First Fiscal Quarter of Fiscal Year 2021
results:
- Cash sales totaled RMB962
million
- Net revenues totaled RMB685
million, at the high-end of the guided range of RMB600 million to RMB700
million
- Average monthly student enrollments totaled 148,134
- 470 learning centers as of November
30,2020, increasing from 434 learning centers a year
ago
SHANGHAI, Feb. 23, 2021 /PRNewswire/ -- OneSmart
International Education Group Limited (NYSE: ONE) ("OneSmart"
or the "Company"), the leading premium K-12 after-school
education services provider in China, today announced its unaudited financial
results for the first fiscal quarter ended November 30, 2020.
Highlights for the First Fiscal Quarter Ended November 30, 2020
Since the beginning of the fiscal Q1, our offline operations
have continuously experienced a strong recovery due to customer
preference for our premium tutoring, which includes personalized
1-on-1 tutoring and other school admission planning services.
We are delighted to achieve the initial
successful results from Go Premium Strategy with consumption
upgrade in education sector. The newly-launched premium products
are well received by our target customers and further strengthens
our premium position in this space. 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 RMB487 million, accounting for 71.1% of total net
revenues. The average monthly student enrollments were 76,176. On a
like-for-like basis for 1on1 programs (excluding 1on3 program),
cash sales grew by 10.2% year over year, and the average monthly
student enrollments were in line with the same period of the prior
year. For year to date between September and January, the unit
price of new purchase was RMB 44K per
student on average basis, representing 73% year-over-year increase
from same period of FY20. This indicates the robust demand for our
products as school returns to normal schedules and improved
customer experience of our upgraded 1on1 product, newly launched
Elite VIP product, refurbished learning centers and services.
- 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
RMB141 million, accounting for 20.5%
of total net revenues in the quarter. The average monthly student
enrollments totaled 49,121, a year-over-year increase of 1.3%.
During the quarter, the average unit price
of new purchase improved by 14% and 29% year-over-year for
HappyMath and FasTrack English respectively.
- 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. In the quarter, net
revenues from OneSmart Online were RMB30
million, accounting for 4.4% of total net revenues. The
average monthly student enrollments of OneSmart Online business
totaled 10,596 during the quarter.
"Go Premium" Strategic initiatives and Progress
- OneSmart VIP: In the fiscal Q1, Elite VIP program
accounted for 12% of the cash sales from OneSmart VIP business. The
Elite VIP product is developed to better address the customers'
enhanced needs of one-stop school admission planning and provides a
better upside on topline as it is priced 1.8 times of regular VIP
product. We will continue to roll out Elite VIP and expect it to
become a key growth driver to optimize our revenues mix in the
future years. Since December 2020, we
have conducted a series of premium branding campaign and local
marketing in the key cities, which largely enhanced OneSmart's
premium brand awareness among target families in these cities. By
the end of January 2021, we upgraded
83% of our learning centers and opened 12 flagship VIP learning
centers, to provide a premium learning center experience. We have
also upgraded the teachers' profile for Elite VIP program by
certifying 550 VIP teachers. Heading into the fiscal Q2, our
operating metrics will continue to improve. In the fiscal Q2 to
date, our cash sales improved by 29% year-over-year for OneSmart
VIP business or 27% year-over-year for OneSmart VIP excluding 1on3
program. Recently, we have introduced contactless tutoring services
to set up an industry-leading high standard of safety and
cleanliness in offline learning centers, thus to further protect
our teachers and students in response to the COVID-19 resurgence in
certain cities.
- OneSmart Young Children Education: Cash sales had a
sequential growth of 38% in the fiscal Q1, primarily driven by
newly-launched premium products of "Practical Math Program ("PMP")
and MBA Kids English for HappyMath and FasTrack English
respectively. During the quarter, the average unit price of new
purchase improved by 14% and 29% year-over-year for HappyMath and
FasTrack English respectively. Cash sales for these premium
products picked up quickly and accounted for 9% of total cash sales
for young children education business in the fiscal Q1. The
standard of safety and cleanliness is also upgraded in our
HappyMath and FasTrack English learning centers to encourage a high
attendance rate among young children students. As of the end of the
fiscal Q1 2021, HappyMath achieved a retention rate of 80%, as high
as the pre-COVID level.
