BEIJING, Sept. 28, 2021 /PRNewswire/ -- China Online
Education Group ("51Talk" or the "Company") (NYSE: COE), a leading
online education platform in China, with core expertise in English
education, announced its unaudited financial results for the second
quarter ended June 30, 2021.
Second Quarter 2021 Financial and
Operating Metrics
- Net revenues were RMB579.8
million (US$89.8 million), a
17.5% increase from RMB493.5 million
for the second quarter of 2020.
- Gross margin was 72.7%, compared with 70.9% for the second
quarter of 2020.
- Net loss was RMB27.0 million
(US$4.2 million), compared with net
income of RMB32.8 million for the
second quarter of 2020.
- Non-GAAP net loss[1] was RMB17.8 million (US$2.8
million), compared with non-GAAP net income of RMB39.6 million for the second quarter of
2020.
- Operating cash outflow was RMB69.7
million (US$10.8 million),
compared with RMB172.1 million of
operating cash inflow for the second quarter of 2020.
- Cash, cash equivalents, time deposits and short-term
investments balance stood at RMB1,642.8
million (US$254.4 million) as
of June 30, 2021.
- Gross billings[2] were RMB549.9 million (US$85.2
million), an 18.7% decrease from RMB676.4 million for the second quarter of
2020.
Key Financial and
Operating Data
|
For the three
months ended
|
|
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Y-o-Y
|
|
2020
|
|
2021
|
|
Change
|
|
|
|
|
|
|
Net
Revenues (in RMB millions)
|
493.5
|
|
579.8
|
|
17.5%
|
K-12 one-on-one mass
market offering
|
417.9
|
|
534.6
|
|
27.9%
|
K-12 small class
offering
|
28.5
|
|
16.8
|
|
(41.1%)
|
Others
|
47.1
|
|
28.4
|
|
(39.7%)
|
|
|
|
|
|
|
Gross
billings (in RMB millions)
|
676.4
|
|
549.9
|
|
(18.7%)
|
K-12 one-on-one mass
market offering
|
612.5
|
|
516.0
|
|
(15.8%)
|
K-12 small
class offering
|
42.4
|
|
17.4
|
|
(59.0%)
|
Others
|
21.5
|
|
16.5
|
|
(23.3%)
|
|
|
|
|
|
|
Active
students[3] (in thousands)
|
298.2
|
|
404.7
|
|
35.7%
|
|
|
|
|
|
|
[1] For more information
on non-GAAP financial measures, please see the section of "Use of
Non-GAAP Financial Measures" and the table captioned
"Reconciliation of Non-GAAP Measures to the Most Comparable GAAP
Measures" set forth in this press release.
|
[2] Gross
billings for a specific period, which is one of the Company's key
operating data, is defined as the total amount of cash received for
the sale of course packages and services in such period,
net of the total amount of refunds in such period.
|
[3] An
"active student" for a specified period refers to a student
who booked at least one paid lesson, excluding those students who
only attended paid live broadcasting lessons or trial
lessons.
|
"Our second quarter net revenue reached RMB579.8 million, primarily driven by a 35.7%
year-over-year increase in the number of active students," said Mr.
Jack Jiajia Huang, Founder, Chairman
and Chief Executive Officer of 51Talk.
"On July 24, 2021, relevant
Chinese authorities issued the Opinions on Further Alleviating the
Burden of Homework and After-School Tutoring for Students in
Compulsory Education ("the Opinion"), which contains high-level
policy directives about requirements and restrictions related to
online and offline after-school tutoring services. Aligned with the
Opinion's directives and requirements, 51Talk launched brand new
All-round Proficiency Courses in small class format for children
and teenagers led by Chinese teachers. Meanwhile, we plan to
develop our overseas business by offering one-on-one classes for
international K-12 and adult student users taught by foreign
teachers.
"Where there are new challenges, there will also be new
opportunities. In keeping with the revised framework and
regulations for our industry, we will continue to innovate our
course offerings and explore growth opportunities." Concluded Mr.
