Ambow Education Announces Second Half and Full-Year 2022 Financial Results
Unveils Strategy to Lead Emerging Hybrid Education Market
"During the second half of 2022, we completed the sale of our overseas assets and transitioned our business operations to the
"In 2023, we will continue to build out our
[1] Financial results for the second half of 2022 have not been audited or reviewed by the Company's independent registered accounting firm. |
[2] Financial results for the full fiscal year ended |
Ambow Provides Update on Strategic Operations in the
Ambow is wholly dedicated to offering connective technology that can dramatically decrease the historical barriers between online and offline education, languages, regions, academia and industry. During the second half of 2022, the Company transitioned its business to an exclusive focus on operations in the
Designed to address the specific needs of colleges, universities and corporations across the world, HybriU empowers these institutions to convert traditional teaching and training facilities into hybrid classrooms and laboratories in a scalable, affordable manner. The platform provides instant AI translation, simultaneous content creation and SaaS-based right-fit IT solutions. To date, HybriU has been deployed at Ambow's fully owned and operated
Ambow is targeting deployment of its HybriU solution in large
Ambow believes HybriU's connective technology will be invaluable in decreasing the traditional barriers that have existed between students and employees from different regional and linguistic backgrounds, and that it will help to facilitate a global transition toward hybrid education and training, where Ambow is ideally positioned to lead this growing revolution.
Fourth Quarter 2022 Financial Highlights
- Net revenues from continuing operations in the fourth quarter of 2022 were
RMB 22.6 million (US ), compared with$ 3.3 million RMB 29.7 million (US ) in the same period of 2021. The decrease was primarily driven by lower student enrollment.$ 4.7 million - Gross loss from continuing operations in the fourth quarter of 2022 was
RMB 5.2 million (US ), compared with gross profit of$ 0.8 million RMB 2.0 million (US ) in the same period of 2021. Gross profit margin was negative$ 0.3 million 23.2% , compared with positive6.8% in the fourth quarter of 2021. The decrease in gross profit was mainly attributable to the decrease in net revenues due to lower student enrollment during the period. - Operating expenses from continuing operations in the fourth quarter of 2022 decreased by
79.8% toRMB 5.2 million (US ) from$ 0.8 million RMB 25.7 million (US ) in the same period of 2021. The decrease was primarily due to stringent expense controls to improve operating efficiency, primarily driven by decreased rental expense associated with college campus during the period.$ 4.0 million - Operating loss from continuing operations in the fourth quarter of 2022 improved to
RMB 10.4 million (US ), compared with a loss of$ 1.5million RMB 23.6 million (US ) in the same period of 2021.$ 3.7 million - Net loss attributable to the Company's ordinary shareholders from continuing operations improved to
RMB 6.1 million (US ), or$ 0.9 million RMB 0.12 (US ) per basic and diluted share, compared with a loss of$ 0.02 RMB 23.2 million (US ), or$ 3.7 million RMB 0.50 (US ) per basic and diluted share, in the same period of 2021.$ 0.08
Full Fiscal Year 2022 Financial Highlights
- Net revenues from continuing operations in fiscal year 2022 decreased by
