Ambow Education Announces Second Half and Full Year 2021 Financial Results

Rhea-AI Summary

Ambow Education Holding Ltd. (AMBO) reported its financial results for 2021, showing total revenues of RMB 496.9 million (US$ 78.0 million), a 6.6% decline from 2020. The company faced challenges due to the 2021 Implementing Rules affecting its K-12 business. In Q4 2021, revenues were RMB 118.9 million (US$ 18.7 million), down 31.5% YoY. Despite these challenges, net income attributable to shareholders was RMB 3.0 million (US$ 0.5 million). Ambow continues to focus on innovative education technologies and maintaining strong cash resources of RMB 177.0 million (US$ 27.8 million) as of December 31, 2021.

Positive

• Net income attributable to ordinary shareholders of RMB 3.0 million (US$ 0.5 million) in 2021, a significant improvement from a net loss of RMB 62.7 million in 2020.
• Gross profit margin increased to 31.7% in 2021 from 27.2% in 2020, indicating improved cost control.

Negative

• Total revenues decreased by 6.6% in 2021 compared to 2020, primarily due to regulatory impacts on the K-12 business.
• Fourth quarter revenues fell by 31.5% YoY to RMB 118.9 million (US$ 18.7 million).
• Operating loss increased in Q4 2021 to RMB 34.4 million (US$ 5.4 million) from an operating income of RMB 3.3 million in Q4 2020.

BEIJING, May 2, 2022 /PRNewswire/ -- Ambow Education Holding Ltd. ("Ambow" or the "Company") (NYSE American: AMBO), a leading cross-border career educational and technology service provider, today announced its financial and operating results for the third and fourth quarters of 2021, which have not been audited or reviewed by the Company's independent registered accounting firm, as well as its audited financial and operating results for the full fiscal year, ended December 31, 2021.

"We remained focused on strengthening our core competencies during the second half of 2021: creating and providing high-quality, technology-driven educational and career enhancement products and services," noted Dr. Jin Huang, Ambow's President and Chief Executive Officer. "Amid the fast-evolving environment, we skillfully adapted our business to new PRC regulatory requirements and achieved total revenues of RMB 496.9 million (US$ 78.0 million) in the full year 2021."

"I firmly believe that our long-standing ability to innovate and advance technology will continue to drive our sustainable growth. Our valuable patent portfolio encompassing a wide spectrum of educational technologies is unparalleled in the industry. Notably, our cutting-edge multimedia blackboard technology received a new U.S. patent in September 2021, underscoring our industry-leading technology capabilities. As both a pioneer and veteran in the career educational services sector, we also remain dedicated to the development of Industry-University collaborative and coordinated education. In October 2021, the Ministry of Education ("MoE") again added Ambow to its list of approved enterprises for the Industry-University Cooperation and Collaborative Education Project. Furthermore, in December 2021, MoE selected Ambow to its first group of companies for participation in its Education Program for Connecting Talent Supply and Demand to Promote Employment, affirming the exceptional quality of our collaborative projects," Dr. Huang added.

"Looking ahead, we will continue to deepen our commitment to addressing the career education sector's critical demands and harnessing our core capabilities to meet those needs with innovative services and products. Building on our 20-year proven track record, resilient business model and strategic efforts, we believe we are well positioned to deliver sustainable, long-term growth to our shareholders," concluded Dr. Huang.

