Cover Page
Cover Page - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Entity Addresses [Line Items] | ||
Document Type | 20-F | |
Amendment Flag | false | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 001-38235 | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | RISE Education Cayman Ltd | |
Entity Incorporation, State or Country Code | E9 | |
Entity Central Index Key | 0001712178 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Address, Country | KY | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | true | |
Entity Common Stock, Shares Outstanding | 113,030,392 | |
Document Accounting Standard | U.S. GAAP | |
Entity Address, Address Line One | c/o Maples Corporate Services Limited, PO Box 309 | |
Entity Address, Address Line Two | Ugland House | |
Entity Address, City or Town | Grand Cayman | |
Entity Address, Postal Zip Code | 1104 | |
ICFR Auditor Attestation Flag | false | |
Auditor Name | BDO China Shu Lun Pan Certified Public Accountants LLP | Ernst & Young Hua Ming LLP |
Auditor Firm ID | 1818 | 1408 |
Auditor Location | Beijing, China | Beijing, the People’s Republic of China |
American Depository Share [Member] | ||
Entity Addresses [Line Items] | ||
Trading Symbol | REDU | |
Title of 12(b) Security | American Depositary Shares, each representing two ordinary shares, par value US$0.01 per share | |
Security Exchange Name | NASDAQ | |
Business Contact [Member] | ||
Entity Addresses [Line Items] | ||
Entity Address, Country | KY | |
Entity Address, Address Line One | c/o Maples Corporate Services Limited, PO Box 309 | |
Entity Address, Address Line Two | Ugland House | |
Entity Address, City or Town | Grand Cayman | |
Entity Address, Postal Zip Code | 1104 | |
Contact Personnel Name | Ms. Lihong Wang | |
Contact Personnel Email Address | lwang@rdchina.net | |
City Area Code | 1 | |
Local Phone Number | 345 949 8066 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 16,027 | $ 2,515 | ¥ 5,134 |
Restricted cash | 5,244 | ||
Amounts due from related parties | 177 | 28 | 181 |
Prepayments and other current assets | 14,451 | 2,268 | 4,509 |
Current assets of discontinued operations (including current assets of the variable interest entity ("VIE") without recourse to the Company amounting to RMB420,254 and RMB nil as of December 31, 2020 and 2021, respectively) | 729,500 | ||
Total current assets | 30,655 | 4,811 | 744,568 |
Non-current assets: | |||
Non-current assets of discontinued operations (including non-current assets of the VIE without recourse to the Company amounting to RMB1,134,372 and RMB nil as of December 31, 2020 and 2021, respectively) | 1,681,837 | ||
Total non-current assets | 1,681,837 | ||
Total assets | 30,655 | 4,811 | 2,426,405 |
Current liabilities: | |||
Current portion of long-term loan | 226,744 | ||
Accrued expenses and other current liabilities | 8,625 | 1,353 | 1,469 |
Current liabilities of discontinued operations (including current liabilities of the variable interest entity ("VIE") without recourse to the Company amounting to RMB882,038 and RMB nil as of December 31, 2020 and 2021, respectively) | 940,142 | ||
Total current liabilities | 8,625 | 1,353 | 1,168,355 |
Non-current liabilities: | |||
Long-term loan | 191,397 | ||
Other non-current liabilities | 2,838 | 445 | |
Convertible loan from related parties | 108,334 | 17,000 | |
Non-current liabilities of discontinued operations (including non-current liabilities of the VIE without recourse to the Company amounting to RMB499,092 and RMB nil as of December 31, 2020 and 2021, respectively) | 565,147 | ||
Total non-current liabilities | 111,172 | 17,445 | 756,544 |
Total liabilities | 119,797 | 18,798 | 1,924,899 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Ordinary shares (US$0.01 par value; 200,000,000 and 200,000,000 shares authorized, 112,951,232 and 113,030,392 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 6,964 | 1,093 | 6,959 |
Additional paid-in capital | 274,036 | 43,002 | 603,173 |
Statutory reserves | 105,357 | ||
Accumulated deficit | (403,149) | (63,263) | (260,019) |
Accumulated other comprehensive income | 33,007 | 5,181 | 39,642 |
Total RISE Education Cayman Ltd shareholders' equity (deficit) | (89,142) | (13,987) | 495,112 |
Non-controlling interests | 6,394 | ||
Total equity (deficit) | (89,142) | (13,987) | 501,506 |
Total liabilities, non-controlling interests and shareholders' equity | ¥ 30,655 | $ 4,811 | ¥ 2,426,405 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020$ / shares |
Variable Interest Entity, Consolidated, Liabilities, Current, No Recourse | ¥ 882,038 | |||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent, No Recourse | ¥ 499,092 | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | ||
Common Stock, Shares Authorized | shares | 200,000,000 | 200,000,000 | 200,000,000 | |
Common Stock, Shares, Issued | shares | 113,030,392 | 113,030,392 | 112,951,232 | |
Common Stock, Shares, Outstanding | shares | 113,030,392 | 113,030,392 | 112,951,232 | |
Assets, Current | ¥ 30,655 | $ 4,811 | ¥ 744,568 | |
Assets, Noncurrent | 1,681,837 | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Assets, Current | 420,254 | |||
Assets, Noncurrent | ¥ 1,134,372 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME/(LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |||
Operating expenses: | ||||||
General and administrative | ¥ (30,003) | $ (4,708) | ¥ (17,606) | ¥ (15,275) | ||
Total operating expenses | (30,003) | (4,708) | (17,606) | (15,275) | ||
Operating loss | (30,003) | (4,708) | (17,606) | (15,275) | ||
Interest income | 2 | 0 | 13 | 80 | ||
Gain on troubled debt restructuring | 279,097 | 43,796 | 0 | 0 | ||
Net income/(loss)from continuing operations before income tax expense | 249,096 | 39,088 | (17,593) | (15,195) | ||
Net income/(loss) from continuing operations | 249,096 | 39,088 | (17,593) | (15,195) | ||
Net income/(loss) from discontinued operations, net of tax | (507,280) | (79,603) | (123,851) | 159,755 | ||
Net income/(loss) | (258,184) | (40,515) | (141,444) | 144,560 | ||
Net income /(loss) from continuing operations attributable to non-controlling interests | 0 | 0 | 0 | 0 | ||
Loss from discontinued operations attributable to non-controlling interests | (9,697) | (1,522) | (9,011) | (3,540) | ||
Less: Net loss attributable to non-controlling interests | (9,697) | (1,522) | (9,011) | (3,540) | ||
Net income/(loss) attributable to RISE Education Cayman Ltd | (248,487) | (38,993) | (132,433) | 148,100 | ||
Net income/(loss) from continuing operations attributable to RISE Education Cayman Ltd | 249,096 | 39,088 | (17,593) | (15,195) | ||
Net income/(loss) from discontinued operations attributable to RISE Education Cayman Ltd, net of tax | ¥ (497,583) | $ (78,081) | ¥ (114,840) | ¥ 163,295 | ||
Net income/(loss) per share - Basic: | ||||||
Continuous operations | (per share) | ¥ 2.21 | $ 0.35 | ¥ (0.15) | ¥ (0.13) | ||
Discontinued operations | (per share) | (4.41) | (0.69) | (1.02) | 1.44 | ||
Total net income/(loss) per share - Basic | (per share) | (2.20) | (0.34) | (1.17) | 1.31 | ||
Net income/(loss) per share - Diluted: | ||||||
Continuous operations | (per share) | 2.21 | 0.35 | (0.15) | (0.13) | ||
Discontinued operations | (per share) | (4.41) | (0.69) | (1.02) | 1.42 | ||
Total net income/(loss) per share - Diluted | (per share) | (2.20) | (0.34) | (1.17) | 1.29 | ||
Net income/(loss) per ADS*- Basic: | ||||||
Continuing operations | (per share) | 4.42 | 0.70 | (0.31) | [1] | (0.26) | [1] |
Discontinued operations | (per share) | (8.82) | (1.38) | (2.04) | [1] | 2.88 | [1] |
Total net income/(loss) per ADS - Basic | (per share) | (4.40) | (0.68) | (2.35) | [1] | 2.62 | [1] |
Net income/(loss) per ADS* - Diluted: | ||||||
Continuing operations | (per share) | 4.42 | 0.70 | (0.31) | [1] | (0.25) | [1] |
Discontinued operations | (per share) | (8.82) | (1.38) | (2.04) | [1] | 2.84 | [1] |
Total net income/(loss) per ADS - Diluted | (per share) | ¥ (4.40) | $ (0.68) | ¥ (2.35) | [1] | ¥ 2.59 | [1] |
Shares used in net income/(loss) per share computation | ||||||
Basic | 112,868,532 | 112,868,532 | 112,813,031 | 113,187,721 | ||
Diluted | 112,868,532 | 112,868,532 | 112,813,031 | 114,464,108 | ||
[1] | ADS represents 2 ordinary shares |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | ¥ (258,184) | $ (40,515) | ¥ (141,444) | ¥ 144,560 |
Other comprehensive income/(loss), net of tax of nil: | ||||
Foreign currency translation adjustments | (6,635) | (1,041) | (1,275) | (1,542) |
Other comprehensive income/(loss) | (6,635) | (1,041) | (1,275) | (1,542) |
Comprehensive income/(loss) | (264,819) | (41,556) | (142,719) | 143,018 |
Less: comprehensive income (loss) attributable to non-controlling interests | (9,697) | (1,522) | (9,011) | (3,540) |
Comprehensive income/(loss) attributable to RISE Education Cayman Ltd | ¥ (255,122) | $ (40,034) | ¥ (133,708) | ¥ 146,558 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Common Stock [Member]CNY (¥)shares | Common Stock [Member]USD ($)shares | Additional Paid-in Capital [Member]CNY (¥) | Additional Paid-in Capital [Member]USD ($) | Treasury Stock [Member]CNY (¥) | Statutory Reserves [Member]CNY (¥) | Accumulated deficit [Member]CNY (¥) | Accumulated deficit [Member]USD ($) | Accumulative other comprehensive income/(loss) [Member]CNY (¥) | Accumulative other comprehensive income/(loss) [Member]USD ($) | Total RISE Education Cayman Ltd shareholder's equity [Member]CNY (¥) | Total RISE Education Cayman Ltd shareholder's equity [Member]USD ($) | Non-controlling interests [Member]CNY (¥) | |
Balance at Dec. 31, 2018 | ¥ 440,834 | ¥ 7,074 | ¥ 600,011 | ¥ (23,460) | ¥ 78,345 | ¥ (248,674) | ¥ 42,459 | ¥ 455,755 | ¥ (14,921) | |||||||
Balance (Shares) at Dec. 31, 2018 | shares | 113,779,244 | 113,779,244 | ||||||||||||||
Net income/(loss) | 144,560 | 148,100 | 148,100 | (3,540) | ||||||||||||
Acquisition of subsidiary | 33,866 | 33,866 | ||||||||||||||
Share-based compensation | 47,889 | 47,889 | 47,889 | |||||||||||||
Issuances in relation to share option exercise | 4,647 | ¥ 32 | 4,615 | 4,647 | ||||||||||||
Issuances in relation to share option exercise (Shares) | shares | 468,384 | 468,384 | ||||||||||||||
Other comprehensive income | (1,542) | (1,542) | (1,542) | |||||||||||||
Repurchase of ordinary shares, Value | [1] | (45,953) | (45,953) | (45,953) | ||||||||||||
Repurchase of ordinary shares, Shares | shares | [1] | (1,492,308) | (1,492,308) | |||||||||||||
Retirement of treasury shares | [1] | ¥ (160) | (69,253) | ¥ 69,413 | ||||||||||||
Appropriation of statutory reserves | 26,485 | (26,485) | ||||||||||||||
Balance at Dec. 31, 2019 | 624,301 | ¥ 6,946 | 583,262 | 104,830 | (127,059) | 40,917 | 608,896 | 15,405 | ||||||||
Balance (Shares) at Dec. 31, 2019 | shares | 112,755,320 | 112,755,320 | ||||||||||||||
Net income/(loss) | (141,444) | (132,433) | (132,433) | (9,011) | ||||||||||||
Share-based compensation | 17,999 | 17,999 | 17,999 | |||||||||||||
Issuances in relation to share option exercise | 1,925 | ¥ 13 | 1,912 | 1,925 | ||||||||||||
Issuances in relation to share option exercise (Shares) | shares | 195,912 | 195,912 | ||||||||||||||
Other comprehensive income | (1,275) | (1,275) | (1,275) | |||||||||||||
Appropriation of statutory reserves | 527 | (527) | ||||||||||||||
Balance at Dec. 31, 2020 | 501,506 | ¥ 6,959 | 603,173 | 105,357 | (260,019) | 39,642 | 495,112 | 6,394 | ||||||||
Balance (Shares) at Dec. 31, 2020 | shares | 112,951,232 | 112,951,232 | ||||||||||||||
Net income/(loss) | (258,184) | $ (40,515) | (248,487) | (248,487) | (9,697) | |||||||||||
Share-based compensation | 9,537 | 9,537 | 9,537 | |||||||||||||
Issuances in relation to share option exercise | 812 | ¥ 5 | 807 | 812 | ||||||||||||
Issuances in relation to share option exercise (Shares) | shares | 79,160 | 79,160 | ||||||||||||||
Other comprehensive income | (6,635) | (1,041) | (6,635) | (6,635) | ||||||||||||
Appropriation of statutory reserves | 1,565 | (1,565) | ||||||||||||||
Disposal of RISE IP&RISE HK | (339,481) | (339,481) | (339,481) | |||||||||||||
Disposal of WFOE | 3,303 | ¥ (106,922) | 106,922 | ¥ 3,303 | ||||||||||||
Balance at Dec. 31, 2021 | ¥ (89,142) | $ (13,987) | ¥ 6,964 | $ 1,093 | ¥ 274,036 | $ 43,002 | ¥ (403,149) | $ (63,263) | ¥ 33,007 | $ 5,181 | ¥ (89,142) | $ (13,987) | ||||
Balance (Shares) at Dec. 31, 2021 | shares | 113,030,392 | 113,030,392 | ||||||||||||||
[1] | In November 2018, the Board of Directors approved share repurchase program to purchase up to US$30,000 of the Company’s ordinary shares. As of December 31, 2019, pursuant to the share repurchase program, the Company repurchased 1,158,741 outstanding ADS representing 2,317,482 outstanding ordinary shares for an aggregated purchase price of RMB69,413. All shares repurchased were retired as of December 31, 2019 (Note 2). |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019CNY (¥)shares | Nov. 30, 2018USD ($) | |
Share repurchase program, authorized amount | $ | $ 30,000 | |
Repurchase of ordinary share | ¥ | ¥ 48,047 | |
Share Repurchase Plan [Member] | ||
Repurchase of ordinary shares | shares | 2,317,482 | |
American Depository Shares [Member] | ||
Repurchase of ordinary shares | shares | 1,158,741 | |
American Depository Shares [Member] | Share Repurchase Plan [Member] | ||
Repurchase of ordinary share | ¥ | ¥ 69,413 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income/(loss) from continuing operations | ¥ 249,096 | $ 39,088 | ¥ (17,593) | ¥ (15,195) |
Gain on troubled debt restructuring | (279,097) | (43,796) | 0 | 0 |
Changes in operating assets and liabilities: | ||||
Prepayments and other current assets | (9,942) | (1,560) | 1,437 | (5,946) |
Accrued expenses and other current liabilities | 7,160 | 1,125 | (2,459) | 983 |
Other non-current liabilities | 2,838 | 445 | 0 | 0 |
Net cash (used in) continuing operating activities | (29,945) | (4,698) | (18,615) | (20,158) |
Net cash (used in) discontinued operating activities | (509,825) | (80,003) | (187,127) | (19,696) |
Net cash (used in) operating activities | (539,770) | (84,701) | (205,742) | (39,854) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from disposal of subsidiaries | 15,932 | 2,500 | 0 | 0 |
Net cash generated from continuing investing activities | 15,932 | 2,500 | 0 | 0 |
Net cash (used in) discontinued investing activities | (53,535) | (8,401) | (111,782) | (114,716) |
Net cash (used in) investing activities | (37,603) | (5,901) | (111,782) | (114,716) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Repurchase of ordinary shares | 0 | (48,047) | ||
Principal repayments on loans | (124,987) | (19,613) | (62,599) | (97,332) |
Proceeds from exercise of share options | 812 | 127 | 1,925 | 4,647 |
Convertible loan from related party | 108,334 | 17,000 | 0 | 0 |
Net cash generated used in continuing financing activities | (15,841) | (2,486) | (60,674) | (140,732) |
Net cash (used in) discontinued financing activities | (23,308) | (3,658) | 0 | 0 |
Net cash (used in) financing activities | (39,149) | (6,144) | (60,674) | (140,732) |
Effects of exchange rate changes | (6,635) | (1,041) | (5,443) | 1,342 |
Net decrease in cash, cash equivalents and restricted cash | (623,157) | (97,787) | (383,641) | (293,960) |
Cash, cash equivalents and restricted cash at beginning of year | 639,184 | 100,302 | 1,022,825 | 1,316,785 |
Cash, cash equivalents and restricted cash at end of year | 16,027 | 2,515 | 639,184 | 1,022,825 |
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of year | 628,806 | 998,674 | ||
Cash, cash equivalents and restricted cash of continuing operations at end of year | 16,027 | 2,515 | 10,378 | 24,151 |
Supplemental disclosures of cash flow information of continuing operations: | ||||
Cash and cash equivalents | 16,027 | 2,515 | 5,134 | 14,043 |
Restricted cash | ¥ 0 | $ 0 | ¥ 5,244 | ¥ 10,108 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | 1. ORGANIZATION AND BASIS OF PRESENTATION RISE Education Cayman Ltd (the “Company”) is a limited company incorporated in the Cayman Islands under the laws of Cayman Islands on July 16, 2013. The Company does not conduct any substantive operations on its own but instead conducts its primary business operations through its wholly-owned subsidiaries, the variable interest entity (the “VIE”), and the VIE’s subsidiaries and schools, which are located in the People’s Republic of China (the “PRC” or “China”) and Hong Kong Special Administration Region (“Hong Kong”). The VIE, the VIE’s subsidiaries and schools, hereinafter are collectively referred to as the “VIEs”. The accompanying consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries and the VIEs (hereinafter collectively referred to as the “Group”). As of December 31, 2021, the Group only includes the Company, and the other two wholly-owned subsidiaries registered in the Cayman Islands. The Group was principally engaged in the business of providing junior ELT services in China primarily under the “RISE” brand. The Group offered wide range of educational programs, services and products, consisting primarily of educational courses, sale of course materials, franchise services, and study tours. On December 1, 2021, the Company, Wuhan Xinsili Culture Development Co., Ltd. (the “Buyer SPV”), Rise (Tianjin) Education Information Consulting Co., Ltd. (“WFOE”), Beijing Step Ahead Education Technology Development Co., Ltd. (“VIE”), RISE Education International Limited (“Rise HK”) and Rise IP (Cayman) Limited (“Rise IP”) entered into a purchase agreement (the “WFOE Purchase Agreement”). The Buyer SPV is a newly-formed limited liability company controlled by the buyer consortium (the “Buyer Consortium”) consisting of certain franchisees of the Company and an affiliate of the Company’s senior management, who are PRC nationals. Pursuant to the WFOE Purchase Agreement, the Company has agreed to, through Rise HK, sell all of the equity interests in WFOE to the Buyer Consortium (the “WFOE Sale”), in consideration of the Buyer Consortium (i) paying to Rise HK a nominal consideration, and (ii) assuming all liabilities of WFOE and its subsidiaries. Conditions precedent to the WFOE Sale include, among others, (i) Rise HK and Rise IP shall grant WFOE or other entities designated by the Buyer Consortium a royalty-free, perpetual, irrevocable and exclusive license over all intellectual property rights owned by or licensed to Rise HK and/ or Rise IP, (ii) RISE HK shall make an additional capital contribution to WFOE in US dollars equivalent of RMB20,000, and (iii) the lenders (the “Lenders”) of the facilities agreement dated March 18, 2021 relating to the term and revolving facilities of up to an aggregate amount of US$80,000 (the “Facilities Agreement”) shall have released the applicable guarantees, obligations and equity pledges provided by WFOE and VIE. In addition, the Buyer SPV and its affiliates warrant that they will have no less than RMB100,000 at the closing of the WFOE Sale to fund the business operations of WFOE and its subsidiaries after completion of the Sale. On the same day, the Company entered into a share purchase agreement (the “IP Holdco Purchase Agreement”) with Rise Education Cayman I Ltd (the “IP Seller”) and Bain Capital Rise Education IV Cayman Limited, a major shareholder of the Company (the “Shareholder”). The IP Seller is also the borrower (the “Borrower”) under the Facilities Agreement. Pursuant to the IP Holdco Purchase Agreement, the Company and the IP Seller have agreed to sell all of the equity interests in Rise HK and Rise IP to the Shareholder in consideration of the Shareholder (i) on behalf of the Borrower, paying US$2,500 to the Lenders in settlement of the Facilities Agreement, and (ii) causing Rise HK and Rise IP to grant WFOE or other entities designated by the Buyer Consortium a royalty-free, perpetual, irrevocable and exclusive license over all intellectual property rights owned by or licensed to Rise HK and/or Rise IP (the “IP Sale”, and together with the WFOE Sale, the “Sale”). The IP Sale is subject to, among other customary conditions precedent, the completion of the WFOE Sale. In connection with the Sale, the Borrower, WFOE, VIE and the Shareholder and certain other parties entered into a settlement agreement (the “Settlement Agreement”) with the Lenders on December 1, 2021. Under the Settlement Agreement, the Lenders agreed to (i) acknowledge and consent to the Sale, (ii) discharge and release all liabilities and obligations of the Company and its subsidiaries under the Facilities Agreement in the amount of approximately US$55,746; (iii) terminate, release and discharge all security interest, guarantee and indemnity created in connection with the Facilities Agreement; and (iv) waive, release and discharge all claims arising from or in connection with the Facilities Agreement, in exchange for (i) an aggregate amount of approximately US$10,377, and (ii) the transfer of all interest in the Edge business (the “Edge Business”) that offers admission consulting, academic tutoring and test preparation services in Hong Kong and Singapore for students who intend to study abroad to a person nominated by the Lenders, and the obligation of the Borrower and the