17 Education & Technology Group Inc. (NASDAQ: YQ) (“17EdTech”
or the “Company”), a leading education technology company in China,
today announced its unaudited financial results for the second
quarter of 2022.
Second Quarter 2022
Highlights1
- Net revenues were
RMB133.5 million (US$19.9 million), representing a year-over-year
decrease of 80.1% from RMB670.9 million in the second quarter of
2021, and 11.2% higher than the high end of the estimate provided
by the Company in June 2022.
- Gross margin was
52.2%, compared with 63.0% in the second quarter of 2021.
- Net loss was
RMB26.4 million (US$3.9 million), significantly decreasing from net
loss of RMB266.7 million in the second quarter of 2021.
- Net loss as a percentage of
net revenues was negative 19.8% in the second quarter of
2022, narrowing from negative 39.8% in the second quarter of
2021.
- Adjusted net
income2 (non-GAAP),
which excluded share-based compensation expenses of RMB30.1 million
(US$4.5 million), was RMB3.6 million (US$0.5 million), improving
from adjusted net loss (non-GAAP) of RMB218.2 million in the second
quarter of 2021.
- Adjusted net income (loss)
(non-GAAP) as a percentage of net revenues was 2.7% in the
second quarter of 2022, compared with negative 32.5% in the second
quarter of 2021.
First Half 2022 Highlights
- Net revenues were
RMB366.9 million (US$54.8 million), representing a year-over-year
decrease of 68.0% from RMB1,145.1 million in the first half of
2021.
- Gross margin was
57.6%, compared with 62.0% in the first half of 2021.
- Net loss was
RMB51.2 million (US$7.6 million), significantly decreasing from net
loss of RMB926.4 million in the first half of 2021.
- Net loss as a percentage of
net revenues was negative 14.0% in the first half of 2022,
narrowing from negative 80.9% in the first half of 2021.
- Adjusted net
income (non-GAAP), which excluded
share-based compensation expenses of RMB64.7 million (US$9.7
million), was RMB13.5 million (US$2.0 million), improving from
adjusted net loss (non-GAAP) of RMB807.1 million in the first half
of 2021.
- Adjusted net income (loss)
(non-GAAP) as a percentage of net revenues was 3.7% in the
first half of 2022, compared with negative 70.5% in the first half
of 2021.
_____________________1 For a reconciliation of
non-GAAP numbers, please see the table captioned “Reconciliations
of non-GAAP measures to the most comparable GAAP measures” at the
end of this press release. 2 Adjusted net income (loss) represents
net income (loss) excluding share-based compensation expenses.
Mr. Andy Liu, Founder, Chairman and Chief
Executive Officer of 17EdTech commented, “In the second quarter of
2022, our businesses continued to maintain a healthy and
sustainable development, laying a solid foundation for our future
growth. During the quarter, the Company proactively promoted
in-school teaching and learning software-as-a-service (“SaaS”)
business as well as explored off-campus personalized self-directed
learning products in compliance with applicable PRC laws and
regulations. We successfully delivered a precision teaching and
adaptive learning system based on intelligent homework covering the
whole Minhang district in Shanghai in the second quarter of 2022.
This learning system has been used regularly throughout the
teaching and learning process and has been well received by
teachers, schools and education authorities during the COVID-19
pandemic. This is a clear illustration of 17EdTech’s pioneering
capability in this area which assists to reduce the burdens of
students and schools and improved learning and teaching efficiency
required by the ‘Double Deduction’ Policy.”
Mr. Michael Du, Director and Chief Financial
Officer of 17EdTech commented, “We are pleased to report solid
financial results in the second quarter of 2022. We continued to
see progress in our in-school teaching and learning SaaS business,
which contributed increasing net revenues for the second quarter of
2022. Our net loss on a GAAP basis continued to narrow in the
second quarter of 2022 as compared with the same period in 2021,
and we have achieved consecutive net profitability on a non-GAAP
basis for the last three quarters as our operational efficiency
continued to improve.”
Second Quarter 2022 Unaudited Financial
Results
Net Revenues
Net revenues for the second quarter of 2022 were
RMB133.5 million (US$19.9 million), representing a year-over-year
decrease of 80.1% from RMB670.9 million in the second quarter of
2021, mainly due to the cessation of the Company's online K-12
tutoring services by the end of 2021 in order to be compliant with
relevant PRC regulations, which prohibit the provision of tutoring
services relating to academic subjects to K-12 students. Excluding
net revenue from online K-12 tutoring services, net revenues
increased significantly from RMB8.9 million to RMB133.5 million
during the same period. The Company's teaching and learning SaaS
offerings are contributing an increasing proportion of the
Company’s net revenues for the second quarter of 2022.
