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Jianzhi Education Technology Group Company Limited Reports Fiscal Year 2022 Financial Results

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Jianzhi Education Technology Group Company Limited Reports Fiscal Year 2022 Financial Results
Jianzhi Education Technology Group Company Limited Reports Fiscal Year 2022 Financial Results

Jianzhi Education Technology Group Company Limited

BEIJING, Sept. 29, 2023 (GLOBE NEWSWIRE) —  Jianzhi Education Technology Group Company Limited (the “Company” or “Jianzhi”) (NASDAQ: JZ), a leading provider of digital educational content in China, today announced its financial results for fiscal year 2022.

Yong Hu, CEO of the Company commented: “In the fiscal year 2022, we remained committed to meeting China’s demand for high-quality vocational training resources and solidified our position as a leading digital educational content provider in the country. During the year ending December 31, 2022, our company achieved a revenue growth of about 6.9{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823}, reaching approximately RMB505.7 million, compared to about RMB473.2 million in 2021. This growth was primarily driven by a significant increase in revenue from IT related solutions and services, which saw a substantial increase of RMB192.6 million ($US27.9 million), representing a growth rate of 178.1{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823}.”

“Though our general and administrative expenses significantly increased in the past year, affecting our overall profitability to some extent, it is important to note that these expenses were primarily due to non-cash factors, including increased impairment expenses related to licensing copyrights and goodwill, as well as changes in provisions for doubtful accounts, mainly due to payment delays from educational content customers caused by the impact of COVID-19. We expect these factors that led to the increase to cease as we consolidate our market leadership and expand content promotion and distribution with our partners, thereby not affecting the company’s overall performance in the future.”

“With our expertise in vocational education and strong content development capabilities, we continued to build a comprehensive digital education content database in 2022. Our library comprises over 39,000 online videos and video courses, totaling approximately 10,080 hours, with over 75.8{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823} of the content being self-developed. Our content covers a wide range of professional development topics, including employability skills, entrepreneurship guidance, professional skill training, skill enhancement, and professional certification exams, to meet the growing demand for online educational content.”

“In 2022, we continued to strengthen our collaboration with telecom operators. For example, the monthly subscription purchase volume via telecom operators of our own mobile video package product ‘Fish Learning launched the fourth quarter of 2017 reached approximately 31.4 million by December 31, 2022, and total monthly subscription purchases were approximately 2.8 million for the years ended December 31, 2022. We expect to continue leveraging the telecom operator’s platform to promote our content and provide subscription services through our ‘Fish Learning’ mobile application. We also collaborated with another telecom operator in China to offer educational content redemption services for their mobile users. Approximately 3.4 million times course redemptions were made in fiscal year 2022. This arrangement generated revenue for us through point rewards paid by the telecom operator’s subsidiary.”

“By December 31, 2022, we received over 5.9 million monthly subscriptions from our Light Class mobile video package product which we launched with telecom operator partner since in 2019, more than 570 quarterly subscriptions, and around 0.2 million annual subscriptions obtained from WeChat users and through the partnership.”

“In addition, we also collaborate with third-party content providers to supplement our own content database. These agreements allow us to use their educational videos and we aim to expand such partnerships.”

“Looking forward we are encouraged by our revenue growth and remain focused on optimizing our operations, improving the quality of our educational content, and exploring opportunities for further growth in the IT related solution services sector. We will keep committed to enhancing our performance and delivering value to our stakeholders.”

Fiscal Year 2022 Financial Results:
The following table sets forth a summary of our (including the VIEs’) consolidated results of operations for the years indicated, both in absolute amounts and as percentages of total income from us and the VIEs.

 

 

For the Years Ended December 31,

 

 

2021

 

 

2022

 

 

 

 

RMB

 

RMB

{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823} Change

(in RMB million, except earnings per share; differences due to rounding)

 

 

 

 

 

Net revenues

 

473.25

 

 

505.72

 

6.86

{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823}

Gross profit (loss)

 

104.20

 

 

(5.54

(105.32

{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823})

Gross (loss) margin

 

22.02

{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823}

 

(1.1

{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823})

N/A

 

Income (loss) from operations

 

50.79

 

 

(207.45

)

(508.45

{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823})

Net income (loss)

 

52.93

 

 

(196.58

)

(471.40

{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823})

Earnings (loss) per share – basic and diluted

 

0.43

 

 

(1.68

)

(490.70

{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823})

Net Revenues
Net revenue increased by 6.9{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823} from RMB473.2 million for the year ended December 31, 2021 to RMB505.7 million (US$73.3 million) for the year ended December 31, 2022. This increase was primarily driven by the net effects of an increase of RMB192.6 million (US$27.9 million) in revenue generated from IT related solution services, partially net off by a decrease of RMB160.2 million (US$23.2 million) in net revenues from the provision of educational content services and other services.

