Third Fiscal Quarter of Fiscal Year 2020
results:
- Cash sales totaled RMB721
million
- Net revenues totaled RMB745
million
- Average monthly student enrollments totaled 160,438
COVID-19 Recovery Progress to Date:
- As of August 4th, more than
90% of learning centers reopened
- Cash sales for OneSmart 1on1 business recovered to grow by
29% and 25% year-over-year in July, and August-to-date 2020,
respectively
- Cash sales for Young Children business recovered to grow by
12% year-over-year in August to date 2020
- Average monthly student enrollments for OneSmart 1on1
business reached 93,895 by August-to-date 2020, representing a
growth of 13% from March
2020
- Average monthly student enrollments for Young Children
business reached 51,055 by August-to-date 2020, representing a
growth of 8% from March 2020
- Net revenues for the fourth fiscal quarter of fiscal year
2020 are expected to be in the range of RMB900 million to RMB1
billion, representing a sequential increase of
21%-34%
SHANGHAI, Aug. 18, 2020 /PRNewswire/ -- OneSmart
International Education Group Limited (NYSE: ONE) ("OneSmart"
or the "Company"), the leading premium K-12 education company
in China, today announced its unaudited financial results for
the third fiscal quarter ended May 31,
2020.
Highlights for the Third Fiscal Quarter Ended May 31, 2020
All of our offline learning centers were temporally closed until
the public school activities started to resume in late May 2020. Meanwhile, majority of our existing
students followed their study schedule through OneSmart Online
platform when the offline centers were closed. As a result, the
total numbers of consumed class units and average monthly student
enrollments declined, partially offset by the online-consumed class
units and additional students acquired in our online platform
during the quarter. Specifically, for our three core business
units:
1. OneSmart 1on1 (the leading
premium K-12 1-on-1 education business in China): 1on1 students resumed their offline
study from late May 2020. In the
quarter, we saw the immediate 1on1 education demand came mostly
from those students participating in this year's ZhongKao and
GaoKao while other students tended to choose a postponed resumption
of their regular offline 1on1 study schedule. All of our students
have largely resumed their offline study in the summer season as
90% of our learning centers have reopened. As a result, the number
of average monthly student enrollments as of mid-August have passed
that of February.
2. OneSmart Young Children
Education: HappyMath (the leading premium young children
math education business in China)
and FasTrack English (the 2nd largest premium young
children English education business in East China): All of our
HappyMath and FasTrack English learning centers remained closed
during the entire third fiscal quarter. Young students took their
classes through OneSmart Online. The offline centers started to
reopen from June 2020.
3. OneSmart Online (The leading premium
online education business in China): OneSmart Online business acquired over
13,000 pure online enrollments during the quarter. These
enrollments do not count those students temporarily converted into
online platform during the pandemic or those offline students who
also took online classes. Cash sales from OneSmart Online business
totaled RMB59 million, an increase of
128% sequentially, accounting for 8% of total cash sales in the
quarter. Net revenues from OneSmart Online business totaled
RMB46 million, an increase of 47%
sequentially, accounting for 6% of total net revenues in the
quarter.
Mr. Steve
Zhang, Chairman and Chief Executive Officer of OneSmart,
commented, "Strictly following local governments' guidelines, we
have continuously taken the proper measures to protect health and
safety of our students and employees. We appreciate our employees'
great efforts and flexibilities to help our students continue
achieving their academic excellence in this year's ZhongKao and
GaoKao, especially with a limited timeframe and online-offline
shift during the pandemic. OneSmart 1on1 business, serving our
students for 12 years, proves to be the best premium K-12 1on1
education brand for its effectiveness in score-improvement and
premium customer experience. Since the beginning of this fiscal
year, we have launched OneSmart 1on1 Elite VIP ("Elite VIP")
program by upgrading our existing 1on1 learning centers to
facilitate more enjoyable study experience. In the upgraded larger
classrooms, our teachers and students will have the intelligent and
interactive tools to enhance the teaching results. In addition,
under Elite VIP, our students will have highly selected teachers
with extensive teaching experience to meet their higher
requirements. After a few months' interruption by COVID-19 this
year, we have resumed our center upgrade and will continue to roll
out Elite VIP in the coming years. Market study shows that OneSmart
serves only 3% of the target premium families in China. OneSmart will continue to lead in the
premium education sector with improved products and innovative
technologies and gain shares in the large and fast-growing
addressable market in China."
