700) 46,463 Numerator for basic and diluted income from discontinued operations per share 340,787 - - Denominator: Denominator for basic (loss) income per share weighted average ordinary shares outstanding 36,848,816 38,469,234 38,826,800 Denominator for diluted (loss) income per share weighted average ordinary shares outstanding 36,848,816 38,469,234 39,303,760 Basic (loss) income per share - continuing operations (7.52) (0.93) 1.20 Diluted (loss) income per share- continuing operations (7.52) (0.93) 1.18 Basic and diluted income per share- discontinued operations 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 1,248,873 672,138 476,960 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 21. 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. Amount RMB 2018 33,774 2019 23,797 2020 14,311 2021 12,115 2022 13,104 Thereafter 64,248 Total 161,349 Rent expense for all cancelable and non-cancelable leases including continuing and discontinued operation were approximately RMB 54,939 26,184 22,617 Contingencies As of December 31, 2017, the Company did not have any significant indemnification claims that were probable or reasonably possible. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 22. 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 four operating segments which are Tutoring, K-12 Schools, Career Enhancement and Others. These four 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 reportable segment of Others represents the intellectualized operational services provided, and was classified under the “Others” division. This segment provide intellectualized operational services to corporate clients, colleges and universities, which is to design, purchase, modify and integrate electronic equipment and devices, and develop mobile APP for end users to utilize office facilities, manage resources and administrative matters according to our clients’ office or teaching space, human resource deployments and office/classroom administration requirements. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The CODM evaluates performance based on each reporting segment’s revenues, cost of revenues, gross profit, operating expenses, other income (expense), (loss) income before income tax and non-controlling interests and total assets as follows. (RMB in thousands) Better School Better Job Tutoring K-12 Subtotal Career 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 OPERATING EXPENSES Selling and marketing (7,690) (964) (8,654) (38,976) (47,630) General and administrative (18,601) (37,787) (56,388) (48,337) (104,725) Research and development (1,773) - (1,773) (321) (2,094) Impairment loss (2,702) - (2,702) (7,630) (10,332) Unallocated corporate expenses - - - - (341,023) Total operating expenses (30,766) (38,751) (69,517) (95,264) (505,804) OPERATING (LOSS) INCOME (16,926) 31,177 14,251 (29,262) (356,034) OTHER INCOME (EXPENSE) Interest (expenses) income, net (307) 22 (285) (2,100) (2,385) Foreign exchange gain, net 10 - 10 24 34 Other (loss) income, net (7,966) (237) (8,203) 665 (7,538) Loss (income) on reconsolidation of previously deconsolidated entities (23,908) - (23,908) 6,439 (17,469) Gain on sale of investment available for sale - 1,971 1,971 - 1,971 Unallocated corporate other expenses - - - - (13,984) Total other (expenses) income (32,171) 1,756 (30,415) 5,028 (39,371) (LOSS) INCOME BEFORE INCOME TAX, NON-CONTROLLING INTERESTS AND DISCONTINUED OPERATIONS (49,097) 32,933 (16,164) (24,234) (395,405) For the year ended December 31, 2016 (RMB in thousands) Better School Better Job Tutoring K-12 Subtotal Career 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 OPERATING EXPENSES Selling and marketing (5,516) (1,065) (6,581) (30,810) (37,391) General and administrative (21,929) (42,205) (64,134) (34,023) (98,157) Research and development (1,445) - (1,445) (924) (2,369) Impairment loss (21,779) - (21,779) (623) (22,402) Unallocated corporate expenses - - - - (56,986) Total operating expenses (50,669) (43,270) (93,939) (66,380) (217,305) OPERATING (LOSS) INCOME (36,149) 41,489 5,340 7,615 (44,031) OTHER INCOME (EXPENSE) Interest income 106 106 212 186 398 Foreign exchange gain, net - - - 12 12 Other (loss) income, net (2,514) 195 (2,319) (1,714) (4,033) Gain on sale of investment available for sale - 2,464 2,464 138 2,602 Unallocated corporate other income - - - - 13,945 Total other (expenses) income (2,408) 2,765 357 (1,378) 12,924 (LOSS) INCOME BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS (38,557) 44,254 5,697 6,237 (31,107) Segment assets 118,083 363,317 481,400 187,362 668,762 Unallocated corporate assets - - - - 284,261 TOTAL ASSETS 118,083 363,317 481,400 187,362 953,023 For the year ended December 31, 2017 (RMB in thousands) Better School Better Job Tutoring K-12 Subtotal Career Others Consolidated RMB RMB RMB RMB RMB Net Revenues 55,371 232,433 287,804 144,950 11,170 443,924 Cost of revenues (26,426) (152,509) (178,935) (70,465) (6,995) (256,395) GROSS PROFIT 28,945 79,924 108,869 74,485 4,175 187,529 OPERATING EXPENSES Selling and marketing (4,220) (1,356) (5,576) (26,656) - (32,232) General and administrative (16,411) (40,681) (57,092) (34,466) (12) (91,570) Research and development (241) - (241) (407) - (648) Unallocated corporate expenses - - - - - (60,774) Total operating expenses (20,872) (42,037) (62,909) (61,529) (12) (185,224) OPERATING INCOME 8,073 37,887 45,960 12,956 4,163 2,305 OTHER INCOME (EXPENSE) Interest income 252 804 1,056 171 - 1,227 Foreign exchange gain, net - - - 47 - 47 Gain on disposal of subsidiaries 4,540 - 4,540 - - 4,540 Other income (loss), net 10,402 1,025 11,427 (4,348) - 7,079 Gain on sale of investment available for sale - 5,594 5,594 1,958 - 7,552 Unallocated corporate other income - - - - - 32,789 Total other income (loss) 15,194 7,423 22,617 (2,172) - 53,234 INCOME BEFORE INCOME TAX AND 23,267 45,310 68,577 10,784 4,163 55,539 Segment assets 118,403 370,251 488,654 172,690 8,085 669,429 Unallocated corporate assets - - - - - 307,991 TOTAL ASSETS 118,403 370,251 488,654 172,690 8,085 977,420 The Group primarily operates in the PRC and US. Substantially most of the Group’s long-lived assets are located in the PRC and US. |
PRC CONTRIBUTION AND PROFIT APP
PRC CONTRIBUTION AND PROFIT APPROPRIATION | 12 Months Ended |
Dec. 31, 2017 | |
PRC CONTRIBUTION AND PROFIT APPROPRIATION [Abstract] | |
PRC CONTRIBUTION AND PROFIT APPROPRIATION | 23. 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 28,085 29,029 35,241 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 As of December 31, 2016 2017 RMB RMB General and statutory surplus reserve 59,309 17,348 Education development reserve 21,698 2,688 Total 81,007 20,036 |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2017 | |
ACQUISITIONS [Abstract] | |
ACQUISITIONS | 24. ACQUISITION Date of Purchase Goodwill Intangibles Amortizable Entity acquired during the year ended December 31, 2017 RMB RMB RMB RMB (1) Bay State College Inc. November 20, 2017 22,830 5,212 5,920 1,438 On November 20, 2017, Ambow BSC Inc. acquired 100 Management of the Group is responsible for determining the fair value of consideration transferred, assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from an independent appraiser. The total purchase price of RMB 22,830 3,494 16,064 2,459 6,766 1,036 The purchase price exceeded the fair value of the net tangible assets acquired from Bay State College Inc. and as a result, the Group recorded goodwill in connection with this transaction. The goodwill acquired resulted primarily from the Group’s expected synergies from the integration of businesses acquired into the Group’s service and product offerings. The Group used the following valuation methodologies to value assets acquired, liabilities assumed and intangible assets identified: · Property and equipment was valued using the cost approach; · Brand were valued using the relief from royalty method, which represents the benefits of owning the intangible asset rather than paying royalties for its use; · Student populations was valued using the multi-period excess earning method approach; · All other current assets and current liabilities carrying value approximated fair value at the time of acquisition. RMB Amortization Period (in years) Cash and cash equivalents 15,231 Prepaid and other current assets 3,921 Property and equipment 9,096 Intangible assets: Brand 5,920 Indefinite Students population 1,438 3.3 Goodwill 5,212 Other non-current assets 745 Total assets 41,563 Deferred revenue (3,685) Accounts payable (1,555) Accrued and other liabilities (9,004) Income tax payable 20 Other non-current liabilities (3,143) Deferred tax assets, net of deferred tax liabilities (1,366) Total 22,830 Of the RMB 7,358 5,920 1,438 3.3 The net revenue and net income arising from acquisition of Bay State College Inc. made in period from acquisition date to December 31, 2017 that are included in the Group’s consolidated income statement for the year ended December 31, 2017 are RMB 6,430 295 16,064 2,459 15,231 2,331 833 128 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 25. RELATED PARTY TRANSACTIONS a. Transactions Years ended December 31, Transactions 2015 2016 2017 RMB RMB RMB Repayments to Executive Principal of Ambow Research Center (Note i) (3,960) - - Collection from A, a member of management team of the Company (1,670) - - Repaid to A, a member of management team of the Company (Note ii) (1,350) - - Loan to/(collection from) a member of management team of Beijing SIWA Century Zhisheng Education Technology Co., Ltd. (“Century Zhisheng”) (Note iii) 199 (24) - Loan to Suzhou Chengpingheng Software Engineering Co., Ltd , an entity controlled by a member of management team of Century Zhisheng (Note iii) 138 - - Borrowing from a member of management team of Century Zhisheng (iii) 1,089 - - Loan to (Settlement of loan with) B, a member of management team of the Company 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 borrowings from A, a member of management team of the Company, were fully repaid in 2015. Note (iii) The loans to a member of management team of Century Zhisheng and borrowings from entities controlled by a member of management team of Century Zhisheng were made for operation purpose without interest bearing and maturity date. In 2017, the member of management team of Century Zhisheng was resigned, led to the reclassification of respective amounts due from and due to such member from related party to a third party. b. Amounts due to related parties As of December 31, As of December 31, Relationship 2016 2017 2016 2017 RMB RMB RMB RMB A, a member of management team of the Company 1,100 - - - A member of management team of Century Zhisheng (Note 25 a (iii)) 185 - 4,232 - Entity controlled by a member of management team of Century Zhisheng - Suzhou Chengpingheng Software Engineering Co., Ltd (Note 25a (iii)) 138 - - - Entity controlled by Executive Principal of Ambow Research Center - Shandong Shichuang Software Engineering Co., Ltd. (Note 25 a (iii)) - - 3,430 3,430 B, a member of management team of the Company 400 - - - 1,823 - 7,662 3,430 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 44,686 7,222 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2017 | |
DISCONTINUED OPERATIONS [Abstract] | |
DISCONTINUED OPERATIONS | 26. 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 Jinghan Group Years ended December, 31 2015 2016 2017 RMB RMB RMB Revenues 171,938 - - Impairment loss - - - Loss from discontinued operation (4,499) - - Income tax benefit 1,385 - - Loss from discontinued operation, net of income tax (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 340,798 - - Note (i) Foreign currency translation adjustment included in the loss on sale of discontinued operation is RMB 9,084 |
DISPOSAL OF SUBSIDIARY
DISPOSAL OF SUBSIDIARY | 12 Months Ended |
Dec. 31, 2017 | |
GAIN ON DISPOSAL OF SUBSIDIARY [Abstract] | |
GAIN ON DISPOSAL OF SUBSIDIARY | 27. DISPOSAL OF SUBSIDIARY On August 31, 2017, the Company sold the 100 171,137 137,532 33,605 On September 30, 2017, the Company sold the 100 1 1 4,540 4,540 |
DECONSOLIDATION AND RECONSOLIDA
DECONSOLIDATION AND RECONSOLIDATION | 12 Months Ended |
Dec. 31, 2017 | |
DECONSOLIDATION AND RECONSOLIDATION [Abstract] | |
DECONSOLIDATION AND RECONSOLIDATION | 28. DECONSOLIDATION AND RECONSOLIDATION In 2013 and 2014, the Group deconsolidated a few entities since the Group ceased to have substantial control over those entities. 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, 2017 | |
NON-CONTROLLING INTERESTS [Abstract] | |
NON-CONTROLLING INTERESTS | 29. NON-CONTROLLING INTERESTS As of January 1, 2015, the Group recognized a non-controlling interest in the consolidated statements of operations and other comprehensive income (loss) to reflect the 31 10 36 23 12 In 2015, the 36 5,845 5 3,351 40 163 In 2016, the Group established Suzhou Jiaxue under Ambow Zhixin, with a non-controlling economic interest of 40 400 40 396 In 2017, the 40 758 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 30. 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: Fair Value Measurements at Reporting Date Using Total Fair Quoted Prices Significant Significant As of December 31, 2017 Assets: Short term investments, available for sale 128,042 128,042 - - Fair Value Measurements at Reporting Date Using Total Fair Quoted Prices Significant Significant As of December 31, 2016 Assets: Short term investments, available for sale 174,811 174,811 - - Fair value Valuation Unobservable inputs Range Intangible assets in 2016 115,941 Relief-from-royalty Royalty rate 0%-9% Intangible assets in 2017 91,249 Relief-from-royalty Royalty rate 1%-6% |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2017 | |
CONCENTRATIONS [Abstract] | |
CONCENTRATIONS | 31. 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, 2015, 2016 and 2017. No single supplier represented 10% or more of the Group’s total costs of sales for the years ended December 2015, 2016 and 2017. As of December 31, 2016 2017 Debtors RMB % RMB % Accounts receivable Company A 1,313 10 % 1 - Company B - - 5,656 23 % Prepaid and other current assets Company C 49,800 32 % 49,800 38 % Company D 35,000 23 % 35,000 27 % Company E 25,959 17 % - - Other non-current assets Company F 1,570 25 % 1,281 9 % Company G - - 4,504 33 % Consideration receivable Company H 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, 2017 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 32. SUBSEQUENT EVENTS 1) Extension of loan receivable and short-term borrowing On March 7, 2018, we mutually agreed with Sino Accord and Suzhou Zhixinliren to extend the maturity date for repayment of the loans for an additional year. Accordingly, both loans are now due in April 2019 and still interest-free. See Note 9 and 15 for further details. The Company does not identify any other 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, 2017 | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Abstract] | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS | 33. 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 1,540,405 1,255,894 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, 2016 and 2017, 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. AMBOW EDUCATION HOLDING LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Financial information of Parent Company Balance Sheets (All amounts in thousands, except for share and per share data) As of December 31, 2016 2017 2017 RMB RMB US$ Note 3(a) ASSETS Current assets: Cash and cash equivalents 1,467 323 50 Amounts due from related parties 183,676 261,867 40,249 Prepaid expenses and other current assets 341 2,770 426 Total current assets 185,484 264,960 40,725 Non-current assets: Property and equipment, net - - - Intangible assets, net 8 - - Investment in subsidiaries - - - Total non-current assets 8 - - Total assets 185,492 264,960 40,725 LIABILITIES Current liabilities: Amounts due to related parties 19,605 17,325 2,663 Accrued and other liabilities 49,371 41,196 6,334 Total current liabilities 68,976 58,521 8,997 Non-current liabilities: Long-term borrowing from third party - 39,205 6,026 Total non-current liabilities - 39,205 6,026 Total liabilities 68,976 97,726 15,023 SHAREHOLDERS’ EQUITY Preferred shares (US$ 0.003 par value; 1,666,667 shares authorized, nil issued and outstanding as of December 31, 2016 and 2017) - - - Class A Ordinary shares (US$ 0.003 par value; 66,666,667 and 66,666,667 shares authorized; 33,990,680 and 34,206,939 shares issued and outstanding as of December 31, 2016 and 2017, respectively) 636 640 98 Class C Ordinary shares (US$ 0.003 par value; 8,333,333 and 8,333,333 shares authorized; 4,708,415 and 4,708,415 shares issued and outstanding as of December 31, 2016 and 2017, respectively) 90 90 14 Additional paid-in capital 3,453,227 3,456,307 531,225 Accumulated deficit (3,343,142) (3,296,679) (506,691) Accumulated other comprehensive income 5,705 6,876 1,056 Total shareholders’ equity 116,516 167,234 25,702 Total liabilities and shareholders’ equity 185,492 264,960 40,725 Years ended December 31, 2015 2016 2017 2017 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 (410) - - - General and administrative (79,562) (18,854) (13,457) (2,068) Research and development (660) - - - Total operating expenses (80,632) (18,854) (13,457) (2,068) OPERATING LOSS (80,632) (18,854) (13,457) (2,068) Share of (loss) income from subsidiaries 201,051 (23,274) 59,933 9,212 OTHER EXPENSE Interest (expense) income, net (56,549) 1 2 - Foreign exchange losses, net (131) - - - Other income (expense), net - 6,427 (15) (2) Income tax - - - - NET INCOME (LOSS) 63,739 (35,700) 46,463 7,142 Statements of Cash Flows (All amounts in thousands, except for share and per share data) Years ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ Note 3(a) Cash flows from operating activities (40,384) (6,348) (18,255) (2,806) Cash flows from investing activities - - (1,556) (239) Cash flows from financing activities 48,876 (843) 18,667 2,869 Effects of exchange rate changes on cash and cash equivalents - - - - Net change in cash and cash equivalents 8,492 (7,191) (1,144) (176) Cash and cash equivalents at beginning of year 166 8,658 1,467 225 Cash and cash equivalents at end of year 8,658 1,467 323 50 Supplemental disclosure of cash flow information 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 - - - |
