Q2 net revenues decreased by
11.8% year-over-year
Q2 New student enrollments[1] increased
by 39.4% year-over-year
Q2 net income reached RMB114.6
million
BEIJING, Aug. 18,
2022 /PRNewswire/ -- Sunlands Technology
Group (NYSE: STG) ("Sunlands" or the "Company"), a leader in
China's online post-secondary and
professional education, today announced its unaudited
financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Financial and
Operational Snapshots
- Net revenues were RMB555.0
million (US$82.9 million),
representing an 11.8% decrease year-over-year.
- Gross billings (non-GAAP) were RMB369.8
million (US$55.2 million),
representing a 14.1% decrease year-over-year.
- Gross profit was RMB463.8 million
(US$69.2 million), representing a
12.9% decrease year-over-year.
- Net income was RMB114.6 million
(US$17.1 million), representing a
418.9% increase year-over-year.
- Net income margin, defined as net income as a percentage of net
revenues, increased to 20.6% from 3.5% in the second quarter of
2021.
- New student enrollments were 120,763, representing a 39.4%
increase year-over-year.
- As of June 30, 2022, the
Company's deferred revenue balance was RMB1,998.1 million (US$298.3 million).
|
[1] New
student enrollments for a given period refers to the total number
of orders placed by students that newly enroll in at least one
course during that period, including those students that enroll and
then terminate their enrollment with us, excluding orders of our
low-price courses. (In June 2019, we introduced low-price courses,
including "mini courses" and "RMB1 courses," to strengthen our
competitiveness and improve customer experience. We offer such
low-price courses mainly in the formats of recorded videos or short
live streaming.)
|
"Amid the pandemic's resurgence and macroeconomic weakness in
the second quarter, we achieved RMB114.6
million of net income, representing a fourfold increase
year-over-year. This was primarily driven by our consistent
emphasis on operating efficiency and solid execution of our
business strategies, as we remained steadfast while navigating the
Company through external uncertainties," said Mr. Tongbo Liu, Chief Executive Officer of
Sunlands.
"We were also pleased to see our continued efforts to optimize
our product mix and expand our course portfolio were rewarded with
improving operational results, reflected in a 39.4% year-over-year
increase in our new student enrollments and a reduced
year-over-year decrease in gross billings. We accomplished this by
acquiring students from a wider range of age groups with higher
sales efficiency, as we cut down our sales and marketing expenses
by 34.8% year-over-year. These results highlight our organizational
resilience and reinforce our confidence in our strategy to achieve
balanced growth and profitability."
"In June, we declared a special cash dividend to share our
success with shareholders following four consecutive quarters of
profitability. Going forward, we will strive to create additional
shareholder value by continuously improving our profitability and
cash flow. At the same time, we remain focused on developing
diverse skill and interest courses and enhancing our teaching and
service quality to attract new students, with the target of
bringing life-changing and fulfilling learning experiences to our
students," concluded Mr. Liu.
Ms. Selena Lu Lv, Chief Financial Officer of Sunlands,
commented, "Our second quarter results were in line with our
expectations, with sustained bottom-line strength despite the 11.8%
year-over-year decrease in net revenues, as we strived for healthy
and sustainable growth. During the quarter, we continued executing
various initiatives to build a highly efficient and lean
organization while optimizing our expense management, leading to a
32.4% year-over-year decrease in our operating expenses. Our cost
efficiency improvements resulted in notable net income growth, from
RMB22.1 million for the second
quarter of 2021 to RMB114.6 million
for this quarter. Going forward, we are optimistic that our
continued efforts to broaden our online course offerings,
streamline our cost structure, and dedicate ourselves to providing
enhanced services to our students will ultimately enable us to
realize long-term growth."
Financial Results for the second
quarter of 2022
Net Revenues
In the second quarter of 2022, net revenues decreased by 11.8%
to RMB555.0 million (US$82.9 million) from RMB629.5 million in the second quarter of 2021.
The decrease was mainly driven by the decline in gross
billings.
Cost of Revenues
Cost of revenues decreased by 6.2% to RMB91.2 million (US$13.6
million) in the second quarter of 2022 from RMB97.3 million in the second quarter of 2021.
The decrease was primarily due to the decline in employee
compensation expenses related to the cost of revenues.
Gross Profit
Gross profit decreased by 12.9% to RMB463.8 million (US$69.2
million) in the second quarter of 2022 from RMB532.2 million in the second quarter of
2021.
