Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38923 |
Entity Registrant Name | GSX Techedu Inc. |
Entity Central Index Key | 0001768259 |
Entity Address, Address Line One | Tower C, Beyondsoft Building |
Entity Address, Address Line Two | 7 East Zone,10 Xibeiwang East Road |
Entity Address, City or Town | Haidian District |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100193 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | Tower C, Beyondsoft Building |
Entity Address, Address Line Two | 7 East Zone,10 Xibeiwang East Road |
Entity Address, City or Town | Haidian District |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100193 |
Local Phone Number | 8282-6826 |
Contact Personnel Name | Nan Shen |
Contact Personnel Email Address | shennan@baijia.com |
City Area Code | 86 10 |
Common Class A [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 96,455,774 |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 73,305,288 |
American Depositary Shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, every three representing two Class A ordinary shares |
Trading Symbol | GSX |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 355,224 | $ 54,440 | ¥ 73,967 |
Short-term investments (including available-for-sale debt securities of RMB1,328,342 and RMB6,727,493 as of December 31, 2019 and 2020, respectively) | 7,331,268 | 1,123,566 | 1,473,452 |
Inventory | 48,074 | 7,368 | 8,822 |
Prepaid expenses and other current assets | 722,682 | 110,756 | 252,660 |
Total current assets | 8,457,248 | 1,296,130 | 1,808,901 |
Non-current assets | |||
Operating lease right-of-use assets | 806,591 | 123,615 | 264,909 |
Property, equipment and software, net | 704,338 | 107,945 | 81,860 |
Intangible assets | 13,219 | 2,026 | 100 |
Land use rights | 28,983 | 4,442 | 0 |
Long-term investments (including available-for-sale debt securities of RMB1,181,693 and RMB525,373 as of December 31, 2019 and 2020, respectively) | 530,729 | 81,338 | 1,188,286 |
Goodwill | 43,631 | 6,687 | 331 |
Deferred tax assets | 48,324 | 7,406 | 30,716 |
Rental deposit | 51,499 | 7,893 | 18,719 |
Other non-current assets | 1,230 | 188 | 710 |
TOTAL ASSETS | 10,685,792 | 1,637,670 | 3,394,532 |
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 RMB188,975 and RMB623,002 as of December 31, 2019 and 2020, respectively) | 1,315,502 | 201,610 | 228,753 |
Deferred revenue, current portion of the consolidated VIE without recourse to the Group | 2,724,614 | 417,566 | 1,331,962 |
Current portion of operating lease liabilities (including current portion of operating lease liabilities of the consolidated VIE without recourse to the Group of RMB59,982 and RMB125,986 as of December 31, 2019 and 2020, respectively) | 152,622 | 23,390 | 59,982 |
Income tax payable of the consolidated VIE without recourse to the Group | 4,654 | 713 | 16,093 |
Amounts due to related parties of the consolidated VIE without recourse to the Group | 0 | 0 | 460 |
Total current liabilities | 4,197,392 | 643,279 | 1,637,250 |
Non-current liabilities | |||
Deferred revenue, non-current portion of the consolidated VIE without recourse to the Group | 9,125 | 1,398 | 5,674 |
Non-current portion of operating lease liabilities (including non-current portion of operating lease liabilities of the consolidated VIE without recourse to the Group of RMB194,228 and RMB527,692 as of December 31, 2019 and 2020, respectively) | 644,143 | 98,719 | 194,228 |
Deferred tax liabilities of the consolidated VIE without recourse to the Group | 78,697 | 12,061 | 25 |
Other payables of the consolidated VIE without recourse to the Group | 26,580 | 4,074 | 0 |
TOTAL LIABILITIES | 4,955,937 | 759,531 | 1,837,177 |
Commitments and Contingencies (Note 21) | |||
SHAREHOLDERS' EQUITY | |||
Treasury stock, at cost | (139,572) | (21,390) | (86,739) |
Additional paid-in capital | 7,595,049 | 1,163,992 | 1,899,059 |
Accumulated other comprehensive income (loss) | (59,905) | (9,181) | 17,829 |
Statutory reserves | 40,380 | 6,189 | 6,921 |
Accumulated deficit | (1,706,210) | (261,488) | (279,821) |
TOTAL SHAREHOLDERS' EQUITY | 5,729,855 | 878,139 | 1,557,355 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 10,685,792 | 1,637,670 | 3,394,532 |
Common Class A [Member] | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares | 65 | 10 | 58 |
Common Class B [Member] | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares | ¥ 48 | $ 7 | ¥ 48 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares | |
Short-term investments, available-for-sale debt securities current | ¥ | ¥ 6,727,493 | ¥ 1,328,342 | |||
Long-term investments, available-for-sale debt securities noncurrent | ¥ | [1] | 525,373 | 1,181,693 | ||
Accrued expenses and other current liabilities | 1,315,502 | $ 201,610 | 228,753 | ||
Operating lease liabilities- current portion | 152,622 | 23,390 | 59,982 | ||
Operating lease liabilities-non-current portion | 644,143 | $ 98,719 | 194,228 | ||
Variable interest entity, primary beneficiary [Member] | |||||
Accrued expenses and other current liabilities | ¥ | 623,002 | 188,975 | |||
Operating lease liabilities- current portion | ¥ | 125,986 | 59,982 | |||
Operating lease liabilities-non-current portion | ¥ | ¥ 527,692 | ¥ 194,228 | |||
Common Class A [Member] | |||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||
Ordinary shares, shares authorized | 800,000,000 | 800,000,000 | 800,000,000 | ||
Ordinary shares, shares issued | 96,821,132 | 96,821,132 | 86,210,060 | ||
Ordinary shares, shares outstanding | 96,455,774 | 96,455,774 | 85,791,762 | ||
Common Class B [Member] | |||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||
Ordinary shares, shares issued | 73,305,288 | 73,305,288 | 73,305,288 | ||
Ordinary shares, shares outstanding | 73,305,288 | 73,305,288 | 73,305,288 | ||
[1] | Long-term available-for-sale debt investments are reported at fair value. Please refer to debt securities investments described in Note 2. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Net revenues | ¥ 7,124,744 | $ 1,091,915 | ¥ 2,114,855 | ¥ 397,306 |
Cost of revenues (including share-based compensation expenses of RMB283, RMB16,504 and RMB66,422 for the years ended December 31, 2018, 2019 and 2020, respectively) | (1,762,548) | (270,122) | (535,912) | (142,753) |
Gross profit | 5,362,196 | 821,793 | 1,578,943 | 254,553 |
Operating expenses: | ||||
Selling expenses (including share-based compensation expenses of RMB429, RMB5,606 and RMB18,039 for the years ended December 31, 2018, 2019 and 2020, respectively) | (5,816,214) | (891,374) | (1,040,906) | (121,518) |
Research and development expenses (including share-based compensation expenses of RMB782, RMB16,357 and RMB94,952 for the years ended December 31, 2018, 2019 and 2020, respectively) | (734,450) | (112,559) | (212,197) | (74,050) |
General and administrative expenses (including share-based compensation expenses of RMB4,423, RMB21,770 and RMB59,033 for the years ended December 31, 2018, 2019 and 2020, respectively) | (566,565) | (86,830) | (110,106) | (39,831) |
Total operating expenses | (7,117,229) | (1,090,763) | (1,363,209) | (235,399) |
Income (loss) from operations | (1,755,033) | (268,970) | 215,734 | 19,154 |
Interest income | 3,372 | 517 | 8,861 | 2,193 |
Realized gains from investments | 70,403 | 10,790 | 11,395 | 0 |
Other income | 269,657 | 41,327 | 6,462 | 495 |
Other expenses | (16,011) | (2,454) | (213) | (445) |
Income (loss) before provision for income tax and share of results of equity investees | (1,427,612) | (218,790) | 242,239 | 21,397 |
Income tax (expenses) benefits | 34,619 | 5,306 | (16,957) | (2,616) |
Share of results of equity investees | 63 | 10 | 1,348 | 869 |
Net income (loss) | (1,392,930) | (213,474) | 226,630 | 19,650 |
Less: Series A convertible redeemable preferred shares redemption value accretion | 0 | 0 | 16,772 | 38,930 |
Less: Undistributed earnings allocated to the participating preferred shares | 0 | 0 | 21,698 | 0 |
Net (loss) income attributable to GSX Techedu Inc.'s ordinary shareholders | ¥ (1,392,930) | $ (213,474) | ¥ 188,160 | ¥ (19,280) |
Net (loss) income per ordinary share | ||||
Basic | (per share) | ¥ (8.72) | $ (1.34) | ¥ 1.42 | ¥ (0.21) |
Diluted | (per share) | ¥ (8.72) | $ (1.34) | ¥ 1.35 | ¥ (0.21) |
Weighted average shares used in net (loss) income per share | ||||
Basic | 159,725,779 | 159,725,779 | 132,400,941 | 92,224,998 |
Diluted | 159,725,779 | 159,725,779 | 139,477,898 | 92,224,998 |
ADS [Member] | ||||
Net (loss) income per ordinary share | ||||
Basic | (per share) | ¥ (5.81) | $ (0.89) | ¥ 0.95 | ¥ (0.14) |
Diluted | (per share) | ¥ (5.81) | $ (0.89) | ¥ 0.90 | ¥ (0.14) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Share-based compensation expenses | ¥ 238,446 | ¥ 60,237 | ¥ 5,917 |
Cost of sales [Member] | |||
Share-based compensation expenses | 66,422 | 16,504 | 283 |
Selling expense [Member] | |||
Share-based compensation expenses | 18,039 | 5,606 | 429 |
Research and development expense [Member] | |||
Share-based compensation expenses | 94,952 | 16,357 | 782 |
General and administrative expense [Member] | |||
Share-based compensation expenses | ¥ 59,033 | ¥ 21,770 | ¥ 4,423 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | ¥ (1,392,930) | $ (213,474) | ¥ 226,630 | ¥ 19,650 |
Other comprehensive income (loss), net of tax: | ||||
Change in cumulative foreign currency translation adjustments | (74,562) | (11,427) | 9,219 | 10 |
Unrealized gains on available-for-sale investments (net of tax effect of nil, nil and 9,867 for the years ended December 31, 2018, 2019 and 2020, respectively) | 67,231 | 10,304 | 18,839 | 231 |
Transfer to statements of operations of realized gains on available-for-sale investments (net of tax effect of nil, nil and 9,654 for the years ended December 31, 2018, 2019 and 2020, respectively) | (70,403) | (10,790) | (11,395) | 0 |
Total comprehensive income (loss) attributable to GSX Techedu Inc. | ¥ (1,470,664) | $ (225,387) | ¥ 243,293 | ¥ 19,891 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Tax Effect Of Unrealized Gain On Available For Sale Investments | ¥ 9,867 | ¥ 0 | ¥ 0 |
Tax effect of transfer to statements of operations of realized gains on available-for-sale investments | ¥ 9,654 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Private Placement [Member]CNY (¥) | Ordinary Shares [Member]CNY (¥)shares | Ordinary Shares [Member]USD ($)shares | Ordinary Shares [Member]Private Placement [Member]CNY (¥)shares | Treasury Stock [Member]CNY (¥) | Treasury Stock [Member]USD ($) | Additional paid-in capital [Member]CNY (¥) | Additional paid-in capital [Member]USD ($) | Additional paid-in capital [Member]Private Placement [Member]CNY (¥) | AOCI attributable to parent [Member]CNY (¥) | AOCI attributable to parent [Member]USD ($) | Statutory Reserves [Member]CNY (¥) | Statutory Reserves [Member]USD ($) | Accumulated deficit [Member]CNY (¥) | Accumulated deficit [Member]USD ($) |
Beginning balance at Dec. 31, 2017 | ¥ (479,417) | ¥ 60 | ¥ 925 | ¥ (480,402) | |||||||||||||
Beginning balance, Shares at Dec. 31, 2017 | shares | 92,224,998 | 92,224,998 | |||||||||||||||
Net income (loss) | 19,650 | 19,650 | |||||||||||||||
Share-based compensation | 5,917 | ¥ 5,917 | |||||||||||||||
Accretion to redemption value of convertible redeemable preferred shares | (38,930) | (5,917) | (33,013) | ||||||||||||||
Foreign currency translation adjustments | 10 | 10 | |||||||||||||||
Unrealized gains on available-for-sale investments | 231 | 231 | |||||||||||||||
Transfer to statements of operations of realized gains on available-for-sale investments | 0 | ||||||||||||||||
Ending balance at Dec. 31, 2018 | (492,539) | ¥ 60 | 1,166 | (493,765) | |||||||||||||
Ending balance, Shares at Dec. 31, 2018 | shares | 92,224,998 | 92,224,998 | |||||||||||||||
Net income (loss) | 226,630 | 226,630 | |||||||||||||||
Transfer to statutory reserves | ¥ 6,921 | (6,921) | |||||||||||||||
Issuance of ordinary shares | 1,366,860 | ¥ 9 | 1,366,851 | ||||||||||||||
Issuance of ordinary shares, Shares | shares | 13,688,000 | 13,688,000 | |||||||||||||||
Share-based compensation | 60,237 | 60,237 | |||||||||||||||
Accretion to redemption value of convertible redeemable preferred shares | (16,772) | (11,007) | (5,765) | ||||||||||||||
Conversion of convertible redeemable Preferred shares | 482,834 | ¥ 25 | 482,809 | ||||||||||||||
Conversion of convertible redeemable Preferred shares, Shares | shares | 35,625,002 | 35,625,002 | |||||||||||||||
Repurchase of ordinary shares | (86,739) | ¥ (86,739) | |||||||||||||||
Repurchase of ordinary shares, Shares | shares | (418,298) | (418,298) | |||||||||||||||
Option exercised | 181 | ¥ 12 | 169 | ||||||||||||||
Option exercised, Shares | shares | 17,977,348 | 17,977,348 | |||||||||||||||
Foreign currency translation adjustments | 9,219 | 9,219 | |||||||||||||||
Unrealized gains on available-for-sale investments | 18,839 | 18,839 | |||||||||||||||
Transfer to statements of operations of realized gains on available-for-sale investments | (11,395) | (11,395) | |||||||||||||||
Ending balance at Dec. 31, 2019 | 1,557,355 | ¥ 106 | (86,739) | 1,899,059 | 17,829 | 6,921 | (279,821) | ||||||||||
Ending balance, Shares at Dec. 31, 2019 | shares | 159,097,050 | 159,097,050 | |||||||||||||||
Net income (loss) | (1,392,930) | $ (213,474) | (1,392,930) | ||||||||||||||
Transfer to statutory reserves | 33,459 | (33,459) | |||||||||||||||
Issuance of ordinary shares | ¥ 5,687,251 | ¥ 7 | ¥ 5,687,244 | ||||||||||||||
Issuance of ordinary shares, Shares | shares | 10,611,072 | ||||||||||||||||
Share-based compensation | 238,446 | 238,446 | |||||||||||||||
Accretion to redemption value of convertible redeemable preferred shares | 0 | $ 0 | |||||||||||||||
Repurchase of ordinary shares | (282,543) | (282,543) | |||||||||||||||
Repurchase of ordinary shares, Shares | shares | (754,244) | (754,244) | |||||||||||||||
Option exercised | ¥ 10 | 229,710 | (229,700) | ||||||||||||||
Option exercised, Shares | shares | 622,263 | 622,263 | 807,184 | 807,184 | |||||||||||||
Foreign currency translation adjustments | ¥ (74,562) | $ (11,427) | (74,562) | ||||||||||||||
Unrealized gains on available-for-sale investments | 67,231 | 67,231 | |||||||||||||||
Transfer to statements of operations of realized gains on available-for-sale investments | (70,403) | (10,790) | (70,403) | ||||||||||||||
Ending balance at Dec. 31, 2020 | ¥ 5,729,855 | $ 878,139 | ¥ 113 | $ 17 | ¥ (139,572) | $ (21,390) | ¥ 7,595,049 | $ 1,163,992 | ¥ (59,905) | $ (9,181) | ¥ 40,380 | $ 6,189 | ¥ (1,706,210) | $ (261,488) | |||
Ending balance, Shares at Dec. 31, 2020 | shares | 169,761,062 | 169,761,062 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) EQUITY (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Statement of Stockholders' Equity [Abstract] | |
Stock Issuance Costs | ¥ 31,791 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | ¥ (1,392,930) | $ (213,474) | ¥ 226,630 | ¥ 19,650 |
Adjustments to reconcile net income (loss) to net cash generated from operating activities: | ||||
Depreciation of property, equipment and software | 55,751 | 8,544 | 11,919 | 4,043 |
Amortization of intangible assets and land use rights | 1,461 | 224 | 137 | 173 |
Gain from remeasuring fair value of previously held equity interests upon business acquisition | 0 | 0 | 0 | (86) |
Share of results of equity investees | (63) | (10) | (1,348) | (869) |
Realized gains from investments | (70,403) | (10,790) | (11,395) | 0 |
Loss (gain) on disposal of property, equipment and software | 3,145 | 482 | (175) | 108 |
Share-based compensation | 238,446 | 36,543 | 60,237 | 5,917 |
Changes in operating assets and liabilities: | ||||
Accrued expenses and other current liabilities | 1,508,939 | 231,254 | 357,203 | 8,440 |
Deferred revenue | 1,384,403 | 212,169 | 1,065,595 | 222,928 |
Prepaid expenses and other current assets | (479,985) | (73,561) | (204,648) | (20,973) |
Income tax payable | (11,439) | (1,753) | 16,093 | 0 |
Amounts due from related parties | 0 | 0 | 710 | 1,287 |
Other assets | (614,225) | (94,134) | (236,420) | (1,291) |
Amounts due to related parties | 0 | 0 | 0 | (74) |
Deferred tax assets | (17,608) | (2,699) | 550 | 2,659 |
Deferred tax liabilities | (2,219) | (340) | (34) | (43) |
Net cash generated from operating activities | 603,273 | 92,455 | 1,285,054 | 241,869 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of short-term investments | (17,394,632) | (2,665,845) | (8,727,762) | (422,760) |
Proceeds from maturity of short-term investments | 11,689,198 | 1,791,448 | 7,393,386 | 232,950 |
Purchase of property, equipment, software and intangible assets | (284,072) | (43,535) | (61,267) | (12,134) |
Payment for asset acquisition | (74,309) | (11,388) | 0 | 0 |
Purchase of long-term investments | 0 | 0 | (1,109,180) | 0 |
Proceeds from maturity of long-term investments | 501,733 | 76,894 | 0 | 0 |
Proceeds from capital return related to equity method investment | 1,300 | 199 | 0 | 3,185 |
Acquisition of businesses | (35,529) | (5,445) | 0 | 37 |
Disposal of property, equipment and software | 7 | 1 | 257 | 2 |
Net cash used in investing activities | (5,596,304) | (857,671) | (2,504,566) | (198,720) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Net proceeds from initial public offering and from exercising the over- allotment option by the underwriters (net of issuance cost of RMB31,791) | 0 | 0 | 1,366,860 | 0 |
Capital contribution | 36 | 6 | 0 | 0 |
Proceeds from private placement financing | 5,687,251 | 871,609 | 0 | 0 |
Repurchase of ordinary shares | (282,543) | (43,302) | (86,739) | 0 |
Payment for asset acquisition after three months of completion | (132,184) | (20,258) | 0 | 0 |
Amount borrowed from related parties | 0 | 0 | 0 | 960 |
Repayment to related parties | (460) | (70) | (34,056) | (30,153) |
Net cash (used in) generated from financing activities | 5,272,100 | 807,985 | 1,246,065 | (29,193) |
Effect of exchange rate changes | 2,188 | 335 | 14,155 | 9 |
Net increase in cash and cash equivalents | 281,257 | 43,104 | 40,708 | 13,965 |
Cash and cash equivalents at beginning of the year | 73,967 | 11,336 | 33,259 | 19,294 |
Cash and cash equivalents at end of the year | 355,224 | 54,440 | 73,967 | 33,259 |
Supplemental schedule of cash flow information | ||||
Income taxes paid | 86,348 | 13,233 | 348 | 0 |
Non-cash investing and financing activity | ||||
Disposal of subsidiaries | 0 | 0 | 0 | 245 |
Payables for purchase of property, equipment and software | ¥ 163,408 | $ 25,043 | ¥ 15,815 | ¥ 714 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Statement of Cash Flows [Abstract] | |