Huang.
"We recorded a 17.5% increase of net revenue and a 20.5%
increase of gross profit on a year-over-year basis," said Mr.
Min Xu, Chief Financial Officer of
51Talk. "Net loss for the second quarter was RMB27.0 million, attributable mainly to higher
operating expenses incurred as we spent efforts in brand building
and upgrading courses offerings and services. Under the new
regulations, the Company has taken actions to adapt to the latest
operating environment and will take further measures to improve
operating efficiency. Looking ahead, we will continue to create
value for our students and teachers while conforming to all laws
and regulations."
Second Quarter 2021 Financial Results
Net Revenues
Net revenues for the second quarter of 2021 were RMB579.8 million (US$89.8 million), a 17.5% increase from
RMB493.5 million for the same
quarter last year. The increase was primarily attributed to an
increase in the number of active students, partially offset by a
decrease in average revenue per active student. The number of
active students in the second quarter of 2021 was 404,700, a 35.7%
increase from 298,200 for the same quarter last year.
Cost of Revenues
Cost of revenues for the second quarter of 2021 was RMB158.1 million (US$24.5
million), a 10.2% increase from RMB143.6 million for the same quarter last year.
The increase was primarily driven by an increase in total
service fees paid to teachers, mainly due to an increased
number of paid lessons.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2021 was RMB421.6 million (US$65.3 million), a 20.5% increase from
RMB349.9 million for the same quarter
last year.
Gross margin for the second quarter of 2021 was 72.7%, compared
with 70.9% for the same quarter last year. The increase was
mainly attributable to the decrease of the cost per lesson,
partially offset by the decrease of the revenue per lesson.
Operating Expenses
Total operating expenses for the second quarter of 2021 were
RMB461.0 million (US$71.4 million), a 38.7% increase from
RMB332.4 million for the same
quarter last year. The increase was mainly due to an increase in
sales and marketing expenses.
Sales and marketing expenses for the second quarter of 2021 were
RMB315.8 million (US$48.9 million), a 31.7% increase from
RMB239.9 million for the same
quarter last year. The increase was mainly due to higher
sales personnel costs related to increases in both the number of
personnel and average salary and higher marketing and branding
expenses. Excluding share-based compensation expenses, non-GAAP
sales and marketing expenses for the second quarter of 2021
were RMB313.4 million
(US$48.5 million), a 32.0% increase
from RMB237.4 million for the same
quarter last year.
Product development expenses for the second quarter of 2021 were
RMB65.0 million (US$10.1 million), a 68.4% increase from
RMB38.6 million for the same
quarter last year. The increase was primarily due to higher product
development personnel costs related to increases in the number of
personnel. Excluding share-based compensation expenses, non-GAAP
product development expenses for the second quarter of 2021 were
RMB63.4 million (US$9.8 million), a 71.5% increase from
RMB37.0 million for the same quarter
last year.
General and administrative expenses for the second quarter of
2021 were RMB80.2 million
(US$12.4 million), a 48.7%
increase from RMB53.9 million
for the same quarter last year. The increase was primarily due to
higher general and administrative personnel costs related to
increases in both the number of personnel and average salary.
Excluding share-based compensation expenses, non-GAAP general and
administrative expenses for the second quarter of 2021 were
RMB75.0 million (US$11.6 million), a 46.6% increase from
RMB51.1 million for the same
quarter last year.
Other income
The exemption for the value added tax (VAT) of consumer services
has been stopped as of March 31,
2021. This exemption, which covers a wide range of consumer
services, was part of the Chinese government's effort to ease the
burden of businesses affected by the COVID-19 pandemic. The income
obtained by taxpayers from providing essential services shall be
exempted from VAT. The favorable impact of such COVID-19 relief
policies was nil and RMB7.0 million
in the second quarter of 2021 and 2020 respectively.