Operating Expenses
In the second quarter of 2022, operating expenses were
RMB351.2 million (US$52.4 million), representing a 32.4% decrease
from RMB519.6 million in the second
quarter of 2021.
Sales and marketing expenses decreased by 34.8% to RMB293.0 million (US$43.7
million) in the second quarter of 2022 from RMB449.1 million in the second quarter of 2021.
The decrease was mainly due to: (i) lower spending on branding and
marketing activities; and (ii) declined compensation expenses
related to our sales and marketing personnel.
General and administrative expenses decreased by 9.7% to
RMB46.6 million (US$7.0 million) in the second quarter of 2022
from RMB51.6 million in the second
quarter of 2021. The decrease was mainly due to declined
compensation expenses related to general and administrative
personnel.
Product development expenses decreased by 38.3% to RMB11.6 million (US$1.7
million) in the second quarter of 2022 from RMB18.8 million in the second quarter of 2021.
Product development expenses were mainly comprised of compensation
expenses.
Other Income
Other income decreased by 41.8% to RMB4.8
million (US$0.7 million) in
the second quarter of 2022 from RMB8.2
million in the second quarter of 2021.
Net Income
Net income for the second quarter of 2022 was RMB114.6 million (US$17.1
million), compared with RMB22.1
million in the second quarter of 2021.
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB16.89 (US$2.52)
in the second quarter of 2022.
Cash, Cash Equivalents and Short-term Investments
As of June 30, 2022, the Company
had RMB727.5 million (US$108.6 million) of cash and cash equivalents
and RMB138.7 million
(US$20.7 million) of short-term
investments, compared with RMB676.7
million of cash, cash equivalents and restricted cash and
RMB184.2 million of short-term
investments as of December 31,
2021.
Deferred Revenue
As of June 30, 2022, the Company
had a deferred revenue balance of RMB1,998.1
million (US$298.3 million),
compared with RMB2,348.2 million as
of December 31, 2021.
Capital Expenditures
Capital expenditures were incurred primarily in connection with
information technology infrastructure equipment and leasehold
improvements necessary to support the Company's operations. Capital
expenditures were RMB0.3 million
(US$0.1 million) in the second
quarter of 2022, compared with RMB7.8
million in the second quarter of 2021.
Financial Results for the First Six Months of
2022
Net Revenues
In the first six months of 2022, net revenues decreased by 11.7%
to RMB1,168.3 million (US$174.4 million) from RMB1,323.8 million in the first six months of
2021.
Cost of Revenues
Cost of revenues decreased by 7.7% to RMB188.0 million (US$28.1
million) in the first six months of 2022 from RMB203.7 million in the first six months of
2021.
Gross Profit
Gross profit decreased by 12.5% to RMB980.3 million (US$146.4
million) from RMB1,120.1
million in the first six months of 2021.
Operating Expenses
In the first six months of 2022, operating expenses were
RMB697.0 million (US$104.1 million), representing a 41.2% decrease
from RMB1,186.2 million in the first
six months of 2021.
Sales and marketing expenses decreased by 44.3% to RMB588.0 million (US$87.8
million) in the first six months of 2022 from RMB1,055.6 million in the first six months of
2021.
General and administrative expenses decreased by 9.4% to
RMB85.1 million (US$12.7 million) in the first six months of 2022
from RMB93.9 million in the first six
months of 2021.
Product development expenses decreased by 34.8% to RMB23.9 million (US$3.6
million) in the first six months of 2022 from RMB36.7 million in the first six months of
2021.
Other Income
Other income for the first six months of 2022 was RMB14.3 million (US$2.1
million), compared with RMB29.4
million in the first six months of 2021. The decrease was
primarily because value-added tax exemption offered by the relevant
authorities as part of the national COVID-19 relief effort came to
an end in April 2021.
Net Income
Net income for the first six months of 2022 was RMB294.0 million (US$43.9
million), compared with net loss of RMB31.2 million in the first six months of
2021.
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB43.95 (US$6.56)
in the first six months of 2022, compared with net loss per share
of RMB4.48 in the first six months of
2021.
Capital Expenditures
Capital expenditures were incurred primarily in connection with
IT infrastructure equipment and leasehold improvements necessary to
support the Company's operations. Capital expenditures
were RMB1.2 million (US$0.2
million) in the first six months of 2022, compared with
RMB9.5 million in the first six
months of 2021.
Outlook
For the third quarter of 2022, Sunlands currently expects net
revenues to be between RMB520 million
to RMB540 million, which would
represent a decrease of 9.3% to 12.6% year-over-year.