Net issuance of stock | ¥ 31,791 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES GSX Techedu Inc. was incorporated under the laws of the Cayman Islands in August 2014. The Company, its subsidiaries, its consolidated variable interest entity (“VIE”) and VIE’s subsidiaries (collectively the “Group”) are currently engaged in the business of providing K-12 Beijing BaiJiaHuLian Technology Co., Ltd (“Beijing BaiJiaHuLian” or “VIE”) was founded in June 2014, as a limited liability company in the PRC, and the name changed to Beijing BaiJia Technology Co., Ltd (“Beijing BaiJia” or “VIE”) in September 2020. Beijing BaiJia and its subsidiaries are primarily engaged in providing online K-12 There are some uncertainties as to whether applicable PRC laws and regulations prohibit foreign investors from providing internet and other business in the PRC. To comply with the relevant PRC laws and regulations, the Company operates substantially all of its business through its VIE. On April 28, 2015, BaiJia Technology Group Holdings Limited, through BaiJiaHuLian HK Holdings Limited (“BaiJiaHuLian HK”) and its PRC subsidiary, Beijing Lexuebang Network Technology Co., Ltd. (“Beijing Lexuebang”), entered into a series of contractual arrangements with Beijing BaiJia, and the shareholders of Beijing BaiJia. The series of contractual agreements include an Exclusive Management Services and Business Cooperation Agreement, an Exclusive Call Option Agreement, an Equity Pledge Agreement, Powers of Attorney, Spousal Consent Letters and Letters of Commitment. Those agreements were amended on March 2019 with no significant differences. In connection with the amendment and as part of the Group’s efforts to streamline the corporate structure, the Group removed six existing nominee shareholders as parties to the contractual arrangements with Beijing BaiJia and its shareholders. The rights and obligations of these nominee shareholders under these contractual arrangements have been assumed by Mr. Larry Xiangdong Chen. The Group believes that these contractual arrangements would enable the Company to (1) have power to direct the activities that most significant affects the economic performance of VIE, and (2) receive the economic benefits of the VIE that could be significant to the VIE. Accordingly, the Company is considered the primary beneficiary of the VIE. The Company’s subsidiaries, VIE and VIE’s major subsidiaries as of December 31, 2020 were as follow: Name Later of date Place of establishment Percentage of Principal activities Subsidiaries: BaiJiaHuLian HK Aug 18, 2014 HongKong, China 100% Holding company Beijing Lexuebang Jan 12, 2015 Beijing, China 100% Education technical services Wuhan Yuexuebang Network Technology Co., Ltd May 25, 2020 Wuhan, China 100% Education technical services Beijing Yuexuebang Network Technology Co., Ltd (“Beijing Yuexuebang”) Nov 24, 2020 Beijing, China 100% Education technical services VIE: Beijing BaiJia Jun 4, 2014 Beijing, China 100% Education services VIE’s major subsidiaries: Beijing Genshuixue Technology Co., Ltd. (“Beijing Genshuixue”) May 14, 2015 Beijing, China 100% Education services Beijing GaoTuYunJi Education Technology Co., Ltd. GaoTuYunJi Jul 18, 2017 Beijing, China 100% Education services Shandong Genshuixue Internet Technology Co., Ltd. (“Shandong Genshuixue”) Jan 17, 2020 Jinan, China 100% Education services Zhengzhou GaoTuYunJi Education Technology Co., Jan 19, 2020 Zhengzhou, China 100% Education services Xi’an GaoTuYunJi Education Technology Co., Ltd. (“Xi’anGaoTu”) Mar 24, 2020 Xi’an, China 100% Education services Wuhan GaoTuYunJi Education Technology Co., Ltd. (“WuhanGaoTu”) Apr 1, 2020 Wuhan, China 100% Education services The English names abov e The VIE arrangements Details of the contractual agreements are set forth below. • 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 Beijing Lexuebang, the VIE and the shareholders of the VIE, Beijing Lexuebang 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 Beijing Lexuebang in an amount determined by Beijing Lexuebang in its sole discretion. Without the prior written consent of Beijing Lexuebang, the VIE and its subsidiaries cannot accept services provided by or establish similar cooperation relationship with any third-party. Beijing Lexuebang 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 be effective for twenty years upon signing by both parties. The term of the agreement was amended on March 2019 and the agreement will remain effective unless unanimously agreed by the parties concerned or unilaterally terminated by Beijing Lexuebang with a written notice. Unless otherwise required by applicable PRC laws, our VIE and its shareholders do not have any right to terminate the agreement. • Agreements that provide the Company effective control over Beijing BaiJia: Equity Pledge Agreement Under the equity interest pledge agreement among Beijing Lexuebang, the VIE and its shareholders, the VIE’s shareholders pledged all of their equity interests of the VIE to Beijing Lexuebang 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 and the powers of attorney. If any of the specified events of default occurs, Beijing Lexuebang may exercise the right to enforce the pledge immediately. Beijing Lexuebang may transfer all or any of its rights and obligations under the equity interest pledge agreement to its designee(s) at any time. The 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 and the powers of attorney. Exclusive Call Option Agreement Under the exclusive call option agreement among Beijing Lexuebang, the VIE and its shareholders, each of the shareholders of the VIE irrevocably granted Beijing Lexuebang 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 Beijing Lexuebang’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 Beijing Lexuebang or its designee(s). The VIE and its shareholders covenant that, without Beijing Lexuebang’s prior written consent, they will not, among other things, (i) create any pledge or encumbrance on their equity interests in the VIE; (ii) transfer or otherwise dispose of their equity interests in the VIE; (iii) change the VIE’s registered capital; (iv) amend the VIE’s articles of association; (v) 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; (vi) cause the VIE to enter into any major contracts or terminate any material contracts to which the VIE is a party; (vii) declare or distribute dividends; (viii) terminate, liquidate or dissolve our VIE; or (ix) allow the VIE to incur, inherit, guarantee or permit any debts, except for those payables incurred in the ordinary or usual course of business but not incurred by way of borrowing. The agreement will remain effective until terminated by Beijing Lexuebang at its discretion or the entire equity interests in the VIE have been transferred to Beijing Lexuebang or its designees. Powers of Attorney Pursuant to the powers of attorney executed by the VIE’s shareholders, each of them irrevocably authorized Beijing Lexuebang or its designee(s) 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 held by each of them in the VIE, including but not limited to proposing to convene or attend shareholder meetings, signing the resolutions and minutes of such meetings, exercising all the rights as shareholders (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 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 unconditionally and irrevocably agreed that the equity interest in the VIE held by and registered in the name of their spouses be disposed of in accordance with the exclusive call option agreement, the exclusive management services and business cooperation agreement, the equity interest pledge agreement and the powers of attorney described above, and that their spouses may perform, amend or terminate such agreements without their additional consent. Additionally, the signing spouses agreed not to assert any rights over the equity interest in the VIE held by their spouses. In addition, in the event that the signing spouses obtains any equity interest in the VIE held by their spouses for any reason, they agree to be bound by and sign any legal documents substantially similar to the contractual arrangements described above, as may be amended from time to time. • Risks in relation to VIE structure The Company believes that the contractual arrangements with Beijing BaiJia 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: • Beijing BaiJia 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 Beijing BaiJia, 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. • Beijing BaiJia 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 any of the aforementioned actions. As a result, the Group may not be able to consolidate Beijing BaiJia and its subsidiaries in the consolidated financial statements as the Group may lose the ability to exert effective control over Beijing BaiJia and its shareholders, and the Group may lose the ability to receive economic benefits from Beijing BaiJia. The Group’s business has been directly operated by the VIE and its subsidiaries. As of December 31, 2019 and 2020, the VIE and its subsidiaries accounted for an aggregate of 57.21% and 33.02%, respectively, of the Group’s consolidated total assets, and 97.83% and 83.14% respectively of the Group’s consolidated total liabilities. The following financial information of the Company’s VIE and VIE’s subsidiaries after the elimination of inter-company transactions and balances as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 was included in the accompanying consolidated financial statements: As of December 31 2019 2020 RMB RMB Cash and cash equivalents 9,763 20,701 Short-term investments 1,191,664 1,347,750 Prepaid expenses and other current assets 195,448 605,287 Inventory 8,822 48,074 Total current assets 1,405,697 2,021,812 Property, equipment and software, net 76,955 658,592 Intangible assets 100 13,219 Land use right — 28,983 Long-term investments 143,800 5,356 Deferred tax assets 30,716 48,324 Operating lease right-of-use 264,909 660,407 Others 19,692 91,644 Total non-current 536,172 1,506,525 Total assets 1,941,869 3,528,337 Accrued expenses and other current liabilities 188,975 623,002 Deferred revenue, current portion 1,331,962 2,724,614 Current portion of operating lease liabilities 59,982 125,986 Income tax payable 16,093 4,654 Amounts due to related parties 460 — Total current liabilities 1,597,472 3,478,256 Deferred revenue, non-current 5,674 9,125 Deferred tax liabilities 25 78,697 Non-current portion of operating lease liabilitie s 194,228 527,692 Other payables — 26,580 Total non-current 199,927 642,094 Total liabilities 1,797,399 4,120,350 For the year ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues 397,306 2,114,855 7,124,744 Net income 66,934 211,799 2,406,144 Net cash generated from operating activities 239,307 1,238,366 3,945,706 Net cash used in investing activities (195,193 ) (1,172,967 ) (305,448 ) Net cash used in financing activities (31,040 ) (87,239 ) (132,644 ) 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, 2020 | |
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 accordance with the rules and regulations of the Security and Exchange Commission and 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, revenue recognition, valuation allowance for deferred tax assets, useful lives of property, equipment and software, impairment assessment of long-lived assets, fair value assessment of available-for-sale Principles of consolidation The accompanying consolidated financial statements include the financial information of the Group and its subsidiaries, the VIE and the VIE’s subsidiaries. All intercompany balances and transactions were eliminated upon consolidation. 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 tran s 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. Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, short-term investments, long-term investments accounted for available-for-sale debt investments, receivables from third party payment platform, amounts due to related parties and other liabilities. As of December 31, 2019 and 2020, the carrying values of cash and cash equivalents, held-to Available-for-sales Foreign currency translation and transactions The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the subsidiaries incorporated outside the mainland China is United States dollar (“US dollar” or “US$”). The functional currency of all the other subsidiaries, the VIEs and VIEs’ subsidiaries is RMB. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Revenues and expenses are translated using the average rate of exchange in effect during the reporting period. Translation adjustments are reported and shown as a separate component of other comprehensive loss in the consolidated statements of changes in shareholders’ deficit and the consolidated statements of comprehensive loss. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Transaction gains and losses are recorded in the consolidated statements of operations. 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 US dollars 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 income (loss), change in shareholders’ (deficit) equity and cash flows from Renminbi (“RMB”) into US dollars as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.5250 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2020. 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, 2020, 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. Debt securities investments As of December 31, 2019 and 2020, the Group’s debt securities include held-to-maturity available-for-sale Held-to-maturity investments Investments are classified as held-to-maturity held-to-maturity RMB and RMB as of December 31, 2019 and 2020, respectively and were recorded as short-term investments as their maturities are less than twelve months. The Group reviews its investments in held-to-maturity investments for impairment periodically, recognizing an allowance, if any, by applying an estimate loss rate. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its investments in held-to-maturity investments. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the held-to-maturity investments. The allowance for credit losses was nil for the year ended December 31, 2020. Available-for-sale investments Debt securities investments that do not meet the criteria of held-to-maturity available-for-sale (loss) available-for-sale available-for-sale The Group evaluates each individual investment periodically for impairment. For investments where the Group does not intend to sell, the Company evaluates whether a decline in fair value is due to deterioration in credit risk. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit losses on the consolidated balance sheet with corresponding adjustment in the consolidated statements of operations and comprehensive income. Subsequent increases in fair value due to credit improvement are recognized through reversal of the credit loss and corresponding reduction in the allowance for credit loss. Any decline in fair value that is non-credit related is recorded in accumulated other comprehensive income as a component of shareholder’s equity. Property, equipment and software, net Property, equipment and software 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 Electronic equipment 3 years Furniture and office equipment 5 years Software 2-10 years Building 37 years Leasehold improvement Shorter of the lease term or estimated economic life Construction in progress is stated at cost, which includes the cost of construction and other directly attributable costs. No provision for depreciation is made on construction in progress until the relevant assets are completed and ready for their intended use. Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, equipment and software 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 . 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, 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. Land use rights All land in the PRC is owned by the PRC government, which, according to the relevant PRC law, may grant the right to use the land for a specified period of time. Land use rights are recorded at cost and amortized on a straight line basis over the term of the land certificates. Goodwill The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheets as goodwill. Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired. As part of the annual goodwill impairment test, the Group first performs a qualitative assessment to determine whether further impairment testing is necessary. If the qualitative assessment above indicates that it is more likely than not that the fair value of the indefinite-lived intangible asset or the reporting unit (for goodwill) is less than its carrying value, a quantitative impairment test is performed to compare the fair value to the carrying value. An impairment charge is recorded if the carrying value exceeds the fair value. The Group did not record any impairment losses on its goodwill during the years ended December 31, 2018, 2019 and 2020. Intangible assets Intangible assets are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives. The estimated useful lives of intangible assets are as follows: Category Estimated useful life Student base 1.5-2 years Trademark 3-10 years 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, 20 18, Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in common shares or in-substance . O Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into earnings and accordingly adjusts the carrying amount of the investment. The Group reviews its equity method investments for impairment whenever an event or circumstance indicates that any other-than-temporary impairment has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investment. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Group did not record any impairment losses on its equity method investments for the years ended December 31, 2018, 2019 and 2020. Revenue recognition The Group recognizes revenue to depict the transfer of promised 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, in accordance with ASC Topic 606 Revenue from Contracts with Customers (“Topic 606”). The Group’s revenue is reported net of discount, value added tax and related surcharges. Disaggregation of revenue For the years ended December 31, 2018, 2019 and 2020, all of the Group’s revenues were generated in the PRC. Additionally, all of the revenues for the periods were recognized from contracts with customers. The following table provides information about disaggregated revenue by types, including a reconciliation of the disaggregated revenue with the Group’s reportable segment. Year ended December 31, 2018 2019 2020 RMB RMB RMB Online tutoring services 362,622 2,084,803 7,109,255 - K-12 courses 290,890 1,706,538 6,237,399 - Foreign language, professional and admission courses 71,732 378,265 871,856 Other services 34,684 30,052 15,489 Total net revenues 397,306 2,114,855 7,124,744 The primary sources of the Group’s revenues are as follows: (1) Online tutoring services The Group offers various types of integrated online tutoring services covering a wide spectrum of topics and targets students from broad age groups through its diverse offerings of K-12 Once the live interactive tutoring services is complete, the Group also offers the customer a content playback service. In the content playback service, the customer has unlimited access to online pre-recorded Tutoring fees are collected in advance. The Group determines that there is not a significant financing component based on the nature of the service being offered and the purpose of the payment terms. The Group charges a single upfront amount, not with the primary purpose of obtaining financing from the students but, instead, to maximize profitability, taking into consideration the risks associated with providing the service. The Group 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, and allocates the tutoring fee excluding the estimate for refund liability to each performance obligation using the relative stand-alone selling price. The Group determines the stand-alone selling prices using an expected cost plus margin methodology. Revenue related to the live interactive tutoring service is recognized proportionately as the online classes are delivered, as the Group concluded that the delivery of each online class represents a faithful depiction of when the services are provided to the students. Revenue related to the right to access the content playback is recognized proportionally over the playback period, as the Group concluded that the content playback service represents a stand ready obligation to provide the playback services and the customer simultaneously receives and consumes the benefits as the Group provides such services throughout the playback period. In some promotion activities, the Group grants sales incentives, including cash coupon and free class, to students who make qualified course purchases. Those students can redeem the cash coupon in the next purchase as part of payment, or select to enroll in a new course free of charge, prior to the incentive’s expiration. The cash coupon and free class will expire in no more than eight months. The Group determined the cash coupon and/or free course granted to existing students are material rights. As a result, a portion of sales price received on students making qualified purchases is allocated to the sales incentives granted based on the relative standalone selling prices. The selling price of cash coupon is estimated based on the discount amount and the probability of redemption. Revenue allocated to sales incentives is recorded as deferred revenue until redemption or expiration. Once the coupon or free class is redeemed, revenue will be recognized based on the revenue recognition policy discussed above. Students may not always redeem the cash coupon or take the free class offered before the expiration of the sales incentive. Therefore, the Group expects to be entitled to a breakage amount in deferred revenue related to the incentives. The Group estimates the breakage based on historical students’ usage and recognizes the estimated breakage as revenue in proportion to the pattern of incentives exercised by students. The assessment of estimating breakage is updated on a quarterly basis. Changes in estimated breakage is accounted for by adjusting deferred revenue to reflect the remaining incentive rights expected to be exercised. (2) Other services Other service revenues are primarily derived from 1) membership-based service and 2) offline business consulting courses. The Group provided membership-based services before the end of the first quarter of 2019, which consisted of providing a platform connecting training institutions or individual teachers and students. Training institutions or individual teachers who paid the membership fees were able to join the Group’s online platform and market their courses to prospective students. Membership fees were primarily fixed and no contractual membership fee refunds were provided to the training institutions or individual teachers. The membership services mainly provided training institutions or individual teachers with display of an online storefront on the Group’s platforms and access to online account management system, which were accounted for as a single performance obligation as the membership services were highly integrated. These service fees were paid in advance for a specific contracted service period and the revenues were recognized proportionally over the service period, typically 12 months, as the Group concluded that the membership service represented a stand ready obligation to provide the services while the member simultaneously receives and consumes the benefits of such services throughout the contract period. The Group also offers offline business consulting courses targeting principals and other officers of private education institutions who want to improve their management skills. No contractual service fee refund is provided to the course