Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document And Entity Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Puxin Ltd |
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 | Floor 16, Chuangfu Mansion |
Entity Address, Address Line Two | No. 18 Danling Street, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100080 |
Entity Address, Country | CN |
Entity Common Stock, Shares Outstanding | 174,025,810 |
Document Accounting Standard | U.S. GAAP |
Business Contact [Member] | |
Document And Entity Information [Line Items] | |
Entity Address, Address Line One | Floor 16, Chuangfu Mansion |
Entity Address, Address Line Two | No. 18 Danling 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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 256,763 | $ 36,882 | ¥ 778,006 |
Restricted cash, current portion | 349,540 | 50,208 | |
Inventories | 13,311 | 1,912 | 9,659 |
Prepaid expenses and other current assets | 117,148 | 16,827 | 128,638 |
Loan receivable | 191,230 | 27,468 | |
Total current assets | 927,992 | 133,297 | 916,303 |
Non-current assets | |||
Restricted cash, non-current portion | 36,727 | 5,276 | 40,971 |
Operating lease right-of-use assets | 1,045,941 | 150,240 | |
Property, plant and equipment, net | 298,719 | 42,908 | 248,801 |
Intangible assets | 264,540 | 37,999 | 218,978 |
Goodwill | 2,055,922 | 295,315 | 1,243,817 |
Deferred tax assets | 2,199 | 316 | 3,456 |
Rental deposit | 75,015 | 10,775 | 64,693 |
TOTAL ASSETS | 4,707,055 | 676,126 | 2,737,019 |
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 RMB411,196 and RMB930,674 as of December 31, 2018 and 2019, respectively) | 983,715 | 141,302 | 436,123 |
Income tax payable of the consolidated VIE without recourse to the Group | 21,248 | 3,052 | 15,755 |
Deferred revenue, current portion (including deferred revenue, current portion of the consolidated VIE without recourse to the Group of RMB862,043 and RMB1,195,723 as of December 31, 2018 and 2019, respectively) | 1,205,609 | 173,175 | 876,861 |
Operating lease liabilities, current portion (including operating lease liabilities, current portion of the consolidated VIE without recourse to the Group of RMB nil and RMB275,893 as of December 31, 2018 and 2019, respectively) | 276,877 | 39,771 | |
Amounts due to related parties (including amounts due to related parties of the consolidated VIE without recourse to the Group of RMB3,199 and RMB254 as of December 31, 2018 and 2019, respectively) | 1,451 | 208 | 54,493 |
Bank borrowings of the consolidated VIE without recourse to the Group | 318,600 | 45,764 | 106,600 |
Loans payable to third parties (including loans payable to third parties of the consolidated VIE without recourse to the Group of RMB79,500 and RMB292,952 as of December 31, 2018 and 2019, respectively) | 413,838 | 59,444 | 79,500 |
Promissory notes, current portion (including promissory notes, current portion of the consolidated VIE without recourse to the group of RMB190,000 and RMB nil as of December 31, 2018 and 2019, respectively) | 87,023 | 12,500 | 361,888 |
Total current liabilities | 3,308,361 | 475,216 | 1,931,220 |
Non-current liabilities | |||
Deferred revenue, non-current portion of the consolidated VIE without recourse to the Group | 101,372 | 14,561 | 121,191 |
Deferred tax liabilities of the consolidated VIE without recourse to the Group | 81,969 | 11,774 | 71,031 |
Franchise deposits of the consolidated VIE without recourse to the Group | 2,533 | 364 | 1,763 |