The above outlook is based on the current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions and customer demand, which are all subject
to substantial uncertainty.
Exchange Rate
The Company's business is primarily conducted in China and all revenues are denominated in
Renminbi ("RMB"). This announcement contains currency conversions
of RMB amounts into U.S. dollars ("US$") solely for the convenience
of the reader. Unless otherwise noted, all translations from RMB to
US$ are made at a rate of RMB6.6981
to US$1.00, the effective noon buying
rate for June 30, 2022 as set forth
in the H.10 statistical release of the Federal Reserve Board. No
representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate on
June 30, 2022, or at any other
rate.
Conference Call and Webcast
Sunlands' management team will host a conference call
at 7:30 AM U.S. Eastern Time, (7:30 PM Beijing/Hong
Kong time) on August 18, 2022, following the
quarterly results announcement.
The dial-in details for the live conference call are:
|
International:
|
+1-412-902-4272
|
|
US toll
free:
|
+1-888-346-8982
|
|
Mainland China toll
free:
|
400-120-1203
|
|
Hong Kong toll
free:
|
800-905-945
|
|
Hong Kong:
|
+852-3018-4992
|
Please dial in 10 minutes before the call is scheduled to begin.
When prompted, ask to be connected to the call for "Sunlands
Technology Group." Participants will be required to state their
name and company upon entering the call.
A live webcast and archive of the conference call will be
available on the Investor Relations section of Sunlands' website at
http://www.sunlands.investorroom.com/.
A replay of the conference call will be available 1 hour after
the end of the conference call until August
25, 2022, by dialing the following telephone numbers:
|
International:
|
+1-412-317-0088
|
|
US toll
free:
|
+1-877-344-7529
|
|
Replay access
code:
|
8806614
|
About Sunlands
Sunlands Technology Group (NYSE: STG) ("Sunlands" or the
"Company"), formerly known as Sunlands Online Education Group, is
the leader in China's online
post-secondary and professional education. With a one to many, live
streaming platform, Sunlands offers various degree and
diploma-oriented post-secondary courses as well as online
professional courses and educational content, to help students
prepare for professional certification exams and attain
professional skills. Students can access its services either
through PC or mobile applications. The Company's online platform
cultivates a personalized, interactive learning environment by
featuring a virtual learning community and a vast library of
educational content offerings that adapt to the learning habits of
its students. Sunlands offers a unique approach to education
research and development that organizes subject content into
Learning Outcome Trees, the Company's proprietary knowledge
management system. Sunlands has a deep understanding of the
educational needs of its prospective students and offers solutions
that help them achieve their goals.
About Non-GAAP Financial Measures
We use gross billings, EBITDA, non-GAAP operating
cost and expense, non-GAAP loss/income from
operations and Non-GAAP net loss/income per share, each a
non-GAAP financial measure, in evaluating our operating results and
for financial and operational decision-making purposes.
We define gross billings for a specific period as the total
amount of cash received for the sale of course packages, net of the
total amount of refunds paid in such period. Our management uses
gross billings as a performance measurement because we generally
bill our students for the entire course tuition at the time of sale
of our course packages and recognize revenue proportionally over a
period. EBITDA is defined as net loss/income excluding depreciation
and amortization, interest expense, interest income, and income tax
expenses. We believe that gross billings and EBITDA provide
valuable insight into the sales of our course packages and the
performance of our business.
These non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, their most directly
comparable financial measure prepared in accordance with GAAP. A
reconciliation of the historical non-GAAP financial measures to
their respective most directly comparable GAAP measure has been
provided in the tables included below. Investors are encouraged to
review the reconciliation of the historical non-GAAP financial
measures to their respective most directly comparable GAAP
financial measures. As gross billings, EBITDA, operating cost and
expenses excluding share-based compensation expenses, general and
administrative expenses excluding share-based compensation
expenses, sales and marketing expenses excluding share-based
compensation expenses, product development expenses excluding
share-based compensation expenses, non-GAAP net loss/income
exclude share-based compensation expenses, and basic and
diluted net loss/income per share excluding share-based
compensation expenses have material limitations as an
analytical metric and may not be calculated in the same manner by
all companies, it may not be comparable to other similarly titled
measures used by other companies. In light of the foregoing
limitations, you should not consider gross billings and EBITDA as a
substitute for, or superior to, their respective most directly
comparable financial measures prepared in accordance with GAAP. We
encourage investors and others to review our financial information
in its entirety and not rely on a single financial measure.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. Sunlands may also
make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including statements about Sunlands'
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: Sunlands' goals and strategies; its expectations
regarding demand for and market acceptance of its brand and
services; its ability to retain and increase student enrollments;
its ability to offer new courses and educational content; its
ability to improve teaching quality and students' learning results;
its ability to improve sales and marketing efficiency and
effectiveness; its ability to engage, train and retain new faculty
members; its future business development, results of operations and
financial condition; its ability to maintain and improve technology
infrastructure necessary to operate its business; competition in
the online education industry in China; relevant government policies and
regulations relating to Sunlands' corporate structure, business and
industry; and general economic and business condition in
China Further information
regarding these and other risks, uncertainties or factors is
included in the Sunlands' filings with the U.S. Securities and
Exchange Commission. All information provided in this press release
is current as of the date of the press release, and Sunlands does
not undertake any obligation to update such information, except as
required under applicable law.
