BEIJING, Aug. 24, 2020 /PRNewswire/ -- Puxin Limited
(NYSE: NEW) ("Puxin" or the "Company"), a successful consolidator
of the after-school education industry in China, today announced its unaudited financial
results for the second quarter ended June
30, 2020.
Highlights for the Second Quarter Ended June 30, 2020
- Net revenues were RMB601.1
million (US$85.1 million), a
decrease of 5.0% from RMB632.9
million in the second quarter of 2019.
- Operating loss was RMB25.8
million (US$3.7 million), a
decrease of 84.7% from RMB168.7
million in the second quarter of 2019.
- Adjusted operating loss[1] was RMB19.1
million (US$2.7 million), a
decrease of 64.3% from RMB53.3
million in the second quarter of 2019.
- Net income attributable to Puxin Limited was RMB36.6 million (US$5.2
million), compared to net loss attributable to Puxin Limited
of RMB194.6 million in the same
period of 2019.
- Adjusted net income attributable to Puxin Limited[2] was RMB45.2
million (US$6.4 million),
compared to adjusted net loss attributable to Puxin Limited of
RMB60.7 million in the second quarter
of 2019.
- Adjusted EBITDA[3]
was RMB80.4 million (US$11.4 million), compared to RMB(25.8) million in the second quarter of
2019.
- Student enrollments increased by 18.1% to 856,674 from 725,118
for the second quarter of 2019.
Highlights for the Six Months Ended June 30, 2020
- Net revenues were RMB1,352.4
million (US$191.4 million), an
increase of 8.3% from RMB1,248.6
million in the first half of 2019.
- Operating loss was RMB22.2
million (US$3.1 million), a
decrease of 92.7% from RMB305.3
million in the same period of 2019.
- Adjusted operating loss was RMB7.0
million (US$1.0 million), a
decrease of 92.7% from RMB95.1
million in the first half of 2019.
- Net loss attributable to Puxin Limited was RMB6.9 million (US$1.0
million), a decrease of 98.5% from RMB443.4 million in the same period of 2019.
- Adjusted net income attributable to Puxin Limited was
RMB70.6 million (US$10.0 million), compared to adjusted net loss
attributable to Puxin Limited of RMB134.4
million in the same period of 2019.
- Adjusted EBITDA was RMB145.4
million (US$20.6 million),
compared to RMB(42.7) million in the
first half of 2019.
- Student enrollments increased by 59.2% to 1,794,949 from
1,127,179 for the same period of 2019.
Mr. Yunlong Sha, Chairman and
Chief Executive Officer of Puxin, commented, "During the second
quarter of 2020, Puxin spared no effort in gradually resuming
classes and business operations under the guidance of the Ministry
of Education and the National Health Commission. We have once again
won the recognition of students and parents with our excellent
teaching quality: accordingly, student enrollments increased by
18.1% year-over-year. Net revenues of K-12, the core business
segment of Puxin, increased by 14.0% year-over-year. Meanwhile,
Puxin Online School successfully completed a smooth online
migration of the offline courses and achieved a high rate of course
completion – its net revenues increased more than six times
year-over-year. Looking ahead at post COVID-19 recovery, we will
never slacken our efforts. We plan to further implement our
K-12-oriented Online-Merge-Offline strategy and target to maintain
a robust growth."
Mr. Peng Wang, Chief Financial
Officer of Puxin, commented, "We are pleased to see an encouraging
recovery of the after-school tutoring industry in China. In the second quarter of 2020, Puxin's
core business segments obtained a solid organic growth. Although
study-abroad services are still facing a downturn, the EBITDA of
study-abroad business turned positive to RMB4.0 million. Progress is also seen in
cost control. Our non-GAAP selling expenses decreased by 12.4%
year-over-year as a result of adjusted marketing and sales
strategy, and non-GAAP administrative expenses dropped by 30.3%
year-over-year. In the future, Puxin will continue to implement the
dual-engine strategy of 'organic growth + M&A' and regularly
review the acquired schools' revenues, non-GAAP income, as well as
student enrollments to evaluate this strategy's effectiveness. We
are confident to present our achievements of this strategy,
advanced competitiveness of core business segments, operational and
financial performance as well as sustainable shareholder
value."
Financial and Operational Results for the Second Quarter of
2020
Net Revenues
Net revenues decreased by 5.0% to RMB601.1 million (US$85.1
million) from RMB632.9 million
in the second quarter of 2019. This decrease was primarily due to
the adverse impact of the COVID-19 pandemic on the demand for
study-abroad tutoring services.
Net revenues of K-12 tutoring services increased by 14.0% to
RMB419.7 million (US$59.4 million) from RMB368.0 million in the second quarter of 2019.
In the second quarter of 2020, the student enrollments of K-12
tutoring services, including group class, personalized tutoring and
full-time tutoring services, reached 598,369.
Net revenues of Puxin Online School significantly increased to
RMB24.0 million (US$3.4 million) from RMB3.0 million in the same period of 2019.
Student enrollments of Puxin Online School were 249,452 in the
second quarter of 2020.
Net revenues of study-abroad tutoring services decreased by
39.9% to RMB157.4 million
(US$22.3 million) from RMB261.9 million in the second quarter of 2019.
This was primarily due to a sharp drop in student enrollments from
15,696 to 8,853 in the second quarter of 2020 affected by the
global spread of the COVID-19 pandemic in major countries of the
world.
