OneSmart International Education Group Limited Announces Unaudited Financial Results for the Fourth Fiscal Quarter and Fiscal Year Ended August 31, 2020
OneSmart International Education Group Limited (NYSE: ONE) reported its financial results for the fourth fiscal quarter and full year ended August 31, 2020. Net revenues for Q4 were RMB1,011 million, a 35.7% increase sequentially, while full-year revenues declined 13.9% to RMB3,439 million. Average monthly student enrollments rose by 6.8% sequentially in Q4, totaling 171,297. The company plans to continue its 'Go Premium' strategy, aiming for significant growth through high-end product offerings and expansion of learning centers. As of mid-November, cash sales for premium products accounted for 10% of total cash sales.
- Q4 net revenues increased 35.7% sequentially to RMB1,011 million.
- Average monthly student enrollments grew 6.8% sequentially in Q4.
- Plans to open 32 high-end flagship learning centers in FY21.
- Premium products accounted for 10% of total cash sales as of mid-November.
- FY2020 net revenues decreased 13.9% year-over-year.
- Operating loss for Q4 was RMB136.7 million, compared to income of RMB76.4 million in the prior year.
- Net loss attributable to OneSmart for FY2020 was RMB724.8 million.
Fourth Fiscal Quarter of Fiscal Year 2020 results:
- Cash sales totaled RMB1,048 million, a sequential increase of
45.3% - Net revenues totaled RMB1,011 million, a sequential increase of
35.7% , exceeding the high-end of the guided range of RMB900 million to RMB1.0 billion - Average monthly student enrollments totaled 171,297, a sequential increase of
6.8% and a year-over-year increase of8.0%
Fiscal Year 2020 results:
- Cash sales totaled RMB3,671 million
- Net revenues totaled RMB3,439 million
- Average monthly student enrollments totaled 170,995, up
8.0% from the prior year - 480 learning centers as of August 31,2020, increasing from 432 learning centers a year ago
SHANGHAI, Nov. 23, 2020 /PRNewswire/ -- OneSmart International Education Group Limited (NYSE: ONE) ("OneSmart" or the "Company"), the leading premium K-12 after-school tutoring service provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended August 31, 2020.
Highlights for the Fourth Fiscal Quarter Ended August 31, 2020
Recovered from COVID-19 lock-down, our learning centers gradually resumed offline operations and our students started to take offline classes since late May 2020.
- OneSmart VIP (the leading premium K-12 1-on-1 business in China): In the quarter, net revenues from OneSmart VIP business were RMB792 million, representing a sequential increase of
44.7% , accounting for78.3% of total net revenues in the quarter. Cash sales increased by50.7% sequentially, and new student acquisitions achieved79% sequential growth after our learning centers reopen. The average monthly student enrollments totaled 95,996, a sequential increase of11.0% . On a like-for-like basis for pure 1on1 program, cash sales grew by52.6% sequentially and7.1% year over year, and the average monthly student enrollments increased by14.8% sequentially. In the fiscal year 2020, we strategically upgraded part of our existing study rooms for Elite VIP 1on1 program, which is priced80% higher and expected to generate a higher margin. - OneSmart Young Children Education: HappyMath (premium young children math education business) and FasTrack English (premium young children English education business): Net revenues from OneSmart Young Children Education business were RMB139.9 million, representing a sequential increase of
8.5% , accounting for13.9% of total net revenues in the quarter. Cash sales increased43.5% sequentially, and new student acquisitions achieved89% sequential growth after our learning centers reopen. In the quarter, the average monthly student enrollments totaled 50,368, a year-over-year increase of17.5% . - OneSmart Online (the leading premium online education business in China): Online platform is complementary to offline business with same price in the form of OMO take-out service. The average monthly student enrollments of OneSmart Online business totaled 15,024 during the quarter, a sequential increase of
15.1% .
