Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Amendment Flag | false |
Entity Registrant Name | Tarena International, Inc. |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001592560 |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-36363 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 6/F, No. 1 Andingmenwai Street, Litchi Tower |
Entity Address, Address Line Two | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100011 |
Entity Address, Country | CN |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity Voluntary Filers | No |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Auditor Name | Marcum Bernstein & Pinchuk LLP |
Auditor Firm ID | 5395 |
Auditor Location | Beijing, China |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Wing Kee Lau |
Contact Personnel Email Address | liuyongji@tedu.cn |
Entity Address, Address Line One | 6/F, No. 1 Andingmenwai Street, Litchi Tower |
Entity Address, Address Line Two | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100011 |
Entity Address, Country | CN |
Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 56,599,346 |
Common Class A | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A ordinary shares |
No Trading Symbol Flag | true |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 49,393,287 |
ADS | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | TEDU |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 7,199,870 |
Common Class B | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 7,206,059 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 423,766 | $ 66,498 | ¥ 320,179 |
Time deposits | 6,257 | 982 | 6,257 |
Restricted cash | 255 | 40 | 38,369 |
Accounts receivable, net of allowance for doubtful accounts | 48,458 | 7,604 | 32,790 |
Amounts due from related parties | 839 | 132 | 305 |
Prepaid expenses and other current assets | 139,757 | 21,931 | 138,353 |
Total current assets | 619,332 | 97,187 | 536,253 |
Time deposits-non current | 123 | 19 | |
Accounts receivable, net of allowance for doubtful accounts-non current | 90 | 14 | 192 |
Amounts due from related parties-non current | 683 | 107 | |
Property and equipment, net | 299,441 | 46,989 | 464,490 |
Intangible assets, net | 9,906 | 1,554 | 13,444 |
Right-of-use assets | 495,936 | 77,823 | 586,451 |
Goodwill | 52,782 | 8,283 | 52,782 |
Long-term investments, net | 46,449 | 7,289 | 67,592 |
Deferred income tax assets | 41,000 | 6,434 | 142,220 |
Other non-current assets, net | 76,040 | 11,932 | 95,825 |
Total Assets | 1,641,782 | 257,631 | 1,959,249 |
Current liabilities: | |||
Short-term bank loans | 30,000 | 4,708 | 10,710 |
Accounts payable | 8,914 | 1,399 | 10,293 |
Amounts due to related parties | 554 | 87 | 180 |
Operating lease liabilities-current | 239,937 | 37,651 | 199,083 |
Income taxes payable | 89,000 | 13,966 | 76,817 |
Deferred revenue-current | 2,008,078 | 315,111 | 1,980,138 |
Accrued expenses and other current liabilities | 563,603 | 88,442 | 391,904 |
Total current liabilities | 2,940,086 | 461,364 | 2,669,125 |
Deferred revenue-non current | 16,774 | 2,632 | 18,060 |
Operating lease liabilities-non current | 272,575 | 42,773 | 406,251 |
Other non-current liabilities | 4,767 | 748 | 5,082 |
Total Liabilities | 3,234,202 | 507,517 | 3,098,518 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Additional paid-in capital | 1,347,205 | 211,406 | 1,324,161 |
Accumulated other comprehensive income | 48,699 | 7,641 | 49,120 |
Accumulated deficit | (2,520,438) | (395,512) | (2,045,891) |
Total equity deficit to the shareholders of Tarena International, Inc. | (1,583,920) | (248,552) | (1,132,002) |
Non-controlling interest | (8,500) | (1,334) | (7,267) |
Total liabilities and equity | 1,641,782 | 257,631 | 1,959,249 |
Common Class A | |||
Shareholders' equity: | |||
Ordinary shares | 355 | 56 | 349 |
Treasury shares (7,199,870 and 7,199,870 Class A ordinary shares as of December 31, 2020 and 2021, at cost) | (459,815) | (72,155) | (459,815) |
Common Class B | |||
Shareholders' equity: | |||
Ordinary shares | ¥ 74 | $ 12 | ¥ 74 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Common Class A | ||
Ordinary shares | ||
Ordinary shares, par value | $ 0.001 | |
Authorized | 860,000,000 | 860,000,000 |
Issued | 56,593,157 | 55,546,254 |
Outstanding | 49,393,287 | 48,346,384 |
Treasury shares | 7,199,870 | 7,199,870 |
Common Class B | ||
Ordinary shares | ||
Ordinary shares, par value | $ 0.001 | |
Authorized | 40,000,000 | 40,000,000 |
Issued | 7,206,059 | 7,206,059 |
Outstanding | 7,206,059 | 7,206,059 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020CNY (¥)¥ / shares | Dec. 31, 2019CNY (¥)¥ / shares | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net revenues | ¥ 2,386,520 | $ 374,497 | ¥ 1,897,883 | ¥ 2,051,354 |
Cost of revenues(a) | (1,201,419) | (188,529) | (1,066,842) | (1,173,834) |
Gross profit | 1,185,101 | 185,968 | 831,041 | 877,520 |
Selling and marketing expenses(a) | (878,130) | (137,798) | (906,337) | (1,119,698) |
General and administrative expenses(a) | (569,985) | (89,443) | (630,618) | (723,306) |
Research and development expenses(a) | (106,098) | (16,649) | (100,466) | (132,672) |
Operating loss | (369,112) | (57,922) | (806,380) | (1,098,156) |
Interest income (expense), net | 2,335 | 366 | (199) | 15,859 |
Other income | 5,572 | 875 | 5,201 | 246 |
Foreign currency exchange gains (loss), net | (518) | (81) | (4,849) | 1,614 |
Loss before income taxes | (361,723) | (56,762) | (806,227) | (1,080,437) |
Income tax benefit (expense) | (114,057) | (17,898) | 35,034 | 41,559 |
Net loss | (476,000) | (74,660) | (771,193) | (1,038,878) |
Less: Net loss attributable to non-controlling interests | (1,233) | (193) | (4,550) | (2,792) |
Net loss attributable to Class A and Class B ordinary shareholders | ¥ (474,547) | $ (74,467) | ¥ (766,643) | ¥ (1,036,086) |
Basic loss per Class A and Class B ordinary share | (per share) | ¥ (8.43) | $ (1.32) | ¥ (14.11) | ¥ (19.41) |
Diluted loss per Class A and Class B ordinary share | (per share) | ¥ (8.43) | $ (1.32) | ¥ (14.11) | ¥ (19.41) |
Net loss | ¥ (476,000) | $ (74,660) | ¥ (771,193) | ¥ (1,038,878) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | (421) | (66) | (2,266) | 914 |
Comprehensive loss | (476,201) | (74,726) | (773,459) | (1,037,964) |
Less: Comprehensive loss attributable to non-controlling interests | (1,233) | (193) | (4,550) | (2,792) |
Comprehensive loss attributable to Class A and Class B ordinary shareholders | ¥ (474,968) | $ (74,533) | ¥ (768,909) | ¥ (1,035,172) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Share-based compensation expense | ¥ (19,103) | $ (2,998) | ¥ (36,246) | ¥ (59,172) |
Cost of revenues [Member] | ||||
Share-based compensation expense | (70) | (11) | (379) | (983) |
Selling and marketing expenses [Member] | ||||
Share-based compensation expense | (2,785) | (437) | (1,842) | (6,502) |
General and administrative expenses [Member] | ||||
Share-based compensation expense | (14,840) | (2,329) | (26,242) | (36,719) |
Research and development expenses [Member] | ||||
Share-based compensation expense | ¥ (1,408) | $ (221) | ¥ (7,783) | ¥ (14,968) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ¥ in Thousands | Ordinary Shares [Member]Common Class ACNY (¥)shares | Ordinary Shares [Member]Common Class AUSD ($)shares | Ordinary Shares [Member]Common Class BCNY (¥)shares | Ordinary Shares [Member]Common Class BUSD ($)shares | Treasury Shares [Member]CNY (¥) | Additional Paid-in Capital [Member]CNY (¥) | Accumulated Other Comprehensive Income (loss) [Member]CNY (¥) | Retained Earnings (Accumulated Deficit) [Member]CNY (¥) | Non-controlling InterestCNY (¥) | CNY (¥) | USD ($) |
Balance at Dec. 31, 2018 | ¥ 331 | ¥ 74 | ¥ (457,169) | ¥ 1,222,072 | ¥ 50,472 | ¥ (243,162) | ¥ (975) | ¥ 571,643 | |||
Balance, shares at Dec. 31, 2018 | shares | 52,972,578 | 52,972,578 | 7,206,059 | 7,206,059 | |||||||
Net loss | (1,036,086) | (2,792) | (1,038,878) | ||||||||
Conversion of Class B ordinary shares to Class A ordinary shares | ¥ 6 | ||||||||||
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares | 3,329 | 3,335 | |||||||||
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares (shares) | shares | 833,956 | 833,956 | |||||||||
Foreign currency translation adjustment | 914 | 914 | |||||||||
Non-controlling interest contribution | 750 | 750 | |||||||||
Share-based compensation | 59,172 | 59,172 | |||||||||
Balance at Dec. 31, 2019 | ¥ 337 | ¥ 74 | (457,169) | 1,284,573 | 51,386 | (1,279,248) | (3,017) | (403,064) | |||
Balance, shares at Dec. 31, 2019 | shares | 53,806,534 | 53,806,534 | 7,206,059 | 7,206,059 | |||||||
Net loss | (766,643) | (4,550) | (771,193) | ||||||||
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares | ¥ 12 | ¥ 0 | 0 | 3,342 | 0 | 0 | 0 | 3,354 | |||
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares (shares) | shares | 1,739,720 | 1,739,720 | 0 | 0 | |||||||
Foreign currency translation adjustment | ¥ 0 | $ 0 | ¥ 0 | $ 0 | 0 | 0 | (2,266) | 0 | 0 | (2,266) | |
Non-controlling interest contribution | 300 | 300 | |||||||||
Share-based compensation | 36,246 | 36,246 | |||||||||
Purchase of Class A ordinary shares | (2,646) | (2,646) | |||||||||
Balance at Dec. 31, 2020 | ¥ 349 | ¥ 74 | (459,815) | 1,324,161 | 49,120 | (2,045,891) | (7,267) | (1,139,269) | |||
Balance, shares at Dec. 31, 2020 | shares | 55,546,254 | 55,546,254 | 7,206,059 | 7,206,059 | |||||||
Net loss | (474,547) | (1,233) | (476,000) | $ (74,660,000) | |||||||
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares | ¥ 6 | 3,941 | 3,947 | ||||||||
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares (shares) | shares | 1,046,903 | 1,046,903 | |||||||||
Foreign currency translation adjustment | (421) | (421) | $ (66,000) | ||||||||
Share-based compensation | 19,103 | 19,103 | |||||||||
Balance at Dec. 31, 2021 | ¥ 355 | ¥ 74 | ¥ (459,815) | ¥ 1,347,205 | ¥ 48,699 | ¥ (2,520,438) | ¥ (8,500) | ¥ (1,592,420) | |||
Balance, shares at Dec. 31, 2021 | shares | 56,593,157 | 56,593,157 | 7,206,059 | 7,206,059 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating activities: | ||||
Net loss | ¥ (476,000) | $ (74,660) | ¥ (771,193) | ¥ (1,038,878) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 125,305 | 19,663 | 177,478 | 194,806 |
Amortization of operating lease right-of-use asset | 250,041 | 39,236 | 170,022 | 218,314 |
Bad debt provision | 5,773 | 906 | 13,900 | 2,251 |
Loss on disposal of property and equipment | 24,669 | 3,871 | 3,303 | 5,118 |
Deferred income tax benefit | 101,220 | 15,884 | (42,431) | (46,037) |
Share based compensation expense | 19,103 | 2,998 | 36,246 | 59,172 |
Investment (income) loss | (1,375) | (216) | 77 | (27) |
Foreign currency exchange (gain) loss, net | 518 | 81 | 4,849 | (1,614) |
Impairment of long term investments | 2,000 | |||
Changes in operating assets and liabilities | ||||
Accounts receivable | (21,339) | (3,349) | (7,779) | 17,641 |
Amounts due from related parties | (1,217) | (191) | (252) | (54) |
Prepaid expenses and other current assets | 18,124 | 2,844 | (1,511) | 19,760 |
Other non-current assets | 13,887 | 2,179 | 14,549 | (4,616) |
Accounts payable | (156) | (24) | 821 | 55 |
Amounts due to related parties | 374 | 59 | (58) | (634) |
Income taxes payable | 12,183 | 1,912 | 7,146 | (2,176) |
Deferred revenue | 26,654 | 4,183 | 412,228 | 755,951 |
Accrued expenses and other current liabilities | 163,292 | 25,624 | 2,289 | 29,086 |
Operating lease liabilities | (252,351) | (39,599) | (128,186) | (241,266) |
Other non-current liabilities | (315) | (49) | (319) | (582) |
Net cash (used in) provided by operating activities | 9,000 | 1,352 | (108,821) | (31,730) |
Investing activities: | ||||
Purchase of property and equipment and intangible assets | (67,694) | (10,623) | (79,414) | (161,275) |
Proceeds from disposal of property and equipment | 85,083 | 13,351 | 7,909 | 10,144 |
Purchase of long-term investments | (4,000) | (3,000) | ||
Proceeds from disposal of a long-term investment | 9,500 | 1,491 | ||
Purchase of time deposits | (50,129) | (7,866) | (94,426) | (341,722) |
Proceeds from maturity of time deposits | 50,000 | 7,846 | 171,660 | 419,777 |
Issuance of loans to employees | (402) | (63) | (8,782) | (12,042) |
Proceeds from repayment of loans to employees | 7,335 | 1,151 | 6,396 | 36,901 |
Net cash (used in) provided by investing activities | 33,693 | 5,287 | (657) | (51,217) |
Financing activities: | ||||
Proceeds from bank borrowing | 30,000 | 4,708 | 10,710 | 89,162 |
Contribution from non-controlling entities | 300 | 750 | ||
Repayment of bank borrowings | (10,710) | (1,681) | (89,162) | (13,792) |
Collection of loan from a related party | 6,499 | |||
Issuance of Class A ordinary shares in connection with exercise of share options | 3,947 | 619 | 3,354 | 3,335 |
Repurchase of treasury shares | (5,058) | |||
Net cash (used in) provided by financing activities | 23,237 | 3,646 | (68,299) | 74,397 |
Changes in cash, cash equivalents and restricted cash | 65,540 | 10,285 | (177,777) | (8,550) |
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | (67) | (11) | (1,376) | 567 |
Net change in cash, cash equivalents and restricted cash | 65,473 | 10,274 | (179,153) | (7,983) |
Cash, cash equivalents and restricted cash at beginning of year | 358,548 | 56,264 | 537,701 | 545,684 |
Cash, cash equivalents and restricted cash at end of year | 424,021 | 66,538 | 358,548 | 537,701 |
Supplemental disclosure of cash flow information: | ||||
Income taxes paid | 654 | 103 | 615 | 6,654 |
Interest paid | 463 | 73 | 4,954 | 419 |
Non-cash investing and financing activities: | ||||
Accrual for purchase of equipment | 7,957 | 1,249 | 9,180 | 16,272 |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | ¥ 185,875 | $ 29,168 | ¥ 484,202 | ¥ 432,898 |
DESCRIPTION OF BUSINESS, ORGANI
DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | 12 Months Ended |
Dec. 31, 2021 | |
DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | |
DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | 1 DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (a) Description of business Tarena International, Inc. (“Tarena International”), through its wholly-owned subsidiaries and consolidated variable interest entities or VIEs (collectively referred to hereinafter as the “Company”), is principally engaged in providing professional education services including professional information technology (“IT”) training courses and non-IT training courses across the People’s Republic of China (“PRC”). The Company is also engaged mainly in providing IT training courses for students aged between three and eighteen. All of the Company’s operations are located in the PRC with nearly all of its customers located in the PRC. (b) Organization Tarena International is a holding company that was incorporated in the Cayman Islands on October 8, 2003 by Mr. Shaoyun Han (“Mr. Han”), the founder and former chief executive officer of the Company, and five other individuals. Tarena International is the parent company of a number of wholly-owned subsidiaries that are engaged in the provision of educational products and services. The Company’s education services in certain locations of the PRC were previously conducted through Beijing Tarena Jinqiao Technology Co., Ltd. (“Beijing Tarena”), and its subsidiaries, in order to comply with PRC laws and regulations which restricted foreign investments in companies that were engaged in education products and services. Pursuant to the VIE Agreement as described below, Tarena International has effective financial control over Beijing Tarena and its initial capital funding was provided by Tarena Technologies Inc., (a wholly-owned subsidiary of Tarena International or the “WFOE”, formerly known as Beijing Tarena Technology Co., Ltd.). The recognized and unrecognized revenue-producing assets that were held by Beijing Tarena and its subsidiaries primarily consists of property and equipment, operating leases for the learning premises, ICP license, www.tmooc.cn website and assembled workforce in those learning centers. All of the equity interests of Beijing Tarena are legally held by Mr. Han and Mr. Jianguang Li (“Mr. Li”), a director of Tarena International. Both individuals are nominee equity holders of Beijing Tarena and holding their equity interests on behalf of Tarena International. Through a series of contractual agreements and arrangements (the “VIE Agreement”), among Tarena International, WFOE, Beijing Tarena and its nominee equity holders, the nominee equity holders of Beijing Tarena have granted all their legal rights including voting rights and disposition rights of their equity interests in Beijing Tarena to Tarena International. The nominee equity holders of Beijing Tarena do not participate significantly in income and loss and do not have the power to direct the activities of Beijing Tarena that most significantly impact its economic performance. Accordingly, Beijing Tarena and its subsidiaries are considered as VIEs. In accordance with Accounting Standards Codification (“ASC”) 810-10-25-38A, Tarena International has a controlling financial interest in Beijing Tarena because Tarena International has (i) the power to direct activities of Beijing Tarena that most significantly impact the economic performance of Beijing Tarena; and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of Beijing Tarena that could potentially be significant to Beijing Tarena. Thus, Tarena International is the primary beneficiary of the Beijing Tarena. 1 DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (CONTINUED) (b) Organization (Continued) Under the terms of the VIE Agreement, Tarena International has (i) the right to receive economic benefits that could potentially be significant to Beijing Tarena in the form of service fees under the exclusive business cooperation agreements; (ii) the right to receive all dividends declared by Beijing Tarena and the right to all undistributed earnings of Beijing Tarena; and (iii) the right to receive the residual benefits of Beijing Tarena through its exclusive option to acquire 100% of the equity interests in Beijing Tarena, to the extent permitted under PRC law. Accordingly, Tarena International is the primary beneficiary of Beijing Tarena and the financial statements of Beijing Tarena and its subsidiaries are consolidated in Tarena International’s consolidated financial statements. Under the terms of the VIE Agreement, Beijing Tarena’ nominee equity holders have no rights to the net assets nor have the obligations to fund the deficit, and such rights and obligations have been vested to Tarena International. All of the equity (net assets) and net income of Beijing Tarena are attributed to Tarena International. The key terms of the VIE Agreement are as follows: Loan Agreements: Exclusive Option Agreements: Exclusive Business Cooperation Agreement: 1 (b) Organization (Continued) Power of Attorney: Equity Interest Pledge Agreements: Tarena International relies on the VIE Agreement to operate and control the Beijing Tarena. However, these contractual arrangements may not be as effective as direct equity ownership in providing Tarena International with control over Beijing Tarena. Any failure by Beijing Tarena or the nominee equity holders to perform their obligations under the VIE Agreement would have a material adverse effect on the consolidated financial position and consolidated financial performance of the Company. All the VIE Agreement is governed by PRC law and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these agreements would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal system in the PRC is not as developed as some other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit Tarena International’s ability to enforce these contractual arrangements. In addition, if the legal structure and the VIE Agreement was found to be in violation of any existing or future PRC laws and regulations, Tarena International may be subject to fines or other legal or administrative sanctions. 1 DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (CONTINUED) (b) Organization (Continued) In the opinion of management, based on the legal opinion obtained from the Company’s PRC legal counsel, the above contractual arrangements are legally binding and enforceable and do not violate current PRC laws and regulations. However, there are uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. Accordingly, Tarena International cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and the VIE Agreement is found to be in violation of any existing or future PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the WFOE, its subsidiaries and Beijing Tarena; ● discontinue or restrict the conduct of any transactions between the WFOE, its subsidiaries and Beijing Tarena; ● impose fines, confiscate the income from Beijing Tarena, or impose other requirements with which the Company may not be able to comply; ● require Tarena International to restructure its ownership structure or operations, including terminating the contractual arrangements with Beijing Tarena and deregistering the equity pledges of Beijing Tarena; and ● restrict or prohibit the use of the proceeds of future offering to finance the Company’s business and operations in the PRC. If the imposition of any of these government actions causes Tarena International to lose its right to direct the activities of Beijing Tarena or its right to receive substantially all the economic benefits and residual returns from Beijing Tarena and Tarena International is not able to restructure its ownership structure and operations in a satisfactory manner, Tarena International would no longer be able to consolidate the financial results of Beijing Tarena and its subsidiaries. In the opinion of management, the likelihood of deconsolidation of the Beijing Tarena and its subsidiaries is remote based on current facts and circumstances. The equity interests of Beijing Tarena are legally held by Mr. Han and Mr. Li as nominee equity holders on behalf of the Company. Mr. Han and Mr. Li are also directors of Tarena International. Mr. Han and Mr. Li each holds 67.2% and 0.2% of the total voting rights of Tarena International as of December 31, 2021, respectively, assuming the exercise of all outstanding options held by Mr. Han and Mr. Li as of such date. The Company cannot assure that when conflicts of interest arise, either of the nominee equity holders will act in the best interests of the Company or such conflicts will be resolved in the Company’s favor. Currently, the Company does not have any arrangements to address potential conflicts of interest between the nominee equity holders and the Company, except that Tarena International could exercise the purchase option under the exclusive option agreements with the nominee equity holders to request them to transfer all of their equity ownership in Beijing Tarena to a PRC entity or individual designated by Tarena International. The Company relies on the nominee equity holders, who are both Tarena International’s directors and who owe a fiduciary duty to Tarena International, to comply with the terms and conditions of the contractual arrangements. Such fiduciary duty requires directors to act in good faith and in the best interests of Tarena International and not to use their positions for personal gains. If the Company cannot resolve any conflict of interest or dispute between the Company and the nominee equity holders of Beijing Tarena, the Company would have to rely on legal proceedings, which could result in disruption of the Company’s business and subject the Company to substantial uncertainty as to the outcome of any such legal proceedings. 1 DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (CONTINUED) (b) Organization (Continued) The Company’s involvement with Beijing Tarena under the VIE Agreement affected the Company’s consolidated financial position, results of operations and cash flows as indicated below. The assets and liabilities of Beijing Tarena and its subsidiaries that were included in the accompanying consolidated financial statements as of December 31, 2020 and 2021 are as follows: December 31, 2020 2021 RMB RMB Cash 1,332 8,204 Amounts due from Tarena International and its wholly-owned subsidiaries 113,021 141,104 Amounts due from a related party 4 4 Prepaid expenses and other current assets 4,476 27,435 Total current assets 118,833 176,747 Property and equipment, net 1,552 2,801 Long term investments, net 48,380 29,880 Right-of-use assets 5,540 11,108 Other non-current assets 539 1,057 Total assets 174,844 221,593 Accounts payable 8,610 320 Deferred revenue-current 138,529 167,224 Operating lease liabilities-current 3,377 3,949 Income taxes payable 2,045 2,045 Accrued expenses and other current liabilities 3,576 22,344 Amounts due to Tarena International and its wholly-owned subsidiaries 31,405 56,052 Total current liabilities 187,542 251,934 Deferred revenue-non current 133 134 Operating lease liabilities-non current 1,536 5,953 Other non-current liabilities 122 122 Total liabilities 189,333 258,143 1 DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (CONTINUED) (b) Organization (Continued) The financial performance and cash flows of Beijing Tarena and its subsidiaries that were included in the accompanying consolidated financial statements before elimination of intercompany balances and transactions between the parent company, non-VIE subsidiaries, VIEs and VIEs’ subsidiaries for the years ended December 31, 2019, 2020 and 2021 are as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues 32,013 127,043 140,541 Net (loss) income (37,565) 32,869 (39,072) Net cash provided by operating activities 36,902 112,106 10,308 Net cash used in investing activities (34,226) — — Net cash used in financing activities (3,841) (110,985) (3,437) All of the assets of Beijing Tarena and its subsidiaries can be used only to settle obligations of Beijing Tarena and its subsidiaries. None of the assets of Beijing Tarena and its subsidiaries have been pledged or collateralized. The creditors of Beijing Tarena and its subsidiaries do not have recourse to the general credit of Tarena International and its wholly-owned subsidiaries. Assets of Beijing Tarena and its subsidiaries that can be used only to settle obligations of Beijing Tarena and its subsidiaries and liabilities of Beijing Tarena and its subsidiaries for which creditors (or beneficial interest holders) do not have recourse to the general credit of Tarena International and its wholly owned subsidiaries have been presented parenthetically alongside each balance sheet caption on the face of the consolidated balance sheets. During the periods presented, Tarena International and its wholly-owned subsidiaries provided financial support to Beijing Tarena that it was not previously contractually required to provide in the form of advances. To the extent Beijing Tarena requires financial support, pursuant to the exclusive business cooperation agreement, the WFOE may, at its option and to the extent permitted under the PRC law, provide such support to Beijing Tarena through loans to Beijing Tarena’s nominee equity holders or entrustment loans to Beijing Tarena. (c) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). All amounts in the accompanying consolidated financial statements and notes are expressed in Renminbi (“RMB”). Amounts in United States dollars (“US$”) are presented solely for the convenience of readers and use an exchange rate of RMB6.3726, representing the exchange rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board as of December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. 