BEIJING, July 9, 2020 /PRNewswire/ -- Ambow Education
Holding Ltd. ("Ambow" or the "Company") (NYSE American: AMBO), a
leading national provider of educational and career enhancement
services in China, today announced
its unaudited financial and operating results for the three-month
period ended March 31, 2020.
"Against the backdrop of the unprecedented COVID-19 pandemic,
our goal of empowering learning and teaching through
technology has never been more relevant," said Dr.
Jin Huang, Ambow's President and
Chief Executive Officer. "With our strategic efforts to invest in
technological advancements and educational service innovation, we
remain committed to providing our learners with high-quality
educational resources, ensuring a superior online education
experience across our platform. For instance, we launched live
streaming classes that are embedded with various interactive tools
that dramatically enhance the engagement between students and
teachers on our learning platform. We also introduced online
practice training and career planning programs to help
undergraduates and employees better prepare themselves in an
increasingly challenging job market. By leveraging our leading
position and strong network in the career enhancement services
market, in collaboration with 6,000 enterprises, we organized
online job fairs that enabled remote interviews, extending extra
exposure for undergraduates seeking jobs."
Dr. Huang continued, "The outbreak of COVID-19 since the
beginning of this year has adversely impacted the entire education
industry. Our first quarter 2020 revenue performance was negatively
impacted as a result of the suspension of our K-12 schools and
offline tutoring services due to quarantine measures. With
daily life in China gradually
returning to normal since April, our schools reopened in April with
the health and safety of our students and faculty a paramount
priority. We are confident in our ability to navigate through the
dynamic markets and capitalize on the elevated opportunities
presented by the accelerated adoption of online education around
the world."
"I am also pleased that we made another significant addition to
our portfolio of international assets in the first quarter as we
completed the acquisition of NewSchool of Architecture and Design,
LLC ("NewSchool"), a San
Diego-based higher learning institution. This acquisition
underlines Ambow's vision to roll out a cross-border educational
service platform, bringing unique learning and career advancement
opportunities to students," concluded Dr. Huang.
First Quarter 2020 Financial Highlights
- Net revenues for the first quarter of 2020 decreased by
28.2% to US$12.7 million from
US$17.7 million in the same period of
2019. The decrease was primarily due to fewer services provided at
the Company's K-12 schools and tutoring centers as operations
during the quarter were temporarily suspended due to the outbreak
of COVID-19, partially offset by revenue from NewSchool, acquired
in the period.
- Gross profit for the first quarter of 2020 decreased by
72.4% to US$1.6 million from
US$5.8 million in the same period of
2019. Gross profit margin was 12.6%, compared with 32.8% for the
first quarter of 2019. The decrease in gross profit and margin was
mainly attributable to the decrease of net revenues.
- Operating expenses for the first quarter of 2020
decreased by 19.1% to US$7.2 million
from US$8.9 million for the same
period of 2019. The decrease was primarily attributable to less
expenditures due to the temporary suspension of operations at
schools and tutoring centers in the period as part of the national
pandemic containment effort, and stringent expense controls to
improve operating efficiency.
- Net income attributable to ordinary shareholders in the
first quarter of 2020 was US$0.8
million, or US$0.02 per basic
and diluted share, compared with a net loss of US$3.5 million, or US$0.08 per basic and diluted share, for the
first quarter of 2019.
- As of March 31, 2020, Ambow
maintained strong cash resources of US$30.4
million, comprised of cash and cash equivalents of
US$14.2 million and short-term
investments of US$16.2 million.
- As of March 31, 2020, the
Company's deferred revenue balance was US$23.9 million, representing a slight increase
compared with US$23.7 million as of
December 31, 2019. Due to the
temporary suspension of school operations to contain COVID-19, the
Company postponed tuition and fee collection in its K-12 schools
during the first quarter which led to the lower-than-usual increase
in deferred revenue.