Key Financial
Results
|
|
|
|
|
|
|
(In
thousands/RMB)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q
FY2020
|
|
3Q
FY2019
|
|
% of
change
|
Net
revenues
|
|
744,916
|
|
1,093,271
|
|
-31.9%
|
Gross
profit
|
|
262,276
|
|
550,884
|
|
-52.4%
|
Operating
(loss)/income
|
|
(77,430)
|
|
123,033
|
|
NA
|
Non-GAAP operating (loss)/income
|
|
(39,453)
|
|
138,648
|
|
NA
|
Net (loss)/income
attributable to OneSmart
|
|
(454,061)
|
|
109,497
|
|
NA
|
Non-GAAP net
(loss)/ income attributable to OneSmart
|
|
(416,084)
|
|
125,112
|
|
NA
|
|
|
|
|
|
|
9 Months
FY2020
|
|
9 Months
FY2019
|
|
% of
change
|
Net
revenues
|
|
2,427,916
|
|
2,682,748
|
|
-9.5%
|
Gross
profit
|
|
899,345
|
|
1,277,814
|
|
-29.6%
|
Operating
(loss)/income
|
|
(246,891)
|
|
152,180
|
|
NA
|
Non-GAAP operating (loss)/income
|
|
(144,283)
|
|
198,110
|
|
NA
|
Net (loss)/income
attributable to OneSmart
|
|
(560,361)
|
|
158,114
|
|
NA
|
Non-GAAP net
(loss)/income attributable to OneSmart
|
|
(457,753)
|
|
204,044
|
|
NA
|
Mr. Greg Zuo, OneSmart's
Director, Chief Financial Officer and Chief Strategic Officer
added, "Thanks to the rigid demand for our core premium K-12 1on1
business, we are encouraged to see a V-shaped recovery in our
student enrollments and cash sales after the offline centers
reopened. Most recently, cash sales for OneSmart 1on1 business
recovered to grow by 29% and 25% year-over-year in July and
August-to-date, respectively. Cash sales for young children
education business resumed a year-over-year increase of 12% in
August to date. These leading indicators and trend have laid a
sound foundation for our net revenues growth in the following
quarters.
Furthermore, we remain confident in the roll-out in our Elite
VIP program, which is well-received by our customers in selected
cities. Year-to-date, this newly-launched product generated cash
sales of RMB94.5 million,
representing 3% of OneSmart 1on1 business' cash sales. Elite VIP,
priced 40% to 80% higher than our regular 1on1 class with a higher
expected margin, will solidify our premium positioning and premium
pricing power. Our goal is to generate about 20% of OneSmart 1on1
business' cash sales from the Elite VIP program in the near
future.
During the past few months, we have quickly adapted to the new
operational environments through a combination of offline centers
and online platforms. When we are gradually back to normal
operations, given the preference by our customers, we continue to
primarily serve them in our offline centers while OneSmart Online
serves as an incremental growth driver, to help generate higher
frequency of class consumption and increased numbers of subjects
taken by each student.
In summary, under the unprecedented event of pandemic, the
nature of our personalized education programs demonstrated a clear
V-shaped performance as students waited in fiscal Q3 for
back-to-schools and exam seasons to resume our services. As
demonstrated by recent swift rebound and return of strong year over
year growth in fiscal Q4, our business fundamentals remain solid
and consumer demand for highly effective and premium education
services is increasing. Currently, we expect fiscal Q4 revenue to
grow 21%-34% over fiscal Q3 and margin to return to the
pre-COVID-19 level over the next few quarters. Looking forward, we
expect strong revenue growth and margin recovery in FY21 and beyond
primarily underpinned by two major factors: Firstly the maturing of
previously opened learning centers as 57% of them were opened in
the last three years and are ramping up as planned, and secondly,
the new offerings of upgraded premium products which shall bring in
improved economics over the next few years."
Financial Results for the Third Fiscal Quarter Ended
May 31, 2020
Net Revenues
Net revenues were RMB744.9 million
(USD104.4 million), a decrease of
31.9% from RMB1,093.3 million during
the same period last year. The decrease was mainly attributable to
the temporary shutdown of our offline learning centers for COVID-19
related government requirements, offset by the incremental volume
from online platforms.
Operating Costs and Expenses
Operating costs and expenses for the quarter were
RMB822.3 million (USD115.3 million), a decrease of 15.2% from
RMB970.2 million during the same
period last year. Non-GAAP operating costs and expenses, which
excludes share-based compensation expenses, were RMB784.4 million (USD109.9
million), a decrease of 17.8% from RMB954.6 million during the same period last
year.
