Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document And Entity Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Puxin Limited |
Entity Central Index Key | 0001726189 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Shell Company | false |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity File Number | 001-38514 |
Entity Incorporation, State or Country Code | E9 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Address, Address Line One | 5/F, Building 4, Dingjun Building |
Entity Address, Address Line Two | 75 Suzhou Street, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100080 |
Entity Address, Country | CN |
Entity Common Stock, Shares Outstanding | 174,453,992 |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | false |
Business Contact [Member] | |
Document And Entity Information [Line Items] | |
Entity Address, Address Line One | 5/F, Building 4, Dingjun Building |
Entity Address, Address Line Two | 75 Suzhou Street, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100080 |
Entity Address, Country | CN |
Contact Personnel Name | Mr. Yunlong Sha, Chief Executive Officer |
City Area Code | 86 10 |
Local Phone Number | 8260 5578 |
Contact Personnel Email Address | shayunlong@pxjy.com |
American Depositary Shares [Member] | |
Document And Entity Information [Line Items] | |
Trading Symbol | NEW |
Title of each class | American depositary shares (each ADS representing two ordinary shares, par value US$0.00005 per share) |
Security Exchange Name | NYSE |
Ordinary Shares [Member] | |
Document And Entity Information [Line Items] | |
Title of each class | Ordinary shares, par value US$0.00005 per share |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 48,497 | $ 7,432 | ¥ 256,763 |
Restricted cash, current portion | 514,496 | 78,850 | 349,540 |
Inventories | 15,210 | 2,331 | 13,311 |
Prepaid expenses and other current assets | 141,894 | 21,746 | 117,148 |
Loan receivables | 222,895 | 34,160 | 191,230 |
Total current assets | 942,992 | 144,519 | 927,992 |
Non-current assets | |||
Restricted cash, non-current portion | 25,814 | 3,956 | 36,727 |
Operating lease right-of-use assets | 940,568 | 144,148 | 1,045,941 |
Property, plant and equipment, net | 265,029 | 40,617 | 298,719 |
Intangible assets | 225,170 | 34,509 | 264,540 |
Goodwill | 2,083,151 | 319,257 | 2,055,922 |
Deferred tax assets | 3,522 | 540 | 2,199 |
Rental deposits | 71,948 | 11,027 | 75,015 |
Other non-current assets | 59,400 | 9,103 | |
TOTAL ASSETS | 4,617,594 | 707,676 | 4,707,055 |
Current liabilities | |||
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIE without recourse to the Group of RMB930,674 and RMB743,499 as of December 31, 2019 and 2020, respectively) | 784,894 | 120,290 | 983,715 |
Income tax payable of the consolidated VIE without recourse to the Group | 32,445 | 4,972 | 21,248 |
Deferred revenue, current portion (including deferred revenue, current portion of the consolidated VIE without recourse to the Group of RMB1,195,723 and RMB1,013,606 as of December 31, 2019 and 2020, respectively) | 1,023,037 | 156,787 | 1,205,609 |
Operating lease liabilities, current portion (including operating lease liabilities, current portion of the consolidated VIE without recourse to the Group of RMB275,893 and RMB251,572 as of December 31, 2019 and 2020, respectively) | 254,002 | 38,928 | 276,877 |
Amounts due to related parties, current portion (including amounts due to related parties, current portion of the consolidated VIE without recourse to the Group of RMB254 and RMB nil as of December 31, 2019 and 2020, respectively) | 1,451 | ||
Bank borrowings of the consolidated VIE without recourse to the Group | 585,000 | 89,655 | 318,600 |
Loans payable to third parties, current portion (including loans payable to third parties, current portion of the consolidated VIE without recourse to the Group of RMB292,952 and RMB136,600 as of December 31, 2019 and 2020, respectively) | 301,850 | 46,261 | 413,838 |
Promissory note, current portion | 163,125 | 25,000 | 87,023 |
Total current liabilities | 3,144,353 | 481,893 | 3,308,361 |
Non-current liabilities | |||
Deferred revenue, non-current portion of the consolidated VIE without recourse to the Group | 81,805 | 12,537 | 101,372 |
Deferred tax liabilities of the consolidated VIE without recourse to the Group | 71,674 | 10,985 | 81,969 |
Franchise deposits of the consolidated VIE without recourse to the Group | 2,549 | 391 | 2,533 |
Operating lease liabilities, non-current portion (including operating lease liabilities, non-current portion of the consolidated VIE without recourse to the Group of RMB693,505 and RMB594,624 as of December 31, 2019 and 2020, respectively) | 605,827 | 92,847 | 693,505 |
Promissory note, non-current portion | 87,022 | ||
Derivative liabilities | 172,235 | ||
Loans payable to third parties, non-current portion | 121,870 | 18,677 | |
Amounts due to related parties, non-current portion | 170,393 | 26,114 | |
TOTAL LIABILITIES | 4,198,471 | 643,444 | 4,446,997 |
Commitments and Contingencies (Note 23) | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares (par value of USD0.00005 per share; 1,000,000,000 and 1,000,000,000 shares authorized, 188,627,228 and 188,653,468 shares issued and 174,025,810 and 174,453,992 shares outstanding as of December 31, 2019 and 2020, respectively) | 62 | 9 | 62 |
Additional paid-in capital | 2,396,406 | 367,265 | 2,175,652 |
Statutory reserve | 11,444 | 1,754 | 7,979 |
Accumulated other comprehensive income | 43,711 | 6,699 | 68,707 |
Accumulated deficit | (2,026,891) | (310,635) | (1,991,220) |
Total Puxin Limited shareholders' equity | 424,732 | 65,092 | 261,180 |
Non-controlling interest | (5,609) | (860) | (1,122) |
TOTAL SHAREHOLDERS' EQUITY | 419,123 | 64,232 | 260,058 |
TOTAL LIABILITIES AND TOTAL SHAREHOLDERS' EQUITY | ¥ 4,617,594 | $ 707,676 | ¥ 4,707,055 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares |
Amounts due to related parties, current portion | ¥ 1,451 | |
Deferred revenue, current portion | ¥ 1,023,037 | 1,205,609 |
Accrued expenses and other current liabilities | 784,894 | 983,715 |
Operating lease liabilities, current portion | 254,002 | 276,877 |
Loans payable to third parties, current portion | 301,850 | 413,838 |
Operating lease liabilities, non-current portion | ¥ 605,827 | ¥ 693,505 |
Ordinary shares, authorized | shares | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, issued | shares | 188,653,468 | 188,627,228 |
Ordinary shares, outstanding | shares | 174,453,992 | 174,025,810 |
VIE | ||
Amounts due to related parties, current portion | ¥ 0 | ¥ 254 |
Deferred revenue, current portion | 1,013,606 | 1,195,723 |
Accrued expenses and other current liabilities | 743,499 | 930,674 |
Operating lease liabilities, current portion | 251,572 | 275,893 |
Loans payable to third parties, current portion | 136,600 | 292,952 |
Operating lease liabilities, non-current portion | ¥ 594,624 | ¥ 693,505 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Income Statement [Abstract] | ||||
Net revenues | ¥ 2,903,915 | $ 445,044 | ¥ 3,103,958 | ¥ 2,228,117 |
Cost of revenues (including share-based compensation expenses of RMB6,420, RMB4,352 and RMB2,294 for the years ended December 31, 2018, 2019 and 2020, respectively) | (1,558,596) | (238,865) | (1,629,447) | (1,242,889) |
Gross profit | 1,345,319 | 206,179 | 1,474,511 | 985,228 |
Operating expenses: | ||||
Selling expenses (including share-based compensation expenses of RMB28,848, RMB21,870 and RMB13,290 for the years ended December 31, 2018, 2019 and 2020, respectively) | (1,048,521) | (160,693) | (1,083,795) | (848,088) |
General and administrative expenses (including share-based compensation expenses of RMB339,689, RMB204,218 and RMB12,439 for the years ended December 31, 2018, 2019 and 2020, respectively) | (469,163) | (71,902) | (748,259) | (775,883) |
Impairment loss on intangible assets | (4,100) | (628) | ||
Total operating expenses | (1,521,784) | (233,223) | (1,832,054) | (1,623,971) |
Operating loss | (176,465) | (27,044) | (357,543) | (638,743) |
Interest expense | (80,319) | (12,309) | (71,099) | (51,901) |
Interest income | 46,150 | 7,073 | 25,542 | 2,826 |
Foreign exchange (loss) gain | (1,322) | (203) | 243 | (7,621) |
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | (20,917) | (3,206) | (104,589) | (131,748) |
Loss on extinguishment of convertible notes | (900) | |||
Other income, net | 78,440 | 12,021 | ||
Gain on disposal of subsidiaries | 126,968 | 19,459 | ||
Loss before income taxes | (27,465) | (4,209) | (507,446) | (828,087) |
Income tax expenses | (9,195) | (1,409) | (12,188) | (5,322) |
Net loss | (36,660) | (5,618) | (519,634) | (833,409) |
Less: Net income (loss) attributable to non-controlling interest | (4,454) | (683) | (1,101) | 2 |
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (32,206) | $ (4,935) | ¥ (518,533) | ¥ (833,411) |
Net loss per share attributable to ordinary shareholders of Puxin Limited | ||||
Basic and diluted | (per share) | ¥ (0.18) | $ (0.03) | ¥ (3.03) | ¥ (5.78) |
Weighted average shares used in calculating basic and diluted net loss per share | 174,156,247 | 174,156,247 | 170,903,317 | 144,157,947 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based compensation expense | ¥ 28,023 | ¥ 230,440 | ¥ 345,503 |
Cost of Revenues | |||
Share-based compensation expense | 2,294 | 4,352 | 6,420 |
Selling Expenses | |||
Share-based compensation expense | 13,290 | 21,870 | 28,848 |
General and Administrative Expenses | |||
Share-based compensation expense | ¥ 12,439 | ¥ 204,218 | ¥ 339,689 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Statement [Abstract] | ||||
Net loss | ¥ (36,660) | $ (5,618) | ¥ (519,634) | ¥ (833,409) |
Other comprehensive income (loss), net of tax of nil: | ||||
Change in cumulative foreign currency translation adjustments | (24,996) | (3,831) | 493 | 52,496 |
Total comprehensive loss | (61,656) | (9,449) | (519,141) | (780,913) |
Less: Comprehensive income (loss) attributable to non-controlling interest | (4,454) | (683) | (1,101) | 2 |
Total comprehensive loss attributable to Puxin Limited | ¥ (57,202) | $ (8,766) | ¥ (518,040) | ¥ (780,915) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Conversion of Convertible NotesCNY (¥) | Conversion of Convertible Redeemable Preferred SharesCNY (¥) | IPOCNY (¥) | Ordinary SharesCNY (¥)shares | Ordinary SharesUSD ($)shares | Ordinary SharesConversion of Convertible NotesCNY (¥)shares | Ordinary SharesConversion of Convertible Redeemable Preferred SharesCNY (¥)shares | Ordinary SharesIPOCNY (¥)shares | Additional Paid In CapitalCNY (¥) | Additional Paid In CapitalUSD ($) | Additional Paid In CapitalConversion of Convertible NotesCNY (¥) | Additional Paid In CapitalConversion of Convertible Redeemable Preferred SharesCNY (¥) | Additional Paid In CapitalIPOCNY (¥) | Statutory ReserveCNY (¥) | Statutory ReserveUSD ($) | Accumulated Other Comprehensive IncomeCNY (¥) | Accumulated Other Comprehensive IncomeUSD ($) | Accumulated DeficitCNY (¥) | Accumulated DeficitUSD ($) | Total Puxin Limited Shareholders (Deficit) EquityCNY (¥) | Total Puxin Limited Shareholders (Deficit) EquityUSD ($) | Total Puxin Limited Shareholders (Deficit) EquityConversion of Convertible NotesCNY (¥) | Total Puxin Limited Shareholders (Deficit) EquityConversion of Convertible Redeemable Preferred SharesCNY (¥) | Total Puxin Limited Shareholders (Deficit) EquityIPOCNY (¥) | Noncontrolling InterestCNY (¥) | Noncontrolling InterestUSD ($) | Cumulative Effect, Period of Adoption, AdjustmentCNY (¥) | Cumulative Effect, Period of Adoption, AdjustmentAccumulated DeficitCNY (¥) | Cumulative Effect, Period of Adoption, AdjustmentTotal Puxin Limited Shareholders (Deficit) EquityCNY (¥) |
Beginning balance at Dec. 31, 2017 | ¥ (272,785) | ¥ 34 | ¥ 391,099 | ¥ 15,718 | ¥ (679,613) | ¥ (272,762) | ¥ (23) | ||||||||||||||||||||||||
Beginning balance, shares at Dec. 31, 2017 | shares | 100,000,000 | 100,000,000 | |||||||||||||||||||||||||||||
Issuance of ordinary shares | 736 | ¥ 798,830 | ¥ 16 | ¥ 5 | 720 | ¥ 798,825 | 736 | ¥ 798,830 | |||||||||||||||||||||||
Issuance of ordinary shares, shares | shares | 26,827,744 | 26,827,744 | 16,560,000 | ||||||||||||||||||||||||||||
Net loss | (833,409) | (833,411) | (833,411) | 2 | |||||||||||||||||||||||||||
Provision of statutory reserve | ¥ 4,595 | (4,595) | |||||||||||||||||||||||||||||
Share-based compensation | 345,503 | 345,503 | 345,503 | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | 52,496 | 52,496 | 52,496 | ||||||||||||||||||||||||||||
Repurchase of convertible redeemable preferred shares | (131,088) | (131,088) | (131,088) | ||||||||||||||||||||||||||||
Conversion of convertible notes /redeemable preferred shares | ¥ 438,720 | ¥ 71,088 | ¥ 3 | ¥ 4 | ¥ 438,717 | ¥ 71,084 | ¥ 438,720 | ¥ 71,088 | |||||||||||||||||||||||
Conversion of convertible notes / redeemable preferred shares, shares | shares | 8,067,228 | 11,917,880 | |||||||||||||||||||||||||||||
Restricted shares granted | 29,454 | 29,454 | 29,454 | ||||||||||||||||||||||||||||
Restricted shares granted, shares | shares | 1,631,200 | 1,631,200 | |||||||||||||||||||||||||||||
Option exercised | 11 | 11 | 11 | ||||||||||||||||||||||||||||
Option exercised, shares | shares | 34,112 | 34,112 | |||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2018 | 547,872 | ¥ 62 | 1,944,325 | 4,595 | 68,214 | (1,469,303) | 547,893 | (21) | ¥ 48,316 | ¥ 48,316 | ¥ 48,316 | ||||||||||||||||||||
Ending balance, shares at Dec. 31, 2018 | shares | 165,038,164 | 165,038,164 | |||||||||||||||||||||||||||||
Net loss | (519,634) | (518,533) | (518,533) | (1,101) | |||||||||||||||||||||||||||
Provision of statutory reserve | 3,384 | (3,384) | |||||||||||||||||||||||||||||
Share-based compensation | 230,440 | 230,440 | 230,440 | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | 493 | 493 | 493 | ||||||||||||||||||||||||||||
Option exercised | 887 | 887 | 887 | ||||||||||||||||||||||||||||
Option exercised, shares | shares | 8,987,646 | 8,987,646 | |||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2019 | ¥ 260,058 | ¥ 62 | 2,175,652 | 7,979 | 68,707 | (1,991,220) | 261,180 | (1,122) | |||||||||||||||||||||||
Ending balance, shares at Dec. 31, 2019 | shares | 188,627,228 | 188,627,228 | 174,025,810 | 174,025,810 | |||||||||||||||||||||||||||
Net loss | ¥ (36,660) | $ (5,618) | (32,206) | (32,206) | (4,454) | ||||||||||||||||||||||||||
Provision of statutory reserve | 3,465 | (3,465) | |||||||||||||||||||||||||||||
Share-based compensation | 28,023 | 28,023 | 28,023 | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | (24,996) | $ (3,831) | (24,996) | (24,996) | |||||||||||||||||||||||||||
Option exercised | ¥ 1,466 | 1,466 | 1,466 | ||||||||||||||||||||||||||||
Option exercised, shares | shares | 428,182 | 428,182 | 428,182 | 428,182 | |||||||||||||||||||||||||||
Purchase of non-controlling interest | ¥ (3,000) | (3,000) | (3,000) | ||||||||||||||||||||||||||||
Disposal of non-controlling interest (Note 4) | (33) | (33) | |||||||||||||||||||||||||||||
Extinguishment of derivative liabilities (Note 13) | 194,265 | 194,265 | 194,265 | ||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2020 | ¥ 419,123 | $ 64,232 | ¥ 62 | $ 9 | ¥ 2,396,406 | $ 367,265 | ¥ 11,444 | $ 1,754 | ¥ 43,711 | $ 6,699 | ¥ (2,026,891) | $ (310,635) | ¥ 424,732 | $ 65,092 | ¥ (5,609) | $ (860) | |||||||||||||||
Ending balance, shares at Dec. 31, 2020 | shares | 188,653,468 | 188,653,468 | 174,453,992 | 174,453,992 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) EQUITY (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of ordinary shares upon initial public offering, issuance cost | ¥ 38,711 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | ¥ (36,660) | $ (5,618) | ¥ (519,634) | ¥ (833,409) |
Adjustments to reconcile net loss to net cash (used in) generated from operating activities: | ||||
Depreciation of property, plant and equipment | 80,290 | 12,305 | 77,859 | 57,696 |
Amortization of intangible assets | 34,266 | 5,251 | 34,938 | 32,749 |
Foreign exchange loss (gain) | 1,322 | 203 | (243) | 7,621 |
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 20,917 | 3,206 | 104,589 | 131,748 |
Loss on extinguishment of convertible notes | 900 | |||
(Gain) loss on disposal of property, plant and equipment | 8,197 | 1,256 | 7,938 | (266) |
Share-based compensation | 28,023 | 4,295 | 230,440 | 374,957 |
Deferred income taxes | (11,366) | (1,742) | (7,930) | (8,943) |
Gain on disposal of subsidiaries | (126,968) | (19,459) | ||
Impairment loss on intangible assets | 4,100 | 628 | ||
Changes in operating assets and liabilities: | ||||
Inventories | (1,893) | (290) | (2,144) | 723 |
Prepaid expenses and other current assets | 10,641 | 1,631 | 23,884 | (48,772) |
Amounts due from related parties | 113 | |||
Deferred revenue | (183,405) | (28,108) | (16,407) | (32,052) |
Accrued expenses and other current liabilities | (39,947) | (6,121) | 138,173 | (10,267) |
Income tax payable | 11,197 | 1,716 | 5,493 | 5,733 |
Amounts due to related parties | (2,060) | (316) | (53,042) | 230,657 |
Franchise deposits | 16 | 2 | 770 | (2,093) |
Net cash (used in) generated from operating activities | (203,330) | (31,161) | 24,684 | (92,905) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Acquisition of businesses, net of cash acquired | (1,095) | (168) | (104,534) | (73,208) |
Purchase of property, plant and equipment | (70,968) | (10,876) | (115,545) | (83,709) |
Loans to third parties | (43,663) | (6,692) | (191,230) | |
Proceeds from disposal of subsidiaries, net of cash disposed | 34,410 | 5,274 | ||
Purchase of non-controlling interest | (3,000) | (460) | ||
Net cash used in investing activities | (84,316) | (12,922) | (411,309) | (156,917) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Acquisition of businesses | (192,349) | (29,479) | (147,592) | |
Proceeds from IPO (net of IPO expenses) | 799,208 | |||
Proceeds from promissory notes | 50,000 | |||
Repayments of promissory notes | (190,000) | |||
Repurchase of convertible redeemable preferred shares | (180,000) | |||
Loans from third parties | 326,146 | 49,984 | 547,038 | 139,500 |
Repayments to third parties | (314,953) | (48,269) | (212,700) | (83,802) |
Borrowings from banks | 675,000 | 103,448 | 449,600 | 110,873 |
Repayments of bank borrowings | (408,600) | (62,621) | (242,100) | (4,273) |
Loans from related parties | 265,138 | 40,634 | ||
Repayments to related parties | (94,136) | (14,427) | ||
Net cash generated from financing activities | 256,246 | 39,270 | 204,246 | 831,506 |
Effect of exchange rate changes | (22,823) | (3,498) | 6,432 | 48,131 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (54,223) | (8,311) | (175,947) | 629,815 |
Cash and cash equivalents, and restricted cash at beginning of the year | 643,030 | 98,549 | 818,977 | 189,162 |
Cash and cash equivalents, and restricted cash at end of the year | 588,807 | 90,238 | 643,030 | 818,977 |
Supplemental schedule of cash flow information | ||||
Income taxes paid | 9,364 | 1,435 | 14,625 | 8,532 |
Interest paid | 77,131 | 11,821 | 60,528 | 55,098 |
Acquisition consideration payable | 191,431 | 29,338 | 376,187 | 48,128 |
Reconciliation to amounts on consolidated balance sheets | ||||
Cash and cash equivalents | 48,497 | 7,432 | 256,763 | 778,006 |
Restricted cash | 540,310 | 82,806 | 386,267 | 40,971 |
Cash and cash equivalents, and restricted cash at end of the year | ¥ 588,807 | $ 90,238 | ¥ 643,030 | ¥ 818,977 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Puxin Limited (the “Company”) was incorporated under the laws of the Cayman Islands on March 17, 2017. The Company, its subsidiaries, consolidated variable interest entity (“VIE”) and VIE’s subsidiaries and schools (collectively the “Group”) are primarily engaged in providing K-12 History Puxin Education Technology Group Co., Ltd. (“Puxin Education” or the “VIE”) was founded in September 2014, as a limited liability company in the PRC, by Mr. Yunlong Sha, Chief Executive Officer (“CEO”) of the Company. Puxin Education, its subsidiaries and schools are primarily engaged in providing K-12 Puxin Limited was set up to facilitate the Group’s future overseas offering and Puxin Education’s acquisition of Beijing Global Education & Technology Co., Ltd. (“Beijing GEDU”). Immediately after the acquisition of Beijing GEDU, the operating entity of Beijing GEDU became a subsidiary of Puxin Education. In essence, Puxin Limited was a variable interest entity whereas Puxin Education was the primary beneficiary and through which, Puxin Education acquired Beijing GEDU. Accordingly, Puxin Limited was a part of the consolidated Group where Puxin Education was the holding entity. In contemplating an IPO overseas, in February 2018, the Group undertook a reorganization. The holder of the equity interest with preferential feature of Puxin Education sold 5% of its holding to Mr. Yunlong Sha and transferred 3.6335% of the holding to a related party of the holder. Puxin Limited then issued an aggregate 52,082,120 ordinary shares to ordinary shareholders and an aggregate 11,917,880 of preferred Series A shares to preferred shareholders. In addition, preferential rights held by investors of Puxin Education were cancelled (“Recapitalization”). Consequently, Puxin Limited became the ultimate holding for the Group. Due to PRC legal restrictions on foreign ownership and investment in the education business in China, Puxin Limited, through Prepshine Holdings Co., Limited (“Prepshine HK”) and its PRC subsidiary, Purong (Beijing) Information Technology Co., Ltd. (“Purong Information” or “WFOE”), entered into a series of contractual arrangements with Puxin Education and its subsidiaries and schools (collectively, the “VIEs”), and the shareholders of Puxin Education. The series of contractual agreements include Exclusive Management Services and Business Cooperation Agreement, Exclusive Call Option Agreement, Equity Pledge Agreement, Powers of Attorney, Spousal Consent Letters and Letters of Commitment. The Group believes that these contractual arrangements would enable Puxin Limited to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, Puxin Limited is considered the primary beneficiary of the VIEs. The reorganization involves steps and entities all within the same consolidated group, and as a result, the accompanying consolidated financial statements have been prepared as if the current corporate structure has been in existence throughout the periods presented. The share and per share data relating to the ordinary shares issued by the Company are presented as if the reorganization occurred at the beginning of the first period presented. The VIE arrangements Puxin Limited, through Prepshine HK and its PRC subsidiary, Purong Information, entered into a series of contractual arrangements, on February 5, and as amended on February 25, 2018, with Puxin Education and its subsidiaries and schools, and the shareholders of Puxin Education. (i) Agreements that transfer economic benefits to the Group: Exclusive Management Services and Business Cooperation Agreement Pursuant to the exclusive management services and business cooperation agreement among Purong Information, the VIE and the shareholders of VIE, Purong Information has the exclusive right to provide or designate any third party to provide, among other things, education management consultancy services, permission of intellectual property rights, technological support and business support to the VIE and its subsidiaries. In exchange, the VIE and its subsidiaries pay service fees to Purong Information in an amount at Purong Information’s discretion. Without the prior written consent of Purong Information, the VIE and its subsidiaries cannot accept services provided by or establish similar cooperation relationship with any third party. Purong Information owns the exclusive intellectual property rights created as a result of the performance of this agreement unless otherwise provided by PRC laws or regulations. The agreement will remain effective unless unanimously agreed by the parties concerned or unilaterally terminated by Purong Information with a written notice. Unless otherwise required by applicable PRC laws, the VIE and its shareholders do not have any right to terminate the exclusive service agreement. Equity Pledge Agreement Under the equity interest pledge agreement among Purong Information, the VIE and its shareholders, the VIE’s shareholders pledged all of their equity of the VIE to Purong Information as security for performance of the obligations of the VIE and its shareholders under the exclusive call option agreement, the exclusive management services and business cooperation agreement, the powers of attorney and the loan agreement. If any of the specified events of default occurs, Purong Information may exercise the right to enforce the pledge immediately. Purong Information may transfer all or any of its rights and obligations under the equity pledge agreement to its designee(s) at any time. The equity pledge agreement is binding on the VIE’s shareholders and their successors. The equity pledge agreement will remain in effect until the fulfillment of all the obligations under the exclusive call option agreement, the exclusive management services and business cooperation agreement, the powers of attorney and the loan agreement. (ii) Agreements that provide the Company effective control over Puxin Education: Exclusive Call Option Agreement Under the exclusive call option agreement among Purong Information, the VIE and its shareholders, each of the shareholders of the VIE irrevocably granted Purong Information a right to purchase, or designate a third party to purchase, all or any part of their equity interests in the VIE at a purchase price equal to the lowest price permissible by the then-applicable PRC laws and regulations at Purong Information’s sole and absolute discretion to the extent permitted by PRC law. The shareholders of the VIE shall promptly give all considerations they received from the exercise of the options to Puxin Education, Purong Information or a designated third party of Purong Information. Without Purong Information’s prior written consent, the VIE and its shareholders shall not enter into any major contract or transfer any equity of the VIE. Without Purong Information’s prior written consent, the VIE and its shareholders shall not sell, transfer, license or otherwise dispose of any of the VIE’s assets or allow any encumbrance of any assets, except for the disposal or the encumbrances of the assets that are treated as necessary for their daily business operations with the value of the assets involved in a single transaction not exceeding RMB100. The VIE shall not be dissolved or liquidated without the written consent by Purong Information. This agreement shall remain in effect upon expiry or early termination of this agreement. Powers of Attorney Pursuant to the powers of attorney executed by the VIE and the VIE’s shareholders, each of them irrevocably authorized Purong Information to act on their respective behalf as exclusive agent and attorney, to the extent permitted by