1 DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (CONTINUED) (d) Significant concentrations and risks Revenue concentration A substantial portion of the Company’s total net revenues were generated from Childhood & adolescent Robotics Programming, Childhood & adolescent Computer Programming, Java, and Digital Arts courses. The percentages of the Company’s total net revenues from Childhood & adolescent Robotics Programming, Childhood & adolescent Computer Programming, Java, and Digital Arts courses are as follows: Year Ended December 31, 2019 2020 2021 Childhood & adolescent Robotics Programming 9.3 % 15.7 % 27.9 % Childhood & adolescent Computer Programming 12.8 % 20.6 % 19.4 % Java 19.0 % 13.8 % 11.8 % Digital Arts 22.9 % 16.8 % 11.0 % Total 64.0 % 66.9 % 70.1 % The Company expects net revenues from these four training courses to continue to represent a majority portion of its total net revenues in the future. Negative factors that adversely affect net revenues generated by these four training courses will have a material adverse effect on the Company’s business, financial condition and results of operations. There were no other courses that represented net revenues greater than 10% of total net revenues. The portion of the Company’s adult students financed their tuition fees through the loans offered to them by financial service providers, including Baidu Small Loan Co., Ltd., Bank of China Consumer Finance Co., Ltd., Shanghai Shimiao Financial Information Service Co., Ltd. (formerly known as “Beijing Ronglian Shiji Information Technology Co., Ltd.”) and Beijing Youfei Jinxin Digital Technology Co., Ltd. during the 3-year periods ended December 31, 2021 has decreased significantly. The Company expects the number of students financed by these financial service providers to represent a minor portion of its total students in the future. Therefore, negative factors that adversely affect these financial service providers will have no material adverse effect on the Company’s business, financial condition and results of operations. Geographic concentration The percentages of the Company’s total net revenues generated from its business operations in Beijing are 13.8%, 17.2% and 16.2% for the years ended December 31, 2019, 2020 and 2021, respectively, and in Hangzhou are 18.8%, 13.9% and 11.1% for the years ended December 31, 2019, 2020 and 2021, respectively. The Company expects revenues derived from its business operations in Beijing and Hangzhou to continue to be greater than 10% of total net revenues in the future. Negative factors that adversely affect its business operations in Beijing or Hangzhou will have a material adverse effect on the Company’s business, financial condition and results of operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Principles of consolidation The consolidated financial statements include the financial statements of Tarena International, its wholly-owned subsidiaries, and VIEs which Tarena International is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. (b) Liquidity condition and going concern The Company incurred net losses from operations of RMB1,039 million, RMB771 million and RMB476 million for the years ended December 31, 2019, 2020 and 2021, respectively. For the years ended December 31, 2019 and 2020, the Company generated net cash outflows from operating activities amounting to RMB32 million and RMB109 million, respectively. For the year ended December 31, 2021, the Company generated net cash inflow from operating activities amounting to RMB9 million. As of December 31, 2021, the Company’s net current liability was RMB2,321 million. The Company’s cash balance as of December 31, 2021 is not sufficient to meet its cash obligations or liabilities when they become due over the next twelve months from the date of issuance of the consolidated financial statements. The Company’s operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to reduce or eliminate its net losses in the foreseeable future. If management is not able to increase revenue and/or manage operating expenses in line with revenue forecasts, the Company may not be able to achieve profitability. The Company’s deferred revenue, which amounted to RMB2,025 million as of December 31, 2021, does not represent potential cash outflows in the future but is expected to be recognized in revenues in the end. These adverse conditions and events indicate there could be substantial doubt about the Company’s ability to continue as a going concern. For the next 12 months from the issuance date of this report, the Company plans to continue implementing various measures to boost revenue and controlling the cost and expenses within an acceptable level by offering online courses to all students, implementing comprehensive budget control and operation assessment, implementing enhanced vendor review and selection processes as well as enhancing internal controls on payable management, creating synergy of the Company’s resources and improving cash inflow by debt financing and the sale of properties. As of the date of issuance of the consolidated financial statements, the Company has two unused lines of credit of RMB200 million and RMB3 million with expiration dates June 2022 and February 2023, respectively. The Company could enter into loan contracts under the lines of credit up to their expiration dates and agree to a loan term of up to twelve months. Besides, the Company’s office building, which locates in Beijing, with a carrying value of approximately RMB95 million as of December 31, 2021, has been pledged for the Company’s short-term bank loans amounting to RMB30 million (see note 8). The office building is available for sale for future operating fund shortage after repayment of borrowing and release mortgage. Given the considerable gross margin ratio of its operations, the balance of deferred revenue mentioned above and the two available funding sources mentioned above, the Company assesses current working capital is sufficient to meet its obligations for the next 12 months from the issuance date of this report. Accordingly, management continues to prepare the Company’s consolidated financial statements on going concern basis. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (c) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include goodwill impairment and long term investments, the allowance for credit losses of accounts receivable, amounts due from related parties, prepaid expenses and other current assets and other non-current assets, the realizability of deferred income tax assets, the accruals for other contingencies, the useful lives and the recoverability of the carrying amounts of property and equipment. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. To allocate the transaction price for contracts with multiple deliverables and estimate the standalone selling price, the Company considers market data, including its pricing strategies for the products being evaluated and other similar products it offers, competitor pricing to the extent data is available, and costs to determine whether the estimated selling price yields an appropriate profit margin. (d) Foreign currency The functional currency of Tarena International and Tarena Hong Kong Limited (“Tarena HK”) is the USD. The functional currency of Techarena Canada Inc. is the CAD. The functional currency of Taiwan Tarena Counseling Software Co., Ltd. is the TWD. The functional currency of Tarena International’s PRC subsidiaries, consolidated VIE, and the subsidiaries of the VIE is the RMB. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rate at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gains (losses) in the consolidated statements of comprehensive loss. Assets and liabilities of entities with functional currencies other than RMB are translated into RMB using the exchange rate on the balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the reporting period. The resulting foreign currency translation adjustment are recorded in accumulated other comprehensive loss within shareholders’ equity. Since the RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (e) Cash, cash equivalents, restricted cash and time deposits Cash consists of cash in bank and deposits placed in third party payment processors of Alipay, Wechat wallet and Baidu wallet, which are unrestricted as to withdrawal. Cash equivalents consist of interest-bearing certificates of deposit with initial term of no more than three months when purchased. Time deposits, which mature within one year as of the balance sheet date, represent interest-bearing certificates of deposit with an initial term of greater than three months when purchased. Time deposits which mature over one year as of the balance sheet date are included in non-current assets. As of December 31, 2020, restricted cash was the cash received from one financial service provider in relation to a tuition fee loan arrangement offered to younger aged students. The restricted cash would be released to cash along with the service provided to the students. The Company has terminated this loan arrangement with the financial service provider in 2021. Cash, cash equivalents, time deposits and restricted cash maintained at financial institutions consist of the following: December 31, 2020 2021 RMB RMB RMB denominated bank deposits with financial institutions in the PRC 278,789 405,296 US dollar denominated bank deposits with financial institutions in the PRC 81,283 1,234 US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”) 793 22,001 HK dollar denominated bank deposits with financial institutions in HK SAR 50 64 RMB denominated bank deposits with a financial institution in HK SAR 2,022 409 US dollar denominated bank deposits with a financial institution in the U.S. 117 229 TWD denominated bank deposits with a financial institution in Taiwan 579 1,035 CAD denominated bank deposits with a financial institution in Canada 1,172 133 Total 364,805 430,401 To limit exposure to credit risk relating to bank deposits, the Company primarily places bank deposits only with large financial institutions in the PRC, HK SAR, Taiwan, Canada and the U.S. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (f) Accounts receivable In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements Accounts receivable primarily represent tuition fees due from students, universities and colleges and financial service providers. Accounts receivable which are due over one year as of the balance sheet date are presented as non-current assets. The unearned interest on accounts receivable which are due over one year is reported in the consolidated balance sheets as a direct deduction from the principal amount of accounts receivable. The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its students, universities and colleges or financial service providers to make required payments. Accounts receivable is considered past due based on its contractual terms. In establishing the allowance, management considers historical losses, the financial condition, the accounts receivable aging, the payment patterns and the forecasted information in pooling basis upon the use of the Current Expected Credit Loss Model (“CECL Model”) in accordance with ASC topic 326. Accounts receivable that are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is a time lag between when the Company estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Company takes a write off of the account balances when the Company can demonstrate all means of collection on the outstanding balances have been exhausted. (g) Property and equipment Property and equipment are recorded at cost. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. The estimated useful life of property and equipment is as follows: Office buildings 45 years Furniture 5 years Office equipment 3 Leasehold improvements Shorter of the lease term or the estimated useful life of the assets Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed of and proceeds realized thereon. Property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying value of an asset or asset group exceeds its estimated undiscounted future cash flows, an impairment loss is recognized by the amount that the carrying value exceeds the estimated fair value of the asset or asset group. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell, and are no longer depreciated. No impairment of long-lived assets was recognized for any of the years presented. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (h) Goodwill In January 2017, the FASB issued ASU 2017-04, simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. 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, versus determining an implied fair value in Step two to measure the impairment loss. We adopted this guidance on a prospective basis on January 1, 2020 with no material impact on its consolidated financial statements and related disclosures as a result of adopting the new standard. We assess goodwill for impairment on annual basis in accordance with ASC 350-20, Intangibles – Goodwill and Other: Goodwill Quantitative goodwill impairment test is used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired. If the fair value of the reporting unit is less than its carrying amount, 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. The Company performs the annual goodwill impairment assessment using qualitative and quantitative impairment test on September 30 and no goodwill impairment has been identified. (i) Long-term investments ● Equity investments without readily determinable fair values Equity investments without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes in accordance with ASC topic 321, Investments – Equity Securities. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (i) Long-term investments (Continued) ● Equity method investments For an investee company over which the Company has the ability to exercise significant influence, but does not have a controlling interest, the Company accounted for those using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%. Under the equity method, the Company’s share of the post-acquisition profits or losses of the equity investment is recognized in the consolidated statements of comprehensive loss; and the Company’s share of post-acquisition movements in equity is recognized in equity in the consolidated balance sheets. Unrealized gains on transactions between the Company and an entity in which it has recorded an equity investment are eliminated to the extent of the Company’s interest in the entity. To the extent of the Company’s interest in the investment, unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an entity in which it has recorded an equity investment equals or exceeds the Company’s interest in the entity, it does not recognize further losses, unless it has incurred obligations or made payments on behalf of the equity investee. The Company evaluates the equity method investments for impairment. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. ● Available-for-sale debt securities Debt securities that the Company has positive intent and ability to hold to maturity are classified as held-to-maturity debt securities and are stated at amortized cost. Debt securities that the Company has the intent to hold the security for an indefinite period or may sell the security in response to the changes in economic conditions are classified as available for sale and reported at fair value. Unrealized gains and losses (other than impairment losses) are reported, net of the related tax effect, in other comprehensive income (OCI). Upon sale, realized gains and losses are reported in net income. The Company monitors the investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j) Revenue recognition The Company evaluated and recognized revenue based on the five steps set forth in ASC 606 by: ● identifying the contract(s) with the customer; ● identifying the performance obligations in the contract; ● determining the transaction price; ● allocating the transaction price to performance obligations in the contract; and ● recognizing revenue as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”). These criteria as they relate to each of the following major revenue generating activities are described below. Revenue is presented net of value added taxes (“VAT”) at rates ranging between 3% and 13%, and surcharges. VAT to be collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. Tuition revenue The Company provides IT and non-IT related training courses to both adult professional education and childhood & adolescent quality education services. The Company also cooperate with universities and colleges in China to offer joint-major degree programs in accordance with the higher education reform policies of each province. The Company integrates its selected courses into universities and colleges’ standard undergraduate curriculum for students enrolled in such joint-major programs. Students can attend part of the courses in our established on-campus learning sites and part of the courses at the Company’s learning centers. A majority of contract of tuition service is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fees are recognized as revenue proportionately as the training courses are delivered, with unearned portion of tuition fees being recorded as deferred revenue. For certain students who borrow the tuition fee from financial service providers, the Company also provides a guarantee service to financial service providers whereas in the event of default, the financial service providers are entitled to receive unpaid interest and principal from the Company. Given that the Company effectively takes on all of the credit risk of the borrowers and are compensated by the tuition fees charged, the guarantee is deemed as a service and the guarantee exposure is recognized as a stand-ready obligation in accordance with ASC Topic 460, Guarantees (see accounting policy for Guarantee Liabilities). The Company first allocates the transaction price to the guarantee liabilities, if any, in accordance with ASC Topic 460, Guarantees, which requires the guarantee to be measured initially at fair value based on the stand ready obligation. Then the remaining considerations are allocated to the tuition fees consistent with the guidance in ASC 606. Certain qualified students are allowed to pay their tuition fees on installment for a period of time exceeding one year. When tuition services are sold on installment terms that exceeds one year beyond the point in time that revenue is recognized, the contract contains a significant financing component, and the consideration promised by the customer is variable. The receivable, and therefore the revenue is recorded at the present value of the payments. The difference between the present value of the receivable and the nominal or principal value of the tuition fees is recognized as interest income over the contractual repayment period using the effective interest rate method. The interest rate used to determine the present value of total amount receivable is the rate subject to management decision on the date of the transaction and it reflects the rate that the students can obtain financing of a similar nature from other sources at the date of the transaction. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j) Revenue recognition (Continued) The Company enters into arrangements with certain students that purchase multiple services. The performance obligations identified include tuition service and practical tutoring service. The Company treats training contracts with multiple performance obligations as separate units of accounting for revenue recognition purposes and recognizes revenue during the contract period when each performance obligation is satisfied. The Company allocates the transaction price to each performance obligations based on stand-alone selling price. Refunds are provided to students if they withdraw from classes, and usually only those unearned portions of the fee which is available will be refunded. A refund liability represents the amounts of consideration received but are not expected to be entitled to earn, and thus are not included in the transaction price because these amounts are expected to be eventually refunded to students. The Company determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. Reclassification was made from deferred revenue to refund liabilities, which was recorded under accrued expenses and other current liabilities. Certification service revenue The Company provides certification service to students who complete the training course and enroll for the exams. The Company is responsible for the certification service, including organization, proctoring and grading of exams, and providing the certificates to students. All certificates are issued by third parties to the students who pass the exam. The Company is the principal to end customers. The Company acts as the principal in providing the certificate service to the students and recognizes revenue on gross basis because the Company is able to determine the price, acts as the main obligor in the arrangement, and, is responsible for fulfilling the services ordered by the students. Cash received before the students taking the exam is recorded as deferred revenue. Each contract of certification service is accounted for as a single performance obligation which is satisfied at a point in time. The performance obligation is satisfied when the certificates are provided to the students and the consideration are received, then the received consideration is recognized as certification service revenue. AI and software development revenue The Company provides AI and software development service to universities and colleges. The Company is responsible for the installation, debugging and development of AI software. The Company is the principal to end customers. The Company acts as the principal in providing the AI and software development service to universities and colleges and recognizes revenue on gross basis because the Company is able to determine the price, acts as the main obligor in the arrangement, and, is responsible for fulfilling the services ordered by the universities and colleges. Cash received before inspection and acceptance is recorded as deferred revenue. Each contract of AI and software development service is accounted for as a single performance obligation which is satisfied at a point in time. The performance obligation is satisfied when the AI and software development service are inspected and accepted, then AI and software development service revenue is recognized. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j) Revenue recognition (Continued) Loan referral service revenue The Company promotes loan products of financial service providers to its adult students, who need financial assistance for the payment of their tuition fees, in exchange for a referral fee generally at a rate of the principal amount of the loans. Each contract of loan referral service is accounted for as a single performance obligation which is satisfied at a point in time. Generally, the early repayment and default loan are excluded from the effective principal amount of the loans, and thus are not included in the transaction price because these amounts are expected to be eventually refunded to financial service providers. The Company determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. Refund liability was recorded under accrued expenses and other current liabilities. Historically, the Company has not had material refunds. Loan referral service revenue is recognized upon the initiation of the loans as the performance obligation is satisfied and confirmed with the financial service providers on a monthly basis. Contract acquisition costs The Company has used practical expedients as allowed under ASC 606 to generally expenses sales commissions when incurred, because the amortization period would be one year or less. These costs are recorded as sales and marketing expenses. Contract liability The Company does not have amounts of contract assets since the Company transfers the promised services to customers and have the billing right or after the customers pay consideration. The contract liabilities consist of deferred revenue, which represent the Company has received consideration but has not satisfied the related performance obligations. The revenue recognized for years ended December 31, 2020 and 2021 that was previously included in the deferred revenue balances as of December 31, 2019 and December 31, 2020 was RMB905,867 and RMB1,221,729, respectively. The Company’s deferred revenue amounted to RMB1,998,198 and RMB2,024,852 as of December 31, 2020 and 2021, respectively. Starting from the second half of year 2019, the Company has entered into contracts that have an original expected length of more than one year with certain students. The remaining performance obligations of these contracts are as following: For the years ending December 31, 2022 2023 Total RMB RMB RMB Revenue expected to be recognized on these contracts 3,133 17,200 20,333 The Company has selected to apply the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations in contracts that have an original expected length of one year or less. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j) Revenue recognition (Continued) Refund liability mainly related to the estimated refunds that are expected to be provided to students if they decide they no longer want to take the course. Refund liability estimates are based on historical refund ratio on a portfolio basis using the expected value method. (k) Cost of revenues Cost of revenues consists of payroll and employee benefits, rent expenses of learning centers, depreciation relating to property and equipment used for operating the learning centers, and other operating costs that are directly attributed to the provision of training services. (l) Guarantee liabilities For certain students who borrow the tuition fee from financial service providers, the Company provides a guarantee service to financial service providers whereas in the event of default, the financial service providers are entitled to receive unpaid interest and principal from the Company. In general, any unpaid interest and principal are paid when the borrower does not repay as scheduled. For accounting purposes, at the inception of each loan, the Company recognizes the guarantee liability in accrued expenses and other current liabilities at fair value in accordance with ASC 460-10, which incorporates the expectation of potential future payments under the guarantee and takes into both non-contingent and contingent aspects of the guarantee. Subsequent to the loan’s inception, the guarantee liability is composed of two components: (i) ASC Topic 460 component; and (ii) ASC Topic 450 component. The liability recorded based on ASC Topic 460 is determined on a loan by loan basis and it is reduced when the Company is released from the underlying risk, i.e. as the loan is repaid by the borrower or when the investor is compensated in the event of a default. This component is a stand ready obligation which is not subject to the probable threshold used to record a contingent obligation. The guarantee liabilities are generally reduced by recording a credit to guarantee service revenue as the guarantor is released from the underlying guaranteed risk. Subsequent to initial recognition, the guarantee obligation’s release from risk has typically been recognized over the term of the guarantee using a rational amortization method. The other component is a contingent liability determined based on probable loss considering the actual historical performance and current conditions, representing the obligation to make future payouts under the guarantee liability in excess of the stand-ready liability, measured using the guidance in ASC Topic 450, loans with similar risk characteristics are pooled into cohorts. The ASC 450 contingent component is recognized as part of operating expenses. At all times the recognized liability (including the stand ready liability and contingent liability) is at least equal to the probable estimated losses of the guarantee portfolio. (m) Advertising costs Advertising costs are expensed as incurred and included in selling and marketing expenses. Advertising costs were RMB416,814, RMB297,484 and RMB229,571 for the years ended December 31, 2019, 2020 and 2021, respectively. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (n) Operating leases The Company adopted Accounting Standards Update (“ASU”) 2016-02 Leases (“ASC 842”) as of January 1, 2019, using the non-comparative transition option pursuant to ASU 2018-11. Therefore, the Company has not restated comparative period financial information for the effects of ASC 842, and will not make the new required lease disclosures for comparative periods beginning before January 1, 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among others things (i) allowed the Company to carry forward the historical lease classification; (ii) did not require the Company to reassess whether any expired or existing contracts are or contain leases; (iii) did not require the Company to reassess initial direct costs for any existing leases. The Company identifies lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. For all operating leases except for short-term leases, the Company recognizes operating right-of-use assets and operating lease liabilities. Leases with an initial term of 12 months or less are short-term lease and not recognized as right-of-use assets and lease liabilities on the consolidated balance sheet. The Company recognizes lease expense for short-term leases on a straight-line basis over the lease term. The operating lease liabilities are recognized based on the present value of the lease payments not |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | 3 ACCOUNTS RECEIVABLE, NET Accounts receivable consists of the following: December 31, 2020 2021 RMB RMB Accounts receivable: Gross 43,191 64,596 Unearned interest (995) (1,061) Total accounts receivable 42,196 63,535 Less: allowance for credit losses 9,214 14,987 Accounts receivable, net 32,982 48,548 The classification of accounts receivable is as follows: December 31, 2020 2021 RMB RMB Accounts receivable – current portion 32,790 48,458 Accounts receivable – non-current portion 192 90 Total accounts receivable, net 32,982 48,548 The movements of the allowance for doubtful accounts are as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Balance at the beginning of the year — 2,251 9,214 Additions charged to bad debt expense 2,251 6,963 5,773 Balance at the end of the year 2,251 9,214 14,987 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 4 PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: December 31, 2020 2021 RMB RMB Prepaid expenses and other current assets: Prepaid deposits (a) 25,238 24,518 Loans made to employees (b) 20,421 20,584 Prepaid value-added tax 40,352 18,350 Professional fee 11,169 18,244 Prepaid rental expenses 12,304 15,669 Long-term investment disposal receivable — 13,000 Inventory 4,626 5,870 Prepaid advertising expenses 7,656 2,654 Others 16,587 20,868 Total prepaid expenses and other current assets 138,353 139,757 (a) It mainly included prepaid advertising deposits. (b) The Company provides short-term interest-free loans to employees for their purchase of residence or other personal needs. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 5 PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: December 31, 2020 2021 RMB RMB Office buildings 285,867 169,761 Furniture 48,253 43,061 Office equipment 409,682 393,561 Leasehold improvements 243,407 247,652 Total property and equipment 987,209 854,035 Less: accumulated depreciation 522,719 554,594 Property and equipment, net 464,490 299,441 The office building with a carrying value of RMB95,291 as of December 31, 2021 has been pledged for the Company’s short-term bank loans (see note 8). Depreciation expense for property and equipment was allocated to the following: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Cost of revenues 150,188 132,898 93,503 Selling and marketing expenses 19,303 18,137 11,999 General and administrative expenses 22,314 18,867 15,345 Research and development expenses 733 1,354 913 Total 192,538 171,256 121,760 |
LONG-TERM INVESTMENTS, NET
LONG-TERM INVESTMENTS, NET | 12 Months Ended |
Dec. 31, 2021 | |
LONG-TERM INVESTMENTS, NET | |
LONG-TERM INVESTMENTS, NET | 6 LONG-TERM INVESTMENTS, NET Long-term investments consist of the following: December 31, 2020 2021 RMB RMB Equity investments without readily determinable fair values A company providing mechanic training (a) 12,000 12,000 A company providing intelligent robot products (b) 24,000 — A company providing information sharing IT platform (c) 22,500 — Other equity investments without readily determinable fair values (d) 30,880 17,880 Impairment of equity investments without readily determinable fair values (37,000) — Total equity investments without readily determinable fair values, net 52,380 29,880 Equity method investments Companies providing hockey program management 2,132 2,079 A company providing Internet product solutions (e) 13,604 15,014 Impairment of equity method investments (524) (524) Total equity method investments, net 15,212 16,569 Available-for-sale investment (f) 15,000 — Impairment of available-for-sale investments (f) (15,000) — Total available-for-sale investment, net — — Total long-term investments, net 67,592 46,449 (a) In October 2015, the Company paid RMB 12,000 in cash to acquire 2.86% of the total equity interest in an education company, which provides training for senior mechanic in vehicle maintenance and repair. No impairment loss was recognized as of December 31, 2020 and 2021, and for the years then ended. (b) In May 2017, the Company paid RMB 24,000 in cash to acquire 6% of the total equity interest in a company, which provides intelligent robot product. Based on the fact that the business conditions of this investee deteriorated, the Company recognized impairment loss of RMB 24,000 for the year ended December 31, 2018, and with an impairment balance of RMB 24,000 as of December 31, 2020, which has been written off during the year of 2021. (c) In July 2017, the Company paid RMB 22,500 in cash to acquire 15% of the total equity interest in a company, which provides an information sharing IT platform. In November 2021, the Company sold 15% of the total equity interest by a price of RMB 22,500 . The consideration of RMB 9,500 was collected as of December 31, 2021, and the remaining consideration of RMB 13,000 was recorded as prepaid and other current asset, which was collected in January 2022. No impairment loss was recognized as of December 31, 2020. (d) During the years ended December 31, 2018 and 2019, the Company acquired minority equity interests in several third-party companies. The Company recognized no impairment loss for the years ended December 31, 2020 and 2021, respectively, and with an impairment balance of RMB 13,000 as of December 31, 2020, which has been written off during the year of 2021. (e) In January 2018, the Company paid RMB 14,000 in cash to acquire 20% of equity interest of a company which provides IT consulting services and programming and accounted for the investment using equity method. No impairment loss was recognized as of December 31, 2020 and 2021, and for the years then ended. 6 LONG-TERM INVESTMENTS, NET (CONTINUED) (f) In October 2016, the Company paid RMB 10,000 in cash to acquire 13.9% equity interest in a private company, which provides employment course trainings and recruitment services. In December 2016, the fair value of this investment increased to RMB 15,000 . However, as it was found that the investee provided overstated financial statements to the new investors during the private placement in 2017 and lost in a lawsuit sued by one of the shareholders. Accordingly, the Company determined it to be fully impaired in 2017. The Company recognized no impairment loss for the years ended December 31, 2020 and 2021, respectively, and with an impairment balance of RMB 15,000 as of December 31, 2020, which has been written off during the year of 2021. |
OTHER NON-CURRENT ASSETS, NET
OTHER NON-CURRENT ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
OTHER NON-CURRENT ASSETS, NET | |
OTHER NON-CURRENT ASSETS, NET | 7 OTHER NON-CURRENT ASSETS, NET Other non-current assets consist of the following: December 31, 2020 2021 RMB RMB Other non-current assets: Rent and property management deposits 51,786 48,531 Loans made to employees (a) 30,284 16,825 Prepayment for equipment and leasehold improvement 10,276 8,443 Others 3,479 2,241 Total other non-current assets, net 95,825 76,040 (a) Starting from 2016, the Company began to provide five-year loans with annual interest rates within a range from 3.325% to 5.0% to the employees for their purchase of houses. Some employees’ loans are pledged by their share options. The interest was paid monthly and the principal was repaid upon maturity . |
SHORT-TERM BANK LOANS
SHORT-TERM BANK LOANS | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM BANK LOANS | |
SHORT-TERM BANK LOANS | 8 SHORT-TERM BANK LOANS As of December 31, 2020, the Company has drawn RMB10,710, which will mature in 12 months from the drawdown date. The applicable interest rate for the loan is 5.3% per annum. The loan was subsequently repaid in February 2021. On August 7, 2021, the company signed a credit extension contract with the China Merchants Bank. The carrying value of office buildings pledged for the borrowing was RMB95,291. As of December 31, 2021, the Company has drawn RMB30,000, which will mature during the period from August 2022 to November 2022 and the annual interest rate is 5.3%. Interest expenses of the loans were RMB565, RMB5,047 and RMB322 for the years ended December 31, 2019, 2020 and 2021, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2020 2021 RMB RMB Accrued payroll and employee benefits 194,862 201,657 Refund liability 71,843 147,210 Recharge card (a) 10,970 76,060 Professional service fee 30,165 41,276 VAT and other tax payables 9,535 18,513 Payable for advertisement 23,287 18,231 Guarantee liability 5,808 9,744 Rental fee 11,153 7,414 Others 34,281 43,498 Total 391,904 563,603 (a) Recharge card is the amount that customers paid in advance without desginated enrollment contract for childhood & adolescent quality education training courses. |
NET REVENUES
NET REVENUES | 12 Months Ended |
Dec. 31, 2021 | |
NET REVENUES | |
NET REVENUES | 10 NET REVENUES (a) Net revenues recognized under ASC Topic 606 for the years ended December 31, 2019, 2020 and 2021 consist of the following: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Tuition fee 1,877,242 1,786,230 2,281,098 Certification service fee 75,403 41,961 60,892 Loan referral service fee 19,939 7,801 6,332 Others 42,786 53,135 37,383 Business taxes and surcharges (11,205) (4,252) (7,070) Total net revenues 2,004,165 1,884,875 2,378,635 Others mainly include AI and software development revenues, franchise fee and miscellaneous revenues. Year Ended December 31, 2019 2020 2021 RMB RMB RMB Timing of revenue recognition Services transferred at a point in time 138,128 102,897 104,607 Services transferred over time 1,866,037 1,781,978 2,274,028 Total net revenues 2,004,165 1,884,875 2,378,635 (b) Net revenues recognized under ASC Topic 460 for the years ended December 31, 2019, 2020 and 2021 consist of the following: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Guarantee service 47,189 13,008 7,885 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 11 INCOME TAXES Under the current laws of the Cayman Islands, Tarena International is not subject to tax on its income or capital gains. For the period from its inception on October 22, 2012 to December 31, 2021, Tarena HK did not have any assessable profits arising in or derived from HK SAR. Tarena International’s PRC subsidiaries and consolidated VIE and the subsidiaries of the VIE file separate tax returns in the PRC. Effective from January 1, 2008, the PRC statutory income tax rate is 25% according to the Corporate Income Tax (“CIT”) Law which was passed by the National People’s Congress on March 16, 2007. Under the CIT Law, entities that qualify as “High and New Technology Enterprise” (“HNTE”) are entitled to a preferential income tax rate of 15%. In 2015, the WFOE renewed its HNTE qualification, which entitled it to the preferential income tax rate of 15% from January 1, 2015 to December 31, 2017. In 2018, the WFOE renewed its HNTE qualification, which entitled it to the preferential income tax rate of 15%from January 1, 2018 to December 31, 2020. In 2021, the WFOE renewed its HNTE qualification, which entitled it to the preferential income tax rate of 15% from January 1, 2021 to December 31, 2023. 11 INCOME TAXES (CONTINUED) One of the Chinese subsidiaries of the Company was established in 2013 and qualified as an eligible software enterprise. As a result of this qualification, it is entitled to a tax holiday of a two-year full exemption followed by a three-year 50% exemption, commencing from 2014 in which its taxable income is greater than zero. As a result, its income tax rate for the years ended December 31, 2018 was 12.5%. For the year ended December 2019, the tax holiday expired and the income tax rate was 25%. In 2020, the entity was qualified as “High and New Technology Enterprise” (“HNTE”). And its income tax rate is 15%for the years ended December 31, 2020, 2021 and 2022. In 2016, another Chinese subsidiary of the Company was qualified as an eligible software enterprise, and was entitled to a tax holiday of a two-year full exemption followed by a three-year 50%exemption, commencing from the year in which its taxable income is greater than zero. As a result, the income tax rate of this Chinese subsidiary for the year ended December 31, 2017 was nil, and for the years ended December 31, 2018, 2019 and 2020 was 12.5%. In December 2019, the entity was qualified as “High and New Technology Enterprise” (“HNTE”), which has a valid term of three years, thus its income tax rate was 15% in 2021. Certain Tarena International’s subsidiaries and branches in China have been qualified as “Small Profit Enterprises” since 2017 and 2018, and therefore are entitled to enjoy a preferential income tax rate of 20% on 50% of the assessable profit before tax. From January 1, 2019, to December 31, 2020, 25% of the first RMB1.0 million of the assessable profit before tax is subject to preferentail tax rate of 20%, and the 50% of the assessable profit before tax exceeding RMB1.0 million but not exceeding RMB3.0 million is subject to preferential tax rate of 20%. From January 1, 2021 to December 31, 2021, 12.5% of the first RMB1.0 million of the assessable profit before tax is subject to preferential tax rate of 20% and the 50% of the assessable profit before tax exceeding RMB1.0 million but not exceeding RMB3.0 million is subject to preferential tax rate of 20%. In 2017, one of the Chinese subsidiaries of the Company was established in Horgus and qualified to be entitled to a special tax holiday that from the tax year of the first operating income, the subsidiary would be exempted from enterprise income tax for five years. As a result, the income tax rate of this Chinese subsidiary for the years ended December 31, 2019, 2020 and 2021 was nil. Since the Company wound up some PRC subsidiaries for the year ended December 31, 2021, deferred tax assets consisting mainly of net operating loss carryforwards will no longer be utilizable in the future due to their cancellation. As a result, these deferred tax assets of RMB712 along with related full valuation allowance provided from prior years were written-off by the management as of December 31, 2021. The components of loss before income taxes are as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB PRC (986,464) (739,036) (342,944) Hong Kong (876) (8,280) (1,751) Cayman Islands (87,470) (54,913) (13,562) Taiwan (2,292) (1,549) (1,905) Canada (3,335) (2,449) (1,561) Total loss before income taxes (1,080,437) (806,227) (361,723) 11 INCOME TAXES (CONTINUED) Income tax benefit (expense) consists of the following: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Current income tax expense (4,478) (7,397) (12,837) Deferred income tax benefit (expense) 46,037 42,431 (101,220) Total 41,559 35,034 (114,057) The actual income tax expense reported in the consolidated statements of comprehensive loss for each of the years ended December 31, 2019, 2020 and 2021 differs from the amount computed by applying the PRC statutory income tax rate to income before income taxes due to the following: Year Ended December 31, 2019 2020 2021 PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Increase (decrease) in effective income tax rate resulting from: Impact of different tax rates in other jurisdictions (2.1) % (1.8) % (1.1) % Research and development bonus deduction 0.8 % 2.0 % 3.4 % Non-deductible expenses (1.3) % (1.6) % (2.0) % Preferential tax rates (10.8) % (11.2) % (9.5) % Change of tax rates (2.2) % (2.9) % (5.5) % Change in valuation allowance (5.6) % (5.2) % (41.8) % Actual income tax expense 3.8 % 4.3 % (31.5) % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2020 2021 RMB RMB Deferred income tax assets: Impairment of long-term investments 11,750 11,750 Tax loss carry forwards 253,796 281,813 Advertising expense 19,805 30,955 Others 3,240 5,326 Total deferred income tax assets 288,591 329,844 Valuation allowance (146,371) (288,844) Deferred income tax assets, net 142,220 41,000 Deferred income tax liabilities: Valuation appreciation of intangible assets 1,384 1,067 Deferred income tax liabilities* 1,384 1,067 * Deferred income tax liabilities are combined in other non-current liabilities. 11 INCOME TAXES (CONTINUED) The movements of the valuation allowance are as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Balance at the beginning of the year 169,543 139,177 146,371 Additions of valuation allowance 63,309 46,755 168,163 Reduction of valuation allowance (2,553) (4,643) (16,940) Change of tax rates (71,090) (30,671) (8,038) Change of decrease related to subsidiary disposals and expiration (20,032) (4,247) (712) Balance at the end of the year 139,177 146,371 288,844 The valuation allowance as of December 31, 2020 and 2021 was primarily provided for the deferred income tax assets of certain Tarena International’s PRC subsidiaries, consolidated VIE, and the subsidiaries of the VIE, which were at cumulative loss positions. In assessing the realizability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or utilizable. Management has considered projected future taxable income and tax planning strategies in making this assessment. As of December 31, 2021, the Company had tax losses carryforwards of RMB2,744,973, including which from Hong Kong subsidiary of RMB8,776 that does not have an expiring date. Tax losses of RMB24,847, RMB333,740, RMB884,403, RMB818,369, and RMB674,838 will expire, if unused, by 2022, 2023, 2024, 2025 and 2026, respectively. The CIT Law and its implementation rules impose a withholding income tax at 10%, unless reduced by a tax treaty or arrangement, on the amount of dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC that are related to earnings accumulated beginning on January 1, 2008. Dividends relating to undistributed earnings generated prior to January 1, 2008 are exempt from such withholding income tax. The Company did not distribute any dividend for the years ended December 31, 2020 and 2021. The Company has considered temporary differences on the book to tax differences pertaining to all investment in subsidiaries including the determination of the indefinite reinvestment assertion that would apply to each foreign subsidiary. The Company evaluated each entity’s historical, current business environment and plans to indefinitely reinvest all earnings accumulated in its respective jurisdiction for purpose of future business expansion. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 12 RELATED PARTY TRANSACTIONS The following is a list of related parties which the Company has major transactions with: (1) Chuanbang Business Consulting (Beijing) Co., Ltd. (“Chuanbang”), a company wholly owned by Mr. Shaoyun Han (“Mr. Han”), the founder, chairman of our board of directors and former chief executive officer of the Company. (2) Xi’an Beilin District Bolton vocational skill training school (“Bolton School”), a company controlled by Mr. Han’s brother-in-law. (3) Ningxia Tarena Technology Co., Ltd (“Ningxia Company”), a company wholly owned by Ms.Han Liping, a sister of Mr. Han. (4) Beijing Huimoer Technology Co., Ltd (“Beijing Huimoer”), a company provides IT consulting services and programming, which is 20% owned by the Company since January 2018. 12 RELATED PARTY TRANSACTIONS (CONTINUED) (5) Ms. Han Lijuan, a sister of Mr. Han. The Company mainly had the following balances and transactions with related parties: Related party balances December 31, 2020 2021 RMB RMB Amounts due from related parties Ningxia Company (i) 204 202 Others 101 637 Total 305 839 Notes: (i) The balance resulted from the franchise service income. 12 RELATED PARTY TRANSACTIONS (CONTINUED) Related party transactions The major related party transactions for the years ended December 31, 2019, 2020 and 2021 are summarized as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Cash collection service expense to Chuanbang (a) 790 79 39 Franchise income from Bolton School 1,379 518 462 Franchise, training and consulting service income from Ningxia Company 143 (11) — Training service expense to Bolton School 1,112 305 811 Technical consulting service expenses and labor expenses to Beijing Huimoer 1,333 148 — Interest income from loan to Ms. Han Lijuan 325 81 — Notes: (a) Pursuant to an agreement between Chuanbang and the Company, beginning August 2013, Chuanbang provides cash collection service on the Company’s accounts receivable. The fee for the service is calculated based on 2% ~ 20% of the amount collected. |
