BEIJING, Sept. 30, 2022 /PRNewswire/ -- Ambow Education Holding Ltd. ("Ambow" or the "Company") (NYSE American: AMBO), a leading cross-border career educational and technology service provider, today announced its unaudited consolidated financial and operating results for the three-month and six-month periods ended June 30, 2022.
"In the first half of 2022, we remained focused on our core business strategy encompassing premium technology-driven educational and career enhancement service offerings amid the complex macro environment," noted Dr. Jin Huang, Ambow's President and Chief Executive Officer. "As we methodologically pave the way to drive our career-focused education business roadmap, we recorded net revenues of RMB 204.0 million in the first half of 2022."
"We remain dedicated to refining and innovating our proprietary technologies to empower our products and services. As a result, we are delighted to see our high-quality, technology-empowered offerings garner increasing recognition and popularity in the market. Additionally, we deepened our ongoing commitment to facilitating the national strategy of improving collaboration between educational institutions and industries to coordinate and propel talent development throughout China. As a veteran with a track record of over two decades in the education technology space, Ambow has built out a far-reaching cooperative network comprised of universities, institutions and commercial enterprises. Drawing on this powerful network alongside our innovative, superior products and services, we are well positioned to address educators and learners' critical demands in the evolving landscape while promoting the efficient integration of academia and business, as well as fostering a balance in talent supply and demand, especially in the technical fields."
"Moving through the second half of 2022, we will continue strengthening our competitive edge by further advancing our technologies, products and services, actively adapting ourselves to market dynamics and capturing new growth opportunities ahead. As always, we are committed to creating long-term sustainable value for all of our stakeholders," concluded Dr. Huang.
Second Quarter 2022 Financial Highlights
First Six Months 2022 Financial Highlights
The Company's financial and operating results for the second quarter and first half of 2022 can also be found on its Report of Foreign Private Issuer on Form 6-K, to be furnished with the U.S. Securities and Exchange Commission at www.sec.gov.
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 amounts translated from RMB to U.S. dollars for the second quarter and first half of 2022 are based on the effective exchange rate of 6.6981 as of June 30, 2022; all amounts translated from RMB to U.S. dollars for the second quarter and first half of 2021 are based on the effective exchange rate of 6.4566 as of June 30, 2021; all amounts translated from RMB to U.S. dollars as of December 31, 2021, are based on the effective exchange rate of 6.3726 as of December 30, 2021. The exchange rates were according to the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. Fluctuations in financial highlights are based on RMB amounts.
About Ambow Education Holding Ltd.
Ambow Education Holding Ltd. is a leading cross-border career educational and technology service provider, 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 China and the United States of America.
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 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: +86-10-6206-8000
The Piacente Group | Investor Relations
Tel: +1-212-481-2050 or +86-10-6508-0677
E-mail: ambow@tpg-ir.com
AMBOW EDUCATION HOLDING LTD. |
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
(All amounts in thousands, except for share and per share data) |