law, with respect to all rights of shareholders concerning all the equity interest and sponsor interest held by each of them in the VIE or its subsidiaries, including but not limited to proposing to convene or attend shareholder meetings, board meetings or council meetings, signing the resolutions and minutes of such meetings, exercising all the rights as shareholders or sponsors (including but not limited to voting rights, nomination rights, appointment rights, the right to receive dividends and the right to sell, transfer, pledge or dispose of all the equity or the sponsor interest held in part or in whole). Spousal Consent Letters Pursuant to the spousal consent letters executed by the spouses of certain shareholders of the VIE, the signing spouses confirm and agree to the execution of the exclusive call option agreement, the exclusive management services and business cooperation agreement, the powers of attorney and the equity pledge agreement described above by the applicable shareholders. They further undertake not to hinder the disposal of the equity and not to make any assertions in connection with the equity of the VIE held by the applicable shareholders, and confirm that the applicable shareholders can perform the relevant transaction documents described above and further amend or terminate such transaction documents without the authorization or consent from such spouse. The spouse of each applicable shareholder agrees and undertakes that if he/she obtains any equity of the VIE held by the applicable shareholders for any reasons, he/she would be bound by the transaction documents described above. Letters of Commitment Pursuant to the letters of commitment executed by the shareholders of Shanghai Trustbridge Investment Management Co., Ltd. (“Shanghai Trustbridge”) and the partners of Tianjin Puxian Education Technology LLP (“Puxian”) and Ningbo Meishan Bonded Port Area Zhimei Phase V Equity Investment Limited Partnership (“Ningbo Zhimei”), which are the shareholders of the VIE, all the shareholders of Shanghai Trustbridge and all the partners of Puxian and Ningbo Zhimei irrecoverably promise that they will not pledge, sell or dispose of the equity interest or the partnership interest in Shanghai Trustbridge, Puxian or Ningbo Zhimei held by them, respectively, grant a security interest or a priority right in such equity interest or partnership interest to any third party or enter into any transactions with the same economic results that may affect the priority of the equity pledge and the stable implementation of structural contracts, including the exclusive call option agreement, the exclusive management service and business cooperation agreement, the equity pledge agreement, the powers of attorney and the loan agreement. (iii) Risks in relation to VIE structure The Company believes that the contractual arrangements with Puxin Education and its shareholders are in compliance with existing PRC laws and regulations and are legally enforceable. However, the contractual arrangements are subject to risks and uncertainties, including: • Puxin Education and its shareholders may have or develop interests that conflict with the Group’s interests, which may lead them to pursue opportunities in violation of the aforementioned contractual agreements. If the Group cannot resolve any conflicts of interest or disputes between the Group and the shareholders of Puxin Education, the Group would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. • Puxin Education and its shareholders could fail to obtain the proper operating licenses or fail to comply with other regulatory requirements. As a result, the PRC government could impose fines, new requirements or other penalties on the VIE or the Group, mandate a change in ownership structure or operations for the VIE or the Group, restrict the VIE or the Group’s use of financing sources or otherwise restrict the VIE or the Group’s ability to conduct business. • The PRC government may declare the aforementioned contractual arrangements invalid. They may modify the relevant regulations, have a different interpretation of such regulations, or otherwise determine that the Group or the VIE have failed to comply with the legal obligations required to effectuate such contractual arrangements. • If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government may restrict or prohibit the Group’s business and operations in China. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Group may not be able to consolidate Puxin Education and its subsidiaries and schools in the consolidated financial statements as the Group may lose the ability to exert effective control over Puxin Education and its shareholders, and the Group may lose the ability to receive economic benefits from Puxin Education. The Group’s business has been directly operated by the VIE and its subsidiaries and schools. As of December 31, 2019 and 2020, the VIE and its subsidiaries and schools accounted for an aggregate of 75.8% and 70.7%, respectively, of the Group’s consolidated total assets, and 88.0% and 83.7% respectively of the Group’s consolidated total liabilities. The following financial information of the VIE and VIE’s subsidiaries and schools after the elimination of inter-company transactions and balances as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 was included in the accompanying consolidated financial statements: As of December 31, 2019 2020 RMB RMB Cash and cash equivalents 238,907 37,843 Prepaid expenses and other current assets 88,571 78,425 Total current assets 340,789 147,148 Total assets 3,569,949 3,264,946 Total current liabilities 3,035,344 2,762,722 Total liabilities 3,914,723 3,513,374 For the years ended 2018 2019 2020 RMB RMB RMB Net revenues 2,219,638 3,094,044 2,897,010 Net ( ) (254,754 ) (31,712 ) 149,378 Net cash (used in) generated from operating activities (81,041 ) 142,437 (49,168 ) Net cash used in investing activities (156,917 ) (219,186 ) (54,383 ) Net cash generated from (used in) financing activities 20,505 83,361 (82,301 ) There are no consolidated VIE’s assets that are collateral for the VIE’s obligations and which can only be used to settle the VIE’s obligations. No creditors (or beneficial interest holders) of the VIE have recourse to the general credit of the Company or any of its consolidated subsidiaries. No terms in any arrangements, considering both explicit arrangements and implicit variable interests, require the Company or its subsidiaries to provide financial support to the VIE. However, if the VIE ever needs financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to the VIE through loans to the shareholders of the VIE or entrustment loans to the VIE. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. Actual results may differ from those estimates. The Group bases its estimates on past experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s financial statements include, but are not limited to, valuation allowance for deferred tax assets, useful lives of property, plant and equipment and intangible assets, impairment assessment of long-lived assets and goodwill, valuation of share-based compensation and payments, purchase price allocation for business acquisition and valuation of ordinary shares, convertible notes, derivative liabilities and warrants. Actual results may differ materially from those estimates. Principles of consolidation The accompanying consolidated financial statements include the financial information of the Group. All intercompany balances and transactions have been eliminated. The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business is dependent on, among other things, the Group’s ability to generate sufficient cash flows from operations, and the Group’s ability to arrange adequate financing arrangements. The Group had recurring losses in the past three years and had working capital deficit as of December 31, 2020. Prior to the consideration of the management’s plans articulated below, these factors may raise substantial doubt about the Group’s ability to continue as a going concern for the foreseeable future. The Group obtained proceeds from financing activities in an aggregate amount of US D 89,000 from the issuance of convertible notes in February and March 2021 (Note 26) and, is n e gotia t RMB 200,000 from a third party in April 2021 (Note 26) which can be drawn down when necessary. Therefore, as of the date issuance of these financial statements, management is of the opinion that the Group will be able to satisfy its liabilities as they become due in the next twelve months, and accordingly, these consolidated financial statements are prepared on a going concern basis. Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, other receivables, loan receivables, other payables, amounts due to related parties, bank borrowings, loans payable to third parties, promissory notes and derivative liabilities. The carrying amounts of cash and cash equivalents, restricted cash, other receivables, loan receivables, other payables, amounts due to related parties and bank borrowings approximate their fair values due to short-term maturities. The carrying amount of loans payable to third parties approximates fair value as its interest rates are at the same level of current market yield for comparable debts. Convenience translation The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into USD using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets and the related consolidated statements of operations, comprehensive loss, change in equity and cash flows from RMB into USD as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.5250, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2020. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2020, or at any other rate. Cash and cash equivalents Cash and cash equivalents comprise cash at banks and on hand, which have original maturities of three months or less when purchased and are subject to an insignificant risk of changes in value. The carrying value of cash equivalents approximates market value. Restricted cash Restricted cash represents cash deposits in restricted bank accounts, required by local regulations for operating schools or pledged as collateral for bank borrowings. The deposits in restricted bank accounts cannot be withdrawn until these schools are closed or bank borrowings are fully repaid. Restricted cash is classified as either current or non-current Inventories Inventories, mainly consisting of textbooks, are stated at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. Loan receivables Loan receivables are measured at amortized cost with interest accrued based on the contract rate. The Group evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the life of loans on an individual basis based on the Group’s past experiences, the borrowers’ financial position, their financial performance and their ability to continue to generate sufficient cash flows. A valuation allowance will be established for the loans unable to collect. No valuation allowance has been recorded for the years ended December 31, 2018, 2019 and 2020 based on the result of the assessment. Property, plant and equipment, net Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Buildings 37 years Electronic equipment 3 years Motor vehicles 5 years Furniture and education equipment 5 years Leasehold improvement Shorter of lease term or Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant 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 assets and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statement of operations. Goodwill and intangible assets Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. Intangible assets with finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. Goodwill is not subject to amortization, but is tested for impairment on an annual basis at the end of the fourth quarter or whenever events or changes in circumstances indicate the carrying value of the reporting unit may be in excess of its fair value. As part of the annual goodwill impairment test, the Group first performs a qualitative assessment to determine whether further impairment testing is necessary. If the qualitative assessment above indicates that it is more likely than not that the fair value of the Group’s reporting unit is less than its carrying value, a quantitative impairment test shall be used to compare the fair value to the carrying value. An impairment charge is recorded if the carrying value exceeds the fair value. There was no impairment of goodwill recorded for the years ended December 31, 2018, 2019 and 2020, respectively. Acquired intangible assets other than goodwill consist of student base, definite trademark, relationship with partnership school and franchise agreements, which are carried at cost, less accumulated amortization and impairment. The amortization periods are as follows: Category Amortization periods Student base 2.2 - 7 years Trademark 5.4 Relationship with partnership school 6.4 years Franchise agreement 3.4 years The Group has determined that certain trademarks do not have determinable useful lives. Consequently, the carrying amounts of the trademarks are not amortized but are tested for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. Such impairment test consists of a comparison of the fair values of the trademarks with their carrying amounts and an impairment loss is recognized if and when the carrying amounts of the trademarks exceed their fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. Impairment of long-lived assets The Group’s long-lived assets consist primarily of intangible assets with definite lives, property, plant and equipment and operating lease right-of-use assets. The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. The Group did not record any impairment losses on its long-lived assets during the years ended December 31, 2018, 2019 and 2020. Revenue recognition On January 1, 2018, the Group adopted ASU No. 2014-09, Revenues are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration that the Group expects to receive in exchange for those goods or services. The following table presents the Group’s revenues disaggregated by revenue sources. The Group’s revenue is reported net of discounts, value added tax and surcharges. For the years ended 2018 2019 2020 RMB RMB RMB Services: K-12 817,843 1,103,607 1,153,658 K-12 364,554 553,654 580,533 K-12 — 286,593 472,082 Study-abroad test preparation services 860,687 941,537 553,647 Study-abroad consulting services 185,033 218,567 143,995 Total net revenues 2,228,117 3,103,958 2,903,915 The following is a description of principal activities from which the Group generates revenue and related revenue recognition policies. (i) K-12 The Group offers various types of after-school tutoring services to help students improve their academic performance and qualify for their desired schools and universities. The after-school tutoring services primarily consist of group class courses, personalized tutoring courses and full-time tutoring courses. The K-12 K-12 (ii) Study abroad tutoring services • Study-abroad test preparation services The Group offers study abroad test preparation services to help students prepare for admission tests for high schools, universities and graduate programs in other countries. Tutoring fees are collected in advance and are initially recorded as deferred revenue which is recognized proportionately as the tutoring sessions are delivered. Students are entitled to certain trial class of the purchased course and course fee is fully refundable if a student decides within the trial period not to take the remaining course. For some study-abroad test preparation courses, the Group also offers refunds for any remaining classes to students who withdraw from the course. The study-abroad test preparation services are accounted for as a single performance obligation. • Study-abroad consulting services The Group offers study abroad consulting services to provide quality advisory guidance for students who intend to study abroad. The Group charges each student an up-front Remaining performance obligation represents the transaction price under the contracts of study-abroad consulting services for which services have not been fully performed. As of December 31, 2020, the aggregate amount of the transaction price allocated for the remaining performance obligations was RMB . The Group expects to recognize revenue RMB and RMB on the remaining performance obligations over the next and months, respectively, with the remainder of RMB5,428 to be recognized thereafter The contract liability consists of deferred revenue and refund liability. Arrangements with multiple performance obligations The Group’s contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices based on the prices charged to customers. Practical expedients and exemptions The Group incurs sales commissions primarily for K-12 These costs are recorded within selling expenses. The Group does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Group recognizes revenue at the amount to which it has the right to invoice for services performed. Deferred revenue Deferred revenue primarily consists of tuition fees and consulting service fees received from customers for which the Group’s revenue recognition criteria have not been met. The deferred revenue will be recognized as revenue once the criteria for revenue recognition have been met. Value added taxes The Since May 2016, in accordance with Cai Shui [2016] No. 68, the nonacademic educational programs and services in short-term training schools are subject to a simple VAT collection method and apply for a 3% VAT rate. Therefore, the Group’s nonacademic educational programs and services in short-term training schools which were previously subject to business tax are now subject to VAT. Since January 2020, in accordance with Cai Shui [2020] No.8, due to the COVID-19 pandemic, the VAT on certain services was temporarily exempted for the calendar year 2020. For the year ended December 31, 2020, VAT exemption of RMB86,212 was recognized as other income in the Group’s consolidated statements of operations. Leases The Group adopted Topic 842 on January 1, 2019 using the modified retrospective transition approach allowed under ASU 2018-11, o and right-of-use assets measures right-of-use assets Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not more-likely-than-not Share-based compensation The Group measures the cost of employee share options based on the grant date fair value of the award and recognizes compensation cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options, the Group recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, the cost of the award is expensed on the grant date. The Group elects to recognize forfeitures when they occur. Comprehensive loss Comprehensive loss includes net loss and foreign currency translation adjustments. Comprehensive loss is reported in the consolidated statements of comprehensive loss. Net loss per share Net loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of common shares outstanding during the period. Diluted net loss per share is based upon the weighted average number of common shares and of common share equivalents outstanding when dilutive. Common share equivalents include: (i) outstanding stock options under the Company’s share incentive plan which are included under the treasury share method when dilutive, (ii) common shares to be issued under the assumed conversion of the Company’s outstanding convertible notes, which are included under the if-converted if-converted The Group’s convertible redeemable participating preferred shares are participating securities as they participate in undistributed earnings on an as-if-converted two-class The computation of diluted net loss per share for the years ended December 31, 2018, 2019 and 2020 does not include common share equivalents, since such inclusion would be anti-dilutive. Contingency The Group is subject to lawsuits, investigations and other claims related to the operation of its schools. The Group is required to assess the likelihood of any adverse judgments or outcomes to these matters, as well as potential ranges of probable losses and fees. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence Significant risks and uncertainties Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies, international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents and restricted cash denominated in RMB amounted Concentration of credit risk Financial instruments that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents and prepayment and other current assets. As of December 31, 2019 and 2020, substantially all of the Group’s cash and cash equivalents were deposited in financial institutions located in the PRC. Recent accounting pronouncements not yet adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing the following exceptions:1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; 2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; 3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and 4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments also simplify the accounting for income taxes by doing: 1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; 2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; 3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority; 4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date; and 5) making minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Group is currently assessing the impact of adopting this ASU, but based on a preliminary assessment, does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which focuses on amending the legacy guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity. ASU 2020-06 simplifies an issuer’s accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. Further, ASU 2020-06 enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share (EPS) guidance, i.e., aligning the diluted EPS calculation for convertible instruments by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in the diluted EPS calculation when an instrument may be settled in cash or shares, adding information about events or conditions that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed. This update will be effective for the Group's fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the new guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Group is currently in the process of evaluating the impact of adopting ASU 2020-06 on its consolidated financial statements and related disclosure. Newly adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This ASU affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). In April 25, 2019, ASU 2016-13 was updated with ASU 2019-04, which clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments. ASU 2019-04 provides certain alternatives for the measurement of the allowance for credit losses (ACL) on accrued interest receivable (AIR). These measurement alternatives include (1) measuring an ACL on AIR separately, (2) electing to provide separate disclosure of the AIR component of amortized cost as a practical expedient, and (3) making accounting policy elections to simplify certain aspects of the presentation and measurement of such AIR. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-04 related to ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, and interim periods therein. An entity may early adopt ASU 2019-04 in any interim period after its issuance if the entity has adopted ASU 2016-13. The Group adopted Topic 326 on January 1, 2020 using the modified retrospective approach and the adoption did not have a material impact on the Group’s consolidated financial statements. In January 2017, FASB issued ASU 2017-04: Simplifying the Test for Goodwill Impairment. Under the new accounting guidance, an entity will no longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity will perform its goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value but not to exceed the total amount of the goodwill of the reporting unit. In addition, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment, if applicable. The provisions of the new accounting guidance are required to be applied prospectively. The new accounting guidance is effective for the Company for goodwill impairment tests performed in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests performed after January 1, 2017. The Group adopted this ASU on January 1, 2020 and the adoption had no impact on the Group’s consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to the Related Party Guidance for Variable Interest Entities. ASU 2018-17 changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportional basis, rather than in their entirety. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Group adopted Topic 810 on January 1, 2020 the adoption had no impact on the Group’s consolidated financial statements. |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Acquisition | 3. BUSINESS ACQUISITION Acquisition of Shandong Zengyu Trading Co., Ltd (“Shandong Zengyu”) On November 1, 2018, the Group acquired 100% equity interests in Shandong Zengyu. The total consideration for the acquisition of Shandong Zengyu amounted to RMB77,000 in cash. Shandong Zengyu operates K-12 This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Prepaid expenses and other current assets 37,169 Property, plant and equipment, net 1,241 3-5 Rental deposits 290 Accrued expenses and other current liabilities (2,219 ) Deferred revenue (35,534 ) Intangible assets-student base 6,700 2.2 Deferred tax liabilities (1,675 ) Goodwill 71,028 Total 77,000 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the economy of scale, increase in cross-selling opportunities as well as synergy resulting from the acquisition. Other acquisitions in 2018 In 2018, the Group acquired 100% equity interest in Jinan Lixia Wise Tutoring School Ltd and acquired tutoring business from third parties (collectively “Other 2018 Acquirees”). The total consideration for the acquisitions of Other 2018 Acquirees amounted to RMB19,986 which included RMB19,266 in cash and the rest was in the form of warrant. The warrant was issued by Long belief Limited, a shareholder of the Company, to purchase 49,348 ordinary shares of the Company. Long belief Limited is a shareholding platform for acquisitions. Refer to Note 18 These acquired entities are in the operation of K-12 These transactions were considered business acquisitions and therefore were recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisitions. The purchase price for the acquisition was allocated as follows: Amount Amortization period RMB Cash and cash equivalents 54 Prepaid expenses and other current assets 8,504 Restricted cash 200 Accrued expenses and other current liabilities (769 ) Deferred revenue (8,704 ) Intangible assets-student base 1,100 3.5 Deferred tax liabilities (275 ) Goodwill 19,876 Total 19,986 The tangible and intangible assets valuation for the acquisitions disclosed above was based on valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from these acquisitions. Acquisition of Beijing Xiaoze Education Technology Co., Ltd. (“Beijing Xiaoze”) On July 1, 2019, the Group acquired 100% equity interests in Beijing Xiaoze. The total consideration for the acquisition of Beijing Xiaoze amounted to RMB170,000 in cash. Beijing Xiaoze operates K-12 This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Cash and cash equivalents 20,057 Inventories 1,508 Prepaid expenses and other current assets 52,596 Property, plant and equipment, net 205 3-5 Operating lease right-of-use 63,652 Accrued expenses and other current liabilities (1,392 ) Deferred revenue (108,406 ) Operating lease liabilities (58,621 ) Intangible assets - trademark 43,700 Indefinite Deferred tax liabilities (10,925 ) Goodwill 167,626 Total 170,000 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the economy of scale, increase in cross-selling opportunities as well as synergy resulting from the acquisition. Acquisition of Xi’an Intest Management Consulting Co., Ltd. (“Xi’an Intest”) On July 9, 2019, the Group acquired 100% equity interests in Xi’an Intest. The total consideration for the acquisition of Xi’an Intest amounted to RMB113,000 in cash. Xi’an Intest operates K-12 This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Cash and cash equivalents 22,245 Prepaid expenses and other current assets 47 Rental deposits 464 Property, plant and equipment, net 2,074 3-5 years Operating lease right-of-use 45,269 Accrued expenses and other current liabilities (6,072 ) Deferred revenue (45,581 ) Operating lease liabilities (41,469 ) Intangible assets - student base 15,700 3.5 years Deferred tax liabilities (3,925 ) Goodwill 124,248 Total 113,000 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the economy of scale, increase in cross-selling opportunities as well as synergy resulting from the acquisition. Acquisition of Dalian Keyuan Culture Consulting Co., Ltd. (“Dalian Keyuan”) On November 29, 2019, the Group acquired 100% equity interests in Dalian Keyuan. The total consideration for the acquisition of Dalian Keyuan amounted to RMB171,950 in cash. Dalian Keyuan operates K-12 This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Cash and cash equivalents 8,223 Prepaid expenses and other current assets 64,330 Rental deposits 931 Property, plant and equipment, net 1,204 3-5 Operating lease right-of-use 37,780 Accrued expenses and other current liabilities (6,280 ) Deferred revenue (67,415 ) Bank borrowing (4,500 ) Operating lease liabilities (32,333 ) Intangible assets - student base 12,600 4.1 Deferred tax liabilities (3,150 ) Goodwill 160,560 Total 171,950 The tangible and intangible assets valuation for the acquisition disclosed above was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the economy of scale, increase in cross-selling opportunities as well as synergy resulting from the acquisition. Other acquisitions in 2019 In 2019, the Group acquired 100% equity interests of ten companies and schools from third parties (collectively “Other 2019 Acquirees”). The total consideration for the acquisitions of Other 2019 Acquirees amounted to RMB342,957 in cash. These acquired entities are in the operation of K-12 These transactions were considered business acquisitions and therefore were recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisitions. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Cash and cash equivalents 14,329 Prepaid expenses and other current assets 105,367 Rental deposits 1,155 Restricted cash 1,951 Property, plant and equipment, net 1,990 3-5 Operating lease right-of-use 69,970 Accrued expenses and other current liabilities (6,595 ) Deferred revenue (148,484 ) Operating lease liabilities (62,772 ) Intangible assets - student base 8,500 2.6-3.6 years Deferred tax liabilities (2,125 ) Goodwill 359,671 Total 342,957 The tangible and intangible assets valuation for the acquisitions disclosed above was based on valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from these acquisitions. Acquisition of Zhengzhou Youshili Education Consulting Co., Ltd (“Zhengzhou Youshili”) On December 1, 2020, the Group acquired equity interests in Zhengzhou Youshili at consideration in cash amounted to RMB . Zhengzhou Youshili operates K-12 tutoring services in the PRC. The acquisition of Zhengzhou Youshili’s training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Cash and cash equivalents 1,420 Inventories 168 Prepaid expenses and other current assets 33,683 Rental deposits 558 Property, plant and equipment, net 52 3-5 years Operating lease right-of-use assets 23,413 Accrued expenses and other current liabilities (655 ) Deferred revenue (36,682 ) Operating lease liabilities (21,925 ) Intangible assets - student base 3,600 4.1 years Deferred tax liabilities (900 ) Goodwill 47,574 Total 50,306 The tangible and intangible assets valuation for the acquisition disclosed above was based on valuation analysis prepared by the management with the assistance from an independent third-party appraiser. The valuation analysis utilizes and considers generally accepted valuation methodologies such as the income, market and cost approach. The Company has incorporated certain assumptions which include projected replacement costs. The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the economy of scale, increase in cross-selling opportunities as well as synergy resulting from the acquisition. The following information summarizes the results of operations attributable to the acquisitions included in the Group’s consolidated statement of operations since the acquisition date: For the year ended Shandong Others RMB RMB Net revenues 8,074 4,495 Net (loss) (1,362 ) (27 ) For the year ended Beijing Xiaoze Xi’an Intest Dalian Keyuan Others RMB RMB RMB RMB Net revenues 116,355 61,194 11,697 174,149 Net income (loss) 11,300 (1,740 ) 758 33,460 For the year ended Zhengzhou Youshili RMB Net revenues 5,800 Net income 249 Pro forma information of acquisitions The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2017 and 2018 assuming that the acquisitions of Shandong Zengyu and Other 2018 Acquirees which were completed in 2018 occurred as of January 1, 2017. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the years ended 2017 2018 RMB RMB Unaudited Unaudited pro forma net revenues 1,392,146 2,317,937 pro forma net (loss) (389,366 ) (824,909 ) The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2018 and 2019 assuming that the acquisitions of Beijing Xiaoze, Xi’an Intest, Dalian Keyuan and Other 2019 Acquirees which were completed in 2019 occurred as of January 1, 2018. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the years ended 2018 2019 RMB RMB Unaudited Unaudited pro forma net revenues 2,928,589 3,481,809 pro forma net (loss) (836,874 ) (516,704 ) The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2019 and 2020 assuming that the acquisition of Zhengzhou Youshili which was For the years ended 2019 2020 RMB RMB Unaudited Unaudited pro forma net revenues 3,185,922 2,970,758 pro forma net (loss) (520,417 ) (37,745 ) |
Disposal of Subsidiaries
Disposal of Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Gain on Sale of Subsidiaries | 4. DISPOSAL OF SUBSIDIARIES In December 2020, the Group sold equity interest in Tianjin Puxin Online School Education Technology Co., Ltd. (“Puxin Online School”) to a third party for cash consideration of had been received in December 2020. As of the disposal date, Puxin Online School had accumulated deficit resulting in the Group deriving a gain from the deconsolidation. The Group recognized disposal gain of in the consolidated statements of operations for the year ended December 31, 2020. The disposal of Puxin Online School did not represent a strategic shift and did not have a major effect on the Group’s operation. In April 2020, the Group disposed certain other insignificant subsidiaries and schools in Guangzhou, Shenyang and Hangzhou. The total cash consideration for the disposal of these subsidiaries and schools was As of the disposal date, these subsidiaries and schools had accumulated deficit resulting in the Group deriving a gain from the deconsolidation, which totalled and was recorded in the consolidated statements of operations for the year ended December 31, 2020. According to the disposal agreements, for the consideration of RMB8,000 together with the amounts due from the disposed subsidiaries and schools amounting to (collectively the “Settlement Amount”), shall be paid in 2021, within 24 months, and 30% within months. Therefore, of the Settlement Amount was recorded in prepaid expenses and other current assets, and of the Settlement Amount was recorded in other non-current assets of the consolidated balance sheets as of December 31, 2020. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of December 31, 2019 2020 RMB RMB Prepaid service fees 68,913 55,683 Staff advances 20,067 17,430 Interest receivable 17,052 48,513 Receivable from disposal of — 8,470 Others 11,116 11,798 117,148 141,894 |
Loan Receivables
Loan Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Loan Receivables | 6. LOAN RECEIVABLE S In September non-for-profit In February the Group and AHA amended the agreement where the maturity date of the loans to AHA was extended to . During the year ended December 31, 2020, the Group loaned an additional to AHA with the same interest rate and maturity date. The loans are secured by AHA’s real estate property located in North Carolina, the United States In April 2020, the Group also entered into a loan agreement amounted to RMB15,670 with a third party. The annual interest rate was 4.75% and the term of the loan was 12 months. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | 7. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following: As of December 31, 2019 2020 RMB RMB Buildings 87,792 87,792 Electronic equipment 87,658 91,524 Motor vehicles 9,149 8,111 Furniture and education equipment 46,132 48,173 Leasehold improvement 239,148 248,724 Total 469,879 484,324 Less: Accumulated depreciation (171,160 ) (219,295 ) 298,719 265,029 Depreciation expenses were RMB57,696, RMB77,859 and RMB80,290 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. INTANGIBLE ASSETS Intangible assets consisted of the following: As of December 31, 2019 2020 RMB RMB Student base 140,409 127,155 Trademark 216,100 216,100 Relationship with partnership school 5,300 5,300 Franchise agreement 4,400 4,400 Total 366,209 352,955 Less: Accumulated amortization (101,669 ) (123,685 ) Accumulated impairment loss — (4,100 ) 264,540 225,170 Amortization expenses were RMB32,749, RMB34,938 and RMB34,266 for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, the Group expects to record amortization expenses related to intangible assets RMB21,359, RMB18,160, RMB4,804, RMB1,074 and RMB138 for the years ended December 31, 2021, 2022, 2023, 2024, 2025, respectively, and RMB 35 thereafter. During the year ended December 31, 2020, the Group recognized an impairment loss of on acquired intangible assets - trademark. The impairment was driven mainly by changes in forecast projections including a lower growth rate in revenues due to the COVID-19 outbreak. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. GOODWILL The Group has two reporting units that carry goodwill. The changes in carrying amount of goodwill for the years ended December 31, 2019 and 2020 were as follows: As of December 31, 2019 2020 RMB RMB Costs: Beginning balance 1,243,817 2,055,922 Acquisition of subsidiaries and schools 812,105 47,574 Disposal of subsidiaries and schools — (20,345 ) Ending balance 2,055,922 2,083,151 Goodwill — — Goodwill, net 2,055,922 2,083,151 The Company performed goodwill impairment analysis as of December 31, 2020. When determining the fair value of reporting units, including K-12 Based on the Company’s assessment as of December 31, 2020, the fair value of K-12 2018, 2019 and 2020. As disclosed in Note 4, the Group disposed certain insignificant subsidiaries and schools, a portion of goodwill associated with the disposed subsidiaries and schools was included in the carrying amount of the disposed subsidiaries and schools in determining the gain on disposal. The amount of goodwill included in that carrying amount was based on the relative fair values of the business that was disposed of and the portion of the reporting unit that was retained. |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The components of accrued expenses and other current liabilities were as follows: As of December 31, 2019 2020 RMB RMB Consideration payable in connection with business acquisitions 376,187 191,431 Salary and welfare payable 335,024 258,635 Refund liabilities (Note a) 137,510 147,093 Accrued expenses 61,962 129,900 Other tax payable 25,060 12,531 Interest payable 20,342 23,530 Payables for purchase of property, plant and equipment 16,113 8,759 Others 11,517 13,015 983,715 784,894 Note a: Refund liabilities represented estimated amounts of service fee collected that may be subject to refund to the customers related to K-12 tutoring services and study abroad tutoring services. |
Bank Borrowings
Bank Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Bank Borrowings | 11. BANK BORROWINGS In April 2019 term of the bank borrowing was In 2019, Puxin Education entered into a series of borrowing agreements amounted to RMB408,600 with Shanghai Pudong Development Bank (“SPD Bank”). The and the terms of the bank borrowings were 6-12 were repaid at the maturity date. As of December 31, 2020, the remaining amount, at RMB314,100 , was fully repaid at the maturity date. In 2020, Puxin Education entered into a series of borrowing agreements amounted to RMB660,000 with SPD Bank. The annual interest rate ranged from 4.27% to 5.22% and the terms of the bank borrowings were 12 months. Deposits amounted to USD78,850 (equivalent to RMB514,496), which were recorded in the current portion of restricted cash, were pledged as collateral for the borrowings amounted to RMB500,000. The buildings of Beijing GEDU were mortgaged as collateral for the borrowings amounted to RMB 160,000 As of December 31, 2020, 80,000 of the bank borrowings was repaid at the maturity date. In March 2020, Beijing Haidian Puxin Training School entered into a bank borrowing agreement amounted to RMB 5,000 4.05 12 is the In June 2020, Nanjing Innovation School entered into a bank borrowing agreement amounted to RMB 10,000 4.35 6 is the For the years ended December 31, 2018, RMB1,148, , respectively. |
Loans Payable to Third Parties
Loans Payable to Third Parties | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Loans Payable to Third Parties | 12. LOANS PAYABLE TO THIRD PARTIES In 2019, Puxin Education issued secured de b . The and the term s debts w ere . Puxin Culture and Arts Co., Ltd (“Taiyuan Puxin Arts”), Shanghai Global Career Education & Technology Holdings Limited (“Shanghai GEDU”), Mr. Yunlong Sha and Ms. Wenjing Song were joint guarantors under the agreements, 100% equity interests of a certain subsidiary and tuition collection rights of certain schools were pledged for the secured debts debts were repaid at maturity date as of December 31, 2019 and the remaining amount, at , was fully repaid as of December 31, 2020. The Group s Loans amounted to RMB42,052 were repaid at maturity date as of December 31, 2020. The maturity date of loans amounted to and were extended to May 2021 and June 2022, according to each of respective amendment agreements. In 2020, Puxin Education issued secured debts under the directed financing schemes and registered with competent financial asset exchanges in PRC. The annual interest rate ranged from and the term s debts were months. Shanghai GEDU, Mr. Yunlong Sha and Ms. Wenjing Song are joint guarantors under the agreements, and tuition collection rights of certain schools were pledged for the secured debts debts were repaid at maturity date as of December 31, 2020. The Group entered into other six loan agreements in a total amount of RMB220,046 with a group of lenders in 2020. The annual interest rate ranged from nil to 15% and the terms of the loans ranged from to 36 months. Mr. Yunlong Sha is guarantor under the loan agreements, and 70% equity interests of a subsidiary was pledged for one of the loans. One loan agreement defines events of default including, but not limited to, the entry of one or more judgments against Prepshine HK or Mr. Yunlong Sha (the “Borrowers”) by any court, tribunal, arbitration, or any other legal proceeding calling for the payment by any Borrower of more than USD10,000 in the aggregate. Loans amounted to RMB were repaid at maturity date as of December 31, 2020. For the years ended December 31, 2018, RMB2,433 , , respectively. |
Convertible Notes
Convertible Notes | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 13. CONVERTIBLE NOTES Notes issued to Huazhong In June 2017, Puxin Education and Mr. Yunlong Sha entered into a convertible note investment agreement with Jiangyin Huazhong Investment Management Co., Ltd. (“Huazhong”). Pursuant to this agreement, Huazhong provides a credit facility in an amount up to RMB to Puxin Education and has the right to elect to convert the unpaid and outstanding amount under the credit facility into ordinary shares of Puxin Limited upon its initial public offering. The conversion price per ordinary share will be equal to %, % and % of the public offering price of the ordinary shares if the public offering application is submitted before or by December 31, 2018, between January 1 and December 31, 2019, or between January 1 and December 31, 2020, respectively. If IPO fails to occur before or by December 31, 2020, the note could be converted to shares. In July 2017, November 2017 and February 2018, Puxin Education had drawn down a principal amount totaled at RMB under the credit facility. The note bears a simple annual interest rate of % and has a maturity term of months since the date the issuer received the first proceed and can be extended for another months. Pursuant to the agreement, Puxin Education committed to guarantee Huazhong an Internal Rate of Return (“IRR”) of no less than % per annual if Huazhong chooses to withdraw earlier or by the of investment. Puxin Education is obligated to pay the compensation amount equals to the shortfall to Huazhong. However, if for 20 consecutive trading days, the weighted average trading price provides Huazhong an IRR of above %, Puxin Education is no longer liable for the compensation. In the event of (1) certain misconduct by the Company, (2) the Company establishes the planned VIE structure in contemplating a IPO overseas and the Huazhong decided not to convert the note into the shares of the Company, or (3) the total net profits in aggregation of the Company from 2017 to 2019 is less than RMB , Huazhong has the option to demand Puxin Education to redeem the note at a price equal to the principal amount plus any accrued unpaid interest at a rate of % per annum. The fair value option was elected for the convertible note . In February 2018, the Company entered into an amendment agreement with Huazhong, Mr. Yunlong Sha, Puxin Education and China Central International Asset Management Co., Ltd. (“China Central International”, Huazhong’s related party company). Pursuant to the amendment agreement, Huazhong waived its conversion rights to the note, in return, the Company issued warrants to China Central International, with the total exercise amount equal to the convertible note of RMB190,000 issued by Puxin Education to Huazhong. The exercise price of warrants is the same as the conversion price stipulated in the original convertible note agreement. These warrants shall be exercisable (i) from the completion of an IPO and the expiration of three months lock-up The amendment of the convertible note to Huazhong was accounted for as an extinguishment of the original convertible note, and issuance of a new note and warrants. With the assistance from an independent third party appraiser, as of the amendment date, the fair value of the original convertible note, the new note and the warrants were RMB207,300, RMB193,400 and RMB14,800, respectively. A loss of RMB900 was recorded in the consolidated statements of operations for the year ended December 31, 2018, which was measured as the difference between the reacquisition price of convertible notes (represented by the fair value of the new note and the warrants) and the carrying amount of the extinguished convertible note. Loss on changes in the convertible note’s fair value of RMB7,100 from January 1, 2018 to the amendment date were recorded in the consolidated statements of operations for the year ended December 31, 2018. Pursuant to the warrants agreement, up until the th The warrants were recorded as a liability at fair value on issuance date, and subsequently marked to market at each reporting period end. As of December 31, 2018, the fair value of the warrants were RMB nil. Gain on changes in fair value of RMB14,800 were recorded in the consolidated statements of operations for the year ended December 31, 2018. No warrants were exercised or expired for the year ended December 31, 2018. As described in Note 14 Notes issued to Haitong On August 4, 2017, Puxin Limited issued convertible note at the principle amount of USD25,000 (equivalent to RMB168,180) to Haitong International Investment Holdings Limited (“Haitong”). The note has a maturity term of 5 years since the date of the note. The convertible note bears a compound interest rate of 12% per annum. If the Company’s IPO occurs before or by June 30, 2019, the convertible note will be automatically converted into Puxin Limited ordinary shares upon completion of the IPO. The conversion price per ordinary share will be equal to 70%, 65% or 60% of the offering price of the ordinary shares if the IPO is completed before or by December 31, 2018, between January 1 and March 31, 2019, or between April 1 and June 30, 2019, respectively. If IPO fails to occur before or by June 30, 2019, the convertible note will be automatically converted into redeemable and convertible preferred shares on July 1, 2019 except that Haitong notifies the Company of its decision to choose repayment in cash for the principal and accrued interest at least 5 business days prior to June 30, 2019. If the Company contemplates a change-in-control Upon the completion of the Company’s IPO, the convertible notes issued to Haitong automatically converted into 4,201,681 ordinary shares at the conversion price of USD5.95, which equal to 70% of the IPO price of the ordinary shares. Loss on changes in fair value of USD6,714 (equivalent to RMB42,792), USD nil and USD 20 1 Notes issued to CICC On September 29, 2017, Puxin Limited issued convertible note at the principle amount of USD23,000 (equivalent to RMB153,026) to CICC ALPHA Eagle Investment Limited (“CICC ALPHA”). The note bears a simple annual interest rate of 15% and has a maturity term of 4 years since the date of the note. If the Company’s IPO occurs before or by June 30, 2020, CICC ALPHA has the right to convert all or any part of the outstanding principal amount into ordinary shares upon completion of the IPO. The conversion price per ordinary share will be equal to 70% or 55% of the public offering price of the ordinary shares if the Company’s IPO is completed before or by June 30, 2019 or between July 1, 2019 and June 30, 2020, respectively. The portion of the outstanding principal amount that CICC ALPHA elects not to be converted into the Company’s ordinary share will be redeemed and repurchased by the Company on the completion of the IPO at a redemption price calculated based on a compound interest rate of 15% per annum. If IPO fails to occur before or by June 30, 2020, CICC ALPHA has the right to convert all or any part of the outstanding amount into preferred shares. In the event of default, CICC ALPHA may request the Company to immediately redeem the convertible note. Pursuant to the agreement, if after IPO, the IRR of the notes holder upon exit is below 25%, the founder Mr. Yunlong Sha Upon the completion of the Company’s IPO, CICC ALPHA exercised its conversion right. The convertible notes issued to CICC ALPHA has been converted into 3,865,547 ordinary shares at the conversion price of USD5.95 which equal to 70% of the IPO price of the ordinary shares. The convertible note consideration received were allocated between the convertible notes and two derivatives using the residual value method. In 2020, CICC ALPHA and Mr. Yunlong Sha, the founder, settled the shortfall under the Floor Return obligation where the founder paid ordinary shares of the Company and relieved the Company’s derivative liabilities. The Company recorded the extinguishment of the derivative liabilities as capital contribution from the founder. As of December 31, 2018 , and 2020, ), and USD nil, Loss on c , and USD2,939 (equi valent to RMB20,91 7 ) , and 202 0. Loss on changes , USD nil and US D , and 2020, respectively. As part of the agreements with the noteholders, the Company and Puxin Education pledged certain equity interest of themselves and its subsidiaries of the Group as described in Note 2 3 |
Promissory Notes