participants. Course fees are collected in advance and the revenues, net of any discounts, are recognized proportionally over the service period, which is generally less than a year, as the classes are generally delivered evenly through the course period. Contract balances Contract cost Incremental costs of obtaining a contract with a customer is recognized as an asset in “Prepaid expenses and other current assets” if the Group expects to recover those costs. Incremental costs of obtaining a contract mainly include sales commissions to sales personnel and third-party agents which the Group started in July 2019. Contract cost assets are amortised over the estimated customer life. There was no impairment of contract cost assets recognized during the year end e As of December 31, 2019 and 2020, the balance of contract cost was RMB64,805 and RMB77,668. For the years ended December 31, 2018, 2019 and 2020, the Group recognized amortization of RMBnil, RMB156,710 and RMB185,787 as “Selling expenses” in its consolidated statement of operations. Contract and refund liabilities The following table provides information about the Group’s contract liabilities and refund liability arising from contract with customers. The increase in contract liabilities primarily resulted from the Group’s business growth. Year ended December 31, 2019 2020 RMB RMB Deferred revenue, current 1,331,962 2,724,614 Deferred revenue, non-current 5,674 9,125 1,337,636 2,733,739 Refund liability 54,567 120,709 Deferred revenue primarily consists of tuition 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 are met. Revenue recognized during the years ended December 31, 2019 and 2020 that was included in the deferred revenue balance at January 1, 2019 and January 1, 2020 amounted to RMB259,384 and RMB1,297,088, respectively. Refund liability represents the tutoring fee collected by the Group which it expects to refund back to its customer as a result of its refund policy. Refund liability is estimated based on the historical refund ratio for each of the type of classes provided. The Group’s remaining performance obligations represents the amount of the transaction price for which service has not been performed. As of December 31, 2020, the aggregate amount of the transaction price allocated for the remaining performance obligations amounted to RMB2,733,739. The Group expects to recognize revenue of RMB2,724,614 and RMB6,708 related the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder of RMB2,417 recognized thereafter. Cost of revenues Cost of revenues mainly consists of salaries to instructors and tutors, rental expenses for office space, depreciation and amortization of properties and equipment, teaching materials and bandwidth costs. The instructors consist of both full-time instructors and part-time instructors. Full-time instructors’ compensation primarily consists of base salary, as well as teaching fees based on hourly rates and attendance of students in connection with courses delivered. The compensation of part-time instructors is calculated as a fixed percentage of the tuition fees of the courses delivered by the instructors, and is accrued as courses are delivered. The compensation of tutors consists of base salary and performance-based compensations, which is determined based on student retention and exercise completion. Specifically, if an existing student of a tutor enrolls in a new course, a bonus is paid to the tutor which is calculated as a percentage of the tuition of the new course. Tutors also receive a fixed payment for each exercise marking performed. The Group accrues on a monthly basis for the cost of tutor which includes basic salary, compensation for exercise marking as well as student retention bonus. The retention bonus is estimated using the expected tuition collected for the retention courses, multiplied by the estimated retention rate and the bonus percentage. Government subsidies The government subsidies provided by the local government mainly included funding to support the development of the Group. Government subsidies are recognized upon receipt as government subsidies income because the subsidies are not intended to compensate for specific expenditure and not subject to future return. For the years ended December 31, 2018, 2019 and 2020, RMB400, RMB310 and RMB6,941 were received and recognized as other income in the Group’s consolidated statements of operations, respectively. Value added taxes The Group’s educational services and non-educational services are subject to VAT at the rate of 3% for small-scale-VAT-payer general-VAT-payer Since January 2020, in accordance with Cai Shui [2020] No.8, due to the Novel coronavirus (“COVID-19”) pandemic, the VAT on certain services was temporarily exempted for the value added tax exemption was recognized as other income in the Group’s consolidated statement of operations. 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 more-likely-than-not 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 income (loss) Comprehensive income (loss) includes net income (loss), foreign currency translation adjustments and the unrealized gains and losses on available-for-sale Leases The Group adopted Topic 842 on January 1, 2019 using the modified retrospective transition approach allowed under ASU 2018-11, without adjusting the comparative periods presented. Upon adoption of Topic 842, the Group recognized right-of-use assets and corresponding lease liabilities on the consolidated balance sheet. The difference between the right-of-use assets and lease liabilities was due to prepaid rent. The Group leases administrative office spaces in different cities in the PRC under operating leases. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use s right-of-use For short-term leases, the Group records operating lease expense in its consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. Net (loss) income per share Basic (loss) income per ordinary share is computed by dividing net (loss) income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The Group has determined that its convertible redeemable preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted two-class Diluted (loss) income per ordinary share reflect the potential dilution that would occur if securities were exercised or converted into ordinary shares. The Group had convertible redeemable participating preferred shares and share options, which could potentially dilute basic income per share in the future. To calculate the number of shares for diluted income per ordinary shares, the effect of the convertible redeemable participating preferred shares is computed using the as-if-converted 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 denominated in RMB amounted to RMB11,677 and RMB151,009 as of December 31, 2019 and 2020, respectively. Concentration risks Financial instruments that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, short-term investments and receivables from third party payment platform. As of December 31, 2019 and 2020, substantially all of the Group’s cash and cash equivalents and short-term investments were deposited in financial institutions located in the PRC. There are no revenues from customers which individually represent greater than 10% of the total net revenues for the years ended December 31, 2018, 2019 and 2020. Reclassification Certain prior period amount recorded in prepaid expenses and other current assets have been reclassified to inventory to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit. Newly adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13, 2016-13 2019-04, 2019-04 2016-13, 2019-04 2016-13 2019-04 2016-13 . The Group adopted ASU 2016-13 on January 1, 2020 using the modified retrospective transition approach, without adjusting the comparative periods presented. The adoption of Topic 326 did not have a material impact on the Group’s consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, 2018-17 The Group adopted ASU 2018-17 on January 1, 2020 using a retrospective approach. The adoption of this guidance did not have a material impact on the Group’s consolidated financial statements. 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 adopted this update on January 1, 2020 prospectively. The adoption of this guidance did not have a material impact on the consolidated financial statements. |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | 3. BUSINESS ACQUISITION In December 2020, the Group acquired 100% equity interest of Tianjin Puxin K-12 e respectively. The Group acquired Tianjin Puxin to further expand its online education student base. Tianjin Puxin after acquisition constituted less than 0.05% and 0.15% of revenue and total assets of the consolidated financial statement during and as of the year ended December 31, 2020 and the results of operations attributable to Tianjin Puxin and pro forma adjustment for Tianjin Puxin have not been presented because they are not material to the consolidated statements of operations and comprehensive income for the years ended December 31, 2019 and 2020. The acquired assets and liabilities were recorded at their fair value on the date of acquisition. The purchase price allocation was determined by the Group with assistance of an independent appraiser. The purchase price was allocated on the date of acquisition as below: 2020 Amortization period RMB Other current assets 123 Intangible assets : Trademark 1,300 3 years Student base 12,400 2 years Goodwill 43,300 Deferred revenue (11,700 ) Other current liabilities (457 ) Deferred tax liabilities (7,567 ) 37,399 The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, which is comprised 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 summarized unaudited pro forma results of operations for the years ended December 31, 2019 and December 31, 2020 assuming that the acquisition during the year ended December 31, 2020 occurred as of January 1, 2019. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of January 1, 2019, nor is it indicative of future operating results. For the years ended December 31, 2019 2020 RMB RMB (Unaudited) (Unaudited) Pro forma net revenues 2,127,834 7,231,144 Pro forma net income (loss) 177,761 (1,477,022 ) |
ASSETS ACQUISITION
ASSETS ACQUISITION | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ASSETS ACQUISITION | 4. ASSETS ACQUISITION In December 2019, the Group entered into a purchase agreement with Zhengzhou Kaitong Technology and Trading Co., Ltd (“Zhengzhou Kaitong”). The purpose of the acquisition is to acquire the commercial real estate owned by Zhengzhou Kaitong which includes two completed office buildings and one office building in construction. The Group plans to use these premises for business operating purposes. In January 2020, the Group completed the acquisition of the real estate for an aggregate consideration of RMB333,809, which consisted of cash consideration amounting RMB228,089 and liability amounting RMB105,720. As of December 31, 2020, the Group had a future obligations related to ing , a does not expect the payment to be completed within one year of the acquisition based on the agreement. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of December 31 2019 2020 RMB RMB Prepaid VAT and income tax (1) — 312,003 Prepaid other service fees (2) 112,939 264,877 Contract cost (3) 64,805 77,668 Receivables from broker (4) 43,993 47,634 Receivables from third party payment platform (5) 26,570 11,596 Staff advance 3,809 5,813 Others 544 3,091 252,660 722,682 (1) Prepaid VAT and income tax consist of (a) VAT input that is expected to offset with VAT output tax or to be transferred out and (b) the prepayment of income tax. (2) Prepaid other service fees consist of prepayment of advertising fees and cloud server hosting fees. The prepayments of advertising fees and cloud server hosting fees are generally short-term in nature and are amortized over the related service period. (3) Contract cost mainly includes sales commissions to sales personnel and third-party agents which the Group started in July 2019 as described in Note 2. (4) Amount represents receivable from broker related to employee’s stock option exercises in connection with employees’ tax obligations. In 2019 and 2020, certain employees exercised their stock options for which the Company paid the relevant employee’s tax obligations on their behalf to the appropriate taxing authorities. To settle the employees’ obligations with the Company, the Company’s broker withheld some of the employees’ shares and subsequently sold them in the open market at fair value. The receivable represents the cash to be received from the broker related to the above transaction. (5) Receivables from third party payment platform consist of cash that has been received from course participants but held by the third-party payment platform. The Group subsequently collected the full balance from the third-party payment platform. |
PROPERTY, EQUIPMENT AND SOFTWAR
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 6. PROPERTY, EQUIPMENT AND SOFTWARE, NET Property, equipment and software consisted of the following: As of December 31, 2019 2020 RMB RMB Electronic equipment 60,778 214,235 Building — 189,965 Leasehold improvement 21,851 80,705 Furniture and office equipment 6,632 21,180 Software 2,043 7,183 Construction in progress 15,130 268,515 106,434 781,783 Less: Accumulated depreciation (24,574 ) (77,445 ) 81,860 704,338 Depreciation expenses were RMB4,043, RMB11,919 and RMB55,751 for the years ended December 31, 2018, 2019 and 2020, respectively. |
LAND USE RIGHTS
LAND USE RIGHTS | 12 Months Ended |
Dec. 31, 2020 | |
Land Use Rights Disclosure [Abstract] | |
LAND USE RIGHTS | 7. LAND USE RIGHTS Land use rights consisted of the following: As of December 31, 2019 2020 RMB RMB Land use rights — 29,788 Less: Accumulated amortization — (805 ) — 28,983 Amortization expenses for land use right were nil, nil and RMB805 for the years ended December 31, 2018, 2019 and 2020, respectively. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Investments [Abstract] | |
LONG-TERM INVESTMENTS | 8. LONG-TERM INVESTMENTS As of December 31, 2019 2020 RMB RMB Equity method investments (1) 6,593 5,356 Available-for-sale debt investments (2) 1,181,693 525,373 1,188,286 530,729 (1) The Group holds less than 40% equity interests in several third-party private companies through investments in their of s (2) Long-term available-for-sale described |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | 9. GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2020 were presented as follow: As of December 31, 2019 2020 RMB RMB Beginning balance 331 331 Addition (1) — 43,300 Accumulated impairment loss — — Goodwill, net 331 43,631 (1) Represent the goodwill in the acquisition of Tianjin Puxin in December 2020, which was described as Note 3. The Group conducted goodwill impairment assessment at the end of each reporting year or more frequently if there are changes indicate that it may be impaired. The Group recorded no goodwill impairment losses for the year s |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 10. INTANGIBLE ASSETS The intangible assets consisted of the following: As of December 31, 2019 2020 RMB RMB Student base 110 12,510 Trademark 300 1,675 Total 410 14,185 Less: Accumulated amortization (310 ) (966 ) 100 13,219 The Group recognized amortization expense of RMB173, RMB137 and RMB656 for the year s December 31 2018, 2019 and 2020, respectively. As of December 31, 2020, the Group expects to recognize amortization expenses of RMB6,641, RMB6,124, RMB405, RMB8 and RMB8 for the next five years, respectively, and RMB33 thereafter. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The components of accrued expenses and other current liabilities were as follows: As of December 31, 2019 2020 RMB RMB Salary and welfare payable 127,032 507,867 Accrued marketing expense — 366,426 Refund liability (1) 54,567 120,709 Other accrued expense 26,163 118,002 Payable for investments and acquisitions — 102,606 Other tax payable 10,700 93,902 Others 6,869 4,441 Payable to third-parties 3,422 1,549 228,753 1,315,502 (1) Refund liability represents the estimated amounts of service fee received that is estimated to be refunded as described in Note 2. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | 12. FAIR VALUE MEASUREMENT Measured at fair value on a recurring basis As of December 31, 2019 and 2020, available-for-sale Fair value measurement as of December 31, 2020 Quoted prices Significant Significant Total (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Short-term investments: Available-for-sale - Wealth management products 104,259 6,623,234 — 6,727,493 Long-term investments: Available-for-sale - Wealth management products — 525,373 — 525,373 Total 104,259 7,148,607 — 7,252,866 Fair value measurement as of December 31, 2019 Quoted prices Significant Significant Total (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Short-term investments: Available-for-sale - Wealth management products — 1,328,342 — 1,328,342 Long-term investments: Available-for-sale - Wealth management products — 1,181,693 — 1,181,693 Total — 2,510,035 — 2,510,035 The Group’s available-for-sale As of December 31, 2020, the Group also invested wealth management products in active market and valued these wealth management products with quoted price, and accordingly the Group classified these assets as Level 1. A summary of available-for-sale As of December 31, 2020 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale - Wealth management products 6,726,150 1,343 — — 6,727,493 Long-term investments: Available-for-sale - Wealth management products 522,000 3,373 — — 525,373 Total 7,248,150 4,716 — — 7,252,866 As of December 31, 2019 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale - Wealth management products 1,321,090 7,252 — — 1,328,342 Long-term investments: Available-for-sale - Wealth management products 1,181,270 423 — — 1,181,693 Total 2,502,360 7,675 — — 2,510,035 As of December 31, 2020, the fair value of available-for-sale Measured at fair value on a non-recurring 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 the carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessment. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 13. SHARE-BASED COMPENSATION Share options During the years ended December 31, 2018 a nd The options will vest in accordance with the vesting schedules set out in the respective share option agreements with vesting period ranging from 0 to 10 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. The following assumptions were used. As of December 31, Grant date 2018 2019 2020 Risk-free interest rate 3.42%-3.78 % 3.20 % — Volatility 53.40%-56.20 % 54.60 % — Dividend yield — — — Exercise multiples 2.2 2.2-2.8 — Life of options (in years) 10 10 — Fair value of underlying ordinary shares 4.5-12.7 72.1 — 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. Volatilit y 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. Dividend yield The dividend yield was estimated by the Group based on its expected dividend policy over the expected term of the options. 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. Life of options Life of options is extracted from option agreements. Fair value of underlying ordinary shares Prior to the completion of initial public offering, 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. The fair value of the underlying ordinary shares is determined based on the closing market price of the share after the completion of initial public offering in June 2019. A summary of options activities during the year ended December 31, 2020 is presented below: Number Weighted Weighted Weighted Aggregate Options outstanding at January 1, 2020 8,473,127 0.01 23.96 8.62 1,934,139 Granted — — — Exercised 622,263 0.01 29.31 Options outstanding at December 31, 2020 7,850,864 0.01 23.53 7.61 3,973,335 Options vested and expected to vest as of December 31, 2020 7,850,864 0.01 23.53 7.61 3,973,335 Options exercisable as of December 31, 2020 749,377 0.01 7.17 6.65 379,261 The total fair value of options vested during the year ended December 31, 2019 and 2020 were RMB14,948 and RMB21,081, respectively. During the year ended December 31, 2020, the Company didn’t any As of December 31, 2020, there was RMB110,586 of unrecognized compensation expenses related to options expected to be recognized over a weighted average period of 7.61 years. Restricted Stock Units During year ended December 31, 2020, the Company granted 1,717,143 restricted stock units (“RSUs”) to employees at an exercise price of nil per share. The vesting period of these RSUs rang ed non-vested non-vested The Group recognized compensation expense over the requisite service period for each separately vesting portion of the award as if the award is in substance, multiple awards. The aggregate fair values of RSUs are measured at the fair value of the Company’s ordinary shares on the grant date which were RMB672,010 during the year ended December 31, 2020. The fair value of the Company’s ordinary shares is determined based on the closing market price of the shares after the completion of initial public offering in June 2019. As of December 31, 2020, there was RMB580,433 unrecognized compensation cost related to RSUs which is expected to be recognized over a weighted average vesting period of 3.24 years. The weighted average granted fair value of the RSUs granted during the year ended December 31, 2020 w as A summary of the RSUs activity during the year ended December 31, 2020 is presented below: RSUs Unvested balance at January 1, 2020 767,060 Granted 1,717,143 Vested 184,921 Unvested balance at December 31, 2020 2,299,282 The Group recognized RMB5,917, RMB60,237 and RMB238,446 of compensation expenses for all options and RSUs granted for the years ended December 31, 2018, 2019 and 2020, respectively. |