Cost of Revenues
Cost of revenues for the second quarter of 2022
was RMB63.8 million (US$9.5 million), representing a year-over-year
decrease of 74.3% from RMB248.0 million in the second quarter of
2021, which was largely in line with the decrease in net revenues
due to the cessation of the Company's online K-12 tutoring services
under the new regulatory and business environment.
Gross Profit and Gross
Margin
Gross profit for the second quarter of 2022 was
RMB69.7 million (US$10.4 million), representing a year-over-year
decrease of 83.5% from RMB422.9 million in the second quarter of
2021.
Gross margin for the second quarter of 2022 was
52.2%, compared with 63.0% in the second quarter of 2021.
Total Operating Expenses
The following table sets forth a breakdown of
operating expenses by amounts and percentages during the periods
indicated (in thousands, except for percentages):
|
For the three months ended June 30, |
|
2021 |
|
2022 |
|
Year- |
|
RMB |
% |
|
RMB |
USD |
% |
|
over-year |
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
306,731 |
45.7 |
% |
|
11,650 |
1,739 |
8.7 |
% |
|
-96.2 |
% |
Research and development expenses |
229,535 |
34.2 |
% |
|
35,709 |
5,331 |
26.7 |
% |
|
-84.4 |
% |
General and administrative expenses |
109,500 |
16.3 |
% |
|
56,441 |
8,426 |
42.3 |
% |
|
-48.5 |
% |
Impairment for property and equipment and right-of-use assets |
56,882 |
8.5 |
% |
|
— |
— |
— |
|
|
— |
|
Total operating expenses |
702,648 |
104.7 |
% |
|
103,800 |
15,496 |
77.7 |
% |
|
-85.2 |
% |
|
|
|
|
|
|
|
|
|
Total operating expenses for the second quarter
of 2022 were RMB103.8 million (US$15.5 million), including RMB30.1
million (US$4.5 million) of share-based compensation expenses,
representing a year-over-year decrease of 85.2% from RMB702.6
million in the second quarter of 2021.
Sales and marketing expenses for the second
quarter of 2022 were RMB11.7 million (US$1.7 million), including
RMB3.4 million (US$0.5 million) of share-based compensation
expenses, representing a year-over-year decrease of 96.2% from
RMB306.7 million in the second quarter of 2021. This was mainly due
to the decreases in promotional course expenses and advertising
expenditures as a result of the changes in regulatory environment,
as well as staff optimization in line with business adjustment.
Research and development expenses for the second
quarter of 2022 were RMB35.7 million (US$5.3 million), including
RMB7.2 million (US$1.1 million) of share-based compensation
expenses, representing a year-over-year decrease of 84.4% from
RMB229.5 million in the second quarter of 2021. The decrease was
primarily attributable to staff optimization in line with business
adjustment.
General and administrative expenses for the
second quarter of 2022 were RMB56.4 million (US$8.4 million),
including RMB19.5 million (US$2.9 million) of share-based
compensation expenses, representing a year-over-year decrease of
48.5% from RMB109.5 million in the second quarter of 2021. The
decrease was primarily due to staff optimization in line with
business adjustment.
Impairment for property and equipment and
right-of-use assets for the second quarter of 2022 were nil,
compared with RMB56.9 million in the second quarter of 2021. As a
result of the changes in regulatory environment in the online
education industry, combined with the Company’s financial
performance, the Company had performed an impairment assessment on
its long-term assets and recognized impairment losses in the second
quarter of 2021.
Loss from Operations
Loss from operations for the second quarter of
2022 was RMB34.1 million (US$5.1 million), compared with RMB279.8
million in the second quarter of 2021. Loss from operations as a
percentage of net revenues for the second quarter of 2022 was
negative 25.5%, improving from negative 41.7% in the second quarter
of 2021.
Net Loss
Net loss for the second quarter of 2022 was
RMB26.4 million (US$3.9 million), compared with net loss of
RMB266.7 million in the second quarter of 2021. Net loss as a
percentage of net revenues was negative 19.8% in the second quarter
of 2022, compared with negative 39.8% in the second quarter of
2021.