For investor and media enquiries, please contact:
Sunlands Technology Group
Investor Relations
Email: sl-ir@sunlands.com
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
Email: sunlands@tpg-ir.com
Yang Song
Tel: +86-10-6508-0677
Email: sunlands@tpg-ir.com
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
As of December
31,
|
|
As of June
30,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
626,715
|
|
727,520
|
|
108,616
|
|
Restricted cash
|
|
50,008
|
|
-
|
|
-
|
|
Short-term
investments
|
|
184,159
|
|
138,652
|
|
20,700
|
|
Prepaid expenses and other
current assets
|
|
176,349
|
|
116,301
|
|
17,363
|
|
Deferred costs,
current
|
|
89,353
|
|
63,568
|
|
9,490
|
|
Total current
assets
|
|
1,126,584
|
|
1,046,041
|
|
156,169
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
857,648
|
|
839,435
|
|
125,324
|
|
Intangible assets,
net
|
|
2,761
|
|
2,201
|
|
329
|
|
Right-of-use
assets
|
|
362,335
|
|
350,254
|
|
52,292
|
|
Deferred costs,
non-current
|
|
109,020
|
|
91,487
|
|
13,659
|
|
Long-term
investments
|
|
54,844
|
|
53,299
|
|
7,957
|
|
Deferred tax
assets
|
|
39,265
|
|
33,966
|
|
5,071
|
|
Other non-current
assets
|
|
40,163
|
|
43,898
|
|
6,554
|
|
Total non-current
assets
|
|
1,466,036
|
|
1,414,540
|
|
211,186
|
|
TOTAL ASSETS
|
|
2,592,620
|
|
2,460,581
|
|
367,355
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accrued expenses and
other current liabilities (including accrued expenses
|
|
|
|
|
|
|
|
and other current
liabilities of the consolidated VIEs without recourse to
|
|
|
|
|
|
|
|
Sunlands Technology Group of
RMB197,467 and RMB169,818 as of
|
|
|
|
|
|
|
|
December 31, 2021 and June
30, 2022, respectively)
|
|
586,043
|
|
558,022
|
|
83,312
|
|
Deferred revenue,
current (including deferred revenue, current of the consolidated
VIEs
|
|
|
|
|
|
|
|
without recourse to Sunlands
Technology Group of RMB295,958 and
|
|
|
|
|
|
|
|
RMB 323,593 as of December
31, 2021 and June 30, 2022, respectively)
|
|
1,266,948
|
|
1,161,662
|
|
173,432
|
|
Lease liabilities,
current portion (including lease liabilities, current portion of
the
|
|
|
|
|
|
|
|
consolidated VIEs without recourse to Sunlands Technology Group of
RMB8,366
|
|
|
|
|
|
|
|
and RMB 12,413 as of
December 31, 2021 and June 30, 2022, respectively)
|
|
14,310
|
|
19,239
|
|
2,872
|
|
Long-term debt,
current portion (including long-term debt, current portion of
the
|
|
|
|
|
|
|
|
consolidated VIEs without recourse to Sunlands Technology Group of
nil and nil
|
|
|
|
|
|
|
|
as of December 31, 2021 and
June 30, 2022, respectively)
|
|
38,654
|
|
38,654
|
|
5,771
|
|
Total current
liabilities
|
|
1,905,955
|
|
1,777,577
|
|
265,387
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS-continued
|
|
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of
June 30,
|
|
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Deferred revenue,
non-current (including deferred revenue, non-current
|
|
|
|
|
|
|
|
|
of the consolidated
VIEs without recourse to Sunlands Technology Group of
|
|
|
|
|
|
|
|
|
RMB257,071 and RMB
257,960 as of December 31, 2021 and June 30, 2022,
|
|
|
|
|
|
|
|
|
respectively)
|
|
1,081,231
|
|
836,400
|
|
124,871
|
|
|
Lease liabilities,
non-current portion (including lease liabilities, non-current
portion
|
|
|
|
|
|
|
|
|
of the consolidated
VIEs without recourse to Sunlands Technology Group of
|
|
|
|
|
|
|
|
|
RMB318,598 and RMB