Third Quarter 2021 Financial Highlights

• Net revenues in the third quarter of 2021 were RMB 76.2 million (US$ 11.8 million), compared with RMB 112.7 million (US$ 16.6 million) in the same period of 2020. The decrease was primarily due to the impact of the 2021 Implementing Rules for the Law for Promoting Private Education (the "2021 Implementing Rules") on the Company's compulsory education business ("K-9 business") from September 1, 2021, as well as a high base effect resulting from the one-month extension of the spring semester at the Company's K-12 schools in the third quarter of 2020 and fewer services provided at the Company's tutoring centers and training offices during the third quarter of 2021.
• Gross profit in the third quarter of 2021 was RMB 2.8 million (US$ 0.4 million), compared with RMB 6.5 million (US$ 1.0 million) in the same period of 2020. Gross profit margin was 3.7%, compared with 5.8% in the third quarter of 2020. The decreases in gross profit and gross margin were mainly attributable to the impact of the 2021 Implementing Rules on the Company's K-12 schools business.
• Operating expenses in the third quarter of 2021 decreased by 29.9% to RMB 66.7 million (US$ 10.4 million) from RMB 95.1 million (US$ 14.0 million) in the same period of 2020. The decrease was primarily attributable to reduced impairment loss on long-lived assets and stringent expense controls to improve operating efficiency.
• Operating loss in the third quarter of 2021 was RMB 63.9 million (US$ 9.9 million), compared with RMB 88.6 million (US$ 13.1 million) in the same period of 2020.
• Net income attributable to ordinary shareholders was RMB 31.9 million (US$ 4.9 million), or RMB 0.68 (US$ 0.11) per basic and diluted share, compared with a net loss of RMB 84.5 million (US$ 12.5 million), or RMB 1.94 (US$ 0.29) per basic and diluted share, in the same period of 2020. The income was mainly attributable to the gain on disposal of the Company's subsidiaries of RMB 10.8 million (US$ 1.7 million), the gain on the forgiven PPP loan of RMB 9.3 million (US$ 1.4 million), as well as a reversal of income tax payable of RMB 62.8 million (US$ 9.7 million) due to the expiration of its five-year claw-back period during the third quarter of 2021.

Fourth Quarter 2021 Financial Highlights

• Net revenues in the fourth quarter of 2021 were RMB 118.9 million (US$ 18.7 million), compared with RMB 173.5 million (US$ 26.6 million) in the same period of 2020. The decrease was primarily due to the 2021 Implementing Rules to the Company's K-12 schools business from September 2021 being brought into effect, as well as the regulatory changes to our tutoring business in the second half of 2021.
• Gross profit in the fourth quarter of 2021 was RMB 33.9 million (US$ 5.3 million), compared with RMB 66.1 million (US$ 10.1 million) in the same period of 2020. Gross profit margin was 28.5%, compared with 38.1% in the third quarter of 2020. The decreases in gross profit and gross margin were mainly attributable to the decrease in net revenues.
• Operating expenses in the fourth quarter of 2021 increased by 8.9% to RMB 68.4 million (US$ 10.7 million) from RMB 62.8 million (US$ 9.6 million) in the same period of 2020. The increase was primarily due to additional research and development expenditures.
• Operating loss in the fourth quarter of 2021 was RMB 34.4 million (US$ 5.4 million), compared with an operating income of RMB 3.3 million (US$ 0.5 million) in the same period of 2020.
• Net loss attributable to ordinary shareholders was RMB 37.0 million (US$ 5.8 million), or RMB 0.79 (US$ 0.12) per basic and diluted share, compared with a net income of RMB 11.0 million (US$ 1.7 million), or RMB 0.23 (US$ 0.04) per basic and diluted share, in the same period of 2020. The net loss was mainly caused by the decrease in the gross profit stemming from the impact of the 2021 Implementing Rules on the Company's K-12 schools business.
• As of December 31, 2021, Ambow maintained strong cash resources of RMB 177.0 million (US$ 27.8 million), comprised of cash and cash equivalents of RMB 157.4 million (US$ 24.7 million), short-term investments of RMB 17.8 million (US$ 2.8 million) and restricted cash of RMB 1.8 million (US$ 0.3 million).

Full Fiscal Year 2021 Financial Highlights

• Net revenues in fiscal year 2021 decreased by 6.6% to RMB 496.9 million (US$ 78.0 million) from RMB 532.0 million (US$ 81.5 million) in 2020. The decrease was primarily due to the 2021 Implementing Rules to the Company's K-12 schools business coming into effect, as well as the regulatory changes to our tutoring business in the second half of 2021.
• Gross profit in fiscal year 2021 increased by 8.9% to RMB 157.3 million (US$ 24.7 million) from RMB 144.5 million (US$ 22.1 million) in 2020. Gross profit margin was 31.7%, compared with 27.2% in 2020. The increases in gross profit and gross margin were mainly attributable to stringent cost controls during 2021.
• Operating expenses in fiscal year 2021 decreased by 6.9% to RMB 250.5 million (US$ 39.3 million) from RMB 269.0 million (US$ 41.2 million) in 2020. The decrease was primarily attributable to reduced impairment loss on long-lived assets during 2021.
• Operating loss in fiscal year 2021 was RMB 93.2 million (US$ 14.6 million), compared with RMB 124.6 million (US$ 19.1 million) in 2020.
• Net income attributable to ordinary shareholders was RMB 3.0 million (US$ 0.5 million), or RMB 0.06 (US$ 0.01) per basic and diluted share, compared with a net loss of RMB 62.7 million (US$ 9.6 million), or RMB 1.41 (US$ 0.22) per basic and diluted share, in 2020. The income was mainly attributable to the gain on the disposal of the Company's subsidiaries of RMB 12.2 million (US$ 1.9 million), the gain on the forgiven PPP loan of RMB 9.3 million (US$ 1.5 million), as well as a reversal of income tax payable of RMB 62.8 million (US$ 9.7 million) due to the expiration of its five-year claw-back period during 2021.

