/C O R R E C T I O N -- China Online Education Group/
In the news release, China Online Education Group Announces Full Year 2021 Results, issued 24-Mar-2022 by China Online Education Group over PR Newswire, we are advised by the company that there are some figures and words updates based on the original copy. The complete, corrected release follows:
China Online Education Group Announces Full Year 2021 Results
BEIJING, March 24, 2022 /PRNewswire/ -- China Online Education Group ("51Talk" or the "Company") (NYSE: COE), a leading online education platform in China, with core expertise in English education, announced its unaudited financial results for the third quarter ended September 30, 2021, as well as the fourth quarter and full year ended December 31, 2021.
Full Year 2021 Financial and Operating Highlights
- Net revenues were RMB2,166.5 million (US
$340.0 million ), a5.5% increase from RMB2,054.1 million for the full year 2020. - Gross margin was
74.2% , compared with71.7% for the full year 2020. - GAAP net income was RMB105.7 million(US
$16.6 million ), compared with GAAP net income RMB147.0 million for the full year 2020. - Non-GAAP net income1 was RMB132.7 million (US
$20.8million ), compared with non-GAAP net income RMB 173.7 million for the full year 2020. - Operating cash outflow was RMB676.1 million (US
$106.1 million ), compared with RMB719.2 million cash inflow for the full year 2020.
Fourth Quarter 2021 Financial and Operating Metrics
- Net revenues were RMB412.8 million (US
$64.8 million ), a22.9% decrease from RMB535.1 million for the fourth quarter of 2020. - Gross margin was
78.6% , compared with72.7% for the fourth quarter of 2020. - Net income was RMB52.0million (US
$8.2 million ), compared with net income of RMB31.8 million for the fourth quarter of 2020. - Non-GAAP net income was RMB55.0 million (US
$8.6 million ), compared with non-GAAP net income of RMB38.6 million for the fourth quarter of 2020. - Operating cash outflow was RMB268.6 million (US
$42.1 million ), compared with RMB188.5 million of operating cash inflow for the fourth quarter of 2020. - Cash, cash equivalents, restricted cash, time deposits and short-term investments balance stood at RMB992.6 million (US
$155.8 million ) as of December 31, 2021.
Third Quarter 2021 Financial and Operating Metrics
- Net revenues were RMB573.6 million (US
$90.0 million ), a6.5% increase from RMB538.5 million for the third quarter of 2020. - Gross margin was
73.5% , compared with72.8% for the third quarter of 2020. - Net income was RMB 72.7 million (US
$11.4 million ), compared with net income of RMB31.6 million for the third quarter of 2020. - Non-GAAP net income1 was RMB78.7 million (US
$12.3 million ), compared with non-GAAP net income of RMB38.5 million for the third quarter of 2020. - Operating cash outflow was RMB376.7 million (US
$59.1 million ), compared with RMB186.1 million of operating cash inflow for the third quarter of 2020. - Cash, cash equivalents, time deposits and short-term investments balance stood at RMB1,265.7 million (US
$198.6 million ) as of September 30, 2021.
Key Financial and Operating Data
For the three months ended | For the three months ended | For the year ended | ||||||||||||||||
Sep. | Sep. |
YoY | Dec. | Dec. |
YoY | Dec. | Dec. | YoY | ||||||||||
2020 | 2021 | % | 2020 | 2021 | % | 2020 | 2021 | % | ||||||||||
Net Revenues (in RMB millions) | 538.5 | 573.6 | 6.5 | 535.1 | 412.8 | -22.9 | 2,054.1 | 2,166.5 | 5.5 | |||||||||
Mainland China business | 538.5 | 572.4 | 6.3 | 535.1 | 408.1 | -23.8 | 2,054.1 | 2,160.5 | 5.2 | |||||||||
Overseas business | - | 1.2 | - | - | 4.8 | - | - | 6.0 | - | |||||||||
Active students with (in thousands) | 376.5 | 299.1 | 455.9 | |||||||||||||||
Active students with general (in thousands) | 338.0 | 406.2 | 20.2 | 353.8 | 363.8 | 2.8 | 470.7 | 483.5 | 2.7 | |||||||||
"In response to the changes in regulations related to After-School Tutoring ("AST") promulgated by the Chinese government, we have taken measures to restructure our business so that the Company's 2022 strategy will keenly focus on overseas business. In the fourth quarter, net gross billings of overseas business have reached
"As the overseas business momentum continue to build, we have extended our product offerings to students in more than 50 countries and regions outside Mainland China. We have been able to leverage our strength in high quality teacher resources, interactive curriculum, and advanced technology platform to quickly establish presence in a new market. We will stick with our business model which balances growth with profitability and was proven in Mainland China market. We are excited in exploring opportunities in oversea markets and allow our Filipino teachers to help more students to be able to talk to the world," concluded Mr. Huang.
