BEIJING, March 16, 2021 /PRNewswire/ -- Puxin Limited
(NYSE: NEW) ("Puxin" or the "Company"), a successful consolidator
of the after-school education industry in China, today announced its unaudited financial
results for the fourth quarter and fiscal year ended December 31, 2020.
Fourth Quarter 2020 Financial and Operational
Highlights
- Net revenues were RMB718.3
million (US$110.1 million), a
decrease of 16.4% from RMB859.3
million in the fourth quarter of 2019.
- Net loss attributable to Puxin Limited was RMB68.8 million (US$10.5
million), a decrease of 36.8% from RMB108.8 million in the fourth quarter of
2019.
- Adjusted net loss attributable to Puxin
Limited[1] was RMB62.4
million (US$9.6 million), a
decrease of 32.5% from RMB92.5
million in the fourth quarter of 2019.
- Adjusted EBITDA[2] was RMB(17.8) million (US$(2.7) million), compared to RMB(51.9) million in the fourth quarter of
2019.
- Student enrollments decreased by 12.5% to 763,626 from 872,950
in the fourth quarter of 2019.
Fiscal Year 2020 Financial and Operational Highlights
- Net revenues were RMB2,903.9
million (US$445.0 million), a
decrease of 6.4% from RMB3,104.0
million in 2019.
- Net loss attributable to Puxin Limited was RMB32.2 million (US$4.9
million), a decrease of 93.8% from RMB518.5 million in 2019.
- Adjusted net income attributable to Puxin Limited was
RMB16.7 million (US$2.6 million), compared to adjusted net loss
attributable to Puxin Limited of RMB183.5
million in 2019.
- Adjusted EBITDA was RMB170.2
million (US$26.1 million),
compared to RMB(14.1) million in
2019.
- Student enrollments increased by 28.2% to 3,680,742 from
2,872,025 in 2019.
Mr. Yunlong Sha, Chairman and
Chief Executive Officer of Puxin, commented, "In the fourth quarter
of 2020, COVID-19 outbreak rebounded in some cities, but was
eventually effectively controlled by the government. In line with
local epidemic prevention measures, we had to once again
temporarily close some of our learning centers and move the courses
online. To ensure the safety and health of every student and staff
member, we have strengthened epidemic prevention health measures in
our learning centers. Looking back on 2020, while Puxin's total
revenues were impacted by the pandemic, our core K-12 tutoring
services (excluding Puxin Online School) still achieved a steady
growth, with an increase of 8.9% in revenues. During 2020, Puxin
had strategically focused on K-12 offline tutoring services by
increasing investment in R&D for products designed for
elementary school and junior high school students. For instance, we
formed a dedicated animation product team, tasked with the mission
to enrich the teaching materials for our elementary school students
and to increase customer retention rate through enhancing students'
interest in learning. Meanwhile, Puxin continued to further develop
the 'online merge offline' (OMO) model. The OMO model has allowed
us to seamlessly integrate offline and online K-12 tutoring
services to provide top-notch services that improved the quality of
teaching and customer's satisfaction rate. Moving forward in 2021,
with the rebound of the economy of China, Puxin is confident to achieve a
high-quality growth in the year."
Mr. Peng Wang, Chief Financial
Officer of Puxin, added, "Puxin's unwavering commitment to the K-12
tutoring services and effective cost control measures have
empowered us to weather the storm in 2020. Benefitting from the
exceptional operational capabilities of our PBS system, the total
operating expenses in 2020 fell 17.2% on a year-over-year basis
(YoY). Net revenues of K-12 tutoring services (excluding Puxin
Online School) achieved RMB2,099.0
million in 2020. We also made a positive progress in
adjusted net loss attributable to Puxin Limited of K-12 tutoring
services (excluding Puxin Online School), achieving RMB212.0 million, a substantial 137.3% YoY
increase. The business of studying abroad tutoring services has not
yet fully recovered, with RMB697.6
million in net revenues of studying abroad services in 2020,
a decrease of 39.9% YoY from RMB1,160.1
million in 2019. With the widespread of COVID-19 vaccination
in China and overseas as well as
the anticipation of global economy recovery, we expect the study
abroad market to rebound in the coming year. In the near term, we
will continue to focus on cost control and margin improvement,
target K-12 tutoring services as the core of our growth strategies,
implement the OMO strategy more efficiently and improve growth and
profitability, in order to deliver a long-term sustainable
shareholder value."
[1] Adjusted net (loss) income
attributable to Puxin Limited is a non-GAAP financial measure,
which is defined as net loss attributable to Puxin Limited
excluding share-based compensation expenses and loss on changes in
fair value of derivative liabilities. See "Use of Non-GAAP
Financial Measures" and "Reconciliations of GAAP and non-GAAP
results" elsewhere in this earnings release.
|
[2] EBITDA is a non-GAAP financial
measure, which is defined as net loss excluding depreciation,
amortization, interest expense, interest income and income tax
expenses; adjusted EBITDA is a non-GAAP financial measure, which is
defined as net loss excluding depreciation, amortization, interest
expense, interest income, income tax expenses, share-based
compensation expenses and loss on changes in fair value of
derivative liabilities. See "Use of Non-GAAP Financial Measures"
and "Reconciliations of GAAP and non-GAAP results" elsewhere in
this earnings release.
|
Financial Results for the Fourth Quarter of 2020
Net Revenues
Net revenues decreased by 16.4% to RMB718.3 million (US$110.1
million) from RMB859.3 million
in the fourth quarter of 2019. This decrease was primarily due to a
decrease in student enrollments from 872,950 in the fourth quarter
of 2019 to 763,626 in the same period of 2020.