Impact of 2021 Implementing Rules for the Law for Promoting Private Education

On May 14, 2021, the People's Republic of China's State Council promulgated the 2021 Implementing Rules for the Law for Promoting Private Education (the "2021 Implementing Rules"), which became effective on September 1, 2021. The Implementing Rules prohibit foreign-invested enterprises established in China and social organizations whose actual controllers are foreign parties from controlling private schools that provide compulsory education by means of mergers, acquisitions, contractual arrangements, etc., and private schools providing compulsory education are prohibited from conducting transactions with their related parties.

To comply with the 2021 Implementing Rules, the Company planned to sell its business providing compulsory education services at its three K-12 schools to a third party on September 1, 2021. The Company has found a third party buyer and signed a definitive sales agreement, which is currently under registration process and expected to be completed within one year from December 31, 2021. As the transaction was not closed as of December 31, 2021, and such business did not meet the definition of a "component" under US GAAP to be presented as a discontinued operation, the Company recorded the assets and liabilities of the K-9 business as "Held for Sale" in accordance with ASC 360. The assets and liabilities of the K-9 business classified as held for sale were presented separately in the asset and liability sections, respectively, of the Consolidated Balance Sheet as of December  31, 2021.

The Company's financial and operating results for the third quarter and fourth quarters of 2021, as well as the full fiscal year ended December 31, 2021 can also be found on its Form 6-K and 20-F filed with the U.S. Securities and Exchange Commission at www.sec.gov.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all amounts translated from RMB to U.S. dollars for the third quarter and first nine months of 2021 are based on the effective exchange rate of 6.4434 as of September 30, 2021; all amounts translated from RMB to U.S. dollars for the third quarter and first nine months of 2020 are based on the effective exchange rate of 6.7896 as of September 30, 2020; all amounts translated from RMB to U.S. dollars for the fourth quarter and fiscal year of 2021 are based on the effective exchange rate of 6.3726 as of December 30, 2021; all amounts translated from RMB to U.S. dollars for the fourth quarter and fiscal year of 2020 are based on the effective exchange rate of 6.5250 as of December 31, 2020. The exchange rates were according to the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. Fluctuations in financial highlights are based on RMB amounts.

About Ambow Education Holding Ltd.

Ambow Education Holding Ltd. is a leading cross-border career educational and technology service provider, offering high-quality, individualized services and products. With its extensive network of regional service hubs complemented by a dynamic proprietary learning platform and distributors, Ambow provides its services and products to students in China and the United States of America.

Follow us on Twitter: @Ambow_Education

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements.  Among other things, the outlook and quotations from management in this announcement, as well as Ambow's strategic and operational plans, contain forward-looking statements. Ambow may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements, including but not limited to the following: the Company's goals and strategies, expansion plans, the expected growth of the content and application delivery services market, the Company's expectations regarding keeping and strengthening its relationships with its customers, the general economic and business conditions in the regions where the Company provides its solutions and services, and continued compliance with governmental regulations regarding education industry in the People's Republic of China and any other jurisdiction in which the Company conducts its operations. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Ambow undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries please contact:

Ambow Education Holding Ltd.
Tel: +86-10-6206-8000

The Piacente Group | Investor Relations
Tel: +1-212-481-2050 or +86-10-6508-0677
E-mail: ambow@tpg-ir.com 

 

 

 