"Go Premium" Strategic initiatives and Progress
- OneSmart VIP: In the fiscal year 2020, we launched our premium Elite VIP product by leveraging our dedicated and powerful R&D experts' capacities, addressing the customers' needs of one-stop school admission planning. Elite VIP is priced 1.8 times of regular VIP product. This largely differentiates us from the tutoring course of pure score improvements by other providers. We will continue to roll out Elite VIP and expect to become a key growth driver and to optimize our revenues mix in the future years. In FY21, we will open 27 flagship VIP learning centers. As of mid-November, Elite VIP products accounted for
13% of total cash sales for the new fiscal Q1. - OneSmart Young Children Education: We have launched the premium VIP products of "Practical Math Program ("PMP") and MBA Kids English for HappyMath and FasTrack English, respectively, since FY21. PMP is priced 1.5 times of regular product and MBA Kids English is priced 1.7 times of regular product. We will also open 5 flagship learning centers for young children education in FY21. As of mid-November, cash sales for these premium VIP products picked up quickly and accounted for
10% of total cash sales for the new fiscal Q1. - OneSmart Online: We continuously improve the functionalities to enhance customer experience through our online platforms. The upgraded live online classrooms meet the requirements of multiple class formats and enhance the interactive teaching results and visualized effects. The technology improvements also simplify our online class scheduling and administration as well as optimize the online teaching platform.
Mr. Steve Zhang, Chairman and Chief Executive Officer of OneSmart, commented, "As we started our new FY21 in September, we are excited to announce our 'Go Premium' strategy. The three pillars of the 'Go Premium' strategy will lay a solid foundation for our accelerated growth path in the next five years: 1) Continuous launch of innovative new products with higher price and constantly upgrade premium teaching and services; 2) Focus on key cities to maximize market shares and enhance premium learning center experience through continuous center upgrade; and 3) Premium brand building to gain consumer recognition of OneSmart being the representative of China's premium education sector. Our Elite VIP program, addressing our premium customers' core needs of one-stop school admission planning, is well-received by our customers after launching in FY20. The recent robust sales growth encourages us to accelerate the upgrade of learning centers and quality of teaching and services to catch the growing premium needs. In addition, we also launched the premium VIP products for young children education which is expected to drive the incremental growth and margin improvement in FY21.
With the consumption upgrade in China's education sector, the premium K-12 education sector is an enormous underserved market. We will continue to launch our innovative products and services in response to customers evolving needs. As a leading premium tutoring service provider, we are confident to expand our market share in this fast-growing sector."
Key Financial Results | ||||||||||
（In thousands/RMB） | ||||||||||
4Q | 3Q | 4Q | QoQ | YoY | ||||||
Net revenues | 1,010,965 | 744,916 | 1,311,125 | - | ||||||
Gross profit | 369,797 | 262,276 | 643,992 | - | ||||||
Operating (loss)/income | (136,730) | (77,430) | 76,359 | NA | NA | |||||
Non-GAAP operating (loss)/income | (106,408) | (39,453) | 101,961 | NA | NA | |||||
Net (loss)/income attributable to OneSmart | (164,413) | (454,061) | 87,254 | NA | NA | |||||
Non-GAAP net (loss)/ income attributable to OneSmart | (134,091) | (416,084) | 112,856 | NA | NA | |||||
FY2020 | FY2019 | % of | ||||||||
Net revenues | 3,438,881 | 3,993,873 | - | |||||||
Gross profit | 1,269,142 | 1,921,806 | - | |||||||
Operating (loss)/income | (383,621) | 228,539 | NA | |||||||
Non-GAAP operating (loss)/income | (250,691) | 300,071 | NA | |||||||
Net (loss)/income attributable to OneSmart | (724,774) | 245,368 | NA | |||||||
Non-GAAP net (loss)/income attributable to OneSmart | (591,844) | 316,900 | NA | |||||||
Mr. Greg Zuo, OneSmart's Director, Chief Financial Officer and Chief Strategic Officer added, "The Go Premium strategy is based on our in-depth understanding of consumer needs and market trend. It will further differentiate OneSmart from the mass market and strengthen our competitive advantages. OneSmart will re-accelerate our growth and reach RMB 10bn size by 2023 through the two primary growth drivers: product innovation and city scale-up. We expect the higher end Elite VIP product to take up
We are proud to overcome the unprecedented challenge of COVID-19 and achieved fiscal Q4 net revenue growth of
Although our originally anticipated margin expansion is delayed by several quarters due to the pandemic. We now expect our margin to return to pre-pandemic level and expand in H2 FY21 driven by topline growth momentum, strong ASP increase and operating leverage as our city and center level ramp-up continues. In the past fiscal Q4, our gross margin decrease was primarily caused by one-off revenue drop due to COVID-19, coupled with increased teacher profile and improved learning centers to support premium product innovation. We also strategically increased marketing spending in fiscal Q4 to catch up acquisition efforts after center reopen and generated robust cash sales growth."
