BEIJING, August 22, 2016 /PRNewswire/ -- Ambow Education Holding Ltd. ("Ambow" or the "Company"), a leading national provider of educational and career enhancement services in China, today announced unaudited financial and operating results for three-month and six-month periods ended June 30, 2016.
"Our focus on excellence and seasoned operating experience produced strong operating and financial results in the second quarter and first half of 2016, highlighted by a significant year-over-year decrease in operating expenses for the second quarter and solid growth in our Better Schools and Better Jobs business segments for the first half of the year," commented Dr. Jin Huang, Ambow's President and Chief Executive Officer. "Our commitment to optimizing educational outcomes through innovative technologies has also been recognized by the United States Patent and Trademark Office with a patent award for our innovative Adaptive Computer-Assisted Learning System and Method platform. This is a milestone for us as we continue to enhance our unique learning engine while tirelessly pursuing our founding vision to harness the power of technology to provide better and more effective student-centric educational and career enhancement services."
"Furthermore, in the second quarter we continued to show leadership in application-oriented education by successfully organizing the Application-Oriented University Development and Presidents' Forum, which drew nationwide participation. With education industry dynamics rapidly shifting toward career enhancement, we are well positioned as the industry forerunner with our unique Ambow University model and adaptive learning methods. Moving forward, we remain committed in our drive to help students achieve outstanding academic results and develop successful careers in the workplace," added Dr. Huang.
Kia Jing Tan, Chief Financial Officer, added, "In the second quarter, our diligent cost control efforts demonstrated impressive results with operating expenses recording a 34.2% decrease, excluding share-based compensation, from the same quarter last year. This decrease was largely driven by continued cost-saving initiatives. We also recorded seasonally strong revenue results for the second quarter with net revenues reaching RMB122.1 million, a 10.6% increase from the year-ago period. With notable improvement in our operating efficiencies, continuing solid results from our Better Schools and Better Jobs business segments, and strong cash generation trends, we look forward to carrying this strong momentum into the second half of 2016."
"During the second quarter, we continued to march forward implementing our Enterprise Resource Planning system into our major business units and are on-track for Company-wide integration by year-end. Together with our enhanced Standard Operating Procedure and transparent Vendor Evaluation System, these strategic initiatives help us lay a solid and systematic foundation to further improve our operating efficiencies and support our unique cloud-based Ambow platform," concluded Chiao-Ling Hsu, Chief Operating Officer.
Financial Highlights For The Three Months Ended June 30, 2016
Financial Highlights For The Six Months Ended June 30, 2016
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are based on the effective exchange rate of 6.6459 as of June 30, 2016.
About Ambow Education Holding Ltd.
Ambow Education Holding Ltd. is a leading national provider of educational and career enhancement services in China, offering high-quality, individualized services and products. With its extensive network of regional service hubs complemented by a dynamic proprietary learning platform and distributors, Ambow provides its services and products to students in 30 out of the 31 provinces and autonomous regions within China.
Follow us on Twitter: @Ambow_Education
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the third quarter and full year 2016 and quotations from management in this announcement, as well as Ambow's strategic and operational plans, contain forward-looking statements. Ambow may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements, including but not limited to the following: the Company's goals and strategies, expansion plans, the expected growth of the content and application delivery services market, the Company's expectations regarding keeping and strengthening its relationships with its customers, and the general economic and business conditions in the regions where the Company provides its solutions and services. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Ambow undertakes no duty to update such information, except as required under applicable law.
For investor and media inquiries please contact:
Ambow Education Holding Ltd.
Tel: +86-10-6206-8104
The Piacente Group | Investor Relations
Tel: +1 212-481-2050 or +86 10-6535-0147
Email: ambow@tpg-ir.com
- Tables to Follow -
AMBOW EDUCATION HOLDING LTD. UNAUDITED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share and per share data) |
|||||||
As of June 30, |
As of December 31, |
||||||
2016 |
2015 |
||||||
US$ |
RMB |
RMB |
|||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
21,525 |
143,055 |
246,303 |
||||
Restricted cash |
