Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | NEW |
Entity Registrant Name | Puxin Ltd |
Entity Central Index Key | 0001726189 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 165,038,164 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 778,006 | $ 113,156 | ¥ 164,684 |
Inventories | 9,659 | 1,405 | 10,408 |
Prepaid expenses and other current assets | 128,638 | 18,710 | 132,473 |
Amounts due from related parties | 113 | ||
Total current assets | 916,303 | 133,271 | 307,678 |
Non-current assets | |||
Restricted cash | 40,971 | 5,959 | 24,478 |
Property, plant and equipment, net | 248,801 | 36,187 | 221,212 |
Intangible assets | 218,978 | 31,849 | 243,927 |
Goodwill | 1,243,817 | 180,906 | 1,152,913 |
Deferred tax assets | 3,456 | 503 | 3,012 |
Rental deposit | 64,693 | 9,409 | 55,173 |
TOTAL ASSETS | 2,737,019 | 398,084 | 2,008,393 |
Current liabilities | |||
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIE without recourse to the Group of RMB345,100 and RMB490,696 as of December 31, 2017 and 2018, respectively) | 515,623 | 74,998 | 350,446 |
Income tax payable of the consolidated VIE without recourse to the Group | 15,755 | 2,291 | 10,022 |
Deferred revenue, current portion (including deferred revenue, current portion of the consolidated VIE without recourse to the Group of RMB906,480 and RMB862,043 as of December 31, 2017 and 2018, respectively) | 876,861 | 127,534 | 906,480 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIE without recourse to the Group of RMB3,836 and RMB3,199 as of December 31, 2017 and 2018, respectively) | 54,493 | 7,926 | 3,836 |
Bank borrowings of the consolidated VIE without recourse to the Group | 106,600 | 15,504 | 0 |
Promissory notes, current portion (including promissory notes, current portion of the consolidated VIE without recourse to the group of RMB nil and RMB190,000 as of December 31, 2017 and 2018, respectively) | 361,888 | 52,634 | 0 |
Total current liabilities | 1,931,220 | 280,887 | 1,270,784 |
Non-current liabilities | |||
Deferred revenue, non-current portion of the consolidated VIE without recourse to the Group | 121,191 | 17,626 | 128,890 |
Deferred tax liabilities of the consolidated VIE without recourse to the Group | 71,031 | 10,331 | 77,580 |
Franchise deposits of the consolidated VIE without recourse to the Group | 1,763 | 256 | 3,856 |
Convertible notes (including convertible notes of the consolidated VIE without recourse to the Group of RMB150,200 and RMB nil as of December 31, 2017 and 2018, respectively) | 499,192 | ||
Promissory note, non-current portion (including promissory note, non-current portion of the consolidated VIE without recourse to the Group of RMB nil and RMB nil as of December 31, 2017 and 2018, respectively) | 162,658 | ||
Derivative liabilities (including derivative liabilities of the consolidated VIE without recourse to the Group of RMB nil and RMB nil as of December 31, 2017 and 2018, respectively) | 63,942 | 9,300 | 18,218 |
TOTAL LIABILITIES | 2,189,147 | 318,400 | 2,161,178 |
Commitments and Contingencies (Note 20) | |||
MEZZANINE EQUITY | |||
Convertible redeemable preferred shares | 120,000 | ||
SHAREHOLDERS’ (DEFICIT) EQUITY | |||
Ordinary shares (par value of USD0.00005 per share; 100,000,000 and 1,000,000,000 shares authorized, 100,000,000 and 188,627,228 shares issued and 100,000,000 and 165,038,164 shares outstanding as of December 31, 2017 and 2018, respectively) | 62 | 9 | 34 |
Additional paid-in capital | 1,944,325 | 282,790 | 391,099 |
Statutory reserve | 4,595 | 668 | |
Accumulated other comprehensive income | 68,214 | 9,921 | 15,718 |
Accumulated deficit | (1,469,303) | (213,701) | (679,613) |
Total Puxin Limited shareholders’ (deficit) equity | 547,893 | 79,687 | (272,762) |
Non-controlling interest | (21) | (3) | (23) |
TOTAL SHAREHOLDERS’ (DEFICIT) EQUITY | 547,872 | 79,684 | (272,785) |
TOTAL LIABILITIES, MEZZANINE EQUITY AND TOTAL SHAREHOLDERS’ (DEFICIT) EQUITY | ¥ 2,737,019 | $ 398,084 | ¥ 2,008,393 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)shares |
Amounts due to related parties | ¥ 54,493 | ¥ 3,836 |
Deferred revenue, current | 876,861 | 906,480 |
Accrued expenses and other current liabilities | 515,623 | 350,446 |
Promissory notes, current | 361,888 | 0 |
Convertible debt, non-current | 499,192 | |
Notes payable, non-current | 162,658 | |
Derivative liability, non-current | ¥ 63,942 | ¥ 18,218 |
Ordinary shares, authorized | shares | 1,000,000,000 | 100,000,000 |
Ordinary shares, issued | shares | 188,627,228 | 100,000,000 |
Ordinary shares, outstanding | shares | 165,038,164 | 100,000,000 |
VIE | ||
Amounts due to related parties | ¥ 3,199 | ¥ 3,836 |
Deferred revenue, current | 862,043 | 906,480 |
Accrued expenses and other current liabilities | 490,696 | 345,100 |
Promissory notes, current | ¥ 190,000 | |
Convertible debt, non-current | ¥ 150,200 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Income Statement [Abstract] | |||
Net revenues | ¥ 2,228,117 | ¥ 1,282,562 | ¥ 439,181 |
Cost of revenues (including share-based compensation expenses of RMB nil, RMB1,152 and RMB6,420 for the years ended December 31, 2016, 2017 and 2018, respectively) | 1,242,889 | 794,342 | 257,995 |
Gross profit | 985,228 | 488,220 | 181,186 |
Operating expenses: | |||
Selling expenses (including share-based compensation expenses of RMB991, RMB3,058 and RMB28,848 for the years ended December 31, 2016, 2017 and 2018, respectively) | 848,088 | 444,927 | 123,370 |
General and administrative expenses (including share-based compensation expenses of RMB50,272, RMB51,625 and RMB339,689 for the years ended December 31, 2016, 2017 and 2018, respectively) | 775,883 | 362,748 | 185,496 |
Total operating expenses | 1,623,971 | 807,675 | 308,866 |
Operating loss | (638,743) | (319,455) | (127,680) |
Interest expense | 51,901 | 5,556 | |
Interest income | 2,826 | 549 | 464 |
Foreign exchange loss | 7,621 | ||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 131,748 | 70,336 | |
Loss on extinguishment of convertible notes | 900 | 0 | 0 |
Loss before income taxes | (828,087) | (394,798) | (127,216) |
Income tax expenses | 5,322 | 2,436 | 388 |
Net loss | (833,409) | (397,234) | (127,604) |
Less: Net (loss) income attributable to non-controlling interest | ¥ | 2 | 79 | (48) |
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (833,411) | ¥ (397,313) | ¥ (127,556) |
Net loss per share attributable to ordinary shareholders of Puxin Limited | |||
Basic and diluted | (per share) | ¥ (5.78) | ¥ (3.98) | ¥ (1.29) |
Weighted average shares used in calculating basic and diluted net loss per share | shares | 144,157,947 | 99,705,361 | 98,670,361 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based compensation expense | ¥ 345,503 | ¥ 55,835 | ¥ 51,263 |
Cost of Revenues | |||
Share-based compensation expense | 6,420 | 1,152 | 0 |
Selling Expenses | |||
Share-based compensation expense | 28,848 | 3,058 | 991 |
General and Administrative Expenses | |||
Share-based compensation expense | ¥ 339,689 | ¥ 51,625 | ¥ 50,272 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Statement [Abstract] | ||||
Net loss | ¥ (833,409) | $ (121,215) | ¥ (397,234) | ¥ (127,604) |
Other comprehensive income, net of tax of nil: | ||||
Change in cumulative foreign currency translation adjustments | 52,496 | 7,635 | 15,718 | |
Total comprehensive loss | (780,913) | (113,580) | (381,516) | (127,604) |
Less: Comprehensive (loss) income attributable to non- controlling interest | 2 | 79 | (48) | |
Total comprehensive loss attributable to Puxin Limited | ¥ (780,915) | $ (113,580) | ¥ (381,595) | ¥ (127,556) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Convertible NotesCNY (¥) | Redeemable Preferred SharesCNY (¥) | IPOCNY (¥) | Ordinary SharesCNY (¥)shares | Ordinary SharesUSD ($)shares | Ordinary SharesConvertible NotesCNY (¥)shares | Ordinary SharesRedeemable Preferred SharesCNY (¥)shares | Ordinary SharesIPOCNY (¥)shares | Additional Paid In CapitalCNY (¥) | Additional Paid In CapitalUSD ($) | Additional Paid In CapitalConvertible NotesCNY (¥) | Additional Paid In CapitalRedeemable Preferred SharesCNY (¥) | Additional Paid In CapitalIPOCNY (¥) | Statutory ReserveCNY (¥) | Statutory ReserveUSD ($) | Accumulated Other Comprehensive IncomeCNY (¥) | Accumulated Other Comprehensive IncomeUSD ($) | Accumulated DeficitCNY (¥) | Accumulated DeficitUSD ($) | Total Puxin Limited Shareholders (Deficit) Equity [Member]CNY (¥) | Total Puxin Limited Shareholders (Deficit) Equity [Member]USD ($) | Total Puxin Limited Shareholders (Deficit) Equity [Member]Convertible NotesCNY (¥) | Total Puxin Limited Shareholders (Deficit) Equity [Member]Redeemable Preferred SharesCNY (¥) | Total Puxin Limited Shareholders (Deficit) Equity [Member]IPOCNY (¥) | Noncontrolling Interest [Member]CNY (¥) | Noncontrolling Interest [Member]USD ($) |
Beginning balance at Dec. 31, 2015 | ¥ 6,437 | ¥ 34 | ¥ 161,201 | ¥ (154,744) | ¥ 6,491 | ¥ (54) | ||||||||||||||||||||||
Beginning balance, shares at Dec. 31, 2015 | shares | 97,703,180 | 97,703,180 | ||||||||||||||||||||||||||
Net loss | (127,604) | (127,556) | (127,556) | (48) | ||||||||||||||||||||||||
Share-based compensation | 51,263 | 51,263 | 51,263 | |||||||||||||||||||||||||
Contribution from shareholders | ¥ 32,600 | 32,600 | 32,600 | |||||||||||||||||||||||||
Option exercised, shares | shares | 1,468,620 | 1,468,620 | 1,468,620 | 1,468,620 | ||||||||||||||||||||||||
Ending balance at Dec. 31, 2016 | ¥ (37,304) | ¥ 34 | 245,064 | (282,300) | (37,202) | (102) | ||||||||||||||||||||||
Ending balance at Dec. 31, 2016 | shares | 99,171,800 | 99,171,800 | ||||||||||||||||||||||||||
Net loss | (397,234) | (397,313) | (397,313) | 79 | ||||||||||||||||||||||||
Share-based compensation | 55,835 | 55,835 | 55,835 | |||||||||||||||||||||||||
Contribution from shareholders | 90,200 | 90,200 | 90,200 | |||||||||||||||||||||||||
Foreign currency translation adjustments | ¥ 15,718 | ¥ 15,718 | 15,718 | |||||||||||||||||||||||||
Option exercised, shares | shares | 828,200 | 828,200 | 828,200 | 828,200 | ||||||||||||||||||||||||
Ending balance at Dec. 31, 2017 | ¥ (272,785) | ¥ 34 | 391,099 | 15,718 | (679,613) | (272,762) | (23) | |||||||||||||||||||||
Ending balance at Dec. 31, 2017 | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||||||||||||||||||
Issuance of ordinary shares | ¥ 736 | ¥ 798,830 | ¥ 16 | ¥ 5 | 720 | ¥ 798,825 | 736 | ¥ 798,830 | ||||||||||||||||||||
Issuance of ordinary shares, shares | shares | 26,827,744 | 26,827,744 | 16,560,000 | |||||||||||||||||||||||||
Net loss | (833,409) | $ (121,215) | (833,411) | (833,411) | 2 | |||||||||||||||||||||||
Provision of statutory reserve | ¥ 4,595 | (4,595) | ||||||||||||||||||||||||||
Share-based compensation | 345,503 | 345,503 | 345,503 | |||||||||||||||||||||||||
Foreign currency translation adjustments | 52,496 | $ 7,635 | 52,496 | 52,496 | ||||||||||||||||||||||||
Repurchase of convertible redeemable preferred shares | (131,088) | (131,088) | (131,088) | |||||||||||||||||||||||||
Conversion of convertible notes /redeemable preferred shares | ¥ 438,720 | ¥ 71,088 | ¥ 3 | ¥ 4 | ¥ 438,717 | ¥ 71,084 | ¥ 438,720 | ¥ 71,088 | ||||||||||||||||||||
Conversion of convertible notes / redeemable preferred shares, shares | shares | 8,067,228 | 11,917,880 | ||||||||||||||||||||||||||
Cumulative effect of adopting Topic 606 | 48,316 | 48,316 | 48,316 | |||||||||||||||||||||||||
Restricted shares granted | 29,454 | 29,454 | 29,454 | |||||||||||||||||||||||||
Restricted shares granted, shares | shares | 1,631,200 | 1,631,200 | ||||||||||||||||||||||||||
Option exercised | ¥ 11 | 11 | 11 | |||||||||||||||||||||||||
Option exercised, shares | shares | 34,112 | 34,112 | 34,112 | 34,112 | ||||||||||||||||||||||||
Ending balance at Dec. 31, 2018 | ¥ 547,872 | $ 79,684 | ¥ 62 | $ 9 | ¥ 1,944,325 | $ 282,790 | ¥ 4,595 | $ 668 | ¥ 68,214 | $ 9,921 | ¥ (1,469,303) | $ (213,701) | ¥ 547,893 | $ 79,687 | ¥ (21) | $ (3) | ||||||||||||
Ending balance at Dec. 31, 2018 | shares | 188,627,228 | 188,627,228 | 165,038,164 | 165,038,164 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS (DEFICIT) EQUITY (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Statement Of Stockholders Equity [Abstract] | |
Issuance of ordinary shares upon initial public offering, issuance cost | ¥ 38,711 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | ¥ (833,409) | $ (121,215) | ¥ (397,234) | ¥ (127,604) |
Adjustments to reconcile net loss to net cash generated from (used in) operating activities: | ||||
Depreciation of property, plant and equipment | 57,696 | 8,392 | 20,545 | 3,735 |
Amortization of intangible assets | 32,749 | 4,763 | 23,644 | 10,158 |
Foreign exchange loss | 7,621 | 1,108 | ||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 131,748 | 19,162 | 70,336 | |
Loss on extinguishment of convertible notes | 900 | 131 | ||
(Gain) loss on disposal of property, plant and equipment | (266) | (39) | 350 | (566) |
Share-based compensation | 374,957 | 54,535 | 55,835 | 51,263 |
Deferred income taxes | (8,943) | (1,301) | (5,822) | (3,147) |
Changes in operating assets and liabilities: | ||||
Inventories | 723 | 105 | (44) | |
Prepaid expenses and other current assets | (48,772) | (7,093) | (32,545) | (9,557) |
Amounts due from related parties | 113 | 16 | (104) | (9) |
Deferred revenue | (32,052) | (4,662) | 200,647 | 107,458 |
Accrued expenses and other current liabilities | (10,267) | (1,491) | 140,261 | 43,705 |
Income tax payable | 5,733 | 834 | 7,097 | 2,925 |
Amount due to related parties | 230,657 | 33,548 | 788 | 3,048 |
Franchise deposits | (2,093) | (304) | (3,488) | |
Net cash generated from (used in) operating activities | (92,905) | (13,511) | 80,266 | 81,409 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Acquisition of businesses, net of cash acquired | (73,208) | (10,648) | (564,998) | (68,166) |
Purchase of property, plant and equipment | (83,709) | (12,175) | (64,706) | (21,093) |
Net cash used in investing activities | (156,917) | (22,823) | (629,704) | (89,259) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from IPO (net of IPO expenses) | 799,208 | 116,240 | ||
Proceeds from issuance of convertible redeemable preferred shares | 70,000 | |||
Proceeds from convertible notes | 461,206 | |||
Proceeds from promissory notes | 50,000 | 7,272 | 168,180 | |
Repurchase of convertible redeemable preferred shares | (180,000) | (26,180) | ||
Loans from third parties | 139,500 | 20,289 | ||
Repayments to third parties | (83,802) | (12,188) | ||
Borrowings from banks | 110,873 | 16,126 | ||
Repayments of bank borrowings | (4,273) | (622) | ||
Net cash generated from financing activities | 831,506 | 120,937 | 629,386 | 70,000 |
Effect of exchange rate changes | 48,131 | 7,000 | 3,696 | |
Net increase in cash and cash equivalents, and restricted cash | 629,815 | 91,603 | 83,644 | 62,150 |
Cash and cash equivalents, and restricted cash at beginning of the year | 189,162 | 27,512 | 105,518 | 43,368 |
Cash and cash equivalents, and restricted cash at end of the year | 818,977 | 119,115 | 189,162 | 105,518 |
Supplemental schedule of cash flow information | ||||
Income taxes paid | 8,532 | 1,241 | 1,161 | 610 |
Interest paid | 55,098 | 8,014 | 2,998 | |
Acquisition consideration payable | 48,128 | 7,000 | 68,199 | 93,585 |
Reconciliation to amounts on consolidated balance sheets | ||||
Cash and cash equivalents | 778,006 | 164,684 | 100,109 | |
Restricted cash | 40,971 | 24,478 | 5,409 | |
Cash and cash equivalents, and restricted cash at end of the year | ¥ 818,977 | $ 119,115 | ¥ 189,162 | ¥ 105,518 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. Puxin Limited (the “Company”) was incorporated under the laws of the Cayman Islands on March 17, 2017. The Company, its subsidiaries, consolidated variable interest entity (“VIE”) and VIE’s subsidiaries and schools (collectively the “Group”) are primarily engaged in providing K-12 tutoring services and study abroad tutoring services in the People’s Republic of China (“PRC”). History Puxin Education Technology Group Co., Ltd. (“Puxin Education” or the “VIE”) was founded in September 2014, as a limited liability company in the PRC, by Mr. Yunlong Sha, Chief Executive Officer (“CEO”) of the Company. Puxin Education, its subsidiaries and schools are primarily engaged in providing K-12 tutoring services and study abroad tutoring services in the PRC. Puxin Limited was set up to facilitate the Group’s future overseas offering and Puxin Education’s acquisition of Beijing Global Education & Technology Co., Ltd. (“Beijing GEDU”). Immediately after the acquisition of Beijing GEDU, the operating entity of Beijing GEDU became a subsidiary of Puxin Education. In essence, Puxin Limited was a variable interest entity whereas Puxin Education was the primary beneficiary and through which, Puxin Education acquired Beijing GEDU. Accordingly, Puxin Limited was a part of the consolidated Group where Puxin Education was the holding entity. In contemplating an IPO overseas, in February 2018, the Group undertook a reorganization which includes: The holder of the equity interest with preferential feature of Puxin Education sold 5% of its holding to Mr. Yunlong Sha and transferred 3.6335% of the holding to a related party of the holder. Puxin Limited then issued an aggregate 52,082,120 ordinary shares to ordinary shareholders and an aggregate 11,917,880 of preferred Series A shares to preferred shareholders. In addition, preferential rights held by investors of Puxin Education were cancelled (“Recapitalization”). Consequently, Puxin Limited became the ultimate holding for the Group. Due to PRC legal restrictions on foreign ownership and investment in the education business in China, Puxin Limited, through Prepshine Holdings Co., Limited (“Prepshine HK”) and its PRC subsidiary, Purong (Beijing) Information Technology Co., Ltd. (“Purong Information” or “WFOE”), entered into a series of contractual arrangements with Puxin Education and its subsidiaries and schools (collectively, the “VIEs”), and the shareholders of Puxin Education. The series of contractual agreements include Exclusive Management Services and Business Cooperation Agreement, Exclusive Call Option Agreement, Equity Pledge Agreement, Powers of Attorney, Spousal Consent Letters and Letters of Commitment. The Group believes that these contractual arrangements would enable Puxin Limited to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, Puxin Limited is considered the primary beneficiary of the VIEs. The reorganization involves steps and entities all within the same consolidated group, and as a result, the accompanying consolidated financial statements have been prepared as if the current corporate structure has been in existence throughout the periods presented. The share and per share data relating to the ordinary shares issued by the Company are presented as if the reorganization occurred at the beginning of the first period presented. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES- continued History - continued The Company’s subsidiaries, VIE and VIE’s significant subsidiaries and schools as of December 31, 2018 were as follows: (1) Name Later of date of establishment or acquisition Place of establishment Percentage of direct or indirect economic ownership Principal activities Subsidiaries: Prepshine HK April 13, 2017 Hong Kong 100 % Holding company Purong Information January 8, 2018 PRC 100 % Holding company Beijing GEDU August 16, 2017 PRC 100 % Education services Variable interest entity: Puxin Education September 28, 2014 PRC 100 % Education services VIE’s significant subsidiaries and schools : Beijing Shangxin Education Technology Co., Ltd. (“Beijing Shangxin”) September 28, 2014 PRC 100 % Education services Beijing Meikaida Education Technology Co., Ltd. (“Beijing Meikaida”) June 18, 2015 PRC 100 % Education services Beijing Meitong Education Consulting Co., Ltd. (“Beijing Meitong”) July 22, 2015 PRC 100 % Education services Yunnan Pude Education Information Consulting Co., Ltd. (“Yunnan Pude”) January 4, 2016 PRC 100 % Education services Taiyuan Puxin Culture and Arts Co., Ltd. (“Taiyuan Puxin Arts”) April 30, 2015 PRC 100 % Education services Taiyuan Fubusi Education School (“Taiyuan Fubusi”) April 30, 2015 PRC 100 % Education services Taiyuan Puxin Culture Communication Co., Ltd. (“Taiyuan Puxin Communication”) June 30, 2015 PRC 100 % Education services Taiyuan Mercan School (“Taiyuan Mercan”) June 30, 2015 PRC 100 % Education services Tianjin Xinsiyuan Culture Communication Co., Ltd. (“Tianjin Xinsiyuan”) June 30, 2015 PRC 100 % Education services Tianjin Shengjia Training Center (“Tianjin Shengjia”) June 30, 2015 PRC 100 % Education services 1. ORGANIZATION AND PRINCIPAL ACTIVITIES- continued History - continued Name Later of date of establishment or acquisition Place of establishment Percentage of direct or indirect economic ownership Principal activities Guizhou Puxintian Education Technology Co., Ltd. (“Guizhou Puxintian”) November 22, 2015 PRC 100 % Education services Qingzhen Tiantian English Training School (“Qingzhen Tiantian”) November 22, 2015 PRC 100 % Education services Baiyun District Tiantian English School (“Baiyun Tiantian”) November 22, 2015 PRC 100 % Education services Guiyang Wudang Tiantian English School (“Wudang Tiantian”) November 22, 2015 PRC 100 % Education services Guiyang Huaxi Tiantian Training School (“Huaxi Tiantian”) November 22, 2015 PRC 100 % Education services Guiyang Yunyan Tiantian Education Training School (“Yunyan Tiantian”) November 22, 2015 PRC 100 % Education services Nanjing Diyu Investment Management Co., Ltd (“Nanjing Diyu”) January 18, 2016 PRC 100 % Education services Nanjing Innovation School (“Nanjing Innovation”) January 18, 2016 PRC 100 % Education services Shanghai Pukuan Education Technology Co., Ltd. (“Shanghai Pukuan”) May 5, 2016 PRC 100 % Education services Shanghai Xinkebiao Education Training Center (“Shanghai Xinkebiao”) May 5, 2016 PRC 100 % Education services Beijing Hope Education Consulting Co., Ltd. (“Beijing Hope”) June 21, 2016 PRC 100 % Education services ZMN International Education Consulting (Beijing) Co., Ltd. (“ZMN Education”) July 31, 2017 PRC 100 % Education services Shanghai Global Career Education & Technology Holdings Limited (“Shanghai GEDU”) August 16, 2017 PRC 100 % Education services Shandong Zengyu Trading Co., Ltd. (“Shandong Zengyu”) November 1, 2018 PRC 100 % Education services Jinan Tiancai Education School (“Jinan Tiancai”) November 1, 2018 PRC 100 % Education services (1) The net revenues generated from these subsidiaries and schools accounts for RMB256,055, RMB690,608 and RMB1,443,786 of the Group’s total net revenues for the years ended December 31, 2016, 2017 and 2018, respectively. The English names are for identification purpose only. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES- continued The VIE arrangements Puxin Limited, through Prepshine HK and its PRC subsidiary, Purong Information, entered into a series of contractual arrangements, on February 5, and as amended on February 25, 2018, with Puxin Education and its subsidiaries and schools, and the shareholders of Puxin Education. (i) Agreements that transfer economic benefits to the Group: Exclusive Management Services and Business Cooperation Agreement Pursuant to the exclusive management services and business cooperation agreement among Purong Information, the VIE and the shareholders of VIE, Purong Information has the exclusive right to provide or designate any third party to provide, among other things, education management consultancy services, permission of intellectual property rights, technological support and business support to the VIE and its subsidiaries. In exchange, the VIE and its subsidiaries pay service fees to Purong Information in an amount at Purong Information’s discretion. Without the prior written consent of Purong Information, the VIE and its subsidiaries cannot accept services provided by or establish similar cooperation relationship with any third party. Purong Information owns the exclusive intellectual property rights created as a result of the performance of this agreement unless otherwise provided by PRC laws or regulations. The agreement will remain effective unless unanimously agreed by the parties concerned or unilaterally terminated by Purong Information with a written notice. Unless otherwise required by applicable PRC laws, the VIE and its shareholders do not have any right to terminate the exclusive service agreement. Equity Pledge Agreement Under the equity interest pledge agreement among Purong Information, the VIE and its shareholders, the VIE’s shareholders pledged all of their equity of the VIE to Purong Information as security for performance of the obligations of the VIE and its shareholders under the exclusive call option agreement, the exclusive management services and business cooperation agreement, the powers of attorney and the loan agreement. If any of the specified events of default occurs, Purong Information may exercise the right to enforce the pledge immediately. Purong Information may transfer all or any of its rights and obligations under the equity pledge agreement to its designee(s) at any time. The equity pledge agreement is binding on the VIE’s shareholders and their successors. The equity pledge agreement will remain in effect until the fulfillment of all the obligations under the exclusive call option agreement, the exclusive management services and business cooperation agreement, the powers of attorney and the loan agreement. (ii) Agreements that provide the Company effective control over Puxin Education: Exclusive Call Option Agreement Under the exclusive call option agreement among Purong Information, the VIE and its shareholders, each of the shareholders of the VIE irrevocably granted Purong Information a right to purchase, or designate a third party to purchase, all or any part of their equity interests in the VIE at a purchase price equal to the lowest price permissible by the then-applicable PRC laws and regulations at Purong Information’s sole and absolute discretion to the extent permitted by PRC law. The shareholders of the VIE shall promptly give all considerations they received from the exercise of the options to Puxin Education, Purong Information or a designated third party of Purong Information. Without Purong Information’s prior written consent, the VIE and its shareholders shall not enter into any major contract or transfer any equity of the VIE. Without Purong Information’s prior written consent, the VIE and its shareholders shall not sell, transfer, license or otherwise dispose of any of the VIE’s assets or allow any encumbrance of any assets, except for the disposal or the encumbrances of the assets that are treated as necessary for their daily business operations with the value of the assets involved in a single transaction not exceeding RMB100. The VIE shall not be dissolved or liquidated without the written consent by Purong Information. This agreement shall remain in effect upon expiry or early termination of this agreement. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES- continued The VIE arrangements - continued Powers of Attorney Pursuant to the powers of attorney executed by the VIE and the VIE’s shareholders, each of them irrevocably authorized Purong Information to act on their respective behalf as exclusive agent and attorney, to the extent permitted by law, with respect to all rights of shareholders concerning all the equity interest and sponsor interest held by each of them in the VIE or its subsidiaries, including but not limited to proposing to convene or attend shareholder meetings, board meetings or council meetings, signing the resolutions and minutes of such meetings, exercising all the rights as shareholders or sponsors (including but not limited to voting rights, nomination rights, appointment rights, the right to receive dividends and the right to sell, transfer, pledge or dispose of all the equity or the sponsor interest held in part or in whole). Spousal Consent Letters Pursuant to the spousal consent letters executed by the spouses of certain shareholders of the VIE, the signing spouses confirm and agree to the execution of the exclusive call option agreement, the exclusive management services and business cooperation agreement, the powers of attorney and the equity pledge agreement described above by the applicable shareholders. They further undertake not to hinder the disposal of the equity and not to make any assertions in connection with the equity of the VIE held by the applicable shareholders, and confirm that the applicable shareholders can perform the relevant transaction documents described above and further amend or terminate such transaction documents without the authorization or consent from such spouse. The spouse of each applicable shareholder agrees and undertakes that if he/she obtains any equity of the VIE held by the applicable shareholders for any reasons, he/she would be bound by the transaction documents described above. Letters of Commitment Pursuant to the letters of commitment executed by the shareholders of Shanghai Trustbridge Investment Management Co., Ltd. (“Shanghai Trustbridge”) and the partners of Tianjin Puxian Education Technology LLP (“Puxian”) and Ningbo Meishan Bonded Port Area Zhimei Phase V Equity Investment Limited Partnership (“Ningbo Zhimei”), which are the shareholders of the VIE, all the shareholders of Shanghai Trustbridge and all the partners of Puxian and Ningbo Zhimei irrecoverably promise that they will not pledge, sell or dispose of the equity interest or the partnership interest in Shanghai Trustbridge, Puxian or Ningbo Zhimei held by them, respectively, grant a security interest or a priority right in such equity interest or partnership interest to any third party or enter into any transactions with the same economic results that may affect the priority of the equity pledge and the stable implementation of structural contracts, including the exclusive call option agreement, the exclusive management service and business cooperation agreement, the equity pledge agreement, the powers of attorney and the loan agreement. (iii) Risks in relation to VIE structure The Company believes that the contractual arrangements with Puxin Education and its shareholders are in compliance with existing PRC laws and regulations and are legally enforceable. However, the contractual arrangements are subject to risks and uncertainties, including: • Puxin Education and its shareholders may have or develop interests that conflict with the Group’s interests, which may lead them to pursue opportunities in violation of the aforementioned contractual agreements. If the Group cannot resolve any conflicts of interest or disputes between the Group and the shareholders of Puxin Education, the Group would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES- continued The VIE arrangements - continued • Puxin Education and its shareholders could fail to obtain the proper operating licenses or fail to comply with other regulatory requirements. As a result, the PRC government could impose fines, new requirements or other penalties on the VIE or the Group, mandate a change in ownership structure or operations for the VIE or the Group, restrict the VIE or the Group’s use of financing sources or otherwise restrict the VIE or the Group’s ability to conduct business. • The PRC government may declare the aforementioned contractual arrangements invalid. They may modify the relevant regulations, have a different interpretation of such regulations, or otherwise determine that the Group or the VIE have failed to comply with the legal obligations required to effectuate such contractual arrangements. • If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government may restrict or prohibit the Group’s business and operations in China. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Group may not be able to consolidate Puxin Education and its subsidiaries and schools in the consolidated financial statements as the Group may lose the ability to exert effective control over Puxin Education and its shareholders, and the Group may lose the ability to receive economic benefits from Puxin Education. The Group’s business has been directly operated by the VIE and its subsidiaries and schools. As of December 31, 2017 and 2018, the VIE and its subsidiaries and schools accounted for an aggregate of 99.6% and 59.4%, respectively, of the Group’s consolidated total assets, and 75.2% and 85.1% respectively of the Group’s consolidated total liabilities. The following financial information of the VIE and VIE’s subsidiaries and schools after the elimination of inter-company transactions and balances as of December 31, 2017 and 2018 and for the years ended December 31, 2016, 2017 and 2018 was included in the accompanying consolidated financial statements: As of December 31, 2017 2018 RMB RMB Cash and cash equivalents 160,274 232,608 Prepaid expenses and other current assets 128,928 121,145 Total current assets 299,723 363,412 Total assets 2,000,437 1,627,032 Total current liabilities 1,265,438 1,668,293 Total liabilities 1,625,964 1,862,278 For the years ended December 31, 2016 2017 2018 RMB RMB RMB Net revenues 439,181 1,282,562 2,219,638 Net loss (127,604 ) (331,621 ) (254,754 ) Net cash generated from (used in) operating activities 81,409 80,266 (81,041 ) Net cash used in investing activities (89,259 ) (141,025 ) (156,917 ) Net cash generated from financing activities 70,000 140,000 20,505 There are no consolidated VIE’s assets that are collateral for the VIE’s obligations and which can only be used to settle the VIE’s obligations. No creditors (or beneficial interest holders) of the VIE have recourse to the general credit of the Company or any of its consolidated subsidiaries. No terms in any arrangements, considering both explicit arrangements and implicit variable interests, require the Company or its subsidiaries to provide financial support to the VIE. However, if the VIE ever needs financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to the VIE through loans to the shareholders of the VIE or entrustment loans to the VIE. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. Actual results may differ from those estimates. The Group bases its estimates on past experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s financial statements include, but are not limited to, valuation allowance for deferred tax assets, useful lives of property, plant and equipment and intangible assets, impairment assessment of long-lived assets and goodwill, valuation of share-based compensation and payments, purchase price allocation for business acquisition and valuation of ordinary shares, convertible notes, derivative liabilities and warrants. Actual results may differ materially from those estimates. Principles of consolidation The accompanying consolidated financial statements include the financial information of the Group. All intercompany balances and transactions have been eliminated. Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of financial instruments, which consist of cash and cash equivalents, restricted cash, amounts due from related parties, other receivables, other payables, amounts due to related parties and short-term bank borrowings are recorded at cost which approximates their fair value due to the short-term nature of these instruments. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, amounts due from/to related parties, other receivables, other payables, short-term bank borrowings, convertible notes, promissory notes, derivative liabilities and warrants. Convertible notes Convertible notes for which the fair value option are elected are carried at fair value, with changes in fair value recognized in earnings. Convenience translation The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into USD using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets and the related consolidated statements of operations, comprehensive loss, change in (deficit) equity and cash flows from RMB into USD as of and for the year ended December 31, 2018 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.8755, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2018. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2018, or at any other rate. Cash and cash equivalents Cash and cash equivalents comprise cash at banks and on hand, which have original maturities of three months or less when purchased and are subject to an insignificant risk of changes in value. The carrying value of cash equivalents approximates market value. Restricted cash Restricted cash represents cash deposits in restricted bank accounts, required by local regulations, for operating schools. The deposits in restricted bank accounts cannot be withdrawn until these schools are closed. Restricted cash is classified as either current or non-current based on when the funds will be released in accordance with the terms of the respective agreement. Inventories Inventories, mainly consisting of textbooks, are stated at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. Property, plant and equipment, net Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Buildings 37 years Electronic equipment 3 years Motor vehicles 5 years Furniture and education equipment 5 years Leasehold improvement Shorter of lease term or estimated economic life 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Property, plant and equipment, net -continued Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant 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 assets and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statement of operations. Goodwill and intangible assets Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. Intangible assets with finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. Goodwill is tested for impairment annually at the end of the fourth quarter, or sooner if impairment indicators arise. In the evaluation of goodwill for impairment, the Group may perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is not, no further analysis is required. If it is, a prescribed two-step goodwill impairment test is performed to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit, if any. The first step in the two-step impairment test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The fair value of a reporting unit is estimated by applying valuation multiples and/or estimating future discounted cash flows. The selection of multiples is dependent upon assumptions regarding future levels of operating performance as well as business trends and prospects, and industry, market and economic conditions. When estimating future discounted cash flows, the Group considers the assumptions that hypothetical marketplace participants would use in estimating future cash flows. In addition, where applicable, an appropriate discount rate is used, based on an industry-wide average cost of capital or location-specific economic factors. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit). If the implied fair value of goodwill exceeds the carrying amount, goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. Based on the result of annual goodwill impairment assessment, no impairment charge was recognized for the years ended December 31, 2016, 2017 and 2018. Acquired intangible assets other than goodwill consist of student base, definite trademark, relationship with partnership school and franchise agreements, which are carried at cost, less accumulated amortization and impairment. The amortization periods are as follows: Student Base 2.2 - 7 years Trademark 5.4 years & Indefinite Relationship with partnership school 6.4 years Franchise agreement 3.4 years 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Goodwill and intangible assets -continued The Group has determined that certain trademarks do not have determinable useful lives. Consequently, the carrying amount of trademarks are not amortized but are tested for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. Such impairment test consists of a comparison of the fair value of the trademarks with their carrying amount and an impairment loss is recognized if and when the carrying amounts of the trademarks exceed their fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. No impairment loss was recorded during the years ended December 31, 2016, 2017, and 2018. Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. The Group did not record any impairment losses on its long-lived assets during the years ended December 31, 2016, 2017 and 2018. Revenue recognition Adoption of Accounting Standard Codification (“ASC”), “Revenue from Contracts with Customers” In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10, 2016-12 and 2016-20 (collectively ASU 2014-09). On January 1, 2018, the Group adopted Topic 606 applying the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Group recorded a net reduction to opening accumulated deficit of RMB48,316 as of January 1, 2018 due to the cumulative impact of adopting Topic 606. The impacts to revenue for the year ended December 31, 2018 were an increase of RMB7,064 as a result of adopting Topic 606. Revenues are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration that the Group expects to receive in exchange for those goods or services. The following table presents the Group’s revenues disaggregated by revenue sources. The Group’s revenue is reported net of discounts, value added tax and surcharges. For the years ended December 31, 2016 2017 2018 RMB RMB RMB Services: K-12 tutoring services - group class 298,733 611,268 817,843 K-12 tutoring services - personalized 71,979 272,880 364,554 Study-abroad test preparation services 59,145 334,288 860,687 Study-abroad consulting services 9,324 64,126 185,033 Total net revenues 439,181 1,282,562 2,228,117 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Revenue recognition -continued The following is a description of principal activities from which the Group generates revenue and related revenue recognition policies. ( i ) K-12 tutoring services The Group offers various types of after-school tutoring services to help students improve their academic performance and qualify for their desired schools and universities. The after-school tutoring services primarily consist of after-school group class courses and personalized tutoring courses. The K-12 tutoring services are accounted for as a single performance obligation. Tuition fees are generally collected in advance and are initially recorded as deferred revenue. Deferred revenue is recognized proportionately as the tutoring sessions are delivered. Tuition refunds are provided to students if they decide within the trial period that they no longer want to take the course. For some K-12 courses, the Group also offers refunds for any remaining classes to students who withdraw from the course. The refund is equal to the amount related to the undelivered class. The Group determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. (ii) Study abroad tutoring services • Study-abroad test preparation services The Group offers study abroad test preparation services to help students prepare for admission tests for high schools, universities and graduate programs in other countries. Tutoring fees are collected in advance and are initially recorded as deferred revenue which is recognized proportionately as the tutoring sessions are delivered. Students are entitled to certain trial class of the purchased course and course fee is fully refundable if a student decides not to take the remaining course after the trial class. No refund will be provided to a student who withdraws from a course after the trial period. The study-abroad test preparation services are accounted for as a single performance obligation. • Study-abroad consulting services The Group offers study abroad consulting services to provide quality advisory guidance for students who intend to study abroad. The Group charges each student an up-front prepaid fee based on the scope of consulting services requested by the student. Portion of the prepaid services fee are refundable if the student does not successfully gain admission, which are accounted for as variable consideration under Topic 606. The study-abroad consulting services are accounted for as a single performance obligation. The Group estimates the variable consideration to be earned and recognizes revenue over the service period. Remaining performance obligations represents the transaction price of contracts for which service has not been performed under study-abroad consulting services. As of December 31, 2018, the aggregate amount of the transaction price related to the remaining performance obligations was RMB188,357. The Group estimates that revenue RMB129,473 and RMB44,596 on the remaining performance obligations to be recognized over the next 12 and 24 months, respectively, with the remainder, at RMB14,288 , recognized thereafter. The contract liability consists of deferred revenue and refund liability. Arrangements with multiple performance obligations The Group’s contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices based on the prices charged to customers. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Revenue recognition -continued Impact of new revenue guidance on financial statement line items The following tables presented the impact of adoption of ASC 606 on the consolidated balance sheet and statement of operations as of and for the year ended December 31, 2018: For the year ended December 31, 2018, As Reported Balances without adoption of ASC 606 Effect of Change Higher/(Lower) RMB RMB RMB Net revenues 2,228,117 2,221,053 7,064 Cost of revenues 1,242,889 1,242,889 — Gross profit 985,228 978,164 7,064 Operating expenses: Selling expenses 848,088 848,088 — General and administrative expenses 775,883 775,883 — Total operating expenses 1,623,971 1,623,971 — Operating loss (638,743 ) (645,807 ) 7,064 Interest expense 51,901 51,901 — Interest income 2,826 2,826 — Foreign exchange loss 7,621 7,621 — Loss on changes in fair value of convertible notes, derivative liabilities and warrants 131,748 131,748 — Loss on extinguishment of convertible notes 900 900 — Loss before income taxes (828,087 ) (835,151 ) 7,064 Net loss (833,409 ) (840,473 ) 7,064 Net loss attributable to equity shareholders of Puxin Limited (833,411 ) (840,475 ) 7,064 Net loss per share attributable to equity shareholders of Puxin Limited Basic and diluted (5.78 ) (5.83 ) 0.05 As of December 31, 2018, As Reported Balances without adoption of ASC 606 Effect of Change Higher/(Lower) RMB RMB RMB Total assets 2,737,019 2,737,019 — Total liabilities 2,189,147 2,244,527 (55,380 ) Accrued expenses and other current liabilities - refund liabilities 92,960 — 92,960 Deferred revenue, non-current portion 121,191 243,683 (122,492 ) Deferred revenue, current portion 876,861 902,709 (25,848 ) Total shareholders’ equity 547,872 492,492 55,380 Accumulated deficit (1,469,303 ) (1,524,683 ) 55,380 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Revenue recognition -continued Practical expedients and exemptions The Group incurs sales commissions primarily for K-12 tutoring services and study-abroad test preparation services which are expensed when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. The Group does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Group recognizes revenue at the amount to which it has the right to invoice for services performed. Deferred revenue Deferred revenue primarily consists of tuition fees and consulting service fees received from customers for which the Group’s revenue recognition criteria have not been met. The deferred revenue will be recognized as revenue once the criteria for revenue recognition have been met. Value added taxes On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program were phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Businesses in the Pilot Program would pay VAT instead of business tax. Starting from May 1, 2016, the Pilot Program was promoted nationwide in a comprehensive manner in the PRC. With the implementation of the Pilot Program, the Group’s certain subsidiaries and schools are subject to VAT at the rate of 3%, as small scale VAT payer, and the remaining subsidiaries and schools are subject to VAT at the rate of 6%, as general VAT payer, which were all previously subject to business tax. The net VAT balance between input VAT and output VAT is recorded as accrued expenses and other current liabilities in the Group’s consolidated financial statements. Since May 2016, in accordance with Cai Shui [2016] No. 68, the nonacademic educational programs and services in short-term training schools are subject to a simple VAT collection method and apply for a 3% VAT rate. Therefore, the Group’s nonacademic educational programs and services in short-term training schools which were previously subject to business tax are now subject to VAT. Operating leases Leases where substantially all the rewards and risk of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statement of operations on a straight-line basis over the shorter of the lease term or estimated economic life of the leased property. Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Share-based compensation The Group measures the cost of employee share options based on the grant date fair value of the award and recognizes compensation cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options, the Group recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, the cost of the award is expensed on the grant date. The Group elects to recognize forfeitures when they occur. Comprehensive loss Comprehensive loss includes net loss and foreign currency translation adjustments. Comprehensive loss is reported in the consolidated statements of comprehensive loss. Net loss per share Net loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of common shares outstanding during the period. Diluted net loss per share is based upon the weighted average number of common shares and of common share equivalents outstanding when dilutive. Common share equivalents include: (i) outstanding stock options under the Company’s share incentive plan which are included under the treasury share method when dilutive, (ii) common shares to be issued under the assumed conversion of the Company’s outstanding convertible notes, which are included under the if-converted method when dilutive, and (iii) convertible redeemable participating preferred shares, which are included under the if-converted method when dilutive. The Group’s convertible redeemable participating preferred shares are participating securities as they participate in undistributed earnings on an as-if-converted basis. Accordingly, the Group uses the two-class method whereby undistributed net income is allocated on a pro rata basis to the ordinary shares and preferred shares to the extent that each class may share in income for the period; whereas the undistributed net loss for the period is allocated to ordinary shares only because the convertible redeemable participating preferred shares are not contractually obligated to share the loss. The computation of diluted net loss per share for the years ended December 31, 2016, 2017 and 2018 does not include common share equivalents, since such inclusion would be anti-dilutive. Contingency The Group is subject to lawsuits, investigations and other claims related to the operation of its schools. The Group is required to assess the likelihood of any adverse judgments or outcomes to these matters, as well as potential ranges of probable losses and fees. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. Significant risks and uncertainties Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the Peoples Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies, international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents and restricted cash denominated in RMB amounted to RMB184,752 and RMB279,162 as of December 31, 2017 and 2018, respectively. Concentration of credit risk Financial instruments that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents and prepayment and other current assets. As of December 31, 2017 and 2018, substantially all of the Group's cash and cash equivalents were deposited in financial institutions located in the PRC. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Recent accounting pronouncements not yet adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02” or “Topic 842”), which amends, among other things, the existing guidance by requiring lessees to recognize lease right-of-use assets (“ROU assets”) and liabilities (for lease payments) arising from operating leases on the balance sheet. For leases with a term of twelve months or less, ASU 2016-02 permits an entity to make an accounting policy election to not recognize a ROU asset nor lease liability, but rather to recognize such leases as lease expense, generally on a straight-line basis over the lease term. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which clarified various aspects of the guidance under ASU 2016-02. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Originally, entities were required to adopt ASU 2016-02 using a modified retrospective approach, which required prior periods to be presented under Topic 842. However, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which allows entities the option of recognizing the cumulative effect of applying Topic 842 as an adjustment to the opening balance of retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The Group has implemented a new lease management system that will facilitate the adoption of this standard and enable the Group to fulfill its requirements for both reporting and disclosure purposes, and the Group has reviewed and implemented the necessary changes to its existing policies, processes and controls to achieve appropriate compliance. The Group will adopt Topic 842 in the first quarter of 2019 using the modified retrospective transition approach allowed under ASU 2018-11, and will recognize any cumulative effect of applying the standard as an adjustment to the opening balance of retained earnings as of January 1, 2019. The Group will elect the practical expedients under ASU 2016-02 which includes the use of hindsight in determining the lease term and the practical expedient package to not reassess whether any expired or existing contracts are or contain leases, to not reassess the classification of any expired or existing leases, and to not reassess initial direct costs for any existing leases. The Group has evaluated the effect of the adoption of this ASU and expects the adoption will result in an increase in the assets and liabilities on the consolidated balance sheets for the operating leases and will have an insignificant impact on the consolidated statements of operations. In January 2017, FASB issued ASU No. 2017-04: Simplifying the Test for Goodwill Impairment. Under the new accounting guidance, an entity will no longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity will perform its goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value but not to exceed the total amount of the goodwill of the reporting unit. In addition, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment, if applicable. The provisions of the new accounting guidance are required to be applied prospectively. The new accounting guidance is effective for the company for goodwill impairment tests performed in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests performed after January 1, 2017. The Group is in the process of assessing the impact on its consolidated financial statements from the adoption of the new guidance. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to the Related Party Guidance for Variable Interest Entities. ASU 2018-17 changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity considers indirect interests he |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | 3. BUSINESS ACQUISITION Acquisition of Shanghai Pukuan On May 5, 2016, the Group acquired 100% equity interests in Shanghai Pukuan. The total consideration for the acquisition of Shanghai Pukuan amounted to RMB20,200 which included RMB19,600 in cash and the rest was in the form of warrant. The warrant was issued by the major shareholder of the Company to purchase the equity interest of Puxian which was recorded at fair value and accounted for as capital contribution to the Company by the shareholder. Shanghai Pukuan operates K-12 tutoring services in the PRC. The acquisition of Shanghai Pukuan’s training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Acquisition of Shanghai Pukuan -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Amortization period RMB Cash and cash equivalents 2,887 Prepaid expenses and other current assets 17,121 Restricted cash 1,120 Accrued expenses and other current liabilities (2,568 ) Deferred revenue (19,807 ) Intangible assets-student base 4,700 6.7 years Deferred tax liabilities (1,175 ) Goodwill 17,922 Total 20,200 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the economy of scale, increase in cross-selling opportunities as well as synergy resulting from the acquisition. Acquisition of Luoyang Pucai Education Technology Co., Ltd. (“Luoyang Pucai”) On July 31, 2016, the Group acquired 100% equity interests in Luoyang Pucai. The total consideration for the acquisition of Luoyang Pucai amounted to RMB27,900 which included RMB20,500 in cash and the rest was in the form of warrant. The warrant was issued by the major shareholder of the Company to purchase the equity interest of Puxian which was recorded at fair value and accounted for as capital contribution to the Company by the shareholder. Luoyang Pucai operates K-12 tutoring services in the PRC. The acquisition of Luoyang Pucai’s training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Acquisition of Luoyang Pucai Education Technology Co., Ltd. (“Luoyang Pucai”) -continued This transaction was considered a business acquisition and recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 2,494 Prepaid expenses and other current assets 8,113 Property, plant and equipment, net 42 3-5 years Accrued expenses and other current liabilities (640 ) Deferred revenue (10,105 ) Intangible assets-student base 2,800 4.4 years Deferred tax liabilities (700 ) Goodwill 25,896 Total 27,900 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the economy of scale, increase in cross-selling opportunities as well as synergy resulting from the acquisition. Acquisition of Xi’an Shanghe Culture Development Co., Ltd. (“Xi’an Shanghe”) On November 15, 2016, the Group acquired 100% equity interests in Xi’an Shanghe. The total consideration for the acquisition of Xi’an Shanghe amounted to RMB27,800 which included RMB25,200 in cash and the rest was in the form of warrant. The warrant was issued by the major shareholder of the Company to purchase the equity interest of Puxian which was recorded at fair value and accounted for as capital contribution to the Company by the shareholder. Xi’an Shanghe operates K-12 tutoring services in the PRC. The acquisition of Xi’an Shanghe’s training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Acquisition of Xi’an Shanghe Culture Development Co., Ltd. (“Xi’an Shanghe”) -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 3,998 Prepaid expenses and other current assets 5,874 Restricted cash 20 Property, plant and equipment, net 187 3-5 years Accrued expenses and other current liabilities (3,164 ) Deferred revenue (8,272 ) Intangible assets-student base 3,000 3.1 years Deferred tax liabilities (750 ) Goodwill 26,907 Total 27,800 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. Acquisition of Dalian Pude Education Consulting Co., Ltd. (“Dalian Pude”) On November 28, 2016, the Group acquired 100% equity interests in Dalian Pude. The total consideration for the acquisition of Dalian Pude amounted to RMB51,700 which included RMB47,000 in cash and the rest was in the form of warrant. The warrant was issued by the major shareholder of the Company to purchase the equity interest of Puxian which was recorded at fair value and accounted for as capital contribution to the Company by the shareholder. Dalian Pude operates K-12 tutoring services in the PRC. The acquisition of Dalian Pude’s training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Acquisition of Dalian Pude Education Consulting Co., Ltd. (“Dalian Pude”) -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 1,475 Prepaid expenses and other current assets 28,060 Property, plant and equipment, net 20 3-5 years Accrued expenses and other current liabilities (8,848 ) Deferred revenue (20,659 ) Intangible assets-student base 9,200 4.1 years Deferred tax liabilities (2,300 ) Goodwill 44,752 Total 51,700 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. Acquisition of Luzhou Puxin Culture Communication Co., Ltd. (“Luzhou Puxin”) On December 31, 2016, the Group acquired 100% equity interests in Luzhou Puxin. The total consideration for the acquisition of Luzhou Puxin amounted to RMB18,700 which included RMB14,300 in cash and the rest was in the form of warrant. The warrant was issued by the major shareholder of the Company to purchase the equity interest of Puxian which was recorded at fair value and accounted for as capital contribution to the Company by the shareholder. Luzhou Puxin operates K-12 tutoring services in the PRC. The acquisition of Luzhou Puxin’s training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Acquisition of Luzhou Puxin Culture Communication Co., Ltd. (“Luzhou Puxin”) -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 165 Prepaid expenses and other current assets 3,372 Property, plant and equipment, net 155 3-5 years Accrued expenses and other current liabilities (73 ) Deferred revenue (3,464 ) Intangible assets-student base 5,300 4 years Deferred tax liabilities (1,325 ) Goodwill 14,570 Total 18,700 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. Other acquisitions in 2016 In 2016, the Group acquired 100% equity interests in Jinan Qifa Education Consulting Co., Ltd, Nanjing Diyu, Shaoxing Puxin Education Consulting Co., Ltd, Ningbo Puxin Education Technology Co., Ltd, Chengdu Qidi Wanjuan Education Consulting Co., Ltd, Nanjing Dreams & Stars Information Consulting Co., Ltd, Shenzhen Davis Information Consulting Co., Ltd, Beijing Hope, Beijing Quakers Education Consulting Co., Ltd and Shenyang Being Modern Foreign Language School and acquired certain tutoring businesses from third parties (collectively “Other 2016 Acquirees”). The total consideration for the acquisitions of Other 2016 Acquirees amounted to RMB97,377 which included RMB84,677 in cash and the rest was in the form of warrant. The warrant was issued by the major shareholder of the Company to purchase the equity interest of Puxian which was recorded at fair value and accounted for as capital contribution to the Company by the shareholder. These acquired entities are in the operation of K-12 tutoring services and study abroad tutoring services in the PRC. The acquisitions of Other 2016 Acquirees’ training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Other acquisitions in 2016 -continued These transactions were considered business acquisitions and therefore were recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisitions. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 5,280 Prepaid expenses and other current assets 36,412 Restricted cash 100 Property, plant and equipment, net 1,193 3-5 years Accrued expenses and other current liabilities (4,880 ) Deferred revenue (42,910 ) Intangible assets-student base 14,300 2.5-7 years Deferred tax liabilities (3,575 ) Goodwill 91,457 Total 97,377 The tangible and intangible assets valuation for the acquisitions disclosed above were based on valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from these acquisitions. Acquisition of ZMN Education On July 31, 2017, the Group acquired 100% equity interests in ZMN Education. The total consideration for the acquisition of ZMN Education amounted to RMB135,850 which included RMB65,250 in cash and the rest was in the form of warrant. The warrant issued to the sellers which entitle them to purchase the ordinary shares of Long faith Limited, a shareholder of the Company, was recorded at fair value on acquisition date and accounted for as capital contribution to the Company by the Company’s shareholder. ZMN Education operates study abroad tutoring services in the PRC. The acquisition of ZMN Education’s service centers, with its well-known brand and strong teaching team, would further enhance the Group’s ability to provide high quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Acquisition of ZMN Education -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 21,407 Prepaid expenses and other current assets 13,266 Restricted cash 1,008 Property, plant and equipment, net 9,723 3-5 years Rental deposits 7,285 Deferred revenue (208,345 ) Account payables (564 ) Accrued expenses and other current liabilities (32,857 ) Loans from third parties (23,802 ) Intangible assets-trademark 32,400 5.4 years Deferred tax liabilities (8,100 ) Goodwill 324,429 Total 135,850 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. Acquisition of Beijing GEDU On August 16, 2017, the Group acquired 100% equity interest in Beijing GEDU for cash consideration of USD72,300 (equivalent to RMB483,687). Beijing GEDU operates study abroad tutoring services in the PRC. The acquisition of Beijing GEDU’s training centers, with its well-known brand and strong teaching team, would further enhance the Group’s ability to provide high-quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Acquisition of Beijing GEDU -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 89,437 Inventories 6,620 Prepaid expenses and other current assets 117,333 Restricted cash 14,332 Property, plant and equipment, net 132,844 2-37 years Deferred tax assets 2,547 Rental deposits 18,381 Accounts payable (6,197 ) Accrued expenses and other current liabilities (79,167 ) Income tax payable (2,505 ) Deferred revenue (221,484 ) Franchise deposits (7,344 ) Intangible assets-trademark 140,000 Indefinite Intangible assets-relationship with partnership school 5,300 6.4 years Intangible assets-franchise agreement 4,400 3.4 years Deferred tax liabilities (54,164 ) Goodwill 323,354 Total 483,687 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. Other acquisitions in 2017 In 2017, the Group acquired 100% equity interest in (i) a group of schools wholly owned by Chongqing Shunbo Technology Co., Ltd., (ii) Shenyang Pude Education Technology Co., Ltd., (iii) a school wholly owned by Mr. Bowen Zhang, (iv) Yancheng Tiantianxiangshang Education Training Co., Ltd., (v) Fuzhou Pude Education Technology Co., Ltd., (vi) a group of schools wholly owned by Hangzhou Shoumu Education Technology Co., Ltd., and acquired certain tutoring businesses from third parties (collectively “Other 2017 Acquirees”). The total consideration for the acquisitions of Other 2017 Acquirees amounted to RMB174,770 which included RMB155,170 in cash and the rest was in the form of warrant. The warrant was issued by the major shareholder of the Company to purchase the equity interest of Puxian which was recorded at fair value and accounted for as capital contribution to the Company by the shareholder. These acquired entities are in the operation of K-12 tutoring services and study abroad tutoring services in the PRC. The acquisitions of Other 2017 Acquirees’ training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Other acquisitions in 2017 -continued These transactions were considered business acquisitions and therefore were recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisitions. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 15,824 Inventories 256 Prepaid expenses and other current assets 13,221 Amounts due from related parties 63,194 Property, plant and equipment, net 1,377 3-5 years Accrued expenses and other current liabilities (12,388 ) Deferred revenue (85,197 ) Intangible assets-student base 27,100 3.5-5.9 years Deferred tax liabilities (6,775 ) Goodwill 158,158 Total 174,770 The tangible and intangible assets valuation for the acquisitions disclosed above were based on valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from these acquisitions. Acquisition of Shandong Zengyu On November 1, 2018, the Group acquired 100% equity interests in Shandong Zengyu. The total consideration for the acquisition of Shandong Zengyu amounted to RMB77,000 in cash. Shandong Zengyu operates K-12 tutoring services in the PRC. The acquisition of Shandong Zengyu’s training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Acquisition of Shandong Zengyu -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Amortization period RMB Prepaid expenses and other current assets 37,169 Property, plant and equipment, net 1,241 3-5 years Rental deposits 290 Accrued expenses and other current liabilities (2,219 ) Deferred revenue (35,534 ) Intangible assets-student base 6,700 2.2 years Deferred tax liabilities (1,675 ) Goodwill 71,028 Total 77,000 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the economy of scale, increase in cross-selling opportunities as well as synergy resulting from the acquisition. Other acquisitions in 2018 In 2018, the Group acquired 100% equity interest in Jinan Lixia Wise Tutoring School Ltd and acquired tutoring business from third parties (collectively “Other 2018 Acquirees”). The total consideration for the acquisitions of Other 2018 Acquirees amounted to RMB19,986 which included RMB19,266 in cash and the rest was in the form of warrant. The warrant was issued by Long belief Limited, a shareholder of the Company, to purchase 49,348 ordinary shares of the Company. Long belief Limited is a shareholding platform for acquisitions. Refer to Note 16. The warrant was recorded at fair value and accounted for as shares consideration of the acquisition paid by the Company itself. These acquired entities are in the operation of K-12 tutoring services and study abroad tutoring services in the PRC. The acquisitions of Other 2018 Acquirees’ training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 3. BUSINESS ACQUISITION -continued Other acquisitions in 2018 -continued These transactions were considered business acquisitions and therefore were recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisitions. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 54 Prepaid expenses and other current assets 8,504 Restricted cash 200 Accrued expenses and other current liabilities (769 ) Deferred revenue (8,704 ) Intangible assets-student base 1,100 3.5 years Deferred tax liabilities (275 ) Goodwill 19,876 Total 19,986 The tangible and intangible assets valuation for the acquisitions disclosed above were based on valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from these acquisitions. The following information summarizes the results of operations attributable to the acquisitions included in the Group’s consolidated statement of operations since the acquisition date: For the year ended December 31, 2016 Shanghai Pukuan Luoyang Pucai Xi’an Shanghe Dalian Pude Luzhou Puxin Others RMB RMB RMB RMB RMB RMB Net revenues 24,430 12,420 4,139 4,089 — 94,313 Net income (loss) (1,610 ) (604 ) 319 (1,154 ) — (17,277 ) For the year ended December 31, 2017 ZMN Education Beijing GEDU Others RMB RMB RMB Net revenues 39,867 197,853 114,601 Net (loss) (59,169 ) (74,370 ) (13,096 ) For the year ended December 31, 2018 Shandong Zengyu Others RMB RMB Net revenues 8,074 4,495 Net (loss) (1,362 ) (27 ) 3. BUSINESS ACQUISITION -continued Pro forma information of acquisitions The following unaudited pro forma information summarizes the results of operations of the Group for the year ended December 31, 2016 assuming that the acquisition of Shanghai Pukuan, Luoyang Pucai, Xi'an Shanghe, Dalian Pude, Luzhou Puxin and Other 2016 Acquirees which were completed in 2016 occurred as of January 1, 2016. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the year ended December 31, 2016 RMB Unaudited pro forma net revenues 640,094 pro forma net (loss) (137,567 ) The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2016 and 2017 assuming that the acquisition of ZMN Education, Beijing GEDU and Other 2017 Acquirees which were completed in 2017 occurred as of January 1, 2016. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the years ended December 31, 2016 2017 RMB RMB Unaudited Unaudited pro forma net revenues 1,318,811 1,882,032 pro forma net (loss) (281,853 ) (511,354 ) The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2017 and 2018 assuming that the acquisition of Shandong Zengyu and Other 2018 Acquirees which were completed in 2018 occurred as of January 1, 2017. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the years ended December 31, 2017 2018 RMB RMB Unaudited Unaudited pro forma net revenues 1,392,146 2,317,937 pro forma net (loss) (389,366 ) (824,909 ) |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 4. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of December 31, 2017 2018 RMB RMB Prepaid rental expenses 71,324 63,134 Prepaid other service fees 45,478 45,415 Staff advances 8,811 11,125 Others 6,860 8,964 132,473 128,638 |
Plant and Equipment, Net
Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 5 . PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following: As of December 31, 2017 2018 RMB RMB Buildings 87,792 87,792 Electronic equipment 46,136 67,637 Motor vehicles 10,379 9,652 Furniture and education equipment 45,334 38,994 Leasehold improvement 100,670 163,879 Total 290,311 367,954 Less: Accumulated depreciation (69,099 ) (119,153 ) 221,212 248,801 Depreciation expenses were RMB3,735, RMB20,545 and RMB57,696 for the years ended December 31, 2016, 2017 and 2018, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. INTANGIBLE ASSETS Intangible assets consisted of the following: As of December 31, 2017 2018 RMB RMB Student base 97,054 104,854 Trademark 172,400 172,400 Relationship with partnership school 5,300 5,300 Franchise agreement 4,400 4,400 Total 279,154 286,954 Less: Accumulated amortization (35,227 ) (67,976 ) 243,927 218,978 Amortization expenses were RMB10,158, RMB23,644 and RMB32,749 for the years ended December 31, 2016, 2017 and 2018, respectively. As of December 31, 2018, the Group expects to record amortization expenses related to intangible assets RMB30,443, RMB25,842, RMB13,117, RMB8,565 and RMB957 for the years ended December 31, 2019, 2020, 2021, 2022, 2023, respectively, and RMB54 thereafter. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL | 7 . GOODWILL The Group has two reporting units that carry goodwill. The changes in carrying amount of goodwill for the years ended December 31, 2017 and 2018 were as follows: As of December 31, 2017 2018 RMB RMB Costs: Beginning balance 346,972 1,152,913 Acquisition of subsidiaries and schools 805,941 90,904 Ending balance 1,152,913 1,243,817 Goodwill impairment loss — — Goodwill, net 1,152,913 1,243,817 The Company performed a goodwill impairment analysis as of December 31, 2018. When determining the fair value of reporting units, including K-12 tutoring services and study abroad tutoring services, the Company used a discounted cash flow model that included a number of significant unobservable inputs. Key assumptions used to determine the estimated fair value include: (a) internal cash flows forecasts including expected revenue growth, operating margins and estimated capital needs, (b) an estimated terminal value using a terminal year long-term future growth rate determined based on the growth prospects of the reporting unit; and (c) a discount rate that reflects the weighted-average cost of capital adjusted for the relevant risk associated with the reporting unit's operations and the uncertainty inherent in the Company's internally developed forecasts. Based on the Company's assessment as of December 31, 2018, the fair value of K-12 tutoring services and study abroad tutoring services reporting units exceeded its carrying value, respectively. The Group did not record impairment of goodwill for the years ended December 31, 2016, 2017 and 2018. |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 8 . ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The components of accrued expenses and other current liabilities were as follows: As of December 31, 2017 2018 RMB RMB Salary and welfare payable 178,078 216,671 Refund liabilities (Note a) — 92,960 Accrued expenses 50,941 48,447 Consideration payable in connection with business acquisitions 68,199 48,128 Advance from third parties (Note b) 23,802 79,500 Other tax payable 9,578 23,264 Payables for purchase of property, plant and equipment 1,253 1,332 Others 18,595 5,321 350,446 515,623 Note a : Refund liabilities represented estimated amounts of service fee collected that is subject to refund to the customers related to K-12 tutoring services and study abroad tutoring services. Note b: ZMN Education entered into loan agreements with two individuals in 2013 and 2015 at the amount of RMB10,000 and RMB13,802, respectively, which were fully repaid as of December 31, 2018. 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES -continued In 2018, Puxin Education entered into loan agreements amounted to RMB29,500 with a third party, the annual interest rate ranged from 8.2% to 9% and the term of the loans was 12 months, Taiyuan Puxin Arts and Mr. Yunlong Sha were joint guarantors under the loan agreements. Taiyuan Puxin Arts also entered into loan agreements amounting of RMB50,000 with the third party, the annual interest rate ranged from 8.2% to 8.8% and the term of the loans was 6 months, Puxin Education and Mr. Yunlong Sha were joint guarantors under the loan agreements. Puxin Education entered into four other loan agreements in a total amount of RMB60,000 with third parties. The annual interest rates ranged from nil to 5.655% and the terms of the loans ranged from 1 month to 3 months. For one of the loans amounted to RMB30,000, Mr. Yunlong Sha was guarantor under the loan agreement. The four loans are fully repaid as of December 31, 2018. For the year ended December 31, 2018, the Group recognized interest expense of RMB2,433 for the loans. |
Bank Borrowings
Bank Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Bank Borrowings | 9 . BANK BORROWINGS In April 2018, Dalian Xigang Tongfang Technology Culture Training School ("Dalian Tongfang") entered into a bank borrowing agreement amounted to RMB10,000 with Shanghai Pudong Development Bank ("SPD Bank"). The annual interest rate was 6.3% and the term of the bank borrowing was 12 months. Puxin Education, Mr. Yunlong Sha and Ms. Wenjing Song were joint guarantors under the bank borrowing agreement. In November 2018, Puxin Education entered into a bank borrowing agreement amounting of RMB96,600 with SPD Bank. The annual interest rate was 4.35% and the term of the bank borrowing was 6 months. Prepshine HK acted as the pledger under the bank borrowings agreement. In 2018, Puxin Education entered into a series of borrowing agreements amounted to RMB4,273 with Bank of Jiangsu. The annual interest rates were 6.525% and the terms of the bank borrowings were 12 months. As of December 31, 2018, all of the borrowing are fully repaid ahead of maturity date. For the year ended December 31, 2018, the Group recognized interest expense of RMB1,148 for these bank borrowings. |
Convertible Notes
Convertible Notes | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 10 CONVERTIBLE NOTES Notes issued to Huazhong In June 2017, Puxin Education and Mr. Yunlong Sha entered into a convertible note investment agreement with Jiangyin Huazhong Investment Management Co., Ltd. (“Huazhong”). Pursuant to this agreement, Huazhong provides a credit facility in an amount up to RMB300,000 to Puxin Education and has the right to elect to convert the unpaid and outstanding amount under the credit facility into ordinary shares of Puxin Limited upon its initial public offering. The conversion price per ordinary share will be equal to 90%, 80% and 70% of the public offering price of the ordinary shares if the public offering application is submitted before or by December 31, 2018, between January 1 and December 31, 2019, or between January 1 and December 31, 2020, respectively. If IPO fails to occur before or by December 31, 2020, the note could be converted to shares. As of December 31, 2017, Puxin Education had drawn down a principal amount of RMB140,000 under the credit facility. On February 5, 2018, Puxin Education made another draw-down of RMB50,000. The note bears a simple annual interest rate of 12% and has a maturity term of 22 months since the date the issuer received the first proceed and can be extended for another 36 months. Pursuant to the agreement, Puxin Education committed to guarantee Huazhong an Internal Rate of Return (“IRR”) of no less than 18% per annual if Huazhong chooses to withdraw earlier or by the 58th months of investment. Puxin Education is obligated to pay the compensation amount equals to the shortfall to Huazhong. However, if for 20 consecutive trading days, the weighted average trading price provides Huazhong an IRR of above 30%, Puxin Education is no longer liable for the compensation. In the event of (1) certain misconduct by the Company, (2) the Company establishes the planned VIE structure in contemplating a IPO overseas and the Huazhong decided not to convert the note into the shares of the Company, or (3) the total net profits in aggregation of the Company from 2017 to 2019 is less than RMB950,000, Huazhong has the option to demand Puxin Education to redeem the note at a price equal to the principal amount plus any accrued unpaid interest at a rate of 18% per annum. The fair value option was elected for the convertible note. As of December 31, 2017, the fair value of the convertible note was RMB150,200. Changes in fair value of RMB10,200 were recorded in the consolidated statements of operations for the year ended December 31, 2017. 10 CONVERTIBLE NOTES -continued Notes issued to Huazhong -continued In February 2018, the Company entered into an amendment agreement with Huazhong, Mr. Yunlong Sha, Puxin Education and China Central International Asset Management Co., Ltd. (“China Central International”, Huazhong’s related party company). Pursuant to the amendment agreement, Huazhong waived its conversion rights to the note, in return, the Company issued warrants to China Central International, with the total exercise amount equal to the convertible note of RMB190,000 issued by Puxin Education to Huazhong. The exercise price of warrants is the same as the conversion price stipulated in the original convertible note agreement. These warrants shall be exercisable (i) from the completion of an IPO and the expiration of three months lock-up period that China Central International is subject to; or (ii) after December 31, 2020. The amendment of the convertible note to Huazhong was accounted for as an extinguishment of the original convertible note, and issuance of a new note and warrants. With the assistance from an independent third party appraiser, as of the amendment date, the fair value of the original convertible note, the new note and the warrants were RMB207,300, RMB193,400 and RMB14,800, respectively. A loss of RMB900 was recorded in the consolidated statements of operations for the year ended December 31, 2018, which was measured as the difference between the reacquisition price of convertible notes (represented by the fair value of the new note and the warrants) and the carrying amount of the extinguished convertible note. Loss on changes in the convertible note’s fair value of RMB7,100 from January 1, 2018 to the amendment date were recorded in the consolidated statements of operations for the year ended December 31, 2018. Pursuant to the warrants agreement, up until 58 months from the original date of drawdown, if the aggregate profit received by the warrants holder in selling the warrants shares (the “Actual Return”) is less than a minimum return calculated based on certain formula (the “Minimum Return”), the Company shall cause Mr. Yunlong Sha and/or Puxin Education to compensate the warrants holder in cash for the difference between the Actual Return and the Minimum Return. The warrants were recorded as a liability at fair value on issuance date, and subsequently marked to market at each reporting period end. As of December 31, 2018, the fair value of the warrants were RMB nil. Gain on changes in fair value of RMB14,800 were recorded in the consolidated statements of operations for the year ended December 31, 2018. No warrants were exercised or expired for the year ended December 31, 2018. Notes issued to Haitong On August 4, 2017, Puxin Limited issued convertible note at the principle amount of USD25,000 (equivalent to RMB168,180) to Haitong International Investment Holdings Limited (“Haitong”). The note has a maturity term of 5 years since the date of the note. The convertible note bears a compound interest rate of 12% per annum. If the Company’s IPO occurs before or by June 30, 2019, the convertible note will be automatically converted into Puxin Limited ordinary shares upon completion of the IPO. The conversion price per ordinary share will be equal to 70%, 65% or 60% of the offering price of the ordinary shares if the IPO is completed before or by December 31, 2018, between January 1 and March 31, 2019, or between April 1 and June 30, 2019, respectively. If IPO fails to occur before or by June 30, 2019, the convertible note will be automatically converted into redeemable and convertible preferred shares on July 1, 2019 except that Haitong notifies the Company of its decision to choose repayment in cash for the principal and accrued interest at least 5 business days prior to June 30, 2019. If the Company contemplates a change-in-control transaction (“trade sale”) prior to full repayment of the note, Haitong shall have the right to (i) declare all indebtedness under this note become immediately due and payable in full on or prior to the closing of the trade sale; (ii) convert all such indebtedness into such number of converted preferred shares calculated by dividing the outstanding principal amount by the applicable preferred share conversion price on or prior to the closing of the trade sale. The Company elected the fair value option for the convertible note. Upon the completion of the Company’s IPO, the convertible notes issued to Haitong automatically converted into 4,201,681 ordinary shares at the conversion prices of USD5.95, which equal to 70% of the IPO price of the ordinary shares. As of December 31, 2017 and 2018, the fair value of the convertible note was USD29,000 (equivalent to RMB188,682) and nil, respectively. Loss on changes in fair value of USD4,000 (equivalent to RMB27,028) and USD6,714 (equivalent to RMB42,792) were recorded in the consolidated statements of operations for the years ended December 31, 2017 and 2018, respectively. 10 CONVERTIBLE NOTES -continued Notes issued to CICC On September 29, 2017, Puxin Limited issued convertible note at the principle amount of USD23,000 (equivalent to RMB153,026) to CICC ALPHA Eagle Investment Limited (“CICC ALPHA”). The note bears a simple annual interest rate of 15% and has a maturity term of 4 years since the date of the note. If the Company’s IPO occurs before or by June 30, 2020, CICC ALPHA has the right to convert all or any part of the outstanding principal amount into ordinary shares upon completion of the IPO. The conversion price per ordinary share will be equal to 70% or 55% of the public offering price of the ordinary shares if the Company’s IPO is completed before or by June 30, 2019 or between July 1, 2019 and June 30, 2020, respectively. The portion of the outstanding principal amount that CICC ALPHA elects not to be converted into the Company’s ordinary share will be redeemed and repurchased by the Company on the completion of the IPO at a redemption price calculated based on a compound interest rate of 15% per annum. If IPO fails to occur before or by June 30, 2020, CICC ALPHA has the right to convert all or any part of the outstanding amount into preferred shares. In the event of default, CICC ALPHA may request the Company to immediately redeem the convertible note. Pursuant to the agreement, if after IPO, the IRR of the notes holder upon exit is below 25%, the founder, Mr. Yunlong Sha should compensate CICC ALPHA for the shortfall (“Floor Return”). If the IRR of CICC ALPHA exceeds 30%, CICC ALPHA shall pay Mr. Yunlong Sha certain awards (“Founder Awards”). The features of Founder Awards and Floor Return are freestanding derivatives that are required to be separately accounted for as derivative liabilities under ASC 815. The Company elected the fair value option for the convertible note. Upon the completion of the Company’s IPO, CICC ALPHA exercised its conversion right. The convertible notes issued to CICC ALPHA has been converted into 3,865,547 ordinary shares at the conversion prices of USD5.95 which equal to 70% of the IPO price of the ordinary shares. As of December 31, 2017 and 2018, the fair value of the derivative liabilities was USD2,800 (equivalent to RMB18,218) and USD9,300 (equivalent to RMB63,942), respectively. Changes in fair value of derivative liabilities were USD100 (equivalent to RMB676) and USD6,500 (equivalent to RMB44,288) in the consolidated statements of operations for the years ended December 31, 2017 and 2018. The convertible note consideration received were allocated between the convertible notes and two derivatives using the residual value method. As of December 31, 2017 and 2018, the fair value of the convertible note was USD24,640 (equivalent to RMB160,310) and nil, respectively. Changes in fair value aggregated to USD4,800 (equivalent to RMB32,432) and USD8,217 (equivalent to RMB52,368) were recorded in the consolidated statements of operations for the years ended December 31, 2017 and 2018. As part of the agreements with the noteholders, the Company and Puxin Education pledged certain equity interest of themselves and its subsidiaries of the Group as described in Note 20. The convertible notes agreements also contain covenants customary for a financing of this size and nature. |
Promissory Notes
Promissory Notes | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
PROMISSORY NOTES | 1 1 . PROMISSORY NOTES On August 4, 2017, the Company issued promissory note at the principle amount of USD25,000 (equivalent to RMB168,180) to Haitong. The note bears a simple annual interest rate of 8% and has a maturity term of 2 years from the date of issuance. As disclosed in Note 10, the amendment of the convertible notes to Huazhong was accounted for as an extinguishment of the original convertible notes and issuance of a new note at the same principal amount of RMB190,000. For the new note, Puxin Education will repay the principle and interest to Huazhong as stipulated in the amendment agreement. The new note bears a simple annual interest rate of 12% and has a maturity term of 22 months since the original date the issuer received the first proceed and can be extended by Puxin Education for another 36 months. If China Central International exercises the warrant, it should surrender the warrant to the Company and make payment to the Company of an amount equal to exercise price in cash, within 5 business days upon the full payment of the principal and all the interests accrued on the principal, or at the option of China Central International, within 5 business days upon the Company’s receipt of the note of exercise. For the years ended December 31, 2017 and 2018, the Group recognized interest expense of RMB5,556 and RMB32,026 for the notes, respectively. 1 1 . PROMISSORY NOTES -continued The carrying value of promissory notes approximate its fair value, as interest rate approximates market rate. The fair value of promissory notes was determined as present value of the notes using market interest rate. The promissory notes was categorized in Level 2 of the fair value hierarchy. As part of the agreements with the noteholders, the Company and Puxin Education pledged certain equity interest of themselves and its subsidiaries of the Group as described in Note 20. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 12 . FAIR VALUE MEASUREMENT Measured or disclosed at fair value on a recurring basis The Group measured its financial assets and liabilities, including cash and cash equivalents, restricted cash, amounts due from/to related parties, other receivables, other payables, short-term bank borrowing, convertible notes, promissory notes, derivative liabilities and warrants at fair value on a recurring basis as of December 31, 2017 and 2018. Cash and cash equivalents and restricted cash are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. The Group determines the fair value of convertible notes, derivative liabilities and warrants, with the assistance of an independent third-party appraiser, based on Level 3 inputs. To determine the fair value of the convertible notes, the Group used probability expected return method. To determine the fair value of derivative liabilities, the Group used binomial model. To determine the fair value of warrants, the Group used modified discount cash flow model. The key assumptions used in valuation of convertible notes are summarized in the table below: For the years ended December 31, 2017 2018 Probability for conversion 80 % 80 % Probability for redemption 20 % 20 % Remaining life 2.5 – 4.8 2.3 – 4.3 The key assumptions used in valuation of derivative liabilities are summarized in the table below: For the years ended December 31, 2017 2018 Probability for conversion 80 % 100 % Exit period 2018/6/30 – 2019/6/30 2018/6/30 – 2019/6/30 Volatility 40 % 54 % The key assumptions used in valuation of warrants are summarized in the table below: For the year ended December 31, 2018 Probability for conversion — Conversion price discount rate 90% 12 . FAIR VALUE MEASUREMENT -continued Measured or disclosed at fair value on a recurring basis -continued Fair Value Measurement as of December 31, 2018 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents 778,006 — — 778,006 Restricted cash 40,971 — — 40,971 Promissory notes — 361,888 — 361,888 Derivative liabilities — — 63,942 63,942 Total 818,977 361,888 63,942 1,244,807 Fair Value Measurement as of December 31, 2017 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents 164,684 — — 164,684 Restricted cash 24,478 — — 24,478 Convertible notes — — 499,192 499,192 Promissory notes — 162,658 — 162,658 Derivative liabilities — — 18,218 18,218 Total 189,162 162,658 517,410 869,230 The carrying amounts of amounts due from/to related parties, other receivables, other payables and short-term bank borrowing approximate their fair values due to their short-term maturity. The following is a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2016, 2017 and 2018: Convertible notes Derivative liabilities Warrants Balance as of January 1, 2016 and 2017 — — — Issuance of convertible notes 443,242 17,964 — Changes in fair value 69,660 676 — Payment of interest (2,998 ) — — Exchange rate effect (10,712 ) (422 ) — Balance as of December 31, 2017 499,192 18,218 — Issuance of convertible notes 50,000 — — Extinguishment of convertible notes (207,300 ) — — Issuance of warrants — — 14,800 Conversion to ordinary shares (438,720 ) — — Changes in fair value 102,260 44,288 (14,800 ) Exchange rate effect (5,432 ) 1,436 — Balance as of December 31, 2018 — 63,942 — 12 . FAIR VALUE MEASUREMENT -continued Measured or disclosed at fair value on a non-recurring basis The Group measures goodwill at fair value on a nonrecurring basis when it is annually evaluated or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group measures purchase price allocation at fair value on a nonrecurring basis as of the acquisition dates. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 1 3 . SHARE-BASED COMPENSATION In December 2014, Puxin Education approved the 2014 Great Talent Share Incentive Plan (“2014 Great Talent Plan”) which provides for the grant of options to eligible employees of the Group. Under 2014 Great Talent Plan, the maximum aggregate number of units of equity interest of Puxin Education that may be issued shall not exceed 158,400,000. The term of the option shall not exceed 7 years from the date of the grant. The options will vest in accordance with the vesting schedules set out in the respective share option agreements with vesting period ranged from 0 to 5 years. In conjunction with the reorganization, as disclosed in Note 1, the Company adopted the 2018 Great Talent Share Incentive Plan (“2018 Great Talent Plan”), which was approved by the board of directors of the Company to replace the 2014 Great Talent Plan. To facilitate the share incentive plan, the Company established an employee shareholding platform (the “Share Holding Platform”). The purpose of the Share Holding Platform is to allow employees of the Group to receive vehicle share incentives. Long favor Limited (“Long favor”), a British Virgin Islands company was established as a holding vehicle for the Group’s Share Holding Platform. Mr. Yun Xiao, a shareholder of the Company serves as the sole shareholder of the Share Holding Platform. Long favor has no activities other than administrating the plan and does not have any employees. On behalf of the Group and subject to approval of board of director of the Company, Mr. Yun Xiao, as the sole shareholder of Long favor, has the authority and responsibility to process the eligible participants to whom awards will be granted, number of shares, terms and conditions of such awards. All shares held by the Share Holding Platform are solely for purpose of future issuance of share incentive options to employees once they exercise, and have been treated as treasury shares in the consolidated financial statements. The terms of the 2018 Great Talent Plan are substantially the same as those under the 2014 Great Talent Plan, except that the number of options and exercise price were adjusted on a diluted basis in accordance to the shares number of the Company upon the reorganization. As a result, none of the options terms were modified. In February 2018, the Company approved the 2018 Grand Talent Share Incentive Plan (“2018 Grand Talent Plan”) which provides for the grant of options to eligible employees of the Group. Under 2018 Grand Talent Plan, the maximum aggregate number of shares that may be issued shall not exceed 16,400,000. 1 3 . SHARE-BASED COMPENSATION -continued In March 2018, the Company granted 16,400,000 options under the 2018 Grand Talent Plan for an exercise price of USD7.78 (RMB48.78). The term of the option is fixed and shall not exceed 10 years from the date of the grant. The options will vest in accordance with the vesting schedules set out in the respective share option agreements with vesting period ranged from 0 to 6 years. The Company determined the estimated fair value of the options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm, with the following assumptions used in the years ended December 31, 2016, 2017 and 2018. For the years ended December 31, Grant date 2016 2017 2018 Risk-free interest rate 1.94%-2.92% 2.84%-2.97% 3.40 % Volatility 47% 45%-47% 46 % Dividend yield — — — Exercise multiples 2.2-2.8 2.2-2.8 2.2-2.8 Life of options 7.0 7.0 7.0 Fair value of underlying ordinary shares 23.66-28.23 29.46-48.31 49.67 ( 1). Risk-free interest rate Risk-free interest rate was estimated based on the daily treasury long term rate of the U.S. Treasury Department with a maturity period close to the expected term of the options, plus the country default spread of China. (2). Volatility The volatility of the underlying ordinary shares during the lives of the options was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the options. (3). Dividend yield The dividend yield was estimated by the Group based on its expected dividend policy over the expected term of the options. (4). Exercise multiples Exercise multiple represents the value of the underlying share as a multiple of exercise price of the option which, if achieved, results in exercise of the option. (5). Life of options Life of options is extracted from option agreements. (6). Fair value of underlying ordinary shares The estimated fair value of the ordinary shares underlying the options as of the respective grant dates was determined based on a valuation with the assistance of a third party appraiser. 1 3 . SHARE-BASED COMPENSATION -continued The activity in stock options during years ended December 31, 2016, 2017 and 2018 was set out below: Outstanding options Number of options Weighted average exercise price Weighted average grant date fair value Weighted average remaining contractual term (years) Aggregate intrinsic value Options outstanding at January 1, 2016 3,061,880 0.27 10.00 5.69 Granted 2,526,338 0.49 25.38 6.62 Exercised 1,468,620 0.50 25.35 6.62 Options outstanding at December 31, 2016 4,119,598 0.32 13.96 5.92 114,959 Granted 3,301,140 20.46 27.53 6.61 Exercised 828,200 0.36 35.79 6.46 Forfeited 27,044 26.20 25.01 6.57 Options outstanding at December 31, 2017 6,565,494 10.33 17.99 5.57 249,333 Granted 16,400,000 48.78 24.20 6.25 Exercised 34,112 0.35 24.45 4.43 Forfeited 464,009 33.39 22.50 5.64 Options outstanding at December 31, 2018 22,467,373 37.77 22.51 5.78 84,969 Options vested and expected to vest as of December 31, 2018 22,467,373 37.77 22.51 5.78 84,969 Option exercisable as of December 31, 2018 13,896,097 40.35 22.58 5.86 48,409 Total intrinsic value of options exercised for the years ended December 31, 2016, 2017 and 2018 were RMB40,718, RMB39,716 and RMB681, respectively. The total fair value of options vested during the years ended December 31, 2016, 2017 and 2018 was RMB37,223, RMB29,645 and RMB302,331, respectively. For share options that vest on grant date, the cost of award is expensed on the grant date. For the graded vesting share options, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. The Company recorded share-based compensation expenses of RMB51,263, RMB55,835 and RMB345,503 for the years ended December 31, 2016, 2017 and 2018, respectively. As of December 31, 2018, there was RMB121,153 of share-based compensation related to stock options that is expected to be recognized over a weighted average period of 3.45 years. In November 2018, the Company granted 1,631,200 restricted shares to certain employees. These shares are fully vested and outstanding shares whose transferability is restricted for 6 months. Before the removal of such restrictions, the holders of the restricted shares shall be entitled to all rights and privileges of those of ordinary shareholders, and shall be entitled to voting rights and dividends. Therefore, these restricted shares are considered participating securities for the purpose of net loss per share calculation. The grant-date value of a restricted share was USD2.6, which was determined based on the closing price of the Company’s American depositary shares (“ADSs”) on NYSE on November 20, 2018. The Company recorded share-based compensation expenses of USD4,241 (equivalent to RMB29,454) for the year ended December 31, 2018. |
