BEIJING, March 25, 2021 /PRNewswire/ -- iHuman Inc. (NYSE:
IH) ("iHuman" or the "Company"), a leading childhood edutainment
company in China, today announced
its unaudited financial results for the fourth quarter and fiscal
year ended December 31, 2020.
Fourth Quarter 2020 Highlights
- Total revenues were RMB189.5
million (US$29.0 million), a
year-over-year increase of 206.4%.
- Revenues from learning services were RMB157.3 million (US$24.1
million), a year-over-year increase of 329.6%.
- Gross profit was RMB132.5 million
(US$20.3 million), a year-over-year
increase of 243.3%.
- Operating loss was RMB63.8
million (US$9.8 million),
compared with an operating loss of RMB7.9
million in the fourth quarter of 2019.
- Adjusted operating income[1] was RMB16.1 million (US$2.5
million), compared with an adjusted operating loss of
RMB7.9 million in the fourth quarter
of 2019.
- Net loss was RMB53.8 million
(US$8.2 million), compared with a net
loss of RMB6.4 million in the fourth
quarter of 2019.
- Adjusted net income was RMB26.1
million (US$4.0 million),
compared with an adjusted net loss of RMB6.4
million in the fourth quarter of 2019.
- Deferred revenue and customer advances were RMB268.6 million (US$41.2
million) as of December 31,
2020, an increase of 274.0% year-over-year from RMB71.8 million as of December 31, 2019.
- Average total MAUs[2] for the fourth quarter were
12.77 million, a year-over-year increase of 187.3%.
- Number of paying users[3] for the fourth quarter was
1.41 million, a year-over-year increase of 133.0%.
Fiscal Year 2020 Highlights
- Total revenues were RMB531.9
million (US$81.5 million), a
year-over-year increase of 143.3%.
- Revenues from learning services were RMB430.5 million (US$66.0
million), a year-over-year increase of 300.8%.
- Gross profit was RMB365.4 million
(US$56.0 million), a year-over-year
increase of 171.7%.
- Operating loss was RMB44.5
million (US$6.8 million),
compared with an operating loss of RMB278.8
million in fiscal year 2019.
- Adjusted operating income was RMB35.4
million (US$5.4 million),
compared with an adjusted operating loss of RMB8.3 million in fiscal year 2019.
- Net loss was RMB37.5 million
(US$5.7 million), compared with a net
loss of RMB275.6 million in fiscal
year 2019.
- Adjusted net income was RMB42.4
million (US$6.5 million),
compared with an adjusted net loss of RMB5.1
million in fiscal year 2019.
- Average total MAUs for the fiscal year 2020 were 10.61 million,
a year-over-year increase of 186.7%.
- Number of paying users for the fiscal year 2020 was 3.73
million, a year-over-year increase of 182.8 %.
[1] "Adjusted
operating income (loss)" and "adjusted net income (loss)" exclude
share-based compensation expenses. Please see "Non-GAAP Financial
Measures" and "Unaudited Reconciliation of GAAP and non-GAAP
Results" at the end of this press release.
|
[2] "Average total
MAUs" refers to the monthly average of the sum of the MAUs of each
of the Company's learning apps during a specific period, which is
counted based on the number of unique mobile devices through which
such app is accessed at least once in a given month, and duplicate
access to different learning apps is not eliminated from the total
MAUs calculation.
|
[3] "Paying users"
refers to users who paid subscription fees for the premium content
on any of the Company's learning apps during a specific period; a
user who makes payments across different learning apps using the
same registered account is counted as one paying user, and a user
who makes payments for the same learning app multiple times in the
same period is counted as one paying user.
|
Dr. Peng Dai, Director and Chief
Executive Officer of iHuman, commented, "We are pleased that we
closed out 2020 on a high note. In our learning services business,
we saw a fourfold jump in revenue and almost a tripling in average
total MAU on a year-over-year basis. The solid growth was driven by
our unwavering commitment to educational content and technology
investments, which are the two cornerstones of our ongoing success.