  • Net revenue from the educational content service and other services decreased by RMB160.2 million (US$23.2 million) from RMB365.1 million for the year ended December 31, 2021 to RMB204.9 million (US$29.7 million) for the year ended December 31, 2022. Because there is constant need for updating and developing educational content, the Company faced the risk of content becoming outdated before generating profits. Therefore In 2022, Jianzhi adopted conservative strategies, resulting in a significant decline in revenues and lost subscriptions. The decrease was primarily due to the absence of new courses and attractive content, leading to decreased subscriptions from end customers.

  • Net revenue from IT related solution services increased by RMB192.6 million (US$27.9 million), or 178.1{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823} from RMB108.2 million for the year ended December 31, 2021 to RMB300.8 million (US$43.6 million) for the year ended December 31, 2022. The increase was primarily attributable to acquisition of a cloud-based customer in the year of 2022 which contributed revenues of RMB 197.5 million (US$28.6 million) in IT procurement and assembling of equipment.

Cost of Revenues
Cost of revenue increased by 38.5{76cecface0748ddeecd9e742a6b04748a479068b020f881d389c6d6775b6c823} from RMB369.1 million for the year ended December 31, 2021 to RMB511.3million (US$74.1 million) for the year ended December 31, 2022. The increase of cost of revenues was primarily in line with the increase of revenues in IT related solution services. Compared with the revenue growth, the higher percentage of increase in cost of revenues was mainly attributable to the high equipment purchase cost we incurred for IT procurement and assembling projects during the year ended December 31, 2022.

Gross profit (loss)
Due to the aforementioned factors, gross profit declined from RMB104.2 million in 2021 to a gross loss of RMB5.5 million (US$0.8 million) in 2022. The decrease was mainly due to the decrease in the gross profits margin for IT related solution services for the year ended December 31, 2022, because we completed procurement and assembling equipment projects with contract value of RMB10.8 million (US$1.7 million) for the new customer, in which we incurred significant equipment purchasing cost, resulting in relatively lower gross profit margin.

Operating Expenses
Total operating expenses rose from RMB53.4 million in 2021 to RMB202.6million (US$29.4 million) in 2022.

  • Sales and marketing expenses decreased from RMB7.6 million in 2021 to RMB7.1 million (US$1.0 million) in 2022. This decrease was mainly driven by a decrease of RMB1.3 million (US$0.2 million) in salary and welfare expenses because we laid off certain salespersons and reduced marketing and promotion for educational content services, and there was a decrease of $0.7 million in travel and entertainment expenses as a result of decrease in salespersons, partially net off by an increase of RMB1.3 million (US$0.2 million) in the service fee which were used in tendering for IT solution service customers.

  • General and administrative expenses increased from RMB19.5 million in 2021 to RMB179.2 million (US$26.0 million) in 2022. This increase was caused by several factors, including an impairment of licensed copyrights due to outdated educational content, impairments of goodwill and customer relationships related to an acquisition, and changes in allowance of doubtful accounts due to delayed payments from educational content customers affected by COVID-19.

  • Research and development expenses decreased from RMB26.4 million in 2021 to RMB15.6 million (US$2.3 million) in 2022. This decrease was primarily due to reductions in salary and welfare expenses and outsourced labor costs as the VIEs reduced expenditures on the development of new educational content.

Income Tax Expenses
Income tax expenses changed from RMB4.3 million for the year ended December 31, 2021 to income tax benefits of RMB11.0 million (US$1.6 million) for the year ended December 31, 2022, because the Company incurred net operating losses during the year ended December 31, 2022 which could be carried forward for the next five years.

Net Income (Loss)
As a result of the foregoing, the Company reported net loss of RMB196.6 million (US$28.5 million) for the year ended December 31, 2022 compared to net income of RMB52.9 million for the year ended December 31, 2021.