CONVERTIBLE REDEEMABLE PREFERRE
CONVERTIBLE REDEEMABLE PREFERRED SHARES | 12 Months Ended |
Dec. 31, 2020 | |
Temporary Equity Disclosure [Abstract] | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | 14. CONVERTIBLE REDEEMABLE PREFERRED SHARES In 2015, the Company issued Series A convertible redeemable preferred shares to a group of investors. Voting Rights The holders of Series A Preferred Shares and ordinary shares shall vote together based on their shareholding ratio. Dividends If the Board of Directors decides to pay dividends, the holders of the Series A Preferred Shares shall be entitled to receive dividends, out of any assets legally available therefor, prior and in preference to any declaration or payment of any dividend on the Ordinary Shares at the rate of 8% of the applicable preferred share issue price per annum on each Series A Preferred Shares, payable in U.S. dollars and annually when, as and if declared by the Board. Such distributions shall not be cumulative. Redemption At any time after the earlier of (i) termination of Mr. Larry Xiangdong Chen’s full-time empl o The redemption price shall be a return at a specified rate per annum single annually from the original issue date to the date on which the applicable redemption amount is paid in full. A specified rate might be (a) 20% if the redemption is initiated pursuant to Situation(i); (b) 10% if the redemption is initiated pursuant to Situation (ii); (c) 15% if the redemption is initiated pursuant to Situation (iii); (d) 12% if the Redemption is initiated pursuant to Situation (iv)-(vi), as applicable. There was no Liquidation In the event of liquidation, the holders of Series A Preferred Shares shall be entitled to receive, prior to the holders of ordinary shares, the relevant amount per Series A Preferred Share equal to (i) 150% of the applicable Series A Preferred Share issue price, plus (ii) an amount accruing thereon at a compound annual rate of 8% of the applicable Series A Preferred Share issue price, plus (iii) all declared but unpaid dividends thereon. In the event of insufficient funds available to pay in full the preference amount in respect of Series A Preferred Shares, the entire assets and funds of the Company legally available for distribution to the holders of Series A Preferred Shares shall be distributed on a pro rata basis among the holders of Series A Preferred Shares in proportion to issued price. Conversion Each Preferred Share shall automatically be converted into Ordinary Shares at the then applicable preferred share conversion price upon the closing of an underwritten public offering of the ordinary shares of the Company in the United States; or upon the prior written approval of the holders of at least two thirds of the Series A Preferred Shares. The conversion rate for Series A Preferred Shares shall be determined by dividing Series A Preferred Shares issue price by the conversion price then in effect at the date of the conversion. The initial conversion price will be the Series A Preferred Share issue price (i.e., a 1-to-1 initial conversion ratio), which will be subject to adjustments to reflect stock dividends, stock splits and other events. Modification of preferred shares In March 15, 2019, the Company and the Series A Preferred Share investors agreed to (i) extend the original redemption date of the Series A Preferred Shares from June 30, 2018 to June 30, 2020, (ii) removed the termination of the full-time employment relationship of any two of the founders of the Group prior to a Qualified Initial Public Offering (“QIPO”) as a redemption triggering event and (iii) changed the liquidation preference to include an automatic termination once a QIPO occurs. As this transaction represented a modification as opposed to an extinguishment of preferred shares, only an increase in fair value required accounting. The Company calculated the increase in fair value of the Series A Preferred Share at the modification date resulting from the changes described and concluded that the increase was insignificant. The change in the balance of Series A Preferred Shares included in mezzanine equity for the years ended December 31, 2018, 2019 and 2020 are as follows: Series A Preferred Shares RMB Balance as of January 1, 2018 427,130 Accretion of Series A Preferred Shares 38,930 Balance as of January 1, 2019 466,060 Accretion of Series A Preferred Shares 16,772 Conversion to ordinary shares (482,832 ) Balance as of December 31, 20 19 — The Group recognizes changes in the redemption val u paid-in paid-in paid-in Upon the completion of the initial public offering, all of the Company’s Series A Preferred Share were converted into 35,625,002 ordinary shares on an one-to-one |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
ORDINARY SHARES | 15. ORDINARY SHARES In June 2019, the Company completed its initial public offering and issued 20,532,000 ADSs (representing 13,688,000 Class A ordinary shares). The net proceeds raised from initial public offering and from exercising the over -allotment option by the underwriters were RMB1,366,860, net of issuance cost of RMB31,791. Upon the completion of the initial public offering, the ordinary shares of the Company are classified as Class A and Class B. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to ten votes and is convertible into one Class A ordinary share Upon the completion of initial public offering, 157,138,000 ordinary shares outstanding then were designated to 83,832,712 Class A ordinary shares and 73,305,288 Class B ordinary shares, respectively. In November 2019, the Company completed a registered follow-on Shares issued to employees upon exercising their stock options is net of the tax withholding requirements paid on behalf of the employees. During the year ended December 31, 2019, the Company withheld 418,298 ordinary shares to satisfy its employees’ tax obligations amounting to RMB86,739 ( US D In May 2020, the Company’s board of directors authorized a share repurchase program, under which the Company may repurchase up to US D worth of its shares. In May 2020, the Company repurchased 1,131,366 ADSs (representing 754,244 Class A ordinary shares ) RMB During the year ended December 31, 2020, 807,184 shares of treasury stock were reissued in connection with the exercise of options and the vesting of RSUs. In December 2020, the Company entered into a subscription agreement with certain investors (the “Purchasers”), pursuant to which the Company issued 10,611,072 Class A ordinary shares to the Purchasers in a private placement for an of RM B , representing the fair value of the s i 2,455,800 of C payment |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 16. 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 BaiJiaHuLian 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 2017 and during the first three months of 2018. From April 2018, BaiJiaHuLian HK is subject to an income tax rate of 8.25% for the first HKD2,000 of assessable profit and 16.5% for profit exceeding HKD2,000. No provision for Hong Kong profits tax was made as the Group had no estimated assessable profit that was subject to Hong Kong profits tax for the years ended December 31, 2019 and 2020. The Company’s subsidiary, the VIE and the VIE’s subsidiaries, which were entities incorporated in the PRC (the “PRC entities”), are subject to PRC Enterprise Income Tax (“EIT”) on their taxable income in accordance with the relevant PRC income tax laws, which have adopted a unified income tax rate of 25% since January 1, 2008 with the following exceptions. Beijing BaiJia qualified as a High and New Technology Enterprise from 2017 through 202 2 GaoTuYunJi qualified as a High and New Technology Enterprise during the year ended December 31, 2019 and accordingly was entitled to a 15% preferential tax rate from 2019 to 2021. Beijing Lexuebang also qualified as a High and New Technology Enterprise during the year ended December 31, 2019. Furthermore, Beijing Lexuebang obtained the Software Enterprise Certificate and % from 2021 to 2023. Wuhan Yuexuebang obtained the Software Enterprise Certificate and adopted exemption form EIT for the year 2020 and 2021, . The current and deferred components of the income tax expense appearing in the consolidated statement of operations were as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Current tax (expense) benefits — (16,441 ) 14,578 Deferred tax (expense) benefits (2,616 ) (516 ) 20,041 (2,616 ) (16,957 ) 34,619 The principle components of deferred tax assets were as follows: As of December 31, 2019 2020 RMB RMB Deferred tax assets Deductible temporary difference related to advertising expenses 51,607 458,991 Net operating loss carrying forwards 19,461 160,919 Tran sfer — 1,679 Accrued liabilities — 300 Total deferred tax assets 71,068 621,889 Less: valuation allowance (40,352 ) (573,565 ) Deferred tax assets net 30,716 48,324 The movements of valuation allowance for the years end December 31, 2018, 2019 and 2020 are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at beginning of the period 31,387 42,797 40,352 Acquisitions — — 4,987 Additions 11,410 36,138 529,915 Reversal — (38,583 ) (1,689 ) Balance at end of the period 42,797 40,352 573,565 The principle components of deferred tax liabilities were as follows: As of December 31, 2019 2020 RMB RMB Deferred tax liabilities Building and land use right — 72,447 Intangible assets 25 3,287 Deferred revenue — 2,750 Unrecognized gains of available-for-sale — 213 Total deferred tax liabilities 25 78,697 As of December 31, 2020, the Group had net operating loss carried forward of RMB 756,593 from the Company’s PRC entities, which will expire on various dates from December 31, 2021 to December 31, 2030. The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations was as follow: Year ended December 31, 2018 2019 2020 RMB RMB RMB Income (loss) before provision for income taxes and share of results of equity investees 21,397 242,239 (1,427,612 ) Income tax (expenses) benefits computed at an applicable tax rate (5,349 ) (60,560 ) 356,903 Effect of permanent differences (4,100 ) (11,010 ) 55,935 Effect of research and development super-deduction — 38,078 88,881 Effect of preferential tax rate 18,243 10,399 62,404 Effect on tax rates in different tax jurisdictions — 3,691 (1,278 ) Change in valuation allowance (11,410 ) 2,445 (528,226 ) (2,616 ) (16,957 ) 34,619 If Beijing BaiJia, GaoTuYunJi, Beijing Lexuebang and Wuhan Yuexuebang did not enjoy income tax preferential tax rates for the years ended December 31, 2018, 2019 and 2020, tax expense would have been increased by RMB18,243, RMB10,399 and RMB62,404, respectively. The decrease in basic net income per ordinary share was RMB0.20 and RMB0.08 for the years ended December 31, 2018 and 2019, and the increase in basic net loss per ordinary share was RMB0.39 for the year ended December 31, 2020. The decrease in diluted net income per ordinary share was RMB0.20 and RMB0.07 for the years ended December 31, 2018 and 2019, and the increase in diluted net loss per ordinary share was RMB0.39 for the year ended December 31, 2020. The Group did not identify significant unrecognized tax benefits for the year ended December 31, 2020. 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, 2020. Aggregate undistributed earnings of the Company’s PRC subsidiaries and the VIE that are available for reinvestment. Upon distribution of such earnings, the Company will be subject to the PRC EIT, the amount of which is impractical to estimate. The Company did not record any withholding tax on any of the aforementioned undistributed earnings because the relevant subsidiaries and the VIE do not intend to declare dividends and the Company intends to permanently reinvest it within the PRC. Additionally, no deferred tax liability was recorded for taxable temporary differences attributable to the undistributed earnings because the Company believes the undistributed earnings can be distributed from the VIE to Beijing Lexuebang in a manner that would not be subject to income tax. |
NET (LOSS) INCOME PER SHARE
NET (LOSS) INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
NET (LOSS) INCOME PER SHARE | 17. NET (LOSS) INCOME PER SHARE For the years ended December 31, 2018 and part of 2019, the Group has determined that its convertible redeemable participating preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted two-class The following table sets forth the computation of basic and diluted net (loss) income per share for the periods indicated: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Basic net (loss) income per share calculation Numerator: Net income (loss) 19,650 226,630 (1,392,930 ) Less: Accretion on Series A Preferred Shares redemption value 38,930 16,772 — Less: Undistributed earnings allocated to Series A Preferred Shares — 21,698 — Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares-basic (19,280 ) 188,160 (1,392,930 ) Denominator: Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares-basic 92,224,998 132,400,941 159,725,779 Net (loss) income per ordinary share attributable to ordinary shareholders-basic (0.21 ) 1.42 (8.72 ) Diluted net (loss) income per ordinary share calculation Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares-diluted Denominator: Weighted average ordinary shares basic outstanding 92,224,998 132,400,941 159,725,779 Effect of potentially diluted stock options — 6,998,647 — Effect of potentially diluted RSUs — 78,310 — Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares-diluted 92,224,998 139,477,898 159,725,779 Net (loss) income per ordinary share attributable to ordinary shareholders-diluted (0.21 ) 1.35 (8.72 ) Note: For the years ended December 31, 2018, 2019 and 2020, the following shares, share options or RSUs outstanding were excluded from the calculation of diluted net (loss) income per ordinary share, as their inclusion would have been anti-dilutive for the periods prescribed. For the year ended December 31, 2018 2019 2020 Shares issuable upon exercise of share options 21,892,243 — — Shares issuable upon conversion of Series A Preferred Shares 35,625,002 — — Shares issuable upon conversion of RSUs — 512,847 64,576 |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | 1 8 . 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 RMB35,738, RMB67,462 and RMB216,551 for the years ended December 31, 2018, 2019 and 2020, respectively. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | 19. RELATED PARTY TRANSACTION (1) Related parties Name of related parties Relationship with the Group Mr. Larry Xiangdong Chen CEO and Chairman of the board of Directors of the Company Beijing Youlian Global Education Technology Co., Ltd (“Beijing Youlian”) (1) Equity method investment investee (1) Beijing Youlian was dissolved in June (2) The significant balances and transactions between the Group and its related parties were as follows: (a) Balance December 31, 2019 2020 RMB RMB Amounts due to: Mr. Larry Xiangdong Chen 460 — Total 460 — The balances with related parties were interest-free, unsecured and repayable on demand. (b) Transaction Other than as disclosed elsewhere in these consolidated financial statements, the Group had the following significant related party transactions: Revenue For the year ended December 31, 2018 2019 2020 RMB RMB RMB Beijing Youlian (1) 4,670 566 — Total 4,670 566 — Expense For the year ended December 31, 2018 2019 2020 RMB RMB RMB Beijing Youlian (2) 2,052 3,569 1,457 Total 2,052 3,569 1,457 (1) The Group recognized revenue from providing technical service. (2) The Group recognized expense from receiving advertising service provided by Beijing Youlian. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASE | 20. LEASE Operating leases The Group’s leases consist of operating leases for administrative office spaces in different cities in the PRC. The Group determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease non-lease Total operating lease expenses for the year ended December 31, 2019 and 2020 was RMB53,165 and RMB155,287, and was recorded in cost of revenues, selling expenses, research and development expenses and general and administrative expense on the consolidated statements of operations. For the year ended December 31, 2019 2020 RMB RMB Cash paid for amounts included in the measurement of lease Operating cash flows from operating leases 64,630 141,942 Non-cash right-of-use Operating leases 231,146 647,029 Weighted average remaining lease term Operating leases 4.4 4.6 Weighted average discount rate Operating leases 5.0 % 6.6 % The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended December 31: RMB Year ending December 31, 2021 206,362 2022 217,978 2023 194,381 2024 178,226 2025 99,170 2026 and thereafter 36,950 Less: imputed interest (136,302 ) Total 796,765 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 year s |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES Capital commitment The Group had outstanding capital commitments mainly relating to capital expenditures of office space construction and leasehold improvement. As of December 31, 2020, the payment due within one year was RMB67,585 and the payment due thereafter amounted to RMB34,432. Contingencies From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group has not recorded any material liabilities in this regard as of December 31, 2019 and 2020. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 22. SEGMENT INFORMATION Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. The Group’s CODM has been identified as the CEO. The Group is currently engaged in providing integrated online tutoring services. The CODM reviews consolidated results including revenue, grow profit and operating profit at a consolidated level only and does not distinguish between services for the purpose of making decisions about resources allocation and performance assessment. As such, the Group concluded that it has one operating segment and one reporting segment. The Group operates solely in the PRC and all of the Group’s long-lived assets are located in the PRC. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | 2 3 RESTRICTED NET ASSETS Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiaries 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 subsidiaries. In accordance with the Regulations on Enterprises with Foreign Investment of China and their articles of association, a foreign invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts, which is included in retained earnings accounts in equity section of the consolidated balance sheets. A wholly-owned foreign invested enterprise is required to allocate at least 10% of its annual after-tax Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide statutory common reserve at least 10% of its annual after-tax 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 paid-in |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 accordance with the rules and regulations of the Security and Exchange Commission and 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, revenue recognition, valuation allowance for deferred tax assets, useful lives of property, equipment and software, impairment assessment of long-lived assets, fair value assessment of available-for-sale |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements include the financial information of the Group and its subsidiaries, the VIE and the VIE’s subsidiaries. All intercompany balances and transactions were eliminated upon consolidation. |
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 tran s 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. |
Foreign currency translation and transactions | Foreign currency translation and transactions The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the subsidiaries incorporated outside the mainland China is United States dollar (“US dollar” or “US$”). The functional currency of all the other subsidiaries, the VIEs and VIEs’ subsidiaries is RMB. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Revenues and expenses are translated using the average rate of exchange in effect during the reporting period. Translation adjustments are reported and shown as a separate component of other comprehensive loss in the consolidated statements of changes in shareholders’ deficit and the consolidated statements of comprehensive loss. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Transaction gains and losses are recorded in the consolidated statements of operations. |
Financial instruments | Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, short-term investments, long-term investments accounted for available-for-sale debt investments, receivables from third party payment platform, amounts due to related parties and other liabilities. As of December 31, 2019 and 2020, the carrying values of cash and cash equivalents, held-to Available-for-sales |