Promissory Notes | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Promissory Notes | 14. PROMISSORY NOTES On August 4, 2017, the Company issued promissory note at the principle amount of USD25,000 (equivalent to RMB168,180) to Haitong. The note bears a simple annual interest rate of 8% and has a maturity term of 2 years from the date of issuance. In 2019, the Company entered into an amendment agreement with Haitong, the maturity date for half of the principal amounted to USD12,500 (equivalent to RMB87,023) shall be extended to August 4, 2020, the third anniversary of the issuance date of the original promissory note, and the maturity date for the other half of the principal amounted to USD12,500 (equivalent to RMB87,022) shall be extended to August 4, 2021, the fourth anniversary of the issuance date of the original promissory note. In 2020, the Company amended the agreement with Haitong, under which the maturity date for first half of the principal amounted to USD12,500 (equivalent to RMB 87,023 The note bears a simple annual interest rate of 10% for the extension period of the original promissory note. As disclosed in Note 1 3 For the years ended December 31, 2018 , 2019 20 , and RMB17,308 for the notes, respectively. The carrying value of promissory notes approximate its fair value, as interest rate approximates market rate. The fair value of promissory notes was determined as present value of the notes using market interest rate. The promissory notes was categorized in Level 2 of the fair value hierarchy. As part of the agreements with the noteholders, the Company and Puxin Education pledged certain equity interest of themselves and its subsidiaries of the Group as described in Note 2 3 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 1 5 FAIR VALUE MEASUREMENT Measured or disclosed at fair value on a recurring basis The Group measured its financial assets and liabilities, including cash and cash equivalents, restricted cash, other receivables, loan receivable s The key assumptions used in valuation of derivative liabilities are summarized in the table below: For the years ended 2019 2020 Exit period 2019/12/31 2019/12/31 –2020/12/31 –2020/6/30 Volatility 77 % 92 % Measured or disclosed at fair value on a recurring basis Fair Value Measurement as of December 31, 2019 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total RMB RMB RMB RMB Cash and cash equivalents 256,763 — — 256,763 Restricted cash 386,267 — — 386,267 Promissory notes — 174,045 — 174,045 Derivative liabilities — — 172,235 172,235 Total 643,030 174,045 172,235 989,310 Fair Value Measurement as of December 31, 2020 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total RMB RMB RMB Cash and cash equivalents 48,497 — 48,497 Restricted cash 540,310 — 540,310 Promissory notes — 163,125 163,125 Total 588,807 163,125 751,932 The following is a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2018, 2019 and 2020: Derivative RMB Balance as of January 1, 2019 63,942 Changes in fair value 104,589 Exchange rate effect 3,704 Balance as of December 31, 2019 172,235 Changes in fair value 20,917 Extinguishment of derivative liabilities (194,265 ) Exchange rate effect 1,113 Balance as of December 31, 2020 — Measured or disclosed at fair value on a non-recurring The Group measures goodwill at fair value on a nonrecurring basis when it is annually evaluated or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group measures purchase price allocation at fair value on a nonrecurring basis as of the acquisition dates. The Group measures long-lived assets at fair value on a nonrecurring basis whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable as a result of the impairment assessments, the Group would recognize an impairment loss based on the fair value of the assets. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 1 6 SHARE-BASED COMPENSATION In December 2014, Puxin Education approved the 2014 Great Talent Share Incentive Plan (“2014 Great Talent Plan”) which provides for the grant of options to eligible employees of the Group. Under 2014 Great Talent Plan, the maximum aggregate number of units of equity interest of Puxin Education that may be issued shall not exceed 158,400,000. The term of the option shall not exceed 7 years from the date of the grant. The options will vest in accordance with the vesting schedules set out in the respective share option agreements with vesting period ranged from 0 to 5 years. In conjunction with the reorganization, as disclosed in Note 1, the Company adopted the 2018 Great Talent Share Incentive Plan (“2018 Great Talent Plan”), which was approved by the board of directors of the Company to replace the 2014 Great Talent Plan. To facilitate the share incentive plan, the Company established an employee shareholding platform (the “Share Holding Platform”). The purpose of the Share Holding Platform is to allow employees of the Group to receive vehicle share incentives. Long favor Limited (“Long favor”), a British Virgin Islands company was established as a holding vehicle for the Group’s Share Holding Platform. Mr. Yun Xiao, a shareholder of the Company serves as the sole shareholder of the Share Holding Platform. Long favor has no activities other than administrating the plan and does not have any employees. On behalf of the Group and subject to approval of board of director of the Company, Mr. Yun Xiao, as the sole shareholder of Long favor, has the authority and responsibility to process the eligible participants to whom awards will be granted, number of shares, terms and conditions of such awards. All shares held by the Share Holding Platform are solely for purpose of future issuance of share incentive options to employees once they exercise, and have been treated as treasury shares in the consolidated financial statements. The terms of the 2018 Great Talent Plan are substantially the same as those under the 2014 Great Talent Plan, except that the number of options and exercise price were adjusted on a diluted basis in accordance to the shares number of the Company upon the reorganization. As a result, none of the options terms were modified. In February 2018, the Company approved the 2018 Grand Talent Share Incentive Plan (“2018 Grand Talent Plan”) which provides for the grant of options to eligible employees of the Group. Under 2018 Grand Talent Plan, the maximum aggregate number of shares that may be issued shall not exceed 16,400,000. In March 2018, the Company granted 16,400,000 options under the 2018 Grand Talent Plan for an exercise price of USD7.78 (RMB48.78). The term of the option is fixed and shall not exceed 10 years from the date of the grant. The options will vest in accordance with the vesting schedules set out in the respective share option agreements with vesting period ranged from 0 to 6 years. In March 2019, the Company approved the 2019 Noble Talent Share Incentive Plan (“2019 Noble Talent Plan”) which provides for the grant of options to eligible employees of the Group. Under 2019 Noble Talent Plan, the maximum aggregate number of shares that may be issued shall not exceed 8,879,986. In March 2019, the Company granted 8,879,986 options under the 2019 Noble Talent Plan for an exercise price of US D The Company determined the estimated fair value of the options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm, with the following assumptions used in the years ended December 31, 2018 and 2019. The Company did not grant options in the year ended December 31, 2020 . For the years ended Grant date 2018 2019 Risk-free interest rate 3.40 % 2.51 % Volatility 46 % 55 % Dividend yield — — Exercise multiples 2.2-2.8 2.8 Life of options 7.0 7.0 Fair value of underlying ordinary shares 49.67 20.57 (1) Risk-free interest rate Risk-free interest rate was estimated based on the daily treasury long term rate of the U.S. Treasury Department with a maturity period close to the expected term of the options, plus the country default spread of China. (2) Volatility The volatility of the underlying ordinary shares during the lives of the options was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the options. (3) Dividend yield The dividend yield was estimated by the Group based on its expected dividend policy over the expected term of the options. (4) Exercise multiples Exercise multiple represents the value of the underlying share as a multiple of exercise price of the option which, if achieved, results in exercise of the option. (5) Life of options Life of options is extracted from option agreements. (6) Fair value of underlying ordinary shares Prior to the completion of initial public offering, the estimated fair value of the ordinary shares underlying the options as of the respective grant dates was determined based on a valuation with the assistance of a third party appraiser. The fair value of the underlying ordinary shares is determined based on the closing market price of the share after the completion of initial public offering in June 2018. The activity in stock options as of December 31, 2020 and changes during the year then ended is presented below: Outstanding options Number of Weighted Weighted average Aggregate Options outstanding at January 1, 2020 21,646,232 37.78 4.77 123,239 Granted — — Exercised 428,182 3.42 Forfeited 1,317,461 40.53 Options outstanding at December 31, 2020 19,900,589 38.22 3.79 67,901 Options vested and expected to vest as of December 31, 2020 19,900,589 38.22 3.79 67,901 Option exercisable as of December 31, 2020 15,948,198 36.97 3.71 64,135 The weighted average grant date fair value for the years ended December 31, 2018 and For share options that vest on grant date, the cost of award is expensed on the grant date. For the graded vesting share options, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. The Company recorded share-based compensation expenses of RMB345,503, RMB230,440 and RMB28,023 for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, there was RMB30,874 of share-based compensation related to stock options that is expected to be recognized over a weighted average period of 2.48 years. In November 2018, the Company granted 1,631,200 restricted shares to certain employees. These shares are fully vested and outstanding shares whose transferability is restricted for 6 months. Before the removal of such restrictions, the holders of the restricted shares shall be entitled to all rights and privileges of those of ordinary shareholders, and shall be entitled to voting rights and dividends. Therefore, these restricted shares are considered participating securities for the purpose of net loss per share calculation. The grant-date value of a restricted share was USD2.6, which was determined based on the closing price of the Company’s American depositary shares (“ADSs”) on NYSE on November 20, 2018. The Company recorded share-based compensation expenses of USD4,241 (equivalent to RMB29,454) for the year ended December 31, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 7 INCOME TAXES The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. The Company’s subsidiary Prepshine HK is located in Hong Kong and is subject to an income tax rate of 16.5% for assessable profit earned in Hong Kong before or by March 2018, and an income tax rate of 8.25% for the first HK$2,000 of assessable profit while the standard income tax rate of 16.5% remains for profit exceeding HK$2,000 from April 2018 onwards. The Company’s other subsidiaries, the VIE and the VIE’s subsidiaries and schools, which were entities incorporated in the PRC (the “PRC entities”) are subject to PRC Enterprise Income Tax (“EIT”), on the taxable income in accordance with the relevant PRC income tax laws, which have adopted a unified income tax rate of except for a high and new technology enterprise (“HNTE”, which is subject to a tax rate of 15%) and some small low-profit enterprises (whose income will be counted in the taxable income at the half-reduced or quarter-reduced rate, and the enterprise income tax is calculated and paid at the 20% tax rate). In accordance with GuoKeFaHuo [2016] No.32, HNTE can enjoy a reduced income tax rate of 15%. Beijing Meikaida Education Technology Co., Ltd. (“Beijing Meikaida”) began to qualify as HNTE since 2016, renewed the qualification in 2020 and enjoy the tax rate of 15% in 2016, 2017, 2018 and 2020. Beijing GEDU began to qualify as HNTE since 2018 and enjoy the tax rate of 15% in 2018, 2019 and 2020. In accordance with Cai Shui [2019] No.13, during the period from January 1, 2019 to December 31, 2021, for small low-profit enterprises, the portion of less than The current and deferred components of the income tax expenses appearing in the consolidated statement of operations were as follows: For the years ended 2018 2019 2020 RMB RMB RMB Current tax expenses 14,265 20,118 20,561 Deferred tax expenses (8,943 ) (7,930 ) (11,366 ) 5,322 12,188 9,195 The principle components of deferred taxes were as follows: As of December 31, 2019 2020 RMB RMB Deferred tax assets: Accrued expenses 42,443 33,946 Net operating loss carrying forwards 222,722 229,332 Total deferred tax assets 265,165 263,278 Less: Valuation allowance (262,966 ) (259,756 ) Deferred tax assets, net 2,199 3,522 As of December 31, 20 20 1 30 . As of December 31, 2019 2020 RMB RMB Deferred tax liabilities: Acquired intangible assets 81,969 71,674 Total deferred tax liabilities 81,969 71,674 The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations was as follow: For the years ended 2018 2019 2020 RMB RMB RMB Loss before income taxes (828,087 ) (507,446 ) (27,465 ) Income tax benefit computed at an applicable tax rate of 25% (207,022 ) (126,862 ) (6,866 ) Effect of non-deductible expenses 108,479 57,888 33,462 Effect of research and development super-deduction (1,970 ) (6,672 ) (9,473 ) Effect of income tax rate differences in jurisdictions other than PRC 38,490 30,189 (3,075 ) Effect of preferential tax rate (554 ) (12,211 ) (14,228 ) Change in valuation allowance 67,899 69,856 9,375 5,322 12,188 9,195 If Beijing Meikaida and Beijing GEDU did not enjoy income tax preferential tax rates, the increase in the Group’s income tax expenses would have been RMB nil, with no impact on the basic and diluted net loss per share attributable to ordinary shareholders of the Company, for the three years ended December 31, 2020. The Group did not identify significant unrecognized tax benefits for the year ended December 31, 2020. The Group did not incur any interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2020 . |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Ordinary Shares | 18 ORDINARY SHARES Upon the incorporation of Puxin Limited on March 17, 2017, the Company issued 8,524 ordinary shares to Long bright Limited, 820 ordinary shares to Gao & Tianyi Limited, 492 ordinary shares to Pution Limited and 164 ordinary shares to Prospect Limited for an aggregate consideration of USD0.004. On August 4, 2017, the Company issued 99,990,000 ordinary shares to its existing shareholders on a proportional basis for an aggregate consideration of USD5. Such issuance was accounted for as a stock split and, accordingly, all references to numbers of ordinary shares and per-share On February 5, 2018, in connection with the reorganization, the Company issued 21,761,652 ordinary shares to Puxin Nova Limited, 3,336,744 ordinary shares to Stary International Limited, 40,000 ordinary shares to Long wit Limited, 8,200,000 ordinary shares to Long belief Limited, 1,640,000 ordinary shares to Long faith Limited and 17,103,724 ordinary shares to Long favor Limited for an aggregate consideration of USD3. The ordinary shares of the Company issued to Long favor Limited and Long belief Limited were to establish a reserve pool for future issuance of equity share incentive to the Group’s employees or for future acquisition payments. All shareholder rights of these 25,303,724 ordinary shares including but not limited to voting rights and dividend rights are unconditionally waived until the corresponding ordinary share are transferred to the employees or the shareholders of future acquiree. While the ordinary shares were issued to Long favor Limited and Long belief Limited, they do not have any of the rights associated with the ordinary shares, and as such the Company accounted for these shares as issued but not outstanding ordinary shares until the waiver is released by the Company, which occurs when the ordinary shares are awarded to the employees or the shareholders of future acquiree. 6,450,766 and 8,150,652, 5,849,104 and 8,150,652 ordinary shares of Long favor Limited and Long belief Limited were Upon the completion of the Company’s IPO in June, 2018, the Company offered and issued 8,280,000 ADSs representing 16,560,000 ordinary shares with a par value USD0.00005 per share at the net proceeds, before expense, of USD130,907 (equivalent to RMB837,541). IPO related expense is RMB38,711, out of which RMB38,333 is paid as of December 31, 2018 and the remaining balance is recorded in the accrued expense and other current liabilities. Immediately upon the completion of the IPO, all of the Company’s convertible redeemable preferred shares automatically converted into an equal number of 11,917,880 ordinary shares; the convertible notes issued to Haitong automatically converted into 4,201,681 ordinary shares at the conversion price of USD5.95, which equal to 70% of the IPO price of the ordinary shares; CICC ALPHA exercised its conversion right and the convertible notes were converted into 3,865,547 ordinary shares at the conversion price of USD5.95 which equal to 70% of the IPO price of the ordinary shares. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Net Loss Per Share [Abstract] | |
Net Loss Per Share | 19 NET LOSS PER SHARE For the purpose of calculating net loss per share as a result of the reorganization as described in Note 1, the number of ordinary shares used in the calculation reflects the outstanding ordinary shares of the Company as if the reorganization occurred at the beginning of the first period presented. The following table sets forth the computation of basic and diluted net loss per share for the periods indicated: For the years ended 2018 2019 2020 RMB RMB RMB Numerator used in basic and diluted net loss per share: Net loss attributable to ordinary shareholders of Puxin Limited (833,411 ) (518,533 ) (32,206 ) Shares (denominator): Weighted average common shares outstanding used in computing basic and diluted net loss per share (Note 1) 144,157,947 170,903,317 174,156,247 Net loss per share basic and diluted (5.78 ) (3.03 ) (0.18 ) For the years ended December 31, 2018, 2019 and 2020, an incremental weighted average number of 18,420,993, 21,646,232 and 19,900,589 ordinary shares from the assumed exercise of share options were not considered in the computation of diluted net loss per share because they would be anti-dilutive given the Company’s loss making position. |
Employee Defined Contribution P
Employee Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Defined Contribution Plan | 2 0 EMPLOYEE DEFINED CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund, unemployment insurance and other welfare benefits are provided to employees. Chinese labor regulations require that the Group’s PRC entities make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amount for such employee benefits, which was expensed as incurred, was RMB184,525, RMB210,236 and RMB118,523 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 2 1 RELATED PARTY TRANSACTION (1) Related parties Name of related parties Relationship with the Group Mr. Yunlong Sha The CEO and the Chairman of the Board of Directors of the Company Ms. Wenjing Song Spouse of Mr. Yunlong Sha (2) The significant balances between the Group and its related parties were as follows: As of December 31, 2019 2020 RMB RMB Amounts due to: Mr. Yunlong Sha 1,197 170,229 Ms. Wenjing Song 254 164 1,451 170,393 The balances outstanding with related parties were interest-free, unsecured and repayable in 2-3 years. For the years ended December 31, 2018, 2019 and 2020, the Group recognized interest expense of RMB 16,294 nil 1,626 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 2 2 LEASES Operating lease s The Group’s leases consist of operating leases for offices and schools in different cities in the PRC. The Group determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, the non-lease components Total operating lease expenses for the year s 2019 and were RMB389,197, and were statements of operations. For the year s December 31, 2019 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases 373,230 361,432 Right-of-use assets Operating leases 643,722 315,751 Weighted average remaining lease term Operating leases 4.59 years 4.63 years Weighted average discount rate Operating lease s 7.46 % 7.53 % The following is a maturity analysis of the annual undiscounted cash flows for the annual periods as of December 31, 2020: Years ending December 31, 2021 329,673 2022 243,799 2023 181,106 2024 120,543 2025 84,251 T 132,094 Less imputed interest 150,898 Total 940,568 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The terms of the leases do not contain rent escalation or contingent rents. For the year s |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 2 3 COMMITMENTS AND CONTINGENCIES Equity pledge commitment On August 4, 2017, Puxin Limited issued a convertible note and a promissory note at the principle amount of USD25,000 and USD25,000, respectively, to Haitong. In conjunction with the note purchase agreement, an offshore share mortgage agreement was entered into amongst Haitong, Puxin Limited and Long bright Limited (a shareholder of Puxin Limited solely owned by Mr. Yunlong Sha). Pursuant to the offshore share mortgage agreement, Long bright Limited mortgaged its 18% equity interests of Puxin Limited in favor of Haitong. Meanwhile, a domestic equity pledge agreement was entered into amongst a related party of Haitong, Puxin Education, Dalian Pude Education Consulting Co., Ltd. (“Dalian Pude”) and Guizhou Puxintian Education Technology Co., Ltd. (“Guizhou Puxintian”). Puxin Education pledged its 100% equity interests of Dalian Pude and Guizhou Puxintian in favor of a related party of Haitong. Mr. Yunlong Sha, Ms. Wenjing Song and Long bright Limited are joint guarantors under the offshore share mortgage agreement and domestic equity pledge agreement. On September 29, 2017, Puxin Limited issued convertible note at the principle amount of USD23,000 to CICC ALPHA. In conjunction with the note purchase agreement, an offshore share mortgage agreement was entered into amongst CICC ALPHA, Puxin Limited and Long bright Limited. Pursuant to the offshore share mortgage agreement, Long bright Limited mortgaged its 8.3% equity interests of Puxin Limited in favor of CICC ALPHA. Meanwhile, a domestic equity pledge agreement was entered into amongst a related party of CICC ALPHA, Mr. Yunlong Sha and Puxin Education, Mr. Yunlong Sha pledged his The equity interests pledged under the domestic equity pledge agreements with Haitong and CICC ALPHA were released in February 2018 in connection with the reorganization. As of December 31, 20 20 As disclosed in Note 11, in 2019 Puxin Education entered into a series of borrowing agreements amounted to As disclosed in Note 12, in 2019 Puxin Education issued secured debts equity interests of a certain subsidiary and tuition collection rights of certain schools were pledged for the secured debts As of December 31, 2020, all the pledged deposits and tuition collection rights under the respective bank borrowing and loan agreements entered in 2019 were released upon the repayment of borrowings and loans. As disclosed in Note 11, in 2020 Puxin Education entered into a series of borrowing agreements amounted to As disclosed in Note 12, in 2020 Puxin Education issued secured debts under the directed financing schemes and registered with competent financial asset exchanges in PRC. Shanghai GEDU, Mr. Yunlong Sha and Ms. Wenjing Song are joint guarantors under the agreements, and tuition collection rights of certain schools were pledged for the secured debts is Contingencies The Group is in the process of applying for permits and preparing filings for certain training institutions and tutoring branches. The contingent liability incurred by failing to meet the permit or filing requirements cannot be reasonably estimated, pending on authoritative interpretation and implementation guidance, the Group did not record any liabilities pertaining to this. On November 7, 2016, the Standing Committee of the National People’s Congress promulgated the Decision on Amending the Law on the Promotion of Private Education of the PRC (the “Amended Private Education Law”), which became effective on September 1, 2017 and was further amended on December 29, 2018. On August 10, 2018, the Ministry of Justice of the PRC issued the Amended Draft of Implementation Rules for the Law on the Promotion Private Education of the PRC for Approval (the “Implementation Rules for Approval”). Due to the lack of authoritative interpretation and implementation guidance, the potential impact related to the Group not fully complying with the Amended Private Education Law or any relevant regulations cannot be reasonably estimated at the issuance of this report. As a result, the Group did not account for any liabilities pertaining to this. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 2 4 SEGMENT INFORMATION The Group’s chief operating decision maker (“CODM”) has been identified as the CEO who reviews financial information of operating segments based on U.S. GAAP amounts when making decisions about allocating resources and assessing performance of the Group. The Group identified two operating segments, including K-12 The Group primary operates in the PRC and all of the Group’s long-lived assets are located in the PRC. The Group’s CODM evaluates performance based on the operating segment’s revenue and gross profit. The revenue and gross profit by segments were as follows: For the year ended December 31, 2018 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 1,182,397 1,045,720 2,228,117 Cost of revenues 706,917 535,972 1,242,889 Gross profit 475,480 509,748 985,228 For the year ended December 31, 2019 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 1,943,854 1,160,104 3,103,958 Cost of revenues 1,055,205 574,242 1,629,447 Gross profit 888,649 585,862 1,474,511 For the year ended December 31, 2020 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 2,206,273 697,642 2,903,915 Cost of revenues 1,205,656 352,940 1,558,596 Gross profit 1,000,617 344,702 1,345,319 The total assets for the two reportable segments were shared and indistinguishable for reporting purposes. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 2 5 RESTRICTED NET ASSETS Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC entities only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s entities. Prior to payment of dividends, pursuant to the PRC laws and regulations, enterprises incorporated in the PRC must make appropriations from after-tax non-distributable Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax year-end Prior to the effectiveness of Amended Private Education Law, PRC laws and regulations required private schools that require reasonable returns to contribute 25% of after-tax The statutory reserves cannot be transferred to the Company in the form of loans or advances and are not distributable as cash dividends except in the event of liquidation. Because the Group’s entities in the PRC can only be paid out of distributable profits reported in accordance with PRC accounting standards, the Group’s entities in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in paid-in |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 26. SUBSEQUENT EVENTS In February and March 2021, Puxin Limited entered into convertible note purchase agreements with a group of institutional investors (the “Purchasers”), pursuant to which the Company issued and sold convertible notes in an aggregate principal amount of US D The convertible notes will mature in five years, bearing interest at the rate of 3% per annum from the issuance date which shall be payable semiannually in cash. Each of the Purchasers has the right to convert all or any portion of the convertible notes at its option at any time into ordinary shares of the Company at a conversion price of US D of the then outstanding principal amount plus all accrued but unpaid interest. In March 2021, the board of directors of Puxin Limited authorized a share repurchase program to repurchase through one or more transactions up to US D In April 2021, Purong Information and Mr. Yunlong Sha jointly entered into a credit agreement with a third party. The credit agreement will provide credit facility at RMB200,000 to Purong Information. Purong Information, with an advance notice, can draw down amounts within the credit facility and Purong Information’s obligations under the credit agreement are guaranteed by Mr. Yunlong Sha. |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company | ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEET S (In thousands of RMB and USD, except for share, and per share data) As of December 31, 2019 2020 2020 RMB RMB USD (Note 3) ASSETS Current assets Cash and cash equivalents 3,103 — — Amounts due from subsidiaries and VIEs 1,099,759 1,061,832 162,733 Prepaid expenses and other current assets 11,448 47,200 7,234 Loan receivable s 191,230 207,225 31,759 Total current assets 1,305,540 1,316,257 201,726 TOTAL ASSETS 1,305,540 1,316,257 201,726 LIABILITIES Current liabilities Accrued expenses and other current liabilities 7,258 6,804 1,044 Promissory note, current portion 87,023 163,125 25,000 Loan payable to a third party — 65,250 10,000 Total current liabilities 94,281 235,179 36,044 Non-current Promissory note, non-current 87,022 — — Derivative liabilities 172,235 — — Investments deficit in subsidiaries and VIEs 690,822 656,346 100,590 TOTAL LIABILITIES 1,044,360 891,525 136,634 SHAREHOLDERS’ EQUITY Ordinary shares (par value of USD0.00005 per share; 1,000,000,000 and 1,000,000,000 shares authorized, 188,627,228 and 188,653,468 shares issued and 174,025,810 and 174,453,992 shares outstanding as of December 31, 2019 and 2020, respectively) 62 62 9 Additional paid-in 2,175,652 2,396,406 367,265 Statutory reserve 7,979 11,444 1,754 Accumulated other comprehensive income 68,707 43,711 6,699 Accumulated deficit (1,991,220 ) (2,026,891 ) (310,635 ) TOTAL SHAREHOLDERS’ EQUITY 261,180 424,732 65,092 TOTAL LIABILITIES AND TOTAL SHAREHOLDERS’ EQUITY 1,305,540 1,316,257 201,726 ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF OPERATIONS (In thousands of RMB and USD, except for share, and per share data) For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD (Note 3) General and administrative expenses (8,728 ) (12,102 ) (191 ) (28 ) Total operating expenses (8,728 ) (12,102 ) (191 ) (28 ) Interest expense (13,218 ) (15,250 ) (17,244 ) (2,643 ) Interest income 2,104 10,985 37,092 5,685 Foreign exchange ( ) gai n (10,358 ) (3,753 ) 18,885 2,894 Loss on changes in fair value of convertible notes, derivative liabilities and warrants (124,648 ) (104,589 ) (20,917 ) (3,206 ) Equity in loss of subsidiaries and VIEs (678,563 ) (393,824 ) (49,831 ) (7,637 ) Loss before income taxes (833,411 ) (518,533 ) (32,206 ) (4,935 ) Income tax expenses — — — — Net loss (833,411 ) (518,533 ) (32,206 ) (4,935 ) ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In thousands of RMB and USD, except for share, and per share data) For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD (Note 3) Net loss (833,411 ) (518,533 ) (32,206 ) (4,935 ) Other comprehensive loss, net of tax of nil Change in cumulative foreign currency translation adjustments 52,496 493 (24,996 ) (3,831 ) Total comprehensive loss (780,915 ) (518,040 ) (57,202 ) (8,766 ) ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF CASH FLOWS (In thousands of RMB and USD) For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD (Note 3) CASH FLOWS FROM OPERATING ACTIVITIES Net loss (833,411 ) (518,533 ) (32,206 ) (4,935 ) Adjustments to reconcile net loss to net cash used in operating Equity in loss of subsidiaries and VIEs 678,563 393,824 49,831 7,637 Foreign exchange loss (gain ) 10,358 3,753 (18,885 ) (2,894 ) Loss on changes in fair value of convertible notes, derivative liabilities and warrants 124,648 104,589 20,917 3,206 Changes in operating assets and liabilities: Prepaid expenses and other current assets — (10,449 ) (37,145 ) (5,693 ) Accrued expenses and other current liabilities (5,230 ) 1,409 — — Net cash used in operating activities (25,072 ) (25,407 ) (17,488 ) (2,679 ) CASH FLOWS FROM INVESTING ACTIVITIES Loans to subsidiaries and VIEs (396,495 ) (221,418 ) (23,775 ) (3,644 ) Loan to a third party — (191,230 ) (27,993 ) (4,290 ) Net cash used in investing activities (396,495 ) (412,648 ) (51,768 ) (7,934 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from IPO (net of IPO expenses) 811,001 — — — Loan from a third party — — 65,250 10,000 Net cash generated from financing activities 811,001 — 65,250 10,000 Effect of exchange rate changes 43,773 3,545 903 137 Net increase (decrease) in 433,207 (434,510 ) (3,103 ) (476 ) Cash and cash equivalents, and restricted cash at beginning of the year 4,406 437,613 3,103 476 Cash and cash equivalents, and restricted cash at end of the year 437,613 3,103 — — ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY NOTES TO FINANCIAL STATEMENTS (In thousands of RMB and USD, except for share, and per share data) 1. BASIS FOR PREPARATION The condensed financial information of the Parent Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Parent Company used the equity method to account for investments in its subsidiaries. 2. INVESTMENT IN SUBSIDIARIES In its consolidated financial statements, the Parent Company consolidates the results of operations and assets and liabilities of its subsidiaries and schools, and inter-company balances and transactions were eliminated upon consolidation. For the purpose of the Parent Company’s standalone financial statements, its investments in subsidiaries are reported using the equity method of accounting as a single line item and the Parent Company’s share of loss from its subsidiaries and VIEs are reported as the single line item of equity in loss of subsidiaries and VIEs. 3. CONVENIENCE TRANSLATION The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into USD using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the balance sheet, and the related statement of operations and cash flows from RMB into USD as of and for the year ended December 31, 2020 2020 2020 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation and use of estimates | Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. Actual results may differ from those estimates. The Group bases its estimates on past experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s financial statements include, but are not limited to, valuation allowance for deferred tax assets, useful lives of property, plant and equipment and intangible assets, impairment assessment of long-lived assets and goodwill, valuation of share-based compensation and payments, purchase price allocation for business acquisition and valuation of ordinary shares, convertible notes, derivative liabilities and warrants. Actual results may differ materially from those estimates. |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements include the financial information of the Group. All intercompany balances and transactions have been eliminated. The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business is dependent on, among other things, the Group’s ability to generate sufficient cash flows from operations, and the Group’s ability to arrange adequate financing arrangements. The Group had recurring losses in the past three years and had working capital deficit as of December 31, 2020. Prior to the consideration of the management’s plans articulated below, these factors may raise substantial doubt about the Group’s ability to continue as a going concern for the foreseeable future. The Group obtained proceeds from financing activities in an aggregate amount of US D 89,000 from the issuance of convertible notes in February and March 2021 (Note 26) and, is n e gotia t RMB 200,000 from a third party in April 2021 (Note 26) which can be drawn down when necessary. Therefore, as of the date issuance of these financial statements, management is of the opinion that the Group will be able to satisfy its liabilities as they become due in the next twelve months, and accordingly, these consolidated financial statements are prepared on a going concern basis. |
Business combinations | Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling |
Fair value | Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Financial instruments | Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, other receivables, loan receivables, other payables, amounts due to related parties, bank borrowings, loans payable to third parties, promissory notes and derivative liabilities. The carrying amounts of cash and cash equivalents, restricted cash, other receivables, loan receivables, other payables, amounts due to related parties and bank borrowings approximate their fair values due to short-term maturities. The carrying amount of loans payable to third parties approximates fair value as its interest rates are at the same level of current market yield for comparable debts. |
Convenience translation | Convenience translation The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into USD using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets and the related consolidated statements of operations, comprehensive loss, change in equity and cash flows from RMB into USD as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.5250, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2020. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2020, or at any other rate. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents comprise cash at banks and on hand, which have original maturities of three months or less when purchased and are subject to an insignificant risk of changes in value. The carrying value of cash equivalents approximates market value. |
Restricted cash | Restricted cash Restricted cash represents cash deposits in restricted bank accounts, required by local regulations for operating schools or pledged as collateral for bank borrowings. The deposits in restricted bank accounts cannot be withdrawn until these schools are closed or bank borrowings are fully repaid. Restricted cash is classified as either current or non-current |
Inventories | Inventories Inventories, mainly consisting of textbooks, are stated at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. |
Loan receivables | Loan receivables Loan receivables are measured at amortized cost with interest accrued based on the contract rate. The Group evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the life of loans on an individual basis based on the Group’s past experiences, the borrowers’ financial position, their financial performance and their ability to continue to generate sufficient cash flows. A valuation allowance will be established for the loans unable to collect. No valuation allowance has been recorded for the years ended December 31, 2018, 2019 and 2020 based on the result of the assessment. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Buildings 37 years Electronic equipment 3 years Motor vehicles 5 years Furniture and education equipment 5 years Leasehold improvement Shorter of lease term or Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant 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 assets and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statement of operations. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. Intangible assets with finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. Goodwill is not subject to amortization, but is tested for impairment on an annual basis at the end of the fourth quarter or whenever events or changes in circumstances indicate the carrying value of the reporting unit may be in excess of its fair value. As part of the annual goodwill impairment test, the Group first performs a qualitative assessment to determine whether further impairment testing is necessary. If the qualitative assessment above indicates that it is more likely than not that the fair value of the Group’s reporting unit is less than its carrying value, a quantitative impairment test shall be used to compare the fair value to the carrying value. An impairment charge is recorded if the carrying value exceeds the fair value. There was no impairment of goodwill recorded for the years ended December 31, 2018, 2019 and 2020, respectively. Acquired intangible assets other than goodwill consist of student base, definite trademark, relationship with partnership school and franchise agreements, which are carried at cost, less accumulated amortization and impairment. The amortization periods are as follows: Category Amortization periods Student base 2.2 - 7 years Trademark 5.4 Relationship with partnership school 6.4 years Franchise agreement 3.4 years The Group has determined that certain trademarks do not have determinable useful lives. Consequently, the carrying amounts of the trademarks are not amortized but are tested for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. Such impairment test consists of a comparison of the fair values of the trademarks with their carrying amounts and an impairment loss is recognized if and when the carrying amounts of the trademarks exceed their fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. |
Impairment of long-lived assets | Impairment of long-lived assets The Group’s long-lived assets consist primarily of intangible assets with definite lives, property, plant and equipment and operating lease right-of-use assets. The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. The Group did not record any impairment losses on its long-lived assets during the years ended December 31, 2018, 2019 and 2020. |
Revenue recognition and Deferred revenue | Revenue recognition On January 1, 2018, the Group adopted ASU No. 2014-09, Revenues are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration that the Group expects to receive in exchange for those goods or services. The following table presents the Group’s revenues disaggregated by revenue sources. The Group’s revenue is reported net of discounts, value added tax and surcharges. For the years ended 2018 2019 2020 RMB RMB RMB Services: K-12 817,843 1,103,607 1,153,658 K-12 364,554 553,654 580,533 K-12 — 286,593 472,082 Study-abroad test preparation services 860,687 941,537 553,647 Study-abroad consulting services 185,033 218,567 143,995 Total net revenues 2,228,117 3,103,958 2,903,915 The following is a description of principal activities from which the Group generates revenue and related revenue recognition policies. (i) K-12 The Group offers various types of after-school tutoring services to help students improve their academic performance and qualify for their desired schools and universities. The after-school tutoring services primarily consist of group class courses, personalized tutoring courses and full-time tutoring courses. The K-12 K-12 (ii) Study abroad tutoring services • Study-abroad test preparation services The Group offers study abroad test preparation services to help students prepare for admission tests for high schools, universities and graduate programs in other countries. Tutoring fees are collected in advance and are initially recorded as deferred revenue which is recognized proportionately as the tutoring sessions are delivered. Students are entitled to certain trial class of the purchased course and course fee is fully refundable if a student decides within the trial period not to take the remaining course. For some study-abroad test preparation courses, the Group also offers refunds for any remaining classes to students who withdraw from the course. The study-abroad test preparation services are accounted for as a single performance obligation. • Study-abroad consulting services The Group offers study abroad consulting services to provide quality advisory guidance for students who intend to study abroad. The Group charges each student an up-front Remaining performance obligation represents the transaction price under the contracts of study-abroad consulting services for which services have not been fully performed. As of December 31, 2020, the aggregate amount of the transaction price allocated for the remaining performance obligations was RMB . The Group expects to recognize revenue RMB and RMB on the remaining performance obligations over the next and months, respectively, with the remainder of RMB5,428 to be recognized thereafter The contract liability consists of deferred revenue and refund liability. Arrangements with multiple performance obligations The Group’s contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices based on the prices charged to customers. Practical expedients and exemptions The Group incurs sales commissions primarily for K-12 These costs are recorded within selling expenses. The Group does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Group recognizes revenue at the amount to which it has the right to invoice for services performed. Deferred revenue Deferred revenue primarily consists of tuition fees and consulting service fees received from customers for which the Group’s revenue recognition criteria have not been met. The deferred revenue will be recognized as revenue once the criteria for revenue recognition have been met. |
Value added taxes | Value added taxes The Since May 2016, in accordance with Cai Shui [2016] No. 68, the nonacademic educational programs and services in short-term training schools are subject to a simple VAT collection method and apply for a 3% VAT rate. Therefore, the Group’s nonacademic educational programs and services in short-term training schools which were previously subject to business tax are now subject to VAT. Since January 2020, in accordance with Cai Shui [2020] No.8, due to the COVID-19 pandemic, the VAT on certain services was temporarily exempted for the calendar year 2020. For the year ended December 31, 2020, VAT exemption of RMB86,212 was recognized as other income in the Group’s consolidated statements of operations. |
Leases | Leases The Group adopted Topic 842 on January 1, 2019 using the modified retrospective transition approach allowed under ASU 2018-11, o and right-of-use assets measures right-of-use assets |
Income taxes | Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not more-likely-than-not |
Share-based compensation | Share-based compensation The Group measures the cost of employee share options based on the grant date fair value of the award and recognizes compensation cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options, the Group recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, the cost of the award is expensed on the grant date. The Group elects to recognize forfeitures when they occur. |
Comprehensive loss | Comprehensive loss Comprehensive loss includes net loss and foreign currency translation adjustments. Comprehensive loss is reported in the consolidated statements of comprehensive loss. |
Net loss per share | Net loss per share Net loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of common shares outstanding during the period. Diluted net loss per share is based upon the weighted average number of common shares and of common share equivalents outstanding when dilutive. Common share equivalents include: (i) outstanding stock options under the Company’s share incentive plan which are included under the treasury share method when dilutive, (ii) common shares to be issued under the assumed conversion of the Company’s outstanding convertible notes, which are included under the if-converted if-converted The Group’s convertible redeemable participating preferred shares are participating securities as they participate in undistributed earnings on an as-if-converted two-class The computation of diluted net loss per share for the years ended December 31, 2018, 2019 and 2020 does not include common share equivalents, since such inclusion would be anti-dilutive. |
Contingency | Contingency The Group is subject to lawsuits, investigations and other claims related to the operation of its schools. The Group is required to assess the likelihood of any adverse judgments or outcomes to these matters, as well as potential ranges of probable losses and fees. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence |
Significant risks and uncertainties | Significant risks and uncertainties Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies, international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents and restricted cash denominated in RMB amounted Concentration of credit risk Financial instruments that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents and prepayment and other current assets. As of December 31, 2019 and 2020, substantially all of the Group’s cash and cash equivalents were deposited in financial institutions located in the PRC. |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing the following exceptions:1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; 2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; 3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and 4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments also simplify the accounting for income taxes by doing: 1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; 2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; 3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority; 4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date; and 5) making minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Group is currently assessing the impact of adopting this ASU, but based on a preliminary assessment, does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which focuses on amending the legacy guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity. ASU 2020-06 simplifies an issuer’s accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. Further, ASU 2020-06 enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share (EPS) guidance, i.e., aligning the diluted EPS calculation for convertible instruments by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in the diluted EPS calculation when an instrument may be settled in cash or shares, adding information about events or conditions that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed. This update will be effective for the Group's fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the new guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Group is currently in the process of evaluating the impact of adopting ASU 2020-06 on its consolidated financial statements and related disclosure. |
Newly adopted accounting pronouncements | Newly adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This ASU affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). In April 25, 2019, ASU 2016-13 was updated with ASU 2019-04, which clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments. ASU 2019-04 provides certain alternatives for the measurement of the allowance for credit losses (ACL) on accrued interest receivable (AIR). These measurement alternatives include (1) measuring an ACL on AIR separately, (2) electing to provide separate disclosure of the AIR component of amortized cost as a practical expedient, and (3) making accounting policy elections to simplify certain aspects of the presentation and measurement of such AIR. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-04 related to ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, and interim periods therein. An entity may early adopt ASU 2019-04 in any interim period after its issuance if the entity has adopted ASU 2016-13. The Group adopted Topic 326 on January 1, 2020 using the modified retrospective approach and the adoption did not have a material impact on the Group’s consolidated financial statements. In January 2017, FASB issued ASU 2017-04: Simplifying the Test for Goodwill Impairment. Under the new accounting guidance, an entity will no longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity will perform its goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value but not to exceed the total amount of the goodwill of the reporting unit. In addition, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment, if applicable. The provisions of the new accounting guidance are required to be applied prospectively. The new accounting guidance is effective for the Company for goodwill impairment tests performed in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests performed after January 1, 2017. The Group adopted this ASU on January 1, 2020 and the adoption had no impact on the Group’s consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to the Related Party Guidance for Variable Interest Entities. ASU 2018-17 changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportional basis, rather than in their entirety. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Group adopted Topic 810 on January 1, 2020 the adoption had no impact on the Group’s consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Financial Information of VIE and Its Subsidiaries and Schools | The following financial information of the VIE and VIE’s subsidiaries and schools after the elimination of inter-company transactions and balances as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 was included in the accompanying consolidated financial statements: As of December 31, 2019 2020 RMB RMB Cash and cash equivalents 238,907 37,843 Prepaid expenses and other current assets 88,571 78,425 Total current assets 340,789 147,148 Total assets 3,569,949 3,264,946 Total current liabilities 3,035,344 2,762,722 Total liabilities 3,914,723 3,513,374 For the years ended 2018 2019 2020 RMB RMB RMB Net revenues 2,219,638 3,094,044 2,897,010 Net ( ) (254,754 ) (31,712 ) 149,378 Net cash (used in) generated from operating activities (81,041 ) 142,437 (49,168 ) Net cash used in investing activities (156,917 ) (219,186 ) (54,383 ) Net cash generated from (used in) financing activities 20,505 83,361 (82,301 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives of Assets | Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Buildings 37 years Electronic equipment 3 years Motor vehicles 5 years Furniture and education equipment 5 years Leasehold improvement Shorter of lease term or |
Schedule of Amortization Periods of Intangible Assets | The amortization periods are as follows: Category Amortization periods Student base 2.2 - 7 years Trademark 5.4 Relationship with partnership school 6.4 years Franchise agreement 3.4 years |
Schedule of Revenues Disaggregated by Revenue Sources | The following table presents the Group’s revenues disaggregated by revenue sources. The Group’s revenue is reported net of discounts, value added tax and surcharges. For the years ended 2018 2019 2020 RMB RMB RMB Services: K-12 817,843 1,103,607 1,153,658 K-12 364,554 553,654 580,533 K-12 — 286,593 472,082 Study-abroad test preparation services 860,687 941,537 553,647 Study-abroad consulting services 185,033 218,567 143,995 Total net revenues 2,228,117 3,103,958 2,903,915 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Acquisition [Line Items] | |
Summary of Results of Operations Attributable to Acquisitions | The following information summarizes the results of operations attributable to the acquisitions included in the Group’s consolidated statement of operations since the acquisition date: For the year ended Shandong Others RMB RMB Net revenues 8,074 4,495 Net (loss) (1,362 ) (27 ) For the year ended Beijing Xiaoze Xi’an Intest Dalian Keyuan Others RMB RMB RMB RMB Net revenues 116,355 61,194 11,697 174,149 Net income (loss) 11,300 (1,740 ) 758 33,460 For the year ended Zhengzhou Youshili RMB Net revenues 5,800 Net income 249 |
