Q4 net revenues increased by 0.7%
year-over-year
Q4 gross billings (non-GAAP) decreased by 25.3%
year-over-year
Q4 net income reached RMB150.8 million
BEIJING, April 8, 2022
/PRNewswire/ -- Sunlands Technology Group (NYSE:
STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional
education, today announced its unaudited
financial results for the fourth quarter ended
December 31, 2021.
Fourth Quarter 2021 Financial and
Operational Snapshots
- Net revenues were RMB588.9
million (US$92.4 million),
representing a 0.7% increase year-over-year.
- Gross billings (non-GAAP) were RMB483.6
million (US$75.9 million),
representing a 25.3% decrease year-over-year.
- Gross profit was RMB499.5 million
(US$78.4 million), representing a
2.6% increase year-over-year.
- Net income was RMB150.8 million
(US$23.7 million), compared with net
loss of RMB73.5 million in the fourth
quarter of 2020.
- Net income/loss margin, defined as net income/loss as a
percentage of net revenues, increased to 25.6% from -12.6% in the
fourth quarter of 2020.
- New student enrollments[1] were 108,836,
representing a 22.7% decrease year-over-year.
- As of December 31, 2021, the
Company's deferred revenue balance was RMB2,348.2million (US$368.5 million).
|
[1] New
student enrollments for a given period refers to the total number
of orders placed by students that newly enroll in at least one
course during that period (including those students that enroll and
then terminate their enrollment with us, excluding orders of our
low-price courses). In June 2019, we introduced low-price courses,
including "mini courses" and "RMB1 courses," to strengthen our
competitiveness and improve customer experience. We offer such
low-price courses mainly in the formats of recorded videos or short
live streaming.
|
Full Year 2021 Financial and Operational
Snapshots
- Net revenues were RMB2,507.8
million (US$393.5 million),
compared with RMB2,203.8 million in
2020.
- Gross billings (non-GAAP) were RMB1,970.0 million (US$309.1 million), compared with RMB2,350.4 million in 2020.
- Gross profit was RMB2,131.6
million (US$334.5 million),
compared with RMB1,816.5 million in
2020.
- Net income was RMB212.4 million
(US$33.3 million), compared with net
loss of RMB431.0 million in
2020.
- Net income/loss margin, defined as net income/loss as a
percentage of net revenues, increased to 8.5% from -19.6% in the
year 2020.
- New student enrollments were 434,228, compared with 434,240 in
2020.
"We are delighted to close 2021 with record-high net profit of
RMB150.8 million in the fourth
quarter and RMB212.4 million for the
full year, delivering on our commitment to balanced growth and
profitability," said Mr. Tongbo Liu,
Chief Executive Officer of Sunlands. "The improved profitability
amidst the year-over-year moderation in gross billings and new
student enrollments well reflects the effectiveness of our
strategic direction and execution excellence."
"Operationally, we focused on developing a diverse range of
courses to fulfill the ongoing interest- and role-based learning
demand for professional certification and skills programs. We also
spent our efforts on expanding the course portfolio of our master's
degree-oriented programs while optimizing our teaching and service
by leveraging our highly capable and experienced teams. Meanwhile,
we took further measures to control spending and enhance our
student acquisition efficiency, which in turn has driven
high-quality growth. With this successful turnaround in
profitability, Sunlands demonstrated both its resiliency and
agility when navigating challenges amid 2021's shifting industry
landscape. In 2022 and beyond, we will continue to align our
business operations with our strategic objectives to bring value to
our students, shareholders and the broader society," concluded Mr.
Liu.
Ms. Selena Lu Lv, Chief Financial Officer of Sunlands, added,
"We are excited to register net income of RMB150.8 million in the fourth quarter, compared
to the net loss of RMB73.5 million
for the same period last year, marking our third consecutive
quarter of profitability. This solid performance was driven by our
0.7% year-over-year top-line growth and 40.5% year-over-year
decline in operating expenses due to our strengthened expense
management practices. Our net profit margin expanded significantly
to 25.6% in the fourth quarter, up 38.2 percentage points
year-over-year and 10.0 percentage points quarter-over-quarter.
Looking ahead, we are steadfast in our commitment to offering
premium course content and services to our students while adopting
effective measures to further reduce costs and boost operating
efficiency, aiming to achieve long-term, sustainable growth."
Financial Results for the fourth
quarter of 2021
Net Revenues
In the fourth quarter of 2021, net revenues increased by 0.7% to
RMB588.9 million (US$92.4 million) from RMB584.6 million in the fourth quarter of 2020.
The increase was mainly driven by the year-over-year growth in
gross billings since the second half of year 2020 through the first
quarter of 2021.
Cost of Revenues
Cost of revenues decreased by 8.6% to RMB89.4 million (US$14.0
million) in the fourth quarter of 2021 from RMB97.8 million in the fourth quarter of 2020.