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 US dollars 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 income (loss), change in shareholders’ (deficit) equity and cash flows from Renminbi (“RMB”) into US dollars as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.5250 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2020. 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, 2020, 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. |
Debt securities investments | Debt securities investments As of December 31, 2019 and 2020, the Group’s debt securities include held-to-maturity available-for-sale Held-to-maturity investments Investments are classified as held-to-maturity held-to-maturity RMB and RMB as of December 31, 2019 and 2020, respectively and were recorded as short-term investments as their maturities are less than twelve months. The Group reviews its investments in held-to-maturity investments for impairment periodically, recognizing an allowance, if any, by applying an estimate loss rate. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its investments in held-to-maturity investments. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the held-to-maturity investments. The allowance for credit losses was nil for the year ended December 31, 2020. Available-for-sale investments Debt securities investments that do not meet the criteria of held-to-maturity available-for-sale (loss) available-for-sale available-for-sale The Group evaluates each individual investment periodically for impairment. For investments where the Group does not intend to sell, the Company evaluates whether a decline in fair value is due to deterioration in credit risk. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit losses on the consolidated balance sheet with corresponding adjustment in the consolidated statements of operations and comprehensive income. Subsequent increases in fair value due to credit improvement are recognized through reversal of the credit loss and corresponding reduction in the allowance for credit loss. Any decline in fair value that is non-credit related is recorded in accumulated other comprehensive income as a component of shareholder’s equity. |
Property, equipment and software, net | Property, equipment and software, net Property, equipment and software 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 Electronic equipment 3 years Furniture and office equipment 5 years Software 2-10 years Building 37 years Leasehold improvement Shorter of the lease term or estimated economic life Construction in progress is stated at cost, which includes the cost of construction and other directly attributable costs. No provision for depreciation is made on construction in progress until the relevant assets are completed and ready for their intended use. Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, equipment and software 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 . |
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, 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. |
Land use rights | Land use rights All land in the PRC is owned by the PRC government, which, according to the relevant PRC law, may grant the right to use the land for a specified period of time. Land use rights are recorded at cost and amortized on a straight line basis over the term of the land certificates. |
Goodwill | Goodwill The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheets as goodwill. Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired. As part of the annual goodwill impairment test, the Group first performs a qualitative assessment to determine whether further impairment testing is necessary. If the qualitative assessment above indicates that it is more likely than not that the fair value of the indefinite-lived intangible asset or the reporting unit (for goodwill) is less than its carrying value, a quantitative impairment test is performed to compare the fair value to the carrying value. An impairment charge is recorded if the carrying value exceeds the fair value. The Group did not record any impairment losses on its goodwill during the years ended December 31, 2018, 2019 and 2020. |
Intangible assets | Intangible assets Intangible assets are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives. The estimated useful lives of intangible assets are as follows: Category Estimated useful life Student base 1.5-2 years Trademark 3-10 years |
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, 20 18, |
Equity method investments | Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in common shares or in-substance . O Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into earnings and accordingly adjusts the carrying amount of the investment. The Group reviews its equity method investments for impairment whenever an event or circumstance indicates that any other-than-temporary impairment has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investment. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Group did not record any impairment losses on its equity method investments for the years ended December 31, 2018, 2019 and 2020. |
Revenue recognition | Revenue recognition The Group recognizes revenue to depict the transfer of promised 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, in accordance with ASC Topic 606 Revenue from Contracts with Customers (“Topic 606”). The Group’s revenue is reported net of discount, value added tax and related surcharges. Disaggregation of revenue For the years ended December 31, 2018, 2019 and 2020, all of the Group’s revenues were generated in the PRC. Additionally, all of the revenues for the periods were recognized from contracts with customers. The following table provides information about disaggregated revenue by types, including a reconciliation of the disaggregated revenue with the Group’s reportable segment. Year ended December 31, 2018 2019 2020 RMB RMB RMB Online tutoring services 362,622 2,084,803 7,109,255 - K-12 courses 290,890 1,706,538 6,237,399 - Foreign language, professional and admission courses 71,732 378,265 871,856 Other services 34,684 30,052 15,489 Total net revenues 397,306 2,114,855 7,124,744 The primary sources of the Group’s revenues are as follows: (1) Online tutoring services The Group offers various types of integrated online tutoring services covering a wide spectrum of topics and targets students from broad age groups through its diverse offerings of K-12 Once the live interactive tutoring services is complete, the Group also offers the customer a content playback service. In the content playback service, the customer has unlimited access to online pre-recorded Tutoring fees are collected in advance. The Group determines that there is not a significant financing component based on the nature of the service being offered and the purpose of the payment terms. The Group charges a single upfront amount, not with the primary purpose of obtaining financing from the students but, instead, to maximize profitability, taking into consideration the risks associated with providing the service. The Group 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, and allocates the tutoring fee excluding the estimate for refund liability to each performance obligation using the relative stand-alone selling price. The Group determines the stand-alone selling prices using an expected cost plus margin methodology. Revenue related to the live interactive tutoring service is recognized proportionately as the online classes are delivered, as the Group concluded that the delivery of each online class represents a faithful depiction of when the services are provided to the students. Revenue related to the right to access the content playback is recognized proportionally over the playback period, as the Group concluded that the content playback service represents a stand ready obligation to provide the playback services and the customer simultaneously receives and consumes the benefits as the Group provides such services throughout the playback period. In some promotion activities, the Group grants sales incentives, including cash coupon and free class, to students who make qualified course purchases. Those students can redeem the cash coupon in the next purchase as part of payment, or select to enroll in a new course free of charge, prior to the incentive’s expiration. The cash coupon and free class will expire in no more than eight months. The Group determined the cash coupon and/or free course granted to existing students are material rights. As a result, a portion of sales price received on students making qualified purchases is allocated to the sales incentives granted based on the relative standalone selling prices. The selling price of cash coupon is estimated based on the discount amount and the probability of redemption. Revenue allocated to sales incentives is recorded as deferred revenue until redemption or expiration. Once the coupon or free class is redeemed, revenue will be recognized based on the revenue recognition policy discussed above. Students may not always redeem the cash coupon or take the free class offered before the expiration of the sales incentive. Therefore, the Group expects to be entitled to a breakage amount in deferred revenue related to the incentives. The Group estimates the breakage based on historical students’ usage and recognizes the estimated breakage as revenue in proportion to the pattern of incentives exercised by students. The assessment of estimating breakage is updated on a quarterly basis. Changes in estimated breakage is accounted for by adjusting deferred revenue to reflect the remaining incentive rights expected to be exercised. (2) Other services Other service revenues are primarily derived from 1) membership-based service and 2) offline business consulting courses. The Group provided membership-based services before the end of the first quarter of 2019, which consisted of providing a platform connecting training institutions or individual teachers and students. Training institutions or individual teachers who paid the membership fees were able to join the Group’s online platform and market their courses to prospective students. Membership fees were primarily fixed and no contractual membership fee refunds were provided to the training institutions or individual teachers. The membership services mainly provided training institutions or individual teachers with display of an online storefront on the Group’s platforms and access to online account management system, which were accounted for as a single performance obligation as the membership services were highly integrated. These service fees were paid in advance for a specific contracted service period and the revenues were recognized proportionally over the service period, typically 12 months, as the Group concluded that the membership service represented a stand ready obligation to provide the services while the member simultaneously receives and consumes the benefits of such services throughout the contract period. The Group also offers offline business consulting courses targeting principals and other officers of private education institutions who want to improve their management skills. No contractual service fee refund is provided to the course participants. Course fees are collected in advance and the revenues, net of any discounts, are recognized proportionally over the service period, which is generally less than a year, as the classes are generally delivered evenly through the course period. Contract balances Contract cost Incremental costs of obtaining a contract with a customer is recognized as an asset in “Prepaid expenses and other current assets” if the Group expects to recover those costs. Incremental costs of obtaining a contract mainly include sales commissions to sales personnel and third-party agents which the Group started in July 2019. Contract cost assets are amortised over the estimated customer life. There was no impairment of contract cost assets recognized during the year end e As of December 31, 2019 and 2020, the balance of contract cost was RMB64,805 and RMB77,668. For the years ended December 31, 2018, 2019 and 2020, the Group recognized amortization of RMBnil, RMB156,710 and RMB185,787 as “Selling expenses” in its consolidated statement of operations. Contract and refund liabilities The following table provides information about the Group’s contract liabilities and refund liability arising from contract with customers. The increase in contract liabilities primarily resulted from the Group’s business growth. Year ended December 31, 2019 2020 RMB RMB Deferred revenue, current 1,331,962 2,724,614 Deferred revenue, non-current 5,674 9,125 1,337,636 2,733,739 Refund liability 54,567 120,709 Deferred revenue primarily consists of tuition 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 are met. Revenue recognized during the years ended December 31, 2019 and 2020 that was included in the deferred revenue balance at January 1, 2019 and January 1, 2020 amounted to RMB259,384 and RMB1,297,088, respectively. Refund liability represents the tutoring fee collected by the Group which it expects to refund back to its customer as a result of its refund policy. Refund liability is estimated based on the historical refund ratio for each of the type of classes provided. The Group’s remaining performance obligations represents the amount of the transaction price for which service has not been performed. As of December 31, 2020, the aggregate amount of the transaction price allocated for the remaining performance obligations amounted to RMB2,733,739. The Group expects to recognize revenue of RMB2,724,614 and RMB6,708 related the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder of RMB2,417 recognized thereafter. |
Cost of revenues | Cost of revenues Cost of revenues mainly consists of salaries to instructors and tutors, rental expenses for office space, depreciation and amortization of properties and equipment, teaching materials and bandwidth costs. The instructors consist of both full-time instructors and part-time instructors. Full-time instructors’ compensation primarily consists of base salary, as well as teaching fees based on hourly rates and attendance of students in connection with courses delivered. The compensation of part-time instructors is calculated as a fixed percentage of the tuition fees of the courses delivered by the instructors, and is accrued as courses are delivered. The compensation of tutors consists of base salary and performance-based compensations, which is determined based on student retention and exercise completion. Specifically, if an existing student of a tutor enrolls in a new course, a bonus is paid to the tutor which is calculated as a percentage of the tuition of the new course. Tutors also receive a fixed payment for each exercise marking performed. The Group accrues on a monthly basis for the cost of tutor which includes basic salary, compensation for exercise marking as well as student retention bonus. The retention bonus is estimated using the expected tuition collected for the retention courses, multiplied by the estimated retention rate and the bonus percentage. |
Government subsidies | Government subsidies The government subsidies provided by the local government mainly included funding to support the development of the Group. Government subsidies are recognized upon receipt as government subsidies income because the subsidies are not intended to compensate for specific expenditure and not subject to future return. For the years ended December 31, 2018, 2019 and 2020, RMB400, RMB310 and RMB6,941 were received and recognized as other income in the Group’s consolidated statements of operations, respectively. |
Value added taxes | Value added taxes The Group’s educational services and non-educational services are subject to VAT at the rate of 3% for small-scale-VAT-payer general-VAT-payer Since January 2020, in accordance with Cai Shui [2020] No.8, due to the Novel coronavirus (“COVID-19”) pandemic, the VAT on certain services was temporarily exempted for the value added tax exemption was recognized as other income in the Group’s consolidated statement of operations. |
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 more-likely-than-not |
Share-based compensation | 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 income (loss) | Comprehensive income (loss) Comprehensive income (loss) includes net income (loss), foreign currency translation adjustments and the unrealized gains and losses on available-for-sale |
Leases | Leases The Group adopted Topic 842 on January 1, 2019 using the modified retrospective transition approach allowed under ASU 2018-11, without adjusting the comparative periods presented. Upon adoption of Topic 842, the Group recognized right-of-use assets and corresponding lease liabilities on the consolidated balance sheet. The difference between the right-of-use assets and lease liabilities was due to prepaid rent. The Group leases administrative office spaces in different cities in the PRC under operating leases. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use s right-of-use For short-term leases, the Group records operating lease expense in its consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. |
Net (loss) income per share | Net (loss) income per share Basic (loss) income per ordinary share is computed by dividing net (loss) income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The Group has determined that its convertible redeemable preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted two-class Diluted (loss) income per ordinary share reflect the potential dilution that would occur if securities were exercised or converted into ordinary shares. The Group had convertible redeemable participating preferred shares and share options, which could potentially dilute basic income per share in the future. To calculate the number of shares for diluted income per ordinary shares, the effect of the convertible redeemable participating preferred shares is computed using the as-if-converted |
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 denominated in RMB amounted to RMB11,677 and RMB151,009 as of December 31, 2019 and 2020, respectively. Concentration risks Financial instruments that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, short-term investments and receivables from third party payment platform. As of December 31, 2019 and 2020, substantially all of the Group’s cash and cash equivalents and short-term investments were deposited in financial institutions located in the PRC. There are no revenues from customers which individually represent greater than 10% of the total net revenues for the years ended December 31, 2018, 2019 and 2020. |
Reclassification | Reclassification Certain prior period amount recorded in prepaid expenses and other current assets have been reclassified to inventory to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit. |
Newly adopted accounting pronouncements | Newly adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13, 2016-13 2019-04, 2019-04 2016-13, 2019-04 2016-13 2019-04 2016-13 . The Group adopted ASU 2016-13 on January 1, 2020 using the modified retrospective transition approach, without adjusting the comparative periods presented. The adoption of Topic 326 did not have a material impact on the Group’s consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, 2018-17 The Group adopted ASU 2018-17 on January 1, 2020 using a retrospective approach. The adoption of this guidance did not have a material impact on the Group’s consolidated financial statements. 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 adopted this update on January 1, 2020 prospectively. The adoption of this guidance did not have a material impact on the consolidated financial statements. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of subsidiaries, VIE and VIE's subsidiaries | The Company’s subsidiaries, VIE and VIE’s major subsidiaries as of December 31, 2020 were as follow: Name Later of date Place of establishment Percentage of Principal activities Subsidiaries: BaiJiaHuLian HK Aug 18, 2014 HongKong, China 100% Holding company Beijing Lexuebang Jan 12, 2015 Beijing, China 100% Education technical services Wuhan Yuexuebang Network Technology Co., Ltd May 25, 2020 Wuhan, China 100% Education technical services Beijing Yuexuebang Network Technology Co., Ltd (“Beijing Yuexuebang”) Nov 24, 2020 Beijing, China 100% Education technical services VIE: Beijing BaiJia Jun 4, 2014 Beijing, China 100% Education services VIE’s major subsidiaries: Beijing Genshuixue Technology Co., Ltd. (“Beijing Genshuixue”) May 14, 2015 Beijing, China 100% Education services Beijing GaoTuYunJi Education Technology Co., Ltd. GaoTuYunJi Jul 18, 2017 Beijing, China 100% Education services Shandong Genshuixue Internet Technology Co., Ltd. (“Shandong Genshuixue”) Jan 17, 2020 Jinan, China 100% Education services Zhengzhou GaoTuYunJi Education Technology Co., Jan 19, 2020 Zhengzhou, China 100% Education services Xi’an GaoTuYunJi Education Technology Co., Ltd. (“Xi’anGaoTu”) Mar 24, 2020 Xi’an, China 100% Education services Wuhan GaoTuYunJi Education Technology Co., Ltd. (“WuhanGaoTu”) Apr 1, 2020 Wuhan, China 100% Education services |
