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 of
8.0%
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. 98% learning centers resumed offline operations by
September. During our fiscal Q4 from June to August 2020, our offline operations experienced a
strong sequential recovery due to customer preference for our
premium 1-on-1 tutoring service to effectively improve students'
exam results. Specifically, for our three core business units:
- 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 for 78.3% of total net revenues in
the quarter. Cash sales increased by 50.7% sequentially, and new
student acquisitions achieved 79% sequential growth after our
learning centers reopen. The average monthly student enrollments
totaled 95,996, a sequential increase of 11.0%. On a like-for-like
basis for pure 1on1 program, cash sales grew by 52.6% sequentially
and 7.1% year over year, and the average monthly student
enrollments increased by 14.8% sequentially. In the fiscal
year 2020, we strategically upgraded part of our existing study
rooms for Elite VIP 1on1 program, which is priced 80% 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 for 13.9% of total net
revenues in the quarter. Cash sales increased 43.5% sequentially,
and new student acquisitions achieved 89% sequential growth after
our learning centers reopen. In the quarter, the average monthly
student enrollments totaled 50,368, a year-over-year increase of
17.5%.
- 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
FY2020
|
|
3Q
FY2020
|
|
4Q
FY2019
|
|
QoQ
change
|
|
YoY
change
|
Net
revenues
|
|
1,010,965
|
|
744,916
|
|
1,311,125
|
|
35.7%
|
|
-22.9%
|
Gross
profit
|
|
369,797
|
|
262,276
|
|
643,992
|
|
41.0%
|
|
-42.6%
|
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
change
|
|
|
|
|
Net
revenues
|
|
3,438,881
|
|
3,993,873
|
|
-13.9%
|
|
|
|
|
Gross
profit
|
|
1,269,142
|
|
1,921,806
|
|
-34.0%
|
|
|
|
|
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 60%
of our VIP business, to open 150-200 flagship centers, and our
average ASP to double by then. The growth will be achieved in high
quality and improved profitability as we will focus on the top 20
cities to achieve economy of scale, in addition to increased
price.
We are proud to overcome the unprecedented challenge of COVID-19
and achieved fiscal Q4 net revenue growth of 35.7% from the prior
quarter, which exceeds the high-end of the guided range. We
completed fiscal year 2020 with net revenue decrease of only 13.9%
from the pre-pandemic FY2019. More meaningfully, our new students
and cash sales growth have been extremely robust during fiscal Q4.
More recently, during September to mid-November 2020, the average purchase ticket
size for OneSmart VIP business unit has grown by 74% compared to
the same period last year driven by strong demand and customer
endorsement and more premium product mix. These indicate the full
recovery of our operations and strong revenue growth in the next
few quarters when the new students gradually consume their class
units in the peak tutoring seasons particularly March to June
entrance exam period. We expect our revenue in fiscal year 2021 to
reach above FY2019 level. We have resumed our learning center
expansion and, in particular, we plan to open 32 high-end flagship
learning centers in FY21, which will set a new standard for the
industry.
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 35.7% and a year-over-year
decrease of 22.9%. The sequential increase was mainly due to a
strong recovery after the resumption of our offline learning
centers.
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 7.1%. Non-GAAP operating costs and expenses, which
excludes share-based compensation expenses, were RMB1,117.4 million (USD163.2 million), representing a year-over-year
decrease of 7.6%.
- 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 of
34.0% 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 -13.5%, compared with 5.8%
in the same period of the prior fiscal year. Non-GAAP operating
margin was -10.5%, compared with 7.8% during the same period last
year. The decrease of margin was mainly due to one-off revenue drop
due to the impact of COVID-19, coupled with increased teacher
profiles and improved center portfolio for our premium offerings,
and increased marketing spending in FQ4 to catch up acquisition
efforts after center reopen, which generated robust cash sales
growth.
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 79.2% from RMB76.2
million in the fourth fiscal quarter of 2019. The decrease
was mainly attributable to our adequate leasehold improvement and
technology investments in prior quarters and disciplined cash flow
control policy during the fiscal Q4.
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 7.7% and 17.1% from the
end of the third fiscal quarter of 2020 and the fourth fiscal
quarter of 2019, respectively.
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 13.9% decrease
year-over-year.
Operating costs and expenses for fiscal year 2020 were
RMB3,822.5 million (USD558.2 million), a 1.5% increase
year-over-year. Non-GAAP operating costs and expenses for fiscal
year 2020, which excluded share-based compensation expenses, were
RMB3,689.6 million (USD538.8 million), representing a 0.1% decrease
year-over-year.
Cost of revenues increased by 4.7% year-over-year to
RMB2,169.7 million (USD316.9 million).
Selling and marketing expenses were RMB846.9 million (USD123.7
million), a 3.7% increase year-over-year. Non-GAAP selling
and marketing expenses, which excludes share-based compensation
expenses, were RMB846.2 million
(USD123.6 million), a 3.7% increase
year-over-year.
General and administrative expenses decreased by 8.1%
year-over-year to RMB805.9 million
(USD117.7 million). Non-GAAP general
and administrative expenses, which excludes share-based
compensation, were RMB673.6 million
(USD98.4 million), a decrease of
16.4% from RMB806.0 million during
the same period last year.
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 -11.2%, compared to
5.7% for the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses,
was -7.3%, compared to 7.5% for the same period of the prior fiscal
year.
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$115,307) as of
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$2,110) as of
August 31, 2019 and August 31, 2020,
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$14,353)
as of August 31, 2019 and
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$93,857) as of
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$13,605) as of
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$371,087) as of August 31, 2019
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$62,810) as of August 31,
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$10,372) as of
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$42,612) as of
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$4,324) as
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$143,427) as of August 31, 2019
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$3,371)
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$0.000001 par value;
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$0.000001 par value;
2,296,842,016 issued
and outstanding as of August 31,
2019 and Aug 31,
2020, respectively)
|
|
16
|
|
16
|
|
2
|
Treasury
stock
|
|
(203,759)
|
|
(274,648)
|
|
(40,110)
|
Additional paid-in
capital
|
|
5,501,992
|
|
5,593,922
|
|
816,941
|
Statutory
reserves
|
|
7,080
|
|
12,270
|
|
1,792
|
Accumulated
deficits
|
|
(4,300,153)
|
|
(5,030,116)
|
|
(734,602)
|
Accumulated other
comprehensive income
|
|
87,148
|
|
99,167
|
|
14,482
|
Total OneSmart
International Education
Group Limited
shareholders' equity
|
|
1,092,350
|
|
400,637
|
|
58,509
|
Non-controlling
interests
|
|
65,123
|
|
12,840
|
|
1,875
|
Total
shareholders' equity
|
|
1,157,473
|
|
413,477
|
|
60,384
|
|
|
|
|
|
|
|
Total liabilities,
non-controlling interests
and shareholders'
equity
|
|
6,071,475
|
|
7,863,431
|
|
1,148,381
|
ONESMART
INTERNATIONAL EDUCATION GROUP LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
Aug 31,
|
|
For the year
ended
Aug 31,
|
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
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
Aug 31,
|
|
For the year
ended
Aug 31,
|
|
|
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
Aug 31,
|
|
For the year
ended
Aug 31,
|
|
|
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
Aug 31,
|
|
For the year
ended
Aug 31,
|
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:http://www.prnewswire.com/news-releases/onesmart-international-education-group-limited-announces-unaudited-financial-results-for-the-fourth-fiscal-quarter-and-fiscal-year-ended-august-31-2020-301178742.html
SOURCE OneSmart International Education Group Limited