The decrease was primarily due to: (i) declined compensation
expenses related to our cost of revenues personnel; and (ii)
reduced insurance-related costs incurred for our integrated online
education service package purchased by students.
Gross Profit
Gross profit increased by 2.6% to RMB499.5 million (US$78.4
million) in the fourth quarter of 2021 from RMB486.7 million in the fourth quarter of
2020.
Operating Expenses
In the fourth quarter of 2021, operating expenses were
RMB400.5 million (US$62.9 million), representing a 40.5% decrease
from RMB673.7 million in the fourth
quarter of 2020.
Sales and marketing expenses decreased by 44.2% to RMB339.4 million (US$53.3
million) in the fourth quarter of 2021 from RMB608.5 million in the fourth quarter of 2020.
The decrease was mainly due to: (i) lower spending on branding and
marketing activities; and (ii) declined compensation expenses
related to our sales and marketing personnel.
General and administrative expenses decreased by 7.6% to
RMB50.5 million (US$7.9 million) in the fourth quarter of 2021
from RMB54.7 million in the fourth
quarter of 2020. The decrease was mainly due to: (i) a decrease in
rental expenses; and (ii) declined compensation expenses related to
general and administrative personnel.
Product development expenses increased by 0.5% to RMB10.7 million (US$1.7
million) in the fourth quarter of 2021 from RMB10.6 million in the fourth quarter of 2020.
Product development expenses were mainly comprised of compensation
expenses.
Other Expenses
Other expenses were RMB3.1 million
(US$0.5 million) in the fourth
quarter of 2021, compared with other income of RMB109.4 million in the fourth quarter of 2020.
The decrease was primarily because value-added tax exemption
offered by the relevant authorities as part of the national
COVID-19 relief effort came to an end in April 2021.
Net Income
Net income for the fourth quarter of 2021 was RMB150.8 million (US$23.7
million), compared with net loss of RMB73.5 million in the fourth quarter of
2020.
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB22.89 (US$3.59)
in the fourth quarter of 2021.
Cash, Cash Equivalents, Restricted Cash and Short-term
Investments
As of December 31, 2021, the
Company had RMB676.7 million
(US$106.2 million) of cash, cash
equivalents and restricted cash and RMB184.2
million (US$28.9 million) of
short-term investments, compared with RMB760.7 million of cash and cash equivalents and
RMB517.8 million of short-term
investments as of December 31,
2020.
Deferred Revenue
As of December 31, 2021, the
Company had a deferred revenue balance of RMB2,348.2 million (US$368.5 million), compared with RMB3,024.4 million as of December 31, 2020.
Capital Expenditures
Capital expenditures were incurred primarily in connection with
information technology ("IT") infrastructure equipment and
leasehold improvements necessary to support the Company's
operations. Capital expenditures were RMB5.2
million (US$0.8 million) in
the fourth quarter of 2021, compared with RMB4.7 million in the fourth quarter of 2020.
Financial Results for the Year 2021
Net Revenues
In 2021, net revenues increased by 13.8% to RMB2,507.8 million (US$393.5 million) from RMB2,203.8 million in the year of 2020.
Cost of Revenues
Cost of revenues decreased by 2.9% to RMB376.2 million (US$59.0
million) in the year of 2021 from RMB387.3 million in the year of 2020.
Gross Profit
Gross profit increased by 17.3% to RMB2,131.6 million (US$334.5 million) from RMB1,816.5 million in 2020.
Operating Expenses
In the year of 2021, operating expenses were RMB2,017.4 million (US$316.6 million), representing an 18.2% decrease
from RMB2,465.5 million in 2020.
Sales and marketing expenses decreased by 17.7% to RMB1,748.4 million (US$274.4 million) in 2021 from RMB2,123.6 million in 2020. The decrease was
mainly due to: (i) lower spending on branding and marketing
activities; and (ii) declined compensation expenses related to our
sales and marketing personnel.
General and administrative expenses decreased by 24.6% to
RMB207.6 million (US$32.6 million) in 2021 from RMB275.4 million in 2020. The decrease was mainly
due to the decrease in compensation expenses.
Product development expenses decreased by 7.8% to RMB61.3 million (US$9.6
million) in 2021 from RMB66.5
million in 2020. The decrease was primarily due to a
decrease in the compensation expenses incurred related to our
product and technology development personnel.
Other Income
Other income for 2021 was RMB39.2
million (US$6.1 million),
compared with RMB203.2 million in
2020. The decrease was primarily because value-added tax exemption
offered by the relevant authorities as part of the national
COVID-19 relief effort came to an end in April 2021.
Net Income
Net income for 2021 was RMB212.4
million (US$33.3 million),
compared with net loss of RMB431.0
million in 2020.