Adjusted Net Income (Loss)
(non-GAAP)
Adjusted net income (non-GAAP) for the second
quarter of 2022 was RMB3.6 million (US$0.5 million), compared with
adjusted net loss (non-GAAP) of RMB218.2 million in the second
quarter of 2021. Adjusted net income (loss) (non-GAAP) as a
percentage of net revenues was 2.7% in the second quarter of 2022,
improving from negative 32.5% in the second quarter of 2021.
Please refer to the table captioned
“Reconciliations of non-GAAP measures to the most comparable GAAP
measures” at the end of this press release for a reconciliation of
net loss under U.S. GAAP to adjusted net income (loss)
(non-GAAP).
Business Outlook
Based on our current estimates, total net
revenues for the third quarter of 2022 are expected to be between
RMB120 million and RMB140 million. The estimated total net revenues
for the third quarter of 2022 are derived entirely from the ongoing
businesses after the Company's business transformation and, as
mentioned above, do not include revenues from the legacy online
K-12 tutoring services. This estimated range represents a
significant increase year-over-year when compared with the
relatively small base of the net revenues generated from non-online
K-12 tutoring services for the third quarter of 2021.
The above forecast reflects 17EdTech's current
and preliminary view and is therefore subject to change. Please see
the section titled “Safe Harbor Statement” below for the factors
that could cause actual results to differ materially from those
contained in any forward-looking statement.
Conference Call Information
The Company will hold a conference call on
Tuesday, September 13, 2022 at 9:00 p.m. U.S. Eastern Time
(Wednesday, September 14, 2022 at 9:00 a.m. Beijing time) to
discuss the financial results for the second quarter of 2022.
Please note that all participants will need to
preregister for the conference call participation by navigating
to https://register.vevent.com/register/BIc4a6f95e1b7c49089e2e7337b4c7c270.
Upon registration, you will receive an email
containing participant dial-in numbers, and PIN number. To join the
conference call, please dial the number you receive, enter the PIN
number, and you will be joined to the conference call
instantly.
Additionally, a live and archived webcast of
this conference call will be available at
https://ir.17zuoye.com/.
Non-GAAP Financial Measures
17EdTech’s management uses adjusted net income
(loss) as a non-GAAP financial measure to gain an understanding of
17EdTech’s comparative operating performance and future
prospects.
Adjusted net income (loss) represents net loss
excluding share-based compensation expenses and such adjustment has
no impact on income tax.
Adjusted net income (loss) is used by 17EdTech’s
management in their financial and operating decision-making as a
non-GAAP financial measure, because management believes it reflects
17EdTech’s ongoing business and operating performance in a manner
that allows meaningful period-to-period comparisons. 17EdTech’s
management believes that such non-GAAP measure provides useful
information to investors and others in understanding and evaluating
17EdTech’s operating performance in the same manner as management
does, if they so choose. Specifically, 17EdTech believes the
non-GAAP measure provides useful information to both management and
investors by excluding certain charges that the Company believes
are not indicative of its core operating results.
The non-GAAP financial measure has limitations.
It does not include all items of income and expense that affect
17EdTech’s income from operations. Specifically, the non-GAAP
financial measure is not prepared in accordance with GAAP, may not
be comparable to non-GAAP financial measures used by other
companies and, with respect to the non-GAAP financial measure that
excludes certain items under GAAP, does not reflect any benefit
that such items may confer to 17EdTech. Management compensates for
these limitations by also considering 17EdTech’s financial results
as determined in accordance with GAAP. The presentation of this
additional information is not meant to be considered superior to,
in isolation from or as a substitute for results prepared in
accordance with US GAAP.
Exchange Rate Information
The Company’s business is primarily conducted in
China and all of the revenues are denominated in Renminbi (“RMB”).
However, periodic reports made to shareholders will include current
period amounts translated into U.S. dollars (“USD” or “US$”) using
the exchange rate as of balance sheet date, for the convenience of
the readers. Translations of balances in the consolidated balance
sheets and the related consolidated statements of operations,
comprehensive loss, change in shareholders’ deficit and cash flows
from RMB into USD as of and for the three months and the six months
ended June 30, 2022 are solely for the convenience of the readers
and were calculated at the rate of US$1.00=RMB6.6981 representing
the noon buying rate set forth in the H.10 statistical release of
the U.S. Federal Reserve Board on June 30, 2022. No representation
is made that the RMB amounts could have been, or could be,
converted, realized or settled into US$ at that rate on June 30,
2022, or at any other rate.
About 17 Education & Technology
Group Inc.
17 Education & Technology Group Inc. is a
leading education technology company in China, offering smart
in-school classroom solution that delivers data-driven teaching,
learning and assessment products to teachers, students and parents.