Cost of revenues decreased by 11.0% year-over-year
to RMB482.6 million (USD67.6 million). We actively managed down the
staff cost, rental cost and other related costs, partially offset
by the increase in the depreciation and amortization cost related
to our center expansion and upgrade prior to the pandemic;
Selling and marketing expenses decreased by 17.0%
year-over-year to RMB165.0 million
(USD23.1 million). Non-GAAP selling
and marketing expenses, which excludes share-based compensation
expenses, were RMB164.8 million
(USD23.1 million), a decrease of
17.0% from RMB198.5 million during
the same period last year. The decrease was primarily due to our
disciplined expense control and less cash sales generated during
the quarter when all learning centers remained closed until
May 2020;
General and administrative expenses decreased by
23.7% year-over-year to RMB174.7
million (USD24.5 million).
Non-GAAP general and administrative expenses, which excludes
share-based compensation, were RMB136.9
million (USD19.2 million), a
decrease of 35.9% from RMB213.8
million during the same period last year. The decrease was
primarily due to our expense control policy to keep a healthy
financial condition during COVD-19.
Total share-based compensation expenses, which were allocated to
related operating expenses, were RMB38.0
million (USD5.3 million) in
the third fiscal quarter of 2020, compared with RMB15.6 million in the same period of the prior
fiscal year.
Operating Income/Loss and Operating Margin
Operating loss for the quarter was RMB77.4 million (USD10.9
million), compared with operating income of RMB123.0 million in the same period of the prior
fiscal year. Non-GAAP operating loss, which excludes shared-based
compensation, was RMB39.5 million
(USD5.5 million), compared with
Non-GAAP operating income of RMB138.6
million during the same period of the prior fiscal year.
Operating margin for the quarter was -10.4%, compared with 11.3%
in the same period of the prior fiscal year. Non-GAAP operating
margin was -5.3%, compared with 12.7% during the same period last
year. The decrease of margin was mainly due to one-off revenue drop
due to the impact of COVID-19, coupled with previous quarters'
added teacher cost to improve premium offerings. We expect margin
will return to normal level post the crisis and start to expand in
FY21.
Other expense was RMB366.1
million (USD51.3 million),
compared with RMB0.3 million during
the same period last year. During the fiscal third quarter, we
incurred one-off impairment loss of RMB335
million, related to 15 investee companies, primarily caused
by COVID-19. We used prudent approach in evaluating financial
performance of these investee companies and decided to mark down
our investment amount by at least 80% for 14 of the 15 investee
companies. We will continue to stick to our highly selective
investment and M&A discipline and will only consider
opportunities that can immediately help the growth of our core
businesses.
Income tax benefit was RMB2.5
million (USD0.4 million),
compared with income tax expense of RMB47.1
million during the same period last year.
Net Income/Loss Attributable to OneSmart
Net loss attributable to OneSmart was RMB454.1 million (USD63.6
million), compared with net income of RMB109.5 million during the same period last
year. Non-GAAP net loss attributable to OneSmart was RMB416.1 million (USD58.3
million), compared with net income of RMB125.1 million during the same period last
year.
Capital Expenditures
Capital expenditures for the third fiscal quarter of
2020 were RMB20.1 million
(USD2.8 million), a year-over-year
decrease of 45.2% from RMB36.7
million in the third fiscal quarter of 2019. The decrease
was mainly because we prudently managed our cash flow and
temporarily suspended leasehold improvements due to COVID-19.
Financial Position
As of May 31, 2020, the Company
had cash and cash equivalents of RMB1,320.0 million (USD185.0 million), restricted cash of
RMB29.0 million (USD4.1 million) and short-term
investments of RMB456.4 million
(USD64.0 million).
OneSmart's prepayments from customers balance, which represents
cash collected from enrolled students for courses and recognized
proportionately as the training sessions are delivered, was
RMB2,358.9 million (USD330.6 million) at the end of the third fiscal
quarter of 2020, an increase of 6.4% from RMB2,216.8 million at the end of the third fiscal
quarter of 2019.
Cash Flow
Net cash used in operating activities in the third fiscal
quarter of 2020 was RMB21.7 million
(USD3.0 million).
Net cash used in investing activities in the third
quarter of 2020 was RMB196.9 million
(USD27.6 million).