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB32.56 (US$5.11)
in 2021, compared with net loss per share of RMB63.74 in 2020.
Capital Expenditures
Capital expenditures were incurred primarily in connection with
IT infrastructure equipment and leasehold improvement necessary to
support the Company's operations. Capital expenditures were
RMB16.5 million (US$2.6 million) in 2021, compared with
RMB27.0 million in 2020.
Outlook
For the first quarter of 2022, Sunlands currently expects net
revenues to be between RMB590 million
to RMB610 million, which would
represent a decrease of 15.0% to 12.1% year-over-year.
The above outlook is based on the current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions and customer demand, which are all subject
to substantial uncertainty.
Exchange Rate
The Company's business is primarily conducted in China and all revenues are denominated in
Renminbi ("RMB"). This announcement contains currency conversions
of RMB amounts into U.S. dollars ("US$") solely for the convenience
of the reader. Unless otherwise noted, all translations from RMB to
US$ are made at a rate of RMB6.3726
to US$1.00, the effective noon buying
rate for December 30, 2021 as set
forth in the H.10 statistical release of the Federal Reserve Board.
No representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate on
December 30, 2021, or at any other
rate.
Conference Call and Webcast
Sunlands' management team will host a conference call
at 7:30 AM U.S. Eastern Time, (7:30 PM Beijing/Hong
Kong time) on April 8, 2022, following the quarterly
results announcement.
The dial-in details for the live conference call are:
|
International:
|
+1-412-902-4272
|
|
US toll
free:
|
+1-888-346-8982
|
|
Mainland China toll
free:
|
400-120-1203
|
|
Hong Kong toll
free:
|
800-905-945
|
|
Hong Kong:
|
+852-3018-4992
|
Please dial in 10 minutes before the call is scheduled to begin.
When prompted, ask to be connected to the call for "Sunlands
Technology Group." Participants will be required to state their
name and company upon entering the call.
A live webcast and archive of the conference call will be
available on the Investor Relations section of Sunlands' website at
http://www.sunlands.investorroom.com/.
A replay of the conference call will be available 1 hour after
the end of the conference call until April
15, 2022, by dialing the following telephone numbers:
|
International:
|
+1-412-317-0088
|
|
US toll
free:
|
+1-877-344-7529
|
|
Replay access
code:
|
3501228
|
About Sunlands
Sunlands Technology Group (NYSE: STG) ("Sunlands" or the
"Company"), formerly known as Sunlands Online Education Group, is
the leader in China's online
post-secondary and professional education. With a one to many, live
streaming platform, Sunlands offers various degree and
diploma-oriented post-secondary courses as well as online
professional courses and educational content, to help students
prepare for professional certification exams and attain
professional skills. Students can access its services either
through PC or mobile applications. The Company's online platform
cultivates a personalized, interactive learning environment by
featuring a virtual learning community and a vast library of
educational content offerings that adapt to the learning habits of
its students. Sunlands offers a unique approach to education
research and development that organizes subject content into
Learning Outcome Trees, the Company's proprietary knowledge
management system. Sunlands has a deep understanding of the
educational needs of its prospective students and offers solutions
that help them achieve their goals.
About Non-GAAP Financial Measures
We use gross billings, EBITDA, non-GAAP operating
cost and expense, non-GAAP loss/income from
operations and Non-GAAP net loss/income per share, each a
non-GAAP financial measure, in evaluating our operating results and
for financial and operational decision-making purposes.
We define gross billings for a specific period as the total
amount of cash received for the sale of course packages, net of the
total amount of refunds paid in such period. Our management uses
gross billings as a performance measurement because we generally
bill our students for the entire course tuition at the time of sale
of our course packages and recognize revenue proportionally over a
period. EBITDA is defined as net loss/income excluding depreciation
and amortization, interest expense, interest income, and income tax
expenses. We believe that gross billings and EBITDA provide
valuable insight into the sales of our course packages and the
performance of our business.
These non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, their most directly
comparable financial measure prepared in accordance with GAAP. A
reconciliation of the historical non-GAAP financial measures to
their respective most directly comparable GAAP measure has been
provided in the tables included below. Investors are encouraged to
review the reconciliation of the historical non-GAAP financial
measures to their respective most directly comparable GAAP
financial measures. As gross billings, EBITDA, operating cost and
expenses excluding share-based compensation expenses, general and
administrative expenses excluding share-based compensation
expenses, sales and marketing expenses excluding share-based
compensation expenses, product development expenses excluding
share-based compensation expenses, non-GAAP net loss/income
exclude share-based compensation expenses, and basic and
diluted net loss/income per share excluding share-based
compensation expenses have material limitations as an
analytical metric and may not be calculated in the same manner by
all companies, it may not be comparable to other similarly titled
measures used by other companies. In light of the foregoing
limitations, you should not consider gross billings and EBITDA as a
substitute for, or superior to, their respective most directly
comparable financial measures prepared in accordance with GAAP. We
encourage investors and others to review our financial information
in its entirety and not rely on a single financial measure.