322,930 as of December 31, 2021 and June 30, 2022,
|
|
|
|
|
|
|
|
|
respectively)
|
|
404,133
|
|
405,037
|
|
60,470
|
|
|
Deferred tax
liabilities (including deferred tax liabilities of the
consolidated
|
|
|
|
|
|
|
|
|
VIEs without recourse
to Sunlands Technology Group of RMB2,312 and RMB2,108
|
|
|
|
|
|
|
|
|
as of December 31,
2021 and June 30, 2022, respectively)
|
|
21,782
|
|
11,198
|
|
1,672
|
|
|
Other non-current
liabilities (including other non-current liabilities of the
consolidated
|
|
|
|
|
|
|
|
|
VIEs without recourse
to Sunlands Technology Group of RMB963 and RMB963
|
|
|
|
|
|
|
|
|
as of December 31,
2021 and June 30, 2022, respectively)
|
|
11,698
|
|
7,770
|
|
1,160
|
|
|
Long-term debt,
non-current portion (including long-term debt, non-current portion
of the
|
|
|
|
|
|
|
|
|
consolidated VIEs
without recourse to Sunlands Technology Group of nil and
nil
|
|
|
|
|
|
|
|
|
as of December 31,
2021 and June 30, 2022, respectively)
|
|
181,973
|
|
162,646
|
|
24,282
|
|
|
Total non-current
liabilities
|
|
1,700,817
|
|
1,423,051
|
|
212,455
|
|
|
TOTAL
LIABILITIES
|
|
3,606,772
|
|
3,200,628
|
|
477,842
|
|
|
|
|
|
SHAREHOLDERS'
DEFICIT
|
|
|
|
|
|
|
|
|
Class A ordinary
shares (par value of US$0.00005, 796,062,195 shares
|
|
|
|
|
|
|
|
|
authorized; 2,085,939
and 2,460,939 shares issued as of December 31, 2021
|
|
|
|
|
|
|
|
|
and June 30, 2022,
respectively; 1,839,553 and 2,175,262 shares
|
|
|
|
|
|
|
|
|
outstanding as of
December 31, 2021 and June 30, 2022, respectively)
|
|
1
|
|
1
|
|
-
|
|
|
Class B ordinary
shares (par value of US$0.00005, 826,389 shares
|
|
|
|
|
|
|
|
|
authorized; 826,389
and 826,389 shares issued and outstanding
|
|
|
|
|
|
|
|
|
as of December 31,
2021 and June 30, 2022, respectively)
|
|
-
|
|
-
|
|
-
|
|
|
Class C ordinary
shares (par value of US$0.00005, 203,111,416 shares
|
|
|
|
|
|
|
|
|
authorized; 4,002,930
and 4,002,930 shares issued and outstanding
|
|
|
|
|
|
|
|
|
as of December 31,
2021 and June 30, 2022, respectively)
|
|
1
|
|
1
|
|
-
|
|
|
Treasury
stock
|
|
-
|
|
-
|
|
-
|
|
|
Accumulated
deficit
|
|
(3,456,073)
|
|
(3,160,823)
|
|
(471,898)
|
|
|
Additional
paid-in capital
|
|
2,364,313
|
|
2,314,820
|
|
345,594
|
|
|
Accumulated
other comprehensive income
|
|
82,532
|
|
111,720
|
|
16,679
|
|
|
Total Sunlands
Technology Group shareholders' deficit
|
|
(1,009,226)
|
|
(734,281)
|
|
(109,625)
|
|
|
Non-controlling
interest
|
|
(4,926)
|
|
(5,766)
|
|
(862)
|
|
|
|
TOTAL SHAREHOLDERS'
DEFICIT
|
|
(1,014,152)
|
|
(740,047)
|
|
(110,487)
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
2,592,620
|
|
2,460,581
|
|
367,355
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net revenues
|
|
629,508
|
|
554,991
|
|
82,858
|
|
|
Cost of
revenues
|
|
(97,286)
|
|
(91,237)
|
|
(13,621)
|
|
|
Gross profit
|
|
532,222
|
|
463,754
|
|
69,237
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(449,131)
|
|
(292,978)
|
|
(43,740)
|
|
|
Product development
expenses
|
|
(18,773)
|
|
(11,578)
|
|
(1,729)
|
|
|
General and administrative
expenses
|
|
(51,649)
|
|
(46,635)
|
|
(6,962)
|
|
|
Total operating
expenses
|
|
(519,553)
|
|
(351,191)
|
|
(52,431)
|
|
|
Income from
operations
|
|
12,669
|
|
112,563
|
|
16,806
|
|
|
Interest
income
|
|
4,152
|
|
3,842
|
|
574
|
|
|
Interest
expense
|
|
(2,430)
|
|
(2,552)
|
|
(381)
|
|
|
Other income,
net
|
|
8,165
|
|
4,750
|
|
709
|
|
|
Income
before income tax expenses
|
|
22,556
|
|