SIGNIFICANT ACCOUNTING POLICI40
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 6.5063 As mentioned in Note 1 (a) and Note 26, Jinghan Group have been disposed in 2015 and its operations have been classified as discontinued operations for the year ended December 31, 2015. The disposal of Jinghan Group has been completed by April 8, 2015. |
Use of estimates | b. 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 | c. 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. |
Cash and cash equivalents | d. 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 | e. 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. |
Short term investments | f. 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 | g. 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 | h. 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 | i. 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 | j. Property and equipment Property and equipment is stated at cost less accumulated depreciation. 20 40 Motor vehicles 5 Office and computer equipment 3 10 Leasehold improvements Shorter of the remaining lease terms or estimated useful lives |
Business combinations | k. Business combinations Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Acquisition-related expenses and restructuring costs are expensed as incurred. Where the consideration in an acquisition includes contingent consideration the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and is recorded as a liability, it is subsequently remeasured at fair value at each reporting date with changes in fair value reflected in earnings. Business combinations occurred during the year ended December 31, 2017 are disclosed in Note 24. |
Intangible assets | l. Intangible assets Intangible assets represent brand, software, trade name, student population, corporative agreement, customer relationship, favorable lease, and 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 Cooperative agreements 1.3 10 Favorable leases 0.8 20 Trade names Indefinite Brand Indefinit The Group has determined that trade names and brand 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 and brand. Consequently, the carrying amounts of trade names and brand 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 and brand 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 | m. 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 2015 and 2016, and four reportable segments in 2017. For further details, see Note 22. |
Goodwill | n. 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 assessment instead. The quantitative goodwill impairment test 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. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. 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 | o. 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 | Revenue recognition The Group’s revenue is generated from delivering educational programs and services and intellectualized operational 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; distributors whom the Group sells its services to; and corporate clients, colleges and universities who procure intellectualized operational services. 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, 2016 2017 RMB RMB Career Enhancement 34,264 21,496 K-12 60,944 77,394 Tutoring 14,276 15,506 Total 109,484 114,396 Intellectualized operational services The Group enters into sales contractual arrangements related to its intellectualized operational services. The business is to design, purchase, modify and integrate electronic equipment and devices, and develop mobile APP, performed by engineers and IT development and operational personnel, for end users to utilize office facilities, manage resources and administrative matters. For each contract, 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. If any of the aforementioned criteria are not met, the Group defers the recognition of revenue until all criteria are met. Arrangements for intellectualized operational services are on a fixed-price basis. Revenues from fixed-price contracts are recognized using the percentage-of-completion method as determined by the proportional relation of the contract costs incurred to date relative to the estimated total contract costs at completion. Estimated contract costs are reviewed monthly and revised as necessary. The Group reviews the estimated revenues and estimated costs on each project at the end of each reporting period. Any revisions to existing estimates are made when required by members of management having the relevant authority. As part of the review process, management regularly compares and analyzes the actual costs incurred and the estimate of costs to complete the projects to the total estimated costs and the total contract price. Management make revisions to existing estimates as needed based on the analysis performed and with proper level of approval in the period in which changes become known. As a policy, provisions for estimated losses on such engagements will be made during the period in which a loss becomes probable and can be reasonably estimated. |
Cost of revenues | q. 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. Cost of revenues for intellectualized operational services primarily include cost of hardware, devices, materials and application services which were procured and integrated, subcontract cost to other service providers and labor cost of engineers and IT development and operational personnel. |
Leases | r. 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 | s. 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. |
Advertising costs | t. Advertising costs The Group expenses advertising costs as incurred. Total advertising expenses of continuing operations were RMB 1,858 1,857 2,701 |
Foreign currency translation and transactions | u. 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, the British Virgin Islands and United States is the US$; the functional currency of the Company’s subsidiary in Taiwan is the TWD; 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$ and TWD 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 each quarter. 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 | v. 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 | w. 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 | x. 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. |
Income taxes | y. 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 that 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. Deferred tax liabilities and assets are classified as noncurrent and presented with a netted off amount in the consolidated balance sheets as of December 31, 2016 and 2017, respectively. |
Uncertain tax positions | z. 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 19 (c) for additional information. In 2014, the Group received a document from the tax bureau cancelling Ambow Online’s preferential tax treatment. The Group took legal action to defend itself, and 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 and eight months ended August 31, 2017, the Company accrued the overdue fee respectively. On August 31, 2017, the Company sold 100 As such, fees have been deconsolidated from the Company’s financial reporting |
Comprehensive income | aa. 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 | bb. 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 | cc. 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). The results of discontinued operations in 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 2015 were combined with the cash flows from continuing operations within each of the three categories. |
Loss contingencies | dd. 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 standards | ee. Recently issued accounting standards 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. In September 2017, the FASB issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) adds SEC paragraphs pursuant to an SEC Staff Announcement made at the July 20, 2017 EITF Meeting, which addresses Transition Related to Accounting Standards Updates No. 2014-09, Revenue from Contracts with Customers (Topic 606), and No. 2016-02, Leases (Topic 842). The Company will adopt ASU No. 2014-09 using the modified retrospective transition method to contracts that are not completed contracts as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 will be presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Under ASC 606 revenues is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Under ASC 605 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. The Company has assessed the impact that adopting this new accounting guidance will have on its consolidated financial statements and disclosures. Based on its 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. 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 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 for the years ended December 31, 2015, 2016 and 2017. 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 has early adopted ASU 2017-04 in the third quarter of 2017 with the annual goodwill impairment tests. The adoption of ASU No. 2017-04 does not have a significant effect on its consolidated financial statements. In February 2018, the FASB issued guidance to address the income tax accounting treatment of the tax effects within other comprehensive income due to the enactment of the Tax Cuts and Jobs Act (the “Tax Act”). This guidance allows entities to elect to reclassify the tax effects of the change in the income tax rates from other comprehensive income to retained earnings. The guidance is effective for periods beginning after December 15, 2018 although early adoption is permitted. In March 2018, the FASB issued ASU No. 2018-05, Income Tax (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This update adds SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Act was signed into law. The Company has completed the assessment of the adoption of this guidance on its consolidated financial statements, and will monitor future guidance with respect to the Transition Tax Provisions under the Tax Act, and true up the estimate as appropriate within one year measurement period. 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 AC41
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | |
Schedule of the Company's Major Subsidiaries and VIEs | As of December 31, 2017, the Company’s major subsidiaries and VIEs include the following entities: Name Date of incorporation or establishment Place of Incorporation (or establishment) /operation Principal activity Subsidiaries 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 or acquisition 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 Ambow BSC Inc. February 14, 2017 United States Investment Holding Bay State College Inc. November 20, 2017 United States Career Enhancement 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 Ambow Rongye September 8, 2015 PRC Investment Holding Ambow Zhixin October 14, 2015 PRC Investment Holding IValley March 13, 2017 Taiwan 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 IValley Beijing September 15, 2017 PRC Others 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 | 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, 2016 2017 RMB RMB Total assets 750,264 706,096 Total liabilities 521,375 553,936 Years ended December 31, 2015 2016 2017 RMB RMB RMB Net revenue 385,819 409,391 426,118 Net income (loss) 370,818 (12,805) 41,636 |
Schedule of the Group's Cash and Cash Equivalents Held by Foreign Banks or Foreign Currency in PRC Banks | 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, 2016 and 2017: As of December 31, 2016 2017 RMB RMB VIEs in PRC 173,772 169,178 Non-VIEs in PRC 19,425 4,178 Total RMB 193,197 173,356 |
SIGNIFICANT ACCOUNTING POLICI42
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of Estimated Useful Lives for Calculation of Depreciation | Depreciation is calculated on a straight-line basis over the following estimated useful lives: 20 40 Motor vehicles 5 Office and computer equipment 3 10 Leasehold improvements Shorter of the remaining lease terms or estimated useful lives |
Schedule of Original Useful Lives of Intangible Assets | The intangible assets have original estimated useful lives as follows (See Note 11): Software 2 10 Student populations 1.8 15 Cooperative agreements 1.3 10 Favorable leases 0.8 20 Trade names Indefinite Brand Indefinit |
Schedule of Deferred Revenue Balances by Segments | Following are the deferred revenue balances by segments as of December 31, 2016 and 2017. As of December 31, 2016 2017 RMB RMB Career Enhancement 34,264 21,496 K-12 60,944 77,394 Tutoring 14,276 15,506 Total 109,484 114,396 |
CASH, CASH EQUIVALENTS AND RE43
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of 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, 2015 2016 2017 RMB RMB RMB Cash and cash equivalents 246,303 196,900 195,303 Restricted cash 2,050 2,350 2,350 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows 248,353 199,250 197,653 |
Schedule of Changes in Cash, Cash Equivalents and Restricted Cash | 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, 2015 2016 2017 RMB RMB RMB Changes in cash and cash equivalents included in assets held for sale 36,063 - - Changes in restricted cash included in assets held for sale 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 38,063 - - |
SHORT TERM INVESTMENTS (Tables)
SHORT TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHORT TERM INVESTMENTS [Abstract] | |
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, 2016 Amortized Cost Gross unrealized gain Estimated 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 As of December 31, 2017 Amortized Cost Gross unrealized gain Estimated RMB RMB RMB Short-term investments: Held-to-maturity investments Fixed-rate financial products 93,000 - 93,000 Available-for-sale investments Adjustable-rate financial products 128,000 42 128,042 |
Schedule of interest income recognized on held-to-maturity investments | Interest income recognized on held-to-maturity investments for years ended December 31, 2015, 2016 and 2017 were as follows: Year Ended December 31, 2015 2016 2017 2017 RMB RMB RMB USD Interest income recognized on held-to-maturity investments 7,027 4,078 3,799 584 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE, NET [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consisted of the following: As of December 31, 2016 2017 RMB RMB Accounts receivable 13,576 25,257 Less: Allowance for doubtful accounts - (746) Accounts receivable, net 13,576 24,511 Allowance for doubtful accounts: As of December 31, 2016 2017 RMB RMB Balance at beginning of year (116,615) - Addition (Note i) - (746) Written off 116,615 - Balance at end of year - (746) (Note i) Full provision was provided to receivables due from different customers due to the remote collectability as of December 31, 2017. No bad debt provision was provided for the years ended December 31, 2015 and 2016 . |
PREPAID AND OTHER CURRENT ASS46
PREPAID AND OTHER CURRENT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PREPAID AND OTHER CURRENT ASSETS, NET [Abstract] | |