Shareholder to use their respective reasonable endeavors to run and manage the sale of the Edge Business to a third party for the 12 months following completion of the settlement contemplated under the Settlement Agreement (the “Settlement”). The Settlement is subject to, among other customary conditions precedent, the credit approval for each Lender, which the Lenders undertake to take all reasonable actions and steps required to obtain on or before December 17, 2021. In order for the Company to make the settlement payment under the Settlement Agreement, make an additional capital contribution to WFOE pursuant to the WFOE Purchase Agreement and pay for certain operating expenses, the Company entered into a convertible loan deed with the Shareholder on December 1, 2021 (the “Convertible Loan Deed”), pursuant to which the Shareholder will provide an interest-free convertible loan of US$17,000 to the Company for a period of 360 days, convertible into ordinary shares of the Company at US$0.35 per share, or US$0.70 per ADS, representing a premium of 10% over the volume weighted average closing price of the Company’s ADSs (each representing two ordinary shares) published on the relevant page on Bloomberg that shows such price on each day for a period of ten trading days prior to the date of the Convertible Loan Deed (the “Convertible Loan”). In addition, at any time prior to the date falling 30 days after the date of the Convertible Loan Deed (the “Solicitation Period”), the Company has the right to solicit and raise alternative financing and prepay any drawn portion of the Convertible Loan and cancel any undrawn portion of the Convertible Loan in full with proceeds from such alternative financing. The Shareholder shall not have the right to convert the Convertible Loan during the Solicitation Period. On December 30, 2021, the Company has closed the “Sale”, in which, the Company has sold (i) all of the equity interests in Rise (Tianjin) Education Information Consulting Co., Ltd. to Wuhan Xinsili Culture Development Co., Ltd. on December 28, 2021; and (ii) all of the equity interests in RISE Education International Limited and Rise IP (Cayman) Limited to Bain Capital Rise Education IV Cayman Limited on December 30, 2021. Upon completion of the Sale, the Company has, through its subsidiaries, sold substantially all its assets and becomes a “public shell”. In connection with the Sale, on December 30, 2021, the settlement (“Settlement”) with the lenders (“Lenders”) of the facilities agreement dated March 18, 2021 relating to the term and revolving facilities of up to an aggregate amount of US$80,000 has also been completed. As part of the Settlement, all interest in the Edge business that offers admission consulting, academic tutoring and test preparation services in Hong Kong and Singapore for students who intend to study abroad has been transferred to a person nominated by the Lenders. As of December 31, 2021, details of the Company’s subsidiaries are as follows: Name Date of Place of Percentage Principal activity Subsidiaries of the Company: RISE Education Cayman III Ltd (“Cayman III”) July 29, 2013 Cayman Islands 100 % Investment holding RISE Education Cayman I Ltd (“Cayman”) June 19, 2013 Cayman Islands 100 % Investment holding Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). Going concern The Group has adopted ASC 205-40, During the year ended December 31, 2021, the Company has, through its subsidiaries, sold substantially all its assets and becomes a “public shell”. That means there will be no revenues, but operating expenses incurred in the future. As of December 31, 2021, although the Group had a working capital surplus of RMB22.0 million, cash and cash equivalents of RMB16.0 million, but there is still legal fee, audit fee and other miscellaneous fee incurred for the services of the 2021 financial statement during the first half year of 2022. Therefore, these conditions considered in aggregate that raise substantial doubt regarding the Group’s ability to continue as a going concern within one year after the date on which the financial statements of 2021 are issued. The Group has plans in place to involve new operating business, and began exploring strategic alternatives, including business combinations. On February 8, 2022, the Company and Dada Auto Inc. (“NaaS”), a leading operation and technology provider serving China’s electric vehicle charging market, executed a definitive Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which the shareholders of NaaS will exchange all of the issued and outstanding share capital of NaaS for newly issued shares of the Company on the terms and conditions set forth therein in a transaction exempt from the registration requirements under the Securities Act of 1933 (the “Transaction”). Upon consummation of the Transaction, NaaS will become a wholly-owned subsidiary of the Company. On April 29, 2022, the Company’s extraordinary general meeting of shareholders (the “EGM”) was held. At the EGM, shareholders approved, through a special resolution, the transactions contemplated in the Merger Agreement. The Company and NaaS anticipate that the Transaction will be completed around mid-2022, subject to the satisfaction of closing conditions set forth in the Merger Agreement, including among other things, receipt of Company shareholder approval and regulatory approvals, including necessary PRC regulatory approvals (if applicable) and the continuous listing of the Company on the Nasdaq. After considering management’s plans, it is probable that the Merger with NaaS will be effectively implemented and would bring sufficient funding for the Company to continue as a going concern. Therefore, substantial doubt about the Group’s ability to continue as a going concern is alleviated. The Group’s consolidated financial statements have been prepared in accordance with U.S. GAAP on a going concern basis. The going concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed in the consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, and the VIEs. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIEs have been eliminated upon consolidation. Results of subsidiaries, businesses acquired from third parties and the VIEs are consolidated from the date on which control is obtained by the Company. The Company deconsolidates its subsidiaries or business in accordance with ASC 810 as of the date the Company ceased to have a controlling financial interest in the subsidiaries. The Company accounts for the deconsolidation of its subsidiaries or business by recognizing a gain or loss in net income/loss attributable to the Company in accordance with ASC 810. This gain or loss is measured at the date the subsidiaries are deconsolidated as the difference between (a) the aggregate of the fair value of any consideration received, the fair value of any retained non-controlling non-controlling non-controlling The Company assesses whether a deconsolidation is required to be presented as discontinued operations in its consolidated financial statements on the deconsolidation date. This assessment is based on whether or not the deconsolidation represents a strategic shift that has or will have a major effect on the Company’s operations or financial results. If the Company determines that a deconsolidation requires presentation as a discontinued operation on the deconsolidation date, or at any point during the one-year Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include valuation allowance for deferred tax assets, uncertain tax positions, the initial valuation of the assets acquired and liabilities assumed and non-controlling right-of-use Convenience translation Amounts in the United States Dollars (“US$”) are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.3726 per US$1.00 on December 30, 2021 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. Foreign currency The functional currency of the Company, its Cayman subsidiaries and Rise HK are the US$, the functional currency of Edge Franchising and Edge Online Co. Limited are the Hong Kong Dollars (“HK$”). The Company’s PRC subsidiaries and the VIEs determined their functional currency to be Renminbi (the “RMB”). The Group uses the RMB as its reporting currency. Each entity in the Group maintains its financial records in its own functional currency. Transactions denominated in foreign currencies are measured at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rates prevailing at the balance sheet date. Non-monetary The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of shareholders’ equity. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. Restricted cash Restricted cash primarily represents deposits held in a designated bank account as security for the interest and principal payments within one year on the Group’s long-term loan; and deposits restricted as to withdrawal or use under government regulations. In November 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows beginning-of-period end-of-period Investments - Discontinued Operations Short-term investments The Group’s short-term investments comprise primarily of cash deposits at floating rates based on daily bank deposit rates with original maturities ranging from over three months to six months. Long-term investment The Group’s long-term investment is an equity investment in unlisted company based in the PRC over which the Group neither has significant influence nor control through investment in common stock or in-substance The Group adopted ASC 321, Investments — Equity Securities (“ASC 321”) on January 1, 2018, pursuant to which, equity investments with readily determinable fair value, except for those accounted for under the equity method, those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Group elected to use the measurement alternative to measure all its investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The Group makes a qualitative assessment of whether the equity investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group has to recognize an impairment loss in the consolidated statements of income/(loss) equal to the difference between the carrying value and fair value. As stipulated in the investment agreement, the Group contributed an additional RMB4,000 to the equity investee in 2020. The Group recognized impairment charge of nil, RMB37,000 and nil for the year 2019, 2020 and 2021, respectively. There were also no unrealized gains (upward adjustments) or losses (downward adjustments), excluding impairment resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer during the periods presented. Inventories - Discontinued Operations Inventories are finished goods and mainly comprised of textbooks and other educational study tools (“course materials”). Course materials are stated at the lower of cost or market. Cost is determined using the weighted average cost method. As of December 31, 2019, 2020 and 2021, the Group did not have any provision for inventories. Property and equipment - Discontinued Operations Property and equipment is stated at cost less accumulated depreciation and impairment. Depreciation is calculated on a straight line basis over the following estimated useful lives: Electronic equipment 3 years Furniture 3 – 5 years Vehicles 4 years Leasehold improvements Shorter of the lease term or estimated useful life Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of (loss)/income. Direct costs that are related to the construction of property and equipment, and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment, and the depreciation of these assets commences when the assets are ready for their intended use. Segment reporting In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Group has only one reportable segment since the Group does not distinguish revenues, costs and expenses by operating segments in its internal reporting, and reports costs and expenses by nature as a whole. The Group’s CODM, who has been identified as the Chief Executive Officer of the Group, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole. The Group does not distinguish among markets or segments for the purpose of internal reports. Substantially all of the Group’s revenues for the years ended December 31, 2019, 2020 and 2021 were generated from the PRC. As of December 31, 2020, a majority of the long-lived assets of the Group are located in the PRC, and therefore, no geographical segments are presented. At the end of December 2021, the Group disposed all of the assets located in the PRC. Troubled Debt Restructuring The Group accounts for a debt amendment as a troubled debt restructuring when the transaction meets the two criteria: 1) The Group was experiencing financial difficulties; 2) the lender was granting a concession when the effective borrowing rate on the restructured debt is less than the effective borrowing on the original debt. If future undiscounted cash flows is greater than the net carrying value of the original debt, no gain is recognized, and a new effective interest rate is established based on the carrying value of the original debt and the revised cash flows. If future undiscounted cash flows is less than the net carrying value of the original debt, the difference between future undiscounted cash flows and the net carrying value of the original debt is recognized as gain on troubled debt restructuring, and the carrying value of the debt is adjusted to the future undiscounted cash flow amount. According to ASC205-20-45, when the debt will be not assumed by the buyer in the transaction and is required to be repaid as a result of the disposal, the interest cost on the debt should be allocated to discontinued operations and the debt should be allocated to continuing operations. For the year ended December 31, 2021, the Company recognized gain on debt distinguishment of R M continuing operations. Non-controlling For certain subsidiaries of the VIE, a non-controlling non-controlling non-controlling non-controlling Goodwill – Discontinued Operations The Group assesses goodwill for impairment in accordance with ASC 350-20, Intangibles—Goodwill and Other: Goodwill 350-20”), 350-20. There was only one reporting unit (that also represented the operating segment) as of December 31, 2020 and 2021, respectively. Goodwill was allocated to the one reporting unit as of December 31, 2020 and 2021, respectively. The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step 350-20. more-likely-than-not two-step On January 1, 2020, the Group adopted ASU No. 2017-04, 810-10, Intangible assets - Discontinued Operations Intangible assets with finite lives are carried at cost less accumulated amortization. Amortization of finite-lived intangible assets except for student base is computed using the straight-line method over the estimated useful lives. Student base is amortized using an accelerated pattern based on the estimated student attrition rate of the acquired schools. The estimated useful lives of intangible assets from the date of purchase are as follows: Category Estimated Useful Life Courseware license 15 years Franchise agreements 2.5-3 years Student base 3-5 years Trademarks 10-15 years Purchased software 3-5 Licensed copyright The shorter of contractual terms Teaching course materials 10 years Impairment of long-lived assets other than goodwill – Discontinued Operations The Group evaluates its long-lived assets, including fixed assets, intangible assets and operating lease right-of-use re-sell/sublicense Business Combinations The Group accounts for business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations non-controlling non-controlling In a business combination achieved in stages, the Group re-measured re-measurement The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling Fair value of financial instruments – Discontinued Operations Financial instruments include cash and cash equivalents, short-term investments, restricted cash, certain other current assets, long-term investment, accounts payable, long-term loan, customer advances, lease liabilities and certain other current liabilities. For long-term investment, the Group elected to use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The carrying amounts of remaining financial instruments, except for the long-term loan, approximate their fair values because of their short-term maturities. The carrying amount of the long-term loan approximates its fair value due to the fact that the related interest rate approximates the interest rates currently offered by financial institutions for similar debt instruments of comparable maturities. Revenue recognition- Discontinued Operations On January 1, 2018, the Group adopted ASC 606, Revenue from contracts with customers Revenue Recognition. The Group’s revenue recognition policies following the adoption of ASC 606 are as follows: Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the Group expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Group determines are within the scope of the new revenue recognition accounting standard, the Group performs the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The Group only applies the five-step model to contracts when it is probable that the Group will collect the consideration it is entitled to in exchange for the goods or services transferred to the customer. At contract inception, the Group assesses the goods or services promised within each contract to determine those that represent performance obligations, and assess whether each promised good or service is distinct. The Group then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Revenue is recognized net of business tax, value added taxes and tax surcharges. Contract liabilities relate to contracts where the Group received payments but has not yet satisfied the related performance obligations. The advance consideration received from customers for the services is a contract liability until services are provided to the customer and are presented in “deferred revenue and customer advances” in the consolidated balance sheets. Contract assets include costs to obtain contracts with customers. Costs to obtain contracts with customers are incremental costs to obtain franchise contracts, which are recorded as prepayment and other current assets, and other non-current assets The primary sources of the Group’s revenues are as follows: (a) Educational programs Educational programs’ contracts generally consist of two performance obligations, English courses and course materials, which are both capable of being distinct and distinct in the context of the contract. The transaction price is stated in the contract and known at the time of contract inception, therefore no variable consideration exists. The Group may issue promotional coupons to attract enrollment for its courses. The promotional coupons are not issued in conjunction with a concurrent revenue transaction and are for a fixed RMB amount that can only be redeemed to reduce the amount of the tuition fees for future courses. The promotional coupons are accounted for as a reduction of the transaction price and are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. Revenue is allocated to each performance obligation based on its standalone selling price. The Group generally determines standalone selling prices based on the prices charged to students. If the standalone selling price is not observable through past transactions, the Group estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Course fees are collected in full in advance of the commencement of each course and each course comprises of a fixed amount of classes. The Group uses the student’s daily attendance records of both offline and online courses, an output measure, to recognize revenue over time as it best depicts the simultaneous consumption and delivery of educational program services. Students are allowed to return course materials if they are unused. However, once the student attends the first class of the respective course, course materials cannot be returned. Therefore, revenue associated with distinct course materials is recognized at the point in time when control transfers to the student, generally when the student attends the first class of the respective course. According to local education bureau regulations, depending on a school’s location and the amount of classes remaining for a course, the Group may be required to refund course fees for any remaining undelivered classes to students who withdraw from a course. The refund is recorded as a reduction of the related course fees received in advance and has no impact on recognized revenue. Refunds on recognized revenue were insignificant for all periods presented. To be consistent with our management reporting framework, revenues from educational programs include revenues generated by The Edge starting from the first quarter of 2019 and revenues generated from Can-Talk (b) Franchise revenues Franchise revenues includes non-refundable initial (c) Other revenues Other revenues comprise mainly of the provision of overseas and domestic study tour services. The Group determined the overseas study tours contract