We continue to leverage our sophisticated pedagogy and
technological capabilities to deliver premium educational content
and truly interactive and immersive learning experiences that help
kids learn effectively while having fun. Throughout the year, we
continued to enrich our existing self-directed learning apps with a
significant amount of new interactive educational content. We also
launched two new products, iHuman English World and iHuman Chinese
International, which further expand our product portfolio. As 2021
unfolds, we will continue to invest in improving product quality
and the user experience, and build out our already strong pipeline
both online and offline, adding more interactive courses to our
comprehensive product portfolio. As one of our highly anticipated
new products, we are delighted to officially announce our strategic
partnership with Oxford University
Press, the largest university publisher in the world, to co-develop
and co-promote a comprehensive new English levelled reading app
called iHuman Readers, which will combine world-class content with
our advanced edutainment technology."
Ms. Vivien Weiwei Wang, Director
and Chief Financial Officer of iHuman, added, "We are happy to
deliver another record high quarter of robust growth. We further
strengthened our leading position in the online childhood
edutainment sector as Millennial and Gen-Z parents increasingly
look for technology-enabled educational tools to help improve
learning results for their kids in the post-pandemic era. Total
revenues came in ahead of our expectations, rising 206.4% year
over year to RMB189.5 million.
Revenues from learning services grew even faster, leaping 329.6%
year-over-year to hit at a record high of RMB157.3 million. As we continued to build on our
unrivalled reputation for superior educational product quality, the
robust revenue growth was powered by our user base expansion with
our average total MAU also hitting an all-time high of 12.77
million in fourth quarter. In addition, our deferred revenue and
customer advances as of December 31,
2020 increased 274.0% compared with last year, and continued
to provide strong visibility for our future performance. Moving
forward, we'll continue to innovate and launch new education
products and services to further drive user engagement, and extend
demographic and geographic coverage to broader user groups."
Fourth Quarter 2020 Unaudited Financial Results
Revenues
Total revenues were RMB189.5
million (US$29.0 million), an
increase of 206.4% from RMB61.9
million in the fourth quarter of 2019.
Revenues from learning services were RMB157.3 million (US$24.1
million), an increase of 329.6% from RMB36.6 million in the fourth quarter of 2019,
primarily driven by user expansion and enhanced user engagement.
Average total MAUs were 12.77 million, an increase of 187.3%
year-over-year from 4.44 million in the fourth quarter of 2019. The
number of paying users was 1.41 million, a year-over-year increase
of 133.0 % from 0.61 million in the fourth quarter of 2019.
Revenues from learning materials and devices were RMB32.2 million (US$4.9
million), an increase of 27.7% from RMB25.2 million in the fourth quarter of
2019.
Cost of Revenues
Cost of revenues were RMB57.0
million (US$8.7 million), an
increase of 145.1% from RMB23.3
million in the fourth quarter of 2019. Excluding share-based
compensation expenses of RMB1.9
million, cost of revenues were RMB55.1 million, an increase of 137.0% from the
same period last year, primarily due to increases in channel costs.
The growth in the Company's cost of revenues was in line with the
Company's revenue expansion.
Gross Profit and Gross Margin
Gross profit was RMB132.5 million
(US$20.3 million), an increase of
243.3% from RMB38.6 million in the
fourth quarter of 2019. Gross margin was 69.9%, compared with 62.4%
in the fourth quarter of 2019. The increase was mainly attributable
to the strong growth of the Company's learning services business,
which has a higher gross margin.
Operating Expenses
Total operating expenses were RMB196.4
million (US$30.1 million), an
increase of 322.5% from RMB46.5
million in the fourth quarter of 2019. The increase was
mainly due to share-based compensation expenses of RMB78.0 million that were recognized because
certain IPO performance conditions of the awards were satisfied. No
share-based compensation expenses were incurred in the fourth
quarter of 2019. Excluding share-based compensation expenses, total
operating expenses were RMB118.4
million, an increase of 154.7% from the same period last
year.