118,603
|
|
17,708
|
|
|
Income tax
expenses
|
|
(201)
|
|
(3,652)
|
|
(545)
|
|
|
Loss from equity method
investments
|
|
(277)
|
|
(391)
|
|
(58)
|
|
|
Net income
|
|
22,078
|
|
114,560
|
|
17,105
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to non-controlling interest
|
|
(730)
|
|
(52)
|
|
(8)
|
|
|
Net income attributable
to Sunlands Technology Group
|
|
22,808
|
|
114,612
|
|
17,113
|
|
|
Net income per share
attributable to ordinary shareholders of
|
|
|
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
3.39
|
|
16.89
|
|
2.52
|
|
|
|
Weighted average shares
used in calculating net income
|
|
|
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
6,729,197
|
|
6,784,685
|
|
6,784,685
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net income
|
|
22,078
|
|
114,560
|
|
17,105
|
|
|
Other
comprehensive (loss)/income, net
of tax effect of nil:
|
|
|
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustments
|
|
(9,158)
|
|
31,807
|
|
4,749
|
|
|
Total comprehensive
income
|
|
12,920
|
|
146,367
|
|
21,854
|
|
|
Less: comprehensive
loss attributable to non-controlling
|
|
|
|
|
|
|
|
|
interest
|
|
(730)
|
|
(52)
|
|
(8)
|
|
|
Comprehensive income
attributable to Sunlands Technology
|
|
|
|
|
|
|
|
|
Group
|
|
13,650
|
|
146,419
|
|
21,862
|
|
|
SUNLANDS TECHNOLOGY GROUP
RECONCILIATION
OF GAAP
AND NON-GAAP RESULTS
(Amounts in
thousands)
|
|
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
|
Net revenues
|
|
629,508
|
|
554,991
|
|
|
Less: other
revenues
|
|
(16,289)
|
|
(31,088)
|
|
|
Add: tax and
surcharges
|
|
40,705
|
|
17,209
|
|
|
Add: ending deferred
revenue
|
|
2,690,221
|
|
1,998,062
|
|
|
Add: ending refund
liability
|
|
220,745
|
|
199,028
|
|
|
Less: beginning
deferred revenue
|
|
(2,902,451)
|
|
(2,170,948)
|
|
|
Less: beginning refund
liability
|
|
(232,207)
|
|
(197,494)
|
|
|
Gross billings
(non-GAAP)
|
|
430,232
|
|
369,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
22,078
|
|
114,560
|
|
|
Add: income tax
expenses
|
|
201
|
|
3,652
|
|
|
|
depreciation and
amortization
|
|
10,225
|
|
9,274
|
|
|
interest
expense
|
|
2,430
|
|
2,552
|
|
|
Less: interest
income
|
|
(4,152)
|
|
(3,842)
|
|
|
EBITDA
(non-GAAP)
|
|
30,782
|
|
126,196
|
|
|
SUNLANDS TECHNOLOGY GROUP
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
(Amounts in
thousands)
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
Cost of
revenues
|
|
(97,286)
|
|
(91,237)
|
|
Less: Share-based
compensation expenses in cost of revenues
|
|
(57)
|
|
-
|
|
Non-GAAP cost of
revenues
|
|
(97,229)
|
|
(91,237)
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(449,131)
|
|
(292,978)
|
|
Less: Share-based
compensation expenses in sales and marketing expenses
|
|
(96)
|
|
(4,088)
|
|
Non-GAAP sales and
marketing expenses
|
|
(449,035)
|
|
(288,890)
|
|
|
|
|
|
|
General and
administrative expenses
|
|
(51,649)
|
|
(46,635)
|
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
|
(162)
|
|
(2,725)
|
|
Non-GAAP general and
administrative expenses
|
|
(51,487)
|
|
(43,910)
|
|
|
|
|
|
|
Operating costs and
expense
|
|
(616,839)
|
|
(442,428)
|
|
Less: Share-based
compensation expenses
|
|
(315)
|
|
(6,813)
|
|
Non-GAAP operating
costs and expense
|
|
(616,524)
|
|
(435,615)
|
|
|
|
|
|
|
Income from
operations
|
|
12,669
|
|
112,563
|
|
Less: Share-based
compensation expenses
|
|
(315)
|
|
(6,813)
|
|
Non-GAAP income from
operations
|
|
12,984
|
|
119,376
|
|
|
|
