Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38235 |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Trading Symbol | REDU |
Entity Registrant Name | RISE Education Cayman Ltd |
Entity Incorporation, State or Country Code | E9 |
Entity Central Index Key | 0001712178 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Address, Country | CN |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 112,755,320 |
Title of 12(b) Security | American Depositary Shares |
Security Exchange Name | NASDAQ |
Document Accounting Standard | U.S. GAAP |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 999,012 | $ 143,499 | ¥ 1,288,080 |
Restricted cash | 23,813 | 3,421 | 28,705 |
Accounts receivable, net | 1,745 | 251 | 2,438 |
Amounts due from a related party | 191 | 27 | 190 |
Inventories | 8,685 | 1,248 | 11,320 |
Prepayments and other current assets | 51,420 | 7,386 | 71,537 |
Total current assets | 1,084,866 | 155,832 | 1,402,270 |
Non-current assets: | |||
Property and equipment, net | 137,340 | 19,728 | 128,412 |
Intangible assets, net | 210,346 | 30,214 | 198,057 |
Long-term investment | 33,000 | 4,740 | |
Goodwill | 665,416 | 95,581 | 491,969 |
Deferred tax assets | 11,026 | 1,584 | 6,713 |
Other non-current assets | 49,638 | 7,130 | 53,353 |
Operating lease right-of-use assets | 610,323 | 87,667 | |
Total non-current assets | 1,717,089 | 246,644 | 878,504 |
Total assets | 2,801,955 | 402,476 | 2,280,774 |
Current liabilities | |||
Current portion of long-term loan | 134,015 | 19,250 | 82,506 |
Accounts payable | 7,553 | 1,085 | 8,426 |
Accrued expenses and other current liabilities | 202,808 | 29,133 | 159,882 |
Deferred revenue and customer advances | 716,637 | 102,938 | 1,002,796 |
Income taxes payable | 14,594 | 2,096 | 25,262 |
Current portion of operating lease liabilities | 157,911 | 22,682 | |
Total current liabilities | 1,233,518 | 177,184 | 1,278,872 |
Non-current liabilities | |||
Long-term loan | 370,163 | 53,171 | 502,356 |
Non-current deferred revenue and customer advances | 39,397 | 5,659 | 36,037 |
Deferred tax liabilities | 31,116 | 4,470 | 14,541 |
Other non-current liabilities | 39,156 | 5,624 | 8,134 |
Operating lease liabilities | 464,304 | 66,692 | |
Total non-current liabilities | 944,136 | 135,616 | 561,068 |
Total liabilities | 2,177,654 | 312,800 | 1,839,940 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Ordinary shares (US$0.01 par value; 200,000,000 and 200,000,000 shares authorized, 113,779,244 and 112,755,320 shares issued and outstanding as of December 31, 2018 and 2019, respectively) | 6,946 | 998 | 7,074 |
Additional paid-in capital | 583,262 | 83,780 | 600,011 |
Treasury shares | (23,460) | ||
Statutory reserves | 104,830 | 15,058 | 78,345 |
Accumulated deficit | (127,059) | (18,251) | (248,674) |
Accumulated other comprehensive income | 40,917 | 5,877 | 42,459 |
Total RISE Education Cayman Ltd shareholders' equity | 608,896 | 87,462 | 455,755 |
Non-controlling interests | 15,405 | 2,214 | (14,921) |
Total equity | 624,301 | 89,676 | 440,834 |
Total liabilities and shareholders' equity | ¥ 2,801,955 | $ 402,476 | ¥ 2,280,774 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares |
Statement of Financial Position [Abstract] | |||
Variable Interest Entity, Consolidated, Liabilities, Current, No Recourse | ¥ 1,031,260 | $ 145,546 | ¥ 1,124,250 |
Variable Interest Entity, Consolidated, Liabilities, Noncurrent, No Recourse | ¥ 512,827 | $ 73,663 | ¥ 39,275 |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 112,755,320 | 112,755,320 | 113,779,244 |
Common Stock, Shares, Outstanding | 112,755,320 | 112,755,320 | 113,779,244 |
CONSOLIDATED STATEMENTS OF (LOS
CONSOLIDATED STATEMENTS OF (LOSS)/INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Income Statement [Abstract] | ||||
Revenues | ¥ 1,529,447 | $ 219,691 | ¥ 1,271,888 | ¥ 969,275 |
Cost of revenues | (694,693) | (99,786) | (576,530) | (452,220) |
Gross profit | 834,754 | 119,905 | 695,358 | 517,055 |
Operating expenses: | ||||
Selling and marketing | (307,339) | (44,146) | (245,662) | (177,993) |
General and administrative | (304,626) | (43,757) | (242,084) | (339,690) |
Total operating expenses | (611,965) | (87,903) | (487,746) | (517,683) |
Operating (loss)/income | 222,789 | 32,002 | 207,612 | (628) |
Interest income | 17,952 | 2,579 | 26,376 | 19,559 |
Interest expense | (34,093) | (4,897) | (33,803) | (26,589) |
Foreign currency exchange gain/(loss) | (1,506) | (216) | (1,383) | 388 |
Other income, net | 10,115 | 1,452 | 15,397 | 6,594 |
(Loss)/income before income tax expense | 215,257 | 30,920 | 214,199 | (676) |
Income tax expense | (70,697) | (10,155) | (71,763) | (52,924) |
Net (loss)/ income | 144,560 | 20,765 | 142,436 | (53,600) |
Add: Net loss attributable to non-controlling interests | 3,540 | 508 | 522 | 5,626 |
Net (loss)/income attributable to RISE Education Cayman Ltd | ¥ 148,100 | $ 21,273 | ¥ 142,958 | ¥ (47,974) |
Net (loss)/income per share: | ||||
Basic | (per share) | ¥ 1.29 | $ 0.19 | ¥ 1.26 | ¥ (0.47) |
Diluted | (per share) | 1.27 | 0.18 | 1.23 | (0.47) |
Net (loss)/income per ADS (1 ADS equals 2 ordinary shares): | ||||
Basic | (per share) | 2.58 | 0.37 | 2.51 | (0.94) |
Diluted | (per share) | ¥ 2.55 | $ 0.37 | ¥ 2.47 | ¥ (0.94) |
Shares used in net (loss)/income per share computation | ||||
Basic | 114,905,223 | 114,905,223 | 113,812,182 | 101,890,411 |
Diluted | 116,181,610 | 116,181,610 | 115,881,867 | 101,890,411 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss)/income | ¥ 144,560 | $ 20,765 | ¥ 142,436 | ¥ (53,600) |
Other comprehensive (loss)/income, net of tax of nil: | ||||
Foreign currency translation adjustments | (1,542) | (221) | 2,419 | (10,424) |
Other comprehensive (loss)/income | (1,542) | (221) | 2,419 | (10,424) |
Comprehensive (loss)/income | 143,018 | 20,544 | 144,855 | (64,024) |
Add: comprehensive loss attributable to non-controlling interests | 3,540 | 508 | 522 | 5,626 |
Comprehensive (loss)/income attributable to RISE Education Cayman Ltd | ¥ 146,558 | $ 21,052 | ¥ 145,377 | ¥ (58,398) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Common Stock [Member]CNY (¥)shares | Common Stock [Member]USD ($)shares | Additional Paid-in Capital [Member]CNY (¥) | Additional Paid-in Capital [Member]USD ($) | Treasury Stock [Member]CNY (¥) | Statutory Reserves [Member]CNY (¥) | Statutory Reserves [Member]USD ($) | Retained Earnings [Member]CNY (¥) | Retained Earnings [Member]USD ($) | AOCI Attributable to Parent [Member]CNY (¥) | AOCI Attributable to Parent [Member]USD ($) | Parent [Member]CNY (¥) | Parent [Member]USD ($) | Noncontrolling Interest [Member]CNY (¥) | Noncontrolling Interest [Member]USD ($) | |
Balance at Dec. 31, 2016 | ¥ 398,427 | ¥ 6,120 | ¥ 452,369 | ¥ 32,511 | ¥ (134,264) | ¥ 50,464 | ¥ 407,200 | ¥ (8,773) | ||||||||||
Balance (Shares) at Dec. 31, 2016 | shares | 100,000,000 | 100,000,000 | ||||||||||||||||
Net income/(loss) | (53,600) | (47,974) | (47,974) | (5,626) | ||||||||||||||
Issuance of ordinary shares upon initial public offering ("IPO"), net of offering costs | 437,829 | ¥ 662 | 437,167 | 437,829 | ||||||||||||||
Issuance of ordinary shares upon initial public offering ("IPO"), net of offering costs (in shares) | shares | 10,000,000 | 10,000,000 | ||||||||||||||||
Share-based compensation (Note 16) | 95,307 | 95,307 | 95,307 | |||||||||||||||
Appropriation of statutory reserves | 13,855 | (13,855) | ||||||||||||||||
Distribution to a shareholder | [1] | (571,807) | (452,369) | (119,438) | (571,807) | |||||||||||||
Other comprehensive income | (10,424) | (10,424) | (10,424) | |||||||||||||||
Balance at Dec. 31, 2017 | 295,732 | ¥ 6,782 | 532,474 | 46,366 | (315,531) | 40,040 | 310,131 | (14,399) | ||||||||||
Balance (Shares) at Dec. 31, 2017 | shares | 110,000,000 | 110,000,000 | ||||||||||||||||
Net income/(loss) | 142,436 | 142,958 | 142,958 | (522) | ||||||||||||||
Issuance of ordinary shares for business acquisition ,Value | [2] | 9,212 | ¥ 14 | 9,198 | 9,212 | |||||||||||||
Issuance of ordinary shares for business acquisition, Shares | shares | [2] | 216,021 | 216,021 | |||||||||||||||
Issuances in relation to share option exercise | 39,986 | ¥ 278 | 39,708 | 39,986 | ||||||||||||||
Issuances in relation to share option exercise (Shares) | shares | 4,388,397 | 4,388,397 | ||||||||||||||||
Cash-settled share-based compensation (Note 16) | (1,721) | (1,721) | (1,721) | |||||||||||||||
Share-based compensation (Note 16) | 20,352 | 20,352 | 20,352 | |||||||||||||||
Appropriation of statutory reserves | 31,979 | (31,979) | ||||||||||||||||
Other comprehensive income | 2,419 | 2,419 | 2,419 | |||||||||||||||
Repurchase of ordinary shares, Value | [3] | (23,460) | ¥ (23,460) | (23,460) | ||||||||||||||
Repurchase of ordinary shares, Shares | shares | [3] | (825,174) | (825,174) | |||||||||||||||
Effect of adoption of ASU 2014-09 (Note 4) at Dec. 31, 2018 | (44,122) | (44,122) | (44,122) | |||||||||||||||
Balance at Dec. 31, 2018 | 440,834 | ¥ 7,074 | 600,011 | (23,460) | 78,345 | (248,674) | 42,459 | 455,755 | (14,921) | |||||||||
Balance (Shares) at Dec. 31, 2018 | shares | 113,779,244 | 113,779,244 | ||||||||||||||||
Net income/(loss) | 144,560 | $ 20,765 | 148,100 | 148,100 | (3,540) | |||||||||||||
Acquisition of subsidiary (Note 4) | 33,866 | 33,866 | ||||||||||||||||
Issuances in relation to share option exercise | 4,647 | ¥ 32 | 4,615 | 4,647 | ||||||||||||||
Issuances in relation to share option exercise (Shares) | shares | 468,384 | 468,384 | ||||||||||||||||
Share-based compensation (Note 16) | 47,889 | 47,889 | 47,889 | |||||||||||||||
Appropriation of statutory reserves | 26,485 | (26,485) | ||||||||||||||||
Other comprehensive income | (1,542) | (221) | (1,542) | (1,542) | ||||||||||||||
Repurchase of ordinary shares, Value | [4] | (45,953) | (45,953) | (45,953) | ||||||||||||||
Repurchase of ordinary shares, Shares | shares | [4] | (1,492,308) | (1,492,308) | |||||||||||||||
Retirement of treasury shares, Value | [4] | ¥ (160) | (69,253) | ¥ 69,413 | ||||||||||||||
Balance at Dec. 31, 2019 | ¥ 624,301 | $ 89,676 | ¥ 6,946 | $ 998 | ¥ 583,262 | $ 83,780 | ¥ 104,830 | $ 15,058 | ¥ (127,059) | $ (18,251) | ¥ 40,917 | $ 5,877 | ¥ 608,896 | $ 87,462 | ¥ 15,405 | $ 2,214 | ||
Balance (Shares) at Dec. 31, 2019 | shares | 112,755,320 | 112,755,320 | ||||||||||||||||
[1] | On September 18, 2017, the Board of Directors approved cash distributions that was paid by the Company to the sole shareholder amounting to US$87,000. | |||||||||||||||||
[2] | On November 1, 2017, the Group acquired 100% equity interest of Edge Franchising, a leading Hong Kong-based admissions consulting company specializing in overseas boarding school and college placement, and certain fixed assets, intellectual properties, material contracts and key employees of the educational consulting business (“Edge Business”) from a seller in which a managing director of Bain Capital Education IV Cayman Limited (“Bain Capital Education IV”) is a director and minority shareholder (Note 13). In accordance with the sale and purchase agreement, the Company shall issue to the selling shareholder 216,021 ordinary shares, which was issued on January 2, 2018. | |||||||||||||||||
[3] | In November 2018, the Board of Directors approved share repurchase program to purchase up to US$30,000 of the Company’s ordinary shares. As of December 31, 2018, pursuant to the share repurchase program, the Company repurchased 412,587 outstanding ADS representing 825,174 outstanding ordinary shares for an aggregated purchase price of RMB23,460, of which RMB2,093 was not settled. (Note 2) | |||||||||||||||||
[4] | In November 2018, the Board of Directors approved share repurchase program to purchase up to US$30,000 of the Company’s ordinary shares. As of December 31, 2019, pursuant to the share repurchase program, the Company repurchased 1,158,741 outstanding ADS representing 2,317,482 outstanding ordinary shares for an aggregated purchase price of RMB69,413 (US$10,037). All shares repurchased were retired as of December 31, 2019 (Note 2). |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | Nov. 01, 2017shares | Sep. 18, 2017USD ($) | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018CNY (¥)shares | Nov. 30, 2018USD ($) |
Cash distributions | $ | $ 87,000,000 | |||||
Share repurchase program, authorized amount | $ | $ 30,000,000 | |||||
Repurchase of ordinary share | ¥ 48,047,000 | $ 6,901,000 | ¥ 21,367,000 | |||
Share Repurchase Plan [Member] | ||||||
Repurchase of ordinary shares | 2,317,482 | 2,317,482 | 825,174 | |||
American Depository Shares [Member] | ||||||
Repurchase of ordinary shares, not settled | ¥ | ¥ 2,093,000 | |||||
American Depository Shares [Member] | Share Repurchase Plan [Member] | ||||||
Repurchase of ordinary shares | 1,158,741 | 1,158,741 | 412,587 | |||
Repurchase of ordinary share | ¥ 69,413,000 | $ 10,037,000 | ¥ 23,460,000 | |||
Edge Franchising Co Limited Edge Franchising [Member] | ||||||
Issuance of ordinary shares for business acquisition | 216,021 | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | 100.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net (loss)/income | ¥ 144,560 | $ 20,765 | ¥ 142,436 | ¥ (53,600) |
Adjustments to reconcile net (loss)/income to net cash generated from operating activities: | ||||
Depreciation and amortization expenses | 70,021 | 10,058 | 58,225 | 49,711 |
Share-based compensation | 47,889 | 6,879 | 18,631 | 95,307 |
Loss/(gain) on disposal of equipment | (7) | (1) | (94) | 33 |
Amortization of debt issuance cost | 7,639 | 1,097 | 8,225 | 5,129 |
Deferred income tax expense | 6,475 | 930 | 6,740 | 1,151 |
Changes in operating assets and liabilities: | ||||
Prepayments and other current assets | 13,547 | 1,946 | (29,839) | 2,617 |
Accounts receivable, net | 706 | 101 | 112 | (1,695) |
Amounts due from a related party | 6,277 | (6,733) | ||
Inventories | 3,104 | 446 | (3,415) | (2,372) |
Accounts payable | (873) | (125) | 2,385 | 1,973 |
Accrued expenses and other current liabilities | (5,595) | (804) | 8,308 | 47,427 |
Income taxes payable | (11,698) | (1,680) | 4,242 | (2,543) |
Deferred revenue and customer advances | (331,657) | (47,640) | 181,828 | 201,004 |
Due to a related party | (20,000) | 20,000 | ||
Other non-current assets | 6,363 | 914 | (9,479) | (7,659) |
Other non-current liabilities | (2,220) | (318) | 5,452 | 350 |
Operating lease right-of-use assets | (610,323) | (87,667) | ||
Current portion of operating lease liabilities | 157,911 | 22,682 | ||
Operating lease liabilities | 464,304 | 66,692 | ||
Net cash generated from/(used in) operating activities | (39,854) | (5,725) | 380,034 | 350,100 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from disposal of equipment | 7 | 1 | 100 | 12 |
Purchase of property and equipment | (50,849) | (7,304) | (65,210) | (50,336) |
Purchase of intangible assets | (11,592) | (1,665) | (8,780) | (2,743) |
Purchase of short-term investments | (300,000) | (43,092) | (405,000) | (390,000) |
Proceeds from maturity of short-term investments | 300,000 | 43,092 | 405,000 | 390,000 |
Acquisition of subsidiaries, net of cash acquired | (16,782) | (2,411) | (18,076) | |
Purchase of long-term investment | (33,000) | (4,740) | ||
Business acquisition advance payment | (2,500) | (359) | (8,909) | |
Loans to a related party | (100,000) | (14,364) | (150,000) | (150,000) |
Repayment of loans to a related party | 100,000 | 14,364 | 150,000 | 150,000 |
Net cash used in investing activities | (114,716) | (16,478) | (100,875) | (53,067) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from loans, net of issuance costs | 573,019 | |||
Principal repayments on loans | (97,332) | (13,981) | (75,924) | (301,639) |
Repurchase of ordinary shares | (48,047) | (6,901) | (21,367) | |
Proceeds from IPO, net of capitalized expenses | 437,829 | |||
Proceeds from exercise of share options | 4,647 | 667 | 39,985 | |
Distribution to a shareholder | (571,807) | |||
Net cash generated from/(used in) financing activities | (140,732) | (20,215) | (57,306) | 137,402 |
Effects of exchange rate changes | 1,342 | 193 | 10,037 | (6,228) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (293,960) | (42,225) | 231,890 | 428,207 |
Cash, cash equivalents and restricted cash at beginning of year | 1,316,785 | 189,145 | 1,084,895 | 656,688 |
Cash, cash equivalents and restricted cash at end of year | 1,022,825 | 146,920 | 1,316,785 | 1,084,895 |
Supplemental disclosures of cash flow information: | ||||
Cash and cash equivalent | 999,012 | 143,499 | 1,288,080 | 1,055,982 |
Restricted cash | 23,813 | 3,421 | 28,705 | 28,913 |
Income taxes paid | (67,078) | (9,635) | (55,326) | (53,418) |
Interest expense paid | (27,390) | (3,934) | (26,707) | (20,472) |
Non-cash investing activities: | ||||
Purchase of property and equipment included in accrued expenses and other current liabilities | (10,771) | (1,547) | (8,298) | (9,241) |
Consideration for business acquisitions included in accrued expenses and other current liabilities | ¥ 18,075 | $ 2,596 | ¥ 2,000 | ¥ 25,980 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | 1. ORGANIZATION AND BASIS OF PRESENTATION RISE Education Cayman Ltd (the “Company”) is a limited company incorporated in the Cayman Islands under the laws of Cayman Islands on July 16, 2013. On September 30, 2013 (the “Acquisition date”), the Company acquired from certain third-party sellers a junior English Language Training (“ELT”) business (the “Acquisition”). In October 2017, the Group completed an initial public offering (“IPO”) and issued 5,000,000 American depositary shares representing 10,000,000 of the Company’s ordinary shares. The Company does not conduct any substantive operations on its own but instead conducts its primary business operations through its wholly-owned subsidiaries, the variable interest entity (the “VIE”), and the VIE’s subsidiaries and schools, which are located in the People’s Republic of China (the “PRC” or “China”) and Hong Kong Special Administration Region (“Hong Kong”). The VIE, the VIE’s subsidiaries and schools, hereinafter are collectively referred to as the “VIEs”. The accompanying consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries and the VIEs (hereinafter collectively referred to as the “Group”). The Group is principally engaged in the business of providing junior ELT services in China primarily under the “RISE” brand. The Group offers a wide range of educational programs, services and products, consisting primarily of educational courses, sale of course materials, franchise services, and study tours. As of December 31, 2019, details of the Company’s principal subsidiaries, the VIE and the VIE’s subsidiaries and schools are as follows: Name Date of establishment Place of establishment Percentage of equity interest attributable to the Company Principal activity Subsidiaries of the Company: RISE Education Cayman III Ltd (“Cayman III”) July 29, 2013 Cayman Islands 100% Investment holding RISE Education Cayman I Ltd (“Cayman”) June 19, 2013 Cayman Islands 100% Investment holding Rise IP (Cayman) Limited (“Rise IP”) July 24, 2013 Cayman Islands 100% Educational consulting Edge Franchising Co., Limited (“Edge Franchising”) March 16, 2016 Hong Kong 100% Educational consulting Rise Education International Limited (“Rise HK”) June 24, 2013 Hong Kong 100% Educational consulting Edge Online Co. Limited April 1, 2018 Hong Kong 100% Educational consulting Rise (Tianjin) Education Information Consulting Co., Ltd. (“Rise Tianjin” or “WFOE”) August 12, 2013 PRC 100% Educational consulting, Sale VIE: Beijing Step Ahead Education Technology Development Co., Ltd. January 2, 2008 PRC — Educational consulting VIE’s subsidiaries and school: Beijing Haidian District Step Ahead Training School September 18, 2008 PRC — Language education Name Date of establishment Place of establishment Percentage of equity interest attributable to the Company Principal activity Beijing Shijingshan District Step Ahead Training School July 14, 2009 PRC — Language education Beijing Changping District Step Ahead Training School July 3, 2009 PRC — Language education Beijing Chaoyang District Step Ahead Training School July 20, 2009 PRC — Language education Beijing Xicheng District RISE Immersion Subject English Training School February 5, 2010 PRC — Language education Beijing Dongcheng District RISE Immersion Subject English Training School July 30, 2010 PRC — Language education Beijing Tongzhou District RISE Immersion Subject English Training School April 19, 2011 PRC — Language education Beijing Daxing District RISE Immersion Subject English Training School March 31, 2013 PRC — Language education Beijing Fengtai District RISE Immersion Subject English Training School February 28, 2012 PRC — Language education Beijing RISE Immersion Subject English Training School Co., Ltd. October 26, 2018 PRC — Language education Shanghai Boyu Investment Management Co., Ltd. January 29, 2012 PRC — Language education Shanghai Riverdeep Education Information Consulting Co., Ltd. March 8, 2010 PRC — Educational Shanghai Huangpu District Step Ahead Training School June 17, 2011 PRC — Language education Shanghai Ruiaidisi English Training School Co., Ltd August 5, 2019 PRC — Language education Kunshan Ruiaidisi Education Technology Co., Ltd July 30, 2019 PRC — Language education Guangzhou Ruisi Education Technology Development Co., Ltd. August 17, 2012 PRC — Training services Guangzhou Yuexiu District RISE Immersion Subject English Training School April 29, 2014 PRC — Language education Beijing Step Ahead RISE Education Technology Development Co., Ltd. December 11, 2019 PRC — Language education Guangzhou Haizhu District RISE Immersion Subject English Training School-Chigang December 8, 2014 PRC — Language education Guangzhou Tianhe District RISE Immersion Subject English Training School July 11, 2017 PRC — Language education Guangzhou Liwan District Rise Education Training Center Co., Ltd November 25, 2019 PRC — Language education Guangzhou Tianhe District Ruisi Education Consulting Co., Ltd July 11, 2017 PRC — Language education Shenzhen Mei Ruisi Education Management Co., Ltd. February 28, 2014 PRC — Training services Shenzhen Futian District Rise Training Center January 8, 2015 PRC — Language education Shenzhen Nanshan District Rise Training Center May 26, 2015 PRC — Language education Shenzhen Luohu District Rise Education Training Center August 3, 2017 PRC — Language education Wuxi Rise Foreign Language Training Co., Ltd. June 5, 2013 PRC — Training services Wuxi Ruiying English Training Center Co., Ltd June 10, 2019 PRC — Language education Ruisixing (Tianjin) Travel Services Co., Ltd July 3, 2018 PRC — Traveling services Hebei Camphor Tree Information Technology Co., Ltd. November 5, 2015 PRC — Investment holding Shijiazhuang Forest Rock Education Technology Co., Ltd. August 28, 2018 PRC — Investment holding Shijiazhuang Xinhua District Oriental Red American Education Training School November 14, 2019 PRC — Language education Shijiazhuang Xinhua District Zhuoshuo Training School Co., Ltd December 13, 2019 PRC — Language education Shijiazhuang Yuhua District Ai Ruisi Education Training School February 1, 2019 PRC — Language education Shijiazhuang Yuhua District Oriental Red Education Training School February 1, 2019 PRC — Language education Shijiazhuang Chang’an District Jinshuo Culture Education Training School Co., Ltd April 1, 2019 PRC — Language education The VIE arrangements PRC laws and regulations currently require any foreign entity that invests in the education business in China to be an educational institution with relevant experience in providing educational services outside China. The Group’s offshore holding companies are not educational institutions and do not provide educational services outside China. Accordingly, the Group’s offshore holding companies are not allowed to directly engage in the education business in China. To comply with PRC laws and regulations, the Group conducts all of its junior ELT business in China through the VIEs. The VIEs hold the requisite licenses and permits necessary to conduct the Group’s junior ELT business. In addition, the VIEs hold leases and other assets necessary to operate