UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2024
Commission file number: 001-38423
SUNLANDS
TECHNOLOGY GROUP
(Exact Name of Registrant as Specified in Its Charter)
Building 6, Chaolai Science Park, No. 36
Chuangyuan Road, Chaoyang
District
Beijing, 100012, the
People’s Republic of China
+86-10-52413738
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form
40-F ☐
EXHIBIT INDEX
| Exhibit No. |
|
Description |
| |
|
|
| 99.1 |
|
Press Release |
Signature
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
|
Sunlands Technology Group |
| |
|
|
| |
|
|
| Date: |
August 16, 2024 |
|
By: |
/s/ Tongbo Liu |
| |
|
|
|
Name: |
Tongbo Liu |
| |
|
|
|
Title: |
Chief Executive Officer |
Exhibit 99.1
Sunlands Technology Group Announces Unaudited
Second Quarter 2024 Financial Results
BEIJING, August 16,
2024 -- Sunlands Technology Group (NYSE: STG) (“Sunlands” or
the “Company”), a leader in China’s adult online education market and China’s adult personal interest learning
market, today announced its unaudited financial results for the second quarter ended June
30, 2024.
Second Quarter 2024
Financial and Operational Snapshots
| · | Net revenues were RMB492.2 million (US$67.7 million),
compared to RMB526.4 million in the second quarter of 2023. |
| · | Gross billings (non-GAAP) were RMB383.9 million
(US$52.8 million), compared to RMB354.1 million in the second quarter of 2023. |
| · | Gross profit was RMB415.6 million (US$57.2 million),
compared to RMB466.9 million in the second quarter of 2023. |
| · | Net income was RMB82.3 million (US$11.3 million),
compared to RMB173.9 million in the second quarter of 2023. |
| · | Net
income margin1 was
16.7% in the second quarter of 2024, compared to 33.0% in the second quarter of 2023. |
| · | New
student enrollments2 were
168,296, compared to 154,209 in the second quarter of 2023. |
| · | As of June 30, 2024, the Company’s
deferred revenue balance was RMB986.9 million (US$135.8 million), compared to RMB1,113.9 million as of December 31, 2023. |
1
Net income margin is defined as net income as a percentage of net revenues.
2
New student enrollments for a given period refer to the total number of orders placed by students that newly enroll in at least one course
during that period, including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price
courses, such as “mini courses” and “RMB1 courses”, which we offer in the form of recorded videos or short live
streaming, to strengthen our competitiveness and improve customer experience.
“In the face of challenging macroeconomic
conditions, our company demonstrated enough strategic flexibility to deliver solid results in the second quarter. We achieved net revenues
of RMB492.2 million and net income of RMB82.3 million. This underscored our resilience and ability to adapt in the face of adversity and
demonstrates our strong commitment to cost optimization and sustainable growth. This solid financial position not only enables us to respond
effectively to unpredictable circumstances, but also creates opportunities for our business to grow.
Looking ahead to the second half of the year,
our top priorities are to enhance brand awareness and improve the quality of our existing products and services. We're taking a prudent
but proactive approach to expanding and refining the offerings. Our commitment to these key growth initiatives remains unwavering as we
continue to focus on improving operational efficiency and profitability.” said Mr. Tongbo Liu, Chief Executive Officer of Sunlands.
Mr. Hangyu Li, Finance Director of Sunlands, commented,
“We had another excellent quarter in our core business. Although business of post-secondary courses has been rather slow in recent
quarters, we achieved year-over-year growth in gross billings for the fourth consecutive quarter due to new enrollments in our interest
courses offerings. In addition, we realised net income of RMB82.3 million and positive operating cash flows for the quarter. This gives
us the confidence to face the challenge in a dynamic environment. Looking ahead, we will continue to optimize our courses offerings while
maintaining efficient operations. These strategic initiatives will enable us to capitalize on emerging opportunities, strengthen our leadership
position in the industry and continue to create value for our shareholders.”
Financial Results for the Second Quarter of
2024
Net Revenues
In the second quarter of 2024, net revenues decreased
by 6.5% to RMB492.2 million (US$67.7 million) from RMB526.4 million in the second quarter of 2023. The decrease was primarily driven by
the decline in gross billings from post-secondary courses over the recent quarters, partially offset by the growth in revenues from interest
courses offerings and sales of goods such as books and learning materials.
