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Revenue and Segment Reporting | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Revenue and segment reporting |
| 18. | Revenue and segment reporting
The principal activities of the Group are providing a wide range of educational programs, services and products, consisting primarily of general adult English training, overseas training services, online English training, junior English training and other English language-related services in the PRC.
| (a) | Disaggregation of revenue
|  | Year ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2020 |
|  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |
Revenue from contracts with customers |  |  |  |  |  |  |  |  |
General adult English training |  |  | 810,218 |  |  |  | 690,534 |  |  |  | 240,103 |
Overseas training services |  |  | 223,601 |  |  |  | 203,677 |  |  |  | 130,567 |
Online English training |  |  | 212,302 |  |  |  | 260,263 |  |  |  | 289,715 |
Junior English training |  |  | 65,490 |  |  |  | 167,924 |  |  |  | 130,348 |
Sales of goods |  |  | 93,538 |  |  |  | 93,454 |  |  |  | 93,397 |
Others English language-related services |  |  | 19,085 |  |  |  | 32,047 |  |  |  | 12,905 |
Total |  |  | 1,424,234 |  |  |  | 1,447,899 |  |  |  | 897,035 |
| (b) | Revenue expected to be recognised in the future arising from contracts with customers in existence at the reporting date
As of December 31, 2019 and 2020, the aggregated amount of the transaction price allocated to the remaining performance obligations under the Group’s existing contracts is RMB 951,086 and RMB 767,228 respectively. This amount principally represents revenue expected to be recognized in the future from contracts for general adult English training, overseas training services, online English training and junior English training entered into by the customers with the Group. The Group will recognize the expected revenue in future as the service is rendered, which is expected to occur over the next 1 to 51 months.
| (c) | Segment Reporting
The Group’s chief operating decision makers has been identified as the Chairman, Vice-Chairman and Chief Executive Officer who review financial information of operating segments when making decisions about allocating resources and assessing performance of the Group. The Group identified the following four operating segments, including general adult English training, overseas training services, online English training and junior English training as reportable segments.
| — | General adult English training: this segment delivers English course to customers based on customers’ particular needs and in a convenient classroom setting at learning centres located across the PRC.
| — | Overseas training services: this segment provides English test preparation courses training services, consulting services related to overseas study and short-term study abroad programs services.
| — | Online English training: this segment provides tutorial courses through online platform of “Likeshuo”.
| — | Junior English training: this segment provides English courses to students aged between six to 18 in a convenient classroom setting at learning centres located across the PRC.
Revenue and expenses are allocated to the reportable segments with reference to revenue generated by those segments and the expenses incurred by those segments. The measure used for reporting segment profit is gross profit (revenue less cost of sales). Other information together with the segment information, provided to the Group’s chief operating decision makers, is measured in a manner consistent with that applied in these financial statements. There were no separate segment assets and segment liabilities information provided to the Group’s chief operating decision makers, as they do not use this information to allocate resources to or evaluate the performance of the operating segments.
| (i) | Segment revenue and results
Disaggregation of revenue from contracts with customers by the timing of revenue recognition, as well as information regarding the Group’s reportable segments as provided to the Group’s chief operating decision makers for the purposes of resource allocation and assessment of segment performance for the years ended December 31, 2018, 2019 and 2020 is set out below.