Net revenues of K-12 tutoring services (excluding Puxin Online
School) were RMB546.7 million
(US$83.8 million), a decrease of 5.3%
from RMB577.5 million in the fourth
quarter of 2019. This decrease was primarily driven by a decrease
in student enrollments, which is caused by the rebounded COVID-19
outbreak in some cities.
Cost of Revenues
Cost of revenues decreased by 13.3% to RMB404.4 million (US$62.0
million) from RMB466.4 million
in the fourth quarter of 2019, primarily due to a
decrease in teaching staff's compensation. Cost of revenues,
excluding share-based compensation expenses, decreased by 13.3% to
RMB403.9 million (US$61.9 million) from RMB465.6 million in the fourth quarter of
2019.
Gross Profit and Gross Margin
Gross profit was RMB313.9 million
(US$48.1 million), a decrease of
20.1% from RMB392.9 million in the
fourth quarter of 2019. Gross margin was 43.7%, compared to 45.7%
for the same period in 2019.
Operating Expenses
Total operating expenses decreased by 7.5% to RMB450.2 million (US69.0 million) from
RMB486.7 million in the fourth
quarter of 2019.
Selling expenses decreased by 7.6% to RMB290.9 million (US$44.6
million) from RMB314.6 million
in the fourth quarter of 2019. Selling and marketing expenses,
excluding share-based compensation expenses, decreased by 7.2% to
RMB287.9 million (US$44.1 million) from RMB310.1 million in the fourth quarter of 2019.
The decreases were primarily due to decreases in
marketing expense and marketing staff compensation.
General and administrative expenses decreased by 7.4% to
RMB159.3 million (US$24.4 million) from RMB172.1 million during the same period of 2019.
General and administrative expenses, excluding share-based
compensation expenses, decreased by 6.7% to RMB156.5 million (US$24.0
million) from RMB167.8 million
in the fourth quarter of 2019. The decreases were primarily
due to decreases in staff compensation and daily operating
expenses.
Total share-based compensation expenses allocated to related
cost of revenues and operating expenses decreased by 34.1% to
RMB6.4 million (US$1.0 million) from RMB9.7 million in the fourth quarter of 2019. The
decrease was primarily due to a decrease in the number
of options vested in the fourth quarter of
2020 compared to the same period of 2019.
Operating Loss and Operating Margin
Operating loss was RMB136.3
million (US$20.9 million), an
increase of 45.2% from RMB93.8
million in the fourth quarter of 2019. Operating margin was
(19.0)% in the fourth quarter of 2020, compared to (10.9)% for the
same period in 2019.
Adjusted operating loss[3] was RMB129.9 million (US$19.9
million), an increase of 54.3% from RMB84.2 million in the fourth quarter of
2019.
Adjusted operating margin[4] was (18.1)%,
compared to (9.8)% in the same period of the prior year.
Net Loss
Net loss attributable to Puxin Limited was RMB68.8 million (US$10.5
million), a decrease of 36.8% from RMB108.8 million during the fourth quarter of
2019. Basic and diluted net loss per ADS attributable to Puxin
Limited were RMB0.78 (US$0.12), compared to RMB1.26 during the same period of 2019.
Adjusted net loss attributable to Puxin Limited was RMB62.4 million (US$9.6
million), a decrease of 32.5% from RMB92.5 million during the fourth quarter of
2019. Adjusted basic and diluted net loss per ADS attributable to
Puxin Limited[5] were RMB0.72 (US$0.11),
compared to RMB1.06 during the same
period of 2019.
EBITDA
EBITDA was RMB(24.1) million
(US$(3.7) million), compared to
RMB(68.2) million in the fourth
quarter of 2019.
EBITDA margin[6] was (3.4)% in the fourth
quarter of 2020, compared to (7.9)% in the same period in 2019.
Adjusted EBITDA was RMB(17.8)
million (US$(2.7) million),
compared to RMB(51.9) million in the
fourth quarter of 2019.
Adjusted EBITDA margin[7] was (2.5)%,
compared to (6.0)% in the same period in 2019.