Recent Development

On November 28, 2022, the Company announced its subsidiary Shanghai Ang’you Internet Technology Co., Ltd. has entered into strategic cooperation agreement with Jinqiao Management Bureau of Shanghai Pilot Free Trade Zone on its vocational training online platform.

On November 14, 2022, the Company announced it entered into a “Ten Schools and 100 Enterprises Action Plan” strategic cooperation agreement with Modern Industry-Education Integration Promotion Center of Shanghai Pudong New Area (the “Center”), to jointly develop initiatives to strengthen collaboration between local governments, schools and enterprises in order to cultivate cross-border e-commerce talents and create a platform ecosystem for modern vocational education (the “Cooperation”).

About Jianzhi Education Technology Group Company Limited

Headquartered in Beijing and established in 2011, Jianzhi is a leading provider of digital educational content in China and has been committed to developing educational content to fulfill the massive demand for high-quality, professional development training resources in China. Jianzhi started operations by providing educational content products and IT services to higher education institutions. Jianzhi also provides products to individual customers. Leveraging its strong capabilities in developing proprietary professional development training content and success in consolidating educational content resources within the industry, Jianzhi has successfully built up a comprehensive, multi-dimensional digital educational content database which offers a wide range of professional development products. Jianzhi embed proprietary digital education content into the self-developed online learning platforms, which are provided to a wide range of customers through its omni-channel sales system. Jianzhi is also fully committed to the digitalization and informatization of the education sector in China. For more information, please visit: www.jianzhi-jiaoyu.com.

Safe Harbor Statement

This press release (the “Press Release”) contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this Press Release is as of the date of this Press Release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Janice Wang
WFS Investor Relations Inc.
Phone: +86 13811768559
+1 628 283 9214
Email: services@wealthfsllc.com

JIANZHI EDUCATION TECHNOLOGY GROUP COMPANY LIMITED
CONSOLIDATED BALANCE SHEETS
(Amounts in Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)

 

 

December 31,
2021

 

 

December 31,
2022

 

 

December 31,
2022

 

 

 

RMB

 

 

RMB

 

 

US$

 

Assets

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

61,266,782

 

 

 

65,055,278

 

 

 

9,432,129

 

Accounts receivable, net

 

 

104,775,266

 

 

 

17,173,021

 

 

 

2,489,854

 

Inventories

 

 

1,960,277

 

 

 

399,439

 

 

 

57,913

 

Deferred offering expenses

 

 

8,494,583

 

 

 

 

 

 

 

Due from a related party

 

 

2,473,750

 

 

 

1,051,869

 

 

 

152,507

 

Short-term prepayments

 

 

288,101,452

 

 

 

254,493,399

 

 

 

36,898,074

 

Short-term investments

 

 

11,430,000

 

 

 

4,080,000

 

 

 

591,544

 

Prepaid expenses and other current assets

 

 

5,123,221

 

 

 

9,518,326

 

 

 

1,380,029

 

Total current assets

 

 

483,625,331

 

 

 

351,771,332

 

 

 

51,002,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Right-of-use assets, net

 

 

300,024

 

 

 

 

 

 

 

Deferred tax assets, net

 

 

388,321

 

 

 

9,176,875

 

 

 

1,330,522

 

Property and equipment, net

 

 

214,717

 

 

 

153,880

 

 

 

22,310

 

Educational contents, net

 

 

206,695,356

 

 

 

214,441,814

 

 

 

31,091,140

 

Intangible assets, net

 

 

17,187,208

 

 

 

 

 

 

 

Goodwill

 

 

7,712,011

 

 

 

 

 

 

 

Long-term prepayments

 

 

143,494,187

 

 

 

151,779,105

 

 

 

22,005,902

 

Total non-current assets

 

 

375,991,824

 

 

 

375,551,674

 

 

 

54,449,874

 

Total assets

 

 

859,617,155

 

 

 

727,323,006

 

 

 

105,451,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

24,286,309

 

 

 

8,037,004

 

 

 

1,165,256

 

Contract liabilities

 

 

327,299,227

 

 

 

290,028,010

 

 

 

42,050,109

 

Salary and welfare payable

 

 

3,411,486

 

 

 

2,302,646

 

 

 

333,852

 

Income taxes payable

 