Financial Results for the Fourth Fiscal Quarter Ended August 31, 2020
Net Revenues
Net revenues were RMB1,011.0 million (USD147.6 million), representing a sequential increase of
Operating Costs and Expenses
Operating costs and expenses for the quarter were RMB1,147.7 million (USD167.6 million), representing a year-over-year decrease of
- Cost of revenues decreased by
3.9% year-over-year to RMB641.2 million (USD93.6 million). Due to our lean cost structure, we managed down the staff cost, partially offset by the increase in teacher cost, the rental cost and depreciation and amortization cost related to our premium product offerings and new center expansion and upgrade after the offline business is gradually back to normalcy; - Selling and marketing expenses were RMB290.3 million (USD42.4 million), compared to RMB259.9 million during the same period last year. Non-GAAP selling and marketing expenses, which excludes share-based compensation expenses, were RMB290.1 million (USD42.4 million), an increase of
11.6% from RMB259.9 million during the same period last year. The increase was primarily due to more spending on marketing activities after the offline operations resumed; - General and administrative expenses decreased by
29.7% year-over-year to RMB216.2 million (USD31.6 million). Non-GAAP general and administrative expenses, which excludes share-based compensation, were RMB186.1 million (USD27.2 million), a decrease of34.0% from RMB282.1 million during the same period last year. The decrease was primarily due to our expense control policy to keep a healthy financial condition during the post-pandemic recovery.
Total share-based compensation expenses, which were allocated to related operating expenses, were RMB30.3 million (USD4.4 million) in the fourth fiscal quarter of 2020, compared with RMB25.6 million in the same period of the prior fiscal year.
Operating Income/Loss and Operating Margin
Operating loss for the quarter was RMB136.7 million (USD20.0 million), compared with operating income of RMB76.4 million in the same period of the prior fiscal year. Non-GAAP operating loss, which excludes shared-based compensation, was RMB106.4 million (USD15.5 million), compared with Non-GAAP operating income of RMB102.0 million during the same period of the prior fiscal year.
Operating margin for the quarter was -
Income tax benefit was RMB10.7 million (USD1.6 million), compared with income tax expense of RMB44.1 million during the same period last year.
Net Income/Loss Attributable to OneSmart
Net loss attributable to OneSmart was RMB164.4 million (USD24.0 million), compared with net income of RMB87.3 million during the same period last year. Non-GAAP net loss attributable to OneSmart was RMB134.1 million (USD19.6 million), compared with net income of RMB112.9 million during the same period last year.
Capital Expenditures
Capital expenditures for the fourth fiscal quarter of 2020 were RMB15.8 million (USD2.3 million), a year-over-year decrease of
Financial Position
As of August 31, 2020, the Company had cash and cash equivalents of RMB1,169.0 million (USD170.7 million), restricted cash of RMB187.2 million (USD27.3 million) and short-term investments of RMB475.8 million (USD69.5 million).
OneSmart's prepayments from customers balance, which represents cash collected from enrolled students for courses and recognized proportionately as the training sessions are delivered, was RMB2,541.0 million (USD371.1 million) at the end of the fourth fiscal quarter of 2020, representing increases of
Cash Flow
Net cash provided by operating activities in the fourth fiscal quarter of 2020 was RMB254.4 million (USD37.1 million).
Net cash used in investing activities in the fourth quarter of 2020 was RMB295.1 million (USD43.1 million).
Net cash provided by financing activities in the fourth quarter of 2020 was RMB72.1 million (USD10.5 million).