Convertible Redeemable Preferre
Convertible Redeemable Preferred Shares | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Convertible Redeemable Preferred Shares | 1 4 . CONVERTIBLE REDEEMABLE PREFERRED SHARES In 2015, Puxin Education issued 12.267% of equity interest with preferential feature to Shanghai Trustbridge for a total consideration of RMB120,000, with RMB50,000 and RMB70,000 received in 2015 and early 2016, respectively. In part of the reorganization as disclosed in Note 1, Shanghai Trustbridge sold 5% of equity interest with preferential feature to Mr. Yunlong Sha and 3.6335% of equity interest with preferential feature to one of its related party Ningbo Zhimei. Mr. Yunlong Sha repurchased the equity interest on behalf of the Group. This was accounted for as a share repurchase and the difference between the carrying amount of RMB48,912 and consideration was charged to additional paid-in capital. As part of the recapitalization, Shanghai Trustbridge and Ningbo Zhimei then exchanged all of their equity interests with preferential feature of Puxin Education into 5,958,940 and 5,958,940 Series A convertible redeemable preferred shares (“Series A Shares”) of Puxin Limited to Trustbridge Partners VI, L.P. and Fasturn Overseas Limited, respectively, who are their respective overseas related party Companies. The terms of the Series A shares effectively mirrored those of the equity interest with preferential feature. As this transaction represented an exchange as opposed to an extinguishment of preferred shares, only the change in fair value required accounting. The Company calculated the increase in fair value of Series A Shares compared to the initial equity interest with preferential feature and concluded the increase was insignificant. Key terms of Series A Shares are summarized as follows: Voting Rights The holders of Series A Shares and ordinary shares shall vote together based on their shareholding ratio. Dividends If the Board of Directors decides to pay dividends, the holders Series A Shares have same right as ordinary shares to obtain dividends calculated by the proportion of equity interest they hold. Redemption Upon the occurrence of events including a non-occurred qualified IPO by December 31, 2019, ceasing work or breaking of competition covenant by the founders, and significant violation of the agreement with holders of Series A Shares, the Company shall redeem all the respective outstanding Series A Shares. The redemption price shall be a return at a rate of 8% per annum compounded annually from the applicable investment date to the date on which the applicable redemption amount is paid in full. The redemption value of the convertible redeemable preferred shares was RMB140,183 and RMB nil as of December 31, 2017 and 2018, respectively. Liquidation In the event of liquidation, the holders of Series A Shares shall be entitled to receive, prior to the holders of ordinary shares, the relevant amount at a rate of 8% per annum compounded annually from the applicable investment date to the date on which the applicable redemption amount is paid in full. In the event of insufficient funds available to pay in full the preference amount in respect of Series A Shares, the entire assets and funds of the Company legally available for distribution to the holders of Series A Shares shall be distributed on a pro rata basis among the holders of Series A Shares in proportion to issued price. Conversion The holders of the Series A Shares shall have the rights described below with respect to the conversion of the Series A Shares into Ordinary Shares: 1 4 . CONVERTIBLE REDEEMABLE PREFERRED SHARES -continued Conversion -continued Conversion Ratio The number of ordinary shares to which a holder shall be entitled upon conversion of each Series A Shares shall be the quotient of the per share issue price divided by the then effective Series A Shares conversion price, which shall initially be the per share issue price, resulting in an initial conversion ratio for Series A Shares of 1:1. Optional Conversion Any Series A Shares may, at the option of the holder thereof, be converted at any time after the date of issuance of such shares, without the payment of any additional consideration, into fully-paid and non-assessable ordinary shares based on the then-effective conversion price. Automatic Conversion Each Series A Shares shall automatically be converted, based on the then-effective conversion price, without the payment of any additional consideration, into fully-paid and non-assessable ordinary shares upon the earlier of (i) the closing of an IPO, or (ii) the date specified by written consent or agreement of the majority holders of Series A Shares. See Note 16. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. INCOME TAXES The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. The Company’s subsidiary Prepshine HK is located in Hong Kong and is subject to an income tax rate of 16.5% for assessable profit earned in Hong Kong in before or by March 2018, and an income tax rate of 8.25% for the first HK$2,000 of assessable profit while the standard income tax rate of 16.5% remains for profit exceeding HK$2,000 from April 2018 onwards. The Company’s other subsidiaries, the VIE and the VIE’s subsidiaries and schools, which were entities incorporated in the PRC (the “PRC entities”) are subject to PRC Enterprise Income Tax (“EIT”), on the taxable income in accordance with the relevant PRC income tax laws, which have adopted a unified income tax rate of 25% except for a high and new technology enterprise (“HNTE”, which is subject to a tax rate of 15%) and some small low-profit enterprises (whose income will be counted in the taxable income at the half-reduced rate, and the enterprise income tax is calculated and paid at the 20% tax rate). In accordance with GuoKeFaHuo [2016] No.32, HNTE can enjoy a reduced income tax rate of 15%. Beijing Meikaida began to qualify as HNTE since 2016 and enjoy the tax rate of 15% in 2016, 2017 and 2018. In accordance with Cai Shui [2018] No.77, during the period from January 1, 2018 to December 31, 2020, if the annual taxable income of a small low-profit enterprise is equal to or lower than RMB1,000, its income will be counted in the taxable income at the half-reduced rate, and the enterprise income tax is calculated and paid at the 20% tax rate. In accordance with Cai Shui [2019] No.13, during the period from January 1, 2019 to December 31, 2021, for small low-profit enterprises, the portion of less than RMB1,000 and the portion of more than RMB1,000 but less than RMB3,000 of the annual taxable income, will be included in the actual taxable income at 25% and 50% respectively, based on which the enterprise income tax payable will be calculated at the reduced tax rate of 20%. 1 5 . INCOME TAXES- continued The current and deferred components of the income tax expenses appearing in the consolidated statement of operations were as follows: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Current tax expenses 3,535 8,258 14,265 Deferred tax expenses (3,147 ) (5,822 ) (8,943 ) 388 2,436 5,322 The principle components of deferred taxes were as follows: As of December 31, 2017 2018 RMB RMB Deferred tax assets Accrued expenses 32,333 32,290 Convertible notes — change in fair value 2,550 — Net operating loss carrying forwards 78,692 149,628 Total deferred tax assets 113,575 181,918 Less: Valuation allowance (110,563 ) (178,462 ) Deferred tax assets, net 3,012 3,456 As of December 31, 2018, the Group had net operating loss carried forward of RMB598,512 from the Company’s PRC entities, which will expire on various dates from December 31, 2019 to December 31, 2023. As of December 31, 2017 2018 RMB RMB Deferred tax liabilities Acquired intangible assets 77,580 71,031 Total deferred tax liabilities 77,580 71,031 The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations was as follow: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Loss before income taxes (127,216 ) (394,798 ) (828,087 ) Income tax benefit computed at an applicable tax rate of 25% (31,804 ) (98,699 ) (207,022 ) Permanent differences 13,948 13,279 106,509 Effect of income tax rate differences in jurisdictions other than PRC — — 38,490 Effect of preferential tax rate (28 ) (26 ) (554 ) Change in valuation allowance 18,272 87,882 67,899 388 2,436 5,322 15. INCOME TAXES- continued The Group did not identify significant unrecognized tax benefits for the year ended December 31, 2018. The Group did not incur any interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2018. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
ORDINARY SHARES | 1 6 . ORDINARY SHARES Upon the incorporation of Puxin Limited on March 17, 2017, the Company issued 8,524 ordinary shares to Long bright Limited, 820 ordinary shares to Gao & Tianyi Limited, 492 ordinary shares to Pution Limited and 164 ordinary shares to Prospect Limited for an aggregate consideration of USD0.004. On August 4, 2017, the Company issued 99,990,000 ordinary shares to its existing shareholders on a proportional basis for an aggregate consideration of USD5. Such issuance was accounted for as a stock split and, accordingly, all references to numbers of ordinary shares and per-share data in the accompanying consolidated financial statements have been adjusted to reflect the stock split and issuance of shares on a retrospective basis. On February 5, 2018, in connection with the reorganization, the Company issued 21,761,652 ordinary shares to Puxin Nova Limited, 3,336,744 ordinary shares to Stary International Limited, 40,000 ordinary shares to Long wit Limited, 8,200,000 ordinary shares to Long belief Limited, 1,640,000 ordinary shares to Long faith Limited and 17,103,724 ordinary shares to Long favor Limited for an aggregate consideration of USD3. The ordinary shares of the Company issued to Long favor Limited and Long belief Limited were to establish a reserve pool for future issuance of equity share incentive to the Group’s employees or for future acquisition payments. All shareholder rights of these 25,303,724 ordinary shares including but not limited to voting rights and dividend rights are unconditionally waived until the corresponding ordinary share are transferred to the employees or the shareholders of future acquiree. While the ordinary shares were issued to Long favor Limited and Long belief Limited, they do not have any of the rights associated with the ordinary shares, and as such the Company accounted for these shares as issued but not outstanding ordinary shares until the waiver is released by the Company, which occurs when the ordinary shares are awarded to the employees or the shareholders of future acquiree. As of December 31, 2018, 15,438,412 and 8,150,652 ordinary shares transferred to Long favor Limited and Long belief Limited are issued but not outstanding. Upon the completion of the Company’s IPO in June, 2018, the Company offered and issued 8,280,000 ADSs representing 16,560,000 ordinary shares with a par value USD0.00005 per share at the net proceeds, before expense, of USD130,907 (equivalent to RMB837,541). IPO related expense is RMB38,711, out of which RMB38,333 is paid as of December 31, 2018 and the remaining balance is recorded in the accrued expense and other current liabilities. Immediately upon the completion of the IPO, all of the Company’s convertible redeemable preferred shares automatically converted into an equal number of 11,917,880 ordinary shares; the convertible notes issued to Haitong automatically converted into 4,201,681 ordinary shares at the conversion prices of USD5.95, which equal to 70% of the IPO price of the ordinary shares; CICC ALPHA exercised its conversion right and the convertible notes were converted into 3,865,547 ordinary shares at the conversion prices of USD5.95 which equal to 70% of the IPO price of the ordinary shares. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | 17 . NET LOSS PER SHARE For the purpose of calculating net loss per share as a result of the reorganization as described in Note 1, the number of ordinary shares used in the calculation reflects the outstanding ordinary shares of the Company as if the reorganization occurred at the beginning of the first period presented. The following table sets forth the computation of basic and diluted net loss per share for the periods indicated: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Numerator used in basic and diluted net loss per share: Net loss attributable to ordinary shareholders of Puxin Limited (127,556 ) (397,313 ) (833,411 ) Shares (denominator): Weighted average common shares outstanding used in computing basic and diluted net loss per share (Note 1) 98,670,361 99,705,361 144,157,947 Net loss per share basic and diluted (1.29 ) (3.98 ) (5.78 ) For the years ended December 31, 2016, 2017 and 2018, an incremental weighted average number of 3,473,746, 4,938,438 and 18,420,993 ordinary shares from the assumed exercise of share options were not considered in the computation of diluted net loss per share because they would be anti-dilutive given the Company’s loss making position. |
Employee Defined Contribution P
Employee Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Defined Contribution Plan | 18 . EMPLOYEE DEFINED CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund, unemployment insurance and other welfare benefits are provided to employees. Chinese labor regulations require that the Group’s PRC entities make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amount for such employee benefits, which was expensed as incurred, was RMB33,454, RMB104,635 and RMB184,525 for the years ended December 31, 2016, 2017 and 2018, respectively. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 9 . RELATED PARTY TRANSACTION (1) Related parties Name of related parties Relationship with the Group Mr. Yunlong Sha The CEO and the Chairman of the Board of Directors of the Company Ms. Wenjing Song Spouse of Mr. Yunlong Sha Puxian Shareholder of Puxin Education 1 9 . RELATED PARTY TRANSACTION -continued (2) The significant balances between the Group and its related parties were as follows: As of December 31, 2017 2018 RMB RMB Amounts due from: Puxian 13 — Ms. Wenjing Song 100 — 113 — Amounts due to: Mr. Yunlong Sha 3,836 43,993 Ms. Wenjing Song — 10,500 3,836 54,493 In connection with Purong Information’s repurchase of 5% equity interest with preferential feature which was held by Shanghai Trustbridge, in January 2018, Mr. Yunlong Sha advanced to Purong Information at the amount of RMB180,000. As of December 31, 2018, such balance and the accrued interest, at 9%, were paid back by the Group . The balances with related parties were interest-free, unsecured and repayable on demand. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20 . COMMITMENTS AND CONTINGENCIES Operating lease commitments Future minimum payments under non-cancelable operating leases related to offices and schools consisted of the following at December 31, 2018: Years ending December 31, 2019 303,126 2020 217,290 2021 148,625 2022 90,340 2023 and thereafter 95,006 854,387 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The terms of the leases do not contain rent escalation or contingent rents. For the years ended December 31, 2016, 2017 and 2018, total rental expense for all operating leases amounted to RMB74,245, RMB215,432 and RMB332,574, respectively. Equity pledge commitment In June 2017, Puxin Education and Mr. Yunlong Sha entered into a convertible note investment agreement with Huazhong. In conjunction with the note purchase agreement, a domestic equity pledge agreement was entered into between Huazhong and Puxin Education. Puxin Education pledged its 100% equity interests of Tianjin Xinsiyuan in favor of Huazhong. Mr. Yunlong Sha and Ms. Wenjing Song are joint guarantors under domestic equity pledge agreement. 20 . COMMITMENTS AND CONTINGENCIES -continued Equity pledge commitment -continued On August 4, 2017, Puxin Limited issued a convertible note and a promissory note at the principle amount of USD25,000 and USD25,000, respectively, to Haitong. In conjunction with the note purchase agreement, an offshore share mortgage agreement was entered into amongst Haitong, Puxin Limited and Long bright Limited (a shareholder of Puxin Limited solely owned by Mr. Yunlong Sha). Pursuant to the offshore share mortgage agreement, Long bright Limited mortgaged its 18% equity interests of Puxin Limited in favor of Haitong. Meanwhile, a domestic equity pledge agreement was entered into amongst a related party of Haitong, Puxin Education, Dalian Pude and Guizhou Puxintian. Puxin Education pledged its 100% equity interests of Dalian Pude and Guizhou Puxintian in favor of a related party of Haitong. Mr. Yunlong Sha, Ms. Wenjing Song and Long bright Limited are joint guarantors under the offshore share mortgage agreement and domestic equity pledge agreement. On September 29, 2017, Puxin Limited issued convertible note at the principle amount of USD23,000 to CICC ALPHA. In conjunction with the note purchase agreement, an offshore share mortgage agreement was entered into amongst CICC ALPHA, Puxin Limited and Long bright Limited. Pursuant to the offshore share mortgage agreement, Long bright Limited mortgaged its 8.3% equity interests of Puxin Limited in favor of CICC ALPHA. Meanwhile, a domestic equity pledge agreement was entered into amongst a related party of CICC ALPHA, Mr. Yunlong Sha and Puxin Education, Mr. Yunlong Sha pledged its 4.15% equity interests of Puxin Education in favor of a related party of CICC ALPHA. Mr. Yunlong Sha and Long bright Limited are joint guarantors under the offshore share mortgage agreement and domestic equity pledge agreement. The equity interests pledged under the domestic equity pledge agreements with Haitong and CICC ALPHA were released in February 2018 in connection with the reorganization. As of December 31, 2018, all the mortgaged shares of Puxin Limited were released except for 6,000,000 shares which were still mortgaged to Haitong. In April 2018, Dalian Tongfang entered into a bank borrowing agreement amounted to RMB10,000 with SPD Bank. Puxin Education, Mr. Yunlong Sha and Ms. Wenjing Song were joint guarantors under the bank borrowing agreement. In November 2018, Puxin Education entered into a bank borrowing agreement amounting of RMB96,600 with SPD Bank. Prepshine HK acted as the pledger under the bank borrowing agreement. During the year ended December 31, 2018, Puxin Education entered into loan agreements amounted to RMB29,500 with a third party, Taiyuan Puxin Arts and Mr. Yunlong Sha were joint guarantors under the loan agreements. Taiyuan Puxin Arts also entered into loan agreements amounted to RMB50,000 with the third party, Puxin Education and Mr. Yunlong Sha were joint guarantors under the loan agreements. Contingencies The Group is in the process of applying for permits and preparing filings for certain training institutions and tutoring branches. The contingent liability incurred by failing to meet the permit or filing requirements cannot be reasonably estimated, pending on authoritative interpretation and implementation guidance, the Group did not record any liabilities pertaining to this. On November 7, 2016, the Standing Committee of the National People’s Congress promulgated the Decision on Amending the Law on the Promotion of Private Education of the PRC (the “Amended Private Education Law”), which became effective on September 1, 2017 and was further amended on December 29, 2018. On August 10, 2018, the Ministry of Justice of the PRC issued the Amended Draft of Implementation Rules for the Law on the Promotion Private Education of the PRC for Approval (the "Implementation Rules for Approval") to invite public comment. Due to the lack of authoritative interpretation and implementation guidance, the potential impact related to the Group not fully complying with the Amended Private Education Law or any relevant regulations cannot be reasonably estimated at the issuance of this report. As a result, the Group did not account for any liabilities pertaining to this. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 21 . SEGMENT INFORMATION The Group’s chief operating decision maker (“CODM”) has been identified as the CEO who reviews financial information of operating segments based on U.S. GAAP amounts when making decisions about allocating resources and assessing performance of the Group. The Group identified two operating segments, including K-12 tutoring services and study abroad tutoring services. All these two operating segments are identified as reportable segments. The Group primary operates in the PRC and all of the Group’s long-lived assets are located in the PRC. The Group’s CODM evaluates performance based on the operating segment’s revenue and gross profit. The revenue and gross profit by segments were as follows: For the year ended December 31, 2016 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 370,712 68,469 439,181 Cost of revenues 217,797 40,198 257,995 Gross profit 152,915 28,271 181,186 For the year ended December 31, 2017 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 884,148 398,414 1,282,562 Cost of revenues 555,885 238,457 794,342 Gross profit 328,263 159,957 488,220 For the year ended December 31, 2018 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 1,182,397 1,045,720 2,228,117 Cost of revenues 706,917 535,972 1,242,889 Gross profit 475,480 509,748 985,228 The total assets for the two reportable segments were shared and indistinguishable for reporting purposes. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | 22 . RESTRICTED NET ASSETS Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC entities only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s entities. Prior to payment of dividends, pursuant to the PRC laws and regulations, enterprises incorporated in the PRC must make appropriations from after-tax profit to non-distributable reserve funds as determined by the Board of Directors of each company. These reserves include (i) general reserve, and (ii) other reserves at the discretion of the Board of Director. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits 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. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. The Company’s subsidiaries contributed RMB nil, RMB nil and RMB1,443 to the general reserve during the years ended December 31, 2016, 2017 and 2018. 22. RESTRICTED NET ASSETS -continued Prior to the effectiveness of Amended Private Education Law, PRC laws and regulations required private schools that require reasonable returns to contribute 25% of after-tax income before payments of dividend to a fund to be used for the construction or maintenance of the school or procurement or upgrading of educational facility. For private schools that do not require reasonable returns, this amount should be equivalent to no less than 25% of the annual increase of its net assets as determined in accordance with generally accepted accounting principles in the PRC. For the Group’s private schools, amount contributed to the reserve of RMB nil, RMB260 and RMB3,152 for the years ended December 31, 2016, 2017 and 2018. 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. Because the Group’s entities in the PRC can only be paid out of distributable profits reported in accordance with PRC accounting standards, the Group’s entities in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in capital, capital reserve and statutory reserves of the Group’s entities in the PRC. The aggregate amount of paid-in capital, capital reserve and statutory reserves, which represented the amount of net assets of the Group’s entities in the PRC not available for distribution, was RMB461,015 as of December 31, 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23 . SUBSEQUENT EVENTS The Company has evaluated all events subsequent to the balance sheet date of December 31, 2018 through April 25, 2019, the issuance date of these financial statements. In March 2019, the Company approved the 2019 Noble Talent Share Incentive Plan (“2019 Noble Talent Plan”) which provides for the grant of options to eligible employees of the Group. Under 2019 Noble Talent Plan, the maximum aggregate number of shares that may be issued shall not exceed 8,879,986. |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEET (In thousands of RMB and USD, except for share, per share and per ADS data) As of December 31, 2017 2018 2018 RMB RMB USD (Note 3) ASSETS Current assets Cash and cash equivalents 4,406 437,613 63,648 Amounts due from subsidiaries and VIEs 470,552 867,467 126,168 Total current assets 474,958 1,305,080 189,816 TOTAL ASSETS 474,958 1,305,080 189,816 LIABILITIES Current liabilities Accrued expenses and other current liabilities 5,346 5,767 839 Promissory notes, current portion — 171,888 25,000 Total current liabilities 5,346 177,655 25,839 Non-current liabilities Convertible notes 348,992 — — Promissory note, non-current portion 162,658 — — Derivative liabilities 18,218 63,942 9,300 Investments deficit in subsidiaries and VIEs 212,506 515,590 74,990 TOTAL LIABILITIES 747,720 757,187 110,129 SHAREHOLDERS’ (DEFICIT) EQUITY Ordinary shares (par value of USD0.00005 per share; 100,000,000 and 1,000,000,000 shares authorized, 100,000,000 and 188,627,228 shares issued and 100,000,000 and 165,038,164 shares outstanding as of December 31, 2017 and 2018, respectively) 34 62 9 Additional paid-in capital 391,099 1,944,325 282,790 Statutory reserve — 4,595 668 Accumulated other comprehensive income 15,718 68,214 9,921 Accumulated deficit (679,613 ) (1,469,303 ) (213,701 ) TOTAL SHAREHOLDERS’ (DEFICIT) EQUITY (272,762 ) 547,893 79,687 TOTAL LIABILITIES AND TOTAL SHAREHOLDERS’ (DEFICIT) EQUITY 474,958 1,305,080 189,816 ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF OPERATIONS (In thousands of RMB and USD, except for share, per share and per ADS data) For the years ended December 31, 2016 2017 2018 2018 RMB RMB RMB USD (Note 3) General and administrative expenses — — 8,728 1,270 Total operating expenses — — 8,728 1,270 Interest expense — 5,556 13,218 1,922 Interest income — — 2,104 306 Foreign exchange loss — — 10,358 1,507 Loss on changes in fair value of convertible notes, derivative liabilities and warrants — 60,136 124,648 18,129 Equity in loss of subsidiaries and VIEs 127,556 331,621 678,563 98,693 Loss before income taxes (127,556 ) (397,313 ) (833,411 ) (121,215 ) Income tax expenses — — — — Net loss (127,556 ) (397,313 ) (833,411 ) (121,215 ) ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (In thousands of RMB and USD, except for share, per share and per ADS data) For the years ended December 31, 2016 2017 2018 2018 RMB RMB RMB USD (Note 3) Net loss (127,556 ) (397,313 ) (833,411 ) (121,215 ) Other comprehensive loss, net of tax: Change in cumulative foreign currency translation adjustments — 15,718 52,496 7,635 Total comprehensive loss (127,556 ) (381,595 ) (780,915 ) (113,580 ) ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS (In thousands of RMB and USD) For the years ended December 31, 2016 2017 2018 2018 RMB RMB RMB USD (Note 3) CASH FLOWS FROM OPERATING ACTIVITIES Net loss (127,556 ) (397,313 ) (833,411 ) (121,215 ) Adjustments to reconcile net loss to net cash generated from operating activities: Equity in loss of subsidiaries and VIEs 127,556 331,621 678,563 98,693 Foreign exchange loss — — 10,358 1,507 Loss on changes in fair value of convertible notes, derivative liabilities and warrants — 60,136 124,648 18,129 Changes in operating assets and liabilities: Accrued expenses and other current liabilities — 5,556 (5,230 ) (761 ) Net cash used in operating activities — — (25,072 ) (3,647 ) CASH FLOWS FROM INVESTING ACTIVITIES Loan to subsidiaries and VIEs — (488,676 ) (396,495 ) (57,668 ) Net cash used in investing activities — (488,676 ) (396,495 ) (57,668 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from IPO (net of IPO expenses) — — 811,001 117,956 Proceeds from convertible notes — 321,206 — — Proceeds from promissory note — 168,180 — — Net cash generated from financing activities — 489,386 811,001 117,956 Effect of exchange rate changes — 3,696 43,773 6,366 Net increase in cash and cash equivalents, and restricted cash — 4,406 433,207 63,007 Cash and cash equivalents, and restricted cash at beginning of the year — — 4,406 641 Cash and cash equivalents, and restricted cash at end of the year — 4,406 437,613 63,648 1. BASIS FOR PREPARATION The condensed financial information of the Parent Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Parent Company used the equity method to account for investments in its subsidiaries. 2. INVESTMENT IN SUBSIDIARIES In its consolidated financial statements, the Parent Company consolidates the results of operations and assets and liabilities of its subsidiaries and schools, and inter-company balances and transactions were eliminated upon consolidation. For the purpose of the Parent Company’s standalone financial statements, its investments in subsidiaries are reported using the equity method of accounting as a single line item and the Parent Company’s share of loss from its subsidiaries and VIEs are reported as the single line item of equity in loss of subsidiaries and VIEs. 3. CONVENIENCE TRANSLATION The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into USD using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the balance sheet, and the related statement of operations and cash flows from RMB into USD as of and for the year ended December 31, 2018 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.8755, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2018. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2018, or at any other rate. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation and use of estimates | Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. Actual results may differ from those estimates. The Group bases its estimates on past experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s financial statements include, but are not limited to, valuation allowance for deferred tax assets, useful lives of property, plant and equipment and intangible assets, impairment assessment of long-lived assets and goodwill, valuation of share-based compensation and payments, purchase price allocation for business acquisition and valuation of ordinary shares, convertible notes, derivative liabilities and warrants. Actual results may differ materially from those estimates. |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements include the financial information of the Group. All intercompany balances and transactions have been eliminated. |
