UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

For the month of September 2024

Commission File Number: 001-39559

 

Lixiang Education Holding Co., Ltd.

(Exact name of registrant as specified in its charter)

 

No. 818 Hua Yuan Street

Liandu District, Lishui City, Zhejiang Province, 323000

People’s Republic of China

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒                    Form 40-F ☐

 

 

 

 

 

 

Lixiang Education Announces Unaudited Half Year 2024 Financial Results

 

Lishui, China, September 27, 2024 — Lixiang Education Holding Co., Ltd. (NASDAQ: LXEH) (the “Company”), a prestigious international and vocational education service provider in China, today announced its unaudited financial results for the first half year of 2024.

 

First Half Year 2024 Financial Results

 

Net Revenues

 

Net revenues for the six months ended June 30, 2024 were RMB15.3 million (US$2.1 million), compared with RMB25.2 million for the same period ended June 30, 2023.

 

Tuition and accommodation income

 

For the vocational education, revenue contribution for the period was RMB8.1 million, primarily from Langfang School, a decrease of RMB4.6 million by 36.4% compared with RMB12.7 million for the same period ended June 30, 2023, primarily due to the numbers of graduates of 751 exceeded the enrolment of new students of 163.

 

For the high school education, revenue contribution for the period was RMB1.5 million from Lishui International School, a decrease of RMB6.5 million by 80.9% compared with RMB8.0 million for the same period ended June 30, 2023 from Qingtian International School, as we disposed Qingtian International School as of December 31, 2023.

 

Sales of meal, uniforms and learning materials

 

Revenue contribution for the period was RMB1.0 million, compared with RMB1.7 million for the same period in 2023 as Liandu WFOE ceased to provide meal and uniforms to students since 2024.

 

Others

 

Other revenue of RMB4.7 million primary consisted of course design, development and training in the first half year of 2024 of RMB2.8 million, consulting services of oversea students’ enrollment of RMB0.6 million, comprehensive service for flexible employment of RMB0.5 million, rental income of RMB0.4 million from third parties and RMB0.4 million from our related party for the six months ended June 30, 2024.

 

Other revenue of RMB2.8 million primary consisted of consulting services of oversea students’ enrollment in the first half year of 2023 of RMB1.3 million, rental income of RMB0.7 million from third parties and RMB0.4 million from our related party for the six months ended June 30, 2023.

 

Cost of Revenues

 

Cost of revenues for the six months ended June 30, 2024 was RMB15.1 million (US$2.1 million), decreased by RMB4.7 million from RMB19.8 million for the same period ended June 30, 2023. The decrease in cost of revenues was mainly included: (i) the decrease salary, bonus, social security and welfare benefits of teachers by RMB5.9 million, primary attribute to the disposal of Qingtian International School, and partially offset by newly established Lishui International School of RMB1.0 million; (ii) the decrease rental cost and other utilities charge by RMB1.2 million; and partially offset by the increase of RMB3.0 million of property taxes paid this year.

 

Gross Profit

 

As a result of the foregoing, gross profit for the first half year of 2024 was RMB0.3 million, decreased significantly compared with the gross profit of RMB5.4 million for the same period ended June 30, 2023.

 

1

 

 

Operating Expenses

 

Total operating expenses for the first half year of 2024 were RMB9.7 million (US$1.3 million), compared with RMB11.7 million for the same period ended June 30, 2023. The decrease was mainly due to the decrease of general and administrative expenses.

 

General and administrative expense for the first half year of 2024 was RMB9.7 million (US$1.3 million), decreased by RMB2.0 million compared with that for the same period of 2023. The decrease general and administrative expense was mainly included: (i) the reversal of credit losses from Beijing S.K. of RMB1.2 million due to subsequent collection; (ii) the decrease of professional services fee of RMB1.5 million.

 

Sales and marketing expenses for the first half year of 2024 was RMB7.0 thousand (US$1.0 thousand), compared with RMB20.0 thousand for the same period ended June 30, 2023.

 

Other Income, net

 

Total net other income for the first half year of 2024 was RMB1.9 million (US$0.3 million), compared with RMB1.1 million for the same period ended June 30, 2023. The increase was due to the increase grants for needy students of RMB1.9 million received by Langfang School and partially offset by a decrease of government grants of RMB1.1 million received by Qingtian International School to support the development of school.