ORDINARY SHARES AND STATUTORY R
ORDINARY SHARES AND STATUTORY RESERVE | 12 Months Ended |
Dec. 31, 2021 | |
ORDINARY SHARES AND STATUTORY RESERVE | |
ORDINARY SHARES AND STATUTORY RESERVE | 13 ORDINARY SHARES AND STATUTORY RESERVE (a) Treasury shares In the second quarter of 2018, the board of directors authorized an increase to the size of the share repurchase plan from US$30 million to US$70 million and an extension of the term of the plan to June 20, 2019. For the year ended December 31, 2018, 3,768,495 ordinary shares were repurchased on the open market in the amount of RMB202,066. For the year ended December 31, 2020, 100,729 ordinary shares were repurchased with the amount of RMB2,646. No ordinary shares were repurchased for the year ended December 31, 2021. 13 ORDINARY SHARES AND STATUTORY RESERVE (CONTINUED) (b) Statutory reserves and restricted net assets Under PRC rules and regulations, Tarena International’s PRC subsidiaries, consolidated VIEs, and the subsidiaries of the VIEs (the “PRC Entities”) are required to appropriate 10% of their net profit, as determined in accordance with PRC accounting rules and regulations, to a statutory surplus reserve until the reserve balance reaches 50% of their registered capital. In addition, private schools (held by the PRC Entities) which require reasonable returns are required to appropriate 25% of their net profit, as determined in accordance with PRC accounting rules and regulations, to a statutory development fund, whereas in the case of private schools which do not require reasonable return, 25% of the annual increase of their net assets. The appropriation to these statutory reserves must be made before distribution of dividends to Tarena International can be made. For the years ended December 31, 2019, 2020 and 2021, the PRC Entities made appropriations to the statutory reserves of RMB313, RMB5,307 and RMB16,736, respectively. As of December 31, 2020 and 2021, the accumulated balance of the statutory reserves was RMB158,828 and RMB175,564, respectively, which is combined in accumulated deficit. Relevant PRC laws and regulations restrict the WFOE, VIE and VIE’s subsidiary from transferring a portion of their net assets, equivalent to the balance of their paid-in-capital, additional paid-in-capital and statutory reserves to the Company in the form of loans, advances or cash dividends. Relevant PRC statutory laws and regulations restrict the payments of dividends by the Company’s VIE and VIE’s subsidiary from their respective retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The balances of restricted net assets as of December 31, 2020 and 2021 were RMB1,483,412 and RMB1,523,198 respectively. Under applicable PRC laws, loans from PRC companies to their offshore affiliated entities require governmental approval, and advances by PRC companies to their offshore affiliated entities must be supported by bona fide business transactions. (c) Dividend No cash dividend was declared for the years ended December 31, 2019, 2020 and 2021. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | 14 SHARE BASED COMPENSATION Share incentive plans On February 1, 2014, Tarena International adopted the 2014 Share Plan (the “2014 Plan”), pursuant to which Tarena International was authorized to issue options, non-vested shares and non-vested share units to qualified employees, directors and consultants of the Company. The maximum aggregate number of shares which may be issued pursuant to all awards under the 2014 Plan, or the Award Pool, is 1,833,696, provided that the shares reserved in the Award Pool shall be increased on the first day of each fiscal year, commencing with January 1, 2015, if the unissued shares reserved in the Award Pool on such day account for less than 2% of the total number of shares issued and outstanding on a fully-diluted basis on December 31 of the immediately preceding fiscal year, as a result of which increase the shares unissued and reserved in the Award Pool immediately after each such increase shall equal 2% of the total number of shares issued and outstanding on a fully-diluted basis on December 31 of the immediately preceding fiscal year. Share options During the year ended December 31, 2019, the board of the directors of Tarena International approved the grant of options to certain officers and employees to purchase 1,028,728 ordinary shares of Tarena International at exercise prices ranging from US$0.89 to US$1.00 per share. These options vest over a period ranging between 0.25 and 5 years. The contractual term of options ranges from 9 to 10 years. During the year ended December 31, 2020, the board of the directors of Tarena International approved the grant of options to certain officers and employees to purchase 1,236,146 ordinary shares of Tarena International at exercise prices ranging from US$1.00 to US$2.51 per share. These options vest over a period ranging between 0.25 and 5 years. The options have a contractual term of ten years. During the year ended December 31, 2021, the board of the directors of Tarena International approved the grant of options to certain officers and employees to purchase 879,000 ordinary shares of Tarena International at exercise prices ranging from US$0.00 to US$0.37 per share. These options vest over a period ranging between 1 and 2 years. The options have a contractual term of ten years. 14 SHARE BASED COMPENSATION (CONTINUED) Share options (Continued) A summary of share options activity for the year ended December 31, 2021 is as follows: Weighted Weighted Average Number of Average Remaining Aggregate Share Exercise Price Contractual Intrinsic Options US$ Years Value US$ Outstanding at December 31, 2020 2,822,807 1.91 6.85 4,311 Granted 879,000 0.29 — — Exercised (835,615) 0.73 — — Forfeited (126,172) 3.65 — — Outstanding at December 31, 2021 2,740,020 1.67 6.90 1,976 Vested and expected to vest as of December 31, 2021 3,954,565 1.88 5.59 2,059 Exercisable as of December 31, 2021 1,983,975 2.18 5.80 835 The total intrinsic value of options exercised during the years ended December 31, 2019, 2020 and 2021 were RMB7,936, RMB26,301 and RMB6,261, respectively. The Company calculated the fair value of the share options on the grant date using the Binomial option-pricing valuation model. The assumptions used in the valuation model are summarized in the following table. Year Ended December 31, 2019 2020 2021 Expected volatility 52.05%-59.74% 72.22%-78.51% 73.76%-75.78% Expected dividends yield 0% 0% 0% Exercise multiple 2.2-2.8 2.2-2.8 2.2-2.8 Risk-free interest rate per annum 1.58%-2.89% 0.79%-2.08% 1.09%-1.66% The fair value of underlying ordinary shares (per share) US$0.59-US$6.48 US$1.71-US$4.65 US$0.20-US$2.92 The expected volatility was based on the historical volatilities of the Company and comparable publicly traded companies engaged in the similar industry. No income tax benefit was recognized in the consolidated statements of comprehensive loss as the share-based compensation expense was not tax deductible. 14 SHARE BASED COMPENSATION (CONTINUED) Share options (Continued) The fair values of the options granted for the years ended December 31, 2019, 2020 and 2021 are as follows: Year Ended December 31, 2019 2020 2021 US$ US$ US$ Weighted average grant date fair value of option per share 4.84 2.52 0.82 Aggregate grant date fair value of options 4,980 3,115 720 As of December 31, 2021, there was approximately RMB 3,619 of total unrecognized compensation cost related to unvested share options and the unrecognized compensation costs are expected to be recognized over a weighted average period of approximately 0.42 years. Non-vested shares On January 1, 2019, the board of directors of Tarena International approved the grant of 136,581 shares to employees, of which 135,381 non-vested shares shall vest in a five-year period, and 1,200 shares shall vest immediately on the grant date. On April 3, 2019, the board of directors of Tarena International approved the grant of 41,666 non-vested shares to 1 independent director, 1 director and executive officer and 2 former independent directors, of which the vesting period is one year. On August 13, 2019, the board of directors of Tarena International approved the grant of 47,380 non-vested shares to employees, of which the vesting period is five years. On January 1, 2020, the board of directors of Tarena International approved the grant of 35,912 non-vested shares to 1 independent director, of which the vesting period is one year. On March 1, 2020, the board of directors of Tarena International approved the grant of 74,000 non-vested shares to 1 independent director and 1 executive officer, of which the vesting period is one year. On April 9, 2020, the board of directors of Tarena International approved the grant of 143,628 non-vested shares to 1 independent director, 1 director and executive officer, of which the vesting period is one year. On March 1, 2021, the board of directors of Tarena International approved the grant of 69,355 non-vested shares to 1 independent director and 1 executive officer, of which the vesting period is one year. On April 9, 2021, the board of directors of Tarena International approved the grant of 48,690 non-vested shares to 1 independent director and 1 executive director, of which the vesting period is one year. 14 SHARE BASED COMPENSATION (CONTINUED) Non-vested shares (Continued) A summary of the non-vested shares activity under the 2014 Share Plan for the year ended December 31, 2021 is summarized as follows: Number of Non- Weighted Average vested Shares Grant Date Fair Value US$ Outstanding as of December 31, 2020 310,438 7.66 Granted 118,045 3.12 Vested (211,288) 4.40 Forfeited (57,810) 11.80 Outstanding as of December 31, 2021 159,385 7.11 As of December 31, 2021, there was approximately RMB4,869 of total unrecognized compensation cost related to non-vested shares, which is expected to be recognized over a weighted average period of approximately 1.97 years. The total fair value of shares vested during the years ended December 31, 2019, 2020 and 2021 was RMB4,707, RMB9,013 and RMB5,930, respectively. |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
LOSS PER SHARE | |
LOSS PER SHARE | 15 LOSS PER SHARE Basic and diluted loss per share is calculated as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net loss attributable to Class A and Class B ordinary shareholders for basic and diluted earnings per share (1,036,086) (766,643) (474,547) Denominator: Denominator for basic earnings per share: Weighted average number of Class A and Class B ordinary shares outstanding 53,386,075 54,341,213 56,260,925 Loss per Class A and Class B ordinary share basic and diluted (19.41) (14.11) (8.43) |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
LEASES | |
LEASES | 16 LEASES The Company’s leases consist of operating leases for learning centers and office spaces in different cities in the PRC. The Company reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. As of December 31, 2021, the Company had no long-term leases that were classified as a financing lease, and the Company’s lease contracts only contain fixed lease payments and do not contain any residual value guarantee. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets. The Company recognizes rental expense on a straight-line basis over the lease term. The components of rental expense for the years ended December 31, 2019, 2020 and 2021 consist as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Short-term rental expense 93,548 114,723 35,707 Operating lease expense excluding short-term rental expense 218,314 170,022 250,043 Other information related to operating leases is as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Cash paid for amounts included in the measurement of lease liabilities: 314,300 244,491 228,857 Non-cash right-of-use assets in exchange for new lease liabilities: 432,898 484,202 185,875 As of December 31, 2020 and 2021, the weighted average remaining lease term was 3.20 years and 2.76 years, respectively, and the weighted average discount rate was 5.72% and 5.60% for the Group’s operating leases, respectively. The Company’s lease agreements do not have a discount rate that is readily determinable. The incremental borrowing rate is determined at lease commencement or lease modification and represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The weighted-average discount rate was calculated using the discount rate for the lease that was used to calculate the lease liability balance for each lease and the remaining balance of the lease payments for each lease as of December 31, 2020 and 2021. The weighted-average remaining lease terms were calculated by using the remaining lease term and the lease liability balance for each lease as of December 31, 2020 and 2021. 16 LEASES (CONTINUED) As of December 31, 2021, maturities of lease liabilities were as follows: RMB Year ending December 31, 2022 256,667 2023 165,389 2024 83,350 2025 31,251 2026 11,057 2027 and thereafter 3,658 Total lease payments 551,372 Less: imputed interest 38,860 Total 512,512 Less: current portion 239,937 Non-current portion 272,575 Gross rental expenses incurred under operating leases were RMB311,862, RMB284,745 and RMB285,750 for the years ended December 31, 2019, 2020 and 2021, respectively. Sublease rental income of RMB1,587, RMB971, and RMB583 for the years ended December 31, 2019, 2020 and 2021, respectively, were recognized as reductions of gross rental expenses. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 17 COMMITMENTS AND CONTINGENCIES The Company and certain of its current and former officers and directors have been named as defendants in a putative securities class action captioned Yili Qiu v. Tarena International, Inc. et al., (Case No. 1:21-cv-03502) filed on June 22, 2021 in the U.S. District Court for the Eastern District of New York. The complaint asserts that defendants made false or misleading statements in certain SEC filings between August 16, 2016 and November 1, 2019 related to the Company’s business and operating results in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On September 1, 2021, the court entered an order appointing lead plaintiff in this action. On September 14, 2021, the parties filed a joint status report and proposed scheduling stipulation, pursuant to which, the lead plaintiff filed an amended complaint on November 1, 2021. On December 16, 2021, the Company filed its pre-motion letter and the plaintiffs filed their opposition on December 23, 2021. On January 18, 2022, the Company moved to dismiss the complaint. On April 4, 2022, lead plaintiff served its opposition to the motion. Briefing is scheduled to be complete by May 19, 2022. The Company believes that it is still too early to assess the potential outcome of this class action lawsuit. The Company intends to defend itself vigorously in the action. From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 18 SEGMENT INFORMATION The Company has organized its operations into two segments: Adult Professional Education and Childhood & adolescent Quality Education Services, which reflects the way the Company evaluates its business performance and manages its operations by the Company’s chief operating decision maker (“CODM”). The Company’s 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 Company. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The CODM evaluates performance based on each reporting segment’s revenues, cost of revenues, and gross profit. The CODM does not review balance sheet information to measure the performance of the reportable segments, nor is this part of the segment information regularly provided to the CODM. Net revenues, cost of revenues, and gross profit by segment for the years ended December 31, 2019, 2020 and 2021 were as follows. Year Ended December 31, 2021 Adult Childhood & adolescent Professional Quality Education Education Services Total RMB RMB RMB Net revenues 1,150,247 1,236,273 2,386,520 Cost of revenues (409,326) (792,093) (1,201,419) Gross profit 740,921 444,180 1,185,101 Year Ended December 31, 2020 Adult Childhood & adolescent Professional Quality Education Training Training Total RMB RMB RMB Net revenues 1,136,043 761,840 1,897,883 Cost of revenues (420,349) (646,493) (1,066,842) Gross profit 715,694 115,347 831,041 Year Ended December 31, 2019 Childhood & Adult adolescent Professional Quality Education Training Training Total RMB RMB RMB Net revenues 1,527,185 524,169 2,051,354 Cost of revenues (627,765) (546,069) (1,173,834) Gross profit (loss) 899,420 (21,900) 877,520 |
PARENT ONLY FINANCIAL INFORMATI
PARENT ONLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
PARENT ONLY FINANCIAL INFORMATION | |
PARENT ONLY FINANCIAL INFORMATION | 19 PARENT ONLY FINANCIAL INFORMATION The following presents condensed parent company financial information of Tarena International. Condensed Balance Sheets December 31, 2020 2021 2021 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 3,793 23,506 3,689 Prepaid expenses and other current assets 699 24 4 Due from subsidaries 410,910 407,795 63,991 Total current assets 415,402 431,325 67,684 Investment in subsidiaries (1,241,409) (1,700,223) (266,802) Total assets (826,007) (1,268,898) (199,118) LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other current liabilities (1) 7,213 5,781 907 Due to intercompany 298,782 309,241 48,527 Total current liabilities 305,995 315,022 49,434 Total liabilities 305,995 315,022 49,434 Commitments and contingencies — — — Shareholders’ equity: Class A ordinary shares (US$0.001 par value, 860,000,000 shares authorized, 55,546,254 and 56,593,157 shares issued, 48,346,384 and 49,393,287 shares outstanding as of December 31, 2020 and 2021, respectively) 349 355 56 Class B ordinary shares (US$0.001 par value, 40,000,000 shares authorized, 7,206,059 shares issued and outstanding as of December 31, 2020 and 2021, respectively) 74 74 12 Treasury shares (7,199,870 and 7,199,870 Class A ordinary shares as of December 31, 2020 and 2021, at cost) (459,815) (459,815) (72,155) Additional paid-in capital 1,324,161 1,347,205 211,406 Accumulated other comprehensive income 49,120 48,699 7,641 Accumulated deficit (2,045,891) (2,520,438) (395,512) Total shareholders’ deficit (1,132,002) (1,583,920) (248,552) Total liabilities and shareholders’ equity (826,007) (1,268,898) (199,118) (1) Mainly related to repurchase of treasury shares. 19 PARENT ONLY FINANCIAL INFORMATION (CONTINUED) Condensed Statements of Comprehensive Loss Year Ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Selling and marketing expenses — (693) (323) (51) General and administrative expenses (29,011) (16,890) 5,955 934 Operating (loss) gain (29,011) (17,583) 5,632 883 Equity in loss of subsidiaries (1,007,788) (748,006) (480,114) (75,340) Foreign currency exchange gains (loss) 115 (1,109) (268) (42) Interest (expense) income (67) 55 203 32 Other income 665 — — — Loss before income taxes (1,036,086) (766,643) (474,547) (74,467) Income tax expense — — — — Net loss (1,036,086) (766,643) (474,547) (74,467) Other comprehensive income (loss) Foreign currency translation adjustment 914 (2,266) (421) (66) Comprehensive loss (1,035,172) (768,909) (474,968) (74,533) Condensed Statements of Cash Flows Year Ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Operating activities: Net cash (used in) provided by operating activities (3,315) (8,010) 14,458 2,269 Financing activities: Issuance of Class A ordinary shares in connection with exercise of share options 3,335 3,354 3,947 619 Repayment of bank borrowings (13,726) — — — Repurchase of treasury shares (5,058) — — — Net cash (used in) provided by financing activities (15,449) 3,354 3,947 619 Changes in cash and cash equivalents (18,764) (4,656) 18,405 2,888 Effect of foreign currency exchange rate changes on cash and cash equivalents 856 850 1,308 207 Net (decrease) increase in cash and cash equivalents (17,908) (3,806) 19,713 3,095 Cash and cash equivalents at beginning of year 25,507 7,599 3,793 594 Cash and cash equivalents at end of year 7,599 3,793 23,506 3,689 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 20 SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of issuance of this consolidated financial statements, and does not identify any events with material financial impact on the Company’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | (a) Principles of consolidation The consolidated financial statements include the financial statements of Tarena International, its wholly-owned subsidiaries, and VIEs which Tarena International is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. |
Liquidity condition and going concern | (b) Liquidity condition and going concern The Company incurred net losses from operations of RMB1,039 million, RMB771 million and RMB476 million for the years ended December 31, 2019, 2020 and 2021, respectively. For the years ended December 31, 2019 and 2020, the Company generated net cash outflows from operating activities amounting to RMB32 million and RMB109 million, respectively. For the year ended December 31, 2021, the Company generated net cash inflow from operating activities amounting to RMB9 million. As of December 31, 2021, the Company’s net current liability was RMB2,321 million. The Company’s cash balance as of December 31, 2021 is not sufficient to meet its cash obligations or liabilities when they become due over the next twelve months from the date of issuance of the consolidated financial statements. The Company’s operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to reduce or eliminate its net losses in the foreseeable future. If management is not able to increase revenue and/or manage operating expenses in line with revenue forecasts, the Company may not be able to achieve profitability. The Company’s deferred revenue, which amounted to RMB2,025 million as of December 31, 2021, does not represent potential cash outflows in the future but is expected to be recognized in revenues in the end. These adverse conditions and events indicate there could be substantial doubt about the Company’s ability to continue as a going concern. For the next 12 months from the issuance date of this report, the Company plans to continue implementing various measures to boost revenue and controlling the cost and expenses within an acceptable level by offering online courses to all students, implementing comprehensive budget control and operation assessment, implementing enhanced vendor review and selection processes as well as enhancing internal controls on payable management, creating synergy of the Company’s resources and improving cash inflow by debt financing and the sale of properties. As of the date of issuance of the consolidated financial statements, the Company has two unused lines of credit of RMB200 million and RMB3 million with expiration dates June 2022 and February 2023, respectively. The Company could enter into loan contracts under the lines of credit up to their expiration dates and agree to a loan term of up to twelve months. Besides, the Company’s office building, which locates in Beijing, with a carrying value of approximately RMB95 million as of December 31, 2021, has been pledged for the Company’s short-term bank loans amounting to RMB30 million (see note 8). The office building is available for sale for future operating fund shortage after repayment of borrowing and release mortgage. Given the considerable gross margin ratio of its operations, the balance of deferred revenue mentioned above and the two available funding sources mentioned above, the Company assesses current working capital is sufficient to meet its obligations for the next 12 months from the issuance date of this report. Accordingly, management continues to prepare the Company’s consolidated financial statements on going concern basis. |
Use of estimates | (c) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include goodwill impairment and long term investments, the allowance for credit losses of accounts receivable, amounts due from related parties, prepaid expenses and other current assets and other non-current assets, the realizability of deferred income tax assets, the accruals for other contingencies, the useful lives and the recoverability of the carrying amounts of property and equipment. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. To allocate the transaction price for contracts with multiple deliverables and estimate the standalone selling price, the Company considers market data, including its pricing strategies for the products being evaluated and other similar products it offers, competitor pricing to the extent data is available, and costs to determine whether the estimated selling price yields an appropriate profit margin. |