354 |
2,350 |
2,050 |
||||
Term deposits |
173 |
1,150 |
1,150 |
||||
Short term investments, available for sale |
34,952 |
232,289 |
103,602 |
||||
Short term investments, held to maturity |
18,809 |
125,000 |
151,790 |
||||
Accounts receivable, net |
2,664 |
17,704 |
11,278 |
||||
Amounts due from related parties |
277 |
1,838 |
1,847 |
||||
Prepaid and other current assets |
23,583 |
156,732 |
156,104 |
||||
Consideration receivable |
1,279 |
8,500 |
8,500 |
||||
Total current assets |
103,616 |
688,618 |
682,624 |
||||
Non-current assets: |
|||||||
Property and equipment, net |
13,660 |
90,784 |
94,982 |
||||
Land use rights, net |
288 |
1,915 |
1,937 |
||||
Intangible assets, net |
14,993 |
99,639 |
103,394 |
||||
Goodwill |
13,018 |
86,519 |
85,988 |
||||
Deferred tax assets, net |
4,987 |
33,141 |
33,903 |
||||
Other non-current assets, net |
807 |
5,365 |
5,097 |
||||
Total non-current assets |
47,753 |
317,363 |
325,301 |
||||
Total assets |
151,369 |
1,005,981 |
1,007,925 |
||||
LIABILITIES |
|||||||
Current liabilities: |
|||||||
Short-term borrowings * |
- |
- |
2,300 |
||||
Deferred revenue * |
18,538 |
123,203 |
115,886 |
||||
Accounts payable * |
3,989 |
26,506 |
28,391 |
||||
Accrued and other liabilities * |
54,433 |
361,755 |
367,357 |
||||
Income taxes payable * |
48,502 |
322,338 |
317,785 |
||||
Amounts due to related parties * |
1,153 |
7,662 |
7,662 |
||||
Total current liabilities |
126,615 |
841,464 |
839,381 |
||||
Non-current liabilities: |
|||||||
Deferred tax liabilities * |
3,679 |
24,451 |
25,721 |
||||
Total liabilities |
130,294 |
865,915 |
865,102 |
||||
EQUITY |
|||||||
Preferred shares |
|||||||
(US$ 0.003par value;1,666,667 shares authorized, |
- |
- |
- |
||||
Ordinary shares |
|||||||
(US$0.003 par value; 40,000,000 and 40,000,000 |
109 |
722 |
717 |
||||
Additional paid-in capital |
519,004 |
3,449,251 |
3,445,408 |
||||
Statutory reserve |
12,189 |
81,005 |
81,005 |
||||
Accumulated deficit |
(511,093) |
(3,396,671) |
(3,388,447) |
||||
Accumulated other comprehensive income |
866 |
5,756 |
5,113 |
||||
Total Ambow Education Holding Ltd.'s equity |
21,075 |
140,063 |
143,796 |
||||
Non-controlling interests |
- |
3 |
(973) |
||||
Total equity |
21,075 |
140,066 |
142,823 |
||||
Total liabilities and equity |
151,369 |
1,005,981 |
1,007,925 |
||||
* All of the VIE's assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of |
AMBOW EDUCATION HOLDING LTD. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (All amounts in thousands, except for share and per share data) |
|||||||||||
For the six months ended June 30, |
For the three months ended June 30, |
||||||||||
2016 |
2016 |
2015 |
2016 |
2016 |
2015 |
||||||
US$ |
RMB |
RMB |
US$ |
RMB |
RMB |
||||||
NET REVENUES |
|||||||||||
Educational program and |
28,656 |
190,448 |
184,460 |
18,374 |
122,113 |
110,427 |
|||||
COST OF REVENUES |
|||||||||||
Educational program and services |
(15,922) |
(105,819) |
(112,145) |
(9,430) |
(62,673) |
(59,799) |
|||||
GROSS PROFIT |
12,734 |
84,629 |
72,315 |
8,944 |
59,440 |
50,628 |
|||||
Operating expenses: |
|||||||||||
Selling and marketing |
(3,197) |
(21,245) |
(28,500) |
(1,595) |
(10,601) |
(14,548) |
|||||
General and administrative |
(9,606) |
(63,842) |
(134,134) |
(4,873) |
(32,383) |
(75,229) |
|||||
Research and development |
(578) |
(3,839) |
(3,325) |
(293) |
(1,944) |
(2,107) |
|||||
Total operating expenses |
(13,381) |
(88,926) |
(165,959) |
(6,761) |
(44,928) |
(91,884) |
|||||
OPERATING INCOME |
(647) |
(4,297) |
(93,644) |
2,183 |
14,512 |
(41,256) |
|||||
OTHER INCOME |
|||||||||||
Interest income (expense), net |
650 |
4,322 |
(56,885) |
236 |
1,568 |
952 |
|||||
Foreign exchange gain (loss), |
12 |
77 |
(809) |
2 |
13 |
(20) |
|||||
Other income (expense), net |
(599) |
(3,984) |
4,646 |
(148) |
(985) |
5,067 |
|||||
Gain on sale of investment |
37 |
246 |
- |
20 |
134 |
- |
|||||
Total other income (expenses) |
100 |
661 |
(53,048) |
110 |
730 |
5,999 |
|||||
INCOME (LOSS) BEFORE |
(547) |
(3,636) |
(146,692) |
2,293 |
15,242 |
(35,257) |
|||||
Income tax benefit (expense) |
(664) |
(4,414) |
6,904 |
(676) |
(4,495) |
6,630 |
|||||
INCOME (LOSS) FROM |
(1,211) |
(8,050) |
(139,788) |
1,617 |
10,747 |
(28,627) |
|||||
Income from and gain on sale |
- |
- |
344,099 |
- |
- |
347,449 |
|||||
NET INCOME (LOSS) |
(1,211) |
(8,050) |
204,311 |
1,617 |
10,747 |
318,822 |
|||||
Less: Net income attributable |
26 |
174 |
542 |
(13) |
(88) |
379 |
|||||
Less: Net income attributable |
- |
- |
11 |
- |
- |
- |
|||||
NET INCOME (LOSS) |
(1,237) |
(8,224) |
203,758 |
1,630 |
10,835 |
318,443 |
|||||
Net income (loss) from |
(0.03) |
(0.21) |
(4.44) |
0.04 |
0.28 |
(0.77) |
|||||
Net income (loss) from |
(0.03) |
(0.21) |
(4.44) |
0.04 |
0.28 |
(0.77) |
|||||
Net income from discontinued |
- |
- |
10.88 |
- |
- |
9.20 |
|||||
Weighted average shares used |
38,340,092 |
38,340,092 |
31,617,431 |
38,391,139 |
38,391,139 |
37,780,846 |
|||||
Weighted average shares used |
38,340,092 |
38,340,092 |
31,617,431 |
39,250,281 |
39,250,281 |
37,780,846 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ambow-education-announces-second-quarter-and-first-half-2016-unaudited-financial-results-300316358.html