[3]
Adjusted operating loss is a non-GAAP financial measure, which is
defined as operating loss excluding share-based compensation
expenses. See "Use of Non-GAAP Financial Measures" and
"Reconciliations of GAAP and non-GAAP results" elsewhere in this
earnings release.
|
[4] Adjusted operating margin is a
non-GAAP financial measure, which is defined as adjusted operating
loss divided by net revenues. See "Use of Non-GAAP Financial
Measures" and "Reconciliations of GAAP and non-GAAP results"
elsewhere in this earnings release.
|
[5] Adjusted basic and diluted net
(loss) income per ADS attributable to Puxin Limited is a non-GAAP
financial measure, which is defined as basic and diluted net loss
per ADS attributable to Puxin Limited excluding share-based
compensation expenses, loss on changes in fair value of derivative
liabilities. See "Use of Non-GAAP Financial Measures" and
"Reconciliations of GAAP and non-GAAP results" elsewhere in this
earnings release.
|
[6] EBITDA margin is a non-GAAP
financial measure, which is defined as EBITDA divided by net
revenues. See "Use of Non-GAAP Financial Measures" and
"Reconciliations of GAAP and non-GAAP results" elsewhere in this
earnings release.
|
[7] Adjusted EBITDA margin is a
non-GAAP financial measure, which is defined as adjusted EBITDA
divided by net revenues. See "Use of Non-GAAP Financial Measures"
and "Reconciliations of GAAP and non-GAAP results" elsewhere in
this earnings release.
|
Financial Results for the Fiscal Year 2020
Net Revenues
Net revenues decreased by 6.4% to RMB2,903.9 million (US$445.0 million) from RMB3,104.0 million in 2019, primarily due to a
decrease in net revenues from our study abroad business
attributable to the adverse impact of the global COVID-19 pandemic.
This decrease was partially offset by the steady growth of our K-12
tutoring services supported by an increase in student
enrollments.
Net revenues of K-12 tutoring services (excluding Puxin Online
School) were RMB2,099.0 million
(US$321.7 million), an increase of
8.9% from RMB1,927.4 million in 2019.
Net revenues from K-12 tutoring services (excluding Puxin Online
School), as percentage of total revenue, increased to 72.3% from
62.1% in 2019.
Cost of Revenues
Cost of revenues decreased by 4.3% to RMB1,558.6 million (US$238.9 million) from RMB1,629.4 million in 2019. Cost of revenues,
excluding share-based compensation expenses, decreased by 4.2% to
RMB1,556.3 million (US$238.5 million) from RMB1,625.1 million in 2019.
Gross Profit and Gross Margin
Gross profit was RMB1,345.3
million (US$206.2 million), a
decrease of 8.8% from RMB1,474.5
million in 2019. Gross margin was 46.3%, compared to 47.5%
in 2019.
Operating Expenses
Total operating expenses decreased by 17.2% to RMB1,517.7 million (US$232.6 million) from RMB1,832.1 million in 2019.
Selling expenses decreased by 3.3% to RMB1,048.5 million (US$160.7 million) from RMB1,083.8 million in 2019. Selling and marketing
expenses, excluding share-based compensation expenses, decreased by
2.5% to RMB1,035.2 million
(US$158.7 million) from RMB1,061.9 million in 2019.
General and administrative expenses decreased by 37.3% to
RMB469.2 million (US$71.9 million) from RMB748.3 million in 2019. General and
administrative expenses, excluding share-based compensation
expenses, decreased by 16.0% to RMB456.7
million (US$70.0 million) from
RMB544.0 million in 2019.
Total share-based compensation expenses allocated to related
cost of revenues and operating expenses decreased by 87.8% to
RMB28.0 million (US$4.3 million) from RMB230.4 million in 2019.
Operating Loss and Operating Margin
Operating loss decreased by 51.8% to RMB172.4 million (US$26.4
million) from RMB357.5 million
in 2019. Operating margin was (5.9)% in 2020, compared to (11.5)%
in 2019.
Adjusted operating margin was (5.0)%, compared to (4.1)% in
2019.
Net Income/Loss
Net loss attributable to Puxin Limited decreased by 93.8% to
RMB32.2 million (US$4.9 million), compared to RMB518.5 million in 2019. This decrease was
primarily driven by decrease in share-based compensation
expenses, loss on changes in fair value of derivative
liabilities and other operational costs, and by the
recording of exemption of social insurance and value-added
tax, and also by the gain on disposal of subsidiaries in year
2020. Basic and diluted net loss per ADS attributable to Puxin
Limited were RMB0.36 (US$0.06), compared to RMB6.06 in 2019.
Adjusted net income attributable to Puxin Limited was
RMB16.7 million (US$2.6 million), compared to adjusted net loss
attributable to Puxin Limited of RMB183.5
million in 2019. Adjusted basic and diluted net income per
ADS attributable to Puxin Limited were RMB0.19 (US$0.03),
compared to RMB(2.14) in 2019.
Adjusted net income attributable to Puxin Limited of K-12
tutoring services (excluding Puxin Online School) was RMB212.0 million (US$32.5
million), an increase of 137.3% from RMB89.3 million in 2019.
EBITDA
EBITDA was RMB121.3 million
(US$18.6 million), compared to
RMB(349.1) million in 2019.
EBITDA margin was 4.2% in 2020, compared to (11.2)% in 2019.
Adjusted EBITDA was RMB170.2
million (US$26.1 million),
compared to RMB(14.1) million in
2019.