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. Sunlands 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 Sunlands'
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: Sunlands' goals and strategies; its expectations
regarding demand for and market acceptance of its brand and
services; its ability to retain and increase student enrollments;
its ability to offer new courses and educational content; its
ability to improve teaching quality and students' learning results;
its ability to improve sales and marketing efficiency and
effectiveness; its ability to engage, train and retain new faculty
members; its future business development, results of operations and
financial condition; its ability to maintain and improve technology
infrastructure necessary to operate its business; competition in
the online education industry in China; relevant government policies and
regulations relating to Sunlands' corporate structure, business and
industry; and general economic and business condition in
China Further information
regarding these and other risks, uncertainties or factors is
included in the Sunlands' 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 Sunlands does
not undertake any obligation to update such information, except as
required under applicable law.
For investor and media enquiries, please contact:
Sunlands Technology Group
Investor Relations
Email: sl-ir@sunlands.com
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
Email: sunlands@tpg-ir.com
Yang Song
Tel: +86-10-6508-0677
Email: sunlands@tpg-ir.com
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
760,710
|
|
626,715
|
|
98,345
|
|
Restricted cash
|
|
-
|
|
50,008
|
|
7,847
|
|
Short-term
investments
|
|
517,815
|
|
184,159
|
|
28,899
|
|
Prepaid expenses and other
current assets
|
|
117,637
|
|
176,349
|
|
27,673
|
|
Deferred costs,
current
|
|
158,092
|
|
89,353
|
|
14,021
|
|
Total current
assets
|
|
1,554,254
|
|
1,126,584
|
|
176,785
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
511,092
|
|
857,648
|
|
134,584
|
|
Intangible assets,
net
|
|
1,211
|
|
2,761
|
|
433
|
|
Land use right,
net
|
|
13,564
|
|
-
|
|
-
|
|
Right-of-use
assets
|
|
488,877
|
|
362,335
|
|
56,858
|
|
Deferred costs,
non-current
|
|
170,160
|
|
109,020
|
|
17,108
|
|
Long-term
investments
|
|
64,093
|
|
54,844
|
|
8,606
|
|
Deferred tax
assets
|
|
13,015
|
|
39,265
|
|
6,162
|
|
Other non-current
assets
|
|
444,628
|
|
40,163
|
|
6,302
|
|
Total non-current
assets
|
|
1,706,640
|
|
1,466,036
|
|
230,053
|
|
TOTAL ASSETS
|
|
3,260,894
|
|
2,592,620
|
|
406,838
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accrued expenses and
other current liabilities (including accrued expenses
|
|
|
|
|
|
|
|
and other
current liabilities of the consolidated VIEs without recourse
to
|
|
|
|
|
|
|
|
Sunlands
Technology Group of RMB175,900 and RMB197,467 as of
|
|
|
|
|
|
|
|
December
31, 2020 and 2021, respectively)
|
|
607,789
|
|
586,043
|
|
91,961
|
|
Deferred revenue,
current (including deferred revenue, current of the consolidated
VIEs
|
|
|
|
|
|
|
|
without
recourse to Sunlands Technology Group of RMB435,254 and
|
|
|
|
|
|
|
|
RMB295,958 as of
December 31, 2020 and 2021, respectively)
|
|
1,463,165
|
|
1,266,948
|
|
198,812
|
|
Lease liabilities,
current portion (including lease liabilities, current portion of
the
|
|
|
|
|
|
|
|
consolidated VIEs without recourse to
Sunlands Technology Group of RMB15,833
|
|
|
|
|
|
|
|
and RMB8,366 as
of December 31, 2020 and 2021, respectively)
|
|
30,702
|
|
14,310
|
|
2,246
|
|
Payables to acquire
buildings (including payables to acquire buildings of
the
|
|
|
|
|
|
|
|
consolidated VIEs without recourse to Sunlands Technology Group of
nil and nil
|
|
|
|
|
|
|
|
as of
December 31, 2020 and 2021, respectively)
|
|
61,540
|
|
-
|
|
-
|
|
Long-term debt, current