Summary of financial information of VIE and VIE's subsidiaries after elimination of inter-company transactions and balances | The following financial information of the Company’s VIE and VIE’s subsidiaries after the elimination of inter-company transactions and balances as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 was included in the accompanying consolidated financial statements: As of December 31 2019 2020 RMB RMB Cash and cash equivalents 9,763 20,701 Short-term investments 1,191,664 1,347,750 Prepaid expenses and other current assets 195,448 605,287 Inventory 8,822 48,074 Total current assets 1,405,697 2,021,812 Property, equipment and software, net 76,955 658,592 Intangible assets 100 13,219 Land use right — 28,983 Long-term investments 143,800 5,356 Deferred tax assets 30,716 48,324 Operating lease right-of-use 264,909 660,407 Others 19,692 91,644 Total non-current 536,172 1,506,525 Total assets 1,941,869 3,528,337 Accrued expenses and other current liabilities 188,975 623,002 Deferred revenue, current portion 1,331,962 2,724,614 Current portion of operating lease liabilities 59,982 125,986 Income tax payable 16,093 4,654 Amounts due to related parties 460 — Total current liabilities 1,597,472 3,478,256 Deferred revenue, non-current 5,674 9,125 Deferred tax liabilities 25 78,697 Non-current portion of operating lease liabilitie s 194,228 527,692 Other payables — 26,580 Total non-current 199,927 642,094 Total liabilities 1,797,399 4,120,350 For the year ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues 397,306 2,114,855 7,124,744 Net income 66,934 211,799 2,406,144 Net cash generated from operating activities 239,307 1,238,366 3,945,706 Net cash used in investing activities (195,193 ) (1,172,967 ) (305,448 ) Net cash used in financing activities (31,040 ) (87,239 ) (132,644 ) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of property, equipment and software estimated useful lives | Property, equipment and software 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 Electronic equipment 3 years Furniture and office equipment 5 years Software 2-10 years Building 37 years Leasehold improvement Shorter of the lease term or estimated economic life |
Summary of amortization periods by intangible asset classes | The estimated useful lives of intangible assets are as follows: Category Estimated useful life Student base 1.5-2 years Trademark 3-10 years |
Summary of disaggregated revenue by types | For the years ended December 31, 2018, 2019 and 2020, all of the Group’s revenues were generated in the PRC. Additionally, all of the revenues for the periods were recognized from contracts with customers. The following table provides information about disaggregated revenue by types, including a reconciliation of the disaggregated revenue with the Group’s reportable segment. Year ended December 31, 2018 2019 2020 RMB RMB RMB Online tutoring services 362,622 2,084,803 7,109,255 - K-12 courses 290,890 1,706,538 6,237,399 - Foreign language, professional and admission courses 71,732 378,265 871,856 Other services 34,684 30,052 15,489 Total net revenues 397,306 2,114,855 7,124,744 |
Summary of contract liabilities arising from contract with customers | The following table provides information about the Group’s contract liabilities and refund liability arising from contract with customers. The increase in contract liabilities primarily resulted from the Group’s business growth. Year ended December 31, 2019 2020 RMB RMB Deferred revenue, current 1,331,962 2,724,614 Deferred revenue, non-current 5,674 9,125 1,337,636 2,733,739 Refund liability 54,567 120,709 |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of purchase price allocation | The purchase price was allocated on the date of acquisition as below: 2020 Amortization period RMB Other current assets 123 Intangible assets : Trademark 1,300 3 years Student base 12,400 2 years Goodwill 43,300 Deferred revenue (11,700 ) Other current liabilities (457 ) Deferred tax liabilities (7,567 ) 37,399 |
Summary of unaudited pro forma results of operations | The following summarized unaudited pro forma results of operations for the years ended December 31, 2019 and December 31, 2020 assuming that the acquisition during the year ended December 31, 2020 occurred as of January 1, 2019. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of January 1, 2019, nor is it indicative of future operating results. For the years ended December 31, 2019 2020 RMB RMB (Unaudited) (Unaudited) Pro forma net revenues 2,127,834 7,231,144 Pro forma net income (loss) 177,761 (1,477,022 ) |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Summary of prepaid expenses and other current assets | Prepaid expenses and other current assets consisted of the following: As of December 31 2019 2020 RMB RMB Prepaid VAT and income tax (1) — 312,003 Prepaid other service fees (2) 112,939 264,877 Contract cost (3) 64,805 77,668 Receivables from broker (4) 43,993 47,634 Receivables from third party payment platform (5) 26,570 11,596 Staff advance 3,809 5,813 Others 544 3,091 252,660 722,682 (1) Prepaid VAT and income tax consist of (a) VAT input that is expected to offset with VAT output tax or to be transferred out and (b) the prepayment of income tax. (2) Prepaid other service fees consist of prepayment of advertising fees and cloud server hosting fees. The prepayments of advertising fees and cloud server hosting fees are generally short-term in nature and are amortized over the related service period. (3) Contract cost mainly includes sales commissions to sales personnel and third-party agents which the Group started in July 2019 as described in Note 2. (4) Amount represents receivable from broker related to employee’s stock option exercises in connection with employees’ tax obligations. In 2019 and 2020, certain employees exercised their stock options for which the Company paid the relevant employee’s tax obligations on their behalf to the appropriate taxing authorities. To settle the employees’ obligations with the Company, the Company’s broker withheld some of the employees’ shares and subsequently sold them in the open market at fair value. The receivable represents the cash to be received from the broker related to the above transaction. (5) Receivables from third party payment platform consist of cash that has been received from course participants but held by the third-party payment platform. The Group subsequently collected the full balance from the third-party payment platform. |
PROPERTY, EQUIPMENT AND SOFTW_2
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, equipment and software | As of December 31, 2019 2020 RMB RMB Electronic equipment 60,778 214,235 Building — 189,965 Leasehold improvement 21,851 80,705 Furniture and office equipment 6,632 21,180 Software 2,043 7,183 Construction in progress 15,130 268,515 106,434 781,783 Less: Accumulated depreciation (24,574 ) (77,445 ) 81,860 704,338 |
LAND USE RIGHTS (Tables)
LAND USE RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Land Use Rights Disclosure [Abstract] | |
Summary of Land Use Rights | Land use rights consisted of the following: As of December 31, 2019 2020 RMB RMB Land use rights — 29,788 Less: Accumulated amortization — (805 ) — 28,983 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Investments [Abstract] | |
Summary of long-term investments | As of December 31, 2019 2020 RMB RMB Equity method investments (1) 6,593 5,356 Available-for-sale debt investments (2) 1,181,693 525,373 1,188,286 530,729 (1) The Group holds less than 40% equity interests in several third-party private companies through investments in their of s (2) Long-term available-for-sale described |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2020 were presented as follow: As of December 31, 2019 2020 RMB RMB Beginning balance 331 331 Addition (1) — 43,300 Accumulated impairment loss — — Goodwill, net 331 43,631 (1) Represent the goodwill in the acquisition of Tianjin Puxin in December 2020, which was described as Note 3. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | The intangible assets consisted of the following: As of December 31, 2019 2020 RMB RMB Student base 110 12,510 Trademark 300 1,675 Total 410 14,185 Less: Accumulated amortization (310 ) (966 ) 100 13,219 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Summary of accrued expenses and other current liabilities | The components of accrued expenses and other current liabilities were as follows: As of December 31, 2019 2020 RMB RMB Salary and welfare payable 127,032 507,867 Accrued marketing expense — 366,426 Refund liability (1) 54,567 120,709 Other accrued expense 26,163 118,002 Payable for investments and acquisitions — 102,606 Other tax payable 10,700 93,902 Others 6,869 4,441 Payable to third-parties 3,422 1,549 228,753 1,315,502 (1) Refund liability represents the estimated amounts of service fee received that is estimated to be refunded as described in Note 2. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of assets measured at fair value on a recurring basis | As of December 31, 2019 and 2020, available-for-sale Fair value measurement as of December 31, 2020 Quoted prices Significant Significant Total (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Short-term investments: Available-for-sale - Wealth management products 104,259 6,623,234 — 6,727,493 Long-term investments: Available-for-sale - Wealth management products — 525,373 — 525,373 Total 104,259 7,148,607 — 7,252,866 Fair value measurement as of December 31, 2019 Quoted prices Significant Significant Total (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Short-term investments: Available-for-sale - Wealth management products — 1,328,342 — 1,328,342 Long-term investments: Available-for-sale - Wealth management products — 1,181,693 — 1,181,693 Total — 2,510,035 — 2,510,035 |
Summary of available-for-sale investments | A summary of available-for-sale As of December 31, 2020 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale - Wealth management products 6,726,150 1,343 — — 6,727,493 Long-term investments: Available-for-sale - Wealth management products 522,000 3,373 — — 525,373 Total 7,248,150 4,716 — — 7,252,866 As of December 31, 2019 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale - Wealth management products 1,321,090 7,252 — — 1,328,342 Long-term investments: Available-for-sale - Wealth management products 1,181,270 423 — — 1,181,693 Total 2,502,360 7,675 — — 2,510,035 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of assumptions used to determine estimated fair value of options | The following assumptions were used. As of December 31, Grant date 2018 2019 2020 Risk-free interest rate 3.42%-3.78 % 3.20 % — Volatility 53.40%-56.20 % 54.60 % — Dividend yield — — — Exercise multiples 2.2 2.2-2.8 — Life of options (in years) 10 10 — Fair value of underlying ordinary shares 4.5-12.7 72.1 — |
Summary of options activities | A summary of options activities during the year ended December 31, 2020 is presented below: Number Weighted Weighted Weighted Aggregate Options outstanding at January 1, 2020 8,473,127 0.01 23.96 8.62 1,934,139 Granted — — — Exercised 622,263 0.01 29.31 Options outstanding at December 31, 2020 7,850,864 0.01 23.53 7.61 3,973,335 Options vested and expected to vest as of December 31, 2020 7,850,864 0.01 23.53 7.61 3,973,335 Options exercisable as of December 31, 2020 749,377 0.01 7.17 6.65 379,261 |
Summary of the RSUs activity | A summary of the RSUs activity during the year ended December 31, 2020 is presented below: RSUs Unvested balance at January 1, 2020 767,060 Granted 1,717,143 Vested 184,921 Unvested balance at December 31, 2020 2,299,282 |
CONVERTIBLE REDEEMABLE PREFER_2
CONVERTIBLE REDEEMABLE PREFERRED SHARES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Series A redeemable convertible preferred stock | |
Redeemable Noncontrolling Interest [Line Items] | |
Summary of change in balance of Series A Preferred Shares included in mezzanine equity | The change in the balance of Series A Preferred Shares included in mezzanine equity for the years ended December 31, 2018, 2019 and 2020 are as follows: Series A Preferred Shares RMB Balance as of January 1, 2018 427,130 Accretion of Series A Preferred Shares 38,930 Balance as of January 1, 2019 466,060 Accretion of Series A Preferred Shares 16,772 Conversion to ordinary shares (482,832 ) Balance as of December 31, 20 19 — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of current and deferred components of the income tax expense | Year ended December 31, 2018 2019 2020 RMB RMB RMB Current tax (expense) benefits — (16,441 ) 14,578 Deferred tax (expense) benefits (2,616 ) (516 ) 20,041 (2,616 ) (16,957 ) 34,619 |
Summary of principle components of deferred tax assets and deferred taxes liability | The principle components of deferred tax assets were as follows: As of December 31, 2019 2020 RMB RMB Deferred tax assets Deductible temporary difference related to advertising expenses 51,607 458,991 Net operating loss carrying forwards 19,461 160,919 Tran sfer — 1,679 Accrued liabilities — 300 Total deferred tax assets 71,068 621,889 Less: valuation allowance (40,352 ) (573,565 ) Deferred tax assets net 30,716 48,324 The principle components of deferred tax liabilities were as follows: As of December 31, 2019 2020 RMB RMB Deferred tax liabilities Building and land use right — 72,447 Intangible assets 25 3,287 Deferred revenue — 2,750 Unrecognized gains of available-for-sale — 213 Total deferred tax liabilities 25 78,697 |
Sumamry of 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: Year ended December 31, 2018 2019 2020 RMB RMB RMB Income (loss) before provision for income taxes and share of results of equity investees 21,397 242,239 (1,427,612 ) Income tax (expenses) benefits computed at an applicable tax rate (5,349 ) (60,560 ) 356,903 Effect of permanent differences (4,100 ) (11,010 ) 55,935 Effect of research and development super-deduction — 38,078 88,881 Effect of preferential tax rate 18,243 10,399 62,404 Effect on tax rates in different tax jurisdictions — 3,691 (1,278 ) Change in valuation allowance (11,410 ) 2,445 (528,226 ) (2,616 ) (16,957 ) 34,619 |
Summary of movements of valuation allowance | The movements of valuation allowance for the years end December 31, 2018, 2019 and 2020 are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at beginning of the period 31,387 42,797 40,352 Acquisitions — — 4,987 Additions 11,410 36,138 529,915 Reversal — (38,583 ) (1,689 ) Balance at end of the period 42,797 40,352 573,565 |
NET (LOSS) INCOME PER SHARE (Ta
NET (LOSS) INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of computation of basic and diluted net loss per share | The following table sets forth the computation of basic and diluted net (loss) income per share for the periods indicated: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Basic net (loss) income per share calculation Numerator: Net income (loss) 19,650 226,630 (1,392,930 ) Less: Accretion on Series A Preferred Shares redemption value 38,930 16,772 — Less: Undistributed earnings allocated to Series A Preferred Shares — 21,698 — Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares-basic (19,280 ) 188,160 (1,392,930 ) Denominator: Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares-basic 92,224,998 132,400,941 159,725,779 Net (loss) income per ordinary share attributable to ordinary shareholders-basic (0.21 ) 1.42 (8.72 ) Diluted net (loss) income per ordinary share calculation Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares-diluted Denominator: Weighted average ordinary shares basic outstanding 92,224,998 132,400,941 159,725,779 Effect of potentially diluted stock options — 6,998,647 — Effect of potentially diluted RSUs — 78,310 — Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares-diluted 92,224,998 139,477,898 159,725,779 Net (loss) income per ordinary share attributable to ordinary shareholders-diluted (0.21 ) 1.35 (8.72 ) Note: For the years ended December 31, 2018, 2019 and 2020, the following shares, share options or RSUs outstanding were excluded from the calculation of diluted net (loss) income per ordinary share, as their inclusion would have been anti-dilutive for the periods prescribed. For the year ended December 31, 2018 2019 2020 Shares issuable upon exercise of share options 21,892,243 — — Shares issuable upon conversion of Series A Preferred Shares 35,625,002 — — Shares issuable upon conversion of RSUs — 512,847 64,576 |
RELATED PARTY TRANSACTION (Tabl
RELATED PARTY TRANSACTION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related parties | (1) Related parties Name of related parties Relationship with the Group Mr. Larry Xiangdong Chen CEO and Chairman of the board of Directors of the Company Beijing Youlian Global Education Technology Co., Ltd (“Beijing Youlian”) (1) Equity method investment investee (1) Beijing Youlian was dissolved in June |
Summary of significant balances and transactions | (2) The significant balances and transactions between the Group and its related parties were as follows: (a) Balance December 31, 2019 2020 RMB RMB Amounts due to: Mr. Larry Xiangdong Chen 460 — Total 460 — (b) Transaction Other than as disclosed elsewhere in these consolidated financial statements, the Group had the following significant related party transactions: Revenue For the year ended December 31, 2018 2019 2020 RMB RMB RMB Beijing Youlian (1) 4,670 566 — Total 4,670 566 — Expense For the year ended December 31, 2018 2019 2020 RMB RMB RMB Beijing Youlian (2) 2,052 3,569 1,457 Total 2,052 3,569 1,457 (1) The Group recognized revenue from providing technical service. (2) The Group recognized expense from receiving advertising service provided by Beijing Youlian. |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of supplementary information related to operating leases | For the year ended December 31, 2019 2020 RMB RMB Cash paid for amounts included in the measurement of lease Operating cash flows from operating leases 64,630 141,942 Non-cash right-of-use Operating leases 231,146 647,029 Weighted average remaining lease term Operating leases 4.4 4.6 Weighted average discount rate Operating leases 5.0 % 6.6 % |
Future minimum payments under non-cancelable operating leases | The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended December 31: RMB Year ending December 31, 2021 206,362 2022 217,978 2023 194,381 2024 178,226 2025 99,170 2026 and thereafter 36,950 Less: imputed interest (136,302 ) Total 796,765 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018 | Dec. 31, 2020USD ($) | |
Allowable assets to disposed without prior written consent | ¥ 10,685,792 | ¥ 3,394,532 | $ 1,637,670 | |
Percentage of consolidated total accounted by VIE and its subsidiaries | 10.00% | 10.00% | 10.00% | |
Assets, Total [Member] | ||||
Percentage of consolidated total accounted by VIE and its subsidiaries | 33.02% | 57.21% | ||
Liabilities, Total [Member] | ||||
Percentage of consolidated total accounted by VIE and its subsidiaries | 83.14% | 97.83% | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Allowable assets to disposed without prior written consent | ¥ 3,528,337 | ¥ 1,941,869 | ||
Exclusive Call Option Agreement [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Maximum [Member] | ||||
Allowable assets to disposed without prior written consent | ¥ 100 |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Summary of subsidiaries, VIE and VIE's subsidiaries (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Subsidiaries [Member] | BaiJiaHuLian HK [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Aug. 18, 2014 |
Place of establishment | HongKong, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Holding company |
Subsidiaries [Member] | Beijing Lexuebang [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Jan. 12, 2015 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education technical services |
Subsidiaries [Member] | Wuhan Yuexuebang Network Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | May 25, 2020 |
Place of establishment | Wuhan, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education technical services |
Subsidiaries [Member] | Beijing Yuexuebang Network Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Nov. 24, 2020 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education technical services |
Variable Interest Entity, Primary Beneficiary [Member] | Beijing BaiJia [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Jun. 4, 2014 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Beijing Genshuixue Technology Co., Ltd. [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | May 14, 2015 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Beijing GaoTuYunJi Education Technology Co., Ltd. [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Jul. 18, 2017 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Shandong Genshuixue Internet Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Jan. 17, 2020 |
Place of establishment | Jinan, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Zhengzhou GaoTuYunJi Education Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Jan. 19, 2020 |
Place of establishment | Zhengzhou, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Xi'an GaoTuYunJi Education Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Mar. 24, 2020 |