Schedule of Prepaid and Other Current Assets | Prepaid and other current assets consisted of the following: As of December 31, 2016 2017 RMB RMB Amount due from minority shareholder (Note i) 54,023 - Amount due from Xihua Group (Note ii) 49,800 49,800 Value added tax refundable (Note iii) 24,811 5,165 Due from former owners 5,743 5,743 Staff advances 6,008 5,857 Rental deposits 7,835 3,804 Prepaid professional services fees 3,045 6,513 Prepaid rental fees 3,533 5,520 Receivable from Zhenjiang operating rights (Note iv) 35,000 35,000 Receivable from Jinghan Group (Note v) 122,822 - Others (Note vi) 20,302 23,327 Total before allowance for doubtful accounts 332,922 140,729 Less: allowance for doubtful accounts (Note vii) (179,055) (11,212) Total 153,867 129,517 |
Schedule of Allowance for Doubtful Accounts | Allowance for doubtful accounts: As of December 31, 2016 2017 RMB RMB Balance at beginning of year (195,254) (179,055) Addition (Note vii) (1,727) (2,690) Decrease due to disposal of subsidiary (Note iii) - 19,647 Written off (Note i and v) 17,926 150,886 Balance at end of year (179,055) (11,212) |
CONSIDERATION RECEIVABLE, NET (
CONSIDERATION RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CONSIDERATION RECEIVABLE, NET [Abstract] | |
Schedule of Consideration Receivables | Consideration receivables consisted of the following: As of December 31, 2016 2017 RMB RMB Receivables resulting from disposals (Note i) 14,000 - Less: allowance for doubtful accounts (Note i) (5,500) - Total 8,500 - |
LONG-TERM LOAN RECEIVABLE (Tabl
LONG-TERM LOAN RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE, NET [Abstract] | |
Schedule of Long-Term Loan Receivable | The following table sets forth the loan agreement in long-term loan receivable balance: Date Borrower Lender Amount Annual Repayment 4/5/2017 Suzhou Zhixinliren Investments Co., Limited (“Suzhou Zhixinliren”) Ambow Shengying 42,677 0 % 4/4/2019 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: As of December 31, 2016 2017 RMB RMB Buildings 64,222 127,914 Capital lease of property 12,000 12,000 Motor vehicles 6,173 4,054 Office and computer equipment 87,121 69,804 Leasehold improvements 70,321 72,542 Sub-total 239,837 286,314 Less: accumulated depreciation (151,830) (117,891) Total 88,007 168,423 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS, NET [Abstract] | |
Summary of Intangible assets | Intangible assets consisted of the following: As of December 31, 2016 2017 RMB RMB Gross carrying amount Trade names 48,908 48,908 Brand - 5,920 Student populations 38,380 39,818 Software 91,254 33,770 Customer relationships 5,270 5,270 Cooperative agreements 5,230 5,230 Favorable leases 63,237 63,237 Non-compete agreements 833 833 253,112 202,986 Less: Accumulated amortization Trade names - - Brand - - Student populations (36,964) (37,580) Software (89,138) (32,712) Customer relationships (5,270) (5,270) Cooperative agreements (3,046) (3,554) Favorable leases (23,153) (26,268) Non-compete agreements (833) (833) (158,404) (106,217) Intangible assets, net Trade names 48,908 48,908 Brand - 5,920 Student populations 1,416 2,238 Software 2,116 1,058 Customer relationships - - Cooperative agreements 2,184 1,676 Favorable leases 40,084 36,969 Non-compete agreements - - 94,708 96,769 |
Schedule of estimated amortization expenses of intangible assets for future annual periods | Based on the current amount of intangible assets subject to amortization, the estimated amortization expenses for each of the future annual periods is as follows: Amount RMB 2018 4,606 2019 4,520 2020 4,436 2021 3,491 2022 3,292 Thereafter 21,596 Total 41,941 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL [Abstract] | |
Schedule of changes in the carrying amount of goodwill by segment | The changes in the carrying amount of goodwill by reporting unit for the years ended December 31, 2016 and 2017 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, 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 Goodwill acquired during the year (Note 24) - - - 5,212 5,212 Balance as of December 31, 2017 7,772 25,710 33,482 39,684 73,166 |
OTHER NON-CURRENT ASSETS, NET (
OTHER NON-CURRENT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER NON-CURRENT ASSETS, NET [Abstract] | |
Schedule of Other Non-current Assets | As of December 31, 2016 2017 RMB RMB Prepayment for purchase of minority interest (Note i) - 4,504 Equity method investments 1,140 1,764 Prepayment for development of internal use software 1,779 1,211 Others 3,438 6,113 Total 6,357 13,592 (Note i) In 2017, the Group prepaid RMB 4,504 10 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUED AND OTHER LIABILITIES [Abstract] | |
Schedule of Accrued and Other Liabilities | Accrued and other liabilities consisted of the following: As of December 31, 2016 2017 RMB RMB Payable to Ambow Online (Note 27) - 137,532 Business tax, VAT and others 75,444 41,437 Payable balance with indemnity by Xihua Group (Note 7(ii)) 49,800 49,800 Accrual for rental 57,809 42,612 Payable to Zhenjiang Foreign Language School (Note 7(vi)) 36,770 36,770 Accrued payroll and welfare 34,567 27,383 Payable to Jinghan Group (Note 7(vii)) 25,959 - Professional service fees payable 28,368 20,850 Receipt in advance 11,207 18,578 Amounts due to students 19,156 11,423 Lawsuit penalty payable 2,176 2,315 Employee reimbursement payable 6,927 - Others 24,638 30,298 Total 372,821 418,998 |
LONG-TERM BORROWING FROM THIR54
LONG-TERM BORROWING FROM THIRD PARTY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CONVERTIBLE LOAN [Abstract] | |
Schedule Of Long Term Borrowings From Third Parties | Date Borrower Lender Amount Original Amount Annual Repayment 4/5/2017 Ambow Education Holding Ltd. Sino Accord 39,205 6,000 0 % 4/4/2019 |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE BASED COMPENSATION [Line Items] | |
Summary of Share Option Activity | A summary of the share option activity as of December 31, 2015, 2016 and 2017 is as follows: Year ended December 31, 2015 Year ended December 31, 2016 Year ended December 31, 2017 Shares Weighted Weighted Aggregate Shares Weighted Weighted Aggregate Shares Weighted Weighted Aggregate RMB RMB RMB RMB RMB RMB Outstanding at beginning 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 Granted - - - - - - - - - - - - Exercised - - - - - - - - - - - - Forfeited or expired (39,923) 3.08 - - (130,733) 3.30 - - (2,801) 3.09 - - Outstanding at end of year 387,350 3.08 2.59 3,836 256,617 3.30 2.84 4,499 253,816 3.09 1.86 1,186 Exercisable at end of year 387,350 3.08 2.63 1,435 256,617 3.30 2.84 4,499 253,816 3.09 1.86 1,186 Expected to be vested - - - - - - - - - - - - |
Schedule of restricted stock awards activities | A summary of the restricted stock awards as of December 31, 2016 and 2017 is as follows: Year ended December 31, 2016 Shares Grant-date fair Weighted Average 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 - Year ended December 31, 2017 Shares Grant-date fair value Weighted Average RMB Outstanding at beginning of year 415,521 22.28 1.89 Granted - - - Issued (216,259) 21.25 - Forfeited or expired (2,625) 20.36 1.47 Outstanding at end of year 196,637 20.50 1.29 Shares vested but not issued at end of year 49,500 21.44 - |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TAXATION [Abstract] | |
Schedule of Significant Components of Provision for Income Taxes on Earnings | Significant components of the provision for income taxes on earnings for the years ended December 31, 2015, 2016 and 2017 are as follows: Years ended December 31, 2015 2016 2017 RMB RMB RMB Current: PRC 8,562 4,881 11,648 U.S. - - 93 Deferred: PRC (127,525) 1,030 (2,161) U.S. - - 34 Provision for income tax expenses (benefits) (118,963) 5,911 9,614 |
Schedule of Principal Components of the Group's Deferred Tax Assets and Liabilities | The principal components of the Group’s deferred tax assets and liabilities were as follows: As of December 31 2016 2017 RMB RMB Deferred tax asset: Accrued expense 7,002 7,028 Allowance for doubtful accounts 73,907 47,593 Tax loss carried forward 445,263 359,908 Deferred advertising expense 11,519 670 Impairment of long-lived tangible assets 24,600 19,691 Others 4,273 - Total deferred tax assets 566,564 434,890 Valuation allowance (536,838) (403,485) Deferred tax assets, net of valuation allowance 29,726 31,405 Deferred tax liabilities: - Unrecognized valuation surplus and deficit - acquisition 77,825 79,834 - Unrecognized valuation surplus and deficit - decrease due to amortization and impairment (55,605) (56,677) - Unrealized profit of short-term investments 952 26 Total deferred tax liabilities 23,172 23,183 Deferred tax assets, net of valuation allowance and deferred tax liabilities 6,554 8,222 |
Summary of amounts and expiration dates of operating loss carryforward | The following represents the amounts and expiration dates of operating loss carried forwards for tax purpose: Amount RMB 2018 374,479 2019 210,296 2020 85,336 2021 62,867 2022 and thereafter 707,550 Total 1,440,528 |
Schedule of Roll-forward of Valuation Allowance | As of December 31, 2015 2016 2017 RMB RMB RMB Balance at beginning of the year 539,704 530,358 536,838 Allowance made during the year 30,873 6,480 10,764 Allowance resulting from the reconsolidation of previously deconsolidated entities 1,352 - - Decrease due to disposal of subsidiaries - - (120,069) Reversals (41,571) - (24,048) Balance at end of the year 530,358 536,838 403,485 |
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 | Reconciliation between total income tax expense and the amount computed by applying the PRC statutory income tax rate to income before income taxes is as follows: Years ended December 31, 2015 2016 2017 % % % PRC statutory income tax rate 25 % 25 % 25 % Impact of different tax rates in other jurisdictions - - (6) % Tax effect of non-deductible expenses 0 % (1) % 15 % Tax effect of non-taxable income 0 % 1 % (13) % Tax effect of tax-exempt entities (9) % (10) % 7 % Tax effect of deemed profit 0 % (1) % 0 % Tax effect of disposed entity 13 % 0 % 0 % Tax penalty 0 % (4) % 2 % Changes in valuation allowance 2 % (29) % (12) % Effective tax rate 31 % (19) % 18 % |
Schedule of Reconciliation of Beginning and Ending Amount of Liabilities Associated with 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, 2015 2016 2017 RMB RMB RMB Unrecognized tax benefits, beginning of year 15,011 23,648 25,323 Increases related to current tax positions 4,948 1,675 5,941 Addition from the consolidation of previously deconsolidated subsidiaries 3,689 - - Decrease due to disposal of subsidiaries (Note 27) - - (6,645) Unrecognized tax benefits, end of year 23,648 25,323 24,619 |
NET INCOME_LOSS PER SHARE (Tabl
NET INCOME/LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
NET INCOME/LOSS PER SHARE [Abstract] | |
Schedule of Computation of Basic and Diluted 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, 2015 2016 2017 RMB RMB RMB Numerator: Numerator for basic and diluted (loss) income from continuing operations per share (277,048) (35,700) 46,463 Numerator for basic and diluted income from discontinued operations per share 340,787 - - Denominator: Denominator for basic (loss) income per share weighted average ordinary shares outstanding 36,848,816 38,469,234 38,826,800 Denominator for diluted (loss) income per share weighted average ordinary shares outstanding 36,848,816 38,469,234 39,303,760 Basic (loss) income per share - continuing operations (7.52) (0.93) 1.20 Diluted (loss) income per share- continuing operations (7.52) (0.93) 1.18 Basic and diluted income per share- discontinued operations 9.25 - - |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of December 31, 2017 were as follows: Amount RMB 2018 33,774 2019 23,797 2020 14,311 2021 12,115 2022 13,104 Thereafter 64,248 Total 161,349 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION [Abstract] | |
Schedule of Revenues, Cost of Revenues, and Gross Profit by Segment | (RMB in thousands) Better School Better Job Tutoring K-12 Subtotal Career 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 OPERATING EXPENSES Selling and marketing (7,690) (964) (8,654) (38,976) (47,630) General and administrative (18,601) (37,787) (56,388) (48,337) (104,725) Research and development (1,773) - (1,773) (321) (2,094) Impairment loss (2,702) - (2,702) (7,630) (10,332) Unallocated corporate expenses - - - - (341,023) Total operating expenses (30,766) (38,751) (69,517) (95,264) (505,804) OPERATING (LOSS) INCOME (16,926) 31,177 14,251 (29,262) (356,034) OTHER INCOME (EXPENSE) Interest (expenses) income, net (307) 22 (285) (2,100) (2,385) Foreign exchange gain, net 10 - 10 24 34 Other (loss) income, net (7,966) (237) (8,203) 665 (7,538) Loss (income) on reconsolidation of previously deconsolidated entities (23,908) - (23,908) 6,439 (17,469) Gain on sale of investment available for sale - 1,971 1,971 - 1,971 Unallocated corporate other expenses - - - - (13,984) Total other (expenses) income (32,171) 1,756 (30,415) 5,028 (39,371) (LOSS) INCOME BEFORE INCOME TAX, NON-CONTROLLING INTERESTS AND DISCONTINUED OPERATIONS (49,097) 32,933 (16,164) (24,234) (395,405) For the year ended December 31, 2016 (RMB in thousands) Better School Better Job Tutoring K-12 Subtotal Career 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 OPERATING EXPENSES Selling and marketing (5,516) (1,065) (6,581) (30,810) (37,391) General and administrative (21,929) (42,205) (64,134) (34,023) (98,157) Research and development (1,445) - (1,445) (924) (2,369) Impairment loss (21,779) - (21,779) (623) (22,402) Unallocated corporate expenses - - - - (56,986) Total operating expenses (50,669) (43,270) (93,939) (66,380) (217,305) OPERATING (LOSS) INCOME (36,149) 41,489 5,340 7,615 (44,031) OTHER INCOME (EXPENSE) Interest income 106 106 212 186 398 Foreign exchange gain, net - - - 12 12 Other (loss) income, net (2,514) 195 (2,319) (1,714) (4,033) Gain on sale of investment available for sale - 2,464 2,464 138 2,602 Unallocated corporate other income - - - - 13,945 Total other (expenses) income (2,408) 2,765 357 (1,378) 12,924 (LOSS) INCOME BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS (38,557) 44,254 5,697 6,237 (31,107) Segment assets 118,083 363,317 481,400 187,362 668,762 Unallocated corporate assets - - - - 284,261 TOTAL ASSETS 118,083 363,317 481,400 187,362 953,023 For the year ended December 31, 2017 (RMB in thousands) Better School Better Job Tutoring K-12 Subtotal Career Others Consolidated RMB RMB RMB RMB RMB Net Revenues 55,371 232,433 287,804 144,950 11,170 443,924 Cost of revenues (26,426) (152,509) (178,935) (70,465) (6,995) (256,395) GROSS PROFIT 28,945 79,924 108,869 74,485 4,175 187,529 OPERATING EXPENSES Selling and marketing (4,220) (1,356) (5,576) (26,656) - (32,232) General and administrative (16,411) (40,681) (57,092) (34,466) (12) (91,570) Research and development (241) - (241) (407) - (648) Unallocated corporate expenses - - - - - (60,774) Total operating expenses (20,872) (42,037) (62,909) (61,529) (12) (185,224) OPERATING INCOME 8,073 37,887 45,960 12,956 4,163 2,305 OTHER INCOME (EXPENSE) Interest income 252 804 1,056 171 - 1,227 Foreign exchange gain, net - - - 47 - 47 Gain on disposal of subsidiaries 4,540 - 4,540 - - 4,540 Other income (loss), net 10,402 1,025 11,427 (4,348) - 7,079 Gain on sale of investment available for sale - 5,594 5,594 1,958 - 7,552 Unallocated corporate other income - - - - - 32,789 Total other income (loss) 15,194 7,423 22,617 (2,172) - 53,234 INCOME BEFORE INCOME TAX AND 23,267 45,310 68,577 10,784 4,163 55,539 Segment assets 118,403 370,251 488,654 172,690 8,085 669,429 Unallocated corporate assets - - - - - 307,991 TOTAL ASSETS 118,403 370,251 488,654 172,690 8,085 977,420 |
PRC CONTRIBUTION AND PROFIT A60
PRC CONTRIBUTION AND PROFIT APPROPRIATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PRC CONTRIBUTION AND PROFIT APPROPRIATION [Abstract] | |
Schedule of Appropriations to General Reserve Fund, Statutory Surplus Reserve and Education Development Reserve | The following table presents the Group’s appropriations to the general reserve fund, statutory surplus reserve and education development reserve as of December 31, 2016 and 2017: As of December 31, 2016 2017 RMB RMB General and statutory surplus reserve 59,309 17,348 Education development reserve 21,698 2,688 Total 81,007 20,036 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACQUISITIONS [Line Items] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Date of Purchase Goodwill Intangibles Amortizable Entity acquired during the year ended December 31, 2017 RMB RMB RMB RMB (1) Bay State College Inc. November 20, 2017 22,830 5,212 5,920 1,438 |
