China On-line Schooling Group Proclaims Full Yr 2021 Outcomes

BEIJING, March 24, 2022 /PRNewswire/ — China On-line Schooling Group (“51Talk” or the “Firm”) (NYSE: COE), a number one on-line schooling platform in China, with core experience in English schooling, introduced its unaudited monetary outcomes for the third quarter ended September 30, 2021, in addition to the fourth quarter and full yr ended December 31, 2021.

Full Yr 2021 Monetary and Working Highlights

• Internet revenues had been RMB2,166.5 million (US$340.0 million), a 5.5% improve from RMB2,054.1 million for the total yr 2020.
• Gross margin was 74.2%, in contrast with 71.7% for the total yr 2020.
• GAAP web earnings was RMB105.7 million(US$16.6 million), in contrast with GAAP web earnings RMB147.0 million for the total yr 2020.
• Non-GAAP web income1 was RMB132.7 million (US$20.8million), in contrast with non-GAAP web earnings RMB 173.7 million for the total yr 2020.
• Working money outflow was RMB676.1 million (US$106.1 million), in contrast with RMB719.2 million money influx for the total yr 2020.

Fourth Quarter 2021 Monetary and Working Metrics

• Internet revenues had been RMB412.8 million (US$64.8 million), a 22.9% lower from RMB535.1 million for the fourth quarter of 2020.
• Gross margin was 78.6%, in contrast with 72.7% for the fourth quarter of 2020.
• Internet earnings was RMB52.0million (US$8.2 million), in contrast with web earnings of RMB31.8 million for the fourth quarter of 2020.
• Non-GAAP web earnings was RMB55.0 million (US$8.6 million), in contrast with non-GAAP web earnings of RMB38.6 million for the fourth quarter of 2020.
• Working money outflow was RMB268.6 million (US$42.1 million), in contrast with RMB188.5 million of working money influx for the fourth quarter of 2020.
• Money, money equivalents, restricted money, time deposits and short-term investments steadiness stood at RMB992.6 million (US$155.8 million) as of December 31, 2021.

Third Quarter 2021 Monetary and Working Metrics

• Internet revenues had been RMB573.6 million (US$90.0 million), a 6.5% improve from RMB538.5 million for the third quarter of 2020.
• Gross margin was 73.5%, in contrast with 72.8% for the third quarter of 2020.
• Internet earnings was RMB 72.7 million (US$11.4 million), in contrast with web earnings of RMB31.6 million for the third quarter of 2020.
• Non-GAAP web income1 was RMB78.7 million (US$12.3 million), in contrast with non-GAAP web earnings of RMB38.5 million for the third quarter of 2020.
• Working money outflow was RMB376.7 million (US$59.1 million), in contrast with RMB186.1 million of working money influx for the third quarter of 2020.
• Money, money equivalents, time deposits and short-term investments steadiness stood at RMB1,265.7 million (US$198.6 million) as of September 30, 2021.

Key Monetary and Working Information

“In response to  the modifications in rules associated to After-Faculty Tutoring (“AST”) promulgated by the Chinese language authorities, we have now taken measures to restructure our enterprise in order that the Firm’s 2022 technique will keenly give attention to abroad enterprise. Within the fourth quarter, web gross billings of abroad enterprise have reached $2.9 million, representing 222.1% sequential progress,” mentioned Mr. Jack Jiajia Huang, Founder, Chairman and Chief Government Officer of 51Talk.,

“Because the abroad enterprise momentum proceed to construct, we have now prolonged our product choices to college students in additional than 50 nations and areas outdoors Mainland China. We have now been capable of leverage our power in top quality instructor sources, interactive curriculum, and superior expertise platform to shortly set up presence in a brand new market. We are going to keep on with our enterprise mannequin which balances progress with profitability and was confirmed in Mainland China market. We’re excited in exploring alternatives in oversea markets and permit our Filipino academics to assist extra college students to have the ability to speak to the world,” concluded Mr. Huang.

Third Quarter 2021 Monetary Outcomes

Internet Revenues

Internet revenues for the third quarter of 2021 had been RMB573.6 million (US$90.0 million), a 6.5% improve from RMB538.5 million for a similar quarter final yr. The rise was primarily attributed to a rise within the variety of energetic college students, partially offset by a lower in common income per energetic pupil. The variety of energetic college students with normal lesson consumption within the third quarter of 2021 was 406,200, a 20.2% improve from 338,000 for a similar quarter final yr. The variety of energetic college students with attended lesson consumption within the third quarter of 2021 was 376,500.