Place of establishment | Xi’an, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Wuhan GaoTuYunJi Education Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Apr. 1, 2020 |
Place of establishment | Wuhan, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
ORGANIZATION AND PRINCIPAL AC_5
ORGANIZATION AND PRINCIPAL ACTIVITIES - Summary of financial information of VIE and VIE's subsidiaries after elimination of inter-company transactions and balances (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017CNY (¥) | |
Variable Interest Entity [Line Items] | |||||||
Cash and cash equivalents | ¥ 355,224 | ¥ 73,967 | ¥ 33,259 | $ 54,440 | $ 11,336 | ¥ 19,294 | |
Short-term investments | 7,331,268 | 1,473,452 | 1,123,566 | ||||
Prepaid expenses and other current assets | 722,682 | 252,660 | 110,756 | ||||
Inventory | 48,074 | 8,822 | 7,368 | ||||
Total current assets | 8,457,248 | 1,808,901 | 1,296,130 | ||||
Property, equipment and software, net | 704,338 | 81,860 | 107,945 | ||||
Intangible assets | 13,219 | 100 | 2,026 | ||||
Long-term investments | 530,729 | 1,188,286 | 81,338 | ||||
Deferred tax assets | 48,324 | 30,716 | 7,406 | ||||
Operating lease right-of-use assets | 806,591 | 264,909 | 123,615 | ||||
Others | 1,230 | 710 | 188 | ||||
TOTAL ASSETS | 10,685,792 | 3,394,532 | 1,637,670 | ||||
Accrued expenses and other current liabilities | 1,315,502 | 228,753 | 201,610 | ||||
Deferred revenue, current portion | 2,724,614 | 1,331,962 | 417,566 | ||||
Current portion of operating lease liabilities | 152,622 | 59,982 | 23,390 | ||||
Income tax payable | 4,654 | 16,093 | 713 | ||||
Amounts due to related parties | 0 | 460 | 0 | ||||
Total current liabilities | 4,197,392 | 1,637,250 | 643,279 | ||||
Deferred revenue, non-current portion | 9,125 | 5,674 | 1,398 | ||||
Deferred tax liabilities | 78,697 | 25 | 12,061 | ||||
Non-current portion of operating lease liabilities | 644,143 | 194,228 | 98,719 | ||||
TOTAL LIABILITIES | 4,955,937 | 1,837,177 | $ 759,531 | ||||
Net revenues | 7,124,744 | $ 1,091,915 | 2,114,855 | 397,306 | |||
Net income | (1,392,930) | (213,474) | 226,630 | 19,650 | |||
Net cash generated from operating activities | 603,273 | 92,455 | 1,285,054 | 241,869 | |||
Net cash used in investing activities | (5,596,304) | (857,671) | (2,504,566) | (198,720) | |||
Net cash used in financing activities | 5,272,100 | $ 807,985 | 1,246,065 | (29,193) | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Cash and cash equivalents | 20,701 | 9,763 | |||||
Short-term investments | 1,347,750 | 1,191,664 | |||||
Prepaid expenses and other current assets | 605,287 | 195,448 | |||||
Inventory | 48,074 | 8,822 | |||||
Total current assets | 2,021,812 | 1,405,697 | |||||
Property, equipment and software, net | 658,592 | 76,955 | |||||
Intangible assets | 13,219 | 100 | |||||
Land use right | 28,983 | 0 | |||||
Long-term investments | 5,356 | 143,800 | |||||
Deferred tax assets | 48,324 | 30,716 | |||||
Operating lease right-of-use assets | 660,407 | 264,909 | |||||
Others | 91,644 | 19,692 | |||||
Total non-current assets | 1,506,525 | 536,172 | |||||
TOTAL ASSETS | 3,528,337 | 1,941,869 | |||||
Accrued expenses and other current liabilities | 623,002 | 188,975 | |||||
Deferred revenue, current portion | 2,724,614 | 1,331,962 | |||||
Current portion of operating lease liabilities | 125,986 | 59,982 | |||||
Income tax payable | 4,654 | 16,093 | |||||
Amounts due to related parties | 0 | 460 | |||||
Total current liabilities | 3,478,256 | 1,597,472 | |||||
Deferred revenue, non-current portion | 9,125 | 5,674 | |||||
Deferred tax liabilities | 78,697 | 25 | |||||
Non-current portion of operating lease liabilities | 527,692 | 194,228 | |||||
Other payables | 26,580 | 0 | |||||
Total non-current liabilities | 642,094 | 199,927 | |||||
TOTAL LIABILITIES | 4,120,350 | 1,797,399 | |||||
Net revenues | 7,124,744 | 2,114,855 | 397,306 | ||||
Net income | 2,406,144 | 211,799 | 66,934 | ||||
Net cash generated from operating activities | 3,945,706 | 1,238,366 | 239,307 | ||||
Net cash used in investing activities | (305,448) | (1,172,967) | (195,193) | ||||
Net cash used in financing activities | ¥ (132,644) | ¥ (87,239) | ¥ (31,040) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020CNY (¥)Customers | Dec. 31, 2019CNY (¥)Customers | Dec. 31, 2018CNY (¥)Customers | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017CNY (¥) | ||
Convenience translation rate of USD1.00 | 6.5250 | 6.5250 | |||||
Held-to-maturity securities | ¥ 603,775 | ¥ 145,110 | |||||
Impairment losses on long-lived assets | 0 | 0 | ¥ 0 | ||||
Impairment losses on equity method investments | 0 | 0 | 0 | ||||
Revenue recognized that was included in deferred revenue balance | 1,297,088 | 259,384 | |||||
Remaining performance obligations | 2,733,739 | ||||||
Remaining performance obligations, expected to be recognized over the next 12 months | 2,724,614 | ||||||
Remaining performance obligations, expected to be recognized over the second 12 months | 6,708 | ||||||
Remaining performance obligations, expected to be recognized thereafter | 2,417 | ||||||
Government subsidies | 6,941 | 310 | 400 | ||||
Cash and cash equivalents | ¥ 355,224 | ¥ 73,967 | ¥ 33,259 | $ 54,440 | $ 11,336 | ¥ 19,294 | |
Percentage of net revenues earned through one customer | 10.00% | 10.00% | 10.00% | ||||
Available-for-sale debt investments current | ¥ 6,727,493 | ¥ 1,328,342 | |||||
Available-for-sale debt investments noncurrent | [1] | 525,373 | 1,181,693 | ||||
Capitalized contract costs | 77,668 | 64,805 | |||||
Capitalized Contract Cost, Impairment Loss | ¥ 0 | ¥ 0 | ¥ 0 | ||||
Operating Lease, Term | 9 years | 9 years | |||||
Uncertain income tax position | 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 are classified as a component of the provisions for income taxes. | ||||||
Allowance for credit losses | ¥ 0 | ||||||
Minimum [Member] | |||||||
Equity method investment, ownership percentage | 20.00% | 20.00% | |||||
Maximum [Member] | |||||||
Equity method investment, ownership percentage | 50.00% | 40.00% | 50.00% | 40.00% | |||
Selling and marketing expense [Member] | |||||||
Capitalized contract costs amortization | ¥ 185,787 | ¥ 156,710 | ¥ 0 | ||||
Other Income [Member] | |||||||
Value added tax exemption income | ¥ 256,378 | ||||||
Small Scale VAT Payer Entities [Member] | Educational services [Member] | |||||||
Value added tax rate | 3.00% | 3.00% | |||||
Small Scale VAT Payer Entities [Member] | Educational services [Member] | March 1, 2020 to December 31, 2021 | |||||||
Preferential value added tax rate | 1.00% | 1.00% | |||||
General VAT Payer Entities [Member] | Educational services [Member] | |||||||
Value added tax rate | 6.00% | 6.00% | |||||
Revenue Benchmark | |||||||
Number of customers whose revenue individually represent greater than 10% of the total net revenues | Customers | 0 | 0 | 0 | ||||
CNY | |||||||
Cash and cash equivalents | ¥ 151,009 | ¥ 11,677 | |||||
[1] | Long-term available-for-sale debt investments are reported at fair value. Please refer to debt securities investments described in Note 2. |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of property, equipment and software estimated useful lives (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Electronic equipment | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 3 years |
Furniture and office equipment | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 5 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 10 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 2 years |
Building | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 37 years |
Leasehold improvement | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives description | Shorter of the lease term or estimated economic life |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of amortization periods by intangible asset classes (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Student base | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets estimated useful lives | 2 years |
Student base | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets estimated useful lives | 1 year 6 months |
Trademark | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets estimated useful lives | 10 years |
Trademark | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets estimated useful lives | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of disaggregated revenue by types (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 7,124,744 | $ 1,091,915 | ¥ 2,114,855 | ¥ 397,306 |
Online Tutoring Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,109,255 | 2,084,803 | 362,622 | |
K-12 courses | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,237,399 | 1,706,538 | 290,890 | |
Foreign language, professional and admission courses | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 871,856 | 378,265 | 71,732 | |
Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 15,489 | ¥ 30,052 | ¥ 34,684 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of contract liabilities arising from contract with customers (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue, current | ¥ 2,724,614 | $ 417,566 | ¥ 1,331,962 | |
Deferred revenue, non-current | 9,125 | $ 1,398 | 5,674 | |
Contract liabilities arising from contract with customers | 2,733,739 | 1,337,636 | ||
Refund liability | [1] | ¥ 120,709 | ¥ 54,567 | |
[1] | Refund liability represents the estimated amounts of service fee received that is estimated to be refunded as described in Note 2. |
BUSINESS ACQUISITION - Summary
BUSINESS ACQUISITION - Summary Of Purchase Price Allocation (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Business Acquisition [Line Items] | |||
Goodwill | ¥ 43,631 | $ 6,687 | ¥ 331 |
Tianjin Puxin [Member] | |||
Business Acquisition [Line Items] | |||
Other current assets | 123 | ||
Intangible assets | 13,700 | ||
Goodwill | 43,300 | ||
Deferred revenue | (11,700) | ||
Other current liabilities | (457) | ||
Deferred tax liabilities | (7,567) | ||
Total | 37,399 | ||
Tianjin Puxin [Member] | Trademarks [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | ¥ 1,300 | ||
Intangible assets - Amortization period | 3 years | ||
Tianjin Puxin [Member] | Student Base [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | ¥ 12,400 | ||
Intangible assets - Amortization period | 2 years |
BUSINESS ACQUISITION - Addition
BUSINESS ACQUISITION - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Business Acquisition [Line Items] | |||
Goodwill | ¥ 43,631 | $ 6,687 | ¥ 331 |
Tianjin Puxin [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 100.00% | 100.00% | |
Business combination consideration transferred | ¥ 37,399 | ||
Payment to acquire business | 35,529 | ||
Intangible assets | 13,700 | ||
Goodwill | ¥ 43,300 | ||
Revenue of the acquiree after acquisition percentage | 0.05% | ||
Total assets of the acquiree after acquisition percentage | 0.15% |
BUSINESS ACQUISITION - Summar_2
BUSINESS ACQUISITION - Summary of unaudited pro forma results of operations (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Pro forma net revenues | ¥ 7,231,144 | ¥ 2,127,834 |
Pro forma net income (loss) | ¥ (1,477,022) | ¥ 177,761 |
ASSETS ACQUISITION - Additional
ASSETS ACQUISITION - Additional Information (Details) - Zhengzhou Kaitong [Member] - Real Estate [Member] - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended |
Jan. 31, 2020 | Dec. 31, 2020 | |
Asset Acquisition [Line Items] | ||
Assets acquisition consideration transferred | ¥ 333,809 | |
Payment to acquire assets gross | 228,089 | |
Assets acquisition, consideration transferred, liabilities incurred | ¥ 105,720 | |
Long-term purchase commitment amount | ¥ 127,316 | |
Long-term debt gross | ¥ 26,580 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Summary of prepaid expenses and other current assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Prepaid VAT and income tax | [1] | ¥ 312,003 | ¥ 0 |
Prepaid other service fees | [2] | 264,877 | 112,939 |
Contracts Cost | [3] | 77,668 | 64,805 |
Staff advance | 5,813 | 3,809 | |
Others | 3,091 | 544 | |
Total | 722,682 | 252,660 | |
Receivable from brokers [Member] | |||
Receivables from brokers | [4] | 47,634 | 43,993 |
Receivable from third party payment platform [Member] | |||
Receivables from third party payment platform | [5] | ¥ 11,596 | ¥ 26,570 |
[1] | Prepaid VAT and income tax consist of (a) VAT input that is expected to offset with VAT output tax or to be transferred out and (b) the prepayment of income tax. | ||
[2] | Prepaid other service fees consist of prepayment of advertising fees and cloud server hosting fees. The prepayments of advertising fees and cloud server hosting fees are generally short-term in nature and are amortized over the related service period. | ||
[3] | Contract cost mainly includes sales commissions to sales personnel and third-party agents which the Group started in July 2019 as described in Note 2. | ||
[4] | Amount represents receivable from broker related to employee’s stock option exercises in connection with employees’ tax obligations. In 2019 and 2020, certain employees exercised their stock options for which the Company paid the relevant employee’s tax obligations on their behalf to the appropriate taxing authorities. To settle the employees’ obligations with the Company, the Company’s broker withheld some of the employees’ shares and subsequently sold them in the open market at fair value. The receivable represents the cash to be received from the broker related to the above transaction. | ||
[5] | Receivables from third party payment platform consist of cash that has been received from course participants but held by the third-party payment platform. The Group subsequently collected the full balance from the third-party payment platform. |
PROPERTY, EQUIPMENT AND SOFTW_3
PROPERTY, EQUIPMENT AND SOFTWARE, NET - Summary of property, equipment and software (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | ¥ 781,783 | ¥ 106,434 | |
Less: Accumulated depreciation | (77,445) | (24,574) | |
Property, equipment and software, Net | 704,338 | $ 107,945 | 81,860 |
Electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 214,235 | 60,778 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 189,965 | 0 | |
Leasehold improvement | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 80,705 | 21,851 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 21,180 | 6,632 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 7,183 | 2,043 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | ¥ 268,515 | ¥ 15,130 |
PROPERTY, EQUIPMENT AND SOFTW_4
PROPERTY, EQUIPMENT AND SOFTWARE, NET - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expenses | ¥ 55,751 | $ 8,544 | ¥ 11,919 | ¥ 4,043 |
LAND USE RIGHTS - Summary of La
LAND USE RIGHTS - Summary of Land Use Rights (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Land Use Rights [Line Items] | ||
Land use rights | ¥ 29,788 | ¥ 0 |
Less: Accumulated amortization | (805) | 0 |
Land use rights net | ¥ 28,983 | ¥ 0 |
LAND USE RIGHTS - Additional In
LAND USE RIGHTS - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Land Use Rights Disclosure [Line Items] | |||
Amortization expenses for land use right | ¥ 805 | ¥ 0 | ¥ 0 |
Future Amortization [Member] | |||
Land Use Rights Disclosure [Line Items] | |||
Expected amortization expense of land use rights in next twelve months | 805 | ||
Expected amortization expense of land use rights year two | 805 | ||
Expected amortization expense of land use rights year three | 805 | ||
Expected amortization expense of land use rights year four | 805 | ||
Expected amortization expense of land use rights year five | 805 | ||
Expected amortization expense of land use rights thereafter | ¥ 805 |
LONG-TERM INVESTMENTS - Summary
LONG-TERM INVESTMENTS - Summary of long-term investments (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | [1] | ¥ 5,356 | ¥ 6,593 | |
Available-for-sale debt investments | [2] | 525,373 | 1,181,693 | |
Total | ¥ 530,729 | $ 81,338 | ¥ 1,188,286 | |
[1] | The Group holds less than 40% equity interests in several third-party private companies through investments in their common shares or in-substance common share. The Group accounts for the investments under the equity method because the Group has the ability to exercise significant influence but does not have control over the investee. The Group recorded its shares of income in these investments of RMB869, RMB1,348 and RMB63 for the years ended December 31, 2018, 2019 and 2020 respectively. | |||
[2] | Long-term available-for-sale debt investments are reported at fair value. Please refer to debt securities investments described in Note 2. |
LONG-TERM INVESTMENTS - Summa_2
LONG-TERM INVESTMENTS - Summary of long-term investments (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Shares of (loss) income from equity method investments | ¥ 63 | $ 10 | ¥ 1,348 | ¥ 869 |
Maximum | ||||
Equity method investments holding percentage | 50.00% | 50.00% | 40.00% | |
Third Party Investments [Member] | ||||
Shares of (loss) income from equity method investments | ¥ 63 | ¥ 1,348 | ¥ 869 |
GOODWILL - Summary of carrying
GOODWILL - Summary of carrying amount of goodwill (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | ||
Goodwill [Line Items] | ||||
Beginning balance | ¥ 331 | ¥ 331 | ||
Addition | [1] | 43,300 | 0 | |
Accumulated impairment loss | 0 | 0 | ||
Goodwill, net | ¥ 43,631 | $ 6,687 | ¥ 331 | |
[1] | Represent the goodwill in the acquisition of Tianjin Puxin in December 2020, which was described as Note 3. |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment loss | ¥ 0 | ¥ 0 |
INTANGIBLE ASSETS - Summary of
INTANGIBLE ASSETS - Summary of intangible assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | ¥ 14,185 | ¥ 410 |
Less: Accumulated amortization | (966) | (310) |
Finite-Lived Intangible Assets, Net | 13,219 | 100 |
Student Base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 12,510 | 110 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | ¥ 1,675 | ¥ 300 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | ¥ 656 | ¥ 137 | ¥ 173 |
Expected amortization expense of intangible assets in next twelve months | 6,641 | ||
Expected amortization expense of intangible assets year two | 6,124 | ||
Expected amortization expense of intangible assets year three | 405 | ||
Expected amortization expense of intangible assets year four | 8 | ||
Expected amortization expense of intangible assets year five | 8 | ||
Expected amortization expense of intangible assets thereafter | ¥ 33 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Summary of accrued expenses and other current liabilities (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Payables and Accruals [Abstract] | ||||
Salary and welfare payable | ¥ 507,867 | ¥ 127,032 | ||
Accrued marketing expense | 366,426 | 0 | ||
Refund liability | [1] | 120,709 | 54,567 | |
Other accrued expense | 118,002 | 26,163 | ||
Payable for investments and acquisitions | 102,606 | 0 | ||
Other tax payable | 93,902 | 10,700 | ||
Others | 4,441 | 6,869 | ||
Payable to third-parties | 1,549 | 3,422 | ||
Accrued expenses and other current liabilities | ¥ 1,315,502 | $ 201,610 | ¥ 228,753 | |
[1] | Refund liability represents the estimated amounts of service fee received that is estimated to be refunded as described in Note 2. |
FAIR VALUE MEASUREMENT - Additi
FAIR VALUE MEASUREMENT - Additional Information (Detail) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Fair Value Disclosures [Abstract] | |
Available for sale debt securities, maturity within one year | ¥ 6,727,493 |
Available for sale debt securities maturity two to three years | ¥ 525,373 |
FAIR VALUE MEASUREMENT - Summar
FAIR VALUE MEASUREMENT - Summary of assets measured at fair value on a recurring basis (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | ¥ 6,727,493 | ¥ 1,328,342 | |
Available-for-sale debt investments-Long term investment | [1] | 525,373 | 1,181,693 |
Available-for-sale Investments | |||
Available-for-sale debt investments | |||
Original cost | 7,248,150 | 2,502,360 | |
Unrealized gains | 4,716 | 7,675 | |
Unrealized loss | 0 | 0 | |
Provision for decline in value | 0 | 0 | |
Available-for-sale debt investments-Total | 7,252,866 | 2,510,035 | |
Available-for-sale Investments | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 6,727,493 | 1,328,342 | |
Available-for-sale debt investments | |||
Original cost | 6,726,150 | 1,321,090 | |
Unrealized gains | 1,343 | 7,252 | |
Unrealized loss | 0 | 0 | |
Provision for decline in value | 0 | 0 | |
Available-for-sale Investments | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Long term investment | 525,373 | 1,181,693 | |
Available-for-sale debt investments | |||
Original cost | 522,000 | 1,181,270 | |
Unrealized gains | 3,373 | 423 | |
Unrealized loss | 0 | 0 | |
Provision for decline in value | 0 | 0 | |
Available-for-sale Investments | Fair Value, Recurring [Member] | |||
Available-for-sale debt investments | |||
Available-for-sale debt investments-Total | 7,252,866 | 2,510,035 | |
Available-for-sale Investments | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 6,727,493 | 1,328,342 | |
Available-for-sale Investments | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Long term investment | 525,373 | 1,181,693 | |
