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Revenue and Segment Reporting
 12 Months Ended
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.