Net cash provided by financing activities in the
third quarter of 2020 was RMB449.5
million (USD63.0 million).
Financial Results For the Nine Months Ended May 31, 2020
For the first nine months of fiscal year 2020, OneSmart reported
net revenues of RMB2,427.9 million
(USD340.3 million), representing a
9.5% decrease year-over-year. Average monthly student enrollments
in the first nine months of fiscal year 2020 increased by 6.4% to
approximately 168,484.
Operating costs and expenses for the first nine months of fiscal
year 2020 were RMB2,674.8 million
(USD374.9 million), a 5.7% increase
year-over-year. Non-GAAP operating costs and expenses for the first
nine months of fiscal year 2020, which excluded share-based
compensation expenses, were RMB2,572.2
million (USD360.5 million),
representing a 3.5% increase year-over-year.
Cost of revenues increased by 8.8% year-over-year to
RMB1,528.6 million (USD214.2 million).
Selling and marketing expenses were RMB556.6 million (USD78.0
million), in line with the same period last year. Non-GAAP
selling and marketing expenses, which excludes share-based
compensation expenses, were RMB556.1
million (USD77.9 million),
almost in line with the same period last year.
General and administrative expenses increased by 3.6%
year-over-year to RMB589.6 million
(USD82.6 million). Non-GAAP general
and administrative expenses, which excludes share-based
compensation, were RMB487.5 million
(USD68.3 million), a decrease of 6.9%
from RMB523.9 million during the same
period last year.
Operating loss for the first nine months of fiscal year 2020 was
RMB246.9 million (USD34.6 million). Non-GAAP operating loss for the
first nine months of fiscal year 2020 was RMB144.3 million (USD20.2
million).
Operating margin for the first nine months of fiscal year 2020
was -10.2%, compared to 5.7% for the same period of the prior
fiscal year. Non-GAAP operating margin, which excludes share-based
compensation expenses for the first nine months of fiscal year
2019, was -5.9%, compared to 7.4% for the same period of the prior
fiscal year.
Net loss attributable to OneSmart for the first nine months of
fiscal year 2020 was RMB560.4 million
(USD78.5 million). Non-GAAP net loss
attributable to OneSmart for the first nine months of fiscal year
2020 was RMB457.8 million
(USD64.2 million).
Outlook for the Fourth Fiscal Quarter of Fiscal Year
2020
Based on the latest estimates, we expect to generate net
revenues of RMB900 million to
RMB1.0 billion for the fiscal Q4.
This outlook confirms our revenue guidance of RMB3,330 to RMB3,430
million for the full Fiscal Year 2020. However, this outlook
represents OneSmart's current view, which is subject to change
because the COVID-19 impact is still ongoing and its future
development remains unclear.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at a specified rate solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB to
U.S. dollars are made at the noon buying rate on May 31, 2020, as set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve System, which was RMB7.1348
to USD1.00.
Conference Call Information
OneSmart's management will hold an earnings conference call at
8:00 AM on August 18, 2020, U.S. Eastern Time (8:00 PM on the same day Beijing/Hong Kong Time).
Dial-in numbers for the live conference call are as follows:
International
|
1-412-902-4272
|
Mainland
China
|
4001-201-203
|
US
|
1-888-346-8982
|
Hong Kong
|
800-905-945
|
Passcode
|
OneSmart
|
A telephone replay of the call will be available after the
conclusion of the conference call through August 25, 2020.
Dial-in numbers for the replay are as follows:
International
Dial-in
|
1-412-317-0088
|
U.S. Toll
Free
|
1-877-344-7529
|
Passcode:
|
10147012
|
Additionally, a live and archived webcast of this
conference call will be available at: http://ir.onesmart.org.
About OneSmart
Founded in 2008 and headquartered in Shanghai, OneSmart International Education
Group Limited is a leading premium K-12 education company in
China. Our vision is to be the
most trusted and heartful high-tech education company and our
mission is POWER LEARNING changes the future with technology
advancement. Our company culture is centered on the core values of
customer focus, excellence, integrity, and technology and
innovation.
The Company has built a comprehensive premium K-12 education
platform that encompasses OneSmart 1on1 business (the leading
premium K-12 1on1 education business in China), HappyMath (the leading premium young
children math education business in China), and FasTrack English (the second
largest premium English education business in East China), and
OneSmart Online (the leading premium online education platform in
China). As of May 31, 2020, OneSmart operates a nationwide
network of 449 learning centers across 33 cities in China.