the Group’s schools, employ teachers and generate substantially all of the Group’s revenues. Despite the lack of technical majority ownership, the Company has effective control of the VIE through a series of contractual arrangements (the “Contractual Agreements”) and a parent-subsidiary relationship exists between the Company and the VIE. The equity interests of the VIE are legally held by PRC individuals (the “Nominee Shareholders”). Through the Contractual Agreements, the nominee shareholders of the VIE effectively assign all their voting rights underlying their equity interests in the VIE to the Company, and therefore, the Company has the power to direct the activities of the VIE that most significantly impact its economic performance. The Company also has the right to receive economic benefits from the VIE that potentially could be significant to the VIE. Based on the above, the Company consolidates the VIE in accordance with SEC Regulation SX-3A-02 810-10, Consolidation: Overall. The following is a summary of the Contractual Agreements: Proxy Agreement. Loan Agreements. Call Option Agreement. Business Cooperation Agreement. Equity Pledge Agreement. Equity Pledge Agreement. Consulting Services Agreements. In June 2019, Rise HK entered into a new consulting service agreement with the WFOE, replacing the consulting service agreement with the WFOE entered in 2014. Under this new consulting service agreement, Rise HK provides strategic consulting services to the WFOE, including consulting services with respect to strategic planning on curriculum products and strategic consultation on curriculum products, and the WFOE agrees to pay a service fee to Rise HK. The initial term of this agreement is five years, which will be renewed for another five years automatically unless one party does not consent. The Consulting Service Agreement between Rise HK and the VIE in 2014 was terminated in June, 2019 and was replaced by a new consulting service agreement between WFOE and the VIE. No material terms or conditions were changed or altered. Therefore, there was no impact to the Company’s effective control over the VIE and the Company continued to consolidate the VIE Service Agreement. In June 2019, the WFOE entered into a new Service Agreement, a Consulting Service Agreement and a License Agreement with the VIE, replacing the 2014 Service Agreement. Under these 2019 agreements, the WFOE (i) authorizes the VIE to use the Group’s courseware and trademarks as well as the business management system developed by the WFOE, and (ii) provides certain services, including services with respect to academic support, branding, marketing and promotion support, customer service support and administrative support, to the VIE. In return, the VIE is required to pay royalties and service fees to the WFOE. The initial term of each of these agreements is five years, renewable for another five years automatically unless the parties terminate this agreement in writing. Neither the VIE nor the Nominee Shareholders may unilaterally terminate the agreement. No material terms or conditions were changed or altered. Therefore, there was no impact to the Company’s effective control over the VIE and the Company continued to consolidate the VIE. Comprehensive Services Agreements. License Agreements. Comprehensive Services Agreements and License Agreements were terminated as of June 28, 2019, and replaced with a License Agreement, a License Agreement with respect to the management system, a Service Agreement and a Framework Agreement for the purchase of teaching materials by the VIE’s schools from the WFOE dated as of the same date. Under these 2019 agreements, the WFOE continues to (i) authorize these schools to use the Group’s courseware and trademarks as well as the management systems developed by the WFOE, (ii) provide certain services, including services with respect to academic support, enrollment support, human resources support, financial management support, legal support, customer support, internet technology support and administrative support, to these schools, and (iii) sell the Group’s teaching materials to these schools at agreed upon prices. Each of the schools is required to pay royalties and service fees to the WFOE for the licenses and services provided by the WFOE. The initial term of each of these agreements is five years, renewable for another five years automatically unless the parties terminate this agreement in writing. The schools are required to pay royalties to the WFOE, which may be adjusted at the WFOE’s sole discretion. No material terms or conditions were changed or altered. Therefore, there was no impact to the Company’s effective control over the VIE and the Company continued to consolidate the VIE. Spousal Consent Letters. In November 2016, certain Contractual Agreements were supplemented to reflect a change in one of the Nominee Shareholders designated by Rise HK, and it was resolved that Rise HK through the WFOE held the irrevocable proxy to exercise all the voting rights of the shareholders of the VIE since the Proxy Agreement was in existence. As a result, Rise HK has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and is the primary beneficiary of the VIE. In June 2017, certain Contractual Arrangements were supplemented to reflect a change in one of the Nominee Shareholders designated by Rise HK. Based on the opinion of the Company’s PRC legal counsel, (i) the ownership structure of the Group, including its subsidiaries in the PRC and VIEs are in compliance with all existing PRC laws and regulations; and (ii) each of the Contractual Agreements among Rise HK, the WFOE, the VIEs and the Nominee Shareholders governed by PRC laws, are legal, valid and binding, enforceable against such parties, and will not result in any violation of PRC laws or regulations currently in effect. However, uncertainties in the PRC legal system could cause the relevant regulatory authorities to find the current Contractual Agreements and businesses to be in violation of any existing or future PRC laws or regulations. If the Company, Rise HK, the WFOE or any of its current or future VIEs are found in violation of any existing or future laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion in dealing with such violations, which may include, but not limited to, revocation of business and operating licenses, being required to discontinue or restrict its business operations, restriction of the Group’s right to collect revenues, being required to restructure its operations, imposition of additional conditions or requirements with which the Group may not be able to comply, or other regulatory or enforcement actions against the Group that could be harmful to its business. The imposition of any of these or other penalties may result in a material and adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of the VIEs or the right to receive their economic benefits, the Company would no longer be able to consolidate the VIEs. The following financial statement balances and amounts of the VIEs were included in the accompanying consolidated financial statements: As at December 31, 2018 2019 2019 RMB RMB US$ Cash and cash equivalents 947,626 742,402 106,639 Restricted cash 13,442 13,705 1,969 Accounts receivable, net 38 852 122 Inventories 1,978 3,455 496 Prepayments and other current assets 59,141 36,983 5,312 Amounts due from the Group’s subsidiaries 18,422 14,916 2,143 Total current assets 1,040,647 812,313 116,681 Property and equipment, net 118,482 127,589 18,327 Intangible assets, net 2,579 19,031 2,734 Long-term investment — 33,000 4,740 Goodwill 146,666 316,334 45,439 Deferred tax assets 6,157 7,567 1,087 Other non-current 51,660 47,945 6,887 Operating lease right-of-use — 575,229 82,626 Total non-current 325,544 1,126,695 161,840 Total assets 1,366,191 1,939,008 278,521 Accounts payable 7,558 6,639 953 Accrued expenses and other liabilities 126,455 155,709 22,366 Deferred revenue and customer advances 970,022 690,273 99,152 Income taxes payable 20,215 7,391 1,062 Amounts due to the Group’s subsidiaries 44,208 119,593 17,178 Current portion of operating lease liabilities — 153,248 22,013 Total current liabilities 1,168,458 1,132,853 162,724 Deferred revenue and customer advances 36,037 35,527 5,103 Deferred tax liabilities — 5,431 780 Operating lease liabilities — 433,874 62,322 Other non-current 3,238 37,995 5,458 Total non-current 39,275 512,827 73,663 Total liabilities 1,207,733 1,645,680 236,387 For the Years ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Revenues 912,166 1,175,618 1,443,373 207,328 Net income 24,771 85,753 74,633 10,720 Net cash generated from/(used in) operating activities 263,813 368,546 (102,228 ) (14,684 ) Net cash used in investing activities (46,630 ) (72,695 ) (102,734 ) (14,757 ) The revenue-producing assets that are held by the VIEs comprise of property and equipment, student base and franchise agreements and operating lease right-of-use As of December 31, 2019, there was no pledge or collateralization of the VIEs’ assets that can only be used to settle obligations of the VIEs. Other than the amounts due to subsidiaries of the Group (which are eliminated upon consolidation), all remaining liabilities of the VIEs are without recourse to the Company. The Company did not provide nor intend to provide financial or other support not previously contractually required to the VIEs during the years presented. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of its net assets, equivalent to the balance of its paid-in |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, and the VIEs. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIEs have been eliminated upon consolidation. Results of subsidiaries, businesses acquired from third parties and the VIEs are consolidated from the date on which control is obtained by the Company. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include valuation allowance for deferred tax assets, uncertain tax positions, the initial valuation of the assets acquired and liabilities assumed and noncontrolling interest in a business combination, economic lives and impairment of long-lived assets, impairment of goodwill, standalone selling prices of performance obligations of revenue contracts, accounts receivable and contract assets allowances, measurement of right-of-use Convenience translation Amounts in the United States Dollars (“US$”) are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.9618 per US$1.00 on December 31, 2019 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. Foreign currency The functional currency of the Company, its Cayman subsidiaries and Rise HK are the US$, the functional currency of Edge Franchising and Edge Online Co. Limited are the Hong Kong Dollars (“HK$”). The Company’s PRC subsidiaries and the VIEs determined their functional currency to be Renminbi (the “RMB”). The Group uses the RMB as its reporting currency. Each entity in the Group maintains its financial records in its own functional currency. Transactions denominated in foreign currencies are measured at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rates prevailing at the balance sheet date. Non-monetary The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of shareholders’ equity. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. Restricted cash Restricted cash primarily represents deposits held in a designated bank account as security for the interest payments on the Group’s long-term loan; and deposits restricted as to withdrawal or use under government regulations. In November 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows beginning-of-period end-of-period Investments Short-term investments The Group’s short-term investments comprise primarily of cash deposits at floating rates based on daily bank deposit rates with original maturities ranging from over three months to six months. Long-term investment The Group’s long-term investment is an equity investment in unlisted company based in the PRC over which the Group neither has significant influence nor control through investment in common stock or in-substance The Group adopted ASC 321, Investments — Equity Securities Fair Value Measurements and Disclosures The Group makes a qualitative assessment of whether the equity investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group has to recognize an impairment loss in the consolidated statements of (loss)/income equal to the difference between the carrying value and fair value. As of December 31, 2019, the carrying amount of the Group’s equity investment measured at fair value using the measurement alternative was RMB33,000 (US$4,740), net of accumulated impairment of RMB nil (US$ nil). There were also no unrealized gains (upward adjustments) or losses (downward adjustments) resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer during the periods presented. For all periods presented, no equity securities were sold. Inventories Inventories are finished goods and mainly comprised of textbooks and other educational study tools (“course materials”). Course materials are stated at the lower of cost or market. Cost is determined using the weighted average cost method. As of December 31, 2018 and 2019, the Group did not have any provision for inventories. Property and equipment Property and equipment is stated at cost less accumulated depreciation and impairment. Depreciation is calculated on a straight line basis over the following estimated useful lives: Electronic equipment 3 years Furniture 3 - 5 years Vehicles 4 years Leasehold improvements Shorter of the lease term or estimated useful life Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of (loss)/income. Direct costs that are related to the construction of property and equipment, and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment, and the depreciation of these assets commences when the assets are ready for their intended use. Segment reporting In accordance with ASC 280, Segment Reporting Non-controlling For certain subsidiaries of the VIE, a non-controlling non-controlling non-controlling non-controlling Goodwill The Group assesses goodwill for impairment in accordance with ASC 350-20, Intangibles—Goodwill and Other: Goodwill 350-20”), 350-20. There was only one reporting unit (that also represented the operating segment) as of December 31, 2018 and 2019, respectively. Goodwill was allocated to the one reporting unit as of December 31, 2018 and 2019, respectively (Note 9 two-step 350-20. more-likely-than-not two-step In performing the two-step Intangible assets Intangible assets with finite lives are carried at cost less accumulated amortization. Amortization of finite-lived intangible assets except for student base is computed using the straight-line method over the estimated useful lives. Student base is amortized using an accelerated pattern based on the estimated student attrition rate of the acquired schools. The estimated useful lives of intangible assets from the date of purchase are as follows: Category Estimated Useful Life Courseware license 15 years Franchise agreements 2.5-3 Student base 3-5 Trademarks 10-15 Purchased software 3-5 Licensed copyright Over the shorter of contractual terms Teaching course materials 10 years Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. For all periods presented, there was no impairment of any of the Group’s long-lived assets. Business Combinations The Group accounts for business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations non-controlling non-controlling In a business combination achieved in stages, the Group re-measured re-measurement The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling Fair value of financial instruments Financial instruments include cash and cash equivalents, short-term investments, restricted cash, certain other current assets, long-term investment, accounts payable, long-term loan, customer advances, lease liabilities and certain other current liabilities. For long-term investment, the Group elected to use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The carrying amounts of remaining financial instruments, except for the long-term loan, approximate their fair values because of their short-term maturities. The carrying amount of the long-term loan approximates its fair value due to the fact that the related interest rate approximates the interest rates currently offered by financial institutions for similar debt instruments of comparable maturities. Revenue recognition On January 1, 2018, the Group adopted ASC 606, Revenue from contracts with customers Revenue Recognition. The Group’s revenue recognition policies following the adoption of ASC 606 are as follows: Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the Group expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Group determines are within the scope of the new revenue recognition accounting standard, the Group performs the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The Group only applies the five-step model to contracts when it is probable that the Group will collect the consideration it is entitled to in exchange for the goods or services transferred to the customer. At contract inception, the Group assesses the goods or services promised within each contract to determine those that represent performance obligations, and assess whether each promised good or service is distinct. The Group then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Revenue is recognized net of business tax, value added taxes and tax surcharges. Contract liabilities relate to contracts where the Group received payments but has not yet satisfied the related performance obligations. The advance consideration received from customers for the services is a contract liability until services are provided to the customer and are presented in “deferred revenue and customer advances” in the consolidated balance sheets. Contract assets include costs to obtain contracts with customers. Costs to obtain contracts with customers are incremental costs to obtain franchise contracts, which are recorded as prepayment and other current assets, and other non-current The primary sources of the Group’s revenues are as follows: (a) Educational programs Educational programs’ contracts generally consist of two performance obligations, English courses and course materials, which are both capable of being distinct and distinct in the context of the contract. The transaction price is stated in the contract and known at the time of contract inception, therefore no variable consideration exists. The Group may issue promotional coupons to attract enrollment for its courses. The promotional coupons are not issued in conjunction with a concurrent revenue transaction and are for a fixed RMB amount that can only be redeemed to reduce the amount of the tuition fees for future courses. The promotional coupons are accounted for as a reduction of the transaction price and are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. Revenue is allocated to each performance obligation based on its standalone selling price. The Group generally determines standalone selling prices based on the prices charged to students. If the standalone selling price is not observable through past transactions, the Group estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Course fees are collected in advance of the commencement of each course and each course comprises of a fixed amount of classes. The Group uses the student’s daily attendance records, an output measure, to recognize revenue over time as it best depicts the simultaneous consumption and delivery of educational program services. Students are allowed to return course materials if they are unused. However, once the student attends the first class of the respective course, course materials cannot be returned. Therefore, revenue associated with distinct course materials is recognized at the point in time when control transfers to the student, generally when the student attends the first class of the respective course. According to local education bureau regulations, depending on a school’s location and the amount of classes remaining for a course, the Group may be required to refund course fees for any remaining undelivered classes to students who withdraw from a course. The refund is recorded as a reduction of the related course fees received in advance and has no impact on recognized revenue. Refunds on recognized revenue were insignificant for all periods presented. To consistent with its management reporting framework, starting during the first quarter of 2019, revenues from educational programs include revenues generated by The Edge, which was previously reported in the Others line item. Revenues from educational programs in prior periods have been adjusted for consistency and comparability (Note 5). The Edge offers admission consulting, academic tutoring and test preparation services for students who intend to study abroad and each service represents an individual performance obligation. For admission consulting services, the Group uses the input method by reference to the consulting hours incurred up to the end of reporting period as a percentage of total estimated hours to recognize revenue over a fixed contract period, which best depicts the Group’s efforts toward satisfying the performance obligation relative to the total expected efforts. For academic tutoring and test preparation services, the Group use students’ attendance records, an output measure, to recognize revenue over time as it best depicts the simultaneous consumption and delivery of such services. (b) Franchise revenues Franchise revenues includes non-refundable (c) Other revenues Other revenues comprise mainly of the provision of overseas and domestic study tour services. The Group determined the overseas study tours contract contains a single performance obligation and the Group is the principal in providing overseas study tours services as it controls such services before the services are transferred to the customer. Therefore, the Group recognizes study tours revenue on a gross basis. The Group recognize revenue over the service period of the study tour, which is, generally around two to three weeks, as it best depicts the simultaneous consumption and delivery of overseas study tours services. Advertising expenditures Advertising costs are expensed when incurred and are included in selling expenses in the consolidated statements of (loss)/income. For the years ended December 31, 2017, 2018 and 2019, advertising expenses were approximately RMB80,475, RMB136,323 and RMB177,378 (US$25,479), respectively. Leases The Group adopted ASU No. 2016-02, Leases non-lease The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a right-of-use Upon adoption, the Group recognized ROU assets of RMB601,610 and total lease liabilities (including current and non-current) The Group’s operating leases mainly related to offices and classroom facilities. The components of operating lease costs were as follows: For the year ended RMB US$ Operating Lease Costs: Fixed 193,665 27,818 Short-term 859 123 Total (1) 194,524 27,941 1) Variable operating lease cost was immaterial for the year ended December 31, 2019. Supplemental cash flow information related to operating leases was as follows: For the year ended RMB US$ Cash paid for amounts included in the measurement of lease liabilities: 191,493 27,506 Right-of-use 176,026 25,285 The aggregate future lease payments for operating leases as of December 31, 2019 were as follows: RMB US$ 2020 184,225 26,462 2021 155,028 22,268 2022 133,965 19,243 2023 97,654 14,027 2024 48,468 6,962 Thereafter 85,290 12,251 Total lease payments 704,630 101,213 Less: I mp uted interest 82,415 11,839 Present value of lease liabilities 622,215 89,374 As of December 31, 2019, the weighted average remaining lease term was 5.0 years and weighted average discount rate was 4.90% for the Group’s operating leases. (Loss)/income per share In accordance with ASC 260, Earnings Per Share Share-based compensation The Group applies ASC 718, Compensation — Stock Compensation In accordance with ASC 718, the Group recognizes share-based compensation cost for equity awards to employees with a performance condition based on the probable outcome of that performance condition — compensation cost is recognized if it is probable that the performance condition will be achieved and shall not be recognized if it is not probable that the performance condition will be achieved. In accordance with ASC 718, the effect of a market condition is reflected in the grant-date fair value of the granted equity awards. The Group recognizes share-based compensation cost for equity awards with a market condition provided that the requisite service is rendered, regardless of when, if ever, the market condition is satisfied. A change in any of the terms or conditions of the awards is accounted for as a modification of the award. When the vesting conditions (or other terms) of the equity awards granted to employees are modified, the Group first determines on the modification date whether the original vesting conditions were expected to be satisfied, regardless of the entity’s policy election for accounting for forfeitures. If the original vesting conditions are not expected to be satisfied, the grant-date fair value of the original equity awards are ignored , Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the fair value of the awards and other pertinent factors at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For unvested awards, the Group recognizes over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. If the fair value of the modified award is lower than the fair value of the original award immediately before modification, the minimum compensation cost the Group recognizes is the cost of the original award. The Group uses the accelerated method for all awards granted with graded vesting service conditions, and the straight-line method for awards granted with non-graded Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes more-likely-than-not The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related PRC tax law. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of (loss)/ income as income tax expense. In accordance with the provisions of ASC 740, the Group recognizes in its consolidated financial statements the impact of a tax position if a tax return position or future tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The Group’s estimated liability for unrecognized tax benefits which is included in “other non-current Government subsidies Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Government subsidies of non-operating non-operating Other income, net The Group’s depositary bank of its American depositary receipt (“ADR”) program may make contributions to the Group provided certain conditions are met. For the years ended December 31, 2017, 2018 and 2019, the Group received nil, RMB10,960 and nil from the depository bank, and recognized as nil, RMB10,960 and nil as (loss)/ income. Comprehensive (loss)/income Comprehensive (loss)/income is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income Employee benefit expenses All eligible employees of the Group are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the qualified employees’ salaries. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed. The Group has no further payment obligations once the contributions have been paid. The Group recorded employee benefit expenses of RMB62,934, RMB87,544 and RMB107,747 (US$15,477) for the years ended December 31, 2017, 2018 and 2019, respectively. Treasury shares In November 2018, the Board of Directors approved a share repurchase plan (“2018 repurchase plan”). The Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is initially recorded in the paid-in Recent accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”) 2016-13 2016-13 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment 2017-04”), In August 2018, FASB issued ASU 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”). 2018-13 |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF RISKS | 3. CONCENTRATION OF RISKS Business, customer, political, social and economic risks The Group participates in a dynamic industry and believes that changes in any of the following areas could have a material adverse effect on the Group’s future financial position, results of operations or cash flows: changes in the overall demand for services; competitive pressures due to new entrants; advances and new trends in new technologies and industry standards; changes in certain strategic relationships or customer relationships; regulatory considerations; and risks associated with the Group’s ability to attract and retain employees necessary to support its growth. The Group’s operations could be also adversely affected by significant political, economic and social uncertainties in the PRC. No single customer or supplier accounted for more than 10% of revenue or costs of revenues for the each of three years in the period ended December 31, 2019. Concentration of credit risk Financial instruments that potentially subject the Group to significant concentration of credit risk consist primarily of cash and cash equivalents, and restricted cash. As of December 31, 2019, substantially all of the Group’s cash and cash equivalents, and restricted cash were deposited with financial institutions with high-credit ratings and quality. PRC state-owned banks, such as Bank of China, are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered to take over the operation and management when any of those banks faces a material credit crisis. The Group does not foresee substantial credit risk with respect to cash and cash equivalents, restricted cash and short-term investments held at the PRC state-owned banks. Meanwhile, China does not have an official deposit insurance program, nor does it have an agency similar to what was the Federal Deposit Insurance Corporation (FDIC) in the U.S. In the event of bankruptcy of one of the financial institutions in which the Group has deposits or investments, it may be unlikely to claim its deposits or investments back in full. The Group selected reputable international financial institutions with high rating rates to place its foreign currencies. The Group regularly monitors the rating of the international financial institutions to avoid any potential defaults. There has been no recent history of default in relation to these financial institutions. Interest rate risk The Group is exposed to interest rate risk related to its outstanding long-term loan (Note 11). The interest rate of the long-term loan was mainly based on the three month London Interbank Offered Rate and a pre-determined Foreign currency exchange rate risk From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For RMB against US$, there was depreciation of approximately 6.7% and appreciation of 5.7% and 1.3% during the years ended December 31, 2017, 2018 and 2019. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the US$ in the future. To the extent that the Group needs to convert US$ into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against US$ would have an adverse effect on the RMB amount the Group would receive from the conversion. Conversely, if the Group decides to convert RMB into US$ for the purpose of making payments for dividends on ordinary shares, strategic acquisitions or investments or other business purposes, appreciation of US$ against RMB would have a negative effect on the US$ amount available to the Group. In addition, a significant depreciation of the RMB against the US$ may significantly reduce the US$ equivalent of the Group’s earnings or losses. Currency convertibility risk The Group transacts all of its business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (the “PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into US$ or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. The Group’s cash and cash equivalents, and restricted cash denominated in RMB amounted to RMB970,936 (US$139,466) as of December 31, 2019. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | 4. BUSINESS COMBINATION Edge On November 1, 2017, the Group acquired 100% equity interest of Edge Franchising, a leading Hong Kong-based admissions consulting company specializing in overseas boarding school and college placement, and certain fixed assets, intellectual properties, material contracts and key employees of the educational consulting business (collectively referred to as “ Edge Acquiree”, or “Edge Business”) from a seller in which a managing director of Bain Capital Education IV Cayman Limited (“Bain Capital Education IV”) is a director and minority shareholder. The acquisition is expected to complement the Group’s existing business and achieve significant synergies. Details of the purchase consideration are as follows: (i) Cash consideration of RMB16,769 (“Cash Consideration”) . (ii) In accordance with the sale and purchase agreement, the Company shall issue to the selling shareholder 216,021 ordinary shares. As of the acquisition date, the Group recorded RMB9,211 (“Share Consideration”) in the “Accrued expenses and other current liabilities” . The Cash Consideration and Share Consideration were settled on January 2, 2018 The Company has completed the valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the acquisition date. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of November 1, 2017, the date of acquisition: RMB Purchase consideration 25,980 Net assets acquired, excluding intangible assets and the related deferred tax liabilities 2,133 Intangible assets 4,994 Trademark 1,693 Student base 2,962 Franchise agreements 339 Deferred tax liabilities (1,235 ) Deferred revenue and customer advances (10,663 ) Goodwill 30,751 Included in the goodwill of RMB30,261 recognized on the acquisition date is the expected synergies from combining operations of the Acquiree and the Group which does not qualify for separate recognition. None of the goodwill recognized is expected to be deductible for income tax purposes. The Company recognized RMB889 of acquisition related costs which were included in general and administrative expenses in the year ended December 31, 2017. The actual results of operation after the acquisition date and pro-forma Shijiazhuang On July 1, 2019, the Group acquired a 51% equity interest in 7 learning centers in Shijiazhuang (“Shijiazhuang business”), certain fixed assets, student contracts and key employees of the educational consulting business from a franchisee of the Group. The acquisition is expected to complement the Group’s existing business and achieve significant synergies. Total consideration was RMB44,061(US$6,329) in cash, of which RMB9,606(US$1,380) was unpaid as of December 31, 2019. The Group has completed the valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the acquisition date. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of July 1, 2019, the date of acquisition: RMB US$ Purchase consideration 44,061 6,329 Net assets acquired, excluding intangible assets and the related deferred tax liabilities (83,813 ) (12,039 ) Intangible assets 15,800 2,270 Student base 15,800 2,270 Deferred tax liabilities (4,742 ) (681 ) Non-controlling (33,866 ) (4,865 ) Goodwill 150,682 21,644 The non-controlling Goodwill recognized on the acquisition date is the expected synergies from combining operations of Shijiazhuang and the Group, which does not qualify for separate recognition. None of the goodwill recognized is expected to be deductible for income tax purposes. The Group recognized RMB464 and RMB83 (US$12) of acquisition related costs which were included in general and administrative expenses for the years ended December 31, 2018 and 2019, respectively. The information of pro forma revenue and net loss for the year ended December 31, 2018 is not available and the cost to develop it would be excessive. The unaudited pro forma information for the year ended December 31, 2019 set forth below gives effect to the acquisition as if it had occurred at the beginning of the period. The pro forma results have been calculated after applying the Group’s accounting policies and including adjustments primarily related to the amortization of acquired intangible assets, and income tax effects, as applicable. The pro forma information does not include any impact of transaction synergies and is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been occurred had the acquisition been consummated as of that time or that may result in the future: For the year ended December 31, 2019 pro forma As reported As reported (unaudited) RMB RMB US$ Revenues 1,555,302 1,529,447 219,691 Net income 152,669 148,100 21,273 Changping On November 1, 2019, the Group acquired certain fixed assets, intellectual properties, material contracts and key employees of a franchised learning center in Changping (“Changping”) from a franchisee of the Group for a total cash consideration of RMB12,669 (US$1,820), of which RMB8,469 (US$1,216) was unpaid as of December 31, 2019. Identifiable intangible assets acquired include student base of RMB4,500 (US$646). Goodwill recognized on the acquisition date is not tax deductible and amounted to RMB18,986 (US$2,727); and represents the expected synergies from combining the operations of Changping and the Group, which does not qualify for separate recognition. The actual results of operation after the acquisition date and pro-forma |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
REVENUES | 5. REVENUES For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Educational programs (a) 835,065 1,097,619 1,324,654 190,274 Franchise revenues (b) 100,013 125,341 156,509 22,481 Others 34,197 48,928 48,284 6,936 969,275 1,271,888 1,529,447 219,691 (a) To consistent with its management reporting framework, starting from the first quarter of 2019, revenues from educational programs include revenues generated by The Edge, which was previously reported in the Others line item (Note 2). Revenues from educational programs in previous years have been adjusted for consistency and comparability. (b) Initial franchise fees amounted to RMB23,302, RMB19,904 and RMB20,569 (US$2,955), and recurring franchise fees amounted to RMB76,711, RMB105,310 and RMB135,940 (US$19,526) for the years ended December 31, 2017, 2018 and 2019, respectively. The following table provides information about contract assets and liabilities from contracts with customers: As at 2018 2019 2019 RMB RMB US$ Cost to obtain contract with customers-current 551 1,091 157 Cost to obtain contract with customers-non 1,274 3,026 435 Contract liabilities-current 959,363 702,737 100,942 Contract liabilities-non 36,037 39,397 5,659 During the year of 2019, the contract liabilities balance included decreases for revenues recognized during the period and increases related to new enrollments. For the year ended December 31, 2019, revenue recognized from amounts included in contract liabilities at the beginning of the period was RMB947,077 (US$136,039). As of December 31, 2019, the remaining performance obligations related to educational program services that are partially or wholly unsatisfied are expected to be satisfied within one year, and other remaining performance obligations related to franchise services that are partially or wholly unsatisfied which will be satisfied from one to five years. |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 6. PREPAYMENTS AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As at December 31, 2018 2019 2019 RMB RMB US$ Prepayments to suppliers 27,786 15,799 2,269 Prepaid rental expense 14,701 5,748 826 Staff advances 2,306 1,586 228 Deposits 12,679 18,241 2,620 Prepaid taxes and surcharges 3,930 4,513 648 Current portion of costs to obtain contracts with customers 551 1,091 157 Other receivables 9,584 4,442 638 71,537 51,420 7,386 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 7. PROPERTY AND EQUIPMENT, NET As at December 31, 2018 2019 2019 RMB RMB US$ Electronic equipment 50,278 60,737 8,724 Furniture 10,649 11,738 1,686 Vehicles 1,168 1,168 168 Leasehold improvements 237,256 277,042 39,795 299,351 350,685 50,373 Less: accumulated depreciation 170,939 213,345 30,645 Property and equipment, net 128,412 137,340 19,728 Depreciation expense for the years ended December 31, 2017, 2018 and 2019 was RMB29,246, RMB36,026 and RMB45,375 (US$6,518), respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET The Group’s intangible assets were all acquired and consisted of the following: As at December 31, 2018 2019 2019 RMB RMB US$ Costs: Courseware license 211,433 214,087 30,752 Franchise agreements 61,151 62,158 8,928 Student base 97,239 116,828 16,781 Trademarks 49,705 50,338 7,231 Purchased software 21,309 26,514 3,808 Teaching course materials 14,022 21,115 3,033 Licensed c — 2,840 408 454,859 493,880 70,941 Accumulated amortization: Courseware license (74,002 ) (89,094 ) (12,798 ) Franchise agreements (60,937 ) (61,221 ) (8,794 ) Student base (94,480 ) (99,101 ) (14,235 ) Trademarks (16,984 ) (20,572 ) (2,955 ) Purchased software (6,008 ) (7,644 ) (1,098 ) Teaching course materials (4,391 ) (5,902 ) (847 ) Licensed co — — — (256,802 ) (283,534 ) (40,727 ) Net carrying amount 198,057 210,346 30,214 The Group recorded amortization expense of RMB20,465, RMB22,199 and RMB24,646 (US$3,540) for the years ended December 31, 2017, 2018 and 2019, respectively. As of December 31, 2019, estimated amortization expense of the existing intangible assets for each of the next five years is RMB29,068, RMB27,959, RMB25,094, RMB23,400, and RMB21,132, respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | 9 GOODWILL Balance as of January 1, 2018 475,732 Goodwill acquired in business combination 884 Impairment losses — Foreign exchange effect 15,353 Balance as of December 31, 2018 491,969 Goodwill acquired in business combination 169,668 Impairment losses — Foreign exchange effect 3,779 Balance as of December 31, 2019 665,416 Balance as of December 31, 2019 (US$) 95,581 The Group’s goodwill is mainly attributable to the acquisitions in 2013, 2017 and 2019 (Note 4). Goodwill is not tax deductible. For the years ended December 31, 2018 and 2019, respectively, the Group performed a qualitative assessment based on the requirements of ASC 350-20. more-likely-than-not |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 1 0 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other liabilities consisted of the following: As at December 31, 2018 2019 2019 RMB RMB US$ Payroll and welfare payable 80,490 106,429 15,288 Taxes payable 6,778 17,584 2,526 Interest payable 1,605 672 97 Accrued other operating expenses 54,223 24,653 3,541 Accrual for purchase of property and equipment 8,298 10,771 1,547 Payable for acquisition consideration (Note 4) — 18,075 2,596 Others 8,488 24,624 3,538 159,882 202,808 29,133 |
LONG-TERM LOAN
LONG-TERM LOAN | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM LOAN | 1 1 LONG-TERM LOAN In July 2016, the Group Group 470-50, The and US$35,750 as of December 31, 2018 and 2019 respectively. The amount repayable within twelve months was reclassified to current liabilities. The interest rate of the facility is a flexible interest rate from 2.00% to 3.50% per annum, depending on the leverage ratio of Cayman, plus London Interbank Offered Rate. The interest rate for the outstanding loan as of December 31, 2019, was approximately 3.90%. Arrangement fee of US$4,708 was incurred to establish the loan facility, and has been capitalized on the consolidated balance sheet to offset against loan liability and accounted for under the effective interest rate method. Management assessed no breach of its loan covenants for the year ended December 31, 2019. The loan facility is guaranteed by Rise IP, Rise HK, the WFOE and VIE. Further, the ordinary shares of certain subsidiaries of the Group were pledged as collateral for the loan facility. In addition, the Group maintained deposits held in a designated bank account as security for interest payments amounting to US$1,452 (equivalent to RMB10,108 ) As of December 31, 2019, the loan principal will be due according to the following schedule: US$ September 12, 2020 19,250 September 12, 2021 24,750 September 12, 2022 30,250 74,250 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 1 2 INCOME TAXES Cayman Islands Under the current laws of the Cayman Islands, the Company and its Cayman subsidiaries are not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Rise HK and Edge Franchising are incorporated in Hong Kong and are subject to Hong Kong Profits Tax, which is currently imposed at the rate of 16.5%, with half-rate of 8.25% may apply for the first HK$2,000 of assessable profits for years of assessment beginning on or after April 1, 201 8 PRC Effective from January 1, 2008, the PRC’s statutory, Enterprise Income Tax (“EIT”) rate is 25%. Preferential EIT rate at 15% is available for entities qualified as “High and New Technology Enterprises” (“HNTE”) . The HNTE certificate is effective for a period of three years. Dividends, interests, rent or royalties payable by the Group’s PRC subsidiaries, to non-PRC non-resident non-PRC (Loss)/income before income taxes consists of: For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ PRC 14,121 189,760 181,457 26,065 Non-PRC (14,797 ) 24,439 33,800 4,855 (676 ) 214,199 215,257 30,920 The current and deferred portions of income tax expense included in the consolidated statements of (loss)/income are as follows: For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Current income tax expense (51,773 ) (65,023 ) (64,222 ) (9,225 ) Deferred income tax expense (1,151 ) (6,740 ) (6,475 ) (930 ) Income tax expense (52,924 ) (71,763 ) (70,697 ) (10,155 ) The reconciliation of the income tax expense for the years ended December 31, 2017, 2018 and 2019 is as follows: For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ (Loss)/ income before income tax (676 ) 214,199 215,257 30,920 Income tax benefit/(expense) computed at the PRC statutory tax rate of 25% 169 (53,550 ) (53,815 ) (7,730 ) Effect of different tax rates in different jurisdictions (8,175 ) 2,291 (2,286 ) (328 ) Effect of preferential tax rates — — 8,444 1,213 Effect of tax rate change — — (4,483 ) (644 ) Non-deductible (26,482 ) (15,069 ) (19,438 ) (2,792 ) Outside basis difference on investment in WFOE (4,446 ) (6,233 ) (9,872 ) (1,418 ) PRC royalty withholding tax (6,950 ) (6,080 ) (1,027 ) (148 ) Changes in valuation allowance (7,040 ) 6,878 11,780 1,692 Income tax expense (52,924 ) (71,763 ) (70,697 ) (10,155 ) The significant components of the Group’s deferred tax assets and liabilities as of December 31, 2018 and 2019 are as follows: As at 2018 2019 2019 RMB RMB US$ Deferred tax assets: Accrued expenses 6,680 6,182 888 Tax loss carry forward 24,214 17,075 2,453 Revenue recognition 12,749 5,031 723 Others 992 846 122 Less: Valuation allowance (37,311 ) (16,850 ) (2,420 ) 7,324 12,284 1,766 Deferred tax liabilities: Long-lived assets arising from acquisitions 844 7,239 1,040 Outside basis difference on investment in WFOE 13,853 23,725 3,408 Others 455 1,410 204 15,152 32,374 4,652 Presentation in the consolidated balance sheets: Deferred tax assets 6,713 11,026 1,584 Deferred tax liabilities (14,541 ) (31,116 ) (4,470 ) Net deferred tax liabilities (7,828 ) (20,090 ) (2,886 ) The Group operates through several subsidiaries and the VIEs and valuation allowances are considered for each of the subsidiaries and the VIEs on an individual basis. The Group recorded a valuation allowance against deferred tax assets of those subsidiaries and the VIEs that are individually in a cumulative loss as of December 31, 2018 and 2019. In making such determination, the Group evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2019, the aggregate undistributed earnings from the Company’s WFOE and VIEs that are available for distribution are RMB488,462 (US$70,163). The Company has considered its operational funding needs, future development initiatives and its dividend distribution plan, and is permanently reinvesting all but RMB237,252 (US$34,079). Determination of the amount of unrecognized deferred tax liability related to the