Schedule of Purchase Price Allocation Based on Fair Values of Acquired Assets and Liabilities | The purchase price was allocated based on the fair values of the acquired assets and liabilities as of the acquisition date as follows: RMB Amortization Period (in years) Cash and cash equivalents 15,231 Prepaid and other current assets 3,921 Property and equipment 9,096 Intangible assets: Brand 5,920 Indefinite Students population 1,438 3.3 Goodwill 5,212 Other non-current assets 745 Total assets 41,563 Deferred revenue (3,685) Accounts payable (1,555) Accrued and other liabilities (9,004) Income tax payable 20 Other non-current liabilities (3,143) Deferred tax assets, net of deferred tax liabilities (1,366) Total 22,830 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Schedule of Transactions with Related Parties | The Group entered into the following transactions with related parties: Years ended December 31, Transactions 2015 2016 2017 RMB RMB RMB Repayments to Executive Principal of Ambow Research Center (Note i) (3,960) - - Collection from A, a member of management team of the Company (1,670) - - Repaid to A, a member of management team of the Company (Note ii) (1,350) - - Loan to/(collection from) a member of management team of Beijing SIWA Century Zhisheng Education Technology Co., Ltd. (“Century Zhisheng”) (Note iii) 199 (24) - Loan to Suzhou Chengpingheng Software Engineering Co., Ltd , an entity controlled by a member of management team of Century Zhisheng (Note iii) 138 - - Borrowing from a member of management team of Century Zhisheng (iii) 1,089 - - Loan to (Settlement of loan with) B, a member of management team of the Company 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 borrowings from A, a member of management team of the Company, were fully repaid in 2015. Note (iii) The loans to a member of management team of Century Zhisheng and borrowings from entities controlled by a member of management team of Century Zhisheng were made for operation purpose without interest bearing and maturity date. In 2017, the member of management team of Century Zhisheng was resigned, led to the reclassification of respective amounts due from and due to such member from related party to a third party. |
Schedule of Balances with Related Parties | The Group had the following balances with related parties: Amounts due to related parties As of December 31, As of December 31, Relationship 2016 2017 2016 2017 RMB RMB RMB RMB A, a member of management team of the Company 1,100 - - - A member of management team of Century Zhisheng (Note 25 a (iii)) 185 - 4,232 - Entity controlled by a member of management team of Century Zhisheng - Suzhou Chengpingheng Software Engineering Co., Ltd (Note 25a (iii)) 138 - - - Entity controlled by Executive Principal of Ambow Research Center - Shandong Shichuang Software Engineering Co., Ltd. (Note 25 a (iii)) - - 3,430 3,430 B, a member of management team of the Company 400 - - - 1,823 - 7,662 3,430 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Jinghan Group [Member] | |
Discontinued operations [Line Items] | |
Schedule of Revenues and Income (Loss) from Discontinued Pperations | Following are revenue and income (loss) from discontinued operation: Jinghan Group Years ended December, 31 2015 2016 2017 RMB RMB RMB Revenues 171,938 - - Impairment loss - - - Loss from discontinued operation (4,499) - - Income tax benefit 1,385 - - Loss from discontinued operation, net of income tax (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 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, 2017 | |
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 | At December 31, 2017 and 2016 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 Significant Significant As of December 31, 2017 Assets: Short term investments, available for sale 128,042 128,042 - - Fair Value Measurements at Reporting Date Using Total Fair Quoted Prices Significant Significant As of December 31, 2016 Assets: Short term investments, available for sale 174,811 174,811 - - |
Schedule of Quantitative Information about Level 3 Fair Value Measurements of Property and Equipment, Other Non-current Assets and Intangible Assets | The following table presents the quantitative information about the Group’s Level 3 fair value measurements of intangible assets on a nonrecurring basis in 2016 and 2017, which utilize significant unobservable internally-developed inputs: Fair value Valuation Unobservable inputs Range Intangible assets in 2016 115,941 Relief-from-royalty Royalty rate 0%-9% Intangible assets in 2017 91,249 Relief-from-royalty Royalty rate 1%-6% |
CONCENTRATIONS (Tables)
CONCENTRATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2016 2017 Debtors RMB % RMB % Accounts receivable Company A 1,313 10 % 1 - Company B - - 5,656 23 % Prepaid and other current assets Company C 49,800 32 % 49,800 38 % Company D 35,000 23 % 35,000 27 % Company E 25,959 17 % - - Other non-current assets Company F 1,570 25 % 1,281 9 % Company G - - 4,504 33 % Consideration receivable Company H 8,500 100 % - - |
ADDITIONAL INFORMATION - COND66
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2017 | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |
Schedule of Information of Consolidating Balance Sheets | As of December 31, 2016 2017 2017 RMB RMB US$ Note 3(a) ASSETS Current assets: Cash and cash equivalents 1,467 323 50 Amounts due from related parties 183,676 261,867 40,249 Prepaid expenses and other current assets 341 2,770 426 Total current assets 185,484 264,960 40,725 Non-current assets: Property and equipment, net - - - Intangible assets, net 8 - - Investment in subsidiaries - - - Total non-current assets 8 - - Total assets 185,492 264,960 40,725 LIABILITIES Current liabilities: Amounts due to related parties 19,605 17,325 2,663 Accrued and other liabilities 49,371 41,196 6,334 Total current liabilities 68,976 58,521 8,997 Non-current liabilities: Long-term borrowing from third party - 39,205 6,026 Total non-current liabilities - 39,205 6,026 Total liabilities 68,976 97,726 15,023 SHAREHOLDERS’ EQUITY Preferred shares (US$ 0.003 par value; 1,666,667 shares authorized, nil issued and outstanding as of December 31, 2016 and 2017) - - - Class A Ordinary shares (US$ 0.003 par value; 66,666,667 and 66,666,667 shares authorized; 33,990,680 and 34,206,939 shares issued and outstanding as of December 31, 2016 and 2017, respectively) 636 640 98 Class C Ordinary shares (US$ 0.003 par value; 8,333,333 and 8,333,333 shares authorized; 4,708,415 and 4,708,415 shares issued and outstanding as of December 31, 2016 and 2017, respectively) 90 90 14 Additional paid-in capital 3,453,227 3,456,307 531,225 Accumulated deficit (3,343,142) (3,296,679) (506,691) Accumulated other comprehensive income 5,705 6,876 1,056 Total shareholders’ equity 116,516 167,234 25,702 Total liabilities and shareholders’ equity 185,492 264,960 40,725 |
Schedule of Information of Consolidating Statement of Operations | Years ended December 31, 2015 2016 2017 2017 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 (410) - - - General and administrative (79,562) (18,854) (13,457) (2,068) Research and development (660) - - - Total operating expenses (80,632) (18,854) (13,457) (2,068) OPERATING LOSS (80,632) (18,854) (13,457) (2,068) Share of (loss) income from subsidiaries 201,051 (23,274) 59,933 9,212 OTHER EXPENSE Interest (expense) income, net (56,549) 1 2 - Foreign exchange losses, net (131) - - - Other income (expense), net - 6,427 (15) (2) Income tax - - - - NET INCOME (LOSS) 63,739 (35,700) 46,463 7,142 |
Schedule of Information of Consolidating Statement of Cash Flows | Years ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ Note 3(a) Cash flows from operating activities (40,384) (6,348) (18,255) (2,806) Cash flows from investing activities - - (1,556) (239) Cash flows from financing activities 48,876 (843) 18,667 2,869 Effects of exchange rate changes on cash and cash equivalents - - - - Net change in cash and cash equivalents 8,492 (7,191) (1,144) (176) Cash and cash equivalents at beginning of year 166 8,658 1,467 225 Cash and cash equivalents at end of year 8,658 1,467 323 50 Supplemental disclosure of cash flow information 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 - - - |
ORGANIZATION AND PRINCIPAL AC67
ORGANIZATION AND PRINCIPAL ACTIVITIES (Narrative) (Details) ¥ in Thousands | Sep. 04, 2015 | Aug. 05, 2010$ / sharesshares | Aug. 31, 2017CNY (¥) | Nov. 20, 2017 | Feb. 14, 2017 | Apr. 08, 2015 |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||
Stockholders' Equity, Reverse Stock Split | 1-for-30 | |||||
Ambow BSC Inc [Member] | ||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||
Bay State College Inc [Member] | ||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||
Ambow Online [Member] | ||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||
Disposal of Equity Interest In Subsidiary, Ownership Percentage | 100.00% | |||||
Twenty First Century Training Center [Member] | ||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||
Disposal of Equity Interest In Subsidiary, Ownership Percentage | 100.00% | |||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | ¥ | ¥ 1 | |||||
Jinghan Group [Member] | ||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||
Disposal percentage | 100.00% | |||||
Ambow Jingxue [Member] | ||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||
Disposal percentage | 64.00% | |||||
American Depository Shares [Member] | ||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Line Items] | ||||||
Number of shares issued | shares | 355,907 | |||||
Issue price of American depositary shares (in dollars per share) | $ / shares | $ 300 |
ORGANIZATION AND PRINCIPAL AC68
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, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | |
VIE arrangements [Line Items] | |||||
Total assets | ¥ 977,420 | ¥ 953,023 | $ 150,226 | ||
Total liabilities | 811,461 | 838,002 | $ 124,719 | ||
Net (loss) income | 45,925 | $ 7,060 | (37,018) | ¥ 64,356 | |
Consolidated variable interest entity without recourse [Member] | |||||
VIE arrangements [Line Items] | |||||
Total assets | 706,096 | 750,264 | |||
Total liabilities | 553,936 | 521,375 | |||
Net revenue | 426,118 | 409,391 | 385,819 | ||
Net (loss) income | ¥ 41,636 | ¥ (12,805) | ¥ 370,818 |
ORGANIZATION AND PRINCIPAL AC69
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, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
VIE arrangements [Line Items] | ||||
Cash and cash equivalents | ¥ 195,303 | $ 30,018 | ¥ 196,900 | ¥ 246,303 |
Non-VIEs [Member] | China [Member] | ||||
VIE arrangements [Line Items] | ||||
Cash and cash equivalents | 4,178 | 19,425 | ||
Group [Member] | China [Member] | ||||
VIE arrangements [Line Items] | ||||
Cash and cash equivalents | 173,356 | 193,197 | ||
Variable Interest Entity Primary Beneficiary [Member] | ||||
VIE arrangements [Line Items] | ||||
Cash and cash equivalents | 181,181 | |||
Variable Interest Entity Primary Beneficiary [Member] | China [Member] | ||||
VIE arrangements [Line Items] | ||||
Cash and cash equivalents | ¥ 169,178 | ¥ 173,772 |
GOING CONCERN (Details)
GOING CONCERN (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | |
Going Concern [Line Items] | |||||
Loss from continued operations | ¥ 45,925 | $ 7,060 | ¥ (37,018) | ¥ (276,442) | |
Unrestricted cash and cash equivalents | 195,303 | 196,900 | ¥ 246,303 | $ 30,018 | |
Amount by which consolidated current liabilities exceeded consolidated current assets | 189,829 | ||||
Consolidated net assets | 165,959 | ||||
Total lease commitment amount | 161,349 | ||||
Lease commitment within one year | 33,774 | ||||
Short term investments, available for sale | 128,042 | 174,811 | 19,680 | ||
Short term investments, held to maturity | 93,000 | 64,700 | $ 14,294 | ||
Goodwill and Intangible Asset Impairment | 22,402 | ||||
Asset Impairment Charges | 1,727 | ¥ 5,090 | |||
Gain (Loss) on Disposition of Stock in Subsidiary | 38,145 | ||||
Variable Interest Entity Primary Beneficiary [Member] | |||||
Going Concern [Line Items] | |||||
Unrestricted cash and cash equivalents | ¥ 181,181 |
SIGNIFICANT ACCOUNTING POLICI71
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Aug. 31, 2017 | |
Basis of presentation | ||||
Exchange rate | 6.5063 | |||
Original maturity period of term deposits | 3 months | |||
Advertising expenses of continuing operations | ¥ 2,701 | ¥ 1,857 | ¥ 1,858 | |
Ambow Online [Member] | ||||
Basis of consolidation | ||||
Disposal of Equity Interest In Subsidiary, Ownership Percentage | 100.00% | |||
Minimum [Member] | ||||
Basis of consolidation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 1 year | |||
Maximum [Member] | ||||
Basis of consolidation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years |
SIGNIFICANT ACCOUNTING POLICI72
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives for Calculation of Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 | 10 years |
Leaseholds and Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the remaining lease terms or estimated useful lives |
SIGNIFICANT ACCOUNTING POLICI73
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Original Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 |
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 |
Trademarks and Trade Names [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite Lived Intangible Asset Estimated Useful Lives | Indefinite |
Brands [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite Lived Intangible Asset Estimated Useful Lives | Indefinite |
SIGNIFICANT ACCOUNTING POLICI74
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Deferred Revenue Balances by Segments) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Significant Accounting Policies [Line Items] | |||
Deferred revenue balances | ¥ 114,396 | $ 17,582 | ¥ 109,484 |
Career Enhancement [Member] | |||
Significant Accounting Policies [Line Items] | |||
Deferred revenue balances | 21,496 | 34,264 | |
K12 Schools [Member] | |||
Significant Accounting Policies [Line Items] | |||
Deferred revenue balances | 77,394 | 60,944 | |
Tutoring [Member] | |||
Significant Accounting Policies [Line Items] | |||
Deferred revenue balances | ¥ 15,506 | ¥ 14,276 |
CASH, CASH EQUIVALENTS AND RE75
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Summary of Reconciliation of Cash, Cash Equivalents, and Restricted Cash) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Cash and cash equivalents | ¥ 195,303 | $ 30,018 | ¥ 196,900 | ¥ 246,303 |
Restricted cash | 2,350 | $ 361 | 2,350 | 2,050 |
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | ¥ 197,653 | ¥ 199,250 | ¥ 248,353 |
CASH, CASH EQUIVALENTS AND RE76
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Summary of Reconciliation of Changes in Cash, Cash Equivalents, and Restricted Cash) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Changes in cash and cash equivalents included in assets held for sale | ¥ 0 | ¥ 0 | ¥ 36,063 | |
Changes in restricted cash included in assets held for sale | 0 | 0 | 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 | ¥ 0 | $ 0 | ¥ 0 | ¥ 38,063 |
SHORT TERM INVESTMENTS (Narrati
SHORT TERM INVESTMENTS (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
OTTI loss, held-to-maturity investments | $ 0 |
OTTI loss, available-for-sale investments | $ 0 |
Maximum [Member] | |
Derivative, Remaining Maturity | 35 days |
Derivative, Fixed Interest Rate | 6.00% |
Minimum [Member] | |
Derivative, Remaining Maturity | 30 days |
Derivative, Fixed Interest Rate | 4.89% |
SHORT TERM INVESTMENTS (Schedul
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 (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed-Rate Financial Products [Member] | ||
Held-to-maturity investments | ||
Amortized Cost | ¥ 93,000 | ¥ 64,700 |
Gross unrealized gain in accumulated other comprehensive income | 0 | 0 |
Estimated Fair value | 93,000 | 64,700 |
Adjustable-Rate Financial Products [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 128,000 | 171,163 |
Gross unrealized gain in accumulated other comprehensive income | 42 | 3,648 |
Estimated Fair value | ¥ 128,042 | ¥ 174,811 |
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, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Interest income recognized on held-to-maturity investments | ¥ 3,799 | $ 584 | ¥ 4,078 | ¥ 7,027 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | ||
ACCOUNTS RECEIVABLE, NET | ||||||
Accounts receivable | ¥ 25,257 | ¥ 13,576 | ||||
Less: Allowance for doubtful accounts | ¥ 0 | ¥ 0 | (746) | 0 | ||
Accounts receivable, net | ¥ 24,511 | $ 3,767 | ¥ 13,576 | |||
Allowance for doubtful accounts: | ||||||
Balance at beginning of year | 0 | (116,615) | ||||
Addition | [1] | (746) | 0 | |||
Written off | 0 | 116,615 | ||||
Balance at end of year | ¥ (746) | ¥ 0 | ||||
[1] | Full provision was provided to receivables due from different customers due to the remote collectability as of December 31, 2017. No bad debt provision was provided for the years ended December 31, 2015 and 2016. |
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, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
Amount due from minority shareholder | [1] | ¥ 0 | ¥ 54,023 | |
Amount due from Xihua Group | [2] | 49,800 | 49,800 | |
Payable balance recorded by a subsidiary prior to be acquired by the Group | 49,800 | 49,800 | ||
Value added tax refundable | [3] | 5,165 | 24,811 | |
Due from former owners | 5,743 | 5,743 | ||
Staff advances | 5,857 | 6,008 | ||
Rental deposits | 3,804 | 7,835 | ||