AMBOW EDUCATION HOLDING LTD. AUDITED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share and per share data)
			As of December 31,				As of December 31,
			2021				2020
			US$		RMB		RMB
ASSETS
Current assets:
Cash and cash equivalents			24,699		157,399		118,821
Restricted cash			286		1,823		824
Short-term investments, available for sale			2,474		15,764		117,854
Short-term investments, held to maturity			314		2,000		45,000
Accounts receivable, net			4,018		25,602		20,972
Amounts due from related parties			487		3,103		3,024
Prepaid and other current assets, net			17,244		109,890		117,634
Assets classified as held for sale			20,827		132,724		-
Total current assets			70,349		448,305		424,129
Non-current assets:
Property and equipment, net			15,993		101,915		144,492
Land use rights, net			-		-		1,715
Intangible assets, net			4,705		29,986		54,808
Goodwill			3,438		21,907		25,710
Deferred tax assets, net			5		31		6,338
Operating lease right-of-use asset			34,586		220,404		247,608
Finance lease right-of-use asset			824		5,250		5,850
Other non-current assets			22,340		142,364		139,067
Total non-current assets			81,891		521,857		625,588
Total assets			152,240		970,162		1,049,717
LIABILITIES
Current liabilities:
Short-term borrowings  *			1,585		10,103		10,000
Deferred revenue  *			14,913		95,036		163,699
Accounts payable  *			4,625		29,466		19,423
Accrued and other liabilities  *			33,958		216,399		209,590
Income taxes payable, current  *			18,256		116,341		184,638
Amounts due to related parties  *			595		3,793		2,543
Operating lease liability, current  *			7,677		48,923		53,702
Liabilities classified as held for sale  *			13,050		83,161		-
Total current liabilities			94,659		603,222		643,595
Non-current liabilities:
Long-term borrowing			-		-		9,594
Other non-current liabilities  *			15		96		292
Income taxes payable, non-current  *			3,370		21,475		34,763
Operating lease liability, non-current  *			31,178		198,687		220,319
Total non-current liabilities			34,563		220,258		264,968
Total liabilities			129,222		823,480		908,563
EQUITY
Preferred shares
(US$ 0.003 par value;1,666,667 shares authorized, nil issued and outstanding as of December 31, 2021 and December 31, 2020)			-		-		-
Class A Ordinary shares
(US$0.003 par value; 66,666,667 and 66,666,667 shares authorized, 41,973,276 and 41,960,776 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively)			125		795		794
Class C Ordinary shares
(US$0.003 par value; 8,333,333 and 8,333,333 shares authorized, 4,708,415 and 4,708,415 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively)			14		90		90
Additional paid-in capital			556,438		3,545,955		3,545,073
Statutory reserve			602		3,837		4,210
Accumulated deficit			(536,009)		(3,415,771)		(3,419,146)
Accumulated other comprehensive income			1,772		11,291		12,101
Total Ambow Education Holding Ltd.'s equity			22,942		146,197		143,122
Non-controlling interests			76		485		(1,968)
Total equity			23,018		146,682		141,154
Total liabilities and equity			152,240		970,162		1,049,717
*  All of the VIE's assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets.

 

 

 

