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 second quarter ended June 30, 2023.
Second Quarter 2023 Financial and
Operational Snapshots
- Net revenues were RMB526.4 million
(US$72.6 million), representing a 5.2% decrease
year-over-year.
- Gross billings (non-GAAP) were
RMB354.1 million (US$48.8 million), representing a 4.2% decrease
year-over-year.
- Gross profit was RMB466.9 million
(US$64.4 million), representing a 0.7% increase
year-over-year.
- Net income was RMB173.9 million
(US$24.0 million), as compared to RMB114.6 million in the second
quarter of 2022.
- Net income margin, defined as net
income as a percentage of net revenues, increased to 33.0% from
20.6% in the second quarter of 2022.
- New student enrollments1 were
154,209, representing a 27.7% increase year-over-year.
- As of June 30, 2023, the Company’s
deferred revenue balance was RMB1,379.1 million (US$190.2
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.)
“In Q2, our business showcased remarkable
resilience and steady performance. Our second quarter net revenue
reached RMB526.4 million, exceeding the high end of our guidance
range. Net income experienced year-over-year increase, reaching
RMB173.9 million in Q2, marking the ninth consecutive quarter of
sustained profitability for our company. We maintain a positive
outlook for the upcoming second half of the year,” said Mr. Tongbo
Liu, Chief Executive Officer of Sunlands.
“Through proactive reassessment of our long-term
strategic focus and implementation of a series of endeavors, our
pursuit of developing valuable interest courses has continued to
yield remarkable results. Specifically, our revenue in the
professional certification preparation, professional skills and
interest courses has surged by 32.7% year-over-year, and we have
witnessed a 36.8% increase in new student enrollments in this
sector. The robust market demands have instilled us with confidence
and we remain committed to seizing emerging opportunities actively,
promoting innovation and improvement to meet the diverse needs of
adult learners, and achieving sustained growth and development,”
concluded Mr. Liu.
Mr. Hangyu Li, Financial Controller of Sunlands,
commented, “We are delighted to announce that this quarter was also
an excellent quarter in financial perspective. Our gross profit
margin reached 88.7%, an increase of 5.1 percentage points compared
with the same period last year. Thanks to our persistent efforts in
cost controls, the operating expenses decreased by RMB40.1 million,
or 11.4%, year-over-year and our net income margin increased 12.4
percentage points compared to the same period last year. Looking
forward, we will keep our commitment to delivering value to our
stakeholders and maintaining a competitive edge in the
industry.”
Financial Results for the second quarter
of 2023
Net Revenues
In the second quarter of 2023, net revenues
decreased by 5.2% to RMB526.4 million (US$72.6 million) from
RMB555.0 million in the second quarter of 2022. The decrease was
mainly driven by the year-over-year decline in gross billings in
2023.
Cost of Revenues
Cost of revenues decreased by 34.8% to RMB59.5
million (US$8.2 million) in the second quarter of 2023 from RMB91.2
million in the second quarter of 2022. The decrease was primarily
due to declined compensation expenses related to headcount
reduction of our cost of revenues personnel, including teachers and
mentors.
Gross Profit
Gross profit increased by 0.7% to RMB466.9
million (US$64.4 million) in the second quarter of 2023 from
RMB463.8 million in the second quarter of 2022.
Operating Expenses
In the second quarter of 2023, operating
expenses were RMB311.0 million (US$42.9 million), representing an
11.4% decrease from RMB351.2 million in the second quarter of
2022.
Sales and marketing expenses decreased by 7.9%
to RMB270.0 million (US$37.2 million) in the second quarter of 2023
from RMB293.0 million in the second quarter of 2022. The decrease
was mainly due to declined compensation expenses related to
headcount reduction of our sales and marketing personnel.
General and administrative expenses decreased by
29.1% to RMB33.1 million (US$4.6 million) in the second quarter of
2023 from RMB46.6 million in the second quarter of 2022. The
decrease was mainly due to declined rental expenses due to the
early termination of a lease contract.