Shandong Zengyu | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Prepaid expenses and other current assets 37,169 Property, plant and equipment, net 1,241 3-5 Rental deposits 290 Accrued expenses and other current liabilities (2,219 ) Deferred revenue (35,534 ) Intangible assets-student base 6,700 2.2 Deferred tax liabilities (1,675 ) Goodwill 71,028 Total 77,000 |
Other 2018 Acquirees | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | These transactions were considered business acquisitions and therefore were recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisitions. The purchase price for the acquisition was allocated as follows: Amount Amortization period RMB Cash and cash equivalents 54 Prepaid expenses and other current assets 8,504 Restricted cash 200 Accrued expenses and other current liabilities (769 ) Deferred revenue (8,704 ) Intangible assets-student base 1,100 3.5 Deferred tax liabilities (275 ) Goodwill 19,876 Total 19,986 |
Beijing Xiaoze | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Cash and cash equivalents 20,057 Inventories 1,508 Prepaid expenses and other current assets 52,596 Property, plant and equipment, net 205 3-5 Operating lease right-of-use 63,652 Accrued expenses and other current liabilities (1,392 ) Deferred revenue (108,406 ) Operating lease liabilities (58,621 ) Intangible assets - trademark 43,700 Indefinite Deferred tax liabilities (10,925 ) Goodwill 167,626 Total 170,000 |
Xi'an Intest | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Cash and cash equivalents 22,245 Prepaid expenses and other current assets 47 Rental deposits 464 Property, plant and equipment, net 2,074 3-5 years Operating lease right-of-use 45,269 Accrued expenses and other current liabilities (6,072 ) Deferred revenue (45,581 ) Operating lease liabilities (41,469 ) Intangible assets - student base 15,700 3.5 years Deferred tax liabilities (3,925 ) Goodwill 124,248 Total 113,000 |
Dalian Keyuan | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Cash and cash equivalents 8,223 Prepaid expenses and other current assets 64,330 Rental deposits 931 Property, plant and equipment, net 1,204 3-5 Operating lease right-of-use 37,780 Accrued expenses and other current liabilities (6,280 ) Deferred revenue (67,415 ) Bank borrowing (4,500 ) Operating lease liabilities (32,333 ) Intangible assets - student base 12,600 4.1 Deferred tax liabilities (3,150 ) Goodwill 160,560 Total 171,950 |
Other 2019 Acquirees | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | These transactions were considered business acquisitions and therefore were recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisitions. The purchase price for the acquisition was allocated as follows: Amount Depreciation or RMB Cash and cash equivalents 14,329 Prepaid expenses and other current assets 105,367 Rental deposits 1,155 Restricted cash 1,951 Property, plant and equipment, net 1,990 3-5 Operating lease right-of-use 69,970 Accrued expenses and other current liabilities (6,595 ) Deferred revenue (148,484 ) Operating lease liabilities (62,772 ) Intangible assets - student base 8,500 2.6-3.6 years Deferred tax liabilities (2,125 ) Goodwill 359,671 Total 342,957 |
Zhengzhou Youshili | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | Amount Depreciation or RMB Cash and cash equivalents 1,420 Inventories 168 Prepaid expenses and other current assets 33,683 Rental deposits 558 Property, plant and equipment, net 52 3-5 years Operating lease right-of-use assets 23,413 Accrued expenses and other current liabilities (655 ) Deferred revenue (36,682 ) Operating lease liabilities (21,925 ) Intangible assets - student base 3,600 4.1 years Deferred tax liabilities (900 ) Goodwill 47,574 Total 50,306 |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2019 and 2020 assuming that the acquisition of Zhengzhou Youshili which was For the years ended 2019 2020 RMB RMB Unaudited Unaudited pro forma net revenues 3,185,922 2,970,758 pro forma net (loss) (520,417 ) (37,745 ) |
Shandong Zengyu and Other 2018 Acquirees | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2017 and 2018 assuming that the acquisitions of Shandong Zengyu and Other 2018 Acquirees which were completed in 2018 occurred as of January 1, 2017. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the years ended 2017 2018 RMB RMB Unaudited Unaudited pro forma net revenues 1,392,146 2,317,937 pro forma net (loss) (389,366 ) (824,909 ) |
Beijing Xiaoze, Xi'an Intest, Dalian Keyuan and Other 2019 Acquirees | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2018 and 2019 assuming that the acquisitions of Beijing Xiaoze, Xi’an Intest, Dalian Keyuan and Other 2019 Acquirees which were completed in 2019 occurred as of January 1, 2018. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the years ended 2018 2019 RMB RMB Unaudited Unaudited pro forma net revenues 2,928,589 3,481,809 pro forma net (loss) (836,874 ) (516,704 ) |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Schedule of Prepaid Expense and Other Current Assets | Prepaid expenses and other current assets consisted of the following: As of December 31, 2019 2020 RMB RMB Prepaid service fees 68,913 55,683 Staff advances 20,067 17,430 Interest receivable 17,052 48,513 Receivable from disposal of — 8,470 Others 11,116 11,798 117,148 141,894 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of December 31, 2019 2020 RMB RMB Buildings 87,792 87,792 Electronic equipment 87,658 91,524 Motor vehicles 9,149 8,111 Furniture and education equipment 46,132 48,173 Leasehold improvement 239,148 248,724 Total 469,879 484,324 Less: Accumulated depreciation (171,160 ) (219,295 ) 298,719 265,029 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: As of December 31, 2019 2020 RMB RMB Student base 140,409 127,155 Trademark 216,100 216,100 Relationship with partnership school 5,300 5,300 Franchise agreement 4,400 4,400 Total 366,209 352,955 Less: Accumulated amortization (101,669 ) (123,685 ) Accumulated impairment loss — (4,100 ) 264,540 225,170 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The Group has two reporting units that carry goodwill. The changes in carrying amount of goodwill for the years ended December 31, 2019 and 2020 were as follows: As of December 31, 2019 2020 RMB RMB Costs: Beginning balance 1,243,817 2,055,922 Acquisition of subsidiaries and schools 812,105 47,574 Disposal of subsidiaries and schools — (20,345 ) Ending balance 2,055,922 2,083,151 Goodwill — — Goodwill, net 2,055,922 2,083,151 |
Accrued Expenses And Other Cu_2
Accrued Expenses And Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Components of Accrued Expenses and Other Current Liabilities | The components of accrued expenses and other current liabilities were as follows: As of December 31, 2019 2020 RMB RMB Consideration payable in connection with business acquisitions 376,187 191,431 Salary and welfare payable 335,024 258,635 Refund liabilities (Note a) 137,510 147,093 Accrued expenses 61,962 129,900 Other tax payable 25,060 12,531 Interest payable 20,342 23,530 Payables for purchase of property, plant and equipment 16,113 8,759 Others 11,517 13,015 983,715 784,894 Note a: Refund liabilities represented estimated amounts of service fee collected that may be subject to refund to the customers related to K-12 tutoring services and study abroad tutoring services. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurement as of December 31, 2019 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total RMB RMB RMB RMB Cash and cash equivalents 256,763 — — 256,763 Restricted cash 386,267 — — 386,267 Promissory notes — 174,045 — 174,045 Derivative liabilities — — 172,235 172,235 Total 643,030 174,045 172,235 989,310 Fair Value Measurement as of December 31, 2020 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total RMB RMB RMB Cash and cash equivalents 48,497 — 48,497 Restricted cash 540,310 — 540,310 Promissory notes — 163,125 163,125 Total 588,807 163,125 751,932 |
Schedule of Reconciliation of Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The following is a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2018, 2019 and 2020: Derivative RMB Balance as of January 1, 2019 63,942 Changes in fair value 104,589 Exchange rate effect 3,704 Balance as of December 31, 2019 172,235 Changes in fair value 20,917 Extinguishment of derivative liabilities (194,265 ) Exchange rate effect 1,113 Balance as of December 31, 2020 — |
Derivative Liabilities | |
Schedule of Key Assumptions Used in Valuation | The key assumptions used in valuation of derivative liabilities are summarized in the table below: For the years ended 2019 2020 Exit period 2019/12/31 2019/12/31 –2020/12/31 –2020/6/30 Volatility 77 % 92 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Assumptions used to Determined the Estimated Fair Value of Options using the Binomial Option Pricing Model | The Company determined the estimated fair value of the options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm, with the following assumptions used in the years ended December 31, 2018 and 2019. The Company did not grant options in the year ended December 31, 2020 . For the years ended Grant date 2018 2019 Risk-free interest rate 3.40 % 2.51 % Volatility 46 % 55 % Dividend yield — — Exercise multiples 2.2-2.8 2.8 Life of options 7.0 7.0 Fair value of underlying ordinary shares 49.67 20.57 |
Summary of Stock Options Activity | The activity in stock options as of December 31, 2020 and changes during the year then ended is presented below: Outstanding options Number of Weighted Weighted average Aggregate Options outstanding at January 1, 2020 21,646,232 37.78 4.77 123,239 Granted — — Exercised 428,182 3.42 Forfeited 1,317,461 40.53 Options outstanding at December 31, 2020 19,900,589 38.22 3.79 67,901 Options vested and expected to vest as of December 31, 2020 19,900,589 38.22 3.79 67,901 Option exercisable as of December 31, 2020 15,948,198 36.97 3.71 64,135 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Current and Deferred Income Tax Expenses | The current and deferred components of the income tax expenses appearing in the consolidated statement of operations were as follows: For the years ended 2018 2019 2020 RMB RMB RMB Current tax expenses 14,265 20,118 20,561 Deferred tax expenses (8,943 ) (7,930 ) (11,366 ) 5,322 12,188 9,195 |
Summary of Principle Components of Deferred Tax | The principle components of deferred taxes were as follows: As of December 31, 2019 2020 RMB RMB Deferred tax assets: Accrued expenses 42,443 33,946 Net operating loss carrying forwards 222,722 229,332 Total deferred tax assets 265,165 263,278 Less: Valuation allowance (262,966 ) (259,756 ) Deferred tax assets, net 2,199 3,522 As of December 31, 2019 2020 RMB RMB Deferred tax liabilities: Acquired intangible assets 81,969 71,674 Total deferred tax liabilities 81,969 71,674 |
Reconciliation of Effective Tax Rate and Statutory Income Tax Rate | The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations was as follow: For the years ended 2018 2019 2020 RMB RMB RMB Loss before income taxes (828,087 ) (507,446 ) (27,465 ) Income tax benefit computed at an applicable tax rate of 25% (207,022 ) (126,862 ) (6,866 ) Effect of non-deductible expenses 108,479 57,888 33,462 Effect of research and development super-deduction (1,970 ) (6,672 ) (9,473 ) Effect of income tax rate differences in jurisdictions other than PRC 38,490 30,189 (3,075 ) Effect of preferential tax rate (554 ) (12,211 ) (14,228 ) Change in valuation allowance 67,899 69,856 9,375 5,322 12,188 9,195 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Loss Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share for the periods indicated: For the years ended 2018 2019 2020 RMB RMB RMB Numerator used in basic and diluted net loss per share: Net loss attributable to ordinary shareholders of Puxin Limited (833,411 ) (518,533 ) (32,206 ) Shares (denominator): Weighted average common shares outstanding used in computing basic and diluted net loss per share (Note 1) 144,157,947 170,903,317 174,156,247 Net loss per share basic and diluted (5.78 ) (3.03 ) (0.18 ) |
Related Party Transaction (Tabl
Related Party Transaction (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Significant Balances Between the Group and its Related Parties | The significant balances between the Group and its related parties were as follows: As of December 31, 2019 2020 RMB RMB Amounts due to: Mr. Yunlong Sha 1,197 170,229 Ms. Wenjing Song 254 164 1,451 170,393 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease | For the year s December 31, 2019 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases 373,230 361,432 Right-of-use assets Operating leases 643,722 315,751 Weighted average remaining lease term Operating leases 4.59 years 4.63 years Weighted average discount rate Operating lease s 7.46 % 7.53 % |
Schedule of Maturity Analysis of Annual Undiscounted Cash Flows | The following is a maturity analysis of the annual undiscounted cash flows for the annual periods as of December 31, 2020: Years ending December 31, 2021 329,673 2022 243,799 2023 181,106 2024 120,543 2025 84,251 T 132,094 Less imputed interest 150,898 Total 940,568 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Gross Profit by Segment | The revenue and gross profit by segments were as follows: For the year ended December 31, 2018 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 1,182,397 1,045,720 2,228,117 Cost of revenues 706,917 535,972 1,242,889 Gross profit 475,480 509,748 985,228 For the year ended December 31, 2019 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 1,943,854 1,160,104 3,103,958 Cost of revenues 1,055,205 574,242 1,629,447 Gross profit 888,649 585,862 1,474,511 For the year ended December 31, 2020 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 2,206,273 697,642 2,903,915 Cost of revenues 1,205,656 352,940 1,558,596 Gross profit 1,000,617 344,702 1,345,319 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Details) - CNY (¥) | Aug. 04, 2017 | Jun. 30, 2018 | Feb. 28, 2018 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 |
Organization And Principal Activities [Line Items] | ||||||
Aggregate shares issued | 99,990,000 | |||||
Ordinary Shares [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Aggregate shares issued | 26,827,744 | |||||
VIE | ||||||
Organization And Principal Activities [Line Items] | ||||||
Maximum value of assets in single transaction | ¥ 100,000 | |||||
VIE and Subsidiaries and Schools | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage of aggregate consolidated assets | 70.70% | 75.80% | ||||
Percentage of aggregate consolidated liabilities | 83.70% | 88.00% | ||||
IPO | ||||||
Organization And Principal Activities [Line Items] | ||||||
Aggregate shares issued | 16,560,000 | |||||
IPO | Preferred Series A Shares | ||||||
Organization And Principal Activities [Line Items] | ||||||
Aggregate shares issued | 11,917,880 | |||||
IPO | Ordinary Shares [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Aggregate shares issued | 52,082,120 | 16,560,000 | ||||
IPO | VIE | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage of equity interest transfer to related party of holder | 3.6335% | |||||
IPO | VIE | Mr. Yunlong Sha | ||||||
Organization And Principal Activities [Line Items] | ||||||
Percentage of equity interest with preferential feature sold | 5.00% |
Organization and Principal Ac_4
Organization and Principal Activities - Schedule of Financial Information of VIE and Its Subsidiaries and Schools (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 48,497 | ¥ 256,763 | ¥ 778,006 | $ 7,432 | |
Prepaid expenses and other current assets | 141,894 | 117,148 | 21,746 | ||
Total current assets | 942,992 | 927,992 | 144,519 | ||
Total assets | 4,617,594 | 4,707,055 | 707,676 | ||
Total current liabilities | 3,144,353 | 3,308,361 | 481,893 | ||
Total liabilities | 4,198,471 | 4,446,997 | $ 643,444 | ||
Net revenues | 2,903,915 | $ 445,044 | 3,103,958 | 2,228,117 | |
Net (loss) income | (36,660) | (5,618) | (519,634) | (833,409) | |
Net cash (used in) generated from operating activities | (203,330) | (31,161) | 24,684 | (92,905) | |
Net cash used in investing activities | (84,316) | (12,922) | (411,309) | (156,917) | |
Net cash generated from (used in) financing activities | 256,246 | $ 39,270 | 204,246 | 831,506 | |
VIE and Subsidiaries and Schools | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 37,843 | 238,907 | |||
Prepaid expenses and other current assets | 78,425 | 88,571 | |||
Total current assets | 147,148 | 340,789 | |||
Total assets | 3,264,946 | 3,569,949 | |||
Total current liabilities | 2,762,722 | 3,035,344 | |||
Total liabilities | 3,513,374 | 3,914,723 | |||
Net revenues | 2,897,010 | 3,094,044 | 2,219,638 | ||
Net (loss) income | 149,378 | (31,712) | (254,754) | ||
Net cash (used in) generated from operating activities | (49,168) | 142,437 | (81,041) | ||
Net cash used in investing activities | (54,383) | (219,186) | (156,917) | ||
Net cash generated from (used in) financing activities | ¥ (82,301) | ¥ 83,361 | ¥ 20,505 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) ¥ in Thousands, $ in Thousands | 2 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Apr. 30, 2021CNY (¥) | Dec. 31, 2020USD ($) | Jan. 01, 2018CNY (¥) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Impairment of goodwill | ¥ 0 | ¥ 0 | ¥ 0 | ||||
Renminbi ("RMB") to per one U.S. dollar exchange rate | 6.5250 | 6.5250 | |||||
Valuation allowance for loan receivables | ¥ 0 | 0 | ¥ 0 | ||||
Accumulated deficit | ¥ (2,026,891) | (1,991,220) | $ (310,635) | ||||
Tutoring services and test preparation services maximum amortization period | 1 year | ||||||
Revenue, remaining performance obligation, expected timing of unsatisfaction, maximum period | 1 year | ||||||
Small scale VAT payer, VAT rate | 3.00% | ||||||
General VAT payer, VAT rate | 6.00% | ||||||
Aggregate Amounts Denominated in RMB | ¥ 73,805 | ¥ 281,450 | |||||
Nonacademic Educational Programs and Services | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Small scale VAT payer, VAT rate | 3.00% | ||||||
Topic 606 | Cumulative Impact of Adopting Topic 606 | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Accumulated deficit | ¥ 48,316 | ||||||
Subsequent Event [Member] | Line Of Credit Facilities From Two Third Parties [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Line of credit maximum borrowing capacity | ¥ 200,000 | ||||||
Subsequent Event [Member] | Convertible Notes Payable [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Proceeds from convertible notes | $ | $ 89,000 | ||||||
Other Income [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Vat Exemption | ¥ 86,212 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of the Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 37 years |
Electronic Equipment | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Motor Vehicles | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 5 years |
Furniture and Education Equipment | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 5 years |
Leasehold Improvement | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | Shorter of lease term or estimated economic life |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Acquired Intangible Assets Other than Goodwill (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Student Base | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets, amortization periods | 2 years 2 months 12 days |
Student Base | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets, amortization periods | 7 years |
Trademark | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets, amortization periods | 5 years 4 months 24 days |
Acquired intangible assets, amortization method | Indefinite |
Relationship with Partnership School | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets, amortization periods | 6 years 4 months 24 days |
Franchise Agreement | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets, amortization periods | 3 years 4 months 24 days |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Disaggregated by Revenue Sources (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | ¥ 2,903,915 | $ 445,044 | ¥ 3,103,958 | ¥ 2,228,117 |
K-12 tutoring services - group class | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 1,153,658 | 1,103,607 | 817,843 | |
K-12 tutoring services - personalized | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 580,533 | 553,654 | 364,554 | |
K-12 tutoring services - full-time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 472,082 | 286,593 | ||
Study-abroad test preparation services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 553,647 | 941,537 | 860,687 | |
Study-abroad consulting services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | ¥ 143,995 | ¥ 218,567 | ¥ 185,033 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Additional Information (Details 1) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 125,605 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 100,500 |
Remaining performance obligations, revenue recognition period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 19,677 |
Remaining performance obligations, revenue recognition period | 24 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 5,428 |
Remaining performance obligations, revenue recognition period |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) - CNY (¥) ¥ in Thousands | Dec. 01, 2020 | Nov. 29, 2019 | Jul. 09, 2019 | Jul. 01, 2019 | Nov. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Shandong Zengyu | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 100.00% | ||||||
Total cash consideration for acquisition | ¥ 77,000 | ||||||
Other 2018 Acquirees | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 100.00% | ||||||
Total consideration for acquisition | ¥ 19,986 | ||||||
Total cash consideration for acquisition | ¥ 19,266 | ||||||
Other 2018 Acquirees | Long belief Limited | |||||||
Business Acquisition [Line Items] | |||||||
Warrant issued during period, shares, purchase of assets | 49,348 | ||||||
Beijing Xiaoze | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 100.00% | ||||||
Total cash consideration for acquisition | ¥ 170,000 | ||||||
Xi'an Intest | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 100.00% | ||||||
Total cash consideration for acquisition | ¥ 113,000 | ||||||
Dalian Keyuan | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 100.00% | ||||||
Total cash consideration for acquisition | ¥ 171,950 | ||||||
Other 2019 Acquirees | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 100.00% | ||||||
Total cash consideration for acquisition | ¥ 342,957 | ||||||
Zhengzhou Youshili | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 100.00% | ||||||
Total cash consideration for acquisition | ¥ 50,306 |
Business Acquisition - Allocati
Business Acquisition - Allocation of Purchase Price for Acquisition (Details) ¥ in Thousands, $ in Thousands | Dec. 01, 2020CNY (¥) | Nov. 29, 2019CNY (¥) | Jul. 09, 2019CNY (¥) | Jul. 01, 2019CNY (¥) | Nov. 01, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | |||||||||
Goodwill | ¥ 2,083,151 | ¥ 2,055,922 | $ 319,257 | ||||||
Trademark | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, intangible assets | 5 years 4 months 24 days | ||||||||
Student Base | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, intangible assets | 2 years 2 months 12 days | ||||||||
Student Base | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, intangible assets | 7 years | ||||||||
Shandong Zengyu | |||||||||
Business Acquisition [Line Items] | |||||||||
Prepaid expenses and other current assets | ¥ 37,169 | ||||||||
Property, plant and equipment, net | 1,241 | ||||||||
Rental deposits | 290 | ||||||||
Deferred revenue | (35,534) | ||||||||
Accrued expenses and other current liabilities | (2,219) | ||||||||
Deferred tax liabilities | (1,675) | ||||||||
Goodwill | 71,028 | ||||||||
Total | ¥ 77,000 | ||||||||
Shandong Zengyu | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||
Shandong Zengyu | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||
Shandong Zengyu | Student Base | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | ¥ 6,700 | ||||||||
Depreciation or amortization period, intangible assets | 2 years 2 months 12 days | ||||||||
Other 2018 Acquirees | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash and cash equivalents | ¥ 54 | ||||||||
Prepaid expenses and other current assets | 8,504 | ||||||||
Restricted cash | 200 | ||||||||
Deferred revenue | (8,704) | ||||||||
Accrued expenses and other current liabilities | (769) | ||||||||
Deferred tax liabilities | (275) | ||||||||
Goodwill | 19,876 | ||||||||
Total | 19,986 | ||||||||
Other 2018 Acquirees | Student Base | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | ¥ 1,100 | ||||||||
Depreciation or amortization period, intangible assets | 3 years 6 months | ||||||||
Beijing Xiaoze | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash and cash equivalents | ¥ 20,057 | ||||||||
Inventories | 1,508 | ||||||||
Prepaid expenses and other current assets | 52,596 | ||||||||
Property, plant and equipment, net | 205 | ||||||||
Operating lease right-of-use assets | 63,652 | ||||||||
Deferred revenue | (108,406) | ||||||||
Operating lease liabilities | (58,621) | ||||||||
Accrued expenses and other current liabilities | (1,392) | ||||||||
Deferred tax liabilities | (10,925) | ||||||||
Goodwill | 167,626 | ||||||||
Total | ¥ 170,000 | ||||||||
Beijing Xiaoze | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||
Beijing Xiaoze | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||
Beijing Xiaoze | Trademark | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | ¥ 43,700 | ||||||||
Depreciation or amortization period, intangible assets | Indefinite | ||||||||
Xi'an Intest | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash and cash equivalents | ¥ 22,245 | ||||||||
Prepaid expenses and other current assets | 47 | ||||||||
Property, plant and equipment, net | 2,074 | ||||||||
Operating lease right-of-use assets | 45,269 | ||||||||
Rental deposits | 464 | ||||||||
Deferred revenue | (45,581) | ||||||||
Operating lease liabilities | (41,469) | ||||||||
Accrued expenses and other current liabilities | (6,072) | ||||||||
Deferred tax liabilities | (3,925) | ||||||||
Goodwill | 124,248 | ||||||||
Total | ¥ 113,000 | ||||||||
Xi'an Intest | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||
Xi'an Intest | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||
Xi'an Intest | Student Base | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | ¥ 15,700 | ||||||||
Depreciation or amortization period, intangible assets | 3 years 6 months | ||||||||
Dalian Keyuan | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash and cash equivalents | ¥ 8,223 | ||||||||
Prepaid expenses and other current assets | 64,330 | ||||||||
Property, plant and equipment, net | 1,204 | ||||||||