Operating lease liabilities, non-current portion of the consolidated VIE without recourse to the Group | 693,505 | 99,616 | |
Promissory note, non-current portion (including promissory note, non-current portion of the consolidated VIE without recourse to the Group of RMB nil and RMB nil as of December 31, 2018 and 2019, respectively) | 87,022 | 12,500 | |
Derivative liabilities (including derivative liabilities of the consolidated VIE without recourse to the Group of RMB nil and RMB nil as of December 31, 2018 and 2019, respectively) | 172,235 | 24,740 | 63,942 |
TOTAL LIABILITIES | 4,446,997 | 638,771 | 2,189,147 |
Commitments and Contingencies (Note 22) | |||
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 188,627,228 shares issued and 165,038,164 and 174,025,810 shares outstanding as of December 31, 2018 and 2019, respectively) | 62 | 9 | 62 |
Additional paid-in capital | 2,175,652 | 312,513 | 1,944,325 |
Statutory reserve | 7,979 | 1,146 | 4,595 |
Accumulated other comprehensive income | 68,707 | 9,869 | 68,214 |
Accumulated deficit | (1,991,220) | (286,021) | (1,469,303) |
Total Puxin Limited shareholders’ equity | 261,180 | 37,516 | 547,893 |
Non-controlling interest | (1,122) | (161) | (21) |
TOTAL SHAREHOLDERS’ EQUITY | 260,058 | 37,355 | 547,872 |
TOTAL LIABILITIES AND TOTAL SHAREHOLDERS’ EQUITY | ¥ 4,707,055 | $ 676,126 | ¥ 2,737,019 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares |
Amounts due to related parties | ¥ 1,451 | ¥ 54,493 |
Deferred revenue, current | 1,205,609 | 876,861 |
Accrued expenses and other current liabilities | 983,715 | 436,123 |
Promissory notes, current | 87,023 | 361,888 |
Operating lease liabilities, current | 276,877 | |
Loans payable to third parties | 413,838 | 79,500 |
Notes payable, non-current | 87,022 | |
Derivative liability, non-current | ¥ 172,235 | ¥ 63,942 |
Ordinary shares, authorized | shares | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, issued | shares | 188,627,228 | 188,627,228 |
Ordinary shares, outstanding | shares | 174,025,810 | 165,038,164 |
VIE | ||
Amounts due to related parties | ¥ 254 | ¥ 3,199 |
Deferred revenue, current | 1,195,723 | 862,043 |
Accrued expenses and other current liabilities | 930,674 | 411,196 |
Promissory notes, current | 190,000 | |
Operating lease liabilities, current | 275,893 | |
Loans payable to third parties | ¥ 292,952 | ¥ 79,500 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Income Statement [Abstract] | ||||
Net revenues | ¥ 3,103,958 | $ 445,856 | ¥ 2,228,117 | ¥ 1,282,562 |
Cost of revenues (including share-based compensation expenses of RMB1,152, RMB6,420 and RMB4,352 for the years ended December 31, 2017, 2018 and 2019, respectively) | 1,629,447 | 234,055 | 1,242,889 | 794,342 |
Gross profit | 1,474,511 | 211,801 | 985,228 | 488,220 |
Operating expenses: | ||||
Selling expenses (including share-based compensation expenses of RMB3,058, RMB28,848 and RMB21,870 for the years ended December 31, 2017, 2018 and 2019, respectively) | 1,083,795 | 155,677 | 848,088 | 444,927 |
General and administrative expenses (including share-based compensation expenses of RMB51,625, RMB339,689 and RMB204,218 for the years ended December 31, 2017, 2018 and 2019, respectively) | 748,259 | 107,481 | 775,883 | 362,748 |
Total operating expenses | 1,832,054 | 263,158 | 1,623,971 | 807,675 |
Operating loss | (357,543) | (51,357) | (638,743) | (319,455) |
Interest expense | 71,099 | 10,213 | 51,901 | 5,556 |