Product development expenses decreased by 31.0%
to RMB8.0 million (US$1.1 million) in the second quarter of 2023
from RMB11.6 million in the second quarter of 2022. The decrease
was mainly due to declined compensation expenses related to
headcount reduction of our product development personnel.
Net Income
Net income for the second quarter of 2023 was
RMB173.9 million (US$24.0 million), as compared to RMB114.6 million
in the second quarter of 2022.
Basic and Diluted Net Income Per
Share
Basic and diluted net income per share was
RMB25.12 (US$3.46) in the second quarter of 2023.
Cash, Cash Equivalents, Restricted Cash
and Short-term Investments
As of June 30, 2023, the Company had RMB749.5
million (US$103.4 million) of cash, cash equivalents and restricted
cash and RMB63.2 million (US$8.7 million) of short-term
investments, as compared to RMB757.4 million of cash, cash
equivalents and restricted cash and RMB70.5 million of short-term
investments as of December 31, 2022.
Deferred Revenue
As of June 30, 2023, the Company had a deferred
revenue balance of RMB1,379.1 million (US$190.2 million), as
compared to RMB1,690.9 million as of December 31, 2022.
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 RMB1.0 million
(US$0.1 million) in the second quarter of 2023, as compared to
RMB0.3 million in the second quarter of 2022.
Share Repurchase
On December 6, 2021, the Company’s board of
directors authorized a share repurchase program, under which the
Company may repurchase up to US$15.0 million of Class A ordinary
shares in the form of ADSs over the next 24 months. As of August
17, 2023, the Company had repurchased an aggregate of 456,118 ADSs
for approximately US$2.1 million under the share repurchase
program.
Financial Results for the First Six
Months of 2023
Net Revenues
In the first six months of 2023, net revenues
decreased by 6.4% to RMB1,093.2 million (US$150.8 million) from
RMB1,168.3 million in the first six months of 2022.
Cost of Revenues
Cost of revenues decreased by 32.1% to RMB127.6
million (US$17.6 million) in the first six months of 2023 from
RMB188.0 million in the first six months of 2022.
Gross Profit
Gross profit decreased by 1.5% to RMB965.6
million (US$133.2 million) from RMB980.3 million in the first six
months of 2022.
Operating Expenses
In the first six months of 2023, operating
expenses were RMB631.8 million (US$87.1 million), representing a
9.4% decrease from RMB697.0 million in the first six months of
2022.
Sales and marketing expenses decreased by 7.9%
to RMB541.4 million (US$74.7 million) in the first six months of
2023 from RMB588.0 million in the first six months of 2022.
General and administrative expenses decreased by
14.5% to RMB72.7 million (US$10.0 million) in the first six months
of 2023 from RMB85.1 million in the first six months of 2022.
Product development expenses decreased by 26.2%
to RMB17.7 million (US$2.4 million) in the first six months of 2023
from RMB23.9 million in the first six months of 2022.
Net Income
Net income for the first six months of 2023 was
RMB354.0 million (US$48.8 million), compared with RMB294.0 million
in the first six months of 2022.
Basic and Diluted Net Income Per
Share
Basic and diluted net income per share was
RMB51.13 (US$7.05) in the first six months of 2023, compared with
RMB43.95 in the first six months of 2022.
Capital Expenditures
Capital expenditures were incurred primarily in
connection with IT infrastructure equipment and leasehold
improvements necessary to support the Company’s operations. Capital
expenditures were RMB4.8 million (US$0.7 million) in the first six
months of 2023, compared with RMB1.2 million in the first six
months of 2022.
Outlook
For the third quarter of 2023, Sunlands
currently expects net revenues to be between RMB470 million to
RMB490 million, which would represent a decrease of 15.0% to 18.4%
year-over-year. The above outlook is based on the current market
conditions and reflects the Company’s current and preliminary
estimates of market and operating conditions and customer demand,
which are all subject to substantial uncertainty.