9.8% toRMB 102.4 million (US ) from$ 14.8 million RMB 113.5 million (US ) in 2021. The decrease was primarily driven by lower student enrollment.$ 17.8 million - Gross loss from continuing operations in fiscal year 2022 was
RMB 0.6 million (US ), decreasing from gross profit of$ 0.1 million RMB 12.4 million (US ) in 2021. The decrease in gross profit was mainly attributable to the decrease in net revenues due to lower student enrollment.$ 1.9 million - Operating expenses from continuing operations in fiscal year 2022 decreased by
3.7% toRMB 64.9 million (US ) from$ 9.4 million RMB 67.4 million (US ) in 2021. The decrease was primarily attributable to lower selling and marketing expense due to decreased marketing activities as the Company transitioned its business operations to the$ 10.6 million U.S. , and the enactment of strict expense control measures. The decrease was partially offset by increased general and administrative expense due to the grant of restricted shares to senior management, as well as the impairment loss during the period. - Operating loss from continuing operations in fiscal year 2022 was
RMB 65.4 million (US ), compared to an operating loss of$ 9.5 million RMB 55.0 million (US ) in 2021.$ 8.6 million - Net loss attributable to the Company's ordinary shareholders from continuing operations was
RMB 63.8 million (US ), or$ 9.3 million RMB 1.29 (US ) per basic and diluted share, compared with a loss of$ 0.19 RMB 42.6 million (US ), or$ 6.7 million RMB 0.91 (US ) per basic and diluted share in 2021.$ 0.14 - As of
December 31, 2022 , Ambow maintained strong cash resources ofRMB 52.9 million (US ), comprised of cash and cash equivalents of$ 7.7 million RMB 22.8 million (US ) and restricted cash of$ 3.3 million RMB 30.1 million (US ).$ 4.4 million
Subsequent Events
On
On
As part of Ambow's strategic initiatives, the Company expects its future growth to be powered by the integration of its Hybri-U learning platform within higher-education institutions and corporate learning markets that it is targeting across the
Exchange Rate Information
This announcement contains conversions of certain RMB amounts into
About Ambow
Follow us on Twitter: @Ambow_Education
Safe Harbor Statement
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the
For more information, please contact:
Email: ir@ambow.com
jgriffin@rasky.com
Tel: +1-212-481-2050 or +86-10-6508-0677
E-mail: ambow@tpg-ir.com
CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share and per share data) | ||||||||
As of | As of | |||||||
2022 | 2021 | |||||||
US$ | RMB | RMB | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 3,308 | 22,819 | 26,753 | |||||
Restricted cash | 4,362 | 30,084 | - | |||||
Accounts receivable, net | 1,983 | 13,679 | 11,961 | |||||
Prepaid and other current assets | 6,171 | 42,560 | 6,261 | |||||
Current assets of discontinued operations | - | - | 335,135 | |||||
Total current assets | 15,824 | 109,142 | 380,110 | |||||
Non-current assets: | ||||||||
Property and equipment, net | 276 | 1,906 | 2,654 | |||||
Intangible assets, net | 537 | 3,703 | 7,790 | |||||
Operating lease right-of-use asset | 6,909 | 47,653 | 146,732 | |||||
Other non-current assets | 1,970 | 13,587 | 18,832 | |||||
Non-current assets of discontinued operations | - | - | 414,044 | |||||
Total non-current assets | 9,692 | 66,849 | 590,052 | |||||
Total assets | 25,516 | 175,991 | 970,162 | |||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Short-term borrowings | 3,029 | 20,894 | 103 | |||||
Deferred revenue | - | - | 5,403 | |||||
Accounts payable | 2,393 | 16,505 | 18,143 | |||||