Research and development expenses were RMB70.0 million (US$10.7
million), an increase of 128.4% from RMB30.6 million in the fourth quarter of 2019.
Excluding share-based compensation expenses of RMB19.5 million, the research and development
expenses were RMB50.5 million, an
increase of 64.8% from the same period last year, primarily due to
a rise in payroll-related expenses and outsourcing expenses
as the Company continued to expand its research and
development ("R&D") capabilities and to enhance and develop its
educational products and services.
Sales and marketing expenses were RMB44.6
million (US$6.8 million), an
increase of 430.7% from RMB8.4
million in the fourth quarter of 2019. Excluding share-based
compensation expenses of RMB2.9
million, sales and marketing expenses were RMB41.7 million, an increase of 396.7% from the
same period last year, primarily due to an increase in advertising
and promotion expenses as the Company strategically strengthened
its brand recognition as a publicly listed company and marketing
efforts to supplement organic user growth. Sales and marketing
expenses were also higher because a certain channel partner offered
an incentive plan with rebates which can be used to conduct
marketing and promotion within the partner's channel. The Company
utilized a certain amount of the rebates to conduct marketing and
promotion, which were recognized as sales and marketing
expenses, leading to a lower ratio of cost of revenues and
higher ratio of sales and marketing expenses as percentage of
revenues for this channel.
General and administrative expenses were RMB81.8 million (US$12.5 million), an increase of 999.2% from
RMB7.4 million in the fourth quarter
of 2019. Excluding share-based compensation expenses of
RMB55.6 million, general and
administrative expenses were RMB26.1
million, an increase of 251.4% from same period last year,
primarily due to an increase in payroll-related expenses and
one-time IPO-related expenses.
Operating Income
(Loss)
Operating loss was RMB63.8 million
(US$9.8 million), compared with
RMB7.9 million in the fourth quarter
of 2019.
Adjusted operating income, excluding share-based compensation
expenses of RMB79.9 million, was
RMB16.1 million (US$2.5 million), compared with adjusted operating
loss of RMB7.9 million in the fourth
quarter of 2019.
Income Tax Benefits (Expenses)
Income tax benefits were RMB8.2
million (US$1.3 million),
which was mainly due to a tax exemption benefit as one major
operating entity of the Company was expected to qualify as
"Software Enterprise" for fiscal year 2020. This compares with
income tax expenses of RMB0.5 million
in the fourth quarter of 2019.
Net Income (Loss)
Net loss was RMB53.8 million
(US$8.2 million), compared with
RMB6.4 million in the fourth quarter
of 2019.
Adjusted net income was RMB26.1
million (US$4.0 million),
compared with an adjusted net loss of RMB6.4
million in the fourth quarter of 2019.
Net loss attributable to ordinary shareholders was
RMB54.1 million (US$8.3 million), compared with RMB7.2 million in the fourth quarter of 2019.
Adjusted net income attributable to ordinary shareholders was
RMB25.8 million (US$4.0 million), compared with adjusted net loss
attributable to ordinary shareholders of RMB7.2 million in the fourth quarter of 2019.
Basic and diluted net loss per ADS were RMB1.04 (US$0.16),
compared with RMB0.17 in the fourth
quarter of 2019. Each ADS represents five Class A ordinary shares
of the Company.
Adjusted diluted net income per ADS was RMB0.48 (US$0.07),
compared with adjusted diluted net loss per ADS of RMB0.17 in the fourth quarter of 2019.
Deferred Revenue and Customer
Advances
Deferred revenue and customer advances were RMB268.6 million (US$41.2
million) as of December 31,
2020, an increase of 274.0% year-over-year from RMB71.8 million as of December 31, 2019, primarily driven by user
expansion and enhanced user engagement.
Cash and Cash Equivalents
Cash and cash equivalents were RMB861.7
million (US$132.1 million) as
of December 31, 2020, compared with
RMB104.9 million as of December 31, 2019. The increase was
primarily due to strong operating cash inflow together with IPO
proceeds.