Cost of Revenues
Cost of revenues increased by 28.8% to RMB76.6
million (US$10.5 million) in the second quarter of 2024 from RMB59.5 million in the second quarter of 2023. The increase was primarily
due to an increase in the cost of revenues from sales of goods such as books and learning materials.
Gross Profit
Gross profit decreased by 11.0% to RMB415.6 million
(US$57.2 million) in the second quarter of 2024 from RMB466.9 million in the second quarter of 2023.
Operating Expenses
In the second quarter of 2024, operating expenses
were RMB338.9 million (US$46.6 million), representing a 9.0% increase from RMB311.0 million in the second quarter of 2023.
Sales and marketing expenses increased by 10.2%
to RMB297.4 million (US$40.9 million) in the second quarter of 2024 from RMB270.0 million in the second quarter of 2023. The increase
was mainly due to a growth in spending on sales activities, including enhanced compensation for sales personnel as well as increased spending
on branding and marketing activities focusing on interest courses offerings.
General and administrative expenses increased
by 2.2% to RMB33.8 million (US$4.7 million) in the second quarter of 2024 from RMB33.1 million in the second quarter of 2023.
Product development expenses decreased by 4.2%
to RMB7.7 million (US$1.1 million) in the second quarter of 2024 from RMB8.0 million in the second quarter of 2023. The decrease was mainly
due to declined compensation expenses related to headcount reduction of our product development personnel.
Net Income
Net income for the second quarter of 2024 was
RMB82.3 million (US$11.3 million), as compared to RMB173.9 million in the second quarter of 2023.
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB12.00
(US$1.65) in the second quarter of 2024.
Cash, Cash Equivalents, Restricted Cash and
Short-term Investments
As of June 30, 2024, the Company had RMB758.6
million (US$104.4 million) of cash, cash equivalents and restricted cash and RMB243.9 million (US$33.6 million) of short-term investments,
as compared to RMB766.4 million of cash, cash equivalents and restricted cash and RMB142.1 million of short-term investments as of December
31, 2023.
Deferred Revenue
As of June 30, 2024, the Company had a deferred
revenue balance of RMB986.9 million (US$135.8 million), as compared to RMB1,113.9 million as of December 31, 2023.
Share Repurchase
On December 6, 2021, the Company’s board
of directors authorized a share repurchase program, under which the Company may repurchase up to US$15.0 million of Class A ordinary shares
in the form of ADSs over the next 24 months. On December 1, 2023, the Company’s board of directors authorized to extend its share
repurchase program over the next 24 months. As of August 14, 2024, the Company had repurchased an aggregate of 542,172 ADSs for approximately
US$2.9 million under the share repurchase program.
Financial Results for the First Six Months
of 2024
Net Revenues
In the first six months of 2024, net revenues
decreased by 7.1% to RMB1,015.5 million (US$139.7 million) from RMB1,093.2 million in the first six months of 2023.
Cost of Revenues
Cost of revenues increased by 20.5% to RMB153.8
million (US$21.2 million) in the first six months of 2024 from RMB127.6 million in the first six months of 2023. The increase was primarily
due to an increase in the cost of revenues from sales of goods such as books and learning materials.
Gross Profit
Gross profit decreased by 10.8% to RMB861.7 million
(US$118.6 million) from RMB965.6 million in the first six months of 2023.
Operating Expenses
In the first six months of 2023, operating expenses
were RMB680.1 million (US$93.6 million), representing a 7.6% increase from RMB631.8 million in the first six months of 2023.
Sales and marketing expenses increased by 10.6%
to RMB599.0 million (US$82.4 million) in the first six months of 2024 from RMB541.4 million in the first six months of 2023.
General and administrative expenses decreased
by 8.7% to RMB66.4 million (US$9.1 million) in the first six months of 2024 from RMB72.7 million in the first six months of 2023. The
decrease was mainly due to the decline in rental expenses as certain leases for office space were partially terminated in 2023 before
the expiration of the lease term for cost saving.
Product development expenses decreased by 17.0%
to RMB14.7 million (US$2.0 million) in the first six months of 2024 from RMB17.7 million in the first six months of 2023.
Net Income
Net income for the first six months of 2024 was
RMB195.0 million (US$26.8 million), compared with RMB354.0 million in the first six months of 2023.
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB28.44
(US$3.91) in the first six months of 2024, compared with RMB51.13 in the first six months of 2023.
Outlook
For the third quarter
of 2024, Sunlands currently expects net revenues to be between RMB490 million to RMB510 million, which would represent a decrease of 2.8%
to 6.6% year-over-year. The above outlook is based on the current market conditions and reflects the Company’s current and preliminary
estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty.