Quoted prices in active market for identical assets | Available-for-sale Investments | Fair Value, Recurring [Member] | |||
Available-for-sale debt investments | |||
Available-for-sale debt investments-Total | 104,259 | 0 | |
Quoted prices in active market for identical assets | Available-for-sale Investments | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 104,259 | 0 | |
Quoted prices in active market for identical assets | Available-for-sale Investments | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Long term investment | 0 | 0 | |
Significant other observable inputs | Available-for-sale Investments | Fair Value, Recurring [Member] | |||
Available-for-sale debt investments | |||
Available-for-sale debt investments-Total | 7,148,607 | 2,510,035 | |
Significant other observable inputs | Available-for-sale Investments | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 6,623,234 | 1,328,342 | |
Significant other observable inputs | Available-for-sale Investments | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Long term investment | 525,373 | 1,181,693 | |
Significant unobservable inputs | Available-for-sale Investments | Fair Value, Recurring [Member] | |||
Available-for-sale debt investments | |||
Available-for-sale debt investments-Total | 0 | 0 | |
Significant unobservable inputs | Available-for-sale Investments | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 0 | 0 | |
Significant unobservable inputs | Available-for-sale Investments | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Long term investment | ¥ 0 | ¥ 0 | |
[1] | Long-term available-for-sale debt investments are reported at fair value. Please refer to debt securities investments described in Note 2. |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 10 years | 10 years | |
Granted | 0 | ||
Share based compensation expense | ¥ 238,446 | ¥ 60,237 | ¥ 5,917 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expenses related to options, weighted average period | 3 years 2 months 26 days | ||
Restricted stock units granted | 1,717,143 | ||
Exercise price per share of restricted stock units Granted | ¥ 0 | ||
Restricted stock units agggregate fair value | ¥ 672,010 | ||
Restricted stock units unrecognised compensation cost | ¥ 580,433 | ||
Restricted stock units weighted aveage grant date fair value | ¥ 391.35 | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of options vested | ¥ 21,081 | ¥ 14,948 | |
Granted | 0 | ||
Unrecognized compensation expenses related to options | ¥ 110,586 | ||
Unrecognized compensation expenses related to options, weighted average period | 7 years 7 months 9 days | ||
Minimum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units vesting period | 1 year | ||
Maximum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units vesting period | 4 years | ||
Share Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum aggregate number of ordinary shares that may be issued pursuant to all awards | 28,400,000 | ||
Description of increase in shares reserved | The shares reserved may be increased automatically if and whenever the unissued shares reserved accounts for less than one percent (1%) of the total then issued and outstanding shares, so that after the increase, the shares unissued and reserved under the Plan immediately after each such increase shall equal to five percent (5%) of the then issued and outstanding shares. | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Share Incentive Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 0 years | ||
Share Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 10 years |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of assumptions used to determine estimated fair value of options (Details) | 12 Months Ended | ||
Dec. 31, 2020¥ / shares | Dec. 31, 2019¥ / shares | Dec. 31, 2018¥ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.00% | 3.20% | |
Risk-free interest rate, Minimum | 3.42% | ||
Risk-free interest rate, Maximum | 3.78% | ||
Volatility | 0.00% | 54.60% | |
Volatility, Minimum | 53.40% | ||
Volatility, Maximum | 56.20% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Exercise multiples | 0 | 2.2 | |
Life of options (in years) | 10 years | 10 years | |
Fair value of underlying ordinary shares | ¥ 0 | ¥ 72.1 | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiples | 2.2 | ||
Fair value of underlying ordinary shares | ¥ 4.5 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiples | 2.8 | ||
Fair value of underlying ordinary shares | ¥ 12.7 |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of options activities (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options - Beginning Balance | 8,473,127 | |
Number of options - Granted | 0 | |
Number of options - Exercised | 622,263 | |
Number of options - Ending Balance | 7,850,864 | 8,473,127 |
Number of options - Options vested and expected to vest | 7,850,864 | |
Number of options - Options exercisable | 749,377 | |
Weighted average exercise price - Beginning Balance | ¥ 0.01 | |
Weighted average exercise price - Granted | 0 | |
Weighted average exercise price - Exercised | 0.01 | |
Weighted average exercise price - Ending Balance | 0.01 | ¥ 0.01 |
Weighted average exercise price - Options vested and expected to vest | 0.01 | |
Weighted average exercise price - Options exercisable | 0.01 | |
Weighted average grant date fair value - Beginning Balance | 23.96 | |
Weighted average grant date fair value - Granted | ¥ 0 | |
Weighted average grant date fair value - Exercised | 29.31 | |
Weighted average grant date fair value - Ending Balance | ¥ 23.53 | ¥ 23.96 |
Weighted average grant date fair value - Options vested and expected to vest | 23.53 | |
Weighted average grant date fair value - Options exercisable | ¥ 7.17 | |
Weighted average remaining contractual term (years) | 7 years 7 months 9 days | 8 years 7 months 13 days |
Weighted average remaining contractual term (years) - Options vested and expected to vest | 7 years 7 months 9 days | |
Weighted average remaining contractual term (years) - Options exercisable | 6 years 7 months 24 days | |
Aggregate intrinsic value - Beginning Balance | ¥ 1,934,139 | |
Aggregate intrinsic value - Ending Balance | 3,973,335 | ¥ 1,934,139 |
Aggregate intrinsic value - Options vested and expected to vest | 3,973,335 | |
Aggregate intrinsic value - Options exercisable | ¥ 379,261 |
SHARE-BASED COMPENSATION - Su_3
SHARE-BASED COMPENSATION - Summary Of The RSUs Activity (Detail) - RSUs [Member] | 12 Months Ended |
Dec. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested balance at January 1, 2020 | 767,060 |
Granted | 1,717,143 |
Vested | 184,921 |
Unvested balance at December 31, 2020 | 2,299,282 |
CONVERTIBLE REDEEMABLE PREFER_3
CONVERTIBLE REDEEMABLE PREFERRED SHARES - Additional Information (Detail) - Series A convertible redeemable preferred shares - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Redemption price description | The redemption price shall be a return at a specified rate per annum single annually from the original issue date to the date on which the applicable redemption amount is paid in full. A specified rate might be (a) 20% if the redemption is initiated pursuant to Situation(i); (b) 10% if the redemption is initiated pursuant to Situation (ii); (c) 15% if the redemption is initiated pursuant to Situation (iii); (d) 12% if the Redemption is initiated pursuant to Situation (iv)-(vi), as applicable | |
Liquidation price, percentage of Series A preferred share issue price | 150.00% | |
Dividend rate per annum on the Series A preferred shares | 8.00% | |
IPO [Member] | ||
Common stock shares isuued upon conversion | 35,625,002 |
CONVERTIBLE REDEEMABLE PREFER_4
CONVERTIBLE REDEEMABLE PREFERRED SHARES - Summary of change in balance of Series A Preferred Shares included in mezzanine equity (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Accretion of Series A Preferred Shares | ¥ 0 | $ 0 | ¥ 16,772 | ¥ 38,930 |
Series A convertible redeemable preferred shares | ||||
Beginning Balance | ¥ 0 | 466,060 | 427,130 | |
Accretion of Series A Preferred Shares | 16,772 | 38,930 | ||
Conversion to ordinary shares | (482,832) | |||
Ending Balance | ¥ 0 | ¥ 466,060 |
ORDINARY SHARES - Additional In
ORDINARY SHARES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | May 01, 2020shares | Jun. 06, 2019shares | Dec. 31, 2020CNY (¥)shares | May 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥) | May 01, 2022USD ($) |
Ordinary shares, shares outstanding | 157,138,000 | ||||||||||
Proceeds from Issuance Initial Public Offering | ¥ 0 | $ 0 | ¥ 1,366,860 | ¥ 0 | |||||||
Stock repurchased during period value | ¥ | 282,543 | 86,739 | |||||||||
Management payment to the issuance of stock | 5,687,251 | $ 871,609 | 0 | ¥ 0 | |||||||
Reissuance of treasury stock for share-based compensation | ¥ | 807,184 | ||||||||||
May 2020 Share Repurchase Program [Member] | |||||||||||
Stock repurchase program authorized amount | $ | $ 150,000 | ||||||||||
Treasury Stock [Member] | |||||||||||
Stock repurchased during period value | ¥ | ¥ 282,543 | 86,739 | |||||||||
Shares Withheld for Tax Withholding Obligation | 418,298 | 418,298 | |||||||||
Employees' tax obligations | ¥ 86,739 | $ 12,459 | |||||||||
IPO And Overallotment [Member] | |||||||||||
Proceeds from Issuance Initial Public Offering | ¥ | 1,366,860 | ||||||||||
Payment of stock issuance costs | ¥ | ¥ 31,791 | ||||||||||
ADS [Member] | IPO [Member] | |||||||||||
Common stock shares issued to the management | 20,532,000 | ||||||||||
Common Class A [Member] | |||||||||||
Ordinary shares, shares outstanding | 83,832,712 | 96,455,774 | 85,791,762 | 85,791,762 | 96,455,774 | 96,455,774 | 85,791,762 | ||||
Common stock voting rights | Each Class A ordinary share is entitled to one vote | Each Class A ordinary share is entitled to one vote | |||||||||
Common stock terms of conversion from class to the another | Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. | Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. | |||||||||
Common Class A [Member] | May 2020 Share Repurchase Program [Member] | |||||||||||
Stock repurchased during period shares | 754,244 | ||||||||||
Stock repurchased during period value | $ | $ 282,543 | ||||||||||
Common Class A [Member] | IPO [Member] | |||||||||||
Common stock shares issued to the management | 13,688,000 | ||||||||||
Common Class A [Member] | Private Placement [Member] | |||||||||||
Common stock shares issued to the management | 10,611,072 | 2,455,800 | 2,455,800 | ||||||||
Management payment to the issuance of stock | ¥ | ¥ 5,687,251 | ¥ 1,315,919 | |||||||||
Common Class B [Member] | |||||||||||
Ordinary shares, shares outstanding | 73,305,288 | 73,305,288 | 73,305,288 | 73,305,288 | 73,305,288 | 73,305,288 | 73,305,288 | ||||
Common stock voting rights | each Class B ordinary share is entitled to ten votes | each Class B ordinary share is entitled to ten votes | |||||||||
Common stock terms of conversion from class to the another | Each Class B ordinary share is convertible into one Class A ordinary share | Each Class B ordinary share is convertible into one Class A ordinary share | |||||||||
ADR [Member] | May 2020 Share Repurchase Program [Member] | |||||||||||
Stock repurchased during period shares | 1,131,366 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||||||
Mar. 31, 2018 | Dec. 31, 2020HKD ($) | Dec. 31, 2020CNY (¥)¥ / shares | Dec. 31, 2019HKD ($) | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2017 | Dec. 31, 2024 | Dec. 31, 2023 | |
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ||||
Net operating loss carried forward | ¥ | ¥ 756,593 | ||||||||
Increase Decrease in net income/loss per ordinary share-basic | ¥ / shares | ¥ 0.39 | ¥ 0.08 | ¥ 0.20 | ||||||
Increase Decrease in net income/loss per ordinary share-diluted | ¥ / shares | ¥ 0.39 | ¥ 0.07 | ¥ 0.20 | ||||||
Exemption For Income Tax Holiday [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Increase in income tax expenses | ¥ | ¥ 62,404 | ¥ 10,399 | ¥ 18,243 | ||||||
Minimum | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Net operating loss carried forward, expire date | Dec. 31, 2021 | Dec. 31, 2021 | |||||||
Maximum | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Net operating loss carried forward, expire date | Dec. 31, 2030 | Dec. 31, 2030 | |||||||
BaiJiaHuLian HK [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate | 16.50% | 16.50% | |||||||
BaiJiaHuLian HK [Member] | Assessable Profit Threshold Minimum | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Assessable profit threshold limit | $ 2,000 | ||||||||
Income tax rate | 8.25% | 8.25% | |||||||
BaiJiaHuLian HK [Member] | Assessable Profit Threshold Maximum | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Assessable profit threshold limit | $ 2,000 | ||||||||
Income tax rate | 16.50% | 16.50% | |||||||
Beijing BaiJia [Member] | High And New Technology Enterprise | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
GaoTuYunJi [Member] | High And New Technology Enterprise | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | |||||
Beijing Lexuebang [Member] | Software Enterprise [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate | 0.00% | 0.00% | 0.00% | 0.00% | 12.50% | ||||
Wuhan Yuexuebang [Member] | Software Enterprise [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate | 0.00% | 0.00% | 12.50% | ||||||
HK | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Foreign income tax expense benefit | $ 0 | $ 0 |
INCOME TAXES - Summary of curre
INCOME TAXES - Summary of current and deferred components of the income tax expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax (expense) benefits | ¥ 14,578 | ¥ (16,441) | ¥ 0 | |
Deferred tax (expense) benefits | 20,041 | (516) | (2,616) | |
Income tax (expense) benefits | ¥ 34,619 | $ 5,306 | ¥ (16,957) | ¥ (2,616) |
INCOME TAXES - Summary of princ
INCOME TAXES - Summary of principle components of deferred tax assets and deferred taxes liability (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||||
Deductible temporary difference related to advertising expenses | ¥ 458,991 | ¥ 51,607 | ||
Net operating loss carrying forwards | 160,919 | 19,461 | ||
Transfer of intangible assets | 1,679 | 0 | ||
Accrued liabilities | 300 | 0 | ||
Total deferred tax assets | 621,889 | 71,068 | ||
Less: valuation allowance | (573,565) | (40,352) | ¥ (42,797) | ¥ (31,387) |
Deferred tax assets, net | 48,324 | 30,716 | ||
Deferred tax liabilities | ||||
Building and land use right | 72,447 | 0 | ||
Intangible assets | 3,287 | 25 | ||
Deferred revenue | 2,750 | 0 | ||
Unrecognized gains of available-for-sale investments | 213 | 0 | ||
Total deferred tax liabilities | ¥ 78,697 | ¥ 25 |
INCOME TAXES - Summary of movem
INCOME TAXES - Summary of movements of valuation allowance (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the period | ¥ 40,352 | ¥ 42,797 | ¥ 31,387 |
Acquisitions | 4,987 | ||
Additions | 529,915 | 36,138 | 11,410 |
Reversal | (1,689) | (38,583) | |
Balance at end of the period | ¥ 573,565 | ¥ 40,352 | ¥ 42,797 |
INCOME TAXES - Summary of recon
INCOME TAXES - Summary of reconciliation of effective tax rate and statutory income tax rate (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before provision for income taxes and share of results of equity investees | ¥ (1,427,612) | $ (218,790) | ¥ 242,239 | ¥ 21,397 |
Income tax (expenses) benefits computed at an applicable tax rate of 25% | 356,903 | (60,560) | (5,349) | |
Effect of permanent differences | 55,935 | (11,010) | (4,100) | |
Effect of research and development super-deduction | 88,881 | 38,078 | 0 | |
Effect of preferential tax rate | 62,404 | 10,399 | 18,243 | |
Effect on tax rates in different tax jurisdictions | (1,278) | 3,691 | 0 | |
Change in valuation allowance | (528,226) | 2,445 | (11,410) | |
Income tax (expense) benefits | ¥ 34,619 | $ 5,306 | ¥ (16,957) | ¥ (2,616) |
INCOME TAXES - Summary of rec_2
INCOME TAXES - Summary of reconciliation of effective tax rate and statutory income tax rate (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax Expense Applicable Tax Rate | 25.00% | 25.00% | 25.00% |
NET (LOSS) INCOME PER SHARE - S
NET (LOSS) INCOME PER SHARE - Summary of computation of basic and diluted net loss per share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income (loss) | ¥ (1,392,930) | $ (213,474) | ¥ 226,630 | ¥ 19,650 |
Less: Accretion on Series A Preferred Shares redemption value | 0 | 0 | 16,772 | 38,930 |
Less: Undistributed earnings allocated to Series A Preferred Shares | ¥ | 0 | 21,698 | 0 | |
Net (loss) income attributed to ordinary shareholders for computing net (loss) income per ordinary shares-basic | ¥ (1,392,930) | $ (213,474) | ¥ 188,160 | ¥ (19,280) |
Denominator: | ||||
Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares-basic | 159,725,779 | 159,725,779 | 132,400,941 | 92,224,998 |
Net (loss) income per ordinary share attributable to ordinary shareholders-basic | (per share) | ¥ (8.72) | $ (1.34) | ¥ 1.42 | ¥ (0.21) |
Denominator: | ||||
Weighted average ordinary shares basic outstanding | 159,725,779 | 159,725,779 | 132,400,941 | 92,224,998 |
Effect of potentially diluted stock options | 0 | 0 | 6,998,647 | 0 |
Effect of potentially diluted RSUs | 0 | 0 | 78,310 | 0 |
Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary shares-diluted | 159,725,779 | 159,725,779 | 139,477,898 | 92,224,998 |
Net (loss) income per ordinary share attributable to ordinary shareholders-diluted | (per share) | ¥ (8.72) | $ (1.34) | ¥ 1.35 | ¥ (0.21) |
RSUs [Member] | ||||
Denominator: | ||||
Shares issuable | 64,576 | 64,576 | 512,847 | |
Employee Stock Option | ||||
Denominator: | ||||
Shares issuable | 21,892,243 | |||
Series A Convertible Redeemable Preferred Stock [Member] | ||||
Denominator: | ||||
Shares issuable | 35,625,002 |
EMPLOYEE DEFINED CONTRIBUTION_2
EMPLOYEE DEFINED CONTRIBUTION PLAN - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefit expense | ¥ 216,551 | ¥ 67,462 | ¥ 35,738 |
RELATED PARTY TRANSACTION - Sch
RELATED PARTY TRANSACTION - Schedule of Related Parties (Detail) | 12 Months Ended | |
Dec. 31, 2020 | ||
Mr. Larry Xiangdong Chen | ||
Related Party Transaction [Line Items] | ||
Relationship with the Group | CEO and Chairman of the board of Directors of the Company | |
Beijing Youlian Global Education Technology Co., Ltd ("Beijing Youlian") | ||
Related Party Transaction [Line Items] | ||
Relationship with the Group | Equity method investment investee | [1] |
[1] | Beijing Youlian was dissolved in June 2020. |
RELATED PARTY TRANSACTION - Sum
RELATED PARTY TRANSACTION - Summary of significant balances and transactions (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | ||
Amounts due to: | |||||
Amounts due to related parties | ¥ 0 | ¥ 460 | $ 0 | ||
Revenue | 0 | 566 | ¥ 4,670 | ||
Expense | 1,457 | 3,569 | 2,052 | ||
Beijing Youlian | |||||
Amounts due to: | |||||
Revenue | [1] | 0 | 566 | 4,670 | |
Expense | [2] | 1,457 | 3,569 | ¥ 2,052 | |
Mr. Larry Xiangdong Chen | |||||
Amounts due to: | |||||
Amounts due to related parties | ¥ 0 | ¥ 460 | |||
[1] | The Group recognized revenue from providing technical service. | ||||
[2] | The Group recognized expense from receiving advertising service provided by Beijing Youlian. |
LEASE - Supplementary Informati
LEASE - Supplementary Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | ¥ 141,942 | ¥ 64,630 |
Non-cash right-of-use assets in exchange for new lease liabilities: | ||
Operating leases | ¥ 647,029 | ¥ 231,146 |
Weighted average remaining lease term | ||
Operating leases | 4 years 7 months 6 days | 4 years 4 months 24 days |
Weighted average discount rate | ||
Operating leases | 6.60% | 5.00% |
LEASE - Summary of future minim
LEASE - Summary of future minimum payment under non-cancelable operating leases (Detail) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 | ¥ 206,362 |
2022 | 217,978 |
2023 | 194,381 |
2024 | 178,226 |
2025 | 99,170 |
2026 and thereafter | 36,950 |
Less: imputed interest | (136,302) |
Total | ¥ 796,765 |
LEASE - Additional Information
LEASE - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating lease expenses | ¥ 155,287 | ¥ 53,165 | ¥ 13,965 |
Leases that have not yet commenced | As of December 31, 2020, the Group did not have additional operating leases that have not yet commenced. | ||
Financing lease | As of December 31, 2020, the Group had no long-term leases that were classified as a financing lease. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - Capital commitments [Member] - Office Space Construction and Leasehold Improvement [Member] ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Contractual Obligation Fiscal Year Maturity Schedule [Line Items] | |
Payment due within one year | ¥ 67,585 |
Payment due thereafter | ¥ 34,432 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reporting segments | 1 |
RESTRICTED NET ASSETS - Additio
RESTRICTED NET ASSETS - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Net Assets [Line Items] | ||
Net assets not available for distribution | ¥ 329,344 | ¥ 99,655 |
People Republic of China [Member] | ||
Restricted Net Assets [Line Items] | ||
Appropriation of after tax profit to statutory common reserve required minimum percentage | 10.00% | |
Appropriation of after tax profit to statutory common reserve limit registered capital percentage | 50.00% |