Exchange Rate
The Company’s business is primarily conducted in
China and all revenues are denominated in Renminbi (“RMB”). This
announcement contains currency conversions of RMB amounts into U.S.
dollars (“US$”) solely for the convenience of the reader. Unless
otherwise noted, all translations from RMB to US$ are made at a
rate of RMB7.2513 to US$1.00, the effective noon buying rate for
June 30, 2023 as set forth in the H.10 statistical release of the
Federal Reserve Board. No representation is made that the RMB
amounts could have been, or could be, converted, realized or
settled into US$ at that rate on June 30, 2023, 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 August 18, 2023, following the quarterly results
announcement.
For participants who wish to join the call,
please access the link provided below to complete online
registration 15 minutes prior to the scheduled call start time.
Upon registration, participants will receive details for the
conference call, including dial-in numbers, a personal PIN and an
e-mail with detailed instructions to join the conference call.
Registration
Link:https://register.vevent.com/register/BI2fa7774d43e34ce697c1d5bd158f825d
Additionally, a live webcast and archive of the
conference call will be available on the Investor Relations section
of Sunlands' website at https://ir.sunlands.com/.
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- or diploma-oriented post-secondary
courses as well as professional certification preparation,
professional skills and interest courses. Students can access the
Company's 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 income from
operations and Non-GAAP net 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
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 income exclude
share-based compensation expenses, and basic and diluted net 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 GroupInvestor Relations
Email: sl-ir@sunlands.comSOURCE: Sunlands Technology Group
|
SUNLANDS TECHNOLOGY GROUPUNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in
thousands, except for share and per share data, or otherwise
noted) |
|
|
| |
|
As of December 31, |
|
As of June 30, |
| |
|
2022 |
|
2023 |
| |
|
RMB |
|
RMB |
|
US$ |
| ASSETS |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
753,642 |
|
|
|
746,770 |
|
|
|
102,984 |
|
|
Restricted cash |
|
|
3,762 |
|
|
|
2,705 |
|
|
|
373 |
|
|
Short-term investments |
|
|
70,542 |
|
|
|
63,209 |
|
|
|
8,717 |
|
|
Prepaid expenses and other current assets |
|
|
98,272 |
|
|
|
116,157 |
|
|
|
16,019 |
|
|
Deferred costs, current |
|
|
42,886 |
|
|
|
23,238 |
|
|
|
3,205 |
|
| Total current assets |
|
|
969,104 |
|
|
|
952,079 |
|
|
|
131,298 |
|
| Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
813,783 |
|
|
|
799,804 |
|
|
|
110,298 |
|
|
Intangible assets, net |
|
|
1,509 |
|
|
|
1,784 |
|
|
|
246 |
|
|
Right-of-use assets |
|
|
274,643 |
|
|
|
139,732 |
|
|
|
19,270 |
|
|
Deferred costs, non-current |
|
|
78,839 |
|
|
|
72,789 |
|
|
|
10,038 |
|
|
Long-term investments |
|
|
73,513 |
|
|
|
66,419 |
|
|
|
9,160 |
|
|
Deferred tax assets |
|
|
26,799 |
|
|
|
20,270 |
|
|
|
2,795 |
|
|
Other non-current assets |
|
|
37,880 |
|
|
|
35,342 |
|
|
|
4,874 |
|
| Total non-current assets |
|
|
1,306,966 |
|
|
|
1,136,140 |
|
|
|
156,681 |
|
| TOTAL ASSETS |
|
|
2,276,070 |