AMBOW EDUCATION HOLDING LTD. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (All amounts in thousands, except for share and per share data)
	For the nine months ended September 30,						For the three months ended September 30,
	2021		2021		2020		2021		2021		2020
	US$		RMB		RMB		US$		RMB		RMB
NET REVENUES
Educational programs and      services	58,551		377,268		358,098		11,820		76,164		112,439
Intelligent programs and      services	117		752		352		-		-		269
Total net revenues	58,668		378,020		358,450		11,820		76,164		112,708
COST OF REVENUES
Educational programs and      services	(39,177)		(252,431)		(277,683)		(11,338)		(73,056)		(105,359)
Intelligent programs and      services	(343)		(2,211)		(2,340)		(44)		(281)		(882)
Total cost of revenues	(39,520)		(254,642)		(280,023)		(11,382)		(73,337)		(106,241)
GROSS PROFIT	19,148		123,378		78,427		438		2,827		6,467
Operating expenses:
Selling and marketing	(5,983)		(38,554)		(37,861)		(2,193)		(14,132)		(13,655)
General and administrative	(19,115)		(123,165)		(127,230)		(5,868)		(37,808)		(42,987)
Research and development	(1,531)		(9,864)		(4,456)		(661)		(4,262)		(1,758)
Impairment loss	(1,633)		(10,525)		(36,699)		(1,633)		(10,525)		(36,699)
Total operating expenses	(28,262)		(182,108)		(206,246)		(10,355)		(66,727)		(95,099)
OPERATING LOSS	(9,114)		(58,730)		(127,819)		(9,917)		(63,900)		(88,632)
OTHER INCOME     (EXPENSES)
Interest income	948		6,108		7,150		326		2,100		3,015
Foreign exchange gain (loss),     net	32		206		31		-		3		(4)
Other income (loss), net	257		1,655		840		440		2,835		(712)
Gain from deregistration of     subsidiaries	206		1,325		3,967		-		-		70
Gain on disposal of     subsidiaries	1,675		10,792		752		1,675		10,792		752
Gain on the bargain purchase	-		-		40,273		-		-		-
Gain on forgiven PPP loan	1,444		9,305		-		1,444		9,305		-
Gain on sale of investment     available for sale	341		2,196		2,477		151		975		1,421
Total other income	4,903		31,587		55,490		4,036		26,010		4,542
LOSS BEFORE INCOME     TAX AND NON-     CONTROLLING     INTEREST	(4,211)		(27,143)		(72,329)		(5,881)		(37,890)		(84,090)
Income tax benefit (expense)	10,293		66,325		(2,399)		10,783		69,480		(776)
NET INCOME (LOSS)	6,082		39,182		(74,728)		4,902		31,590		(84,866)
Less: Net loss attributable to     non-controlling interest	(127)		(821)		(1,040)		(47)		(302)		(332)
NET INCOME (LOSS)     ATTRIBUTABLE TO      ORDINARY     SHAREHOLDERS	6,209		40,003		(73,688)		4,949		31,892		(84,534)
NET INCOME (LOSS)	6,082		39,182		(74,728)		4,902		31,590		(84,866)
OTHER     COMPREHENSIVE       (LOSS) INCOME, NET     OF TAX
Foreign currency translation     adjustments	(42)		(271)		10,731		23		146		2,403
Unrealized gains on short term     investments
Unrealized holding gains     arising during period	217		1,397		1,518		50		322		578
Less: reclassification     adjustment for gains     included in net income	241		1,556		2,161		109		704		1,493
Other comprehensive (loss)     income	(66)		(430)		10,088		(36)		(236)		1,488
TOTAL     COMPREHENSIVE     INCOME (LOSS)	6,016		38,752		(64,640)		4,866		31,354		(83,378)
Net income (loss) per share –     basic and diluted	0.13		0.86		(1.69)		0.11		0.68		(1.94)
Weighted average shares used     in calculating basic and     diluted net income (loss)     per share	43,648,571		46,648,571		43,583,448		46,660,948		46,660,948		43,595,871

 

 

 