Foreign currency | (d) Foreign currency The functional currency of Tarena International and Tarena Hong Kong Limited (“Tarena HK”) is the USD. The functional currency of Techarena Canada Inc. is the CAD. The functional currency of Taiwan Tarena Counseling Software Co., Ltd. is the TWD. The functional currency of Tarena International’s PRC subsidiaries, consolidated VIE, and the subsidiaries of the VIE is the RMB. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rate at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gains (losses) in the consolidated statements of comprehensive loss. Assets and liabilities of entities with functional currencies other than RMB are translated into RMB using the exchange rate on the balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the reporting period. The resulting foreign currency translation adjustment are recorded in accumulated other comprehensive loss within shareholders’ equity. Since the RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. |
Cash, cash equivalents, restricted cash and time deposits | (e) Cash, cash equivalents, restricted cash and time deposits Cash consists of cash in bank and deposits placed in third party payment processors of Alipay, Wechat wallet and Baidu wallet, which are unrestricted as to withdrawal. Cash equivalents consist of interest-bearing certificates of deposit with initial term of no more than three months when purchased. Time deposits, which mature within one year as of the balance sheet date, represent interest-bearing certificates of deposit with an initial term of greater than three months when purchased. Time deposits which mature over one year as of the balance sheet date are included in non-current assets. As of December 31, 2020, restricted cash was the cash received from one financial service provider in relation to a tuition fee loan arrangement offered to younger aged students. The restricted cash would be released to cash along with the service provided to the students. The Company has terminated this loan arrangement with the financial service provider in 2021. Cash, cash equivalents, time deposits and restricted cash maintained at financial institutions consist of the following: December 31, 2020 2021 RMB RMB RMB denominated bank deposits with financial institutions in the PRC 278,789 405,296 US dollar denominated bank deposits with financial institutions in the PRC 81,283 1,234 US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”) 793 22,001 HK dollar denominated bank deposits with financial institutions in HK SAR 50 64 RMB denominated bank deposits with a financial institution in HK SAR 2,022 409 US dollar denominated bank deposits with a financial institution in the U.S. 117 229 TWD denominated bank deposits with a financial institution in Taiwan 579 1,035 CAD denominated bank deposits with a financial institution in Canada 1,172 133 Total 364,805 430,401 To limit exposure to credit risk relating to bank deposits, the Company primarily places bank deposits only with large financial institutions in the PRC, HK SAR, Taiwan, Canada and the U.S. |
Accounts receivable | (f) Accounts receivable In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements Accounts receivable primarily represent tuition fees due from students, universities and colleges and financial service providers. Accounts receivable which are due over one year as of the balance sheet date are presented as non-current assets. The unearned interest on accounts receivable which are due over one year is reported in the consolidated balance sheets as a direct deduction from the principal amount of accounts receivable. The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its students, universities and colleges or financial service providers to make required payments. Accounts receivable is considered past due based on its contractual terms. In establishing the allowance, management considers historical losses, the financial condition, the accounts receivable aging, the payment patterns and the forecasted information in pooling basis upon the use of the Current Expected Credit Loss Model (“CECL Model”) in accordance with ASC topic 326. Accounts receivable that are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is a time lag between when the Company estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Company takes a write off of the account balances when the Company can demonstrate all means of collection on the outstanding balances have been exhausted. |
Property and equipment | (g) Property and equipment Property and equipment are recorded at cost. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. The estimated useful life of property and equipment is as follows: Office buildings 45 years Furniture 5 years Office equipment 3 Leasehold improvements Shorter of the lease term or the estimated useful life of the assets Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed of and proceeds realized thereon. Property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying value of an asset or asset group exceeds its estimated undiscounted future cash flows, an impairment loss is recognized by the amount that the carrying value exceeds the estimated fair value of the asset or asset group. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell, and are no longer depreciated. No impairment of long-lived assets was recognized for any of the years presented. |
Goodwill | (h) Goodwill In January 2017, the FASB issued ASU 2017-04, simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. 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, versus determining an implied fair value in Step two to measure the impairment loss. We adopted this guidance on a prospective basis on January 1, 2020 with no material impact on its consolidated financial statements and related disclosures as a result of adopting the new standard. We assess goodwill for impairment on annual basis in accordance with ASC 350-20, Intangibles – Goodwill and Other: Goodwill Quantitative goodwill impairment test is used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired. If the fair value of the reporting unit is less than its carrying amount, 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. The Company performs the annual goodwill impairment assessment using qualitative and quantitative impairment test on September 30 and no goodwill impairment has been identified. |
Long-term investments | (i) Long-term investments ● Equity investments without readily determinable fair values Equity investments without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes in accordance with ASC topic 321, Investments – Equity Securities. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (i) Long-term investments (Continued) ● Equity method investments For an investee company over which the Company has the ability to exercise significant influence, but does not have a controlling interest, the Company accounted for those using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%. Under the equity method, the Company’s share of the post-acquisition profits or losses of the equity investment is recognized in the consolidated statements of comprehensive loss; and the Company’s share of post-acquisition movements in equity is recognized in equity in the consolidated balance sheets. Unrealized gains on transactions between the Company and an entity in which it has recorded an equity investment are eliminated to the extent of the Company’s interest in the entity. To the extent of the Company’s interest in the investment, unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an entity in which it has recorded an equity investment equals or exceeds the Company’s interest in the entity, it does not recognize further losses, unless it has incurred obligations or made payments on behalf of the equity investee. The Company evaluates the equity method investments for impairment. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. ● Available-for-sale debt securities Debt securities that the Company has positive intent and ability to hold to maturity are classified as held-to-maturity debt securities and are stated at amortized cost. Debt securities that the Company has the intent to hold the security for an indefinite period or may sell the security in response to the changes in economic conditions are classified as available for sale and reported at fair value. Unrealized gains and losses (other than impairment losses) are reported, net of the related tax effect, in other comprehensive income (OCI). Upon sale, realized gains and losses are reported in net income. The Company monitors the investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. |
Revenue recognition | (j) Revenue recognition The Company evaluated and recognized revenue based on the five steps set forth in ASC 606 by: ● identifying the contract(s) with the customer; ● identifying the performance obligations in the contract; ● determining the transaction price; ● allocating the transaction price to performance obligations in the contract; and ● recognizing revenue as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”). These criteria as they relate to each of the following major revenue generating activities are described below. Revenue is presented net of value added taxes (“VAT”) at rates ranging between 3% and 13%, and surcharges. VAT to be collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. Tuition revenue The Company provides IT and non-IT related training courses to both adult professional education and childhood & adolescent quality education services. The Company also cooperate with universities and colleges in China to offer joint-major degree programs in accordance with the higher education reform policies of each province. The Company integrates its selected courses into universities and colleges’ standard undergraduate curriculum for students enrolled in such joint-major programs. Students can attend part of the courses in our established on-campus learning sites and part of the courses at the Company’s learning centers. A majority of contract of tuition service is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fees are recognized as revenue proportionately as the training courses are delivered, with unearned portion of tuition fees being recorded as deferred revenue. For certain students who borrow the tuition fee from financial service providers, the Company also provides a guarantee service to financial service providers whereas in the event of default, the financial service providers are entitled to receive unpaid interest and principal from the Company. Given that the Company effectively takes on all of the credit risk of the borrowers and are compensated by the tuition fees charged, the guarantee is deemed as a service and the guarantee exposure is recognized as a stand-ready obligation in accordance with ASC Topic 460, Guarantees (see accounting policy for Guarantee Liabilities). The Company first allocates the transaction price to the guarantee liabilities, if any, in accordance with ASC Topic 460, Guarantees, which requires the guarantee to be measured initially at fair value based on the stand ready obligation. Then the remaining considerations are allocated to the tuition fees consistent with the guidance in ASC 606. Certain qualified students are allowed to pay their tuition fees on installment for a period of time exceeding one year. When tuition services are sold on installment terms that exceeds one year beyond the point in time that revenue is recognized, the contract contains a significant financing component, and the consideration promised by the customer is variable. The receivable, and therefore the revenue is recorded at the present value of the payments. The difference between the present value of the receivable and the nominal or principal value of the tuition fees is recognized as interest income over the contractual repayment period using the effective interest rate method. The interest rate used to determine the present value of total amount receivable is the rate subject to management decision on the date of the transaction and it reflects the rate that the students can obtain financing of a similar nature from other sources at the date of the transaction. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j) Revenue recognition (Continued) The Company enters into arrangements with certain students that purchase multiple services. The performance obligations identified include tuition service and practical tutoring service. The Company treats training contracts with multiple performance obligations as separate units of accounting for revenue recognition purposes and recognizes revenue during the contract period when each performance obligation is satisfied. The Company allocates the transaction price to each performance obligations based on stand-alone selling price. Refunds are provided to students if they withdraw from classes, and usually only those unearned portions of the fee which is available will be refunded. A refund liability represents the amounts of consideration received but are not expected to be entitled to earn, and thus are not included in the transaction price because these amounts are expected to be eventually refunded to students. The Company determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. Reclassification was made from deferred revenue to refund liabilities, which was recorded under accrued expenses and other current liabilities. Certification service revenue The Company provides certification service to students who complete the training course and enroll for the exams. The Company is responsible for the certification service, including organization, proctoring and grading of exams, and providing the certificates to students. All certificates are issued by third parties to the students who pass the exam. The Company is the principal to end customers. The Company acts as the principal in providing the certificate service to the students and recognizes revenue on gross basis because the Company is able to determine the price, acts as the main obligor in the arrangement, and, is responsible for fulfilling the services ordered by the students. Cash received before the students taking the exam is recorded as deferred revenue. Each contract of certification service is accounted for as a single performance obligation which is satisfied at a point in time. The performance obligation is satisfied when the certificates are provided to the students and the consideration are received, then the received consideration is recognized as certification service revenue. AI and software development revenue The Company provides AI and software development service to universities and colleges. The Company is responsible for the installation, debugging and development of AI software. The Company is the principal to end customers. The Company acts as the principal in providing the AI and software development service to universities and colleges and recognizes revenue on gross basis because the Company is able to determine the price, acts as the main obligor in the arrangement, and, is responsible for fulfilling the services ordered by the universities and colleges. Cash received before inspection and acceptance is recorded as deferred revenue. Each contract of AI and software development service is accounted for as a single performance obligation which is satisfied at a point in time. The performance obligation is satisfied when the AI and software development service are inspected and accepted, then AI and software development service revenue is recognized. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j) Revenue recognition (Continued) Loan referral service revenue The Company promotes loan products of financial service providers to its adult students, who need financial assistance for the payment of their tuition fees, in exchange for a referral fee generally at a rate of the principal amount of the loans. Each contract of loan referral service is accounted for as a single performance obligation which is satisfied at a point in time. Generally, the early repayment and default loan are excluded from the effective principal amount of the loans, and thus are not included in the transaction price because these amounts are expected to be eventually refunded to financial service providers. The Company determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. Refund liability was recorded under accrued expenses and other current liabilities. Historically, the Company has not had material refunds. Loan referral service revenue is recognized upon the initiation of the loans as the performance obligation is satisfied and confirmed with the financial service providers on a monthly basis. Contract acquisition costs The Company has used practical expedients as allowed under ASC 606 to generally expenses sales commissions when incurred, because the amortization period would be one year or less. These costs are recorded as sales and marketing expenses. Contract liability The Company does not have amounts of contract assets since the Company transfers the promised services to customers and have the billing right or after the customers pay consideration. The contract liabilities consist of deferred revenue, which represent the Company has received consideration but has not satisfied the related performance obligations. The revenue recognized for years ended December 31, 2020 and 2021 that was previously included in the deferred revenue balances as of December 31, 2019 and December 31, 2020 was RMB905,867 and RMB1,221,729, respectively. The Company’s deferred revenue amounted to RMB1,998,198 and RMB2,024,852 as of December 31, 2020 and 2021, respectively. Starting from the second half of year 2019, the Company has entered into contracts that have an original expected length of more than one year with certain students. The remaining performance obligations of these contracts are as following: For the years ending December 31, 2022 2023 Total RMB RMB RMB Revenue expected to be recognized on these contracts 3,133 17,200 20,333 The Company has selected to apply the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations in contracts that have an original expected length of one year or less. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j) Revenue recognition (Continued) Refund liability mainly related to the estimated refunds that are expected to be provided to students if they decide they no longer want to take the course. Refund liability estimates are based on historical refund ratio on a portfolio basis using the expected value method. |
Cost of revenues | (k) Cost of revenues Cost of revenues consists of payroll and employee benefits, rent expenses of learning centers, depreciation relating to property and equipment used for operating the learning centers, and other operating costs that are directly attributed to the provision of training services. |
Guarantee liabilities | (l) Guarantee liabilities For certain students who borrow the tuition fee from financial service providers, the Company provides a guarantee service to financial service providers whereas in the event of default, the financial service providers are entitled to receive unpaid interest and principal from the Company. In general, any unpaid interest and principal are paid when the borrower does not repay as scheduled. For accounting purposes, at the inception of each loan, the Company recognizes the guarantee liability in accrued expenses and other current liabilities at fair value in accordance with ASC 460-10, which incorporates the expectation of potential future payments under the guarantee and takes into both non-contingent and contingent aspects of the guarantee. Subsequent to the loan’s inception, the guarantee liability is composed of two components: (i) ASC Topic 460 component; and (ii) ASC Topic 450 component. The liability recorded based on ASC Topic 460 is determined on a loan by loan basis and it is reduced when the Company is released from the underlying risk, i.e. as the loan is repaid by the borrower or when the investor is compensated in the event of a default. This component is a stand ready obligation which is not subject to the probable threshold used to record a contingent obligation. The guarantee liabilities are generally reduced by recording a credit to guarantee service revenue as the guarantor is released from the underlying guaranteed risk. Subsequent to initial recognition, the guarantee obligation’s release from risk has typically been recognized over the term of the guarantee using a rational amortization method. The other component is a contingent liability determined based on probable loss considering the actual historical performance and current conditions, representing the obligation to make future payouts under the guarantee liability in excess of the stand-ready liability, measured using the guidance in ASC Topic 450, loans with similar risk characteristics are pooled into cohorts. The ASC 450 contingent component is recognized as part of operating expenses. At all times the recognized liability (including the stand ready liability and contingent liability) is at least equal to the probable estimated losses of the guarantee portfolio. |
Advertising costs | (m) Advertising costs Advertising costs are expensed as incurred and included in selling and marketing expenses. Advertising costs were RMB416,814, RMB297,484 and RMB229,571 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Operating lease | (n) Operating leases The Company adopted Accounting Standards Update (“ASU”) 2016-02 Leases (“ASC 842”) as of January 1, 2019, using the non-comparative transition option pursuant to ASU 2018-11. Therefore, the Company has not restated comparative period financial information for the effects of ASC 842, and will not make the new required lease disclosures for comparative periods beginning before January 1, 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among others things (i) allowed the Company to carry forward the historical lease classification; (ii) did not require the Company to reassess whether any expired or existing contracts are or contain leases; (iii) did not require the Company to reassess initial direct costs for any existing leases. The Company identifies lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. For all operating leases except for short-term leases, the Company recognizes operating right-of-use assets and operating lease liabilities. Leases with an initial term of 12 months or less are short-term lease and not recognized as right-of-use assets and lease liabilities on the consolidated balance sheet. The Company recognizes lease expense for short-term leases on a straight-line basis over the lease term. The operating lease liabilities are recognized based on the present value of the lease payments not yet paid, discounted using the Company’s incremental borrowing rate over a similar term of the lease payments at lease commencement. Some of the Company’s lease agreements contain renewal options; however, the Company do not recognize right-of-use assets or lease liabilities for renewal periods unless it is determined that the Company is reasonably certain of renewing the lease at inception or when a triggering event occurs. The right-of-use assets consist of the amount of the measurement of the lease liabilities and any prepaid lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Government grant | (o) Government grant Government grant is recognized when there is reasonable assurance that the Company will comply with the conditions attached to it and the grant will be received. Government grant for the purpose of giving immediate financial support to the Company with no future related costs or obligation is recognized in the Company’s consolidated statements of comprehensive loss when the grant becomes receivable. Government grants of RMB1,665, RMB4,735 and RMB3,760 were recognized and included in other income for the years ended December 31, 2019, 2020 and 2021, respectively. |
Research and development expense | (p) Research and development costs Research and development costs are expensed as incurred. |
Employee benefits | (q) Employee benefits Pursuant to relevant PRC regulations, the Company is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at rates ranging from 20.7% to 51.1% on a standard salary base as determined by local social security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of comprehensive loss when the related service is provided. For the years ended December 31, 2019, 2020 and 2021, the costs of the Company’s obligations to the defined contribution plans amounted to RMB143,438, RMB53,750, and RMB133,012, respectively. The Company has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above. |
Income taxes | (r) Income taxes The Company follows the asset and liability method in accounting for income taxes in accordance to ASC topic 740 “Taxation” (“ASC 740”), Income Taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The Company adopted ASC 740 to account for uncertainty in income taxes. ASC 740 clarifies the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the consolidated financial statements. The Company recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to an unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of comprehensive loss. For the year ended December 31, 2021, there were no uncertain tax positions and the Company does not expect that the position of unrecognized tax benefits will materially change within the next twelve months. In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC authorities generally have up to five years to assess underpaid tax plus penalties and interest for PRC entities’ tax filings. In 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 above. |