Business combinations | Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. |
Fair value | Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of financial instruments, which consist of cash and cash equivalents, restricted cash, amounts due from related parties, other receivables, other payables, amounts due to related parties and short-term bank borrowings are recorded at cost which approximates their fair value due to the short-term nature of these instruments. |
Financial instruments | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, amounts due from/to related parties, other receivables, other payables, short-term bank borrowings, convertible notes, promissory notes, derivative liabilities and warrants. |
Convertible notes | Convertible notes Convertible notes for which the fair value option are elected are carried at fair value, with changes in fair value recognized in earnings. |
Convenience translation | Convenience translation The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into USD using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets and the related consolidated statements of operations, comprehensive loss, change in (deficit) equity and cash flows from RMB into USD as of and for the year ended December 31, 2018 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.8755, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2018. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2018, or at any other rate. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents comprise cash at banks and on hand, which have original maturities of three months or less when purchased and are subject to an insignificant risk of changes in value. The carrying value of cash equivalents approximates market value. |
Restricted cash | Restricted cash Restricted cash represents cash deposits in restricted bank accounts, required by local regulations, for operating schools. The deposits in restricted bank accounts cannot be withdrawn until these schools are closed. Restricted cash is classified as either current or non-current based on when the funds will be released in accordance with the terms of the respective agreement. |
Inventories | Inventories Inventories, mainly consisting of textbooks, are stated at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Buildings 37 years Electronic equipment 3 years Motor vehicles 5 years Furniture and education equipment 5 years Leasehold improvement Shorter of lease term or estimated economic life 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Property, plant and equipment, net -continued Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant 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 assets and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statement of operations. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. Intangible assets with finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. Goodwill is tested for impairment annually at the end of the fourth quarter, or sooner if impairment indicators arise. In the evaluation of goodwill for impairment, the Group may perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is not, no further analysis is required. If it is, a prescribed two-step goodwill impairment test is performed to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit, if any. The first step in the two-step impairment test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The fair value of a reporting unit is estimated by applying valuation multiples and/or estimating future discounted cash flows. The selection of multiples is dependent upon assumptions regarding future levels of operating performance as well as business trends and prospects, and industry, market and economic conditions. When estimating future discounted cash flows, the Group considers the assumptions that hypothetical marketplace participants would use in estimating future cash flows. In addition, where applicable, an appropriate discount rate is used, based on an industry-wide average cost of capital or location-specific economic factors. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit). If the implied fair value of goodwill exceeds the carrying amount, goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. Based on the result of annual goodwill impairment assessment, no impairment charge was recognized for the years ended December 31, 2016, 2017 and 2018. Acquired intangible assets other than goodwill consist of student base, definite trademark, relationship with partnership school and franchise agreements, which are carried at cost, less accumulated amortization and impairment. The amortization periods are as follows: Student Base 2.2 - 7 years Trademark 5.4 years & Indefinite Relationship with partnership school 6.4 years Franchise agreement 3.4 years 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Goodwill and intangible assets -continued The Group has determined that certain trademarks do not have determinable useful lives. Consequently, the carrying amount of trademarks are not amortized but are tested for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. Such impairment test consists of a comparison of the fair value of the trademarks with their carrying amount and an impairment loss is recognized if and when the carrying amounts of the trademarks exceed their fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. No impairment loss was recorded during the years ended December 31, 2016, 2017, and 2018. |
Impairment of long-lived assets | Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. The Group did not record any impairment losses on its long-lived assets during the years ended December 31, 2016, 2017 and 2018. |
Revenue recognition and Deferred revenue | Revenue recognition Adoption of Accounting Standard Codification (“ASC”), “Revenue from Contracts with Customers” In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10, 2016-12 and 2016-20 (collectively ASU 2014-09). On January 1, 2018, the Group adopted Topic 606 applying the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Group recorded a net reduction to opening accumulated deficit of RMB48,316 as of January 1, 2018 due to the cumulative impact of adopting Topic 606. The impacts to revenue for the year ended December 31, 2018 were an increase of RMB7,064 as a result of adopting Topic 606. Revenues are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration that the Group expects to receive in exchange for those goods or services. The following table presents the Group’s revenues disaggregated by revenue sources. The Group’s revenue is reported net of discounts, value added tax and surcharges. For the years ended December 31, 2016 2017 2018 RMB RMB RMB Services: K-12 tutoring services - group class 298,733 611,268 817,843 K-12 tutoring services - personalized 71,979 272,880 364,554 Study-abroad test preparation services 59,145 334,288 860,687 Study-abroad consulting services 9,324 64,126 185,033 Total net revenues 439,181 1,282,562 2,228,117 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Revenue recognition -continued The following is a description of principal activities from which the Group generates revenue and related revenue recognition policies. ( i ) K-12 tutoring services The Group offers various types of after-school tutoring services to help students improve their academic performance and qualify for their desired schools and universities. The after-school tutoring services primarily consist of after-school group class courses and personalized tutoring courses. The K-12 tutoring services are accounted for as a single performance obligation. Tuition fees are generally collected in advance and are initially recorded as deferred revenue. Deferred revenue is recognized proportionately as the tutoring sessions are delivered. Tuition refunds are provided to students if they decide within the trial period that they no longer want to take the course. For some K-12 courses, the Group also offers refunds for any remaining classes to students who withdraw from the course. The refund is equal to the amount related to the undelivered class. The Group determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. (ii) Study abroad tutoring services • Study-abroad test preparation services The Group offers study abroad test preparation services to help students prepare for admission tests for high schools, universities and graduate programs in other countries. Tutoring fees are collected in advance and are initially recorded as deferred revenue which is recognized proportionately as the tutoring sessions are delivered. Students are entitled to certain trial class of the purchased course and course fee is fully refundable if a student decides not to take the remaining course after the trial class. No refund will be provided to a student who withdraws from a course after the trial period. The study-abroad test preparation services are accounted for as a single performance obligation. • Study-abroad consulting services The Group offers study abroad consulting services to provide quality advisory guidance for students who intend to study abroad. The Group charges each student an up-front prepaid fee based on the scope of consulting services requested by the student. Portion of the prepaid services fee are refundable if the student does not successfully gain admission, which are accounted for as variable consideration under Topic 606. The study-abroad consulting services are accounted for as a single performance obligation. The Group estimates the variable consideration to be earned and recognizes revenue over the service period. Remaining performance obligations represents the transaction price of contracts for which service has not been performed under study-abroad consulting services. As of December 31, 2018, the aggregate amount of the transaction price related to the remaining performance obligations was RMB188,357. The Group estimates that revenue RMB129,473 and RMB44,596 on the remaining performance obligations to be recognized over the next 12 and 24 months, respectively, with the remainder, at RMB14,288 , recognized thereafter. The contract liability consists of deferred revenue and refund liability. Arrangements with multiple performance obligations The Group’s contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices based on the prices charged to customers. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Revenue recognition -continued Impact of new revenue guidance on financial statement line items The following tables presented the impact of adoption of ASC 606 on the consolidated balance sheet and statement of operations as of and for the year ended December 31, 2018: For the year ended December 31, 2018, As Reported Balances without adoption of ASC 606 Effect of Change Higher/(Lower) RMB RMB RMB Net revenues 2,228,117 2,221,053 7,064 Cost of revenues 1,242,889 1,242,889 — Gross profit 985,228 978,164 7,064 Operating expenses: Selling expenses 848,088 848,088 — General and administrative expenses 775,883 775,883 — Total operating expenses 1,623,971 1,623,971 — Operating loss (638,743 ) (645,807 ) 7,064 Interest expense 51,901 51,901 — Interest income 2,826 2,826 — Foreign exchange loss 7,621 7,621 — Loss on changes in fair value of convertible notes, derivative liabilities and warrants 131,748 131,748 — Loss on extinguishment of convertible notes 900 900 — Loss before income taxes (828,087 ) (835,151 ) 7,064 Net loss (833,409 ) (840,473 ) 7,064 Net loss attributable to equity shareholders of Puxin Limited (833,411 ) (840,475 ) 7,064 Net loss per share attributable to equity shareholders of Puxin Limited Basic and diluted (5.78 ) (5.83 ) 0.05 As of December 31, 2018, As Reported Balances without adoption of ASC 606 Effect of Change Higher/(Lower) RMB RMB RMB Total assets 2,737,019 2,737,019 — Total liabilities 2,189,147 2,244,527 (55,380 ) Accrued expenses and other current liabilities - refund liabilities 92,960 — 92,960 Deferred revenue, non-current portion 121,191 243,683 (122,492 ) Deferred revenue, current portion 876,861 902,709 (25,848 ) Total shareholders’ equity 547,872 492,492 55,380 Accumulated deficit (1,469,303 ) (1,524,683 ) 55,380 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Revenue recognition -continued Practical expedients and exemptions The Group incurs sales commissions primarily for K-12 tutoring services and study-abroad test preparation services which are expensed when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. The Group does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Group recognizes revenue at the amount to which it has the right to invoice for services performed. Deferred revenue Deferred revenue primarily consists of tuition fees and consulting service fees received from customers for which the Group’s revenue recognition criteria have not been met. The deferred revenue will be recognized as revenue once the criteria for revenue recognition have been met. |
Value added taxes | Value added taxes On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program were phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Businesses in the Pilot Program would pay VAT instead of business tax. Starting from May 1, 2016, the Pilot Program was promoted nationwide in a comprehensive manner in the PRC. With the implementation of the Pilot Program, the Group’s certain subsidiaries and schools are subject to VAT at the rate of 3%, as small scale VAT payer, and the remaining subsidiaries and schools are subject to VAT at the rate of 6%, as general VAT payer, which were all previously subject to business tax. The net VAT balance between input VAT and output VAT is recorded as accrued expenses and other current liabilities in the Group’s consolidated financial statements. Since May 2016, in accordance with Cai Shui [2016] No. 68, the nonacademic educational programs and services in short-term training schools are subject to a simple VAT collection method and apply for a 3% VAT rate. Therefore, the Group’s nonacademic educational programs and services in short-term training schools which were previously subject to business tax are now subject to VAT. |
Operating leases | Operating leases Leases where substantially all the rewards and risk of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statement of operations on a straight-line basis over the shorter of the lease term or estimated economic life of the leased property. |
Income taxes | Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. |
Share-based compensation | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Share-based compensation The Group measures the cost of employee share options based on the grant date fair value of the award and recognizes compensation cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options, the Group recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, the cost of the award is expensed on the grant date. The Group elects to recognize forfeitures when they occur. |
Comprehensive loss | Comprehensive loss Comprehensive loss includes net loss and foreign currency translation adjustments. Comprehensive loss is reported in the consolidated statements of comprehensive loss. |
Net loss per share | Net loss per share Net loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of common shares outstanding during the period. Diluted net loss per share is based upon the weighted average number of common shares and of common share equivalents outstanding when dilutive. Common share equivalents include: (i) outstanding stock options under the Company’s share incentive plan which are included under the treasury share method when dilutive, (ii) common shares to be issued under the assumed conversion of the Company’s outstanding convertible notes, which are included under the if-converted method when dilutive, and (iii) convertible redeemable participating preferred shares, which are included under the if-converted method when dilutive. The Group’s convertible redeemable participating preferred shares are participating securities as they participate in undistributed earnings on an as-if-converted basis. Accordingly, the Group uses the two-class method whereby undistributed net income is allocated on a pro rata basis to the ordinary shares and preferred shares to the extent that each class may share in income for the period; whereas the undistributed net loss for the period is allocated to ordinary shares only because the convertible redeemable participating preferred shares are not contractually obligated to share the loss. The computation of diluted net loss per share for the years ended December 31, 2016, 2017 and 2018 does not include common share equivalents, since such inclusion would be anti-dilutive. |
Contingency | Contingency The Group is subject to lawsuits, investigations and other claims related to the operation of its schools. The Group is required to assess the likelihood of any adverse judgments or outcomes to these matters, as well as potential ranges of probable losses and fees. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. |
Significant risks and uncertainties | Significant risks and uncertainties Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the Peoples Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies, international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents and restricted cash denominated in RMB amounted to RMB184,752 and RMB279,162 as of December 31, 2017 and 2018, respectively. Concentration of credit risk Financial instruments that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents and prepayment and other current assets. As of December 31, 2017 and 2018, substantially all of the Group's cash and cash equivalents were deposited in financial institutions located in the PRC. |
Recent accounting pronouncements not yet adopted | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Recent accounting pronouncements not yet adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02” or “Topic 842”), which amends, among other things, the existing guidance by requiring lessees to recognize lease right-of-use assets (“ROU assets”) and liabilities (for lease payments) arising from operating leases on the balance sheet. For leases with a term of twelve months or less, ASU 2016-02 permits an entity to make an accounting policy election to not recognize a ROU asset nor lease liability, but rather to recognize such leases as lease expense, generally on a straight-line basis over the lease term. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which clarified various aspects of the guidance under ASU 2016-02. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Originally, entities were required to adopt ASU 2016-02 using a modified retrospective approach, which required prior periods to be presented under Topic 842. However, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which allows entities the option of recognizing the cumulative effect of applying Topic 842 as an adjustment to the opening balance of retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The Group has implemented a new lease management system that will facilitate the adoption of this standard and enable the Group to fulfill its requirements for both reporting and disclosure purposes, and the Group has reviewed and implemented the necessary changes to its existing policies, processes and controls to achieve appropriate compliance. The Group will adopt Topic 842 in the first quarter of 2019 using the modified retrospective transition approach allowed under ASU 2018-11, and will recognize any cumulative effect of applying the standard as an adjustment to the opening balance of retained earnings as of January 1, 2019. The Group will elect the practical expedients under ASU 2016-02 which includes the use of hindsight in determining the lease term and the practical expedient package to not reassess whether any expired or existing contracts are or contain leases, to not reassess the classification of any expired or existing leases, and to not reassess initial direct costs for any existing leases. The Group has evaluated the effect of the adoption of this ASU and expects the adoption will result in an increase in the assets and liabilities on the consolidated balance sheets for the operating leases and will have an insignificant impact on the consolidated statements of operations. In January 2017, FASB issued ASU No. 2017-04: Simplifying the Test for Goodwill Impairment. Under the new accounting guidance, an entity will no longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity will perform its goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value but not to exceed the total amount of the goodwill of the reporting unit. In addition, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment, if applicable. The provisions of the new accounting guidance are required to be applied prospectively. The new accounting guidance is effective for the company for goodwill impairment tests performed in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests performed after January 1, 2017. The Group is in the process of assessing the impact on its consolidated financial statements from the adoption of the new guidance. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to the Related Party Guidance for Variable Interest Entities. ASU 2018-17 changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportional basis, rather than in their entirety. This guidance will be adopted using a retrospective approach and is effective for the Group on January 1, 2020. The Group is evaluating the effect that adoption of this guidance will have on its consolidated financial statements and related disclosures. |
Newly adopted accounting pronouncements | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Newly adopted accounting pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10, 2016-12 and 2016-20 (collectively ASU 2014-09). ASU 2014-09 superseded existing revenue recognition standards with a single model unless those contracts are within the scope of other standards (e.g., an insurance entity’s insurance contracts). The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Group adopted Topic 606 on January 1, 2018, as allowed, using the modified retrospective transition method. The Group recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of accumulated deficit at the beginning of 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented. See Note 2 - Revenue recognition, for additional accounting policy and transition disclosures. In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Determination of Business. The Update requires that when substantially all of the fair value of the gross assets acquired (or dispose of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU on update (1) required that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. Public business entities should apply the amendments in this ASU to annual periods beginning after December 15, 2017, including interim period within those periods. Early adoption of the amendments in this Update is allowed. The amendments in this ASU should be applied prospectively on or after the effective date. No disclosure are required at transition. The Group adopted this ASU on January 1, 2018 and determined it had no impact on its consolidated financial statements as of December 31, 2018. In May 2017, FASB issued a new pronouncement, ASU 2017-09, which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The new accounting guidance is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Group adopted this ASU on January 1, 2018 and determined it had no impact on its consolidated financial statements as of December 31, 2018. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Details of Subsidiaries, VIE and Its Subsidiaries and Schools | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES- continued History - continued The Company’s subsidiaries, VIE and VIE’s significant subsidiaries and schools as of December 31, 2018 were as follows: (1) Name Later of date of establishment or acquisition Place of establishment Percentage of direct or indirect economic ownership Principal activities Subsidiaries: Prepshine HK April 13, 2017 Hong Kong 100 % Holding company Purong Information January 8, 2018 PRC 100 % Holding company Beijing GEDU August 16, 2017 PRC 100 % Education services Variable interest entity: Puxin Education September 28, 2014 PRC 100 % Education services VIE’s significant subsidiaries and schools : Beijing Shangxin Education Technology Co., Ltd. (“Beijing Shangxin”) September 28, 2014 PRC 100 % Education services Beijing Meikaida Education Technology Co., Ltd. (“Beijing Meikaida”) June 18, 2015 PRC 100 % Education services Beijing Meitong Education Consulting Co., Ltd. (“Beijing Meitong”) July 22, 2015 PRC 100 % Education services Yunnan Pude Education Information Consulting Co., Ltd. (“Yunnan Pude”) January 4, 2016 PRC 100 % Education services Taiyuan Puxin Culture and Arts Co., Ltd. (“Taiyuan Puxin Arts”) April 30, 2015 PRC 100 % Education services Taiyuan Fubusi Education School (“Taiyuan Fubusi”) April 30, 2015 PRC 100 % Education services Taiyuan Puxin Culture Communication Co., Ltd. (“Taiyuan Puxin Communication”) June 30, 2015 PRC 100 % Education services Taiyuan Mercan School (“Taiyuan Mercan”) June 30, 2015 PRC 100 % Education services Tianjin Xinsiyuan Culture Communication Co., Ltd. (“Tianjin Xinsiyuan”) June 30, 2015 PRC 100 % Education services Tianjin Shengjia Training Center (“Tianjin Shengjia”) June 30, 2015 PRC 100 % Education services Name Later of date of establishment or acquisition Place of establishment Percentage of direct or indirect economic ownership Principal activities Guizhou Puxintian Education Technology Co., Ltd. (“Guizhou Puxintian”) November 22, 2015 PRC 100 % Education services Qingzhen Tiantian English Training School (“Qingzhen Tiantian”) November 22, 2015 PRC 100 % Education services Baiyun District Tiantian English School (“Baiyun Tiantian”) November 22, 2015 PRC 100 % Education services Guiyang Wudang Tiantian English School (“Wudang Tiantian”) November 22, 2015 PRC 100 % Education services Guiyang Huaxi Tiantian Training School (“Huaxi Tiantian”) November 22, 2015 PRC 100 % Education services Guiyang Yunyan Tiantian Education Training School (“Yunyan Tiantian”) November 22, 2015 PRC 100 % Education services Nanjing Diyu Investment Management Co., Ltd (“Nanjing Diyu”) January 18, 2016 PRC 100 % Education services Nanjing Innovation School (“Nanjing Innovation”) January 18, 2016 PRC 100 % Education services Shanghai Pukuan Education Technology Co., Ltd. (“Shanghai Pukuan”) May 5, 2016 PRC 100 % Education services Shanghai Xinkebiao Education Training Center (“Shanghai Xinkebiao”) May 5, 2016 PRC 100 % Education services Beijing Hope Education Consulting Co., Ltd. (“Beijing Hope”) June 21, 2016 PRC 100 % Education services ZMN International Education Consulting (Beijing) Co., Ltd. (“ZMN Education”) July 31, 2017 PRC 100 % Education services Shanghai Global Career Education & Technology Holdings Limited (“Shanghai GEDU”) August 16, 2017 PRC 100 % Education services Shandong Zengyu Trading Co., Ltd. (“Shandong Zengyu”) November 1, 2018 PRC 100 % Education services Jinan Tiancai Education School (“Jinan Tiancai”) November 1, 2018 PRC 100 % Education services (1) The net revenues generated from these subsidiaries and schools accounts for RMB256,055, RMB690,608 and RMB1,443,786 of the Group’s total net revenues for the years ended December 31, 2016, 2017 and 2018, respectively. The English names are for identification purpose only. |
Schedule of Financial Information of VIE and Its Subsidiaries and Schools | The following financial information of the VIE and VIE’s subsidiaries and schools after the elimination of inter-company transactions and balances as of December 31, 2017 and 2018 and for the years ended December 31, 2016, 2017 and 2018 was included in the accompanying consolidated financial statements: As of December 31, 2017 2018 RMB RMB Cash and cash equivalents 160,274 232,608 Prepaid expenses and other current assets 128,928 121,145 Total current assets 299,723 363,412 Total assets 2,000,437 1,627,032 Total current liabilities 1,265,438 1,668,293 Total liabilities 1,625,964 1,862,278 For the years ended December 31, 2016 2017 2018 RMB RMB RMB Net revenues 439,181 1,282,562 2,219,638 Net loss (127,604 ) (331,621 ) (254,754 ) Net cash generated from (used in) operating activities 81,409 80,266 (81,041 ) Net cash used in investing activities (89,259 ) (141,025 ) (156,917 ) Net cash generated from financing activities 70,000 140,000 20,505 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives of Assets | Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Buildings 37 years Electronic equipment 3 years Motor vehicles 5 years Furniture and education equipment 5 years Leasehold improvement Shorter of lease term or estimated economic life |
Schedule of Amortization Periods of Intangible Assets | The amortization periods are as follows: Student Base 2.2 - 7 years Trademark 5.4 years & Indefinite Relationship with partnership school 6.4 years Franchise agreement 3.4 years |
Schedule of Revenues Disaggregated by Revenue Sources | The following table presents the Group’s revenues disaggregated by revenue sources. The Group’s revenue is reported net of discounts, value added tax and surcharges. For the years ended December 31, 2016 2017 2018 RMB RMB RMB Services: K-12 tutoring services - group class 298,733 611,268 817,843 K-12 tutoring services - personalized 71,979 272,880 364,554 Study-abroad test preparation services 59,145 334,288 860,687 Study-abroad consulting services 9,324 64,126 185,033 Total net revenues 439,181 1,282,562 2,228,117 |
Impact of Adoption of ASC 606 on Consolidated Balance Sheet and Statement of Operations | The following tables presented the impact of adoption of ASC 606 on the consolidated balance sheet and statement of operations as of and for the year ended December 31, 2018: For the year ended December 31, 2018, As Reported Balances without adoption of ASC 606 Effect of Change Higher/(Lower) RMB RMB RMB Net revenues 2,228,117 2,221,053 7,064 Cost of revenues 1,242,889 1,242,889 — Gross profit 985,228 978,164 7,064 Operating expenses: Selling expenses 848,088 848,088 — General and administrative expenses 775,883 775,883 — Total operating expenses 1,623,971 1,623,971 — Operating loss (638,743 ) (645,807 ) 7,064 Interest expense 51,901 51,901 — Interest income 2,826 2,826 — Foreign exchange loss 7,621 7,621 — Loss on changes in fair value of convertible notes, derivative liabilities and warrants 131,748 131,748 — Loss on extinguishment of convertible notes 900 900 — Loss before income taxes (828,087 ) (835,151 ) 7,064 Net loss (833,409 ) (840,473 ) 7,064 Net loss attributable to equity shareholders of Puxin Limited (833,411 ) (840,475 ) 7,064 Net loss per share attributable to equity shareholders of Puxin Limited Basic and diluted (5.78 ) (5.83 ) 0.05 As of December 31, 2018, As Reported Balances without adoption of ASC 606 Effect of Change Higher/(Lower) RMB RMB RMB Total assets 2,737,019 2,737,019 — Total liabilities 2,189,147 2,244,527 (55,380 ) Accrued expenses and other current liabilities - refund liabilities 92,960 — 92,960 Deferred revenue, non-current portion 121,191 243,683 (122,492 ) Deferred revenue, current portion 876,861 902,709 (25,848 ) Total shareholders’ equity 547,872 492,492 55,380 Accumulated deficit (1,469,303 ) (1,524,683 ) 55,380 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Acquisition [Line Items] | |
Summary of Results of Operations Attributable to Acquisitions | The following information summarizes the results of operations attributable to the acquisitions included in the Group’s consolidated statement of operations since the acquisition date: For the year ended December 31, 2016 Shanghai Pukuan Luoyang Pucai Xi’an Shanghe Dalian Pude Luzhou Puxin Others RMB RMB RMB RMB RMB RMB Net revenues 24,430 12,420 4,139 4,089 — 94,313 Net income (loss) (1,610 ) (604 ) 319 (1,154 ) — (17,277 ) For the year ended December 31, 2017 ZMN Education Beijing GEDU Others RMB RMB RMB Net revenues 39,867 197,853 114,601 Net (loss) (59,169 ) (74,370 ) (13,096 ) For the year ended December 31, 2018 Shandong Zengyu Others RMB RMB Net revenues 8,074 4,495 Net (loss) (1,362 ) (27 ) 3. BUSINESS ACQUISITION -continued |
Shanghai Pukuan | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Acquisition of Shanghai Pukuan -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Amortization period RMB Cash and cash equivalents 2,887 Prepaid expenses and other current assets 17,121 Restricted cash 1,120 Accrued expenses and other current liabilities (2,568 ) Deferred revenue (19,807 ) Intangible assets-student base 4,700 6.7 years Deferred tax liabilities (1,175 ) Goodwill 17,922 Total 20,200 |