Exchange Rate
The Company’s business is primarily conducted
in China and all revenues are denominated in Renminbi (“RMB”). This announcement contains currency conversions of RMB amounts
into U.S. dollars (“US$”) solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$
are made at a rate of RMB7.2672 to US$1.00, the effective noon buying rate for June 28, 2024 as set forth in the H.10 statistical release
of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled
into US$ at that rate on June 28, 2024, or at any other rate.
Conference Call and Webcast
Sunlands’
management team will host a conference call at 7:00 AM U.S. Eastern Time, (7:00 PM Beijing/Hong Kong time) on August 16, 2024, following
the quarterly results announcement.
For
participants who wish to join the call, please access the link provided below to complete online registration 15 minutes prior to the
scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a
personal PIN and an e-mail with detailed instructions to join the conference call.
Registration
Link:
https://register.vevent.com/register/BI825ca1738fae48d2807c6faff61460db
Additionally,
a live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands’ website
at https://ir.sunlands.com/.
About Sunlands
Sunlands Technology Group
(NYSE: STG) (“Sunlands” or the “Company”), formerly known as Sunlands Online Education Group, is a leader in China’s
adult online education market and China’s adult personal interest learning market. With a one to many live streaming platform, Sunlands
offers various interest, professional skills and professional certification preparation courses as well as degree- or diploma-oriented
post-secondary courses. Students can access the Company’s services either through PC or mobile applications. The Company’s
online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library
of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research
and development that organizes subject content into Learning Outcome Trees, the Company’s proprietary knowledge management system.
Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their
goals.
About Non-GAAP
Financial Measures
We use gross billings,
EBITDA, non-GAAP operating cost and expenses, non-GAAP income from operations and Non-GAAP net income per share, each a non-GAAP
financial measure, in evaluating our operating results and for financial and operational decision-making purposes.
We define gross billings
for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in
such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course
tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net income
excluding depreciation and amortization, interest expense, interest income, and income tax expenses. We believe that gross billings and
EBITDA provide valuable insight into the sales of our course packages and the performance of our business.
These non-GAAP financial
measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measure prepared
in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP
measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP
financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, operating
cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation
expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based
compensation expenses, non-GAAP net income exclude share-based compensation expenses, and basic and diluted net income per share
excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same
manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing
limitations, you should not consider gross billings and EBITDA as a substitute for, or superior to, their respective most directly comparable
financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety
and not rely on a single financial measure.
Safe Harbor Statement
This press release contains forward-looking statements
made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,”
“expects,” “anticipates,” “future,” “intends,” “plans,” “believes,”
“estimates,” “confident” and similar statements. Sunlands may also make written or oral forward-looking statements
in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements
that are not historical facts, including statements about Sunlands’ beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.
Such factors and risks include, but not limited to the following: Sunlands’ goals and strategies; its expectations regarding demand
for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new
courses and educational content; its ability to improve teaching quality and students’ learning results; its ability to improve
sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development,
results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its
business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands’
corporate structure, business and industry; and general economic and business condition in China Further information regarding these and
other risks, uncertainties or factors is included in the Sunlands’ filings with the U.S. Securities and Exchange Commission. All
information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation
to update such information, except as required under applicable law.