||||||
As of June 30, |
As of December 31, |
|||||
2022 |
2021 |
|||||
US$ |
RMB |
RMB |
||||
Unaudited |
||||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
9,230 |
61,824 |
157,399 |
|||
Restricted cash |
347 |
2,321 |
1,823 |
|||
Short-term investments, available for sale |
2,763 |
18,509 |
15,764 |
|||
Short-term investments, held to maturity |
8,958 |
60,000 |
2,000 |
|||
Accounts receivable, net |
2,529 |
16,939 |
25,602 |
|||
Amounts due from related parties |
453 |
3,037 |
3,103 |
|||
Prepaid and other current assets, net |
16,442 |
110,127 |
109,890 |
|||
Assets classified as held for sale |
21,939 |
146,951 |
132,724 |
|||
Total current assets |
62,661 |
419,708 |
448,305 |
|||
Non-current assets: |
||||||
Property and equipment, net |
14,664 |
98,218 |
101,915 |
|||
Intangible assets, net |
4,478 |
29,993 |
29,986 |
|||
Goodwill |
3,271 |
21,907 |
21,907 |
|||
Deferred tax assets, net |
— |
— |
31 |
|||
Operating lease right-of-use asset |
31,240 |
209,246 |
220,404 |
|||
Finance lease right-of-use asset |
739 |
4,950 |
5,250 |
|||
Other non-current assets |
19,385 |
129,845 |
142,364 |
|||
Total non-current assets |
73,777 |
494,159 |
521,857 |
|||
Total assets |
136,438 |
913,867 |
970,162 |
|||
LIABILITIES |
||||||
Current liabilities: |
||||||
Short-term borrowings * |
4,340 |
29,070 |
10,103 |
|||
Deferred revenue * |
5,787 |
38,757 |
95,036 |
|||
Accounts payable * |
4,140 |
27,730 |
29,466 |
|||
Accrued and other liabilities * |
34,220 |
229,209 |
216,399 |
|||
Income taxes payable, current * |
23,270 |
155,864 |
116,341 |
|||
Amounts due to related parties * |
767 |
5,135 |
3,793 |
|||
Operating lease liability, current * |
7,293 |
48,846 |
48,923 |
|||
Liabilities classified as held for sale * |
11,773 |
78,857 |
83,161 |
|||
Total current liabilities |
91,590 |
613,468 |
603,222 |
|||
Non-current liabilities: |
||||||
Deferred tax liabilities, net * |
1,455 |
9,748 |
- |
|||
Other non-current liabilities * |
3 |
20 |
96 |
|||
Income taxes payable, non-current * |
4,412 |
29,553 |
21,475 |
|||
Operating lease liability, non-current * |
29,544 |
197,889 |
198,687 |
|||
Total non-current liabilities |
35,414 |
237,210 |
220,258 |
|||
Total liabilities |
127,004 |
850,678 |
823,480 |
|||
EQUITY |
||||||
Preferred shares |
||||||
(US$0.003 par value;1,666,667 shares authorized, nil issued and outstanding as of June 30, 2022 and December 31, |
— |
— |
— |
|||
Class A Ordinary shares |
||||||
(US$0.003 par value; 66,666,667 and 66,666,667 shares authorized, 47,398,276 and 41,973,276 shares issued and |
135 |
902 |
795 |
|||
Class C Ordinary shares |
||||||
(US$0.003 par value; 8,333,333 and 8,333,333 shares authorized, 4,708,415 and 4,708,415 shares issued and |
13 |
90 |
90 |
|||
Additional paid-in capital |
530,449 |
3,553,000 |
3,545,955 |
|||
Statutory reserve |
573 |
3,837 |
3,837 |
|||
Accumulated deficit |
(523,251) |
(3,504,789) |
(3,415,771) |
|||
Accumulated other comprehensive income |
1,498 |
10,035 |
11,291 |
|||
Total Ambow Education Holding Ltd.'s equity |
9,417 |
63,075 |
146,197 |
|||
Non-controlling interests |
17 |
114 |
485 |
|||
Total equity |
9,434 |
63,189 |
146,682 |
|||
Total liabilities and equity |
136,438 |
913,867 |
970,162 |
|||
* All of the VIE's assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of |
AMBOW EDUCATION HOLDING LTD. |
||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
||||||||||||
(All amounts in thousands, except for share and per share data) |
||||||||||||
For the six months ended June 30, |
For the three months ended June 30, |
|||||||||||
2022 |
2022 |
2021 |
2022 |
2022 |
2021 |
|||||||
US$ |
RMB |
RMB |
US$ |
RMB |
RMB |
|||||||
NET REVENUES |
||||||||||||
Educational program and services |
29,697 |
198,912 |
301,104 |
15,732 |
105,373 |
171,590 |