Luoyang Pucai | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Acquisition of Luoyang Pucai Education Technology Co., Ltd. (“Luoyang Pucai”) -continued This transaction was considered a business acquisition and recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 2,494 Prepaid expenses and other current assets 8,113 Property, plant and equipment, net 42 3-5 years Accrued expenses and other current liabilities (640 ) Deferred revenue (10,105 ) Intangible assets-student base 2,800 4.4 years Deferred tax liabilities (700 ) Goodwill 25,896 Total 27,900 |
Xi’an Shanghe | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Acquisition of Xi’an Shanghe Culture Development Co., Ltd. (“Xi’an Shanghe”) -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 3,998 Prepaid expenses and other current assets 5,874 Restricted cash 20 Property, plant and equipment, net 187 3-5 years Accrued expenses and other current liabilities (3,164 ) Deferred revenue (8,272 ) Intangible assets-student base 3,000 3.1 years Deferred tax liabilities (750 ) Goodwill 26,907 Total 27,800 |
Dalian Pude | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Acquisition of Dalian Pude Education Consulting Co., Ltd. (“Dalian Pude”) -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 1,475 Prepaid expenses and other current assets 28,060 Property, plant and equipment, net 20 3-5 years Accrued expenses and other current liabilities (8,848 ) Deferred revenue (20,659 ) Intangible assets-student base 9,200 4.1 years Deferred tax liabilities (2,300 ) Goodwill 44,752 Total 51,700 |
Luzhou Puxin | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Acquisition of Luzhou Puxin Culture Communication Co., Ltd. (“Luzhou Puxin”) -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 165 Prepaid expenses and other current assets 3,372 Property, plant and equipment, net 155 3-5 years Accrued expenses and other current liabilities (73 ) Deferred revenue (3,464 ) Intangible assets-student base 5,300 4 years Deferred tax liabilities (1,325 ) Goodwill 14,570 Total 18,700 |
Other 2016 Acquirees | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Other acquisitions in 2016 -continued These transactions were considered business acquisitions and therefore were recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisitions. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 5,280 Prepaid expenses and other current assets 36,412 Restricted cash 100 Property, plant and equipment, net 1,193 3-5 years Accrued expenses and other current liabilities (4,880 ) Deferred revenue (42,910 ) Intangible assets-student base 14,300 2.5-7 years Deferred tax liabilities (3,575 ) Goodwill 91,457 Total 97,377 |
ZMN Education | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Acquisition of ZMN Education -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 21,407 Prepaid expenses and other current assets 13,266 Restricted cash 1,008 Property, plant and equipment, net 9,723 3-5 years Rental deposits 7,285 Deferred revenue (208,345 ) Account payables (564 ) Accrued expenses and other current liabilities (32,857 ) Loans from third parties (23,802 ) Intangible assets-trademark 32,400 5.4 years Deferred tax liabilities (8,100 ) Goodwill 324,429 Total 135,850 |
Beijing GEDU | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Acquisition of Beijing GEDU -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 89,437 Inventories 6,620 Prepaid expenses and other current assets 117,333 Restricted cash 14,332 Property, plant and equipment, net 132,844 2-37 years Deferred tax assets 2,547 Rental deposits 18,381 Accounts payable (6,197 ) Accrued expenses and other current liabilities (79,167 ) Income tax payable (2,505 ) Deferred revenue (221,484 ) Franchise deposits (7,344 ) Intangible assets-trademark 140,000 Indefinite Intangible assets-relationship with partnership school 5,300 6.4 years Intangible assets-franchise agreement 4,400 3.4 years Deferred tax liabilities (54,164 ) Goodwill 323,354 Total 483,687 |
Other 2017 Acquirees | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Other acquisitions in 2017 -continued These transactions were considered business acquisitions and therefore were recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisitions. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 15,824 Inventories 256 Prepaid expenses and other current assets 13,221 Amounts due from related parties 63,194 Property, plant and equipment, net 1,377 3-5 years Accrued expenses and other current liabilities (12,388 ) Deferred revenue (85,197 ) Intangible assets-student base 27,100 3.5-5.9 years Deferred tax liabilities (6,775 ) Goodwill 158,158 Total 174,770 |
Shandong Zengyu | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Acquisition of Shandong Zengyu -continued This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Amortization period RMB Prepaid expenses and other current assets 37,169 Property, plant and equipment, net 1,241 3-5 years Rental deposits 290 Accrued expenses and other current liabilities (2,219 ) Deferred revenue (35,534 ) Intangible assets-student base 6,700 2.2 years Deferred tax liabilities (1,675 ) Goodwill 71,028 Total 77,000 |
Other 2018 Acquirees | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Other acquisitions in 2018 -continued These transactions were considered business acquisitions and therefore were recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisitions. The purchase price for the acquisition was allocated as follows: Amount Depreciation or amortization period RMB Cash and cash equivalents 54 Prepaid expenses and other current assets 8,504 Restricted cash 200 Accrued expenses and other current liabilities (769 ) Deferred revenue (8,704 ) Intangible assets-student base 1,100 3.5 years Deferred tax liabilities (275 ) Goodwill 19,876 Total 19,986 |
Shanghai Pukuan, Luoyang Pucai, Xi'an Shanghe, Dalian Pude, Luzhou Puxin and Other 2016 Acquirees | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information summarizes the results of operations of the Group for the year ended December 31, 2016 assuming that the acquisition of Shanghai Pukuan, Luoyang Pucai, Xi'an Shanghe, Dalian Pude, Luzhou Puxin and Other 2016 Acquirees which were completed in 2016 occurred as of January 1, 2016. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the year ended December 31, 2016 RMB Unaudited pro forma net revenues 640,094 pro forma net (loss) (137,567 ) |
ZMN Education, Beijing GEDU and Other 2017 Acquirees | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2016 and 2017 assuming that the acquisition of ZMN Education, Beijing GEDU and Other 2017 Acquirees which were completed in 2017 occurred as of January 1, 2016. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the years ended December 31, 2016 2017 RMB RMB Unaudited Unaudited pro forma net revenues 1,318,811 1,882,032 pro forma net (loss) (281,853 ) (511,354 ) |
Shandong Zengyu and Other 2018 Acquirees | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2017 and 2018 assuming that the acquisition of Shandong Zengyu and Other 2018 Acquirees which were completed in 2018 occurred as of January 1, 2017. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the years ended December 31, 2017 2018 RMB RMB Unaudited Unaudited pro forma net revenues 1,392,146 2,317,937 pro forma net (loss) (389,366 ) (824,909 ) |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Schedule of Prepaid Expense and Other Current Assets | Prepaid expenses and other current assets consisted of the following: As of December 31, 2017 2018 RMB RMB Prepaid rental expenses 71,324 63,134 Prepaid other service fees 45,478 45,415 Staff advances 8,811 11,125 Others 6,860 8,964 132,473 128,638 |
Plant, and Equipment, Net (Tabl
Plant, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of December 31, 2017 2018 RMB RMB Buildings 87,792 87,792 Electronic equipment 46,136 67,637 Motor vehicles 10,379 9,652 Furniture and education equipment 45,334 38,994 Leasehold improvement 100,670 163,879 Total 290,311 367,954 Less: Accumulated depreciation (69,099 ) (119,153 ) 221,212 248,801 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: As of December 31, 2017 2018 RMB RMB Student base 97,054 104,854 Trademark 172,400 172,400 Relationship with partnership school 5,300 5,300 Franchise agreement 4,400 4,400 Total 279,154 286,954 Less: Accumulated amortization (35,227 ) (67,976 ) 243,927 218,978 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The Group has two reporting units that carry goodwill. The changes in carrying amount of goodwill for the years ended December 31, 2017 and 2018 were as follows: As of December 31, 2017 2018 RMB RMB Costs: Beginning balance 346,972 1,152,913 Acquisition of subsidiaries and schools 805,941 90,904 Ending balance 1,152,913 1,243,817 Goodwill impairment loss — — Goodwill, net 1,152,913 1,243,817 |
Accrued Expenses And Other Cu_2
Accrued Expenses And Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities Current [Abstract] | |
Components of Accrued Expenses and Other Current Liabilities | The components of accrued expenses and other current liabilities were as follows: As of December 31, 2017 2018 RMB RMB Salary and welfare payable 178,078 216,671 Refund liabilities (Note a) — 92,960 Accrued expenses 50,941 48,447 Consideration payable in connection with business acquisitions 68,199 48,128 Advance from third parties (Note b) 23,802 79,500 Other tax payable 9,578 23,264 Payables for purchase of property, plant and equipment 1,253 1,332 Others 18,595 5,321 350,446 515,623 Note a : Refund liabilities represented estimated amounts of service fee collected that is subject to refund to the customers related to K-12 tutoring services and study abroad tutoring services. Note b: ZMN Education entered into loan agreements with two individuals in 2013 and 2015 at the amount of RMB10,000 and RMB13,802, respectively, which were fully repaid as of December 31, 2018. 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES -continued In 2018, Puxin Education entered into loan agreements amounted to RMB29,500 with a third party, the annual interest rate ranged from 8.2% to 9% and the term of the loans was 12 months, Taiyuan Puxin Arts and Mr. Yunlong Sha were joint guarantors under the loan agreements. Taiyuan Puxin Arts also entered into loan agreements amounting of RMB50,000 with the third party, the annual interest rate ranged from 8.2% to 8.8% and the term of the loans was 6 months, Puxin Education and Mr. Yunlong Sha were joint guarantors under the loan agreements. Puxin Education entered into four other loan agreements in a total amount of RMB60,000 with third parties. The annual interest rates ranged from nil to 5.655% and the terms of the loans ranged from 1 month to 3 months. For one of the loans amounted to RMB30,000, Mr. Yunlong Sha was guarantor under the loan agreement. The four loans are fully repaid as of December 31, 2018. For the year ended December 31, 2018, the Group recognized interest expense of RMB2,433 for the loans. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | 12 . FAIR VALUE MEASUREMENT -continued Measured or disclosed at fair value on a recurring basis -continued Fair Value Measurement as of December 31, 2018 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents 778,006 — — 778,006 Restricted cash 40,971 — — 40,971 Promissory notes — 361,888 — 361,888 Derivative liabilities — — 63,942 63,942 Total 818,977 361,888 63,942 1,244,807 Fair Value Measurement as of December 31, 2017 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents 164,684 — — 164,684 Restricted cash 24,478 — — 24,478 Convertible notes — — 499,192 499,192 Promissory notes — 162,658 — 162,658 Derivative liabilities — — 18,218 18,218 Total 189,162 162,658 517,410 869,230 |
Schedule of Reconciliation of Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The following is a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2016, 2017 and 2018: Convertible notes Derivative liabilities Warrants Balance as of January 1, 2016 and 2017 — — — Issuance of convertible notes 443,242 17,964 — Changes in fair value 69,660 676 — Payment of interest (2,998 ) — — Exchange rate effect (10,712 ) (422 ) — Balance as of December 31, 2017 499,192 18,218 — Issuance of convertible notes 50,000 — — Extinguishment of convertible notes (207,300 ) — — Issuance of warrants — — 14,800 Conversion to ordinary shares (438,720 ) — — Changes in fair value 102,260 44,288 (14,800 ) Exchange rate effect (5,432 ) 1,436 — Balance as of December 31, 2018 — 63,942 — |
Convertible Notes | |
Schedule of Key Assumptions Used in Valuation | The key assumptions used in valuation of convertible notes are summarized in the table below: For the years ended December 31, 2017 2018 Probability for conversion 80 % 80 % Probability for redemption 20 % 20 % Remaining life 2.5 – 4.8 2.3 – 4.3 |
Derivative Liabilities | |
Schedule of Key Assumptions Used in Valuation | The key assumptions used in valuation of derivative liabilities are summarized in the table below: For the years ended December 31, 2017 2018 Probability for conversion 80 % 100 % Exit period 2018/6/30 – 2019/6/30 2018/6/30 – 2019/6/30 Volatility 40 % 54 % |
Warrants | |
Schedule of Key Assumptions Used in Valuation | The key assumptions used in valuation of warrants are summarized in the table below: For the year ended December 31, 2018 Probability for conversion — Conversion price discount rate 90% |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Assumptions used to Determined the Estimated Fair Value of Options using the Binomial Option Pricing Model | The Company determined the estimated fair value of the options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm, with the following assumptions used in the years ended December 31, 2016, 2017 and 2018. For the years ended December 31, Grant date 2016 2017 2018 Risk-free interest rate 1.94%-2.92% 2.84%-2.97% 3.40 % Volatility 47% 45%-47% 46 % Dividend yield — — — Exercise multiples 2.2-2.8 2.2-2.8 2.2-2.8 Life of options 7.0 7.0 7.0 Fair value of underlying ordinary shares 23.66-28.23 29.46-48.31 49.67 |
Summary of Stock Options Activity | 1 3 . SHARE-BASED COMPENSATION -continued The activity in stock options during years ended December 31, 2016, 2017 and 2018 was set out below: Outstanding options Number of options Weighted average exercise price Weighted average grant date fair value Weighted average remaining contractual term (years) Aggregate intrinsic value Options outstanding at January 1, 2016 3,061,880 0.27 10.00 5.69 Granted 2,526,338 0.49 25.38 6.62 Exercised 1,468,620 0.50 25.35 6.62 Options outstanding at December 31, 2016 4,119,598 0.32 13.96 5.92 114,959 Granted 3,301,140 20.46 27.53 6.61 Exercised 828,200 0.36 35.79 6.46 Forfeited 27,044 26.20 25.01 6.57 Options outstanding at December 31, 2017 6,565,494 10.33 17.99 5.57 249,333 Granted 16,400,000 48.78 24.20 6.25 Exercised 34,112 0.35 24.45 4.43 Forfeited 464,009 33.39 22.50 5.64 Options outstanding at December 31, 2018 22,467,373 37.77 22.51 5.78 84,969 Options vested and expected to vest as of December 31, 2018 22,467,373 37.77 22.51 5.78 84,969 Option exercisable as of December 31, 2018 13,896,097 40.35 22.58 5.86 48,409 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Current and Deferred Income Tax Expenses | The current and deferred components of the income tax expenses appearing in the consolidated statement of operations were as follows: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Current tax expenses 3,535 8,258 14,265 Deferred tax expenses (3,147 ) (5,822 ) (8,943 ) 388 2,436 5,322 |
Summary of Principle Components of Deferred Tax | The principle components of deferred taxes were as follows: As of December 31, 2017 2018 RMB RMB Deferred tax assets Accrued expenses 32,333 32,290 Convertible notes — change in fair value 2,550 — Net operating loss carrying forwards 78,692 149,628 Total deferred tax assets 113,575 181,918 Less: Valuation allowance (110,563 ) (178,462 ) Deferred tax assets, net 3,012 3,456 As of December 31, 2018, the Group had net operating loss carried forward of RMB598,512 from the Company’s PRC entities, which will expire on various dates from December 31, 2019 to December 31, 2023. As of December 31, 2017 2018 RMB RMB Deferred tax liabilities Acquired intangible assets 77,580 71,031 Total deferred tax liabilities 77,580 71,031 |
Reconciliation of Effective Tax Rate and Statutory Income Tax Rate | The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations was as follow: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Loss before income taxes (127,216 ) (394,798 ) (828,087 ) Income tax benefit computed at an applicable tax rate of 25% (31,804 ) (98,699 ) (207,022 ) Permanent differences 13,948 13,279 106,509 Effect of income tax rate differences in jurisdictions other than PRC — — 38,490 Effect of preferential tax rate (28 ) (26 ) (554 ) Change in valuation allowance 18,272 87,882 67,899 388 2,436 5,322 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share for the periods indicated: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Numerator used in basic and diluted net loss per share: Net loss attributable to ordinary shareholders of Puxin Limited (127,556 ) (397,313 ) (833,411 ) Shares (denominator): Weighted average common shares outstanding used in computing basic and diluted net loss per share (Note 1) 98,670,361 99,705,361 144,157,947 Net loss per share basic and diluted (1.29 ) (3.98 ) (5.78 ) |
Related Party Transaction (Tabl
Related Party Transaction (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Significant Balances Between the Group and its Related Parties | The significant balances between the Group and its related parties were as follows: As of December 31, 2017 2018 RMB RMB Amounts due from: Puxian 13 — Ms. Wenjing Song 100 — 113 — Amounts due to: Mr. Yunlong Sha 3,836 43,993 Ms. Wenjing Song — 10,500 3,836 54,493 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-cancelable Operating Leases | Future minimum payments under non-cancelable operating leases related to offices and schools consisted of the following at December 31, 2018: Years ending December 31, 2019 303,126 2020 217,290 2021 148,625 2022 90,340 2023 and thereafter 95,006 854,387 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Gross Profit by Segment | The revenue and gross profit by segments were as follows: For the year ended December 31, 2016 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 370,712 68,469 439,181 Cost of revenues 217,797 40,198 257,995 Gross profit 152,915 28,271 181,186 For the year ended December 31, 2017 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 884,148 398,414 1,282,562 Cost of revenues 555,885 238,457 794,342 Gross profit 328,263 159,957 488,220 For the year ended December 31, 2018 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 1,182,397 1,045,720 2,228,117 Cost of revenues 706,917 535,972 1,242,889 Gross profit 475,480 509,748 985,228 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Details) - CNY (¥) | Aug. 04, 2017 | Jun. 30, 2018 | Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Organization And Principal Activities [Line Items] | |||||
Aggregate shares issued | 99,990,000 | ||||
Ordinary Shares | |||||
Organization And Principal Activities [Line Items] | |||||
Aggregate shares issued | 26,827,744 | ||||
VIE | |||||
Organization And Principal Activities [Line Items] | |||||
Maximum value of assets in single transaction | ¥ 100,000 | ||||
VIE and Subsidiaries and Schools | |||||
Organization And Principal Activities [Line Items] | |||||
Percentage of aggregate consolidated assets | 59.40% | 99.60% | |||
Percentage of aggregate consolidated liabilities | 85.10% | 75.20% | |||
IPO | |||||
Organization And Principal Activities [Line Items] | |||||
Aggregate shares issued | 16,560,000 | ||||
IPO | Preferred Series A Shares | |||||
Organization And Principal Activities [Line Items] | |||||
Aggregate shares issued | 11,917,880 | ||||
IPO | Ordinary Shares | |||||
Organization And Principal Activities [Line Items] | |||||
Aggregate shares issued | 52,082,120 | 16,560,000 | |||
IPO | VIE | |||||
Organization And Principal Activities [Line Items] | |||||
Percentage of equity interest transfer to related party of holder | 3.6335% | ||||
IPO | VIE | Mr. Yunlong Sha | |||||
Organization And Principal Activities [Line Items] | |||||
Percentage of equity interest with preferential feature sold | 5.00% |
Organization and Principal Ac_4
Organization and Principal Activities - Schedule of Details of Subsidiaries, VIE and Its Subsidiaries and Schools (Details) | 12 Months Ended |
Dec. 31, 2018 | |
VIE | Puxin Education | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Sep. 28, 2014 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Beijing Shangxin | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Sep. 28, 2014 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Beijing Meikaida | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jun. 18, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Beijing Meitong | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jul. 22, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Yunnan Pude | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jan. 4, 2016 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Taiyuan Puxin Arts | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Apr. 30, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Taiyuan Fubusi | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Apr. 30, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Taiyuan Puxin Communication | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jun. 30, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Taiyuan Mercan | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jun. 30, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Tianjin Xinsiyuan | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jun. 30, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Tianjin Shengjia | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jun. 30, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Guizhou Puxintian | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Nov. 22, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Qingzhen Tiantian | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Nov. 22, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Baiyun Tiantian | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Nov. 22, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Wudang Tiantian | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Nov. 22, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Huaxi Tiantian | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Nov. 22, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Yunyan Tiantian | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Nov. 22, 2015 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Nanjing Diyu | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jan. 18, 2016 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Nanjing Innovation | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jan. 18, 2016 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Shanghai Pukuan | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | May 5, 2016 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Shanghai Xinkebiao | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | May 5, 2016 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Beijing Hope | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jun. 21, 2016 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | ZMN Education | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jul. 31, 2017 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Shanghai GEDU | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Aug. 16, 2017 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Shandong Zengyu | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Nov. 1, 2018 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
VIE’s significant subsidiaries and schools | Jinan Tiancai | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Nov. 1, 2018 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Subsidiaries | Prepshine HK | Hong Kong | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Apr. 13, 2017 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Holding company |
Subsidiaries | Purong Information | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Jan. 8, 2018 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Holding company |
Subsidiaries | Beijing GEDU | PRC | |
Organization And Principal Activities [Line Items] | |
Later of date of establishment or acquisition | Aug. 16, 2017 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Organization and Principal Ac_5
Organization and Principal Activities - Schedule of Details of Subsidiaries, VIE and Its Subsidiaries and Schools (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Organization And Principal Activities [Line Items] | ||||
Net revenues | ¥ 2,228,117 | $ 324,066 | ¥ 1,282,562 | ¥ 439,181 |
VIE’s significant subsidiaries and schools | ||||
Organization And Principal Activities [Line Items] | ||||
Net revenues | ¥ 1,443,786 | ¥ 690,608 | ¥ 256,055 |
Organization and Principal Ac_6
Organization and Principal Activities - Schedule of Financial Information of VIE and Its Subsidiaries and Schools (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 778,006 | ¥ 164,684 | ¥ 100,109 | $ 113,156 | |
Prepaid expenses and other current assets | 128,638 | 132,473 | 18,710 | ||
Total current assets | 916,303 | 307,678 | 133,271 | ||
Total assets | 2,737,019 | 2,008,393 | 398,084 | ||
Total current liabilities | 1,931,220 | 1,270,784 | 280,887 | ||
Total liabilities | 2,189,147 | 2,161,178 | $ 318,400 | ||
Net revenues | 2,228,117 | $ 324,066 | 1,282,562 | 439,181 | |
Net loss | (833,409) | (121,215) | (397,234) | (127,604) | |
Net cash generated from (used in) operating activities | (92,905) | (13,511) | 80,266 | 81,409 | |
Net cash used in investing activities | (156,917) | (22,823) | (629,704) | (89,259) | |
Net cash generated from financing activities | 831,506 | $ 120,937 | 629,386 | 70,000 | |
VIE and Subsidiaries and Schools | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 232,608 | 160,274 | |||
Prepaid expenses and other current assets | 121,145 | 128,928 | |||
Total current assets | 363,412 | 299,723 | |||
Total assets | 1,627,032 | 2,000,437 | |||
Total current liabilities | 1,668,293 | 1,265,438 | |||
Total liabilities | 1,862,278 | 1,625,964 | |||
Net revenues | 2,219,638 | 1,282,562 | 439,181 | ||
Net loss | (254,754) | (331,621) | (127,604) | ||
Net cash generated from (used in) operating activities | (81,041) | 80,266 | 81,409 | ||
Net cash used in investing activities | (156,917) | (141,025) | (89,259) | ||
Net cash generated from financing activities | ¥ 20,505 | ¥ 140,000 | ¥ 70,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) ¥ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Jan. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Renminbi ("RMB") to per one U.S. dollar exchange rate | 6.8755 | 6.8755 | ||||||
Goodwill impairment charge | $ | $ 0 | $ 0 | $ 0 | |||||
Accumulated deficit | ¥ (1,469,303) | $ (213,701,000) | ¥ (679,613) | |||||
Refund liability after the trial period | [1] | 92,960 | ||||||
Remaining performance obligations, amount | ¥ 188,357 | |||||||
Tutoring services and test preparation services maximum amortization period | 1 year | 1 year | ||||||
Revenue, remaining performance obligation, expected timing of unsatisfaction, maximum period | 1 year | 1 year | ||||||
Small scale VAT payer, VAT rate | 3.00% | 3.00% | ||||||
General VAT payer, VAT rate | 6.00% | 6.00% | ||||||
Aggregate Amounts Denominated in RMB | ¥ 279,162 | ¥ 184,752 | ||||||
Study-abroad test preparation services | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Refund liability after the trial period | $ | $ 0 | |||||||
Nonacademic Educational Programs and Services | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Small scale VAT payer, VAT rate | 3.00% | 3.00% | ||||||
Topic 606 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Accumulated deficit | ¥ (1,469,303) | |||||||
Topic 606 | Cumulative Impact of Adopting Topic 606 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Accumulated deficit | 55,380 | ¥ 48,316 | ||||||
Revenues | ¥ 7,064 | |||||||
[1] | Refund liabilities represented estimated amounts of service fee collected that is subject to refund to the customers related to K-12 tutoring services and study abroad tutoring services. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of the Assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 37 years |
Electronic Equipment | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Motor Vehicles | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 5 years |
Furniture and Education Equipment | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 5 years |
Leasehold Improvement | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | Shorter of lease term or estimated economic life |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Acquired Intangible Assets Other than Goodwill (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Student Base | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets, useful life | 2 years 2 months 12 days |
Student Base | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets, useful life | 7 years |
Trademark | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets, useful life | 5 years 4 months 24 days |
Acquired intangible assets, amortization method | Indefinite |
Relationship with Partnership School | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets, useful life | 6 years 4 months 24 days |
Franchise Agreement | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets, useful life | 3 years 4 months 24 days |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Disaggregated by Revenue Sources (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | ¥ 2,228,117 | $ 324,066 | ¥ 1,282,562 | ¥ 439,181 |
K-12 tutoring services - group class | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 817,843 | 611,268 | 298,733 | |
K-12 tutoring services - personalized | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 364,554 | 272,880 | 71,979 | |
Study-abroad test preparation services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 860,687 | 334,288 | 59,145 | |
Study-abroad consulting services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | ¥ 185,033 | ¥ 64,126 | ¥ 9,324 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Additional Information (Details 1) ¥ in Thousands | Dec. 31, 2018CNY (¥) |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 188,357 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 129,473 |
Remaining performance obligations, revenue recognition period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 44,596 |
Remaining performance obligations, revenue recognition period | 24 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 14,288 |
Remaining performance obligations, revenue recognition period |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Impact of Adoption of ASC 606 on Consolidated Balance Sheet and Statement of Operations (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2016CNY (¥)¥ / shares | Dec. 31, 2018USD ($) | Jan. 31, 2018CNY (¥) | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Net revenues | ¥ 2,228,117 | $ 324,066 | ¥ 1,282,562 | ¥ 439,181 | ||
Cost of revenues | 1,242,889 | 180,771 | 794,342 | 257,995 | ||
Gross profit | 985,228 | 143,295 | 488,220 | 181,186 | ||
Operating expenses: | ||||||
Selling expenses | 848,088 | 123,349 | 444,927 | 123,370 | ||
General and administrative expenses | 775,883 | 112,848 | 362,748 | 185,496 | ||
Total operating expenses | 1,623,971 | 236,197 | 807,675 | 308,866 | ||
Operating loss | (638,743) | (92,902) | (319,455) | (127,680) | ||
Interest expense | 51,901 | 7,549 | 5,556 | |||
Interest income | 2,826 | 411 | 549 | 464 | ||
Foreign exchange loss | 7,621 | 1,108 | ||||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 131,748 | 19,162 | 70,336 | |||
Loss on extinguishment of convertible notes | 900 | 131 | 0 | 0 | ||
Loss before income taxes | (828,087) | (120,441) | (394,798) | (127,216) | ||
Net loss | (833,409) | (121,215) | (397,234) | (127,604) | ||
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (833,411) | $ (121,215) | ¥ (397,313) | ¥ (127,556) | ||
Net loss per share attributable to ordinary shareholders of Puxin Limited | ||||||
Basic and diluted | (per share) | ¥ (5.78) | $ (0.84) | ¥ (3.98) | ¥ (1.29) | ||
Total assets | ¥ 2,737,019 | ¥ 2,008,393 | $ 398,084 | |||
Total liabilities | 2,189,147 | 2,161,178 | 318,400 | |||
Deferred revenue, non-current portion | 121,191 | 128,890 | 17,626 | |||
Deferred revenue, current portion | 876,861 | 906,480 | 127,534 | |||
Total shareholders’ equity | 547,893 | (272,762) | 79,687 | |||
Accumulated deficit | (1,469,303) | ¥ (679,613) | $ (213,701) | |||
Topic 606 | ||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Net revenues | 2,228,117 | |||||
Cost of revenues | 1,242,889 | |||||
Gross profit | 985,228 | |||||
Operating expenses: | ||||||
Selling expenses | 848,088 | |||||
General and administrative expenses | 775,883 | |||||
Total operating expenses | 1,623,971 | |||||
Operating loss | (638,743) | |||||
Interest expense | 51,901 | |||||
Interest income | 2,826 | |||||
Foreign exchange loss | 7,621 | |||||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 131,748 | |||||