On September 30, 2019, the
Ministry of Finance and the State Taxation Administration announced
that from October 1, 2019 to
December 31, 2021, taxpayers engaging
in the provision of essential services are allowed to deduct an
extra 15% of the deductible input value-added tax for the current
period from the payable value-added tax. The impact of the policy
of additional value-added tax credit for the income generated by
the essential services provided by enterprises was RMB5.6 million and RMB2.6
million in the second quarter of 2021 and 2020
respectively.
(Loss)/income from Operations
Operating loss for the second quarter of 2021 was RMB33.8 million (US$5.2
million), compared with operating income of
RMB27.1 million for the same quarter
last year. Operating margin for the second quarter was negative
5.8%, compared with operating margin of 5.5% for the same quarter
last year.
Non-GAAP operating loss for the second quarter of 2021 was
RMB24.5 million (US$3.8 million), compared with non-GAAP
operating income of RMB34.0 million
for the same quarter last year. Non-GAAP operating margin for the
second quarter was negative 4.2%, compared with non-GAAP operating
margin of 6.9% for the same quarter last year.
Net (loss)/income
Net loss for the second quarter of 2021 was RMB27.0 million (US$4.2
million), compared with net income of RMB32.8 million for the same quarter last year.
Net margin for the second quarter was negative 4.7%, compared with
net margin of 6.6% for the same quarter last year.
Non-GAAP net loss for the second quarter of 2021 was
RMB17.8 million (US$2.8 million), compared with non-GAAP
net income of RMB39.6 million
for the same quarter last year. Non-GAAP net margin for the second
quarter was negative 3.1%, compared with non-GAAP net margin of
8.0% for the same quarter last year.
Income tax expense for the second quarter of 2021 was
RMB2.9 million.
Basic net loss per share attributable to ordinary
shareholders for the second quarter of 2021 was RMB0.08 (US$0.01),
compared with basic net income per share of RMB0.10 for the same quarter last year.
Diluted net loss per share attributable to ordinary
shareholders for the second quarter of 2021 was RMB0.08 (US$0.01),
compared with diluted net income per share of RMB0.10 for the same quarter last year.
Non-GAAP basic net loss per share attributable to ordinary
shareholders for the second quarter of 2021 was RMB0.05 (US$0.01),
compared with non-GAAP basic net income per share attributable
to ordinary shareholders of RMB0.12 for the same quarter last year.
Non-GAAP diluted net loss per share attributable to
ordinary shareholders for the second quarter of 2021 was
RMB0.05 (US$0.01), compared with non-GAAP
diluted net income per share attributable to ordinary
shareholders of RMB0.12 for the
same quarter last year.
Basic and diluted net loss per American depositary share ("ADS")
attributable to ordinary shareholders for the second quarter of
2021 was RMB1.24 (US$0.19), compared with basic net income per ADS
of RMB1.55 and diluted net income per
ADS of RMB1.44 for the same quarter
last year. Each ADS represents 15 Class A ordinary shares.
Non-GAAP basic and diluted net loss per ADS attributable to
ordinary shareholders for the second quarter of 2021 was
RMB0.82 (US$0.13), compared with non-GAAP basic net
income per ADS attributable to ordinary shareholders of
RMB1.87 and diluted net income per
ADS of RMB1.75 for the same quarter
last year.
Balance Sheet
As of June 30, 2021, the Company
had total cash, cash equivalents, time deposits and short-term
investments of RMB1,642.8 million
(US$254.4 million), compared
with RMB1,727.7 million as of
December 31, 2020. As a part of cash,
cash equivalents, time deposits and short-term investments, the
Company had non-current time deposits of RMB412.0 million (US$63.8
million), compared with RMB414.0
million as of December 31,
2020.
As of June 30, 2021, the Company
has a consolidated net current liability of RMB1,440.4 million, compared with net current
liability of RMB1,400.4 million as of
December 31, 2020. The Company had
advances from students[4] (current and non-current) of
RMB2,695.0 million (US$417.4 million) as of June 30, 2021, compared with RMB2,721.0 million as of December 31, 2020.