Cost of Revenues
Cost of revenues slightly decreased by 0.4% to RMB331.4 million (US$46.9
million) from RMB332.8 million
in the second quarter of 2019, primarily due to a decrease in staff
cost which reflected the decreased demand for study-abroad services
attributable to the COVID-19 pandemic. Cost of revenues, excluding
share-based compensation expenses, decreased by 0.3% to
RMB330.8 million (US$46.8 million) from RMB331.7 million in the second quarter of
2019.
Gross Profit and Gross Margin
Gross profit was RMB269.7 million
(US$38.2 million), a decrease of
10.1% from RMB300.1 million in the
second quarter of 2019. Gross margin was 44.9%, compared to 47.4%
for the same period in 2019.
Operating Expenses
Total operating expenses decreased by 37.0% to RMB295.5 million (US41.8 million) from
RMB468.8 million in the second
quarter of 2019.
Selling expenses decreased by 13.1% to RMB210.2 million (US$29.7
million) from RMB241.7 million
in the second quarter of 2019. Selling expenses, excluding
share-based compensation expenses, decreased by 12.4% to
RMB207.0 million (US$29.3 million) from RMB236.4 million in the second quarter of 2019,
primarily due to a decrease in sales staff's performance-based
compensation attributable to decreased demand for our study-abroad
services caused by the COVID-19 pandemic, as well as our cost
control measures to improve operation efficiency.
General and administrative expenses decreased by 62.4% to
RMB85.3 million (US$12.1 million) from RMB227.1 million during the same period of 2019.
General and administrative expenses, excluding share-based
compensation expenses, decreased by 30.3% to RMB82.4 million (US$11.7
million) from RMB118.2 million
in the second quarter of 2019. The decreases were primarily due to
our cost control measures to improve operation efficiency.
Total share-based compensation expenses allocated to related
cost of revenues and operating expenses decreased by 94.1% to
RMB6.8 million (US$1.0 million) from RMB115.4 million in the second quarter of 2019.
The decrease was primarily due to a decrease in the number of
options vested in the second quarter of 2020 compared to the same
period of 2019.
Operating Income (Loss) and Operating Margin
Operating loss was RMB25.8 million
(US$3.7 million), a decrease of 84.7%
from RMB168.7 million in the second quarter of 2019.
Operating margin was (4.3)% in the second quarter of 2020, compared
to (26.7)% for the same period in 2019.
Operating income of K-12 tutoring services was RMB19.3 million (US$2.7
million), compared to operating loss of RMB54.5 million
in the second quarter of 2019 while operating margin improved to
4.6% from (14.8)% in the second quarter of 2019.
Adjusted operating loss was RMB19.1
million (US$2.7 million), a
decrease of 64.3% from RMB53.3
million in the second quarter of 2019.
Adjusted operating margin[4] was (3.2)%, compared to (8.4)% in
the same period of the prior year.
Net Income (Loss)
Net income attributable to Puxin Limited was RMB36.6 million (US$5.2
million), compared to net loss attributable to Puxin Limited
of RMB194.6 million during the second
quarter of 2019. Basic and diluted net income per ADS attributable
to Puxin Limited were RMB0.42
(US$0.06) and RMB0.42 (US$0.06),
compared to basic and diluted net loss per ADS attributable to
Puxin Limited of RMB2.28 and
RMB2.28 during the same period of
2019.
Adjusted net income attributable to Puxin Limited was
RMB45.2 million (US$6.4 million), compared to adjusted net loss
attributable to Puxin Limited of RMB60.7
million during the second quarter of 2019. Adjusted basic
and diluted net income per ADS attributable to Puxin
Limited[5] were
RMB0.52 (US$0.07) and RMB0.51 (US$0.07),
compared to adjusted basic and diluted net loss per ADS
attributable to Puxin Limited of RMB0.71 and RMB0.71
during the same period of 2019.
EBITDA
EBITDA was RMB71.8 million
(US$10.2 million), compared to
RMB(159.8) million in the second
quarter of 2019.
EBITDA of K-12 tutoring services was RMB109.1 million (US$15.4
million), compared to RMB(50.3)
million in the second quarter of 2019.
EBITDA margin[6] was
12.0% in the second quarter of 2020, compared to (25.2)% in the
same period in 2019.
Adjusted EBITDA was RMB80.4
million (US$11.4 million),
compared to RMB(25.8) million in the
second quarter of 2019.
Adjusted EBITDA margin[7] was 13.4%, compared to (4.1)% in
the same period in 2019.
|
[1] Adjusted
operating loss is a non-GAAP financial measure, which is defined as
operating loss excluding share-based compensation expenses. See
"Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP
and non-GAAP results" elsewhere in this earnings
release.
|
|
[2] Adjusted
net income (loss) attributable to Puxin Limited is a non-GAAP
financial measure, which is defined as net income (loss)
attributable to Puxin Limited excluding share-based compensation
expenses and loss on changes in fair value of derivative
liabilities. See "Use of Non-GAAP Financial Measures" and
"Reconciliations of GAAP and non-GAAP results" elsewhere in this
earnings release.