|
|
|
Net income attributable
to Sunlands Technology Group
|
|
22,808
|
|
114,612
|
|
Less: Share-based
compensation expenses
|
|
(315)
|
|
(6,813)
|
|
Non-GAAP net income
attributable to Sunlands Technology Group
|
|
23,123
|
|
121,425
|
|
|
|
|
|
|
Net income per share
attributable to ordinary shareholders of
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
Basic and diluted
|
|
3.39
|
|
16.89
|
|
Non-GAAP net income per
share attributable to ordinary shareholders of
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
Basic and diluted
|
|
3.44
|
|
17.90
|
|
|
|
|
|
|
Weighted average shares
used in calculating net income
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
Basic and diluted
|
|
6,729,197
|
|
6,784,685
|
|
Weighted average shares
used in calculating Non-GAAP net income
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
Basic and diluted
|
|
6,729,197
|
|
6,784,685
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
For the
Six Months Ended June 30,
|
|
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net revenues
|
|
1,323,806
|
|
1,168,305
|
|
174,423
|
|
|
Cost of
revenues
|
|
(203,708)
|
|
(187,957)
|
|
(28,061)
|
|
|
Gross profit
|
|
1,120,098
|
|
980,348
|
|
146,362
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(1,055,560)
|
|
(587,975)
|
|
(87,782)
|
|
|
Product development
expenses
|
|
(36,689)
|
|
(23,933)
|
|
(3,573)
|
|
|
General and administrative
expenses
|
|
(93,947)
|
|
(85,095)
|
|
(12,704)
|
|
|
Total operating
expenses
|
|
(1,186,196)
|
|
(697,003)
|
|
(104,059)
|
|
|
(Loss)/income from
operations
|
|
(66,098)
|
|
283,345
|
|
42,303
|
|
|
Interest
income
|
|
10,013
|
|
7,008
|
|
1,046
|
|
|
Interest
expense
|
|
(4,987)
|
|
(5,277)
|
|
(788)
|
|
|
Other income,
net
|
|
29,448
|
|
14,342
|
|
2,141
|
|
|
Impairment loss on
long-term investments
|
|
-
|
|
(500)
|
|
(75)
|
|
|
(Loss)/income before
income tax expenses
|
|
(31,624)
|
|
298,918
|
|
44,627
|
|
|
Income tax
benefit/(expenses)
|
|
147
|
|
(4,343)
|
|
(648)
|
|
|
Income/(loss) from
equity method investments
|
|
276
|
|
(604)
|
|
(90)
|
|
|
Net
(loss)/income
|
|
(31,201)
|
|
293,971
|
|
43,889
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to non-controlling interest
|
|
(1,080)
|
|
(1,279)
|
|
(191)
|
|
|
Net (loss)/income
attributable to Sunlands Technology Group
|
|
(30,121)
|
|
295,250
|
|
44,080
|
|
|
Net (loss)/income per
share attributable to ordinary shareholders of
|
|
|
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
(4.48)
|
|
43.95
|
|
6.56
|
|
|
Weighted average shares
used in calculating net (loss)/income
|
|
|
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
6,729,197
|
|
6,717,836
|
|
6,717,836
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
(LOSS)/INCOME
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the
Six Months Ended June 30,
|
|
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net
(loss)/income
|
|
(31,201)
|
|
293,971
|
|
43,889
|
|
|
Other comprehensive
(loss)/income, net of tax effect of nil:
|
|
|
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustments
|
|
(6,736)
|
|
29,188
|
|
4,358
|
|
|
Total comprehensive
(loss)/income
|
|
(37,937)
|
|
323,159
|
|
48,247
|
|
|
Less: comprehensive
(loss)/income attributable to non-controlling
|
|
|
|
|
|
|
|
|
interest
|
|
(1,080)
|
|
(1,279)
|
|
(191)
|
|
|
Comprehensive
(loss)/income attributable to Sunlands Technology
|
|
|
|
|
|
|
|
|
Group
|
|