|
|
|
2,088,219 |
|
|
|
287,979 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS’
DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued expenses and other current liabilities |
|
|
436,339 |
|
|
|
367,034 |
|
|
|
50,616 |
|
|
Deferred revenue, current |
|
|
986,086 |
|
|
|
716,647 |
|
|
|
98,830 |
|
|
Lease liabilities, current portion |
|
|
17,065 |
|
|
|
7,394 |
|
|
|
1,020 |
|
|
Long-term debt, current portion |
|
|
38,654 |
|
|
|
38,654 |
|
|
|
5,331 |
|
| Total current liabilities |
|
|
1,478,144 |
|
|
|
1,129,729 |
|
|
|
155,797 |
|
|
SUNLANDS TECHNOLOGY GROUPUNAUDITED
CONDENSED CONSOLIDATED BALANCE
SHEETS-continued(Amounts in thousands, except for
share and per share data, or otherwise noted) |
| |
| |
|
As of December 31, |
|
As of June 30, |
| |
|
2022 |
|
2023 |
| |
|
RMB |
|
RMB |
|
US$ |
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue, non-current |
|
|
704,860 |
|
|
|
662,426 |
|
|
|
91,353 |
|
|
Lease liabilities, non-current portion |
|
|
316,844 |
|
|
|
161,215 |
|
|
|
22,233 |
|
|
Deferred tax liabilities |
|
|
5,984 |
|
|
|
4,555 |
|
|
|
628 |
|
|
Other non-current liabilities |
|
|
6,770 |
|
|
|
6,870 |
|
|
|
947 |
|
|
Long-term debt, non-current portion |
|
|
143,319 |
|
|
|
123,992 |
|
|
|
17,099 |
|
| Total non-current
liabilities |
|
|
1,177,777 |
|
|
|
959,058 |
|
|
|
132,260 |
|
| TOTAL LIABILITIES |
|
|
2,655,921 |
|
|
|
2,088,787 |
|
|
|
288,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SHAREHOLDERS’ DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary shares (par value of US$0.00005, 796,062,195
shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
authorized; 2,982,516 and 3,131,807 shares issued as of December
31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
and June 30, 2023, respectively; 2,618,698 and 2,740,119
shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding as of December 31, 2022 and June 30, 2023,
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, 2022 and June 30, 2023, respectively) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Class C ordinary shares (par value of US$0.00005, 203,111,416
shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
authorized; 3,481,353 and 3,332,062 shares issued and
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
as of December 31, 2022 and June 30, 2023, respectively) |
|
|
1 |
|
|
|
1 |
|
|
|
- |
|
|
Treasury stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Accumulated deficit |
|
|
(2,812,114 |
) |
|
|
(2,458,125 |
) |
|
|
(338,991 |
) |
|
Additional paid-in capital |
|
|
2,309,740 |
|
|
|
2,308,277 |
|
|
|
318,326 |
|
|
Accumulated other comprehensive income |
|
|
127,885 |
|
|
|
155,161 |
|
|
|
21,398 |
|
| Total Sunlands Technology
Group shareholders’ (deficit)/equity |
|
|
(374,487 |
) |
|
|
5,315 |
|
|
|
733 |
|
| Non-controlling interest |
|
|
(5,364 |
) |
|
|
(5,883 |
) |
|
|
(811 |
) |
| TOTAL SHAREHOLDERS’
DEFICIT |
|
|
(379,851 |
) |
|
|
(568 |
) |
|
|
(78 |
) |
| TOTAL LIABILITIES AND
SHAREHOLDERS’ DEFICIT |
|
|
2,276,070 |
|
|
|
2,088,219 |
|
|
|
287,979 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
SUNLANDS TECHNOLOGY GROUPUNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except for share
and per share data, or otherwise noted) |
|
|
| |
|
For the Three Months Ended June 30, |
| |
|
2022 |
|
2023 |
| |
|
RMB |
|
RMB |
|
US$ |