earnings that are indefinitely reinvested is not practical because of the various associated income taxes including withholding income tax that would be payable upon the distribution of those amounts. As of December 31, 2018 and 2019, the Group had taxable losses of RMB97,192 and RMB69,861 (US$10,035 ) , As of December 31, 2018 and 2019, the Group had unrecognized tax benefits of RMB7,613 and RMB29,554 (US$4,245), respectively, of which RMB1,389 and nil, respectively were offset against the deferred tax assets on tax losses carry forward, and the remaining amount of RMB6,224 and RMB29,554 (US$4,245), respectively which if ultimately recognized, would impact the effective tax rate. The Group planned to settle unrecognized tax benefits of RMB2,101 (US$302) in cash in the next 12 months, and such amount was classified as income taxes payable. It is possible that the amount of unrecognized benefits will further change in the next 12 months; however, an estimate of the range of the possible change cannot be made at this moment. A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: 2018 2019 2019 RMB RMB US$ Balance at January 1, 8,799 7,613 1,094 Additions due to tax positions taken and business combination during the current year 2,636 26,662 3,830 Reversal based on tax positions related to prior years (171 ) (4,721 ) (679 ) Settlement (3,463 ) — — Foreign currency translation adjustments (188 ) — — Balance at December 31, 7,613 29,554 4,245 The Group recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expenses. For the years ended December 31, 2017, 2018 and 2019, the Group recognized approximately RMB734, RMB259 and RMB9,123 (US$1,310) in interest, respectively, and RMB nil, RMB1,161, and nil in penalties, respectively. The Group had approximately RMB2,580 and RMB11,703 (US$1,681 ) non-current As of December 31, 2019, tax years ended December 31, 201 4 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 1 3 RELATED PARTY TRANSACTIONS a) Related parties The direct controlling shareholder Bain Capital Education IV Entities controlled by the ultimate holding company Lionbridge Limited (“Lionbridge”) Bain Capital Advisors (China) Ltd. (“Bain Advisors”) b) During the years ended December 31, 2017, 2018 and 2019, the Group had the following related party transactions : For the year ended December 31, Notes 2017 2018 2019 2019 RMB RMB RMB US$ Loan to a related party: Lionbridge (i) 150,000 150,000 100,000 14,364 Services received from a related party : Bain Advisors (ii) 38,537 — — — (i) The Group entered into certain entrustment loan agreements with Lionbridge, pursuant to which the Group granted total loans of RMB150,000, RMB150,000 and RMB100,000 (US$14,364) to Lionbridge during the years ended December 31, 2017, 2018 and 2019, respectively, with details set forth below: Year ended December 31, 2017 Loan granted Principal Interest Rate Period Loan 1 100,000 7 % February 24, 2017 to November 30, 2017 Loan 2 50,000 7 % March 20, 2017 to November 30, 2017 Year ended December 31, 2018 Loan granted Principal Interest Rate Period Loan 1 150,000 7 % March 1, 2018 to November 30, 2018 Year ended December 31, 201 9 Loan granted Principal Interest Rate Period Loan 1 100,000 7.2 % May 30, 2019 to November 30, 2019 As of December 31, 2018 and 2019, respectively, the above loans were fully repaid. Interest income of RMB7,457, RMB7,539 and RMB3,509 (US$504) from the above loans were recorded as interest income during the years ended December 31, 2017, 2018 and 2019, respectively. (ii) During the years ended December 31, 2017, 2018 and 2019, the Group accrued consulting Bain Advisors, an affiliate of the Group’s majority shareholder, which included a lump sum consulting termination fee of RMB33,887 to Bain Advisors as a result of the IPO for the year ended December 31, 2017. (iii) On November 1, 2017, the Group acquired Edge Business from a seller in which a managing director of Bain Capital is a director and minority shareholder. c) The balances between the Group and its related parties as of December 31, 2018 and 2019 are listed below: Amounts due from a related party As at December 31, 2018 2019 2019 RMB RMB US$ Bain Capital Education IV 190 191 27 The balance consists of amount due from the Company’s direct controlling shareholder in the ordinary course of business. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
RESTRICTED NET ASSETS | 1 4 RESTRICTED NET ASSETS Prior to payment of dividends, pursuant to the laws applicable to the PRC’s foreign investment enterprises, the VIE and the VIE’s subsidiaries must make appropriations from after-tax non-distributable Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax year-end a PRC laws and regulations require private schools that require reasonable returns to make annual appropriations of no less than 25% of after-tax These reserves are included as statutory reserves in the consolidated statements of changes in shareholders’ equity. The statutory reserves cannot be transferred to the Company in the form of loans or advances and are not distributable as cash dividends except in the event of liquidation. Relevant PRC laws and regulations restrict the WFOE and the VIEs from transferring certain of their net assets to the Company in the form of loans, advances or cash dividends. Amounts restricted include the paid in capital and statutory reserves of the WFOE and the VIEs, totaling approximately RMB240,397 (US$34,531) as of December 31, 2019. |
(LOSS)_INCOME PER SHARE
(LOSS)/INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
(LOSS)/INCOME PER SHARE | 1 5 (LOSS)/INCOME PER SHARE Basic and diluted (loss)/income per share and per ADS for each of the years presented are calculated as follows: For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Numerator: Net (loss)/income attributable to RISE Education Cayman Ltd—basic and diluted (47,974 ) 142,958 148,100 21,273 Denominator: Weighted average number of ordinary shares outstanding-basic 101,890,411 113,812,182 114,905,223 114,905,223 Weighted average number of ordinary shares outstanding- diluted 101,890,411 115,881,867 116,181,610 116,181,610 Basic (loss)/income per share (0.47 ) 1.26 1.29 0.19 Diluted (loss)/income per share (0.47 ) 1.23 1.27 0.18 Basic (loss)/income per ADS (0.94 ) 2.51 2.58 0.37 Diluted (loss)/income per ADS (0.94 ) 2.47 2.55 0.37 No adjustment has been made to the basic loss per share amount presented for the year ended December 31, 2017 as the impact of the outstanding share options were anti-dilutive. Nil share options were excluded from the computation of diluted income per share for the year ended December 31, 2018 because their effect s |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENTS | 16 SHARE-BASED PAYMENTS 2016 Equity Incentive Plan In 2016, the Board of Directors approved the Equity Option Plan (the “2016 Equity Incentive Plan”), which has a term of 10 years and is administrated by the Board of Directors. Under 2016 Equity Incentive Plan, the Company reserved options to its eligible employees, directors and officers of the Group for the purchase of 7,000,000 of the Company’s ordinary shares in aggregate (excluding shares which have lapsed or have been forfeited). In April 2016, the Board of Directors approved option grants to employees for the purchase of 5,985,000 of the Company’s ordinary shares. 50% of the options granted will generally vest in four or five equal installments over a service period (the “2016 Service Options”) while the remaining 50% of the options will vest in two equal installments of 25% each if a fixed targeted return on the Company’s ordinary shares is achieved (the “2016 Market Options”). Both the Service Options and Market Options (collectively, the “2016 Options”) are exercisable only upon the occurrence of an IPO or change of control (each or collectively, the “exercisability event”). The exercisability event constitutes a performance condition that is not considered probable until the completion of the IPO or change of control. The Company will not recognize any compensation expense until the exercisability event occurs. Upon the occurrence of the exercisability event, the effect of the change in this estimate will be accounted for in the period of change by cumulative compensation cost recognition as if the new estimate had been applied since the service inception date, with the remaining unrecognized compensation cost amortized over the remaining requisite service period. Upon the occurrence of the exercisability event (the IPO completion date), the Company immediately recognized expenses associated with options that were vested as of the IPO completion date amounting to RMB90,335. In addition, the Company also will recognize the remaining compensation expenses over the remaining service requisite period using the accelerated method. Modification of options In November 2017 (“2017 Modification Date”), the Board of Directors modified share options granted to six directors and officers to be fully vested on the 2017 Modification Date. On the 2017 Modification Date, the Company recognized compensation expenses amounting to RMB2,329 (US$358) associated with the fully vested share options. The fair value of the share options immediately after the modification was the same as that immediately before the modification and therefore, the Company did not recognize any incremental compensation costs related to such modification. In 2018, the vesting of 432,500 options granted to seven employees was accelerated, and 50,000 options of one employee was cancelled and replaced with cash rewards (which was an isolated non-recurring 9 four . 9 A summary of the equity award activity under 2016 Equity Incentive Plan is stated below: Number of options Weighted - average exercise price Weighted - Average grant date fair value Weighted - average remaining contractual term Aggregate intrinsic Value US$ Years US$ Outstanding, December 31, 2018 2,299,103 1.44 N/A 6.13 5,840 Granted 308,000 1.44 3.50 Exercised (468,384 ) 1.44 N/A Forfeited/Cancelled (71,000 ) 1.44 2.02 Outstanding, December 31, 2019 2,067,719 1.44 N/A 5.52 4,260 Vested and expected to vest at December 31, 2019 2,067,719 1.44 N/A 5.52 4,260 Exercisable at December 31, 2019 2,002,719 1.44 N/A 5.43 4,126 The aggregate intrinsic value in the table above represents the difference between the fair value of the Company’s ordinary share as of December 31, 2019 and the option’s respective exercise price. Total intrinsic value of options exercised for the years ended December 31, 2017, nil , 1,333,000 awards were vested and share-based compensation expense of RMB21,896 (US$3,170) was recorded for the year ended December 31, 2019, and the weighted-average grant-date fair value for vested options is US$2.38. As of December 31, 2019, there was US$128 of total unrecognized share-based compensation expenses. Total unrecognized compensation cost may be adjusted for actual forfeitures and modifications occurring in the future. The fair value of Service Options and Market Options were determined using the binomial option valuation model and Monte Carlo simulation model, respectively, with the assistance from an independent third-party appraiser. The option valuation models required the input of highly subjective assumptions, including the expected share price volatility and the suboptimal early exercise factor. For expected volatilities, the Company has made reference to historical volatilities of several comparable companies. The suboptimal early exercise factor was estimated based on the Company’s expectation of exercise behavior of the grantees. The risk-free rate for the period within the contractual life of the Options is based on the market yield of U.S. Treasury Bonds in effect at the time of grant. The estimated fair value of the ordinary shares, was determined with the assistance of an independent third-party appraiser. Subsequent to the IPO, fair value of the ordinary shares is the price of the Company’s publicly traded shares. The Company’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The assumptions used to estimate the fair value of 2016 Equity Incentive Plan granted or modified are as follows: For the years ended December 31, 2017 2018 2019 Risk-free interest rate 2.39%-2.93% 3.51%-3.82% 2.41%-3.34% Expected volatility range 47.5%-49.3% 49.9%-53.6% 53.7%-55.2% Suboptimal exercise factor 2.8 2.8 2.8 Fair value per ordinary share as at valuation date US$ US $ U 4.11-$5.37 2017 Share Incentive Plan In 2017, the Board of Directors approved the Share Incentive Plan (the “2017 Share Incentive Plan”), which has a term of 10 years and is administrated by the Board of Directors. Under 2017 Share Incentive Plan, the Company reserved options to its eligible employees, directors and officers of the Group for the purchase of 5,000,000 of the Company’s ordinary shares in aggregate (excluding shares which have lapsed or have been forfeited). In April 2019, the Board of Directors approved option grants to employees for the purchase of 4,800,000 of the Company’s ordinary shares. 60% of the options granted will generally vest in four equal installments over a prespecified service period (the “2017 Service Options”) while the remaining 40% of the options will vest based on certain performance conditions (the “2017 Performance Options”). A summary of the equity award activity under 2017 Equity Incentive Plan is stated below: Number of options Weighted - average exercise price Weighted - Average grant date fair value Weighted - average remaining contractual term US$ Years Outstanding, December 31, 2018 — Granted 4,800,000 4.25 2.63 10 Exercised — Forfeited/Cancelled (200,000 ) 4.25 2.63 — Outstanding, December 31, 2019 4,600,000 4.25 NA 9.26 Vested and expected to vest at December 31, 2019 4,600,000 4.25 NA 9.26 Exercisable at December 31, 2019 690,000 4.25 NA 9.26 For the year ended December 31, 2019, the share options were out of the money, therefore, no intrinsic value was disclosed. 720,000 awards were vested and share-based compensation expense of RMB13,081 (US$1,894) was recorded for the year ended December 31, 2019, and the weighted-average grant-date fair value for vested options is US2.63. As of December 31, 2019, there was US$7,125 of total unrecognized share-based compensation expenses. Total unrecognized compensation cost may be adjusted for actual forfeitures and modifications occurring in the future. The fair value of 2017 Service Options and Performance Options were determined using the binomial option valuation model, with the assistance from an independent third-party appraiser. The option valuation models required the input of highly subjective assumptions, including the expected share price volatility and the suboptimal early exercise factor. For expected volatilities, the Company has made reference to historical volatilities of several comparable companies. The suboptimal early exercise factor was estimated based on the Company’s expectation of exercise behavior of the grantees. The risk-free rate for the period within the contractual life of the Options is based on the market yield of U.S. Treasury Bonds in effect at the time of grant. The fair value of the ordinary shares is the price of the Company’s publicly traded shares. The assumptions used to estimate the fair value of 2017 Equity Incentive Plan granted are as follows: For the year ended December 31, 2019 Risk-free interest rate 3.29 % Expected volatility range 54.8 % Suboptimal exercise factor 2.8 Fair value per ordinary share as at valuation date $ 4.94 Total cost of share-based payments are summarized as follows: For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Cost of revenues 17,063 1,315 2,617 376 Selling and marketing expenses 9,045 4,229 1,016 146 General and administrative expenses 69,199 14,808 44,256 6,357 Total 95,307 20,352 47,889 6,879 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 1 7 COMMITMENTS AND CONTINGENCIES Capital expenditure commitments As of December 31, 2019, future minimum capital commitments under non-cancelable RMB US$ Construction of leasehold improvements 9,010 1,294 All capital expenditure commitments are expected to be paid within one year. Contingencies As of December 31, 2019, the Group is in the process of applying for private school operating permits or private non-enterprise From time to time, the Group is also subject to legal proceedings, investigations, and claims incidental to the conduct of its business. The Group is currently not involved in any legal or administrative proceedings that may have a material adverse impact on the Group’s business, financial position or results of operations. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 1 8 ACCUMULATED OTHER COMPREHENSIVE INCOME Foreign currency translation adjustments RMB Balance as of January 1, 2017 50,464 Foreign currency translation adjustments, net of tax of nil (10,424 ) Balance as of December 31, 2017 40,040 Foreign currency translation adjustments, net of tax of nil 2,419 Balance as of December 31, 2018 42,459 Foreign currency translation adjustments, net of tax of nil (1,542 ) Balance as of December 31, 2019 40,917 US$ Balance as of December 31, 2019 5,877 There have been no reclassifications out of accumulated other comprehensive income to net income for the periods presented. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 19. SUBSEQUENT EVENT In December 2019, novel coronavirus (COVID-19) was first reported to have surfaced in Wuhan, China. Subsequent to December 31, 2019, COVID-19 has spread rapidly to many parts of China and other parts of the world. The pandemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. In accordance with government regulations to contain the outbreak of COVID-19, all the Group’s offline learning centers were temporarily closed since late January 2020. Consequently, the COVID-19 outbreak has had, and will continue to have a materially adverse impact on the Group’s business, results of operations, financial position for 2020, including but not limited to revenues and collection of tuition fees. Because of the significant uncertainties surrounding the COVID-19 outbreak, the extent of the business disruption and the related financial impact cannot be reasonably estimated at this time. The Group also expects a net loss for the year ending December 31, 2020. The Group is closely monitoring the situation and is proactively executing risk mitigation strategies to attenuate the impact of COVID-19. The Group is taking all measures necessary to preserve human life and the Group’s business along with taking several steps to further strengthen the financial position and improving financial liquidity, including launching online small-group classes, reducing capital expenditure and potential operating expenses while maintaining quality and safety standards and seeking additional financing. Based on these actions and assumptions regarding the impact of COVID-19, the Group believes that its current financial resources will be enough to fund the liquidity requirements for at least the next twelve months from April 17, 2020. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE COMPANY | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE COMPANY | 20. CONDENSED FINANCIAL INFORMATION OF THE COMPANY Condensed Balance Sheets As at December 31, 2018 2019 2019 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 13,774 13,979 2,008 Due from subsidiaries of the Group 47,096 52,910 7,600 Prepayments and other current assets 8,682 8,648 1,242 Total current assets 69,552 75,537 10,850 Non-current Investment in subsidiaries 436,925 636,322 91,402 Total non-current 436,925 636,322 91,402 Total assets 506,477 711,859 102,252 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accrued expenses and other liabilities 3,367 3,714 534 Amount due to a subsidiary of the Group 47,355 99,249 14,256 Total current liabilities 50,722 102,963 14,790 Total liabilities 50,722 102,963 14,790 Shareholders’ equity: Ordinary shares (US$0.01 par value; 200,000,000 and 200,000,000 shares authorized, 113,779,244 and 112,755,320 shares issued and outstanding as of December 31, 2018 and 2019, respectively) 7,074 6,946 998 Additional paid-in 600,011 583,262 83,780 Treasury shares, at cost (23,460 ) — — Accumulated deficit (170,329 ) (22,229 ) (3,193 ) Accumulated other comprehensive income 42,459 40,917 5,877 Total shareholders’ equity 455,755 608,896 87,462 Total liabilities and shareholders’ equity 506,477 711,859 102,252 Condensed Statements of Comprehensive (Loss)/Income For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ General and administrative expenses — (8,400 ) (5,600 ) (804 ) Operating loss — (8,400 ) (5,600 ) (804 ) Equity in (loss)/profit of subsidiaries and the VIEs (54,676 ) 138,698 153,668 22,072 Interest income 6,702 22 32 5 Others, net — 12,638 — — (Loss)/income before income tax expense (47,974 ) 142,958 148,100 21,273 Income tax expense — — — — Net (loss)/income (47,974 ) 142,958 148,100 21,273 Other comprehensive (loss)/income, net of tax of nil Foreign currency translation adjustments (10,424 ) 2,419 (1,542 ) (221 ) Other comprehensive (loss)/income (10,424 ) 2,419 (1,542 ) (221 ) Comprehensive (loss)/income (58,398 ) 145,377 146,558 21,052 Statements of Cash Flows For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net cash generated from investing activities 571,808 13,774 32 5 Net cash used in financing activities (571,808 ) — — — Effect of exchange rate changes — — 173 — Net increase in cash, cash equivalents and restricted cash — 13,774 205 5 Cash, cash equivalents and restricted cash at beginning of year — — 13,774 2,003 Cash, cash equivalents and restricted cash at end of year — 13,774 13,979 2,008 (a) Basis of presentation For the Company only condensed financial information, the Company records its investment in its subsidiaries and VIEs under the equity method of accounting. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries” and share of their income/(loss) as “Equity in (loss)/profit of subsidiaries and the VIEs” on the condensed statements of comprehensive (loss)/income. The subsidiaries and VIEs did not pay any dividends to the Company for the periods presented. (b) Commitments The Company does not have any significant commitments or long-term obligations as of any of the periods presented. The Company only condensed financial information should be read in conjunction with the Group’s consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, and the VIEs. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIEs have been eliminated upon consolidation. Results of subsidiaries, businesses acquired from third parties and the VIEs are consolidated from the date on which control is obtained by the Company. |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include valuation allowance for deferred tax assets, uncertain tax positions, the initial valuation of the assets acquired and liabilities assumed and noncontrolling interest in a business combination, economic lives and impairment of long-lived assets, impairment of goodwill, standalone selling prices of performance obligations of revenue contracts, accounts receivable and contract assets allowances, measurement of right-of-use |
Convenience Translation | Convenience translation Amounts in the United States Dollars (“US$”) are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.9618 per US$1.00 on December 31, 2019 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Foreign Currency | Foreign currency The functional currency of the Company, its Cayman subsidiaries and Rise HK are the US$, the functional currency of Edge Franchising and Edge Online Co. Limited are the Hong Kong Dollars (“HK$”). The Company’s PRC subsidiaries and the VIEs determined their functional currency to be Renminbi (the “RMB”). The Group uses the RMB as its reporting currency. Each entity in the Group maintains its financial records in its own functional currency. Transactions denominated in foreign currencies are measured at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rates prevailing at the balance sheet date. Non-monetary The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of shareholders’ equity. |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. |