Leveraging its extensive knowledge and expertise obtained from
in-school business over the past decade, the Company provides
teaching and learning SaaS offerings to facilitate the digital
transformation and upgrade at Chinese schools, with a focus on
improving the efficiency and effectiveness of core teaching and
learning scenarios such as homework assignments and in-class
teaching. The Company also provides a personalized self-directed
learning product to Chinese families, which is not a tutoring
service. The product utilizes the Company’s technology and data
insights to provide personalized and targeted learning and exercise
content that is aimed at improving students’ learning
efficiency.
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 17EdTech’s beliefs and expectations, are
forward-looking statements. 17EdTech may also make written or oral
forward-looking statements in its periodic reports to 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: 17EdTech’s growth strategies; its future business
development, financial condition and results of operations; its
ability to continue to attract and retain users; its ability to
carry out its business and organization transformation, its ability
to implement and grow its new business initiatives; the trends in,
and size of, China’s online education market; competition in and
relevant government policies and regulations relating to China's
online education 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 17EdTech’s filings with the
SEC. All information provided in this press release is as of the
date of this press release, and 17EdTech does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please
contact:
17 Education & Technology Group
Inc. Ms Lara ZhaoInvestor Relations
ManagerE-mail: ir@17zuoye.com
|
17 EDUCATION & TECHNOLOGY GROUP INC. |
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands of RMB and USD, except for share and per ADS
data, or otherwise noted) |
|
|
As of December 31 |
|
As of June 30 |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
1,180,898 |
|
893,773 |
|
133,437 |
Accounts receivable |
- |
|
61,376 |
|
9,163 |
Prepaid expenses and other current assets |
161,826 |
|
130,329 |
|
19,458 |
Total current assets |
1,342,724 |
|
1,085,478 |
|
162,058 |
Non-current assets |
|
|
|
|
|
Property and equipment, net |
69,811 |
|
49,947 |
|
7,457 |
Right-of-use assets |
153,963 |
|
51,924 |
|
7,752 |
Other non-current assets |
13,923 |
|
9,615 |
|
1,435 |
TOTAL ASSETS |
1,580,421 |
|
1,196,964 |
|
178,702 |
LIABILITIES |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accrued expenses and other current liabilities (including
accrued |
|
|
|
|
|
expenses and other current liabilities of the consolidated
VIEs |
|
|
|
|
|
without recourse to the Group of RMB93,115 and RMB46,863 as of |
392,293 |
|
174,593 |
|
26,066 |
December 31, 2021 and June 30, 2022, respectively) |
|
|
|
|
|
Deferred revenue and customer advances, current (including |
|
|
|
|
|
deferred revenue and customer advances, current of the |
|
|
|
|
|
consolidated VIEs without recourse to the Group of RMB239,267 |
|
|
|
|
|
and RMB139,193 as of December 31, 2021 and June 30, 2022, |
243,878 |
|
141,805 |
|
21,171 |
respectively) |
|
|
|
|
|
Operating lease liabilities, current (including operating lease
liabilities, |
|
|
|
|
|
current of the consolidated VIEs without recourse to the Group
of |
|
|
|
|
|
RMB29,113 and RMB13,797 as of December 31, 2021 and |
46,885 |
|
25,042 |
|
3,739 |
June 30, 2022, respectively) |
|
|
|
|
|
Total current liabilities |
683,056 |
|
341,440 |
|
50,976 |
|