Operating lease right-of-use assets | 37,780 | ||||||||
Rental deposits | 931 | ||||||||
Deferred revenue | (67,415) | ||||||||
Bank borrowing | (4,500) | ||||||||
Operating lease liabilities | (32,333) | ||||||||
Accrued expenses and other current liabilities | (6,280) | ||||||||
Deferred tax liabilities | (3,150) | ||||||||
Goodwill | 160,560 | ||||||||
Total | ¥ 171,950 | ||||||||
Dalian Keyuan | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||
Dalian Keyuan | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||
Dalian Keyuan | Student Base | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | ¥ 12,600 | ||||||||
Depreciation or amortization period, intangible assets | 4 years 1 month 6 days | ||||||||
Other 2019 Acquirees | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash and cash equivalents | 14,329 | ||||||||
Prepaid expenses and other current assets | 105,367 | ||||||||
Restricted cash | 1,951 | ||||||||
Property, plant and equipment, net | 1,990 | ||||||||
Operating lease right-of-use assets | 69,970 | ||||||||
Rental deposits | 1,155 | ||||||||
Deferred revenue | (148,484) | ||||||||
Operating lease liabilities | (62,772) | ||||||||
Accrued expenses and other current liabilities | (6,595) | ||||||||
Deferred tax liabilities | (2,125) | ||||||||
Goodwill | 359,671 | ||||||||
Total | ¥ 342,957 | ||||||||
Other 2019 Acquirees | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||
Other 2019 Acquirees | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||
Other 2019 Acquirees | Student Base | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | ¥ 8,500 | ||||||||
Other 2019 Acquirees | Student Base | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, intangible assets | 2 years 7 months 6 days | ||||||||
Other 2019 Acquirees | Student Base | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, intangible assets | 3 years 7 months 6 days | ||||||||
Zhengzhou Youshili | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash and cash equivalents | ¥ 1,420 | ||||||||
Inventories | 168 | ||||||||
Prepaid expenses and other current assets | 33,683 | ||||||||
Property, plant and equipment, net | 52 | ||||||||
Operating lease right-of-use assets | 23,413 | ||||||||
Rental deposits | 558 | ||||||||
Deferred revenue | (36,682) | ||||||||
Operating lease liabilities | (21,925) | ||||||||
Accrued expenses and other current liabilities | (655) | ||||||||
Deferred tax liabilities | (900) | ||||||||
Goodwill | 47,574 | ||||||||
Total | ¥ 50,306 | ||||||||
Zhengzhou Youshili | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | ||||||||
Zhengzhou Youshili | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | ||||||||
Zhengzhou Youshili | Student Base | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | ¥ 3,600 | ||||||||
Depreciation or amortization period, intangible assets | 4 years 1 month 6 days |
Business Acquisition - Summary
Business Acquisition - Summary of Results of Operations Attributable to Acquisitions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shandong Zengyu | |||
Business Acquisition [Line Items] | |||
Net revenues | ¥ 8,074 | ||
Net income (loss) | (1,362) | ||
Other 2018 Acquirees | |||
Business Acquisition [Line Items] | |||
Net revenues | 4,495 | ||
Net income (loss) | ¥ (27) | ||
Beijing Xiaoze | |||
Business Acquisition [Line Items] | |||
Net revenues | ¥ 116,355 | ||
Net income (loss) | 11,300 | ||
Xi'an Intest | |||
Business Acquisition [Line Items] | |||
Net revenues | 61,194 | ||
Net income (loss) | (1,740) | ||
Dalian Keyuan | |||
Business Acquisition [Line Items] | |||
Net revenues | 11,697 | ||
Net income (loss) | 758 | ||
Other 2019 Acquirees | |||
Business Acquisition [Line Items] | |||
Net revenues | 174,149 | ||
Net income (loss) | ¥ 33,460 | ||
Zhengzhou Youshili | |||
Business Acquisition [Line Items] | |||
Net revenues | ¥ 5,800 | ||
Net income (loss) | ¥ 249 |
Business Acquisition - Unaudite
Business Acquisition - Unaudited Pro forma Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shandong Zengyu and Other 2018 Acquirees | ||||
Business Acquisition [Line Items] | ||||
pro forma net revenues | ¥ 2,317,937 | ¥ 1,392,146 | ||
pro forma net (loss) | (824,909) | ¥ (389,366) | ||
Beijing Xiaoze, Xi'an Intest, Dalian Keyuan and Other 2019 Acquirees | ||||
Business Acquisition [Line Items] | ||||
pro forma net revenues | ¥ 3,481,809 | 2,928,589 | ||
pro forma net (loss) | (516,704) | ¥ (836,874) | ||
Zhengzhou Youshili | ||||
Business Acquisition [Line Items] | ||||
pro forma net revenues | ¥ 2,970,758 | 3,185,922 | ||
pro forma net (loss) | ¥ (37,745) | ¥ (520,417) |
Disposal of Subsidiaries - Addi
Disposal of Subsidiaries - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Apr. 30, 2020 | |
Puxin Online School [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Percentage of sale of equity interest | 100.00% | |
Total cash consideration received on disposal | ¥ 37,399 | |
Proceeds from sale of disposal of subsidiary | 35,529 | |
Gain on disposal of subsidiaries and schools | ¥ 66,000 | |
Disposal of Certain Subsidiaries and Schools [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total cash consideration received on disposal | ¥ 8,000 | |
Gain on disposal of subsidiaries and schools | 60,968 | |
Settlement Amount | ¥ 58,000 | |
Disposal of Certain Subsidiaries and Schools [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Percentage of settlement amount receivable | 10.00% | |
Disposal of Certain Subsidiaries and Schools [Member] | Other non-current assets [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Percentage of settlement amount receivable | 90.00% | |
Disposal of Certain Subsidiaries and Schools [Member] | Settlement Period Within Two Thousand and Twenty One [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Percentage of settlement amount receivable | 10.00% | |
Disposal of Certain Subsidiaries and Schools [Member] | Settlement Period Within Twenty Four Months After the Date of the Disposal Agreement [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Percentage of settlement amount receivable | 60.00% | |
Disposal of Certain Subsidiaries and Schools [Member] | Settlement Period Within Thirty Months After the Date of the Disposal Agreement [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Percentage of settlement amount receivable | 30.00% |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Prepaid service fees | ¥ 55,683 | ¥ 68,913 | |
Staff advances | 17,430 | 20,067 | |
Interest receivable | 48,513 | 17,052 | |
Receivable from disposal of subsidiaries | 8,470 | ||
Others | 11,798 | 11,116 | |
Prepaid expenses and other current assets | ¥ 141,894 | $ 21,746 | ¥ 117,148 |
Loan Receivables - Additional I
Loan Receivables - Additional Information (Details) ¥ in Thousands, $ in Thousands | Feb. 28, 2020 | Apr. 30, 2020CNY (¥) | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Sep. 30, 2019CNY (¥) |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Advance from third parties | ¥ 15,670 | |||||
Rate of interests | 4.75% | |||||
Loan agreement term | 12 months | |||||
AHA | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Advance from third parties | $ 27,468 | ¥ 191,230 | ||||
Rate of interests | 18.00% | |||||
Loan agreement term | 12 months | |||||
Increase in advance from third parties | $ 4,290 | ¥ 27,993 | ||||
Loan agreement extended term | Sep. 6, 2021 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant And Equipment (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Total | ¥ 484,324 | ¥ 469,879 | |
Less: Accumulated depreciation | (219,295) | (171,160) | |
Property, plant and equipment, net | 265,029 | $ 40,617 | 298,719 |
Buildings | |||
Property Plant And Equipment [Line Items] | |||
Total | 87,792 | 87,792 | |
Electronic Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total | 91,524 | 87,658 | |
Motor Vehicles | |||
Property Plant And Equipment [Line Items] | |||
Total | 8,111 | 9,149 | |
Furniture and Education Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total | 48,173 | 46,132 | |
Leasehold Improvement | |||
Property Plant And Equipment [Line Items] | |||
Total | ¥ 248,724 | ¥ 239,148 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expenses | ¥ 80,290 | $ 12,305 | ¥ 77,859 | ¥ 57,696 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | ¥ 352,955 | ¥ 366,209 | |
Less: Accumulated amortization | (123,685) | (101,669) | |
Less: Accumulated impairment loss | (4,100) | ||
Intangible assets, net | 225,170 | $ 34,509 | 264,540 |
Student Base | |||
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 127,155 | 140,409 | |
Trademarks | |||
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 216,100 | 216,100 | |
Relationship with Partnership School | |||
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 5,300 | 5,300 | |
Franchise Agreement | |||
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | ¥ 4,400 | ¥ 4,400 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment loss on acquired intangible assets | ¥ 4,100 | $ 628 | ||
Amortization of intangible assets | 34,266 | $ 5,251 | ¥ 34,938 | ¥ 32,749 |
Amortization expenses for the year ended December 31, 2021 | 21,359 | |||
Amortization expenses for the year ended December 31, 2022 | 18,160 | |||
Amortization expenses for the year ended December 31, 2023 | 4,804 | |||
Amortization expenses for the year ended December 31, 2024 | 1,074 | |||
Amortization expenses for the year ended December 31, 2025 | 138 | |||
Amortization expenses thereafter | ¥ 35 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Beginning balance | ¥ 2,055,922 | ¥ 1,243,817 | ||
Acquisition of subsidiaries and schools | 47,574 | 812,105 | ||
Disposal of subsidiaries and schools | (20,345) | |||
Ending balance | 2,083,151 | 2,055,922 | ¥ 1,243,817 | |
Accumulated goodwill impairment loss | 0 | 0 | ¥ 0 | |
Goodwill | ¥ 2,083,151 | $ 319,257 | ¥ 2,055,922 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment loss | ¥ 0 | ¥ 0 | ¥ 0 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Components of Accrued Expenses and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Accrued Liabilities, Current [Abstract] | ||||
Consideration payable in connection with business acquisitions | ¥ 191,431 | ¥ 376,187 | ||
Salary and welfare payable | 258,635 | 335,024 | ||
Refund liabilities | [1] | 147,093 | 137,510 | |
Accrued expenses | 129,900 | 61,962 | ||
Other tax payable | 12,531 | 25,060 | ||
Interest payable | 23,530 | 20,342 | ||
Payables for purchase of property, plant and equipment | 8,759 | 16,113 | ||
Others | 13,015 | 11,517 | ||
Accrued expenses and other current liabilities | ¥ 784,894 | $ 120,290 | ¥ 983,715 | |
[1] | Refund liabilities represented estimated amounts of service fee collected that may be subject to refund to the customers related to K-12 tutoring services and study abroad tutoring services. |
Bank Borrowings - Additional In
Bank Borrowings - Additional Information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2020CNY (¥) | Apr. 30, 2019CNY (¥) | Dec. 31, 2020CNY (¥) | Jun. 30, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||||
Repayment of bank borrowings amount | ¥ 250,900 | |||||||
Interest expense on bank borrowings | 22,049 | ¥ 13,269 | ¥ 1,148 | |||||
Industrial and Commercial Bank of China | Bank Borrowing Agreement | Nanjing Innovation School | Puxin Education as Guarantors | ||||||||
Debt Instrument [Line Items] | ||||||||
Bank borrowing agreement amount | ¥ 10,000 | |||||||
Annual interest rate | 4.35% | |||||||
Bank borrowing term | 6 months | |||||||
China Everbright Bank | Bank Borrowing Agreement | Beijing Haidian Puxin Training School | Puxin Education as Guarantors | ||||||||
Debt Instrument [Line Items] | ||||||||
Bank borrowing agreement amount | ¥ 5,000 | |||||||
Annual interest rate | 4.05% | |||||||
Bank borrowing term | 12 months | |||||||
SPD Bank | Bank Borrowing Agreement | Puxin Education | ||||||||
Debt Instrument [Line Items] | ||||||||
Bank borrowing agreement amount | ¥ 660,000 | ¥ 408,600 | ||||||
Annual interest rate | 4.35% | 4.35% | ||||||
Bank borrowing term | 12 months | |||||||
Deposits amount | ¥ 348,090 | $ 50,000 | ||||||
Repayment of bank borrowings amount | ¥ 314,100 | ¥ 94,500 | ||||||
SPD Bank | Bank Borrowing Agreement | Puxin Education | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Annual interest rate | 5.22% | 5.22% | ||||||
Bank borrowing term | 12 months | |||||||
SPD Bank | Bank Borrowing Agreement | Puxin Education | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Annual interest rate | 4.27% | 4.27% | ||||||
Bank borrowing term | 6 months | |||||||
SPD Bank | Bank Borrowing Agreement | Puxin Education | Current Portion of Restricted Cash Deposits Pledged | ||||||||
Debt Instrument [Line Items] | ||||||||
Bank borrowing agreement amount | ¥ 500,000 | |||||||
Deposits amount | 514,496 | $ 78,850 | ||||||
SPD Bank | Bank Borrowing Agreement | Puxin Education | Buildings of Beijing Global Education Technology Co Ltd Pledged | ||||||||
Debt Instrument [Line Items] | ||||||||
Collateral amount | 160,000 | |||||||
Repayment of bank borrowings amount | ¥ 80,000 | |||||||
Xiamen International Bank | Bank Borrowing Agreement | Puxin Education | Buildings of Beijing Global Education Technology Co Ltd Pledged | ||||||||
Debt Instrument [Line Items] | ||||||||
Bank borrowing agreement amount | ¥ 41,000 | |||||||
Annual interest rate | 7.00% | |||||||
Bank borrowing term | 6 months |
Loans Payable to Third Parties
Loans Payable to Third Parties - Additional Information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥)Agreement | Dec. 31, 2020USD ($)Agreement | Dec. 31, 2019CNY (¥)Agreement | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||||
Advance from third parties | ¥ 15,670 | |||||
Repayments | ¥ 19,500 | ¥ 133,200 | ||||
Repayments | 250,900 | |||||
Rate of interests | 4.75% | |||||
Loan agreement term | 12 months | |||||
Percentage of equity interests pledged | 100.00% | |||||
Interest expense | 80,319 | $ 12,309 | ¥ 71,099 | ¥ 51,901 | ||
Amended Agreement One | ||||||
Debt Instrument [Line Items] | ||||||
Advance from third parties | ¥ 100,000 | |||||
Debt instrument, maturity date | May 31, 2021 | May 31, 2021 | ||||
Amended Agreement Two | ||||||
Debt Instrument [Line Items] | ||||||
Advance from third parties | ¥ 20,886 | |||||
Debt instrument, maturity date | Jun. 30, 2022 | Jun. 30, 2022 | ||||
Loan Agreement [Member] | Prepshine HK or Mr. Yunlong Sha [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt default long term debt payment amount | $ | $ 10,000 | |||||
Number Of Loan Agreement Defaults | Agreement | 1 | 1 | ||||
Puxin Education | ||||||
Debt Instrument [Line Items] | ||||||
Advance from third parties | ¥ 220,046 | ¥ 162,938 | ||||
Repayments | ¥ 42,052 | |||||
Percentage of equity interests pledged | 70.00% | 70.00% | ||||
Number of other loan agreements | Agreement | 6 | 6 | 3 | |||
Puxin Education | Loans | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | ¥ 39,336 | ¥ 20,451 | ¥ 2,433 | |||
Puxin Education | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Rate of interests | 0.00% | 0.00% | 0.00% | |||
Loan agreement term | 12 months | 12 months | 6 months | |||
Puxin Education | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Repayments | ¥ 2,501 | |||||
Rate of interests | 15.00% | 15.00% | 14.00% | |||
Loan agreement term | 36 months | 36 months | 12 months | |||
Percentage of equity interests pledged | 70.00% | 100.00% | 70.00% | |||
Puxin Education | Taiyuan Puxin Art, Shanghai GEDU, Mr. Yunlong Sha and Ms. Wenjing Song | ||||||
Debt Instrument [Line Items] | ||||||
Advance from third parties | ¥ 106,100 | ¥ 384,100 | ||||
Puxin Education | Taiyuan Puxin Art, Shanghai GEDU, Mr. Yunlong Sha and Ms. Wenjing Song | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Rate of interests | 7.00% | 7.00% | 7.00% | |||
Loan agreement term | 3 months | 3 months | 3 months | |||
Puxin Education | Taiyuan Puxin Art, Shanghai GEDU, Mr. Yunlong Sha and Ms. Wenjing Song | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Rate of interests | 9.20% | 9.20% | 9.50% | |||
Loan agreement term | 12 months | 12 months | 12 months |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Sep. 29, 2017CNY (¥)shares | Aug. 04, 2017CNY (¥)shares | Feb. 28, 2018CNY (¥) | Jun. 30, 2017CNY (¥) | Feb. 28, 2018CNY (¥) | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Feb. 28, 2018CNY (¥) | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Jun. 30, 2020 | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 29, 2017USD ($)$ / shares | Aug. 04, 2017USD ($)$ / shares |
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Loss on Extinguishment of Convertible Notes | ¥ (900) | |||||||||||||||||||
Net loss | ¥ (36,660) | $ (5,618) | ¥ (519,634) | ¥ (833,409) | ||||||||||||||||
Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Line of credit facility | ¥ 300,000 | |||||||||||||||||||
Huazhong | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Fair value of convertible note | ¥ 207,300 | ¥ 207,300 | ¥ 207,300 | |||||||||||||||||
Proceeds from convertible notes | 190,000 | |||||||||||||||||||
Huazhong | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Drawn down a principal amount | ¥ 190,000 | ¥ 190,000 | ¥ 190,000 | |||||||||||||||||
Annual interest rate | 12.00% | 12.00% | 12.00% | |||||||||||||||||
Debt instrument maturity term | 22 months | |||||||||||||||||||
Debt instrument extended maturity term | 36 months | |||||||||||||||||||
Debt instrument description | 58th month | 58th month | ||||||||||||||||||
Accrued unpaid interest rate per annum | 18.00% | |||||||||||||||||||
Lock-up period expiration term | 3 months | |||||||||||||||||||
Debt instrument principle amount | ¥ 193,400 | ¥ 193,400 | ¥ 193,400 | |||||||||||||||||
Warrants issued | ¥ 14,800 | |||||||||||||||||||
Loss (gain) on change in fair value of convertible notes | ¥ 7,100 | ¥ (14,800) | ||||||||||||||||||
Fair value of warrants | 0 | |||||||||||||||||||
Warrants exercised | ¥ 0 | |||||||||||||||||||
Warrant expiration period | 2019-03 | 2019-03 | ||||||||||||||||||
Huazhong | IPO | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Conversion rate of public offering price of the ordinary shares | 70.00% | 70.00% | 80.00% | 80.00% | 90.00% | 90.00% | ||||||||||||||
Huazhong | Maximum | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Percentage of internal rate of return | 30.00% | |||||||||||||||||||
Net loss | ¥ 950,000 | |||||||||||||||||||
Huazhong | Minimum | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Percentage of internal rate of return | 18.00% | |||||||||||||||||||
Haitong | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Loss (gain) on change in fair value of convertible notes | $ 0 | $ 0 | ¥ 42,792 | $ 6,714 | ||||||||||||||||
Haitong | IPO | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Debt instrument, convertible into ordinary shares | shares | 4,201,681 | |||||||||||||||||||
Debt instrument, convertible, conversion price | $ / shares | $ 5.95 | |||||||||||||||||||
Debt instrument, convertible, conversion ratio | 70 | |||||||||||||||||||
Haitong | IPO | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Conversion rate of public offering price of the ordinary shares | 60.00% | 65.00% | 70.00% | 70.00% | ||||||||||||||||
Annual interest rate | 12.00% | 12.00% | ||||||||||||||||||
Debt instrument maturity term | 5 years | |||||||||||||||||||
Debt instrument principle amount | ¥ 168,180 | $ 25,000 | ||||||||||||||||||
CICC ALPHA | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Debt instrument, convertible into ordinary shares | shares | 3,865,547 | |||||||||||||||||||
Debt instrument, convertible, conversion price | $ / shares | $ 5.95 | |||||||||||||||||||
Debt instrument, convertible, conversion ratio | 70 | |||||||||||||||||||
CICC ALPHA | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Conversion rate of public offering price of the ordinary shares | 70.00% | 55.00% | ||||||||||||||||||
Annual interest rate | 15.00% | 15.00% | ||||||||||||||||||
Debt instrument maturity term | 4 years | |||||||||||||||||||
Debt instrument principle amount | ¥ 153,026 | $ 23,000 | ||||||||||||||||||
Loss (gain) on change in fair value of convertible notes | 0 | 0 | ¥ 52,368 | $ 8,217 | ||||||||||||||||
Fair value of derivative liabilities | ¥ 172,235 | 63,942 | $ 24,740 | $ 9,300 | ||||||||||||||||
Changes in fair value of derivative liabilities | ¥ 20,917 | 2,939 | ¥ 104,589 | $ 15,440 | ¥ 44,288 | $ 6,500 | ||||||||||||||
CICC ALPHA | Maximum | Convertible Debt | Founder Awards | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Percentage of internal rate of return | 30.00% | |||||||||||||||||||
CICC ALPHA | Minimum | Convertible Debt | Floor Return | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Percentage of internal rate of return | 25.00% | |||||||||||||||||||
Mr. Yunlong Sha | CICC ALPHA | Convertible Debt | Floor Return | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Amount contibuted by founder to meet the shortfall | ¥ 293,861 | $ 41,945 | ||||||||||||||||||
Number of equity shares purchased to settle compensation shortfall | shares | 3,865,547 | 3,865,547 |
Promissory Notes - Additional I
Promissory Notes - Additional Information (Details) ¥ in Thousands, $ in Thousands | Aug. 04, 2017CNY (¥) | Feb. 28, 2018 | Feb. 28, 2018 | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Aug. 04, 2021 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 04, 2019 | Aug. 04, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Recognized interest expense | ¥ 80,319 | $ 12,309 | ¥ 71,099 | ¥ 51,901 | ||||||||
Promissory Note | Haitong | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument principle amount | ¥ 168,180 | $ 25,000 | ||||||||||
Annual interest rate | 10.00% | 8.00% | ||||||||||
Debt instrument maturity term | 2 years | |||||||||||
Recognized interest expense | 17,308 | 37,379 | ¥ 32,026 | |||||||||
Promissory Note | Amendment of Convertible Notes | Huazhong | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Annual interest rate | 12.00% | 12.00% | ||||||||||
Debt instrument maturity term | 22 months | |||||||||||
Debt instrument extended maturity term | 36 months | |||||||||||
Warrant expiration period | 2019-03 | |||||||||||
Promissory Note | Amended Notes Maturing On August 4, 2021 [Member] | Haitong | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument principle amount | ¥ 87,023 | $ 12,500 | ||||||||||
Debt instrument, maturity date | Aug. 4, 2021 | Aug. 4, 2021 | ||||||||||
Promissory Note | Third Anniversary | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument principle amount | ¥ 87,023 | $ 12,500 | ||||||||||
Debt instrument, maturity date | Aug. 4, 2020 | Aug. 4, 2020 | Aug. 4, 2020 | |||||||||
Promissory Note | Fourth Anniversary | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument principle amount | ¥ 87,022 | $ 12,500 | ||||||||||
Debt instrument, maturity date | Aug. 4, 2021 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Key Assumptions Used in Valuation of Derivative Liabilities (Details) - Derivative Liabilities | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Exit period | Dec. 31, 2019 | Dec. 31, 2019 |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Exit period | Jun. 30, 2020 | Dec. 31, 2020 |
Volatility | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 92 | 77 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value on Recurring Basis - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ¥ 48,497 | ¥ 256,763 |
Restricted cash | 540,310 | 386,267 |
Promissory notes | 163,125 | 174,045 |
Derivative liabilities | 172,235 | |
Total | 751,932 | 989,310 |
Quoted Prices in Active Market for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 48,497 | 256,763 |
Restricted cash | 540,310 | 386,267 |
Promissory notes | 0 | |
Derivative liabilities | ||
Total | 588,807 | 643,030 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Promissory notes | 163,125 | 174,045 |
Derivative liabilities | ||
Total | ¥ 163,125 | 174,045 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Restricted cash | ||
Promissory notes | ||
Derivative liabilities | 172,235 | |
Total | ¥ 172,235 |
Fair Value Measurement - Sche_3
Fair Value Measurement - Schedule of Reconciliation of the Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) - Derivative Liabilities - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | ¥ 172,235 | ¥ 63,942 |
Changes in fair value | 20,917 | 104,589 |
Extinguishment of derivative liabilities | (194,265) | |
Exchange rate effect | 1,113 | 3,704 |
Ending Balance | ¥ 172,235 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Nov. 30, 2018shares | Nov. 20, 2018$ / shares | Mar. 31, 2019$ / sharesshares | Mar. 31, 2019¥ / sharesshares | Mar. 31, 2018$ / sharesshares | Mar. 31, 2018¥ / sharesshares | Dec. 31, 2014shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2018USD ($) | Feb. 28, 2018shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Weighted average grant date fair value | ¥ / shares | ¥ 20.56 | ¥ 24.20 | ||||||||||
Stock options exercised, total intrinsic value | ¥ | ¥ 7,298 | ¥ 255,728 | ¥ 681 | |||||||||
Fair value of options vested | ¥ | 25,911 | 220,040 | 302,331 | |||||||||
Share-based compensation expense | ¥ | 28,023 | ¥ 230,440 | 345,503 | |||||||||
Unrecognized compensation of stock options | ¥ | ¥ 30,874 | |||||||||||
Unrecognized stock-based compensation expense, period for recognition | 2 years 5 months 23 days | |||||||||||
Restricted Shares | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Share-based compensation expense | ¥ 29,454 | $ 4,241 | ||||||||||
Granted shares | 1,631,200 | |||||||||||
Fully vested and outstanding shares in period | 6 months | |||||||||||
Restricted shares, grant-date value | $ / shares | $ 2.6 | |||||||||||
2014 Great Talent Plan | Maximum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Aggregate number of shares authorized for issuance | 158,400,000 | |||||||||||
Stock option, expiration period | 7 years | |||||||||||
Stock vesting period | 5 years | |||||||||||
2014 Great Talent Plan | Minimum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Stock vesting period | 0 years | |||||||||||
2018 Grand Talent Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Stock vesting period | 16,400,000 | 16,400,000 | ||||||||||
Stock vesting period | (per share) | $ 7.78 | ¥ 48.78 | ||||||||||
2018 Grand Talent Plan | Maximum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Aggregate number of shares authorized for issuance | 16,400,000 | |||||||||||
Stock option, expiration period | 10 years | 10 years | ||||||||||
Stock vesting period | 6 years | 6 years | ||||||||||
2018 Grand Talent Plan | Minimum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Stock vesting period | 0 years | 0 years | ||||||||||
2019 Noble Talent Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Stock vesting period | 8,879,986 | 8,879,986 | ||||||||||
Stock vesting period | (per share) | $ 0.001 | ¥ 0.007 | ||||||||||
2019 Noble Talent Plan | Maximum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Aggregate number of shares authorized for issuance | 8,879,986 | 8,879,986 | ||||||||||