| Net revenues |
|
|
554,991 |
|
|
|
526,353 |
|
|
|
72,587 |
|
| Cost of revenues |
|
|
(91,237 |
) |
|
|
(59,491 |
) |
|
|
(8,204 |
) |
| Gross profit |
|
|
463,754 |
|
|
|
466,862 |
|
|
|
64,383 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
|
(292,978 |
) |
|
|
(269,969 |
) |
|
|
(37,230 |
) |
|
Product development expenses |
|
|
(11,578 |
) |
|
|
(7,992 |
) |
|
|
(1,102 |
) |
|
General and administrative expenses |
|
|
(46,635 |
) |
|
|
(33,085 |
) |
|
|
(4,563 |
) |
| Total operating expenses |
|
|
(351,191 |
) |
|
|
(311,046 |
) |
|
|
(42,895 |
) |
| Income from operations |
|
|
112,563 |
|
|
|
155,816 |
|
|
|
21,488 |
|
| Interest income |
|
|
3,842 |
|
|
|
7,561 |
|
|
|
1,043 |
|
| Interest expense |
|
|
(2,552 |
) |
|
|
(2,046 |
) |
|
|
(282 |
) |
| Other income, net |
|
|
4,750 |
|
|
|
8,171 |
|
|
|
1,127 |
|
| Gain on disposal of a
subsidiary |
|
|
- |
|
|
|
247 |
|
|
|
34 |
|
| Income before income tax
(expenses)/benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
and (loss)/gain from equity method investments |
|
|
118,603 |
|
|
|
169,749 |
|
|
|
23,410 |
|
| Income tax
(expenses)/benefit |
|
|
(3,652 |
) |
|
|
1,404 |
|
|
|
194 |
|
| (Loss)/gain from equity method
investments |
|
|
(391 |
) |
|
|
2,730 |
|
|
|
376 |
|
| Net income |
|
|
114,560 |
|
|
|
173,883 |
|
|
|
23,980 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Less: Net loss attributable to
non-controlling interest |
|
|
(52 |
) |
|
|
- |
|
|
|
- |
|
| Net income attributable to
Sunlands Technology Group |
|
|
114,612 |
|
|
|
173,883 |
|
|
|
23,980 |
|
| Net income per share
attributable to ordinary shareholders of |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunlands Technology Group: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
16.89 |
|
|
|
25.12 |
|
|
|
3.46 |
|
| Weighted average shares used
in calculating net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
per ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
6,784,685 |
|
|
|
6,921,304 |
|
|
|
6,921,304 |
|
|
SUNLANDS TECHNOLOGY GROUPUNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME(Amounts in thousands) |
| |
| |
|
For the Three Months Ended June 30, |
| |
|
2022 |
|
2023 |
| |
|
RMB |
|
RMB |
|
US$ |
|
Net income |
|
|
114,560 |
|
|
|
173,883 |
|
|
|
23,980 |
|
| Other comprehensive income,
net of tax effect of nil: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cumulative foreign currency translation adjustments |
|
|
31,807 |
|
|
|
29,603 |
|
|
|
4,082 |
|
| Total comprehensive
income |
|
|
146,367 |
|
|
|
203,486 |
|
|
|
28,062 |
|
| Less: comprehensive loss
attributable to non-controlling interest |
|
|
(52 |
) |
|
|
- |
|
|
|
- |
|
| Comprehensive income
attributable to Sunlands Technology Group |
|
|
146,419 |
|
|
|
203,486 |
|
|
|
28,062 |
|
|
SUNLANDS TECHNOLOGY GROUPRECONCILIATION OF
GAAP AND NON-GAAP RESULTS(Amounts in
thousands) |
| |
| |
|
For the Three Months Ended June 30, |
| |
|
2022 |
|
2023 |
| |
|
RMB |
|
RMB |
|
Net revenues |
|
|
554,991 |
|
|
|
526,353 |
|
| Less: other revenues |
|
|
(31,088 |
) |
|
|
(42,377 |
) |
| Add: tax and surcharges |
|
|
17,209 |
|
|
|
9,779 |
|
| Add: ending deferred
revenue |
|
|
1,998,062 |
|
|
|
1,379,073 |
|
| Add: ending refund
liability |
|
|
199,028 |
|
|
|
107,319 |
|
| Less: beginning deferred
revenue |
|
|
(2,170,948 |
) |
|
|
(1,513,896 |
) |
| Less: beginning refund