Financial Results for Fiscal Year Ended August 31, 2020
For fiscal year 2020, OneSmart reported net revenues of RMB3,438.9 million (USD502.2 million), representing a
Operating costs and expenses for fiscal year 2020 were RMB3,822.5 million (USD558.2 million), a
Cost of revenues increased by
Selling and marketing expenses were RMB846.9 million (USD123.7 million), a
General and administrative expenses decreased by
Operating loss for fiscal year 2020 was RMB383.6 million (USD56.0 million). Non-GAAP operating loss for fiscal year 2020 was RMB250.7 million (USD36.6 million).
Operating margin for fiscal year 2020 was -
Net loss attributable to OneSmart for fiscal year 2020 was RMB724.8 million (USD105.8 million). Non-GAAP net loss attributable to OneSmart for fiscal year 2020 was RMB591.8 million (USD86.4 million).
Outlook for First Quarter and Full Year of Fiscal 2021
Based on the latest estimates, we expect to generate net revenues of RMB600-700 million for FY21 Q1, as September to November is a traditionally low season for personalized tutoring services and the recent solid new students and cash sales growth typically take 1 to 2 quarters to translate into revenue recognition. We expect our full year revenue to reach above FY19 level. However, this outlook represents OneSmart's current view, which is subject to change.
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 the noon buying rate on August 31, 2020, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System, which was RMB6.8474 to USD1.00.
Conference Call Information
OneSmart's management will hold an earnings conference call at 7:00 AM on November 23, 2020, U.S. Eastern Time (8:00 PM on the same day Beijing/Hong Kong Time).
Dial-in numbers for the live conference call are as follows:
International | 1-412-902-4272 |
China | 4001-201-203 |
US | 1-888-346-8982 |
Hong Kong | 800-905-945 |
Passcode | OneSmart |
A telephone replay of the call will be available after the conclusion of the conference call through November 30, 2020.
Dial-in numbers for the replay are as follows:
International Dial-in | 1-412-317-0088 |
U.S. Toll Free | 1-877-344-7529 |
Passcode: | 10149893 |
Additionally, a live and archived webcast of this conference call will be available at: http://ir.onesmart.org.
About OneSmart
Founded in 2008 and headquartered in Shanghai, OneSmart International Education Group Limited is a leading premium K-12 education company in China. Our vision is to be the most trusted and heartful high-tech education company and our mission is POWER LEARNING changes the future with technology advancement. Our company culture is centered on the core values of customer focus, excellence, integrity, and technology and innovation.
The Company has built a comprehensive premium K-12 education platform that encompasses OneSmart VIP business, HappyMath, and FasTrack English, and OneSmart Online. As of August 31, 2020, OneSmart operates a nationwide network of 480 learning centers in China.
For more information on OneSmart, please visit http://ir.onesmart.org.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and 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," "confident" and similar statements. OneSmart may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, 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 third parties. Any statements that are not historical facts, including statements about OneSmart's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: OneSmart's goals and strategies; its future business development, financial condition and results of operations; its ability to continue to penetrate premium K-12 after-school education services market; diversify and enrich our education offerings; enhance the development and management of our teacher team and teaching materials; competition in our industry in China; its ability to maintain and expand online education presence; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect our students' information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and OneSmart does not undertake any obligation to update such information, except as required under applicable law.
Non-GAAP Financial Measures
In evaluating its business, OneSmart 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 operating costs and expenses, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating income, non-GAAP net income attributable to OneSmart. 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 release.