Loss on extinguishment of convertible notes | 900 | |||||
Loss before income taxes | (828,087) | |||||
Net loss | (833,409) | |||||
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (833,411) | |||||
Net loss per share attributable to ordinary shareholders of Puxin Limited | ||||||
Basic and diluted | ¥ / shares | ¥ (5.78) | |||||
Total assets | ¥ 2,737,019 | |||||
Total liabilities | 2,189,147 | |||||
Accrued expenses and other current liabilities - refund liabilities | 92,960 | |||||
Deferred revenue, non-current portion | 121,191 | |||||
Deferred revenue, current portion | 876,861 | |||||
Total shareholders’ equity | 547,872 | |||||
Accumulated deficit | (1,469,303) | |||||
Topic 606 | Balances without adoption of ASC 606 | ||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Net revenues | 2,221,053 | |||||
Cost of revenues | 1,242,889 | |||||
Gross profit | 978,164 | |||||
Operating expenses: | ||||||
Selling expenses | 848,088 | |||||
General and administrative expenses | 775,883 | |||||
Total operating expenses | 1,623,971 | |||||
Operating loss | (645,807) | |||||
Interest expense | 51,901 | |||||
Interest income | 2,826 | |||||
Foreign exchange loss | 7,621 | |||||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 131,748 | |||||
Loss on extinguishment of convertible notes | 900 | |||||
Loss before income taxes | (835,151) | |||||
Net loss | (840,473) | |||||
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (840,475) | |||||
Net loss per share attributable to ordinary shareholders of Puxin Limited | ||||||
Basic and diluted | ¥ / shares | ¥ (5.83) | |||||
Total assets | ¥ 2,737,019 | |||||
Total liabilities | 2,244,527 | |||||
Accrued expenses and other current liabilities - refund liabilities | 0 | |||||
Deferred revenue, non-current portion | 243,683 | |||||
Deferred revenue, current portion | 902,709 | |||||
Total shareholders’ equity | 492,492 | |||||
Accumulated deficit | (1,524,683) | |||||
Topic 606 | Effect of Change Higher/(Lower) | ||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Net revenues | 7,064 | |||||
Cost of revenues | 0 | |||||
Gross profit | 7,064 | |||||
Operating expenses: | ||||||
Selling expenses | 0 | |||||
General and administrative expenses | 0 | |||||
Total operating expenses | 0 | |||||
Operating loss | 7,064 | |||||
Interest expense | 0 | |||||
Interest income | 0 | |||||
Foreign exchange loss | 0 | |||||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 0 | |||||
Loss on extinguishment of convertible notes | 0 | |||||
Loss before income taxes | 7,064 | |||||
Net loss | 7,064 | |||||
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ 7,064 | |||||
Net loss per share attributable to ordinary shareholders of Puxin Limited | ||||||
Basic and diluted | ¥ / shares | ¥ 0.05 | |||||
Total assets | ¥ 0 | |||||
Total liabilities | (55,380) | |||||
Accrued expenses and other current liabilities - refund liabilities | 92,960 | |||||
Deferred revenue, non-current portion | (122,492) | |||||
Deferred revenue, current portion | (25,848) | |||||
Total shareholders’ equity | 55,380 | |||||
Accumulated deficit | ¥ 55,380 | ¥ 48,316 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) ¥ in Thousands, $ in Thousands | Nov. 01, 2018CNY (¥) | Aug. 16, 2017CNY (¥) | Aug. 16, 2017USD ($) | Jul. 31, 2017CNY (¥) | Nov. 28, 2016CNY (¥) | Nov. 15, 2016CNY (¥) | Jul. 31, 2016CNY (¥) | May 05, 2016CNY (¥) | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Shanghai Pukuan | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||
Total consideration for acquisition | ¥ 20,200 | ||||||||||
Total cash consideration for acquisition | ¥ 19,600 | ||||||||||
Luoyang Pucai | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||
Total consideration for acquisition | ¥ 27,900 | ||||||||||
Total cash consideration for acquisition | ¥ 20,500 | ||||||||||
Xi’an Shanghe | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||
Total consideration for acquisition | ¥ 27,800 | ||||||||||
Total cash consideration for acquisition | ¥ 25,200 | ||||||||||
Dalian Pude | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||
Total consideration for acquisition | ¥ 51,700 | ||||||||||
Total cash consideration for acquisition | ¥ 47,000 | ||||||||||
Luzhou Puxin | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||
Total consideration for acquisition | ¥ 18,700 | ||||||||||
Total cash consideration for acquisition | ¥ 14,300 | ||||||||||
Other 2016 Acquirees | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||
Total consideration for acquisition | ¥ 97,377 | ||||||||||
Total cash consideration for acquisition | ¥ 84,677 | ||||||||||
ZMN Education | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||
Total consideration for acquisition | ¥ 135,850 | ||||||||||
Total cash consideration for acquisition | ¥ 65,250 | ||||||||||
Beijing GEDU | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | 100.00% | |||||||||
Total cash consideration for acquisition | ¥ 483,687 | $ 72,300 | |||||||||
Other 2017 Acquirees | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||
Total consideration for acquisition | ¥ 174,770 | ||||||||||
Total cash consideration for acquisition | ¥ 155,170 | ||||||||||
Shandong Zengyu | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||
Total cash consideration for acquisition | ¥ 77,000 | ||||||||||
Other 2018 Acquirees | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||
Total consideration for acquisition | ¥ 19,986 | ||||||||||
Total cash consideration for acquisition | ¥ 19,266 | ||||||||||
Other 2018 Acquirees | Long belief Limited | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Warrant issued during period, shares, purchase of assets | shares | 49,348 |
Business Acquisition - Allocati
Business Acquisition - Allocation of Purchase Price for Acquisition (Details) ¥ in Thousands, $ in Thousands | Nov. 01, 2018CNY (¥) | Aug. 16, 2017CNY (¥) | Jul. 31, 2017CNY (¥) | Nov. 28, 2016CNY (¥) | Nov. 15, 2016CNY (¥) | Jul. 31, 2016CNY (¥) | May 05, 2016CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||||
Goodwill | ¥ 1,243,817 | ¥ 1,152,913 | $ 180,906 | ||||||||
Student Base | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, intangible assets | 2 years 2 months 12 days | ||||||||||
Student Base | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, intangible assets | 7 years | ||||||||||
Trademark | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, intangible assets | 5 years 4 months 24 days | ||||||||||
Relationship with Partnership School | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, intangible assets | 6 years 4 months 24 days | ||||||||||
Franchise Agreement | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, intangible assets | 3 years 4 months 24 days | ||||||||||
Shanghai Pukuan | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | ¥ 2,887 | ||||||||||
Prepaid expenses and other current assets | 17,121 | ||||||||||
Restricted cash | 1,120 | ||||||||||
Accrued expenses and other current liabilities | (2,568) | ||||||||||
Deferred revenue | (19,807) | ||||||||||
Deferred tax liabilities | (1,175) | ||||||||||
Goodwill | 17,922 | ||||||||||
Total | 20,200 | ||||||||||
Shanghai Pukuan | Student Base | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 4,700 | ||||||||||
Depreciation or amortization period, intangible assets | 6 years 8 months 12 days | ||||||||||
Luoyang Pucai | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | ¥ 2,494 | ||||||||||
Prepaid expenses and other current assets | 8,113 | ||||||||||
Property, plant and equipment, net | 42 | ||||||||||
Accrued expenses and other current liabilities | (640) | ||||||||||
Deferred revenue | (10,105) | ||||||||||
Deferred tax liabilities | (700) | ||||||||||
Goodwill | 25,896 | ||||||||||
Total | ¥ 27,900 | ||||||||||
Luoyang Pucai | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||||
Luoyang Pucai | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||||
Luoyang Pucai | Student Base | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 2,800 | ||||||||||
Depreciation or amortization period, intangible assets | 4 years 4 months 24 days | ||||||||||
Xi’an Shanghe | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | ¥ 3,998 | ||||||||||
Prepaid expenses and other current assets | 5,874 | ||||||||||
Property, plant and equipment, net | 187 | ||||||||||
Restricted cash | 20 | ||||||||||
Accrued expenses and other current liabilities | (3,164) | ||||||||||
Deferred revenue | (8,272) | ||||||||||
Deferred tax liabilities | (750) | ||||||||||
Goodwill | 26,907 | ||||||||||
Total | ¥ 27,800 | ||||||||||
Xi’an Shanghe | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||||
Xi’an Shanghe | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||||
Xi’an Shanghe | Student Base | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 3,000 | ||||||||||
Depreciation or amortization period, intangible assets | 3 years 1 month 6 days | ||||||||||
Dalian Pude | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | ¥ 1,475 | ||||||||||
Prepaid expenses and other current assets | 28,060 | ||||||||||
Property, plant and equipment, net | 20 | ||||||||||
Accrued expenses and other current liabilities | (8,848) | ||||||||||
Deferred revenue | (20,659) | ||||||||||
Deferred tax liabilities | (2,300) | ||||||||||
Goodwill | 44,752 | ||||||||||
Total | ¥ 51,700 | ||||||||||
Dalian Pude | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||||
Dalian Pude | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||||
Dalian Pude | Student Base | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 9,200 | ||||||||||
Depreciation or amortization period, intangible assets | 4 years 1 month 6 days | ||||||||||
Luzhou Puxin | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | ¥ 165 | ||||||||||
Prepaid expenses and other current assets | 3,372 | ||||||||||
Property, plant and equipment, net | 155 | ||||||||||
Accrued expenses and other current liabilities | (73) | ||||||||||
Deferred revenue | (3,464) | ||||||||||
Deferred tax liabilities | (1,325) | ||||||||||
Goodwill | 14,570 | ||||||||||
Total | ¥ 18,700 | ||||||||||
Luzhou Puxin | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||||
Luzhou Puxin | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||||
Luzhou Puxin | Student Base | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 5,300 | ||||||||||
Depreciation or amortization period, intangible assets | 4 years | ||||||||||
Other 2016 Acquirees | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | ¥ 5,280 | ||||||||||
Prepaid expenses and other current assets | 36,412 | ||||||||||
Property, plant and equipment, net | 1,193 | ||||||||||
Restricted cash | 100 | ||||||||||
Accrued expenses and other current liabilities | (4,880) | ||||||||||
Deferred revenue | (42,910) | ||||||||||
Deferred tax liabilities | (3,575) | ||||||||||
Goodwill | 91,457 | ||||||||||
Total | ¥ 97,377 | ||||||||||
Other 2016 Acquirees | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||||
Other 2016 Acquirees | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||||
Other 2016 Acquirees | Student Base | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 14,300 | ||||||||||
Other 2016 Acquirees | Student Base | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, intangible assets | 2 years 6 months | ||||||||||
Other 2016 Acquirees | Student Base | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, intangible assets | 7 years | ||||||||||
ZMN Education | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | ¥ 21,407 | ||||||||||
Prepaid expenses and other current assets | 13,266 | ||||||||||
Property, plant and equipment, net | 9,723 | ||||||||||
Restricted cash | 1,008 | ||||||||||
Accrued expenses and other current liabilities | (32,857) | ||||||||||
Deferred revenue | (208,345) | ||||||||||
Deferred tax liabilities | (8,100) | ||||||||||
Goodwill | 324,429 | ||||||||||
Total | 135,850 | ||||||||||
Rental deposits | 7,285 | ||||||||||
Account payables | (564) | ||||||||||
Loans from third parties | ¥ (23,802) | ||||||||||
ZMN Education | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||||
ZMN Education | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||||
ZMN Education | Trademark | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 32,400 | ||||||||||
Depreciation or amortization period, intangible assets | 5 years 4 months 24 days | ||||||||||
Beijing GEDU | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | ¥ 89,437 | ||||||||||
Inventories | 6,620 | ||||||||||
Prepaid expenses and other current assets | 117,333 | ||||||||||
Property, plant and equipment, net | 132,844 | ||||||||||
Restricted cash | 14,332 | ||||||||||
Accrued expenses and other current liabilities | (79,167) | ||||||||||
Deferred revenue | (221,484) | ||||||||||
Deferred tax liabilities | (54,164) | ||||||||||
Goodwill | 323,354 | ||||||||||
Total | 483,687 | ||||||||||
Deferred tax assets | 2,547 | ||||||||||
Rental deposits | 18,381 | ||||||||||
Account payables | (6,197) | ||||||||||
Income tax payable | (2,505) | ||||||||||
Franchise deposits | (7,344) | ||||||||||
Beijing GEDU | Trademark | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 140,000 | ||||||||||
Depreciation or amortization period, intangible assets | Indefinite | ||||||||||
Beijing GEDU | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 2 years | ||||||||||
Beijing GEDU | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 37 years | ||||||||||
Beijing GEDU | Relationship with Partnership School | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 5,300 | ||||||||||
Depreciation or amortization period, intangible assets | 6 years 4 months 24 days | ||||||||||
Beijing GEDU | Franchise Agreement | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 4,400 | ||||||||||
Depreciation or amortization period, intangible assets | 3 years 4 months 24 days | ||||||||||
Other 2017 Acquirees | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | 15,824 | ||||||||||
Inventories | 256 | ||||||||||
Prepaid expenses and other current assets | 13,221 | ||||||||||
Property, plant and equipment, net | 1,377 | ||||||||||
Accrued expenses and other current liabilities | (12,388) | ||||||||||
Deferred revenue | (85,197) | ||||||||||
Deferred tax liabilities | (6,775) | ||||||||||
Goodwill | 158,158 | ||||||||||
Total | 174,770 | ||||||||||
Amounts due from related parties | ¥ 63,194 | ||||||||||
Other 2017 Acquirees | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||||
Other 2017 Acquirees | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||||
Other 2017 Acquirees | Student Base | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 27,100 | ||||||||||
Other 2017 Acquirees | Student Base | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, intangible assets | 3 years 6 months | ||||||||||
Other 2017 Acquirees | Student Base | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, intangible assets | 5 years 10 months 24 days | ||||||||||
Shandong Zengyu | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Prepaid expenses and other current assets | ¥ 37,169 | ||||||||||
Property, plant and equipment, net | 1,241 | ||||||||||
Accrued expenses and other current liabilities | (2,219) | ||||||||||
Deferred revenue | (35,534) | ||||||||||
Deferred tax liabilities | (1,675) | ||||||||||
Goodwill | 71,028 | ||||||||||
Total | 77,000 | ||||||||||
Rental deposits | ¥ 290 | ||||||||||
Shandong Zengyu | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||||
Shandong Zengyu | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||||
Shandong Zengyu | Student Base | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 6,700 | ||||||||||
Depreciation or amortization period, intangible assets | 2 years 2 months 12 days | ||||||||||
Other 2018 Acquirees | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | ¥ 54 | ||||||||||
Prepaid expenses and other current assets | 8,504 | ||||||||||
Restricted cash | 200 | ||||||||||
Accrued expenses and other current liabilities | (769) | ||||||||||
Deferred revenue | (8,704) | ||||||||||
Deferred tax liabilities | (275) | ||||||||||
Goodwill | 19,876 | ||||||||||
Total | 19,986 | ||||||||||
Other 2018 Acquirees | Student Base | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | ¥ 1,100 | ||||||||||
Depreciation or amortization period, intangible assets | 3 years 6 months |
Business Acquisition - Summary
Business Acquisition - Summary of Results of Operations Attributable to Acquisitions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shanghai Pukuan | |||
Business Acquisition [Line Items] | |||
Net revenues | ¥ 24,430 | ||
Net income (loss) | (1,610) | ||
Dalian Pude | |||
Business Acquisition [Line Items] | |||
Net revenues | 4,089 | ||
Net income (loss) | (1,154) | ||
Luoyang Pucai | |||
Business Acquisition [Line Items] | |||
Net revenues | 12,420 | ||
Net income (loss) | (604) | ||
Other 2016 Acquirees | |||
Business Acquisition [Line Items] | |||
Net revenues | 94,313 | ||
Net income (loss) | (17,277) | ||
Xi’an Shanghe | |||
Business Acquisition [Line Items] | |||
Net revenues | 4,139 | ||
Net income (loss) | ¥ 319 | ||
ZMN Education | |||
Business Acquisition [Line Items] | |||
Net revenues | ¥ 39,867 | ||
Net income (loss) | (59,169) | ||
Beijing GEDU | |||
Business Acquisition [Line Items] | |||
Net revenues | 197,853 | ||
Net income (loss) | (74,370) | ||
Other 2017 Acquirees | |||
Business Acquisition [Line Items] | |||
Net revenues | 114,601 | ||
Net income (loss) | ¥ (13,096) | ||
Shandong Zengyu | |||
Business Acquisition [Line Items] | |||
Net revenues | ¥ 8,074 | ||
Net income (loss) | (1,362) | ||
Other 2018 Acquirees | |||
Business Acquisition [Line Items] | |||
Net revenues | 4,495 | ||
Net income (loss) | ¥ (27) |
Business Acquisition - Unaudite
Business Acquisition - Unaudited Pro forma Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shanghai Pukuan, Luoyang Pucai, Xi'an Shanghe, Dalian Pude, Luzhou Puxin and Other 2016 Acquirees | |||
Business Acquisition [Line Items] | |||
pro forma net revenues | ¥ 640,094 | ||
pro forma net (loss) | (137,567) | ||
ZMN Education, Beijing GEDU and Other 2017 Acquirees | |||
Business Acquisition [Line Items] | |||
pro forma net revenues | ¥ 1,882,032 | 1,318,811 | |
pro forma net (loss) | (511,354) | ¥ (281,853) | |
Shandong Zengyu and Other 2018 Acquirees | |||
Business Acquisition [Line Items] | |||
pro forma net revenues | ¥ 2,317,937 | 1,392,146 | |
pro forma net (loss) | ¥ (824,909) | ¥ (389,366) |
Schedule of Prepaid Expenses an
Schedule of Prepaid Expenses and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Prepaid rental expenses | ¥ 63,134 | ¥ 71,324 | |
Prepaid other service fees | 45,415 | 45,478 | |
Staff advances | 11,125 | 8,811 | |
Others | 8,964 | 6,860 | |
Prepaid expenses and other current assets | ¥ 128,638 | $ 18,710 | ¥ 132,473 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net - Schedule of Property, Plant And Equipment (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Total | ¥ 367,954 | ¥ 290,311 | |
Less: Accumulated depreciation | (119,153) | (69,099) | |
Property, plant and equipment, net | 248,801 | $ 36,187 | 221,212 |
Buildings | |||
Property Plant And Equipment [Line Items] | |||
Total | 87,792 | 87,792 | |
Electronic Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total | 67,637 | 46,136 | |
Motor Vehicles | |||
Property Plant And Equipment [Line Items] | |||
Total | 9,652 | 10,379 | |
Furniture and Education Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total | 38,994 | 45,334 | |
Leasehold Improvement | |||
Property Plant And Equipment [Line Items] | |||
Total | ¥ 163,879 | ¥ 100,670 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expenses | ¥ 57,696 | $ 8,392 | ¥ 20,545 | ¥ 3,735 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | ¥ 286,954 | ¥ 279,154 | |
Less: Accumulated amortization | (67,976) | (35,227) | |
Intangible assets, net | 218,978 | $ 31,849 | 243,927 |
Student Base | |||
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 104,854 | 97,054 | |
Trademarks | |||
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 172,400 | 172,400 | |
Relationship with Partnership School | |||
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 5,300 | 5,300 | |
Franchise Agreement | |||
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | ¥ 4,400 | ¥ 4,400 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | ¥ 32,749 | $ 4,763 | ¥ 23,644 | ¥ 10,158 |
Amortization expenses for the year ended December 31, 2019 | 30,443 | |||
Amortization expenses for the year ended December 31, 2020 | 25,842 | |||
Amortization expenses for the year ended December 31, 2021 | 13,117 | |||
Amortization expenses for the year ended December 31, 2022 | 8,565 | |||
Amortization expenses for the year ended December 31, 2023 | 957 | |||
Amortization expenses thereafter | ¥ 54 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Beginning balance | ¥ 1,152,913,000 | ¥ 346,972,000 | ||
Acquisition of subsidiaries and schools | 90,904,000 | 805,941,000 | ||
Ending balance | 1,243,817,000 | 1,152,913,000 | ¥ 346,972,000 | |
Goodwill impairment loss | 0 | 0 | ¥ 0 | |
Goodwill | ¥ 1,243,817,000 | ¥ 1,152,913,000 | $ 180,906 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment loss | ¥ 0 | ¥ 0 | ¥ 0 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Components of Accrued Expenses and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Accrued Liabilities Current [Abstract] | ||||
Salary and welfare payable | ¥ 216,671 | ¥ 178,078 | ||
Refund liabilities | [1] | 92,960 | ||
Accrued expenses | 48,447 | 50,941 | ||
Consideration payable in connection with business acquisitions | 48,128 | 68,199 | ||
Advance from third parties | [2] | 79,500 | 23,802 | |
Other tax payable | 23,264 | 9,578 | ||
Payables for purchase of property, plant and equipment | 1,332 | 1,253 | ||
Others | 5,321 | 18,595 | ||
Accrued expenses and other current liabilities | ¥ 515,623 | $ 74,998 | ¥ 350,446 | |
[1] | Refund liabilities represented estimated amounts of service fee collected that is subject to refund to the customers related to K-12 tutoring services and study abroad tutoring services. | |||
[2] | ZMN Education entered into loan agreements with two individuals in 2013 and 2015 at the amount of RMB10,000 and RMB13,802, respectively, which were fully repaid as of December 31, 2018. |
Accrued Expenses And Other Cu_4
Accrued Expenses And Other Current Liabilities - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018CNY (¥)Agreement | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2013CNY (¥) | ||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Advance from third parties | [1] | ¥ 79,500 | ¥ 23,802 | |||
Interest expense | 51,901 | $ 7,549 | ¥ 5,556 | |||
ZMN Education | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Advance from third parties | ¥ 13,802 | ¥ 10,000 | ||||
Puxin Education | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Advance from third parties | ¥ 60,000 | |||||
Number of other loan agreements | Agreement | 4 | |||||
Puxin Education | Loans | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Interest expense | ¥ 2,433 | |||||
Puxin Education | Minimum | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Loan agreement term | 1 month | 1 month | ||||
Puxin Education | Maximum | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Rate of interests | 5.655% | 5.655% | ||||
Loan agreement term | 3 months | 3 months | ||||
Puxin Education | Taiyuan Puxin Arts and Mr. Yunlong Sha | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Advance from third parties | ¥ 29,500 | |||||
Loan agreement term | 12 months | 12 months | ||||
Puxin Education | Taiyuan Puxin Arts and Mr. Yunlong Sha | Minimum | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Rate of interests | 8.20% | 8.20% | ||||
Puxin Education | Taiyuan Puxin Arts and Mr. Yunlong Sha | Maximum | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Rate of interests | 9.00% | 9.00% | ||||
Puxin Education | Mr. Yunlong Sha | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Advance from third parties | ¥ 30,000 | |||||
Taiyuan Puxin Arts | Puxin Education and Mr. Yunlong Sha | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Advance from third parties | ¥ 50,000 | |||||
Loan agreement term | 6 months | 6 months | ||||
Taiyuan Puxin Arts | Puxin Education and Mr. Yunlong Sha | Minimum | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Rate of interests | 8.20% | 8.20% | ||||
Taiyuan Puxin Arts | Puxin Education and Mr. Yunlong Sha | Maximum | ||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure [Line Items] | ||||||
Rate of interests | 8.80% | 8.80% | ||||
[1] | ZMN Education entered into loan agreements with two individuals in 2013 and 2015 at the amount of RMB10,000 and RMB13,802, respectively, which were fully repaid as of December 31, 2018. |
Bank Borrowings - Additional In
Bank Borrowings - Additional Information (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Apr. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Interest expense on bank borrowings | ¥ 1,148 | ||
Bank Borrowing Agreement | Dalian Tongfang | SPD Bank | Puxin Education, Mr. Yunlong Sha and Ms. Wenjing as Joint Guarantors | |||
Debt Instrument [Line Items] | |||
Bank borrowing agreement amount | ¥ 10,000 | ||
Annual interest rate | 6.30% | ||
Bank borrowing term | 12 months | ||
Bank Borrowing Agreement | Puxin Education | SPD Bank | Puxin Limited as Pledger | |||
Debt Instrument [Line Items] | |||
Bank borrowing agreement amount | ¥ 96,600 | ||
Annual interest rate | 4.35% | ||
Bank borrowing term | 6 months | ||
Bank Borrowing Agreement | Puxin Education | Bank of Jiangsu | |||
Debt Instrument [Line Items] | |||
Bank borrowing agreement amount | ¥ 4,273 | ||
Annual interest rate | 6.525% | ||
Bank borrowing term | 12 months |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) $ / shares in Units, $ in Thousands | Feb. 05, 2018CNY (¥) | Sep. 29, 2017CNY (¥)shares | Aug. 04, 2017CNY (¥)shares | Feb. 28, 2018CNY (¥) | Jun. 30, 2017CNY (¥) | Feb. 28, 2018CNY (¥) | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 29, 2017USD ($)$ / shares | Aug. 04, 2017USD ($)$ / shares |
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Net profit | ¥ (833,409,000) | $ (121,215) | ¥ (397,234,000) | ¥ (127,604,000) | |||||||||||||||||
Proceeds from convertible notes | 461,206,000 | ||||||||||||||||||||
Huazhong | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Fair value of convertible note | ¥ 207,300,000 | ¥ 207,300,000 | 150,200,000 | ||||||||||||||||||
Changes in fair value of convertible notes | 10,200,000 | ||||||||||||||||||||
Proceeds from convertible notes | ¥ 190,000,000 | ||||||||||||||||||||
Huazhong | Convertible Debt | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Line of credit facility | ¥ 300,000,000 | ||||||||||||||||||||
Drawn down a principal amount | ¥ 50,000,000 | 140,000,000 | |||||||||||||||||||
Annual interest rate | 12.00% | ||||||||||||||||||||
Debt instrument maturity term | 22 months | ||||||||||||||||||||
Debt instrument extended maturity term | 36 months | ||||||||||||||||||||
Debt instrument description | 58th months | 58th months | |||||||||||||||||||
Accrued unpaid interest rate per annum | 18.00% | ||||||||||||||||||||
Lock-up period expiration term | 3 months | ||||||||||||||||||||
Debt instrument principle amount | ¥ 193,400,000 | 193,400,000 | |||||||||||||||||||
Warrants issued | ¥ 14,800,000 | ||||||||||||||||||||
Loss (gain) on change in fair value of convertible notes | ¥ 7,100,000 | ¥ (14,800,000) | |||||||||||||||||||
Fair value of warrants | 0 | ||||||||||||||||||||
Warrants exercised | ¥ 0 | ||||||||||||||||||||
Huazhong | IPO | Convertible Debt | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Conversion rate of public offering price of the ordinary shares | 90.00% | 90.00% | |||||||||||||||||||
Huazhong | Maximum | Convertible Debt | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Percentage of internal rate of return | 18.00% | ||||||||||||||||||||
Net profit | ¥ 950,000,000 | ||||||||||||||||||||
Huazhong | Minimum | Convertible Debt | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Percentage of internal rate of return | 30.00% | ||||||||||||||||||||
Huazhong | Scenario Forecast | IPO | Convertible Debt | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Conversion rate of public offering price of the ordinary shares | 70.00% | 80.00% | |||||||||||||||||||
Haitong | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Fair value of convertible note | 188,682,000 | $ 29,000 | |||||||||||||||||||
Haitong | Convertible Debt | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Loss (gain) on change in fair value of convertible notes | ¥ 42,792,000 | $ 6,714 | 27,028,000 | $ 4,000 | |||||||||||||||||
Haitong | IPO | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Debt instrument, convertible into ordinary shares | shares | 4,201,681 | ||||||||||||||||||||
Debt instrument, convertible, conversion price | $ / shares | $ 5.95 | ||||||||||||||||||||
Debt instrument, convertible, conversion ratio | 70 | ||||||||||||||||||||
Haitong | IPO | Convertible Debt | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Conversion rate of public offering price of the ordinary shares | 70.00% | 70.00% | |||||||||||||||||||
Annual interest rate | 12.00% | 12.00% | |||||||||||||||||||
Debt instrument maturity term | 5 years | ||||||||||||||||||||
Debt instrument principle amount | ¥ 168,180,000 | $ 25,000 | |||||||||||||||||||
Haitong | Scenario Forecast | IPO | Convertible Debt | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Conversion rate of public offering price of the ordinary shares | 60.00% | 65.00% | |||||||||||||||||||
CICC ALPHA | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Fair value of convertible note | 160,310,000 | 24,640 | |||||||||||||||||||
Debt instrument, convertible into ordinary shares | shares | 3,865,547 | ||||||||||||||||||||
Debt instrument, convertible, conversion price | $ / shares | $ 5.95 | ||||||||||||||||||||
Debt instrument, convertible, conversion ratio | 70 | ||||||||||||||||||||
CICC ALPHA | Convertible Debt | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Annual interest rate | 15.00% | 15.00% | |||||||||||||||||||
Debt instrument maturity term | 4 years | ||||||||||||||||||||
Debt instrument principle amount | ¥ 153,026,000 | $ 23,000 | |||||||||||||||||||
Loss (gain) on change in fair value of convertible notes | ¥ 52,368,000 | $ 8,217 | 32,432,000 | 4,800 | |||||||||||||||||
Fair value of derivative liabilities | 63,942,000 | 18,218,000 | $ 9,300 | $ 2,800 | |||||||||||||||||
Changes in fair value of derivative liabilities | ¥ 44,288,000 | $ 6,500 | ¥ 676,000 | $ 100 | |||||||||||||||||
CICC ALPHA | Maximum | Convertible Debt | Floor Return | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Percentage of internal rate of return | 25.00% | ||||||||||||||||||||
CICC ALPHA | Minimum | Convertible Debt | Founder Awards | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Percentage of internal rate of return | 30.00% | ||||||||||||||||||||
CICC ALPHA | Scenario Forecast | Convertible Debt | |||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||
Conversion rate of public offering price of the ordinary shares | 70.00% | 55.00% |
Promissory Notes - Additional I
Promissory Notes - Additional Information (Details) ¥ in Thousands, $ in Thousands | Aug. 04, 2017CNY (¥) | Feb. 28, 2018CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Aug. 04, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Recognized interest expense | ¥ 51,901 | $ 7,549 | ¥ 5,556 | |||
Promissory Note | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument principle amount | ¥ 168,180 | $ 25,000 | ||||
Annual interest rate | 8.00% | 8.00% | ||||
Debt instrument maturity term | 2 years | |||||
Recognized interest expense | ¥ 32,026 | ¥ 5,556 | ||||
Promissory Note | Amendment of Convertible Notes | Huazhong | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument principle amount | ¥ 190,000 | |||||
Annual interest rate | 12.00% | |||||
Debt instrument maturity term | 22 months | |||||
Debt instrument extended maturity term | 36 months | |||||
Convertible Note | Amendment of Convertible Notes | Huazhong | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of original convertible note | ¥ 190,000 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Key Assumptions Used in Valuation of Convertible Notes (Details) - Convertible Notes | Dec. 31, 2018 | Dec. 31, 2017 |
Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Remaining life | 2 years 3 months 18 days | 2 years 6 months |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Remaining life | 4 years 3 months 18 days | 4 years 9 months 18 days |
Probability for Conversion | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.80 | 0.80 |
Probability for Redemption | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.20 | 0.20 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Key Assumptions Used in Valuation of Derivative Liabilities (Details) - Derivative Liabilities | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Exit period | Jun. 30, 2018 | Jun. 30, 2018 |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Exit period | Jun. 30, 2019 | Jun. 30, 2019 |
Probability for Conversion | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 1 | 0.80 |
Volatility | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.54 | 0.40 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Key Assumptions Used in Valuation of Warrants (Details) | Dec. 31, 2018 |