Restricted Cash | Restricted cash Restricted cash primarily represents deposits held in a designated bank account as security for the interest payments on the Group’s long-term loan; and deposits restricted as to withdrawal or use under government regulations. In November 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows beginning-of-period end-of-period |
Investments | Investments Short-term investments The Group’s short-term investments comprise primarily of cash deposits at floating rates based on daily bank deposit rates with original maturities ranging from over three months to six months. Long-term investment The Group’s long-term investment is an equity investment in unlisted company based in the PRC over which the Group neither has significant influence nor control through investment in common stock or in-substance The Group adopted ASC 321, Investments — Equity Securities Fair Value Measurements and Disclosures The Group makes a qualitative assessment of whether the equity investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group has to recognize an impairment loss in the consolidated statements of (loss)/income equal to the difference between the carrying value and fair value. As of December 31, 2019, the carrying amount of the Group’s equity investment measured at fair value using the measurement alternative was RMB33,000 (US$4,740), net of accumulated impairment of RMB nil (US$ nil). There were also no unrealized gains (upward adjustments) or losses (downward adjustments) resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer during the periods presented. For all periods presented, no equity securities were sold. |
Inventories | Inventories Inventories are finished goods and mainly comprised of textbooks and other educational study tools (“course materials”). Course materials are stated at the lower of cost or market. Cost is determined using the weighted average cost method. As of December 31, 2018 and 2019, the Group did not have any provision for inventories. |
Property and Equipment | Property and equipment Property and equipment is stated at cost less accumulated depreciation and impairment. Depreciation is calculated on a straight line basis over the following estimated useful lives: Electronic equipment 3 years Furniture 3 - 5 years Vehicles 4 years Leasehold improvements Shorter of the lease term or estimated useful life Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of (loss)/income. Direct costs that are related to the construction of property and equipment, and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment, and the depreciation of these assets commences when the assets are ready for their intended use. |
Segment Reporting | Segment reporting In accordance with ASC 280, Segment Reporting |
Non-controlling Interests | Non-controlling For certain subsidiaries of the VIE, a non-controlling non-controlling non-controlling non-controlling |
Goodwill | Goodwill The Group assesses goodwill for impairment in accordance with ASC 350-20, Intangibles—Goodwill and Other: Goodwill 350-20”), 350-20. There was only one reporting unit (that also represented the operating segment) as of December 31, 2018 and 2019, respectively. Goodwill was allocated to the one reporting unit as of December 31, 2018 and 2019, respectively (Note 9 two-step 350-20. more-likely-than-not two-step In performing the two-step |
Intangible Assets | Intangible assets Intangible assets with finite lives are carried at cost less accumulated amortization. Amortization of finite-lived intangible assets except for student base is computed using the straight-line method over the estimated useful lives. Student base is amortized using an accelerated pattern based on the estimated student attrition rate of the acquired schools. The estimated useful lives of intangible assets from the date of purchase are as follows: Category Estimated Useful Life Courseware license 15 years Franchise agreements 2.5-3 Student base 3-5 Trademarks 10-15 Purchased software 3-5 Licensed copyright Over the shorter of contractual terms Teaching course materials 10 years |
Impairment of Long-Lived Assets Other Than Goodwill | Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. For all periods presented, there was no impairment of any of the Group’s long-lived assets. |
Business Combinations | Business Combinations The Group accounts for business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations non-controlling non-controlling In a business combination achieved in stages, the Group re-measured re-measurement The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling |
Fair Value of Financial Instruments | Fair value of financial instruments Financial instruments include cash and cash equivalents, short-term investments, restricted cash, certain other current assets, long-term investment, accounts payable, long-term loan, customer advances, lease liabilities and certain other current liabilities. For long-term investment, the Group elected to use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The carrying amounts of remaining financial instruments, except for the long-term loan, approximate their fair values because of their short-term maturities. The carrying amount of the long-term loan approximates its fair value due to the fact that the related interest rate approximates the interest rates currently offered by financial institutions for similar debt instruments of comparable maturities. |
Revenue Recognition | Revenue recognition On January 1, 2018, the Group adopted ASC 606, Revenue from contracts with customers Revenue Recognition. The Group’s revenue recognition policies following the adoption of ASC 606 are as follows: Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the Group expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Group determines are within the scope of the new revenue recognition accounting standard, the Group performs the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The Group only applies the five-step model to contracts when it is probable that the Group will collect the consideration it is entitled to in exchange for the goods or services transferred to the customer. At contract inception, the Group assesses the goods or services promised within each contract to determine those that represent performance obligations, and assess whether each promised good or service is distinct. The Group then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Revenue is recognized net of business tax, value added taxes and tax surcharges. Contract liabilities relate to contracts where the Group received payments but has not yet satisfied the related performance obligations. The advance consideration received from customers for the services is a contract liability until services are provided to the customer and are presented in “deferred revenue and customer advances” in the consolidated balance sheets. Contract assets include costs to obtain contracts with customers. Costs to obtain contracts with customers are incremental costs to obtain franchise contracts, which are recorded as prepayment and other current assets, and other non-current The primary sources of the Group’s revenues are as follows: (a) Educational programs Educational programs’ contracts generally consist of two performance obligations, English courses and course materials, which are both capable of being distinct and distinct in the context of the contract. The transaction price is stated in the contract and known at the time of contract inception, therefore no variable consideration exists. The Group may issue promotional coupons to attract enrollment for its courses. The promotional coupons are not issued in conjunction with a concurrent revenue transaction and are for a fixed RMB amount that can only be redeemed to reduce the amount of the tuition fees for future courses. The promotional coupons are accounted for as a reduction of the transaction price and are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. Revenue is allocated to each performance obligation based on its standalone selling price. The Group generally determines standalone selling prices based on the prices charged to students. If the standalone selling price is not observable through past transactions, the Group estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Course fees are collected in advance of the commencement of each course and each course comprises of a fixed amount of classes. The Group uses the student’s daily attendance records, an output measure, to recognize revenue over time as it best depicts the simultaneous consumption and delivery of educational program services. Students are allowed to return course materials if they are unused. However, once the student attends the first class of the respective course, course materials cannot be returned. Therefore, revenue associated with distinct course materials is recognized at the point in time when control transfers to the student, generally when the student attends the first class of the respective course. According to local education bureau regulations, depending on a school’s location and the amount of classes remaining for a course, the Group may be required to refund course fees for any remaining undelivered classes to students who withdraw from a course. The refund is recorded as a reduction of the related course fees received in advance and has no impact on recognized revenue. Refunds on recognized revenue were insignificant for all periods presented. To consistent with its management reporting framework, starting during the first quarter of 2019, revenues from educational programs include revenues generated by The Edge, which was previously reported in the Others line item. Revenues from educational programs in prior periods have been adjusted for consistency and comparability (Note 5). The Edge offers admission consulting, academic tutoring and test preparation services for students who intend to study abroad and each service represents an individual performance obligation. For admission consulting services, the Group uses the input method by reference to the consulting hours incurred up to the end of reporting period as a percentage of total estimated hours to recognize revenue over a fixed contract period, which best depicts the Group’s efforts toward satisfying the performance obligation relative to the total expected efforts. For academic tutoring and test preparation services, the Group use students’ attendance records, an output measure, to recognize revenue over time as it best depicts the simultaneous consumption and delivery of such services. (b) Franchise revenues Franchise revenues includes non-refundable (c) Other revenues Other revenues comprise mainly of the provision of overseas and domestic study tour services. The Group determined the overseas study tours contract contains a single performance obligation and the Group is the principal in providing overseas study tours services as it controls such services before the services are transferred to the customer. Therefore, the Group recognizes study tours revenue on a gross basis. The Group recognize revenue over the service period of the study tour, which is, generally around two to three weeks, as it best depicts the simultaneous consumption and delivery of overseas study tours services. |
Advertising Expenditures | Advertising expenditures Advertising costs are expensed when incurred and are included in selling expenses in the consolidated statements of (loss)/income. For the years ended December 31, 2017, 2018 and 2019, advertising expenses were approximately RMB80,475, RMB136,323 and RMB177,378 (US$25,479), respectively. |
Leases | Leases The Group adopted ASU No. 2016-02, Leases non-lease The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a right-of-use Upon adoption, the Group recognized ROU assets of RMB601,610 and total lease liabilities (including current and non-current) The Group’s operating leases mainly related to offices and classroom facilities. The components of operating lease costs were as follows: For the year ended RMB US$ Operating Lease Costs: Fixed 193,665 27,818 Short-term 859 123 Total (1) 194,524 27,941 1) Variable operating lease cost was immaterial for the year ended December 31, 2019. Supplemental cash flow information related to operating leases was as follows: For the year ended RMB US$ Cash paid for amounts included in the measurement of lease liabilities: 191,493 27,506 Right-of-use 176,026 25,285 The aggregate future lease payments for operating leases as of December 31, 2019 were as follows: RMB US$ 2020 184,225 26,462 2021 155,028 22,268 2022 133,965 19,243 2023 97,654 14,027 2024 48,468 6,962 Thereafter 85,290 12,251 Total lease payments 704,630 101,213 Less: I mp uted interest 82,415 11,839 Present value of lease liabilities 622,215 89,374 As of December 31, 2019, the weighted average remaining lease term was 5.0 years and weighted average discount rate was 4.90% for the Group’s operating leases. |
(Loss)/income per share | (Loss)/income per share In accordance with ASC 260, Earnings Per Share |
Share-based Compensation | Share-based compensation The Group applies ASC 718, Compensation — Stock Compensation In accordance with ASC 718, the Group recognizes share-based compensation cost for equity awards to employees with a performance condition based on the probable outcome of that performance condition — compensation cost is recognized if it is probable that the performance condition will be achieved and shall not be recognized if it is not probable that the performance condition will be achieved. In accordance with ASC 718, the effect of a market condition is reflected in the grant-date fair value of the granted equity awards. The Group recognizes share-based compensation cost for equity awards with a market condition provided that the requisite service is rendered, regardless of when, if ever, the market condition is satisfied. A change in any of the terms or conditions of the awards is accounted for as a modification of the award. When the vesting conditions (or other terms) of the equity awards granted to employees are modified, the Group first determines on the modification date whether the original vesting conditions were expected to be satisfied, regardless of the entity’s policy election for accounting for forfeitures. If the original vesting conditions are not expected to be satisfied, the grant-date fair value of the original equity awards are ignored , Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the fair value of the awards and other pertinent factors at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For unvested awards, the Group recognizes over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. If the fair value of the modified award is lower than the fair value of the original award immediately before modification, the minimum compensation cost the Group recognizes is the cost of the original award. The Group uses the accelerated method for all awards granted with graded vesting service conditions, and the straight-line method for awards granted with non-graded |
Income Taxes | Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes more-likely-than-not The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related PRC tax law. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of (loss)/ income as income tax expense. In accordance with the provisions of ASC 740, the Group recognizes in its consolidated financial statements the impact of a tax position if a tax return position or future tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The Group’s estimated liability for unrecognized tax benefits which is included in “other non-current |
Government Subsidies | Government subsidies Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Government subsidies of non-operating non-operating |
Other Income, Net | Other income, net The Group’s depositary bank of its American depositary receipt (“ADR”) program may make contributions to the Group provided certain conditions are met. For the years ended December 31, 2017, 2018 and 2019, the Group received nil, RMB10,960 and nil from the depository bank, and recognized as nil, RMB10,960 and nil as (loss)/ income. |
Comprehensive (loss)/income | Comprehensive (loss)/income Comprehensive (loss)/income is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income |
Employee Benefit Expenses | Employee benefit expenses All eligible employees of the Group are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the qualified employees’ salaries. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed. The Group has no further payment obligations once the contributions have been paid. The Group recorded employee benefit expenses of RMB62,934, RMB87,544 and RMB107,747 (US$15,477) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Treasury Shares, At Cost | Treasury shares In November 2018, the Board of Directors approved a share repurchase plan (“2018 repurchase plan”). The Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is initially recorded in the paid-in |
Recent Accounting Pronouncements | Recent accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”) 2016-13 2016-13 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment 2017-04”), In August 2018, FASB issued ASU 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”). 2018-13 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company's Subsidiaries, the VIE and the VIE's Subsidiaries and Schools | As of December 31, 2019, details of the Company’s principal subsidiaries, the VIE and the VIE’s subsidiaries and schools are as follows: Name Date of establishment Place of establishment Percentage of equity interest attributable to the Company Principal activity Subsidiaries of the Company: RISE Education Cayman III Ltd (“Cayman III”) July 29, 2013 Cayman Islands 100% Investment holding RISE Education Cayman I Ltd (“Cayman”) June 19, 2013 Cayman Islands 100% Investment holding Rise IP (Cayman) Limited (“Rise IP”) July 24, 2013 Cayman Islands 100% Educational consulting Edge Franchising Co., Limited (“Edge Franchising”) March 16, 2016 Hong Kong 100% Educational consulting Rise Education International Limited (“Rise HK”) June 24, 2013 Hong Kong 100% Educational consulting Edge Online Co. Limited April 1, 2018 Hong Kong 100% Educational consulting Rise (Tianjin) Education Information Consulting Co., Ltd. (“Rise Tianjin” or “WFOE”) August 12, 2013 PRC 100% Educational consulting, Sale VIE: Beijing Step Ahead Education Technology Development Co., Ltd. January 2, 2008 PRC — Educational consulting VIE’s subsidiaries and school: Beijing Haidian District Step Ahead Training School September 18, 2008 PRC — Language education Name Date of establishment Place of establishment Percentage of equity interest attributable to the Company Principal activity Beijing Shijingshan District Step Ahead Training School July 14, 2009 PRC — Language education Beijing Changping District Step Ahead Training School July 3, 2009 PRC — Language education Beijing Chaoyang District Step Ahead Training School July 20, 2009 PRC — Language education Beijing Xicheng District RISE Immersion Subject English Training School February 5, 2010 PRC — Language education Beijing Dongcheng District RISE Immersion Subject English Training School July 30, 2010 PRC — Language education Beijing Tongzhou District RISE Immersion Subject English Training School April 19, 2011 PRC — Language education Beijing Daxing District RISE Immersion Subject English Training School March 31, 2013 PRC — Language education Beijing Fengtai District RISE Immersion Subject English Training School February 28, 2012 PRC — Language education Beijing RISE Immersion Subject English Training School Co., Ltd. October 26, 2018 PRC — Language education Shanghai Boyu Investment Management Co., Ltd. January 29, 2012 PRC — Language education Shanghai Riverdeep Education Information Consulting Co., Ltd. March 8, 2010 PRC — Educational Shanghai Huangpu District Step Ahead Training School June 17, 2011 PRC — Language education Shanghai Ruiaidisi English Training School Co., Ltd August 5, 2019 PRC — Language education Kunshan Ruiaidisi Education Technology Co., Ltd July 30, 2019 PRC — Language education Guangzhou Ruisi Education Technology Development Co., Ltd. August 17, 2012 PRC — Training services Guangzhou Yuexiu District RISE Immersion Subject English Training School April 29, 2014 PRC — Language education Beijing Step Ahead RISE Education Technology Development Co., Ltd. December 11, 2019 PRC — Language education Guangzhou Haizhu District RISE Immersion Subject English Training School-Chigang December 8, 2014 PRC — Language education Guangzhou Tianhe District RISE Immersion Subject English Training School July 11, 2017 PRC — Language education Guangzhou Liwan District Rise Education Training Center Co., Ltd November 25, 2019 PRC — Language education Guangzhou Tianhe District Ruisi Education Consulting Co., Ltd July 11, 2017 PRC — Language education Shenzhen Mei Ruisi Education Management Co., Ltd. February 28, 2014 PRC — Training services Shenzhen Futian District Rise Training Center January 8, 2015 PRC — Language education Shenzhen Nanshan District Rise Training Center May 26, 2015 PRC — Language education Shenzhen Luohu District Rise Education Training Center August 3, 2017 PRC — Language education Wuxi Rise Foreign Language Training Co., Ltd. June 5, 2013 PRC — Training services Wuxi Ruiying English Training Center Co., Ltd June 10, 2019 PRC — Language education Ruisixing (Tianjin) Travel Services Co., Ltd July 3, 2018 PRC — Traveling services Hebei Camphor Tree Information Technology Co., Ltd. November 5, 2015 PRC — Investment holding Shijiazhuang Forest Rock Education Technology Co., Ltd. August 28, 2018 PRC — Investment holding Shijiazhuang Xinhua District Oriental Red American Education Training School November 14, 2019 PRC — Language education Shijiazhuang Xinhua District Zhuoshuo Training School Co., Ltd December 13, 2019 PRC — Language education Shijiazhuang Yuhua District Ai Ruisi Education Training School February 1, 2019 PRC — Language education Shijiazhuang Yuhua District Oriental Red Education Training School February 1, 2019 PRC — Language education Shijiazhuang Chang’an District Jinshuo Culture Education Training School Co., Ltd April 1, 2019 PRC — Language education The following financial statement balances and amounts of the VIEs were included in the accompanying consolidated financial statements: As at December 31, 2018 2019 2019 RMB RMB US$ Cash and cash equivalents 947,626 742,402 106,639 Restricted cash 13,442 13,705 1,969 Accounts receivable, net 38 852 122 Inventories 1,978 3,455 496 Prepayments and other current assets 59,141 36,983 5,312 Amounts due from the Group’s subsidiaries 18,422 14,916 2,143 Total current assets 1,040,647 812,313 116,681 Property and equipment, net 118,482 127,589 18,327 Intangible assets, net 2,579 19,031 2,734 Long-term investment — 33,000 4,740 Goodwill 146,666 316,334 45,439 Deferred tax assets 6,157 7,567 1,087 Other non-current 51,660 47,945 6,887 Operating lease right-of-use — 575,229 82,626 Total non-current 325,544 1,126,695 161,840 Total assets 1,366,191 1,939,008 278,521 Accounts payable 7,558 6,639 953 Accrued expenses and other liabilities 126,455 155,709 22,366 Deferred revenue and customer advances 970,022 690,273 99,152 Income taxes payable 20,215 7,391 1,062 Amounts due to the Group’s subsidiaries 44,208 119,593 17,178 Current portion of operating lease liabilities — 153,248 22,013 Total current liabilities 1,168,458 1,132,853 162,724 Deferred revenue and customer advances 36,037 35,527 5,103 Deferred tax liabilities — 5,431 780 Operating lease liabilities — 433,874 62,322 Other non-current 3,238 37,995 5,458 Total non-current 39,275 512,827 73,663 Total liabilities 1,207,733 1,645,680 236,387 For the Years ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Revenues 912,166 1,175,618 1,443,373 207,328 Net income 24,771 85,753 74,633 10,720 Net cash generated from/(used in) operating activities 263,813 368,546 (102,228 ) (14,684 ) Net cash used in investing activities (46,630 ) (72,695 ) (102,734 ) (14,757 ) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | Depreciation is calculated on a straight line basis over the following estimated useful lives: Electronic equipment 3 years Furniture 3 - 5 years Vehicles 4 years Leasehold improvements Shorter of the lease term or estimated useful life |