Share based compensation | (s) Share based compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, net of estimated forfeitures, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. Forfeiture rates are estimated based on historical of employee turnover rates. |
Commitments and contingencies | (t) Commitments and contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Loss per share | (u) Loss per share Basic loss per Class A and Class B ordinary share is computed by dividing net loss attributable to Tarena International’s Class A and Class B ordinary shareholders by the weighted average number of Class A and Class B ordinary shares outstanding during the year using the two-class method. Under the two-class method, net loss attributable to Tarena International’s Class A and Class B ordinary shareholders is allocated between Class A and Class B ordinary shares and other participating securities, if any, based on participating rights in undistributed loss. Diluted loss per share is calculated by dividing net loss attributable to Tarena International’s Class A and Class B ordinary shareholders as adjusted for the effect of dilutive Class A and Class B ordinary share equivalents, if any, by the weighted average number of Class A and Class B ordinary and dilutive Class A and Class B ordinary share equivalents outstanding during the year. Class A and Class B ordinary share equivalents include the Class A and Class B ordinary shares issuable upon the exercise of the outstanding share options (using the treasury stock method). Potential dilutive securities are not included in the calculation of diluted loss per Class A and Class B ordinary share if the impact is anti-dilutive. If there is a loss from continuing operations, diluted earnings per share (“EPS”) would be computed in the same manner as basic EPS is computed, even if an entity has net income after adjusting for a discontinued operation or an extraordinary item. |
Segment reporting | (v) Segment reporting The Company uses the management approach in determining its operating segments. The management approach considers the internal reporting used by the Company’s chief operating decision maker for making decisions about the allocation of resources to and the assessment of the performance of the segments of the Company. Management has determined that the Company has two operating segments, which is the Adult Professional Education segment and Childhood & adolescent Quality Education Services segment. The majority of the Company’s operations and customers are located in the PRC. Consequently, no geographic information is presented. |
Fair value measurements | (w) Fair value measurements The Company applies the provisions of ASC Topic 820, Fair Value Measurements and Disclosures, 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (w) Fair value measurements (Continued) ASC Topic 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC Topic 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. ● Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances. Fair value measurements on a recurring basis The carrying amounts of cash and cash equivalents, current time deposits, accounts receivable, loans to employees, amounts due from related parties, accounts payable, amounts due to related parties, short-term bank loans, accrued expenses and other current liabilities as of December 31, 2020 and 2021 approximate their fair value because of short maturity of these instruments. The carrying amounts of non-current time deposits as of December 31, 2020 and 2021 approximates their fair value since the interest rates of the time deposits did not differ significantly from the market interest rates for similar types of time deposits. Fair value measurements on a non-recurring basis The Company measures certain financial assets, including the long-term investments at fair value on a non-recurring basis only if an impairment charge were to be recognized. The Company’s non-financial assets, such as property and equipment, intangible assets, right-of-use assets and goodwill, would be measured at fair value only if they were determined to be impaired. |
Recently issued accounting standards | (x) Recently issued accounting standards In February 2021, the FASB issued ASU No. 2021-10, Franchisors— Government Assistance (Topic 832)—Disclosures by Business Entities about Government Assistance Recently issued ASUs by the FASB, except for the ASU mentioned above, have no material impact on the Company’s consolidated results of operations or financial position. |
DESCRIPTION OF BUSINESS, ORGA_2
DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Concentration Risk [Line Items] | |
Schedule of Variable Interest Entity Information | December 31, 2020 2021 RMB RMB Cash 1,332 8,204 Amounts due from Tarena International and its wholly-owned subsidiaries 113,021 141,104 Amounts due from a related party 4 4 Prepaid expenses and other current assets 4,476 27,435 Total current assets 118,833 176,747 Property and equipment, net 1,552 2,801 Long term investments, net 48,380 29,880 Right-of-use assets 5,540 11,108 Other non-current assets 539 1,057 Total assets 174,844 221,593 Accounts payable 8,610 320 Deferred revenue-current 138,529 167,224 Operating lease liabilities-current 3,377 3,949 Income taxes payable 2,045 2,045 Accrued expenses and other current liabilities 3,576 22,344 Amounts due to Tarena International and its wholly-owned subsidiaries 31,405 56,052 Total current liabilities 187,542 251,934 Deferred revenue-non current 133 134 Operating lease liabilities-non current 1,536 5,953 Other non-current liabilities 122 122 Total liabilities 189,333 258,143 Year Ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues 32,013 127,043 140,541 Net (loss) income (37,565) 32,869 (39,072) Net cash provided by operating activities 36,902 112,106 10,308 Net cash used in investing activities (34,226) — — Net cash used in financing activities (3,841) (110,985) (3,437) |
Net revenues [Member] | Product concentration [Member] | |
Concentration Risk [Line Items] | |
Schedule of Revenue Concentration | Year Ended December 31, 2019 2020 2021 Childhood & adolescent Robotics Programming 9.3 % 15.7 % 27.9 % Childhood & adolescent Computer Programming 12.8 % 20.6 % 19.4 % Java 19.0 % 13.8 % 11.8 % Digital Arts 22.9 % 16.8 % 11.0 % Total 64.0 % 66.9 % 70.1 % |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Cash, cash equivalents, time deposits and restricted cash | December 31, 2020 2021 RMB RMB RMB denominated bank deposits with financial institutions in the PRC 278,789 405,296 US dollar denominated bank deposits with financial institutions in the PRC 81,283 1,234 US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”) 793 22,001 HK dollar denominated bank deposits with financial institutions in HK SAR 50 64 RMB denominated bank deposits with a financial institution in HK SAR 2,022 409 US dollar denominated bank deposits with a financial institution in the U.S. 117 229 TWD denominated bank deposits with a financial institution in Taiwan 579 1,035 CAD denominated bank deposits with a financial institution in Canada 1,172 133 Total 364,805 430,401 |
Schedule of Property, Plant and Equipment, Useful Life | Office buildings 45 years Furniture 5 years Office equipment 3 Leasehold improvements Shorter of the lease term or the estimated useful life of the assets |
Schedule of Change In Refund Liability | For the years ending December 31, 2022 2023 Total RMB RMB RMB Revenue expected to be recognized on these contracts 3,133 17,200 20,333 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of Accounts receivable | December 31, 2020 2021 RMB RMB Accounts receivable: Gross 43,191 64,596 Unearned interest (995) (1,061) Total accounts receivable 42,196 63,535 Less: allowance for credit losses 9,214 14,987 Accounts receivable, net 32,982 48,548 |
Summary of classification of accounts receivable | December 31, 2020 2021 RMB RMB Accounts receivable – current portion 32,790 48,458 Accounts receivable – non-current portion 192 90 Total accounts receivable, net 32,982 48,548 |
Summary of allowance for doubtful accounts | Year Ended December 31, 2019 2020 2021 RMB RMB RMB Balance at the beginning of the year — 2,251 9,214 Additions charged to bad debt expense 2,251 6,963 5,773 Balance at the end of the year 2,251 9,214 14,987 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of Prepaid expenses and other current assets | December 31, 2020 2021 RMB RMB Prepaid expenses and other current assets: Prepaid deposits (a) 25,238 24,518 Loans made to employees (b) 20,421 20,584 Prepaid value-added tax 40,352 18,350 Professional fee 11,169 18,244 Prepaid rental expenses 12,304 15,669 Long-term investment disposal receivable — 13,000 Inventory 4,626 5,870 Prepaid advertising expenses 7,656 2,654 Others 16,587 20,868 Total prepaid expenses and other current assets 138,353 139,757 (a) It mainly included prepaid advertising deposits. (b) The Company provides short-term interest-free loans to employees for their purchase of residence or other personal needs. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of Property and Equipment | Property and equipment consist of the following: December 31, 2020 2021 RMB RMB Office buildings 285,867 169,761 Furniture 48,253 43,061 Office equipment 409,682 393,561 Leasehold improvements 243,407 247,652 Total property and equipment 987,209 854,035 Less: accumulated depreciation 522,719 554,594 Property and equipment, net 464,490 299,441 |
Schedule of Depreciation Expense | Depreciation expense for property and equipment was allocated to the following: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Cost of revenues 150,188 132,898 93,503 Selling and marketing expenses 19,303 18,137 11,999 General and administrative expenses 22,314 18,867 15,345 Research and development expenses 733 1,354 913 Total 192,538 171,256 121,760 |
LONG-TERM INVESTMENTS, NET (Tab
LONG-TERM INVESTMENTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LONG-TERM INVESTMENTS, NET | |
Schedule of Long-term investments | December 31, 2020 2021 RMB RMB Equity investments without readily determinable fair values A company providing mechanic training (a) 12,000 12,000 A company providing intelligent robot products (b) 24,000 — A company providing information sharing IT platform (c) 22,500 — Other equity investments without readily determinable fair values (d) 30,880 17,880 Impairment of equity investments without readily determinable fair values (37,000) — Total equity investments without readily determinable fair values, net 52,380 29,880 Equity method investments Companies providing hockey program management 2,132 2,079 A company providing Internet product solutions (e) 13,604 15,014 Impairment of equity method investments (524) (524) Total equity method investments, net 15,212 16,569 Available-for-sale investment (f) 15,000 — Impairment of available-for-sale investments (f) (15,000) — Total available-for-sale investment, net — — Total long-term investments, net 67,592 46,449 (a) In October 2015, the Company paid RMB 12,000 in cash to acquire 2.86% of the total equity interest in an education company, which provides training for senior mechanic in vehicle maintenance and repair. No impairment loss was recognized as of December 31, 2020 and 2021, and for the years then ended. (b) In May 2017, the Company paid RMB 24,000 in cash to acquire 6% of the total equity interest in a company, which provides intelligent robot product. Based on the fact that the business conditions of this investee deteriorated, the Company recognized impairment loss of RMB 24,000 for the year ended December 31, 2018, and with an impairment balance of RMB 24,000 as of December 31, 2020, which has been written off during the year of 2021. (c) In July 2017, the Company paid RMB 22,500 in cash to acquire 15% of the total equity interest in a company, which provides an information sharing IT platform. In November 2021, the Company sold 15% of the total equity interest by a price of RMB 22,500 . The consideration of RMB 9,500 was collected as of December 31, 2021, and the remaining consideration of RMB 13,000 was recorded as prepaid and other current asset, which was collected in January 2022. No impairment loss was recognized as of December 31, 2020. (d) During the years ended December 31, 2018 and 2019, the Company acquired minority equity interests in several third-party companies. The Company recognized no impairment loss for the years ended December 31, 2020 and 2021, respectively, and with an impairment balance of RMB 13,000 as of December 31, 2020, which has been written off during the year of 2021. (e) In January 2018, the Company paid RMB 14,000 in cash to acquire 20% of equity interest of a company which provides IT consulting services and programming and accounted for the investment using equity method. No impairment loss was recognized as of December 31, 2020 and 2021, and for the years then ended. 6 LONG-TERM INVESTMENTS, NET (CONTINUED) (f) In October 2016, the Company paid RMB 10,000 in cash to acquire 13.9% equity interest in a private company, which provides employment course trainings and recruitment services. In December 2016, the fair value of this investment increased to RMB 15,000 . However, as it was found that the investee provided overstated financial statements to the new investors during the private placement in 2017 and lost in a lawsuit sued by one of the shareholders. Accordingly, the Company determined it to be fully impaired in 2017. The Company recognized no impairment loss for the years ended December 31, 2020 and 2021, respectively, and with an impairment balance of RMB 15,000 as of December 31, 2020, which has been written off during the year of 2021. |
OTHER NON-CURRENT ASSETS, NET (
OTHER NON-CURRENT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER NON-CURRENT ASSETS, NET | |
Schedule of Other non-current assets | December 31, 2020 2021 RMB RMB Other non-current assets: Rent and property management deposits 51,786 48,531 Loans made to employees (a) 30,284 16,825 Prepayment for equipment and leasehold improvement 10,276 8,443 Others 3,479 2,241 Total other non-current assets, net 95,825 76,040 (a) Starting from 2016, the Company began to provide five-year loans with annual interest rates within a range from 3.325% to 5.0% to the employees for their purchase of houses. Some employees’ loans are pledged by their share options. The interest was paid monthly and the principal was repaid upon maturity . |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of Accrued Expenses and Other Current Liabilities | December 31, 2020 2021 RMB RMB Accrued payroll and employee benefits 194,862 201,657 Refund liability 71,843 147,210 Recharge card (a) 10,970 76,060 Professional service fee 30,165 41,276 VAT and other tax payables 9,535 18,513 Payable for advertisement 23,287 18,231 Guarantee liability 5,808 9,744 Rental fee 11,153 7,414 Others 34,281 43,498 Total 391,904 563,603 |
NET REVENUES (Tables)
NET REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
NET REVENUES | |
Schedule of net revenues | Year Ended December 31, 2019 2020 2021 RMB RMB RMB Tuition fee 1,877,242 1,786,230 2,281,098 Certification service fee 75,403 41,961 60,892 Loan referral service fee 19,939 7,801 6,332 Others 42,786 53,135 37,383 Business taxes and surcharges (11,205) (4,252) (7,070) Total net revenues 2,004,165 1,884,875 2,378,635 Year Ended December 31, 2019 2020 2021 RMB RMB RMB Timing of revenue recognition Services transferred at a point in time 138,128 102,897 104,607 Services transferred over time 1,866,037 1,781,978 2,274,028 Total net revenues 2,004,165 1,884,875 2,378,635 Year Ended December 31, 2019 2020 2021 RMB RMB RMB Guarantee service 47,189 13,008 7,885 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
Schedule of Income (Loss) before Income Taxes | The components of loss before income taxes are as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB PRC (986,464) (739,036) (342,944) Hong Kong (876) (8,280) (1,751) Cayman Islands (87,470) (54,913) (13,562) Taiwan (2,292) (1,549) (1,905) Canada (3,335) (2,449) (1,561) Total loss before income taxes (1,080,437) (806,227) (361,723) |
Schedule of Income Tax (expense) benefit | Year Ended December 31, 2019 2020 2021 RMB RMB RMB Current income tax expense (4,478) (7,397) (12,837) Deferred income tax benefit (expense) 46,037 42,431 (101,220) Total 41,559 35,034 (114,057) |
Schedule of Income Tax Rate Reconciliation | Year Ended December 31, 2019 2020 2021 PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Increase (decrease) in effective income tax rate resulting from: Impact of different tax rates in other jurisdictions (2.1) % (1.8) % (1.1) % Research and development bonus deduction 0.8 % 2.0 % 3.4 % Non-deductible expenses (1.3) % (1.6) % (2.0) % Preferential tax rates (10.8) % (11.2) % (9.5) % Change of tax rates (2.2) % (2.9) % (5.5) % Change in valuation allowance (5.6) % (5.2) % (41.8) % Actual income tax expense 3.8 % 4.3 % (31.5) % |
Schedule of Deferred Income Tax Assets | December 31, 2020 2021 RMB RMB Deferred income tax assets: Impairment of long-term investments 11,750 11,750 Tax loss carry forwards 253,796 281,813 Advertising expense 19,805 30,955 Others 3,240 5,326 Total deferred income tax assets 288,591 329,844 Valuation allowance (146,371) (288,844) Deferred income tax assets, net 142,220 41,000 Deferred income tax liabilities: Valuation appreciation of intangible assets 1,384 1,067 Deferred income tax liabilities* 1,384 1,067 |
Summary of Valuation Allowance | The movements of the valuation allowance are as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Balance at the beginning of the year 169,543 139,177 146,371 Additions of valuation allowance 63,309 46,755 168,163 Reduction of valuation allowance (2,553) (4,643) (16,940) Change of tax rates (71,090) (30,671) (8,038) Change of decrease related to subsidiary disposals and expiration (20,032) (4,247) (712) Balance at the end of the year 139,177 146,371 288,844 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
Schedule of Related Party Transactions | Related party balances December 31, 2020 2021 RMB RMB Amounts due from related parties Ningxia Company (i) 204 202 Others 101 637 Total 305 839 Notes: (i) The balance resulted from the franchise service income. Related party transactions The major related party transactions for the years ended December 31, 2019, 2020 and 2021 are summarized as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Cash collection service expense to Chuanbang (a) 790 79 39 Franchise income from Bolton School 1,379 518 462 Franchise, training and consulting service income from Ningxia Company 143 (11) — Training service expense to Bolton School 1,112 305 811 Technical consulting service expenses and labor expenses to Beijing Huimoer 1,333 148 — Interest income from loan to Ms. Han Lijuan 325 81 — Notes: (a) Pursuant to an agreement between Chuanbang and the Company, beginning August 2013, Chuanbang provides cash collection service on the Company’s accounts receivable. The fee for the service is calculated based on 2% ~ 20% of the amount collected. |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHARE BASED COMPENSATION | |
Summary of share options activity | Weighted Weighted Average Number of Average Remaining Aggregate Share Exercise Price Contractual Intrinsic Options US$ Years Value US$ Outstanding at December 31, 2020 2,822,807 1.91 6.85 4,311 Granted 879,000 0.29 — — Exercised (835,615) 0.73 — — Forfeited (126,172) 3.65 — — Outstanding at December 31, 2021 2,740,020 1.67 6.90 1,976 Vested and expected to vest as of December 31, 2021 3,954,565 1.88 5.59 2,059 Exercisable as of December 31, 2021 1,983,975 2.18 5.80 835 |
Summary of fair value assumptions | The Company calculated the fair value of the share options on the grant date using the Binomial option-pricing valuation model. The assumptions used in the valuation model are summarized in the following table. Year Ended December 31, 2019 2020 2021 Expected volatility 52.05%-59.74% 72.22%-78.51% 73.76%-75.78% Expected dividends yield 0% 0% 0% Exercise multiple 2.2-2.8 2.2-2.8 2.2-2.8 Risk-free interest rate per annum 1.58%-2.89% 0.79%-2.08% 1.09%-1.66% The fair value of underlying ordinary shares (per share) US$0.59-US$6.48 US$1.71-US$4.65 US$0.20-US$2.92 |
Schedule of fair values of the options granted | Year Ended December 31, 2019 2020 2021 US$ US$ US$ Weighted average grant date fair value of option per share 4.84 2.52 0.82 Aggregate grant date fair value of options 4,980 3,115 720 |
Summary of the non-vested shares activity | Number of Non- Weighted Average vested Shares Grant Date Fair Value US$ Outstanding as of December 31, 2020 310,438 7.66 Granted 118,045 3.12 Vested (211,288) 4.40 Forfeited (57,810) 11.80 Outstanding as of December 31, 2021 159,385 7.11 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LOSS PER SHARE | |
Schedule of basic and diluted loss per share | Year Ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net loss attributable to Class A and Class B ordinary shareholders for basic and diluted earnings per share (1,036,086) (766,643) (474,547) Denominator: Denominator for basic earnings per share: Weighted average number of Class A and Class B ordinary shares outstanding 53,386,075 54,341,213 56,260,925 Loss per Class A and Class B ordinary share basic and diluted (19.41) (14.11) (8.43) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LEASES | |
Schedule of components of rental expense | The components of rental expense for the years ended December 31, 2019, 2020 and 2021 consist as follows: Year Ended December 31, 2019 2020 2021 RMB RMB RMB Short-term rental expense 93,548 114,723 35,707 Operating lease expense excluding short-term rental expense 218,314 170,022 250,043 |
Schedule of other information related to operating leases | Year Ended December 31, 2019 2020 2021 RMB RMB RMB Cash paid for amounts included in the measurement of lease liabilities: 314,300 244,491 228,857 Non-cash right-of-use assets in exchange for new lease liabilities: 432,898 484,202 185,875 |
Schedule of maturities of lease liabilities | RMB Year ending December 31, 2022 256,667 2023 165,389 2024 83,350 2025 31,251 2026 11,057 2027 and thereafter 3,658 Total lease payments 551,372 Less: imputed interest 38,860 Total 512,512 Less: current portion 239,937 Non-current portion 272,575 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
Schedule of segment information | Year Ended December 31, 2021 Adult Childhood & adolescent Professional Quality Education Education Services Total RMB RMB RMB Net revenues 1,150,247 1,236,273 2,386,520 Cost of revenues (409,326) (792,093) (1,201,419) Gross profit 740,921 444,180 1,185,101 Year Ended December 31, 2020 Adult Childhood & adolescent Professional Quality Education Training Training Total RMB RMB RMB Net revenues 1,136,043 761,840 1,897,883 Cost of revenues (420,349) (646,493) (1,066,842) Gross profit 715,694 115,347 831,041 Year Ended December 31, 2019 Childhood & Adult adolescent Professional Quality Education Training Training Total RMB RMB RMB Net revenues 1,527,185 524,169 2,051,354 Cost of revenues (627,765) (546,069) (1,173,834) Gross profit (loss) 899,420 (21,900) 877,520 |
PARENT ONLY FINANCIAL INFORMA_2
PARENT ONLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PARENT ONLY FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | December 31, 2020 2021 2021 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 3,793 23,506 3,689 Prepaid expenses and other current assets 699 24 4 Due from subsidaries 410,910 407,795 63,991 Total current assets 415,402 431,325 67,684 Investment in subsidiaries (1,241,409) (1,700,223) (266,802) Total assets (826,007) (1,268,898) (199,118) LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other current liabilities (1) 7,213 5,781 907 Due to intercompany 298,782 309,241 48,527 Total current liabilities 305,995 315,022 49,434 Total liabilities 305,995 315,022 49,434 Commitments and contingencies — — — Shareholders’ equity: Class A ordinary shares (US$0.001 par value, 860,000,000 shares authorized, 55,546,254 and 56,593,157 shares issued, 48,346,384 and 49,393,287 shares outstanding as of December 31, 2020 and 2021, respectively) 349 355 56 Class B ordinary shares (US$0.001 par value, 40,000,000 shares authorized, 7,206,059 shares issued and outstanding as of December 31, 2020 and 2021, respectively) 74 74 12 Treasury shares (7,199,870 and 7,199,870 Class A ordinary shares as of December 31, 2020 and 2021, at cost) (459,815) (459,815) (72,155) Additional paid-in capital 1,324,161 1,347,205 211,406 Accumulated other comprehensive income 49,120 48,699 7,641 Accumulated deficit (2,045,891) (2,520,438) (395,512) Total shareholders’ deficit (1,132,002) (1,583,920) (248,552) Total liabilities and shareholders’ equity (826,007) (1,268,898) (199,118) (1) Mainly related to repurchase of treasury shares. |
Schedule of condensed statements of comprehensive loss | Year Ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Selling and marketing expenses — (693) (323) (51) General and administrative expenses (29,011) (16,890) 5,955 934 Operating (loss) gain (29,011) (17,583) 5,632 883 Equity in loss of subsidiaries (1,007,788) (748,006) (480,114) (75,340) Foreign currency exchange gains (loss) 115 (1,109) (268) (42) Interest (expense) income (67) 55 203 32 Other income 665 — — — Loss before income taxes (1,036,086) (766,643) (474,547) (74,467) Income tax expense — — — — Net loss (1,036,086) (766,643) (474,547) (74,467) Other comprehensive income (loss) Foreign currency translation adjustment 914 (2,266) (421) (66) Comprehensive loss (1,035,172) (768,909) (474,968) (74,533) |