[4]
"Advances from students," which is defined as the amount of
obligation to transfer good or service to students or business
partners for which consideration has been received from students in
advance. The deposits from students are also presented in the
total amount of "advances from students".
|
Subsequent Events
Based on the management's assessments, as a result of the
changing regulatory environment and the business adjustment plan
taken by the Company, impairment of long-lived assets and reversal
of interest income recognized for time deposit are expected to be
recognized in subsequent period.
Outlook
For the third quarter of 2021, the Company currently expects net
revenues to be between RMB550.0
million and RMB555.0 million,
which would represent an increase of approximately 2.1% to 3.1%
from RMB538.5 million for the same
quarter last year.
The above outlook is based on current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions and customer demand, which are all subject
to change.
In addition, the Company's future operational and financial
performance depends on the future development of the implementation
of the Opinion and the success of the Company's business adjustment
plans, which is subject to inherent uncertainties at this time.
Conference Call
The Company's management will host an earnings conference call
at 8:00 AM U.S. Eastern Time on
September 28, 2021 (8:00 PM Beijing/Hong
Kong time on September 28,
2021).
Dial-in details for the earnings conference call are as
follows:
United States (toll
free):
|
1-888-394-8218
|
International:
|
1-323-701-0225
|
Mainland
China:
|
400-120-9101
|
Hong Kong (toll
free):
|
800-961-105
|
Hong Kong:
|
852-3008-1527
|
Participants should dial-in at least 5 minutes before the
scheduled start time and ask to be connected to the call for "China
Online Education Group."
Additionally, a live and archived webcast of the conference call
will be available on the Company's investor relations website at
http://ir.51talk.com.
A replay of the conference call will be accessible until
September 28, 2021, by dialing the
following telephone numbers:
United States (toll
free):
|
1-888-203-1112
|
International:
|
1-719-457-0820
|
Replay Access
Code:
|
6658686
|
About China Online Education Group
China Online Education Group (NYSE: COE) is a leading online
education platform in China, with
core expertise in English education. The Company's mission is to
make quality education accessible and affordable. The Company's
online and mobile education platforms enable students across
China to take live interactive
English lessons with overseas foreign teachers, on demand. The
Company connects its students with a large pool of highly qualified
foreign teachers that it assembled using a shared economy approach,
and employs student and teacher feedback and data analytics to
deliver a personalized learning experience to its students.
Use of Non-GAAP Financial Measures
In evaluating its business, 51Talk considers and uses the
following measures defined as non-GAAP financial measures by the
SEC as supplemental metrics to review and assess its operating
performance: non-GAAP sales and marketing expenses, non-GAAP
product development expenses, non-GAAP general and administrative
expenses, non-GAAP operating expenses, non-GAAP operating
income/(loss), non-GAAP net income/(loss), non-GAAP net
income/(loss) attributable to ordinary shareholders, and non-GAAP
net income/(loss) attributable to ordinary shareholders per share
and per ADS. To present each of these non-GAAP measures, the
Company excludes share-based compensation expenses. The
presentation of these 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 GAAP. For
more information on these non-GAAP financial measures, please see
the table captioned "Reconciliations of non-GAAP measures to the
most comparable GAAP measures" set forth at the end of this press
release.
51Talk believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance by
excluding share-based compensation expenses that may not be
indicative of its operating performance from a cash perspective.
51Talk believes that both management and investors benefit from
these non-GAAP financial measures in assessing its performance and
when planning and forecasting future periods. These non-GAAP
financial measures also facilitate management's internal
comparisons to 51Talk's historical performance. 51Talk computes its
non-GAAP financial measures using the same consistent method from
quarter to quarter and from period to period. 51Talk believes these
non-GAAP financial measures are useful to investors in allowing for
greater transparency with respect to supplemental information used
by management in its financial and operational decision-making. A
limitation of using non-GAAP measures is that these non-GAAP
measures exclude share-based compensation expenses that have been
and will continue to be for the foreseeable future a significant
recurring expense in the 51Talk's business. Management compensates
for these limitations by providing specific information regarding
the GAAP amounts excluded from each non-GAAP measure. The
accompanying table at the end of this press release provides more
details on the reconciliations between GAAP financial measures that
are most directly comparable to non-GAAP financial measures.