portion (including long-term debt, current portion of
the
|
|
|
|
|
|
|
|
consolidated VIEs without
recourse to Sunlands Technology Group of nil and nil
|
|
|
|
|
|
|
|
as
of December 31, 2020 and 2021, respectively)
|
|
32,500
|
|
38,654
|
|
6,066
|
|
Total current
liabilities
|
|
2,195,696
|
|
1,905,955
|
|
299,085
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS-continued
|
|
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of
December 31,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Deferred revenue,
non-current (including deferred revenue, non-current
|
|
|
|
|
|
|
|
|
of
the consolidated VIEs without recourse to Sunlands Technology Group
of
|
|
|
|
|
|
|
|
|
RMB468,577 and RMB257,071 as of
December 31, 2020 and 2021,
|
|
|
|
|
|
|
|
|
respectively)
|
|
1,561,278
|
|
1,081,231
|
|
169,669
|
|
|
Lease liabilities,
non-current portion (including lease liabilities, non-current
portion
|
|
|
|
|
|
|
|
|
of
the consolidated VIEs without recourse to Sunlands Technology Group
of
|
|
|
|
|
|
|
|
|
RMB340,763 and RMB318,598 as of December 31, 2020
and 2021,
|
|
|
|
|
|
|
|
|
respectively)
|
|
532,538
|
|
404,133
|
|
63,417
|
|
|
Deferred tax
liabilities (including deferred tax liabilities of the
consolidated
|
|
|
|
|
|
|
|
|
VIEs without recourse to Sunlands Technology Group of
RMB3,203 and RMB2,312
|
|
|
|
|
|
|
|
|
as
of December 31, 2020 and 2021, respectively)
|
|
15,220
|
|
21,782
|
|
3,418
|
|
|
Other non-current
liabilities (including other non-current liabilities of the
consolidated
|
|
|
|
|
|
|
|
|
VIEs without recourse to Sunlands Technology Group of RMB135
and RMB963
|
|
|
|
|
|
|
|
|
as
of December 31, 2020 and 2021, respectively)
|
|
7,664
|
|
11,698
|
|
1,836
|
|
|
Long-term debt,
non-current portion (including long-term debt, non-current portion
of the
|
|
|
|
|
|
|
|
|
consolidated VIEs without recourse to Sunlands Technology
Group of nil and nil
|
|
|
|
|
|
|
|
|
as
of December 31, 2020 and 2021, respectively)
|
|
160,625
|
|
181,973
|
|
28,556
|
|
|
Total non-current
liabilities
|
|
2,277,325
|
|
1,700,817
|
|
266,896
|
|
|
TOTAL
LIABILITIES
|
|
4,473,021
|
|
3,606,772
|
|
565,981
|
|
|
|
|
|
SHAREHOLDERS'
DEFICIT
|
|
|
|
|
|
|
|
|
Class A ordinary
shares (par value of US$0.00005, 796,062,195 shares
|
|
|
|
|
|
|
|
|
authorized; 1,978,621 and 2,085,939 shares issued as of
December 31, 2020
|
|
|
|
|
|
|
|
|
and
December 31, 2021, respectively; 1,792,560 and 1,839,553
shares
|
|
|
|
|
|
|
|
|
outstanding as of December 31, 2020 and 2021,
respectively)
|
|
1
|
|
1
|
|
-
|
|
|
Class B ordinary
shares (par value of US$0.00005, 826,389 shares
|
|
|
|
|
|
|
|
|
authorized; 826,389 and 826,389 shares issued and
outstanding
|
|
|
|
|
|
|
|
|
as
of December 31, 2020 and 2021, respectively)
|
|
-
|
|
-
|
|
-
|
|
|
Class C ordinary shares
(par value of US$0.00005, 203,111,416 shares
|
|
|
|
|
|
|
|
|
authorized; 4,110,248 and 4,002,930 shares issued and
outstanding
|
|
|
|
|
|
|
|
|
as
of December 31, 2020 and 2021, respectively)
|
|
1
|
|
1
|
|
-
|
|
|
Treasury
stock
|
|
-
|
|
-
|
|
-
|
|
|
Accumulated
deficit
|
|
(3,675,129)
|
|
(3,456,073)
|
|
(542,333)
|
|
|
Additional
paid-in capital
|
|
2,367,168
|
|
2,364,313
|
|
371,012
|
|
|
Accumulated
other comprehensive income
|
|
96,490
|
|
82,532
|
|
12,951
|
|
|
Total Sunlands
Technology Group shareholders' deficit
|
|
(1,211,469)
|
|
(1,009,226)
|
|
(158,370)
|
|
|
Non-controlling
interest
|
|
(658)
|
|
(4,926)
|
|
(773)
|
|
|
|
TOTAL SHAREHOLDERS'
DEFICIT
|
|
(1,212,127)
|
|
(1,014,152)
|
|
(159,143)
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
3,260,894
|
|
2,592,620
|
|
406,838
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net revenues
|
|
584,579
|
|
588,883
|
|
92,409
|
|
|
Cost of
revenues
|
|
(97,841)
|
|
(89,378)
|
|
(14,025)
|
|
|
Gross profit
|
|
486,738
|
|
499,505
|
|
78,384
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(608,457)