The Company's first-quarter 2020 financial and operating results
can also be found on its Form 6-K 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 first quarter of 2020 are based on the
effective exchange rate of 7.0808 as of March 31, 2020; all amounts translated from RMB
to U.S. dollars for the first quarter of 2019 are based on the
effective exchange rate of 6.7112 as of March 29, 2019; all amounts translated from RMB
to U.S. dollars as of December 31,
2019 are based on the effective exchange rate of
6.9618 as of December 31, 2019.
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.
About Ambow Education Holding Ltd.
Ambow Education Holding Ltd. is a leading national provider of
educational and career enhancement services in China, 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 30 out of the 31 provinces and autonomous regions
within China.
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, and the general economic and
business conditions in the regions where the Company provides its
solutions and services. 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.
UNAUDITED
CONSOLIDATED BALANCE SHEETS
(All amounts in
thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March
31,
|
|
As of December
31,
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
US$
|
|
RMB
|
|
RMB
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
14,210
|
|
100,619
|
|
157,600
|
|
Restricted
cash
|
|
|
2,001
|
|
14,170
|
|
-
|
|
Short term
investments, available for sale
|
|
|
14,785
|
|
104,692
|
|
57,487
|
|
Short term
investments, held to maturity
|
|
|
1,412
|
|
10,000
|
|
31,000
|
|
Accounts receivable,
net
|
|
|
3,174
|
|
22,472
|
|
17,939
|
|
Amounts due from
related parties
|
|
|
317
|
|
2,246
|
|
2,318
|
|
Prepaid and other
current assets, net
|
|
|
22,542
|
|
159,618
|
|
133,296
|
|
Total current
assets
|
|
|
58,441
|
|
413,817
|
|
399,640
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
21,976
|
|
155,606
|
|
157,463
|
|
Land use rights,
net
|
|
|
247
|
|
1,748
|
|
1,759
|
|
Intangible assets,
net
|
|
|
8,695
|
|
61,567
|
|
56,607
|
|
Goodwill
|
|
|
8,659
|
|
61,313
|
|
60,353
|
|
Deferred tax assets,
net
|
|
|
538
|
|
3,811
|
|
10,195
|
|
Operating lease
right-of-use asset
|
|
|
42,809
|
|
303,120
|
|
257,361
|
|
Finance lease
right-of-use asset
|
|
|
890
|
|
6,300
|
|
6,450
|
|
Other non-current
assets, net
|
|
|
11,900
|
|
84,261
|
|
70,971
|
|
Total non-current
assets
|
|
|
95,714
|
|
677,726
|
|
621,159
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
154,155
|
|
1,091,543
|
|
1,020,799
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Deferred revenue
*
|
|
|
23,858
|
|
168,933
|
|
165,111
|
|
Accounts payable
*
|
|
|
1,781
|
|
12,615
|
|
14,718
|
|
Accrued and other
liabilities *
|
|
|
28,059
|
|
198,681
|
|
192,957
|
|
Income taxes payable,
current *
|
|
|
26,507
|
|
187,691
|
|
180,715
|
|
Amounts due to related
parties *
|
|
|
278
|
|
1,971
|
|
1,971
|
|
Operating lease
liability, current *
|
|
|
8,018
|
|
56,774
|
|
53,512
|
|
Total current
liabilities
|
|
|
88,501
|
|
626,665
|
|
608,984
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
Income taxes payable,
non-current *
|
|
|
4,564
|
|
32,315
|
|
32,152
|
|
Operating lease
liability, non-current *
|
|
|
37,158
|
|
263,109
|
|
216,067
|
|
Total non-current
liabilities
|
|
|
41,722
|
|