OneSmart believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. OneSmart 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 OneSmart's historical performance and liquidity. OneSmart computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. OneSmart 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 charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
For more information, please contact:
OneSmart
Ms. Ida Yu
+86-21-2250-5891
E-mail: ir@onesmart.org
Christensen
In China
Mr. Andrew McLeod
Phone: +86-10-5900-1548
E-mail: amcleod@christensenir.com
In the US
Mr. Tip Fleming
Phone: +1-480-614-3004
Email: tfleming@ChristensenIR.com
ONESMART INTERNATIONAL EDUCATION GROUP LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(Amounts in thousands) | ||||||
As of | As of | As of | ||||
August 31, | August 31, | August 31, | ||||
2019 | 2020 | 2020 | ||||
RMB | RMB | US$ | ||||
(Audited) | (Unaudited) | (Unaudited) | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 1,386,412 | 1,169,044 | 170,728 | |||
Restricted cash | - | 187,241 | 27,345 | |||
Short-term investments | 454,426 | 475,756 | 69,480 | |||
Amounts due from a related party | - | 491 | 72 | |||
Prepayments and other current assets | 578,787 | 344,869 | 50,364 | |||
Total current assets | 2,419,625 | 2,177,401 | 317,989 | |||
Non-current assets: | ||||||
Property and equipment, net | 567,987 | 581,248 | 84,886 | |||
Intangible assets, net | 168,622 | 277,953 | 40,592 | |||
Long-term investments | 1,487,638 | 1,048,178 | 153,077 | |||
Operating lease right-of-use assets | - | 1,481,196 | 216,315 | |||
Goodwill | 815,052 | 1,446,442 | 211,240 | |||
Deferred tax assets | 83,104 | 191,721 | 27,999 | |||
Amounts due from a related party | 18,750 | 20,400 | 2,979 | |||
Other non-current assets | 510,697 | 638,892 | 93,304 | |||
Total non-current assets | 3,651,850 | 5,686,030 | 830,392 | |||
Total assets | 6,071,475 | 7,863,431 | 1,148,381 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term loan (including Short-term loan of the consolidated VIEs without recourse to the Group of RMB249,876 and RMB789,550 (US August 31, 2019 and August 31, 2020, respectively) | 249,876 | 789,550 | 115,307 | |||
Amounts due from related parties (including Amounts due from related parties of the consolidated VIEs without recourse to the Group of nil and RMB14,447 (US respectively) | - | 14,447 | 2,110 | |||
Long-term loan-short term portion (including Long-term loan-short term portion of the consolidated VIEs without recourse to the Group of RMB71,820 and RMB98,280 (US August 31, 2020, respectively) | 71,820 | 295,433 | 43,145 | |||
Accrued expenses and other current liabilities (including Accrued expenses and other current liabilities of the consolidated VIEs without recourse to the Group of RMB750,164 and RMB642,674 (US August 31, 2019 and August 31, 2020, respectively) | 816,392 | 889,055 | 129,838 | |||
Income tax payable (including Income tax payable of the consolidated VIEs without recourse to the Group of RMB66,300 and RMB93,156 (US August 31, 2019 and August 31, 2020, respectively) | 81,397 | 97,720 | 14,271 | |||
Prepayments from customers (including Prepayments from customers of the consolidated VIEs without recourse to the Group of RMB2,170,766 and RMB2,540,980 (US and August 31, 2020, respectively) | 2,170,815 | 2,541,029 | 371,094 | |||
ROU liability-current (including ROU liability-current of the consolidated VIEs without recourse to the Group of nil and RMB430,088 (US 2019 and August 31, 2020, respectively) | - | 430,088 | 62,810 | |||
Total current liabilities | 3,390,300 | 5,057,322 | 738,575 | |||
Non-current liabilities: | ||||||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Group of RMB55,719 and RMB71,021(US August 31, 2019 and August 31, 2020, respectively) | 57,066 | 71,025 | 10,373 | |||
Long-term loan (including long-term loan of the consolidated VIEs without recourse to the Group of RMB376,380 and RMB291,780 (US August 31, 2019 and August 31, 2020, respectively) | 1,345,754 | 1,023,151 | 149,422 | |||