|
|
(339,368)
|
|
(53,254)
|
|
|
Product development
expenses
|
|
(10,598)
|
|
(10,656)
|
|
(1,672)
|
|
|
General and administrative
expenses
|
|
(54,653)
|
|
(50,499)
|
|
(7,924)
|
|
|
Total operating
expenses
|
|
(673,708)
|
|
(400,523)
|
|
(62,850)
|
|
|
(Loss)/income
from operations
|
|
(186,970)
|
|
98,982
|
|
15,534
|
|
|
Interest
income
|
|
6,894
|
|
3,018
|
|
474
|
|
|
Interest
expense
|
|
(2,726)
|
|
(2,900)
|
|
(455)
|
|
|
Other income/(expense),
net
|
|
109,408
|
|
(3,145)
|
|
(494)
|
|
|
Impairment loss on
long-term investments
|
|
(882)
|
|
(5,000)
|
|
(785)
|
|
|
Gain on disposal of
subsidiaries
|
|
-
|
|
43,967
|
|
6,899
|
|
|
(Loss)/income
before income tax
(expenses)/benefit
|
|
(74,276)
|
|
134,922
|
|
21,173
|
|
|
Income tax
(expenses)/benefit
|
|
(1,113)
|
|
20,581
|
|
3,230
|
|
|
Gain/(loss) from equity
method investments
|
|
1,877
|
|
(4,731)
|
|
(742)
|
|
|
Net
(loss)/income
|
|
(73,512)
|
|
150,772
|
|
23,661
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to non-controlling interest
|
|
(359)
|
|
(3,104)
|
|
(487)
|
|
|
Net (loss)/income
attributable to Sunlands Technology Group
|
|
(73,153)
|
|
153,876
|
|
24,148
|
|
|
Net (loss)/income per
share attributable to ordinary shareholders of
|
|
|
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
(10.87)
|
|
22.89
|
|
3.59
|
|
|
|
Weighted average shares
used in calculating net (loss)/income
|
|
|
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
6,729,197
|
|
6,722,670
|
|
6,722,670
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net
(loss)/income
|
|
(73,512)
|
|
150,772
|
|
23,661
|
|
|
Other
comprehensive loss, net of tax
effect of nil:
|
|
|
|
|
|
|
|
|
Change in
cumulative foreign currency translation adjustments
|
|
(27,013)
|
|
(6,117)
|
|
(960)
|
|
|
Total comprehensive
(loss)/income
|
|
(100,525)
|
|
144,655
|
|
22,701
|
|
|
Less: comprehensive
loss attributable to non-controlling
|
|
|
|
|
|
|
|
|
interest
|
|
(359)
|
|
(3,104)
|
|
(487)
|
|
|
Comprehensive
(loss)/income attributable to Sunlands Technology
|
|
|
|
|
|
|
|
|
Group
|
|
(100,166)
|
|
147,759
|
|
23,188
|
|
|
SUNLANDS TECHNOLOGY GROUP
|
|
RECONCILIATION
OF GAAP
AND NON-GAAP RESULTS
|
|
(Amounts in
thousands)
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
|
Net revenues
|
|
584,579
|
|
588,883
|
|
|
Less: other
revenues
|
|
(14,834)
|
|
(21,236)
|
|
|
Add: tax and
surcharges
|
|
150,531
|
|
58,093
|
|
|
Add: ending deferred
revenue
|
|
3,024,443
|
|
2,348,179
|
|
|
Add: deferred revenue
in connection with disposal of subsidiaries
|
|
-
|
|
29,572
|
|
|
Add: ending refund
liability
|
|
232,859
|
|
243,236
|
|
|
Less: beginning
deferred revenue
|
|
(3,090,296)
|
|
(2,540,886)
|
|
|
Less: beginning refund
liability
|
|
(239,526)
|
|
(222,266)
|
|
|
Gross billings
(non-GAAP)
|
|
647,756
|
|
483,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
|
(73,512)
|
|
150,772
|
|
|
Add: income tax
expenses/(benefit)
|
|
1,113
|
|
(20,581)
|
|
|
|
depreciation and amortization
|
|
9,011
|
|
9,651
|
|
|
interest expense
|
|
2,726
|
|
2,900
|
|
|
Less: interest
income
|
|
(6,894)
|
|
(3,018)
|
|
|
EBITDA
(non-GAAP)
|
|
(67,556)
|
|
139,724
|
|
|
SUNLANDS TECHNOLOGY GROUP
|
|
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
|
(Amounts in
thousands)
|
|
|
|
For
the Three Months Ended December 31,
|
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
Cost of
revenues
|
|
(97,841)
|
|
(89,378)
|
|
Less: Share-based
compensation expenses in cost of revenues
|
|
(113)
|
|
(56)
|
|
Non-GAAP cost of
revenues
|
|
(97,728)
|
|
(89,322)
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(608,457)
|
|
(339,368)
|
|
Less: Share-based
compensation expenses in sales and marketing expenses
|
|
(5)
|
|
(58)
|
|
Non-GAAP sales and
marketing expenses
|
|
(608,452)
|
|
(339,310)
|
|
|
|
|
|
|
General and
administrative expenses