Fiscal Year 2020 Unaudited Financial Results
Revenues
Total revenues were RMB531.9
million (US$81.5 million), an
increase of 143.3% from RMB218.7
million in fiscal year 2019.
Revenues from learning services were RMB430.5 million (US$66.0
million), an increase of 300.8% from RMB107.4 million in fiscal year 2019, primarily
driven by user expansion and enhanced user engagement. Average
total MAUs were 10.61 million, an increase of 186.7% year-over-year
from 3.70 million in fiscal year 2019. The number of paying users
was 3.73 million, a year-over-year increase of 182.8 % from 1.32
million in fiscal year 2019.
Revenues from learning materials and devices were RMB101.4 million (US$15.5
million), compared with RMB111.2
million in fiscal year 2019. There was only a slight
decrease despite the impact of the Covid-19 pandemic.
Cost of Revenues
Cost of revenues was RMB166.5
million (US$25.5 million), an
increase of 97.8% from RMB84.2
million in fiscal year 2019. Excluding share-based
compensation expenses of RMB1.9
million, cost of revenues were RMB164.6 million, an increase of 95.5% from last
year, primarily due to increases in channel costs. The growth in
the Company's cost of revenues was in line with the Company's
revenue expansion.
Gross Profit and Gross Margin
Gross profit was RMB365.4 million
(US$56.0 million), an increase of
171.7% from RMB134.5 million in
fiscal year 2019. Gross margin was 68.7%, compared with 61.5% in
fiscal year 2019. The increase was mainly attributable to the
strong growth of the Company's learning services business, which
has a higher gross
margin.
Operating Expenses
Total operating expenses were RMB409.9
million (US$62.8 million), a
decrease of 0.8% from RMB413.3
million in fiscal year 2019. Share-based compensation
expenses of RMB78.0 million were
recognized during the fiscal year of 2020, compared with
RMB270.5 million in fiscal year 2019.
Excluding share-based compensation expenses, total operating
expenses were RMB331.9 million, an
increase of 132.5% from last year.
Research and development expenses were RMB199.5 million (US$30.6
million), an increase of 17.3% from RMB170.2 million in fiscal year 2019. Excluding
share-based compensation expenses of RMB19.5
million, research and development expenses were RMB180.0 million, an increase of 91.8% from last
year, primarily due to a rise in payroll-related expenses as the
Company continued to expand its R&D team and to enhance and
develop its products and services.
Sales and marketing expenses were RMB95.7
million (US$14.7 million), an
increase of 78.2% from RMB53.7
million in fiscal year 2019. Excluding share-based
compensation expenses of RMB2.9
million, sales and marketing expenses were RMB92.9 million, an increase of 233.7% from last
year, primarily due to an increase in advertising and promotion
expenses as the Company strategically strengthened its brand
recognition and marketing efforts to supplement organic user
growth.
General and administrative expenses were RMB114.7 million (US$17.6
million), a decrease of 39.5% from RMB189.4 million in fiscal year 2019. Excluding
share-based compensation expenses of RMB55.6
million, general and administrative expenses were
RMB59.0 million, an increase of
180.0% from last year, primarily due to increasing payroll-related
expenses and one-time IPO related expenses.
Operating Income
(Loss)
Operating loss was RMB44.5
million (US$6.8 million),
compared with RMB278.8 million in
fiscal year 2019.
Adjusted operating income, excluding share-based compensation
expenses of RMB79.9 million, was
RMB35.4 million (US$5.4 million), compared with an adjusted
operating loss of RMB8.3 million in
fiscal year 2019.
Income Tax Expenses
Income tax expenses were RMB0.5
million (US$0.1 million),
compared with RMB1.4 million in
fiscal year 2019.
Net Income (Loss)
Net loss was RMB37.5 million
(US$5.7 million), compared with
RMB275.6 million in fiscal year
2019.
Adjusted net income was RMB42.4
million (US$6.5 million),
compared with an adjusted net loss of RMB5.1
million in the fiscal year of 2019.