295,424
|
|
248,219
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
130,223
|
|
922,089
|
|
857,203
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Preferred
shares
|
|
|
|
|
|
|
|
|
(US$ 0.003 par
value;1,666,667 shares
authorized, nil issued and outstanding as of
December 31, 2019 and March 31,
2020)
|
|
|
-
|
|
-
|
|
-
|
|
Class A
Ordinary shares
|
|
|
|
|
|
|
|
|
(US$0.003 par value;
66,666,667 and
66,666,667 shares authorized,
38,858,199
and 38,870,699 shares issued and
outstanding as of December 31,
2019 and
March 31, 2020, respectively)
|
|
|
103
|
|
730
|
|
730
|
|
Class C
Ordinary shares
|
|
|
|
|
|
|
|
|
(US$0.003 par value;
8,333,333 and 8,333,333
shares authorized, 4,708,415 and 4,708,415
shares issued and outstanding as of
December 31, 2019 and March 31,
2020,
respectively)
|
|
|
13
|
|
90
|
|
90
|
|
Additional paid-in
capital
|
|
|
495,563
|
|
3,508,983
|
|
3,508,745
|
|
Statutory
reserve
|
|
|
2,851
|
|
20,185
|
|
20,185
|
|
Accumulated
deficit
|
|
|
(475,422)
|
|
(3,366,370)
|
|
(3,371,815)
|
|
Accumulated other
comprehensive income
|
|
|
978
|
|
6,928
|
|
6,341
|
|
Total Ambow
Education Holding Ltd.'s equity
|
|
|
24,086
|
|
170,546
|
|
164,276
|
|
Non-controlling
interests
|
|
|
(154)
|
|
(1,092)
|
|
(680)
|
|
Total
equity
|
|
|
23,932
|
|
169,454
|
|
163,596
|
|
Total liabilities
and equity
|
|
|
154,155
|
|
1,091,543
|
|
1,020,799
|
|
|
|
|
|
|
|
|
|
|
* All of the
VIE's assets can be used to settle obligations of their primary
beneficiary. Liabilities recognized as a result of
consolidating these VIEs do not represent additional claims on the
Company's general assets.
|
|
|
AMBOW EDUCATION
HOLDING LTD.
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
(All amounts in
thousands, except for share and per share data)
|
|
|
|
For the three
months ended March 31,
|
|
|
2020
|
|
2020
|
|
2019
|
|
|
US$
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
NET
REVENUES
|
|
|
|
|
|
|
Educational
program and services
|
|
12,748
|
|
90,267
|
|
118,185
|
Intelligent program
and services
|
|
2
|
|
12
|
|
461
|
Total net
revenues
|
|
12,750
|
|
90,279
|
|
118,646
|
COST OF
REVENUES
|
|
|
|
|
|
|
Educational
program and services
|
|
(10,936)
|
|
(77,433)
|
|
(78,197)
|
Intelligent
program and services
|
|
(183)
|
|
(1,298)
|
|
(1,858)
|
Total cost of
revenues
|
|
(11,119)
|
|
(78,731)
|
|
(80,055)
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,631
|
|
11,548
|
|
38,591
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
|
(1,490)
|
|
(10,549)
|
|
(14,088)
|
General and
administrative
|
|
(5,536)
|
|
(39,201)
|
|
(45,618)
|
Research and
development
|
|
(160)
|
|
(1,131)
|
|
(168)
|
Total operating
expenses
|
|
(7,186)
|
|
(50,881)
|
|
(59,874)
|
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
(5,555)
|
|
(39,333)
|
|
(21,283)
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
|
|
Interest
income
|
|
281
|
|
1,990
|
|
388
|
Foreign exchange gain
(loss), net
|
|
4
|
|
26
|
|
(31)
|
Other income,
net
|
|
199
|
|
1,406
|
|
660
|
Gain from
deregistration of subsidiaries
|
|
-
|
|
-
|
|
1,279
|
Gain on the bargain
purchase
|
|
5,688
|
|
40,273
|
|
-
|
Gain on sale of
investment available for sale
|
|
74
|
|
526
|
|
279
|
Total other
income
|
|
6,246
|
|
44,221
|
|
2,575
|
|
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAX
AND NON-CONTROLLING INTEREST
|
|
691
|
|
4,888
|
|
(18,708)
|
Income tax benefit
(expense)
|
|
104
|
|
739
|
|
(5,141)
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
795
|
|
5,627
|
|
(23,849)
|
Less: Net loss
attributable to non-controlling
interest
|
|
(58)
|
|
(412)
|
|
(93)
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO
ORDINARY SHAREHOLDERS
|
|
853
|
|
6,039
|
|
(23,756)
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
795
|
|
5,627
|
|
(23,849)
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME, NET
OF TAX
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
61
|
|
433
|
|
(2,428)
|
Unrealized
gains on short term investments
|
|
|
|
|
|
|
Unrealized
holding gains arising during period
|
|
62
|
|
441
|
|
280
|
Less:
reclassification adjustment for gains
included in net income
|
|
41
|
|
287
|
|
205
|
Other comprehensive
income/(loss)
|
|
83
|
|
587
|
|
(2,353)
|
|
|
|
|
|
|
|
TOTAL
COMPREHENSIVE INCOME
LOSS)
|
|
878
|
|
6,214
|
|
(26,202)
|
Net income (loss) per
share - basic and diluted
|
|
0.02
|
|
0.14
|
|
(0.55)
|
|
|
|
|
|
|
|
Weighted average shares
used in calculating
basic and diluted net income (loss) per
share
|
|
43,570,918
|
|
43,570,918
|
|
43,474,571
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained
|
|
Accumulated
|
|
|
|
|
|
Class A
Ordinary
|
|
Class C
Ordinary
|
|
Additional
|
|
|
|
Earnings
|
|
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
|
|
(3,372,409)
|
|
6,341
|
|
(680)
|
|
163,002
|
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
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
January 1,
2019
|
38,756,289
|
|
728
|
|
4,708,415
|
|
90
|
|
3,507,123
|
|
20,149
|
|
(3,271,838)
|
|
8,305
|
|
(1,786)
|
|
262,771
|
Share-based
compensation
|
-
|
|
-
|
|
-
|
|
-
|
|
872
|
|
-
|
|
-
|
|
-
|
|
-
|
|
872
|
Issuance of ordinary
shares
for restricted stock award
|
28,646
|
|
1
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Foreign currency
translation
adjustment
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,428)
|
|
-
|
|
(2,428)
|
Unrealized gain
on
investment, net of income
taxes
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
75
|
|
-
|
|
75
|
Net loss
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(23,756)
|
|
-
|
|
(93)
|
|
(23,849)
|
Balance as of
March 31,
2019
|
38,784,935
|
|
729
|
|
4,708,415
|
|
90
|
|
3,507,994
|
|
20,149
|
|
(3,295,594)
|
|
5,952
|
|
(1,879)
|
|
237,441
|
|
Discussion of
Segment Operations
|
|
(All amounts in
thousands)
|
|
|
|
|
For the three
months ended March 31,
|
|
|
2020
|
|
2020
|
|
2019
|
|
|
US$
|
|
RMB
|
|
RMB
|
|
|
(All amounts in
thousands)
|
NET
REVENUES
|
|
|
|
|
|
|
K-12 Schools
|
5,849
|
|
41,411
|
|
63,793
|
|
CP&CE
Programs
|
6,901
|
|
48,868
|
|
54,853
|
|
Total net
revenues
|
12,750
|
|
90,279
|
|
118,646
|
|
COST OF
REVENUES
|
|
|
|
|
|
|
K-12
Schools
|
(4,721)
|
|
(33,429)
|
|
(42,296)
|
|
CP&CE
Programs
|
(6,398)
|
|
(45,302)
|
|
(37,759)
|
|
Total cost of
revenues
|
(11,119)
|
|
(78,731)
|
|
(80,055)
|
|
GROSS
PROFIT
|
|
|
|
|
|
|
K-12
Schools
|
1,128
|
|
7,982
|
|
21,497
|
|
CP&CE
Programs
|
503
|
|
3,566
|
|
17,094
|
|
Total gross
profit
|
1,631
|
|
11,548
|
|
38,591
|
|
View original
content:http://www.prnewswire.com/news-releases/ambow-education-announces-first-quarter-2020-financial-results-301090729.html
SOURCE Ambow Education Holding Ltd.