Accrued and other liabilities | 3,737 | 25,773 | 17,738 | |||||
Income taxes payable, current | 528 | 3,645 | 3,337 | |||||
Operating lease liability, current | 2,218 | 15,299 | 27,584 | |||||
Current liabilities of discontinued operations | - | - | 526,345 | |||||
Total current liabilities | 11,905 | 82,116 | 598,653 | |||||
Non-current liabilities: | ||||||||
Operating lease liability, non-current | 5,744 | 39,616 | 123,804 | |||||
Non-current liabilities of discontinued operations | - | - | 101,023 | |||||
Total non-current liabilities | 5,744 | 39,616 | 224,827 | |||||
Total liabilities | 17,649 | 121,732 | 823,480 | |||||
EQUITY | ||||||||
Preferred shares | ||||||||
( | - | - | - | |||||
Class A Ordinary shares | ||||||||
( | 131 | 903 | 795 | |||||
Class C Ordinary shares | ||||||||
( | 13 | 90 | 90 | |||||
Additional paid-in capital | 515,182 | 3,553,315 | 3,545,955 | |||||
Statutory reserve | - | - | 3,837 | |||||
Accumulated deficit | (508,757) | (3,509,002) | (3,415,771) | |||||
Accumulated other comprehensive income | 1,298 | 8,953 | 11,291 | |||||
7,867 | 54,259 | 146,197 | ||||||
Non-controlling interests | - | - | 485 | |||||
Total equity | 7,867 | 54,259 | 146,682 | |||||
Total liabilities and equity | 25,516 | 175,991 | 970,162 | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (All amounts in thousands, except for share and per share data) | |||||||||||||
For the three months ended | For the three months ended | ||||||||||||
2022 | 2022 | 2021 | 2022 | 2022 | 2021 | ||||||||
US$ | RMB | RMB | US$ | RMB | RMB | ||||||||
NET REVENUES | |||||||||||||
Educational program and | 2,351 | 16,727 | 16,916 | 3,274 | 22,582 | 29,688 | |||||||
COST OF REVENUES | |||||||||||||
Educational program and | (4,232) | (30,101) | (23,796) | (4,033) | (27,815) | (27,665) | |||||||
GROSS LOSS | (1,881) | (13,374) | (6,880) | (759) | (5,233) | 2,023 | |||||||
Operating expenses: | |||||||||||||
Selling and marketing | (283) | (2,012) | (4,477) | (95) | (656) | (8,009) | |||||||
General and administrative | (1,201) | (8,543) | (9,670) | (655) | (4,520) | (17,648) | |||||||
Impairment loss | (637) | (4,534) | - | - | - | - | |||||||
Total operating expenses | (2,121) | (15,089) | (14,147) | (750) | (5,176) | (25,657) | |||||||
OPERATING LOSS | (4,002) | (28,463) | (21,027) | (1,509) | (10,409) | (23,634) | |||||||
OTHER INCOME | |||||||||||||
Interest (expenses) income | (34) | (239) | 359 | 1 | 7 | 829 | |||||||
Foreign exchange (loss) gain, | - | (1) | (1) | - | 2 | (1) | |||||||
Other (expenses) income, net | (33) | (235) | (315) | 661 | 4,556 | (750) | |||||||
Gain on forgiven PPP loan | - | - | 9,305 | - | - | - | |||||||
Total other (expenses) income | (67) | (475) | 9,348 | 662 | 4,565 | 78 | |||||||
LOSS BEFORE INCOME | (4,069) | (28,938) | (11,679) | (847) | (5,844) | (23,556) | |||||||
Income tax benefit (expenses) | 1 | 8 | 3,322 | (33) | (231) | 316 | |||||||
LOSS FROM CONTINUING | (4,068) | (28,930) | (8,357) | (880) | (6,075) | (23,240) | |||||||
(Loss) Income from and on | (923) | (6,563) | 39,947 | 4,794 | 33,066 | (13,938) | |||||||
NET (LOSS) INCOME | (4,991) | (35,493) | 31,590 | 3,914 | 26,991 | (37,178) | |||||||
Less: Net loss attributable to | - | - | - | - | - | ||||||||
Less: Net loss attributable to | (35) | (250) | (302) | (29) | (202) | (177) | |||||||
NET LOSS ATTRIBUTABLE | (4,068) | (28,930) | (8,357) | (880) | (6,075) | (23,240) | |||||||
NET (LOSS) INCOME | (888) | (6,313) | 40,249 | 4,823 | 33,268 | (13,761) | |||||||
NET (LOSS) INCOME | (4,956) | (35,243) | 31,892 | 3,943 | 27,193 | (37,001) | |||||||
OTHER | |||||||||||||
Foreign currency translation | (278) | (1,979) | 147 | 104 | 720 | (440) | |||||||
Unrealized (loss) gain on short | - | - | (382) | - | - | 60 | |||||||
Other comprehensive (loss) | (278) | (1,979) | (235) | 104 | 720 | (380) | |||||||
TOTAL | (5,269) | (37,472) | 31,355 | 4,018 | 27,711 | (37,558) | |||||||
Net loss from continuing | (0.08) | (0.56) | (0.18) | (0.02) | (0.12) | (0.50) | |||||||
Net (loss) income from | (0.02) | (0.12) | 0.86 | 0.09 | 0.64 | (0.29) | |||||||
Weighted average shares used | 52,110,948 | 52,110,948 | 46,660,948 | 52,127,524 | 52,127,524 | 46,673,494 | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (All amounts in thousands, except for share and per share data) | ||||||||||
For the years ended | ||||||||||
2022 | 2022 | 2021 | ||||||||
US$ | RMB | RMB | ||||||||
NET REVENUES | ||||||||||
Educational program and services | 14,840 | 102,352 | 113,534 | |||||||
COST OF REVENUES | ||||||||||
Educational program and services | (14,924) | (102,933) | (101,138) | |||||||
GROSS (LOSS) PROFIT | (84) | (581) | 12,396 | |||||||
Operating expenses: | ||||||||||
Selling and marketing | (1,487) | (10,256) | (19,968) | |||||||
General and administrative | (7,260) | (50,074) | (47,436) | |||||||
Impairment loss | (657) | (4,534) | - | |||||||
Total operating expenses | (9,404) | (64,864) | (67,404) | |||||||
OPERATING LOSS | (9,488) | (65,445) | (55,008) | |||||||
OTHER INCOME (EXPENSES) | ||||||||||
Interest (expenses) income | (101) | (698) | 1,515 | |||||||
Other income (expenses), net | 500 | 3,451 | (1,657) | |||||||
Loss on disposal of subsidiaries | (163) | (1,124) | - | |||||||
Gain on forgiven PPP loan | - | - | 9,305 | |||||||
Total other income | 236 | 1,629 | 9,163 | |||||||
LOSS BEFORE INCOME TAX AND NON-CONTROLLING INTEREST | (9,252) | (63,816) | (45,845) | |||||||
Income tax benefit | - | - | 3,220 | |||||||
LOSS FROM CONTINUING OPERATIONS | (9,252) | (63,816) | (42,625) | |||||||
(Loss) Income from and on sale of discontinued operations, net of income tax | (5,056) | (34,871) | 44,629 | |||||||
NET (LOSS) INCOME | (14,308) | (98,687) | 2,004 | |||||||
Less: Net loss attributable to noncontrolling interests from continuing operations | - | - | - | |||||||
Less: Net loss attributable to noncontrolling interests from discontinued operations | (235) | (1,619) | (998) | |||||||
NET LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS FROM | (9,252) | (63,816) | (42,625) | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS | (4,821) | (33,252) | 45,627 | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO ORDINARY | (14,073) | (97,068) | 3,002 | |||||||
OTHER COMPREHENSIVE LOSS, NET OF TAX | ||||||||||
Foreign currency translation adjustments | (339) | (2,338) | (711) | |||||||
Unrealized loss on short term investments | - | - | (99) | |||||||
Other comprehensive loss | (339) | (2,338) | (810) | |||||||
TOTAL COMPREHENSIVE (LOSS) INCOME | (14,647) | (101,025) | 1,194 | |||||||
Net loss from continuing operations per share – basic and diluted | (0. 19) | (1. 29) | (0.91) | |||||||
Net (loss) income from discontinued operations per share – basic and diluted | (0.10) | (0.67) | 0.98 | |||||||
Weighted average shares used in calculating basic and diluted net (loss) income per | 49,458,266 | 49,458,266 | 46,654,853 | |||||||
View original content:https://www.prnewswire.com/news-releases/ambow-education-announces-second-half-and-full-year-2022-financial-results-301810106.html
SOURCE