[1] For more information on non-GAAP financial measures, please see the section of "Use of Non-GAAP Financial Measures" and the table captioned "Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures" set forth in this press release. |
[2] An "active student with attended lesson consumption" for a specified period refers to a student who attended at least one paid lesson, excluding those students who only attended paid live broadcasting lessons or trial lessons. |
[3] An "active student with general lesson consumption" for a specified period refers to a student who consumed at least one paid lesson credit, in attendance or due to minimum consumption or expiration,excluding those students who only attended paid live broadcasting lessons or trial lessons. |
Third Quarter 2021 Financial Results
Net Revenues
Net revenues for the third quarter of 2021 were RMB573.6 million (US
Cost of Revenues
Cost of revenues for the third quarter of 2021 was RMB151.9 million (US
Gross Profit and Gross Margin
Gross profit for the third quarter of 2021 was RMB421.8 million (US
Gross margin for the third quarter of 2021 was
Operating Expenses
Total operating expenses for the third quarter of 2021 were RMB369.3 million (US
Sales and marketing expenses for the third quarter of 2021 were RMB191.9 million (US
Product development expenses for the third quarter of 2021 were RMB40.7 million (US
General and administrative expenses for the third quarter of 2021 were RMB104.9 million (US
Goodwill and intangibles impairment for the third quarter of 2021 was RMB31.8 million (US
Other income
The exemption for the value added tax (VAT) of consumer services has been stopped as of March 31, 2021. This exemption, which covers a wide range of consumer services, was part of the Chinese government's effort to ease the burden of businesses affected by the COVID-19 pandemic. The income obtained by taxpayers from providing essential services shall be exempted from VAT. The favorable impact of such COVID-19 relief policies was nil and RMB7.6 million in the third quarter of 2021 and 2020 respectively.
On September 30, 2019, the Ministry of Finance and the State Taxation Administration announced that from October 1, 2019 to December 31, 2021, taxpayers engaging in the provision of essential services are allowed to deduct an extra
Income from Operations
Operating income for the third quarter of 2021 was RMB58.4 million (US
Non-GAAP operating income for the third quarter of 2021 was RMB64.4 million (US
Net income
Net income for the third quarter of 2021 was RMB72.7 million (US
Non-GAAP net income for the third quarter of 2021 was RMB78.7 million (US
Interest income for the third quarter of 2021 was negative RMB7.0 million, due to RMB15.0 million reversal of interest income accrual from the time-deposits early withdraw, partially offset by interest income of RMB8.0 million.
Income tax benefits for the third quarter of 2021 was RMB20.5 million.
Basic net income per share attributable to ordinary shareholders for the third quarter of 2021 was RMB0.22 (US
Non-GAAP basic net income per share attributable to ordinary shareholders for the third quarter of 2021 was RMB0.24 (US
Basic net income per American depositary share ("ADS") attributable to ordinary shareholders for the third quarter of 2021 was RMB3.28 (US
Non-GAAP basic net income per ADS attributable to ordinary shareholders for the third quarter of 2021 was RMB3.56 (US
Balance Sheet
As of September 30, 2021, the Company had total cash, cash equivalents, time deposits and short-term investments of RMB1,265.7 million (US
As of September 30, 2021, the Company has a consolidated net current liability of RMB919.9 million, compared with net current liability of RMB1,400.4 million as of December 31, 2020. The Company had advances from students[4] (current and non-current) of RMB2,262.5 million (US
[4] "Advances from students," which is defined as the amount of obligation to transfer good or service to students or business partners for which consideration has been received from students in advance. The deposits from students are also presented in the total amount of "advances from students". |
Fourth Quarter 2021 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2021 were RMB412.8 million (US
Cost of Revenues
Cost of revenues for the fourth quarter of 2021 was RMB 88.3 million (US
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2021 was RMB324.5 million (US
Gross margin for the fourth quarter of 2021 was
Operating Expenses
Total operating expenses for the fourth quarter of 2021 were RMB321.2 million (US
Sales and marketing expenses for the fourth quarter of 2021 were RMB235.8 million (US
Product development expenses for the fourth quarter of 2021 were RMB15.3 million (US
General and administrative expenses for the fourth quarter of 2021 were RMB69.7 million (US
Goodwill and intangibles impairment for the fourth quarter of 2021 was RMB0.4 million (US
Other income
The exemption for the VAT of consumer services has been stopped as of March 31, 2021. This exemption, which covers a wide range of consumer services, was part of the Chinese government's effort to ease the burden of businesses affected by the COVID-19 pandemic. The income obtained by taxpayers from providing essential services shall be exempted from VAT. The favorable impact of such COVID-19 relief policies was nil and RMB7.5 million in the fourth quarter of 2021 and 2020 respectively.