For investor and media
enquiries, please contact:
Sunlands Technology Group
Investor Relations
Email: sl-ir@sunlands.com
SOURCE: Sunlands Technology
Group
SUNLANDS TECHNOLOGY
GROUP
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share and
per share data, or otherwise noted)
| |
|
As of December 31, |
|
As of June 30, |
| |
|
2023 |
|
2024 |
|
2024 |
| |
|
RMB |
|
RMB |
|
US$ |
| ASSETS |
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Cash and cash equivalents |
|
763,800 |
|
753,559 |
|
103,693 |
| Restricted cash |
|
2,578 |
|
5,013 |
|
690 |
| Short-term investments |
|
142,084 |
|
243,858 |
|
33,556 |
| Prepaid expenses and other current assets |
|
109,018 |
|
120,156 |
|
16,534 |
| Deferred costs, current |
|
14,274 |
|
6,708 |
|
923 |
| Total current assets |
|
1,031,754 |
|
1,129,294 |
|
155,396 |
| |
|
|
|
|
|
|
| Non-current assets |
|
|
|
|
|
|
| Property and equipment, net |
|
786,670 |
|
772,389 |
|
106,284 |
| Intangible assets, net |
|
975 |
|
1,011 |
|
139 |
| Right-of-use assets |
|
135,820 |
|
128,418 |
|
17,671 |
| Deferred costs, non-current |
|
68,773 |
|
59,582 |
|
8,199 |
| Long-term investments |
|
61,354 |
|
49,179 |
|
6,767 |
| Deferred tax assets |
|
- |
|
14,713 |
|
2,025 |
| Other non-current assets |
|
33,160 |
|
34,190 |
|
4,705 |
| Total non-current assets |
|
1,086,752 |
|
1,059,482 |
|
145,790 |
| TOTAL ASSETS |
|
2,118,506 |
|
2,188,776 |
|
301,186 |
SUNLANDS TECHNOLOGY
GROUP
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share and
per share data, or otherwise noted)
| |
|
As of December 31, |
|
As of June 30, |
| |
|
2023 |
|
2024 |
|
2024 |
| |
|
RMB |
|
RMB |
|
US$ |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| Accrued expenses and other current liabilities |
|
409,691 |
|
424,117 |
|
58,362 |
| Deferred revenue, current |
|
553,812 |
|
426,030 |
|
58,624 |
| Lease liabilities, current portion |
|
8,019 |
|
8,673 |
|
1,193 |
| Long-term debt, current portion |
|
38,654 |
|
38,654 |
|
5,319 |
| Total current liabilities |
|
1,010,176 |
|
897,474 |
|
123,498 |
| |
|
|
|
|
|
|
| Non-current liabilities |
|
|
|
|
|
|
| Deferred revenue, non-current |
|
560,111 |
|
560,908 |
|
77,184 |
| Lease liabilities, non-current portion |
|
157,269 |
|
152,944 |
|
21,046 |
| Deferred tax liabilities |
|
3,742 |
|
2,841 |
|
391 |
| Other non-current liabilities |
|
6,994 |
|
7,256 |
|
998 |
| Long-term debt |
|
104,665 |
|
85,338 |
|
11,743 |
| Total non-current liabilities |
|
832,781 |
|
809,287 |
|
111,362 |
| TOTAL LIABILITIES |
|
1,842,957 |
|
1,706,761 |
|
234,860 |
| |
|
|
|
|
|
|
| SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
| Class A ordinary shares (par value of US$0.00005, 796,062,195 shares |
|
|
|
|
|
|
| authorized; 3,131,807 and 3,131,807 shares issued as of December 31, 2023 |
|
|
|
|
|
|
| and June 30, 2024, respectively; 2,702,523 and 2,687,391 shares |
|
|
|
|
|
|
| outstanding as of December 31, 2023 and June 30, 2024, respectively) |
|
1 |
|
1 |
|
- |
| Class B ordinary shares (par value of US$0.00005, 826,389 shares |
|
|
|
|
|
|
| authorized; 826,389 and 826,389 shares issued and outstanding |
|
|
|
|
|
|
| as of December 31, 2023 and June 30, 2024, respectively) |
|
- |
|
- |
|
- |
| Class C ordinary shares (par value of US$0.00005, 203,111,416 shares |
|
|
|
|
|
|
| authorized; 3,332,062 and 3,332,062 shares issued and outstanding |
|
|
|
|
|
|
| as of December 31, 2023 and June 30, 2024, respectively) |
|
1 |
|
1 |
|
- |
| Treasury stock |
|
- |
|
- |
|
- |
| Accumulated deficit |
|
(2,171,284) |
|
(1,976,297) |
|
(271,948) |
| Additional paid-in capital |
|
2,305,042 |
|
2,303,270 |
|
316,940 |
| Accumulated other comprehensive income |