|
|
[3] EBITDA is
a non-GAAP financial measure, which is defined as net income (loss)
excluding depreciation, amortization, interest expense, interest
income and income tax expenses (benefits); adjusted EBITDA is a
non-GAAP financial measure, which is defined as net
income (loss) excluding depreciation, amortization, interest
expense, interest income, income tax expenses (benefits),
share-based compensation expenses and loss on changes in fair value
of derivative liabilities. See "Use of Non-GAAP Financial Measures"
and "Reconciliations of GAAP and non-GAAP results" elsewhere in
this earnings release.
|
|
[4] Adjusted
operating margin is a non-GAAP financial measure, which is defined
as adjusted operating loss divided by net revenues. See "Use of
Non-GAAP Financial Measures" and "Reconciliations of GAAP and
non-GAAP results" elsewhere in this earnings release.
|
|
[5] Adjusted
basic and diluted net income (loss) per ADS attributable to Puxin
Limited is a non-GAAP financial measure, which is defined as basic
and diluted net income (loss) per ADS attributable to Puxin Limited
excluding share-based compensation expenses, loss on changes in
fair value of derivative liabilities. See "Use of Non-GAAP
Financial Measures" and "Reconciliations of GAAP and non-GAAP
results" elsewhere in this earnings release.
|
|
[6] EBITDA
margin is a non-GAAP financial measure, which is defined as EBITDA
divided by net revenues. See "Use of Non-GAAP Financial Measures"
and "Reconciliations of GAAP and non-GAAP results" elsewhere in
this earnings release.
|
|
[7] Adjusted
EBITDA margin is a non-GAAP financial measure, which is defined as
adjusted EBITDA divided by net revenues. See "Use of Non-GAAP
Financial Measures" and "Reconciliations of GAAP and non-GAAP
results" elsewhere in this earnings release.
|
Financial and Operational Results for the Six Months Ended
June 30, 2020
Net Revenues
Net revenues increased by 8.3% to RMB1,352.4 million (US$191.4 million) from RMB1,248.6 million for the first six months of
2019. This increase was primarily due to the continued growth
momentum of student enrollments.
Net revenues of K-12 tutoring services increased by 26.3% to
RMB943.0 million (US$133.5 million) from RMB746.6 million for the first half of 2019. In
the first half of 2020, the total student enrollments of K-12
tutoring services, including group class, personalized tutoring and
full-time tutoring services, reached 1,165,074.
Net revenues of Puxin Online School significantly increased to
RMB47.0 million (US$6.7 million) from RMB4.9 million for the same period of 2019.
Student enrollments of Puxin Online School were 607,066 for the
first six months of 2020.
Net revenues of study-abroad tutoring services decreased by
27.1% to RMB362.4 million
(US$51.2 million) from RMB497.1 million for the first six months of
2019. Study-abroad consulting and tutoring services had 22,809
student enrollments in the first half of 2020 compared to 32,366 in
the same period of 2019. This was primarily due to the global
spread of the COVID-19 pandemic in major countries of the
world.
Cost of Revenues
Cost of revenues increased by 9.5% to RMB731.6 million (US$103.6
million) from RMB668.4 million
for the first six months of 2019. Cost of revenues, excluding
share-based compensation expenses, increased by 9.7% to
RMB730.4 million (US$103.4 million) from RMB665.8 million in the first six months of
2019.
Gross Profit and Gross Margin
Gross profit was RMB620.8 million
(US$87.9 million), an increase of
7.0% from RMB580.2 million for the
first six months of 2019. Gross margin was 45.9%, compared to 46.5%
for the same period in 2019.
Operating Expenses
Total operating expenses decreased by 27.4% to RMB642.9 million (US$91.0
million) from RMB885.4 million
for the first six months of 2019.
Selling expenses decreased by 5.1% to RMB440.7 million (US$62.4
million) from RMB464.4 million
for the first six months of 2019. Selling expenses, excluding
share-based compensation expenses, decreased by 4.1% to
RMB433.5 million (US$61.4 million) from RMB451.9 million in the same period of 2019.
General and administrative expenses decreased by 52.0% to
RMB202.3 million (US$28.6 million) from RMB421.0 million during the same period of 2019.
General and administrative expenses, excluding share-based
compensation expenses, decreased by 13.5% to RMB195.5 million (US$27.7
million) from RMB226.0 million
in the first half of 2019. The decreases were primarily due to our
cost control measures to improve our operation efficiency under the
COVID-19 pandemic.
Total share-based compensation expenses allocated to related
cost of revenues and operating expenses decreased by 92.8% to
RMB15.2 million (US$2.2 million) from RMB210.1 million in the same period of 2019. The
decrease was primarily due to a decrease in the number of
options vested in the first six months of 2020 compared to the same
period of 2019.
Operating Income (Loss) and Operating Margin
Operating loss decreased by 92.7% to RMB22.2 million (US$3.1
million) from RMB305.3 million
in the first half of 2019. Operating margin was (1.6)% in the first
six months of 2020, compared to (24.4)% for the same period in
2019.
Operating income of K-12 tutoring services was RMB86.0 million (US$12.2
million), compared to operating loss of RMB80.4 million in the same period of 2019 while
operating margin improved to 9.1% from (10.8)%.
Adjusted operating loss decreased by 92.7% to RMB7.0 million (US$1.0
million) from RMB95.1 million
in the same period of 2019.
Adjusted operating margin was (0.5)%, compared to (7.6)% in the
same period of 2019.