|  |  |  |  | Year ended December 31, 2018 |
|  | General adult English training |  |  | Overseas training services |  |  | Online English training |  |  | Junior English training |  |  | Total |
|  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |
Disaggregated by timing of revenue recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Point in time |  |  | 93,538 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 93,538 |
Overtime |  |  | 810,218 |  |  |  | 223,601 |  |  |  | 212,302 |  |  |  | 65,490 |  |  |  | 1,311,611 |
Revenue from external customers |  |  | 903,756 |  |  |  | 223,601 |  |  |  | 212,302 |  |  |  | 65,490 |  |  |  | 1,405,149 |
Reportable segment revenue |  |  | 903,756 |  |  |  | 223,601 |  |  |  | 212,302 |  |  |  | 65,490 |  |  |  | 1,405,149 |
Reportable segment gross profit |  |  | 566,994 |  |  |  | 103,703 |  |  |  | 97,144 |  |  |  | 23,717 |  |  |  | 791,558 |
|  |  |  |  | Year ended December 31, 2019 |
|  | General adult English training |  |  | Overseas training services |  |  | Online English training |  |  | Junior English training |  |  | Total |
|  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |
Disaggregated by timing of revenue recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Point in time |  |  | 93,454 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 93,454 |
Overtime |  |  | 690,534 |  |  |  | 203,677 |  |  |  | 260,263 |  |  |  | 167,924 |  |  |  | 1,322,398 |
Revenue from external customers |  |  | 783,988 |  |  |  | 203,677 |  |  |  | 260,263 |  |  |  | 167,924 |  |  |  | 1,415,852 |
Reportable segment revenue |  |  | 783,988 |  |  |  | 203,677 |  |  |  | 260,263 |  |  |  | 167,924 |  |  |  | 1,415,852 |
Reportable segment gross profit |  |  | 422,517 |  |  |  | 86,358 |  |  |  | 104,620 |  |  |  | 61,070 |  |  |  | 674,565 |
|  |  |  |  | Year ended December 31, 2020 |
|  | General adult English training |  |  | Overseas training services |  |  | Online English training |  |  | Junior English training |  |  | Total |
|  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |
Disaggregated by timing of revenue recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Point in time |  |  | 93,397 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 93,397 |
Overtime |  |  | 240,103 |  |  |  | 130,567 |  |  |  | 289,715 |  |  |  | 130,348 |  |  |  | 790,733 |
Revenue from external customers |  |  | 333,500 |  |  |  | 130,567 |  |  |  | 289,715 |  |  |  | 130,348 |  |  |  | 884,130 |
Reportable segment revenue |  |  | 333,500 |  |  |  | 130,567 |  |  |  | 289,715 |  |  |  | 130,348 |  |  |  | 884,130 |
Reportable segment gross profit |  |  | 104,875 |  |  |  | 34,318 |  |  |  | 119,438 |  |  |  | 27,933 |  |  |  | 286,564 |
| (ii) | Reconciliations of reportable segment revenues and profit or loss
|  | 2018 |  |  | 2019 |  |  | 2020 |
|  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |
Revenue |  |  |  |  |  |  |  |  |
Reportable segment revenue |  |  | 1,405,149 |  |  |  | 1,415,852 |  |  |  | 884,130 |
Other revenue |  |  | 19,085 |  |  |  | 32,047 |  |  |  | 12,905 |
Consolidated revenue (note 17(a)) |  |  | 1,424,234 |  |  |  | 1,447,899 |  |  |  | 897,035 |
Profit |  |  |  |  |  |  |  |  |  |  |  |
Reportable segment profit |  |  | 791,558 |  |  |  | 674,565 |  |  |  | 286,564 |
Other profit |  |  | 17,113 |  |  |  | 31,040 |  |  |  | 12,592 |
Reportable segment profit derived from Group’s external customers |  |  | 808,671 |  |  |  | 705,605 |  |  |  | 299,156 |
Selling and marketing expenses |  |  | (425,217 | ) |  |  | (437,986 | ) |  |  | (310,433 | )
General and administrative expenses |  |  | (253,939 | ) |  |  | (329,828 | ) |  |  | (238,592 | )
Research and development expenses |  |  | (26,178 | ) |  |  | (32,333 | ) |  |  | (31,878 | )
Interest income |  |  | 1,150 |  |  |  | 1,633 |  |  |  | 448 |
Interest expenses |  |  | (8 | ) |  |  | (2,453 | ) |  |  | (6,101 | )
Foreign currency exchange gain/(loss), net |  |  | 21 |  |  |  | (19 | ) |  |  | (382 | )
Gains/(losses) on disposal and closure of subsidiaries and branches |  |  | - |  |  |  | 583 |  |  |  | (31,884 | )
Gains on available-for-sale investments |  |  | 3,916 |  |  |  | - |  |  |  | - |
Gains on Short-term investments |  |  | - |  |  |  | - |  |  |  | 495 |
Government grants |  |  | 7,817 |  |  |  | 5,773 |  |  |  | 28,124 |
Equity in income on equity method investments |  |  | 1,668 |  |  |  | 2,658 |  |  |  | (1,532 | )
Depreciation and amortization |  |  | (31,570 | ) |  |  | (23,414 | ) |  |  | (16,469 | )
Share-based compensation expenses |  |  | (7,648 | ) |  |  | (96,661 | ) |  |  | (52,256 | )
Warrant financing |  |  | - |  |  |  | - |  |  |  | (41,118 | )
Others, net |  |  | 1,649 |  |  |  | 4,044 |  |  |  | 4,640 |
Unallocated head office and corporate expenses |  |  | (12,433 | ) |  |  | (13,062 | ) |  |  | (9,198 | )
Consolidated (loss)/income before income tax |  |  | 67,899 |  |  |  | (215,460 | ) |  |  | (406,980 | )
| (iii) | Geographical information
No geographical information is presented as the operations, major customers and assets of the Group are substantially located in the PRC.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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