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 RMB
to U.S. dollars are made at a rate of RMB6.4566 to US$1.00, the rate in effect as of June 30,
2021as certified for customs purposes by the Federal Reserve Bank
of New York.
Safe Harbor Statement
This press release 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. Among other things, 51Talk's quotations
from management in this announcement, as well as 51Talk's strategic
and operational plans, contain forward-looking statements. 51Talk
may also make written or oral forward-looking statements in its
periodic reports to the Securities and Exchange Commission ("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. Statements that are not
historical facts, including statements about 51Talk's beliefs 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: 51Talk's goals and strategies; 51Talk's
expectations regarding demand for and market acceptance of its
brand and platform; 51Talk's ability to retain and increase its
student enrollment; 51Talk's ability to offer new courses; 51Talk's
ability to engage, train and retain new teachers; 51Talk's future
business development, results of operations and financial
condition; 51Talk's ability to maintain and improve infrastructure
necessary to operate its education platform; competition in the
online education industry in China; the expected growth of, and trends in,
the markets for 51Talk's course offerings in China; relevant government policies and
regulations relating to 51Talk's corporate structure, business and
industry; general economic and business condition in China, the
Philippines and elsewhere and assumptions underlying or
related to any of the foregoing. Further information regarding
these and other risks is included in 51Talk's filings with the SEC.
All information provided in this press release is as of the date of
this press release, and 51Talk does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
CHINA ONLINE
EDUCATION GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
Dec.
31,
|
|
Jun.
30
|
|
Jun.
30,
|
|
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
326,647
|
|
341,858
|
|
52,947
|
|
|
Time
deposits
|
|
477,408
|
|
501,025
|
|
77,599
|
|
|
Short-term
investments
|
|
509,636
|
|
387,886
|
|
60,076
|
|
|
Inventory
|
|
1,935
|
|
1,941
|
|
301
|
|
|
Prepaid expenses and
other current assets
|
|
302,057
|
|
327,458
|
|
50,717
|
|
Total current
assets
|
|
1,617,683
|
|
1,560,168
|
|
241,640
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
21,175
|
|
39,932
|
|
6,185
|
|
|
Intangible assets,
net
|
|
20,302
|
|
34,719
|
|
5,377
|
|
|
Goodwill
|
|
4,223
|
|
10,209
|
|
1,581
|
|
|
Right-of-use
assets
|
|
98,001
|
|
104,021
|
|
16,111
|
|
|
Time
deposits
|
|
414,000
|
|
412,000
|
|
63,811
|
|
|
Deferred tax
assets
|
|
10,268
|
|
5,300
|
|
821
|
|
|
Other non-current
assets
|
|
23,896
|
|
29,730
|
|
4,605
|
|
Total non-current
assets
|
|
591,865
|
|
635,911
|
|
98,491
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
2,209,548
|
|
2,196,079
|
|
340,131
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
AND SHAREHOLDERS'
DEFICIT
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Advances from
students