Schedule of Estimated Useful Lives of Intangible Assets | The estimated useful lives of intangible assets from the date of purchase are as follows: Category Estimated Useful Life Courseware license 15 years Franchise agreements 2.5-3 Student base 3-5 Trademarks 10-15 Purchased software 3-5 Licensed copyright Over the shorter of contractual terms Teaching course materials 10 years |
Lease Cost | The components of operating lease costs were as follows: For the year ended RMB US$ Operating Lease Costs: Fixed 193,665 27,818 Short-term 859 123 Total (1) 194,524 27,941 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to operating leases was as follows: For the year ended RMB US$ Cash paid for amounts included in the measurement of lease liabilities: 191,493 27,506 Right-of-use 176,026 25,285 |
Schedule of Future Minimum Rental Payments for Operating Leases | The aggregate future lease payments for operating leases as of December 31, 2019 were as follows: RMB US$ 2020 184,225 26,462 2021 155,028 22,268 2022 133,965 19,243 2023 97,654 14,027 2024 48,468 6,962 Thereafter 85,290 12,251 Total lease payments 704,630 101,213 Less: I mp uted interest 82,415 11,839 Present value of lease liabilities 622,215 89,374 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of November 1, 2017, the date of acquisition: RMB Purchase consideration 25,980 Net assets acquired, excluding intangible assets and the related deferred tax liabilities 2,133 Intangible assets 4,994 Trademark 1,693 Student base 2,962 Franchise agreements 339 Deferred tax liabilities (1,235 ) Deferred revenue and customer advances (10,663 ) Goodwill 30,751 RMB US$ Purchase consideration 44,061 6,329 Net assets acquired, excluding intangible assets and the related deferred tax liabilities (83,813 ) (12,039 ) Intangible assets 15,800 2,270 Student base 15,800 2,270 Deferred tax liabilities (4,742 ) (681 ) Non-controlling (33,866 ) (4,865 ) Goodwill 150,682 21,644 |
Business Acquisition, Pro Forma Information | The pro forma information does not include any impact of transaction synergies and is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been occurred had the acquisition been consummated as of that time or that may result in the future: For the year ended December 31, 2019 pro forma As reported As reported (unaudited) RMB RMB US$ Revenues 1,555,302 1,529,447 219,691 Net income 152,669 148,100 21,273 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Revenue | For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Educational programs (a) 835,065 1,097,619 1,324,654 190,274 Franchise revenues (b) 100,013 125,341 156,509 22,481 Others 34,197 48,928 48,284 6,936 969,275 1,271,888 1,529,447 219,691 (a) To consistent with its management reporting framework, starting from the first quarter of 2019, revenues from educational programs include revenues generated by The Edge, which was previously reported in the Others line item (Note 2). Revenues from educational programs in previous years have been adjusted for consistency and comparability. (b) Initial franchise fees amounted to RMB23,302, RMB19,904 and RMB20,569 (US$2,955), and recurring franchise fees amounted to RMB76,711, RMB105,310 and RMB135,940 (US$19,526) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Schedule of Information about Contract Assets and Liabilities from Contracts with Customers | The following table provides information about contract assets and liabilities from contracts with customers: As at 2018 2019 2019 RMB RMB US$ Cost to obtain contract with customers-current 551 1,091 157 Cost to obtain contract with customers-non 1,274 3,026 435 Contract liabilities-current 959,363 702,737 100,942 Contract liabilities-non 36,037 39,397 5,659 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: As at December 31, 2018 2019 2019 RMB RMB US$ Prepayments to suppliers 27,786 15,799 2,269 Prepaid rental expense 14,701 5,748 826 Staff advances 2,306 1,586 228 Deposits 12,679 18,241 2,620 Prepaid taxes and surcharges 3,930 4,513 648 Current portion of costs to obtain contracts with customers 551 1,091 157 Other receivables 9,584 4,442 638 71,537 51,420 7,386 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Net | As at December 31, 2018 2019 2019 RMB RMB US$ Electronic equipment 50,278 60,737 8,724 Furniture 10,649 11,738 1,686 Vehicles 1,168 1,168 168 Leasehold improvements 237,256 277,042 39,795 299,351 350,685 50,373 Less: accumulated depreciation 170,939 213,345 30,645 Property and equipment, net 128,412 137,340 19,728 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Acquired | The Group’s intangible assets were all acquired and consisted of the following: As at December 31, 2018 2019 2019 RMB RMB US$ Costs: Courseware license 211,433 214,087 30,752 Franchise agreements 61,151 62,158 8,928 Student base 97,239 116,828 16,781 Trademarks 49,705 50,338 7,231 Purchased software 21,309 26,514 3,808 Teaching course materials 14,022 21,115 3,033 Licensed c — 2,840 408 454,859 493,880 70,941 Accumulated amortization: Courseware license (74,002 ) (89,094 ) (12,798 ) Franchise agreements (60,937 ) (61,221 ) (8,794 ) Student base (94,480 ) (99,101 ) (14,235 ) Trademarks (16,984 ) (20,572 ) (2,955 ) Purchased software (6,008 ) (7,644 ) (1,098 ) Teaching course materials (4,391 ) (5,902 ) (847 ) Licensed co — — — (256,802 ) (283,534 ) (40,727 ) Net carrying amount 198,057 210,346 30,214 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Balance as of January 1, 2018 475,732 Goodwill acquired in business combination 884 Impairment losses — Foreign exchange effect 15,353 Balance as of December 31, 2018 491,969 Goodwill acquired in business combination 169,668 Impairment losses — Foreign exchange effect 3,779 Balance as of December 31, 2019 665,416 Balance as of December 31, 2019 (US$) 95,581 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following: As at December 31, 2018 2019 2019 RMB RMB US$ Payroll and welfare payable 80,490 106,429 15,288 Taxes payable 6,778 17,584 2,526 Interest payable 1,605 672 97 Accrued other operating expenses 54,223 24,653 3,541 Accrual for purchase of property and equipment 8,298 10,771 1,547 Payable for acquisition consideration (Note 4) — 18,075 2,596 Others 8,488 24,624 3,538 159,882 202,808 29,133 |
LONG-TERM LOAN (Tables)
LONG-TERM LOAN (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Due for Loan Principal | As of December 31, 2019, the loan principal will be due according to the following schedule: US$ September 12, 2020 19,250 September 12, 2021 24,750 September 12, 2022 30,250 74,250 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
(Loss)/Income Before Income Taxes | (Loss)/income before income taxes consists of: For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ PRC 14,121 189,760 181,457 26,065 Non-PRC (14,797 ) 24,439 33,800 4,855 (676 ) 214,199 215,257 30,920 |
Current and Deferred Portions of Income Tax Benefit/(Expense) | The current and deferred portions of income tax expense included in the consolidated statements of (loss)/income are as follows: For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Current income tax expense (51,773 ) (65,023 ) (64,222 ) (9,225 ) Deferred income tax expense (1,151 ) (6,740 ) (6,475 ) (930 ) Income tax expense (52,924 ) (71,763 ) (70,697 ) (10,155 ) |
Reconciliation of the Income Tax Expense | The reconciliation of the income tax expense for the years ended December 31, 2017, 2018 and 2019 is as follows: For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ (Loss)/ income before income tax (676 ) 214,199 215,257 30,920 Income tax benefit/(expense) computed at the PRC statutory tax rate of 25% 169 (53,550 ) (53,815 ) (7,730 ) Effect of different tax rates in different jurisdictions (8,175 ) 2,291 (2,286 ) (328 ) Effect of preferential tax rates — — 8,444 1,213 Effect of tax rate change — — (4,483 ) (644 ) Non-deductible (26,482 ) (15,069 ) (19,438 ) (2,792 ) Outside basis difference on investment in WFOE (4,446 ) (6,233 ) (9,872 ) (1,418 ) PRC royalty withholding tax (6,950 ) (6,080 ) (1,027 ) (148 ) Changes in valuation allowance (7,040 ) 6,878 11,780 1,692 Income tax expense (52,924 ) (71,763 ) (70,697 ) (10,155 ) The significant components of the Group’s deferred tax assets and liabilities as of December 31, 2018 and 2019 are as follows: |
Deferred Tax Assets and Liabilities | As at 2018 2019 2019 RMB RMB US$ Deferred tax assets: Accrued expenses 6,680 6,182 888 Tax loss carry forward 24,214 17,075 2,453 Revenue recognition 12,749 5,031 723 Others 992 846 122 Less: Valuation allowance (37,311 ) (16,850 ) (2,420 ) 7,324 12,284 1,766 Deferred tax liabilities: Long-lived assets arising from acquisitions 844 7,239 1,040 Outside basis difference on investment in WFOE 13,853 23,725 3,408 Others 455 1,410 204 15,152 32,374 4,652 Presentation in the consolidated balance sheets: Deferred tax assets 6,713 11,026 1,584 Deferred tax liabilities (14,541 ) (31,116 ) (4,470 ) Net deferred tax liabilities (7,828 ) (20,090 ) (2,886 ) |
Unrecognized Tax Benefit | A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: 2018 2019 2019 RMB RMB US$ Balance at January 1, 8,799 7,613 1,094 Additions due to tax positions taken and business combination during the current year 2,636 26,662 3,830 Reversal based on tax positions related to prior years (171 ) (4,721 ) (679 ) Settlement (3,463 ) — — Foreign currency translation adjustments (188 ) — — Balance at December 31, 7,613 29,554 4,245 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | b) During the years ended December 31, 2017, 2018 and 2019, the Group had the following related party transactions : For the year ended December 31, Notes 2017 2018 2019 2019 RMB RMB RMB US$ Loan to a related party: Lionbridge (i) 150,000 150,000 100,000 14,364 Services received from a related party : Bain Advisors (ii) 38,537 — — — (i) The Group entered into certain entrustment loan agreements with Lionbridge, pursuant to which the Group granted total loans of RMB150,000, RMB150,000 and RMB100,000 (US$14,364) to Lionbridge during the years ended December 31, 2017, 2018 and 2019, respectively, with details set forth below: Year ended December 31, 2017 Loan granted Principal Interest Rate Period Loan 1 100,000 7 % February 24, 2017 to November 30, 2017 Loan 2 50,000 7 % March 20, 2017 to November 30, 2017 Year ended December 31, 2018 Loan granted Principal Interest Rate Period Loan 1 150,000 7 % March 1, 2018 to November 30, 2018 Year ended December 31, 201 9 Loan granted Principal Interest Rate Period Loan 1 100,000 7.2 % May 30, 2019 to November 30, 2019 As of December 31, 2018 and 2019, respectively, the above loans were fully repaid. Interest income of RMB7,457, RMB7,539 and RMB3,509 (US$504) from the above loans were recorded as interest income during the years ended December 31, 2017, 2018 and 2019, respectively. (ii) During the years ended December 31, 2017, 2018 and 2019, the Group accrued consulting Bain Advisors, an affiliate of the Group’s majority shareholder, which included a lump sum consulting termination fee of RMB33,887 to Bain Advisors as a result of the IPO for the year ended December 31, 2017. (iii) On November 1, 2017, the Group acquired Edge Business from a seller in which a managing director of Bain Capital is a director and minority shareholder. |
Due From Related Parties | c) The balances between the Group and its related parties as of December 31, 2018 and 2019 are listed below: Amounts due from a related party As at December 31, 2018 2019 2019 RMB RMB US$ Bain Capital Education IV 190 191 27 |
(LOSS)_INCOME PER SHARE (Tables
(LOSS)/INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted (Loss)\Income Per Share | Basic and diluted (loss)/income per share and per ADS for each of the years presented are calculated as follows: For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Numerator: Net (loss)/income attributable to RISE Education Cayman Ltd—basic and diluted (47,974 ) 142,958 148,100 21,273 Denominator: Weighted average number of ordinary shares outstanding-basic 101,890,411 113,812,182 114,905,223 114,905,223 Weighted average number of ordinary shares outstanding- diluted 101,890,411 115,881,867 116,181,610 116,181,610 Basic (loss)/income per share (0.47 ) 1.26 1.29 0.19 Diluted (loss)/income per share (0.47 ) 1.23 1.27 0.18 Basic (loss)/income per ADS (0.94 ) 2.51 2.58 0.37 Diluted (loss)/income per ADS (0.94 ) 2.47 2.55 0.37 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the Equity Award Activity Under 2016 Equity Incentive Plan | A summary of the equity award activity under 2016 Equity Incentive Plan is stated below: Number of options Weighted - average exercise price Weighted - Average grant date fair value Weighted - average remaining contractual term Aggregate intrinsic Value US$ Years US$ Outstanding, December 31, 2018 2,299,103 1.44 N/A 6.13 5,840 Granted 308,000 1.44 3.50 Exercised (468,384 ) 1.44 N/A Forfeited/Cancelled (71,000 ) 1.44 2.02 Outstanding, December 31, 2019 2,067,719 1.44 N/A 5.52 4,260 Vested and expected to vest at December 31, 2019 2,067,719 1.44 N/A 5.52 4,260 Exercisable at December 31, 2019 2,002,719 1.44 N/A 5.43 4,126 A summary of the equity award activity under 2017 Equity Incentive Plan is stated below: Number of options Weighted - average exercise price Weighted - Average grant date fair value Weighted - average remaining contractual term US$ Years Outstanding, December 31, 2018 — Granted 4,800,000 4.25 2.63 10 Exercised — Forfeited/Cancelled (200,000 ) 4.25 2.63 — Outstanding, December 31, 2019 4,600,000 4.25 NA 9.26 Vested and expected to vest at December 31, 2019 4,600,000 4.25 NA 9.26 Exercisable at December 31, 2019 690,000 4.25 NA 9.26 |
Assumptions Used to Estimate the Fair Value of 2016 Equity Incentive Plan | The assumptions used to estimate the fair value of 2016 Equity Incentive Plan granted or modified are as follows: For the years ended December 31, 2017 2018 2019 Risk-free interest rate 2.39%-2.93% 3.51%-3.82% 2.41%-3.34% Expected volatility range 47.5%-49.3% 49.9%-53.6% 53.7%-55.2% Suboptimal exercise factor 2.8 2.8 2.8 Fair value per ordinary share as at valuation date US$ US $ U 4.11-$5.37 The assumptions used to estimate the fair value of 2017 Equity Incentive Plan granted are as follows: For the year ended December 31, 2019 Risk-free interest rate 3.29 % Expected volatility range 54.8 % Suboptimal exercise factor 2.8 Fair value per ordinary share as at valuation date $ 4.94 |
Total Cost of Share-based Payments | Total cost of share-based payments are summarized as follows: For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Cost of revenues 17,063 1,315 2,617 376 Selling and marketing expenses 9,045 4,229 1,016 146 General and administrative expenses 69,199 14,808 44,256 6,357 Total 95,307 20,352 47,889 6,879 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Capital Commitments Under Non-Cancellable Construction Contracts | As of December 31, 2019, future minimum capital commitments under non-cancelable RMB US$ Construction of leasehold improvements 9,010 1,294 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Foreign currency translation adjustments RMB Balance as of January 1, 2017 50,464 Foreign currency translation adjustments, net of tax of nil (10,424 ) Balance as of December 31, 2017 40,040 Foreign currency translation adjustments, net of tax of nil 2,419 Balance as of December 31, 2018 42,459 Foreign currency translation adjustments, net of tax of nil (1,542 ) Balance as of December 31, 2019 40,917 US$ Balance as of December 31, 2019 5,877 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheets As at December 31, 2018 2019 2019 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 13,774 13,979 2,008 Due from subsidiaries of the Group 47,096 52,910 7,600 Prepayments and other current assets 8,682 8,648 1,242 Total current assets 69,552 75,537 10,850 Non-current Investment in subsidiaries 436,925 636,322 91,402 Total non-current 436,925 636,322 91,402 Total assets 506,477 711,859 102,252 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accrued expenses and other liabilities 3,367 3,714 534 Amount due to a subsidiary of the Group 47,355 99,249 14,256 Total current liabilities 50,722 102,963 14,790 Total liabilities 50,722 102,963 14,790 Shareholders’ equity: Ordinary shares (US$0.01 par value; 200,000,000 and 200,000,000 shares authorized, 113,779,244 and 112,755,320 shares issued and outstanding as of December 31, 2018 and 2019, respectively) 7,074 6,946 998 Additional paid-in 600,011 583,262 83,780 Treasury shares, at cost (23,460 ) — — Accumulated deficit (170,329 ) (22,229 ) (3,193 ) Accumulated other comprehensive income 42,459 40,917 5,877 Total shareholders’ equity 455,755 608,896 87,462 Total liabilities and shareholders’ equity 506,477 711,859 102,252 |
Condensed Statement of Comprehensive Income/(Loss) | Condensed Statements of Comprehensive (Loss)/Income For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ General and administrative expenses — (8,400 ) (5,600 ) (804 ) Operating loss — (8,400 ) (5,600 ) (804 ) Equity in (loss)/profit of subsidiaries and the VIEs (54,676 ) 138,698 153,668 22,072 Interest income 6,702 22 32 5 Others, net — 12,638 — — (Loss)/income before income tax expense (47,974 ) 142,958 148,100 21,273 Income tax expense — — — — Net (loss)/income (47,974 ) 142,958 148,100 21,273 Other comprehensive (loss)/income, net of tax of nil Foreign currency translation adjustments (10,424 ) 2,419 (1,542 ) (221 ) Other comprehensive (loss)/income (10,424 ) 2,419 (1,542 ) (221 ) Comprehensive (loss)/income (58,398 ) 145,377 146,558 21,052 |
Statements of Cash Flows | Statements of Cash Flows For the year ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net cash generated from investing activities 571,808 13,774 32 5 Net cash used in financing activities (571,808 ) — — — Effect of exchange rate changes — — 173 — Net increase in cash, cash equivalents and restricted cash — 13,774 205 5 Cash, cash equivalents and restricted cash at beginning of year — — 13,774 2,003 Cash, cash equivalents and restricted cash at end of year — 13,774 13,979 2,008 |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Textual) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 10,000,000 | ||
American Depositary Shares [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 5,000,000 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Percentage Of Entity Revenue | 94.00% | 92.00% | 94.00% |
ORGANIZATION AND BASIS OF PRE_4
ORGANIZATION AND BASIS OF PRESENTATION (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Nov. 01, 2017 | |
Beijing Step Ahead Education Technology Development Co., Ltd. [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Date of establishment Of Subsidiary | Jan. 2, 2008 | |
Place of establishment Of Subsidiary | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Minority Interest Principal Activity | Educational consulting | |
Beijing Haidian District Step Ahead Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Date of establishment Of Subsidiary | Sep. 18, 2008 | |
Place of establishment Of Subsidiary | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Minority Interest Principal Activity | Language education | |
Beijing Shijingshan District Step Ahead Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jul. 14, 2009 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Beijing Changping District Step Ahead Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jul. 3, 2009 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Beijing Chaoyang District Step Ahead Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jul. 20, 2009 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Beijing Xicheng District RISE Immersion Subject English Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Feb. 5, 2010 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Beijing Dongcheng District RISE Immersion Subject English Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jul. 30, 2010 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Beijing Tongzhou District RISE Immersion Subject English Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Apr. 19, 2011 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Beijing Daxing District RISE Immersion Subject English Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Mar. 31, 2013 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Beijing Fengtai District RISE Immersion Subject English Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Feb. 28, 2012 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Beijing Rise Immersion Subject English Training School Co Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Oct. 26, 2018 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Shanghai Boyu Investment Management Co., Ltd. [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jan. 29, 2012 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Shanghai Riverdeep Education Information Consulting Co., Ltd. [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Mar. 8, 2010 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Educational consulting services | |
Shanghai Huangpu District Step Ahead Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jun. 17, 2011 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Shanghai Ruiaidisi English Training School Co., Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Aug. 5, 2019 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Kunshan Ruiaidisi Education Technology Co., Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jul. 30, 2019 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Guangzhou Ruisi Education Technology Development Co., Ltd. [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Aug. 17, 2012 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Training services | |
Guangzhou Yuexiu District RISE Immersion Subject English Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Apr. 29, 2014 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Beijing Step Ahead RISE Education Technology Development Co Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Dec. 11, 2019 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Guangzhou Haizhu District RISE Immersion Subject English Training School-Chigang [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Dec. 8, 2014 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Guangzhou Tianhe District RISE Immersion Subject English Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jul. 11, 2017 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Guangzhou Liwan District Rise Education Training Center Co., Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Nov. 25, 2019 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Guangzhou Tianhe District Ruisi Education Consulting Co.,Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jul. 11, 2017 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Shenzhen Mei Ruisi Education Management Co., Ltd. [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Feb. 28, 2014 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Training services | |
Shenzhen Futian District Rise Training Center [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jan. 8, 2015 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Shenzhen Nanshan District Rise Training Center [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | May 26, 2015 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Shenzhen Luohu District Rise Education Training Center [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Aug. 3, 2017 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Wuxi Rise Foreign Language Training Co., Ltd. [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jun. 5, 2013 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Training services | |