Net Loss
Net loss attributable to Puxin Limited was RMB6.9 million (US$1.0
million), a decrease of 98.5% from net loss attributable to
Puxin Limited of RMB443.4 million
during the same period of 2019. Basic and diluted net loss per ADS
attributable to Puxin Limited were RMB0.08 (US$0.02),
compared to basic and diluted net loss per ADS attributable to
Puxin Limited of RMB5.28 during the
same period of 2019.
Adjusted net income attributable to Puxin Limited was
RMB70.6 million (US$10.0 million), compared to adjusted net loss
attributable to Puxin Limited of RMB134.4
million during the same period of 2019. Adjusted basic and
diluted net income per ADS attributable to Puxin Limited were
RMB0.81 (US$0.11) and RMB0.79 (US$0.11),
compared to adjusted basic and diluted net loss per ADS
attributable to Puxin Limited of RMB1.60 and RMB1.60
during the same period of 2019.
EBITDA
EBITDA was RMB67.9 million
(US$9.6 million), compared to
RMB(351.7) million for the first six
months of 2019.
EBITDA of K-12 tutoring services was RMB170.3 million (US$24.1
million), compared to RMB(112.1)
million in the same period of 2019.
EBITDA margin was 5.0% in the first six months of 2020, compared
to (28.2)% in the same period in 2019.
Adjusted EBITDA was RMB145.4
million (US$20.6 million),
compared to RMB(42.7) million in the
same period of 2019.
Adjusted EBITDA margin was 10.8%, compared to (3.4)% in the same
period in 2019.
Cash and Current Bank Balances
As of June 30, 2020, the Company
had an aggregate amount of cash and cash equivalents and the
current portion of restricted cash of RMB569.6 million (US$80.6
million), compared to RMB606.3
million as of December 31,
2019. The current portion of restricted cash consisted
primarily of deposits with Chinese commercial banks as collateral
for our bank borrowings within one-year term.
Business Outlook
For the third quarter ended September 30,
2020, based on the information available as of the date of
this press release, the Company expects net revenues to be between
RMB816.8 million and RMB866.6 million, which represents a decrease of
18% to 13% year-over-year. These forecasts reflect the Company's
current and preliminary views on the market and operational
conditions, which are subject to change.
Conference Call Information
Puxin's management team will hold a conference call on
August 24, 2020, at 8:00 AM U.S. Eastern Time (or 8:00 PM on the same day, Beijing/Hong Kong Time) following the
quarterly results announcement. Participants may access the call by
dialing the following numbers:
International:
+1-412-902-4272
Mainland China: 4001-201203
US:
+1-888-346-8982
Hong
Kong: +852-301-84992
Passcode: Puxin
Please dial in 10 minutes before the call is scheduled to begin.
When prompted, ask to be connected to the Puxin Limited Call.
Participants will be required to state their name and company upon
entering the call.
A replay of the conference call will be accessible two hours
after the conclusion of the conference call through August 31, 2020 by dialing the following
numbers:
International: +1-412-317-0088
US:
+1-877-344-7529
Passcode:
10147111
A live webcast and archive of the conference call will be
available on the Investor Relations section of Puxin's website at
http://ir.pxjy.com/.
Exchange Rate
The Company's business is primarily conducted in China and all of the revenues are denominated
in Renminbi ("RMB"). This announcement contains translations of
certain RMB amounts into U.S. dollars ("USD" or "US$") at specified
rates solely for the convenience of the readers. Unless otherwise
noted, all translations from RMB to USD are made at the rate of
RMB 7.0651 to US$1.00, the exchange rate set forth in the H.10
statistical release of the Federal Reserve Board on June 30, 2020. No representation is made that the
RMB amounts could have been, or could be, converted, realized or
settled into US$ at that rate on June 30,
2020 or at any other rate.
Use of Non-GAAP Financial Measures
To supplement the Company's financial results presented in
accordance with U.S. GAAP, the Company also uses non-GAAP financial
measures, including adjusted operating loss, adjusted operating
margin, adjusted net income (loss) attributable to Puxin Limited,
EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA margin,
adjusted basic and diluted net income (loss) per ADS attributable
to Puxin Limited, as supplemental measures to review and assess the
Company's operating performance. Adjusted operating loss is defined
as operating loss excluding share-based compensation expenses;
adjusted operating margin is defined as adjusted operating loss
divided by net revenues; adjusted net income (loss) attributable to
Puxin Limited is defined as net income (loss) attributable to Puxin
Limited excluding share-based compensation expenses and loss on
changes in fair value of derivative liabilities; EBITDA is
defined as net income (loss) excluding depreciation, amortization,
interest expense, interest income and income tax expenses
(benefits); adjusted EBITDA is defined as net income (loss)
excluding depreciation, amortization, interest expense, interest
income, income tax expenses (benefits), share-based compensation
expenses and loss on changes in fair value of derivative
liabilities; EBITDA margin is defined as EBITDA divided by net
revenues; adjusted EBITDA margin is defined as adjusted EBITDA
divided by net revenues; adjusted basic and diluted net income
(loss) per ADS attributable to Puxin Limited are defined as basic
and diluted net income (loss) per ADS attributable to Puxin Limited
excluding share-based compensation expenses and loss on changes in
fair value of derivative liabilities.
The Company believes that these non-GAAP financial measures
provide useful information about the Company's operating results,
enhance the overall understanding of the Company's past performance
and future prospects and allow for greater visibility with respect
to key metrics used by the Company's management in its financial
and operational decision-making.