Adjusted EBITDA margin was 5.9%, compared to (0.5)% in 2019.
Cash and Current Bank Balances
As of December 31, 2020, the
Company had total cash and cash equivalents and the current portion
of restricted cash of RMB563.0
million (US$86.3 million),
compared to RMB606.3 million as of
December 31, 2019. The current
portion of restricted cash consisted primarily of deposits with
Chinese commercial banks as collateral for our bank borrowings
within one-year term.
Business Outlook
For the first quarter of 2021, based on the information
available as of the date of this press release, the Company expects
net revenues to be between RMB683.7
million and RMB721.3 million,
which represents a decrease of 4% to 9% year-over-year. These
forecasts reflect the Company's current and preliminary views on
the market and operational conditions, which are subject to
change.
Conference Call Information
Puxin's management team will hold a conference call on
March 16, 2021, at 8:00 AM U.S. Eastern Time (or 8:00 PM on the same day, Beijing/Hong Kong Time) following the
quarterly results announcement. Participants may access the call by
dialing the following numbers:
International:
|
+1-412-902-4272
|
Mainland
China:
|
4001-201203
|
US:
|
+1-888-346-8982
|
Hong Kong:
|
+852-301-84992
|
Passcode:
|
Puxin
|
Please dial in 10 minutes before the call is scheduled to begin.
When prompted, ask to be connected to the Puxin Limited Call.
Participants will be required to state their name and company upon
entering the call.
A replay of the conference call will be accessible two hours
after the conclusion of the conference call through March 23, 2021 by dialing the following
numbers:
International:
|
+1-412-317-0088
|
US:
|
+1-877-344-7529
|
Passcode:
|
10152898
|
A live webcast and archive of the conference call will be
available on the Investor Relations section of Puxin's website at
http://ir.pxjy.com/.
Exchange Rate
The Company's business is primarily conducted in China and all of the revenues are denominated
in Renminbi ("RMB"). This announcement contains translations of
certain RMB amounts into U.S. dollars ("USD" or "US$") at specified
rates solely for the convenience of the readers. Unless otherwise
noted, all translations from RMB to USD are made at the rate of
RMB 6.5250 to US$1.00, the exchange rate set forth in the H.10
statistical release of the Federal Reserve Board on December 31, 2020. No representation is made that
the RMB amounts could have been, or could be, converted, realized
or settled into US$ at that rate on December
31, 2020, or at any other rate.
Use of Non-GAAP Financial Measures
To supplement the Company's financial results presented in
accordance with U.S. GAAP, the Company also uses non-GAAP financial
measures, including adjusted operating loss, adjusted operating
margin, adjusted net (loss) income attributable to Puxin Limited,
EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA margin,
adjusted basic and diluted net (loss) income per ADS attributable
to Puxin Limited, as supplemental measures to review and assess the
Company's operating performance. Adjusted operating loss is defined
as operating loss excluding share-based compensation expenses;
adjusted operating margin is defined as adjusted operating loss
divided by net revenues; adjusted net (loss) income attributable to
Puxin Limited is defined as net loss attributable to Puxin Limited
excluding share-based compensation expenses and loss on changes in
fair value of derivative liabilities; EBITDA is defined as net loss
excluding depreciation, amortization, interest expense, interest
income and income tax expenses; adjusted EBITDA is defined as net
loss excluding depreciation, amortization, interest expense,
interest income, income tax expenses, share-based compensation
expenses and loss on changes in fair value of derivative
liabilities; EBITDA margin is defined as EBITDA divided by net
revenues; adjusted EBITDA margin is defined as adjusted EBITDA
divided by net revenues; and adjusted basic and diluted net (loss)
income per ADS attributable to Puxin Limited are defined as basic
and diluted net loss per ADS attributable to Puxin Limited
excluding share-based compensation expenses and loss on changes in
fair value of derivative liabilities.
The Company believes that these non-GAAP financial measures
provide useful information about the Company's operating results,
enhance the overall understanding of the Company's past performance
and future prospects and allow for greater visibility with respect
to key metrics used by the Company's management in its financial
and operational decision-making.
Non-GAAP financial measures are not defined under U.S. GAAP and
are not presented in accordance with U.S. GAAP. These non-GAAP
financial measures have limitations as analytical tools, and when
assessing the Company's operating performance, investors should not
consider them in isolation. In addition, calculations of this
non-GAAP financial information may be different from calculations
used by other companies, and therefore comparability may be
limited.
The Company mitigates these limitations by reconciling the
non-GAAP financial measures to the most comparable U.S. GAAP
performance measures, all of which should be considered when
evaluating our performance.