Wuxi Ruiying English Training Center Co., Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jun. 10, 2019 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Ruisixing (Tianjin) Travel Services Co., Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Jul. 3, 2018 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Traveling services | |
Hebei Camphor Tree Information Technology Co., Ltd. [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Nov. 5, 2015 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Investment holding | |
Shijiazhuang Forest Rock Education Technology Co., Ltd. [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Aug. 28, 2018 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Investment holding | |
Shijiazhuang Xinhua District Oriental Red American Education Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Nov. 14, 2019 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Shijiazhuang Xinhua District Zhuoshuo Training School Co., Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Dec. 13, 2019 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Shijiazhuang Yuhua District Ai Ruisi Education Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Feb. 1, 2019 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Shijiazhuang Yuhua District Oriental Red Education Training School [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Feb. 1, 2019 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
Shijiazhuang Chang'an District Jinshuo Culture Education Training School Co., Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Apr. 1, 2019 | |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% | |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education | |
RISE Education Cayman III Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Date of establishment Of Subsidiary | Jul. 29, 2013 | |
Place of establishment Of Subsidiary | Cayman Islands | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Minority Interest Principal Activity | Investment holding | |
RISE Education Cayman I Ltd [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Date of establishment Of Subsidiary | Jun. 19, 2013 | |
Place of establishment Of Subsidiary | Cayman Islands | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Minority Interest Principal Activity | Investment holding | |
Rise IP Cayman Limited [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Date of establishment Of Subsidiary | Jul. 24, 2013 | |
Place of establishment Of Subsidiary | Cayman Islands | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Minority Interest Principal Activity | Educational consulting | |
Edge Franchising Co Limited Edge Franchising [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Date of establishment Of Subsidiary | Mar. 16, 2016 | |
Place of establishment Of Subsidiary | Hong Kong | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% |
Minority Interest Principal Activity | Educational consulting | |
Rise Education International Limited [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Date of establishment Of Subsidiary | Jun. 24, 2013 | |
Place of establishment Of Subsidiary | Hong Kong | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Minority Interest Principal Activity | Educational consulting | |
Edge Online Co Limited [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Date of establishment Of Subsidiary | Apr. 1, 2018 | |
Place of establishment Of Subsidiary | Hong Kong | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Minority Interest Principal Activity | Educational consulting | |
Rise (Tianjin) Education Information Consulting Co., Ltd. [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Date of establishment Of Subsidiary | Aug. 12, 2013 | |
Place of establishment Of Subsidiary | PRC | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Minority Interest Principal Activity | Educational consulting, Sale of course materials, study tour service |
ORGANIZATION AND BASIS OF PRE_5
ORGANIZATION AND BASIS OF PRESENTATION 1 (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | ¥ 1,084,866 | ¥ 1,402,270 | $ 155,832 | ||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 1,717,089 | 878,504 | 246,644 | ||
Total assets | 2,801,955 | 2,280,774 | 402,476 | ||
Variable Interest Entity, Consolidated, Liabilities, Current | 1,233,518 | 1,278,872 | 177,184 | ||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 944,136 | 561,068 | 135,616 | ||
Total liabilities | 2,177,654 | 1,839,940 | 312,800 | ||
Revenues | 1,529,447 | $ 219,691 | 1,271,888 | ¥ 969,275 | |
Net income | 148,100 | 21,273 | 142,958 | (47,974) | |
Net cash generated from/(used in) operating activities | (39,854) | (5,725) | 380,034 | 350,100 | |
Net cash used in investing activities | (114,716) | (16,478) | (100,875) | (53,067) | |
Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 812,313 | 1,040,647 | 116,681 | ||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 1,126,695 | 325,544 | 161,840 | ||
Total assets | 1,939,008 | 1,366,191 | 278,521 | ||
Variable Interest Entity, Consolidated, Liabilities, Current | 1,132,853 | 1,168,458 | 162,724 | ||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 512,827 | 39,275 | 73,663 | ||
Total liabilities | 1,645,680 | 1,207,733 | 236,387 | ||
Revenues | 1,443,373 | 207,328 | 1,175,618 | 912,166 | |
Net income | 74,633 | 10,720 | 85,753 | 24,771 | |
Net cash generated from/(used in) operating activities | (102,228) | (14,684) | 368,546 | 263,813 | |
Net cash used in investing activities | (102,734) | $ (14,757) | (72,695) | ¥ (46,630) | |
Cash and cash equivalents | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 742,402 | 947,626 | 106,639 | ||
Restricted cash | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 13,705 | 13,442 | 1,969 | ||
Inventories | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 3,455 | 1,978 | 496 | ||
Accounts receivable, net | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 852 | 38 | 122 | ||
Prepayments and other current assets | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 36,983 | 59,141 | 5,312 | ||
Amounts due from the Group's subsidiaries | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 14,916 | 18,422 | 2,143 | ||
Property and equipment, net | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 127,589 | 118,482 | 18,327 | ||
Intangible assets, net | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 19,031 | 2,579 | 2,734 | ||
Long-term investment | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 33,000 | 4,740 | |||
Goodwill | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 316,334 | 146,666 | 45,439 | ||
Deferred tax assets | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 7,567 | 6,157 | 1,087 | ||
Operating lease right-of-use assets | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 575,229 | 82,626 | |||
Other non current assets | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 47,945 | 51,660 | 6,887 | ||
Accounts payable | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 6,639 | 7,558 | 953 | ||
Accrued expenses and other liabilities | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 155,709 | 126,455 | 22,366 | ||
Current portion of operating lease liabilities | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 153,248 | 22,013 | |||
Deferred revenue and customer advances | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 690,273 | 970,022 | 99,152 | ||
Income taxes payable | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 7,391 | 20,215 | 1,062 | ||
Amounts due to the Group's subsidiaries | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 119,593 | 44,208 | 17,178 | ||
Deferred revenue and customer advances | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 35,527 | 36,037 | 5,103 | ||
Operating lease liabilities | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 433,874 | 62,322 | |||
Other non current liabilities | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 37,995 | ¥ 3,238 | 5,458 | ||
Deferred tax liabilities | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | ¥ 5,431 | $ 780 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Textual) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Jan. 01, 2019CNY (¥) | |
Foreign Currency Exchange Rate, Translation | 6.9618 | 6.9618 | ||||
Advertising Expense | ¥ 177,378 | $ 25,479 | ¥ 136,323 | ¥ 80,475 | ||
Employee Benefits and Share-based Compensation | 107,747 | 15,477 | 87,544 | 62,934 | ||
Lease right-of-use assets | 610,323 | $ 87,667 | ¥ 601,610 | |||
Lease liabilities | 622,215 | 89,374 | ¥ 610,500 | |||
Equity investment measured at fair value | 33,000 | 4,740 | ||||
Equity investment measured at fair value, realized gain (loss) | 0 | |||||
Current portion of operating lease liabilities | ¥ 157,911 | $ 22,682 | ||||
Other Nonoperating Income (Expense) [Member] | ||||||
Amount received from depository bank | $ 0 | ¥ 10,960 | ¥ 0 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment, Useful Life | 4 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the lease term or estimated useful life |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES 1 (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Computer Software, Intangible Asset [Member] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Licensed Copyright [Member] | |
Finite-Lived Intangible Asset, Useful Life | Over the shorter of contractual terms or estimated useful lives of the assets |
Teaching Course Materials [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Maximum [Member] | Franchise Rights [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Maximum [Member] | Student Base [Member] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Maximum [Member] | Trademarks [Member] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Maximum [Member] | Acquired Software [Member] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Minimum [Member] | Franchise Rights [Member] | |
Finite-Lived Intangible Asset, Useful Life | 2 years 6 months |
Minimum [Member] | Student Base [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Minimum [Member] | Trademarks [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Minimum [Member] | Acquired Software [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES 2 (Detail) - 12 months ended Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Operating Lease Cost [Abstract] | ||
Fixed | ¥ 193,665 | $ 27,818 |
Short-term | 859 | 123 |
Total | ¥ 194,524 | $ 27,941 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES 3 (Detail) - 12 months ended Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Accounting Policies [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | ¥ 191,493 | $ 27,506 |
Right-of-use assets obtained in exchange for lease obligations: | ¥ 176,026 | $ 25,285 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES 4 (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Jan. 01, 2019CNY (¥) |
Accounting Policies [Abstract] | |||
2020 | ¥ 184,225 | $ 26,462 | |
2021 | 155,028 | 22,268 | |
2022 | 133,965 | 19,243 | |
2023 | 97,654 | 14,027 | |
2024 | 48,468 | 6,962 | |
Thereafter | 85,290 | 12,251 | |
Total lease payments | 704,630 | 101,213 | |
Less: Interest | 82,415 | 11,839 | |
Present value of lease liabilities | ¥ 622,215 | $ 89,374 | ¥ 610,500 |
CONCENTRATION OF RISKS (Textual
CONCENTRATION OF RISKS (Textual) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016CNY (¥) | |
Debt Instrument, Interest Rate, Increase (Decrease) | 1.00% | 1.00% | |||||
Increase (Decrease) in Interest Payable, Net | ¥ 5,173 | $ 743 | |||||
Foreign Currency Exchange Appreciation(Depreciation) Rate | 1.30% | 1.30% | 5.70% | (6.70%) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ¥ 1,022,825 | ¥ 1,316,785 | ¥ 1,084,895 | $ 146,920 | $ 189,145 | ¥ 656,688 | |
China, Yuan Renminbi | |||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ¥ 970,936 | $ 139,466 |
BUSINESS COMBINATION (Textual)
BUSINESS COMBINATION (Textual) (Detail) ¥ in Thousands, $ in Thousands | Nov. 01, 2017CNY (¥)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Nov. 01, 2019CNY (¥) | Nov. 01, 2019USD ($) | Jul. 01, 2019CNY (¥) | Jul. 01, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Business Combination, Consideration Transferred, Liabilities Incurred | ¥ 44,061 | $ 6,329 | ||||||||
Acquisition of Goodwill | ¥ 665,416 | $ 95,581 | ¥ 491,969 | ¥ 475,732 | ||||||
Edge Learning Centers [Member] | ||||||||||
Percentage of Ownership | 100.00% | |||||||||
Business Combination, Consideration Transferred, Liabilities Incurred | ¥ 16,769 | |||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 216,021 | |||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | ¥ 9,211 | |||||||||
Business Combination, Goodwill Recognized, Description | Included in the goodwill of RMB30,261 recognized on the acquisition date is the expected synergies from combining operations of the Acquiree and the Group which does not qualify for separate recognition. None of the goodwill recognized is expected to be deductible for income tax purposes. | Included in the goodwill of RMB30,261 recognized on the acquisition date is the expected synergies from combining operations of the Acquiree and the Group which does not qualify for separate recognition. None of the goodwill recognized is expected to be deductible for income tax purposes. | ||||||||
Business Acquisition, Transaction Costs | 889 | |||||||||
Acquisition of Goodwill | ¥ 30,751 | |||||||||
Shijiazhuang [Member] | ||||||||||
Percentage of Ownership | 51.00% | 51.00% | ||||||||
Business Combination, Goodwill Recognized, Description | Goodwill recognized on the acquisition date is the expected synergies from combining operations of Shijiazhuang and the Group, which does not qualify for separate recognition. None of the goodwill recognized is expected to be deductible for income tax purposes. | Goodwill recognized on the acquisition date is the expected synergies from combining operations of Shijiazhuang and the Group, which does not qualify for separate recognition. None of the goodwill recognized is expected to be deductible for income tax purposes. | ||||||||
Business Acquisition, Transaction Costs | ¥ 83 | $ 12 | ¥ 464 | |||||||
Acquisition of Goodwill | ¥ 150,682 | $ 21,644 | ||||||||
Outstanding cash Consideration | 9,606 | $ 1,380 | ||||||||
Changping [Member] | ||||||||||
Business Combination, Consideration Transferred, Liabilities Incurred | 12,669 | 1,820 | ||||||||
Acquisition of Intangible Assets | ¥ 4,500 | $ 646 | ||||||||
Acquisition of Goodwill | ¥ 18,986 | $ 2,727 | ||||||||
Outstanding cash Consideration | ¥ 8,469 | $ 1,216 |
BUSINESS COMBINATION (Detail)
BUSINESS COMBINATION (Detail) ¥ in Thousands, $ in Thousands | Jul. 01, 2019CNY (¥) | Jul. 01, 2019USD ($) | Nov. 01, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Jul. 01, 2019USD ($) |
Goodwill | ¥ 665,416 | ¥ 491,969 | ¥ 475,732 | $ 95,581 | |||||
Revenue | 1,555,302 | ||||||||
Revenues | 1,529,447 | $ 219,691 | 1,271,888 | 969,275 | |||||
Net income | 152,669 | ||||||||
Net income | ¥ 148,100 | $ 21,273 | ¥ 142,958 | ¥ (47,974) | |||||
Edge Learning Centers [Member] | |||||||||
Purchase consideration | ¥ 25,980 | ||||||||
Net assets acquired, excluding intangible assets and the related deferred tax liabilities | 2,133 | ||||||||
Intangible assets | 4,994 | ||||||||
Trademark | 1,693 | ||||||||
Student base | 2,962 | ||||||||
Franchise agreements | 339 | ||||||||
Deferred tax liabilities | (1,235) | ||||||||
Deferred revenue and customer advances | (10,663) | ||||||||
Goodwill | ¥ 30,751 | ||||||||
Shijiazhuang [Member] | |||||||||
Purchase consideration | ¥ 44,061 | $ 6,329 | |||||||
Net assets acquired, excluding intangible assets and the related deferred tax liabilities | (83,813) | $ (12,039) | |||||||
Intangible assets | 15,800 | 2,270 | |||||||
Student base | 15,800 | 2,270 | |||||||
Deferred tax liabilities | (4,742) | (681) | |||||||
Non-controlling interest | (33,866) | (4,865) | |||||||
Goodwill | ¥ 150,682 | $ 21,644 |
REVENUES (Detail)
REVENUES (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Revenue [Abstract] | |||||
Revenues | ¥ 1,529,447 | $ 219,691 | ¥ 1,271,888 | ¥ 969,275 | |
Educational Programs [Member] | |||||
Revenue [Abstract] | |||||
Revenues | [1] | 1,324,654 | 190,274 | 1,097,619 | 835,065 |
Franchise revenues [Member] | |||||
Revenue [Abstract] | |||||
Revenues | [2] | 156,509 | 22,481 | 125,341 | 100,013 |
Other [Member] | |||||
Revenue [Abstract] | |||||
Revenues | ¥ 48,284 | $ 6,936 | ¥ 48,928 | ¥ 34,197 | |
[1] | To consistent with its management reporting framework, starting from the first quarter of 2019, revenues from educational programs include revenues generated by The Edge, which was previously reported in the Others line item (Note 2). Revenues from educational programs in previous years have been adjusted for consistency and comparability. | ||||
[2] | Initial franchise fees amounted to RMB23,302, RMB19,904 and RMB20,569 (US$2,955), and recurring franchise fees amounted to RMB76,711, RMB105,310 and RMB135,940 (US$19,526) for the years ended December 31, 2017, 2018 and 2019, respectively. |
REVENUES (Parenthetical) (Detai
REVENUES (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Initial Franchise Fees [Member] | ||||
Revenues | ¥ 20,569 | $ 2,955 | ¥ 19,904 | ¥ 23,302 |
Recurring Franchise Fees [Member] | ||||
Revenues | ¥ 135,940 | $ 19,526 | ¥ 105,310 | ¥ 76,711 |
REVENUES 1 (Detail)
REVENUES 1 (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Revenue from Contract with Customer [Abstract] | |||
Cost to obtain contract with customers-current | ¥ 1,091 | $ 157 | ¥ 551 |
Cost to obtain contract with customers-non current | 3,026 | 435 | 1,274 |
Contract liabilities-current | 702,737 | 100,942 | 959,363 |
Contract liabilities-noncurrent | ¥ 39,397 | $ 5,659 | ¥ 36,037 |
REVENUES (Textual) (Detail)
REVENUES (Textual) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | |
Revenue From Contract With Customer [Line Items] | ||
Contract liabilities recognized revenue | ¥ 947,077 | $ 136,039 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue From Contract With Customer [Line Items] | ||
Remaining performance obligations recognized period | 1 year | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue From Contract With Customer [Line Items] | ||
Remaining performance obligations recognized period | 5 years | 5 years |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepayments to suppliers | ¥ 15,799 | $ 2,269 | ¥ 27,786 |
Prepaid rental expense | 5,748 | 826 | 14,701 |
Staff advances | 1,586 | 228 | 2,306 |
Deposits | 18,241 | 2,620 | 12,679 |
Prepaid taxes and surcharges | 4,513 | 648 | 3,930 |
Current portion of costs to obtain contracts with customers | 1,091 | 157 | 551 |
Other receivables | 4,442 | 638 | 9,584 |
Prepaid Expense and Other Assets, Current | ¥ 51,420 | $ 7,386 | ¥ 71,537 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | ¥ 350,685 | $ 50,373 | ¥ 299,351 |
Less: accumulated depreciation | 213,345 | 30,645 | 170,939 |
Property and equipment, net | 137,340 | 19,728 | 128,412 |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 60,737 | 8,724 | 50,278 |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 11,738 | 1,686 | 10,649 |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,168 | 168 | 1,168 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | ¥ 277,042 | $ 39,795 | ¥ 237,256 |
PROPERTY AND EQUIPMENT, NET (Te
PROPERTY AND EQUIPMENT, NET (Textual) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | ¥ 45,375 | $ 6,518 | ¥ 36,026 | ¥ 29,246 |
INTANGIBLE ASSETS, NET (Detail)
INTANGIBLE ASSETS, NET (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Finite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | ¥ 493,880 | $ 70,941 | ¥ 454,859 |
Finite-Lived Intangible Assets, Accumulated Amortization | (283,534) | (40,727) | (256,802) |
Net carrying amount | 210,346 | 30,214 | 198,057 |
Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 214,087 | 30,752 | 211,433 |
Finite-Lived Intangible Assets, Accumulated Amortization | (89,094) | (12,798) | (74,002) |
Franchise Rights [Member] | |||
Finite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 62,158 | 8,928 | 61,151 |
Finite-Lived Intangible Assets, Accumulated Amortization | (61,221) | (8,794) | (60,937) |
Student Base [Member] | |||
Finite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 116,828 | 16,781 | 97,239 |
Finite-Lived Intangible Assets, Accumulated Amortization | (99,101) | (14,235) | (94,480) |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 50,338 | 7,231 | 49,705 |
Finite-Lived Intangible Assets, Accumulated Amortization | (20,572) | (2,955) | (16,984) |
Acquired Software [Member] | |||
Finite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 26,514 | 3,808 | 21,309 |
Finite-Lived Intangible Assets, Accumulated Amortization | (7,644) | (1,098) | (6,008) |
Teaching Course Materials [Member] | |||
Finite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 21,115 | 3,033 | 14,022 |
Finite-Lived Intangible Assets, Accumulated Amortization | (5,902) | (847) | ¥ (4,391) |
Licensed Copyright [Member] | |||
Finite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 2,840 | $ 408 | |
Finite-Lived Intangible Assets, Accumulated Amortization |
INTANGIBLE ASSETS, NET (Textual
INTANGIBLE ASSETS, NET (Textual) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | ¥ 24,646 | $ 3,540 | ¥ 22,199 | ¥ 20,465 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 29,068 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 27,959 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 25,094 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 23,400 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | ¥ 21,132 |
GOODWILL (Detail)
GOODWILL (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Beginning Balance | ¥ 491,969 | ¥ 475,732 | |
Goodwill acquired in business combination | 169,668 | 884 | |
Impairment losses | 0 | 0 | |
Foreign exchange effect | 3,779 | 15,353 | |
Ending Balance | ¥ 665,416 | $ 95,581 | ¥ 491,969 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Payables and Accruals [Abstract] | |||
Payroll and welfare payable | ¥ 106,429 | $ 15,288 | ¥ 80,490 |
Taxes payable | 17,584 | 2,526 | 6,778 |
Interest payable | 672 | 97 | 1,605 |
Accrued other operating expenses | 24,653 | 3,541 | 54,223 |
Accrual for purchase of property and equipment | 10,771 | 1,547 | 8,298 |
Payable for acquisition consideration (Note 4) | 18,075 | 2,596 | |
Others | 24,624 | 3,538 | 8,488 |
Accounts Payable and Accrued Liabilities, Current | ¥ 202,808 | $ 29,133 | ¥ 159,882 |
LONG-TERM LOAN (Textual) (Detai
LONG-TERM LOAN (Textual) (Detail) ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||
Sep. 30, 2017USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||||||
Long-term Debt | $ 35,750 | $ 22,000 | $ 10,000 | |||
Debt Instrument, Collateral Amount | ¥ 10,108 | $ 1,452 | ||||
Loan Facility Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 55,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | 3.90% | ||||
Debt Issuance Costs, Net | $ 4,708 | |||||
Amendment Facility Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 110,000 | |||||
Debt Instrument, Term | 5 years | |||||
Amendment Facility Agreement [Member] | Minimum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | ||||
Amendment Facility Agreement [Member] | Maximum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% |
LONG-TERM LOAN (Detail)
LONG-TERM LOAN (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
September 12, 2020 | $ 19,250 |
September 12, 2021 | 24,750 |
September 12, 2022 | 30,250 |
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 74,250 |
INCOME TAXES (Textual) (Detail)
INCOME TAXES (Textual) (Detail) ¥ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019HKD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Preferential Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Available for HNTE | 15.00% | 15.00% | 15.00% | ||||
Effective Period of HNTE Certificate | 3 years | 3 years | 3 years | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | ||||
Disposition Of Assets Tax Percentage | 10.00% | 10.00% | 10.00% | ||||
Undistributed Earnings (Loss) Available to Common Shareholders, Basic | ¥ 488,462 | $ 70,163 | |||||