Non-GAAP financial measures are not defined under U.S. GAAP and
are not presented in accordance with U.S. GAAP. These non-GAAP
financial measures have limitations as analytical tools, and when
assessing the Company's operating performance, investors should not
consider them in isolation. In addition, calculations of this
non-GAAP financial information may be different from calculations
used by other companies, and therefore comparability may be
limited.
The Company mitigates these limitations by reconciling the
non-GAAP financial measures to the most comparable U.S. GAAP
performance measures, all of which should be considered when
evaluating our performance.
For more information on this non-GAAP financial measure, please
see the table captioned "Reconciliations of GAAP and non-GAAP
results" set forth at the end of this press release.
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," "may," "would,"
"expect," "anticipate," "future," "intend," "aim," "plan,"
"believe," "estimate," "predict," "project," "continue,"
"confident" and similar statements. The Company 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 the Company'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: its goals and strategies, its ability to achieve and
maintain profitability, its ability to attract and retain students
to enroll in its courses, its ability to effectively manage its
business expansion and successfully integrate businesses it
acquired, its ability to identify or pursue targets for
acquisitions, its ability to compete effectively against its
competitors, its ability to improve the content of its existing
courses or to develop new courses, and relevant government policies
and regulations relating to the Company's corporate structure,
business and industry. Further information regarding these and
other risks 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 the Company does not undertake any obligation to update such
information, except as required under applicable law.
About Puxin Limited
Puxin Limited (NYSE: NEW, "Puxin" or the "Company") is a
successful consolidator of the after-school education industry in
China. Puxin has a strong
acquisition and integration expertise to effectively improve
education quality and operational performance of acquired schools.
Puxin offers a full spectrum of K-12 and study-abroad tutoring
programs designed to help students achieve academic excellence, as
well as prepare for admission tests and applications for top
schools, universities and graduate programs in China and other countries. The Company has
developed a business model effectively combining strategic
acquisitions and organic growth achieved through successful
post-acquisition integration, which has differentiated the Company
from other after-school education service providers in China. For more information, please visit
http://www.pxjy.com/.
Contacts
Puxin Limited
Phone: +86-10-6269-8930
E-mail: ir@pxjy.com
ICA (Institutional Capital Advisory)
Mr. Kevin Yang
Phone: +86-021-8028-6033
E-mail: puxin@icaasia.com
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PUXIN
LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
|
As of
December 31,
|
As of
June 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
256,763
|
124,487
|
17,620
|
|
Restricted cash,
current portion
|
349,540
|
445,101
|
63,000
|
|
Inventories
|
13,311
|
16,496
|
2,335
|
|
Prepaid expenses and
other current assets
|
117,148
|
151,059
|
21,381
|
|
Loan receivable,
current portion
|
191,230
|
-
|
-
|
|
Total current
assets
|
927,992
|
737,143
|
104,336
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Restricted cash,
non-current portion
|
36,727
|
38,019
|
5,381
|
|
Operating lease
right-of-use assets
|
1,045,941
|
937,900
|
132,751
|
|
Property, plant and
equipment, net
|
298,719
|
274,772
|
38,891
|
|
Intangible
assets
|
264,540
|
237,445
|
33,608
|
|
Goodwill
|
2,055,922
|
2,035,577
|
288,117
|
|
Deferred tax
assets
|
2,199
|
1,975
|
280
|
|
Rental
deposit
|
75,015
|
75,482
|
10,684
|
|
Loan receivable,
non-current portion
|
-
|
205,007
|
29,017
|
|
Other non-current
assets
|
-
|
59,400
|
8,408
|
|
TOTAL ASSETS
|
4,707,055
|
4,602,720
|
651,473
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accrued expenses and
other current liabilities (including
accrued expenses and other current liabilities of
the
consolidated VIE without recourse to the Group of
RMB930,674 and RMB822,356 as of December 31, 2019
and June 30, 2020, respectively)
|
983,715
|
864,693
|
122,389
|
|
Income tax payable of
the consolidated VIE without recourse
to the Group
|
21,248
|
19,157
|
2,711
|
|
Deferred revenue,
current portion (including deferred revenue,
current portion of the consolidated VIE without
recourse to
the Group of RMB1,195,723 and RMB1,039,195 as
of
December 31, 2019 and June 30, 2020,
respectively)
|
1,205,609
|
1,048,911
|
148,464
|
|
Operating lease
liabilities, current portion (including operating
lease liabilities, current portion of the consolidated
VIE
without recourse to the Group of
RMB275,893 and
RMB263,174 as of December 31, 2019 and June 30,
2020,
respectively)
|
276,877
|
263,929
|
37,357
|
|
Amounts due to
related parties, current portion (including
amounts due to related parties, current portion of
the
consolidated VIE without recourse to the Group of
RMB254
and RMB15,047 as of December 31, 2019 and June 30,
2020,
respectively)
|
1,451
|
15,374
|
2,176
|
|
Bank borrowings of
the consolidated VIE without recourse to
the Group