 

3,743,247

 

 

 

1,170,795

 

 

 

169,749

 

Value added tax (“VAT”) and other tax payable

 

 

2,669,408

 

 

 

4,063,389

 

 

 

589,136

 

Other payables

 

 

5,276,472

 

 

 

2,658,243

 

 

 

385,409

 

Lease liabilities, current

 

 

295,367

 

 

 

 

 

 

 

Amount due to related parties

 

 

71,707,642

 

 

 

52,711,457

 

 

 

7,642,443

 

Total current liabilities

 

 

438,689,158

 

 

 

360,971,544

 

 

 

52,335,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

2,191,500

 

 

 

 

 

 

 

Total non-current liabilities

 

 

2,191,500

 

 

 

 

 

 

 

Total liabilities

 

 

440,880,658

 

 

 

360,971,544

 

 

 

52,335,954

 

 

 

December 31,
2021

 

 

December 31,
2022

 

 

December 31,
2022

 

 

 

RMB

 

 

RMB

 

 

US$

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine equity:

 

 

 

 

 

 

 

 

 

Redeemable ordinary shares (US$0.0001 par value; 11,110,000 and nil shares issued and outstanding as of December 31, 2021 and 2022, respectively)*

 

 

45,984,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares (US$0.0001 par value; 500,000,000 shares authorized, 100,000,000 shares and 121,110,000 issued and outstanding as of December 31, 2021 and 2022)*

 

 

63,291

 

 

 

77,747

 

 

 

12,111

 

Additional paid-in capital

 

 

54,045,908

 

 

 

242,093,942

 

 

 

35,099,483

 

Statutory reserves

 

 

23,599,304

 

 

 

23,599,304

 

 

 

3,421,577

 

Retained earnings

 

 

280,983,836

 

 

 

81,822,029

 

 

 

11,863,081

 

Accumulated other comprehensive income

 

 

400,233

 

 

 

2,520,630

 

 

 

365,457

 

Total Jianzhi Education Technology Group Company Limited’s shareholders’ equity

 

 

359,092,572

 

 

 

350,113,652

 

 

 

50,761,709

 

Noncontrolling interests

 

 

13,659,049

 

 

 

16,237,810

 

 

 

2,354,261

 

Total shareholders’ equity

 

 

372,751,621

 

 

 

366,351,462

 

 

 

53,115,970

 

Total liabilities, mezzanine equity and shareholders’ equity

 

 

859,617,155

 

 

 

727,323,006

 

 

 

105,451,924

 

JIANZHI EDUCATION TECHNOLOGY GROUP COMPANY LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Amounts in Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)

 

 

For the Years Ended December 31,

 

 

 

2020

 

 

2021

 

 

2022

 

 

2022

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

Net revenues

 

 

404,931,954

 

 

 

473,247,283

 

 

 

505,724,311

 

 

 

73,323,133

 

Cost of revenues

 

 

(275,790,112

)

 

 

(369,052,134

)

 

 

(511,265,334

)

 

 

(74,126,506

)

Gross profit (loss)

 

 

129,141,842

 

 

 

104,195,149

 

 

 

(5,541,023

)

 

 

(803,373

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing expenses

 

 

5,031,526

 

 

 

7,576,963

 

 

 

7,087,625

 

 

 

1,027,609

 

General and administrative expenses

 

 

26,054,063

 

 

 

19,476,375

 

 

 

179,249,830

 

 

 

25,988,783

 

Research and development expenses

 

 

15,584,738

 

 

 

26,355,055

 

 

 

15,568,768

 

 

 

2,257,259

 

Total operating expenses

 

 

46,670,327

 

 

 

53,408,393

 

 

 

201,906,223

 

 

 

29,273,651

 

Income (loss) from operations

 

 

82,471,515

 

 

 

50,786,756

 

 

 

(207,447,246

)

 

 

(30,077,024

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

407,827

 

 

 

569,737

 

 

 

603,058

 

 

 

87,435

 

Interest income (expenses), net

 

 

53,596

 

 

 

(892,906

)

 

 

(2,088,467

)

 

 

(302,799

)

Other expenses

 

 

(19,614

)

 

 

(12,563

)

 

 

(286,522

)

 

 

(41,539

)

Government grants

 

 

4,482,816

 

 

 

6,753,388

 

 