Remaining Balance Of Undistributed Earnings Available To Commonshareholders | 237,252 | 34,079 | |||||
Deferred Tax Assets, Operating Loss Carryforwards | 69,861 | ¥ 97,192 | $ 10,035 | ||||
Unrecognized tax benefits | 29,554 | 7,613 | ¥ 8,799 | 4,245 | $ 1,094 | ||
Deferred tax assets tax credit carryforwards alternative minimum tax | 0 | 1,389 | |||||
Deferred tax assets tax credit carryforwards other | 29,554 | 6,224 | $ 4,245 | ||||
Unrecognized tax benefits decrease resulting from settlements with taxing authorities | 3,463 | ||||||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 9,123 | 1,310 | 259 | 734 | |||
Unrecognized Tax Benefits, Income Tax Penalties Expense | 0 | 1,161 | ¥ 0 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 11,703 | 1,681 | ¥ 2,580 | ||||
The Group [Member] | |||||||
Unrecognized tax benefits decrease resulting from settlements with taxing authorities | ¥ 2,101 | $ 302 | |||||
HONG KONG [Member] | |||||||
Profit eligible for half income tax rate | $ | $ 2,000 | ||||||
HONG KONG [Member] | Corporation Business [Member] | |||||||
Effective Income Tax Rate Reconciliation, current imposed rate percent | 16.50% | 16.50% | 16.50% | ||||
Half reduced income tax rate percentage | 8.25% | 8.25% | 8.25% | ||||
Minimum [Member] | PRC [Member] | |||||||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | ||||
Maximum [Member] | PRC [Member] | |||||||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2024 | Dec. 31, 2024 | Dec. 31, 2024 |
INCOME TAXES (Detail)
INCOME TAXES (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
PRC | ¥ 181,457 | $ 26,065 | ¥ 189,760 | ¥ 14,121 |
Non-PRC | 33,800 | 4,855 | 24,439 | (14,797) |
Loss)/income before income tax expense | ¥ 215,257 | $ 30,920 | ¥ 214,199 | ¥ (676) |
INCOME TAXES 1 (Detail)
INCOME TAXES 1 (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | ¥ (64,222) | $ (9,225) | ¥ (65,023) | ¥ (51,773) |
Deferred income tax expense | (6,475) | (930) | (6,740) | (1,151) |
Income tax expense | ¥ (70,697) | $ (10,155) | ¥ (71,763) | ¥ (52,924) |
INCOME TAXES 2 (Detail)
INCOME TAXES 2 (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
(Loss)/ income before income tax | ¥ 215,257 | $ 30,920 | ¥ 214,199 | ¥ (676) |
Income tax benefit/(expense) computed at the PRC statutory tax rate of 25% | (53,815) | (7,730) | (53,550) | 169 |
Effect of different tax rates in different jurisdictions | (2,286) | (328) | 2,291 | (8,175) |
Effect of preferential tax rates | 8,444 | 1,213 | ||
Effect of tax rate change | (4,483) | (644) | ||
Non-deductible expenses and others | (19,438) | (2,792) | (15,069) | (26,482) |
Outside basis difference on investment in WFOE | (9,872) | (1,418) | (6,233) | (4,446) |
PRC royalty withholding tax | (1,027) | (148) | (6,080) | (6,950) |
Changes in valuation allowance | 11,780 | 1,692 | 6,878 | (7,040) |
Income tax expense | ¥ (70,697) | $ (10,155) | ¥ (71,763) | ¥ (52,924) |
INCOME TAXES 3 (Detail)
INCOME TAXES 3 (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Deferred tax assets: | |||
Accrued expenses | ¥ 6,182 | $ 888 | ¥ 6,680 |
Tax loss carry forward | 17,075 | 2,453 | 24,214 |
Revenue recognition | 5,031 | 723 | 12,749 |
Others | 846 | 122 | 992 |
Less: Valuation allowance | (16,850) | (2,420) | (37,311) |
Deferred tax assets | 12,284 | 1,766 | 7,324 |
Deferred tax liabilities: | |||
Long-lived assets arising from acquisitions | 7,239 | 1,040 | 844 |
Outside basis difference on investment in WFOE | 23,725 | 3,408 | 13,853 |
Others | 1,410 | 204 | 455 |
Deferred income tax liabilities, net | 32,374 | 4,652 | 15,152 |
Deferred tax assets | 11,026 | 1,584 | 6,713 |
Deferred tax liabilities | (31,116) | (4,470) | (14,541) |
Net deferred tax liabilities | ¥ (20,090) | $ (2,886) | ¥ (7,828) |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefit (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | |||
Balance at January 1, | ¥ 7,613 | $ 1,094 | ¥ 8,799 |
Additions due to tax positions taken and business combination during the current year | 26,662 | 3,830 | 2,636 |
Reversal based on tax positions related to prior years | (4,721) | (679) | (171) |
Settlement | (3,463) | ||
Foreign currency translation adjustments | (188) | ||
Balance at December 31, | ¥ 29,554 | $ 4,245 | ¥ 7,613 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |||
Loan to a related party: | ||||||
Payments to Fund Long-term Loans to Related Parties | ¥ 100,000 | $ 14,364 | ¥ 150,000 | ¥ 150,000 | ||
Lionbridge Limited [Member] | ||||||
Loan to a related party: | ||||||
Payments to Fund Long-term Loans to Related Parties | [1] | 100,000 | $ 14,364 | 150,000 | 150,000 | |
Bain Advisors [Member] | ||||||
Services received from related parties: | ||||||
Services received from a related party: | ¥ 38,537 | [2] | ||||
[1] | The Group entered into certain entrustment loan agreements with Lionbridge, pursuant to which the Group granted total loans of RMB150,000, RMB150,000 and RMB100,000 (US$14,364) to Lionbridge during the years ended December 31, 2017, 2018 and 2019, respectively, with details set forth below: | |||||
[2] | During the years ended December 31, 2017, 2018 and 2019, the Group accrued consulting fees of RMB38,537, RMB nil and nil, respectively, to Bain Advisors, an affiliate of the Group’s majority shareholder, which included a lump sum consulting termination fee of RMB33,887 to Bain Advisors as a result of the IPO for the year ended December 31, 2017. (note 12 c) (2). |
RELATED PARTY TRANSACTIONS (Tex
RELATED PARTY TRANSACTIONS (Textual) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |||
Payments to Fund Long-term Loans to Related Parties | ¥ 100,000 | $ 14,364 | ¥ 150,000 | ¥ 150,000 | ||
Investment Income, Interest | 17,952 | 2,579 | 26,376 | 19,559 | ||
Lionbridge Limited [Member] | ||||||
Payments to Fund Long-term Loans to Related Parties | [1] | 100,000 | 14,364 | 150,000 | 150,000 | |
Investment Income, Interest | 3,509 | $ 504 | 7,539 | 7,457 | ||
Bain Advisors | ||||||
Payment Of Termination Fee | 33,887 | |||||
Bain Advisors [Member] | ||||||
Payments for Other Fees | ¥ 38,537 | [2] | ||||
[1] | The Group entered into certain entrustment loan agreements with Lionbridge, pursuant to which the Group granted total loans of RMB150,000, RMB150,000 and RMB100,000 (US$14,364) to Lionbridge during the years ended December 31, 2017, 2018 and 2019, respectively, with details set forth below: | |||||
[2] | During the years ended December 31, 2017, 2018 and 2019, the Group accrued consulting fees of RMB38,537, RMB nil and nil, respectively, to Bain Advisors, an affiliate of the Group’s majority shareholder, which included a lump sum consulting termination fee of RMB33,887 to Bain Advisors as a result of the IPO for the year ended December 31, 2017. (note 12 c) (2). |
RELATED PARTY TRANSACTIONS 1 (D
RELATED PARTY TRANSACTIONS 1 (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loan One [Member] | |||
Interest Rate | 7.20% | 7.00% | 7.00% |
Principal | ¥ 100,000 | ¥ 150,000 | ¥ 100,000 |
Period | May 30, 2019 to November 30, 2019 | March 1, 2018 to November 30, 2018 | February 24, 2017 to November 30, 2017 |
Loan Two [Member] | |||
Interest Rate | 7.00% | ||
Principal | ¥ 50,000 | ||
Period | March 20, 2017 to November 30, 2017 |
RELATED PARTY TRANSACTIONS 2 (D
RELATED PARTY TRANSACTIONS 2 (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Bain Capital Education IV [Member] | |||
Due from Related Parties | ¥ 191 | $ 27 | ¥ 190 |
RESTRICTED NET ASSETS (Textual)
RESTRICTED NET ASSETS (Textual) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | |
Receivables [Abstract] | ||||
Descriptions of Annual Appropriations of General Reserve Subject to Certain Cumulative Limits | Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax income as determined under PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. | Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax income as determined under PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. | ||
Appropriations to General Reserve | ¥ 7,673 | $ 1,102 | ¥ 5,665 | |
Descriptions of Annual Appropriations of After Tax Income to Development Fund Prior To Payments of Dividend | PRC laws and regulations require private schools that require reasonable returns to make annual appropriations of no less than 25% of after-tax income prior to payments of dividend to its development fund, which is to be used for the construction or maintenance of the school or procurement or upgrading of educational equipment. For private schools that do not require reasonable returns, this amount should be equivalent to no less than 25% of the annual increase of net assets of the school as determined in accordance with generally accepted accounting principles in the PRC. | PRC laws and regulations require private schools that require reasonable returns to make annual appropriations of no less than 25% of after-tax income prior to payments of dividend to its development fund, which is to be used for the construction or maintenance of the school or procurement or upgrading of educational equipment. For private schools that do not require reasonable returns, this amount should be equivalent to no less than 25% of the annual increase of net assets of the school as determined in accordance with generally accepted accounting principles in the PRC. | ||
Appropriations to Development Fund | ¥ 18,812 | $ 2,702 | ¥ 26,314 | |
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | ¥ 240,397 | $ 34,531 |
(LOSS)_INCOME PER SHARE (Detail
(LOSS)/INCOME PER SHARE (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net (loss)/income attributable to RISE Education Cayman Ltd—basic and diluted | ¥ 148,100 | $ 21,273 | ¥ 142,958 | ¥ (47,974) |
Denominator: | ||||
Weighted average number of ordinary shares outstanding-basic | 114,905,223 | 114,905,223 | 113,812,182 | 101,890,411 |
Weighted average number of ordinary shares outstanding- diluted | 116,181,610 | 116,181,610 | 115,881,867 | 101,890,411 |
Basic (loss)/income per share | (per share) | ¥ 1.29 | $ 0.19 | ¥ 1.26 | ¥ (0.47) |
Diluted (loss)/income per share | (per share) | 1.27 | 0.18 | 1.23 | (0.47) |
Basic (loss)/income per ADS | (per share) | 2.58 | 0.37 | 2.51 | (0.94) |
Diluted (loss)/income per ADS | (per share) | ¥ 2.55 | $ 0.37 | ¥ 2.47 | ¥ (0.94) |
(LOSS)_INCOME PER SHARE(Textual
(LOSS)/INCOME PER SHARE(Textual) (Detail) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Number of share options excluded from exercise shares | 0 | 0 |
SHARE-BASED PAYMENTS (Textual)
SHARE-BASED PAYMENTS (Textual) (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 24, 2017CNY (¥) | Apr. 30, 2016shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016shares | Dec. 31, 2019USD ($) | Apr. 01, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 50% of the options granted will generally vest in four or five equal installments over a service period (the “2016 Service Options”) while the remaining 50% of the options will vest in two equal installments of 25% each if a fixed targeted return on the Company’s ordinary shares is achieved (the “2016 Market Options”). | |||||||||
Share-based compensation | ¥ 47,889 | $ 6,879 | ¥ 18,631 | ¥ 95,307 | ||||||
Accelerated vesting of stock options granted | 309,000 | 309,000 | 432,500 | |||||||
Accelerated vesting of stock options granted | 50,000 | |||||||||
Weighted-average grant-date fair value for vested options | $ / shares | $ 2.38 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 128 | |||||||||
Share Incentive Plan 2016 [Member] | ||||||||||
Share-based compensation | ¥ 90,335 | ¥ 21,896 | $ 3,170 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ¥ 9,981 | $ 1,434 | ¥ 168,917 | ¥ 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 1,333,000 | 1,333,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | 4,126 | |||||||||
Share Incentive Plan 2017 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | 10 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 | 5,000,000 | 4,800,000 | |||||||
Share-based compensation | ¥ 13,081 | $ 1,894 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 720,000 | 720,000 | ||||||||
Weighted-average grant-date fair value for vested options | $ / shares | $ 2.63 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | 7,125 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ¥ 9,981 | ¥ 0 | $ 1,434 | |||||||
Equity Option Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 7,000,000 | |||||||||
2017 Modification Date [Member] | ||||||||||
Share-based compensation | ¥ 2,329 | $ 358 | ||||||||
Employee [Member] | Equity Option Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,985,000 |
SHARE-BASED PAYMENTS (Detail)
SHARE-BASED PAYMENTS (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥) | |
Share Incentive Plan 2016 [Member] | |||||
Disclosure of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Number of options, Outstanding Opening | shares | 2,299,103 | ||||
Number of options, Granted | shares | 308,000 | ||||
Number of options, Exercised | shares | (468,384) | ||||
Number of options, Forfeited/Cancelled | shares | (71,000) | ||||
Number of options, Outstanding Ending | shares | 2,067,719 | 2,299,103 | |||
Number of options, Vested and expected to vest | shares | 2,067,719 | 2,067,719 | |||
Number of options, Exercisable | shares | 2,002,719 | 2,002,719 | |||
Weighted- average exercise price, Outstanding Opening | $ 1.44 | ||||
Weighted - average exercise price, granted | 1.44 | ||||
Weighted- average exercise price, Exercised | 1.44 | ||||
Weighted- average exercise price, Forfeited/Cancelled | 1.44 | ||||
Weighted- average exercise price, Outstanding Ending | 1.44 | $ 1.44 | |||
Weighted- average exercise price, Vested and expected to vest | $ 1.44 | ||||
Weighted- average exercise price, Exercisable | $ 1.44 | ||||
Weighted-Average grant date fair value, Granted | 3.50 | ||||
Weighted-Average grant date fair value, Forfeited/Cancelled | $ 2.02 | ||||
Weighted - average remaining contractual term, Outstanding | 5 years 6 months 7 days | 6 years 1 month 17 days | |||
Weighted - average remaining contractual term Vested and expected to vest | 5 years 6 months 7 days | ||||
Weighted - average remaining contractual term, Exercisable | 5 years 5 months 4 days | ||||
Aggregate intrinsic Value, Outstanding Opening | $ | $ 5,840 | ||||
Aggregate intrinsic Value, Vested and expected to vest | $ | $ 4,260 | ||||
Aggregate intrinsic Value, Exercisable | $ | $ 4,126 | ||||
Aggregate intrinsic Value, Outstanding Ending | $ | $ 4,260 | ||||
Share Incentive Plan 2017 [Member] | |||||
Disclosure of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Number of options, Outstanding Opening | shares | |||||
Number of options, Granted | shares | 4,800,000 | ||||
Number of options, Exercised | shares | 0 | ||||
Number of options, Forfeited/Cancelled | shares | (200,000) | ||||
Number of options, Outstanding Ending | shares | 4,600,000 | ||||
Number of options, Vested and expected to vest | shares | 4,600,000 | 4,600,000 | |||
Number of options, Exercisable | shares | 690,000 | 690,000 | |||
Weighted- average exercise price, Outstanding Opening | |||||
Weighted - average exercise price, granted | $ 4.25 | ||||
Weighted- average exercise price, Forfeited/Cancelled | 4.25 | ||||
Weighted- average exercise price, Outstanding Ending | 4.25 | ||||
Weighted- average exercise price, Vested and expected to vest | $ 4.25 | ||||
Weighted- average exercise price, Exercisable | $ 4.25 | ||||
Weighted-Average grant date fair value,outstanding opening | |||||
Weighted-Average grant date fair value, Granted | 2.63 | ||||
Weighted-Average grant date fair value, Forfeited/Cancelled | $ 2.63 | ||||
Weighted - average remaining contractual term, Outstanding | 9 years 3 months 3 days | 0 years | |||
Weighted - average remaining contractual term, Granted | 10 years | ||||
Weighted - average remaining contractual term Vested and expected to vest | 9 years 3 months 3 days | ||||
Weighted - average remaining contractual term, Exercisable | 9 years 3 months 3 days | ||||
Aggregate intrinsic Value, Exercisable | ¥ 9,981 | $ 1,434 | ¥ 0 |
SHARE-BASED PAYMENTS 1 (Detail)
SHARE-BASED PAYMENTS 1 (Detail) | 12 Months Ended | ||
Dec. 31, 2019yr$ / shares | Dec. 31, 2018yr$ / shares | Dec. 31, 2017yr$ / shares | |
Share Incentive Plan 2016 [Member] | |||
Suboptimal exercise factor | yr | 2.8 | 2.8 | 2.8 |
Fair value per ordinary share as at valuation date | $ 7.07 | ||
Share Incentive Plan 2017 [Member] | |||
Risk-free interest rate | 3.29% | ||
Expected volatility range | 54.80% | ||
Suboptimal exercise factor | yr | 2.8 | ||
Fair value per ordinary share as at valuation date | $ 4.94 | ||
Minimum [Member] | Share Incentive Plan 2016 [Member] | |||
Risk-free interest rate | 2.41% | 3.51% | 2.39% |
Expected volatility range | 53.70% | 49.90% | 47.50% |
Fair value per ordinary share as at valuation date | $ 4.11 | $ 5.28 | |
Maximum [Member] | Share Incentive Plan 2016 [Member] | |||
Risk-free interest rate | 3.34% | 3.82% | 2.93% |
Expected volatility range | 55.20% | 53.60% | 49.30% |
Fair value per ordinary share as at valuation date | $ 5.37 | $ 7.06 |
SHARE-BASED PAYMENTS 2 (Detail)
SHARE-BASED PAYMENTS 2 (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Total | ¥ 47,889 | $ 6,879 | ¥ 18,631 | ¥ 95,307 |
Share Incentive Plan 2017 [Member] | ||||
Cost of revenues | 2,617 | 376 | 1,315 | 17,063 |
Selling and marketing expenses | 1,016 | 146 | 4,229 | 9,045 |
General and administrative expenses | 44,256 | 6,357 | 14,808 | 69,199 |
Total | ¥ 47,889 | $ 6,879 | ¥ 20,352 | ¥ 95,307 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Capital Commitments Under Non-Cancellable Construction Contracts (Detail) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Construction of leasehold improvements [Member] | ||
Future Minimum Payments Under Non Cancelable Operating Leases With Initial Or Remaining Lease Terms In Excess Of One Year And Future Minimum Capital Lease Payments [Line Items] | ||
Future minimum capital expenditure commitments | ¥ 9,010 | $ 1,294 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Equity [Abstract] | ||||
Opening Balance | ¥ 42,459 | ¥ 40,040 | ¥ 50,464 | |
Foreign currency translation adjustments, net of tax of nil | (1,542) | $ (221) | 2,419 | (10,424) |
Closing Balance | ¥ 40,917 | $ 5,877 | ¥ 42,459 | ¥ 40,040 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE COMPANY (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 999,012 | $ 143,499 | ¥ 1,288,080 | ¥ 1,055,982 | |
Due from subsidiaries of the Group | 191 | 27 | 190 | ||
Prepayments and other current assets | 51,420 | 7,386 | 71,537 | ||
Total current assets | 1,084,866 | 155,832 | 1,402,270 | ||
Non-current assets: | |||||
Total non-current assets | 1,717,089 | 246,644 | 878,504 | ||
Total assets | 2,801,955 | 402,476 | 2,280,774 | ||
Current liabilities | |||||
Accrued expenses and other liabilities | 202,808 | 29,133 | 159,882 | ||
Total current liabilities | 1,233,518 | 177,184 | 1,278,872 | ||
Total liabilities | 2,177,654 | 312,800 | 1,839,940 | ||
Shareholders' equity: | |||||
Ordinary shares (US$0.01 par value; 200,000,000 and 200,000,000 shares authorized, 113,779,244 and 112,755,320 shares issued and outstanding as of December 31, 2018 and 2019, respectively) | 6,946 | 998 | 7,074 | ||
Additional paid-in capital | 583,262 | 83,780 | 600,011 | ||
Treasury shares, at cost | (23,460) | ||||
Accumulated deficit | (127,059) | (18,251) | (248,674) | ||
Accumulated other comprehensive income | 40,917 | 5,877 | 42,459 | ¥ 40,040 | ¥ 50,464 |
Total shareholders' equity | 608,896 | 87,462 | 455,755 | ||
Total liabilities and shareholders' equity | 2,801,955 | 402,476 | 2,280,774 | ||
Parent Company [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 13,979 | 2,008 | 13,774 | ||
Due from subsidiaries of the Group | 52,910 | 7,600 | 47,096 | ||
Prepayments and other current assets | 8,648 | 1,242 | 8,682 | ||
Total current assets | 75,537 | 10,850 | 69,552 | ||
Non-current assets: | |||||
Investment in subsidiaries | 636,322 | 91,402 | 436,925 | ||
Total non-current assets | 636,322 | 91,402 | 436,925 | ||
Total assets | 711,859 | 102,252 | 506,477 | ||
Current liabilities | |||||
Accrued expenses and other liabilities | 3,714 | 534 | 3,367 | ||
Amount due to a subsidiary of the Group | 99,249 | 14,256 | 47,355 | ||
Total current liabilities | 102,963 | 14,790 | 50,722 | ||
Total liabilities | 102,963 | 14,790 | 50,722 | ||
Shareholders' equity: | |||||
Ordinary shares (US$0.01 par value; 200,000,000 and 200,000,000 shares authorized, 113,779,244 and 112,755,320 shares issued and outstanding as of December 31, 2018 and 2019, respectively) | 6,946 | 998 | 7,074 | ||
Additional paid-in capital | 583,262 | 83,780 | 600,011 | ||
Treasury shares, at cost | (23,460) | ||||
Accumulated deficit | (22,229) | (3,193) | (170,329) | ||
Accumulated other comprehensive income | 40,917 | 5,877 | 42,459 | ||
Total shareholders' equity | 608,896 | 87,462 | 455,755 | ||
Total liabilities and shareholders' equity | ¥ 711,859 | $ 102,252 | ¥ 506,477 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE COMPANY (Parenthetical) (Detail) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 112,755,320 | 113,779,244 |
Common Stock, Shares, Outstanding | 112,755,320 | 113,779,244 |
Parent Company [Member] | ||
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 112,755,320 | 113,779,244 |
Common Stock, Shares, Outstanding | 112,755,320 | 113,779,244 |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE COMPANY (Detail 1) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
General and administrative expenses | ¥ 304,626 | $ 43,757 | ¥ 242,084 | ¥ 339,690 |
Operating loss | 222,789 | 32,002 | 207,612 | (628) |
Interest income | 17,952 | 2,579 | 26,376 | 19,559 |
Others, net | 10,115 | 1,452 | 15,397 | 6,594 |
Loss)/income before income tax expense | 215,257 | 30,920 | 214,199 | (676) |
Income tax expense | 70,697 | 10,155 | 71,763 | 52,924 |
Net (loss)/income | 148,100 | 21,273 | 142,958 | (47,974) |
Other comprehensive (loss)/income, net of tax of nil | ||||
Foreign currency translation adjustments | (1,542) | (221) | 2,419 | (10,424) |
Comprehensive (loss)/income | 146,558 | 21,052 | 145,377 | (58,398) |
Parent Company [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
General and administrative expenses | (5,600) | (804) | (8,400) | |
Operating loss | (5,600) | (804) | (8,400) | |
Equity in (loss)/profit of subsidiaries and the VIEs | 153,668 | 22,072 | 138,698 | (54,676) |
Interest income | 32 | 5 | 22 | 6,702 |
Others, net | 12,638 | |||
Loss)/income before income tax expense | 148,100 | 21,273 | 142,958 | (47,974) |
Income tax expense | 0 | 0 | 0 | 0 |
Net (loss)/income | 148,100 | 21,273 | 142,958 | (47,974) |
Other comprehensive (loss)/income, net of tax of nil | ||||
Foreign currency translation adjustments | (1,542) | (221) | 2,419 | (10,424) |
Other comprehensive (loss)/income | (1,542) | (221) | 2,419 | (10,424) |
Comprehensive (loss)/income | ¥ 146,558 | $ 21,052 | ¥ 145,377 | ¥ (58,398) |
CONDENSED FINANCIAL INFORMATI_6
CONDENSED FINANCIAL INFORMATION OF THE COMPANY (Detail 2) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash generated from investing activities | ¥ (114,716) | $ (16,478) | ¥ (100,875) | ¥ (53,067) |
Net cash used in financing activities | (140,732) | (20,215) | (57,306) | 137,402 |
Effect of exchange rate changes | 1,342 | 193 | 10,037 | (6,228) |
Net increase in cash, cash equivalents and restricted cash | (293,960) | (42,225) | 231,890 | 428,207 |
Cash, cash equivalents and restricted cash at beginning of year | 1,316,785 | 189,145 | 1,084,895 | 656,688 |
Cash, cash equivalents and restricted cash at end of year | 1,022,825 | 146,920 | 1,316,785 | 1,084,895 |
Parent Company [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash generated from investing activities | 32 | 5 | 13,774 | 571,808 |
Net cash used in financing activities | 0 | 0 | ¥ (571,808) | |
Effect of exchange rate changes | 173 | |||
Net increase in cash, cash equivalents and restricted cash | 205 | 5 | 13,774 | |
Cash, cash equivalents and restricted cash at beginning of year | 13,774 | 2,003 | ||
Cash, cash equivalents and restricted cash at end of year | ¥ 13,979 | $ 2,008 | ¥ 13,774 |