Convertible senior notes (including convertible senior notes of the consolidated VIEs without recourse to the Group of nil as of August 31, 2019 and August 31, 2020, respectively) | - | 239,659 | 35,000 | |||
Unrecognized tax benefit (including Unrecognized tax benefit of the consolidated VIEs without recourse to the Group of RMB25,640 and RMB29,610 (US of August 31, 2019 and August 31, 2020, respectively) | 29,442 | 29,610 | 4,324 | |||
Operating lease liabilities, non-current portion (including Operating lease liabilities, non-current portion of the consolidated VIEs without recourse to the Group of nil and RMB982,103 (US and August 31, 2020, respectively) | - | 982,103 | 143,427 | |||
Other non-current liabilities (including other non-current liabilities of the consolidated VIEs without recourse to the Group of RMB43,440 and RMB23,084 (US as of August 31, 2019 and August 31, 2020, respectively) | 91,440 | 47,084 | 6,876 | |||
Total non-current liabilities | 1,523,702 | 2,392,632 | 349,422 | |||
Total liabilities | 4,914,002 | 7,449,954 | 1,087,997 | |||
Commitments and contingencies | ||||||
Shareholders' equity: | ||||||
Class A ordinary shares (US 37,703,157,984 shares authorized; 4,130,261,827 issued and outstanding as of August 31, 2019 and 4,146,103,947 issued and outstanding as of Aug 31, 2020, respectively) | 26 | 26 | 4 | |||
Class B ordinary shares (US 2,296,842,016 issued and outstanding as of August 31, 2019 and Aug 31, 2020, respectively) | 16 | 16 | 2 | |||
Treasury stock | (203,759) | (274,648) | (40,110) | |||
Additional paid-in capital | 5,501,992 | 5,593,922 | 816,941 | |||
Statutory reserves | 7,080 | 12,270 | 1,792 | |||
Accumulated deficits | (4,300,153) | (5,030,116) | (734,602) | |||
Accumulated other comprehensive income | 87,148 | 99,167 | 14,482 | |||
Total OneSmart International Education Group Limited shareholders' equity | 1,092,350 | 400,637 | 58,509 | |||
Non-controlling interests | 65,123 | 12,840 | 1,875 | |||
Total shareholders' equity | 1,157,473 | 413,477 | 60,384 | |||
Total liabilities, non-controlling interests and shareholders' equity | 6,071,475 | 7,863,431 | 1,148,381 | |||
ONESMART INTERNATIONAL EDUCATION GROUP LIMITED | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||
(Amounts in thousands) | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2019 | 2020 | 2020 | 2019 | 2020 | 2020 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
Net revenues | 1,311,125 | 1,010,965 | 147,642 | 3,993,873 | 3,438,881 | 502,217 | ||||||
Cost of revenues | (667,133) | (641,168) | (93,637) | (2,072,067) | (2,169,739) | (316,870) | ||||||
Gross profit | 643,992 | 369,797 | 54,005 | 1,921,806 | 1,269,142 | 185,347 | ||||||
Operating expenses: | ||||||||||||
Selling and marketing (Note 1) | (259,915) | (290,295) | (42,395) | (816,658) | (846,883) | (123,679) | ||||||
General and administrative (Note 1) | (307,718) | (216,232) | (31,579) | (876,609) | (805,880) | (117,691) | ||||||
Total operating expenses | (567,633) | (506,527) | (73,974) | (1,693,267) | (1,652,763) | (241,370) | ||||||
Operating income/(loss) | 76,359 | (136,730) | (19,969) | 228,539 | (383,621) | (56,023) | ||||||
Interest income | 64,445 | 2,959 | 432 | 81,207 | 37,393 | 5,461 | ||||||
Interest expense | (20,596) | (30,238) | (4,416) | (60,637) | (103,600) | (15,130) | ||||||
Other income | 17,042 | 14,177 | 2,070 | 82,836 | 93,894 | 13,712 | ||||||
Other expenses | (14,908) | (31,368) | (4,581) | (15,738) | (427,391) | (62,417) | ||||||
Foreign exchange losses | 386 | 78 | 11 | (138) | (69) | (10) | ||||||
Income/(loss) before income tax and share of net loss from equity investees | 122,728 | (181,122) | (26,453) | 316,069 | (783,394) | (114,407) | ||||||
Income tax (expense)/benefit | (44,117) | 10,722 | 1,566 | (121,541) | 37,785 | 5,518 | ||||||
Income/(loss) before share of net loss from equity investees | 78,611 | (170,400) | (24,887) | 194,528 | (745,609) | (108,889) | ||||||
Share of net loss from equity investees | (19,860) | (1,810) | (264) | (28,325) | (17,977) | (2,625) | ||||||
Net income/(loss) | 58,751 | (172,210) | (25,151) | 166,203 | (763,586) | (111,514) | ||||||
Add: Net loss attributable to non- controlling interests | 28,503 | 7,797 | 1,139 | 79,165 | 38,812 | 5,668 | ||||||
Net income/(loss) attributable to OneSmart's shareholders | 87,254 | (164,413) | (24,012) | 245,368 | (724,774) | (105,846) | ||||||
Note 1: Share-based compensation expenses are included in the operating costs and expenses as follows: | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2019 | 2020 | 2020 | 2019 | 2020 | 2020 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
Selling and marketing | (16) | 218 | 32 | 906 | 674 | 98 | ||||||
General and administrative | 25,618 | 30,104 | 4,396 | 70,626 | 132,256 | 19,315 | ||||||
Total | 25,602 | 30,322 | 4,428 | 71,532 | 132,930 | 19,413 | ||||||
ONESMART INTERNATIONAL EDUCATION GROUP LIMITED | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS) | ||||||||||||
(Amounts in thousands) | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2019 | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
Net income/(loss) | 58,751 | (172,210) | (25,151) | 166,203 | (763,586) | (111,514) | ||||||
Other comprehensive income/(loss)： | ||||||||||||
Unrealized gain/(loss) on available-for-sale investments, net of tax | (84,801) | 21,281 | 3,108 | (35,161) | 1,676 | 245 | ||||||
Foreign currency translation adjustment | (8,804) | 19,665 | 2,872 | (6,591) | 10,343 | 1,511 | ||||||
Comprehensive income/(loss) | (34,854) | (131,264) | (19,171) | 124,451 | (751,567) | (109,758) | ||||||
Add: Comprehensive loss attributable to non-controlling interests | 28,503 | 7,797 | 1,139 | 79,165 | 38,812 | 5,668 | ||||||
Comprehensive income/(loss) attributable to OneSmart's shareholders | (6,351) | (123,467) | (18,032) | 203,616 | (712,755) | (104,090) | ||||||
ONESMART INTERNATIONAL EDUCATION GROUP LIMITED | ||||||||||||
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures | ||||||||||||
(Amounts in thousands) | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2019 | 2020 | 2020 | 2019 | 2020 | 2020 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
Selling and marketing expenses | 259,915 | 290,295 | 42,395 | 816,658 | 846,883 | 123,679 | ||||||
Share-based compensation expense in selling and marketing expenses | (16) | 218 | 32 | 906 | 674 | 98 | ||||||
Non-GAAP selling and marketing expenses | 259,931 | 290,077 | 42,363 | 815,752 | 846,209 | 123,581 | ||||||
General and administrative expenses | 307,718 | 216,232 | 31,579 | 876,609 | 805,880 | 117,691 | ||||||
Share-based compensation expense in general and administrative expenses | 25,618 | 30,104 | 4,396 | 70,626 | 132,256 | 19,315 | ||||||
Non-GAAP general and administrative expenses | 282,100 | 186,128 | 27,183 | 805,983 | 673,624 | 98,376 | ||||||
Operating costs and expenses | 1,234,766 | 1,147,695 | 167,611 | 3,765,334 | 3,822,502 | 558,240 | ||||||
Share-based compensation expense in operating costs and expenses | 25,602 | 30,322 | 4,428 | 71,532 | 132,930 | 19,413 | ||||||
Non-GAAP operating costs and expenses | 1,209,164 | 1,117,373 | 163,183 | 3,693,802 | 3,689,572 | 538,827 | ||||||
Operating income/(loss) | 76,359 | (136,730) | (19,969) | 228,539 | (383,621) | (56,023) | ||||||
Share-based compensation expenses | 25,602 | 30,322 | 4,428 | 71,532 | 132,930 | 19,413 | ||||||
Non-GAAP operating income/(loss) | 101,961 | (106,408) | (15,541) | 300,071 | (250,691) | (36,610) | ||||||
Net income/(loss) attributable to OneSmart's shareholders | 87,254 | (164,413) | (24,012) | 245,368 | (724,774) | (105,846) | ||||||
Share-based compensation expenses | 25,602 | 30,322 | 4,428 | 71,532 | 132,930 | 19,413 | ||||||
Non-GAAP net income/(loss) attributable to OneSmart | 112,856 | (134,091) | (19,584) | 316,900 | (591,844) | (86,433) | ||||||
View original content:SOURCE OneSmart International Education Group Limited
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