Net loss attributable to ordinary shareholders was
RMB48.3 million (US$7.4 million), compared with RMB276.4 million in fiscal year 2019.
Adjusted net income attributable to ordinary shareholders was
RMB31.6 million (US$4.8 million), compared with adjusted net loss
attributable to ordinary shareholders of RMB5.9 million in fiscal year 2019.
Basic and diluted net loss per ADS were RMB1.07 (US$0.16),
compared with RMB7.62 in fiscal year
2019.
Adjusted diluted net income per ADS was RMB0.66 (US$0.10),
compared with adjusted diluted net loss per ADS of RMB0.16 in fiscal year 2019.
Business Outlook
For the first quarter of 2021, the Company expects total
revenues to be between RMB220 million to RMB226
million, representing an increase of 182% to 190%
year-over-year. This takes into consideration the expected growth
from the strong and continued expansion of the Company's learning
services. These estimates represent management's current and
preliminary view, which is subject to change.
Conference Call Information
The Company will hold a conference call on Thursday, March 25 2021 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong
Kong time on the same day) to discuss the financial results
for the fourth quarter ended December 31,
2020. Dial-in details for the earnings conference call are
as follows:
International:
|
1-412-317-6061
|
US:
|
1-888-317-6003
|
Hong
Kong:
|
800-963976
|
Mainland
China:
|
4001-206115
|
Singapore:
|
800-120-5863
|
England:
|
08082389063
|
Passcode:
|
2635324
|
A telephone replay will be available two hours after the
conclusion of the conference call through April 1, 2021. The dial-in details are:
International:
|
1-412-317-0088
|
US:
|
1-877-344-7529
|
Passcode:
|
10153190
|
Additionally, a live and archived webcast of this conference
call will be available at https://ir.ihuman.com/.
Exchange Rate Information
The U.S. dollar (US$) amounts disclosed in this press release,
except for those transaction amounts that were actually settled in
U.S. dollars, are presented solely for the convenience of the
reader. The conversion of Renminbi (RMB) into US$ in this
release is based on the noon buying rate in The City of New York for cable transfers in RMB
per US$ as certified for customs purposes by the Federal Reserve
Bank of New York as of
December 31, 2020, which was
RMB6.525 to US$1.00. The percentages stated in this
press release are calculated based on the RMB amounts.
Non-GAAP Financial Measures
iHuman considers and uses non-GAAP financial measures, such as
adjusted operating income (loss), adjusted net income (loss),
adjusted net income (loss) attributable to ordinary shareholders
and adjusted diluted net income (loss) per ADS, as supplemental
metrics in reviewing and assessing its operating performance and
formulating its business plan. The presentation of non-GAAP
financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and
presented in accordance with accounting principles generally
accepted in the United States of
America ("U.S. GAAP"). iHuman defines adjusted operating
income (loss), adjusted net income (loss) adjusted net income
(loss) attributable to ordinary shareholders and adjusted diluted
net income (loss) per ADS excluding share-based compensation
expenses. Adjusted operating income (loss), adjusted net income
(loss) and adjusted net income (loss) attributable to
ordinary shareholders and adjusted diluted net income (loss) per
ADS enable iHuman's management to assess its operating results
without considering the impact of share-based compensation
expenses, which are non-cash charges. iHuman believes that these
non-GAAP financial measures provide useful information to investors
in understanding and evaluating the Company's current operating
performance and prospects in the same manner as management does, if
they so choose.
Non-GAAP financial measures are not defined under U.S. GAAP and
are not presented in accordance with U.S. GAAP. Non-GAAP financial
measures have limitations as analytical tools, which possibly does
not reflect all items of expense that affect our operations.