|
318,600
|
495,000
|
70,063
|
|
Loans payable to
third parties, current portion (including loans
payable to third parties, current portion of the
consolidated
VIE without recourse to the Group of
RMB292,952 and
RMB232,252 as of December 31, 2019 and June 30,
2020,
respectively)
|
413,838
|
341,159
|
48,288
|
|
Promissory note,
current portion (including promissory note,
current portion of the consolidated VIE without
recourse to
the Group of RMB nil and RMB nil as of
December 31,
2019 and June 30, 2020, respectively)
|
87,023
|
88,314
|
12,500
|
|
Total current
liabilities
|
3,308,361
|
3,136,537
|
443,948
|
|
PUXIN
LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
As of
December 31,
|
As of
June 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Deferred revenue,
non-current portion of the consolidated VIE
without recourse to the Group
|
101,372
|
79,120
|
11,199
|
|
Deferred tax
liabilities of the consolidated VIE without
recourse to the Group
|
81,969
|
75,994
|
10,756
|
|
Amounts due to
related parties, non-current portion (including
amounts due to related parties, non-current portion of
the
consolidated VIE without recourse to the Group of RMB
nil
and RMB nil as of December 31, 2019 and June 30,
2020,
respectively)
|
-
|
7,292
|
1,032
|
|
Franchise deposits of
the consolidated VIE without recourse to
the Group
|
2,533
|
2,549
|
361
|
|
Operating lease
liabilities, non-current portion of the
consolidated VIE without recourse to the
Group
|
693,505
|
605,288
|
85,673
|
|
Loan payable to third
parties, non-current portion (including
loan payable to third parties, non-current portion of
the
consolidated VIE without recourse to the Group of RMB
nil a
nd RMB nil as of December 31, 2019 and June
30, 2020,
respectively)
|
-
|
101,031
|
14,300
|
|
Promissory note,
non-current portion (including promissory
note, non-current portion of the consolidated VIE
without
recourse to the Group of RMB nil and RMB nil as
of
December 31, 2019 and June 30, 2020,
respectively)
|
87,022
|
88,314
|
12,500
|
|
Derivative
liabilities (including derivative liabilities of the
consolidated VIE without recourse to the Group of RMB
nil
and RMB nil as of December 31, 2019 and June 30,
2020,
respectively)
|
172,235
|
93,730
|
13,267
|
|
TOTAL
LIABILITIES
|
4,446,997
|
4,189,855
|
593,036
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Ordinary shares (par
value of USD0.00005 per share;
1,000,000,000 and 1,000,000,000 shares
authorized,
188,627,228 and 188,640,348 shares issued and
174,025,810 and
174,079,074 shares outstanding
as of
December 31, 2019 and June 30, 2020, respectively)
|
62
|
62
|
9
|
|
Additional paid-in
capital
|
2,175,652
|
2,335,274
|
330,537
|
|
Statutory
reserve
|
7,979
|
7,979
|
1,129
|
|
Accumulated other
comprehensive income
|
68,707
|
70,688
|
10,005
|
|
Accumulated
deficit
|
(1,991,220)
|
(1,998,085)
|
(282,811)
|
|
|
|
|
|
Total Puxin Limited
shareholders' equity
|
261,180
|
415,918
|
58,869
|
|
Non-controlling
interest
|
(1,122)
|
(3,053)
|
(432)
|
|
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
260,058
|
412,865
|
58,437
|
|
|
|
|
|
TOTAL LIABILITIES AND
TOTAL SHAREHOLDERS'
EQUITY
|
4,707,055
|
4,602,720
|
651,473
|
|
PUXIN
LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
For the three
months ended June 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
Net revenues
|
632,922
|
601,053
|
85,074
|
|
Cost of revenues
(including share-based compensation expenses of
RMB1,178 and RMB573 for the three months ended June
30, 2019 and
2020, respectively)
|
332,828
|
331,350
|
46,900
|
|
|
|
|
|
Gross profit
|
300,094
|
269,703
|
38,174
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Selling expenses
(including share-based compensation expenses of
RMB5,347 and RMB3,203 for the three months ended
June 30,
2019 and 2020, respectively)
|
241,739
|
210,165
|
29,747
|
|
General and
administrative expenses (including share-based
compensation expenses of RMB108,844 and RMB2,977 for
the
three months ended June 30, 2019 and 2020,
respectively)
|
227,063
|
85,343
|
12,080
|
|
|
|
|
|
Total operating
expenses
|
468,802
|
295,508
|
41,827
|
|
|
|
|
|
Operating
loss
|
(168,708)
|
(25,805)
|
(3,653)
|
|
|
|
|
|
Interest
expense
|
10,193
|
20,658
|
2,924
|
|
Interest
income
|
4,144
|
11,860
|
1,679
|
|
Foreign exchange gain
(loss)
|
179
|
(21)
|
(3)
|
|
Loss on changes in fair
value of derivative liabilities
|
18,617
|
1,848
|
262
|
|
Other income,
net
|
-
|
14,114
|
1,998
|
|
Gain on disposal of
subsidiaries
|
-
|
60,968
|
8,629
|
|
Impairment loss on
intangible assets
|
-
|
4,100
|
580
|
|
(Loss) income before
income taxes
|
(193,195)
|
34,510
|
4,884
|
|
Income tax expenses
(benefits)
|
1,424
|
(1,110)
|
(157)
|
|
|
|
|
|
Net (loss)
income
|
(194,619)
|
35,620
|
5,041
|
|
Less: Net income (loss)
attributable to non-controlling interest
|
18
|
(978)
|
(138)
|
|
|
|
|
|
Net (loss) income
attributable to Puxin Limited
|
(194,637)
|
36,598
|
5,179
|
|
|
|
|
|
Net (loss) income per
share attributable to Puxin Limited
|
|
|
|
|
Basic and
diluted
|
(1.14)
|
0.21
|
0.03
|
|
Net (loss) income per
ADS attributable to Puxin Limited
|
|
|
|
|
Basic and
diluted
|
(2.28)
|
0.42
|
0.06
|
|
|
|
|
|
Weighted average shares
used in calculating basic net (loss)
income per share
|
170,511,022
|
174,069,766
|
174,069,766
|
|
Weighted average shares
used in calculating diluted net (loss)
income per share
|
170,511,022
|
177,950,175
|
177,950,175
|
|
|
|
|
|
Note: Each ADS
represents two ordinary shares.