As of December 31, |
|
|
As of June 30, |
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Operating lease liabilities, non-current (including operating
lease |
|
|
|
|
|
|
|
|
liabilities, non-current of the consolidated VIEs without
recourse |
|
|
|
|
|
|
|
|
to the Group of RMB57,906 and RMB14,229 as of December 31, |
100,329 |
|
|
22,106 |
|
|
3,300 |
|
2021 and June 30, 2022, respectively) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
783,385 |
|
|
363,546 |
|
|
54,276 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Class A ordinary shares |
293 |
|
|
294 |
|
|
44 |
|
Class B ordinary shares |
38 |
|
|
38 |
|
|
6 |
|
Additional paid-in capital |
10,859,107 |
|
|
10,920,829 |
|
|
1,630,437 |
|
Accumulated other comprehensive income |
18,691 |
|
|
44,547 |
|
|
6,650 |
|
Accumulated deficit |
(10,081,093 |
) |
|
(10,132,290 |
) |
|
(1,512,711 |
) |
TOTAL SHAREHOLDERS' EQUITY |
797,036 |
|
|
833,418 |
|
|
124,426 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
1,580,421 |
|
|
1,196,964 |
|
|
178,702 |
|
17 EDUCATION & TECHNOLOGY GROUP INC. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands of RMB and USD, except for share and per ADS
data, or otherwise noted) |
|
|
For the three months ended June 30, |
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
Net revenues |
670,892 |
|
|
133,492 |
|
|
19,930 |
|
Cost of revenues (Note 1) |
(248,003 |
) |
|
(63,773 |
) |
|
(9,521 |
) |
|
|
|
|
|
|
|
|
|
Gross profit |
422,889 |
|
|
69,719 |
|
|
10,409 |
|
|
|
|
|
|
|
|
|
|
Operating expenses (Note 1) |
|
|
|
|
|
|
|
|
Sales and marketing expenses |
(306,731 |
) |
|
(11,650 |
) |
|
(1,739 |
) |
Research and development expenses |
(229,535 |
) |
|
(35,709 |
) |
|
(5,331 |
) |
General and administrative expenses |
(109,500 |
) |
|
(56,441 |
) |
|
(8,426 |
) |
Impairment for property and equipment and right-of-use assets |
(56,882 |
) |
|
— |
|
|
— |
|
Total operating expenses |
(702,648 |
) |
|
(103,800 |
) |
|
(15,496 |
) |
|
|
|
|
|
|
|
|
|
Loss from operations |
(279,759 |
) |
|
(34,081 |
) |
|
(5,087 |
) |
|
|
|
|
|
|
|
|
|
Interest income |
8,092 |
|
|
1,581 |
|
|
236 |
|
Foreign currency exchange gain (loss) |
2,808 |
|
|
(18 |
) |
|
(3 |
) |
Other income, net |
2,118 |
|
|
6,087 |
|
|
909 |
|
|
|
|
|
|
|
|
|
|
Loss before provision for income tax |
(266,741 |
) |
|
(26,431 |
) |
|
(3,945 |
) |
Income tax expenses |
— |
|
|
— |
|
|
— |
|
Net loss |
(266,741 |
) |
|
(26,431 |
) |
|
(3,945 |
) |
Net loss available to ordinary shareholders of
17 |
(266,741 |
) |
|
(26,431 |
) |
|
(3,945 |
) |
Education & Technology Group Inc. |
|
|
|
|
|
|
|
|
Net loss per ordinary share |
|
|
|
|
|
|
|
|
Basic and diluted |
(0.55 |
) |
|
(0.05 |
) |
|
(0.01 |
) |
Net loss per ADS (Note 2) |
|
|
|
|
|
|
|
|
Basic and diluted |
(5.50 |
) |
|
(0.50 |
) |
|
(0.10 |
) |
Weighted average shares used in calculating net
loss |
|
|
|
|
|
|
|
|
per ordinary share |
|
|
|
|
|
|
|
|
Basic and diluted |
482,811,981 |
|
|
509,153,443 |
|
|
509,153,443 |
|
|
|
|
|
|
|
|
|
|
Note 1: Share-based compensation expenses were included in the cost
and operating expenses as follows: |
|
|
For the three months ended June 30, |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
Share-based compensation expenses: |
|
|
|
|
|
|
|
|
Sales and marketing expenses |
6,519 |
|
|
3,368 |
|
|
503 |
|
Research and development expenses |
12,286 |
|
|
7,175 |
|
|
1,071 |
|
General and administrative expenses |
29,713 |
|
|
19,516 |
|
|
2,914 |
|
Total |
48,518 |
|
|
30,059 |
|
|
4,488 |
|
|
|
|
|
|
|
|
|
|
Note 2: Each one ADS represents ten Class A ordinary shares.