liability |
|
|
(197,494 |
) |
|
|
(112,188 |
) |
| Gross billings (non-GAAP) |
|
|
369,760 |
|
|
|
354,063 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Net income |
|
|
114,560 |
|
|
|
173,883 |
|
| Add: income tax
expenses/(benefit) |
|
|
3,652 |
|
|
|
(1,404 |
) |
|
depreciation and amortization |
|
|
9,274 |
|
|
|
7,677 |
|
|
interest expense |
|
|
2,552 |
|
|
|
2,046 |
|
| Less: interest income |
|
|
(3,842 |
) |
|
|
(7,561 |
) |
| EBITDA (non-GAAP) |
|
|
126,196 |
|
|
|
174,641 |
|
|
SUNLANDS TECHNOLOGY GROUPRECONCILIATION OF
GAAP AND NON-GAAP RESULTS(Amounts in thousands, except for
share and per share data, or otherwise noted) |
| |
| |
|
For the Three Months Ended June 30, |
| |
|
2022 |
|
2023 |
| |
|
RMB |
|
RMB |
|
Cost of revenues |
|
|
(91,237 |
) |
|
|
(59,491 |
) |
|
Less: Share-based compensation expenses in cost of revenues |
|
|
- |
|
|
|
- |
|
|
Non-GAAP cost of revenues |
|
|
(91,237 |
) |
|
|
(59,491 |
) |
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
|
(292,978 |
) |
|
|
(269,969 |
) |
|
Less: Share-based compensation expenses in sales and marketing
expenses |
|
|
(4,088 |
) |
|
|
- |
|
|
Non-GAAP sales and marketing expenses |
|
|
(288,890 |
) |
|
|
(269,969 |
) |
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
(46,635 |
) |
|
|
(33,085 |
) |
| Less: Share-based compensation
expenses in general and administrative expenses |
|
|
(2,725 |
) |
|
|
- |
|
| Non-GAAP general and
administrative expenses |
|
|
(43,910 |
) |
|
|
(33,085 |
) |
| |
|
|
|
|
|
|
|
|
| Operating costs and
expense |
|
|
(442,428 |
) |
|
|
(370,537 |
) |
| Less: Share-based compensation
expenses |
|
|
(6,813 |
) |
|
|
- |
|
| Non-GAAP operating costs and
expense |
|
|
(435,615 |
) |
|
|
(370,537 |
) |
| |
|
|
|
|
|
|
|
|
| Income from operations |
|
|
112,563 |
|
|
|
155,816 |
|
| Less: Share-based compensation
expenses |
|
|
(6,813 |
) |
|
|
- |
|
| Non-GAAP income
from operations |
|
|
119,376 |
|
|
|
155,816 |
|
| |
|
|
|
|
|
|
|
|
| Net income attributable to
Sunlands Technology Group |
|
|
114,612 |
|
|
|
173,883 |
|
| Less: Share-based compensation
expenses |
|
|
(6,813 |
) |
|
|
- |
|
| Non-GAAP net income
attributable to Sunlands Technology Group |
|
|
121,425 |
|
|
|
173,883 |
|
| |
|
|
|
|
|
|
|
|
| Net income per share
attributable to ordinary shareholders of |
|
|
|
|
|
|
|
|
|
Sunlands Technology Group: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
16.89 |
|
|
|
25.12 |
|
| Non-GAAP net income per share
attributable to ordinary shareholders of |
|
|
|
|
|
|
|
|
|
Sunlands Technology Group: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
17.90 |
|
|
|
25.12 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average shares used
in calculating net income |
|
|
|
|
|
|
|
|
|
per ordinary share: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
6,784,685 |
|
|
|
6,921,304 |
|
| Weighted average shares used
in calculating Non-GAAP net income |
|
|
|
|
|
|
|
|
|
per ordinary share: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
6,784,685 |
|
|
|
6,921,304 |
|
|
SUNLANDS TECHNOLOGY GROUPUNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except for share
and per share data, or otherwise noted) |
|
|
| |
|
For the Six Months Ended June 30, |
| |
|
2022 |
|
2023 |
| |
|
RMB |
|
RMB |
|
US$ |
|
Net revenues |
|
|
1,168,305 |
|
|
|
1,093,229 |
|
|
|