Prepaid professional services fees | 6,513 | 3,045 | ||
Prepaid rental fees | 5,520 | 3,533 | ||
Receivable from Zhenjiang operating rights | [4] | 35,000 | 35,000 | |
Receivable from Jinghan Group | [5] | 0 | 122,822 | |
Others | [6] | 23,327 | 20,302 | |
Total before allowance for doubtful accounts | 140,729 | 332,922 | ||
Less: allowance for doubtful accounts | [7] | (11,212) | (179,055) | |
Total | ¥ 129,517 | $ 19,906 | ¥ 153,867 | |
[1] | The balance represented Shenyang K-12’s amount due from its minority shareholder amounting to RMB 54,023, which was tuition fees that have been collected from students but were misappropriated by its minority shareholder. As of December 31, 2016, full provision was provided as the collectability was remote. As of December 31, 2017, such provision was 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 statements. | |||
[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 19(c), the Group provided a provision amounting to RMB 24,811 as of December 31, 2016. The Group disposed Ambow Online to a third party as at August 31, 2017, please see Note 27 for detail. VAT refundable of Ambow Online and the relative bad debt amount of RMB 19,647 were derecognized accordingly. | |||
[4] | 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, 2016 and 2017, the payable balance to Zhenjiang Foreign Language School amounted to RMB 36,770 and RMB 36,770, respectively (Note 14); therefore, no provision was made. As of the date of issuance of the financial statements, the negotiation was still in progress. | |||
[5] | In the year ended December 31, 2017, bad debt provision of RMB 96,863 was written off after all collection efforts have been exhausted and the potential for recovery was remote; and the rest receivable of RMB 25,959 was net off with the payable after assessing the remote possibility to collect from and pay to Jinghan Group. | |||
[6] | Others mainly included inventory, prepaid education supplies, prepaid outsourcing service fee, and other miscellaneous items with trivial amounts. | |||
[7] | Other addition of allowance during the years of 2017 and 2016 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, 2017 | Dec. 31, 2016 | ||
Allowance for doubtful accounts: | |||
Balance at beginning of year | ¥ (179,055) | ¥ (195,254) | |
Addition | [1] | (2,690) | (1,727) |
Decrease due to disposal of subsidiary | [2] | 19,647 | 0 |
Written off | [3],[4] | 150,886 | 17,926 |
Balance at end of year | ¥ (11,212) | ¥ (179,055) | |
[1] | Other addition of allowance during the years of 2017 and 2016 was mainly provided against third parties and former employees due to the remote recoverability. | ||
[2] | 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 19(c), the Group provided a provision amounting to RMB 24,811 as of December 31, 2016. The Group disposed Ambow Online to a third party as at August 31, 2017, please see Note 27 for detail. VAT refundable of Ambow Online and the relative bad debt amount of RMB 19,647 were derecognized accordingly. | ||
[3] | In the year ended December 31, 2017, bad debt provision of RMB 96,863 was written off after all collection efforts have been exhausted and the potential for recovery was remote; and the rest receivable of RMB 25,959 was net off with the payable after assessing the remote possibility to collect from and pay to Jinghan Group. | ||
[4] | The balance represented Shenyang K-12’s amount due from its minority shareholder amounting to RMB 54,023, which was tuition fees that have been collected from students but were misappropriated by its minority shareholder. As of December 31, 2016, full provision was provided as the collectability was remote. As of December 31, 2017, such provision 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) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Consideration allocated | |||
Payable to Zhenjiang Foreign Language School | ¥ 36,770 | ¥ 36,770 | |
Allowance for Doubtful Accounts Receivable, Write-offs | [1],[2] | 150,886 | ¥ 17,926 |
Prepaid Expense and Other Assets | 25,959 | ||
Ambow Online [Member] | |||
Consideration allocated | |||
Allowance for Doubtful Accounts Receivable, Write-offs | 19,647 | ||
Jinghan Group [Member] | |||
Consideration allocated | |||
Allowance for Doubtful Accounts Receivable, Write-offs | ¥ 96,863 | ||
[1] | In the year ended December 31, 2017, bad debt provision of RMB 96,863 was written off after all collection efforts have been exhausted and the potential for recovery was remote; and the rest receivable of RMB 25,959 was net off with the payable after assessing the remote possibility to collect from and pay to Jinghan Group. | ||
[2] | The balance represented Shenyang K-12’s amount due from its minority shareholder amounting to RMB 54,023, which was tuition fees that have been collected from students but were misappropriated by its minority shareholder. As of December 31, 2016, full provision was provided as the collectability was remote. As of December 31, 2017, such provision was written off after all collection efforts have been exhausted and the potential for recovery was remote. |
CONSIDERATION RECEIVABLE, NET84
CONSIDERATION RECEIVABLE, NET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables resulting from disposals | [1] | ¥ 0 | ¥ 14,000 | |
Less: allowance for doubtful accounts | [1] | 0 | (5,500) | |
Total | ¥ 0 | $ 0 | ¥ 8,500 | |
[1] | The cost of consideration receivable came from the disposal of subsidiaries in 2011. Bad debt of RMB 5,500 has been provided in past few years. In the year ended December 31, 2017, the Company reached an agreement with the third party to offset the receivable due from and payable due to it at amount of RMB 8,500, and bad debt provision of RMB 5,500 was written off after all collection efforts have been exhausted and the potential for recovery was remote. |
LONG-TERM LOAN RECEIVABLE (Deta
LONG-TERM LOAN RECEIVABLE (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Loans Repayment Due Date | Apr. 4, 2019 |
Loans Receivable Grant Date | Apr. 5, 2017 |
Loans Receivable Borrower Name | Suzhou Zhixinliren Investments Co., Limited (“Suzhou Zhixinliren”) |
Loans Receivable Lender Name | Ambow Shengying |
Loans Receivable Granted | ¥ 42,677 |
Loans Receivable With Fixed Rate Of Interest | 0.00% |
LONG-TERM LOAN RECEIVABLE (Narr
LONG-TERM LOAN RECEIVABLE (Narrative) (Details) ¥ in Thousands | Apr. 05, 2017CNY (¥) | Apr. 05, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Loans Receivable Granted | ¥ 42,677 | ||||
Loans Receivable, Net | 42,677 | ||||
Offsetting Loans Payable | $ | $ 6,000,000 | ||||
Offsetting Loans Receivables | 42,677 | ||||
Sino Accord [Member] | |||||
Loan Receivable Agreement | ¥ 39,205 | $ 6,000,000 | |||
Suzhou Zhixinliren [Member] | |||||
Loans Receivable Granted | ¥ 42,677 | ||||
Loans Receivable, Net | ¥ 42,677 | $ 0 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥)a | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($)a | Mar. 01, 2012CNY (¥) | Dec. 30, 2010CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||||
Sub-total | ¥ 286,314 | ¥ 239,837 | ||||
Less: accumulated depreciation | (117,891) | (151,830) | ||||
Total | 168,423 | 88,007 | $ 25,886 | |||
Depreciation expenses of continuing operations | 17,103 | 17,620 | ¥ 25,048 | |||
Net carrying value of certain buildings for which the Group is in the process of applying for building ownership certificates | 33,913 | |||||
Earnest Money Deposits | ¥ 0 | 71,024 | $ 0 | |||
Area of Land | a | 1,500 | 1,500 | ||||
Ambow Beijing Campus And Shenyang K12 [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Depreciation expenses of continuing operations | ¥ 600 | 600 | 2,419 | |||
Capital leases of properties | 4,350 | 3,750 | ¥ 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 | 127,914 | 64,222 | ||||
Assets Held Under Capital Leases [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Sub-total | 12,000 | 12,000 | ||||
Tangible Asset Impairment Charges | ¥ 38,814 | |||||
Vehicles [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Sub-total | 4,054 | 6,173 | ||||
Office And Computer Equipment [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Sub-total | 69,804 | 87,121 | ||||
Lease hold Improvements [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Sub-total | ¥ 72,542 | ¥ 70,321 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INTANGIBLE ASSETS, NET [Line Items] | |||
Amortization expenses for intangible assets of continuing operations | ¥ 4,782 | ¥ 6,786 | ¥ 10,707 |
Amortization expenses for intangible assets of continuing operations included in cost of sales | ¥ 1,393 | 2,466 | 3,061 |
Trade name [Member] | |||
INTANGIBLE ASSETS, NET [Line Items] | |||
Impairment loss | ¥ 2,655 | ¥ 9,639 |
INTANGIBLE ASSETS, NET (Summary
INTANGIBLE ASSETS, NET (Summary of Intangible Assets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Finite-lived intangible assets | |||
Gross carrying amount | ¥ 202,986 | ¥ 253,112 | |
Less: accumulated amortization | (106,217) | (158,404) | |
Net Carrying Amount | 96,769 | $ 14,873 | 94,708 |
Trade names | |||
Finite-lived intangible assets | |||
Gross carrying amount | 48,908 | 48,908 | |
Less: accumulated amortization | 0 | 0 | |
Net Carrying Amount | 48,908 | 48,908 | |
Brand | |||
Finite-lived intangible assets | |||
Gross carrying amount | 5,920 | 0 | |
Less: accumulated amortization | 0 | 0 | |
Net Carrying Amount | 5,920 | 0 | |
Student populations | |||
Finite-lived intangible assets | |||
Gross carrying amount | 39,818 | 38,380 | |
Less: accumulated amortization | (37,580) | (36,964) | |
Net Carrying Amount | 2,238 | 1,416 | |
Software | |||
Finite-lived intangible assets | |||
Gross carrying amount | 33,770 | 91,254 | |
Less: accumulated amortization | (32,712) | (89,138) | |
Net Carrying Amount | 1,058 | 2,116 | |
Customer relationships | |||
Finite-lived intangible assets | |||
Gross carrying amount | 5,270 | 5,270 | |
Less: accumulated amortization | (5,270) | (5,270) | |
Net Carrying Amount | 0 | 0 | |
Cooperative agreements | |||
Finite-lived intangible assets | |||
Gross carrying amount | 5,230 | 5,230 | |
Less: accumulated amortization | (3,554) | (3,046) | |
Net Carrying Amount | 1,676 | 2,184 | |
Favorable leases | |||
Finite-lived intangible assets | |||
Gross carrying amount | 63,237 | 63,237 | |
Less: accumulated amortization | (26,268) | (23,153) | |
Net Carrying Amount | 36,969 | 40,084 | |
Non-compete agreements | |||
Finite-lived intangible assets | |||
Gross carrying amount | 833 | 833 | |
Less: accumulated amortization | (833) | (833) | |
Net Carrying Amount | ¥ 0 | ¥ 0 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expenses of Intangible Assets for Future Annual Periods) (Details) ¥ in Thousands | Dec. 31, 2017CNY (¥) |
Estimated amortization expenses for each of the future annual periods | |
2,018 | ¥ 4,606 |
2,019 | 4,520 |
2,020 | 4,436 |
2,021 | 3,491 |
2,022 | 3,292 |
Thereafter | 21,596 |
Total | ¥ 41,941 |
GOODWILL (Details)
GOODWILL (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | ¥ 67,954 | |||
Goodwill impairment | ¥ (19,747) | ¥ 0 | ||
Goodwill acquired during the year (Note 24) | 5,212 | |||
Balance at the end of the period | ¥ 73,166 | $ 11,245 | 67,954 | |
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% | ||
Better Schools [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | ¥ 33,482 | 52,251 | ||
Foreign currency translation adjustments | 978 | |||
Goodwill impairment | (19,747) | |||
Goodwill acquired during the year (Note 24) | 0 | |||
Balance at the end of the period | 33,482 | 33,482 | 52,251 | |
Better Schools [Member] | Tutoring [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | 7,772 | 27,026 | ||
Foreign currency translation adjustments | 493 | |||
Goodwill impairment | (19,747) | |||
Goodwill acquired during the year (Note 24) | 0 | |||
Balance at the end of the period | 7,772 | 7,772 | 27,026 | |
Better Schools [Member] | K-12 Schools [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | 25,710 | 25,225 | ||
Foreign currency translation adjustments | 485 | |||
Goodwill impairment | 0 | |||
Goodwill acquired during the year (Note 24) | 0 | |||
Balance at the end of the period | 25,710 | 25,710 | 25,225 | |
Better Jobs [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | 67,954 | 85,988 | ||
Foreign currency translation adjustments | 1,713 | |||
Goodwill impairment | (19,747) | |||
Goodwill acquired during the year (Note 24) | 5,212 | |||
Balance at the end of the period | 73,166 | 67,954 | 85,988 | |
Better Jobs [Member] | Career Enhancement [Member] | ||||
Changes in the carrying amount of goodwill by segment | ||||
Balance at the beginning of the period | 34,472 | 33,737 | ||
Foreign currency translation adjustments | 735 | |||
Goodwill impairment | 0 | |||
Goodwill acquired during the year (Note 24) | 5,212 | |||
Balance at the end of the period | ¥ 39,684 | ¥ 34,472 | ¥ 33,737 |
OTHER NON-CURRENT ASSETS, NET92
OTHER NON-CURRENT ASSETS, NET (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Jan. 02, 2015 | |
Other non-current assets [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 40.00% | 40.00% | |||
Payments to Acquire Other Investments | ¥ 798 | $ 123 | ¥ 0 | ¥ 0 | |
Shenyang K12 [Member] | |||||
Other non-current assets [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | 10.00% | 10.00% | ||
Payments to Acquire Other Investments | ¥ 4,504 |
OTHER NON-CURRENT ASSETS, NET93
OTHER NON-CURRENT ASSETS, NET (Schedule of Other Non-current Assets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
OTHER NON-CURRENT ASSETS | ||||
Prepayment for purchase of minority interest | [1] | ¥ 4,504 | ¥ 0 | |
Equity method investments | 1,764 | 1,140 | ||
Prepayment for development of internal use software | 1,211 | 1,779 | ||
Others | 6,113 | 3,438 | ||
Total | ¥ 13,592 | $ 2,089 | ¥ 6,357 | |
[1] | In 2017, the Group prepaid RMB 4,504 to purchase 10% economic interest of Shenyang K-12. The transfer of ownership of such economic interest is currently in process and expected to be completed in 2018. |
ACCRUED AND OTHER LIABILITIES94
ACCRUED AND OTHER LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Payable to Ambow Online (Note 27) | ¥ 137,532 | ¥ 0 | |
Business tax, VAT and others | 41,437 | 75,444 | |
Payable balance with indemnity by Xihua Group (Note 7(ii)) | 49,800 | 49,800 | |
Accrual for rental | 42,612 | 57,809 | |
Payable to Zhenjiang Foreign Language School (Note 7(vi)) | 36,770 | 36,770 | |
Accrued payroll and welfare | 27,383 | 34,567 | |
Payable to Jinghan Group (Note 7(vii)) | 0 | 25,959 | |
Professional service fees payable | 20,850 | 28,368 | |
Receipt in advance | 18,578 | 11,207 | |
Amounts due to students | 11,423 | 19,156 | |
Lawsuit penalty payable | 2,315 | 2,176 | |
Employee reimbursement payable | 0 | 6,927 | |
Others | 30,298 | 24,638 | |
Total | ¥ 418,998 | $ 64,399 | ¥ 372,821 |
LONG-TERM BORROWING FROM THIR95
LONG-TERM BORROWING FROM THIRD PARTY (Narrative) (Details) ¥ in Thousands, $ in Thousands | Apr. 05, 2017CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Apr. 05, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Debt Instrument, Face Amount | $ 6,000 | ||||
Long-term Debt | ¥ 39,205 | ¥ 39,205 | $ 6,026 | ¥ 0 | |
Debt Instrument, Maturity Date Range, Start | Apr. 4, 2018 | ||||
Due to Related Parties, Noncurrent | 6,000 | ||||
Loans Receivable, Net | ¥ | 42,677 | ||||
Debt Instrument, Maturity Date Range, End | Apr. 4, 2019 | ||||
Long-term Loan [Member] | |||||
Debt Instrument, Face Amount | $ 6,000 | ||||
Long-term Debt | ¥ | ¥ 39,205 | ||||
Debt Instrument, Term | 1 year |
LONG-TERM BORROWING FROM THIR96
LONG-TERM BORROWING FROM THIRD PARTY - loan agreement of long-term borrowing (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Apr. 05, 2017CNY (¥) | Apr. 05, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
Amount | ¥ 39,205 | $ 6,026 | ¥ 39,205 | ¥ 0 | |
Original Amount | $ 6,000 | ||||
Long-term Loan [Member] | |||||
Date | Apr. 5, 2017 | ||||
Borrower | Ambow Education Holding Ltd. | ||||
Lender | Sino Accord | ||||
Amount | ¥ | ¥ 39,205 | ||||
Original Amount | $ 6,000 | ||||
Annual Interest Rate | 0.00% | 0.00% | |||
Repayment Due Date | Apr. 4, 2019 |
CONVERTIBLE LOAN (Narrative) (D
CONVERTIBLE LOAN (Narrative) (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2015CNY (¥) | |
IFC Loan [Member] | CEHIL [Member] | |
Convertible loan [Line Items] | |
Interest expense | ¥ 56,549 |
ORDINARY SHARES (Narrative) (De
ORDINARY SHARES (Narrative) (Details) - $ / shares | Nov. 08, 2015 | Sep. 04, 2015 | Oct. 14, 2014 | May 18, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ORDINARY SHARES [Line Items] | |||||||
Awards vested | 93,906 | 225,377 | |||||
Stockholders' Equity, Reverse Stock Split | 1-for-30 | ||||||
Employees [Member] | |||||||
ORDINARY SHARES [Line Items] | |||||||
Awards vested | 0 | 142,014 | |||||
Director [Member] | |||||||
ORDINARY SHARES [Line Items] | |||||||
Awards vested | 93,906 | 225,377 | |||||