(36,857)
|
|
324,438
|
|
48,438
|
|
|
SUNLANDS TECHNOLOGY GROUP
RECONCILIATION
OF GAAP
AND NON-GAAP RESULTS
(Amounts in
thousands)
|
|
|
|
|
|
For the
Six Months Ended June 30,
|
|
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
|
Net revenues
|
|
1,323,806
|
|
1,168,305
|
|
|
Less: other
revenues
|
|
(31,711)
|
|
(57,995)
|
|
|
Add: tax and
surcharges
|
|
78,199
|
|
44,421
|
|
|
Add: ending deferred
revenue
|
|
2,690,221
|
|
1,998,062
|
|
|
Add: ending refund
liability
|
|
220,745
|
|
199,028
|
|
|
Less: beginning
deferred revenue
|
|
(3,024,443)
|
|
(2,348,179)
|
|
|
Less: beginning refund
liability
|
|
(232,859)
|
|
(243,236)
|
|
|
Gross billings
(non-GAAP)
|
|
1,023,958
|
|
760,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
|
(31,201)
|
|
293,971
|
|
|
Add: income tax
(benefit)/expenses
|
|
(147)
|
|
4,343
|
|
|
depreciation and
amortization
|
|
18,704
|
|
19,161
|
|
|
interest
expense
|
|
4,987
|
|
5,277
|
|
|
Less: interest
income
|
|
(10,013)
|
|
(7,008)
|
|
|
EBITDA
(non-GAAP)
|
|
(17,670)
|
|
315,744
|
|
|
SUNLANDS TECHNOLOGY GROUP
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
(Amounts in
thousands)
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
Cost of
revenues
|
|
(203,708)
|
|
(187,957)
|
|
Less: Share-based
compensation expenses in cost of revenues
|
|
(6)
|
|
(33)
|
|
Non-GAAP cost of
revenues
|
|
(203,702)
|
|
(187,924)
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(1,055,560)
|
|
(587,975)
|
|
Less: Share-based
compensation expenses in sales and marketing expenses
|
|
59
|
|
(4,166)
|
|
Non-GAAP sales and
marketing expenses
|
|
(1,055,619)
|
|
(583,809)
|
|
|
|
|
|
|
General and
administrative expenses
|
|
(93,947)
|
|
(85,095)
|
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
|
(257)
|
|
(2,982)
|
|
Non-GAAP general and
administrative expenses
|
|
(93,690)
|
|
(82,113)
|
|
|
|
|
|
|
Operating costs and
expense
|
|
(1,389,904)
|
|
(884,960)
|
|
Less: Share-based
compensation expenses
|
|
(204)
|
|
(7,181)
|
|
Non-GAAP operating
costs and expense
|
|
(1,389,700)
|
|
(877,779)
|
|
|
|
|
|
|
(Loss)/income from
operations
|
|
(66,098)
|
|
283,345
|
|
Less: Share-based
compensation expenses
|
|
(204)
|
|
(7,181)
|
|
Non-GAAP (loss)/income
from operations
|
|
(65,894)
|
|
290,526
|
|
|
|
|
|
|
Net (loss)/income
attributable to Sunlands Technology Group
|
|
(30,121)
|
|
295,250
|
|
Less: Share-based
compensation expenses
|
|
(204)
|
|
(7,181)
|
|
Non-GAAP net
(loss)/income attributable to Sunlands Technology Group
|
|
(29,917)
|
|
302,431
|
|
|
|
|
|
|
Net (loss)/income per
share attributable to ordinary shareholders of
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
Basic and diluted
|
|
(4.48)
|
|
43.95
|
|
Non-GAAP net
(loss)/income per share attributable to ordinary shareholders
of
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
Basic and diluted
|
|
(4.45)
|
|
45.02
|
|
|
|
|
|
|
Weighted average shares
used in calculating net (loss)/income
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
Basic and diluted
|
|
6,729,197
|
|
6,717,836
|
|
Weighted average shares
used in calculating Non-GAAP net (loss)/income
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
Basic and diluted
|
|
6,729,197
|
|
6,717,836
|
View original
content:https://www.prnewswire.com/news-releases/sunlands-technology-group-announces-unaudited-second-quarter-2022-financial-results-301608360.html
SOURCE Sunlands Technology Group