|
143,276 |
|
156,527 |
|
21,539 |
| Total Sunlands Technology Group shareholders’ equity |
|
277,036 |
|
483,502 |
|
66,531 |
| Non-controlling interest |
|
(1,487) |
|
(1,487) |
|
(205) |
| TOTAL SHAREHOLDERS’ EQUITY |
|
275,549 |
|
482,015 |
|
66,326 |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
2,118,506 |
|
2,188,776 |
|
301,186 |
SUNLANDS TECHNOLOGY
GROUP
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for share and
per share data, or otherwise noted)
| |
|
For the Three Months Ended June 30, |
| |
|
2023 |
|
2024 |
|
2024 |
| |
|
RMB |
|
RMB |
|
US$ |
| Net revenues |
|
526,353 |
|
492,223 |
|
67,732 |
| Cost of revenues |
|
(59,491) |
|
(76,627) |
|
(10,544) |
| Gross profit |
|
466,862 |
|
415,596 |
|
57,188 |
| |
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
| Sales and marketing expenses |
|
(269,969) |
|
(297,443) |
|
(40,930) |
| Product development expenses |
|
(7,992) |
|
(7,657) |
|
(1,054) |
| General and administrative expenses |
|
(33,085) |
|
(33,829) |
|
(4,655) |
| Total operating expenses |
|
(311,046) |
|
(338,929) |
|
(46,639) |
| Income from operations |
|
155,816 |
|
76,667 |
|
10,549 |
| Interest income |
|
7,561 |
|
10,576 |
|
1,455 |
| Interest expense |
|
(2,046) |
|
(1,516) |
|
(209) |
| Other income, net |
|
8,171 |
|
3,015 |
|
415 |
| Gain/(loss) on disposal of subsidiaries |
|
247 |
|
(250) |
|
(34) |
| Income before income tax benefit |
|
|
|
|
|
|
| and gain/(loss) from equity method investments |
|
169,749 |
|
88,492 |
|
12,176 |
| Income tax benefit |
|
1,404 |
|
78 |
|
11 |
| Gain/(loss) from equity method investments |
|
2,730 |
|
(6,318) |
|
(869) |
| Net income |
|
173,883 |
|
82,252 |
|
11,318 |
| |
|
|
|
|
|
|
| Less: net income attributable to non-controlling interest |
|
- |
|
- |
|
- |
| Net income attributable to Sunlands Technology Group |
|
173,883 |
|
82,252 |
|
11,318 |
| Net income per share attributable to ordinary shareholders of |
|
|
|
|
|
|
| Sunlands Technology Group: |
|
|
|
|
|
|
| Basic and diluted |
|
25.12 |
|
12.00 |
|
1.65 |
| Weighted average shares used in calculating net income |
|
|
|
|
|
|
| per ordinary share: |
|
|
|
|
|
|
| Basic and diluted |
|
6,921,304 |
|
6,852,828 |
|
6,852,828 |
SUNLANDS TECHNOLOGY
GROUP
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
| |
|
For the Three Months Ended June 30, |
| |
|
2023 |
|
2024 |
|
2024 |
| |
|
RMB |
|
RMB |
|
US$ |
| Net income |
|
173,883 |
|
82,252 |
|
11,318 |
| Other comprehensive income, net of tax effect of nil: |
|
|
|
|
|
|
| Change in cumulative foreign currency translation adjustments |
|
29,603 |
|
3,715 |
|
511 |
| Total comprehensive income |
|
203,486 |
|
85,967 |
|
11,829 |
| Less: comprehensive income attributable to non-controlling interest |
|
- |
|
- |
|
- |
| Comprehensive income attributable to Sunlands Technology Group |
|
203,486 |
|
85,967 |
|
11,829 |
SUNLANDS TECHNOLOGY
GROUP
RECONCILIATION OF GAAP
AND NON-GAAP RESULTS
(Amounts in thousands)
| |
|
For the Three Months Ended June 30, |
| |
|
2023 |
|
2024 |
| |
|
RMB |
|
RMB |
| Net revenues |
|
526,353 |
|
492,223 |
| Less: other revenues |
|
(42,377) |
|
(62,094) |
| Add: tax and surcharges |
|
9,779 |
|
15,740 |
| Add: ending deferred revenue |
|
1,379,073 |
|
986,938 |
| Add: ending refund liability |
|
107,319 |
|
126,797 |
| Less: beginning deferred revenue |
|
(1,513,896) |
|
(1,044,866) |
| Less: beginning refund liability |
|
(112,188) |
|
(130,840) |
| Gross billings (non-GAAP) |
|
354,063 |
|
383,898 |
| |
|
|
|
|
| Net income |
|
173,883 |
|
82,252 |
| Add: income tax benefit |
|
(1,404) |
|
(78) |
| Add: depreciation and amortization |
|
7,677 |
|
7,362 |
| Add: interest expense |