||||||
Intelligent program and services |
766 |
5,131 |
752 |
680 |
4,555 |
661 |
||||||
Total net revenues |
30,463 |
204,043 |
301,856 |
16,412 |
109,928 |
172,251 |
||||||
COST OF REVENUES |
||||||||||||
Educational program and services |
(18,571) |
(124,389) |
(179,375) |
(9,222) |
(61,767) |
(95,536) |
||||||
Intelligent program and services |
(521) |
(3,489) |
(1,930) |
(461) |
(3,088) |
(786) |
||||||
Total cost of revenues |
(19,092) |
(127,878) |
(181,305) |
(9,683) |
(64,855) |
(96,322) |
||||||
GROSS PROFIT |
11,371 |
76,165 |
120,551 |
6,729 |
45,073 |
75,929 |
||||||
Operating expenses: |
||||||||||||
Selling and marketing |
(2,576) |
(17,253) |
(24,422) |
(1,121) |
(7,511) |
(13,422) |
||||||
General and administrative |
(13,443) |
(90,043) |
(85,357) |
(8,413) |
(56,349) |
(38,412) |
||||||
Research and development |
(986) |
(6,603) |
(5,602) |
(463) |
(3,101) |
(3,757) |
||||||
Total operating expenses |
(17,005) |
(113,899) |
(115,381) |
(9,997) |
(66,961) |
(55,591) |
||||||
OPERATING (LOSS) INCOME |
(5,634) |
(37,734) |
5,170 |
(3,268) |
(21,888) |
20,338 |
||||||
OTHER INCOME (EXPENSES) |
||||||||||||
Interest income, net |
534 |
3,574 |
4,008 |
258 |
1,726 |
1,948 |
||||||
Foreign exchange (loss) gain, net |
(6) |
(39) |
203 |
6 |
43 |
(12) |
||||||
Other income (expense), net |
163 |
1,094 |
(1,180) |
118 |
793 |
(240) |
||||||
Gain from deregistration of subsidiaries |
44 |
295 |
1,325 |
14 |
91 |
1,181 |
||||||
Loss on disposal of subsidiaries |
(168) |
(1,124) |
— |
(168) |
(1,124) |
— |
||||||
Gain on sale of investment available for sale |
119 |
799 |
1,221 |
119 |
799 |
474 |
||||||
Total other income |
686 |
4,599 |
5,577 |
347 |
2,328 |
3,351 |
||||||
(LOSS) INCOME BEFORE INCOME TAX |
(4,948) |
(33,135) |
10,747 |
(2,921) |
(19,560) |
23,689 |
||||||
Income tax expense |
(8,517) |
(57,050) |
(3,155) |
(7,876) |
(52,756) |
(1,526) |
||||||
NET (LOSS) INCOME |
(13,465) |
(90,185) |
7,592 |
(10,797) |
(72,316) |
22,163 |
||||||
Less: Net loss attributable to non-controlling |
(174) |
(1,167) |
(519) |
(130) |
(868) |
(277) |
||||||
NET (LOSS) INCOME ATTRIBUTABLE |
(13,291) |
(89,018) |
8,111 |
(10,667) |
(71,448) |
22,440 |
||||||
NET (LOSS) INCOME |
(13,465) |
(90,185) |
7,592 |
(10,797) |
(72,316) |
22,163 |
||||||
OTHER COMPREHENSIVE (LOSS) |
||||||||||||
Foreign currency translation adjustments |
(161) |
(1,079) |
(417) |
(87) |
(584) |
(532) |
||||||
Unrealized gains on short-term investments |
||||||||||||
Unrealized holding gains arising during |
74 |
497 |
1,075 |
33 |
224 |
493 |
||||||
Less: reclassification adjustment for gains |
101 |
674 |
852 |
101 |
674 |
308 |
||||||
Other comprehensive loss |
(188) |
(1,256) |
(194) |
(155) |
(1,034) |
(347) |
||||||
TOTAL COMPREHENSIVE (LOSS) |
(13,653) |
(91,441) |
7,398 |
(10,952) |
(73,350) |
21,816 |
||||||
Net (loss) income per share – basic and diluted |
(0.28) |
(1.90) |
0.17 |
(0.23) |
(1.53) |
0.48 |
||||||
Weighted average shares used in calculating |
46,756,368 |
46,756,368 |
46,642,280 |
46,825,968 |
46,825,968 |
46,648,495 |
AMBOW EDUCATION HOLDING LTD. |
||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
||||||||||||||||||||
(All amounts in thousands, except for share and per share data) |
||||||||||||||||||||
Attributable to Ambow Education Holding Ltd.'s Equity |
||||||||||||||||||||
Accumulated |
||||||||||||||||||||
Class A Ordinary |
Class C Ordinary |
Additional |
other |
Non- |
||||||||||||||||
shares |
shares |
paid-in |
Statutory |
Accumulated |
comprehensive |
controlling |
Total |
|||||||||||||
Shares |
Amount |
Shares |
Amount |
capital |
reserves |
deficit |
income |
interest |
Equity |
|||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||
Balance as of January 1, |
41,973,276 |
795 |
4,708,415 |
90 |
3,545,955 |
3,837 |