For more information on this non-GAAP financial measure, please
see the table captioned "Reconciliations of GAAP and non-GAAP
results" set forth at the end of this press release.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "may," "would,"
"expect," "anticipate," "future," "intend," "aim," "plan,"
"believe," "estimate," "predict," "project," "continue,"
"confident" and similar statements. The Company may also make
written or oral forward-looking statements in its reports filed
with or furnished to the U.S. Securities and Exchange Commission,
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Any statements that are
not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: its goals and strategies, its ability to achieve and
maintain profitability, its ability to attract and retain students
to enroll in its courses, its ability to effectively manage its
business expansion and successfully integrate businesses it
acquired, its ability to identify or pursue targets for
acquisitions, its ability to compete effectively against its
competitors, its ability to improve the content of its existing
courses or to develop new courses, and relevant government policies
and regulations relating to the Company's corporate structure,
business and industry. Further information regarding these and
other risks is included in the Company's filings with the U.S.
Securities and Exchange Commission. All information provided in
this press release is current as of the date of the press release,
and the Company does not undertake any obligation to update such
information, except as required under applicable law.
About Puxin Limited
Puxin Limited (NYSE: NEW, "Puxin" or the "Company") is a
successful consolidator of the after-school education industry in
China. Puxin has a strong
acquisition and integration expertise to effectively improve
education quality and operational performance of acquired schools.
Puxin offers a full spectrum of K-12 and study-abroad tutoring
programs designed to help students achieve academic excellence, as
well as prepare for admission tests and applications for top
schools, universities and graduate programs in China and other countries. The Company has
developed a business model effectively combining strategic
acquisitions and organic growth achieved through successful
post-acquisition integration, which has differentiated the Company
from other after-school education service providers in China. For more information, please visit
http://www.pxjy.com/.
Contacts
Puxin Limited
Phone: +86-10-6269-8930
E-mail: ir@pxjy.com
Institutional Capital Advisory (ICA)
Mr. Kevin Yang
Phone: +86-021-8028-6033
E-mail: puxin@icaasia.com
PUXIN
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
|
|
As of
December 31,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
256,763
|
48,497
|
7,432
|
Restricted cash,
current portion
|
349,540
|
514,496
|
78,850
|
Inventories
|
13,311
|
15,210
|
2,331
|
Prepaid expenses and
other current assets
|
117,148
|
141,894
|
21,746
|
Loan
receivable
|
191,230
|
222,895
|
34,160
|
|
|
|
|
Total current
assets
|
927,992
|
942,992
|
144,519
|
|
|
|
|
Non-current
assets
|
|
|
|
Restricted cash,
non-current portion
|
36,727
|
25,814
|
3,956
|
Operating lease
right-of-use assets
|
1,045,941
|
940,568
|
144,148
|
Property, plant and
equipment, net
|
298,719
|
265,029
|
40,617
|
Intangible
assets
|
264,540
|
225,170
|
34,509
|
Goodwill
|
2,055,922
|
2,083,151
|
319,257
|
Deferred tax
assets
|
2,199
|
3,522
|
540
|
Rental
deposit
|
75,015
|
71,948
|
11,027
|
Other non-current
assets
|
-
|
59,400
|
9,103
|
|
|
|
|
TOTAL
ASSETS
|
4,707,055
|
4,617,594
|
707,676
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
liabilities
|
|
|
|
Accrued expenses and
other current liabilities (including accrued
expenses and other current liabilities of the
consolidated VIE
without recourse to the Group of RMB930,674 and
RMB743,499
of December 31, 2019 and 2020,
respectively)
|
983,715
|
784,894
|
120,290
|
Income tax payable of
the consolidated VIE without recourse to the
Group
|
21,248
|
32,445
|
4,972
|
Deferred revenue,
current portion (including deferred revenue,
current portion of the consolidated VIE without
recourse to the
Group of RMB1,195,723 and RMB1,013,606 as of December
31,
2019 and 2020, respectively)
|
1,205,609
|
1,023,037
|
156,787
|
Operating lease
liabilities, current portion (including operating lease
liabilities, current portion of the consolidated VIE
without recourse
to the Group of RMB275,893 and RMB251,572 as of
December
31, 2019 and 2020, respectively)
|
276,877
|
254,002
|
38,928
|
Amounts due to
related parties, current portion (including amounts
due to related parties, current portion of the
consolidated VIE
without recourse to the Group of RMB254 and RMB nil as
of
December 31, 2019 and 2020, respectively)
|
1,451
|
-
|
-
|
Bank borrowings of
the consolidated VIE without recourse to the
Group
|
318,600
|
585,000
|
89,655
|
Loans payable to
third parties, current portion (including loans
payable to third parties, current portion of the
consolidated VIE
without recourse to the Group of RMB292,952 and