AMBOW EDUCATION HOLDING LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (All amounts in thousands, except for share and per share data)
	For the years ended December 31,						For the three months ended December 31,
	2021		2021		2020		2021		2021		2020
	US$		RMB		RMB		US$		RMB		RMB
	Audited		Audited		Audited		Unaudited		Unaudited		Unaudited
NET REVENUES
Educational programs and      services	77,202		491,979		525,727		18,001		114,711		167,629
Intelligent programs and      services	769		4,898		6,253		651		4,146		5,901
Total net revenues	77,971		496,877		531,980		18,652		118,857		173,530
COST OF REVENUES
Educational programs and      services	(52,786)		(336,381)		(379,571)		(13,174)		(83,950)		(101,888)
Intelligent programs and      services	(499)		(3,177)		(7,919)		(152)		(966)		(5,579)
Total cost of revenues	(53,285)		(339,558)		(387,490)		(13,326)		(84,916)		(107,467)
GROSS PROFIT	24,686		157,319		144,490		5,326		33,941		66,063
Operating expenses:
Selling and marketing	(8,704)		(55,468)		(52,355)		(2,654)		(16,914)		(14,494)
General and administrative	(26,676)		(169,994)		(174,283)		(7,348)		(46,829)		(47,053)
Research and development	(2,273)		(14,487)		(5,703)		(725)		(4,623)		(1,247)
Impairment loss	(1,652)		(10,525)		(36,699)		-		-		-
Total operating expenses	(39,305)		(250,474)		(269,040)		(10,727)		(68,366)		(62,794)
OPERATING (LOSS)  INCOME	(14,619)		(93,155)		(124,550)		(5,401)		(34,425)		3,269
OTHER INCOME    (EXPENSES)
Interest income	1,408		8,971		9,501		449		2,863		2,351
Foreign exchange gain, net	35		223		980		3		17		949
Other income (loss), net	260		1,657		(1,244)		-		2		(2,084)
Gain from derecognition of      liabilities	-		-		3,926		-		-		3,926
Gain from deregistration of      subsidiaries	208		1,325		3,967		-		-		-
Gain on disposal of     subsidiaries	1,908		12,158		752		214		1,366		-
Gain on the bargain purchase	-		-		40,273		-		-		-
Gain on forgiven PPP loan	1,460		9,305		-		-		-		-
Gain on sale of investment      available for sale	378		2,412		3,476		34		216		999
Total other income	5,657		36,051		61,631		700		4,464		6,141
LOSS BEFORE INCOME     TAX AND NON-     CONTROLLING     INTEREST	(8,962)		(57,104)		(62,919)		(4,701)		(29,961)		9,410
Income tax benefit (expense)	9,275		59,108		(1,062)		(1,133)		(7,217)		1,337
NET INCOME (LOSS)	313		2,004		(63,981)		(5,834)		(37,178)		10,747
Less: Net loss attributable to      non-controlling interest	(157)		(998)		(1,269)		(28)		(177)		(229)
NET INCOME (LOSS)     ATTRIBUTABLE TO     ORDINARY     SHAREHOLDERS	470		3,002		(62,712)		(5,806)		(37,001)		10,976
NET INCOME (LOSS)	313		2,004		(63,981)		(5,834)		(37,178)		10,747
OTHER     COMPREHENSIVE     INCOME (LOSS), NET     OF TAX
Foreign currency translation     adjustments	(112)		(711)		6,234		(69)		(440)		(4,497)
Unrealized gains on short term     investments
Unrealized holding gains     arising during period	237		1,513		2,458		18		116		940
Less: reclassification     adjustment for gains     included in net income	253		1,612		2,932		9		56		771
Other comprehensive (loss)     income	(128)		(810)		5,760		(60)		(380)		(4,328)
TOTAL     COMPREHENSIVE     INCOME (LOSS)	185		1,194		(58,221)		(5,894)		(37,558)		6,419
Net income (loss) per share –     basic and diluted	0.01		0.06		(1.41)		(0.12)		(0.79)		0.23
Weighted average shares used     in calculating basic and     diluted net income (loss)     per share	46,654,853		46,654,853		44,372,326		46,673,494		46,673,494		46,721,812

 

 

 