- OneSmart Online: The online platform continues to drive
incremental growth, as well as serves as a strategic backup option
against COVID-19. 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. Our teachers are well trained to adapt to both
online and offline teaching environment.
Mr. Steve Zhang, Chairman and
Chief Executive Officer of OneSmart, commented, "We are delighted
to report a good start in fiscal 2021. All the key metrics are
recovering, and the year-over-year comparison gaps are further
narrowing. Our Go Premium Strategy is executed well on track with
significant enhancements were made on products, teachers profiles,
learning centers and premium brand awareness. Our recently launched
Elite VIP product has achieved strong cash sales thanks to its
distinguished value-added premium offerings in power learning
ability and school admission planning, on top of the basic score
improvement feature. Our teachers' profiles are continuously
improving, and they are highly-selected and well-trained to satisfy
students and parents' evolving needs for academic achievements. By
the end of January 2021, we have
refurbished 83% learning centers. The upgraded center study
environments will provide a superb experience to our students. In
addition, we are making great efforts on premium brand building and
local marketing to reach our target customers more effectively.
OneSmart's brand position of Premium Tutoring is rooted in target
families mind evidenced by improved brand awareness in select
cities.
With the consumption upgrade in China's education sector, the premium K-12
after-school education sector is an enormous underserved market. We
will continue to leverage our resourceful platform and our
innovative products and services to capture the growth
opportunities. As a leading premium tutoring service provider, we
are confident to expand our market share in this fast-growing
sector and to achieve RMB10 billion
in cash sales by 2023."
Key Financial
Results
|
|
|
|
|
|
|
|
|
|
|
(In
thousands/RMB)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VS 1Q
|
|
VS 1Q
|
|
|
1Q
FY2019
|
|
1Q
FY2020
|
|
1Q
FY2021
|
|
FY2020
change
|
|
FY2019
change
|
Net
revenues
|
|
646,977
|
|
797,200
|
|
684,804
|
|
-14.1%
|
|
5.8%
|
Gross
profit
|
|
260,392
|
|
280,641
|
|
208,353
|
|
-25.8%
|
|
-20.0%
|
Operating
(loss)/income
|
|
(61,069)
|
|
(114,698)
|
|
(163,503)
|
|
N.A.
|
|
N.A.
|
Non-GAAP operating(loss)/income
|
|
(42,888)
|
|
(86,776)
|
|
(128,753)
|
|
N.A.
|
|
N.A.
|
Net (loss)/income
attributable to OneSmart
|
|
(16,307)
|
|
(89,933)
|
|
(159,577)
|
|
N.A.
|
|
N.A.
|
Non-GAAP net
(loss)/ income attributable to OneSmart
|
|
1,874
|
|
(62,011)
|
|
(124,827)
|
|
N.A.
|
|
N.A.
|
Mr. Greg Zuo, OneSmart's
Director, Chief Financial Officer and Chief Strategic Officer
added, "We have moved to a new phase of growth post-pandemic and
are proactively investing in our core business to build a long-term
successful enterprise. Our company-wide cash sales year-over-year
growth has continued to go up, recording 14%, 23% and 37% in the
December 2020, January and
mid-February 2021 respectively. The
balance of our prepaid tuition has reached an all-time record level
at RMB2.75 billion by fiscal Q1. This
is a result of strong demand post normalized public school
schedules, enhanced customer satisfaction thanks to our premium
initiatives, and our enhanced student acquisition approach.
The Go Premium strategy is structurally re-setting the unit
economics of our business model, making it more financially
attractive in the future. For year to date FY21, the average unit
price of new purchase for our core VIP segment was
RMB 44K per student, representing 73%
year-over-year increase from same period of FY20. This set up a
much higher per student revenue thus a much more robust unit
economics down the road. Encouraged by the initial success of the
Go Premium Strategy and justified by the increased revenue profile,
we will continue to invest in our core products, teacher
credentials, learning centers and build our premium brand. In the
fiscal Q1, our marketing expenses accounted for 8% of cash sales,
in line with pre-COVID FY2019 level. We primarily leverage our
offline presence and resources to attract customers more
effectively through building a higher brand awareness and creative
local marketing activities, which mitigates the intensified online
marketing competition.