150,763 |
|
| Cost of revenues |
|
|
(187,957 |
) |
|
|
(127,646 |
) |
|
|
(17,603 |
) |
| Gross profit |
|
|
980,348 |
|
|
|
965,583 |
|
|
|
133,160 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
|
(587,975 |
) |
|
|
(541,383 |
) |
|
|
(74,660 |
) |
|
Product development expenses |
|
|
(23,933 |
) |
|
|
(17,672 |
) |
|
|
(2,437 |
) |
|
General and administrative expenses |
|
|
(85,095 |
) |
|
|
(72,725 |
) |
|
|
(10,029 |
) |
| Total operating expenses |
|
|
(697,003 |
) |
|
|
(631,780 |
) |
|
|
(87,126 |
) |
| Income from operations |
|
|
283,345 |
|
|
|
333,803 |
|
|
|
46,034 |
|
| Interest income |
|
|
7,008 |
|
|
|
14,122 |
|
|
|
1,948 |
|
| Interest expense |
|
|
(5,277 |
) |
|
|
(4,170 |
) |
|
|
(575 |
) |
| Other income, net |
|
|
14,342 |
|
|
|
16,969 |
|
|
|
2,340 |
|
| Gain on disposal of a
subsidiary |
|
|
- |
|
|
|
247 |
|
|
|
34 |
|
| Impairment loss on long-term
investments |
|
|
(500 |
) |
|
|
- |
|
|
|
- |
|
| Income before income tax
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
and loss from equity method investments |
|
|
298,918 |
|
|
|
360,971 |
|
|
|
49,781 |
|
| Income tax expenses |
|
|
(4,343 |
) |
|
|
(6,327 |
) |
|
|
(873 |
) |
| Loss from equity method
investments |
|
|
(604 |
) |
|
|
(654 |
) |
|
|
(90 |
) |
| Net income |
|
|
293,971 |
|
|
|
353,990 |
|
|
|
48,818 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Less: Net (loss)/income
attributable to non-controlling interest |
|
|
(1,279 |
) |
|
|
1 |
|
|
|
- |
|
| Net income attributable to
Sunlands Technology Group |
|
|
295,250 |
|
|
|
353,989 |
|
|
|
48,818 |
|
| Net income per share
attributable to ordinary shareholders of |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunlands Technology Group: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
43.95 |
|
|
|
51.13 |
|
|
|
7.05 |
|
| Weighted average shares used
in calculating net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
per ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
6,717,836 |
|
|
|
6,923,858 |
|
|
|
6,923,858 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
SUNLANDS TECHNOLOGY GROUPUNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME(Amounts in thousands) |
| |
|
For the Six Months Ended June 30, |
| |
|
2022 |
|
2023 |
| |
|
RMB |
|
RMB |
|
US$ |
|
Net income |
|
|
293,971 |
|
|
|
353,990 |
|
|
|
48,818 |
|
| Other comprehensive income,
net of tax effect of nil: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cumulative foreign currency translation adjustments |
|
|
29,188 |
|
|
|
27,276 |
|
|
|
3,762 |
|
| Total comprehensive
income |
|
|
323,159 |
|
|
|
381,266 |
|
|
|
52,580 |
|
| Less: comprehensive
(loss)/income attributable to non-controlling interest |
|
|
(1,279 |
) |
|
|
1 |
|
|
|
- |
|
| Comprehensive income
attributable to Sunlands Technology Group |
|
|
324,438 |
|
|
|
381,265 |
|
|
|
52,580 |
|
|
SUNLANDS TECHNOLOGY GROUPRECONCILIATION OF
GAAP AND NON-GAAP RESULTS(Amounts in thousands) |
| |
| |
|
For the Six Months Ended June 30, |
| |
|
2022 |
|
2023 |
| |
|
RMB |
|
RMB |
|
Net revenues |
|
|
1,168,305 |
|
|
|
1,093,229 |
|
| Less: other revenues |
|
|
(57,995 |
) |
|
|
(84,224 |
) |
| Add: tax and surcharges |
|
|
44,421 |
|
|
|
27,774 |
|
| Add: ending deferred
revenue |
|
|
1,998,062 |
|
|
|
1,379,073 |
|
| Add: ending refund
liability |
|
|
199,028 |
|
|
|
107,319 |
|