Restricted stock [Member] | |||||||
ORDINARY SHARES [Line Items] | |||||||
Granted (in shares) | 135,227 | 0 | 0 | ||||
Denominator used to determine number of shares of restricted stock subject to each award | $ 200 | ||||||
Share price (in dollars per share) | $ 1.480 | ||||||
Awards outstanding | 811,359 | 196,637 | 415,521 | 861,522 | |||
Awards vested | 93,906 | 225,377 | |||||
Restricted stock [Member] | Employees and new hires [Member] | |||||||
ORDINARY SHARES [Line Items] | |||||||
Granted (in shares) | 510,000 | 127,500 | 1.480 | ||||
Awards vested | 122,353 | 811,359 | |||||
Restricted stock [Member] | Employees [Member] | |||||||
ORDINARY SHARES [Line Items] | |||||||
Granted (in shares) | 86,473 | ||||||
Class A Ordinary Shares [Member] | |||||||
ORDINARY SHARES [Line Items] | |||||||
Shares issued | 34,206,939 | 33,990,680 | |||||
Shares outstanding | 34,206,939 | 33,990,680 | 33,556,762 | ||||
Stockholders' Equity, Reverse Stock Split | 1-for-30 | ||||||
Common Stock, Voting Rights | The Class A Ordinary Shares are entitled to one vote per share | ||||||
Class C Ordinary Shares [Member] | |||||||
ORDINARY SHARES [Line Items] | |||||||
Shares issued | 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 | ||||
Common Stock, Voting Rights | the Class C Ordinary Shares are entitled to ten votes per share |
SHARE BASED COMPENSATION (Narra
SHARE BASED COMPENSATION (Narrative) (Details) ¥ in Thousands | Oct. 14, 2014$ / sharesshares | Jun. 01, 2010shares | Feb. 04, 2005shares | Jun. 26, 2015$ / shares | May 18, 2015shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2015CNY (¥)shares | Nov. 14, 2008shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based compensation expenses | ¥ | ¥ 4,640 | ¥ 7,828 | ¥ 9,076 | ||||||
Unrecognized share-based compensation expenses | ¥ | 3,575 | ¥ 8,616 | |||||||
Difference between the fair value of the consideration and ordinary shares | ¥ | ¥ (3,645) | ||||||||
Incremental share-based compensation expenses | ¥ | ¥ 5,238 | ||||||||
Awards vested | 93,906 | 225,377 | |||||||
Employees [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Awards vested | 0 | 142,014 | |||||||
Board members [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Awards vested | 93,906 | 225,377 | |||||||
Restricted stock [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Granted (in shares) | 135,227 | 0 | 0 | ||||||
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 | 196,637 | 415,521 | 861,522 | |||||
Awards vested | 93,906 | 225,377 | |||||||
Awards issued | (216,259) | (433,918) | |||||||
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 | ||||||||
Restricted stock [Member] | Employees and new hires [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Granted (in shares) | 510,000 | 127,500 | 1.480 | ||||||
Awards vested | 122,353 | 811,359 | |||||||
Restricted stock [Member] | Board members [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Awards issued | 93,906 | 225,377 | |||||||
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 | $ / shares | $ 0.4749 | ||||||||
Period used to calculate average trading price of the Company's Class A ordinary shares | 30 days | ||||||||
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Available for future grants (in shares) | 941,978 | 939,177 | ||
Shares | ||||
Outstanding at the beginning of the year (in shares) | 256,617 | 387,350 | 427,273 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | 0 | 0 | 0 | |
Forfeited or expired (in shares) | (2,801) | (130,733) | (39,923) | |
Outstanding at the end of the year (in shares) | 253,816 | 256,617 | 387,350 | 427,273 |
Exercisable at the end of the year (in shares) | 253,816 | 256,617 | 387,350 | |
Expected to vested (in shares) | 0 | 0 | 0 | |
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the year | ¥ 3.30 | ¥ 3.08 | ¥ 503.40 | |
Granted | 0 | 0 | 0 | |
Exercised | 0 | 0 | 0 | |
Forfeited or expired | 3.09 | 3.30 | 3.08 | |
Outstanding at end of year | 3.09 | 3.30 | 3.08 | ¥ 503.40 |
Exercisable at end of year | 3.09 | 3.30 | 3.08 | |
Expected to be vested | ¥ 0 | ¥ 0 | ¥ 0 | |
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 | |
Exercisable at end of year | 1 year 10 months 10 days | 2 years 10 months 2 days | 2 years 7 months 2 days | |
Expected to be vested | 1 year 10 months 10 days | 2 years 10 months 2 days | 2 years 7 months 17 days | |
Aggregate Intrinsic Value | ||||
Outstanding at beginning of year | ¥ 4,499 | ¥ 3,836 | ¥ 175 | |
Granted | 0 | 0 | 0 | |
Exercised | 0 | 0 | 0 | |
Forfeited or expired | 0 | 0 | 0 | |
Outstanding at end of year | 1,186 | 4,499 | 3,836 | ¥ 175 |
Exercisable at end of year | 1,186 | 4,499 | 1,435 | |
Expected to be vested | ¥ 0 | ¥ 0 | ¥ 0 | |
Employees [Member] | ||||
Shares | ||||
Outstanding at the beginning of the year (in shares) | 223,895 | 226,696 | ||
Outstanding at the end of the year (in shares) | 223,895 | 226,696 | ||
Non Employees [Member] | ||||
Shares | ||||
Outstanding at the beginning of the year (in shares) | 29,921 | 29,921 | ||
Outstanding at the end of the year (in shares) | 29,921 | 29,921 |
SHARE BASED COMPENSATION (Sched
SHARE BASED COMPENSATION (Schedule of Restricted stock ) (Details) - Restricted stock [Member] - ¥ / shares | Oct. 14, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Shares | ||||
Outstanding at beginning of year (in shares) | 415,521 | 861,522 | ||
Granted (in shares) | 135,227 | 0 | 0 | |
Issued (in shares) | (216,259) | (433,918) | ||
Forfeited or expired (in shares) | (2,625) | (12,083) | ||
Outstanding at end of year (in shares) | 811,359 | 196,637 | 415,521 | 861,522 |
Shares vested but not issued at end of year (in shares) | 49,500 | 34,962 | ||
Grant-date fair value | ||||
Outstanding at beginning of year | ¥ 22.28 | ¥ 21.94 | ||
Granted | 0 | 0 | ||
Issued | 21.25 | 22.94 | ||
Forfeited or expired | 20.36 | 21.72 | ||
Outstanding at end of year | 20.5 | 22.28 | ¥ 21.94 | |
Shares vested but not issued at end of year | ¥ 21.44 | ¥ 22.73 | ||
Weighted Average Remaining Contractual Term | ||||
Granted | 0 years | 0 years | ||
Forfeited or expired | 1 year 5 months 19 days | 2 years 4 months 20 days | ||
Shares vested but not issued at the end of the period | 0 years | 0 years | ||
Outstanding at end of year | 1 year 3 months 14 days | 1 year 10 months 20 days | 2 years 7 months 2 days |
SHARE BASED COMPENSATION (Sc102
SHARE BASED COMPENSATION (Schedule of Assumptions Used) (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2015CNY (¥) | |
Employees [Member] | |
Additional disclosures | |
Total fair values of option and warrants vested | ¥ 83 |
Non Employees [Member] | |
Additional disclosures | |
Total fair values of option and warrants vested | ¥ 4 |
TAXATION (Narrative) (Details)
TAXATION (Narrative) (Details) - CNY (¥) ¥ in Thousands | Mar. 13, 2015 | Aug. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Aug. 31, 2017 |
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 | ¥ 5,941 | ¥ 1,675 | ¥ 4,948 | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | |||||||
Operating Loss Carryforwards, Limitations on Use | For entities incorporated in Hong Kong, net loss can be carried forward indefinitely; for entity incorporated in Taiwan, net loss can be carried forward for ten years; for entity incorporated in U.S., net loss can be carried forward for 20 years; for entity incorporated in P.R.C. mainland, net loss can be carried forward for five years. | |||||||||
Scenario, Plan [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||||||||
Minimum [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
VAT (as a percent) | 3.00% | |||||||||
Business tax (as a percent) | 3.00% | 3.00% | ||||||||
Maximum [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
VAT (as a percent) | 6.00% | |||||||||
Business tax (as a percent) | 5.00% | 5.00% | ||||||||
China [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
VAT payable | ¥ 31,314 | ¥ 8,965 | ¥ 31,314 | |||||||
Business tax payable | ¥ 24,106 | ¥ 18,423 | 24,106 | |||||||
Favorable tax rate for a High and New Technology Enterprise (as a percent) | 15.00% | |||||||||
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% | |||||||||
Taiwan | ||||||||||
Income Taxes [Line Items] | ||||||||||
Income tax rate (as a percent) | 17.00% | |||||||||
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 | |||||||||
Disposal Group Including Discontinued Operation Disposal Percentage | 100.00% | |||||||||
Beijing Ambow Online Software Co Ltd [Member] | China [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Percentage of tax deduction | 50.00% | |||||||||
Private schools or colleges [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% |
TAXATION (Schedule of Significa
TAXATION (Schedule of Significant Components of Provision for Income Taxes on Earnings) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Deferred: | ||||
Provision for income tax expenses (benefits) | ¥ 9,614 | $ 1,478 | ¥ 5,911 | ¥ (118,963) |
PRC | ||||
Current: | ||||
CurrentIncomeTaxExpenseBenefit | 11,648 | 4,881 | 8,562 | |
Deferred: | ||||
DeferredIncomeTaxExpenseBenefit | (2,161) | 1,030 | (127,525) | |
U.S. | ||||
Current: | ||||
CurrentIncomeTaxExpenseBenefit | 93 | 0 | 0 | |
Deferred: | ||||
DeferredIncomeTaxExpenseBenefit | ¥ 34 | ¥ 0 | ¥ 0 |
TAXATION (Schedule of Principal
TAXATION (Schedule of Principal Components of the Group's Deferred Tax Assets and Liabilities) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax asset: | ||
Accrued expense | ¥ 7,028 | ¥ 7,002 |
Allowance for doubtful accounts | 47,593 | 73,907 |
Tax loss carried forward | 359,908 | 445,263 |
Deferred advertising expense | 670 | 11,519 |
Impairment of long-lived tangible assets | 19,691 | 24,600 |
Others | 0 | 4,273 |
Total deferred tax assets | 434,890 | 566,564 |
Valuation allowance | (403,485) | (536,838) |
Deferred tax assets, net of valuation allowance | 31,405 | 29,726 |
Deferred tax liabilities: | ||
Unrecognized valuation surplus and deficit -acquisition | 79,834 | 77,825 |
Unrecognized valuation surplus and deficit - decrease due to amortization and impairment | (56,677) | (55,605) |
Unrealized profit of short-term investments | 26 | 952 |
Total deferred tax liabilities | 23,183 | 23,172 |
Deferred tax assets, net of valuation allowance and deferred tax liabilities | ¥ 8,222 | ¥ 6,554 |
TAXATION (Summary of Amounts an
TAXATION (Summary of Amounts and Expiration Dates of Operating Loss Carryforward) (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 1,440,528 |
2,018 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 374,479 |
Operating loss carryforward expiration years | 2,018 |
2,019 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 210,296 |
Operating loss carryforward expiration years | 2,019 |
2,020 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 85,336 |
Operating loss carryforward expiration years | 2,020 |
2,021 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 62,867 |
Operating loss carryforward expiration years | 2,021 |
2022 and thereafter | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward | ¥ 707,550 |
Operating loss carryforward expiration years | 2022 and thereafter |
TAXATION (Schedule of Roll-forw
TAXATION (Schedule of Roll-forward of Valuation Allowance) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement of valuation allowance | |||
Balance at beginning of the year | ¥ 536,838 | ||
Balance at end of the year | 403,485 | ¥ 536,838 | |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement of valuation allowance | |||
Balance at beginning of the year | 536,838 | 530,358 | ¥ 539,704 |
Allowance made during the year | 10,764 | 6,480 | 30,873 |
Allowance resulting from the reconsolidation of previously deconsolidated entities | 0 | 0 | 1,352 |
Decrease due to disposal of subsidiaries | (120,069) | 0 | 0 |
Reversals | (24,048) | 0 | (41,571) |
Balance at end of the year | ¥ 403,485 | ¥ 536,838 | ¥ 530,358 |
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 | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation between total income tax expense and the amount computed by applying the weighted average statutory income tax rate to income before income taxes | |||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% |
Impact of different tax rates in other jurisdictions | (6.00%) | 0.00% | 0.00% |
Tax effect of non-deductible expenses | 15.00% | (1.00%) | 0.00% |
Tax effect of non-taxable income | (13.00%) | 1.00% | 0.00% |
Tax effect of tax-exempt entities | 7.00% | (10.00%) | (9.00%) |
Tax effect of deemed profit | 0.00% | (1.00%) | 0.00% |
Tax effect of disposed entity | 0.00% | 0.00% | 13.00% |
Tax penalty | 2.00% | (4.00%) | 0.00% |
Changes in valuation allowance | (12.00%) | (29.00%) | 2.00% |
Effective tax rate | 18.00% | (19.00%) | 31.00% |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions | |||
Unrecognized tax benefits, beginning of year | ¥ 25,323 | ¥ 23,648 | ¥ 15,011 |
Increases related to current tax positions | 5,941 | 1,675 | 4,948 |
Addition from the consolidation of previously deconsolidated subsidiaries | 0 | 0 | 3,689 |
Decrease due to disposal of subsidiaries (Note 27) | (6,645) | 0 | 0 |
Unrecognized tax benefits, end of year | ¥ 24,619 | ¥ 25,323 | ¥ 23,648 |
NET INCOME_LOSS PER SHARE (Narr
NET INCOME/LOSS PER SHARE (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | |
Number Of Stock Options Included In Diluted Earning Per Share | 476,960 |
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, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017$ / shares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Numerator for basic and diluted loss from continuing operations per share | ¥ | ¥ 46,463 | ¥ (35,700) | ¥ (277,048) | |
Numerator for basic and diluted (loss) income from discontinued operations per share | ¥ | ¥ 0 | ¥ 0 | ¥ 340,787 | |
Denominator: | ||||
Denominator for basic (loss) income per share weighted average ordinary shares outstanding (in shares) | shares | 38,826,800 | 38,469,234 | 36,848,816 | |
Denominator for diluted (loss) income per share weighted average ordinary shares outstanding (in shares) | shares | 39,303,760 | 38,469,234 | 36,848,816 | |
Basic (loss) income per share - continuing operations | (per share) | ¥ 1.20 | $ 0.18 | ¥ (0.93) | ¥ (7.52) |
Diluted (loss) income per share- continuing operations | (per share) | 1.18 | $ 0.18 | (0.93) | (7.52) |
Basic and diluted (loss) income per share- discontinued operations (in CNY per share) | ¥ / shares | ¥ 0 | ¥ 0 | ¥ 9.25 |
COMMITMENTS AND CONTINGENCIE112
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||
Operating Leases, Rent Expense | ¥ 22,617 | ¥ 26,184 | ¥ 54,939 |
COMMITMENTS AND CONTINGENCIE113
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases) (Details) ¥ in Thousands | Dec. 31, 2017CNY (¥) |
Operating leases | |
2,018 | ¥ 33,774 |
2,019 | 23,797 |
2,020 | 14,311 |
2,021 | 12,115 |
2,022 | 13,104 |
Thereafter | 64,248 |
Total | ¥ 161,349 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||
Cost of revenues | ¥ (256,395) | $ (39,407) | ¥ (238,742) | ¥ (245,945) | |
GROSS PROFIT | 187,529 | 28,823 | 173,274 | 149,770 | |
OPERATING EXPENSES | |||||
Selling and marketing | 36,710 | 5,642 | 41,818 | 55,511 | |
General and administrative | 142,252 | 21,864 | 145,513 | 280,634 | |
Research and development | 6,262 | 962 | 7,572 | 7,308 | |
Total operating expenses | (185,224) | (28,468) | (217,305) | (505,804) | |
Operating Income (Loss) | 2,305 | 355 | (44,031) | (356,034) | |
OTHER INCOME (EXPENSE) | |||||
Foreign exchange losses, net | (522) | (80) | 84 | (183) | |
Other income (expense), net | 1,652 | 254 | 2,570 | 486 | |
Gain on disposal | 38,145 | 5,863 | 0 | 0 | |
Total other (expenses) income | 53,234 | $ 8,183 | 12,924 | (39,371) | |
TOTAL ASSETS | 977,420 | 953,023 | $ 150,226 | ||
Consolidation, Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenues | 443,924 | 412,016 | 395,715 | ||
Cost of revenues | (256,395) | (238,742) | (245,945) | ||
GROSS PROFIT | 187,529 | 173,274 | 149,770 | ||
OPERATING EXPENSES | |||||
Selling and marketing | (32,232) | (37,391) | (47,630) | ||
General and administrative | (91,570) | (98,157) | (104,725) | ||
Research and development | (648) | (2,369) | (2,094) | ||
Impairment loss | (22,402) | (10,332) | |||
Unallocated Corporate Expenses | (60,774) | (56,986) | (341,023) | ||
Total operating expenses | (185,224) | (217,305) | (505,804) | ||
Operating Income (Loss) | 2,305 | (44,031) | (356,034) | ||
OTHER INCOME (EXPENSE) | |||||
Interest income | 1,227 | 398 | (2,385) | ||
Foreign exchange losses, net | 47 | 12 | 34 | ||
Other income (expense), net | 7,079 | (4,033) | (7,538) | ||
Loss (income) on reconsolidation of previously deconsolidated entities | (17,469) | ||||
Gain on sale of investment available for sale | 7,552 | 2,602 | 1,971 | ||
Unallocated corporate other expenses | (13,984) | ||||
Unallocated Corporate Other Income | 32,789 | 13,945 | |||
Gain on disposal | 4,540 | ||||