contains a single performance obligation and the Group is the principal in providing overseas study tours services as it controls such services before the services are transferred to the customer. Therefore, the Group recognizes study tours revenue on a gross basis. The Group recognize revenue over the service period of the study tour, which is, generally around two to three weeks, as it best depicts the simultaneous consumption and delivery of overseas study tours services. Advertising expenditures- Discontinued Operations Advertising costs are expensed when incurred and are included in selling expenses in the consolidated statements of (loss)/income. Leases - Discontinued Operations The Group adopted ASU No. 2016-02, Leases and non-lease The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a right-of-use COVID-19. Upon adoption of ASC 842, the Group recognized ROU assets of RMB601,610 and total lease liabilities (including current and non-current) operating leases The Group’s operating leases mainly related to offices and classroom facilities. Income/(loss) per share In accordance with ASC 260, Earnings Per Share Share-based compensation – Discontinued Operations The Group applies ASC 718, Compensation — Stock Compensation In accordance with ASC 718, the Group recognizes share-based compensation cost for equity awards to employees with a performance condition based on the probable outcome of that performance condition — compensation cost is recognized if it is probable that the performance condition will be achieved and shall not be recognized if it is not probable that the performance condition will be achieved. In accordance with ASC 718, the effect of a market condition is reflected in the grant-date fair value of the granted equity awards. The Group recognizes share-based compensation cost for equity awards with a market condition provided that the requisite service is rendered, regardless of when, if ever, the market condition is satisfied. A change in any of the terms or conditions of the awards is accounted for as a modification of the award. When the vesting conditions (or other terms) of the equity awards granted to employees are modified, the Group first determines on the modification date whether the original vesting conditions were expected to be satisfied, regardless of the entity’s policy election for accounting for forfeitures. If the original vesting conditions are not expected to be satisfied, the grant-date fair value of the original equity awards are ignored, and the fair value of the equity award measured at the modification date is recognized if the modified award ultimately vests. When a vesting condition that is probable of achievement is modified and the new vesting condition also is probable of achievement, the compensation cost to be recognized if either the original vesting condition or the new vesting condition is achieved cannot be less than the grant-date fair value of the original award. That compensation cost is recognized if either the original or modified vesting condition is achieved. Cancellation of the awards accompanied by the concurrent grant of a replacement award is also accounted for as a modification of the terms of the cancelled awards. Therefore, incremental compensation cost shall be measured as the excess of the fair value of the replacement award or other valuable consideration over the fair value of the cancelled award at the cancellation date. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the fair value of the awards and other pertinent factors at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For unvested awards, the Group recognizes over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. If the fair value of the modified award is lower than the fair value of the original award immediately before modification, the minimum compensation cost the Group recognizes is the cost of the original award. The Group uses the accelerated method for all awards granted with graded vesting service conditions, and the straight-line method for awards granted with non-graded Income taxes The Group accounts for income taxes under ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s consolidated financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Group recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2020 and 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Group is considered exempted Cayman Islands Companies and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. Government subsidies- Discontinued Operations Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Government subsidies of non-operating non-operating Employee benefit expenses- Discontinued Operations All eligible employees of the Group are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the qualified employees’ salaries. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed. The Group has no further payment obligations once the contributions have been paid. Comprehensive income/(loss) Comprehensive (loss)/income is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income Treasury shares In November 2018, the Board of Directors approved a share repurchase plan (“2018 repurchase plan”). The Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is initially recorded in the “Treasury Shares” line item in the consolidated balance sheets. Upon retirement, the ordinary shares account will be debited only for the aggregate par value of the retired shares, and the excess of the acquisition cost of treasury shares over the aggregate par value is allocated to the additional paid-in Recent accounting pronouncements In December 2019, the FASB issued ASU 2019-12, Income Tax (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU No. 2020-04, In August 2020, the FASB issued ASU No. 2020-06, 470- 815-40): 2020-06), if-converted In October 2020, the FASB issued ASU No. 2020-10, In January 2021, the FASB issued ASU No. 2021-01, 2020-04, In May 2021, the FASB issued ASU No. 2021-04, 470-50), 815-40) In October 2021, the FASB issued ASU No. 2021-08, |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operation [Abstract] | |
DISCONTINUED OPERATIONS | 3. DISCONTINUED OPERATIONS The Company has sold (i) all of the equity interests in Rise (Tianjin) Education Information Consulting Co., Ltd. to Wuhan Xinsili Culture Development Co., Ltd. on December 28, 2021; and (ii) all of the equity interests in RISE Education International Limited and Rise IP (Cayman) Limited to Bain Capital Rise Education IV Cayman Limited on December 30, 2021. Upon completion of the Sale, the Company has, through its subsidiaries, sold substantially all its assets. See Note 1. As refer to Note 2 – Principles of consolidation, in connection with the Sale, the Group evaluated and concluded that the subsidiaries in the Sale list should be accounted as discontinued operations during the year ended and as of December 31, 2021. During the year ended December 31, 2021, prior to the Sale mentioned above, details of the Company’s principal subsidiaries, the VIE and the VIE’s subsidiaries and schools in the Sale list are as follows: Percentage of equity interest attributable Date of Place of to the Principal Name establishment establishment company activity Subsidiaries of the Company: Rise IP (Cayman) Limited (“Rise IP”) 24-Jul-13 Cayman Islands 100% Educational consulting Edge Franchising Co., Limited (“Edge Franchising”) 16-Mar-16 Hong Kong 100% Educational consulting Rise Education International Limited (“Rise HK”) 24-Jun-13 Hong Kong 100% Educational consulting Edge Online Co., Limited 1-Apr-18 Hong Kong 100% Educational consulting Rise (Tianjin) Education Information Consulting Co., Ltd. (“Rise Tianjin” or “WFOE”) 12-Aug-13 PRC 100% Educational consulting, Sale of course materials, study tour service VIE: Beijing Step Ahead Education Technology Development Co., Ltd. 2-Jan-08 PRC — Educational consulting VIE’s subsidiaries and schools: Beijing Haidian District Step Ahead Training School 18-Sep-08 PRC — Language education Beijing Shijingshan District Step Ahead Training School 14-Jul-09 PRC — Language education Beijing Changping District Step Ahead Training School 3-Jul-09 PRC — Language education Beijing Chaoyang District Step Ahead Training School 20-Jul-09 PRC — Language education Beijing Xicheng District RISE Immersion Subject English Training School 5-Feb-10 PRC — Language education Beijing Dongcheng District RISE Immersion Subject English Training School 30-Jul-10 PRC — Language education Beijing Tongzhou District RISE Immersion Subject English Training School 19-Apr-11 PRC — Language education Beijing Daxing District RISE Immersion Subject English Training School 31-Mar-13 PRC — Language education Beijing Fengtai District RISE Immersion Subject English Training School 28-Feb-12 PRC — Language education Percentage of equity interest attributable Date of Place of to the Principal Name establishment establishment company activity Beijing RISE Immersion Subject English Training School Co., Ltd. 26-Oct-18 PRC — Language education Beijing Step Ahead Rise Education 11-Dec-19 PRC — Language education Beijing Huairou Ruida Education Training School 19-Jan-18 PRC Language education Shanghai Boyu Investment Management Co., Ltd. 29-Jan-12 PRC — Language education Shanghai Riverdeep Education Information Consulting Co., Ltd. 8-Mar-10 PRC Educational consulting services Shanghai Ruiaidisi English Training School Co., Ltd. 5-Aug-19 PRC — Language education Kunshan Ruiaidisi Education Technology Co., Ltd. 30-Jul-19 PRC — Language education Guangzhou Ruisi Education Technology Development Co., Ltd. 17-Aug-12 PRC — Training services Guangzhou Yuexiu District RISE Immersion Subject English Training School 29-Apr-14 PRC — Language education Guangzhou Haizhu District RISE Immersion Subject English Training School-Chigang 8-Dec-14 PRC — Language education Guangzhou Tianhe District RISE Immersion Subject English Training School 11-Jul-17 PRC — Language education Guangzhou Liwan District Rise Education Training Center Co., Ltd. 25-Nov-19 PRC — Language education Guangzhou Tianhe District Ruisi Education Consulting Co., Ltd. 11-Jul-17 PRC — Language education Foshan Nanhai District Step Ahead Education Consulting Co., Ltd. 21-Jan-20 PRC — Language education Shenzhen Mei Ruisi Education Management Co., Ltd. 28-Feb-14 PRC — Training services Shenzhen Futian District Rise Training Center 8-Jan-15 PRC — Language education Shenzhen Nanshan District Rise Training Center 26-May-15 PRC — Language education Shenzhen Luohu District Rise Education Training Center 3-Aug-17 PRC — Language education Shenzhen Longhua District Minzhi Rise Training Center 27-May-20 PRC — Language education Percentage of equity interest attributable Date of Place of to the Principal Name establishment establishment company activity Wuxi Rise Foreign Language Training Co., Ltd. 5-Jun-13 PRC — Training services Wuxi Ruiying English Training Center Co., Ltd. 10-Jun-19 PRC — Language education Ruisixing (Tianjin) Travel Services Co., Ltd. 3-Jul-18 PRC — Traveling services Hebei Camphor Tree Information Technology Co., Ltd. 5-Nov-15 PRC — Investment holding Shijiazhuang Forest Rock Education Technology Co., Ltd. 28-Aug-18 PRC — Investment holding Shijiazhuang Xinhua District Oriental Red American Education Training School 14-Nov-19 PRC — Language education Shijiazhuang Xinhua District Zhuoshuo Training School Co., Ltd. 13-Dec-19 PRC — Language education Shijiazhuang Yuhua District Ai Ruisi Education Training School 1-Feb-19 PRC — Language education Shijiazhuang Yuhua District Oriental Red Education Training School 1-Feb-19 PRC — Language education Shijiazhuang Chang’an District Jinshuo Culture Education Training School Co., Ltd. 1-Apr-19 PRC — Language education Shijiazhuang Qiaoxi District Deshuo Training School Co., Ltd. 27-Aug-20 PRC — Language education Shijiazhuang Yuhua District Boshuo Training School Co., Ltd. 2-Jan-20 PRC — Language education The following tables set forth the assets, liabilities, results of operations and cash flows of discontinued operations, that were included in the Group’s consolidated financial statements (in thousands): As at December 31, 2020 RMB ASSETS Current assets: Cash and cash equivalents 549,486 Restricted cash 79,320 Accounts receivable, net 2,281 Amounts due from related parties 552 Inventories 7,814 Prepayments and other current assets 90,047 Total current assets of discontinued operations 729,500 Non-current Property and equipment, net 107,537 Intangible assets, net 185,647 Long-term investment — Goodwill 659,255 Deferred tax assets, net 34,241 Other non-current 55,853 Operating lease right-of-use 639,304 Total non-current 1,681,837 Total assets belong to discontinued operations 2,411,337 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable 11,028 Accrued expenses and other current liabilities 162,724 Deferred revenue and customer advances 563,736 Income taxes payable 5,556 Current portion of operating lease liabilities 197,098 Total current liabilities of discontinued operations 940,142 Non-current non-current Deferred revenue and customer advances 38,204 Operating lease liabilities 452,485 Deferred tax liabilities, net 24,011 Other non-current 50,447 Total non-current 565,147 Total liabilities of discontinued operations 1,505,289 2019 2020 2021 RMB RMB RMB Revenues 1,529,447 958,467 890,386 Cost of revenues (694,693 ) (602,934 ) (596,412 ) Gross profit 834,754 355,533 293,974 Operating expenses: Selling and marketing (307,339 ) (233,687 ) (191,816 ) General and administrativ e (289,351 ) (242,633 ) (417,381 ) Research and development expenses — — — Total operating expenses (596,690 ) (476,320 ) (609,197 ) Operating income/(loss) 238,064 (120,787 ) (315,223 ) Interest income 17,872 15,078 8,640 Interest expense (34,093 ) (23,611 ) (16,823 ) Foreign currency exchange gain/(loss) (1,506 ) (187 ) 1,627 Other income, net 10,115 26,961 (78,908 ) Impairment loss of long-term investment — (37,000 ) — Income/(loss) before income tax expense 230,452 (139,546 ) (400,687 ) Loss on sale of discontinued operations — — (97,777 ) Income tax (expense)/benefit (70,697 ) 15,695 (8,816 ) Net income/(loss) from discontinued operations 159,755 (123,851 ) (507,280 ) Net cash (used in) discontinued operating activities (19,696 ) (187,127 ) (509,825 ) Net cash (used in) discontinued investing activities (114,716 ) (111,782 ) (53,535 ) Net cash (used in) discontinued financing activities — — (23,308 ) |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF RISKS | 4. CONCENTRATION OF RISKS Concentration of credit risk Financial instruments that potentially subject the Group to significant concentration of credit risk consist primarily of cash and cash equivalents, and restricted cash. As of December 31, 2021, substantially all of the Group’s cash and cash equivalents, and restricted cash were deposited with financial institutions with high-credit ratings and quality. PRC state-owned banks, such as Bank of China, are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered to take over the operation and management when any of those banks faces a material credit crisis. The Group does not foresee substantial credit risk with respect to cash and cash equivalents, restricted cash and short-term investments held at the PRC state-owned banks. Meanwhile, China does not have an official deposit insurance program, nor does it have an agency similar to what was the Federal Deposit Insurance Corporation (FDIC) in the U.S. In the event of bankruptcy of one of the financial institutions in which the Group has deposits or investments, it may be unlikely to claim its deposits or investments back in full. The Group selected reputable international financial institutions with high rating rates to place its foreign currencies. The Group regularly monitors the rating of the international financial institutions to avoid any potential defaults. There has been no recent history of default in relation to these financial institutions. Foreign currency exchange rate risk From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For RMB against US$, there was appreciation of 1.3%, depreciation of 6.3% and 1.4% during the years ended December 31, 2019, 2020 and 2021. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the US$ in the future. To the extent that the Group needs to convert US$ into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against US$ would have an adverse effect on the RMB amount the Group would receive from the conversion. Conversely, if the Group decides to convert RMB into US$ for the purpose of making payments for dividends on ordinary shares, strategic acquisitions or investments or other business purposes, appreciation of US$ against RMB would have a negative effect on the US$ amount available to the Group. In addition, a significant depreciation of the RMB against the US$ may significantly reduce the US$ equivalent of the Group’s earnings or losses. Currency convertibility risk The Group transacts all of its business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (the “PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into US$ or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. The Group’s cash and cash equivalents, and restricted cash denominated in RMB amounted to RMB16,027 (US$2,515) as of December 31, 2021. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | 5. BUSINESS COMBINATION Shijiazhuang On July 1, 2019, the Group acquired a 51% equity interest in 7 learning centers in Shijiazhuang certain fixed assets, student contracts and key employees of the educational consulting business from a franchisee of the Group. The acquisition is expected to complement the Group’s existing business and achieve significant synergies. Total consideration was RMB44,061 in cash, which was fully paid as of December 31, 2020. The Group has completed the valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the acquisition date. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of July 1, 2019, the date of acquisition: RMB Purchase consideration 44,061 Net assets acquired, excluding intangible assets and the related deferred tax liabilities (83,813 ) Intangible assets 15,800 Student base 15,800 Deferred tax liabilities (4,742 ) Non-controlling (33,866 ) Goodwill 150,682 The non-controlling Goodwill recognized on the acquisition date is the expected synergies from combining operations of Shijiazhuang and the Group, which does not qualify for separate recognition. None of the goodwill recognized is expected to be deductible for income tax purposes. The Group recognized RMB83 and RMB347 of acquisition related costs which were included in general and administrative expenses for the years ended December 31, 2019 and 2020, respectively. The information of pro forma revenue and net loss for the year ended December 31, 2018 is not available and the cost to develop it would be excessive. The unaudited pro forma information for the year ended December 31, 2019 set forth below gives effect to the acquisition as if it had occurred at the beginning of the period. The pro forma results have been calculated after applying the Group’s accounting policies and including adjustments primarily related to the amortization of acquired intangible assets, and income tax effects, as applicable. The pro forma information does not include any impact of transaction synergies and is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been occurred had the acquisition been consummated as of that time or that may result in the future: For the year ended December 31, 2019 pro forma As reported RMB RMB Revenues 1,555,302 1,529,447 Net income 152,669 148,100 In December 2021, the Group sold all of its investment in Shijiazhuang, and the disposal of Shijiazhuang was qualified for reporting as a “discontinued operation”. See Note 3. Changping On November 1, 2019, the Group acquired certain fixed assets, intellectual properties, material contracts and key employees of a franchised learning center in Changping (“Changping”) from a franchisee of the Group for a total cash consideration of RMB12,669 , Identifiable intangible assets acquired include student base of RMB4,500 . ; a The actual results of operation after the acquisition date and pro-forma In December 2021, the Group sold all of its investment in Changping, and the disposal of Changping was qualified for reporting as a “discontinued operation”. See Note 3. Huairou On July 1, 2020, the Group acquired certain fixed assets, intellectual properties, material contracts and key employees of a franchised learning center in Huairou (“Huairou”) from a franchisee of the Group for a total cash consideration of RMB8,075, of which RMB700 was unpaid as of December 31, 2020. Identifiable intangible assets acquired include student base of RMB3,000. Goodwill recognized on the acquisition date is not tax deductible and amounted to RMB11,956; and represents the expected synergies from combining the operations of Huairou and the Group, which does not qualify for separate recognition. The actual results of operation after the acquisition date and pro-forma In December 2021, the Group sold all of its investment in Huairou, and the disposal of Huairou was qualified for reporting as a “discontinued operation”. See Note 3. |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Text Block [Abstract] | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 6. PREPAYMENTS AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As at December 31, 2020 2021 2021 RMB RMB US$ Prepayments to suppliers 4,365 14,311 2,246 Deposits 144 140 22 4,509 14,451 2,268 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other liabilities consisted of the following: As at December 31, 2020 2021 2021 RMB RMB US$ Accrued other operating expenses 1,469 7,889 1,238 Others — 736 115 1,469 8,625 1,353 |