 

Loss from discontinued operation, net of tax

 

Loss from discontinued operation, net of tax amounted to RMB0.2 million for the first half year of 2023. In November 2023, the Group disposed Chuangmei Weiye, which had a major effect on operations and financial results of the Group and therefore resulted in a discontinued operation.

 

Net Loss

 

Net loss for the first half year of 2024 was RMB8.6 million (US$1.2 million), compared with net loss of RMB8.2 million for the same period ended June 30, 2023.

 

Net Loss Attributed to Ordinary Shares

 

Basic and diluted net loss from continuing operation per share attributable to ordinary shareholders of the Company from for the first half year of 2024 were RMB0.07, compared with basic and diluted net loss from continuing operation per share of RMB0.12 for the same period ended June 30, 2023.

 

Basic and diluted net loss from continuing operation per ADS attributable to ADS holders of the Company for the first half year of 2024 were RMB0.74, compared with basic and diluted net loss from continuing operation per ADS of RMB1.21 for the same period ended June 30, 2023.

 

2

 

 

Cash and Working Capital

 

As of June 30, 2024, the Company had total cash of RMB230.6 million (US$31.7 million), an increase of RMB3.6 million from RMB227.0 million as of December 31, 2023. The increase was mainly due to the increase of amounts due to Affected Entity and the decrease of prepayments and other current assets, and partially offset by the repayments of borrowings with bank.

 

Contingency

 

On April 19, 2024, Langfang School received the final judgment in relation to its contractual dispute against Beijing S.K.’s affiliates that Langfang would not need to pay rental expenses for the period from January 1, 2022 to August 31, 2023 or the period after September 1, 2023 to Hebei Technical College of Petroleum Profession, but should vacate the premises in relation to the dispute by July 30, 2024.

 

On July 31, 2024, Langfang School entered into cooperation contract with Hebei Technical College of Petroleum Profession, to lease the premises from July 31, 2024 to July 30, 2030.

 

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 Renminbi to U.S. dollars are made at a rate of RMB7.2672 to US$1.00, the rate in effect as of June 30, 2024 published by the Federal Reserve Board.

 

Safe Harbor Statement

 

This announcement contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in announcements and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s strategies, future business development, and financial condition and results of operations; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; the Company’s ability to maintain and enhance its brand. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

3

 

 

Lixiang Education Holding Co., Ltd.

CONSOLIDATED BALANCE SHEETS

(RMB, except share data and per share data, or otherwise noted)

 

    As of  
    December 31, 2023     June 30,
2024
 
    RMB
(Audited)
    RMB
(Unaudited)
    US$
(Unaudited)
 
ASSETS                  
Current assets:                  
Cash     227,040,251       230,566,089       31,726,950  
Inventories     886,895       -       -  
Prepayments and other current assets, net     6,193,544       4,460,460       613,780  
Accounts receivable     9,380       24,347       3,350  
Amounts due from related party     10,750,000       11,127,143       1,531,146  
Total current assets     244,880,070       246,178,039       33,875,226  
Non-current assets:                        
Property and equipment, net     151,549,586       149,886,276       20,625,038  
Land use rights, net     34,873,935       34,400,586       4,733,678  
Intangible assets, net     196,476       180,082       24,780  
Right-of-use assets     2,471,003       1,469,170       202,165  
Total non-current assets     189,091,000       185,936,114       25,585,661  
TOTAL ASSETS     433,971,070       432,114,153       59,460,887  
LIABILITIES AND SHAREHOLDERS’ EQUITY                        
Current liabilities:                        
Short-term borrowings     74,000,000       64,000,000       8,806,693  
Accounts payable     1,504,098       524,024       72,108  
Deferred revenue, current     6,513,072       4,666,625       642,149  
Salary and welfare payable     2,454,440       2,061,531       283,676  
Amounts due to a related party     8,000,000       8,000,000       1,100,837  
Taxes payable     831,509       888,375       122,244  
Income tax payable     219,832       290,424       39,964  
Accrued liabilities and other current liabilities     5,947,842       5,171,135       711,572  
Long-term loans and borrowings, current     1,250,000       -       -  
Operating lease liabilities, current     2,471,003       1,100,440       151,426  
Total current liabilities     103,191,796       86,702,554       11,930,669  
Non-current liabilities:                        
Amounts due to Affected Entity, non-current     173,680,363       173,415,763       23,862,803  
Operating lease liabilities, non-current     -       244,877       33,696  
Other non-current liabilities     -       1,000,000       137,605  
Total non-current liabilities     173,680,363       174,660,640       24,034,104  
Total liabilities     276,872,159       261,363,194       35,964,773  
Commitments and contingencies                        
Shareholders’ equity:                        
Ordinary shares (USD$0.0001 par value; 500,000,000 shares authorized, 116,667,000 and 116,667,000 shares issued and outstanding as of December 31, 2023 and June 30, 2024, respectively)     81,092       81,092       11,159  
Additional paid-in capital     333,552,470       354,501,012       48,780,963  
Statutory reserves     60,610,543       60,756,708       8,360,401  
Accumulated other comprehensive income     8,485,041       10,078,934       1,386,907  
Accumulated deficit     (245,319,648 )     (254,025,834 )     (34,955,118 )
Total Lixiang Education Holding Co., Ltd. shareholders’ equity     157,409,498       171,391,912       23,584,312  
Non-controlling interests     (310,587 )     (640,953 )     (88,198 )
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY     157,098,911       170,750,959       23,496,114  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY     433,971,070       432,114,153       59,460,887  