Schedule of condensed statements of cash flows | Year Ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Operating activities: Net cash (used in) provided by operating activities (3,315) (8,010) 14,458 2,269 Financing activities: Issuance of Class A ordinary shares in connection with exercise of share options 3,335 3,354 3,947 619 Repayment of bank borrowings (13,726) — — — Repurchase of treasury shares (5,058) — — — Net cash (used in) provided by financing activities (15,449) 3,354 3,947 619 Changes in cash and cash equivalents (18,764) (4,656) 18,405 2,888 Effect of foreign currency exchange rate changes on cash and cash equivalents 856 850 1,308 207 Net (decrease) increase in cash and cash equivalents (17,908) (3,806) 19,713 3,095 Cash and cash equivalents at beginning of year 25,507 7,599 3,793 594 Cash and cash equivalents at end of year 7,599 3,793 23,506 3,689 |
DESCRIPTION OF BUSINESS, ORGA_3
DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (VIE and Non-VIE Financial Information) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Jan. 31, 2018 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Cash | ¥ 423,766 | ¥ 320,179 | $ 66,498 | |||
Amounts due from related parties | 839 | 305 | 132 | |||
Prepaid expenses and other current assets | 139,757 | 138,353 | 21,931 | |||
Total current assets | 619,332 | 536,253 | 97,187 | |||
Property and equipment, net | 299,441 | 464,490 | 46,989 | |||
Right-of-use assets | 495,936 | 586,451 | 77,823 | |||
Net cash used in financing activities | (76,040) | (95,825) | (11,932) | |||
Total Assets | 1,641,782 | 1,959,249 | 257,631 | |||
Accounts payable | 8,914 | 10,293 | 1,399 | |||
Deferred revenue-current | 2,008,078 | 1,980,138 | 315,111 | |||
Operating lease liabilities-current | 239,937 | 199,083 | 37,651 | |||
Income taxes payable | 89,000 | 76,817 | 13,966 | |||
Accrued expenses and other current liabilities | 563,603 | 391,904 | 88,442 | |||
Total current liabilities | 2,940,086 | 2,669,125 | 461,364 | |||
Deferred revenue-non current | 16,774 | 18,060 | 2,632 | |||
Operating lease liabilities-non current | 272,575 | 406,251 | 42,773 | |||
Other non-current liabilities | 4,767 | 5,082 | 748 | |||
Total Liabilities | 3,234,202 | 3,098,518 | 507,517 | |||
Inter-Group balances due from VIE and VIE Subsidiaries/Non-VIE | 839 | 305 | 132 | |||
Other current assets | 20,868 | 16,587 | ||||
Equity method investment | 16,569 | 15,212 | ||||
Total Liabilities | 3,234,202 | 3,098,518 | $ 507,517 | |||
Net revenues | 2,386,520 | $ 374,497 | 1,897,883 | ¥ 2,051,354 | ||
Net cash used in investing activities | ¥ 33,693 | $ 5,287 | (657) | (51,217) | ||
Equity Method Investments, Percentage of Equity Acquired through Options | 100.00% | 100.00% | ||||
Equity Method Investment, Ownership Percentage | 20.00% | |||||
Mr. Han [Member] | Tarena Entities [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 67.20% | 67.20% | ||||
Mr. Li [Member] | Tarena Entities [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 0.20% | 0.20% | ||||
Loan Agreements [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Debt Instrument, Initial Expiration Year | 2026 | 2026 | ||||
Loan Agreements [Member] | Equity Holders [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Debt Instrument, Face Amount | ¥ 6,000 | |||||
Parent Company | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Cash | 32,013 | |||||
Amounts due from related parties | 407,795 | 410,910 | (37,565) | $ 63,991 | ||
Prepaid expenses and other current assets | 24 | 699 | 4 | |||
Total current assets | 431,325 | 415,402 | 67,684 | |||
Net cash used in financing activities | (3,841) | |||||
Total Assets | (1,268,898) | (826,007) | (199,118) | |||
Accrued expenses and other current liabilities | 5,781 | 7,213 | 907 | |||
Total current liabilities | 315,022 | 305,995 | 49,434 | |||
Total Liabilities | 315,022 | 305,995 | 49,434 | |||
Inter-Group balances due from VIE and VIE Subsidiaries/Non-VIE | 407,795 | 410,910 | (37,565) | 63,991 | ||
Other current assets | 36,902 | |||||
Equity method investment | ¥ (34,226) | |||||
Total Liabilities | 315,022 | 305,995 | $ 49,434 | |||
Parent Company | Tarena Entities [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Cash | 1,332 | |||||
Amounts due from Tarena International and its wholly-owned subsidiaries | 113,021 | |||||
Amounts due from related parties | 4 | |||||
Prepaid expenses and other current assets | 4,476 | |||||
Total current assets | 118,833 | |||||
Property and equipment, net | 1,552 | |||||
Long term investments, net | 48,380 | |||||
Right-of-use assets | 5,540 | |||||
Net cash used in financing activities | (539) | |||||
Total Assets | 174,844 | |||||
Accounts payable | 8,610 | |||||
Deferred revenue-current | 138,529 | |||||
Operating lease liabilities-current | 3,377 | |||||
Income taxes payable | 2,045 | |||||
Accrued expenses and other current liabilities | 3,576 | |||||
Amounts due to Tarena International and its wholly-owned subsidiaries | 31,405 | |||||
Total current liabilities | 187,542 | |||||
Deferred revenue-non current | 133 | |||||
Operating lease liabilities-non current | 1,536 | |||||
Other non-current liabilities | 122 | |||||
Total Liabilities | 189,333 | |||||
Inter-Group balances due from VIE and VIE Subsidiaries/Non-VIE | 4 | |||||
Total Liabilities | 189,333 | |||||
VIE and VIE Subsidiaries Consolidated | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Cash | 127,043 | |||||
Amounts due from related parties | 32,869 | |||||
Net cash used in financing activities | (110,985) | |||||
Inter-Group balances due from VIE and VIE Subsidiaries/Non-VIE | 32,869 | |||||
Other current assets | ¥ 112,106 | |||||
VIE and VIE Subsidiaries Consolidated | Tarena Entities [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Cash | 8,204 | |||||
Amounts due from Tarena International and its wholly-owned subsidiaries | 141,104 | |||||
Amounts due from related parties | 4 | |||||
Prepaid expenses and other current assets | 27,435 | |||||
Total current assets | 176,747 | |||||
Property and equipment, net | 2,801 | |||||
Long term investments, net | 29,880 | |||||
Right-of-use assets | 11,108 | |||||
Net cash used in financing activities | (1,057) | |||||
Total Assets | 221,593 | |||||
Accounts payable | 320 | |||||
Deferred revenue-current | 167,224 | |||||
Operating lease liabilities-current | 3,949 | |||||
Income taxes payable | 2,045 | |||||
Accrued expenses and other current liabilities | 22,344 | |||||
Amounts due to Tarena International and its wholly-owned subsidiaries | 56,052 | |||||
Total current liabilities | 251,934 | |||||
Deferred revenue-non current | 134 | |||||
Operating lease liabilities-non current | 5,953 | |||||
Other non-current liabilities | 122 | |||||
Total Liabilities | 258,143 | |||||
Inter-Group balances due from VIE and VIE Subsidiaries/Non-VIE | 4 | |||||
Total Liabilities | 258,143 | |||||
Non-VIE Subsidiaries Consolidated | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Cash | 140,541 | |||||
Amounts due from related parties | (39,072) | |||||
Net cash used in financing activities | (3,437) | |||||
Inter-Group balances due from VIE and VIE Subsidiaries/Non-VIE | (39,072) | |||||
Other current assets | ¥ 10,308 |
DESCRIPTION OF BUSINESS, ORGA_4
DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (Significant Concentrations and Risks) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | |||
Exchange rate | 6.3726 | ||
Net revenues [Member] | Product concentration [Member] | K-12 Robotics Programming [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 27.90% | 15.70% | 9.30% |
Net revenues [Member] | Product concentration [Member] | K-12 Programming [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 19.40% | 20.60% | 12.80% |
Net revenues [Member] | Product concentration [Member] | Java [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 11.80% | 13.80% | 19.00% |
Net revenues [Member] | Product concentration [Member] | Digital Arts [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 11.00% | 16.80% | 22.90% |
Net revenues [Member] | Product concentration [Member] | Major Products [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 70.10% | 66.90% | 64.00% |
Net revenues [Member] | Geographic concentration [Member] | Beijing [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 16.20% | 17.20% | 13.80% |
Net revenues [Member] | Geographic concentration [Member] | Hangzhou [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 11.10% | 13.90% | 18.80% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Liquidity Condition, Cash, cash equivalents and time deposits, Short-term investment, Property and equipment, Revenue Recognition, Advertising costs, Operating lease, Government grant and Employee benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2021CNY (¥)segmentshares | Dec. 31, 2021USD ($)segment | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2023CNY (¥) | Dec. 31, 2022CNY (¥) | Dec. 31, 2021USD ($)shares | Aug. 07, 2021CNY (¥) | Dec. 31, 2018CNY (¥) | |
Significant Accounting Policies [Line Items] | |||||||||
Net loss | ¥ 476,000 | $ 74,660 | ¥ 771,193 | ¥ 1,038,878 | |||||
Total shareholders deficit | 1,592,420 | 1,139,269 | 403,064 | ¥ (571,643) | |||||
Net current liability | 2,321,000 | ||||||||
Net cash provided by/(used in) operating activities | 9,000 | 1,352 | (108,821) | (31,730) | |||||
Deferred revenue liability | 2,025,000 | 1,221,729 | 905,867 | ||||||
Restricted cash | 255 | 38,369 | $ 40 | ||||||
Cash, cash equivalents, time deposits and restricted time deposits | 430,401 | 364,805 | |||||||
Impairment of long-lived assets | 0 | 0 | |||||||
Goodwill Impairment | 0 | 0 | |||||||
Deferred revenue | 2,024,852 | 1,998,198 | |||||||
Deferred income tax benefit | 101,220 | 15,884 | (42,431) | (46,037) | |||||
Revenue expected to be recognized on these contracts | 20,333 | ||||||||
Advertising costs | 229,571 | 297,484 | 416,814 | ||||||
Net revenues | 2,386,520 | $ 374,497 | 1,897,883 | 2,051,354 | |||||
Contributions to employee benefits | 133,012 | 53,750 | 143,438 | ||||||
Carrying value of office buildings pledged for the loan | 95,000 | ¥ 95,291 | |||||||
Short-term bank loans | $ | $ 30,000 | ||||||||
Line of credit | ¥ 3,000 | ¥ 200,000 | |||||||
Line of credit expiration date | 2023-02 | 2023-02 | 2022-06 | ||||||
Number of operating segments | segment | 2 | 2 | |||||||
Long-term Debt, Term | 12 months | 12 months | |||||||
Subsequent event | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Revenue expected to be recognized on these contracts | ¥ 17,200 | ¥ 3,133 | |||||||
Grant | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Net revenues | ¥ 3,760 | ¥ 4,735 | ¥ 1,665 | ||||||
PRC [Member] | RMB Denominated Bank Deposits | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Cash, cash equivalents, time deposits and restricted time deposits | 405,296 | 278,789 | |||||||
PRC [Member] | US Dollar Denominated Bank Deposits | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Cash, cash equivalents, time deposits and restricted time deposits | 1,234 | 81,283 | |||||||
HK SAR [Member] | RMB Denominated Bank Deposits | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Cash, cash equivalents, time deposits and restricted time deposits | 409 | 2,022 | |||||||
HK SAR [Member] | US Dollar Denominated Bank Deposits | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Cash, cash equivalents, time deposits and restricted time deposits | 22,001 | 793 | |||||||
HK SAR [Member] | HK Dollar Denominated Bank Deposits | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Cash, cash equivalents, time deposits and restricted time deposits | 64 | 50 | |||||||
US [Member] | US Dollar Denominated Bank Deposits | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Cash, cash equivalents, time deposits and restricted time deposits | 229 | 117 | |||||||
Taiwan | TWD Denominated Bank Deposit | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Cash, cash equivalents, time deposits and restricted time deposits | 1,035 | 579 | |||||||
Canada | CAD | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Cash, cash equivalents, time deposits and restricted time deposits | ¥ 133 | ¥ 1,172 | |||||||
Office buildings [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Useful life | 45 years | 45 years | |||||||
Furniture [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Useful life | 5 years | 5 years | |||||||
Minimum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Business and Value Added Taxes | 3.00% | 3.00% | |||||||
Contributions to employee benefits, percentage of salary | 20.70% | 20.70% | |||||||
Minimum | Office equipment [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Useful life | 3 years | 3 years | |||||||
Maximum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Business and Value Added Taxes | 13.00% | 13.00% | |||||||
Contributions to employee benefits, percentage of salary | 51.10% | 51.10% | |||||||
Maximum | Office equipment [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Useful life | 5 years | 5 years | |||||||
Common Class A | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Treasury shares | shares | 7,199,870 | 7,199,870 | 7,199,870 |
ACCOUNTS RECEIVABLE, NET - Sche
ACCOUNTS RECEIVABLE, NET - Schedule of Accounts Receivable (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable: | |||
Gross | ¥ 64,596 | ¥ 43,191 | |
Unearned interest | (1,061) | (995) | |
Total accounts receivable | 63,535 | 42,196 | |
Less: allowance for credit losses | 14,987 | 9,214 | ¥ 2,251 |
Accounts receivable, net | ¥ 48,548 | ¥ 32,982 |
ACCOUNTS RECEIVABLE, NET - Clas
ACCOUNTS RECEIVABLE, NET - Classification of Accounts Receivable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
ACCOUNTS RECEIVABLE, NET | |||
Accounts receivable - current portion | ¥ 48,458 | $ 7,604 | ¥ 32,790 |
Accounts receivable - non-current portion | 90 | $ 14 | 192 |
Accounts receivable, net | ¥ 48,548 | ¥ 32,982 |
ACCOUNTS RECEIVABLE, NET - Summ
ACCOUNTS RECEIVABLE, NET - Summary of Allowance for Doubtful Accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
ACCOUNTS RECEIVABLE, NET | ||||
Balance at the beginning of the year | ¥ 9,214 | ¥ 2,251 | ||
Additions charged to bad debt expense | 5,773 | $ 906 | 13,900 | ¥ 2,251 |
Additions charged to bad debt expense | 6,963 | |||
Balance at the end of the year | ¥ 14,987 | ¥ 9,214 | ¥ 2,251 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||
Prepaid deposits | ¥ 24,518 | ¥ 25,238 | |
Loans made to employees | 20,584 | 20,421 | |
Prepaid value-added tax | 18,350 | 40,352 | |
Professional fee | 18,244 | 11,169 | |
Prepaid rental expenses | 15,669 | 12,304 | |
Long-term investment disposal receivable | 13,000 | ||
Inventory | 5,870 | 4,626 | |
Prepaid advertising expenses | 2,654 | 7,656 | |
Others | 20,868 | 16,587 | |
Total prepaid expenses and other current assets | ¥ 139,757 | $ 21,931 | ¥ 138,353 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | ¥ 854,035 | ¥ 987,209 | |
Less: accumulated depreciation | 554,594 | 522,719 | |
Property and equipment, net | 299,441 | $ 46,989 | 464,490 |
Office buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 169,761 | 285,867 | |
Assets pledged as collateral | 95,291 | ||
Furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 43,061 | 48,253 | |
Office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 393,561 | 409,682 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | ¥ 247,652 | ¥ 243,407 |
PROPERTY AND EQUIPMENT, NET -_2
PROPERTY AND EQUIPMENT, NET - Schedule of Depreciation Expense (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | ¥ 121,760 | ¥ 171,256 | ¥ 192,538 |
Cost of revenues [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 93,503 | 132,898 | 150,188 |
Selling and marketing expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 11,999 | 18,137 | 19,303 |
General and administrative expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 15,345 | 18,867 | 22,314 |
Research and development expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | ¥ 913 | ¥ 1,354 | ¥ 733 |
LONG-TERM INVESTMENTS, NET (Det
LONG-TERM INVESTMENTS, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | ||
Equity investments without readily determinable fair values | ||||
Impairment of equity investments without readily determinable fair values | ¥ 37,000 | |||
Total equity investments without readily determinable fair values, net | 52,380 | ¥ 29,880 | ||
Equity method investments | ||||
Equity method investment | 15,212 | 16,569 | ||
Impairment of equity method investments | (524) | (524) | ||
Total equity method investments, net | 15,212 | 16,569 | ||
Available-for-sale investment | [1] | 15,000 | ||
Impairment of available-for-sale investments | (15,000) | |||
Total available-for-sale investment, net | 0 | 0 | ||
Total long-term investments, net | 67,592 | 46,449 | $ 7,289 | |
A company providing mechanic training | ||||
Equity investments without readily determinable fair values | ||||
Equity investments without readily determinable fair values | [2] | 12,000 | 12,000 | |
A company providing intelligent robot products | ||||
Equity investments without readily determinable fair values | ||||
Equity investments without readily determinable fair values | [3] | 24,000 | ||
Impairment of equity investments without readily determinable fair values | 24,000 | 24,000 | ||
A company providing information sharing IT platform | ||||
Equity investments without readily determinable fair values | ||||
Equity investments without readily determinable fair values | [4] | 22,500 | ||
Impairment of equity investments without readily determinable fair values | 0 | 0 | ||
Other equity investments without readily determinable fair values | ||||
Equity investments without readily determinable fair values | ||||
Equity investments without readily determinable fair values | [5] | 30,880 | 17,880 | |
Impairment of equity investments without readily determinable fair values | 13,000 | 13,000 | ||
Companies providing hockey program management | ||||
Equity method investments | ||||
Equity method investment | [6] | 2,132 | 2,079 | |
Total equity method investments, net | [6] | 2,132 | 2,079 | |
A company providing Internet product solutions | ||||
Equity investments without readily determinable fair values | ||||
Impairment of equity investments without readily determinable fair values | 0 | 0 | ||
Equity method investments | ||||
Equity method investment | 13,604 | 15,014 | ||
Total equity method investments, net | ¥ 13,604 | ¥ 15,014 | ||
[1] | 6 LONG-TERM INVESTMENTS, NET (CONTINUED) | |||
[2] | In October 2015, the Company paid RMB 12,000 in cash to acquire 2.86% of the total equity interest in an education company, which provides training for senior mechanic in vehicle maintenance and repair. No impairment loss was recognized as of December 31, 2020 and 2021, and for the years then ended. | |||
[3] | In May 2017, the Company paid RMB 24,000 in cash to acquire 6% of the total equity interest in a company, which provides intelligent robot product. Based on the fact that the business conditions of this investee deteriorated, the Company recognized impairment loss of RMB 24,000 for the year ended December 31, 2018, and with an impairment balance of RMB 24,000 as of December 31, 2020, which has been written off during the year of 2021. | |||
[4] | In July 2017, the Company paid RMB 22,500 in cash to acquire 15% of the total equity interest in a company, which provides an information sharing IT platform. In November 2021, the Company sold 15% of the total equity interest by a price of RMB 22,500 . The consideration of RMB 9,500 was collected as of December 31, 2021, and the remaining consideration of RMB 13,000 was recorded as prepaid and other current asset, which was collected in January 2022. No impairment loss was recognized as of December 31, 2020. | |||
[5] | During the years ended December 31, 2018 and 2019, the Company acquired minority equity interests in several third-party companies. The Company recognized no impairment loss for the years ended December 31, 2020 and 2021, respectively, and with an impairment balance of RMB 13,000 as of December 31, 2020, which has been written off during the year of 2021. | |||
[6] | In January 2018, the Company paid RMB 14,000 in cash to acquire 20% of equity interest of a company which provides IT consulting services and programming and accounted for the investment using equity method. No impairment loss was recognized as of December 31, 2020 and 2021, and for the years then ended. |
LONG-TERM INVESTMENTS, NET - Ad
LONG-TERM INVESTMENTS, NET - Additional information (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2022 | Nov. 30, 2021 | Jan. 31, 2018 | Jul. 31, 2017 | May 31, 2017 | Dec. 31, 2016 | Oct. 31, 2016 | Oct. 31, 2015 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Schedule of Investments and Cost Method Investments [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | ||||||||||
Impairment of equity investments without readily determinable fair values | ¥ 37,000 | ||||||||||
Equity investment percentage | 20.00% | ||||||||||
Impairment of long-term investments | ¥ (524) | (524) | |||||||||
Increase in fair value of the investment | ¥ 15,000 | ||||||||||
Prepaid and other current asset | |||||||||||
Schedule of Investments and Cost Method Investments [Line Items] | |||||||||||
Proceeds from sale of cost method investments | ¥ 13,000 | 9,500 | |||||||||
A company providing mechanic training | |||||||||||
Schedule of Investments and Cost Method Investments [Line Items] | |||||||||||
Payment to acquire cost method investment | ¥ 12,000 | ||||||||||
Equity investment , cost method percentage | 2.86% | ||||||||||
Impairment of equity investments without readily determinable fair values | 0 | 0 | |||||||||
A company providing intelligent robot products | |||||||||||
Schedule of Investments and Cost Method Investments [Line Items] | |||||||||||
Payment to acquire cost method investment | ¥ 24,000 | ||||||||||
Equity investment , cost method percentage | 6.00% | ||||||||||
Impairment of equity investments without readily determinable fair values | ¥ 24,000 | ||||||||||
Impairment of equity investments without readily determinable fair values | 24,000 | 24,000 | |||||||||
A company providing information sharing IT platform | |||||||||||
Schedule of Investments and Cost Method Investments [Line Items] | |||||||||||
Payment to acquire cost method investment | ¥ 22,500 | ||||||||||
Equity investment , cost method percentage | 15.00% | 15.00% | |||||||||
Proceeds from sale of cost method investments | ¥ 22,500 | ||||||||||
Impairment of equity investments without readily determinable fair values | 0 | 0 | |||||||||
Other equity investments without readily determinable fair values | |||||||||||
Schedule of Investments and Cost Method Investments [Line Items] | |||||||||||
Impairment of equity investments without readily determinable fair values | 0 | 0 | |||||||||
Impairment of equity investments without readily determinable fair values | 13,000 | 13,000 | |||||||||
A company providing employment course trainings and recruitment services | |||||||||||
Schedule of Investments and Cost Method Investments [Line Items] | |||||||||||
Equity investment , cost method percentage | 13.90% | ||||||||||
Impairment of equity investments without readily determinable fair values | 0 | 0 | |||||||||
Impairment of equity investments without readily determinable fair values | 15,000 | 15,000 | |||||||||
Payment to acquire available for sale securities | ¥ 10,000 | ||||||||||
A company providing Internet product solutions | |||||||||||
Schedule of Investments and Cost Method Investments [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | ||||||||||
Impairment of equity investments without readily determinable fair values | ¥ 0 | ¥ 0 | |||||||||
Payment to acquire investment | ¥ 14,000 | ||||||||||
Equity investment percentage | 20.00% |
OTHER NON-CURRENT ASSETS, NET_2
OTHER NON-CURRENT ASSETS, NET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Other non-current assets: | |||
Rent and property management deposits | ¥ 48,531 | ¥ 51,786 | |
Loans made to employees | 16,825 | 30,284 | |
Prepayment for equipment and leasehold improvement | 8,443 | 10,276 | |
Others | 2,241 | 3,479 | |
Total other non-current assets, net | ¥ 76,040 | $ 11,932 | ¥ 95,825 |
OTHER NON-CURRENT ASSETS, NET -
OTHER NON-CURRENT ASSETS, NET - Additional information (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets, Noncurrent Disclosure [Line Items] | |
Term of loans receivable | 5 years |
Housing loans made to employees | Minimum | |
Other Assets, Noncurrent Disclosure [Line Items] | |
Annual interest rate (as a percent) | 3.325% |
Housing loans made to employees | Maximum | |
Other Assets, Noncurrent Disclosure [Line Items] | |
Annual interest rate (as a percent) | 5.00% |
SHORT-TERM BANK LOANS (Details)
SHORT-TERM BANK LOANS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Aug. 07, 2021CNY (¥) | Aug. 09, 2019 | |
SHORT-TERM BANK LOANS | ||||||
Borrowing capacity | ¥ 10,710 | |||||
Debt term | 12 months | |||||
Proceeds from bank loan | ¥ 30,000 | $ 4,708 | ¥ 10,710 | ¥ 89,162 | ||
Interest rate for the loan | 5.30% | 5.30% | ||||
Bank loan | $ | $ 30,000 | |||||
Interest expense | ¥ 322 | ¥ 5,047 | ¥ 565 | |||
Carrying value of office buildings pledged for the loan | $ 95,000 | ¥ 95,291 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Accrued payroll and employee benefits | ¥ 201,657 | ¥ 194,862 | |
Refund liability | 147,210 | 71,843 | |
Recharge card | 76,060 | 10,970 | |
Professional service fee | 41,276 | 30,165 | |
VAT and other tax payables | 18,513 | 9,535 | |