Warrants | Conversion Price Discount Rate | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Measurement input | 0.90 |
Fair Value Measurement - Sche_3
Fair Value Measurement - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value on Recurring Basis - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ¥ 778,006 | ¥ 164,684 |
Restricted cash | 40,971 | 24,478 |
Fair value of convertible note | 499,192 | |
Promissory notes | 361,888 | 162,658 |
Derivative liabilities | 63,942 | 18,218 |
Total | 1,244,807 | 869,230 |
Quoted Prices in Active Market for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 778,006 | 164,684 |
Restricted cash | 40,971 | 24,478 |
Promissory notes | 0 | |
Derivative liabilities | 0 | |
Total | 818,977 | 189,162 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Promissory notes | 361,888 | 162,658 |
Derivative liabilities | 0 | |
Total | 361,888 | 162,658 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Fair value of convertible note | 499,192 | |
Promissory notes | 0 | |
Derivative liabilities | 63,942 | 18,218 |
Total | ¥ 63,942 | ¥ 517,410 |
Fair Value Measurement - Sche_4
Fair Value Measurement - Schedule of Reconciliation of the Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Convertible Notes | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance as of January 1, 2016 and 2017 | ¥ 499,192 | ¥ 0 |
Issuance of convertible notes | 50,000 | 443,242 |
Extinguishment of convertible notes | (207,300) | |
Issuance of warrants | 0 | |
Conversion to ordinary shares | (438,720) | |
Changes in fair value | 102,260 | 69,660 |
Payment of interest | (2,998) | |
Exchange rate effect | (5,432) | (10,712) |
Balance as of December 31, 2017 | 0 | 499,192 |
Derivative Liabilities | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance as of January 1, 2016 and 2017 | 18,218 | 0 |
Issuance of convertible notes | 0 | 17,964 |
Extinguishment of convertible notes | 0 | |
Issuance of warrants | 0 | |
Conversion to ordinary shares | 0 | |
Changes in fair value | 44,288 | 676 |
Payment of interest | 0 | |
Exchange rate effect | 1,436 | (422) |
Balance as of December 31, 2017 | 63,942 | 18,218 |
Warrants | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance as of January 1, 2016 and 2017 | 0 | 0 |
Issuance of convertible notes | 0 | 0 |
Extinguishment of convertible notes | 0 | |
Issuance of warrants | 14,800 | |
Conversion to ordinary shares | 0 | |
Changes in fair value | (14,800) | 0 |
Payment of interest | 0 | |
Exchange rate effect | 0 | 0 |
Balance as of December 31, 2017 | ¥ 0 | ¥ 0 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Nov. 30, 2018shares | Nov. 20, 2018$ / shares | Mar. 31, 2018$ / sharesshares | Mar. 31, 2018¥ / sharesshares | Dec. 31, 2014shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Feb. 28, 2018shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Stock options exercised, total intrinsic value | ¥ | ¥ 681 | ¥ 39,716 | ¥ 40,718 | |||||||
Fair value of options vested | ¥ | 302,331 | 29,645 | 37,223 | |||||||
Share-based compensation expense | ¥ | 345,503 | ¥ 55,835 | ¥ 51,263 | |||||||
Unrecognized compensation of stock options | ¥ | ¥ 121,153 | |||||||||
Unrecognized stock-based compensation expense, period for recognition | 3 years 5 months 12 days | 3 years 5 months 12 days | ||||||||
Restricted Shares | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | ¥ 29,454 | $ 4,241 | ||||||||
Granted shares | shares | 1,631,200 | |||||||||
Fully vested and outstanding shares in period | 6 months | |||||||||
Restricted shares, grant-date value | $ / shares | $ 2.6 | |||||||||
2014 Great Talent Plan | Maximum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Aggregate number of shares authorized for issuance | shares | 158,400,000 | |||||||||
Stock option, expiration period | 7 years | |||||||||
Stock vesting period | 5 years | |||||||||
2014 Great Talent Plan | Minimum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Stock vesting period | 0 years | |||||||||
2018 Grand Talent Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Stock vesting period | shares | 16,400,000 | 16,400,000 | ||||||||
Stock vesting period | (per share) | $ 7.78 | ¥ 48.78 | ||||||||
2018 Grand Talent Plan | Maximum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Aggregate number of shares authorized for issuance | shares | 16,400,000 | |||||||||
Stock option, expiration period | 10 years | 10 years | ||||||||
Stock vesting period | 6 years | 6 years | ||||||||
2018 Grand Talent Plan | Minimum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Stock vesting period | 0 years | 0 years |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions used to Determined the Estimated Fair Value of Options using the Binomial Option Pricing Model (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 3.40% | ||
Risk-free interest rate, minimum | 2.84% | 1.94% | |
Risk-free interest rate, maximum | 2.97% | 2.92% | |
Volatility | 46.00% | 47.00% | |
Volatility, minimum | 45.00% | ||
Volatility, maximum | 47.00% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Life of options | 7 years | 7 years | 7 years |
Fair value of underlying ordinary shares | $ 49.67 | ||
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Exercise multiples | 2.2 | $ 2.2 | $ 2.2 |
Fair value of underlying ordinary shares | 29.46 | 23.66 | |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Exercise multiples | $ 2.8 | 2.8 | 2.8 |
Fair value of underlying ordinary shares | $ 48.31 | $ 28.23 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Options Activity (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||
Number of options, options outstanding | shares | 6,565,494 | 6,565,494 | 4,119,598 | 4,119,598 | 3,061,880 | 3,061,880 | |
Number of options, granted | shares | 16,400,000 | 16,400,000 | 3,301,140 | 3,301,140 | 2,526,338 | 2,526,338 | |
Option exercised, shares | shares | 34,112 | 34,112 | 828,200 | 828,200 | 1,468,620 | 1,468,620 | |
Number of options, forfeited | shares | 464,009 | 464,009 | 27,044 | 27,044 | |||
Number of options, options outstanding | shares | 22,467,373 | 22,467,373 | 6,565,494 | 6,565,494 | 4,119,598 | 4,119,598 | 3,061,880 |
Number of options, options vested and expected to vest | shares | 22,467,373 | ||||||
Number of options, option exercisable | shares | 13,896,097 | ||||||
Weighted average exercise price, options outstanding | $ 10.33 | $ 0.32 | $ 0.27 | ||||
Weighted average exercise price, granted | 48.78 | 20.46 | 0.49 | ||||
Weighted average exercise price, exercised | 0.35 | 0.36 | 0.50 | ||||
Weighted average exercise price, forfeited | 33.39 | 26.20 | |||||
Weighted average exercise price, options outstanding | 37.77 | 10.33 | 0.32 | $ 0.27 | |||
Weighted average exercise price, options vested and expected to vest | 37.77 | ||||||
Weighted average exercise price, option exercisable | 40.35 | ||||||
Weighted average grant date fair value, options outstanding | 17.99 | 13.96 | 10 | ||||
Weighted average grant date fair value, granted | 24.20 | 27.53 | 25.38 | ||||
Weighted average grant date fair value, exercised | 24.45 | 35.79 | 25.35 | ||||
Weighted average grant date fair value, forfeited | 22.50 | 25.01 | |||||
Weighted average grant date fair value, options outstanding | 22.51 | $ 17.99 | $ 13.96 | $ 10 | |||
Weighted average grant date fair value, options vested and expected to vest | 22.51 | ||||||
Weighted average grant date fair value, option exercisable | $ 22.58 | ||||||
Weighted average remaining contractual term (years), options outstanding | 5 years 9 months 10 days | 5 years 9 months 10 days | 5 years 6 months 25 days | 5 years 6 months 25 days | 5 years 11 months 1 day | 5 years 11 months 1 day | 5 years 8 months 8 days |
Weighted average remaining contractual term (years), granted | 6 years 3 months | 6 years 3 months | 6 years 7 months 9 days | 6 years 7 months 9 days | 6 years 7 months 13 days | 6 years 7 months 13 days | |
Weighted average remaining contractual term (years), exercised | 4 years 5 months 4 days | 4 years 5 months 4 days | 6 years 5 months 15 days | 6 years 5 months 15 days | 6 years 7 months 13 days | 6 years 7 months 13 days | |
Weighted average remaining contractual term (years), forfeited | 5 years 7 months 20 days | 5 years 7 months 20 days | 6 years 6 months 25 days | 6 years 6 months 25 days | |||
Weighted average remaining contractual term (years), options vested and expected to vest | 5 years 9 months 10 days | 5 years 9 months 10 days | |||||
Weighted average remaining contractual term (years), option exercisable | 5 years 10 months 9 days | 5 years 10 months 9 days | |||||
Aggregate intrinsic value, options outstanding | $ | $ 249,333 | $ 114,959 | |||||
Aggregate intrinsic value, exercised | ¥ | ¥ 681 | ¥ 39,716 | ¥ 40,718 | ||||
Aggregate intrinsic value, options outstanding | $ | 84,969 | $ 249,333 | $ 114,959 | ||||
Aggregate intrinsic value, options vested and expected to vest | $ | 84,969 | ||||||
Aggregate intrinsic value, option exercisable | $ | $ 48,409 |
Convertible Redeemable Prefer_2
Convertible Redeemable Preferred Shares - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 28, 2018 | Dec. 31, 2017 | |
Series A Convertible Redeemable Preferred Stock | |||||
Minority Interest [Line Items] | |||||
Redemption price compounded annually | 8.00% | ||||
Value of the convertible redeemable preferred shares | ¥ 140,183 | ||||
Liquidation description | In the event of insufficient funds available to pay in full the preference amount in respect of Series A Shares, the entire assets and funds of the Company legally available for distribution to the holders of Series A Shares shall be distributed on a pro rata basis among the holders of Series A Shares in proportion to issued price. | ||||
Preferred Stock, Conversion Basis | A Shares shall be the quotient of the per share issue price divided by the then effective Series A Shares conversion price, which shall initially be the per share issue price, resulting in an initial conversion ratio for Series A Shares of 1:1. | ||||
Preferred stock conversion ratio | 100.00% | ||||
IPO | |||||
Minority Interest [Line Items] | |||||
Carrying amount of equity interest | ¥ 48,912 | ||||
Shanghai Trustbridge | Puxin Education | |||||
Minority Interest [Line Items] | |||||
Equity interest with preferential feature issued | 12.267% | ||||
Consideration for sale of equity interest | ¥ 120,000 | ||||
Consideration received for sale of equity interest | ¥ 70,000 | ¥ 50,000 | |||
Shanghai Trustbridge | Puxin Education | IPO | Mr. Yunlong Sha | |||||
Minority Interest [Line Items] | |||||
Equity interest with preferential feature sold | 5.00% | ||||
Shanghai Trustbridge | Trustbridge Partners VI, L.P | IPO | Series A Convertible Redeemable Preferred Stock | |||||
Minority Interest [Line Items] | |||||
Shares exchanged for the equity interest | 5,958,940 | ||||
Ningbo Zhimei | Puxin Education | IPO | |||||
Minority Interest [Line Items] | |||||
Equity interest with preferential feature sold | 3.6335% | ||||
Ningbo Zhimei | Fasturn Overseas Limited | IPO | Series A Convertible Redeemable Preferred Stock | |||||
Minority Interest [Line Items] | |||||
Shares exchanged for the equity interest | 5,958,940 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 9 Months Ended | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2018HKD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | |
Income Taxes [Line Items] | ||||||
Effective income tax rate | 25.00% | 25.00% | 25.00% | |||
Net operating loss carried forward | ¥ 598,512,000 | |||||
Unrecognized tax benefits | 0 | |||||
Interest and penalties related to potential underpaid income tax expenses | 0 | |||||
Increases (decreases) in unrecognized tax benefits in next 12 months | ¥ 0 | |||||
High and New Technology Enterprise | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate | 15.00% | |||||
High and New Technology Enterprise | Beijing Meikaida | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate | 15.00% | 15.00% | 15.00% | |||
Scenario Forecast | Small Low Profit Enterprises | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate | 20.00% | 20.00% | ||||
Annual taxable income | ¥ 1,000,000 | ¥ 1,000,000 | ||||
Percentage of taxable income, less than one thousand | 25.00% | |||||
Percentage of taxable income, more than one thousand but less than three thousand | 50.00% | |||||
Scenario Forecast | Small Low Profit Enterprises | Minimum | ||||||
Income Taxes [Line Items] | ||||||
Annual taxable income | ¥ 1,000,000 | |||||
Scenario Forecast | Small Low Profit Enterprises | Maximum | ||||||
Income Taxes [Line Items] | ||||||
Annual taxable income | ¥ 3,000,000 | |||||
Hong Kong | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate | 16.50% | |||||
Effective income tax profit | $ | $ 2,000,000 | |||||
Hong Kong | First HK$2,000 of Assessable Profit | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate | 8.25% | |||||
Hong Kong | Profit Exceeding HK$2,000 | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate | 16.50% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Current and Deferred Income Tax Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expenses | ¥ 14,265 | ¥ 8,258 | ¥ 3,535 | |
Deferred income taxes | (8,943) | $ (1,301) | (5,822) | (3,147) |
Income tax expenses net | ¥ 5,322 | $ 774 | ¥ 2,436 | ¥ 388 |
Income Taxes - Summary of Princ
Income Taxes - Summary of Principle Components of Deferred Tax (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Accrued expenses | ¥ 32,290 | ¥ 32,333 |
Convertible notes — change in fair value | 2,550 | |
Net operating loss carrying forwards | 149,628 | 78,692 |
Total deferred tax assets | 181,918 | 113,575 |
Less: Valuation allowance | (178,462) | (110,563) |
Deferred tax assets, net | 3,456 | 3,012 |
Deferred tax liabilities | ||
Acquired intangible assets | 71,031 | 77,580 |
Total deferred tax liabilities | ¥ 71,031 | ¥ 77,580 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate and Statutory Income Tax Rate (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | ¥ (828,087) | ¥ (394,798) | ¥ (127,216) | |
Income tax benefit computed at an applicable tax rate of 25% | (207,022) | (98,699) | (31,804) | |
Permanent differences | 106,509 | 13,279 | 13,948 | |
Effect of income tax rate differences in jurisdictions other than PRC | 38,490 | |||
Effect of preferential tax rate | (554) | (26) | (28) | |
Change in valuation allowance | 67,899 | 87,882 | 18,272 | |
Income tax expenses net | ¥ 5,322 | $ 774 | ¥ 2,436 | ¥ 388 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Effective Tax Rate and Statutory Income Tax Rate (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Applicable tax rate | 25.00% | 25.00% | 25.00% |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Thousands | Feb. 05, 2018USD ($)shares | Aug. 04, 2017USD ($)shares | Mar. 17, 2017USD ($)shares | Jun. 30, 2018CNY (¥)shares | Jun. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares |
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 99,990,000 | |||||
Ordinary shares issued for aggregate consideration | $ | $ 3,000 | $ 5,000 | $ 4 | |||
Proceeds through IPO | ¥ 837,541 | $ 130,907,000 | ||||
IPO | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 16,560,000 | 16,560,000 | ||||
Ordinary shares issued par value per share | $ / shares | $ 0.00005 | |||||
IPO related expense | ¥ | ¥ 38,711 | |||||
IPO related expense paid | ¥ | ¥ 0 | ¥ 38,333 | ||||
IPO | ADS | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 8,280,000 | 8,280,000 | ||||
IPO related expense paid | ¥ | ¥ 0 | |||||
Long bright Limited | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 8,524 | |||||
Gao & Tianyi Limited | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 820 | |||||
Pution Limited | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 492 | |||||
Prospect Limited | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 164 | |||||
Puxin Nova Limited | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 21,761,652 | |||||
Stary International Limited | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 3,336,744 | |||||
Long wit Limited | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 40,000 | |||||
Long belief Limited | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 8,200,000 | |||||
Number of ordinary shares issued but not outstanding | 8,150,652 | |||||
Long faith Limited | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 1,640,000 | |||||
Long favor Limited | ||||||
Class Of Stock [Line Items] | ||||||
Ordinary shares issued | 17,103,724 | |||||
Number of ordinary shares issued but not outstanding | 15,438,412 | |||||
Long favor Limited and Long belief Limited | ||||||
Class Of Stock [Line Items] | ||||||
Number of ordinary shares owned by shareholders whose rights are unconditionally waived until transferred | 25,303,724 | |||||
CICC ALPHA | IPO | ||||||
Class Of Stock [Line Items] | ||||||
Debt conversion, converted instrument, ordinary shares issued | 3,865,547 | 3,865,547 | ||||
Debt instrument, convertible, conversion price | $ / shares | $ 5.95 | |||||
Debt conversion, converted instrument, percentage of sale of stock price per share | 70.00% | 70.00% | ||||
Haitong | IPO | ||||||
Class Of Stock [Line Items] | ||||||
Debt conversion, converted instrument, ordinary shares issued | 4,201,681 | 4,201,681 | ||||
Debt instrument, convertible, conversion price | $ / shares | $ 5.95 | |||||
Debt conversion, converted instrument, percentage of sale of stock price per share | 70.00% | 70.00% | ||||
Haitong | IPO | Convertible Redeemable Preferred Shares | ||||||
Class Of Stock [Line Items] | ||||||
Debt conversion, converted instrument, ordinary shares issued | 11,917,880 | 11,917,880 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Numerator used in basic and diluted net loss per share: | ||||
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (833,411) | $ (121,215) | ¥ (397,313) | ¥ (127,556) |
Shares (denominator): | ||||
Weighted average common shares outstanding used in computing basic and diluted net loss per share (Note 1) | 144,157,947 | 144,157,947 | 99,705,361 | 98,670,361 |
Net loss per share basic and diluted | (per share) | ¥ (5.78) | $ (0.84) | ¥ (3.98) | ¥ (1.29) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Incremental weighted average number of ordinary shares not considered in computation of diluted net loss per share | 18,420,993 | 4,938,438 | 3,473,746 |
Employee Defined Contribution_2
Employee Defined Contribution Plan - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employee benefits expense incurred | ¥ 184,525 | ¥ 104,635 | ¥ 33,454 |
Related Party Transaction - Sig
Related Party Transaction - Significant Balances Between the Group and its Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Related Party Transaction [Line Items] | |||
Amounts due from related parties | ¥ 113 | ||
Amounts due to related parties | ¥ 54,493 | $ 7,926 | 3,836 |
Puxian | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties | 13 | ||
Ms. Wenjing Song | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties | 100 | ||
Amounts due to related parties | 10,500 | ||
Mr. Yunlong Sha | CEO and the Chairman of the Board of Directors | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | ¥ 43,993 | ¥ 3,836 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - Purong Information - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Dec. 31, 2018 | |
Mr. Yunlong Sha | ||
Related Party Transaction [Line Items] | ||
Amount advanced to related parties | ¥ 180,000 | |
Accrued interest rate | 9.00% | |
Shanghai Trustbridge | ||
Related Party Transaction [Line Items] | ||
Percentage of equity interest with preferential feature repurchase | 5.00% |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-cancelable Operating Leases (Details) ¥ in Thousands | Dec. 31, 2018CNY (¥) |
Commitments And Contingencies Disclosure [Abstract] | |
2019 | ¥ 303,126 |
2020 | 217,290 |
2021 | 148,625 |
2022 | 90,340 |
2023 and thereafter | 95,006 |
Total future minimum payments | ¥ 854,387 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Nov. 30, 2018CNY (¥) | Apr. 30, 2018CNY (¥) | Sep. 29, 2017USD ($) | Aug. 04, 2017CNY (¥) | Aug. 04, 2017USD ($) | Jun. 30, 2017 | |
Commitments And Contingencies [Line Items] | ||||||||||||
Total rental expense for operating leases | ¥ 332 | $ 574 | ¥ 215 | $ 432 | ¥ 74 | $ 245 | ||||||
Dalian Tongfang | SPD Bank | Puxin Education, Mr. Yunlong Sha and Ms. Wenjing as Joint Guarantors | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Debt instrument principle amount | ¥ 10,000 | |||||||||||
Taiyuan Puxin Arts | Puxin Education and Mr. Yunlong Sha as Joint Guarantors | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Debt instrument principle amount | ¥ 50,000 | |||||||||||
Promissory Note | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Debt instrument principle amount | ¥ 168,180 | $ 25,000 | ||||||||||
Haitong | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Number of pledged shares mortgaged | shares | 6,000,000 | 6,000,000 | ||||||||||
Haitong | Long bright Limited | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Equity interests mortgaged | 18.00% | 18.00% | ||||||||||
Haitong | Convertible Debt | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Debt instrument principle amount | $ | $ 25,000 | |||||||||||
Haitong | Promissory Note | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Debt instrument principle amount | $ | $ 25,000 | |||||||||||
CICC ALPHA | Long bright Limited | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Equity interests mortgaged | 8.30% | |||||||||||
CICC ALPHA | Mr. Yunlong Sha | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Equity interests mortgaged | 4.15% | |||||||||||
CICC ALPHA | Convertible Debt | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Debt instrument principle amount | $ | $ 23,000 | |||||||||||
Puxin Education | Taiyuan Puxin Arts and Mr. Yunlong Sha as Joint Guarantors | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Debt instrument principle amount | ¥ 29,500 | |||||||||||
Puxin Education | SPD Bank | Puxin Limited as Pledger | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Debt instrument principle amount | ¥ 96,600 | |||||||||||
Puxin Education | Tianjin Xinsiyuan | Huazhong | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Equity interests pledged | 100.00% | |||||||||||
Puxin Education | Dalian Pude | Haitong | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Equity interests pledged | 100.00% | 100.00% | ||||||||||
Puxin Education | Guizhou Puxintian | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Equity interests pledged | 100.00% | 100.00% |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Revenue and Gross Profit by Segment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Net revenues | ¥ 2,228,117 | $ 324,066 | ¥ 1,282,562 | ¥ 439,181 |
Cost of revenues | 1,242,889 | 794,342 | 257,995 | |
Gross profit | 985,228 | $ 143,295 | 488,220 | 181,186 |
K-12 Tutoring Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,182,397 | 884,148 | 370,712 | |
Cost of revenues | 706,917 | 555,885 | 217,797 | |
Gross profit | 475,480 | 328,263 | 152,915 | |
Study Abroad Tutoring Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,045,720 | 398,414 | 68,469 | |
Cost of revenues | 535,972 | 238,457 | 40,198 | |
Gross profit | ¥ 509,748 | ¥ 159,957 | ¥ 28,271 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Net Assets [Abstract] | |||
Percentage of annual appropriation after tax profit for general reserve | 10.00% | ||
Percentage of general reserve required as registered capital | 50.00% | ||
Subsidiary contribution to general reserve | ¥ 1,443,000 | ¥ 0 | ¥ 0 |
Private schools required reasonable returns, contribution to reserve, percent of after-tax income before payments of dividend | 25.00% | ||
Private schools not required reasonable returns, contribution to reserve, minimum percent of annual increase of net assets | 25.00% | ||
Amount contributed to reserve for private schools | ¥ 3,152,000 | ¥ 260,000 | ¥ 0 |
Aggregate amount of paid-in capital, capital reserve and statutory reserves not available for distribution | ¥ 461,015,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Mar. 31, 2019shares |
2019 Noble Talent Plan | Subsequent Event | |
Subsequent Event [Line Items] | |
Maximum aggregate number of shares authorized for issuance | 8,879,986 |
Condensed Financial Informati_2
Condensed Financial Information of Parent Company - Balance Sheet (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Current assets | ||||
Cash and cash equivalents | ¥ 778,006 | $ 113,156 | ¥ 164,684 | ¥ 100,109 |
Total current assets | 916,303 | 133,271 | 307,678 | |
TOTAL ASSETS | 2,737,019 | 398,084 | 2,008,393 | |
Current liabilities | ||||
Accrued expenses and other current liabilities | 515,623 | 74,998 | 350,446 | |
Total current liabilities | 1,931,220 | 280,887 | 1,270,784 | |
Non-current liabilities | ||||
Convertible notes | 499,192 | |||
Promissory note, non-current portion | 162,658 | |||
Derivative liabilities | 63,942 | 9,300 | 18,218 | |
TOTAL LIABILITIES | 2,189,147 | 318,400 | 2,161,178 | |
SHAREHOLDERS’ (DEFICIT) EQUITY | ||||
Ordinary shares (par value of USD0.00005 per share; 100,000,000 and 1,000,000,000 shares authorized, 100,000,000 and 188,627,228 shares issued and 100,000,000 and 165,038,164 shares outstanding as of December 31, 2017 and 2018, respectively) | 62 | 9 | 34 | |
Additional paid-in capital | 1,944,325 | 282,790 | 391,099 | |
Statutory reserve | 4,595 | 668 | ||
Accumulated other comprehensive income | 68,214 | 9,921 | 15,718 | |
Accumulated deficit | (1,469,303) | (213,701) | (679,613) | |
Total Puxin Limited shareholders’ (deficit) equity | 547,893 | 79,687 | (272,762) | |
TOTAL LIABILITIES, MEZZANINE EQUITY AND TOTAL SHAREHOLDERS’ (DEFICIT) EQUITY | 2,737,019 | 398,084 | 2,008,393 | |
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 437,613 | 63,648 | 4,406 | |
Amounts due from subsidiaries and VIEs | 867,467 | 126,168 | 470,552 | |
Total current assets | 1,305,080 | 189,816 | 474,958 | |
TOTAL ASSETS | 1,305,080 | 189,816 | 474,958 | |
Current liabilities | ||||
Accrued expenses and other current liabilities | 5,767 | 839 | 5,346 | |
Promissory notes, current portion | 171,888 | 25,000 | ||
Total current liabilities | 177,655 | 25,839 | 5,346 | |
Non-current liabilities | ||||
Convertible notes | 348,992 | |||
Promissory note, non-current portion | 162,658 | |||
Derivative liabilities | 63,942 | 9,300 | 18,218 | |
Investments deficit in subsidiaries and VIEs | 515,590 | 74,990 | 212,506 | |
TOTAL LIABILITIES | 757,187 | 110,129 | 747,720 | |
SHAREHOLDERS’ (DEFICIT) EQUITY | ||||
Ordinary shares (par value of USD0.00005 per share; 100,000,000 and 1,000,000,000 shares authorized, 100,000,000 and 188,627,228 shares issued and 100,000,000 and 165,038,164 shares outstanding as of December 31, 2017 and 2018, respectively) | 62 | 9 | 34 | |
Additional paid-in capital | 1,944,325 | 282,790 | 391,099 | |
Statutory reserve | 4,595 | 668 | ||
Accumulated other comprehensive income | 68,214 | 9,921 | 15,718 | |
Accumulated deficit | (1,469,303) | (213,701) | (679,613) | |
Total Puxin Limited shareholders’ (deficit) equity | 547,893 | 79,687 | (272,762) | |
TOTAL LIABILITIES, MEZZANINE EQUITY AND TOTAL SHAREHOLDERS’ (DEFICIT) EQUITY | ¥ 1,305,080 | $ 189,816 | ¥ 474,958 |
Condensed Financial Informati_3
Condensed Financial Information of Parent Company - Balance Sheet (Parenthetical) (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Ordinary shares, par value | $ 0.00005 | $ 0.00005 |
Ordinary shares, authorized | 1,000,000,000 | 100,000,000 |
Ordinary shares, issued | 188,627,228 | 100,000,000 |
Ordinary shares, outstanding | 165,038,164 | 100,000,000 |
Parent Company | ||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 |
Ordinary shares, authorized | 1,000,000,000 | 100,000,000 |
Ordinary shares, issued | 188,627,228 | 100,000,000 |
Ordinary shares, outstanding | 165,038,164 | 100,000,000 |
Condensed Financial Informati_4
Condensed Financial Information of Parent Company - Statement of Operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
General and administrative expenses | ¥ 775,883 | $ 112,848 | ¥ 362,748 | ¥ 185,496 |
Total operating expenses | 1,623,971 | 236,197 | 807,675 | 308,866 |
Interest expense | 51,901 | 7,549 | 5,556 | |
Interest income | 2,826 | 411 | 549 | 464 |
Foreign exchange loss | 7,621 | 1,108 | ||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 131,748 | 19,162 | 70,336 | |
Loss before income taxes | (828,087) | (120,441) | (394,798) | (127,216) |
Income tax expenses | 5,322 | 774 | 2,436 | 388 |
Net loss attributable to ordinary shareholders of Puxin Limited | (833,411) | (121,215) | (397,313) | (127,556) |
Parent Company | ||||
General and administrative expenses | 8,728 | 1,270 | ||
Total operating expenses | 8,728 | 1,270 | ||
Interest expense | 13,218 | 1,922 | 5,556 | |
Interest income | 2,104 | 306 | ||
Foreign exchange loss | 10,358 | 1,507 | ||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 124,648 | 18,129 | 60,136 | |
Equity in loss of subsidiaries and VIEs | 678,563 | 98,693 | 331,621 | 127,556 |
Loss before income taxes | (833,411) | (121,215) | (397,313) | (127,556) |
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (833,411) | $ (121,215) | ¥ (397,313) | ¥ (127,556) |
Condensed Financial Informati_5
Condensed Financial Information of Parent Company - Consolidated Statement of Comprehensive Income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Net loss | ¥ (833,411) | $ (121,215) | ¥ (397,313) | ¥ (127,556) |
Other comprehensive loss, net of tax: | ||||
Change in cumulative foreign currency translation adjustments | 52,496 | 7,635 | 15,718 | |
Total comprehensive loss attributable to Puxin Limited | (780,915) | (113,580) | (381,595) | (127,556) |
Parent Company | ||||
Net loss | (833,411) | (121,215) | (397,313) | (127,556) |
Other comprehensive loss, net of tax: | ||||
Change in cumulative foreign currency translation adjustments | 52,496 | 7,635 | 15,718 | |
Total comprehensive loss attributable to Puxin Limited | ¥ (780,915) | $ (113,580) | ¥ (381,595) | ¥ (127,556) |
Condensed Financial Informati_6
Condensed Financial Information of Parent Company - Statement of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | ¥ (833,411) | $ (121,215) | ¥ (397,313) | ¥ (127,556) | ||
Adjustments to reconcile net loss to net cash generated from (used in) operating activities: | ||||||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 131,748 | 19,162 | 70,336 | |||
Changes in operating assets and liabilities: | ||||||
Accrued expenses and other current liabilities | (10,267) | (1,491) | 140,261 | 43,705 | ||
Net cash generated from (used in) operating activities | (92,905) | (13,511) | 80,266 | 81,409 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Net cash used in investing activities | (156,917) | (22,823) | (629,704) | (89,259) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from IPO (net of IPO expenses) | ¥ 837,541 | $ 130,907 | ||||
Proceeds from convertible notes | 461,206 | |||||
Proceeds from promissory notes | 50,000 | 7,272 | 168,180 | |||
Net cash generated from financing activities | 831,506 | 120,937 | 629,386 | 70,000 | ||
Effect of exchange rate changes | 48,131 | 7,000 | 3,696 | |||
Net increase in cash and cash equivalents, and restricted cash | 629,815 | 91,603 | 83,644 | 62,150 | ||
Cash and cash equivalents, and restricted cash at beginning of the year | 189,162 | 27,512 | 105,518 | 43,368 | ||
Cash and cash equivalents, and restricted cash at end of the year | 818,977 | 119,115 | 189,162 | 105,518 | ||
Parent Company | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | (833,411) | (121,215) | (397,313) | (127,556) | ||
Adjustments to reconcile net loss to net cash generated from (used in) operating activities: | ||||||
Equity in loss of subsidiaries and VIEs | 678,563 | 98,693 | 331,621 | ¥ 127,556 | ||
Foreign exchange loss | 10,358 | 1,507 | ||||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 124,648 | 18,129 | 60,136 | |||
Changes in operating assets and liabilities: | ||||||
Accrued expenses and other current liabilities | (5,230) | (761) | 5,556 | |||
Net cash generated from (used in) operating activities | (25,072) | (3,647) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Loan to subsidiaries and VIEs | (396,495) | (57,668) | (488,676) | |||
Net cash used in investing activities | (396,495) | (57,668) | (488,676) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from IPO (net of IPO expenses) | 811,001 | 117,956 | ||||
Proceeds from convertible notes | 321,206 | |||||
Proceeds from promissory notes | 168,180 | |||||
Net cash generated from financing activities | 811,001 | 117,956 | 489,386 | |||
Effect of exchange rate changes | 43,773 | 6,366 | 3,696 | |||
Net increase in cash and cash equivalents, and restricted cash | 433,207 | 63,007 | 4,406 | |||
Cash and cash equivalents, and restricted cash at beginning of the year | 4,406 | 641 | ||||
Cash and cash equivalents, and restricted cash at end of the year | ¥ 437,613 | $ 63,648 | ¥ 4,406 |
Condensed Financial Informati_7
Condensed Financial Information of Parent Company - Additional Information (Details) | Dec. 31, 2018 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Renminbi ("RMB") to per one U.S. dollar exchange rate | 6.8755 |