Share-based compensation expenses have been and may continue to be
incurred in our business and are not reflected in the presentation
of adjusted net income (loss) attributable to the Company's
ordinary shareholders. In addition, the non-GAAP financial measures
iHuman uses may differ from the non-GAAP measures uses by other
companies, including peer companies, and therefore their
comparability may be limited. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation
from or as a substitute for the financial information prepared and
presented in accordance with GAAP.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the
United States 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" and similar statements. Statements
that are not historical facts, including statements about iHuman's
beliefs and expectations, are forward-looking statements. Among
other things, the description of the management's quotations and
the business outlook in this announcement contain forward-looking
statements. iHuman 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 press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. 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: iHuman's
growth strategies; its future business development, financial
condition and results of operations; its ability to continue to
attract and retain users, convert non-paying users into paying
users and increase the spending of paying users, the trends in, and
size of, China's edutainment
market; its expectations regarding demand for, and market
acceptance of, its products and services; its expectations
regarding its relationships with business partners; general
economic and business conditions; and assumptions underlying or
related to any of the foregoing. Further information regarding
these and other risks is included in iHuman's filings with the SEC.
All information provided in this press release is as of the date of
this press release, and iHuman does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
About iHuman Inc.
iHuman Inc. is a leading childhood edutainment company in
China that is committed to
transforming learning into a fun journey for every child.
Benefiting from a legacy that combines a strong educational
foundation and decades of experience in childhood education with
cutting edge technology and an outstanding reputation for original
entertainment content, iHuman provides children with unique,
interactive, and entertaining learning experiences. The Company's
comprehensive suite of innovative and high-quality products and
services caters to the educational needs of kids at school and at
home, both online and offline, and covers diverse subjects,
including Chinese learning, English, mathematics and critical
thinking, literacy and reading, Chinese culture, STEM and other
subjects. iHuman's line-up of highly effective edutainment products
and services include interactive and self-directed learning apps,
as well as learning materials and smart learning devices. With
solid pedagogy, deep understanding of children's education and
psychology, as well as advanced technology capabilities in
gamification, AI/AR technologies, and big data analysis, iHuman
believes it will continue to provide learning experiences that are
both educational and fun for children in China and all over the world through its
integrated suite of childhood edutainment products and
services.
For more information about iHuman, please visit
https://ir.ihuman.com/.
For investor and media enquiries, please contact:
iHuman Inc.
Ms. Cynthia
Tan, CFA
Phone: +86 10 5780-6606
E-mail: cynthia.tan@ihuman.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-13801110739
E-mail: Eyuan@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: lbergkamp@christensenir.com