RMB136,600
as of December 31, 2019 and 2020,
respectively)
|
413,838
|
301,850
|
46,261
|
Promissory notes,
current portion (including promissory notes,
current portion of the consolidated VIE without
recourse to the
Group of RMB nil and RMB nil as of December 31, 2019
and
2020, respectively)
|
87,023
|
163,125
|
25,000
|
|
|
|
|
Total current
liabilities
|
3,308,361
|
3,144,353
|
481,893
|
PUXIN
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
|
|
As of
December 31,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Deferred revenue,
non-current portion of the consolidated VIE
without recourse to the Group
|
101,372
|
81,805
|
12,537
|
Deferred tax
liabilities of the consolidated VIE without recourse to
the Group
|
81,969
|
71,674
|
10,985
|
Franchise deposits of
the consolidated VIE without recourse to the
Group
|
2,533
|
2,549
|
391
|
Operating lease
liabilities, non-current portion (including operating
lease liabilities, non-current portion of the
consolidated VIE
without recourse to the Group of RMB693,505 and
RMB594,624
as of December 31, 2019 and 2020,
respectively)
|
693,505
|
605,827
|
92,847
|
Promissory note,
non-current portion (including promissory note,
non-current portion of the consolidated VIE without
recourse to the
Group of RMB nil and RMB nil as of December 31,
2019 and
2020, respectively)
|
87,022
|
-
|
-
|
Derivative
liabilities (including derivative liabilities of the
consolidated VIE without recourse to the Group of RMB
nil and
RMB nil as of December 31, 2019 and 2020,
respectively)
|
172,235
|
-
|
-
|
Loans payable to
third parties, non-current portion (including loans
payable to third parties of the consolidated VIE
without recourse to
the Group of RMB nil and RMB nil as of December 31,
2019 and
2020, respectively)
|
-
|
121,870
|
18,677
|
Amounts due to
related parties, non-current portion (including
amounts due to related parties of the consolidated VIE
without
recourse to the Group of RMB nil and RMB nil as of
December 31,
2019 and 2020, respectively)
|
-
|
170,393
|
26,114
|
|
|
|
|
TOTAL
LIABILITIES
|
4,446,997
|
4,198,471
|
643,444
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Ordinary shares (par
value of USD0.00005 per share;
|
|
|
|
1,000,000,000
and 1,000,000,000 shares authorized,
|
|
|
|
188,627,228
and 188,653,468 shares issued and
|
|
|
|
174,025,810
and 174,453,992 shares outstanding
|
|
|
|
as of December
31, 2019 and 2020, respectively)
|
62
|
62
|
9
|
Additional paid-in
capital
|
2,175,652
|
2,396,406
|
367,265
|
Statutory
reserve
|
7,979
|
11,444
|
1,754
|
Accumulated other
comprehensive income
|
68,707
|
43,711
|
6,699
|
Accumulated
deficit
|
(1,991,220)
|
(2,026,891)
|
(310,635)
|
|
|
|
|
Total Puxin Limited
shareholders' equity
|
261,180
|
424,732
|
65,092
|
Non-controlling
interest
|
(1,122)
|
(5,609)
|
(860)
|
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
260,058
|
419,123
|
64,232
|
|
|
|
|
TOTAL LIABILITIES AND
TOTAL SHAREHOLDERS' EQUITY
|
4,707,055
|
4,617,594
|
707,676
|
PUXIN
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
|
|
For the three months
ended December 31,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
Net
revenues
|
859,319
|
718,313
|
110,086
|
Cost of revenues
(including share-based compensation expenses of
RMB818 and RMB522 for the three months ended December
31, 2019
and 2020, respectively)
|
(466,439)
|
(404,386)
|
(61,975)
|
|
|
|
|
Gross
profit
|
392,880
|
313,927
|
48,111
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling expenses
(including share-based compensation expenses of
RMB4,544 and RMB2,984 for the three months ended
December
31, 2019 and 2020, respectively)
|
(314,621)
|
(290,851)
|
(44,575)
|
General and
administrative expenses (including share-based
compensation expenses of RMB4,304 and RMB2,868 for the
three
months ended December 31, 2019 and 2020,
respectively)
|
(172,098)
|
(159,345)
|
(24,421)
|
|
|
|
|
Total operating
expenses
|
(486,719)
|
(450,196)
|
(68,996)
|
|
|
|
|
Operating
loss
|
(93,839)
|
(136,269)
|
(20,885)
|
|
|
|
|
Interest
expense
|
(17,094)
|
(19,358)
|
(2,967)
|
Interest
income
|
13,707
|
11,214
|
1,719
|
Foreign exchange
loss
|
(65)
|
(1,060)
|
(162)
|
Loss on changes in
fair value of derivative liabilities
|
(6,622)
|
-
|
-
|
Other income,
net
|
-
|
18,674
|
2,862
|
Gain on disposal of a
subsidiary
|
-
|
66,000
|
10,115
|
|
|
|
|
Loss before income
taxes
|
(103,913)
|
(60,799)
|
(9,318)
|
Income tax
expenses
|
(6,084)
|
(9,526)
|
(1,460)
|
|
|
|
|
Net loss
|
(109,997)
|
(70,325)
|
(10,778)
|
Less: Net loss
attributable to non-controlling interest
|
(1,169)
|
(1,517)
|
(232)
|
|
|
|
|
Net loss attributable
to Puxin Limited
|
(108,828)
|
(68,808)
|
(10,546)
|
|
|
|
|
Net loss per share
attributable to Puxin Limited
|
|
|
|
Basic and
diluted
|
(0.63)
|
(0.39)
|
(0.06)
|
Net loss per ADS
attributable to Puxin Limited
|
|
|
|
Basic and
diluted
|
(1.26)
|
(0.78)
|
(0.12)
|
|
|
|
|
Weighted average
shares used in calculating
basic and diluted net loss per share
|
173,989,979
|
174,276,664
|
174,276,664
|
|
|
|
|
Note: Each ADS
represents two ordinary shares.