AMBOW EDUCATION HOLDING LTD.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(All amounts in thousands, except for share and per share data)
		Attributable to Ambow Education Holding Ltd.'s Equity
																Accumulated
		Class A Ordinary				Class C Ordinary				Additional						other		Non-
		shares				shares				paid-in		Statutory		Accumulated		comprehensive		controlling		Total
		Shares		Amount		Shares		Amount		capital		reserves		deficit		income		interest		Equity
				RMB				RMB		RMB		RMB		RMB		RMB		RMB		RMB
Balance as of January 1, 2021		41,923,276		794		4,708,415		90		3,545,073		4,210		(3,419,146)		12,101		(1,968)		141,154
Share-based compensation		-		-		-		-		219		-		-		-		-		219
Issuance of ordinary shares for restricted    stock award		12,500		0		-		-		(0)		-		-		-		-		-
Foreign currency translation adjustment		-		-		-		-		-		-		-		115		-		115
Unrealized gain on investment, net of    income taxes		-		-		-		-		-		-		-		38		-		38
Net loss		-		-		-		-		-		-		(14,329)		-		(242)		(14,571)
Balance as of March 31, 2021		41,935,776		794		4,708,415		90		3,545,292		4,210		(3,433,475)		12,254		(2,210)		126,955
Share-based compensation		-		-		-		-		220		-		-		-		-		220
Issuance of ordinary shares for restricted    stock award		12,500		0		-		-		(0)		-		-		-		-		-
Foreign currency translation adjustment		-		-		-		-		-		-		-		(532)		-		(532)
Unrealized gain on investment, net of    income taxes		-		-		-		-		-		-		-		185		-		185
Net income/(loss)		-		-		-		-		-		-		22,440		-		(277)		22,163
Balance as of June 30, 2021		41,948,276		794		4,708,415		90		3,545,512		4,210		(3,411,035)		11,907		(2,487)		148,991
Share-based compensation		-		-		-		-		224		-		-		-		-		224
Issuance of ordinary shares for restricted    stock award		12,500		1		-		-		(1)		-		-		-		-		-
Foreign currency translation adjustment		-		-		-		-		-		-		-		146		-		146
Unrealized gain on investment, net of    income taxes		-		-		-		-		-		-		-		(382)		-		(382)
Capital injection from minority    shareholders		-		-		-		-		-		-		-		-		100		100
Deregistration of subsidiaries		-		-		-		-		-		(373)		373		-		3,351		3,351
Net income/(loss)		-		-		-		-		-		-		31,892		-		(302)		31,590
Balance as of September 30, 2021		41,960,776		795		4,708,415		90		3,545,735		3,837		(3,378,770)		11,671		662		184,020
Share-based compensation		-		-		-		-		220		-		-		-		-		220
Issuance of ordinary shares for restricted    stock award		12,500		0		-		-		(0)		-		-		-		-		-
Foreign currency translation adjustment		-		-		-		-		-		-		-		(440)		-		(440)
Unrealized gain on investment, net of     income taxes		-		-		-		-		-		-		-		60		-		60
Net loss		-		-		-		-		-		-		(37,001)		-		(177)		(37,178)
Balance as of December 31, 2021		41,973,276		795		4,708,415		90		3,545,955		3,837		(3,415,771)		11,291		485		146,682
		Attributable to Ambow Education Holding Ltd.'s Equity
																Accumulated
		Class A Ordinary				Class C Ordinary				Additional						other		Non-
		shares				shares				paid-in		Statutory		Accumulated		comprehensive		controlling		Total
		Shares		Amount		Shares		Amount		capital		reserves		deficit		income		interest		Equity
				RMB				RMB		RMB		RMB		RMB		RMB		RMB		RMB
Balance as of January 1, 2020		38,858,199		730		4,708,415		90		3,508,745		20,185		(3,371,815)		6,341		(680)		163,596
Share-based compensation		-		-		-		-		238		-		-		-		-		238
Issuance of ordinary shares for restricted    stock award		12,500		0		-		-		(0)		-		-		-		-		-
Foreign currency translation adjustment		-		-		-		-		-		-		-		433		-		433
Unrealized gain on investment, net of    income taxes		-		-		-		-		-		-		-		154		-		154
Impact on adoption of ASC 326		-		-		-		-		-		-		(594)		-		-		(594)
Net income/(loss)		-		-		-		-		-		-		6,039		-		(412)		5,627
Balance as of March 31, 2020		38,870,699		730		4,708,415		90		3,508,983		20,185		(3,366,370)		6,928		(1,092)		169,454
Share-based compensation		-		-		-		-		242		-		-		-		-		242
Issuance of ordinary shares for restricted    stock award		12,500		1		-		-		(1)		-		-		-		-		-
Foreign currency translation adjustment		-		-		-		-		-		-		-		7,895		-		7,895
Unrealized gain on investment, net of    income taxes		-		-		-		-		-		-		-		118		-		118
Deregistration of subsidiaries		-		-		-		-		-		(15,473)		15,473		-		-		-
Net income/(loss)		-		-		-		-		-		-		4,807		-		(296)		4,511
Balance as of June 30, 2020		38,883,199		731		4,708,415		90		3,509,224		4,712		(3,346,090)		14,941		(1,388)		182,220
Share-based compensation		-		-		-		-		239		-		-		-		-		239
Issuance of ordinary shares for restricted     stock award		12,501		0		-		-		(0)		-		-		-		-		-
Foreign currency translation adjustment		-		-		-		-		-		-		-		2,403		-		2,403
Unrealized gain on investment, net of    income taxes		-		-		-		-		-		-		-		(915)		-		(915)
Deregistration of subsidiaries		-		-		-		-		-		-		-		-		(16)		(16)
Disposal of subsidiaries		-		-		-		-		(133)		(502)		502		-		-		(133)
Net loss		-		-		-		-		-		-		(84,534)		-		(332)		(84,866)
Balance as of September 30, 2020		38,895,700		731		4,708,415		90		3,509,330		4,210		(3,430,122)		16,429		(1,736)		98,932
Share-based compensation		-		-		-		-		228		-		-		-		-		228
Issuance of ordinary shares for restricted    stock award		12,500		0		-		-		(0)		-		-		-		-		-
Issuance of ordinary shares in a    registered direct offering		3,015,076		63		-		-		35,515		-		-		-		-		35,578
Foreign currency translation adjustment		-		-		-		-		-		-		-		(4,497)		-		(4,497)
Unrealized gain on investment, net of    income taxes		-		-		-		-		-		-		-		169		-		169
Deregistration of subsidiaries		-		-		-		-		-		-		-		-		(3)		(3)
Net income/(loss)		-		-		-		-		-		-		10,976		-		(229)		10,747
Balance as of December 31, 2020		41,923,276		794		4,708,415		90		3,545,073		4,210		(3,419,146)		12,101		(1,968)		141,154

