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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2020
SEGMENT INFORMATION  
SEGMENT INFORMATION

21. SEGMENT INFORMATION

The Group offers a wide range of educational and career enhancement services and products focusing on improving educational opportunities for primary and advanced degree school students and employment opportunities for university graduates.

The Group’s chief operating decision maker (“CODM”) has been identified as the CEO who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the Group. The Group has two reportable segments: 1) K-12 schools, 2) CP&CE Programs. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The CODM evaluates performance based on each reporting segment’s revenues, cost of revenues, gross profit, operating expenses, other income (expense), income (loss) before income tax and non-controlling interests and total assets as follows.

For the year ended December 31, 2018

 

 

 

 

 

 

 

 

(RMB in thousands)

    

 

 

 

 

 

 

 

K‑12

 

CP&CE

 

 

 

    

Schools

    

Programs

    

Consolidated

 

    

RMB

    

RMB

    

RMB

 

 

 

 

 

 

 

Net Revenues

 

277,790

 

253,718

 

531,508

Cost of revenues

 

(178,645)

 

(159,498)

 

(338,143)

GROSS PROFIT

 

99,145

 

94,220

 

193,365

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

Selling and marketing

 

(1,286)

 

(36,951)

 

(38,237)

General and administrative

 

(46,041)

 

(48,444)

 

(94,485)

Research and development

 

 —

 

(487)

 

(487)

Unallocated corporate expenses

 

 —

 

 —

 

(44,773)

Total operating expenses

 

(47,327)

 

(85,882)

 

(177,982)

 

 

 

 

 

 

 

OPERATING INCOME

 

51,818

 

8,338

 

15,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME

 

 

 

 

 

 

Interest income

 
3,859

 
266

 
4,125

Foreign exchange gain, net

 

 —

 

38

 

38

Other income, net

 

3,404

 

5,076

 

8,480

Gain from derecognition of liabilities

 

 —

 

4,254

 

4,254

Gain from deregistration of subsidiaries

 

 —

 

2,858

 

2,858

Gain on sale of investment available for sale

 

512

 

 —

 

512

Unallocated corporate other income

 

 —

 

 —

 

12,788

Total other income

 

7,775

 

12,492

 

33,055

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS

 

59,593

 

20,830

 

48,438

 

 

 

 

 

 

 

Segment assets

 

373,671

 

352,009

 

725,680

Unallocated corporate assets

 

 —

 

 —

 

184,539

TOTAL ASSETS

 

373,671

 

352,009

 

910,219

 

For the year ended December 31, 2019

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

K‑12

 

CP&CE

 

 

(RMB in thousands)

    

Schools

    

Programs

    

Consolidated

 

    

RMB

    

RMB

    

RMB

 

 

 

 

 

 

 

Net Revenues

 

313,747

 

270,162

 

583,909

Cost of revenues

 

(197,064)

 

(191,830)

 

(388,894)

GROSS PROFIT

 

116,683

 

78,332

 

195,015

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

Selling and marketing

 

(1,361)

 

(47,763)

 

(49,124)

General and administrative

 

(44,271)

 

(87,220)

 

(131,491)

Research and development

 

 —

 

(245)

 

(245)

Impairment loss

 

 —

 

(38,754)

 

(38,754)

Unallocated corporate expenses

 

 —

 

 —

 

(73,071)

Total operating expenses

 

(45,632)

 

(173,982)

 

(292,685)

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

71,051

 

(95,650)

 

(97,670)

 

 

 

 

 

 

 

OTHER INCOME

 

 

 

 

 

 

Interest income

 

1,412

 

1,150

 

2,562

Foreign exchange gain, net

 

 —

 

25

 

25

Other (loss) income, net

 

(82)

 

2,950

 

2,868

Gain from deregistration of subsidiaries

 

 —

 

562

 

562

Gain on sale of investment available for sale

 

1,043

 

 —

 

1,043

Unallocated corporate other income

 

 —

 

 —

 

3,101

Total other income

 

2,373

 

4,687

 

10,161

 

 

  

 

  

 

  

INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS

 

73,424

 

(90,963)

 

(87,509)

 

 

  

 

  

 

  

Segment assets

 

345,427

 

466,162

 

811,589

Unallocated corporate assets

 

 —

 

 —

 

209,210

TOTAL ASSETS

 

345,427

 

466,162

 

1,020,799

 

For the year ended December 31, 2020

 

 

 

 

 

 

 

 

 

    

K‑12

 

CP&CE

 

 

(RMB in thousands)

    

Schools

    

Programs

    

Consolidated

 

    

RMB

    

RMB

    

RMB

 

 

 

 

 

 

 

Net Revenues

 

291,539

 

240,441

 

531,980

Cost of revenues

 

(188,628)

 

(198,862)

 

(387,490)

GROSS PROFIT

 

102,911

 

41,579

 

144,490

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

Selling and marketing

 

(1,471)

 

(46,533)

 

(48,004)

General and administrative

 

(44,288)

 

(78,995)

 

(123,283)

Research and development

 

(41)

 

(1,245)

 

(1,286)

Impairment loss

 

 —

 

(36,699)

 

(36,699)

Unallocated corporate expenses

 

 —

 

 —

 

(59,768)

Total operating expenses

 

(45,800)

 

(163,472)

 

(269,040)

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

57,111

 

(121,893)

 

(124,550)

 

 

 

 

 

 

 

OTHER INCOME

 

 

 

 

 

 

Interest income

 

660

 

2,987

 

3,647

Foreign exchange gain, net

 

 —

 

33

 

33

Other (loss) income, net

 

(105)

 

(3,440)

 

(3,545)

Gain from derecognition of liabilities

 

 —

 

4,073

 

4,073

Loss from deregistration of subsidiaries

 

 —

 

(22)

 

(22)

Gain on disposal of subsidiaries

 

 —

 

752

 

752

Gain on the bargain purchase

 

 —

 

40,273

 

40,273

Gain on sale of investment available for sale

 

2,988

 

 —

 

2,988

Unallocated corporate other income

 

 —

 

 —

 

13,432

Total other income

 

3,543

 

44,656

 

61,631

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS

 

60,654

 

(77,237)

 

(62,919)

 

 

 

 

 

 

 

Segment assets

 

407,157

 

448,256

 

855,413

Unallocated corporate assets

 

 —

 

 —

 

194,304

TOTAL ASSETS

 

407,157

 

448,256

 

1,049,717

 

The following table summarizes the net revenues and long-lived assets for the years ended and as of December 31, 2018, 2019 and 2020 by geographic areas.

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

2018

 

2019

 

2020

 

    

RMB

    

RMB

    

RMB

 

 

 

 

 

 

 

Net Revenues

 

  

 

  

 

  

PRC

 

447,809

 

503,180

 

411,805

U.S.

 

83,699

 

80,729

 

120,175

Total

 

531,508

 

583,909

 

531,980

 

 

 

 

 

 

 

Long-lived Assets

 

  

 

  

 

  

PRC

 

315,539

 

371,847

 

300,623

U.S.

 

17,776

 

168,146

 

179,560

Total

 

333,315

 

539,993

 

480,183

 

Net revenues are attributed to areas based on the location where the service is performed to the customers. Other than in PRC and the United States, the Group does not conduct business in any other individual country.

Long-lived assets represent property and equipment, land use rights, intangible assets, goodwill, operating and finance lease right-of-use assets for each geographic area.