Condensed Financial Information Of Parent Company

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

BALANCE SHEETS

(Amounts in thousands, except for share and per share data)

	As of December 31,
	2018			2019			2019
	RMB			RMB			US$
ASSETS
Cash and cash equivalents		1,086,521			1,125,048			161,603
Short-term investments		441,513			—		—
Prepaid expenses and other current assets		11,950			1,244			177
Amounts due from subsidiaries		695,194			1,093,781			157,112
Total current assets		2,235,178			2,220,073			318,892
Non-current assets
Other non-current assets		—			26,849			3,857
Total non-current assets					26,849			3,857
TOTAL ASSETS		2,235,178			2,246,922			322,749

LIABILITIES AND SHAREHOLDERS’ DEFICIT
LIABILITIES
Current liabilities
Accrued expenses and other current liabilities		6,268			6,942			997
Total current liabilities		6,268			6,942			997
Non-current liabilities
Investment in subsidiaries		2,556,801			2,970,297			426,656
Other non-current liabilities		11,228			7,834			1,125
Total non-current liabilities		2,568,029			2,978,131			427,781
TOTAL LIABILITIES		2,574,297			2,985,073			428,778

SHAREHOLDERS’ DEFICIT
Class A ordinary shares (par value of US$0.00005, 796,062,195 shares authorized; 1,818,383 and 1,830,183 shares issued as of December 31, 2018 and December 31, 2019, respectively; 1,773,301 and 1,728,006 shares outstanding as of December 31, 2018 and 2019, 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, 2018 and 2019, respectively)		—			—		—
Class C ordinary shares (par value of US$0.00005, 203,111,416 shares authorized; 4,265,286 and 4,258,686 shares issued and outstanding as of December 31, 2018 and December 31,2019, respectively)		1			1		—
Treasury stock		—			—		—
Additional paid-in capital		2,391,822			2,363,999			339,567
Accumulated other comprehensive income		118,827			142,435			20,460
Accumulated deficit		(2,849,770	)		(3,244,587	)		(466,056	)
TOTAL SHAREHOLDERS’ DEFICIT		(339,119	)		(738,151	)		(106,029	)
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT		2,235,178			2,246,922			322,749

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF OPERATIONS

(Amounts in thousands, except for share and per share data)

	Years ended December 31,
	2017			2018			2019
	RMB			RMB			RMB			US$
Cost of revenues		(19,244	)		(475	)		(317	)		(46	)
Gross profit		(19,244	)		(475	)		(317	)		(46	)
Operating expenses
Sales and marketing expenses		(75,237	)		(820	)		(674	)		(97	)
General and administrative expenses		(194,878	)		(15,335	)		(22,850	)		(3,282	)
Total operating expenses		(270,115	)		(16,155	)		(23,524	)		(3,379	)
Loss from operations		(289,359	)		(16,630	)		(23,841	)		(3,425	)
Interest income		1,592			33,525			38,331			5,505
(Loss)/profit before income tax expenses		(287,767	)		16,895			14,490			2,080
Income tax expenses		—			—		—			—
Loss from investment in subsidiaries		(630,947	)		(943,781	)		(409,307	)		(58,793	)
Net loss		(918,714	)		(926,886	)		(394,817	)		(56,713	)

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands, except for share and per share data)

	Years ended December 31,
	2017			2018			2019
	RMB			RMB			RMB			US$
Net loss		(918,714	)		(926,886	)		(394,817	)		(56,713	)
Other comprehensive (loss)/income, net of tax effect of nil:
Change in cumulative foreign currency translation adjustments		(8,759	)		127,586			23,608			3,391
Total comprehensive loss		(927,473	)		(799,300	)		(371,209	)		(53,322	)

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF CASH FLOWS

(Amounts in thousands, except for share and per share data)

	Years ended December 31,
	2017			2018			2019
	RMB			RMB			RMB			US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		(918,714	)		(926,886	)		(394,817	)		(56,713	)
Adjustments to reconcile net loss to net cash generated from operating activities:
Share-based compensation		288,763			3,851			2,970			427
Loss from investment in subsidiaries		813,313			1,032,235			413,496			59,395
Amounts due to subsidiaries		(751,735	)		(185,537	)		(398,587	)		(57,253	)
Prepaid expenses and other current assets		—			(19,276	)		18,032			2,594
Other non-current liabilities		—			11,228			(3,394	)		(488	)
Accrued expenses and other current liabilities		75			4,231			1,531			220
Net cash used in operating activities		(568,298	)		(80,154	)		(360,769	)		(51,818	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of short-term investments		—			(814,539	)	—			—
Proceeds from maturity of short-term investments		—			396,852			436,228			62,660
Loan to employees		—			—			(26,849	)		(3,857	)
Net cash (used in)/ generated from investing activities		—			(417,687	)		409,379			58,803
CASH FLOWS FROM FINANCING ACTIVITIES
Amounts due from related parties		—			245,654			—			—
Payment for share repurchase		—			(33,971	)		(31,650	)		(4,546	)
Proceeds from initial public offering, Net of issuance cost of 80,128		—			1,109,517		—			—
Capital contribution from series B and B+ convertible redeemable preferred shareholders		732,709			—		—			—
Net cash generated from/ (used in) financing activities		732,709			1,321,200			(31,650	)		(4,546	)
Effect of exchange rate charges		(8,759	)		107,510			21,567			3,095
Net increase in cash and cash equivalents		155,652			930,869			38,527			5,534
Cash and cash equivalents at beginning of the year		—			155,652			1,086,521			156,069
Cash and cash equivalents at end of the year		155,652			1,086,521			1,125,048			161,603

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

NOTES TO FINANCIAL STATEMENTS

(Amounts in thousands, except for share and per share data)

Schedule I has been provided pursuant the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

2.	The condensed financial information of Sunlands Technology Group has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Group and, as such, these statements should be read in conjunction with the notes to the Consolidated Financial Statements of the Group. No dividend was paid by the Group's subsidiaries to their parent company in 2017, 2018 and 2019.