 

 

 

Discussion of Segment Operations (All amounts in thousands)
	For the nine months ended September 30,						For the three months ended September 30,
	2021		2021		2020		2021		2021		2020
	US$		RMB		RMB		US$		RMB		RMB
NET REVENUES
K-12 Schools	32,424		208,922		185,766		5,164		33,272		58,966
CP&CE Programs	26,244		169,098		172,684		6,656		42,892		53,742
Total net revenues	58,668		378,020		358,450		11,820		76,164		112,708
COST OF REVENUES
K-12 Schools	(20,692)		(133,330)		(119,972)		(5,501)		(35,444)		(45,430)
CP&CE Programs	(18,828)		(121,312)		(160,051)		(5,881)		(37,893)		(60,811)
Total cost of revenues	(39,520)		(254,642)		(280,023)		(11,382)		(73,337)		(106,241)
GROSS PROFIT
K-12 Schools	11,732		75,592		65,794		(337)		(2,172)		13,536
CP&CE Programs	7,416		47,786		12,633		775		4,999		(7,069)
Total gross profit	19,148		123,378		78,427		438		2,827		6,467
	For the years ended December 31,						For the three months ended December 31,
	2021		2021		2020		2021		2021		2020
	US$		RMB		RMB		US$		RMB		RMB
NET REVENUES
K-12 Schools	42,426		270,362		291,539		9,642		61,440		105,773
CP&CE Programs	35,545		226,515		240,441		9,010		57,417		67,757
Total net revenues	77,971		496,877		531,980		18,652		118,857		173,530
COST OF REVENUES
K-12 Schools	(27,067)		(172,489)		(188,628)		(6,145)		(39,159)		(68,656)
CP&CE Programs	(26,218)		(167,069)		(198,862)		(7,181)		(45,757)		(38,811)
Total cost of revenues	(53,285)		(339,558)		(387,490)		(13,326)		(84,916)		(107,467)
GROSS PROFIT
K-12 Schools	15,359		97,873		102,911		3,497		22,281		37,117
CP&CE Programs	9,327		59,446		41,579		1,829		11,660		28,946
Total gross profit	24,686		157,319		144,490		5,326		33,941		66,063

 

 

 

View original content:https://www.prnewswire.com/news-releases/ambow-education-announces-second-half-and-full-year-2021-financial-results-301537764.html

SOURCE Ambow Education Holding Ltd.

FAQ

What were Ambow's total revenues for the fiscal year 2021?

Ambow reported total revenues of RMB 496.9 million (US$ 78.0 million) for the fiscal year 2021.

How did Ambow's net income change in 2021?

Ambow's net income attributable to ordinary shareholders was RMB 3.0 million (US$ 0.5 million) in 2021, up from a net loss of RMB 62.7 million in 2020.

What were the reasons for the decline in Ambow's revenues in 2021?

The decline in revenues was primarily due to the 2021 Implementing Rules affecting the company's K-12 business.

What is the current cash position of Ambow as of December 31, 2021?

Ambow maintained cash resources of RMB 177.0 million (US$ 27.8 million) as of December 31, 2021.

How did Ambow perform in the fourth quarter of 2021?

In Q4 2021, Ambow's revenues were RMB 118.9 million (US$ 18.7 million), a decline of 31.5% compared to Q4 2020.