TROUBLED DEBT RESTRUCTURING
TROUBLED DEBT RESTRUCTURING | 12 Months Ended |
Dec. 31, 2021 | |
Troubled Debt Restructuring Note, Debtor [Abstract] | |
TROUBLED DEBT RESTRUCTURING | 8. TROUBLED DEBT RESTRUCTURING On March 18, 2021, the Group entered into a Facility agreement with CTBC Bank Co., Ltd. for an aggregate amount of US$80,000 consisting of a five-year term loan facility of US$65,000 and a revolving credit facility of US$15,000. The Facility was used to repay its existing loans for amount of US$65,000 as of March 18, 2021. The repayment schedule of the five-year term loan facility is listed as the following: US$ March 18, 2022 3,250 March 18, 2023 8,125 March 18, 2024 11,375 March 18, 2025 16,250 March 18, 2026 26,000 65,000 The loan facility is guaranteed by Rise IP, Rise HK, the WFOE and VIE. Further, the ordinary shares of certain subsidiaries of the Group were pledged as collateral for the loan facility. In addition, the Group maintained deposits held in a designated bank account as security for interest payments consisting of the DSRA and Domestic CTBC accounts. The Group concluded that the modification on March 18, 2021 would be considered a troubled debt restructuring pursuant to ASC470-60. As the future undiscounted cash flows is greater than the net carrying value of the original debt, no gain is recognized. On December 1, 2021, the Group entered into a settlement agreement (the “Settlement”) with CTBC Bank Co., Ltd. (See Note 1). The Group evaluated the settlement in accordance with ASC 470, and determined the settlement is considered a troubled debt restructuring and an extinguishment of the existing debt. As a result of the settlement, the Group recognized a gain on troubled debt restructuring of RMB279,097 for the year ended December 31, 2021. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 9. RELATED PARTY TRANSACTIONS a) Related parties The direct controlling shareholder Bain Capital Education IV Entities controlled by the ultimate holding company Lionbridge Limited (“Lionbridge”) Bain Capital Advisors (China) Ltd. (“Bain Advisors”) Investee New York City Kids Club.(“NYC”) Significant influence exercised by management of the Company Wuhan Xinsili Culture Development Co., Ltd. b) During the years ended December 31, 2019, 2020 and 2021, the Group had the following related party transactions: For the years ended December 31, Notes 2019 2020 2021 2021 RMB RMB RMB US$ Bain Capital Education IV (i ) — — 108,334 17,000 Bain Capital Education IV — — 15,932 2,500 Wuhan Xinsili Culture Development Co., Ltd. (ii ) — — — — (i) The Company entered into a convertible loan deed with the Bain Capital Education IV (the “Shareholder”) on December 1, 2021 (the “Convertible Loan Deed”), pursuant to which the Shareholder will provide an interest-free convertible loan of US$17,000 to the Company for the period ended June 30, 2023, convertible into ordinary shares of the Company at US$0.35 per share, or US$0.70 per ADS. If the Company fails to pay any amount payable under this Deed on its due date, interest shall accrue on such amount from the due date at a rate two percent. The Group determined the appropriate accounting treatment of its convertible debt in accordance with the terms in relation to the conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The Group evaluated the equity components immaterial, and accounted for the convertible loan as a non-current The loan transactions for the year ended December 31, 2021 with details set forth below: Year ended December 31, 2021 Loan granted Principal Interest Rate Period Convertible loan 108,334 — December 1, 2021 to June 30, 2023 (ii) The CEO of the Company, Ms. Lihong Wang is the chairman of Wuhan Xinsili Culture Development Co., Ltd. As refer to Note 1, pursuant to the WFOE Purchase Agreement, the Company has agreed to, through Rise HK, sell all of the equity interests in WFOE to Wuhan Xinsili Culture Development Co., Ltd., in consideration of the Buyer SPV (i) paying to Rise HK a nominal consideration, and (ii) assuming all liabilities of WFOE and its subsidiaries. c) The balances between the Group and its related parties as of December 31, 2020 and 2021 are listed below: Amounts due from a related party As at December 31, 2020 2021 2021 RMB RMB US$ Bain Capital Education IV 181 177 28 Convertible loan from a replated party As at December 31, 2020 2021 2021 RMB RMB US$ Bain Capital Education IV — 108,334 17,000 Amount due to related party is the balance of convertible loan with zero interest rate as of December 31, 2021. |
INCOME_(LOSS) PER SHARE
INCOME/(LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
INCOME/(LOSS) PER SHARE | 10. INCOME/(LOSS) PER SHARE Basic and diluted income/(loss) per share and per ADS for each of the years presented are calculated as follows: For the years ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Numerator: Net income/(loss) from continuing operations attributable to RISE Education Cayman Ltd (15,195 ) (17,593 ) 249,096 39,088 Net income/(loss) from discontinued operations attributable to RISE Education Cayman Ltd 163,295 (114,840 ) (497,583 ) (78,081 ) Net income/(loss) attributable to RISE Education Cayman Ltd 148,100 (132,433 ) (248,487 ) (38,993 ) Denominator: Weighted average number of ordinary shares outstanding-basic 113,187,721 112,813,031 112,868,532 112,868,532 Weighted average number of ordinary shares outstanding-diluted 114,464,108 112,813,031 112,868,532 112,868,532 Net income/(loss) per share - Basic: Continuing operations (0.13 ) (0.15 ) 2.21 0.35 Discontinued operations 1.44 (1.02 ) (4.41 ) (0.69 ) Total net income/(loss) per share - Basic 1.31 (1.17 ) (2.20 ) (0.34 ) Net income/(loss) per share - Diluted: Continuing operations (0.13 ) (0.15 ) 2.21 0.35 Discontinued operations 1.42 (1.02 ) (4.41 ) (0.69 ) Total net income/(loss) per share - Diluted 1.29 (1.17 ) (2.20 ) (0.34 ) Net income/(loss) per ADS - Basic: Continuing operations (0.26 ) (0.31 ) 4.42 0.70 Discontinued operations 2.88 (2.04 ) (8.82 ) (1.38 ) Total net income/(loss) per ADS - Basic 2.62 (2.35 ) (4.40 ) (0.68 ) Net income/(loss) per ADS - Diluted: Continuing operations (0.25 ) (0.31 ) 4.42 0.70 Discontinued operations 2.84 (2.04 ) (8.82 ) (1.38 ) Total net income/(loss) per ADS - Diluted 2.59 (2.35 ) (4.40 ) (0.68 ) Nil, 953,168 and 4,047,619 share options were excluded from the computation of diluted income per share for the year ended December 31, 2019, 2020 and 2021, respectively, because their effects would be anti-dilutive. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENTS | 11. SHARE- BASED PAYMENTS 2016 Equity Incentive Plan In 2016, the Board of Directors approved the Equity Option Plan (the “2016 Equity Incentive Plan”), which has a term of 10 years and is administrated by the Board of Directors. Under 2016 Equity Incentive Plan, the Company reserved options to its eligible employees, directors and officers of the Group for the purchase of 7,000,000 of the Company’s ordinary shares in aggregate (excluding shares which have lapsed or have been forfeited). In April 2016, the Board of Directors approved option grants to employees for the purchase of 5,985,000 of the Company’s ordinary shares. 50% of the options granted will generally vest in four or five equal installments over a service period (the “2016 Service Options”) while the remaining 50% of the options will vest in two equal installments of 25% each if a fixed targeted return on the Company’s ordinary shares is achieved (the “2016 Market Options”). Both the Service Options and Market Options (collectively, the “2016 Options”) are exercisable only upon the occurrence of an IPO or change of control (each or collectively, the “exercisability event”). The exercisability event constitutes a performance condition that is not considered probable until the completion of the IPO or change of control. The Company will not recognize any compensation expense until the exercisability event occurs. Upon the occurrence of the exercisability event, the effect of the change in this estimate will be accounted for in the period of change by cumulative compensation cost recognition as if the new estimate had been applied since the service inception date, with the remaining unrecognized compensation cost amortized over the remaining requisite service period. Upon the occurrence of the exercisability event (the IPO completion date), the Company immediately recognized expenses associated with options that were vested as of the IPO completion date amounting to RMB90,335. In addition, the Company also will recognize the remaining compensation expenses over the remaining service requisite period using the accelerated method. Modification of options In November 2017 (“2017 Modification Date”), the Board of Directors modified share options granted to six directors and officers to be fully vested on the 2017 Modification Date. On the 2017 Modification Date, the Company recognized compensation expenses amounting to RMB2,329 (US$358) associated with the fully vested share options. The fair value of the share options immediately after the modification was the same as that immediately before the modification and therefore, the Company did not recognize any incremental compensation costs related to such modification. In 2018, the vesting of 432,500 options granted to seven employees was accelerated, and 50,000 options of one employee was cancelled and replaced with cash rewards (which was an isolated non-recurring In December 2021(“2021 Modification Date”), the Board of Directors modified the exercise price of Options to $0.25 per share, and such Options shall be exercised on or prior to December 31, 2022. There were no unvested options until 2021 Modification Date. A summary of the equity award activity under 2016 Equity Incentive Plan is stated below: Number of options Weighted– Weighted- Weighted- Aggregate US$ US$ US$ Outstanding, December 31, 2020 1,861,474 1.44 N/A 4.61 2,988 Exercised (50,000 ) 1.44 N/A N/A 16 Forfeited/Cancelled (110,000 ) 1.44 N/A N/A Outstanding, December 31, 2021 1,701,474 0.64 N/A 1.00 — Vested and expected to vest at December 31, 2021 1,701,474 0.64 N/A 1.00 — Exercisable at December 31, 2021 1,701,474 0.64 N/A 1.00 — The aggregate intrinsic value in the table above represents the difference between the fair value of the Company’s ordinary share as of December 31, 2021 and the option’s respective exercise price. Total intrinsic value of options exercised for the years ended December 31, 2019, 2020 and 2021 was RMB9,981, RMB2,380 and RMB104 (US$16). There were nil awards were vested for the year ended December 31, 2021. There was nil of total unrecognized share-based compensation expenses. 2017 Share Incentive Plan In 2017, the Board of Directors approved the Share Incentive Plan (the “2017 Share Incentive Plan”), which has a term of 10 years and is administrated by the Board of Directors. Under 2017 Share Incentive Plan, the Company reserved options to its eligible employees, directors and officers of the Group for the purchase of 5,000,000 of the Company’s ordinary shares in aggregate (excluding shares which have lapsed or have been forfeited). In April 2019, the Board of Directors approved option grants to employees for the purchase of 4,800,000 of the Company’s ordinary shares. 60% of the options granted will generally vest in four equal installments over a prespecified service period (the “2017 Service Options”) while the remaining 40% of the options will vest based on certain performance conditions (the “2017 Performance Options”). In May 2021, the Board of Directors approved option grants to employees for the purchase of 850,000 of the Company’s ordinary shares. 60% of the options granted will generally vest in four equal installments over a prespecified service period (the “2017 Service Options”) while the remaining 40% of the options will vest based on certain performance conditions (the “2017 Performance Options”). Modification of options On August 12, 2020, considering the outstanding options granted under 2017 Share Incentive Plan was out-of-money, On September 11, 2020, 1,613,506 options were granted to an employee under the Modified 2017 Share Incentive Plan. 60% of the options granted will generally vest in four equal installments on an annual basis with first vesting date on December 31, 2021, and the vesting of the remaining 40% of the options is based on certain market condition. On December 30, 2021, the Board of Directors modified 2017 Share Incentive Plan, pursuant to which the exercise price was adjusted down to US$0.25 per share, the exercise period was amended to December 31, 2022, the market conditions were cancelled, and the vesting of 746,552 options granted to 17 employees was accelerated. 1,433,104 options were modified and the total incremental cost resulted from this modification was RMB137(US$21). A summary of the equity award activity under 2017 Share Incentive Plan and Modified 2017 Share Incentive Plan is stated below: Number of Weighted– Weighted- Weighted- Aggregate US$ US$ US$ Outstanding, December 31, 2020 3,873,506 1.89 1.76 8.86 4,731 Granted 850,000 1.75 0.63 Exercised (23,300 ) 1.75 3.09 14 Forfeited/Cancelled (3,030,852 ) 1.93 1.52 Outstanding, December 31, 2021 1,669,354 0.46 2.15 1.00 — Vested and expected to vest at December 31, 2021 1,669,354 0.46 2.15 1.00 — Exercisable at December 31, 2021 1,669,354 0.46 2.15 1.00 — The aggregate intrinsic value in the table above represents the difference between the fair value of the Company’s ordinary share as of December 31, 2021 and the option’s respective exercise price. Total intrinsic value of options exercised for the years ended December 31, 2021 was RMB87 (US$14). 1,157,328 awards were vested for the year ended December 31, 2021, and the weighted-average grant-date fair value for vested options is US$2.05. As of December 31, 2021, there was nil of total unrecognized share-based compensation expenses. 2020 Equity Incentive Plan The Company adopted its 2020 Equity Incentive Plan on August 13, 2020, and the maximum aggregate number of ordinary shares which may be issued pursuant the plan is 4,147,494. 60% of the options granted will generally vest in four equal installments on an annual basis with first vesting dates varying from December 31, 2021 to December 31, 2022, and the remaining 40% of the options will vest based on certain market condition. A summary of the equity award activity under the 2020 Share Incentive Plan is as follows: Modification of options In December 2021, the Board of Directors modified 2020 Share Incentive Plan, pursuant to which the exercise price was adjusted down to US$0.25 per share, the exercise period was amended to December 31, 2022, the market conditions were cancelled, and the vesting of 277,048 options granted to 6 employees was accelerated. 554,096 options were modified and the total incremental cost resulted from this modification was RMB18(US$3). A summary of the equity award activity under the 2020 Share Incentive Plan is as follows: Number of Weighted– Weighted- Weighted- Aggregate US$ US$ US$ Outstanding, December 31, 2020 3,645,494 1.75 1.49 9.70 4,721 Exercised (5,860 ) 1.75 1.59 3 Forfeited/Cancelled (2,932,538 ) 1.75 1.47 Outstanding, December 31, 2021 707,096 0.57 1.60 1.00 — Vested and expected to vest at December 31, 2021 707,096 0.57 1.60 1.00 — Exercisable at December 31, 2021 707,096 0.57 1.60 1.00 — The aggregate intrinsic value in the table above represents the difference between the fair value of the Company’s ordinary share as of December 31, 2021 and the option’s respective exercise price. Total intrinsic value of options exercised for the years ended December 31, 2021 was RMB 21 (US$3). 514,572 awards were vested for the year ended December 31, 2021, and the weighted-average grant-date fair value for vested options is US$1.60. As of December 31, 2021, there was nil of total unrecognized share-based compensation expenses. The fair value of awards granted or modified under 2016 Equity Incentive Plan, 2017 Share Incentive Plan, modified 2017 Share Incentive Plan and 2020 Equity Incentive Plan were determined using the binomial option valuation model and Monte Carlo simulation model, respectively, with the assistance from an independent appraiser. The option valuation models required the input of highly subjective assumptions, including the expected share price volatility and the suboptimal early exercise factor. For expected volatilities, the Company has made reference to historical volatilities of several comparable companies. The suboptimal early exercise factor was estimated based on the Company’s expectation of exercise behavior of the grantees. The risk-free rate for the period within the contractual life of the Options is based on the market yield of U.S. Treasury Bonds in effect at the time of grant. The estimated fair value of the ordinary shares, was determined with the assistance of an independent third-party appraiser. Subsequent to the IPO, fair value of the ordinary shares is the price of the Company’s publicly traded shares. The Company’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The assumptions used to estimate the fair value of awards granted or modified under 2016 Equity Incentive Plan, 2017 Share Incentive Plan, modified 2017 Share Incentive Plan and 2020 Equity Incentive Plan are as follows: 2016 Equity Incentive Plan For the years ended December 31, 2019 2020 2021 Risk-free interest rate 2.41%-3.34% N/A N/A Expected volatility range 53.70%-55.20% N/A N/A Suboptimal exercise factor 2.80 N/A N/A Fair value per ordinary share as at valuation date US$4.11~US$5.37 N/A N/A 2017 Share Incentive Plan and Modified 2017 Share Incentive Plan For the years ended December 31, 2019 2020 2021 Risk-free interest rate 3.29% 1.65%~1.69% 1.00%~2.30% Expected volatility range 54.80% 55.10%~55.80% 57.00%~114.50% Suboptimal exercise factor 2.80 2.80 2.80 Fair value per ordinary share as at valuation date US$4.94 US$1.99~US$2.69 US$0.25~US$1.60 2020 Share Incentive Plan and Modified 2020 Share For the years ended December 31, 2019 2020 2021 Risk-free interest rate N/A 1.69%~1.86% 1.00% Expected volatility range N/A 55.10%~55.80% 114.50% Suboptimal exercise factor N/A 2.80 2.80 Fair value per ordinary share as at valuation date N/A US$2.52~US$2.69 US$0.25 All of the share-based compensation is recognized in the discontinued operations. Total cost of the share-based payments is summarized as follows For the years ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Cost of revenues 2,617 1,821 (895 ) (141 ) Selling and marketing expenses 1,016 1,497 (1,124 ) (176 ) General and administrative expenses 44,256 14,681 11,556 1,813 Total 47,889 17,999 9,537 1,496 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12. ACCUMULATED OTHER COMPREHENSIVE INCOME Foreign currency RMB Balance as of January 1, 2019 42,459 Foreign currency translation adjustments, net of tax of nil (1,542 ) Balance as of December 31, 2019 40,917 Foreign currency translation adjustments, net of tax of nil (1,275 ) Balance as of December 31, 2020 39,642 Foreign currency translation adjustments, net of tax of nil (6,635 ) Balance as of December 31, 2021 33,007 US$ Balance as of December 31, 2021 5,181 There have been no reclassifications out of accumulated other comprehensive income to net income for the periods presented. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 13. CONTINGENCIES Contingencies From time to time, the Group is also subject to legal proceedings, investigations, and claims incidental to the conduct of its business. The Group is currently not involved in any legal or administrative proceedings that may have a material adverse impact on the Group’s business, financial position or results of operations. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 14. SUBSEQUENT EVENT Delisting On January 11, 2022, the Company was notified by the Nasdaq Listing Qualifications Staff (“Staff”) that the Staff had determined to delist the Company’s securities unless the Company timely requested a hearing before a Nasdaq Hearings Panel (the “Panel”). The Staff’s determination was based upon its conclusion that the Company is a “public shell” as that term is defined in Nasdaq Listing Rule 5101 as the result of the Company’s sale of substantially all of its assets on December 30, 2021. On February 17, 2022, the Company’s CEO and CFO attended along with its outside counsel, Kirkland & Ellis LLP, and Donohoe Advisory Associates LLC. Drew Chen of Bain Capital Asia (“Bain”) attended the hearing. The Company advised that, it began exploring strategic alternatives, including business combinations. On February 8, 2022, the Company executed a definitive agreement with NaaS for an all-share Plan of Merger On February 8, 2022, the Company and Data Auto Inc. (“NaaS”), a leading operation and technology provider serving China’s electric vehicle charging market, executed a definitive Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which the shareholders of NaaS will exchange all of the issued and outstanding share capital of NaaS for newly issued shares of the Company on the terms and conditions set forth therein in a transaction exempt from the registration requirements under the Securities Act of 1933 (the “Transaction”). Upon consummation of the Transaction, NaaS will become a wholly-owned subsidiary of the Company. On April 29, 2022, the Company’s extraordinary general meeting of shareholders (the “EGM”) was held. At the EGM, shareholders approved, through a special resolution, the transactions contemplated in the Merger Agreement. Amendment on convertible loan maturity date On March 28, 2022, the Company signed an amendment agreement of RMB108,334 (US$17,000) convertible loan with Bain Capital Education IV to extend the maturity date to June 30, 2023. As the amendment was made before the issuance of the consolidated financial statements for the year ended December 31, 2021, the convertible loan was presented as non-current liabilities in the consolidated balance sheet as of December 31, 2021. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, and the VIEs. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIEs have been eliminated upon consolidation. Results of subsidiaries, businesses acquired from third parties and the VIEs are consolidated from the date on which control is obtained by the Company. The Company deconsolidates its subsidiaries or business in accordance with ASC 810 as of the date the Company ceased to have a controlling financial interest in the subsidiaries. The Company accounts for the deconsolidation of its subsidiaries or business by recognizing a gain or loss in net income/loss attributable to the Company in accordance with ASC 810. This gain or loss is measured at the date the subsidiaries are deconsolidated as the difference between (a) the aggregate of the fair value of any consideration received, the fair value of any retained non-controlling non-controlling non-controlling The Company assesses whether a deconsolidation is required to be presented as discontinued operations in its consolidated financial statements on the deconsolidation date. This assessment is based on whether or not the deconsolidation represents a strategic shift that has or will have a major effect on the Company’s operations or financial results. If the Company determines that a deconsolidation requires presentation as a discontinued operation on the deconsolidation date, or at any point during the one-year |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include valuation allowance for deferred tax assets, uncertain tax positions, the initial valuation of the assets acquired and liabilities assumed and non-controlling right-of-use |
Convenience Translation | Convenience translation Amounts in the United States Dollars (“US$”) are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.3726 per US$1.00 on December 30, 2021 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Foreign Currency | Foreign currency The functional currency of the Company, its Cayman subsidiaries and Rise HK are the US$, the functional currency of Edge Franchising and Edge Online Co. Limited are the Hong Kong Dollars (“HK$”). The Company’s PRC subsidiaries and the VIEs determined their functional currency to be Renminbi (the “RMB”). The Group uses the RMB as its reporting currency. Each entity in the Group maintains its financial records in its own functional currency. Transactions denominated in foreign currencies are measured at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rates prevailing at the balance sheet date. Non-monetary The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of shareholders’ equity. |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. |
Restricted Cash | Restricted cash Restricted cash primarily represents deposits held in a designated bank account as security for the interest and principal payments within one year on the Group’s long-term loan; and deposits restricted as to withdrawal or use under government regulations. In November 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows beginning-of-period end-of-period |
Investments - Discontinued Operations | Investments - Discontinued Operations Short-term investments The Group’s short-term investments comprise primarily of cash deposits at floating rates based on daily bank deposit rates with original maturities ranging from over three months to six months. Long-term investment The Group’s long-term investment is an equity investment in unlisted company based in the PRC over which the Group neither has significant influence nor control through investment in common stock or in-substance The Group adopted ASC 321, Investments — Equity Securities (“ASC 321”) on January 1, 2018, pursuant to which, equity investments with readily determinable fair value, except for those accounted for under the equity method, those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Group elected to use the measurement alternative to measure all its investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The Group makes a qualitative assessment of whether the equity investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group has to recognize an impairment loss in the consolidated statements of income/(loss) equal to the difference between the carrying value and fair value. As stipulated in the investment agreement, the Group contributed an additional RMB4,000 to the equity investee in 2020. The Group recognized impairment charge of nil, RMB37,000 and nil for the year 2019, 2020 and 2021, respectively. There were also no unrealized gains (upward adjustments) or losses (downward adjustments), excluding impairment resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer during the periods presented. |
Inventories - Discontinued Operations | Inventories - Discontinued Operations Inventories are finished goods and mainly comprised of textbooks and other educational study tools (“course materials”). Course materials are stated at the lower of cost or market. Cost is determined using the weighted average cost method. As of December 31, 2019, 2020 and 2021, the Group did not have any provision for inventories. |
Property and equipment - Discontinued Operations | Property and equipment - Discontinued Operations Property and equipment is stated at cost less accumulated depreciation and impairment. Depreciation is calculated on a straight line basis over the following estimated useful lives: Electronic equipment 3 years Furniture 3 – 5 years Vehicles 4 years Leasehold improvements Shorter of the lease term or estimated useful life Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of (loss)/income. Direct costs that are related to the construction of property and equipment, and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment, and the depreciation of these assets commences when the assets are ready for their intended use. |
Segment Reporting | Segment reporting In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Group has only one reportable segment since the Group does not distinguish revenues, costs and expenses by operating segments in its internal reporting, and reports costs and expenses by nature as a whole. The Group’s CODM, who has been identified as the Chief Executive Officer of the Group, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole. The Group does not distinguish among markets or segments for the purpose of internal reports. Substantially all of the Group’s revenues for the years ended December 31, 2019, 2020 and 2021 were generated from the PRC. As of December 31, 2020, a majority of the long-lived assets of the Group are located in the PRC, and therefore, no geographical segments are presented. At the end of December 2021, the Group disposed all of the assets located in the PRC. |
Gain on Troubled Debt Restructuring | Troubled Debt Restructuring The Group accounts for a debt amendment as a troubled debt restructuring when the transaction meets the two criteria: 1) The Group was experiencing financial difficulties; 2) the lender was granting a concession when the effective borrowing rate on the restructured debt is less than the effective borrowing on the original debt. If future undiscounted cash flows is greater than the net carrying value of the original debt, no gain is recognized, and a new effective interest rate is established based on the carrying value of the original debt and the revised cash flows. If future undiscounted cash flows is less than the net carrying value of the original debt, the difference between future undiscounted cash flows and the net carrying value of the original debt is recognized as gain on troubled debt restructuring, and the carrying value of the debt is adjusted to the future undiscounted cash flow amount. According to ASC205-20-45, when the debt will be not assumed by the buyer in the transaction and is required to be repaid as a result of the disposal, the interest cost on the debt should be allocated to discontinued operations and the debt should be allocated to continuing operations. For the year ended December 31, 2021, the Company recognized gain on debt distinguishment of R M continuing operations. |
Non-controlling interests – Discontinued Operations | Non-controlling For certain subsidiaries of the VIE, a non-controlling non-controlling non-controlling non-controlling |
Goodwill – Discontinued Operations | Goodwill – Discontinued Operations The Group assesses goodwill for impairment in accordance with ASC 350-20, Intangibles—Goodwill and Other: Goodwill 350-20”), 350-20. There was only one reporting unit (that also represented the operating segment) as of December 31, 2020 and 2021, respectively. Goodwill was allocated to the one reporting unit as of December 31, 2020 and 2021, respectively. The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step 350-20. more-likely-than-not two-step On January 1, 2020, the Group adopted ASU No. 2017-04, 810-10, |
Intangible assets - Discontinued Operations | Intangible assets - Discontinued Operations Intangible assets with finite lives are carried at cost less accumulated amortization. Amortization of finite-lived intangible assets except for student base is computed using the straight-line method over the estimated useful lives. Student base is amortized using an accelerated pattern based on the estimated student attrition rate of the acquired schools. The estimated useful lives of intangible assets from the date of purchase are as follows: Category Estimated Useful Life Courseware license 15 years Franchise agreements 2.5-3 years Student base 3-5 years Trademarks 10-15 years Purchased software 3-5 Licensed copyright The shorter of contractual terms Teaching course materials 10 years |
Impairment of long-lived assets other than goodwill – Discontinued Operations | Impairment of long-lived assets other than goodwill – Discontinued Operations The Group evaluates its long-lived assets, including fixed assets, intangible assets and operating lease right-of-use re-sell/sublicense |
Business Combinations | Business Combinations The Group accounts for business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations non-controlling non-controlling In a business combination achieved in stages, the Group re-measured re-measurement The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling |
Fair value of financial instruments – Discontinued Operations | Fair value of financial instruments – Discontinued Operations Financial instruments include cash and cash equivalents, short-term investments, restricted cash, certain other current assets, long-term investment, accounts payable, long-term loan, customer advances, lease liabilities and certain other current liabilities. For long-term investment, the Group elected to use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The carrying amounts of remaining financial instruments, except for the long-term loan, approximate their fair values because of their short-term maturities. The carrying amount of the long-term loan approximates its fair value due to the fact that the related interest rate approximates the interest rates currently offered by financial institutions for similar debt instruments of comparable maturities. |
Revenue recognition- Discontinued Operations | Revenue recognition- Discontinued Operations On January 1, 2018, the Group adopted ASC 606, Revenue from contracts with customers Revenue Recognition. The Group’s revenue recognition policies following the adoption of ASC 606 are as follows: Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the Group expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Group determines are within the scope of the new revenue recognition accounting standard, the Group performs the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The Group only applies the five-step model to contracts when it is probable that the Group will collect the consideration it is entitled to in exchange for the goods or services transferred to the customer. At contract inception, the Group assesses the goods or services promised within each contract to determine those that represent performance obligations, and assess whether each promised good or service is distinct. The Group then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Revenue is recognized net of business tax, value added taxes and tax surcharges. Contract liabilities relate to contracts where the Group received payments but has not yet satisfied the related performance obligations. The advance consideration received from customers for the services is a contract liability until services are provided to the customer and are presented in “deferred revenue and customer advances” in the consolidated balance sheets. Contract assets include costs to obtain contracts with customers. Costs to obtain contracts with customers are incremental costs to obtain franchise contracts, which are recorded as prepayment and other current assets, and other non-current assets The primary sources of the Group’s revenues are as follows: (a) Educational programs Educational programs’ contracts generally consist of two performance obligations, English courses and course materials, which are both capable of being distinct and distinct in the context of the contract. The transaction price is stated in the contract and known at the time of contract inception, therefore no variable consideration exists. The Group may issue promotional coupons to attract enrollment for its courses. The promotional coupons are not issued in conjunction with a concurrent revenue transaction and are for a fixed RMB amount that can only be redeemed to reduce the amount of the tuition fees for future courses. The promotional coupons are accounted for as a reduction of the transaction price and are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. Revenue is allocated to each performance obligation based on its standalone selling price. The Group generally determines standalone selling prices based on the prices charged to students. If the standalone selling price is not observable through past transactions, the Group estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Course fees are collected in full in advance of the commencement of each course and each course comprises of a fixed amount of classes. The Group uses the student’s daily attendance records of both offline and online courses, an output measure, to recognize revenue over time as it best depicts the simultaneous consumption and delivery of educational program services. Students are allowed to return course materials if they are unused. However, once the student attends the first class of the respective course, course materials cannot be returned. Therefore, revenue associated with distinct course materials is recognized at the point in time when control transfers to the student, generally when the student attends the first class of the respective course. According to local education bureau regulations, depending on a school’s location and the amount of classes remaining for a course, the Group may be required to refund course fees for any remaining undelivered classes to students who withdraw from a course. The refund is recorded as a reduction of the related course fees received in advance and has no impact on recognized revenue. Refunds on recognized revenue were insignificant for all periods presented. To be consistent with our management reporting framework, revenues from educational programs include revenues generated by The Edge starting from the first quarter of 2019 and revenues generated from Can-Talk (b) Franchise revenues Franchise revenues includes non-refundable initial (c) Other revenues Other revenues comprise mainly of the provision of overseas and domestic study tour services. The Group determined the overseas study tours contract contains a single performance obligation and the Group is the principal in providing overseas study tours services as it controls such services before the services are transferred to the customer. Therefore, the Group recognizes study tours revenue on a gross basis. The Group recognize revenue over the service period of the study tour, which is, generally around two to three weeks, as it best depicts the simultaneous consumption and delivery of overseas study tours services. |
Advertising expenditures- Discontinued Operations | Advertising expenditures- Discontinued Operations Advertising costs are expensed when incurred and are included in selling expenses in the consolidated statements of (loss)/income. |
Leases - Discontinued Operations | Leases - Discontinued Operations The Group adopted ASU No. 2016-02, Leases and non-lease The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a right-of-use COVID-19. Upon adoption of ASC 842, the Group recognized ROU assets of RMB601,610 and total lease liabilities (including current and non-current) operating leases The Group’s operating leases mainly related to offices and classroom facilities. |
Income/(loss) per share | Income/(loss) per share In accordance with ASC 260, Earnings Per Share |
Share-based compensation – Discontinued Operations | Share-based compensation – Discontinued Operations The Group applies ASC 718, Compensation — Stock Compensation In accordance with ASC 718, the Group recognizes share-based compensation cost for equity awards to employees with a performance condition based on the probable outcome of that performance condition — compensation cost is recognized if it is probable that the performance condition will be achieved and shall not be recognized if it is not probable that the performance condition will be achieved. In accordance with ASC 718, the effect of a market condition is reflected in the grant-date fair value of the granted equity awards. The Group recognizes share-based compensation cost for equity awards with a market condition provided that the requisite service is rendered, regardless of when, if ever, the market condition is satisfied. A change in any of the terms or conditions of the awards is accounted for as a modification of the award. When the vesting conditions (or other terms) of the equity awards granted to employees are modified, the Group first determines on the modification date whether the original vesting conditions were expected to be satisfied, regardless of the entity’s policy election for accounting for forfeitures. If the original vesting conditions are not expected to be satisfied, the grant-date fair value of the original equity awards are ignored, and the fair value of the equity award measured at the modification date is recognized if the modified award ultimately vests. When a vesting condition that is probable of achievement is modified and the new vesting condition also is probable of achievement, the compensation cost to be recognized if either the original vesting condition or the new vesting condition is achieved cannot be less than the grant-date fair value of the original award. That compensation cost is recognized if either the original or modified vesting condition is achieved. Cancellation of the awards accompanied by the concurrent grant of a replacement award is also accounted for as a modification of the terms of the cancelled awards. Therefore, incremental compensation cost shall be measured as the excess of the fair value of the replacement award or other valuable consideration over the fair value of the cancelled award at the cancellation date. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the fair value of the awards and other pertinent factors at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For unvested awards, the Group recognizes over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. If the fair value of the modified award is lower than the fair value of the original award immediately before modification, the minimum compensation cost the Group recognizes is the cost of the original award. The Group uses the accelerated method for all awards granted with graded vesting service conditions, and the straight-line method for awards granted with non-graded |