 

1,656,077

 

 

 

240,109

 

Total other income, net

 

 

4,924,625

 

 

 

6,417,656

 

 

 

(115,854

)

 

 

(16,794

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax

 

 

87,396,140

 

 

 

57,204,412

 

 

 

(207,563,100

)

 

 

(30,093,818

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefits

 

 

(485,749

)

 

 

(4,273,788

)

 

 

10,980,054

 

 

 

1,591,958

 

Net income (loss)

 

 

86,910,391

 

 

 

52,930,624

 

 

 

(196,583,046

)

 

 

(28,501,860

)

Net income attributable to noncontrolling interests

 

 

4,586,492

 

 

 

4,672,355

 

 

 

2,578,761

 

 

 

373,885

 

Net income (loss) attributable to the Jianzhi Education Technology Group Company Limited’s shareholders

 

 

82,323,899

 

 

 

48,258,269

 

 

 

(199,161,807

)

 

 

(28,875,745

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

86,910,391

 

 

 

52,930,624

 

 

 

(196,583,046

)

 

 

(28,501,860

)

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(35,391

)

 

 

211,494

 

 

 

2,120,397

 

 

 

307,429

 

Total other comprehensive (loss) income

 

 

(35,391

)

 

 

211,494

 

 

 

2,120,397

 

 

 

307,429

 

Total comprehensive income (loss)

 

 

86,875,000

 

 

 

53,142,118

 

 

 

(194,462,649

)

 

 

(28,194,431

)

Net comprehensive income attributable to noncontrolling interests

 

 

4,586,492

 

 

 

4,672,355

 

 

 

2,578,761

 

 

 

373,885

 

Comprehensive income (loss) attributable to the Jianzhi Education Technology Group Company Limited’s shareholders

 

 

82,288,508

 

 

 

48,469,763

 

 

 

(197,041,410

)

 

 

(28,568,316

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted*

 

 

0.74

 

 

 

0.43

 

 

 

(1.68

)

 

 

(0.24

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted*

 

 

111,110,000

 

 

 

111,110,000

 

 

 

118,512,959

 

 

 

118,512,959

 

JIANZHI EDUCATION TECHNOLOGY GROUP COMPANY LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Renminbi (“RMB”) and U.S. dollars (“US$”)

 

 

For the Years Ended December 31,

 

 

 

2020

 

 

2021

 

 

2022

 

 

2022

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

86,910,391

 

 

 

52,930,624

 

 

 

(196,583,046

)

 

 

(28,501,860

)

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of property and equipment

 

 

538,303

 

 

 

78,000

 

 

 

60,837

 

 

 

8,821

 

Amortization of educational contents

 

 

24,375,147

 

 

 

45,296,565

 

 

 

91,542,454

 

 

 

13,272,408

 

Impairment of educational contents

 

 

 

 

 

 

 

 

 

 

106,182,780

 

 

 

15,395,056

 

Amortization of intangible assets

 

 

7,805,096

 

 

 

6,656,298

 

 

 

16,840,435

 

 

 

2,441,634

 

Impairment of intangible assets

 

 

 

 

 

 

 

 

 

 

12,139,226

 

 

 

1,760,022

 

Impairment of goodwill

 

 

 

 

 

 

 

 

 

 

7,712,011

 

 

 

1,118,136

 

Amortization of operating lease right-of-use assets

 

 

3,592,290

 

 

 

2,362,967

 

 

 

300,024

 

 

 

43,499

 

Provision (Reversal of provision) for doubtful accounts

 

 

210,433

 

 

 

(119,539

)

 

 

34,901,498

 

 

 

5,060,242

 

Deferred tax benefit

 

 

(45,415

)

 

 

(649,078

)

 

 

(10,980,054

)

 

 

(1,591,958

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(31,439,946

)

 

 

10,148,705

 

 

 

52,700,747

 

 

 

7,640,890

 

Inventories

 

 

1,877,720

 

 

 

15,655

 

 

 

1,560,838

 

 

 

226,300

 

Prepaid expenses and other current assets

 

 

357,319

 

 

 

(2,197,407

)

 

 

3,127,291

 

 

 

453,415

 

Short-term prepayments

 

 

12,940,022

 

 

 

(285,437,271

)

 

 

33,608,121

 

 

 

4,872,720

 