|
|
|
|
|
PUXIN
LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
|
(In thousands of RMB
and USD)
|
|
|
For the three
months ended June 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
(194,619)
|
35,620
|
5,041
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
Change in
cumulative foreign currency translation adjustments
|
4,383
|
(425)
|
(60)
|
|
Total comprehensive
(loss) income
|
(190,236)
|
35,195
|
4,981
|
|
Less: comprehensive
income (loss) attributable to non-controlling interest
|
18
|
(978)
|
(138)
|
|
|
|
|
|
Total comprehensive
(loss) income attributable to Puxin Limited
|
(190,254)
|
36,173
|
5,119
|
|
PUXIN
LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
For the six
months ended June 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
Net revenues
|
1,248,597
|
1,352,398
|
191,420
|
|
Cost of revenues
(including share-based compensation expenses of
RMB2,580 and RMB1,254 for the six months ended June
30, 2019 and
2020, respectively)
|
668,427
|
731,628
|
103,555
|
|
|
|
|
|
Gross profit
|
580,170
|
620,770
|
87,865
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Selling expenses
(including share-based compensation expenses of
RMB12,465 and RMB7,192 for the six months ended
June 30,
2019 and 2020, respectively)
|
464,373
|
440,662
|
62,372
|
|
General and
administrative expenses (including share-based
compensation expenses of RMB195,072 and RMB6,752 for
the six
months ended June 30, 2019 and 2020,
respectively)
|
421,048
|
202,261
|
28,628
|
|
|
|
|
|
Total operating
expenses
|
885,421
|
642,923
|
91,000
|
|
|
|
|
|
Operating
loss
|
(305,251)
|
(22,153)
|
(3,135)
|
|
|
|
|
|
Interest
expense
|
40,232
|
41,511
|
5,876
|
|
Interest
income
|
4,910
|
23,816
|
3,371
|
|
Foreign exchange (loss)
gain
|
(10)
|
121
|
17
|
|
Loss on changes in fair
value of derivative liabilities
|
98,879
|
62,283
|
8,816
|
|
Other income,
net
|
-
|
35,962
|
5,090
|
|
Gain on disposal of
subsidiaries
|
-
|
60,968
|
8,629
|
|
Impairment loss on
intangible assets
|
-
|
4,100
|
580
|
|
Loss before income
taxes
|
(439,462)
|
(9,180)
|
(1,300)
|
|
Income tax expenses
(benefits)
|
3,917
|
(417)
|
(59)
|
|
|
|
|
|
Net loss
|
(443,379)
|
(8,763)
|
(1,241)
|
|
Less: Net income (loss)
attributable to non-controlling interest
|
36
|
(1,898)
|
(269)
|
|
|
|
|
|
Net loss attributable
to Puxin Limited
|
(443,415)
|
(6,865)
|
(972)
|
|
|
|
|
|
Net loss per share
attributable to Puxin Limited
|
|
|
|
|
Basic and
diluted
|
(2.64)
|
(0.04)
|
(0.01)
|
|
Net loss per ADS
attributable to Puxin Limited
|
|
|
|
|
Basic and
diluted
|
(5.28)
|
(0.08)
|
(0.02)
|
|
|
|
|
|
Weighted average shares
used in calculating basic and diluted
net loss per share
|
167,791,531
|
174,063,142
|
174,063,142
|
|
|
|
|
|
Note: Each ADS
represents two ordinary shares.