|
|
2,718,776
|
|
2,693,341
|
|
417,145
|
|
|
Accrued expenses and
other current liabilities
|
|
237,101
|
|
232,034
|
|
35,937
|
|
|
Lease
liability
|
|
42,949
|
|
52,097
|
|
8,069
|
|
|
Taxes
payable
|
|
19,288
|
|
23,054
|
|
3,571
|
|
Total current
liabilities
|
|
3,018,114
|
|
3,000,526
|
|
464,722
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Advances from
students
|
|
2,270
|
|
1,690
|
|
262
|
|
|
Deferred tax
liabilities
|
|
-
|
|
3,738
|
|
579
|
|
|
Lease
liability
|
|
53,594
|
|
53,929
|
|
8,353
|
|
|
Other non-current
liabilities
|
|
2,508
|
|
2,834
|
|
439
|
|
Total non-current
liabilities
|
|
58,372
|
|
62,191
|
|
9,633
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
3,076,486
|
|
3,062,717
|
|
474,355
|
|
|
|
|
|
|
|
|
|
Total shareholders'
deficit
|
|
(866,938)
|
|
(866,638)
|
|
(134,224)
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' deficit
|
|
2,209,548
|
|
2,196,079
|
|
340,131
|
CHINA ONLINE
EDUCATION GROUP
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
|
(In thousands
except for number of shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net
revenues
|
|
493,471
|
|
600,404
|
|
579,751
|
|
89,792
|
|
980,555
|
|
1,180,155
|
|
182,783
|
Cost of
revenues
|
|
(143,560)
|
|
(159,713)
|
|
(158,133)
|
|
(24,492)
|
|
(287,591)
|
|
(317,846)
|
|
(49,228)
|
Gross
profit
|
|
349,911
|
|
440,691
|
|
421,618
|
|
65,300
|
|
692,964
|
|
862,309
|
|
133,555
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(239,894)
|
|
(318,944)
|
|
(315,832)
|
|
(48,916)
|
|
(468,281)
|
|
(634,776)
|
|
(98,314)
|
Product development
expenses
|
|
(38,616)
|
|
(57,726)
|
|
(65,029)
|
|
(10,072)
|
|
(74,483)
|
|
(122,755)
|
|
(19,012)
|
General and
administrative
expenses
|
|
(53,902)
|
|
(69,208)
|
|
(80,172)
|
|
(12,417)
|
|
(104,591)
|
|
(149,380)
|
|
(23,136)
|
Total operating
expenses
|
|
(332,412)
|
|
(445,878)
|
|
(461,033)
|
|
(71,405)
|
|
(647,355)
|
|
(906,911)
|
|
(140,462)
|
Other
income
|
|
9,628
|
|
11,094
|
|
5,615
|
|
870
|
|
26,389
|
|
16,709
|
|
2,588
|
Income/(loss) from
operations
|
|
27,127
|
|
5,907
|
|
(33,800)
|
|
(5,235)
|
|
71,998
|
|
(27,893)
|
|
(4,319)
|
Interest
income
|
|
8,735
|
|
11,620
|
|
10,737
|
|
1,663
|
|
16,312
|
|
22,357
|
|
3,463
|
Interest expenses and
other
expenses, net
|
|
(1,337)
|
|
(3,408)
|
|
(1,046)
|
|
(162)
|
|
(1,546)
|
|
(4,454)
|
|
(690)
|
Income/(loss) before
income tax
expenses
|
|
34,525
|
|
14,119
|
|
(24,109)
|
|
(3,734)
|
|
86,764
|
|
(9,990)
|
|
(1,546)
|
Income tax
expenses
|
|
(1,759)
|
|
(6,097)
|
|
(2,907)
|
|
(450)
|
|
(3,206)
|
|
(9,004)
|
|
(1,395)
|
Net income/(loss),
all
attributable to the Company's
ordinary shareholders
|
|
32,766
|
|
8,022
|
|
(27,016)
|
|
(4,184)
|
|
83,558
|
|
(18,994)
|
|
(2,941)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
ordinary shares used in
computing basic earnings/(loss)
per share
|
|
317,793,905
|
|
322,796,828
|
|
326,390,311
|
|
326,390,311
|
|
315,495,702
|
|
324,603,496
|
|
324,603,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
ordinary shares used in
computing diluted
earnings/(loss) per share
|
|
340,457,526
|
|
342,150,096
|
|
326,390,311
|
|
326,390,311
|
|
338,680,304
|
|
324,603,496