|
|
|
|
PUXIN
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
(In thousands of RMB
and USD)
|
|
|
|
|
|
For the three months
ended December 31,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
Net loss
|
(109,997)
|
(70,325)
|
(10,778)
|
|
|
|
|
Other comprehensive
loss, net of tax:
|
|
|
|
Change in
cumulative foreign currency translation adjustments
|
(4,986)
|
(14,471)
|
(2,218)
|
|
|
|
|
Total comprehensive
loss
|
(114,983)
|
(84,796)
|
(12,996)
|
Less: comprehensive
loss attributable to non-controlling interest
|
(1,169)
|
(1,517)
|
(232)
|
|
|
|
|
Total comprehensive
loss attributable to Puxin Limited
|
(113,814)
|
(83,279)
|
(12,764)
|
PUXIN
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
|
|
For the year ended
December 31,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
Net
revenues
|
3,103,958
|
2,903,915
|
445,044
|
Cost of revenues
(including share-based compensation expenses of
RMB4,352 and RMB2,294 for the years ended December 31,
2019 and
2020, respectively)
|
(1,629,447)
|
(1,558,596)
|
(238,865)
|
|
|
|
|
Gross
profit
|
1,474,511
|
1,345,319
|
206,179
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling expenses
(including share-based compensation expenses of
RMB21,870 and RMB13,290 for the years ended December
31,
2019 and 2020, respectively)
|
(1,083,795)
|
(1,048,521)
|
(160,693)
|
General and
administrative expenses (including share-based
compensation expenses of RMB204,218 and RMB12,439 for
the
years ended December 31, 2019 and 2020,
respectively)
|
(748,259)
|
(469,163)
|
(71,902)
|
|
|
|
|
Total operating
expenses
|
(1,832,054)
|
(1,517,684)
|
(232,595)
|
|
|
|
|
Operating
loss
|
(357,543)
|
(172,365)
|
(26,416)
|
|
|
|
|
Interest
expense
|
(71,099)
|
(80,319)
|
(12,309)
|
Interest
income
|
25,542
|
46,150
|
7,073
|
Foreign exchange gain
(loss)
|
243
|
(1,322)
|
(203)
|
Loss on changes in
fair value of derivative liabilities
|
(104,589)
|
(20,917)
|
(3,206)
|
Other income,
net
|
-
|
78,440
|
12,021
|
Gain on disposal of
subsidiaries
|
-
|
126,968
|
19,459
|
Impairment loss on
intangible assets
|
-
|
(4,100)
|
(628)
|
|
|
|
|
Loss before income
taxes
|
(507,446)
|
(27,465)
|
(4,209)
|
Income tax
expenses
|
(12,188)
|
(9,195)
|
(1,409)
|
|
|
|
|
Net loss
|
(519,634)
|
(36,660)
|
(5,618)
|
Less: Net loss
attributable to non-controlling interest
|
(1,101)
|
(4,454)
|
(683)
|
|
|
|
|
Net loss attributable
to Puxin Limited
|
(518,533)
|
(32,206)
|
(4,935)
|
|
|
|
|
Net loss per share
attributable to Puxin Limited
|
|
|
|
Basic and
diluted
|
(3.03)
|
(0.18)
|
(0.03)
|
|
|
|
|
Net loss per ADS
attributable to Puxin Limited
|
|
|
|
Basic and
diluted
|
(6.06)
|
(0.36)
|
(0.06)
|
|
|
|
|
Weighted average
shares used in calculating
basic and diluted net loss per share
|
170,903,317
|
174,156,247
|
174,156,247
|
|
|
|
|
Note: Each ADS
represents two ordinary shares.