|
|
(54,653)
|
|
(50,499)
|
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
|
(409)
|
|
(357)
|
|
Non-GAAP general and
administrative expenses
|
|
(54,244)
|
|
(50,142)
|
|
|
|
|
|
|
Operating costs and
expense
|
|
(771,549)
|
|
(489,901)
|
|
Less: Share-based
compensation expenses
|
|
(527)
|
|
(471)
|
|
Non-GAAP operating
costs and expense
|
|
(771,022)
|
|
(489,430)
|
|
|
|
|
|
|
(Loss)/income from
operations
|
|
(186,970)
|
|
98,982
|
|
Less: Share-based
compensation expenses
|
|
(527)
|
|
(471)
|
|
Non-GAAP (loss)/income from
operations
|
|
(186,443)
|
|
99,453
|
|
|
|
|
|
|
Net (loss)/income
attributable to Sunlands Technology Group
|
|
(73,153)
|
|
153,876
|
|
Less: Share-based
compensation expenses
|
|
(527)
|
|
(471)
|
|
Non-GAAP net
(loss)/income attributable to Sunlands Technology Group
|
|
(72,626)
|
|
154,347
|
|
|
|
|
|
|
Net (loss)/income per
share attributable to ordinary shareholders of
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
Basic and diluted
|
|
(10.87)
|
|
22.89
|
|
Non-GAAP net
(loss)/income per share attributable to ordinary shareholders
of
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
Basic and diluted
|
|
(10.79)
|
|
22.96
|
|
|
|
|
|
|
Weighted average shares
used in calculating net (loss)/income
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
Basic and diluted
|
|
6,729,197
|
|
6,722,670
|
|
Weighted average shares
used in calculating Non-GAAP net (loss)/income
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
Basic and diluted
|
|
6,729,197
|
|
6,722,670
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
For the
Years Ended December 31,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net revenues
|
|
2,203,791
|
|
2,507,817
|
|
393,531
|
|
|
Cost of
revenues
|
|
(387,272)
|
|
(376,189)
|
|
(59,032)
|
|
|
Gross profit
|
|
1,816,519
|
|
2,131,628
|
|
334,499
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(2,123,618)
|
|
(1,748,436)
|
|
(274,368)
|
|
|
Product development
expenses
|
|
(66,528)
|
|
(61,325)
|
|
(9,623)
|
|
|
General and administrative
expenses
|
|
(275,391)
|
|
(207,602)
|
|
(32,577)
|
|
|
Total operating
expenses
|
|
(2,465,537)
|
|
(2,017,363)
|
|
(316,568)
|
|
|
(Loss)/income from
operations
|
|
(649,018)
|
|
114,265
|
|
17,931
|
|
|
Interest
income
|
|
25,809
|
|
16,175
|
|
2,538
|
|
|
Interest
expense
|
|
(11,692)
|
|
(10,929)
|
|
(1,715)
|
|
|
Other income,
net
|
|
203,210
|
|
39,156
|
|
6,144
|
|
|
Impairment loss on
long-term investments
|
|
(882)
|
|
(5,000)
|
|
(785)
|
|
|
Gain on disposal of
subsidiaries
|
|
-
|
|
43,967
|
|
6,899
|
|
|
(Loss)/income before
income tax benefit
|
|
(432,573)
|
|
197,634
|
|
31,012
|
|
|
Income tax
benefit
|
|
236
|
|
19,618
|
|
3,078
|
|
|
Gain/(loss) from equity
method investments
|
|
1,349
|
|
(4,886)
|
|
(767)
|
|
|
Net
(loss)/income
|
|
(430,988)
|
|
212,366
|
|
33,323
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to non-controlling interest
|
|
(446)
|
|
(6,690)
|
|
(1,050)
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
attributable to Sunlands Technology Group
|
|
(430,542)
|
|
219,056
|
|
34,373
|
|
|
Net (loss)/income per
share attributable to ordinary shareholders of
|
|
|
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
(63.74)
|
|
32.56
|
|
5.11
|
|
|
Weighted average shares
used in calculating net (loss)/income
|
|
|
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
6,754,134
|
|
6,727,552
|
|
6,727,552
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the
Years Ended December 31,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net
(loss)/income
|
|
(430,988)
|
|
212,366
|
|
33,323
|
|
|
Other comprehensive
loss, net of tax effect of nil:
|
|
|
|
|
|
|
|
|
Change in cumulative foreign currency translation
adjustments
|
|
(45,945)
|
|
(13,958)
|
|
(2,190)
|
|
|
Total comprehensive
(loss)/income
|
|
(476,933)