|
|
324,603,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA
ONLINE EDUCATION GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
|
(In thousands
except for number of shares and per share data)
|
|
|
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
|
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
|
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings/(loss) per share attributable to
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.10
|
|
0.02
|
|
(0.08)
|
|
(0.01)
|
|
0.26
|
|
(0.06)
|
|
(0.01)
|
|
|
|
diluted
|
|
0.10
|
|
0.02
|
|
(0.08)
|
|
(0.01)
|
|
0.25
|
|
(0.06)
|
|
(0.01)
|
|
|
Net earnings/(loss)
per ADS attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic
|
|
1.55
|
|
0.37
|
|
(1.24)
|
|
(0.19)
|
|
3.97
|
|
(0.88)
|
|
(0.14)
|
|
|
|
diluted
|
|
1.44
|
|
0.35
|
|
(1.24)
|
|
(0.19)
|
|
3.70
|
|
(0.88)
|
|
(0.14)
|
|
|
Comprehensive
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
32,766
|
|
8,022
|
|
(27,016)
|
|
(4,184)
|
|
83,558
|
|
(18,994)
|
|
(2,941)
|
|
|
Other comprehensive
income/(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustments
|
|
917
|
|
1,802
|
|
(5,794)
|
|
(897)
|
|
5,461
|
|
(3,992)
|
|
(618)
|
|
|
Total comprehensive
income/(loss)
|
|
33,683
|
|
9,824
|
|
(32,810)
|
|
(5,081)
|
|
89,019
|
|
(22,986)
|
|
(3,559)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses are included in the operating expenses as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(2,447)
|
|
(2,487)
|
|
(2,433)
|
|
(377)
|
|
(4,749)
|
|
(4,920)
|
|
(762)
|
|
Product development
expenses
|
|
(1,637)
|
|
(1,733)
|
|
(1,600)
|
|
(248)
|
|
(1,536)
|
|
(3,333)
|
|
(516)
|
|
General and
administrative expenses
|
|
(2,785)
|
|
(4,516)
|
|
(5,222)
|
|
(809)
|
|
(6,785)
|
|
(9,738)
|
|
(1,508)
|
|
CHINA
ONLINE EDUCATION GROUP
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
(In thousands
except for number of shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
|
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(239,894)
|
|
(318,944)
|
|
(315,832)
|
|
(48,916)
|
|
(468,281)
|
|
(634,776)
|
|
(98,314)
|
|
Less: Share-based
compensation
expenses
|
|
(2,447)
|
|
(2,487)
|
|
(2,433)
|
|
(377)
|
|
(4,749)
|
|
(4,920)
|
|
(762)
|
|
Non-GAAP sales and
marketing
expenses
|
|
(237,447)
|
|
(316,457)
|
|
(313,399)
|
|
(48,539)
|
|
(463,532)
|
|
(629,856)
|
|
(97,552)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
expenses
|
|
(38,616)
|
|
(57,726)
|
|
(65,029)
|
|
(10,072)
|
|
(74,483)
|
|
(122,755)
|
|
(19,012)
|
|
Less: Share-based
compensation
expenses
|
|
(1,637)
|
|
(1,733)
|
|
(1,600)
|
|
(248)
|
|
(1,536)
|
|
(3,333)
|
|
(516)
|
|
Non-GAAP product
development
expenses
|
|
(36,979)
|
|
(55,993)
|
|
(63,429)
|
|
(9,824)
|
|
(72,947)
|
|
(119,422)
|
|
(18,496)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
(53,902)
|
|
(69,208)
|
|
(80,172)
|
|
(12,417)
|
|
(104,591)
|
|
(149,380)
|
|
(23,136)
|
|
Less: Share-based
compensation
expenses
|
|
(2,785)
|
|
(4,516)
|
|
(5,222)
|
|
(809)
|
|
(6,785)
|
|
(9,738)
|
|
(1,508)
|
|
Non-GAAP general and
administrative
expenses
|
|
(51,117)
|
|
(64,692)
|
|
(74,950)
|
|
(11,608)
|
|
(97,806)
|
|
(139,642)
|
|