iHuman Inc.
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
except for number
of shares, ADSs, per share and per ADS
data)
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
104,883
|
|
861,682
|
|
132,059
|
Accounts receivable,
net
|
20,118
|
|
77,965
|
|
11,949
|
Amounts due from
related parties
|
867
|
|
322
|
|
49
|
Inventories,
net
|
20,665
|
|
16,873
|
|
2,586
|
Prepayments and other
current assets
|
16,529
|
|
64,619
|
|
9,903
|
Total current
assets
|
163,062
|
|
1,021,461
|
|
156,546
|
Non-current
assets
|
|
|
|
|
|
Property and
equipment, net
|
2,487
|
|
6,390
|
|
979
|
Intangible assets,
net
|
103
|
|
11,789
|
|
1,807
|
Operating
lease right-to-use assets
|
-
|
|
6,521
|
|
999
|
Other non-current
assets
|
2,663
|
|
784
|
|
121
|
Total non-current
assets
|
5,253
|
|
25,484
|
|
3,906
|
Total
assets
|
168,315
|
|
1,046,945
|
|
160,452
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
10,302
|
|
21,551
|
|
3,303
|
Amounts due to related
parties
|
69,431
|
|
485
|
|
74
|
Deferred revenue and
customer advances
|
71,831
|
|
268,613
|
|
41,167
|
Accrued expenses and
other current liabilities
|
31,200
|
|
107,029
|
|
16,403
|
Current operating
lease liabilities
|
-
|
|
1,544
|
|
237
|
Total current
liabilities
|
182,764
|
|
399,222
|
|
61,184
|
Non-current
liabilities
|
|
|
|
|
|
Non-current operating
lease liabilities
|
-
|
|
5,070
|
|
777
|
Total non-current
liabilities
|
-
|
|
5,070
|
|
777
|
Total
liabilities
|
182,764
|
|
404,292
|
|
61,961
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
MEZZANINE
EQUITY
|
|
|
|
|
|
Contingently
redeemable ordinary shares (par value of US$0.0001 per share, 11,318,619 and
nil
shares issued and outstanding as of
December 31, 2019
and December 30, 2020,
respectively)
|
120,821
|
|
-
|
|
-
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY (DEFICIT)
|
|
|
|
|
|
Ordinary shares (par
value of US$0.0001 per share,
500,000,000 shares authorized, 215,053,763
shares issued
and outstanding as of December 31, 2019;
122,622,382
Class A ordinary shares issued and
outstanding,
144,000,000 Class B ordinary shares issued
and
outstanding as of December 31, 2020)
|
149
|
|
184
|
|
28
|
Additional paid-in
capital
|
213,079
|
|
1,050,304
|
|
160,966
|
Accumulated other
comprehensive loss
|
-
|
|
(21,861)
|
|
(3,350)
|
Accumulated
deficit
|
(348,498)
|
|
(385,974)
|
|
(59,153)
|
Total
shareholders' equity (deficit)
|
(135,270)
|
|
642,653
|
|
98,491
|
|
Total liabilities,
mezzanine equity and shareholders' equity
|
168,315
|
|
1,046,945
|
|
160,452
|
iHuman Inc. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
except for number
of shares, ADSs, per share and per ADS data)
|
|
|
Three months
ended
|
|
|
For the year
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2020
|
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
36,621
|
|
157,322
|
|
24,111
|
|
|
107,409
|
|
430,466
|
|
65,972
|
Learning materials
and devices
|
25,236
|
|
32,215
|
|
4,937
|
|
|
111,247
|
|
101,449
|
|
15,548
|
Total
Revenues
|
61,857
|
|
189,537
|
|
29,048
|
|
|
218,656
|
|
531,915
|
|
81,520
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Learning
services
|
(8,641)
|
|
(37,454)
|
|
(5,740)
|
|
|
(25,793)
|
|
(107,904)
|
|
(16,537)
|
Learning materials
and devices
|
(14,616)
|
|
(19,555)
|
|
(2,997)
|
|
|
(58,370)
|
|
(58,568)
|
|
(8,976)
|
Gross
profit
|
38,600
|
|
132,528
|
|
20,311
|
|
|
134,493
|
|
365,443
|
|
56,007
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
(30,634)
|
|
(69,971)
|
|
(10,724)
|
|
|
(170,155)
|
|
(199,510)
|
|
(30,576)
|
Sales and marketing
expenses
|
(8,405)
|
|
(44,605)
|
|
(6,836)
|
|
|
(53,716)
|
|
(95,717)
|
|
(14,669)
|
General and
administrative expenses
|
(7,440)
|
|