Value of Revenues

Value of revenues for the third quarter of 2021 was RMB151.9 million (US$23.8 million), a 3.5% improve from RMB146.7 million for a similar quarter final yr. The rise was primarily pushed by an improve in complete service charges paid to academics, primarily resulting from an elevated variety of paid classes.

Gross Revenue and Gross Margin

Gross revenue for the third quarter of 2021 was RMB421.8 million (US$66.2 million), a 7.7% improve from RMB391.8 million for a similar quarter final yr.

Gross margin for the third quarter of 2021 was 73.5%, in contrast with 72.8% for a similar quarter final yr. The rise was primarily attributable to the lower of the associated fee per lesson, partially offset by the lower of the income per lesson.

Working Bills

Whole working bills for the third quarter of 2021 had been RMB369.3 million (US$58.0 million), a 2.7% lower from RMB379.6 million for a similar quarter final yr. The lower was primarily resulting from a lower in gross sales and advertising and marketing bills and product growth bills, partially offset by a rise of normal and administrative bills and goodwill and intangibles impairment.

Gross sales and advertising and marketing bills for the third quarter of 2021 had been RMB191.9 million (US$30.1 million), a 32.2% lower from RMB282.8 million for a similar quarter final yr. The lower was primarily resulting from lower within the variety of personnel and decrease advertising and marketing and branding bills. Excluding share-based compensation bills, non-GAAP gross sales and advertising and marketing bills for the third quarter of 2021 had been RMB191.0 million (US$30.0 million), a 31.9% lower from RMB280.6 million for a similar quarter final yr.

Product growth bills for the third quarter of 2021 had been RMB40.7 million (US$6.4 million), a 6.9% lower from RMB43.8 million for a similar quarter final yr. The lower was primarily resulting from decrease product growth personnel prices associated to lower within the variety of personnel. Excluding share-based compensation bills, non-GAAP product growth bills for the third quarter of 2021 had been RMB39.3 million (US$6.2 million), a 6.6% lower from RMB42.1 million for a similar quarter final yr.

Common and administrative bills for the third quarter of 2021 had been RMB104.9 million (US$16.5 million), a 97.9% improve from RMB53.0 million for a similar quarter final yr. The rise was primarily resulting from restructuring value of RMB 51.4 million throughout the quarter. Excluding share-based compensation bills, non-GAAP normal and administrative bills for the third quarter had been RMB101.1 million (US$15.9 million), a 102.3% improve from RMB50.0 million for a similar quarter final yr. Excluding restructuring value and share-based compensation bills, normal and administrative bills for the third quarter would have been RMB 49.7 million (US$7.8 million), a 0.6% lower from RMB50.0 million for a similar quarter final yr.

Goodwill and intangibles impairment for the third quarter of 2021 was RMB31.8 million (US$4.9 million), in contrast with nil for a similar quarter final yr. The goodwill and intangible impairment was primarily as a result of decline of honest worth associated to the intangible property and goodwill in reference to the acquisition of 91waijiao.com accomplished in January 2015, property acquisition of GKid  accomplished in December 2020, and enterprise mixture of Kaola Studying accomplished within the second quarter of 2021. Contemplating current regulatory insurance policies on additional assuaging the burden of homework and after-school tutoring for college kids and the modifications in working atmosphere, the Firm acknowledged impairment losses of the intangible property and goodwill within the third quarter of 2021.

Different earnings

The exemption for the worth added tax (VAT) of client providers has been stopped as of March 31, 2021. This exemption, which covers a variety of client providers, was a part of the Chinese language authorities’s effort to ease the burden of companies affected by the COVID-19 pandemic. The earnings obtained by taxpayers from offering important providers shall be exempted from VAT. The favorable impression of such COVID-19 aid insurance policies was nil and RMB7.6 million within the third quarter of 2021 and 2020 respectively.

On September 30, 2019, the Ministry of Finance and the State Taxation Administration introduced that from October 1, 2019 to December 31, 2021, taxpayers partaking within the provision of important providers are allowed to deduct an additional 15% of the deductible enter value-added tax for the present interval from the payable value-added tax. The impression of the coverage of extra value-added tax credit score for the earnings generated by the important providers offered by enterprises was RMB6.0 million and RMB1.7 million within the third quarter of 2021 and 2020 respectively.

Earnings from Operations

Working earnings for the third quarter of 2021 was RMB58.4 million (US$9.2 million), in contrast with working earnings of RMB21.4 million for a similar quarter final yr. Working margin for the third quarter was 10.2%, in contrast with working margin of 4.0% for a similar quarter final yr.

Non-GAAP working earnings for the third quarter of 2021 was RMB64.4 million (US$10.1million), in contrast with non-GAAP working earnings of RMB28.3 million for a similar quarter final yr. Non-GAAP working margin for the third quarter was 11.2%, in contrast with non-GAAP working margin of 5.3% for a similar quarter final yr.

Internet earnings

Internet earnings for the third quarter of 2021 was RMB72.7 million (US$11.4 million), in contrast with web earnings of RMB31.6 million for a similar quarter final yr. Internet margin for the third quarter was 12.7%, in contrast with web margin of 5.9% for a similar quarter final yr.

Non-GAAP web earnings for the third quarter of 2021 was RMB78.7 million (US$12.3 million), in contrast with non-GAAP web earnings of RMB38.5 million for a similar quarter final yr. Non-GAAP web margin for the third quarter was 13.7%, in contrast with non-GAAP web margin of seven.1% for a similar quarter final yr.

Curiosity earnings for the third quarter of 2021 was unfavorable RMB7.0 million, resulting from RMB15.0 million reversal of curiosity earnings accrual from the time-deposits early withdraw, partially offset by curiosity earnings of RMB8.0 million.

Earnings tax advantages for the third quarter of 2021 was RMB20.5 million.

Primary web earnings per share attributable to atypical shareholders for the third quarter of 2021 was RMB0.22 (US$0.03), in contrast with fundamental web earnings per share of RMB0.10 for a similar quarter final yr. Diluted web earnings per share attributable to atypical shareholders for the third quarter of 2021 was RMB0.21 (US$0.03), in contrast with diluted web earnings per share of RMB0.09 for a similar quarter final yr.

Non-GAAP fundamental web earnings per share attributable to atypical shareholders for the third quarter of 2021 was RMB0.24 (US$0.04), in contrast with non-GAAP fundamental web earnings per share attributable to atypical shareholders of RMB0.12 for a similar quarter final yr. Non-GAAP diluted web earnings per share attributable to atypical shareholders for the third quarter of 2021 was RMB0.23 (US$0.04), in contrast with non-GAAP diluted web earnings per share attributable to atypical shareholders of RMB0.11 for a similar quarter final yr.

Primary web earnings per American depositary share (“ADS”) attributable to atypical shareholders for the third quarter of 2021 was RMB3.28 (US$0.51), in contrast with fundamental web earnings per ADS of RMB1.46 for a similar quarter final yr. Diluted web earnings per ADS attributable to atypical shareholders for the third quarter of 2021 was RMB3.22 (US$0.51), in contrast with diluted web earnings per ADS of RMB1.38 for a similar quarter final yr. Every ADS represents 15 Class A atypical shares.

Non-GAAP fundamental web earnings per ADS attributable to atypical shareholders for the third quarter of 2021 was RMB3.56 (US$0.56), in contrast with non-GAAP fundamental web earnings per ADS attributable to atypical shareholders of RMB1.78 for a similar quarter final yr. Non-GAAP diluted web earnings per ADS attributable to atypical shareholders for the third quarter of 2021 was RMB3.49 (US$0.55), in contrast with non-GAAP diluted web earnings per ADS attributable to atypical shareholders of RMB1.68 for a similar quarter final yr.

Stability Sheet

As of September 30, 2021, the Firm had complete money, money equivalents, time deposits and short-term investments of RMB1,265.7 million (US$198.6 million), in contrast with RMB1,727.7 million as of December 31, 2020. As part of money, money equivalents, time deposits and short-term investments, the Firm had non-current time deposits of RMB30.0 million (US$4.7 million), in contrast with RMB414.0 million as of December 31, 2020.

As of September 30, 2021, the Firm has a consolidated web present legal responsibility of RMB919.9 million, in contrast with web present legal responsibility of RMB1,400.4 million as of December 31, 2020. The Firm had advances from college students^[4] (present and non-current) of RMB2,262.5 million (US$355.0 million) as of September 30, 2021, in contrast with RMB2,721.0 million as of December 31, 2020.

Fourth Quarter 2021 Monetary Outcomes

Internet Revenues

Internet revenues for the fourth quarter of 2021 had been RMB412.8 million (US$64.8 million), a 22.9% lower from RMB535.1 million for a similar quarter final yr. The lower was primarily attributed to a lower within the variety of classes booked, partially offset by a rise within the variety of energetic college students with normal lesson consumption. The variety of energetic college students with normal lesson consumption within the fourth quarter of 2021 was 363,800, a 2.8% improve from 353,800 for a similar quarter final yr. The variety of energetic college students with attended lesson consumption within the fourth quarter of 2021 was 299,100.

Value of Revenues

Value of revenues for the fourth quarter of 2021 was RMB 88.3  million (US$13.9 million), a 39.6% lower from RMB146.1 million for a similar quarter final yr. The lower was primarily pushed by a lower in complete service charges paid to academics, primarily resulting from a decreased variety of paid classes.

Gross Revenue and Gross Margin

Gross revenue for the fourth quarter of 2021 was RMB324.5 million (US$50.9 million), a 16.6% lower from RMB388.9million for a similar quarter final yr.

Gross margin for the fourth quarter of 2021 was 78.6%, in contrast with 72.7% for a similar quarter final yr. The rise was primarily attributable to the lower of the associated fee per lesson and  the rise of the income per lesson.

Working Bills

Whole working bills for the fourth quarter of 2021 had been RMB321.2 million (US$50.4 million), a 16.7% lower from RMB385.7 million for a similar quarter final yr. The lower was primarily resulting from a lower in gross sales and advertising and marketing bills and product growth bills, partially offset by a rise generally and administrative bills.

Gross sales and advertising and marketing bills for the fourth quarter of 2021 had been RMB235.8 million (US$37.0 million), a 17.1% lower from RMB284.5 million for a similar quarter final yr. The lower was primarily resulting from lower within the variety of personnel and decrease advertising and marketing and branding bills. Excluding share-based compensation bills, non-GAAP gross sales and advertising and marketing bills for the fourth quarter of 2021 had been RMB235.4 million (US$36.9 million), a 16.7% lower from RMB282.6 million for a similar quarter final yr.

Product growth bills for the fourth quarter of 2021 had been RMB15.3 million (US$2.4 million), a 65.8% lower from RMB44.6 million for a similar quarter final yr. The lower was primarily resulting from decrease product growth personnel prices associated to lower within the variety of personnel. Excluding share-based compensation bills, non-GAAP product growth bills for the fourth quarter of 2021 had been RMB15.6 million (US$2.4 million), a 64.1% lower from RMB43.3 million for a similar quarter final yr.

Common and administrative bills for the fourth quarter of 2021 had been RMB69.7 million (US$10.9 million), a 23.1% improve from RMB56.6 million for a similar quarter final yr. The rise was primarily resulting from restructuring value of RMB 25.8 million throughout the quarter. Excluding share-based compensation bills, non-GAAP normal and administrative bills for the fourth quarter had been RMB66.7 million (US$10.5 million), a 26.0% improve from RMB53.0 million for a similar quarter final yr. Excluding restructuring value and share-based compensation bills, normal and administrative bills for the fourth quarter would have been RMB40.9 million (US$6.4 million), a 22.8% lower from RMB53.0 million for a similar quarter final yr.

Goodwill and intangibles impairment for the fourth quarter of 2021 was RMB0.4 million (US$0.1 million), in contrast with nil for a similar quarter final yr. The goodwill and intangibles impairment  was primarily as a result of decline of honest worth associated to the system for worker efficiency analysis. Contemplating current regulatory insurance policies on additional assuaging the burden of homework and after-school tutoring for college kids and the modifications in working atmosphere, the Firm acknowledged impairment losses of the intangible property within the fourth quarter of 2021.

Different earnings

The exemption for the VAT of client providers has been stopped as of March 31, 2021. This exemption, which covers a variety of client providers, was a part of the Chinese language authorities’s effort to ease the burden of companies affected by the COVID-19 pandemic. The earnings obtained by taxpayers from offering important providers shall be exempted from VAT. The favorable impression of such COVID-19 aid insurance policies was nil and RMB7.5 million within the fourth quarter of 2021 and 2020 respectively.

On December 31, 2019, the Ministry of Finance and the State Taxation Administration introduced that from October 1, 2019 to December 31, 2021, taxpayers partaking within the provision of important providers are allowed to deduct an additional 15% of the deductible enter value-added tax for the present interval from the payable value-added tax. The impression of the coverage of extra value-added tax credit score for the earnings generated by the important providers offered by enterprises was RMB0.6 million and RMB0.3 million within the fourth quarter of 2021 and 2020 respectively.

Earnings from Operations

Working earnings for the fourth quarter of 2021 was RMB3.9 million (US$0.6 million), in contrast with working earnings of RMB11.0 million for a similar quarter final yr. Working margin for the fourth quarter was 0.9%, in contrast with working margin of  2.1% for a similar quarter final yr.

Non-GAAP working earnings for the fourth quarter of 2021 was RMB6.9 million (US$1.1 million), in contrast with non-GAAP working earnings of RMB17.8 million for a similar quarter final yr. Non-GAAP working margin for the fourth quarter was 1.7%, in contrast with non-GAAP working margin of three.3% for a similar quarter final yr.

Internet earnings

Internet earnings for the fourth quarter of 2021 was RMB52.0 million (US$8.2 million), in contrast with web earnings of RMB31.8million for a similar quarter final yr. Internet margin for the fourth quarter was 12.6%, in contrast with web margin of 5.9% for a similar quarter final yr.

Non-GAAP web earnings for the fourth quarter of 2021 was RMB55.0 million (US$8.6 million), in contrast with non-GAAP web earnings of RMB38.6 million for a similar quarter final yr. Non-GAAP web margin for the fourth quarter was 13.3%, in contrast with non-GAAP web margin of  7.2% for a similar quarter final yr.

Earnings tax advantages for the fourth quarter of 2021 was RMB34.7 million. 

Primary web earnings per share attributable to atypical shareholders for the fourth quarter of 2021 was RMB0.16 (US$0.02), in contrast with fundamental web earnings per share of RMB0.10 for a similar quarter final yr. Diluted web earnings per share attributable to atypical shareholders for the fourth quarter of 2021 was RMB0.15 (US$0.02), in contrast with diluted web earnings per share of RMB0.09 for a similar quarter final yr.

Non-GAAP fundamental web earnings per share attributable to atypical shareholders for the fourth quarter of 2021 was RMB0.17 (US$0.03), in contrast with non-GAAP fundamental web earnings per share attributable to atypical shareholders of RMB0.12 for a similar quarter final yr. Non-GAAP diluted web earnings per share attributable to atypical shareholders for the fourth quarter of 2021 was RMB0.16 (US$0.03), in contrast with non-GAAP diluted web earnings per share attributable to atypical shareholders of RMB0.11 for a similar quarter final yr.

Primary web earnings per ADS attributable to atypical shareholders for the fourth quarter of 2021 was RMB2.34 (US$0.37), in contrast with fundamental web earnings per ADS of RMB1.48 for a similar quarter final yr. Diluted web earnings per ADS attributable to atypical shareholders for the fourth quarter of 2021 was RMB2.31 (US$0.36), in contrast with diluted web earnings per ADS of RMB1.39 for a similar quarter final yr. Every ADS represents 15 Class A atypical shares.

Non-GAAP fundamental web earnings per ADS attributable to atypical shareholders for the fourth quarter of 2021 was RMB2.48 (US$0.39), in contrast with non-GAAP fundamental web earnings per ADS attributable to atypical shareholders of RMB1.79 for a similar quarter final yr. Non-GAAP diluted web earnings per ADS attributable to atypical shareholders for the fourth quarter of 2021 was RMB2.45 (US$0.38), in contrast with non-GAAP diluted web earnings per ADS attributable to atypical shareholders of RMB1.68 for a similar quarter final yr.

Stability Sheet

As of December 31, 2021, the Firm had complete money, money equivalents,restricted money, time deposits and short-term investments of RMB992.6 million (US$155.8 million)and amongst which RMB50.6 million of restricted money, in contrast with RMB1,727.7 million as of December 31, 2020 with nil of restricted money. As part of money, money equivalents, time deposits and short-term investments, the Firm had non-current time deposits of RMB100.9 million (US$15.8 million), in contrast with RMB414.0 million as of December 31, 2020.

As of December 31, 2021, the Firm has a consolidated web present legal responsibility of RMB944.4 million, in contrast with web present legal responsibility of RMB1,400.4 million as of December 31, 2020. The Firm had advances from college students (present and non-current) of RMB1,767.2 million (US$277.3 million) as of December 31, 2021, in contrast with RMB2,721.0 million as of December 31, 2020.

Full Yr 2021 Monetary Outcomes

Internet Revenues

Internet revenues for 2021 had been RMB2,166.5 million (US$340.0 million), a 5.5% improve from RMB2,054.1 million for 2020. The rise was primarily attributed to a rise within the variety of energetic college students with normal lesson consumption. 

Value of Revenues

Value of revenues for 2021 was RMB558.0 million (US$87.6 million), a 3.9% lower from RMB580.4 million for 2020. The lower was primarily pushed by a lower in complete service charges paid to academics, primarily resulting from the lower of value per lesson pushed from value management. 

Gross Revenue and Gross Margin

Gross revenue for 2021 was RMB1,608.6 million (US$252.4 million), a 9.2% improve from RMB1,473.7 million for 2020.

Gross margin for 2021 was 74.2%, in contrast with  71.7% for 2020.

Working Bills

Whole working bills for 2021 had been RMB1,597.4 million (US$250.7 million), a 13.1% improve from RMB1,412.7  million for 2020. The rise was primarily the results of the will increase in gross sales and advertising and marketing bills, normal and administrative bills, product growth bills and goodwill and intangibles impairment.

Gross sales and advertising and marketing bills for 2021 had been RMB1,062.5 million (US$166.7 million), a 2.6% improve from RMB1,035.6 million for 2020. The rise was primarily resulting from improve within the gross sales and advertising and marketing personnel prices. Excluding share-based compensation bills, non-GAAP gross sales and advertising and marketing bills for 2021 had been RMB1,056.3 million (US$165.8 million), a 2.9% lower from RMB1,026.8 million for 2020.

Product growth bills for 2021 had been RMB178.8 million (US$28.1 million), a 9.8% improve from RMB162.8  million for 2020. Excluding share-based compensation bills, non-GAAP product growth bills for 2021 had been RMB174.3 million (US$27.4 million), a ten.1% improve from RMB158.4  million for 2020.

Common and administrative bills for 2021 had been RMB324.0 million (US$50.8 million), a 51.2% improve from RMB214.2 million for 2020. The rise was primarily resulting from restructuring value of RMB 77.2 million throughout the yr. Excluding share-based compensation bills, non-GAAP normal and administrative bills for 2021 had been RMB307.5 million (US$48.3 million), a 53.2% improve from RMB200.8 million for 2020. Excluding restructuring value and share-based compensation bills, normal and administrative bills for 2021 would have been RMB230.3 million (US$36.2 million), a 14.7% lower from RMB200.8 million for 2020.

Goodwill and intangibles impairment for 2021 was RMB32.2 million (US$5.0 million), in contrast with nil for a similar quarter final yr. The goodwill and intangibles impairment  was primarily as a result of decline of honest worth associated to the acquisition of 91waijiao.com accomplished in January 2015, the property acquisition of GKid  accomplished in December 2020, the acquisition of Kaola Studying accomplished within the second quarter of 2021, and the system for worker efficiency analysis. Contemplating current regulatory insurance policies on additional assuaging the burden of homework and after-school tutoring for college kids and the modifications in working atmosphere, the corporate acknowledged impairment losses of the intangible property in 2021.

Different earnings

As a part of Chinese language authorities’s effort to ease the burden of companies affected by the coronavirus (COVID-19) outbreak, the State Taxation Administration (STA) exempted a variety of client providers from VAT from January 2020. The earnings obtained by taxpayers from offering important providers shall be exempted from VAT. The favorable impression of coronavirus aid insurance policies was RMB10.7 million and RMB32.3 million in 2021 and 2020, respectively.

On September 30, 2019, Ministry of Finance and the State Taxation Administration introduced that from October 1,2019 to December 31, 2021, the taxpayers partaking within the provision of important providers are allowed to deduct an additional 15% of the deductible enter tax for the present interval from the payable tax. The impression of the coverage of extra value-added tax credit score for the earnings generated by the important providers offered by enterprises was RMB12.5 million and RMB11.1 million in 2021 and 2020, respectively.

Earnings from Operations

Working earnings for 2021 was RMB34.4 million (US$5.4 million), in contrast with RMB104.4 million for 2020. Working margin for 2021 was 1.6%, in contrast with working margin of 5.1% for 2020.

Non-GAAP working earnings for 2021 was RMB61.4 million (US$9.6 million), in contrast with RMB131.2 million for 2020. Non-GAAP working margin for 2021 was 2.8%, in contrast with non-GAAP working margin of 6.4% for 2020.

The favorable impression of coronavirus aid insurance policies was RMB10.7 million in 2021. Excluding the favorable impression, working earnings and non-GAAP working earnings for 2021 would have been RMB23.6 million (US$3.7 million) and RMB50.7 million (US$8.0 million), representing web margin of 1.1% and a pair of.3% respectively.

Internet earnings

Internet earnings for 2021 was RMB105.7 million (US$16.6 million), in contrast with RMB147.0 million for 2020. Internet margin for 2021 was 4.9%, in contrast with web margin of unfavorable 7.2% for 2020.

Non-GAAP web earnings for 2021 was RMB132.7 million (US$20.8 million), in contrast with RMB173.7 million for 2020. Non-GAAP web margin for 2021 was 6.1%, in contrast with non-GAAP web margin of 8.5% for 2020.

The favorable impression of coronavirus aid insurance policies was RMB10.7 million in 2021. Excluding the favorable impression, web earnings and non-GAAP web earnings for 2021 would have been RMB94.9 million (US$14.9 million) and RMB122.0 million (US$19.1 million), representing web margin of 4.4% and 5.6% respectively.

Earnings tax advantages for the fourth quarter of 2021 was RMB46.1 million.

Primary web earnings per ADS attributable to atypical shareholders for 2021 was RMB4.82 (US$0.76), in contrast with fundamental web earnings per ADS of RMB6.90 for 2020. Diluted web earnings per ADS attributable to atypical shareholders for 2021 was RMB4.66 (US$0.73), in contrast with diluted web earnings per ADS of RMB6.46 for 2020. Every ADS represents 15 Class A atypical shares.

Non-GAAP fundamental web earnings per ADS attributable to atypical shareholders for 2021 was RMB6.06 (US$0.95), in contrast with non-GAAP fundamental web earnings per ADS of RMB8.15 for 2020. Non-GAAP diluted web earnings per American depositary share (“ADS”) attributable to atypical shareholders for 2021 was RMB5.86 (US$0.92), in contrast with non-GAAP diluted web earnings per ADS of RMB7.63 for 2020. Every ADS represents 15 Class A atypical shares.

The favorable impression of coronavirus aid insurance policies was RMB10.7 million in 2021. Excluding the favorable impression, fundamental web earnings per ADS attributable to atypical shareholders for 2021 was RMB4.33 (US$0.68) and non-GAAP fundamental web earnings ADS attributable to atypical shareholders for 2021 was RMB5.57 (US$0.87), respectively. Excluding the favorable impression, diluted web earnings ADS attributable to atypical shareholders for 2021 was RMB4.19 (US$0.66) and non-GAAP diluted web earnings per American depositary share (“ADS”) attributable to atypical shareholders for 2020 was RMB5.38 (US$0.84), respectively.

Outlook

For the primary quarter of 2022, the Firm at the moment expects  web gross billings of oversea enterprise to be between $4.4 million and $4.6 million,representing sequential progress of 51.7 % to 58.6%

The above outlook relies on present market circumstances and displays the Firm’s present and preliminary estimates of market and working circumstances and buyer demand, that are all topic to alter.

As well as, the Firm’s future operational and monetary efficiency relies on the long run growth of the implementation of the Opinion and the success of the Firm’s enterprise adjustment plans, which is topic to inherent uncertainties presently.

Convention Name

The Firm’s administration will host an earnings convention name at 8:30 AM U.S. Japanese Time on March 24, 2022 (8:30 PM Beijing/Hong Kong time on March 24, 2022).

Dial-in particulars for the earnings convention name are as follows:

Members ought to dial-in a minimum of 5 minutes earlier than the scheduled begin time and ask to be related to the decision for “China On-line Schooling Group.”

Moreover, a dwell and archived webcast of the convention name will likely be accessible on the Firm’s investor relations web site at http://ir.51talk.com.

A replay of the convention name will likely be accessible till December3, 2021, by dialing the next phone numbers:

About China On-line Schooling Group

China On-line Schooling Group (NYSE: COE) is a number one on-line schooling platform in China, with core experience in English schooling. The Firm’s mission is to make high quality schooling accessible and inexpensive. The Firm’s on-line and cell schooling platforms allow college students to take dwell interactive English classes, on demand. The Firm connects its college students with a big pool of extremely certified academics that it assembled utilizing a shared economic system strategy, and employs pupil and instructor suggestions and information analytics to ship a customized studying expertise to its college students.

Use of Non-GAAP Monetary Measures

In evaluating its enterprise, 51Talk considers and makes use of the next measures outlined as non-GAAP monetary measures by the SEC as supplemental metrics to evaluation and assess its working efficiency: non-GAAP gross sales and advertising and marketing bills, non-GAAP product growth bills, non-GAAP normal and administrative bills, non-GAAP working bills, non-GAAP working earnings, non-GAAP web earnings, non-GAAP web earnings attributable to atypical shareholders, and non-GAAP web earnings attributable to atypical shareholders per share and per ADS. To current every of those non-GAAP measures, the Firm excludes share-based compensation bills. The presentation of those non-GAAP monetary measures will not be supposed to be thought of in isolation or as an alternative to the monetary data ready and offered in accordance with GAAP. For extra data on these non-GAAP monetary measures, please see the desk captioned “Reconciliations of non-GAAP measures to probably the most comparable GAAP measures” set forth on the finish of this press launch.

51Talk believes that these non-GAAP monetary measures present significant supplemental data concerning its efficiency by excluding share-based compensation bills that might not be indicative of its working efficiency from a money perspective. 51Talk believes that each administration and buyers profit from these non-GAAP monetary measures in assessing its efficiency and when planning and forecasting future durations. These non-GAAP monetary measures additionally facilitate administration’s inner comparisons to 51Talk’s historic efficiency. 51Talk computes its non-GAAP monetary measures utilizing the identical constant technique from quarter to quarter and from interval to interval. 51Talk believes these non-GAAP monetary measures are helpful to buyers in permitting for better transparency with respect to supplemental data utilized by administration in its monetary and operational decision-making. A limitation of utilizing non-GAAP measures is that these non-GAAP measures exclude share-based compensation bills which have been and can proceed to be for the foreseeable future a major recurring expense within the 51Talk’s enterprise. Administration compensates for these limitations by offering particular data concerning the GAAP quantities excluded from every non-GAAP measure. The accompanying desk on the finish of this press launch gives extra particulars on the reconciliations between GAAP monetary measures which can be most straight similar to non-GAAP monetary measures.

Change Fee Data

This announcement incorporates translations of sure RMB quantities into U.S. {dollars} at a specified fee solely for the comfort of the reader. Except in any other case famous, all translations from RMB to U.S. {dollars} are made at a fee of RMB6.3726 to US$1.00, the speed in impact as of December 31, 2021 as licensed for customs functions by the Federal Reserve Financial institution of New York.

Protected Harbor Assertion

This press launch incorporates statements that will represent “forward-looking” statements pursuant to the “protected harbor” provisions of the U.S. Personal Securities Litigation Reform Act of 1995. These forward-looking statements may be recognized by terminology resembling “will”, “expects”, “anticipates”, “goals”, “future”, “intends”, “plans”, “believes”, “estimates”, “more likely to” and comparable statements. Amongst different issues, 51Talk’s quotations from administration on this announcement, in addition to 51Talk’s strategic and operational plans, include forward-looking statements. 51Talk can also make written or oral forward-looking statements in its periodic reviews to the Securities and Change Fee (“SEC”), in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or workers to fourth events. Statements that aren’t historic info, together with statements about 51Talk’s beliefs and expectations, are forward-looking statements. Ahead-looking statements contain inherent dangers and uncertainties. A variety of components might trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: 51Talk’s targets and techniques; 51Talk’s expectations concerning demand for and market acceptance of its model and platform; 51Talk’s capacity to retain and improve its pupil enrollment; 51Talk’s capacity to supply new programs; 51Talk’s capacity to interact, prepare and retain new academics; 51Talk’s future enterprise growth, outcomes of operations and monetary situation; 51Talk’s capacity to keep up and enhance infrastructure essential to function its schooling platform; competitors within the on-line schooling business in China; the anticipated progress of, and developments in, the markets for 51Talk’s course choices in China; related authorities insurance policies and rules referring to 51Talk’s company construction, enterprise and business; normal financial and enterprise situation in China, the Philippines and elsewhere and assumptions underlying or associated to any of the foregoing. Additional data concerning these and different dangers is included in 51Talk’s filings with the SEC. All data offered on this press launch is as of the date of this press launch, and 51Talk doesn’t undertake any obligation to replace any forward-looking assertion, besides as required beneath relevant legislation.

SOURCE China On-line Schooling Group