Stock option, expiration period | 7 years | 7 years | ||||||||||
Stock vesting period | 2 months | 2 months |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions used to Determined the Estimated Fair Value of Options using the Binomial Option Pricing Model (Details) - ¥ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.51% | 3.40% |
Volatility | 55.00% | 46.00% |
Dividend yield | ||
Exercise multiples | ¥ 2.8 | |
Life of options | 7 years | 7 years |
Fair value of underlying ordinary shares | ¥ 20.57 | ¥ 49.67 |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise multiples | 2.2 | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise multiples | ¥ 2.8 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Options Activity (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of options, options outstanding | 21,646,232 | |
Number of options, granted | ||
Option exercised, shares | 428,182 | |
Number of options, forfeited | 1,317,461 | |
Number of options, options outstanding | 19,900,589 | 21,646,232 |
Number of options, options vested and expected to vest | 19,900,589 | |
Number of options, option exercisable | 15,948,198 | |
Weighted average exercise price, options outstanding | ¥ 37.78 | |
Weighted average exercise price, granted | ||
Weighted average exercise price, exercised | 3.42 | |
Weighted average exercise price, forfeited | 40.53 | |
Weighted average exercise price, options outstanding | 38.22 | ¥ 37.78 |
Weighted average exercise price, options vested and expected to vest | 38.22 | |
Weighted average exercise price, option exercisable | ¥ 36.97 | |
Weighted average remaining contractual term (years), options outstanding | 3 years 9 months 14 days | 4 years 9 months 7 days |
Weighted average remaining contractual term (years), options vested and expected to vest | 3 years 9 months 14 days | |
Weighted average remaining contractual term (years), option exercisable | 3 years 8 months 15 days | |
Aggregate intrinsic value, options outstanding | ¥ 123,239 | |
Aggregate intrinsic value, options outstanding | 67,901 | ¥ 123,239 |
Aggregate intrinsic value, options vested and expected to vest | 67,901 | |
Aggregate intrinsic value, option exercisable | ¥ 64,135 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Thousands | 12 Months Ended | 33 Months Ended | 36 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019CNY (¥) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2020HKD ($) | Dec. 31, 2021CNY (¥) | |
Income Taxes [Line Items] | |||||||
Effective income tax rate | 25.00% | 25.00% | 25.00% | ||||
Net operating loss carried forward | ¥ 949,175,000 | ||||||
Unrecognized tax benefits | 0 | ||||||
Interest and penalties related to potential underpaid income tax expenses | 0 | ||||||
Increases (decreases) in unrecognized tax benefits in next 12 months | ¥ 0 | ||||||
NEW High And New Technology Enterprise | Beijing GEDU | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 15.00% | 15.00% | 15.00% | ||||
High and New Technology Enterprise | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 15.00% | ||||||
High and New Technology Enterprise | Beijing Meikaida Education Technology Co., Ltd | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | |||
Scenario Forecast | Small Low-Profit Enterprises | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 20.00% | ||||||
Annual taxable income | ¥ 1,000,000 | ||||||
Percentage of taxable income, less than one thousand | 25.00% | ||||||
Percentage of taxable income, more than one thousand but less than three thousand | 50.00% | ||||||
Scenario Forecast | Small Low-Profit Enterprises | Minimum | |||||||
Income Taxes [Line Items] | |||||||
Annual taxable income | ¥ 1,000,000 | ||||||
Scenario Forecast | Small Low-Profit Enterprises | Maximum | |||||||
Income Taxes [Line Items] | |||||||
Annual taxable income | ¥ 3,000,000 | ||||||
Hong Kong | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 16.50% | ||||||
Effective income tax profit | $ | $ 2,000 | ||||||
Hong Kong | First HK$2,000 of Assessable Profit | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 8.25% | ||||||
Hong Kong | Profit Exceeding HK$2,000 | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 16.50% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Current and Deferred Income Tax Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expenses | ¥ 20,561 | ¥ 20,118 | ¥ 14,265 | |
Deferred tax expenses | (11,366) | $ (1,742) | (7,930) | (8,943) |
Income tax expenses net | ¥ 9,195 | $ 1,409 | ¥ 12,188 | ¥ 5,322 |
Income Taxes - Summary of Princ
Income Taxes - Summary of Principle Components of Deferred Tax (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Accrued expenses | ¥ 33,946 | ¥ 42,443 |
Net operating loss carrying forwards | 229,332 | 222,722 |
Total deferred tax assets | 263,278 | 265,165 |
Less: Valuation allowance | (259,756) | (262,966) |
Deferred tax assets, net | 3,522 | 2,199 |
Deferred tax liabilities: | ||
Acquired intangible assets | 71,674 | 81,969 |
Total deferred tax liabilities | ¥ 71,674 | ¥ 81,969 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate and Statutory Income Tax Rate (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | ¥ (27,465) | ¥ (507,446) | ¥ (828,087) | |
Income tax benefit computed at an applicable tax rate of 25% | (6,866) | (126,862) | (207,022) | |
Effect of non-deductible expenses | 33,462 | 57,888 | 108,479 | |
Effect of research and development super-deduction | (9,473) | (6,672) | (1,970) | |
Effect of income tax rate differences in jurisdictions other than PRC | (3,075) | 30,189 | 38,490 | |
Effect of preferential tax rate | (14,228) | (12,211) | (554) | |
Change in valuation allowance | 9,375 | 69,856 | 67,899 | |
Income tax expenses net | ¥ 9,195 | $ 1,409 | ¥ 12,188 | ¥ 5,322 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Effective Tax Rate and Statutory Income Tax Rate (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Applicable tax rate | 25.00% | 25.00% | 25.00% |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Thousands | Feb. 05, 2018USD ($)shares | Aug. 04, 2017USD ($)shares | Mar. 17, 2017USD ($)shares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018CNY (¥)shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2020shares | Dec. 31, 2019shares |
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 99,990,000 | |||||||
Ordinary shares issued for aggregate consideration | $ | $ 3,000 | $ 5,000 | $ 4 | |||||
Proceeds through IPO | $ 130,907,000 | ¥ 837,541 | ||||||
IPO | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 16,560,000 | 16,560,000 | ||||||
Ordinary shares issued par value per share | $ / shares | $ 0.00005 | |||||||
IPO related expense | ¥ | ¥ 38,711 | |||||||
IPO related expense paid | ¥ | ¥ 38,333 | |||||||
IPO | ADS | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 8,280,000 | 8,280,000 | ||||||
Long bright Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 8,524 | |||||||
Gao & Tianyi Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 820 | |||||||
Pution Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 492 | |||||||
Prospect Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 164 | |||||||
Puxin Nova Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 21,761,652 | |||||||
Stary International Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 3,336,744 | |||||||
Long wit Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 40,000 | |||||||
Long belief Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 8,200,000 | |||||||
Number of ordinary shares issued but not outstanding | 8,150,652 | 8,150,652 | ||||||
Long faith Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 1,640,000 | |||||||
Long favor Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Ordinary shares issued | 17,103,724 | |||||||
Number of ordinary shares issued but not outstanding | 5,849,104 | 6,450,766 | ||||||
Long favor Limited and Long belief Limited | ||||||||
Class Of Stock [Line Items] | ||||||||
Number of ordinary shares owned by shareholders whose rights are unconditionally waived until transferred | 25,303,724 | |||||||
CICC ALPHA | IPO | ||||||||
Class Of Stock [Line Items] | ||||||||
Debt conversion, converted instrument, ordinary shares issued | 3,865,547 | 3,865,547 | ||||||
Debt instrument, convertible, conversion price | $ / shares | $ 5.95 | |||||||
Debt conversion, converted instrument, percentage of sale of stock price per share | 70.00% | 70.00% | ||||||
Haitong | IPO | ||||||||
Class Of Stock [Line Items] | ||||||||
Debt conversion, converted instrument, ordinary shares issued | 4,201,681 | 4,201,681 | ||||||
Debt instrument, convertible, conversion price | $ / shares | $ 5.95 | |||||||
Debt conversion, converted instrument, percentage of sale of stock price per share | 70.00% | 70.00% | ||||||
Haitong | IPO | Convertible Redeemable Preferred Shares | ||||||||
Class Of Stock [Line Items] | ||||||||
Debt conversion, converted instrument, ordinary shares issued | 11,917,880 | 11,917,880 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator used in basic and diluted net loss per share: | ||||
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (32,206) | $ (4,935) | ¥ (518,533) | ¥ (833,411) |
Shares (denominator): | ||||
Weighted average common shares outstanding used in computing basic and diluted net loss per share (Note 1) | 174,156,247 | 174,156,247 | 170,903,317 | 144,157,947 |
Net loss per share basic and diluted | (per share) | ¥ (0.18) | $ (0.03) | ¥ (3.03) | ¥ (5.78) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Loss Per Share [Abstract] | |||
Incremental weighted average number of ordinary shares not considered in computation of diluted net loss per share | 19,900,589 | 21,646,232 | 18,420,993 |
Employee Defined Contribution_2
Employee Defined Contribution Plan - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employee benefits expense incurred | ¥ 118,523 | ¥ 210,236 | ¥ 184,525 |
Related Party Transaction - Sig
Related Party Transaction - Significant Balances Between the Group and its Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Related Party Transaction [Line Items] | |||
Amounts due to related parties, non-current | ¥ 170,393 | $ 26,114 | |
Amounts due to related parties, current | ¥ 1,451 | ||
Ms. Wenjing Song | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties, non-current | 164 | ||
Amounts due to related parties, current | 254 | ||
CEO and the Chairman of the Board of Directors | Mr. Yunlong Sha | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties, non-current | ¥ 170,229 | ||
Amounts due to related parties, current | ¥ 1,197 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Interest expense related party | ¥ 1,626 | ¥ 0 | ¥ 16,294 |
Leases - Additional Information
Leases - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Total operating lease, expense | ¥ 389,197 | ¥ 378,691 | |
Total rental expense for operating leases | ¥ 389,197 | ¥ 378,691 | ¥ 332,574 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities,operating cash flows used in operating leases | ¥ 361,432 | ¥ 373,230 |
Right-of-use assets obtained in exchange for new lease obligations, operating leases | ¥ 315,751 | ¥ 643,722 |
Weighted average remaining lease term, operating leases | 4 years 7 months 17 days | 4 years 7 months 2 days |
Weighted average discount rate, operating leases | 7.53% | 7.46% |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Annual Undiscounted Cash Flows (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Leases [Abstract] | |
2021 | ¥ 329,673 |
2022 | 243,799 |
2023 | 181,106 |
2024 | 120,543 |
2025 | 84,251 |
Thereafter | 132,094 |
Less imputed interest | 150,898 |
Total | ¥ 940,568 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥)Agreementshares | Dec. 31, 2019CNY (¥)Agreement | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 29, 2017USD ($) | Aug. 04, 2017USD ($) | |
Commitments And Contingencies [Line Items] | ||||||
Percentage of equity interests pledged | 100.00% | 100.00% | ||||
Puxin Education | ||||||
Commitments And Contingencies [Line Items] | ||||||
Percentage of equity interests pledged | 70.00% | 70.00% | ||||
Number of other loan agreements | Agreement | 6 | 3 | ||||
Taiyuan Puxin Arts, Shanghai GEDU, Mr. Yunlong Sha and Ms. Wenjing Song as Joint Guarantors | ||||||
Commitments And Contingencies [Line Items] | ||||||
Debt instrument principle amount | ¥ 384,100 | |||||
Mr. Yunlong Sha as Guarantor | ||||||
Commitments And Contingencies [Line Items] | ||||||
Debt instrument principle amount | ¥ 220,046 | |||||
Mr. Yunlong Sha as Guarantor | Puxin Education | ||||||
Commitments And Contingencies [Line Items] | ||||||
Debt instrument principle amount | ¥ 106,100 | 162,938 | ||||
SPD Bank | ||||||
Commitments And Contingencies [Line Items] | ||||||
Debt instrument principle amount | 408,600 | |||||
Deposits amount | 348,090 | $ 50,000 | ||||
Haitong | ||||||
Commitments And Contingencies [Line Items] | ||||||
Number of pledged shares mortgaged | shares | 9,589,566 | |||||
Puxin Education | ||||||
Commitments And Contingencies [Line Items] | ||||||
Number of other loan agreements | Agreement | 6 | |||||
Puxin Education | SPD Bank | Bank Borrowing Agreement | ||||||
Commitments And Contingencies [Line Items] | ||||||
Debt instrument principle amount | ¥ 660,000 | |||||
Puxin Education | SPD Bank | Current Portion of Restricted Cash Deposits Pledged | Bank Borrowing Agreement | ||||||
Commitments And Contingencies [Line Items] | ||||||
Deposits amount | 514,496 | $ 78,850 | ||||
Dalian Pude | ||||||
Commitments And Contingencies [Line Items] | ||||||
Percentage of equity interests pledged | 100.00% | |||||
Guizhou Puxintian | ||||||
Commitments And Contingencies [Line Items] | ||||||
Percentage of equity interests pledged | 100.00% | |||||
Long bright Limited | Haitong | Puxin Limited | ||||||
Commitments And Contingencies [Line Items] | ||||||
Equity interests mortgaged | 18.00% | |||||
Long bright Limited | CICC ALPHA | Puxin Limited | ||||||
Commitments And Contingencies [Line Items] | ||||||
Equity interests mortgaged | 8.30% | |||||
Mr. Yunlong Sha | CICC ALPHA | Puxin Education | ||||||
Commitments And Contingencies [Line Items] | ||||||
Equity interests mortgaged | 4.15% | |||||
Puxin Education | SPD Bank | Bank Borrowing Agreement | ||||||
Commitments And Contingencies [Line Items] | ||||||
Debt instrument principle amount | 660,000 | 408,600 | ||||
Deposits amount | ¥ 348,090 | $ 50,000 | ||||
Puxin Education | Current Portion of Restricted Cash Deposits Pledged | SPD Bank | Bank Borrowing Agreement | ||||||
Commitments And Contingencies [Line Items] | ||||||
Debt instrument principle amount | 500,000 | |||||
Deposits amount | 514,496 | $ 78,850 | ||||
Puxin Education | Buildings of Beijing Global Education Technology Co Ltd Pledged | SPD Bank | Bank Borrowing Agreement | ||||||
Commitments And Contingencies [Line Items] | ||||||
Collateral amount | ¥ 160,000 | |||||
Convertible Debt | Haitong | ||||||
Commitments And Contingencies [Line Items] | ||||||
Debt instrument principle amount | $ | $ 25,000 | |||||
Convertible Debt | CICC ALPHA | ||||||
Commitments And Contingencies [Line Items] | ||||||
Debt instrument principle amount | $ | $ 23,000 | |||||
Promissory Note | Haitong | ||||||
Commitments And Contingencies [Line Items] | ||||||
Debt instrument principle amount | $ | $ 25,000 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Revenue and Gross Profit by Segment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Net revenues | ¥ 2,903,915 | $ 445,044 | ¥ 3,103,958 | ¥ 2,228,117 |
Cost of revenues | 1,558,596 | 1,629,447 | 1,242,889 | |
Gross profit | 1,345,319 | $ 206,179 | 1,474,511 | 985,228 |
K-12 Tutoring Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,206,273 | 1,943,854 | 1,182,397 | |
Cost of revenues | 1,205,656 | 1,055,205 | 706,917 | |
Gross profit | 1,000,617 | 888,649 | 475,480 | |
Study Abroad Tutoring Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 697,642 | 1,160,104 | 1,045,720 | |
Cost of revenues | 352,940 | 574,242 | 535,972 | |
Gross profit | ¥ 344,702 | ¥ 585,862 | ¥ 509,748 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Net Assets [Abstract] | |||
Percentage of annual appropriation after tax profit for general reserve | 10.00% | ||
Percentage of general reserve required as registered capital | 50.00% | ||
Subsidiary contribution to general reserve | ¥ 906 | ¥ 510 | ¥ 1,443 |
Private schools required reasonable returns, contribution to reserve, percent of after-tax income before payments of dividend | 25.00% | ||
Private schools not required reasonable returns, contribution to reserve, minimum percent of annual increase of net assets | 25.00% | ||
Amount contributed to reserve for private schools | ¥ 2,559 | ¥ 2,874 | ¥ 3,152 |
Aggregate amount of paid-in capital and statutory reserves not available for distribution | ¥ 472,750 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | ||
Mar. 31, 2021CNY (¥) | Apr. 30, 2021CNY (¥) | Mar. 31, 2021USD ($)$ / shares | |
American Depositary Shares [Member] | |||
Subsequent Event [Line Items] | |||
Authorized share repurchase program | $ | $ 20,000 | ||
Share repurchase program expiration date | Mar. 31, 2022 | ||
Convertible Note Purchase Agreements With Purchasers | |||
Subsequent Event [Line Items] | |||
Convertible note purchase agreements, amount | ¥ 580,725 | $ 89,000 | |
Annual interest rate | 3.00% | 3.00% | |
Convertible Note Purchase Agreements With Purchasers | American Depositary Shares [Member] | |||
Subsequent Event [Line Items] | |||
Conversion price | $ / shares | $ 8 | ||
Convertible Debt | Convertible Note Purchase Agreements With Purchasers | |||
Subsequent Event [Line Items] | |||
Percentage of repayment of outstanding principal amount and accrued interest of convertible note | 100.00% | ||
Purong Information | Mr. Yunlong Sha | Credit Agreement | |||
Subsequent Event [Line Items] | |||
Line of credit facility | ¥ | ¥ 200,000 |
Condensed Financial Informati_2
Condensed Financial Information of Parent Company - Balance Sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets | ||||
Cash and cash equivalents | ¥ 48,497 | $ 7,432 | ¥ 256,763 | ¥ 778,006 |
Prepaid expenses and other current assets | 141,894 | 21,746 | 117,148 | |
Loan receivables | 222,895 | 34,160 | 191,230 | |
Total current assets | 942,992 | 144,519 | 927,992 | |
TOTAL ASSETS | 4,617,594 | 707,676 | 4,707,055 | |
Current liabilities | ||||
Accrued expenses and other current liabilities | 784,894 | 120,290 | 983,715 | |
Promissory note, current portion | 163,125 | 25,000 | 87,023 | |
Total current liabilities | 3,144,353 | 481,893 | 3,308,361 | |
Non-current liabilities | ||||
Promissory note, non-current portion | 87,022 | |||
Derivative liabilities | 172,235 | |||
TOTAL LIABILITIES | 4,198,471 | 643,444 | 4,446,997 | |
SHAREHOLDERS' EQUITY | ||||
Ordinary shares (par value of USD0.00005 per share; 1,000,000,000 and 1,000,000,000 shares authorized, 188,627,228 and 188,653,468 shares issued and 174,025,810 and 174,453,992 shares outstanding as of December 31, 2019 and 2020, respectively) | 62 | 9 | 62 | |
Additional paid-in capital | 2,396,406 | 367,265 | 2,175,652 | |
Statutory reserve | 11,444 | 1,754 | 7,979 | |
Accumulated other comprehensive income | 43,711 | 6,699 | 68,707 | |
Accumulated deficit | (2,026,891) | (310,635) | (1,991,220) | |
Total Puxin Limited shareholders' equity | 424,732 | 65,092 | 261,180 | |
TOTAL LIABILITIES AND TOTAL SHAREHOLDERS' EQUITY | 4,617,594 | 707,676 | 4,707,055 | |
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 3,103 | |||
Amounts due from subsidiaries and VIEs | 1,061,832 | 162,733 | 1,099,759 | |
Prepaid expenses and other current assets | 47,200 | 7,234 | 11,448 | |
Loan receivables | 207,225 | 31,759 | 191,230 | |
Total current assets | 1,316,257 | 201,726 | 1,305,540 | |
TOTAL ASSETS | 1,316,257 | 201,726 | 1,305,540 | |
Current liabilities | ||||
Accrued expenses and other current liabilities | 6,804 | 1,044 | 7,258 | |
Promissory note, current portion | 163,125 | 25,000 | 87,023 | |
Loan payable to a third party | 65,250 | 10,000 | ||
Total current liabilities | 235,179 | 36,044 | 94,281 | |
Non-current liabilities | ||||
Promissory note, non-current portion | 87,022 | |||
Derivative liabilities | 172,235 | |||
Investments deficit in subsidiaries and VIEs | 656,346 | 100,590 | 690,822 | |
TOTAL LIABILITIES | 891,525 | 136,634 | 1,044,360 | |
SHAREHOLDERS' EQUITY | ||||
Ordinary shares (par value of USD0.00005 per share; 1,000,000,000 and 1,000,000,000 shares authorized, 188,627,228 and 188,653,468 shares issued and 174,025,810 and 174,453,992 shares outstanding as of December 31, 2019 and 2020, respectively) | 62 | 9 | 62 | |
Additional paid-in capital | 2,396,406 | 367,265 | 2,175,652 | |
Statutory reserve | 11,444 | 1,754 | 7,979 | |
Accumulated other comprehensive income | 43,711 | 6,699 | 68,707 | |
Accumulated deficit | (2,026,891) | (310,635) | (1,991,220) | |
Total Puxin Limited shareholders' equity | 424,732 | 65,092 | 261,180 | |
TOTAL LIABILITIES AND TOTAL SHAREHOLDERS' EQUITY | ¥ 1,316,257 | $ 201,726 | ¥ 1,305,540 |
Condensed Financial Informati_3
Condensed Financial Information of Parent Company - Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Ordinary shares, par value | $ 0.00005 | $ 0.00005 |
Ordinary shares, authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, issued | 188,653,468 | 188,627,228 |
Ordinary shares, outstanding | 174,453,992 | 174,025,810 |
Parent Company | ||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 |
Ordinary shares, authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, issued | 188,653,468 | 188,627,228 |
Ordinary shares, outstanding | 174,453,992 | 174,025,810 |
Condensed Financial Informati_4
Condensed Financial Information of Parent Company - Statements of Operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
General and administrative expenses | ¥ (469,163) | $ (71,902) | ¥ (748,259) | ¥ (775,883) |
Total operating expenses | (1,521,784) | (233,223) | (1,832,054) | (1,623,971) |
Interest expense | (80,319) | (12,309) | (71,099) | (51,901) |
Interest income | 46,150 | 7,073 | 25,542 | 2,826 |
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | (20,917) | (3,206) | (104,589) | (131,748) |
Loss before income taxes | (27,465) | (4,209) | (507,446) | (828,087) |
Net loss attributable to ordinary shareholders of Puxin Limited | (32,206) | (4,935) | (518,533) | (833,411) |
Parent Company | ||||
General and administrative expenses | (191) | (28) | (12,102) | (8,728) |
Total operating expenses | (191) | (28) | (12,102) | (8,728) |
Interest expense | (17,244) | (2,643) | (15,250) | (13,218) |
Interest income | 37,092 | 5,685 | 10,985 | 2,104 |
Foreign exchange (loss) gain | 18,885 | 2,894 | (3,753) | (10,358) |
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | (20,917) | (3,206) | (104,589) | (124,648) |
Equity in loss of subsidiaries and VIEs | (49,831) | (7,637) | (393,824) | (678,563) |
Loss before income taxes | (32,206) | (4,935) | (518,533) | (833,411) |
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (32,206) | $ (4,935) | ¥ (518,533) | ¥ (833,411) |
Condensed Financial Informati_5
Condensed Financial Information of Parent Company - Consolidated Statements of Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Net loss | ¥ (32,206) | $ (4,935) | ¥ (518,533) | ¥ (833,411) |
Other comprehensive loss, net of tax of nil: | ||||
Change in cumulative foreign currency translation adjustments | (24,996) | (3,831) | 493 | 52,496 |
Total comprehensive loss attributable to Puxin Limited | (57,202) | (8,766) | (518,040) | (780,915) |
Parent Company | ||||
Net loss | (32,206) | (4,935) | (518,533) | (833,411) |
Other comprehensive loss, net of tax of nil: | ||||
Change in cumulative foreign currency translation adjustments | (24,996) | (3,831) | 493 | 52,496 |
Total comprehensive loss attributable to Puxin Limited | ¥ (57,202) | $ (8,766) | ¥ (518,040) | ¥ (780,915) |
Condensed Financial Informati_6
Condensed Financial Information of Parent Company - Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | ¥ (36,660) | $ (5,618) | ¥ (519,634) | ¥ (833,409) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 20,917 | 3,206 | 104,589 | 131,748 | ||
Changes in operating assets and liabilities: | ||||||
Prepaid expenses and other current assets | 10,641 | 1,631 | 23,884 | (48,772) | ||
Accrued expenses and other current liabilities | (39,947) | (6,121) | 138,173 | (10,267) | ||
Net cash (used in) generated from operating activities | (203,330) | (31,161) | 24,684 | (92,905) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Net cash used in investing activities | (84,316) | (12,922) | (411,309) | (156,917) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from IPO (net of IPO expenses) | ¥ 837,541 | $ 130,907 | ||||
Net cash generated from financing activities | 256,246 | 39,270 | 204,246 | 831,506 | ||
Effect of exchange rate changes | (22,823) | (3,498) | 6,432 | 48,131 | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | (54,223) | (8,311) | (175,947) | 629,815 | ||
Cash and cash equivalents, and restricted cash at beginning of the year | 643,030 | 98,549 | 818,977 | 189,162 | ||
Cash and cash equivalents, and restricted cash at end of the year | 588,807 | 90,238 | 643,030 | 818,977 | ||
Parent Company | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | (32,206) | (4,935) | (518,533) | (833,411) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
Equity in loss of subsidiaries and VIEs | 49,831 | 7,637 | 393,824 | 678,563 | ||
Foreign exchange loss (gain) | (18,885) | (2,894) | 3,753 | 10,358 | ||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 20,917 | 3,206 | 104,589 | 124,648 | ||
Changes in operating assets and liabilities: | ||||||
Prepaid expenses and other current assets | (37,145) | (5,693) | (10,449) | |||
Accrued expenses and other current liabilities | 1,409 | (5,230) | ||||
Net cash (used in) generated from operating activities | (17,488) | (2,679) | (25,407) | (25,072) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Loans to subsidiaries and VIEs | (23,775) | (3,644) | (221,418) | (396,495) | ||
Loan to a third party | (27,993) | (4,290) | (191,230) | |||
Net cash used in investing activities | (51,768) | (7,934) | (412,648) | (396,495) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from IPO (net of IPO expenses) | 811,001 | |||||
Loan from a third party | 65,250 | 10,000 | ||||
Net cash generated from financing activities | 65,250 | 10,000 | 811,001 | |||
Effect of exchange rate changes | 903 | 137 | 3,545 | 43,773 | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | (3,103) | (476) | (434,510) | 433,207 | ||
Cash and cash equivalents, and restricted cash at beginning of the year | ¥ 3,103 | $ 476 | 437,613 | 4,406 | ||
Cash and cash equivalents, and restricted cash at end of the year | ¥ 3,103 | ¥ 437,613 |
Condensed Financial Informati_7
Condensed Financial Information of Parent Company - Additional Information (Details) | Dec. 31, 2020 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Renminbi ("RMB") to per one U.S. dollar exchange rate | 6.5250 |