Accounts payable

 

 

7,921,537

 

 

 

1,059,057

 

 

 

(16,249,305

)

 

 

(2,355,928

)

Salary and welfare payable

 

 

415,648

 

 

 

9,831

 

 

 

(1,108,840

)

 

 

(160,767

)

Contract liabilities

 

 

(9,365,507

)

 

 

319,904,579

 

 

 

(37,271,217

)

 

 

(5,403,819

)

Income taxes payable

 

 

(903,026

)

 

 

2,822,268

 

 

 

(2,572,452

)

 

 

(372,970

)

Value added tax (“VAT”) and other tax payable

 

 

(4,325,138

)

 

 

(1,122,235

)

 

 

1,393,981

 

 

 

202,108

 

Other payables

 

 

455,342

 

 

 

(1,964,796

)

 

 

(2,787,853

)

 

 

(404,202

)

Lease liabilities

 

 

(3,566,734

)

 

 

(2,020,636

)

 

 

(295,367

)

 

 

(42,824

)

Net cash provided by operating activities

 

 

97,753,482

 

 

 

147,773,587

 

 

 

94,222,109

 

 

 

13,660,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of short-term investments

 

 

(140,145,000

)

 

 

(24,405,127

)

 

 

(3,850,000

)

 

 

(558,198

)

Proceeds from redemption of short-term investment

 

 

90,305,000

 

 

 

83,655,127

 

 

 

11,200,000

 

 

 

1,623,847

 

Purchase of property and equipment

 

 

(39,980

)

 

 

(76,280

)

 

 

 

 

 

 

Purchase of educational contents

 

 

(98,899,372

)

 

 

(64,811,320

)

 

 

(176,597,637

)

 

 

(25,604,251

)

Purchase of intangible assets

 

 

(3,669,811

)

 

 

 

 

 

 

 

 

 

Prepayment for educational contents

 

 

(12,407,962

)

 

 

(139,002,868

)

 

 

(46,223,984

)

 

 

(6,701,848

)

Lonas made to a third party

 

 

 

 

 

 

 

 

(3,015,018

)

 

 

(437,137

)

Net cash used in investing activities

 

 

(164,857,125

)

 

 

(144,640,468

)

 

 

(218,486,639

)

 

 

(31,677,587

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repayment to related parties

 

 

(26,697

)

 

 

 

 

 

(17,064,116

)

 

 

(2,474,064

)

Borrowing from related parties

 

 

75,604

 

 

 

48,808,057

 

 

 

 

 

 

 

Net proceeds raised in connection with initial public offering

 

 

 

 

 

 

 

 

146,982,044

 

 

 

21,310,393

 

Payments of issuance cost in relation with initial public offering

 

 

 

 

 

(8,621,261

)

 

 

(481,408

)

 

 

(69,798

)

Advance to a related party for issuance costs in relation with initial public offering

 

 

 

 

 

(2,512,809

)

 

 

 

 

 

 

Refund from a related party for issuance costs in relation with initial public offering

 

 

 

 

 

 

 

 

1,421,881

 

 

 

206,153

 

Deposits made to a redeemable ordinary shareholder

 

 

 

 

 

 

 

 

(4,296,606

)

 

 

(622,949

)

Net cash provided by financing activities

 

 

48,907

 

 

 

37,673,987

 

 

 

126,561,795

 

 

 

18,349,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents and restricted cash held in foreign currencies

 

 

(264,826

)

 

 

(489,011

)

 

 

1,491,231

 

 

 

216,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents and restricted cash

 

 

(67,319,562

)

 

 

40,318,095

 

 

 

3,788,496

 

 

 

549,281

 

Cash and cash equivalents and restricted cash at beginning of the year

 

 

88,268,249

 

 

 

20,948,687

 

 

 

61,266,782

 

 

 

8,882,848

 

Cash and cash equivalents and restricted cash at end of the year

 

 

20,948,687

 

 

 

61,266,782

 

 

 

65,055,278

 

 

 

9,432,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flows information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

 

1,436,662

 

 

 

2,617,807

 

 

 

1,177,693

 

 

 

170,749

 

Cash paid for interest expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash Investing and Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfer of prepaid issuance cost to additional paid-in capital

 

 

 

 

 

 

 

 

8,943,892

 

 

 

1,296,742

 

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