(81,783)
|
|
(12,534)
|
|
|
(189,433)
|
|
(114,667)
|
|
(17,573)
|
Total operating
expenses
|
(46,479)
|
|
(196,359)
|
|
(30,094)
|
|
|
(413,304)
|
|
(409,894)
|
|
(62,818)
|
Operating
loss
|
(7,879)
|
|
(63,831)
|
|
(9,783)
|
|
|
(278,811)
|
|
(44,451)
|
|
(6,811)
|
Other income,
net
|
1,986
|
|
1,853
|
|
284
|
|
|
4,578
|
|
7,441
|
|
1,140
|
Loss before income
taxes
|
(5,893)
|
|
(61,978)
|
|
(9,499)
|
|
|
(274,233)
|
|
(37,010)
|
|
(5,671)
|
Income tax benefit
(expense)
|
(529)
|
|
8,228
|
|
1,261
|
|
|
(1,364)
|
|
(466)
|
|
(71)
|
Net
loss
|
(6,422)
|
|
(53,750)
|
|
(8,238)
|
|
|
(275,597)
|
|
(37,476)
|
|
(5,742)
|
Accretion to
redemption value of
contingently redeemable ordinary
shares
|
(821)
|
|
(347)
|
|
(53)
|
|
|
(821)
|
|
(10,792)
|
|
(1,654)
|
Net loss
attributable to ordinary
shareholders
|
(7,243)
|
|
(54,097)
|
|
(8,291)
|
|
|
(276,418)
|
|
(48,268)
|
|
(7,396)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to ordinary
shareholders per ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
and diluted
|
(0.17)
|
|
(1.04)
|
|
(0.16)
|
|
|
(7.62)
|
|
(1.07)
|
|
(0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ADSs:
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
and diluted
|
43,010,752
|
|
51,990,130
|
|
51,990,130
|
|
|
36,285,520
|
|
45,267,864
|
|
45,267,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total share-based
compensation
expenses included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
-
|
|
1,897
|
|
291
|
|
|
-
|
|
1,897
|
|
291
|
Research and
development expenses
|
-
|
|
19,499
|
|
2,988
|
|
|
76,301
|
|
19,499
|
|
2,988
|
Sales and marketing
expenses
|
-
|
|
2,858
|
|
438
|
|
|
25,892
|
|
2,858
|
|
438
|
General and
administrative expenses
|
-
|
|
55,637
|
|
8,527
|
|
|
168,348
|
|
55,637
|
|
8,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iHuman Inc.
UNAUDITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
except for number
of shares, ADSs, per share and per ADS data)
|
|
|
Three months
ended
|
For the year
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December31,
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(7,879)
|
|
(63,831)
|
|
(9,783)
|
|
(278,811)
|
|
(44,451)
|
|
(6,811)
|
Share-based
compensation
expenses
|
-
|
|
79,891
|
|
12,244
|
|
270,541
|
|
79,891
|
|
12,244
|
Adjusted operating
income
(loss)
|
(7,879)
|
|
16,060
|
|
2,461
|
|
(8,270)
|
|
35,440
|
|
5,433
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(6,422)
|
|
(53,750)
|
|
(8,238)
|
|
(275,597)
|
|
(37,476)
|
|
(5,742)
|
Share-based
compensation
expenses
|
-
|
|
79,891
|
|
12,244
|
|
270,541
|
|
79,891
|
|
12,244
|
Adjusted net
income (loss)
|
(6,422)
|
|
26,141
|
|
4,006
|
|
(5,056)
|
|
42,415
|
|
6,502
|
Accretion to
redemption value
of contingently redeemable
ordinary shares
|
(821)
|
|
(347)
|
|
(53)
|
|
(821)
|
|
(10,792)
|
|
(1,654)
|
Adjusted net
income (loss)
attributable to ordinary
shareholders
|
(7,243)
|
|
25,794
|
|
3,953
|
|
(5,877)
|
|
31,623
|
|
4,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss
per ADS
|
(0.17)
|
|
(1.04)
|
|
(0.16)
|
|
(7.62)
|
|
(1.07)
|
|
(0.16)
|
Impact of non-GAAP
adjustments
|
-
|
|
1.52
|
|
0.23
|
|
7.46
|
|
1.73
|
|
0.26
|
Adjusted diluted
net income
(loss) per ADS
|
(0.17)
|
|
0.48
|
|
0.07
|
|
(0.16)
|
|
0.66
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
ADSs – diluted
|
43,010,752
|
|
51,990,130
|
|
51,990,130
|
|
36,285,520
|
|
45,267,864
|
|
45,267,864
|
Incremental dilutive
securities
|
-
|
|
1,934,255
|
|
1,934,255
|
|
-
|
|
2,413,145
|
|
2,413,145
|
Weighted average
number of
ADSs – adjusted
|
43,010,752
|
|
53,924,385
|
|
53,924,385
|
|
36,285,520
|
|
47,681,009
|
|
47,681,009
|
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SOURCE iHuman Inc.