| Less: beginning deferred
revenue |
|
|
(2,348,179 |
) |
|
|
(1,690,946 |
) |
| Less: beginning refund
liability |
|
|
(243,236 |
) |
|
|
(133,066 |
) |
| Gross billings (non-GAAP) |
|
|
760,406 |
|
|
|
699,159 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Net income |
|
|
293,971 |
|
|
|
353,990 |
|
| Add: income tax expenses |
|
|
4,343 |
|
|
|
6,327 |
|
|
depreciation and amortization |
|
|
19,161 |
|
|
|
15,267 |
|
|
interest expense |
|
|
5,277 |
|
|
|
4,170 |
|
| Less: interest income |
|
|
(7,008 |
) |
|
|
(14,122 |
) |
| EBITDA (non-GAAP) |
|
|
315,744 |
|
|
|
365,632 |
|
|
SUNLANDS TECHNOLOGY GROUPRECONCILIATION OF
GAAP AND NON-GAAP RESULTS(Amounts in thousands, except for
share and per share data, or otherwise noted) |
| |
| |
|
For the Six Months Ended June 30, |
| |
|
2022 |
|
2023 |
| |
|
RMB |
|
RMB |
|
Cost of revenues |
|
|
(187,957 |
) |
|
|
(127,646 |
) |
|
Less: Share-based compensation expenses in cost of revenues |
|
|
(33 |
) |
|
|
- |
|
|
Non-GAAP cost of revenues |
|
|
(187,924 |
) |
|
|
(127,646 |
) |
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
|
(587,975 |
) |
|
|
(541,383 |
) |
|
Less: Share-based compensation expenses in sales and marketing
expenses |
|
|
(4,166 |
) |
|
|
- |
|
|
Non-GAAP sales and marketing expenses |
|
|
(583,809 |
) |
|
|
(541,383 |
) |
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
(85,095 |
) |
|
|
(72,725 |
) |
| Less: Share-based compensation
expenses in general and administrative expenses |
|
|
(2,982 |
) |
|
|
- |
|
| Non-GAAP general and
administrative expenses |
|
|
(82,113 |
) |
|
|
(72,725 |
) |
| |
|
|
|
|
|
|
|
|
| Operating costs and
expense |
|
|
(884,960 |
) |
|
|
(759,426 |
) |
| Less: Share-based compensation
expenses |
|
|
(7,181 |
) |
|
|
- |
|
| Non-GAAP operating costs and
expense |
|
|
(877,779 |
) |
|
|
(759,426 |
) |
| |
|
|
|
|
|
|
|
|
| Income from operations |
|
|
283,345 |
|
|
|
333,803 |
|
| Less: Share-based compensation
expenses |
|
|
(7,181 |
) |
|
|
- |
|
| Non-GAAP income from
operations |
|
|
290,526 |
|
|
|
333,803 |
|
| |
|
|
|
|
|
|
|
|
| Net income attributable to
Sunlands Technology Group |
|
|
295,250 |
|
|
|
353,989 |
|
| Less: Share-based compensation
expenses |
|
|
(7,181 |
) |
|
|
- |
|
| Non-GAAP net income
attributable to Sunlands Technology Group |
|
|
302,431 |
|
|
|
353,989 |
|
| |
|
|
|
|
|
|
|
|
| Net income per share
attributable to ordinary shareholders of |
|
|
|
|
|
|
|
|
|
Sunlands Technology Group: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
43.95 |
|
|
|
51.13 |
|
| Non-GAAP net income per share
attributable to ordinary shareholders of |
|
|
|
|
|
|
|
|
|
Sunlands Technology Group: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
45.02 |
|
|
|
51.13 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average shares used
in calculating net income |
|
|
|
|
|
|
|
|
|
per ordinary share: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
6,717,836 |
|
|
|
6,923,858 |
|
| Weighted average shares used
in calculating Non-GAAP net income |
|
|
|
|
|
|
|
|
|
per ordinary share: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
6,717,836 |
|
|
|
6,923,858 |
|
Sunlands Technology (NYSE:STG)
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From Mar 2024 to Apr 2024
Sunlands Technology (NYSE:STG)
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From Apr 2023 to Apr 2024