Income Taxes | Income taxes The Group accounts for income taxes under ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s consolidated financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Group recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2020 and 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Group is considered exempted Cayman Islands Companies and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. |
Government subsidies- Discontinued Operations | Government subsidies- Discontinued Operations Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Government subsidies of non-operating non-operating |
Comprehensive income/(loss) | Comprehensive income/(loss) Comprehensive (loss)/income is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income |
Employee benefit expenses- Discontinued Operations | Employee benefit expenses- Discontinued Operations All eligible employees of the Group are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the qualified employees’ salaries. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed. The Group has no further payment obligations once the contributions have been paid. |
Treasury shares | Treasury shares In November 2018, the Board of Directors approved a share repurchase plan (“2018 repurchase plan”). The Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is initially recorded in the “Treasury Shares” line item in the consolidated balance sheets. Upon retirement, the ordinary shares account will be debited only for the aggregate par value of the retired shares, and the excess of the acquisition cost of treasury shares over the aggregate par value is allocated to the additional paid-in |
Recent accounting pronouncements | Recent accounting pronouncements In December 2019, the FASB issued ASU 2019-12, Income Tax (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU No. 2020-04, In August 2020, the FASB issued ASU No. 2020-06, 470- 815-40): 2020-06), if-converted In October 2020, the FASB issued ASU No. 2020-10, In January 2021, the FASB issued ASU No. 2021-01, 2020-04, In May 2021, the FASB issued ASU No. 2021-04, 470-50), 815-40) In October 2021, the FASB issued ASU No. 2021-08, |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company's Subsidiaries | As of December 31, 2021, details of the Company’s subsidiaries are as follows: Name Date of Place of Percentage Principal activity Subsidiaries of the Company: RISE Education Cayman III Ltd (“Cayman III”) July 29, 2013 Cayman Islands 100 % Investment holding RISE Education Cayman I Ltd (“Cayman”) June 19, 2013 Cayman Islands 100 % Investment holding |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | Depreciation is calculated on a straight line basis over the following estimated useful lives: Electronic equipment 3 years Furniture 3 – 5 years Vehicles 4 years Leasehold improvements Shorter of the lease term or estimated useful life |
Schedule of Estimated Useful Lives of Intangible Assets | Category Estimated Useful Life Courseware license 15 years Franchise agreements 2.5-3 years Student base 3-5 years Trademarks 10-15 years Purchased software 3-5 Licensed copyright The shorter of contractual terms Teaching course materials 10 years |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operation [Abstract] | |
Company's Subsidiaries, the VIE and the VIE's Subsidiaries and Schools | During the year ended December 31, 2021, prior to the Sale mentioned above, details of the Company’s principal subsidiaries, the VIE and the VIE’s subsidiaries and schools in the Sale list are as follows: Percentage of equity interest attributable Date of Place of to the Principal Name establishment establishment company activity Subsidiaries of the Company: Rise IP (Cayman) Limited (“Rise IP”) 24-Jul-13 Cayman Islands 100% Educational consulting Edge Franchising Co., Limited (“Edge Franchising”) 16-Mar-16 Hong Kong 100% Educational consulting Rise Education International Limited (“Rise HK”) 24-Jun-13 Hong Kong 100% Educational consulting Edge Online Co., Limited 1-Apr-18 Hong Kong 100% Educational consulting Rise (Tianjin) Education Information Consulting Co., Ltd. (“Rise Tianjin” or “WFOE”) 12-Aug-13 PRC 100% Educational consulting, Sale of course materials, study tour service VIE: Beijing Step Ahead Education Technology Development Co., Ltd. 2-Jan-08 PRC — Educational consulting VIE’s subsidiaries and schools: Beijing Haidian District Step Ahead Training School 18-Sep-08 PRC — Language education Beijing Shijingshan District Step Ahead Training School 14-Jul-09 PRC — Language education Beijing Changping District Step Ahead Training School 3-Jul-09 PRC — Language education Beijing Chaoyang District Step Ahead Training School 20-Jul-09 PRC — Language education Beijing Xicheng District RISE Immersion Subject English Training School 5-Feb-10 PRC — Language education Beijing Dongcheng District RISE Immersion Subject English Training School 30-Jul-10 PRC — Language education Beijing Tongzhou District RISE Immersion Subject English Training School 19-Apr-11 PRC — Language education Beijing Daxing District RISE Immersion Subject English Training School 31-Mar-13 PRC — Language education Beijing Fengtai District RISE Immersion Subject English Training School 28-Feb-12 PRC — Language education Percentage of equity interest attributable Date of Place of to the Principal Name establishment establishment company activity Beijing RISE Immersion Subject English Training School Co., Ltd. 26-Oct-18 PRC — Language education Beijing Step Ahead Rise Education 11-Dec-19 PRC — Language education Beijing Huairou Ruida Education Training School 19-Jan-18 PRC Language education Shanghai Boyu Investment Management Co., Ltd. 29-Jan-12 PRC — Language education Shanghai Riverdeep Education Information Consulting Co., Ltd. 8-Mar-10 PRC Educational consulting services Shanghai Ruiaidisi English Training School Co., Ltd. 5-Aug-19 PRC — Language education Kunshan Ruiaidisi Education Technology Co., Ltd. 30-Jul-19 PRC — Language education Guangzhou Ruisi Education Technology Development Co., Ltd. 17-Aug-12 PRC — Training services Guangzhou Yuexiu District RISE Immersion Subject English Training School 29-Apr-14 PRC — Language education Guangzhou Haizhu District RISE Immersion Subject English Training School-Chigang 8-Dec-14 PRC — Language education Guangzhou Tianhe District RISE Immersion Subject English Training School 11-Jul-17 PRC — Language education Guangzhou Liwan District Rise Education Training Center Co., Ltd. 25-Nov-19 PRC — Language education Guangzhou Tianhe District Ruisi Education Consulting Co., Ltd. 11-Jul-17 PRC — Language education Foshan Nanhai District Step Ahead Education Consulting Co., Ltd. 21-Jan-20 PRC — Language education Shenzhen Mei Ruisi Education Management Co., Ltd. 28-Feb-14 PRC — Training services Shenzhen Futian District Rise Training Center 8-Jan-15 PRC — Language education Shenzhen Nanshan District Rise Training Center 26-May-15 PRC — Language education Shenzhen Luohu District Rise Education Training Center 3-Aug-17 PRC — Language education Shenzhen Longhua District Minzhi Rise Training Center 27-May-20 PRC — Language education Percentage of equity interest attributable Date of Place of to the Principal Name establishment establishment company activity Wuxi Rise Foreign Language Training Co., Ltd. 5-Jun-13 PRC — Training services Wuxi Ruiying English Training Center Co., Ltd. 10-Jun-19 PRC — Language education Ruisixing (Tianjin) Travel Services Co., Ltd. 3-Jul-18 PRC — Traveling services Hebei Camphor Tree Information Technology Co., Ltd. 5-Nov-15 PRC — Investment holding Shijiazhuang Forest Rock Education Technology Co., Ltd. 28-Aug-18 PRC — Investment holding Shijiazhuang Xinhua District Oriental Red American Education Training School 14-Nov-19 PRC — Language education Shijiazhuang Xinhua District Zhuoshuo Training School Co., Ltd. 13-Dec-19 PRC — Language education Shijiazhuang Yuhua District Ai Ruisi Education Training School 1-Feb-19 PRC — Language education Shijiazhuang Yuhua District Oriental Red Education Training School 1-Feb-19 PRC — Language education Shijiazhuang Chang’an District Jinshuo Culture Education Training School Co., Ltd. 1-Apr-19 PRC — Language education Shijiazhuang Qiaoxi District Deshuo Training School Co., Ltd. 27-Aug-20 PRC — Language education Shijiazhuang Yuhua District Boshuo Training School Co., Ltd. 2-Jan-20 PRC — Language education The following tables set forth the assets, liabilities, results of operations and cash flows of discontinued operations, that were included in the Group’s consolidated financial statements (in thousands): As at December 31, 2020 RMB ASSETS Current assets: Cash and cash equivalents 549,486 Restricted cash 79,320 Accounts receivable, net 2,281 Amounts due from related parties 552 Inventories 7,814 Prepayments and other current assets 90,047 Total current assets of discontinued operations 729,500 Non-current Property and equipment, net 107,537 Intangible assets, net 185,647 Long-term investment — Goodwill 659,255 Deferred tax assets, net 34,241 Other non-current 55,853 Operating lease right-of-use 639,304 Total non-current 1,681,837 Total assets belong to discontinued operations 2,411,337 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable 11,028 Accrued expenses and other current liabilities 162,724 Deferred revenue and customer advances 563,736 Income taxes payable 5,556 Current portion of operating lease liabilities 197,098 Total current liabilities of discontinued operations 940,142 Non-current non-current Deferred revenue and customer advances 38,204 Operating lease liabilities 452,485 Deferred tax liabilities, net 24,011 Other non-current 50,447 Total non-current 565,147 Total liabilities of discontinued operations 1,505,289 2019 2020 2021 RMB RMB RMB Revenues 1,529,447 958,467 890,386 Cost of revenues (694,693 ) (602,934 ) (596,412 ) Gross profit 834,754 355,533 293,974 Operating expenses: Selling and marketing (307,339 ) (233,687 ) (191,816 ) General and administrativ e (289,351 ) (242,633 ) (417,381 ) Research and development expenses — — — Total operating expenses (596,690 ) (476,320 ) (609,197 ) Operating income/(loss) 238,064 (120,787 ) (315,223 ) Interest income 17,872 15,078 8,640 Interest expense (34,093 ) (23,611 ) (16,823 ) Foreign currency exchange gain/(loss) (1,506 ) (187 ) 1,627 Other income, net 10,115 26,961 (78,908 ) Impairment loss of long-term investment — (37,000 ) — Income/(loss) before income tax expense 230,452 (139,546 ) (400,687 ) Loss on sale of discontinued operations — — (97,777 ) Income tax (expense)/benefit (70,697 ) 15,695 (8,816 ) Net income/(loss) from discontinued operations 159,755 (123,851 ) (507,280 ) Net cash (used in) discontinued operating activities (19,696 ) (187,127 ) (509,825 ) Net cash (used in) discontinued investing activities (114,716 ) (111,782 ) (53,535 ) Net cash (used in) discontinued financing activities — — (23,308 ) |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of July 1, 2019, the date of acquisition: RMB Purchase consideration 44,061 Net assets acquired, excluding intangible assets and the related deferred tax liabilities (83,813 ) Intangible assets 15,800 Student base 15,800 Deferred tax liabilities (4,742 ) Non-controlling (33,866 ) Goodwill 150,682 |
Business Acquisition, Pro Forma Information | The pro forma information does not include any impact of transaction synergies and is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been occurred had the acquisition been consummated as of that time or that may result in the future: For the year ended December 31, 2019 pro forma As reported RMB RMB Revenues 1,555,302 1,529,447 Net income 152,669 148,100 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text Block [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: As at December 31, 2020 2021 2021 RMB RMB US$ Prepayments to suppliers 4,365 14,311 2,246 Deposits 144 140 22 4,509 14,451 2,268 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following: As at December 31, 2020 2021 2021 RMB RMB US$ Accrued other operating expenses 1,469 7,889 1,238 Others — 736 115 1,469 8,625 1,353 |
TROUBLED DEBT RESTRUCTURING (Ta
TROUBLED DEBT RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | On March 18, 2021, the Group entered into a Facility agreement with CTBC Bank Co., Ltd. for an aggregate amount of US$80,000 consisting of a five-year term loan facility of US$65,000 and a revolving credit facility of US$15,000. The Facility was used to repay its existing loans for amount of US$65,000 as of March 18, 2021. The repayment schedule of the five-year term loan facility is listed as the following: US$ March 18, 2022 3,250 March 18, 2023 8,125 March 18, 2024 11,375 March 18, 2025 16,250 March 18, 2026 26,000 65,000 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | b) During the years ended December 31, 2019, 2020 and 2021, the Group had the following related party transactions: For the years ended December 31, Notes 2019 2020 2021 2021 RMB RMB RMB US$ Bain Capital Education IV (i ) — — 108,334 17,000 Bain Capital Education IV — — 15,932 2,500 Wuhan Xinsili Culture Development Co., Ltd. (ii ) — — — — (i) The Company entered into a convertible loan deed with the Bain Capital Education IV (the “Shareholder”) on December 1, 2021 (the “Convertible Loan Deed”), pursuant to which the Shareholder will provide an interest-free convertible loan of US$17,000 to the Company for the period ended June 30, 2023, convertible into ordinary shares of the Company at US$0.35 per share, or US$0.70 per ADS. If the Company fails to pay any amount payable under this Deed on its due date, interest shall accrue on such amount from the due date at a rate two percent. The Group determined the appropriate accounting treatment of its convertible debt in accordance with the terms in relation to the conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The Group evaluated the equity components immaterial, and accounted for the convertible loan as a non-current The loan transactions for the year ended December 31, 2021 with details set forth below: Year ended December 31, 2021 Loan granted Principal Interest Rate Period Convertible loan 108,334 — December 1, 2021 to June 30, 2023 (ii) The CEO of the Company, Ms. Lihong Wang is the chairman of Wuhan Xinsili Culture Development Co., Ltd. As refer to Note 1, pursuant to the WFOE Purchase Agreement, the Company has agreed to, through Rise HK, sell all of the equity interests in WFOE to Wuhan Xinsili Culture Development Co., Ltd., in consideration of the Buyer SPV (i) paying to Rise HK a nominal consideration, and (ii) assuming all liabilities of WFOE and its subsidiaries. |
Due From Related Parties | c) The balances between the Group and its related parties as of December 31, 2020 and 2021 are listed below: Amounts due from a related party As at December 31, 2020 2021 2021 RMB RMB US$ Bain Capital Education IV 181 177 28 |
Due To Related Parties | Convertible loan from a replated party As at December 31, 2020 2021 2021 RMB RMB US$ Bain Capital Education IV — 108,334 17,000 |
INCOME_(LOSS) PER SHARE (Tables
INCOME/(LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted (Loss)\Income Per Share | Basic and diluted income/(loss) per share and per ADS for each of the years presented are calculated as follows: For the years ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Numerator: Net income/(loss) from continuing operations attributable to RISE Education Cayman Ltd (15,195 ) (17,593 ) 249,096 39,088 Net income/(loss) from discontinued operations attributable to RISE Education Cayman Ltd 163,295 (114,840 ) (497,583 ) (78,081 ) Net income/(loss) attributable to RISE Education Cayman Ltd 148,100 (132,433 ) (248,487 ) (38,993 ) Denominator: Weighted average number of ordinary shares outstanding-basic 113,187,721 112,813,031 112,868,532 112,868,532 Weighted average number of ordinary shares outstanding-diluted 114,464,108 112,813,031 112,868,532 112,868,532 Net income/(loss) per share - Basic: Continuing operations (0.13 ) (0.15 ) 2.21 0.35 Discontinued operations 1.44 (1.02 ) (4.41 ) (0.69 ) Total net income/(loss) per share - Basic 1.31 (1.17 ) (2.20 ) (0.34 ) Net income/(loss) per share - Diluted: Continuing operations (0.13 ) (0.15 ) 2.21 0.35 Discontinued operations 1.42 (1.02 ) (4.41 ) (0.69 ) Total net income/(loss) per share - Diluted 1.29 (1.17 ) (2.20 ) (0.34 ) Net income/(loss) per ADS - Basic: Continuing operations (0.26 ) (0.31 ) 4.42 0.70 Discontinued operations 2.88 (2.04 ) (8.82 ) (1.38 ) Total net income/(loss) per ADS - Basic 2.62 (2.35 ) (4.40 ) (0.68 ) Net income/(loss) per ADS - Diluted: Continuing operations (0.25 ) (0.31 ) 4.42 0.70 Discontinued operations 2.84 (2.04 ) (8.82 ) (1.38 ) Total net income/(loss) per ADS - Diluted 2.59 (2.35 ) (4.40 ) (0.68 ) |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the Equity Award Activity Under 2016 Equity Incentive Plan | A summary of the equity award activity under 2016 Equity Incentive Plan is stated below: Number of options Weighted– Weighted- Weighted- Aggregate US$ US$ US$ Outstanding, December 31, 2020 1,861,474 1.44 N/A 4.61 2,988 Exercised (50,000 ) 1.44 N/A N/A 16 Forfeited/Cancelled (110,000 ) 1.44 N/A N/A Outstanding, December 31, 2021 1,701,474 0.64 N/A 1.00 — Vested and expected to vest at December 31, 2021 1,701,474 0.64 N/A 1.00 — Exercisable at December 31, 2021 1,701,474 0.64 N/A 1.00 — A summary of the equity award activity under 2017 Share Incentive Plan and Modified 2017 Share Incentive Plan is stated below: Number of Weighted– Weighted- Weighted- Aggregate US$ US$ US$ Outstanding, December 31, 2020 3,873,506 1.89 1.76 8.86 4,731 Granted 850,000 1.75 0.63 Exercised (23,300 ) 1.75 3.09 14 Forfeited/Cancelled (3,030,852 ) 1.93 1.52 Outstanding, December 31, 2021 1,669,354 0.46 2.15 1.00 — Vested and expected to vest at December 31, 2021 1,669,354 0.46 2.15 1.00 — Exercisable at December 31, 2021 1,669,354 0.46 2.15 1.00 — A summary of the equity award activity under the 2020 Share Incentive Plan is as follows: Number of Weighted– Weighted- Weighted- Aggregate US$ US$ US$ Outstanding, December 31, 2020 3,645,494 1.75 1.49 9.70 4,721 Exercised (5,860 ) 1.75 1.59 3 Forfeited/Cancelled (2,932,538 ) 1.75 1.47 Outstanding, December 31, 2021 707,096 0.57 1.60 1.00 — Vested and expected to vest at December 31, 2021 707,096 0.57 1.60 1.00 — Exercisable at December 31, 2021 707,096 0.57 1.60 1.00 — |
Assumptions Used to Estimate the Fair Value of 2016 Equity Incentive Plan | The assumptions used to estimate the fair value of awards granted or modified under 2016 Equity Incentive Plan, 2017 Share Incentive Plan, modified 2017 Share Incentive Plan and 2020 Equity Incentive Plan are as follows: 2016 Equity Incentive Plan For the years ended December 31, 2019 2020 2021 Risk-free interest rate 2.41%-3.34% N/A N/A Expected volatility range 53.70%-55.20% N/A N/A Suboptimal exercise factor 2.80 N/A N/A Fair value per ordinary share as at valuation date US$4.11~US$5.37 N/A N/A 2017 Share Incentive Plan and Modified 2017 Share Incentive Plan For the years ended December 31, 2019 2020 2021 Risk-free interest rate 3.29% 1.65%~1.69% 1.00%~2.30% Expected volatility range 54.80% 55.10%~55.80% 57.00%~114.50% Suboptimal exercise factor 2.80 2.80 2.80 Fair value per ordinary share as at valuation date US$4.94 US$1.99~US$2.69 US$0.25~US$1.60 2020 Share Incentive Plan and Modified 2020 Share For the years ended December 31, 2019 2020 2021 Risk-free interest rate N/A 1.69%~1.86% 1.00% Expected volatility range N/A 55.10%~55.80% 114.50% Suboptimal exercise factor N/A 2.80 2.80 Fair value per ordinary share as at valuation date N/A US$2.52~US$2.69 US$0.25 |
Total Cost of Share-based Payments | All of the share-based compensation is recognized in the discontinued operations. Total cost of the share-based payments is summarized as follows For the years ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Cost of revenues 2,617 1,821 (895 ) (141 ) Selling and marketing expenses 1,016 1,497 (1,124 ) (176 ) General and administrative expenses 44,256 14,681 11,556 1,813 Total 47,889 17,999 9,537 1,496 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Foreign currency RMB Balance as of January 1, 2019 42,459 Foreign currency translation adjustments, net of tax of nil (1,542 ) Balance as of December 31, 2019 40,917 Foreign currency translation adjustments, net of tax of nil (1,275 ) Balance as of December 31, 2020 39,642 Foreign currency translation adjustments, net of tax of nil (6,635 ) Balance as of December 31, 2021 33,007 US$ Balance as of December 31, 2021 5,181 |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Textual) (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 30, 2021USD ($) | Dec. 01, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Dec. 01, 2021CNY (¥) | Dec. 01, 2021USD ($)$ / shares |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Repayments of Long-term Debt | ¥ 124,987 | $ 19,613 | ¥ 62,599 | ¥ 97,332 | |||||