Our fiscal Q1 P&L results have not yet reflected recent
strong cash sales momentum as it typically takes 1-2 quarters for
sales to translate into class consumptions i.e. revenue recognition
in our business. In addition, the fiscal Q1 is a typical low season
for class consumption due to less intensive study and exam
schedules in China - historically
our revenue in FQ3 and FQ4 doubled that of FQ1. As a result, we
observed temporary margin pressure in fiscal Q1. In addition, the
margin is affected by those upfront investments in teachers,
learning centers and marketing for the Go Premium Strategy. With
the strong cash sales trend and significantly higher new sales ASP,
we are optimistic about FY21 top-line performance, particularly in
FQ3 & FQ4, the peak study season. We expect strong topline
growth and margin expansion in H2 FY21.
Lastly but importantly, we continued to strengthen our focus in
the core business. We are pleased to announce the successful re-org
and forming of a separate independent platform by combining several
previously invested small-class K-12 tutoring businesses, including
Tus-Juren and Tianjin Huaying, to better focus on the core 1on1
business. We believe in the tremendous potential in the premium
1on1 segment in the top-20 cities based on our in-depth
understanding of customers' needs and trends. Such focus lays a
solid foundation for both scale and profitability for the next few
years."
Financial Results for the First Fiscal Quarter Ended
November 30, 2020
Net Revenues
Net revenues were RMB684.8 million
(US$104.1 million), a decrease of
14.1% from RMB797.2 million during
the same period last year. The year-over-year decrease was mainly
attributable to a drop in consumed class units as a result of the
COVID-19 impact to students' study and exam schedules, partially
offset by an increase in our ASP for class units consumed. The net
revenues in the fiscal Q1 2021 were 5.8% higher than those in the
fiscal Q1 2019.
Operating Costs and Expenses
Operating costs and expenses for the quarter were RMB848.3 million (US$129.0
million), a decrease of 7.0% from RMB911.9 million during the same period last
year. Non-GAAP operating costs and expenses, which excludes
share-based compensation expenses, were RMB813.6 million (US$123.7
million), a decrease of 8.0% from RMB884.0 million during the same period last
year.
- Cost of revenues decreased by 7.8% year-over-year to
RMB476.5 million (US$72.5 million). The year-over-year decrease was
mainly attributable to lower staff cost relating to a decline in
class units consumed, partially offset by the slight increases in
rental costs and depreciation and amortization costs relating to
VIP learning centers opening and upgrade in top cities;
- Selling and marketing expenses decreased by 12.3%
year-over-year to RMB170.9 million
(US$26.0 million). Non-GAAP selling
and marketing expenses, which excludes share-based compensation
expenses, were RMB170.9 million
(US$26.0 million) (accounting for
25.0% of net revenues or 17.8% of cash sales), a decrease of 12.3%
from RMB194.8 million (accounting for
24.4% of net revenues or 17.6% of cash sales) during the same
period last year. The slight year-over-year increase in ratio was
primarily due to proactive branding and offline marketing
activities to reach target families in the execution of Go Premium
strategy, offset by more efficient selling spending;
- General and administrative expenses increased by 0.2%
year-over-year to RMB200.9 million
(US$30.6 million). Non-GAAP general
and administrative expenses, which excludes share-based
compensation, were RMB166.3 million
(US$25.3 million) (accounting for
24.3% of net revenues), a decrease of 3.7% from RMB172.7 million (accounting for 21.7% of net
revenues) during the same period last year. The year-over-year
increase in ratio was primarily due to the lower revenue in the
fiscal Q1 as a result of COVID-19 impact.
Total share-based compensation expenses, which were allocated to
related operating expenses, were RMB34.8
million (US$5.3 million) in
the first fiscal quarter of 2021, compared with RMB27.9 million in the same period of the prior
fiscal year.
Operating Income/Loss and Operating Margin
Operating loss for the quarter was RMB163.5 million (US$24.9
million), compared with operating loss of RMB114.7 million in the same period of the prior
fiscal year. Non-GAAP operating loss, which excludes shared-based
compensation, was RMB128.8 million
(US$19.6 million), compared with
non-GAAP operating loss of RMB86.8
million during the same period of the prior fiscal year.
Operating margin for the quarter was -23.9%, compared with
-14.4% in the same period of the prior fiscal year. Non-GAAP
operating margin was -18.8%, compared with -10.9% during the same
period last year. The decrease of margin was mainly due to one-off
revenue impact by COVID-19, coupled with increased investments in
teacher profiles, learning centers and increased sales and
marketing activities to support the Go Premium Strategy.
Net interest expense was RMB23.5
million (US$3.6 million),
compared with net interest income of RMB4.0
million during the same period last year.
Other income, which mainly represents government subsidies and
other gains, was RMB29.9 million
(US$4.5 million), compared with
RMB10.1 million during the same
period last year.
Income tax benefit was RMB12.3
million (US$1.9 million),
compared with RMB3.4 million income
tax benefit during the same period last year.
Net Loss Attributable to OneSmart
Net loss attributable to OneSmart was RMB159.6 million (US$24.3
million), compared with net loss of RMB89.9 million during the same period last year.
Non-GAAP net loss attributable to OneSmart was RMB124.8 million (US$19.0
million), compared with net loss of RMB62.0 million during the same period last
year.
Capital Expenditures
Capital expenditures for the first fiscal quarter of 2021 were
RMB40.8 million (US$6.2 million), a decrease of 45.2% from
RMB90.2 million in the first fiscal
quarter of 2020. The decrease was mainly due to more selective
expansion and upgrade in key cities.
Financial Position
As of November 30, 2020, the
Company had cash and cash equivalents of RMB802.2 million (US$122.0 million), restricted cash of
RMB182.4 million (US$27.7 million) and short-term
investments of RMB464.0 million
(US$70.6 million).
As of November 30, 2020, the
Company had short-term loan of RMB789.6 million (US$120.1
million) and long-term loan (including long-term and
short-term portion) of RMB1,139.9
million (US$173.3 million),
decreasing by RMB178.7 million from a
quarter ago.
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 RMB2,752.1 million (US$418.5 million) at the end of the first fiscal
quarter of 2021, an increase of 13.5% from RMB2,425.7 million at the end of the first fiscal
quarter of 2020.
Cash Flow
Net cash used in operating activities in the first fiscal
quarter of 2021 was RMB72.4 million
(US$11.0 million).
Net cash used in investing activities in the first fiscal
quarter of 2021 was RMB121.8 million
(US$18.5 million).
Net cash used in financing activities in the first fiscal
quarter of 2021 was RMB146.9 million
(US$22.3 million).
Outlook for the Second Fiscal Quarter of Fiscal Year
2021
Based on the latest estimates, we expect to generate net
revenues of RMB850 million to
RMB950 million for the second quarter
of fiscal year 2021, representing 24% to 39% increase from the
first quarter of fiscal year 2021. We expect the full year net
revenues to reach above the pre-COVID 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 November 30, 2020, as set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve System, which was RMB6.5760
to USD1.00.
Conference Call Information
OneSmart's management will hold an earnings conference call at
7:00 AM on Tuesday, February 23,
2021, 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
|
Mainland 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 March 02, 2021.
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:
|
10152317
|
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 after-school education
company in China. Our vision is to
be the most trusted and heart-warming 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 November 30, 2020, OneSmart operates a nationwide
network of 470 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
ICA (Institutional Capital Advisory)
Mr. Kevin Yang
Phone: +86-021-8028-6033
E-mail: onesmart@icaasia.com
ONESMART
INTERNATIONAL EDUCATION GROUP LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands)
|
|
|
|
As
of
|
|
As
of
|
|
As
of
|
|
|
August
31,
|
|
November
30,
|
|
November
30,
|
|
|
2020
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Audited)
|
|
(Unaudited)
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,158,044
|
|
802,188
|
|
121,987
|
Restricted
cash
|
|
187,241
|
|
182,367
|
|
27,732
|
Short-term
investments
|
|
486,756
|
|
464,001
|
|
70,560
|
Amounts due from a
related party
|
|
491
|
|
9,947
|
|
1,513
|
Prepayments and other
current assets
|
|
344,870
|
|
529,163
|
|
80,466
|
Total current
assets
|
|
2,177,402
|
|
1,987,666
|
|
302,258
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
581,248
|
|
556,428
|
|
84,615
|
Intangible assets,
net
|
|
277,953
|
|
263,336
|
|
40,045
|
Long-term
investments
|
|
1,048,178
|
|
1,057,165
|
|
160,761
|
Operating lease
right-of-use assets
|
|
1,481,196
|
|
1,484,584
|
|
225,758
|
Goodwill
|
|
1,481,401
|
|
1,468,271
|
|
223,277
|
Deferred tax
assets
|
|
191,721
|
|
210,916
|
|
32,074
|
Amounts due from a
related party
|
|
20,400
|
|
20,400
|
|
3,102
|
Other non-current
assets
|
|
638,892
|
|
627,121
|
|
95,365
|
Total non-current
assets
|
|
5,720,989
|
|
5,688,221
|
|
864,997
|
|
|
|
|
|
|
|
Total
assets
|
|
7,898,391
|
|
7,675,887
|
|
1,167,255
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term loans
(including short-term loans of the
consolidated VIEs without recourse to the Group of
RMB789,550 and RMB789,550 (US$120,065) as of
August 31,2020 and November 30, 2020, respectively)
|
|
789,550
|
|
789,550
|
|
120,065
|
Amounts due to a
related party (including due to a
related party of the consolidated VIEs without recourse to
the Group of RMB14,447 and RMB14,580 (US$2,217) as of
August 31, 2020 and November 30, 2020,
respectively)
|
|
14,447
|
|
14,580
|
|
2,217
|
Long-term loans,
current portion (including long-term
loans, current portion of the consolidated VIEs without
recourse to the Group of RMB98,280 and RMB90,000
(US$13,686) as of August 31, 2020 and November 30,
2020, respectively)
|
|
295,433
|
|
325,398
|
|
49,483
|
Accrued expenses and
other current liabilities (including
accrued expenses and other current liabilities of the
consolidated VIEs without recourse to the Group of
RMB642,674 and RMB634,996 (US$96,563)as of
August 31, 2020 and November 30, 2020,
respectively)
|
|
889,055
|
|
781,255
|
|
118,804
|
Income taxes payable
(including income taxes payable of
the consolidated VIEs without recourse to the Group of
RMB93,156 and RMB100,344(US$15,259) as of
August 31, 2020 and November 30, 2020,
respectively)
|
|
97,720
|
|
101,449
|
|
15,427
|
Prepayments from
customers (including prepayments
from customers of the consolidated VIEs without
recourse to the Group of RMB2,547,444 and
RMB2,752,028(US$418,496)as of
August 31, 2020 and November 30, 2020,
respectively)
|
|
2,547,493
|
|
2,752,077
|
|
418,503
|
Operating lease
liabilities, current portion (including
operating lease liabilities, current portion of the
consolidated VIEs without recourse to the Group of
RMB483,056 and RMB505,558 (US$76,879) as of
August 31, 2020 and November 30, 2020,
respectively)
|
|
483,056
|
|
505,558
|
|
76,879
|
Total current
liabilities
|
|
5,116,754
|
|
5,269,867
|
|
801,378
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Deferred tax
liabilities (including deferred tax liabilities of
the consolidated VIEs without recourse to the Group of
RMB71,021 and RMB69,883(US$10,627) as of August 31,
2020 and November 30, 2020, respectively)
|
|
71,025
|
|
69,886
|
|
10,627
|
Long-term loans
(including long-term loan of the
consolidated VIEs without recourse to the Group of
RMB291,781 andRMB247,500 (US$37,637) as of
August 31, 2020 and November 30, 2020,
respectively)
|
|
1,023,151
|
|
814,453
|
|
123,852
|
Convertible senior
notes (including convertible senior notes
of the consolidated VIEs without recourse to the Group of
nil as of August 31, 2020 and November 30, 2020,
respectively)
|
|
239,659
|
|
230,160
|
|
35,000
|
Unrecognized tax
benefit (including liability for
unrecognized tax benefit of the consolidated VIEs without
recourse to the Group of RMB29,610 and RMB29,463
(US$4,480) as of August 31, 2020 and November 30,
2020, respectively)
|
|
29,610
|
|
29,463
|
|
4,480
|
Operating lease
liabilities, non-current portion (including
operating lease liabilities, non-current portion of the
consolidated VIEs without recourse to the Group of
RMB929,135 and RMB909,726 (US$138,340) as of
August 31, 2020 and November 30, 2020,
respectively)
|
|
929,135
|
|
909,726
|
|
138,340
|
Other non-current
liabilities (including other non-current
liabilities of the consolidated VIEs without recourse to the
Group of RMB23,084 and RMB23,084 (US$3,510) as of
August 31, 2020 and November 30, 2020,
respectively)
|
|
47,084
|
|
46,133
|
|
7,015
|
Total non-current
liabilities
|
|
2,339,664
|
|
2,099,821
|
|
319,314
|
|
|
|
|
|
|
|
Total
liabilities
|
|
7,456,418
|
|
7,369,688
|
|
1,120,692
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Class A ordinary
shares (US$0.000001 par value;
37,703,157,984 shares authorized; 4,146,103,947 issued
and outstanding as of August 31, 2020 and
4,159,755,667 issued and outstanding as of November
30, 2020, respectively)
|
|
26
|
|
26
|
|
4
|
Class B ordinary
shares (US$0.000001 par value;
2,296,842,016 issued and outstanding as of August 31,
2020 and November 30, 2020, respectively)
|
|
16
|
|
16
|
|
2
|
Treasury
stock
|
|
(274,648)
|
|
(274,648)
|
|
(41,765)
|
Additional paid-in
capital
|
|
5,598,978
|
|
5,635,677
|
|
857,007
|
Statutory
reserves
|
|
12,270
|
|
12,172
|
|
1,851
|
Accumulated
deficits
|
|
(5,035,172)
|
|
(5,167,761)
|
|
(785,852)
|
Accumulated other
comprehensive income
|
|
99,167
|
|
67,585
|
|
10,278
|
Total OneSmart
International Education Group
Limited shareholders' equity
|
|
400,637
|
|
273,067
|
|
41,525
|
Non-controlling
interests
|
|
41,336
|
|
33,132
|
|
5,038
|
Total
shareholders' equity
|
|
441,973
|
|
306,199
|
|
46,563
|
|
|
|
|
|
|
|
Total liabilities,
non-controlling interests and
shareholders' equity
|
|
7,898,391
|
|
7,675,887
|
|
1,167,255
|
ONESMART
INTERNATIONAL EDUCATION GROUP LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
For the three
months ended
November 30,
|
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Net
revenues
|
|
797,200
|
|
684,804
|
|
104,137
|
Cost of
revenues
|
|
(516,559)
|
|
(476,451)
|
|
(72,453)
|
Gross
profit
|
|
280,641
|
|
208,353
|
|
31,684
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and marketing
(Note 1)
|
|
(194,894)
|
|
(170,914)
|
|
(25,991)
|
General and
administrative (Note 1)
|
|
(200,445)
|
|
(200,942)
|
|
(30,557)
|
Total operating
expenses
|
|
(395,339)
|
|
(371,856)
|
|
(56,548)
|
Operating
loss
|
|
(114,698)
|
|
(163,503)
|
|
(24,864)
|
|
|
|
|
|
|
|
Interest
income
|
|
29,736
|
|
2,587
|
|
393
|
Interest
expense
|
|
(25,691)
|
|
(26,101)
|
|
(3,969)
|
Other
income
|
|
10,126
|
|
29,863
|
|
4,541
|
Other
expenses
|
|
(8,697)
|
|
(16,918)
|
|
(2,573)
|
Loss before income
tax and share of
net loss from equity investees
|
|
(109,224)
|
|
(174,072)
|
|
(26,472)
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
3,399
|
|
12,283
|
|
1,868
|
Loss before share
of net loss from
equity investees
|
|
(105,825)
|
|
(161,789)
|
|
(24,604)
|
|
|
|
|
|
|
|
Share of net loss
from equity investees
|
|
(3,834)
|
|
(5,891)
|
|
(896)
|
|
|
|
|
|
|
|
Net
loss
|
|
(109,659)
|
|
(167,680)
|
|
(25,500)
|
|
|
|
|
|
|
|
Add: Net loss
attributable to non-
controlling interests
|
|
19,726
|
|
8,103
|
|
1,232
|
|
|
|
|
|
|
|
Net loss
attributable to OneSmart's
shareholders
|
|
(89,933)
|
|
(159,577)
|
|
(24,268)
|
|
|
|
|
|
|
|
Note 1:
Share-based compensation expenses are included in the operating
costs and expenses as follows:
|
|
|
|
For the three
months ended
November 30,
|
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
143
|
|
61
|
|
9
|
General and
administrative
|
|
27,779
|
|
34,689
|
|
5,275
|
Total
|
|
27,922
|
|
34,750
|
|
5,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ONESMART
INTERNATIONAL EDUCATION GROUP LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME/(LOSS)
|
(Amounts in
thousands)
|
|
|
|
For the three
months ended
November 30,
|
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Net
loss
|
|
(109,659)
|
|
(167,680)
|
|
(25,500)
|
Other comprehensive
income/(loss):
|
|
|
|
|
|
|
Unrealized
gain/(loss) on available-for-sale investments, net of
tax
|
(18,259)
|
|
6,427
|
|
977
|
Foreign currency
translation adjustment
|
2,530
|
|
(38,009)
|
|
(5,780)
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
(125,388)
|
|
(199,262)
|
|
(30,303)
|
Add: Comprehensive
loss attributable
to non-controlling interests
|
|
19,726
|
|
8,103
|
|
1,232
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to
OneSmart's shareholders
|
|
(105,662)
|
|
(191,159)
|
|
(29,071)
|
ONESMART
INTERNATIONAL EDUCATION GROUP LIMITED
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
For the three
months ended
November 30,
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Selling and
marketing expenses
|
|
194,894
|
|
170,914
|
|
25,991
|
Share-based
compensation expense in selling and
marketing expenses
|
|
143
|
|
61
|
|
9
|
Non-GAAP selling
and marketing expenses
|
|
194,751
|
|
170,853
|
|
25,982
|
General and
administrative expenses
|
|
200,445
|
|
200,942
|
|
30,557
|
Share-based
compensation expense in general
and administrative expenses
|
|
27,779
|
|
34,689
|
|
5,275
|
Non-GAAP general
and administrative expenses
|
|
172,666
|
|
166,253
|
|
25,282
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
911,898
|
|
848,307
|
|
129,001
|
Share-based
compensation expense in operating
costs and expenses
|
|
27,922
|
|
34,750
|
|
5,284
|
Non-GAAP operating
costs and expenses
|
|
883,976
|
|
813,557
|
|
123,717
|
|
|
|
|
|
|
|
Operating
loss
|
|
(114,698)
|
|
(163,503)
|
|
(24,864)
|
Share-based
compensation expenses
|
|
27,922
|
|
34,750
|
|
5,284
|
Non-GAAP operating
loss
|
|
(86,776)
|
|
(128,753)
|
|
(19,580)
|
|
|
|
|
|
|
|
Net loss
attributable to OneSmart's shareholders
|
|
(89,933)
|
|
(159,577)
|
|
(24,268)
|
Share-based
compensation expenses
|
|
27,922
|
|
34,750
|
|
5,284
|
Non-GAAP net loss
attributable to OneSmart
|
|
(62,011)
|
|
(124,827)
|
|
(18,984)
|
View original
content:http://www.prnewswire.com/news-releases/onesmart-international-education-group-limited-announces-unaudited-financial-results-for-the-first-fiscal-quarter-ended-november-30-2020-301233177.html
SOURCE OneSmart International Education Group Limited