|
2,046 |
|
1,516 |
| Less: interest income |
|
(7,561) |
|
(10,576) |
| EBITDA (non-GAAP) |
|
174,641 |
|
80,476 |
SUNLANDS TECHNOLOGY
GROUP
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for share and
per share data, or otherwise noted)
| |
|
For the Six Months Ended June 30, |
| |
|
2023 |
|
2024 |
|
2024 |
| |
|
RMB |
|
RMB |
|
US$ |
| Net revenues |
|
1,093,229 |
|
1,015,463 |
|
139,732 |
| Cost of revenues |
|
(127,646) |
|
(153,790) |
|
(21,162) |
| Gross profit |
|
965,583 |
|
861,673 |
|
118,570 |
| |
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
| Sales and marketing expenses |
|
(541,383) |
|
(599,018) |
|
(82,428) |
| Product development expenses |
|
(17,672) |
|
(14,667) |
|
(2,018) |
| General and administrative expenses |
|
(72,725) |
|
(66,381) |
|
(9,134) |
| Total operating expenses |
|
(631,780) |
|
(680,066) |
|
(93,580) |
| Income from operations |
|
333,803 |
|
181,607 |
|
24,990 |
| Interest income |
|
14,122 |
|
19,865 |
|
2,734 |
| Interest expense |
|
(4,170) |
|
(3,120) |
|
(429) |
| Other income, net |
|
16,969 |
|
8,795 |
|
1,210 |
| Gain/(loss) on disposal of subsidiaries |
|
247 |
|
(250) |
|
(34) |
| Income before income tax (expenses)/benefit |
|
|
|
|
|
|
| and loss from equity method investments |
|
360,971 |
|
206,897 |
|
28,471 |
| Income tax (expenses)/benefit |
|
(6,327) |
|
469 |
|
65 |
| Loss from equity method investments |
|
(654) |
|
(12,379) |
|
(1,703) |
| Net income |
|
353,990 |
|
194,987 |
|
26,833 |
| |
|
|
|
|
|
|
| Less: net income attributable to non-controlling interest |
|
1 |
|
- |
|
- |
| Net income attributable to Sunlands Technology Group |
|
353,989 |
|
194,987 |
|
26,833 |
| Net income per share attributable to ordinary shareholders of |
|
|
|
|
|
|
| Sunlands Technology Group: |
|
|
|
|
|
|
| Basic and diluted |
|
51.13 |
|
28.44 |
|
3.91 |
| Weighted average shares used in calculating net income |
|
|
|
|
|
|
| per ordinary share: |
|
|
|
|
|
|
| Basic and diluted |
|
6,923,858 |
|
6,854,922 |
|
6,854,922 |
SUNLANDS TECHNOLOGY
GROUP
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
| |
|
For the Six Months Ended June 30, |
| |
|
2023 |
|
2024 |
|
2024 |
| |
|
RMB |
|
RMB |
|
US$ |
| Net income |
|
353,990 |
|
194,987 |
|
26,833 |
| Other comprehensive income, net of tax effect of nil: |
|
|
|
|
|
|
| Change in cumulative foreign currency translation adjustments |
|
27,276 |
|
13,251 |
|
1,823 |
| Total comprehensive income |
|
381,266 |
|
208,238 |
|
28,656 |
| Less: comprehensive income attributable to non-controlling interest |
|
1 |
|
- |
|
- |
| Comprehensive income attributable to Sunlands Technology Group |
|
381,265 |
|
208,238 |
|
28,656 |
SUNLANDS TECHNOLOGY
GROUP
RECONCILIATION OF GAAP
AND NON-GAAP RESULTS
(Amounts in thousands)
| |
|
For the Six Months Ended June 30, |
| |
|
2023 |
|
2024 |
| |
|
RMB |
|
RMB |
| Net revenues |
|
1,093,229 |
|
1,015,463 |
| Less: other revenues |
|
(84,224) |
|
(120,968) |
| Add: tax and surcharges |
|
27,774 |
|
32,109 |
| Add: ending deferred revenue |
|
1,379,073 |
|
986,938 |
| Add: ending refund liability |
|
107,319 |
|
126,797 |
| Less: beginning deferred revenue |
|
(1,690,946) |
|
(1,113,923) |
| Less: beginning refund liability |
|
(133,066) |
|
(143,744) |
| Gross billings (non-GAAP) |
|
699,159 |
|
782,672 |
| |
|
|
|
|
| Net income |
|
353,990 |
|
194,987 |
| Add: income tax expenses/(benefit) |
|
6,327 |
|
(469) |
| Add: depreciation and amortization |
|
15,267 |
|
14,793 |
| Add: interest expense |
|
4,170 |
|
3,120 |
| Less: interest income |
|
(14,122) |
|
(19,865) |
| EBITDA (non-GAAP) |
|
365,632 |
|
192,566 |
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