Payable for advertisement | 18,231 | 23,287 | |
Guarantee liability | 9,744 | 5,808 | |
Rental fee | 7,414 | 11,153 | |
Others | 43,498 | 34,281 | |
Total | ¥ 563,603 | $ 88,442 | ¥ 391,904 |
NET REVENUES (Details)
NET REVENUES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Business taxes and surcharges | ¥ (7,070) | ¥ (4,252) | ¥ (11,205) | |
Total net revenues | 2,386,520 | $ 374,497 | 1,897,883 | 2,051,354 |
Total net revenues | 2,378,635 | 1,884,875 | 2,004,165 | |
Services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 104,607 | 102,897 | 138,128 | |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 2,274,028 | 1,781,978 | 1,866,037 | |
Tuition fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 2,281,098 | 1,786,230 | 1,877,242 | |
Certification service fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 60,892 | 41,961 | 75,403 | |
Loan referral service fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 6,332 | 7,801 | 19,939 | |
Others. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 37,383 | 53,135 | 42,786 | |
Guarantee service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | ¥ 7,885 | ¥ 13,008 | ¥ 47,189 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income loss before Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Taxes [Line Items] | ||||
Total income (loss) before income taxes | ¥ (361,723) | $ (56,762) | ¥ (806,227) | ¥ (1,080,437) |
PRC [Member] | ||||
Income Taxes [Line Items] | ||||
Total income (loss) before income taxes | (342,944) | (739,036) | (986,464) | |
HK SAR [Member] | ||||
Income Taxes [Line Items] | ||||
Total income (loss) before income taxes | (1,751) | (8,280) | (876) | |
Cayman Islands [Member] | ||||
Income Taxes [Line Items] | ||||
Total income (loss) before income taxes | (13,562) | (54,913) | (87,470) | |
Taiwan | ||||
Income Taxes [Line Items] | ||||
Total income (loss) before income taxes | (1,905) | (1,549) | (2,292) | |
Canada | ||||
Income Taxes [Line Items] | ||||
Total income (loss) before income taxes | ¥ (1,561) | ¥ (2,449) | ¥ (3,335) |
INCOME TAXES - Schedule of In_2
INCOME TAXES - Schedule of Income Tax Expense benefit (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
INCOME TAXES | ||||
Current income tax expense | ¥ (12,837) | ¥ (7,397) | ¥ (4,478) | |
Deferred income tax benefit | (101,220) | $ (15,884) | 42,431 | 46,037 |
Total | ¥ (114,057) | $ (17,898) | ¥ 35,034 | ¥ 41,559 |
INCOME TAXES - Schedule of In_3
INCOME TAXES - Schedule of Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | |||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% |
Impact of different tax rates in other jurisdictions | (1.10%) | (1.80%) | (2.10%) |
Research and development bonus deduction | 3.40% | 2.00% | 0.80% |
Non-deductible selling, general and administrative expenses | |||
Non-deductible expenses | (2.00%) | (1.60%) | (1.30%) |
Preferential tax rates | (9.50%) | (11.20%) | (10.80%) |
Change of tax rates | (5.50%) | (2.90%) | (2.20%) |
Change in valuation allowance | (41.80%) | (5.20%) | (5.60%) |
Actual income tax expense | (31.50%) | 4.30% | 3.80% |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Income Tax Assets And Liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||||
Impairment of long-term investments | ¥ 11,750 | ¥ 11,750 | ||
Tax loss carry forwards | 281,813 | 253,796 | ||
Advertising expense | 30,955 | 19,805 | ||
Others | 5,326 | 3,240 | ||
Total deferred income tax assets | 329,844 | 288,591 | ||
Valuation allowance | (288,844) | (146,371) | ¥ (139,177) | ¥ (169,543) |
Deferred income tax assets, net | 41,000 | 142,220 | ||
Deferred income tax assets, net | ||||
Valuation appreciation of intangible assets | 1,067 | 1,384 | ||
Deferred income tax liabilities | ¥ 1,067 | ¥ 1,384 |
INCOME TAXES - Summary of Valua
INCOME TAXES - Summary of Valuation Allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | |||
Balance at the beginning of the year | ¥ 146,371 | ¥ 139,177 | ¥ 169,543 |
Additions of valuation allowance | 168,163 | 46,755 | 63,309 |
Reduction of valuation allowance | (16,940) | (4,643) | (2,553) |
Change of tax rate | (8,038) | (30,671) | (71,090) |
Change of decrease related to subsidiary disposals and expiration | (712) | (4,247) | (20,032) |
Balance at the end of the year | ¥ 288,844 | ¥ 146,371 | ¥ 139,177 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) ¥ in Thousands | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | |||||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2022 | Dec. 31, 2020CNY (¥) | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2020 | |
Tax losses carry forwards | ¥ 2,744,973 | ||||||||||||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% | ||||||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||
Assessable tax, percent | 12.5 | 25 | |||||||||||
Assessable profit before tax | ¥ 1,000 | ¥ 1,000 | |||||||||||
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 0.00% | 0.00% | 0.00% | ||||||||||
Deferred Tax Assets along with Valuation allowance | ¥ 712 | ||||||||||||
State Administration of Taxation, China [Member] | |||||||||||||
Withholding Tax Percentage On Repatriated Earnings | 10.00% | ||||||||||||
Maximum | |||||||||||||
Preferential income tax rate small profit enterprises, percent | 50.00% | 50.00% | 20.00% | 20.00% | 20.00% | ||||||||
Following preferential income tax rate small profit enterprises, percent | 50.00% | ||||||||||||
Assessable profit before tax | ¥ 3,000 | ¥ 3,000 | |||||||||||
Minimum | |||||||||||||
Preferential income tax rate small profit enterprises, percent | 20.00% | 20.00% | |||||||||||
Assessable profit before tax | 1,000 | ¥ 1,000 | |||||||||||
HK [Member] | |||||||||||||
Tax losses carry forwards | ¥ 8,776 | ||||||||||||
Tarena Hangzhou [Member] | |||||||||||||
PRC statutory income tax rate | 15.00% | 15.00% | 15.00% | 25.00% | 12.50% | ||||||||
Tax exempt income, percent | 50.00% | ||||||||||||
Hanru Hangzhou [Member] | |||||||||||||
PRC statutory income tax rate | 15.00% | 12.50% | 12.50% | 12.50% | 0.00% | ||||||||
Tax exempt income, percent | 50.00% | ||||||||||||
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 50.00% | ||||||||||||
2022 [Member] | |||||||||||||
Tax losses carry forwards | ¥ 24,847 | ||||||||||||
2023 [Member] | |||||||||||||
Tax losses carry forwards | 333,740 | ||||||||||||
2024 [Member] | |||||||||||||
Tax losses carry forwards | 884,403 | ||||||||||||
2025 [Member] | |||||||||||||
Tax losses carry forwards | 818,369 | ||||||||||||
2026 [Member] | |||||||||||||
Tax losses carry forwards | ¥ 674,838 |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Related Party balances (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Related party balances | ||
Amounts due from related parties | ¥ 839 | ¥ 305 |
Ningxia Company | ||
Related party balances | ||
Amounts due from related parties | 202 | 204 |
Others | ||
Related party balances | ||
Amounts due from related parties | ¥ 637 | ¥ 101 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Related Parties Transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Chuanbang | Cash collection service | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | ¥ 39 | ¥ 79 | ¥ 790 |
Bolton School | Franchise income from Bolton School | |||
Related Party Transaction [Line Items] | |||
Revenue from related party | 462 | 518 | 1,379 |
Bolton School | Training service | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | ¥ 811 | 305 | 1,112 |
Ningxia Company | Franchise, training and consulting service | |||
Related Party Transaction [Line Items] | |||
Revenue from related party | (11) | 143 | |
Beijing Huimoer Technology Co., Ltd | Technical consulting service and labour expenses | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | 148 | 1,333 | |
Ms. Han Lijuan | |||
Related Party Transaction [Line Items] | |||
Interest income derived from the loan to related party | ¥ 81 | ¥ 325 |
RELATED PARTY TRANSACTIONS - Si
RELATED PARTY TRANSACTIONS - Significant Related Party Transactions (Details) | 12 Months Ended | |
Dec. 31, 2021 | Jan. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Equity investment percentage | 20.00% | |
Chuanbang | Service fee payable | Minimum | ||
Related Party Transaction [Line Items] | ||
Cash collection service fees percentage | 2.00% | |
Chuanbang | Service fee payable | Maximum | ||
Related Party Transaction [Line Items] | ||
Cash collection service fees percentage | 20.00% |
ORDINARY SHARES AND STATUTORY_2
ORDINARY SHARES AND STATUTORY RESERVE (Treasury Shares) (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | Jun. 30, 2018USD ($) | |
Class of Stock [Line Items] | ||||
Total consideration of Shares repurchased | ¥ | ¥ 2,646 | |||
Treasury Shares [Member] | ||||
Class of Stock [Line Items] | ||||
Shares repurchased | shares | 0 | 100,729 | 3,768,495 | |
Total consideration of Shares repurchased | ¥ | ¥ 2,646 | ¥ 202,066 | ||
Treasury Shares [Member] | Minimum | ||||
Class of Stock [Line Items] | ||||
Share repurchase plan, authorized amount | $ | $ 30 | |||
Treasury Shares [Member] | Maximum | ||||
Class of Stock [Line Items] | ||||
Share repurchase plan, authorized amount | $ | $ 70 |
ORDINARY SHARES AND STATUTORY_3
ORDINARY SHARES AND STATUTORY RESERVE (Statutory reserves and restricted net assets and Dividend) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ORDINARY SHARES AND STATUTORY RESERVE | |||
Statutory reserve | ¥ 175,564 | ¥ 158,828 | |
Statutory Reserves, Percentage of Appropriation From Net Profit | 10.00% | ||
Statutory Reserves, Balance As Percentage to Capital | 50.00% | ||
Statutory Reserves for Private Schools Requiring Reasonable Returns, Percentage of Appropriation From Net Profit | 25.00% | ||
Statutory Reserves for Private Schools Not Requiring Reasonable Returns, Percentage of Expected Annual Increase in Net Assets | 25.00% | ||
Appropriations | ¥ 16,736 | 5,307 | ¥ 313 |
Restricted net assets | 1,523,198 | 1,483,412 | |
Dividends, Common Stock, Cash | ¥ 0 | ¥ 0 | ¥ 0 |
SHARE BASED COMPENSATION - Summ
SHARE BASED COMPENSATION - Summary of share options activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Share Options | |||
Outstanding, beginning balance | 2,822,807 | ||
Granted | 879,000 | 1,236,146 | 1,028,728 |
Exercised | (835,615) | ||
Forfeited | (126,172) | ||
Outstanding, ending balance | 2,740,020 | 2,822,807 | |
Vested and expected to vest | 3,954,565 | ||
Exercisable | 1,983,975 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning balance | $ 1.91 | ||
Granted | 0.29 | ||
Exercised | 0.73 | ||
Forfeited | 3.65 | ||
Outstanding, ending balance | 1.67 | $ 1.91 | |
Vested and expected to vest | 1.88 | ||
Exercisable | $ 2.18 | ||
Weighted Average Remaining Contractual Years | |||
Outstanding | 6 years 10 months 24 days | 6 years 10 months 6 days | |
Vested and expected to vest | 5 years 7 months 2 days | ||
Exercisable | 5 years 9 months 18 days | ||
Outstanding, Aggregate Intrinsic Value | $ 1,976 | $ 4,311 | |
Vested and expected to vest, Aggregate Intrinsic Value | 2,059 | ||
Exercisable, Aggregate Intrinsic Value | $ 835 |
SHARE BASED COMPENSATION - Su_2
SHARE BASED COMPENSATION - Summary of fair value assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 73.76% | 72.22% | 52.05% |
Exercise multiple | 2.2 | 2.2 | 2.2 |
Risk-free interest rate per annum | 1.09% | 0.79% | 1.58% |
The fair value of underlying ordinary shares (per share) | $ 0.20 | $ 1.71 | $ 0.59 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 75.78% | 78.51% | 59.74% |
Exercise multiple | 2.8 | 2.8 | 2.8 |
Risk-free interest rate per annum | 1.66% | 2.08% | 2.89% |
The fair value of underlying ordinary shares (per share) | $ 2.92 | $ 4.65 | $ 6.48 |
SHARE BASED COMPENSATION - Sche
SHARE BASED COMPENSATION - Schedule fair values of the options granted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SHARE BASED COMPENSATION | |||
Weighted average grant date fair value of option per share | $ 0.82 | $ 2.52 | $ 4.84 |
Aggregate grant date fair value of options | $ 720 | $ 3,115 | $ 4,980 |
SHARE BASED COMPENSATION - Su_3
SHARE BASED COMPENSATION - Summary of the non-vested shares activity (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of Non-vested Shares | |
Outstanding, beginning balance | shares | 310,438 |
Granted | shares | 118,045 |
Vested | shares | (211,288) |
Forfeited | shares | (57,810) |
Outstanding, ending balance | shares | 159,385 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance | $ / shares | $ 7.66 |
Granted | $ / shares | 3.12 |
Vested | $ / shares | 4.40 |
Forfeited | $ / shares | 11.80 |
Outstanding, ending balance | $ / shares | $ 7.11 |
SHARE BASED COMPENSATION (Narra
SHARE BASED COMPENSATION (Narrative) (Details) ¥ in Thousands | Apr. 09, 2021shares | Mar. 01, 2021shares | Apr. 09, 2020shares | Mar. 01, 2020shares | Jan. 01, 2020 | Aug. 13, 2019shares | Apr. 03, 2019shares | Jan. 01, 2019shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2021$ / shares | Dec. 31, 2021CNY (¥) | Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Options granted | 879,000 | 1,236,146 | 1,028,728 | |||||||||||||
Total intrinsic value of options exercised | ¥ | ¥ 6,261 | ¥ 26,301 | ¥ 7,936 | |||||||||||||
Non-vested shares granted | 118,045 | |||||||||||||||
Non-vested shares vested | 211,288 | |||||||||||||||
Unrecognized stock option compensation expense | ¥ | ¥ 3,619 | |||||||||||||||
Unrecognized stock option compensation expense, period for recognition | 5 months 1 day | |||||||||||||||
Unrecognized non-vested shares compensation expense | ¥ | ¥ 4,869 | |||||||||||||||
Unrecognized non-vested shares compensation expense, period for recognition | 1 year 11 months 19 days | |||||||||||||||
Fair value of vested restricted shares | ¥ | ¥ 5,930 | ¥ 9,013 | ¥ 4,707 | |||||||||||||
Minimum | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Exercise prices | $ / shares | $ 0 | $ 1 | $ 0.89 | |||||||||||||
Vesting period | 1 year | 3 months | 3 months | |||||||||||||
Share price | $ / shares | 0.20 | 1.71 | 0.59 | |||||||||||||
Maximum | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Exercise prices | $ / shares | 0.37 | 2.51 | 1 | |||||||||||||
Vesting period | 2 years | 5 years | 5 years | |||||||||||||
Share price | $ / shares | $ 2.92 | $ 4.65 | $ 6.48 | |||||||||||||
Independent Directors [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 1 year | 1 year | 1 year | 1 year | 5 years | 1 year | ||||||||||
Non-vested shares granted | 48,690 | 69,355 | 143,628 | 74,000 | 47,380 | 41,666 | ||||||||||
Non-vested shares vested | 1,200 | |||||||||||||||
January 1 [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Expiration period | 10 years | 10 years | ||||||||||||||
January 1 [Member] | Minimum | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Expiration period | 9 years | |||||||||||||||
January 1 [Member] | Maximum | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Expiration period | 10 years | |||||||||||||||
January 1 [Member] | Independent Directors [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 1 year | 5 years | ||||||||||||||
Non-vested shares granted | 136,581 | 35,912 | ||||||||||||||
Non-vested shares vested | 135,381 | |||||||||||||||
2014 Plan [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Authorized | 1,833,696 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss attributable to Class A and Class B ordinary shareholders | ¥ (474,547) | $ (74,467) | ¥ (766,643) | ¥ (1,036,086) |
Denominator: | ||||
Weighted average number of Class A and Class B ordinary shares outstanding | 56,260,925 | 56,260,925 | 54,341,213 | 53,386,075 |
Basic loss per Class A and Class B ordinary share | (per share) | ¥ (8.43) | $ (1.32) | ¥ (14.11) | ¥ (19.41) |
Diluted loss per Class A and Class B ordinary share | (per share) | ¥ (8.43) | $ (1.32) | ¥ (14.11) | ¥ (19.41) |
LEASES - Components of rental e
LEASES - Components of rental expense (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
LEASES | |||
Short-term rental expense | ¥ 35,707 | ¥ 114,723 | ¥ 93,548 |
Operating lease expense excluding short-term rental expense | ¥ 250,043 | ¥ 170,022 | ¥ 218,314 |
LEASES - Other information rela
LEASES - Other information related to operating leases (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
LEASES | ||||
Cash paid for amounts included in the measurement of lease liabilities | ¥ 228,857 | ¥ 244,491 | ¥ 314,300 | |
Non-cash right-of-use assets in exchange for new lease liabilities | ¥ 185,875 | $ 29,168 | ¥ 484,202 | ¥ 432,898 |
Weighted average remaining lease term | 2 years 9 months 3 days | 2 years 9 months 3 days | 3 years 2 months 12 days | |
Weighted average discount rate | 5.60% | 5.60% | 5.72% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
LEASES | ||||
2022 | ¥ 256,667 | |||
2023 | 165,389 | |||
2024 | 83,350 | |||
2025 | 31,251 | |||
2026 | 11,057 | |||
2027 and thereafter | 3,658 | |||
Total lease payments | 551,372 | |||
Less: imputed interest | 38,860 | |||
Total | 512,512 | |||
Less: current portion | 239,937 | ¥ 199,083 | $ 37,651 | |
Non-current portion | 272,575 | 406,251 | $ 42,773 | |
Gross rental expenses incurred under operating leases | 285,750 | 284,745 | ¥ 311,862 | |
Sublease rental income | ¥ 583 | ¥ 971 | ¥ 1,587 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)segment | Dec. 31, 2021USD ($)segment | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
SEGMENT INFORMATION [Line Items] | ||||
Number of operating segments | segment | 2 | 2 | ||
Revenues, cost of revenues, and gross profit by segment | ||||
Net revenues | ¥ 2,386,520 | $ 374,497 | ¥ 1,897,883 | ¥ 2,051,354 |
Cost of revenues | (1,201,419) | (188,529) | (1,066,842) | (1,173,834) |
Gross profit | 1,185,101 | $ 185,968 | 831,041 | 877,520 |
Adult Professional Training | ||||
Revenues, cost of revenues, and gross profit by segment | ||||
Net revenues | 1,150,247 | 1,136,043 | 1,527,185 | |
Cost of revenues | (409,326) | (420,349) | (627,765) | |
Gross profit | 740,921 | 715,694 | 899,420 | |
Childhood & adolescent Quality Education Services | ||||
Revenues, cost of revenues, and gross profit by segment | ||||
Net revenues | 1,236,273 | 761,840 | 524,169 | |
Cost of revenues | (792,093) | (646,493) | (546,069) | |
Gross profit | ¥ 444,180 | ¥ 115,347 | ¥ (21,900) |
PARENT ONLY FINANCIAL INFORMA_3
PARENT ONLY FINANCIAL INFORMATION - Condensed Balance Sheets (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | ||||||
Prepaid expenses and other current assets | ¥ 139,757 | $ 21,931 | ¥ 138,353 | |||
Amounts due from related parties | 839 | 132 | 305 | |||
Total current assets | 619,332 | 97,187 | 536,253 | |||
Total Assets | 1,641,782 | 257,631 | 1,959,249 | |||
Current liabilities: | ||||||
Accrued expenses and other current liabilities | 563,603 | 88,442 | 391,904 | |||
Total current liabilities | 2,940,086 | 461,364 | 2,669,125 | |||
Total Liabilities | 3,234,202 | 507,517 | 3,098,518 | |||
Commitments and contingencies | ||||||
Shareholders' equity: | ||||||
Additional paid-in capital | 1,347,205 | 211,406 | 1,324,161 | |||
Accumulated other comprehensive income | 48,699 | 7,641 | 49,120 | |||
Accumulated deficit | (2,520,438) | (395,512) | (2,045,891) | |||
Total equity deficit to the shareholders of Tarena International, Inc. | ¥ | (1,592,420) | (1,139,269) | ¥ (403,064) | ¥ 571,643 | ||
Total liabilities and equity | 1,641,782 | 257,631 | 1,959,249 | |||
Common Class A | ||||||
Shareholders' equity: | ||||||
Ordinary shares | 355 | 56 | 349 | |||
Treasury shares (7,199,870 and 7,199,870 Class A ordinary shares as of December 31, 2020 and 2021, at cost) | ¥ (459,815) | $ (72,155) | ¥ (459,815) | |||
Ordinary shares | ||||||
Ordinary shares, par value | $ / shares | $ 0.001 | |||||
Authorized | 860,000,000 | 860,000,000 | 860,000,000 | 860,000,000 | ||
Issued | 56,593,157 | 56,593,157 | 55,546,254 | 55,546,254 | ||
Outstanding | 49,393,287 | 49,393,287 | 48,346,384 | 48,346,384 | ||
Treasury shares | 7,199,870 | 7,199,870 | 7,199,870 | 7,199,870 | ||
Common Class B | ||||||
Shareholders' equity: | ||||||
Ordinary shares | ¥ 74 | $ 12 | ¥ 74 | |||
Ordinary shares | ||||||
Ordinary shares, par value | $ / shares | $ 0.001 | |||||
Authorized | 40,000,000 | 40,000,000 | 40,000,000 | 40,000,000 | ||
Issued | 7,206,059 | 7,206,059 | 7,206,059 | 7,206,059 | ||
Outstanding | 7,206,059 | 7,206,059 | 7,206,059 | 7,206,059 | ||
Parent Company [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | ¥ 23,506 | $ 3,689 | ¥ 3,793 | $ 594 | 7,599 | ¥ 25,507 |
Prepaid expenses and other current assets | 24 | 4 | 699 | |||
Amounts due from related parties | 407,795 | 63,991 | 410,910 | ¥ (37,565) | ||
Total current assets | 431,325 | 67,684 | 415,402 | |||
Investment in subsidiaries | (1,700,223) | (266,802) | (1,241,409) | |||
Total Assets | (1,268,898) | (199,118) | (826,007) | |||
Current liabilities: | ||||||
Accrued expenses and other current liabilities | 5,781 | 907 | 7,213 | |||
Due to intercompany | 309,241 | 48,527 | 298,782 | |||
Total current liabilities | 315,022 | 49,434 | 305,995 | |||
Total Liabilities | 315,022 | 49,434 | 305,995 | |||
Commitments and contingencies | ||||||
Shareholders' equity: | ||||||
Treasury shares (7,199,870 and 7,199,870 Class A ordinary shares as of December 31, 2020 and 2021, at cost) | (459,815) | (72,155) | (459,815) | |||
Additional paid-in capital | 1,347,205 | 211,406 | 1,324,161 | |||
Accumulated other comprehensive income | 48,699 | 7,641 | 49,120 | |||
Accumulated deficit | (2,520,438) | (395,512) | (2,045,891) | |||
Total equity deficit to the shareholders of Tarena International, Inc. | (1,583,920) | (248,552) | (1,132,002) | |||
Total liabilities and equity | (1,268,898) | (199,118) | (826,007) | |||
Parent Company [Member] | Common Class A | ||||||
Shareholders' equity: | ||||||
Ordinary shares | ¥ 355 | $ 56 | ¥ 349 | |||
Ordinary shares | ||||||
Ordinary shares, par value | $ / shares | $ 0.001 | $ 0.001 | ||||
Authorized | 860,000,000 | 860,000,000 | 860,000,000 | 860,000,000 | ||
Issued | 56,593,157 | 56,593,157 | 55,546,254 | 55,546,254 | ||
Outstanding | 49,393,287 | 49,393,287 | 48,346,384 | 48,346,384 | ||
Treasury shares | 7,199,870 | 7,199,870 | 7,199,870 | 7,199,870 | ||
Parent Company [Member] | Common Class B | ||||||
Shareholders' equity: | ||||||
Ordinary shares | ¥ 74 | $ 12 | ¥ 74 | |||
Ordinary shares | ||||||
Ordinary shares, par value | $ / shares | $ 0.001 | $ 0.001 | ||||
Authorized | 40,000,000 | 40,000,000 | 40,000,000 | 40,000,000 | ||
Issued | 7,206,059 | 7,206,059 | 7,206,059 | 7,206,059 | ||
Outstanding | 7,206,059 | 7,206,059 | 7,206,059 | 7,206,059 |
PARENT ONLY FINANCIAL INFORMA_4
PARENT ONLY FINANCIAL INFORMATION - Condensed Statements of Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
Selling and marketing expenses | ¥ 878,130 | $ 137,798 | ¥ 906,337 | ¥ 1,119,698 |
General and administrative expenses(a) | (569,985) | (89,443) | (630,618) | (723,306) |
Operating (loss) gain | (369,112) | (57,922) | (806,380) | (1,098,156) |
Foreign currency exchange gains (loss) | (518) | (81) | (4,849) | 1,614 |
Interest income (expense), net | 2,335 | 366 | (199) | 15,859 |
Other income | 5,572 | 875 | 5,201 | 246 |
Loss before income taxes | (361,723) | (56,762) | (806,227) | (1,080,437) |
Income tax expense | (114,057) | (17,898) | 35,034 | 41,559 |
Net loss | (476,000) | (74,660) | (771,193) | (1,038,878) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | (421) | (66) | (2,266) | 914 |
Comprehensive loss | (476,201) | (74,726) | (773,459) | (1,037,964) |
Parent Company [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Selling and marketing expenses | (323) | (51) | (693) | |
General and administrative expenses(a) | 5,955 | 934 | (16,890) | (29,011) |
Operating (loss) gain | 5,632 | 883 | (17,583) | (29,011) |
Equity in loss of subsidiaries | (480,114) | (75,340) | (748,006) | (1,007,788) |
Foreign currency exchange gains (loss) | (268) | (42) | (1,109) | 115 |
Interest income (expense), net | 203 | 32 | 55 | (67) |
Other income | 665 | |||
Loss before income taxes | (474,547) | (74,467) | (766,643) | (1,036,086) |
Net loss | (474,547) | (74,467) | (766,643) | (1,036,086) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | (421) | (66) | (2,266) | 914 |
Comprehensive loss | ¥ (474,968) | $ (74,533) | ¥ (768,909) | ¥ (1,035,172) |
PARENT ONLY FINANCIAL INFORMA_5
PARENT ONLY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Investing activities: | ||||
Proceeds from maturity of time deposits | ¥ 50,000 | $ 7,846 | ¥ 171,660 | ¥ 419,777 |
Foreign currency exchange losses | 518 | 81 | 4,849 | (1,614) |
Financing activities: | ||||
Proceeds from bank loan | 30,000 | 4,708 | 10,710 | 89,162 |
Issuance of Class A ordinary shares in connection with exercise of share options | 3,947 | 619 | 3,354 | 3,335 |
Repurchase of treasury shares | (5,058) | |||
Changes in cash, cash equivalents and restricted cash | 65,540 | 10,285 | (177,777) | (8,550) |
Parent Company [Member] | ||||
Operating activities: | ||||
Net cash (used in) provided by operating activities | 14,458 | 2,269 | (8,010) | (3,315) |
Financing activities: | ||||
Issuance of Class A ordinary shares in connection with exercise of share options | 3,947 | 619 | 3,354 | 3,335 |
Repayment of bank borrowings | (13,726) | |||
Repurchase of treasury shares | (5,058) | |||
Net cash (used in) provided by financing activities | 3,947 | 619 | 3,354 | (15,449) |
Changes in cash, cash equivalents and restricted cash | 18,405 | 2,888 | (4,656) | (18,764) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 1,308 | 207 | 850 | 856 |
Net (decrease) increase in cash and cash equivalents | 19,713 | 3,095 | (3,806) | (17,908) |
Cash and cash equivalents at beginning of year | 3,793 | 594 | 7,599 | 25,507 |
Cash and cash equivalents at end of year | ¥ 23,506 | $ 3,689 | ¥ 3,793 | ¥ 7,599 |