(3,415,771) |
11,291 |
485 |
146,682 |
||||||||||
Share-based compensation |
— |
— |
— |
— |
214 |
— |
— |
— |
— |
214 |
||||||||||
Issuance of ordinary shares |
12,500 |
0 |
— |
— |
(0) |
— |
— |
— |
— |
— |
||||||||||
Foreign currency translation |
— |
— |
— |
— |
— |
— |
— |
(495) |
— |
(495) |
||||||||||
Unrealized gain on |
— |
— |
— |
— |
— |
— |
— |
273 |
— |
273 |
||||||||||
Capital injection from non- |
— |
— |
— |
— |
— |
— |
— |
— |
101 |
101 |
||||||||||
Net loss |
— |
— |
— |
— |
— |
— |
(17,570) |
— |
(299) |
(17,869) |
||||||||||
Balance as of March 31, |
41,985,776 |
795 |
4,708,415 |
90 |
3,546,169 |
3,837 |
(3,433,341) |
11,069 |
287 |
128,906 |
||||||||||
Share-based compensation |
— |
— |
— |
— |
226 |
— |
— |
— |
— |
226 |
||||||||||
Issuance of ordinary shares |
5,412,500 |
107 |
— |
— |
6,605 |
— |
— |
— |
— |
6,712 |
||||||||||
Foreign currency translation |
— |
— |
— |
— |
— |
— |
— |
(584) |
— |
(584) |
||||||||||
Reversal of unrealized gain |
— |
— |
— |
— |
— |
— |
— |
(450) |
— |
(450) |
||||||||||
Disposal of subsidiaries |
— |
— |
— |
— |
— |
— |
— |
— |
645 |
645 |
||||||||||
Capital injection from non- |
— |
— |
— |
— |
— |
— |
— |
— |
50 |
50 |
||||||||||
Net loss |
— |
— |
— |
— |
— |
— |
(71,448) |
— |
(868) |
(72,316) |
||||||||||
Balance as of June 30, 2022 |
47,398,276 |
902 |
4,708,415 |
90 |
3,553,000 |
3,837 |
(3,504,789) |
10,035 |
114 |
63,189 |
||||||||||
Balance as of January 1, |
41,923,276 |
794 |
4,708,415 |
90 |
3,545,073 |
4,210 |
(3,419,146) |
12,101 |
(1,968) |
141,154 |
||||||||||
Share-based compensation |
— |
— |
— |
— |
219 |
— |
— |
— |
— |
219 |
||||||||||
Issuance of ordinary shares |
12,500 |
0 |
— |
— |
(0) |
— |
— |
— |
— |
— |
||||||||||
Foreign currency translation |
— |
— |
— |
— |
— |
— |
— |
115 |
— |
115 |
||||||||||
Unrealized gain on |
— |
— |
— |
— |
— |
— |
— |
38 |
— |
38 |
||||||||||
Net loss |
— |
— |
— |
— |
— |
— |
(14,329) |
— |
(242) |
(14,571) |
||||||||||
Balance as of March 31, |
41,935,776 |
794 |
4,708,415 |
90 |
3,545,292 |
4,210 |
(3,433,475) |
12,254 |
(2,210) |
126,955 |
||||||||||
Share-based compensation |
— |
— |
— |
— |
220 |
— |
— |
— |
— |
220 |
||||||||||
Issuance of ordinary shares |
12,500 |
0 |
— |
— |
(0) |
— |
— |
— |
— |
— |
||||||||||
Foreign currency translation |
— |
— |
— |
— |
— |
— |
— |
(532) |
— |
(532) |
||||||||||
Unrealized gain on |
— |
— |
— |
— |
— |
— |
— |
185 |
— |
185 |
||||||||||
Net income/(loss) |
— |
— |
— |
— |
— |
— |
22,440 |
— |
(277) |
22,163 |
||||||||||
Balance as of June 30, 2021 |
41,948,276 |
794 |
4,708,415 |
90 |
3,545,512 |
4,210 |
(3,411,035) |
11,907 |
(2,487) |
148,991 |
||||||||||
Discussion of Segment Operations |
||||||||||||
(All amounts in thousands) |
||||||||||||
For the six months ended June 30, |
For the three months ended June 30, |
|||||||||||
2022 |
2022 |
2021 |
2022 |
2022 |
2021 |
|||||||
US$ |
RMB |
RMB |
US$ |
RMB |
RMB |
|||||||
NET REVENUES |
||||||||||||
K-12 Schools |
14,922 |
99,950 |
175,650 |
8,048 |
53,909 |
104,748 |
||||||
CP&CE Programs |
15,541 |
104,093 |
126,206 |
8,364 |
56,019 |
67,503 |
||||||
Total net revenues |
30,463 |
204,043 |
301,856 |
16,412 |
109,928 |
172,251 |
||||||
COST OF REVENUES |
||||||||||||
K-12 Schools |
(7,682) |
(51,452) |
(97,886) |
(4,067) |
(27,238) |
(52,297) |
||||||
CP&CE Programs |
(11,410) |
(76,426) |
(83,419) |
(5,616) |
(37,617) |
(44,025) |
||||||
Total cost of revenues |
(19,092) |
(127,878) |
(181,305) |
(9,683) |
(64,855) |
(96,322) |
||||||
GROSS PROFIT |
||||||||||||
K-12 Schools |
7,240 |
48,498 |
77,764 |
3,981 |
26,671 |
52,451 |
||||||
CP&CE Programs |
4,131 |
27,667 |
42,787 |
2,748 |
18,402 |
23,478 |
||||||
Total gross profit |
11,371 |
76,165 |
120,551 |
6,729 |
45,073 |
75,929 |
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