(21,628)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
(332,412)
|
|
(445,878)
|
|
(461,033)
|
|
(71,405)
|
|
(647,355)
|
|
(906,911)
|
|
(140,462)
|
|
Less: Share-based
compensation
expenses
|
|
(6,869)
|
|
(8,736)
|
|
(9,255)
|
|
(1,434)
|
|
(13,070)
|
|
(17,991)
|
|
(2,786)
|
|
Non-GAAP operating
expenses
|
|
(325,543)
|
|
(437,142)
|
|
(451,778)
|
|
(69,971)
|
|
(634,285)
|
|
(888,920)
|
|
(137,676)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
operations
|
|
27,127
|
|
5,907
|
|
(33,800)
|
|
(5,235)
|
|
71,998
|
|
(27,893)
|
|
(4,319)
|
|
Less: Share-based
compensation
expenses
|
|
(6,869)
|
|
(8,736)
|
|
(9,255)
|
|
(1,434)
|
|
(13,070)
|
|
(17,991)
|
|
(2,786)
|
|
Non-GAAP
income/(loss) from
operations
|
|
33,996
|
|
14,643
|
|
(24,545)
|
|
(3,801)
|
|
85,068
|
|
(9,902)
|
|
(1,533)
|
|
CHINA ONLINE
EDUCATION GROUP
|
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
|
(In
thousands except for number of shares and per share
data)
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the six months
ended
|
|
|
|
|
Jun.
30,
|
|
Mar.
31,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
Jun.
30,
|
|
|
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
(1,759)
|
|
(6,097)
|
|
(2,907)
|
|
(450)
|
|
(3,206)
|
|
(9,004)
|
|
(1,395)
|
|
|
Less: Tax impact of
Share-based
compensation expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Non-GAAP income tax
expenses
|
|
(1,759)
|
|
(6,097)
|
|
(2,907)
|
|
(450)
|
|
(3,206)
|
|
(9,004)
|
|
(1,395)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss),
all attributable to the
Company's ordinary shareholders
|
|
32,766
|
|
8,022
|
|
(27,016)
|
|
(4,184)
|
|
83,558
|
|
(18,994)
|
|
(2,941)
|
|
|
Add back: Share-based
compensation
expenses
|
|
6,869
|
|
8,736
|
|
9,255
|
|
1,434
|
|
13,070
|
|
17,991
|
|
2,786
|
|
|
Non-GAAP net
income/(loss), all
attributable to the Company's ordinary
shareholders
|
|
39,635
|
|
16,758
|
|
(17,761)
|
|
(2,750)
|
|
96,628
|
|
(1,003)
|
|
(155)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary
shares used in computing basic
earnings/(loss) per share
|
|
317,793,905
|
|
322,796,828
|
|
326,390,311
|
|
326,390,311
|
|
315,495,702
|
|
324,603,496
|
|
324,603,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary
shares used in computing diluted
earnings/(loss) per share
|
|
340,457,526
|
|
342,150,096
|
|
326,390,311
|
|
326,390,311
|
|
338,680,304
|
|
324,603,496
|
|
324,603,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
earnings/(loss) per share attributable to
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic
|
0.12
|
|
0.05
|
|
(0.05)
|
|
(0.01)
|
|
0.31
|
|
(0.00)
|
|
(0.00)
|
|
|
|
diluted
|
0.12
|
|
0.05
|
|
(0.05)
|
|
(0.01)
|
|
0.29
|
|
(0.00)
|
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
earnings/(loss) per ADS attributable to
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic
|
1.87
|
|
0.78
|
|
(0.82)
|
|
(0.13)
|
|
4.59
|
|
(0.05)
|
|
(0.01)
|
|
|
|
diluted
|
1.75
|
|
0.73
|
|
(0.82)
|
|
(0.13)
|
|
4.28
|
|
(0.05)
|
|
(0.01)
|
|
|
View original
content:https://www.prnewswire.com/news-releases/china-online-education-group-announces-second-quarter-2021-results-301386455.html
SOURCE China Online Education Group