Cash and cash equivalents | 16,027 | ¥ 5,134 | ¥ 14,043 | $ 2,515 | |||||
Working Capital Surplus Deficit | ¥ | 22,000 | ||||||||
Cash and Cash Equivalents [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Cash and cash equivalents | ¥ | ¥ 16,000 | ||||||||
Convertible Loan Deed [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Debt Conversion, Converted Instrument, Amount | $ 17,000 | ||||||||
Debt Instrument, Term | 360 days | ||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.35 | ||||||||
Percentage of volume weighted average closing price of the Company's ADSs | 10.00% | 10.00% | |||||||
Settlement Agreement [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Debt Instrument, Decrease, Forgiveness | $ 55,746 | ||||||||
Repayments of Long-term Debt | 10,377 | ||||||||
Repayments of Long-term Lines of Credit | $ 80,000 | ||||||||
WFOE Purchase Agreement [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Additional Paid in Capital | ¥ | ¥ 20,000 | ||||||||
Debt Instrument, Face Amount | ¥ 100,000 | $ 80,000 | |||||||
IP Holdco Purchase Agreement [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Repayments of Debt | $ 2,500 | ||||||||
American Depositary Shares [Member] | Convertible Loan Deed [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.70 |
ORGANIZATION AND BASIS OF PRE_4
ORGANIZATION AND BASIS OF PRESENTATION (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
RISE Education Cayman III Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Date of establishment Of Subsidiary | Jul. 29, 2013 |
Place of establishment Of Subsidiary | Cayman Islands |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Minority Interest Principal Activity | Investment holding |
RISE Education Cayman I Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Date of establishment Of Subsidiary | Jun. 19, 2013 |
Place of establishment Of Subsidiary | Cayman Islands |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Minority Interest Principal Activity | Investment holding |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Textual) (Detail) ¥ in Thousands, $ in Thousands | Mar. 18, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Jan. 01, 2019CNY (¥) | Jan. 01, 2018CNY (¥) |
Foreign Currency Exchange Rate, Translation | 6.3726 | 6.3726 | ||||||
Equity investment measured at fair value, realized gain (loss) | ¥ 0 | |||||||
PaymentsToAcquireLongtermInvestments | ¥ 4,000 | |||||||
Impairment loss of long-term investment | 0 | 37,000 | ¥ 0 | |||||
Impairment of Long-Lived Assets Held-for-use | 4,069 | $ 639 | ||||||
Accumulated deficit | (403,149) | (260,019) | $ (63,263) | |||||
Unrecognized tax benefits | 0 | 0 | ||||||
Unrecognized tax accrued for interest and penalties | 0 | 0 | ||||||
Gains Losses On Restructuring Of Debt | $ 0 | 279,097 | 43,796 | 0 | 0 | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Assets, Noncurrent | |||||||
Discontinued Operations [Member] | ||||||||
Lease right-of-use assets | ¥ 601,610 | |||||||
Lease liabilities | ¥ 610,500 | |||||||
Goodwill Impairment Loss | 0 | ¥ 0 | ¥ 0 | |||||
Accounting Standards Update 2014-09 [Member] | ||||||||
Accumulated deficit | ¥ 44,122 | |||||||
Other Income [Member] | ||||||||
Gains Losses On Restructuring Of Debt | ¥ 279,097 | $ 43,796 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Electronic equipment [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment, Useful Life | 4 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the lease term or estimated useful life |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES 1 (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Courseware license [Member] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Licensed Copyright [Member] | |
Finite-Lived Intangible Asset, Useful Life | The shorter of contractual termsor estimated useful lives of the assets |
Teaching Course Materials [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Maximum [Member] | Franchise Rights [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Maximum [Member] | Student Base [Member] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Maximum [Member] | Trademarks [Member] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Maximum [Member] | Purchased Software [Member] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Minimum [Member] | Franchise Rights [Member] | |
Finite-Lived Intangible Asset, Useful Life | 2 years 6 months |
Minimum [Member] | Student Base [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Minimum [Member] | Trademarks [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Minimum [Member] | Purchased Software [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Beijing Step Ahead Education Technology Development Co., Ltd. [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Date of establishment Of Subsidiary | 2-Jan-08 |
Place of establishment Of Subsidiary | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Minority Interest Principal Activity | Educational consulting |
Beijing Haidian District Step Ahead Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Date of establishment Of Subsidiary | 18-Sep-08 |
Place of establishment Of Subsidiary | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Minority Interest Principal Activity | Language education |
Beijing Shijingshan District Step Ahead Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 14-Jul-09 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Beijing Changping District Step Ahead Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 3-Jul-09 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Beijing Chaoyang District Step Ahead Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 20-Jul-09 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Beijing Xicheng District RISE Immersion Subject English Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 5-Feb-10 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Beijing Dongcheng District RISE Immersion Subject English Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 30-Jul-10 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Beijing Tongzhou District RISE Immersion Subject English Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 19-Apr-11 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Beijing Daxing District RISE Immersion Subject English Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 31-Mar-13 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Beijing Fengtai District RISE Immersion Subject English Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 28-Feb-12 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Beijing Rise Immersion Subject English Training School Co Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 26-Oct-18 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Beijing Step Ahead Rise Education Technology Co Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 11-Dec-19 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Beijing Huairou Ruida Education Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 19-Jan-18 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shanghai Boyu Investment Management Co., Ltd. [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 29-Jan-12 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shanghai Riverdeep Education Information Consulting Co., Ltd. [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 8-Mar-10 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Educational consulting services |
Shanghai Ruiaidisi English Training School Co., Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 5-Aug-19 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Kunshan Ruiaidisi Education Technology Co., Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 30-Jul-19 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Guangzhou Ruisi Education Technology Development Co., Ltd. [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 17-Aug-12 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Training services |
Guangzhou Yuexiu District RISE Immersion Subject English Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 29-Apr-14 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Guangzhou Haizhu District RISE Immersion Subject English Training School-Chigang [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 8-Dec-14 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Guangzhou Tianhe District RISE Immersion Subject English Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 11-Jul-17 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Guangzhou Liwan District Rise Education Training Center Co., Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 25-Nov-19 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Guangzhou Tianhe District Ruisi Education Consulting Co.,Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 11-Jul-17 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Foshan Nanhai District Step Ahead Education Consulting Co Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 21-Jan-20 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shenzhen Mei Ruisi Education Management Co., Ltd. [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 28-Feb-14 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Training services |
Shenzhen Futian District Rise Training Center [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 8-Jan-15 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shenzhen Nanshan District Rise Training Center [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 26-May-15 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shenzhen Luohu District Rise Education Training Center [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 3-Aug-17 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shenzhen Longhua District Minzhi Rise Training Center [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 27-May-20 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Wuxi Rise Foreign Language Training Co., Ltd. [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 5-Jun-13 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Training services |
Wuxi Ruiying English Training Center Co., Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 10-Jun-19 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Ruisixing (Tianjin) Travel Services Co., Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 3-Jul-18 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Traveling services |
Hebei Camphor Tree Information Technology Co., Ltd. [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 5-Nov-15 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Investment holding |
Shijiazhuang Forest Rock Education Technology Co., Ltd. [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 28-Aug-18 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Investment holding |
Shijiazhuang Xinhua District Oriental Red American Education Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 14-Nov-19 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shijiazhuang Xinhua District Zhuoshuo Training School Co., Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 13-Dec-19 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shijiazhuang Yuhua District Ai Ruisi Education Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 1-Feb-19 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shijiazhuang Yuhua District Oriental Red Education Training School [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 1-Feb-19 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shijiazhuang Chang'an District Jinshuo Culture Education Training School Co., Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 1-Apr-19 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shijiazhuang Qiaoxi District Deshuo Training School Co Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 27-Aug-20 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Shijiazhuang Yuhua District Boshuo Training School Co Ltd [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | 2-Jan-20 |
Variable Interest Entity, Qualitative or Quantitative Information, Place Of Establishment | PRC |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 0.00% |
Variable Interest Entity, Qualitative or Quantitative Information, Activities of VIE | Language education |
Rise IP Cayman Limited [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Date of establishment Of Subsidiary | 24-Jul-13 |
Place of establishment Of Subsidiary | Cayman Islands |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Minority Interest Principal Activity | Educational consulting |
Edge Franchising Co Limited Edge Franchising [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Date of establishment Of Subsidiary | 16-Mar-16 |
Place of establishment Of Subsidiary | Hong Kong |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Minority Interest Principal Activity | Educational consulting |
Rise Education International Limited [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Date of establishment Of Subsidiary | 24-Jun-13 |
Place of establishment Of Subsidiary | Hong Kong |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Minority Interest Principal Activity | Educational consulting |
Edge Online Co Limited [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Date of establishment Of Subsidiary | 1-Apr-18 |
Place of establishment Of Subsidiary | Hong Kong |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Minority Interest Principal Activity | Educational consulting |
Rise (Tianjin) Education Information Consulting Co., Ltd. [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Date of establishment Of Subsidiary | 12-Aug-13 |
Place of establishment Of Subsidiary | PRC |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Minority Interest Principal Activity | Educational consulting, Sale of course materials, study tour service |
DISCONTINUED OPERATIONS 1 (Det
DISCONTINUED OPERATIONS 1 (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | ¥ 30,655 | ¥ 744,568 | $ 4,811 | ||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 1,681,837 | ||||
Total assets | 30,655 | 2,426,405 | 4,811 | ||
Variable Interest Entity, Consolidated, Liabilities, Current | 8,625 | 1,168,355 | 1,353 | ||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 111,172 | 756,544 | 17,445 | ||
Total liabilities | 119,797 | 1,924,899 | $ 18,798 | ||
Revenues | ¥ 1,529,447 | ||||
Operating expenses: | |||||
General and administrative | (30,003) | $ (4,708) | (17,606) | (15,275) | |
Total operating expenses | 30,003 | 4,708 | 17,606 | 15,275 | |
Operating income/(loss) | (30,003) | (4,708) | (17,606) | (15,275) | |
Interest income | 2 | 0 | 13 | 80 | |
Income/(loss) before income tax expense | 249,096 | 39,088 | (17,593) | (15,195) | |
Net income/(loss) from discontinued operations | (507,280) | (79,603) | (123,851) | 159,755 | |
Net cash (used in) discontinued operating activities | (509,825) | (80,003) | (187,127) | (19,696) | |
Net cash (used in) discontinued investing activities | (53,535) | (8,401) | (111,782) | (114,716) | |
Net cash (used in) discontinued financing activities | (23,308) | $ (3,658) | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 420,254 | ||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 1,134,372 | ||||
Revenues | 890,386 | 958,467 | 1,529,447 | ||
Cost of revenues | (596,412) | (602,934) | (694,693) | ||
Gross profit | 293,974 | 355,533 | 834,754 | ||
Operating expenses: | |||||
Selling and marketing | (191,816) | (233,687) | (307,339) | ||
General and administrative | (417,381) | (242,633) | (289,351) | ||
Research and development expenses | 0 | 0 | 0 | ||
Total operating expenses | (609,197) | (476,320) | (596,690) | ||
Operating income/(loss) | (315,223) | (120,787) | 238,064 | ||
Interest income | 8,640 | 15,078 | 17,872 | ||
Interest expense | (16,823) | (23,611) | (34,093) | ||
Foreign currency exchange gain/(loss) | 1,627 | (187) | (1,506) | ||
Other income, net | (78,908) | 26,961 | 10,115 | ||
Impairment loss of long-term investment | 0 | (37,000) | 0 | ||
Income/(loss) before income tax expense | (400,687) | (139,546) | 230,452 | ||
Loss on sale of discontinued operations | (97,777) | 0 | 0 | ||
Income tax (expense)/benefit | (8,816) | 15,695 | (70,697) | ||
Net income/(loss) from discontinued operations | (507,280) | (123,851) | 159,755 | ||
Net cash (used in) discontinued operating activities | (509,825) | (187,127) | (19,696) | ||
Net cash (used in) discontinued investing activities | (53,535) | (111,782) | (114,716) | ||
Net cash (used in) discontinued financing activities | ¥ (23,308) | 0 | ¥ 0 | ||
Variable Interest Entity, Primary Beneficiary | Discontinued Operations [Member] | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 729,500 | ||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 1,681,837 | ||||
Total assets | 2,411,337 | ||||
Variable Interest Entity, Consolidated, Liabilities, Current | 940,142 | ||||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 565,147 | ||||
Total liabilities | 1,505,289 | ||||
Cash and cash equivalents | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 549,486 | ||||
Restricted cash | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 79,320 | ||||
Accounts receivable, net | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 2,281 | ||||
Amounts due from related parties | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 552 | ||||
Inventories | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 7,814 | ||||
Prepayments and other current assets | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Current | 90,047 | ||||
Property and equipment, net | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 107,537 | ||||
Intangible assets, net | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 185,647 | ||||
Long-term investment | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 0 | ||||
Goodwill | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 659,255 | ||||
Deferred tax assets, net | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 34,241 | ||||
Other non current assets | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 55,853 | ||||
Operating lease right-of-use assets | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Assets, Noncurrent | 639,304 | ||||
Accounts payable | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 11,028 | ||||
Accrued expenses and other liabilities | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 162,724 | ||||
Deferred revenue and customer advances | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 563,736 | ||||
Income taxes payable | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 5,556 | ||||
Current portion of operating lease liabilities | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Current | 197,098 | ||||
Deferred revenue and customer advances | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 38,204 | ||||
Operating lease liabilities | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 452,485 | ||||
Deferred tax liabilities, net | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 24,011 | ||||
Other non current liabilities | Variable Interest Entity, Primary Beneficiary | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | ¥ 50,447 |
DISCONTINUED OPERATIONS 1 (Pare
DISCONTINUED OPERATIONS 1 (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Liabilities, Current | ¥ 8,625 | $ 1,353 | ¥ 1,168,355 | |
Liabilities, Noncurrent | ¥ 111,172 | $ 17,445 | 756,544 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Liabilities, Current | 882,038 | $ 135,178 | ||
Liabilities, Noncurrent | ¥ 499,092 | $ 76,489 |
CONCENTRATION OF RISKS (Textual
CONCENTRATION OF RISKS (Textual) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018CNY (¥) | |
Foreign Currency Exchange Appreciation(Depreciation) Rate | (1.40%) | (6.30%) | 1.30% | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ¥ 16,027 | ¥ 639,184 | ¥ 1,022,825 | $ 2,515 | $ 100,302 | ¥ 1,316,785 |
China, Yuan Renminbi | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ¥ 16,027 | $ 2,515 |
BUSINESS COMBINATION (Textual)
BUSINESS COMBINATION (Textual) (Detail) - CNY (¥) ¥ in Thousands | Jul. 01, 2020 | Jul. 01, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 01, 2019 |
Business Combination, Consideration Transferred, Liabilities Incurred | ¥ 44,061 | |||||
Shijiazhuang [Member] | ||||||
Percentage of Ownership | 51.00% | |||||
Business Combination, Goodwill Recognized, Description | Goodwill recognized on the acquisition date is the expected synergies from combining operations of Shijiazhuang and the Group, which does not qualify for separate recognition. None of the goodwill recognized is expected to be deductible for income tax purposes. | |||||
Business Acquisition, Transaction Costs | 347 | ¥ 83 | ||||
Acquisition of Goodwill | ¥ 150,682 | |||||
Business combination consideration transferred | 44,061 | |||||
Intangible assets | ¥ 15,800 | |||||
Changping [Member] | ||||||
Business Combination, Consideration Transferred, Liabilities Incurred | 12,669 | |||||