Effective on November 17, 2021, the Company changed the ratio of
its ADS to its Class A ordinary shares from two ADSs
representing five Class A ordinary shares to one ADS
representing ten Class A ordinary shares. All earnings per ADS
figures in this report give effect to the foregoing ADS to share
ratio change. |
17 EDUCATION & TECHNOLOGY GROUP INC. |
Reconciliations of non-GAAP measures to the most comparable
GAAP measures |
(In thousands of RMB and USD, except for share, per share
and per ADS data) |
|
|
|
|
|
|
|
For the three months ended June 30, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
Net Loss |
(266,741 |
) |
|
(26,431 |
) |
|
(3,945 |
) |
Share-based compensation |
48,518 |
|
|
30,059 |
|
|
4,488 |
|
|
|
|
|
|
|
Adjusted net (loss) income |
(218,223 |
) |
|
3,628 |
|
|
543 |
|
17 EDUCATION & TECHNOLOGY GROUP INC. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands of RMB and USD, except for share and per ADS
data, or otherwise noted) |
|
|
For the six months ended June 30, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
Net revenues |
1,145,138 |
|
|
366,938 |
|
|
54,782 |
|
Cost of revenues (Note 1) |
(435,628 |
) |
|
(155,558 |
) |
|
(23,224 |
) |
|
|
|
|
|
|
Gross profit |
709,510 |
|
|
211,380 |
|
|
31,558 |
|
|
|
|
|
|
|
|
|
|
Operating expenses (Note 1) |
|
|
|
|
|
|
|
|
Sales and marketing expenses |
(920,258 |
) |
|
(33,647 |
) |
|
(5,023 |
) |
Research and development expenses |
(439,462 |
) |
|
(133,185 |
) |
|
(19,884 |
) |
General and administrative expenses |
(239,218 |
) |
|
(107,742 |
) |
|
(16,085 |
) |
Impairment for property and equipment and right-of-use assets |
(56,882 |
) |
|
— |
|
|
— |
|
Total operating expenses |
(1,655,820 |
) |
|
(274,574 |
) |
|
(40,992 |
) |
|
|
|
|
|
|
|
|
|
Loss from operations |
(946,310 |
) |
|
(63,194 |
) |
|
(9,434 |
) |
|
|
|
|
|
|
|
|
|
Interest income |
15,089 |
|
|
3,646 |
|
|
544 |
|
Foreign currency exchange gain |
1,861 |
|
|
185 |
|
|
28 |
|
Other income, net |
2,932 |
|
|
8,166 |
|
|
1,219 |
|
|
|
|
|
|
|
|
|
|
Loss before provision for income tax |
(926,428 |
) |
|
(51,197 |
) |
|
(7,643 |
) |
Income tax expenses |
— |
|
|
— |
|
|
— |
|
Net loss |
(926,428 |
) |
|
(51,197 |
) |
|
(7,643 |
) |
Net loss available to ordinary shareholders of
17 |
|
|
|
|
|
|
|
|
Education & Technology Group Inc. |
(926,428 |
) |
|
(51,197 |
) |
|
(7,643 |
) |
Net loss per ordinary share |
|
|
|
|
|
|
|
|
Basic and diluted |
(1.92 |
) |
|
(0.10 |
) |
|
(0.02 |
) |
Net loss per ADS (Note 2) |
|
|
|
|
|
|
|
|
Basic and diluted |
(19.20 |
) |
|
(1.00 |
) |
|
(0.20 |
) |
Weighted average shares used in calculating net
loss |
|
|
|
|
|
|
|
|
per ordinary share |
|
|
|
|
|
|
|
|
Basic and diluted |
482,100,675 |
|
|
508,882,655 |
|
|
508,882,655 |
|
|
|
|
|
|
|
Note 1: Share-based compensation expenses were included in the cost
and operating expenses as follows: |
|
|
For the six months ended June 30, |
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
RMB |
|
USD |
Share-based compensation expenses: |
|
|
|
|
|
Sales and marketing expenses |
11,594 |
|
|
7,348 |
|
|
1,097 |
|
Research and development expenses |
23,249 |
|
|
14,360 |
|
|
2,144 |
|
General and administrative expenses |
84,524 |
|
|
42,996 |
|
|
6,419 |
|
Total |
119,367 |
|
|
64,704 |
|
|
9,660 |
|
|
|
|
|
|
|
Note 2: Each one ADS represents ten Class A ordinary shares.
Effective on November 17, 2021, the Company changed the ratio of
its ADS to its Class A ordinary shares from two ADSs
representing five Class A ordinary shares to one ADS
representing ten Class A ordinary shares. All earnings per ADS
figures in this report give effect to the foregoing ADS to share
ratio change. |
17 EDUCATION & TECHNOLOGY GROUP INC. |
Reconciliations of non-GAAP measures to the most comparable
GAAP measures |
(In thousands of RMB and USD, except for share, per share
and per ADS data) |
|
|
|
|
|
|
|
For the six months ended June 30, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
Net Loss |
(926,428 |
) |
|
(51,197 |
) |
|
(7,643 |
) |
Share-based compensation |
119,367 |
|
|
64,704 |
|
|
9,660 |
|
|
|
|
|
|
|
Adjusted net (loss) income |
(807,061 |
) |
|
13,507 |
|
|
2,017 |
|
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