|
|
|
|
PUXIN
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
(In thousands of RMB
and USD)
|
|
|
|
|
|
For the year ended
December 31,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
Net loss
|
(519,634)
|
(36,660)
|
(5,618)
|
|
|
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
Change in
cumulative foreign currency translation adjustments
|
493
|
(24,996)
|
(3,831)
|
|
|
|
|
Total comprehensive
loss
|
(519,141)
|
(61,656)
|
(9,449)
|
Less: comprehensive
loss attributable to non-controlling interest
|
(1,101)
|
(4,454)
|
(683)
|
|
|
|
|
Total comprehensive
loss attributable to Puxin Limited
|
(518,040)
|
(57,202)
|
(8,766)
|
PUXIN
LIMITED
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
|
|
For the three months
ended December 31,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
Operating
loss
|
(93,839)
|
(136,269)
|
(20,885)
|
Add: Share-based
compensation expenses
|
9,666
|
6,374
|
977
|
Adjusted operating
loss
|
(84,173)
|
(129,895)
|
(19,908)
|
Adjusted operating
margin
|
(9.8%)
|
(18.1%)
|
(18.1%)
|
|
|
|
|
Net loss attributable
to Puxin Limited
|
(108,828)
|
(68,808)
|
(10,546)
|
Add: Share-based
compensation expenses
|
9,666
|
6,374
|
977
|
Loss on changes in fair
value of derivative liabilities
|
6,622
|
-
|
-
|
Adjusted net loss
attributable to Puxin Limited
|
(92,540)
|
(62,434)
|
(9,569)
|
|
|
|
|
Net
loss
|
(109,997)
|
(70,325)
|
(10,778)
|
Add: Income tax
expenses
|
6,084
|
9,526
|
1,460
|
Depreciation of property,
plant and equipment
|
23,195
|
20,050
|
3,073
|
Amortization of intangible
assets
|
9,135
|
8,465
|
1,297
|
Interest expense
|
17,094
|
19,358
|
2,967
|
Less: Interest
income
|
13,707
|
11,214
|
1,719
|
EBITDA
|
(68,196)
|
(24,140)
|
(3,700)
|
EBITDA
margin
|
(7.9%)
|
(3.4%)
|
(3.4%)
|
Add: Share-based
compensation expenses
|
9,666
|
6,374
|
977
|
Loss on changes
in fair value of derivative liabilities
|
6,622
|
-
|
-
|
Adjusted
EBITDA
|
(51,908)
|
(17,766)
|
(2,723)
|
Adjusted EBITDA
margin
|
(6.0%)
|
(2.5%)
|
(2.5%)
|
|
|
|
|
Net loss per ADS
attributable to Puxin Limited
|
|
|
|
- Basic and
diluted
|
(1.26)
|
(0.78)
|
(0.12)
|
|
|
|
|
Adjusted net loss per
ADS attributable to Puxin Limited
|
|
|
|
- Basic and
diluted
|
(1.06)
|
(0.72)
|
(0.11)
|
|
|
|
|
Weighted average
shares used in calculating basic and diluted
net loss per share
|
173,989,979
|
174,276,664
|
174,276,664
|
|
|
|
|
Note: Each ADS
represents two ordinary shares.
|
|
|
|
PUXIN
LIMITED
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
|
|
For the year ended
December 31,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
Operating
loss
|
(357,543)
|
(172,365)
|
(26,416)
|
Add: Share-based
compensation expenses
|
230,440
|
28,023
|
4,295
|
Adjusted operating
loss
|
(127,103)
|
(144,342)
|
(22,121)
|
Adjusted operating
margin
|
(4.1%)
|
(5.0%)
|
(5.0%)
|
|
|
|
|
Net loss attributable
to Puxin Limited
|
(518,533)
|
(32,206)
|
(4,935)
|
Add: Share-based
compensation expenses
|
230,440
|
28,023
|
4,295
|
Loss on changes in
fair value of derivative liabilities
|
104,589
|
20,917
|
3,206
|
Adjusted net (loss)
income attributable to Puxin Limited
|
(183,504)
|
16,734
|
2,566
|
|
|
|
|
Net loss
|
(519,634)
|
(36,660)
|
(5,618)
|
Add: Income tax
expenses
|
12,188
|
9,195
|
1,409
|
Depreciation of property,
plant and equipment
|
77,859
|
80,290
|
12,305
|
Amortization of intangible
assets
|
34,938
|
34,266
|
5,251
|
Interest expense
|
71,099
|
80,319
|
12,309
|
Less: Interest
income
|
25,542
|
46,150
|
7,073
|
EBITDA
|
(349,092)
|
121,260
|
18,583
|
EBITDA
margin
|
(11.2%)
|
4.2%
|
4.2%
|
Add: Share-based
compensation expenses
|
230,440
|
28,023
|
4,295
|
Loss on changes in fair value of derivative
liabilities
|
104,589
|
20,917
|
3,206
|
Adjusted
EBITDA
|
(14,063)
|
170,200
|
26,084
|
Adjusted EBITDA
margin
|
(0.5%)
|
5.9%
|
5.9%
|
|
|
|
|
Net loss per ADS
attributable to Puxin Limited
|
|
|
|
- Basic and
diluted
|
(6.06)
|
(0.36)
|
(0.06)
|
|
|
|
|
Adjusted net (loss)
income per ADS attributable to Puxin Limited
|
|
|
|
- Basic
|
(2.14)
|
0.19
|
0.03
|
Adjusted net (loss)
income per ADS attributable to Puxin Limited
|
|
|
|
- Diluted
|
(2.14)
|
0.19
|
0.03
|
Weighted average
shares used in calculating basic
|
|
|
|
net loss per
share
|
170,903,317
|
174,156,247
|
174,156,247
|
Weighted average
shares used in calculating diluted
|
|
|
|
net loss per
share
|
170,903,317
|
178,031,227
|
178,031,227
|
|
|
|
|
Note: Each ADS
represents two ordinary shares.
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/puxin-limited-announces-fourth-quarter-and-fiscal-year-2020-unaudited-financial-results-301248043.html
SOURCE Puxin Limited