Acquisition of Intangible Assets | ¥ 4,500 | |||||
Acquisition of Goodwill | ¥ 18,986 | |||||
Outstanding cash Consideration | 1,050 | |||||
Huairou [Member] | ||||||
Acquisition of Goodwill | ¥ 11,956 | |||||
Outstanding cash Consideration | ¥ 700 | |||||
Business combination consideration transferred | 8,075 | |||||
Intangible assets | ¥ 3,000 |
BUSINESS COMBINATION (Detail)
BUSINESS COMBINATION (Detail) ¥ in Thousands, $ in Thousands | Jul. 01, 2019CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Revenues | ¥ 1,529,447 | ||||
Net income | ¥ (248,487) | $ (38,993) | ¥ (132,433) | 148,100 | |
Pro Forma [Member] | |||||
Revenues | 1,555,302 | ||||
Net income | ¥ 152,669 | ||||
Shijiazhuang [Member] | |||||
Purchase consideration | ¥ 44,061 | ||||
Net assets acquired, excluding intangible assets and the related deferred tax liabilities | (83,813) | ||||
Intangible assets | 15,800 | ||||
Student base | 15,800 | ||||
Deferred tax liabilities | (4,742) | ||||
Non-controlling interest | (33,866) | ||||
Goodwill | ¥ 150,682 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepayments to suppliers | ¥ 14,311 | $ 2,246 | ¥ 4,365 |
Deposits | 140 | 22 | 144 |
Prepaid Expense and Other Assets, Current | ¥ 14,451 | $ 2,268 | ¥ 4,509 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Payables and Accruals [Abstract] | |||
Accrued other operating expenses | ¥ 7,889 | $ 1,238 | ¥ 1,469 |
Others | 736 | 115 | 0 |
Accounts Payable and Accrued Liabilities, Current | ¥ 8,625 | $ 1,353 | ¥ 1,469 |
TROUBLED DEBT RESTRUCTURING (Te
TROUBLED DEBT RESTRUCTURING (Textual) (Detail) ¥ in Thousands, $ in Thousands | Mar. 18, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | |||||
Gains Losses On Restructuring Of Debt | $ 0 | ¥ 279,097 | $ 43,796 | ¥ 0 | ¥ 0 |
Repayments of Long-term Debt | 124,987 | 19,613 | ¥ 62,599 | ¥ 97,332 | |
Other Income [Member] | |||||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | |||||
Gains Losses On Restructuring Of Debt | ¥ 279,097 | $ 43,796 | |||
CTBC Bank Co Ltd [Member] | |||||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | |||||
Aggregate commitment amount | 80,000 | ||||
CTBC Bank Co Ltd [Member] | Secured Debt [Member] | |||||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 65,000 | ||||
CTBC Bank Co Ltd [Member] | Revolving Credit Facility [Member] | |||||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 15,000 | ||||
Repayments of Long-term Debt | $ 65,000 |
TROUBLED DEBT RESTRUCTURING (De
TROUBLED DEBT RESTRUCTURING (Detail) ¥ in Thousands | Mar. 31, 2021CNY (¥) |
Troubled Debt Restructuring Note, Debtor [Abstract] | |
March 18, 2022 | ¥ 3,250 |
March 18, 2023 | 8,125 |
March 18, 2024 | 11,375 |
March 18, 2025 | 16,250 |
March 18, 2026 | 26,000 |
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | ¥ 65,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | ||
Bain Capital Rise Education IV [Member] | |||||
Loan to a related party: | |||||
Related Party Transaction, Amounts of Transaction | ¥ 15,932 | $ 2,500 | ¥ 0 | ¥ 0 | |
Wuhan Xinsili Culture Development CoLtd [Member] | |||||
Loan to a related party: | |||||
Related Party Transaction, Amounts of Transaction | [1] | 0 | 0 | 0 | |
Convertible Loan [Member] | Bain Capital Rise Education IV [Member] | |||||
Loan to a related party: | |||||
Related Party Transaction, Amounts of Transaction | [2] | ¥ 108,334 | $ 17,000 | ¥ 0 | ¥ 0 |
[1] | The CEO of the Company, Ms. Lihong Wang is the chairman of Wuhan Xinsili Culture Development Co., Ltd. As refer to Note 1, pursuant to the WFOE Purchase Agreement, the Company has agreed to, through Rise HK, sell all of the equity interests in WFOE to Wuhan Xinsili Culture Development Co., Ltd., in consideration of the Buyer SPV (i) paying to Rise HK a nominal consideration, and (ii) assuming all liabilities of WFOE and its subsidiaries. | ||||
[2] | The Company entered into a convertible loan deed with the Bain Capital Education IV (the “Shareholder”) on December 1, 2021 (the “Convertible Loan Deed”), pursuant to which the Shareholder will provide an interest-free convertible loan of US$17,000 to the Company for the period ended June 30, 2023, convertible into ordinary shares of the Company at US$0.35 per share, or US$0.70 per ADS. If the Company fails to pay any amount payable under this Deed on its due date, interest shall accrue on such amount from the due date at a rate two percent. The Group determined the appropriate accounting treatment of its convertible debt in accordance with the terms in relation to the conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The Group evaluated the equity components immaterial, and accounted for the convertible loan as a non-current liability as of December 31, 2021 |
RELATED PARTY TRANSACTIONS (Tex
RELATED PARTY TRANSACTIONS (Textual) (Detail) - Convertible Loan Deed [Member] $ / shares in Units, $ in Thousands | Dec. 01, 2021USD ($)$ / shares |
Debt Instrument, Convertible, Conversion Price | $ 0.35 |
Debt Conversion, Converted Instrument, Amount | $ | $ 17,000 |
American Depositary Shares [Member] | |
Debt Instrument, Convertible, Conversion Price | $ 0.70 |
Bain Capital Rise Education IV [Member] | |
Debt Instrument, Convertible, Conversion Price | $ 0.35 |
Debt Conversion, Converted Instrument, Amount | $ | $ 17,000 |
Bain Capital Rise Education IV [Member] | American Depositary Shares [Member] | |
Debt Instrument, Convertible, Conversion Price | $ 0.70 |
RELATED PARTY TRANSACTIONS 1 (D
RELATED PARTY TRANSACTIONS 1 (Detail) - Convertible Loan [Member] ¥ in Thousands | 12 Months Ended |
Dec. 31, 2021CNY (¥) | |
Interest Rate | 0.00% |
Principal | ¥ 108,334 |
Period | December 1, 2021 to June 30, 2023 |
RELATED PARTY TRANSACTIONS 2 (D
RELATED PARTY TRANSACTIONS 2 (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Bain Capital Education IV [Member] | |||
Due from Related Parties | ¥ 177 | $ 28 | ¥ 181 |
RELATED PARTY TRANSACTIONS 3 (D
RELATED PARTY TRANSACTIONS 3 (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Bain Capital Education Iv [Member] | |||
Due to Related Parties | ¥ 108,334 | $ 17,000 | ¥ 0 |
INCOME_(LOSS) PER SHARE (Detail
INCOME/(LOSS) PER SHARE (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |||
Numerator: | ||||||
Net income/(loss) from continuing operations attributable to RISE Education Cayman Ltd | ¥ 249,096 | $ 39,088 | ¥ (17,593) | ¥ (15,195) | ||
Net income/(loss) from discontinued operations attributable to RISE Education Cayman Ltd from | (497,583) | (78,081) | (114,840) | 163,295 | ||
Net income/(loss) attributable to RISE Education Cayman Ltd | ¥ (248,487) | $ (38,993) | ¥ (132,433) | ¥ 148,100 | ||
Denominator: | ||||||
Weighted average number of ordinary shares outstanding-basic | 112,868,532 | 112,868,532 | 112,813,031 | 113,187,721 | ||
Weighted average number of ordinary shares outstanding- diluted | 112,868,532 | 112,868,532 | 112,813,031 | 114,464,108 | ||
Net income/(loss) per share - Basic: | ||||||
Continuing operations | (per share) | ¥ 2.21 | $ 0.35 | ¥ (0.15) | ¥ (0.13) | ||
Discontinued operations | (per share) | (4.41) | (0.69) | (1.02) | 1.44 | ||
Total net income/(loss) per share - Basic | (per share) | (2.20) | (0.34) | (1.17) | 1.31 | ||
Net income/(loss) per share - Diluted: | ||||||
Continuing operations | (per share) | 2.21 | 0.35 | (0.15) | (0.13) | ||
Discontinued operations | (per share) | (4.41) | (0.69) | (1.02) | 1.42 | ||
Total net income/(loss) per share - Diluted | (per share) | (2.20) | (0.34) | (1.17) | 1.29 | ||
Net income/(loss) per ADS - Basic: | ||||||
Continuing operations | (per share) | 4.42 | 0.70 | (0.31) | [1] | (0.26) | [1] |
Discontinued operations | (per share) | (8.82) | (1.38) | (2.04) | [1] | 2.88 | [1] |
Total net income/(loss) per ADS - Basic | (per share) | (4.40) | (0.68) | (2.35) | [1] | 2.62 | [1] |
Earnings Per American Depository Share Diluted [Abstract] | ||||||
Continuing operations | (per share) | 4.42 | 0.70 | (0.31) | [1] | (0.25) | [1] |
Discontinued operations | (per share) | (8.82) | (1.38) | (2.04) | [1] | 2.84 | [1] |
Total net income/(loss) per ADS - Diluted | (per share) | ¥ (4.40) | $ (0.68) | ¥ (2.35) | [1] | ¥ 2.59 | [1] |
[1] | ADS represents 2 ordinary shares |
INCOME_(LOSS) PER SHARE (Textua
INCOME/(LOSS) PER SHARE (Textual) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Number of share options excluded from exercise shares | 4,047,619 | 953,168 | 0 |
SHARE-BASED PAYMENTS (Textual)
SHARE-BASED PAYMENTS (Textual) (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Sep. 11, 2020shares | Aug. 12, 2020CNY (¥)shares | Aug. 12, 2020USD ($)shares | Oct. 24, 2017CNY (¥) | Apr. 30, 2016shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016shares | May 01, 2021shares | Aug. 13, 2020shares | Apr. 01, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 50% of the options granted will generally vest in four or five equal installments over a service period (the “2016 Service Options”) while the remaining 50% of the options will vest in two equal installments of 25% each if a fixed targeted return on the Company’s ordinary shares is achieved (the “2016 Market Options”). | |||||||||||||||
Accelerated vesting of stock options granted | 309,000 | 432,500 | ||||||||||||||
Accelerated vesting of stock options granted | 50,000 | |||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 0 | |||||||||||||||
Vesting period | Dec. 31, 2020 | Dec. 31, 2020 | ||||||||||||||
Common Stock, Shares, Issued | 113,030,392 | 112,951,232 | ||||||||||||||
Modified 2017 ESOP [Member] | ||||||||||||||||
Share based compensation arrangement by share based payment award options granted | 1,613,506 | |||||||||||||||
Vesting period | Dec. 31, 2023 | Dec. 31, 2023 | ||||||||||||||
Weighted - average exercise price, granted | $ / shares | $ 1.75 | |||||||||||||||
Modified 2017 Share Incentive Plan | ||||||||||||||||
Accelerated vesting of stock options granted | 746,552 | 746,552 | ||||||||||||||
Number of stock options modified | 2,550,000 | 2,550,000 | 1,433,104 | 1,433,104 | ||||||||||||
Total incremental cost related to modification | ¥ 9,018 | $ 1,382 | ¥ 137 | $ 21 | ||||||||||||
Weighted - average exercise price, granted | $ / shares | $ 0.25 | |||||||||||||||
Share Incentive Plan 2016 [Member] | ||||||||||||||||
Share-based compensation | ¥ | ¥ 90,335 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ¥ 104 | $ 16 | ¥ 2,380 | ¥ 9,981 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 0 | 0 | ||||||||||||||
Total intrinsic value of options exercised | $ | $ 16 | |||||||||||||||
Share Incentive Plan 2017 [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | 10 years | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 | 5,000,000 | 850,000 | 4,800,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 1,157,328 | 1,157,328 | ||||||||||||||
Weighted-average grant-date fair value for vested options | $ / shares | $ 2.05 | |||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 0 | |||||||||||||||
Share based compensation arrangement by share based payment award options granted | 850,000 | 850,000 | ||||||||||||||
Weighted - average exercise price, granted | $ / shares | $ 1.75 | |||||||||||||||
Total intrinsic value of options exercised | ¥ 87 | $ 14 | ||||||||||||||
Share Incentive Plan 2020 [Member] | ||||||||||||||||
Accelerated vesting of stock options granted | 277,048 | 277,048 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 514,572 | 514,572 | ||||||||||||||
Weighted-average grant-date fair value for vested options | $ / shares | $ 1.60 | |||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 0 | |||||||||||||||
Common Stock, Shares, Issued | 4,147,494 | |||||||||||||||
Total intrinsic value of options exercised | ¥ 21 | 3 | ||||||||||||||
Share Incentive Plan 2020 [Member] | Modified 2017 Share Incentive Plan | ||||||||||||||||
Total incremental cost related to modification | ¥ 18 | $ 3 | ||||||||||||||
Share Incentive Plan 2020 [Member] | Modified 2020 Share Incentive Plan | ||||||||||||||||
Number of stock options modified | 554,096 | 554,096 | ||||||||||||||
Equity Option Plan [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 7,000,000 | |||||||||||||||
2017 Modification Date [Member] | ||||||||||||||||
Share-based compensation | ¥ 2,329 | $ 358 | ||||||||||||||
2021 Modification Date [Member] | ||||||||||||||||
Weighted - average exercise price, granted | $ / shares | $ 0.25 | |||||||||||||||
Employee [Member] | Equity Option Plan [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,985,000 |
SHARE-BASED PAYMENTS (Detail)
SHARE-BASED PAYMENTS (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | |
Share Incentive Plan 2016 [Member] | |||
Disclosure of Compensation Related Costs Sharebased Payments [Line Items] | |||
Number of options, Outstanding Opening | shares | 1,861,474 | 1,861,474 | |
Number of options, Exercised | shares | (50,000) | (50,000) | |
Number of options, Forfeited/Cancelled | shares | (110,000) | (110,000) | |
Number of options, Outstanding Ending | shares | 1,701,474 | 1,701,474 | 1,861,474 |
Number of options, Vested and expected to vest | shares | 1,701,474 | ||
Number of options, Exercisable | shares | 1,701,474 | ||
Weighted- average exercise price, Outstanding Opening | $ 1.44 | ||
Weighted- average exercise price, Exercised | 1.44 | ||
Weighted- average exercise price, Forfeited/Cancelled | 1.44 | ||
Weighted- average exercise price, Outstanding Ending | 0.64 | $ 1.44 | |
Weighted- average exercise price, Vested and expected to vest | 0.64 | ||
Weighted- average exercise price, Exercisable | $ 0.64 | ||
Weighted - average remaining contractual term, Outstanding | 1 year | 1 year | 4 years 7 months 9 days |
Weighted - average remaining contractual term Vested and expected to vest | 1 year | 1 year | |
Weighted - average remaining contractual term, Exercisable | 1 year | 1 year | |
Aggregate intrinsic Value, Outstanding Opening | $ | $ 2,988 | ||
Aggregate intrinsic Value,Excercised | $ | 16 | ||
Aggregate intrinsic Value, Outstanding Ending | $ | 0 | $ 2,988 | |
Aggregate intrinsic Value, Vested and expected to vest | $ | $ 0 | ||
Aggregate intrinsic Value, Exercisable | $ | $ 0 | ||
Share Incentive Plan 2017 [Member] | |||
Disclosure of Compensation Related Costs Sharebased Payments [Line Items] | |||
Number of options, Outstanding Opening | shares | 3,873,506 | 3,873,506 | |
Number of options, Granted | shares | 850,000 | 850,000 | |
Number of options, Exercised | shares | (23,300) | (23,300) | |
Number of options, Forfeited/Cancelled | shares | (3,030,852) | (3,030,852) | |
Number of options, Outstanding Ending | shares | 1,669,354 | 1,669,354 | 3,873,506 |
Number of options, Vested and expected to vest | shares | 1,669,354 | ||
Number of options, Exercisable | shares | 1,669,354 | ||
Weighted- average exercise price, Outstanding Opening | $ 1.89 | ||
Weighted - average exercise price, granted | 1.75 | ||
Weighted- average exercise price, Exercised | 1.75 | ||
Weighted- average exercise price, Forfeited/Cancelled | 1.93 | ||
Weighted- average exercise price, Outstanding Ending | 0.46 | $ 1.89 | |
Weighted- average exercise price, Vested and expected to vest | 0.46 | ||
Weighted- average exercise price, Exercisable | 0.46 | ||
Weighted-Average grant date fair value,outstanding opening | 1.76 | ||
Weighted-Average grant date fair value, Granted | 0.63 | ||
Weighted-Average grant date fair value, Exercised | 3.09 | ||
Weighted-Average grant date fair value, Forfeited/Cancelled | 1.52 | ||
Weighted-Average grant date fair value,outstanding Ending | 2.15 | $ 1.76 | |
Weighted-Average grant date fair value,vested and expected to vest | 2.15 | ||
Weighted-Average grant date fair value,Exercisable | $ 2.15 | ||
Weighted - average remaining contractual term, Outstanding | 1 year | 1 year | 8 years 10 months 9 days |
Weighted - average remaining contractual term Vested and expected to vest | 1 year | 1 year | |
Weighted - average remaining contractual term, Exercisable | 1 year | 1 year | |
Aggregate intrinsic Value, Outstanding Opening | $ | $ 4,731 | ||
Aggregate intrinsic Value,Excercised | 14 | ¥ 87 | |
Aggregate intrinsic Value, Outstanding Ending | $ | 0 | $ 4,731 | |
Aggregate intrinsic Value, Vested and expected to vest | $ | $ 0 | ||
Aggregate intrinsic Value, Exercisable | $ | $ 0 | ||
Share Incentive Plan 2020 [Member] | |||
Disclosure of Compensation Related Costs Sharebased Payments [Line Items] | |||
Number of options, Outstanding Opening | shares | 3,645,494 | 3,645,494 | |
Number of options, Exercised | shares | (5,860) | (5,860) | |
Number of options, Forfeited/Cancelled | shares | (2,932,538) | (2,932,538) | |
Number of options, Outstanding Ending | shares | 707,096 | 707,096 | 3,645,494 |
Number of options, Vested and expected to vest | shares | 707,096 | ||
Number of options, Exercisable | shares | 707,096 | ||
Weighted- average exercise price, Outstanding Opening | $ 1.75 | ||
Weighted- average exercise price, Exercised | 1.75 | ||
Weighted- average exercise price, Forfeited/Cancelled | 1.75 | ||
Weighted- average exercise price, Outstanding Ending | 0.57 | $ 1.75 | |
Weighted- average exercise price, Vested and expected to vest | 0.57 | ||
Weighted- average exercise price, Exercisable | 0.57 | ||
Weighted-Average grant date fair value,outstanding opening | 1.49 | ||
Weighted-Average grant date fair value, Exercised | 1.59 | ||
Weighted-Average grant date fair value, Forfeited/Cancelled | 1.47 | ||
Weighted-Average grant date fair value,outstanding Ending | 1.60 | $ 1.49 | |
Weighted-Average grant date fair value,vested and expected to vest | 1.60 | ||
Weighted-Average grant date fair value,Exercisable | $ 1.60 | ||
Weighted - average remaining contractual term, Outstanding | 1 year | 1 year | 9 years 8 months 12 days |
Weighted - average remaining contractual term Vested and expected to vest | 1 year | 1 year | |
Weighted - average remaining contractual term, Exercisable | 1 year | 1 year | |
Aggregate intrinsic Value, Outstanding Opening | $ | $ 4,721 | ||
Aggregate intrinsic Value,Excercised | 3 | ¥ 21 | |
Aggregate intrinsic Value, Outstanding Ending | $ | 0 | $ 4,721 | |
Aggregate intrinsic Value, Vested and expected to vest | $ | 0 | ||
Aggregate intrinsic Value, Exercisable | $ | $ 0 |
SHARE-BASED PAYMENTS 1 (Detail)
SHARE-BASED PAYMENTS 1 (Detail) | 12 Months Ended | ||
Dec. 31, 2021yr$ / shares | Dec. 31, 2020yr$ / shares | Dec. 31, 2019yr$ / shares | |
Share Incentive Plan 2016 [Member] | |||
Suboptimal exercise factor | yr | 2.80 | ||
Share Incentive Plan 2017 [Member] | |||
Risk-free interest rate | 3.29% | ||
Expected volatility range | 54.80% | ||
Suboptimal exercise factor | yr | 2.80 | 2.80 | 2.80 |
Fair value per ordinary share as at valuation date | $ 4.94 | ||
Share Incentive Plan 2020 [Member] | |||
Risk-free interest rate | 1.00% | ||
Expected volatility range | 114.50% | ||
Suboptimal exercise factor | yr | 2.80 | 2.80 | |
Fair value per ordinary share as at valuation date | $ 0.25 | ||
Minimum [Member] | Share Incentive Plan 2016 [Member] | |||
Risk-free interest rate | 2.41% | ||
Expected volatility range | 53.70% | ||
Fair value per ordinary share as at valuation date | $ 4.11 | ||
Minimum [Member] | Share Incentive Plan 2017 [Member] | |||
Risk-free interest rate | 1.00% | 1.65% | |
Expected volatility range | 57.00% | 55.10% | |
Fair value per ordinary share as at valuation date | $ 0.25 | $ 1.99 | |
Minimum [Member] | Share Incentive Plan 2020 [Member] | |||
Risk-free interest rate | 1.69% | ||
Expected volatility range | 55.10% | ||
Fair value per ordinary share as at valuation date | $ 2.52 | ||
Maximum [Member] | Share Incentive Plan 2016 [Member] | |||
Risk-free interest rate | 3.34% | ||
Expected volatility range | 55.20% | ||
Fair value per ordinary share as at valuation date | $ 5.37 | ||
Maximum [Member] | Share Incentive Plan 2017 [Member] | |||
Risk-free interest rate | 2.30% | 1.69% | |
Expected volatility range | 114.50% | 55.80% | |
Fair value per ordinary share as at valuation date | $ 1.60 | $ 2.69 | |
Maximum [Member] | Share Incentive Plan 2020 [Member] | |||
Risk-free interest rate | 1.86% | ||
Expected volatility range | 55.80% | ||
Fair value per ordinary share as at valuation date | $ 2.69 |
SHARE-BASED PAYMENTS 2 (Detail)
SHARE-BASED PAYMENTS 2 (Detail) - Discontinued Operations [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cost of revenues | ¥ (895) | $ (141) | ¥ 1,821 | ¥ 2,617 |
Selling and marketing expenses | (1,124) | (176) | 1,497 | 1,016 |
General and administrative expenses | 11,556 | 1,813 | 14,681 | 44,256 |
Total | ¥ 9,537 | $ 1,496 | ¥ 17,999 | ¥ 47,889 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Equity [Abstract] | ||||
Opening Balance | ¥ 39,642 | ¥ 40,917 | ¥ 42,459 | |
Foreign currency translation adjustments, net of tax of nil | (6,635) | $ (1,041) | (1,275) | (1,542) |
Closing Balance | ¥ 33,007 | $ 5,181 | ¥ 39,642 | ¥ 40,917 |
SUBSEQUENT EVENT (Textual) (Det
SUBSEQUENT EVENT (Textual) (Detail) - Mar. 28, 2022 - Subsequent Event - Convertible Loans [Member] ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Debt Instrument, Face Amount | $ 17,000 | ¥ 108,334 |
Debt Instrument, Maturity Date | Jun. 30, 2023 |