|
|
|
|
|
PUXIN
LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
|
(In thousands of RMB
and USD)
|
|
|
|
For the six
months ended June 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
|
Net loss
|
(443,379)
|
(8,763)
|
(1,241)
|
|
|
|
|
|
Other comprehensive
(loss) income, net of tax:
|
|
|
|
|
Change in
cumulative foreign currency translation adjustments
|
(2,081)
|
1,981
|
280
|
|
Total comprehensive
loss
|
(445,460)
|
(6,782)
|
(961)
|
|
Less: comprehensive
income (loss) attributable to non-controlling interest
|
36
|
(1,898)
|
(269)
|
|
|
|
|
|
Total comprehensive
loss attributable to Puxin Limited
|
(445,496)
|
(4,884)
|
(692)
|
|
PUXIN
LIMITED
|
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
For the three months
ended June 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
Operating
loss
|
(168,708)
|
(25,805)
|
(3,653)
|
|
Add: Share-based
compensation expenses
|
115,369
|
6,753
|
956
|
|
Adjusted operating
loss
|
(53,339)
|
(19,052)
|
(2,697)
|
|
Adjusted operating
margin
|
(8.4)%
|
(3.2)%
|
(3.2)%
|
|
Net (loss) income
attributable to Puxin Limited
|
(194,637)
|
36,598
|
5,179
|
|
Add: Share-based
compensation expenses
|
115,369
|
6,753
|
956
|
|
Loss on changes in fair
value of derivative liabilities
|
18,617
|
1,848
|
262
|
|
Adjusted net (loss)
income attributable to Puxin Limited
|
(60,651)
|
45,199
|
6,397
|
|
|
|
|
|
Net (loss)
income
|
(194,619)
|
35,620
|
5,041
|
|
Add: Income tax
expenses (benefits)
|
1,424
|
(1,110)
|
(157)
|
|
Depreciation of
property, plant and equipment
|
19,357
|
20,196
|
2,859
|
|
Amortization of intangible
assets
|
8,002
|
8,337
|
1,180
|
|
Interest expense
|
10,193
|
20,658
|
2,924
|
|
Less: Interest
income
|
4,144
|
11,860
|
1,679
|
|
EBITDA
|
(159,787)
|
71,841
|
10,168
|
|
EBITDA
margin
|
(25.2)%
|
12.0%
|
12.0%
|
|
Add: Share-based
compensation expenses
|
115,369
|
6,753
|
956
|
|
Loss on changes in fair
value of derivative liabilities
|
18,617
|
1,848
|
262
|
|
Adjusted
EBITDA
|
(25,801)
|
80,442
|
11,386
|
|
Adjusted EBITDA
margin
|
(4.1)%
|
13.4%
|
13.4%
|
|
|
|
|
|
Net (loss) income per
ADS attributable to Puxin Limited
- Basic and diluted
|
(2.28)
|
0.42
|
0.06
|
|
|
|
|
|
Adjusted net (loss)
income per ADS attributable to Puxin Limited
- Basic
|
(0.71)
|
0.52
|
0.07
|
|
Adjusted net (loss)
income per ADS attributable to Puxin Limited
- Diluted
|
(0.71)
|
0.51
|
0.07
|
|
|
|
|
|
Weighted average
shares used in calculating basic adjusted
net (loss) income per
share
|
170,511,022
|
174,069,766
|
174,069,766
|
|
Weighted average
shares used in calculating diluted adjusted
net (loss) income per
share
|
170,511,022
|
177,950,175
|
177,950,175
|
|
|
|
|
|
Note: Each ADS
represents two ordinary shares.
|
|
|
|
|
PUXIN
LIMITED
|
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
|
|
For the six months
ended June 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
Operating
loss
|
(305,251)
|
(22,153)
|
(3,135)
|
|
Add: Share-based
compensation expenses
|
210,117
|
15,198
|
2,151
|
|
Adjusted operating
loss
|
(95,134)
|
(6,955)
|
(984)
|
|
Adjusted operating
margin
|
(7.6)%
|
(0.5)%
|
(0.5)%
|
|
|
|
|
|
Net loss attributable
to Puxin Limited
|
(443,415)
|
(6,865)
|
(972)
|
|
Add: Share-based
compensation expenses
|
210,117
|
15,198
|
2,151
|
|
Loss on changes in fair
value of derivative liabilities
|
98,879
|
62,283
|
8,816
|
|
Adjusted net (loss)
income attributable to Puxin Limited
|
(134,419)
|
70,616
|
9,995
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(443,379)
|
(8,763)
|
(1,241)
|
|
Add: Income tax
expenses (benefits)
|
3,917
|
(417)
|
(59)
|
|
Depreciation of property,
plant and equipment
|
36,663
|
41,824
|
5,920
|
|
Amortization of intangible
assets
|
15,769
|
17,599
|
2,491
|
|
Interest expense
|
40,232
|
41,511
|
5,876
|
|
Less: Interest
income
|
4,910
|
23,816
|
3,371
|
|
EBITDA
|
(351,708)
|
67,938
|
9,616
|
|
EBITDA
margin
|
(28.2)%
|
5.0%
|
5.0%
|
|
Add: Share-based
compensation expenses
|
210,117
|
15,198
|
2,151
|
|
Loss on changes in fair
value of derivative liabilities
|
98,879
|
62,283
|
8,816
|
|
Adjusted
EBITDA
|
(42,712)
|
145,419
|
20,583
|
|
Adjusted
EBITDAmargin
|
(3.4)%
|
10.8%
|
10.8%
|
|
|
|
|
|
Net loss per ADS
attributable to Puxin Limited
|
|
|
|
|
- Basic and
diluted
|
(5.28)
|
(0.08)
|
(0.02)
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income per ADS attributable to Puxin Limited
- Basic
|
(1.60)
|
0.81
|
0.11
|
|
Adjusted net (loss)
income per ADS attributable to Puxin Limited
- Diluted
|
(1.60)
|
0.79
|
0.11
|
|
|
|
|
|
Weighted average
shares used in calculating basic adjusted
net (loss) income per share
|
167,791,531
|
174,063,142
|
174,063,142
|
|
Weighted average
shares used in calculating diluted adjusted
net (loss) income per share
|
167,791,531
|
178,035,266
|
178,035,266
|
|
|
|
|
|
Note: Each ADS
represents two ordinary shares.
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/puxin-limited-announces-second-quarter-2020-unaudited-financial-results-301116967.html
SOURCE Puxin Limited