 

4

 

 

Lixiang Education Holding Co., Ltd.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(RMB, except share data and per share data, or otherwise noted)

 

   For the six months ended June 30, 
   2023   2024 
   RMB   RMB   US$ 
Net revenues:            
Revenue from third parties   24,848,465    14,937,481    2,055,466 
Revenue from related party   377,143    377,143    51,897 
Total net revenues   25,225,608    15,314,624    2,107,363 
Cost of revenues   (19,828,324)   (15,050,531)   (2,071,022)
Gross profit   5,397,284    264,093    36,341 
Operating expenses:               
General and administrative expenses   (11,643,834)   (9,682,494)   (1,332,356)
Selling and marketing expenses   (19,973)   (6,839)   (941)
Total operating expenses   (11,663,807)   (9,689,333)   (1,333,297)
Operating loss   (6,266,523)   (9,425,240)   (1,296,956)
Interest expense   (2,977,551)   (1,273,223)   (175,201)
Interest income   85,274    238,648    32,839 
Other income, net   1,114,214    1,902,355    261,773 
Loss before income tax expense   (8,044,586)   (8,557,460)   (1,177,545)
Income tax benefit/(expenses)   4,175    (76,929)   (10,586)
Loss from continuing operations, net of tax   (8,040,411)   (8,634,389)   (1,188,131)
Loss from discontinued operation, net of tax   (209,311)   -    - 
Net loss   (8,249,722)   (8,634,389)   (1,188,131)
Net loss attributable to Lixiang Education Holding Co., Ltd. shareholders   (8,091,960)   (8,560,021)   (1,177,898)
Net loss attributable to non-controlling interests   (157,762)   (74,368)   (10,233)
Other comprehensive income:               
Foreign currency translation adjustment, net of nil tax   7,954,537    1,593,893    219,327 
Comprehensive loss   (295,185)   (7,040,496)   (968,804)
Total comprehensive loss attributable to non-controlling interests   (157,762)   (74,368)   (10,233)
Total comprehensive loss attributable to Lixiang Education Holding Co., Ltd. shareholders   (137,423)   (6,966,128)   (958,571)
                
Loss per ordinary share attributable to Lixiang Education Holding Co., Ltd. shareholders from continuing operations   (0.12)   (0.07)   (0.01)
—Basic and diluted               
Loss per ordinary share attributable to Lixiang Education Holding Co., Ltd. shareholders from discontinued operation   (0.00)   -    - 
—Basic and diluted               
Weighted average number of ordinary shares outstanding   66,667,000    116,667,000    116,667,000 

 

5

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Lixiang Education Holding Co., Ltd.
     
  By: /s/ Fen Ye
    Fen Ye
    Chairlady of Board of Directors
     
Date: September 27, 2024    

 

 

6

 

 


Lixiang Education (NASDAQ:LXEH)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more Lixiang Education Charts.
Lixiang Education (NASDAQ:LXEH)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more Lixiang Education Charts.