For more information on OneSmart, please visit
http://ir.onesmart.org.
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. OneSmart 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
OneSmart'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: OneSmart's goals and strategies; its
future business development, financial condition and results of
operations; its ability to continue to penetrate premium K-12
after-school education services market; diversify and enrich our
education offerings; enhance the development and management of our
teacher team and teaching materials; competition in our industry
in China; its ability to maintain and expand online education
presence; relevant government policies and regulations relating to
the corporate structure, business and industry; and its ability to
protect our students' information and adequately address privacy
concerns. Further information regarding these and other risks,
uncertainties or factors 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 OneSmart does not undertake any obligation to
update such information, except as required under applicable
law.
Non-GAAP Financial Measures
In evaluating its business, OneSmart considers and uses the
following measures defined as non-GAAP financial measures by the
SEC as supplemental metrics to review and assess its operating
performance: non-GAAP operating costs and expenses, non-GAAP
selling and marketing expenses, non-GAAP general and administrative
expenses, non-GAAP operating income, non-GAAP net income
attributable to OneSmart. To present each of these non-GAAP
measures, the Company excludes share-based compensation expenses.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. For more information on these non-GAAP financial measures,
please see the table captioned "Reconciliations of non-GAAP
measures to the most comparable GAAP measures" set forth at the end
of this release.
OneSmart believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance and
liquidity by excluding share-based compensation expenses that may
not be indicative of its operating performance from a cash
perspective. OneSmart believes that both management and investors
benefit from these non-GAAP financial measures in assessing its
performance and when planning and forecasting future periods. These
non-GAAP financial measures also facilitate management's internal
comparisons to OneSmart's historical performance and liquidity.
OneSmart computes its non-GAAP financial measures using the same
consistent method from quarter to quarter and from period to
period. OneSmart believes these non-GAAP financial measures are
useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its
financial and operational decision making. A limitation of using
non-GAAP measures is that these non-GAAP measures exclude
share-based compensation charges that have been and will continue
to be for the foreseeable future a significant recurring expense in
the Company's business. Management compensates for these
limitations by providing specific information regarding the GAAP
amounts excluded from each non-GAAP measure. The accompanying
tables have more details on the reconciliations between GAAP
financial measures that are most directly comparable to non-GAAP
financial measures.
For more information, please contact:
OneSmart
Ms. Ida Yu
+86-21-2250-5891
E-mail: ir@onesmart.org
Christensen
In China
Mr. Andrew McLeod
Phone: +86-10-5900-1548
E-mail: amcleod@christensenir.com
In the US
Mr. Tip Fleming
Phone: +1-480-614-3004
Email: tfleming@ChristensenIR.com
ONESMART
INTERNATIONAL EDUCATION GROUP LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands)
|
|
|
|
As
of
|
|
As
of
|
|
As
of
|
|
|
August
31,
|
|
May
31,
|
|
May
31,
|
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Audited)
|
|
(Unaudited)
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,386,412
|
|
1,320,016
|
|
185,011
|
Restricted
cash
|
|
-
|
|
28,956
|
|
4,058
|
Short-term
investments
|
|
454,426
|
|
456,421
|
|
63,971
|
Amounts due from a
related party
|
|
-
|
|
19,491
|
|
2,732
|
Prepayments and other
current assets
|
|
578,787
|
|
828,444
|
|
116,113
|
Total current
assets
|
|
2,419,625
|
|
2,653,328
|
|
371,885
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
567,987
|
|
585,187
|
|
82,019
|
Intangible assets,
net
|
|
168,622
|
|
190,875
|
|
26,753
|
Long-term
investments
|
|
1,487,638
|
|
1,092,437
|
|
153,114
|
Operating lease
right-of-use assets
|
|
-
|
|
1,552,850
|
|
217,645
|
Goodwill
|
|
815,052
|
|
1,103,942
|
|
154,726
|
Deferred tax
assets
|
|
83,104
|
|
167,669
|
|
23,500
|
Amounts due from a
related party
|
|
18,750
|
|
20,400
|
|
2,859
|
Other non-current
assets
|
|
510,697
|
|
310,831
|
|
43,565
|
Total non-current
assets
|
|
3,651,850
|
|
5,024,191
|
|
704,181
|
|
|
|
|
|
|
|
Total
assets
|
|
6,071,475
|
|
7,677,519
|
|
1,076,066
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term loans
(including short-term loans of the
consolidated VIEs without recourse to the Group of
RMB249,876 and RMB711,300 (US$99,694) as
of August 31,
2019 and May 31, 2020, respectively)
|
|
249,876
|
|
711,300
|
|
99,694
|
Amounts due to a
related party (including due to a related
party of the consolidated VIEs without recourse to the
Group of nil and RMB9,000 (US$1,261) as of August 31,
2019 and May 31, 2020, respectively)
|
|
-
|
|
9,000
|
|
1,261
|
Long-term loans,
current portion (including long-term
loans, current portion of the consolidated VIEs without
recourse to the Group of RMB71,820 and RMB98,280
(US$13,775) as of August 31, 2019 and May 31, 2020,
respectively)
|
|
71,820
|
|
308,282
|
|
43,208
|
Accrued expenses and
other current liabilities (including
accrued expenses and other current liabilities of the
consolidated VIEs without recourse to the Group of
RMB750,164 and RMB460,355 (US$64,522) as of August 31,
2019 and May 31, 2020, respectively)
|
|
816,392
|
|
700,013
|
|
98,112
|
Income taxes payable
(including income taxes payable of
the consolidated VIEs without recourse to the Group of
RMB66,300 and RMB58,856(US$8,249) as of August 31, 2019
and May 31, 2020, respectively)
|
|
81,397
|
|
58,856
|
|
8,249
|
Prepayments from
customers (including prepayments from
customers of the consolidated VIEs without recourse to the
Group of RMB2,170,766 and RMB2,358,890 (US$330,618) as
of August 31, 2019 and
May 31, 2020, respectively)
|
|
2,170,815
|
|
2,358,939
|
|
330,624
|
Operating lease
liabilities, current portion (including
operating lease liabilities, current portion of the
consolidated VIEs without recourse to the Group of nil and
RMB500,197 (US$70,107) as of August 31, 2019 and May 31,
2020, respectively)
|
|
-
|
|
500,197
|
|
70,107
|
Total current
liabilities
|
|
3,390,300
|
|
4,646,587
|
|
651,255
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Deferred tax
liabilities (including deferred tax liabilities of the
consolidated VIEs without recourse to the Group of
RMB55,719 and RMB38,390(US$5,381) as of August 31,
2019 and May 31, 2020, respectively)
|
|
57,066
|
|
50,454
|
|
7,072
|
Long-term loans
(including long-term loan of the
consolidated VIEs without recourse to the Group of
RMB376,380 and RMB291,781 (US$40,895) as of August 31,
2019 and May 31, 2020, respectively)
|
|
1,345,754
|
|
1,051,809
|
|
147,420
|
Convertible senior
notes (including convertible senior notes
of the consolidated VIEs without recourse to the Group of
nil as of August 31, 2019 and May 31, 2020,
respectively)
|
|
-
|
|
252,550
|
|
35,397
|
Unrecognized tax
benefit (including liability for
unrecognized tax benefit of the consolidated VIEs without
recourse to the Group of RMB25,640 and RMB34,638
(US$4,855) as of August 31, 2019 and May 31, 2020,
respectively)
|
|
29,442
|
|
35,637
|
|
4,995
|
Operating lease
liabilities, non-current portion (including
operating lease liabilities, non-current portion of the
consolidated VIEs without recourse to the Group of nil and
RMB1,029,276 (US$144,261) as of August 31, 2019
and May 31, 2020, respectively)
|
|
-
|
|
1,029,276
|
|
144,261
|
Other non-current
liabilities (including other non-current
liabilities of the consolidated VIEs without recourse to the
Group of RMB43,440 and RMB22,375 (US$3,136) as of
August 31, 2019 and May 31, 2020, respectively)
|
|
91,440
|
|
46,375
|
|
6,500
|
Total non-current
liabilities
|
|
1,523,702
|
|
2,466,101
|
|
345,645
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,914,002
|
|
7,112,688
|
|
996,900
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Class A ordinary
shares (US$0.000001 par value;
37,703,157,984 shares authorized; 4,130,261,827 issued and
outstanding as of August 31, 2019 and 4,137,606,307 issued
and outstanding as of May 31,
2020, respectively)
|
|
26
|
|
26
|
|
4
|
Class B ordinary
shares (US$0.000001 par value;
2,296,842,016 issued and outstanding as of August 31, 2019
and May 31, 2020, respectively)
|
|
16
|
|
16
|
|
2
|
Treasury
stock
|
|
(203,759)
|
|
(274,648)
|
|
(38,494)
|
Additional paid-in
capital
|
|
5,501,992
|
|
5,600,559
|
|
784,964
|
Statutory
reserves
|
|
7,080
|
|
12,270
|
|
1,720
|
Accumulated
deficits
|
|
(4,300,153)
|
|
(4,865,704)
|
|
(681,968)
|
Accumulated other
comprehensive income
|
|
87,148
|
|
58,221
|
|
8,160
|
Total OneSmart
International Education Group Limited
shareholders' equity
|
|
1,092,350
|
|
530,740
|
|
74,388
|
Non-controlling
interests
|
|
65,123
|
|
34,091
|
|
4,778
|
Total
shareholders' equity
|
|
1,157,473
|
|
564,831
|
|
79,166
|
|
|
|
|
|
|
|
Total liabilities,
non-controlling interests and
shareholders' equity
|
|
6,071,475
|
|
7,677,519
|
|
1,076,066
|
|
|
|
|
|
|
|
ONESMART
INTERNATIONAL EDUCATION GROUP LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
May 31,
|
|
For the nine
months ended
May 31,
|
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
1,093,271
|
|
744,916
|
|
104,406
|
|
2,682,748
|
|
2,427,916
|
|
340,292
|
Cost of
revenues
|
|
(542,387)
|
|
(482,640)
|
|
(67,646)
|
|
(1,404,934)
|
|
(1,528,571)
|
|
(214,242)
|
Gross
profit
|
|
550,884
|
|
262,276
|
|
36,760
|
|
1,277,814
|
|
899,345
|
|
126,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
(Note 1)
|
|
(198,855)
|
|
(164,965)
|
|
(23,121)
|
|
(556,743)
|
|
(556,588)
|
|
(78,010)
|
General and
administrative (Note 1)
|
|
(228,996)
|
|
(174,741)
|
|
(24,491)
|
|
(568,891)
|
|
(589,648)
|
|
(82,644)
|
Total operating
expenses
|
|
(427,851)
|
|
(339,706)
|
|
(47,612)
|
|
(1,125,634)
|
|
(1,146,236)
|
|
(160,654)
|
Operating
income/(loss)
|
|
123,033
|
|
(77,430)
|
|
(10,852)
|
|
152,180
|
|
(246,891)
|
|
(34,604)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
4,351
|
|
1,447
|
|
203
|
|
16,762
|
|
34,434
|
|
4,826
|
Interest
expense
|
|
(22,173)
|
|
(28,548)
|
|
(4,001)
|
|
(40,041)
|
|
(73,362)
|
|
(10,282)
|
Other
income
|
|
46,592
|
|
20,730
|
|
2,905
|
|
65,794
|
|
79,717
|
|
11,173
|
Other
expenses
|
|
(255)
|
|
(366,087)
|
|
(51,310)
|
|
(830)
|
|
(396,023)
|
|
(55,506)
|
Foreign exchange
losses
|
|
(2,043)
|
|
(162)
|
|
(23)
|
|
(524)
|
|
(147)
|
|
(21)
|
Income/(loss)
before income tax and
share of net loss from equity investees
|
|
149,505
|
|
(450,050)
|
|
(63,078)
|
|
193,341
|
|
(602,272)
|
|
(84,414)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(expense)/benefit
|
|
(47,121)
|
|
2,495
|
|
350
|
|
(77,424)
|
|
27,063
|
|
3,793
|
Income/(loss)
before share of net loss
from equity investees
|
|
102,384
|
|
(447,555)
|
|
(62,728)
|
|
115,917
|
|
(575,209)
|
|
(80,621)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net loss
from equity investees
|
|
(1,152)
|
|
(8,452)
|
|
(1,185)
|
|
(8,465)
|
|
(16,167)
|
|
(2,266)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
101,232
|
|
(456,007)
|
|
(63,913)
|
|
107,452
|
|
(591,376)
|
|
(82,887)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Net loss
attributable to non-
controlling interests
|
|
8,265
|
|
1,946
|
|
273
|
|
50,662
|
|
31,015
|
|
4,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to
OneSmart's shareholders
|
|
109,497
|
|
(454,061)
|
|
(63,640)
|
|
158,114
|
|
(560,361)
|
|
(78,540)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
Share-based compensation expenses are included in the operating
costs and expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
May 31,
|
|
For the nine
months ended
May 31,
|
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
389
|
|
171
|
|
24
|
|
922
|
|
456
|
|
64
|
General and
administrative
|
|
15,226
|
|
37,806
|
|
5,299
|
|
45,008
|
|
102,152
|
|
14,317
|
Total
|
|
15,615
|
|
37,977
|
|
5,323
|
|
45,930
|
|
102,608
|
|
14,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ONESMART
INTERNATIONAL EDUCATION GROUP LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME/(LOSS)
|
(Amounts in
thousands)
|
|
|
|
For the three
months ended
May 31,
|
|
For the nine
months ended
May 31,
|
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
101,232
|
|
(456,007)
|
|
(63,913)
|
|
107,452
|
|
(591,376)
|
|
(82,887)
|
Other comprehensive
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
gain/(loss) on available-for-sale
investments, net of tax
|
19
|
|
31,512
|
|
4,417
|
|
49,640
|
|
(19,605)
|
|
(2,748)
|
Foreign currency
translation adjustment
|
(3,975)
|
|
(13,867)
|
|
(1,944)
|
|
2,213
|
|
(9,322)
|
|
(1,307)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income/(loss)
|
|
97,276
|
|
(438,362)
|
|
(61,440)
|
|
159,305
|
|
(620,303)
|
|
(86,942)
|
Add: Comprehensive
loss attributable to non-controlling interests
|
|
8,265
|
|
1,946
|
|
273
|
|
50,662
|
|
31,015
|
|
4,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income/(loss) a
ttributable to OneSmart's shareholders
|
|
105,541
|
|
(436,416)
|
|
(61,167)
|
|
209,967
|
|
(589,288)
|
|
(82,595)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ONESMART
INTERNATIONAL EDUCATION GROUP LIMITED
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
May 31,
|
|
For the nine
months ended
May 31,
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing expenses
|
|
198,855
|
|
164,965
|
|
23,121
|
|
556,743
|
|
556,588
|
|
78,010
|
Share-based
compensation expense in selling and
marketing expenses
|
|
389
|
|
171
|
|
24
|
|
922
|
|
456
|
|
64
|
Non-GAAP selling
and marketing expenses
|
|
198,466
|
|
164,794
|
|
23,097
|
|
555,821
|
|
556,132
|
|
77,946
|
General and
administrative expenses
|
|
228,996
|
|
174,741
|
|
24,491
|
|
568,891
|
|
589,648
|
|
82,644
|
Share-based
compensation expense in general and administrative
expenses
|
|
15,226
|
|
37,806
|
|
5,299
|
|
45,008
|
|
102,152
|
|
14,317
|
Non-GAAP general
and administrative expenses
|
|
213,770
|
|
136,935
|
|
19,192
|
|
523,883
|
|
487,496
|
|
68,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
970,238
|
|
822,346
|
|
115,258
|
|
2,530,568
|
|
2,674,807
|
|
374,896
|
Share-based
compensation expense in operating
costs and expenses
|
|
15,615
|
|
37,977
|
|
5,323
|
|
45,930
|
|
102,608
|
|
14,381
|
Non-GAAP operating
costs and expenses
|
|
954,623
|
|
784,369
|
|
109,935
|
|
2,484,638
|
|
2,572,199
|
|
360,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss)
|
|
123,033
|
|
(77,430)
|
|
(10,852)
|
|
152,180
|
|
(246,891)
|
|
(34,604)
|
Share-based
compensation expenses
|
|
15,615
|
|
37,977
|
|
5,323
|
|
45,930
|
|
102,608
|
|
14,381
|
Non-GAAP operating
income/(loss)
|
|
138,648
|
|
(39,453)
|
|
(5,529)
|
|
198,110
|
|
(144,283)
|
|
(20,223)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to OneSmart's
shareholders
|
|
109,497
|
|
(454,061)
|
|
(63,640)
|
|
158,114
|
|
(560,361)
|
|
(78,540)
|
Share-based
compensation expenses
|
|
15,615
|
|
37,977
|
|
5,323
|
|
45,930
|
|
102,608
|
|
14,381
|
Non-GAAP net
income/(loss) attributable to OneSmart
|
|
125,112
|
|
(416,084)
|
|
(58,317)
|
|
204,044
|
|
(457,753)
|
|
(64,159)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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content:http://www.prnewswire.com/news-releases/onesmart-international-education-group-limited-announces-unaudited-financial-results-for-the-third-fiscal-quarter-ended-may-31-2020-301113799.html
SOURCE OneSmart International Education Group Limited