Total other (expenses) income | 53,234 | 12,924 | (39,371) | ||
(LOSS) INCOME BEFORE INCOME TAX, NON-CONTROLLING INTERESTS AND DISCONTINUED OPERATIONS | 55,539 | (31,107) | (395,405) | ||
Segment assets | 669,429 | 668,762 | |||
Unallocated corporate assets | 307,991 | 284,261 | |||
TOTAL ASSETS | 977,420 | 953,023 | |||
Other Subsegments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenues | 11,170 | ||||
Cost of revenues | (6,995) | ||||
GROSS PROFIT | 4,175 | ||||
OPERATING EXPENSES | |||||
Selling and marketing | 0 | ||||
General and administrative | (12) | ||||
Research and development | 0 | ||||
Unallocated Corporate Expenses | 0 | ||||
Total operating expenses | (12) | ||||
Operating Income (Loss) | 4,163 | ||||
OTHER INCOME (EXPENSE) | |||||
Interest income | 0 | ||||
Foreign exchange losses, net | 0 | ||||
Other income (expense), net | 0 | ||||
Gain on sale of investment available for sale | 0 | ||||
Unallocated Corporate Other Income | 0 | ||||
Gain on disposal | 0 | ||||
Total other (expenses) income | 0 | ||||
(LOSS) INCOME BEFORE INCOME TAX, NON-CONTROLLING INTERESTS AND DISCONTINUED OPERATIONS | 4,163 | ||||
Segment assets | 8,085 | ||||
Unallocated corporate assets | 0 | ||||
TOTAL ASSETS | 8,085 | ||||
Better Schools [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenues | 287,804 | 270,577 | 241,635 | ||
Cost of revenues | (178,935) | (171,298) | (157,867) | ||
GROSS PROFIT | 108,869 | 99,279 | 83,768 | ||
OPERATING EXPENSES | |||||
Selling and marketing | (5,576) | (6,581) | (8,654) | ||
General and administrative | (57,092) | (64,134) | (56,388) | ||
Research and development | (241) | (1,445) | (1,773) | ||
Impairment loss | (21,779) | (2,702) | |||
Unallocated Corporate Expenses | 0 | 0 | 0 | ||
Total operating expenses | (62,909) | (93,939) | (69,517) | ||
Operating Income (Loss) | 45,960 | 5,340 | 14,251 | ||
OTHER INCOME (EXPENSE) | |||||
Interest income | 1,056 | 212 | (285) | ||
Foreign exchange losses, net | 0 | 0 | 10 | ||
Other income (expense), net | 11,427 | (2,319) | (8,203) | ||
Loss (income) on reconsolidation of previously deconsolidated entities | (23,908) | ||||
Gain on sale of investment available for sale | 5,594 | 2,464 | 1,971 | ||
Unallocated corporate other expenses | 0 | ||||
Unallocated Corporate Other Income | 0 | 0 | |||
Gain on disposal | 4,540 | ||||
Total other (expenses) income | 22,617 | 357 | (30,415) | ||
(LOSS) INCOME BEFORE INCOME TAX, NON-CONTROLLING INTERESTS AND DISCONTINUED OPERATIONS | 68,577 | 5,697 | (16,164) | ||
Segment assets | 488,654 | 481,400 | |||
Unallocated corporate assets | 0 | 0 | |||
TOTAL ASSETS | 488,654 | 481,400 | |||
Better Schools [Member] | Tutoring [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenues | 55,371 | 47,985 | 54,888 | ||
Cost of revenues | (26,426) | (33,465) | (41,048) | ||
GROSS PROFIT | 28,945 | 14,520 | 13,840 | ||
OPERATING EXPENSES | |||||
Selling and marketing | (4,220) | (5,516) | (7,690) | ||
General and administrative | (16,411) | (21,929) | (18,601) | ||
Research and development | (241) | (1,445) | (1,773) | ||
Impairment loss | (21,779) | (2,702) | |||
Unallocated Corporate Expenses | 0 | 0 | 0 | ||
Total operating expenses | (20,872) | (50,669) | (30,766) | ||
Operating Income (Loss) | 8,073 | (36,149) | (16,926) | ||
OTHER INCOME (EXPENSE) | |||||
Interest income | 252 | 106 | (307) | ||
Foreign exchange losses, net | 0 | 0 | 10 | ||
Other income (expense), net | 10,402 | (2,514) | (7,966) | ||
Loss (income) on reconsolidation of previously deconsolidated entities | (23,908) | ||||
Gain on sale of investment available for sale | 0 | 0 | 0 | ||
Unallocated corporate other expenses | 0 | ||||
Unallocated Corporate Other Income | 0 | 0 | |||
Gain on disposal | 4,540 | ||||
Total other (expenses) income | 15,194 | (2,408) | (32,171) | ||
(LOSS) INCOME BEFORE INCOME TAX, NON-CONTROLLING INTERESTS AND DISCONTINUED OPERATIONS | 23,267 | (38,557) | (49,097) | ||
Segment assets | 118,403 | 118,083 | |||
Unallocated corporate assets | 0 | 0 | |||
TOTAL ASSETS | 118,403 | 118,083 | |||
Better Schools [Member] | K12 Schools [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenues | 232,433 | 222,592 | 186,747 | ||
Cost of revenues | (152,509) | (137,833) | (116,819) | ||
GROSS PROFIT | 79,924 | 84,759 | 69,928 | ||
OPERATING EXPENSES | |||||
Selling and marketing | (1,356) | (1,065) | (964) | ||
General and administrative | (40,681) | (42,205) | (37,787) | ||
Research and development | 0 | 0 | 0 | ||
Impairment loss | 0 | 0 | |||
Unallocated Corporate Expenses | 0 | 0 | 0 | ||
Total operating expenses | (42,037) | (43,270) | (38,751) | ||
Operating Income (Loss) | 37,887 | 41,489 | 31,177 | ||
OTHER INCOME (EXPENSE) | |||||
Interest income | 804 | 106 | 22 | ||
Foreign exchange losses, net | 0 | 0 | 0 | ||
Other income (expense), net | 1,025 | 195 | (237) | ||
Loss (income) on reconsolidation of previously deconsolidated entities | 0 | ||||
Gain on sale of investment available for sale | 5,594 | 2,464 | 1,971 | ||
Unallocated corporate other expenses | 0 | ||||
Unallocated Corporate Other Income | 0 | 0 | |||
Gain on disposal | 0 | ||||
Total other (expenses) income | 7,423 | 2,765 | 1,756 | ||
(LOSS) INCOME BEFORE INCOME TAX, NON-CONTROLLING INTERESTS AND DISCONTINUED OPERATIONS | 45,310 | 44,254 | 32,933 | ||
Segment assets | 370,251 | 363,317 | |||
Unallocated corporate assets | 0 | 0 | |||
TOTAL ASSETS | 370,251 | 363,317 | |||
Better Job [Member] | Career Enhancement [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenues | 144,950 | 141,439 | 154,080 | ||
Cost of revenues | (70,465) | (67,444) | (88,078) | ||
GROSS PROFIT | 74,485 | 73,995 | 66,002 | ||
OPERATING EXPENSES | |||||
Selling and marketing | (26,656) | (30,810) | (38,976) | ||
General and administrative | (34,466) | (34,023) | (48,337) | ||
Research and development | (407) | (924) | (321) | ||
Impairment loss | (623) | (7,630) | |||
Unallocated Corporate Expenses | 0 | 0 | 0 | ||
Total operating expenses | (61,529) | (66,380) | (95,264) | ||
Operating Income (Loss) | 12,956 | 7,615 | (29,262) | ||
OTHER INCOME (EXPENSE) | |||||
Interest income | 171 | 186 | (2,100) | ||
Foreign exchange losses, net | 47 | 12 | 24 | ||
Other income (expense), net | (4,348) | (1,714) | 665 | ||
Loss (income) on reconsolidation of previously deconsolidated entities | 6,439 | ||||
Gain on sale of investment available for sale | 1,958 | 138 | 0 | ||
Unallocated corporate other expenses | 0 | ||||
Unallocated Corporate Other Income | 0 | 0 | |||
Gain on disposal | 0 | ||||
Total other (expenses) income | (2,172) | (1,378) | 5,028 | ||
(LOSS) INCOME BEFORE INCOME TAX, NON-CONTROLLING INTERESTS AND DISCONTINUED OPERATIONS | 10,784 | 6,237 | ¥ (24,234) | ||
Segment assets | 172,690 | 187,362 | |||
Unallocated corporate assets | 0 | 0 | |||
TOTAL ASSETS | ¥ 172,690 | ¥ 187,362 |
PRC CONTRIBUTION AND PROFIT 115
PRC CONTRIBUTION AND PROFIT APPROPRIATION (Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Contribution and Profit Appropriation [Line Items] | |||
Total contribution for employee benefits | ¥ 35,241 | ¥ 29,029 | ¥ 28,085 |
CHINA [Member] | Minimum [Member] | |||
Contribution and Profit Appropriation [Line Items] | |||
Percentage appropriation to statutory reserve required for education development reserve | 25.00% | ||
CHINA [Member] | Minimum [Member] | Variable Interest Entity Primary Beneficiary [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% | ||
CHINA [Member] | Maximum [Member] | Variable Interest Entity Primary Beneficiary [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% | ||
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% |
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, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Appropriation to statutory reserve | |||
General and statutory surplus reserve | ¥ 17,348 | ¥ 59,309 | |
Education development reserve | 2,688 | 21,698 | |
Total | ¥ 20,036 | $ 3,079 | ¥ 81,007 |
ACQUISITION (Narrative) (Detail
ACQUISITION (Narrative) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 20, 2017CNY (¥) | Nov. 20, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Nov. 20, 2017USD ($) | |
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | ¥ 22,830 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 5,920 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,438 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | 833 | $ 128 | ¥ 0 | ¥ 14,000 | |||
Bay State College [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | 100.00% | |||||
Business Combination, Consideration Transferred | ¥ 22,830 | $ 3,494 | |||||
Payments to Acquire Businesses, Gross | 16,064 | $ 2,459 | 16,064 | $ 2,459 | |||
Business Combination, Contingent Consideration, Liability | 6,766 | $ 1,036 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 7,358 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 5,920 | 5,920 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | ¥ 1,438 | ¥ 1,438 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years 3 months 18 days | 3 years 3 months 18 days | 3 years 3 months 18 days | 3 years 3 months 18 days | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | ¥ 6,430 | ||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 295 | ||||||
Cash Acquired from Acquisition | 15,231 | $ 2,331 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | ¥ 833 | $ 128 |
ACQUISITION (Summary of Busines
ACQUISITION (Summary of Business Combinations) (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
ACQUISITIONS [Line Items] | |
Date of acquisition | Nov. 20, 2017 |
Purchase price | ¥ 22,830 |
Goodwill | 5,212 |
Intangibles with indefinite life | 5,920 |
Amortizable intangibles | ¥ 1,438 |
ACQUISITION (Schedule of Purcha
ACQUISITION (Schedule of Purchase Price Allocation Based on Fair Values of Acquired Assets and Liabilities) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 20, 2017CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
Intangible assets: | ||||
Brand | ¥ 5,920 | |||
Students population | 1,438 | |||
Goodwill | 73,166 | $ 11,245 | ¥ 67,954 | |
Bay State College [Member] | ||||
ACQUISITIONS [Line Items] | ||||
Cash and cash equivalents | 15,231 | |||
Prepaid and other current assets | 3,921 | |||
Property and equipment | 9,096 | |||
Intangible assets: | ||||
Brand | ¥ 5,920 | 5,920 | ||
Students population | ¥ 1,438 | 1,438 | ||
Goodwill | 5,212 | |||
Other non-current assets | 745 | |||
Total assets | 41,563 | |||
Deferred revenue | (3,685) | |||
Accounts payable | (1,555) | |||
Accrued and other liabilities | (9,004) | |||
Income tax payable | 20 | |||
Other non-current liabilities | (3,143) | |||
Deferred tax assets, net of deferred tax liabilities | (1,366) | |||
Total | ¥ 22,830 | |||
Amortization Period (in years) | 3 years 3 months 18 days | 3 years 3 months 18 days | ||
Acquired Indefinite Lived Intangible Assets Weighted Average Useful Life Description | Indefinite |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) ¥ in Thousands, $ in Thousands | Oct. 26, 2011 | Jan. 25, 2012CNY (¥)shares | Jan. 25, 2012USD ($)shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2015CNY (¥) | Oct. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013CNY (¥) | Dec. 31, 2011USD ($) |
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 | $ 50,000 | ||||||||||||
Share-based compensation | ¥ 0 | $ 0 | ¥ 0 | $ 0 | ¥ 44,686 | $ 7,222 | |||||||||
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 | |||||||||||||
Executive Principal of Ambow Research Center [Member] | |||||||||||||||
RELATED PARTY TRANSACTIONS [Line Items] | |||||||||||||||
Interest Bearing Short Term Borrowings | ¥ 2,000 | $ 2,000 | |||||||||||||
Noninterest Bearing Short Term Borrowings | $ 1,960 | ¥ 1,960 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 24.00% | 24.00% | 24.00% | ||||||||||||
Repayments of Related Party Debt | ¥ | ¥ 3,960 |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of Transactions with Related Parties) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013CNY (¥) | ||
Executive Principal of Ambow Research Center [Member] | |||||||
RELATED PARTY TRANSACTIONS [Line Items] | |||||||
Interest bearing borrowings | ¥ 2,000 | $ 2,000 | |||||
Noninterest bearing borrowings | $ 1,960 | ¥ 1,960 | |||||
Interest rate (as a percent) | 24.00% | 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 | (1,670) | ||||||
Member Of Manangement Team Two [Member] | |||||||
RELATED PARTY TRANSACTIONS [Line Items] | |||||||
Borrowings from (repayments) to related party | [2] | (1,350) | |||||
Member Of Management Team of Century Zhisheng [Member] | |||||||
RELATED PARTY TRANSACTIONS [Line Items] | |||||||
Loan to (collection) from related party | (24) | 199 | |||||
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 | 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 | |||||
B a Member Of Manangement Team [Member] | |||||||
RELATED PARTY TRANSACTIONS [Line Items] | |||||||
Transactions amount | ¥ 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 borrowings from A, a member of management team of the Company, were fully repaid in 2015. | ||||||
[3] | The loans to a member of management team of Century Zhisheng and borrowings from entities controlled by a member of management team of Century Zhisheng were made for operation purpose without interest bearing and maturity date. In 2017, the member of management team of Century Zhisheng was resigned, led to the reclassification of respective amounts due from and due to such member from related party to a third party. |
RELATED PARTY TRANSACTIONS (122
RELATED PARTY TRANSACTIONS (Schedule of Balances with Related Parties) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | ¥ 1,823 | ||
Amounts due to related parties | 3,430 | 7,662 | |
A a Member Of Manangement Team [Member] | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | 1,100 | ||
Amounts due to related parties | |||
Member Of Management Team Of Beijing SIWA Century Zhisheng Education Technology Co., Ltd [Member] | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | [1] | 185 | |
Amounts due to related parties | [1] | 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 | 138 | ||
Amounts due to related parties | |||
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 | |||
Amounts due to related parties | 3,430 | 3,430 | |
B a Member Of Manangement Team [Member] | |||
RELATED PARTY TRANSACTIONS [Line Items] | |||
Amounts due from related parties | 400 | ||
Amounts due to related parties | |||
[1] | The loans to a member of management team of Century Zhisheng and borrowings from entities controlled by a member of management team of Century Zhisheng were made for operation purpose without interest bearing and maturity date. In 2017, the member of management team of Century Zhisheng was resigned, led to the reclassification of respective amounts due from and due to such member from related party to a third party. |
DISCONTINUED OPERATIONS (Narrat
DISCONTINUED OPERATIONS (Narrative) (Details) - CNY (¥) ¥ in Thousands | Nov. 10, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discontinued operations [Line Items] | |||||
Receivables resulting from disposals | [1] | ¥ 0 | ¥ 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 | ||||
Disposal Group, Including Discontinued Operation, Foreign Currency Translation Gains (Losses) | ¥ 9,084 | ||||
[1] | The cost of consideration receivable came from the disposal of subsidiaries in 2011. Bad debt of RMB 5,500 has been provided in past few years. In the year ended December 31, 2017, the Company reached an agreement with the third party to offset the receivable due from and payable due to it at amount of RMB 8,500, and bad debt provision of RMB 5,500 was written off after all collection efforts have been exhausted and the potential for recovery was remote. | ||||
[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, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||
Revenues and income (loss) from discontinued operations | |||||
Income (loss) from and on sale of discontinued operation, net of income tax | ¥ 0 | $ 0 | ¥ 0 | ¥ 340,798 | |
Jinghan Group [Member] | |||||
Revenues and income (loss) from discontinued operations | |||||
Revenues | 171,938 | ||||
Impairment loss | |||||
Loss from discontinued operation | (4,499) | ||||
Income tax benefit | 1,385 | ||||
Loss from discontinued operation, net of income tax | (3,114) | ||||
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 | ||||
[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. |
DISPOSAL OF SUBSIDIARY (Narrati
DISPOSAL OF SUBSIDIARY (Narrative) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2017CNY (¥) | Aug. 31, 2017CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||
Gain on disposal | ¥ 38,145 | $ 5,863 | ¥ 0 | ¥ 0 | |||
Liabilities | ¥ 811,461 | ¥ 838,002 | $ 124,719 | ||||
Ambow Online [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | ¥ 171,137 | ||||||
Decrease In Consideration | 137,532 | ||||||