|
|
198,408
|
|
31,133
|
|
|
Less: comprehensive
loss attributable to non-controlling
|
|
|
|
|
|
|
|
|
interest
|
|
(446)
|
|
(6,690)
|
|
(1,050)
|
|
|
Comprehensive
(loss)/income attributable to Sunlands Technology
|
|
|
|
|
|
|
|
|
Group
|
|
(476,487)
|
|
205,098
|
|
32,183
|
|
|
SUNLANDS TECHNOLOGY GROUP
|
|
RECONCILIATION
OF GAAP
AND NON-GAAP RESULTS
|
|
(Amounts in
thousands)
|
|
|
|
For the
Years Ended December 31,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
|
Net revenues
|
|
2,203,791
|
|
2,507,817
|
|
|
Less: other
revenues
|
|
(31,272)
|
|
(79,444)
|
|
|
Add: tax and
surcharges
|
|
277,831
|
|
177,966
|
|
|
Add: ending deferred
revenue
|
|
3,024,443
|
|
2,348,179
|
|
|
Add: deferred revenue
in connection with disposal of subsidiaries
|
|
-
|
|
29,572
|
|
|
Add: ending refund
liability
|
|
232,859
|
|
243,236
|
|
|
Less: beginning
deferred revenue
|
|
(3,228,770)
|
|
(3,024,443)
|
|
|
Less: beginning refund
liability
|
|
(128,478)
|
|
(232,859)
|
|
|
Gross billings
(non-GAAP)
|
|
2,350,404
|
|
1,970,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
|
(430,988)
|
|
212,366
|
|
|
Add: income tax
benefit
|
|
(236)
|
|
(19,618)
|
|
|
depreciation and amortization
|
|
40,267
|
|
37,916
|
|
|
interest expense
|
|
11,692
|
|
10,929
|
|
|
Less: interest
income
|
|
(25,809)
|
|
(16,175)
|
|
|
EBITDA
(non-GAAP)
|
|
(405,074)
|
|
225,418
|
|
|
SUNLANDS TECHNOLOGY GROUP
|
|
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
|
(Amounts in
thousands)
|
|
|
|
For the
Years Ended December 31,
|
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
Cost of
revenues
|
|
(387,272)
|
|
(376,189)
|
|
Less: Share-based
compensation expenses in cost of revenues
|
|
(146)
|
|
(101)
|
|
Non-GAAP cost of
revenues
|
|
(387,126)
|
|
(376,088)
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(2,123,618)
|
|
(1,748,436)
|
|
Less: Share-based
compensation expenses in sales and marketing expenses
|
|
(14,278)
|
|
14
|
|
Non-GAAP sales and
marketing expenses
|
|
(2,109,340)
|
|
(1,748,450)
|
|
|
|
|
|
|
General and
administrative expenses
|
|
(275,391)
|
|
(207,602)
|
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
|
(15,324)
|
|
(681)
|
|
Non-GAAP general and
administrative expenses
|
|
(260,067)
|
|
(206,921)
|
|
|
|
|
|
|
Operating costs and
expense
|
|
(2,852,809)
|
|
(2,393,552)
|
|
Less: Share-based
compensation expenses
|
|
(29,748)
|
|
(768)
|
|
Non-GAAP operating
costs and expense
|
|
(2,823,061)
|
|
(2,392,784)
|
|
|
|
|
|
|
(Loss)/income from
operations
|
|
(649,018)
|
|
114,265
|
|
Less: Share-based
compensation expenses
|
|
(29,748)
|
|
(768)
|
|
Non-GAAP (loss)/income from
operations
|
|
(619,270)
|
|
115,033
|
|
|
|
|
|
|
Net (loss)/income
attributable to Sunlands Technology Group
|
|
(430,542)
|
|
219,056
|
|
Less: Share-based
compensation expenses
|
|
(29,748)
|
|
(768)
|
|
Non-GAAP net
(loss)/income attributable to Sunlands Technology Group
|
|
(400,794)
|
|
219,824
|
|
|
|
|
|
|
Net (loss)/income per
share attributable to ordinary shareholders of
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
Basic and diluted
|
|
(63.74)
|
|
32.56
|
|
Non-GAAP net
(loss)/income per share attributable to ordinary shareholders
of
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
Basic and diluted
|
|
(59.34)
|
|
32.68
|
|
|
|
|
|
|
Weighted average shares
used in calculating net (loss)/income
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
Basic and diluted
|
|
6,754,134
|
|
6,727,552
|
|
Weighted average shares
used in calculating Non-GAAP net (loss)/income
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
Basic and diluted
|
|
6,754,134
|
|
6,727,552
|
View original
content:https://www.prnewswire.com/news-releases/sunlands-technology-group-announces-unaudited-fourth-quarter-and-full-year-2021-financial-results-301520756.html
SOURCE Sunlands Technology Group