On December 31, 2019, the Ministry of Finance and the State Taxation Administration announced that from October 1, 2019 to December 31, 2021, taxpayers engaging in the provision of essential services are allowed to deduct an extra
Income from Operations
Operating income for the fourth quarter of 2021 was RMB3.9 million (US
Non-GAAP operating income for the fourth quarter of 2021 was RMB6.9 million (US
Net income
Net income for the fourth quarter of 2021 was RMB52.0 million (US
Non-GAAP net income for the fourth quarter of 2021 was RMB55.0 million (US
Income tax benefits for the fourth quarter of 2021 was RMB34.7 million.
Basic net income per share attributable to ordinary shareholders for the fourth quarter of 2021 was RMB0.16 (US
Non-GAAP basic net income per share attributable to ordinary shareholders for the fourth quarter of 2021 was RMB0.17 (US
Basic net income per ADS attributable to ordinary shareholders for the fourth quarter of 2021 was RMB2.34 (US
Non-GAAP basic net income per ADS attributable to ordinary shareholders for the fourth quarter of 2021 was RMB2.48 (US
Balance Sheet
As of December 31, 2021, the Company had total cash, cash equivalents,restricted cash, time deposits and short-term investments of RMB992.6 million (US
As of December 31, 2021, the Company has a consolidated net current liability of RMB944.4 million, compared with net current liability of RMB1,400.4 million as of December 31, 2020. The Company had advances from students (current and non-current) of RMB1,767.2 million (US
Full Year 2021 Financial Results
Net Revenues
Net revenues for 2021 were RMB2,166.5 million (US
Cost of Revenues
Cost of revenues for 2021 was RMB558.0 million (US
Gross Profit and Gross Margin
Gross profit for 2021 was RMB1,608.6 million (US
Gross margin for 2021 was
Operating Expenses
Total operating expenses for 2021 were RMB1,597.4 million (US
Sales and marketing expenses for 2021 were RMB1,062.5 million (US
Product development expenses for 2021 were RMB178.8 million (US
General and administrative expenses for 2021 were RMB324.0 million (US
Goodwill and intangibles impairment for 2021 was RMB32.2 million (US
Other income
As part of Chinese government's effort to ease the burden of businesses affected by the coronavirus (COVID-19) outbreak, the State Taxation Administration (STA) exempted a wide range of consumer services from VAT from January 2020. The income obtained by taxpayers from providing essential services shall be exempted from VAT. The favorable impact of coronavirus relief policies was RMB10.7 million and RMB32.3 million in 2021 and 2020, respectively.
On September 30, 2019, Ministry of Finance and the State Taxation Administration announced that from October 1,2019 to December 31, 2021, the taxpayers engaging in the provision of essential services are allowed to deduct an extra
Income from Operations
Operating income for 2021 was RMB34.4 million (US
Non-GAAP operating income for 2021 was RMB61.4 million (US
The favorable impact of coronavirus relief policies was RMB10.7 million in 2021. Excluding the favorable impact, operating income and non-GAAP operating income for 2021 would have been RMB23.7 million (US
Net income
Net income for 2021 was RMB105.7 million (US
Non-GAAP net income for 2021 was RMB132.7 million (US
The favorable impact of coronavirus relief policies was RMB10.7 million in 2021. Excluding the favorable impact, net income and non-GAAP net income for 2021 would have been RMB95.0 million (US
Income tax benefits for the fourth quarter of 2021 was RMB46.1 million.
Basic net income per ADS attributable to ordinary shareholders for 2021 was RMB4.82 (US
Non-GAAP basic net income per ADS attributable to ordinary shareholders for 2021 was RMB6.06 (US
The favorable impact of coronavirus relief policies was RMB10.7 million in 2021. Excluding the favorable impact, basic net income per ADS attributable to ordinary shareholders for 2021 was RMB4.33 (US
Outlook
For the first quarter of 2022, the Company currently expects net gross billings of oversea business to be between
The above outlook is based on current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.
In addition, the Company's future operational and financial performance depends on the future development of the implementation of the Opinion and the success of the Company's business adjustment plans, which is subject to inherent uncertainties at this time.
Conference Call
The Company's management will host an earnings conference call at 8:30 AM U.S. Eastern Time on March 24, 2022 (8:30 PM Beijing/Hong Kong time on March 24, 2022).
Dial-in details for the earnings conference call are as follows:
United States (toll free): | 1-800-239-9838 |
International: | 1-323-794-2551 |
Mainland China: | 400-120-9101 |
Hong Kong (toll free): | 800-961-105 |
Hong Kong: | 852-3008-1527 |
Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for "China Online Education Group."
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.51talk.com.
A replay of the conference call will be accessible until December3, 2021, by dialing the following telephone numbers:
United States (toll free): | 1-888-203-1112 |
International: | 1-719-457-0820 |
Replay Access Code: | 8412792 |
About China Online Education Group
China Online Education Group (NYSE: COE) is a leading online education platform in China, with core expertise in English education. The Company's mission is to make quality education accessible and affordable. The Company's online and mobile education platforms enable students to take live interactive English lessons, on demand. The Company connects its students with a large pool of highly qualified teachers that it assembled using a shared economy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students.
Use of Non-GAAP Financial Measures
In evaluating its business, 51Talk considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP sales and marketing expenses, non-GAAP product development expenses, non-GAAP general and administrative expenses, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to ordinary shareholders, and non-GAAP net income attributable to ordinary shareholders per share and per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this press release.
51Talk believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. 51Talk believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to 51Talk's historical performance. 51Talk computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. 51Talk believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation expenses that have been and will continue to be for the foreseeable future a significant recurring expense in the 51Talk's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying table at the end of this press release provides more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
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 translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to 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", "aims", "future", "intends", "plans", "believes", "estimates", "likely to" and similar statements. Among other things, 51Talk's quotations from management in this announcement, as well as 51Talk's strategic and operational plans, contain forward-looking statements. 51Talk may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including statements about 51Talk's beliefs and expectations, are forward-looking statements. 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 statement, including but not limited to the following: 51Talk's goals and strategies; 51Talk's expectations regarding demand for and market acceptance of its brand and platform; 51Talk's ability to retain and increase its student enrollment; 51Talk's ability to offer new courses; 51Talk's ability to engage, train and retain new teachers; 51Talk's future business development, results of operations and financial condition; 51Talk's ability to maintain and improve infrastructure necessary to operate its education platform; competition in the online education industry in China; the expected growth of, and trends in, the markets for 51Talk's course offerings in China; relevant government policies and regulations relating to 51Talk's corporate structure, business and industry; general economic and business condition in China, the Philippines and elsewhere and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in 51Talk's filings with the SEC. All information provided in this press release is as of the date of this press release, and 51Talk does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
CHINA ONLINE EDUCATION GROUP | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(In thousands) | ||||||||||||
As of | ||||||||||||
Dec. 31, | Sep.30, | Dec. 31, | Dec. 31, | |||||||||
2020 | 2021 | 2021 | 2021 | |||||||||
RMB | RMB | RMB | US$ | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 326,647 | 412,462 | 214,732 | 33,696 | ||||||||
Restricted cash | - | - | 50,550 | 7,932 | ||||||||
Time deposits | 477,408 | 212,436 | 48,437 | 7,601 | ||||||||
Short-term investments | 509,636 | 610,843 | 577,970 | 90,696 | ||||||||
Inventory | 1,935 | 1,656 | 1,080 | 169 | ||||||||
Prepaid expenses and other current | 302,057 | 295,309 | 72,450 | 11,369 | ||||||||
Total current assets | 1,617,683 | 1,532,706 | 965,219 | 151,463 | ||||||||
Non-current assets | ||||||||||||
Property and equipment, net | 21,175 | 28,973 | 17,017 | 2,670 | ||||||||
Intangible assets, net | 20,302 | 12,187 | 11,211 | 1,759 | ||||||||
Goodwill | 4,223 | - | - | - | ||||||||
Right-of-use assets | 98,001 | 57,312 | 36,907 | 5,792 | ||||||||
Time deposits | 414,000 | 30,000 | 100,868 | 15,828 | ||||||||
Deferred tax assets | 10,268 | 23,694 | 56,868 | 8,924 | ||||||||
Other non-current assets | 23,896 | 17,572 | 5,496 | 862 | ||||||||
Total non-current assets | 591,865 | 169,738 | 228,367 | 35,835 | ||||||||
Total assets | 2,209,548 | 1,702,444 | 1,193,586 | 187,298 | ||||||||
LIABILITIES | ||||||||||||
AND SHAREHOLDERS' DEFICIT | ||||||||||||
Current liabilities | ||||||||||||
Advances from students | 2,718,776 | 2,261,052 | 1,766,032 | 277,129 | ||||||||
Accrued expenses and other current | 237,101 | 139,860 | 96,205 | 15,097 | ||||||||
Lease liability | 42,949 | 25,680 | 19,400 | 3,044 | ||||||||
Taxes payable | 19,288 | 26,001 | 28,027 | 4,398 | ||||||||
Total current liabilities | 3,018,114 | 2,452,593 | 1,909,664 | 299,668 | ||||||||
Non-current liabilities | ||||||||||||
Advances from students | 2,270 | 1,438 | 1,126 | 177 | ||||||||
Lease liability | 53,594 | 33,894 | 19,340 | 3,035 | ||||||||
Other non-current liabilities | 2,508 | 2,723 | 1,547 | 243 | ||||||||
Total non-current liabilities | 58,372 | 38,055 | 22,013 | 3,455 | ||||||||
Total liabilities | 3,076,486 | 2,490,648 | 1,931,677 | 303,123 | ||||||||
Total shareholders' deficit | (866,938) | (788,204) | (738,091) | (115,825) | ||||||||
Total liabilities and shareholders' deficit | 2,209,548 | 1,702,444 | 1,193,586 | 187,298 | ||||||||
CHINA ONLINE EDUCATION GROUP | |||||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||
(In thousands except for number of shares and per share data) | |||||||||||||||||||||||||||||||
For the three months ended | For the year ended | ||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||
2020 | 2021 | 2021 | 2021 | 2020 | 2021 | 2021 | |||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||||||||
Net revenues | 535,074 | 573,621 | 412,773 | 64,773 | 2,054,095 | 2,166,549 | 339,979 | ||||||||||||||||||||||||
Cost of revenues | (146,134) | (151,852) | (88,276) | (13,852) | (580,417) | (557,974) | (87,558) | ||||||||||||||||||||||||
Gross profit | 388,940 | 421,769 | 324,497 | 50,921 | 1,473,678 | 1,608,575 | 252,421 | ||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||
Sales and marketing expenses | (284,493) | (191,909) | (235,838) | (37,008) | (1,035,620) | (1,062,523) | (166,733) | ||||||||||||||||||||||||
Product development | (44,577) | (40,735) | (15,260) | (2,395) | (162,829) | (178,750) | (28,050) | ||||||||||||||||||||||||
General and administrative | (56,626) | (104,907) | (69,681) | (10,934) | (214,224) | (323,968) | (50,838) | ||||||||||||||||||||||||
Goodwill and intangibles | - | (31,780) | (396) | (62) | - | (32,176) | (5,049) | ||||||||||||||||||||||||
Total operating expenses | (385,696) | (369,331) | (321,175) | (50,399) | (1,412,673) | (1,597,417) | (250,670) | ||||||||||||||||||||||||
Other income | 7,766 | 5,962 | 552 | 87 | 43,414 | 23,223 | 3,644 | ||||||||||||||||||||||||
Income from operations | 11,010 | 58,400 | 3,874 | 609 | 104,419 | 34,381 | 5,395 | ||||||||||||||||||||||||
Interest income | 11,711 | (6,972) | 5,735 | 900 | 38,508 | 21,120 | 3,314 | ||||||||||||||||||||||||
Interest expense and other | 193 | 785 | 7,683 | 1,206 | (66) | 4,014 | 630 | ||||||||||||||||||||||||
Income before income tax | 22,914 | 52,213 | 17,292 | 2,715 | 142,861 | 59,515 | 9,339 | ||||||||||||||||||||||||
Income tax benefits | 8,905 | 20,452 | 34,691 | 5,444 | 4,101 | 46,139 | 7,240 | ||||||||||||||||||||||||
Net income attributable to | 31,819 | 72,665 | 51,983 | 8,159 | 146,962 | 105,654 | 16,579 | ||||||||||||||||||||||||
Weighted average number of | 323,458,483 | 331,843,733 | 332,760,727 | 332,760,727 | 319,553,690 | 328,484,502 | 328,484,502 | ||||||||||||||||||||||||
Weighted average number of | 344,354,904 | 338,390,638 | 337,351,518 | 337,351,518 | 341,503,118 | 339,937,677 | 339,937,677 | ||||||||||||||||||||||||
CHINA ONLINE EDUCATION GROUP | |||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||||
(In thousands except for number of shares and per share data) | |||||||||||||||||||||||||
For the three months ended | For the year ended | ||||||||||||||||||||||||
Dec. 31, | Sep.30, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||
2020 | 2021 | 2021 | 2021 | 2020 | 2021 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Net income per share attributable to ordinary shareholders | |||||||||||||||||||||||||
Basic | 0.10 | 0.22 | 0.16 | 0.02 | 0.46 | 0.32 | 0.05 | ||||||||||||||||||
Diluted | 0.09 | 0.21 | 0.15 | 0.02 | 0.43 | 0.31 | 0.05 | ||||||||||||||||||
Net income per ADS attributable to ordinary shareholders | |||||||||||||||||||||||||
Basic | 1.48 | 3.28 | 2.34 | 0.37 | 6.90 | 4.82 | 0.76 | ||||||||||||||||||
Diluted | 1.39 | 3.22 | 2.31 | 0.36 | 6.46 | 4.66 | 0.73 | ||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||
Net income | 31,819 | 72,665 | 51,983 | 8,159 | 146,962 | 105,654 | 16,579 | ||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||
Foreign currency | (14,319) | (290) | (4,921) | (772) | (21,087) | (9,203) | (1,444) | ||||||||||||||||||
Total comprehensive income | 17,500 | 72,375 | 47,062 | 7,387 | 125,875 | 96,451 | 15,135 | ||||||||||||||||||
Share-based compensation expenses are included in the operating expenses as follows: | |||||||||||||||||||||||||
Sales and marketing | (1,875) | (872) | (394) | (62) | (8,835) | (6,186) | (971) | ||||||||||||||||||
Product development | (1,281) | (1,399) | 298 | 47 | (4,477) | (4,434) | (696) | ||||||||||||||||||
General and administrative | (3,636) | (3,759) | (2,933) | (460) | (13,422) | (16,430) | (2,578) | ||||||||||||||||||
CHINA ONLINE EDUCATION GROUP | |||||||||||||||||||||||
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures | |||||||||||||||||||||||
(In thousands except for number of shares and per share data) | |||||||||||||||||||||||
For the three months ended | For the year ended | ||||||||||||||||||||||
Dec. 31, | Sep.30, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||
2020 | 2021 | 2021 | 2021 | 2020 | 2021 | 2021 | |||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||
Sales and marketing expenses | (284,493) | (191,909) | (235,838) | (37,008) | (1,035,620) | (1,062,523) | (166,733) | ||||||||||||||||
Less: Share-based compensation expenses | (1,875) | (872) | (394) | (62) | (8,835) | (6,186) | (971) | ||||||||||||||||
Non-GAAP sales and marketing expenses | (282,618) | (191,037) | (235,444) | (36,946) | (1,026,785) | (1,056,337) | (165,762) | ||||||||||||||||
Product development expenses | (44,577) | (40,735) | (15,260) | (2,395) | (162,829) | (178,750) | (28,050) | ||||||||||||||||
Less: Share-based compensation expenses | (1,281) | (1,399) | 298 | 47 | (4,477) | (4,434) | (696) | ||||||||||||||||
Non-GAAP product development expenses | (43,296) | (39,336) | (15,558) | (2,442) | (158,352) | (174,316) | (27,354) | ||||||||||||||||
General and administrative expenses | (56,626) | (104,907) | (69,681) | (10,934) | (214,224) | (323,968) | (50,838) | ||||||||||||||||
Less: Share-based compensation expenses | (3,636) | (3,759) | (2,933) | (460) | (13,422) | (16,430) | (2,578) | ||||||||||||||||
Non-GAAP general and administrative | (52,990) | (101,148) | (66,748) | (10,474) | (200,802) | (307,538) | (48,260) | ||||||||||||||||
Goodwill and intangibles impairment | - | (31,780) | (396) | (62) | - | (32,176) | (5,049) | ||||||||||||||||
Less: Share-based compensation expenses | - | - | - | - | - | - | |||||||||||||||||
Non-GAAP goodwill and intangibles | - | (31,780) | (396) | (62) | - | (32,176) | (5,049) | ||||||||||||||||
Operating expenses | (385,696) | (369,331) | (321,175) | (50,399) | (1,412,673) | (1,597,417) | (250,670) | ||||||||||||||||
Less: Share-based compensation expenses | (6,792) | (6,030) | (3,029) | (475) | (26,734) | (27,050) | (4,245) | ||||||||||||||||
Non-GAAP operating expenses | (378,904) | (363,301) | (318,146) | (49,924) | (1,385,939) | (1,570,367) | (246,425) | ||||||||||||||||
Income from operations | 11,010 | 58,400 | 3,874 | 609 | 104,419 | 34,381 | 5,395 | ||||||||||||||||
Less: Share-based compensation expenses | (6,792) | (6,030) | (3,029) | (475) | (26,734) | (27,050) | (4,245) | ||||||||||||||||
Non-GAAP income from operations | 17,802 | 64,430 | 6,903 | 1,084 | 131,153 | 61,431 | 9,640 | ||||||||||||||||
CHINA ONLINE EDUCATION GROUP | ||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures | ||||||||||||||||||||||||||||
(In thousands except for number of shares and per share data) | ||||||||||||||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||||||||||||||
Dec. 31, | Sep.30, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2020 | 2021 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||||
Income tax benefits | 8,905 | 20,452 | 34,691 | 5,444 | 4,101 | 46,139 | 7,240 | |||||||||||||||||||||
Less: Tax impact of Share-based compensation | - | - | - | - | - | - | - | |||||||||||||||||||||
Non-GAAP income tax benefits | 8,905 | 20,452 | 34,691 | 5,444 | 4,101 | 46,139 | 7,240 | |||||||||||||||||||||
Net income attributable to ordinary shareholders | 31,819 | 72,665 | 51,983 | 8,159 | 146,962 | 105,654 | 16,579 | |||||||||||||||||||||
Add back: Share-based compensation expenses, net | 6,792 | 6,030 | 3,029 | 475 | 26,734 | 27,050 | 4,245 | |||||||||||||||||||||
Non-GAAP net income attributable to ordinary | 38,611 | 78,695 | 55,012 | 8,634 | 173,696 | 132,704 | 20,824 | |||||||||||||||||||||
Weighted average number of ordinary shares used | 323,458,483 | 331,843,733 | 332,760,727 | 332,760,727 | 319,553,690 | 328,484,502 | 328,484,502 | |||||||||||||||||||||
Weighted average number of ordinary shares used | 344,354,904 | 338,390,638 | 337,351,518 | 337,351,518 | 341,503,118 | 339,937,677 | 339,937,677 | |||||||||||||||||||||
Non-GAAP net income per share attributable to ordinary shareholders | ||||||||||||||||||||||||||||
basic | 0.12 | 0.24 | 0.17 | 0.03 | 0.54 | 0.40 | 0.06 | |||||||||||||||||||||
diluted | 0.11 | 0.23 | 0.16 | 0.03 | 0.51 | 0.39 | 0.06 | |||||||||||||||||||||
Non-GAAP net income per ADS attributable to ordinary shareholders | ||||||||||||||||||||||||||||
basic | 1.79 | 3.56 | 2.48 | 0.39 | 8.15 | 6.06 | 0.95 | |||||||||||||||||||||
diluted | 1.68 | 3.49 | 2.45 | 0.38 | 7.63 | 5.86 | 0.92 | |||||||||||||||||||||
View original content:https://www.prnewswire.com/news-releases/china-online-education-group-announces-full-year-2021-results-301509781.html
SOURCE China Online Education Group