Gain on disposal | ¥ 33,605 | ||||||
Disposal Group Including Discontinued Operation Disposal Percentage | 100.00% | ||||||
Twenty Firsts Training Center [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | ¥ 1 | ||||||
Gain on disposal | ¥ 4,540 | ||||||
Disposal Group Including Discontinued Operation Disposal Percentage | 100.00% | ||||||
Proceeds from Sales of Business, Affiliate and Productive Assets | ¥ 1 | ||||||
Liabilities | ¥ 4,540 |
DECONSOLIDATION AND RECONSOL126
DECONSOLIDATION AND RECONSOLIDATION (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
DECONSOLIDATION AND RECONSOLIDATION [Line Items] | ||||
Income on reconsolidation of previously deconsolidated entities | ¥ 0 | $ 0 | ¥ 0 | ¥ 14,127 |
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 |
NON-CONTROLLING INTERESTS (Narr
NON-CONTROLLING INTERESTS (Narrative) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Jan. 02, 2015 | |
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 40.00% | 40.00% | |||
Capital injection from minority shareholders | ¥ 796 | ¥ 163 | |||
Noncontrolling Interest, Decrease from Deconsolidation | ¥ 758 | ||||
Minority Interest Decrease From Reconsolidatation Of Deconsolidated Entities | ¥ 3,351 | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 40.00% | 40.00% | |||
Huanyu Liren and Suzhou Jiaxue [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non Controlling Interests, Purchase Of Interests, Consideration Transferred | $ | $ 798 | ||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% | ||||
Guangzhou ZS Career Enhancement [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 31.00% | ||||
Percentage of economic interest rerecognized | 5.00% | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 31.00% | ||||
Shenyang K-12 [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 10.00% | 10.00% | 10.00% | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | 10.00% | 10.00% | ||
Taishidian Holding [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 36.00% | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 36.00% | ||||
Ambow Jingxue [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 36.00% | 23.00% | |||
Noncontrolling Interest, Decrease from Deconsolidation | ¥ 5,845 | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 36.00% | 23.00% | |||
Shanghai Tongguo Education Technology Co [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
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 | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 40.00% | ||||
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 | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 40.00% | ||||
Shanghai Tongguo [Member] | |||||
NON-CONTROLLING INTERESTS [Line Items] | |||||
Non-controlling interest (as a percent) | 0.00% | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 0.00% |
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) - Recurring basis [Member] - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Short term investments, available for sale | ¥ 128,042 | ¥ 174,811 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Short term investments, available for sale | 128,042 | 174,811 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Short term investments, available for sale | ||
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Short term investments, available for sale |
FAIR VALUE MEASUREMENTS (Sch129
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, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | |
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] | Relief-from-royalty method [Member] | |||
Unobservable inputs | |||
Terminal growth rate (as a percent) | 3.00% | 3.00% | |
Nonrecurring [Member] | Relief-from-royalty method [Member] | Minimum [Member] | |||
Unobservable inputs | |||
Royalty rate (as a percent) | 1.00% | 0.00% | |
Discount rate (as a percent) | 16.00% | 16.00% | |
Nonrecurring [Member] | Relief-from-royalty method [Member] | Maximum [Member] | |||
Unobservable inputs | |||
Royalty rate (as a percent) | 6.00% | 9.00% | |
Discount rate (as a percent) | 17.00% | 22.00% | |
Nonrecurring [Member] | Level 3 [Member] | Relief-from-royalty method [Member] | |||
FAIR VALUE MEASUREMENTS [Line Items] | |||
Intangible assets | ¥ 91,249 | ¥ 115,941 |
CONCENTRATIONS (Details)
CONCENTRATIONS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2017USD ($) | |
CONCENTRATIONS [Line Items] | |||
Accounts receivable | ¥ 24,511 | ¥ 13,576 | $ 3,767 |
Prepaid and other current assets | 129,517 | 153,867 | 19,906 |
Other non-current assets, net | ¥ 13,592 | ¥ 6,357 | $ 2,089 |
Accounts receivable [Member] | Credit risk [Member] | Company A [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 0.00% | 10.00% | |
Accounts receivable | ¥ 1 | ¥ 1,313 | |
Accounts receivable [Member] | Credit risk [Member] | Company B [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 23.00% | 0.00% | |
Accounts receivable | ¥ 5,656 | ¥ 0 | |
Prepaid and other current assets [Member] | Credit risk [Member] | Company C [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 38.00% | 32.00% | |
Prepaid and other current assets | ¥ 49,800 | ¥ 49,800 | |
Prepaid and other current assets [Member] | Credit risk [Member] | Company D [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 27.00% | 23.00% | |
Prepaid and other current assets | ¥ 35,000 | ¥ 35,000 | |
Prepaid and other current assets [Member] | Credit risk [Member] | Company E [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 0.00% | 17.00% | |
Prepaid and other current assets | ¥ 0 | ¥ 25,959 | |
Other non-current assets [Member] | Credit risk [Member] | Company F [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 9.00% | 25.00% | |
Other non-current assets, net | ¥ 1,281 | ¥ 1,570 | |
Other non-current assets [Member] | Credit risk [Member] | Company G [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 33.00% | 0.00% | |
Other non-current assets, net | ¥ 4,504 | ¥ 0 | |
Consideration receivable [Member] | Credit risk [Member] | Company H [Member] | |||
CONCENTRATIONS [Line Items] | |||
Concentration risk (as a percent) | 0.00% | 100.00% | |
Consideration receivable | ¥ 0 | ¥ 8,500 |
ADDITIONAL INFORMATION - CON131
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS (Schedule of Information of Consolidating Balance Sheets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Apr. 05, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | [1] | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |||||||||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | ¥ 1,255,894 | ¥ 1,540,405 | |||||||
Current assets: | |||||||||
Cash and cash equivalents | 195,303 | $ 30,018 | 196,900 | ¥ 246,303 | |||||
Amounts due from related parties | 0 | 0 | 1,823 | ||||||
Prepaid expenses and other current assets | 129,517 | 19,906 | 153,867 | ||||||
Total current assets | 572,723 | 88,026 | 616,527 | ||||||
Non-current assets: | |||||||||
Property and equipment, net | 168,423 | 25,886 | 88,007 | ||||||
Total non-current assets | 404,697 | 62,200 | 336,496 | ||||||
Total assets | 977,420 | 150,226 | 953,023 | ||||||
Current liabilities: | |||||||||
Amounts due to related parties | 3,430 | 527 | 7,662 | ||||||
Accrued and other liabilities | 418,998 | 64,399 | 372,821 | ||||||
Total current liabilities | 762,552 | 117,201 | 838,002 | ||||||
Non-current liabilities: | |||||||||
Total non-current liabilities | 48,909 | 7,518 | 0 | ||||||
Long-term borrowing from third party | 39,205 | 6,026 | ¥ 39,205 | 0 | |||||
Total liabilities | 811,461 | 124,719 | 838,002 | ||||||
SHAREHOLDERS' EQUITY | |||||||||
Preferred shares (US$ 0.003 par value; 1,666,667 shares authorized, nil issued and outstanding as of December 31, 2016 and 2017) | 0 | 0 | 0 | ||||||
Additional paid-in capital | 3,456,307 | 531,225 | 3,453,227 | ||||||
Accumulated other comprehensive income | 6,876 | 1,056 | 5,705 | ||||||
Total shareholders’ equity | 167,234 | 25,702 | 116,516 | ||||||
Total liabilities and shareholders’ equity | 977,420 | 150,226 | 953,023 | ||||||
Class A Ordinary Shares [Member] | |||||||||
SHAREHOLDERS' EQUITY | |||||||||
Ordinary shares | 640 | 98 | 636 | ||||||
Class C Ordinary Shares [Member] | |||||||||
SHAREHOLDERS' EQUITY | |||||||||
Ordinary shares | 90 | 14 | 90 | ||||||
Parent Company [Member] | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 323 | 50 | [1] | 1,467 | $ 225 | ¥ 8,658 | ¥ 166 | ||
Amounts due from related parties | 261,867 | 40,249 | [1] | 183,676 | |||||
Prepaid expenses and other current assets | 2,770 | 426 | [1] | 341 | |||||
Total current assets | 264,960 | 40,725 | [1] | 185,484 | |||||
Non-current assets: | |||||||||
Property and equipment, net | 0 | 0 | [1] | 0 | |||||
Intangible assets, net | 0 | 0 | [1] | 8 | |||||
Investment in subsidiaries | 0 | [1] | |||||||
Total non-current assets | 0 | 0 | [1] | 8 | |||||
Total assets | 264,960 | 40,725 | [1] | 185,492 | |||||
Current liabilities: | |||||||||
Amounts due to related parties | 17,325 | 2,663 | [1] | 19,605 | |||||
Accrued and other liabilities | 41,196 | 6,334 | [1] | 49,371 | |||||
Total current liabilities | 58,521 | 8,997 | [1] | 68,976 | |||||
Non-current liabilities: | |||||||||
Total non-current liabilities | 6,026 | ||||||||
Long-term borrowing from third party | 39,205 | 6,026 | 0 | ||||||
Total liabilities | 97,726 | 15,023 | [1] | 68,976 | |||||
SHAREHOLDERS' EQUITY | |||||||||
Preferred shares (US$ 0.003 par value; 1,666,667 shares authorized, nil issued and outstanding as of December 31, 2016 and 2017) | 0 | 0 | [1] | 0 | |||||
Additional paid-in capital | 3,456,307 | 531,225 | [1] | 3,453,227 | |||||
Accumulated deficit | (3,296,679) | (506,691) | [1] | (3,343,142) | |||||
Accumulated other comprehensive income | 6,876 | 1,056 | [1] | 5,705 | |||||
Total shareholders’ equity | 167,234 | 25,702 | [1] | 116,516 | |||||
Total liabilities and shareholders’ equity | 264,960 | 40,725 | [1] | 185,492 | |||||
Parent Company [Member] | Class A Ordinary Shares [Member] | |||||||||
SHAREHOLDERS' EQUITY | |||||||||
Ordinary shares | 640 | 98 | [1] | 636 | |||||
Parent Company [Member] | Class C Ordinary Shares [Member] | |||||||||
SHAREHOLDERS' EQUITY | |||||||||
Ordinary shares | ¥ 90 | $ 14 | [1] | ¥ 90 | |||||
[1] | 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$”) are presented solely for the convenience of readers and use an exchange rate of RMB 6.9430, representing the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board as of December 31, 2016. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
ADDITIONAL INFORMATION - CON132
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS (Schedule of Information of Consolidating Balance Sheets) (Parenthetical) (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.003 | $ 0.003 | |
Preferred Stock, Shares Authorized | 1,666,667 | 1,666,667 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Common Class A [Member] | |||
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |||
Ordinary shares, par value (in dollars per share) | $ 0.003 | $ 0.003 | |
Ordinary shares, shares authorized | 66,666,667 | 66,666,667 | |
Ordinary shares, shares issued | 34,206,939 | 33,990,680 | |
Ordinary shares, shares outstanding | 34,206,939 | 33,990,680 | 33,556,762 |
Common Class C [Member] | |||
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |||
Ordinary shares, par value (in dollars per share) | $ 0.003 | $ 0.003 | |
Ordinary shares, shares authorized | 8,333,333 | 8,333,333 | |
Ordinary shares, shares issued | 4,708,415 | 4,708,415 | |
Ordinary shares, shares outstanding | 4,708,415 | 4,708,415 | 4,708,415 |
Parent Company [Member] | |||
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.003 | $ 0.003 | |
Preferred Stock, Shares Authorized | 1,666,667 | 1,666,667 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Parent Company [Member] | Common Class A [Member] | |||
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |||
Ordinary shares, par value (in dollars per share) | $ 0.003 | ||
Ordinary shares, shares authorized | 66,666,667 | ||
Parent Company [Member] | Common Class C [Member] | |||
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS [Line Items] | |||
Ordinary shares, par value (in dollars per share) | $ 0.003 | $ 0.003 | |
Ordinary shares, shares authorized | 8,333,333 | 8,333,333 | |
Ordinary shares, shares issued | 4,708,415 | 4,708,415 | |
Ordinary shares, shares outstanding | 4,708,415 | 4,708,415 |
ADDITIONAL INFORMATION - CON133
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS (Schedule of Information of Consolidating Statement of Operations) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||
NET REVENUES | |||||
- Educational program and services | ¥ 432,754 | $ 66,513 | ¥ 412,016 | ¥ 395,715 | |
Cost of revenues | |||||
- Educational program and services | (249,400) | (38,332) | (238,742) | (245,945) | |
GROSS LOSS | 187,529 | 28,823 | 173,274 | 149,770 | |
Operating expenses: | |||||
Selling and marketing | (36,710) | (5,642) | (41,818) | (55,511) | |
General and administrative | (142,252) | (21,864) | (145,513) | (280,634) | |
Research and development | (6,262) | (962) | (7,572) | (7,308) | |
Total operating expenses | (185,224) | (28,468) | (217,305) | (505,804) | |
OPERATING LOSS | 2,305 | 355 | (44,031) | (356,034) | |
OTHER EXPENSE | |||||
Interest (expense) income, net | 5,191 | 798 | 5,941 | (51,015) | |
Foreign exchange losses, net | (522) | (80) | 84 | (183) | |
Other income (expense), net | 1,652 | 254 | 2,570 | 486 | |
Income tax | (9,614) | (1,478) | (5,911) | 118,963 | |
NET INCOME (LOSS) | 46,463 | 7,143 | (35,700) | 63,739 | |
Parent Company [Member] | |||||
NET REVENUES | |||||
- Educational program and services | [1] | ||||
Cost of revenues | |||||
- Educational program and services | [1] | ||||
GROSS LOSS | [1] | ||||
Operating expenses: | |||||
Selling and marketing | [1] | (410) | |||
General and administrative | (13,457) | (2,068) | [1] | (18,854) | (79,562) |
Research and development | [1] | (660) | |||
Total operating expenses | (13,457) | (2,068) | [1] | (18,854) | (80,632) |
OPERATING LOSS | (13,457) | (2,068) | [1] | (18,854) | (80,632) |
Share of (loss) income from subsidiaries | 59,933 | 9,212 | [1] | (23,274) | 201,051 |
OTHER EXPENSE | |||||
Interest (expense) income, net | 2 | [1] | 1 | (56,549) | |
Foreign exchange losses, net | [1] | (131) | |||
Other income (expense), net | (15) | (2) | [1] | 6,427 | |
Income tax | [1] | ||||
NET INCOME (LOSS) | ¥ 46,463 | $ 7,142 | [1] | ¥ (35,700) | ¥ 63,739 |
[1] | 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$”) are presented solely for the convenience of readers and use an exchange rate of RMB 6.9430, representing the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board as of December 31, 2016. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
ADDITIONAL INFORMATION - CON134
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS (Schedule of Information of Consolidating Statement of Cash Flows) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||
Statements of Cash Flows [Line Items] | |||||
Cash flows from operating activities | ¥ 20,210 | $ 3,106 | ¥ 17,535 | ¥ (40,119) | |
Cash flows from investing activities | (61,078) | (9,386) | (65,218) | 58,214 | |
Cash flows from financing activities | 39,205 | 6,026 | (1,504) | 12,830 | |
Effects of exchange rate changes on cash and cash equivalents | 66 | 10 | 84 | (2,968) | |
Net change in cash and cash equivalents | (1,597) | (244) | (49,103) | 66,020 | |
Cash and cash equivalents at beginning of year | 196,900 | 246,303 | |||
Cash and cash equivalents at end of year | 195,303 | 30,018 | 196,900 | 246,303 | |
Supplemental disclosure of non-cash investing and financing activities | |||||
Conversion of convertible loan to ordinary shares and waiver of related accrued interest expenses | 0 | 0 | 0 | 70,146 | |
Parent Company [Member] | |||||
Statements of Cash Flows [Line Items] | |||||
Cash flows from operating activities | (18,255) | (2,806) | [1] | (6,348) | (40,384) |
Cash flows from investing activities | (1,556) | (239) | [1] | ||
Cash flows from financing activities | 18,667 | 2,869 | [1] | (843) | 48,876 |
Effects of exchange rate changes on cash and cash equivalents | [1] | ||||
Net change in cash and cash equivalents | (1,144) | (176) | [1] | (7,191) | 8,492 |
Cash and cash equivalents at beginning of year | 1,467 | 225 | [1] | 8,658 | 166 |
Cash and cash equivalents at end of year | 323 | 50 | [1] | 1,467 | 8,658 |
Supplemental disclosure of non-cash investing and financing activities | |||||
Conversion of convertible loan to ordinary shares and waiver of related accrued interest expenses | [1] | ¥ 70,146 | |||
[1] | 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$”) are presented solely for the convenience of readers and use an exchange rate of RMB 6.9430, representing the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board as of December 31, 2016. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |