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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Type 6-Okay
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2022
Fee File Quantity: 001-37790
CHINA ONLINE EDUCATION GROUP
Room 607, Yuemeite Constructing, No.1 Gaoxin South
seventh Highway
Excessive-tech Zone, Yuehai Avenue, Nanshan District
Shenzhen, Guangdong Province 518063
The Individuals’s Republic of China
(Deal with of principal govt workplace)
Point out by examine mark whether or not the registrant information or will file annual
stories beneath cowl of Type 20-F or Type 40-F.
Type 20-F x Type
40-F ¨
Point out by examine mark if the registrant is submitting the Type 6-Okay
in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Point out by examine mark if the registrant is submitting the Type 6-Okay
in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
SIGNATURES
Pursuant to the necessities of the Securities
Change Act of 1934, the registrant has duly brought on this report back to be signed on its behalf by the undersigned, thereunto duly licensed.
| CHINA ONLINE EDUCATION GROUP |
| By | : |
/s/ Min Xu |
|
| Identify | : | Min Xu | |
| Title | : | Chief Monetary Officer |
Date: March 24, 2022
EXHIBIT INDEX
Exhibit 99.1
China On-line Training Group Publicizes
Full Yr 2021 Outcomes
BEIJING, March 24, 2022 — China On-line
Training 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
| · | Web revenues have been RMB2,166.5 million (US$340.0 million), a 5.5% enhance from RMB2,054.1 million for the complete yr 2020. |
| · | Gross margin was 74.2%, in contrast with 71.7% for the complete yr 2020. |
| · | GAAP internet earnings was RMB105.7 million(US$16.6 million), in contrast with GAAP internet earnings RMB147.0 million for the complete yr 2020. |
| · | Non-GAAP internet earnings1 was RMB132.7 million (US$20.8million), in contrast with non-GAAP internet earnings RMB 173.7 million for the complete yr 2020. |
| · | Working money outflow was RMB676.1 million (US$106.1 million), in contrast with RMB719.2 million money influx for the complete yr 2020. |
Fourth Quarter 2021 Monetary and Working Metrics
| · | Web revenues have 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. |
| · | Web earnings was RMB52.0million (US$8.2 million), in contrast with internet earnings of RMB31.8 million for the fourth quarter of 2020. |
| · | Non-GAAP internet earnings was RMB55.0 million (US$8.6 million), in contrast with non-GAAP internet 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
| · | Web revenues have been RMB573.6 million (US$90.0 million), a 6.5% enhance 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. |
| · | Web earnings was RMB 72.7 million (US$11.4 million), in contrast with internet earnings of RMB31.6 million for the third quarter of 2020. |
| · | Non-GAAP internet earnings1 was RMB78.7 million (US$12.3 million), in contrast with non-GAAP internet 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. |
1 For extra info
on non-GAAP monetary measures, please see the part of “Use of Non-GAAP Monetary Measures” and the desk captioned “Reconciliation
of Non-GAAP Measures to the Most Comparable GAAP Measures” set forth on this press launch.
Key Monetary and Working Knowledge
| For the three months ended | For the three months ended | For the yr ended | |||||||||||||||||||||||||||||||||
| Sep. 30, | Sep. 30, | YoY | Dec. 31, | Dec. 31, | YoY | Dec. 31, | Dec. 31, | YoY | |||||||||||||||||||||||||||
| 2020 | 2021 | % | 2020 | 2021 | % | 2020 | 2021 | % | |||||||||||||||||||||||||||
| Web Revenues (in RMB hundreds of thousands) |
538.5 | 573.6 | 6.5 | 535.1 | 412.8 | -22.9 | 2,054.1 | 2,166.5 | 5.5 | ||||||||||||||||||||||||||
| Mainland China enterprise | 538.5 | 572.4 | 6.3 | 535.1 | 408.1 | -23.8 | 2,054.1 | 2,160.5 | 5.2 | ||||||||||||||||||||||||||
| Abroad enterprise | – | 1.2 | – | – | 4.8 | – | – | 6.0 | – | ||||||||||||||||||||||||||
| Energetic college students with attended lesson consumption2 (in hundreds) | 376.5 | 299.1 | 455.9 | ||||||||||||||||||||||||||||||||
| Energetic college students with normal lesson consumption3 (in hundreds) |
338.0 | 406.2 | 20.2 | 353.8 | 363.8 | 2.8 | 470.7 | 483.5 | 2.7 | ||||||||||||||||||||||||||
“In response to the adjustments in laws
associated to After-Faculty Tutoring (“AST”) promulgated by the Chinese language authorities, we’ve got taken measures to restructure our
enterprise in order that the Firm’s 2022 technique will keenly concentrate on abroad enterprise. Within the fourth quarter, internet gross billings of
abroad enterprise have reached $2.9 million, representing 222.1% sequential progress,” mentioned Mr. Jack Jiajia Huang, Founder, Chairman
and Chief Govt Officer of 51Talk.,
“Because the abroad enterprise momentum
proceed to construct, we’ve got prolonged our product choices to college students in additional than 50 nations and areas exterior Mainland China.
We have now been in a position to leverage our power in prime quality trainer assets, interactive curriculum, and superior know-how
platform to shortly set up presence in a brand new market. We’ll 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.
2 An “lively scholar with attended lesson
consumption” for a specified interval refers to a scholar who attended a minimum of one paid lesson, excluding these college students who solely
attended paid stay broadcasting classes or trial classes.
3 An “lively scholar with normal lesson
consumption” for a specified interval refers to a scholar who consumed a minimum of one paid lesson credit score, in attendance or because of minimal
consumption or expiration,excluding these college students who solely attended paid stay broadcasting classes or trial classes.
Third Quarter 2021 Monetary Outcomes
Web Revenues
Web revenues for the third quarter of 2021 have been
RMB573.6 million (US$90.0 million), a 6.5% enhance from RMB538.5 million for a similar quarter final yr. The rise was primarily attributed
to a rise within the variety of lively college students, partially offset by a lower in common income per lively scholar. The variety of lively
college students with normal lesson consumption within the third quarter of 2021 was 406,200, a 20.2% enhance from 338,000 for a similar quarter
final yr. The variety of lively college students with attended lesson consumption within the third quarter of 2021 was 376,500.
Price of Revenues
Price of revenues for the third quarter of 2021
was RMB151.9 million (US$23.8 million), a 3.5% enhance from RMB146.7 million for a similar quarter final yr. The rise was primarily
pushed by a rise in whole service charges paid to academics, primarily because of 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% enhance 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 price per lesson,
partially offset by the lower of the income per lesson.
Working Bills
Complete working bills for the third quarter
of 2021 have 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 because of a lower in gross sales and advertising and marketing bills and product improvement 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 have 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 because of 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 have been RMB191.0 million (US$30.0 million), a 31.9% lower from RMB280.6
million for a similar quarter final yr.
Product improvement bills for the third
quarter of 2021 have 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 because of decrease product improvement personnel prices associated to lower within the variety of personnel. Excluding
share-based compensation bills, non-GAAP product improvement bills for the third quarter of 2021 have been RMB39.3 million (US$6.2
million), a 6.6% lower from RMB42.1 million for a similar quarter final yr.
Normal and administrative bills for the third
quarter of 2021 have been RMB104.9 million (US$16.5 million), a 97.9% enhance from RMB53.0 million for a similar quarter final yr. The rise
was primarily because of restructuring price of RMB 51.4 million throughout the quarter. Excluding share-based compensation bills, non-GAAP
normal and administrative bills for the third quarter have been RMB101.1 million (US$15.9 million), a 102.3% enhance from RMB50.0 million
for a similar quarter final yr. Excluding restructuring price 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 because of the 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 adjustments in working surroundings, 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 shopper companies has been stopped as of March 31, 2021. This exemption, which covers a large
vary of shopper companies, 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 companies 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 companies 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 companies supplied by enterprises was RMB6.0 million and RMB1.7 million within the third quarter of 2021 and 2020
respectively.
Revenue 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.
Web earnings
Web earnings for the third quarter of 2021 was RMB72.7
million (US$11.4 million), in contrast with internet earnings of RMB31.6 million for a similar quarter final yr. Web margin for the third quarter
was 12.7%, in contrast with internet margin of 5.9% for a similar quarter final yr.
Non-GAAP internet earnings for the third quarter of 2021
was RMB78.7 million (US$12.3 million), in contrast with non-GAAP internet earnings of RMB38.5 million for a similar quarter final yr. Non-GAAP internet
margin for the third quarter was 13.7%, in contrast with non-GAAP internet margin of seven.1% for a similar quarter final yr.
Curiosity earnings for the third quarter of 2021
was damaging RMB7.0 million, because of RMB15.0 million reversal of curiosity earnings accrual from the time-deposits early withdraw, partially
offset by curiosity earnings of RMB8.0 million.
Revenue tax advantages for the third quarter of 2021
was RMB20.5 million.
Fundamental internet earnings per share attributable to atypical
shareholders for the third quarter of 2021 was RMB0.22 (US$0.03), in contrast with primary internet earnings per share of RMB0.10 for a similar quarter
final yr. Diluted internet earnings per share attributable to atypical shareholders for the third quarter of 2021 was RMB0.21 (US$0.03), in contrast
with diluted internet earnings per share of RMB0.09 for a similar quarter final yr.
Non-GAAP primary internet earnings per share attributable
to atypical shareholders for the third quarter of 2021 was RMB0.24 (US$0.04), in contrast with non-GAAP primary internet earnings per share attributable
to atypical shareholders of RMB0.12 for a similar quarter final yr. Non-GAAP diluted internet 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 internet earnings per share attributable to atypical shareholders
of RMB0.11 for a similar quarter final yr.
Fundamental internet 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 primary internet
earnings per ADS of RMB1.46 for a similar quarter final yr. Diluted internet earnings per ADS attributable to atypical shareholders for the third
quarter of 2021 was RMB3.22 (US$0.51), in contrast with diluted internet earnings per ADS of RMB1.38 for a similar quarter final yr. Every ADS represents
15 Class A atypical shares.
Non-GAAP primary internet earnings per ADS
attributable to atypical shareholders for the third quarter of 2021 was RMB3.56 (US$0.56), in contrast with non-GAAP primary internet earnings
per ADS attributable to atypical shareholders of RMB1.78 for a similar quarter final yr. Non-GAAP diluted internet 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 internet 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 whole
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
internet present legal responsibility of RMB919.9 million, in contrast with internet present legal responsibility of RMB1,400.4 million as of December 31, 2020. The Firm
had advances from college students4 (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
Web Revenues
Web revenues for the fourth quarter of 2021 have 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 lively college students with normal
lesson consumption. The variety of lively college students with normal lesson consumption within the fourth quarter of 2021 was 363,800, a 2.8% enhance
from 353,800 for a similar quarter final yr. The variety of lively college students with attended lesson consumption within the fourth quarter of 2021
was 299,100.
Price of Revenues
Price 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 whole service charges paid to academics, primarily because of 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 price per lesson
and the rise of the income per lesson.
Working Bills
Complete working bills for the fourth
quarter of 2021 have 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 because of a lower in gross sales and advertising and marketing bills and
product improvement bills, partially offset by a rise typically and administrative bills.
4 “Advances from college students,”
which is outlined as the quantity of obligation to switch good or service to college students or enterprise companions for which consideration
has been obtained from college students upfront. The deposits from college students are additionally offered within the whole quantity of “advances
from college students”.
Gross sales and advertising and marketing bills for the fourth quarter
of 2021 have 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 because of 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 have been RMB235.4 million (US$36.9 million), a 16.7% lower from RMB282.6
million for a similar quarter final yr.
Product improvement bills for the fourth quarter
of 2021 have 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 because of decrease product improvement personnel prices associated to lower within the variety of personnel. Excluding share-based compensation
bills, non-GAAP product improvement bills for the fourth quarter of 2021 have been RMB15.6 million (US$2.4 million), a 64.1% lower
from RMB43.3 million for a similar quarter final yr.
Normal and administrative bills for the fourth
quarter of 2021 have been RMB69.7 million (US$10.9 million), a 23.1% enhance from RMB56.6 million for a similar quarter final yr. The rise
was primarily because of restructuring price of RMB 25.8 million throughout the quarter. Excluding share-based compensation bills, non-GAAP
normal and administrative bills for the fourth quarter have been RMB66.7 million (US$10.5 million), a 26.0% enhance from RMB53.0 million
for a similar quarter final yr. Excluding restructuring price 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 because of the 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 adjustments in working surroundings, the Firm acknowledged impairment losses of the intangible property within the fourth quarter of 2021.
Different earnings
The
exemption for the VAT of shopper companies has been stopped as of March 31, 2021. This exemption, which covers a variety of shopper
companies, 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 companies 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 companies 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 companies supplied by enterprises was RMB0.6 million and RMB0.3 million within the fourth quarter of 2021 and 2020 respectively.
Revenue 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 two.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.
Web earnings
Web earnings for the fourth quarter of 2021 was
RMB52.0 million (US$8.2 million), in contrast with internet earnings of RMB31.8million for a similar quarter final yr. Web margin for the fourth
quarter was 12.6%, in contrast with internet margin of 5.9% for a similar quarter final yr.
Non-GAAP internet earnings for the fourth quarter of
2021 was RMB55.0 million (US$8.6 million), in contrast with non-GAAP internet earnings of RMB38.6 million for a similar quarter final yr. Non-GAAP
internet margin for the fourth quarter was 13.3%, in contrast with non-GAAP internet margin of seven.2% for a similar quarter final yr.
Revenue tax advantages for the fourth quarter of
2021 was RMB34.7 million.
Fundamental internet earnings per share attributable to atypical
shareholders for the fourth quarter of 2021 was RMB0.16 (US$0.02), in contrast with primary internet earnings per share of RMB0.10 for a similar quarter
final yr. Diluted internet earnings per share attributable to atypical shareholders for the fourth quarter of 2021 was RMB0.15 (US$0.02), in contrast
with diluted internet earnings per share of RMB0.09 for a similar quarter final yr.
Non-GAAP primary internet earnings per share attributable
to atypical shareholders for the fourth quarter of 2021 was RMB0.17 (US$0.03), in contrast with non-GAAP primary internet earnings per share attributable
to atypical shareholders of RMB0.12 for a similar quarter final yr. Non-GAAP diluted internet 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 internet earnings per share attributable to atypical shareholders
of RMB0.11 for a similar quarter final yr.
Fundamental internet earnings per ADS attributable to atypical
shareholders for the fourth quarter of 2021 was RMB2.34 (US$0.37), in contrast with primary internet earnings per ADS of RMB1.48 for a similar quarter
final yr. Diluted internet earnings per ADS attributable to atypical shareholders for the fourth quarter of 2021 was RMB2.31 (US$0.36), in contrast
with diluted internet earnings per ADS of RMB1.39 for a similar quarter final yr. Every ADS represents 15 Class A atypical shares.
Non-GAAP primary internet earnings per ADS
attributable to atypical shareholders for the fourth quarter of 2021 was RMB2.48 (US$0.39), in contrast with non-GAAP primary internet earnings
per ADS attributable to atypical shareholders of RMB1.79 for a similar quarter final yr. Non-GAAP diluted internet 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 internet
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 whole 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
internet present legal responsibility of RMB944.4 million, in contrast with internet 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
Web Revenues
Web revenues for 2021 have been RMB2,166.5 million
(US$340.0 million), a 5.5% enhance from RMB2,054.1 million for 2020. The rise was primarily attributed to a rise within the quantity
of lively college students with normal lesson consumption.
Price of Revenues
Price 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 whole service charges
paid to academics, primarily because of the lower of price per lesson pushed from price management.
Gross Revenue and Gross Margin
Gross revenue for 2021 was RMB1,608.6 million (US$252.4
million), a 9.2% enhance from RMB1,473.7 million for 2020.
Gross margin for 2021 was 74.2%, in contrast with
71.7% for 2020.
Working Bills
Complete working bills for 2021 have been RMB1,597.4
million (US$250.7 million), a 13.1% enhance 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 improvement bills and goodwill
and intangibles impairment.
Gross sales and advertising and marketing bills for 2021 have been
RMB1,062.5 million (US$166.7 million), a 2.6% enhance from RMB1,035.6 million for 2020. The rise was primarily because of enhance in
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 have been RMB1,056.3 million (US$165.8 million), a 2.9% lower from RMB1,026.8
million for 2020.
Product improvement bills for 2021 have been RMB178.8
million (US$28.1 million), a 9.8% enhance from RMB162.8 million for 2020. Excluding share-based compensation bills, non-GAAP product
improvement bills for 2021 have been RMB174.3 million (US$27.4 million), a ten.1% enhance from RMB158.4 million for 2020.
Normal and administrative bills for 2021 have been
RMB324.0 million (US$50.8 million), a 51.2% enhance from RMB214.2 million for 2020. The rise was primarily because of restructuring price
of RMB85.9 million throughout the yr. Excluding share-based compensation bills, non-GAAP normal and administrative bills for 2021
have been RMB307.5 million (US$48.3 million), a 53.2% enhance from RMB200.8 million for 2020. Excluding restructuring price and share-based
compensation bills, normal and administrative bills for 2021 would have been RMB221.6 million (US$34.8 million), a ten.4% 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 because of the 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 adjustments in working surroundings, 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 shopper companies from VAT from January 2020. The earnings obtained by
taxpayers from offering important companies 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 companies 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 companies
supplied by enterprises was RMB12.5 million and RMB11.1 million in 2021 and 2020, respectively.
Revenue 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 RMB23.7
million (US$3.7 million) and RMB50.7 million (US$8.0 million), representing working margin of 1.1% and a couple of.3% respectively.
Web earnings
Web earnings for 2021 was RMB105.7 million (US$16.6
million), in contrast with RMB147.0 million for 2020. Web margin for 2021 was 4.9%, in contrast with internet margin of seven.2% for 2020.
Non-GAAP internet earnings for 2021 was RMB132.7 million
(US$20.8 million), in contrast with RMB173.7 million for 2020. Non-GAAP internet margin for 2021 was 6.1%, in contrast with non-GAAP internet margin of
8.5% for 2020.
The favorable impression of coronavirus aid insurance policies
was RMB10.7 million in 2021. Excluding the favorable impression, internet earnings and non-GAAP internet earnings for 2021 would have been RMB95.0 million
(US$14.9 million) and RMB122.0 million (US$19.1 million), representing internet margin of 4.4% and 5.6% respectively.
Revenue tax advantages for the fourth quarter of
2021 was RMB46.1 million.
Fundamental internet earnings per ADS attributable to atypical
shareholders for 2021 was RMB4.82 (US$0.76), in contrast with primary internet earnings per ADS of RMB6.90 for 2020. Diluted internet earnings per ADS attributable
to atypical shareholders for 2021 was RMB4.66 (US$0.73), in contrast with diluted internet earnings per ADS of RMB6.46 for 2020. Every ADS represents
15 Class A atypical shares.
Non-GAAP primary internet earnings per ADS attributable
to atypical shareholders for 2021 was RMB6.06 (US$0.95), in contrast with non-GAAP primary internet earnings per ADS of RMB8.15 for 2020. Non-GAAP
diluted internet earnings per American depositary share (“ADS”) attributable to atypical shareholders for 2021 was RMB5.86 (US$0.92),
in contrast with non-GAAP diluted internet 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, primary internet earnings per ADS attributable to atypical shareholders for 2021 was
RMB4.33 (US$0.68) and non-GAAP primary internet earnings ADS attributable to atypical shareholders for 2021 was RMB5.57 (US$0.87), respectively.
Excluding the favorable impression, diluted internet earnings ADS attributable to atypical shareholders for 2021 was RMB4.19 (US$0.66) and non-GAAP
diluted internet 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 presently expects internet 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 is
primarily based 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 will depend on the long run improvement 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:
| United States (toll free): | 1-800-239-9838 |
| Worldwide: | 1-323-794-2551 |
| Mainland China: | 400-120-9101 |
| Hong Kong (toll free): | 800-961-105 |
| Hong Kong: | 852-3008-1527 |
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 Training Group.”
Moreover, a stay and archived webcast of the convention name will
be out there on the Firm’s investor relations web site at http://ir.51talk.com.
A replay of the convention name can be accessible till December3,
2021, by dialing the next phone numbers:
| United States (toll free): | 1-888-203-1112 |
| Worldwide: | 1-719-457-0820 |
| Replay Entry Code: | 8412792 |
About China On-line Training Group
China On-line Training Group (NYSE: COE) is a
main on-line schooling platform in China, with core experience in English schooling. The Firm’s mission is to make high quality schooling
accessible and reasonably priced. The Firm’s on-line and cell schooling platforms allow college students to take stay 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
financial system strategy, and employs scholar and trainer suggestions and knowledge 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 improvement bills, non-GAAP normal and administrative bills,
non-GAAP working bills, non-GAAP working earnings, non-GAAP internet earnings, non-GAAP internet earnings attributable to atypical shareholders,
and non-GAAP internet 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 is just not supposed to be thought of in
isolation or as an alternative to the monetary info ready and offered in accordance with GAAP. For extra info 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 info concerning its efficiency by excluding share-based compensation bills that will
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 higher transparency with respect to supplemental info 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 big recurring expense within the 51Talk’s
enterprise. Administration compensates for these limitations by offering particular info concerning the GAAP quantities excluded from every
non-GAAP measure. The accompanying desk on the finish of this press launch supplies extra particulars on the reconciliations between GAAP monetary
measures which are most immediately corresponding to non-GAAP monetary measures.
Change Charge Data
This announcement accommodates translations of sure
RMB quantities into U.S. {dollars} at a specified charge solely for the comfort of the reader. Until in any other case famous, all translations
from RMB to U.S. {dollars} are made at a charge 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.
Secure Harbor Assertion
This press launch accommodates statements that
could 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 might be recognized by terminology corresponding to
“will”, “expects”, “anticipates”, “goals”, “future”,
“intends”, “plans”, “believes”, “estimates”, “prone to” and related
statements. Amongst different issues, 51Talk’s quotations from administration on this announcement, in addition to 51Talk’s strategic
and operational plans, comprise forward-looking statements. 51Talk may make written or oral forward-looking statements in its
periodic stories 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 information, together with statements about 51Talk’s beliefs and expectations, are forward-looking
statements. Ahead-looking statements contain inherent dangers and uncertainties. Numerous components might trigger precise outcomes to
differ materially from these contained in any forward-looking assertion, together with however not restricted to the next: 51Talk’s
objectives and methods; 51Talk’s expectations concerning demand for and market acceptance of its model and platform;
51Talk’s capacity to retain and enhance its scholar enrollment; 51Talk’s capacity to supply new programs; 51Talk’s
capacity to have interaction, prepare and retain new academics; 51Talk’s future enterprise improvement, outcomes of operations and monetary
situation; 51Talk’s capacity to keep up and enhance infrastructure essential to function its schooling platform; competitors in
the net schooling trade in China; the anticipated progress of, and traits in, the markets for 51Talk’s course choices in
China; related authorities insurance policies and laws regarding 51Talk’s company construction, enterprise and trade; normal
financial and enterprise situation in China, the Philippines and elsewhere and assumptions underlying or associated to any of the
foregoing. Additional info concerning these and different dangers is included in 51Talk’s filings with the SEC. All info
supplied 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.
For investor and media inquiries, please contact:
China On-line Training Group
Investor Relations
ir@51talk.com
| CHINA ONLINE EDUCATION GROUP |
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In hundreds) |
| As of | ||||||||||||||||
| Dec. 31, | Sep.30, | Dec. 31, | Dec. 31, | |||||||||||||
| 2020 | 2021 | 2021 | 2021 | |||||||||||||
| RMB | RMB | RMB | US$ | |||||||||||||
| ASSETS | ||||||||||||||||
| Present property | ||||||||||||||||
| Money and money equivalents | 326,647 | 412,462 | 214,732 | 33,696 | ||||||||||||
| Restricted money | – | – | 50,550 | 7,932 | ||||||||||||
| Time deposits | 477,408 | 212,436 | 48,437 | 7,601 | ||||||||||||
| Brief-term investments | 509,636 | 610,843 | 577,970 | 90,696 | ||||||||||||
| Stock | 1,935 | 1,656 | 1,080 | 169 | ||||||||||||
| Pay as you go bills and different present property | 302,057 | 295,309 | 72,450 | 11,369 | ||||||||||||
| Complete present property | 1,617,683 | 1,532,706 | 965,219 | 151,463 | ||||||||||||
| Non-current property | ||||||||||||||||
| Property and gear, internet | 21,175 | 28,973 | 17,017 | 2,670 | ||||||||||||
| Intangible property, internet | 20,302 | 12,187 | 11,211 | 1,759 | ||||||||||||
| Goodwill | 4,223 | – | – | – | ||||||||||||
| Proper-of-use property | 98,001 | 57,312 | 36,907 | 5,792 | ||||||||||||
| Time deposits | 414,000 | 30,000 | 100,868 | 15,828 | ||||||||||||
| Deferred tax property | 10,268 | 23,694 | 56,868 | 8,924 | ||||||||||||
| Different non-current property | 23,896 | 17,572 | 5,496 | 862 | ||||||||||||
| Complete non-current property | 591,865 | 169,738 | 228,367 | 35,835 | ||||||||||||
| Complete property | 2,209,548 | 1,702,444 | 1,193,586 | 187,298 | ||||||||||||
| LIABILITIES | ||||||||||||||||
| AND SHAREHOLDERS’ DEFICIT | ||||||||||||||||
| Present liabilities | ||||||||||||||||
| Advances from college students | 2,718,776 | 2,261,052 | 1,766,032 | 277,129 | ||||||||||||
| Accrued bills and different present liabilities | 237,101 | 139,860 | 96,205 | 15,097 | ||||||||||||
| Lease legal responsibility | 42,949 | 25,680 | 19,400 | 3,044 | ||||||||||||
| Taxes payable | 19,288 | 26,001 | 28,027 | 4,398 | ||||||||||||
| Complete present liabilities | 3,018,114 | 2,452,593 | 1,909,664 | 299,668 | ||||||||||||
| Non-current liabilities | ||||||||||||||||
| Advances from college students | 2,270 | 1,438 | 1,126 | 177 | ||||||||||||
| Lease legal responsibility | 53,594 | 33,894 | 19,340 | 3,035 | ||||||||||||
| Different non-current liabilities | 2,508 | 2,723 | 1,547 | 243 | ||||||||||||
| Complete non-current liabilities | 58,372 | 38,055 | 22,013 | 3,455 | ||||||||||||
| Complete liabilities | 3,076,486 | 2,490,648 | 1,931,677 | 303,123 | ||||||||||||
| Complete shareholders’ deficit | (866,938 | ) | (788,204 | ) | (738,091 | ) | (115,825 | ) | ||||||||
| Complete liabilities and shareholders’ deficit | 2,209,548 | 1,702,444 | 1,193,586 | 187,298 | ||||||||||||
| CHINA ONLINE EDUCATION GROUP | ||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
| (In hundreds apart from variety of shares and per share knowledge) |
| For the three months ended | For the yr ended | |||||||||||||||||||||||||||
| Dec. 31, | Sep. 30, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| 2020 | 2021 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||||
| Web revenues | 535,074 | 573,621 | 412,773 | 64,773 | 2,054,095 | 2,166,549 | 339,979 | |||||||||||||||||||||
| Price of revenues | (146,134 | ) | (151,852 | ) | (88,276 | ) | (13,852 | ) | (580,417 | ) | (557,974 | ) | (87,558 | ) | ||||||||||||||
| Gross revenue | 388,940 | 421,769 | 324,497 | 50,921 | 1,473,678 | 1,608,575 | 252,421 | |||||||||||||||||||||
| Working bills | ||||||||||||||||||||||||||||
| Gross sales and advertising and marketing bills | (284,493 | ) | (191,909 | ) | (235,838 | ) | (37,008 | ) | (1,035,620 | ) | (1,062,523 | ) | (166,733 | ) | ||||||||||||||
| Product improvement bills | (44,577 | ) | (40,735 | ) | (15,260 | ) | (2,395 | ) | (162,829 | ) | (178,750 | ) | (28,050 | ) | ||||||||||||||
| Normal and administrative bills | (56,626 | ) | (104,907 | ) | (69,681 | ) | (10,934 | ) | (214,224 | ) | (323,968 | ) | (50,838 | ) | ||||||||||||||
| Goodwill and intangibles impairment | – | (31,780 | ) | (396 | ) | (62 | ) | – | (32,176 | ) | (5,049 | ) | ||||||||||||||||
| Complete working bills | (385,696 | ) | (369,331 | ) | (321,175 | ) | (50,399 | ) | (1,412,673 | ) | (1,597,417 | ) | (250,670 | ) | ||||||||||||||
| Different earnings | 7,766 | 5,962 | 552 | 87 | 43,414 | 23,223 | 3,644 | |||||||||||||||||||||
| Revenue from operations | 11,010 | 58,400 | 3,874 | 609 | 104,419 | 34,381 | 5,395 | |||||||||||||||||||||
| Curiosity earnings | 11,711 | (6,972 | ) | 5,735 | 900 | 38,508 | 21,120 | 3,314 | ||||||||||||||||||||
| Curiosity expense and different bills, internet | 193 | 785 | 7,683 | 1,206 | (66 | ) | 4,014 | 630 | ||||||||||||||||||||
| Revenue earlier than earnings tax bills | 22,914 | 52,213 | 17,292 | 2,715 | 142,861 | 59,515 | 9,339 | |||||||||||||||||||||
| Revenue tax advantages | 8,905 | 20,452 | 34,691 | 5,444 | 4,101 | 46,139 | 7,240 | |||||||||||||||||||||
| Web earnings attributable to atypical shareholders | 31,819 | 72,665 | 51,983 | 8,159 | 146,962 | 105,654 | 16,579 | |||||||||||||||||||||
| Weighted common variety of atypical shares utilized in computing primary earnings per share | 323,458,483 | 331,843,733 | 332,760,727 | 332,760,727 | 319,553,690 | 328,484,502 | 328,484,502 | |||||||||||||||||||||
| Weighted common variety of atypical shares utilized in computing diluted earnings per share | 344,354,904 | 338,390,638 | 337,351,518 | 337,351,518 | 341,503,118 | 339,937,677 | 339,937,677 | |||||||||||||||||||||
| CHINA ONLINE EDUCATION GROUP |
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
| (In hundreds apart from variety of shares and per share knowledge) |
| For the three months ended | For the yr ended | |||||||||||||||||||||||||||
| Dec. 31, | Sep.30, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| 2020 | 2021 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||||
| Web earnings per share attributable to atypical shareholders | ||||||||||||||||||||||||||||
| Fundamental | 0.10 | 0.22 | 0.16 | 0.02 | 0.46 | 0.32 | 0.05 | |||||||||||||||||||||
| Diluted | 0.09 | 0.21 | 0.15 | 0.02 | 0.43 | 0.31 | 0.05 | |||||||||||||||||||||
| Web earnings per ADS attributable to atypical shareholders | ||||||||||||||||||||||||||||
| Fundamental | 1.48 | 3.28 | 2.34 | 0.37 | 6.90 | 4.82 | 0.76 | |||||||||||||||||||||
| Diluted | 1.39 | 3.22 | 2.31 | 0.36 | 6.46 | 4.66 | 0.73 | |||||||||||||||||||||
| Complete earnings: | ||||||||||||||||||||||||||||
| Web earnings | 31,819 | 72,665 | 51,983 | 8,159 | 146,962 | 105,654 | 16,579 | |||||||||||||||||||||
| Different complete earnings | ||||||||||||||||||||||||||||
| International foreign money translation changes | (14,319 | ) | (290 | ) | (4,921 | ) | (772 | ) | (21,087 | ) | (9,203 | ) | (1,444 | ) | ||||||||||||||
| Complete complete earnings | 17,500 | 72,375 | 47,062 | 7,387 | 125,875 | 96,451 | 15,135 | |||||||||||||||||||||
| Share-based compensation bills are included within the working bills as follows: | ||||||||||||||||||||||||||||
| Gross sales and advertising and marketing bills | (1,875 | ) | (872 | ) | (394 | ) | (62 | ) | (8,835 | ) | (6,186 | ) | (971 | ) | ||||||||||||||
| Product improvement bills | (1,281 | ) | (1,399 | ) | 298 | 47 | (4,477 | ) | (4,434 | ) | (696 | ) | ||||||||||||||||
| Normal and administrative bills | (3,636 | ) | (3,759 | ) | (2,933 | ) | (460 | ) | (13,422 | ) | (16,430 | ) | (2,578 | ) | ||||||||||||||
| CHINA ONLINE EDUCATION GROUP |
| Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures |
| (In hundreds apart from variety of shares and per share knowledge) |
| For the three months ended |
For the yr ended | |||||||||||||||||||||||||||
| Dec. 31, | Sep.30, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| 2020 | 2021 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||||
| Gross sales and advertising and marketing bills | (284,493 | ) | (191,909 | ) | (235,838 | ) | (37,008 | ) | (1,035,620 | ) | (1,062,523 | ) | (166,733 | ) | ||||||||||||||
| Much less: Share-based compensation bills | (1,875 | ) | (872 | ) | (394 | ) | (62 | ) | (8,835 | ) | (6,186 | ) | (971 | ) | ||||||||||||||
| Non-GAAP gross sales and advertising and marketing bills | (282,618 | ) | (191,037 | ) | (235,444 | ) | (36,946 | ) | (1,026,785 | ) | (1,056,337 | ) | (165,762 | ) | ||||||||||||||
| Product improvement bills | (44,577 | ) | (40,735 | ) | (15,260 | ) | (2,395 | ) | (162,829 | ) | (178,750 | ) | (28,050 | ) | ||||||||||||||
| Much less: Share-based compensation bills | (1,281 | ) | (1,399 | ) | 298 | 47 | (4,477 | ) | (4,434 | ) | (696 | ) | ||||||||||||||||
| Non-GAAP product improvement bills | (43,296 | ) | (39,336 | ) | (15,558 | ) | (2,442 | ) | (158,352 | ) | (174,316 | ) | (27,354 | ) | ||||||||||||||
| Normal and administrative bills | (56,626 | ) | (104,907 | ) | (69,681 | ) | (10,934 | ) | (214,224 | ) | (323,968 | ) | (50,838 | ) | ||||||||||||||
| Much less: Share-based compensation bills | (3,636 | ) | (3,759 | ) | (2,933 | ) | (460 | ) | (13,422 | ) | (16,430 | ) | (2,578 | ) | ||||||||||||||
| Non-GAAP normal and administrative bills | (52,990 | ) | (101,148 | ) | (66,748 | ) | (10,474 | ) | (200,802 | ) | (307,538 | ) | (48,260 | ) | ||||||||||||||
| Goodwill and intangibles impairment | – | (31,780 | ) | (396 | ) | (62 | ) | – | (32,176 | ) | (5,049 | ) | ||||||||||||||||
| Much less: Share-based compensation bills | – | – | – | – | – | – | ||||||||||||||||||||||
| Non-GAAP goodwill and intangibles impairment | – | (31,780 | ) | (396 | ) | (62 | ) | – | (32,176 | ) | (5,049 | ) | ||||||||||||||||
| Working bills | (385,696 | ) | (369,331 | ) | (321,175 | ) | (50,399 | ) | (1,412,673 | ) | (1,597,417 | ) | (250,670 | ) | ||||||||||||||
| Much less: Share-based compensation bills | (6,792 | ) | (6,030 | ) | (3,029 | ) | (475 | ) | (26,734 | ) | (27,050 | ) | (4,245 | ) | ||||||||||||||
| Non-GAAP working bills | (378,904 | ) | (363,301 | ) | (318,146 | ) | (49,924 | ) | (1,385,939 | ) | (1,570,367 | ) | (246,425 | ) | ||||||||||||||
| Revenue from operations | 11,010 | 58,400 | 3,874 | 609 | 104,419 | 34,381 | 5,395 | |||||||||||||||||||||
| Much less: Share-based compensation bills | (6,792 | ) | (6,030 | ) | (3,029 | ) | (475 | ) | (26,734 | ) | (27,050 | ) | (4,245 | ) | ||||||||||||||
| Non-GAAP earnings from operations | 17,802 | 64,430 | 6,903 | 1,084 | 131,153 | 61,431 | 9,640 | |||||||||||||||||||||
| CHINA ONLINE EDUCATION GROUP |
| Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures |
| (In hundreds apart from variety of shares and per share knowledge) |
| For the three months ended | For the yr ended | |||||||||||||||||||||||||||
| Dec. 31, | Sep.30, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| 2020 | 2021 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||||
| Revenue tax advantages | 8,905 | 20,452 | 34,691 | 5,444 | 4,101 | 46,139 | 7,240 | |||||||||||||||||||||
| Much less: Tax impression of Share-based compensation bills | – | – | – | – | – | – | – | |||||||||||||||||||||
| Non-GAAP earnings tax advantages | 8,905 | 20,452 | 34,691 | 5,444 | 4,101 | 46,139 | 7,240 | |||||||||||||||||||||
| Web earnings attributable to atypical shareholders | 31,819 | 72,665 | 51,983 | 8,159 | 146,962 | 105,654 | 16,579 | |||||||||||||||||||||
| Add again: Share-based compensation bills, internet of tax | 6,792 | 6,030 | 3,029 | 475 | 26,734 | 27,050 | 4,245 | |||||||||||||||||||||
| Non-GAAP internet earnings attributable to atypical shareholders | 38,611 | 78,695 | 55,012 | 8,634 | 173,696 | 132,704 | 20,824 | |||||||||||||||||||||
| Weighted common variety of atypical shares utilized in computing primary earnings per share | 323,458,483 | 331,843,733 | 332,760,727 | 332,760,727 | 319,553,690 | 328,484,502 | 328,484,502 | |||||||||||||||||||||
| Weighted common variety of atypical shares utilized in computing diluted earnings per share | 344,354,904 | 338,390,638 | 337,351,518 | 337,351,518 | 341,503,118 | 339,937,677 | 339,937,677 | |||||||||||||||||||||
| Non-GAAP internet earnings per share attributable to atypical shareholders | ||||||||||||||||||||||||||||
| primary | 0.12 | 0.24 | 0.17 | 0.03 | 0.54 | 0.40 | 0.06 | |||||||||||||||||||||
| diluted | 0.11 | 0.23 | 0.16 | 0.03 | 0.51 | 0.39 | 0.06 | |||||||||||||||||||||
| Non-GAAP internet earnings per ADS attributable to atypical shareholders | ||||||||||||||||||||||||||||
| primary | 1.79 | 3.56 | 2.48 | 0.39 | 8.15 | 6.06 | 0.95 | |||||||||||||||||||||
| diluted | 1.68 | 3.49 | 2.45 | 0.38 | 7.63 | 5.86 | 0.92 | |||||||||||||||||||||
Exhibit 99.2
China On-line Training Group Publicizes
Receipt of a Non-Binding Proposal to Purchase Mainland China Enterprise of the Firm
BEIJING, March 24, 2022 — China On-line
Training Group (“51Talk” or the “Firm”) (NYSE: COE), a number one on-line schooling platform in China, with core
experience in English schooling, introduced that its board of administrators (the “Board”) has obtained a non-binding proposal letter
(the “Proposal Letter”), dated March 24, 2022, from Mr. Jiajia Jack Huang, chairman of the Board and chief govt officer
of the Firm (“Mr. Huang”), stating that “Contemplating the more and more stringent restrictions of the relevant PRC
legal guidelines and laws on the enterprise of the Firm and the opposed impact arising from it, ” he proposed to amass all the
Firm’s companies in China Mainland, together with all related liabilities and property. Such companies embody Okay-12 English classes
taught by overseas academics, all-round proficiency (often known as SuYang) classes taught by Chinese language academics, and post-secondary English
classes taught by overseas academics (collectively, the “Mainland Enterprise”), by buying all the fairness pursuits of China
On-line Training (HK) restricted ( “COE HK”), its subsidiaries and the variable curiosity entities managed by the Firm (collectively,
the “Goal Firms”). The proposed buy worth for the Goal Firms is US$1 as a result of Mr. Huang believes that the
whole enterprise worth of the Goal Firms is equal to the present whole liabilities and obligations (together with advances from
college students in Mainland China) of the Goal Firms.
The Firm’s abroad enterprise exterior
China Mainland and its related liabilities and property should not a part of the proposed transaction and would be the Firm’s strategic
focus going ahead.
The Board has fashioned a particular committee to guage
the proposed transaction. The particular committee contains Mr. Roy Rong and Mr. Xiaoguang Wu, each impartial administrators. Mr. Roy Rong was
appointed the chairman of the particular committee by the Board.
There might be no assurance that (i) the Proposal
Letter won’t be withdrawn, (ii) any definitive settlement can be entered into; (iii) the proposed transaction or some other related
transaction can be accredited or consummated. The Firm doesn’t undertake any obligation to supply any updates with respect to this
or some other transaction, besides as required beneath relevant legal guidelines.
About China On-line Training Group
China On-line Training 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 reasonably priced.
The Firm’s on-line and cell schooling platforms allow college students to take stay 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 financial system strategy, and employs scholar
and trainer suggestions and knowledge analytics to ship a customized studying expertise to its college students.
For extra info, please go to http://ir.51talk.com.
For investor and media inquiries, please contact:
China On-line Training Group
Investor Relations
ir@51talk.com