Interest income | 25,542 | 3,669 | 2,826 | 549 |
Foreign exchange loss (gain) | (243) | (35) | 7,621 | |
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 104,589 | 15,023 | 131,748 | 70,336 |
Loss on extinguishment of convertible notes | 0 | 0 | 900 | 0 |
Loss before income taxes | (507,446) | (72,889) | (828,087) | (394,798) |
Income tax expenses | 12,188 | 1,751 | 5,322 | 2,436 |
Net loss | (519,634) | (74,640) | (833,409) | (397,234) |
Less: Net income (loss) attributable to non-controlling interest | (1,101) | (158) | 2 | 79 |
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (518,533) | $ (74,482) | ¥ (833,411) | ¥ (397,313) |
Net loss per share attributable to ordinary shareholders of Puxin Limited | ||||
Basic and diluted | (per share) | ¥ (3.03) | $ (0.44) | ¥ (5.78) | ¥ (3.98) |
Weighted average shares used in calculating basic and diluted net loss per share | 170,903,317 | 170,903,317 | 144,157,947 | 99,705,361 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based compensation expense | ¥ 230,440 | ¥ 345,503 | ¥ 55,835 |
Cost of Revenues | |||
Share-based compensation expense | 4,352 | 6,420 | 1,152 |
Selling Expenses | |||
Share-based compensation expense | 21,870 | 28,848 | 3,058 |
General and Administrative Expenses | |||
Share-based compensation expense | ¥ 204,218 | ¥ 339,689 | ¥ 51,625 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Statement [Abstract] | ||||
Net loss | ¥ (519,634) | $ (74,640) | ¥ (833,409) | ¥ (397,234) |
Other comprehensive income, net of tax of nil: | ||||
Change in cumulative foreign currency translation adjustments | 493 | 71 | 52,496 | 15,718 |
Total comprehensive loss | (519,141) | (74,569) | (780,913) | (381,516) |
Less: Comprehensive income (loss) attributable to non- controlling interest | (1,101) | (158) | 2 | 79 |
Total comprehensive loss attributable to Puxin Limited | ¥ (518,040) | $ (74,411) | ¥ (780,915) | ¥ (381,595) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Convertible NotesCNY (¥) | Redeemable Preferred SharesCNY (¥) | IPOCNY (¥) | Ordinary Shares [Member]CNY (¥)shares | Ordinary Shares [Member]USD ($)shares | Ordinary Shares [Member]Convertible NotesCNY (¥)shares | Ordinary Shares [Member]Redeemable Preferred SharesCNY (¥)shares | Ordinary Shares [Member]IPOCNY (¥)shares | Additional Paid In CapitalCNY (¥) | Additional Paid In CapitalUSD ($) | Additional Paid In CapitalConvertible NotesCNY (¥) | Additional Paid In CapitalRedeemable Preferred SharesCNY (¥) | Additional Paid In CapitalIPOCNY (¥) | Statutory ReserveCNY (¥) | Statutory ReserveUSD ($) | Accumulated Other Comprehensive IncomeCNY (¥) | Accumulated Other Comprehensive IncomeUSD ($) | Accumulated DeficitCNY (¥) | Accumulated DeficitUSD ($) | Total Puxin Limited Shareholders (Deficit) Equity [Member]CNY (¥) | Total Puxin Limited Shareholders (Deficit) Equity [Member]USD ($) | Total Puxin Limited Shareholders (Deficit) Equity [Member]Convertible NotesCNY (¥) | Total Puxin Limited Shareholders (Deficit) Equity [Member]Redeemable Preferred SharesCNY (¥) | Total Puxin Limited Shareholders (Deficit) Equity [Member]IPOCNY (¥) | Noncontrolling Interest [Member]CNY (¥) | Noncontrolling Interest [Member]USD ($) |
Beginning balance at Dec. 31, 2016 | ¥ (37,304) | ¥ 34 | ¥ 245,064 | ¥ (282,300) | ¥ (37,202) | ¥ (102) | ||||||||||||||||||||||
Beginning balance, shares at Dec. 31, 2016 | shares | 99,171,800 | 99,171,800 | ||||||||||||||||||||||||||
Net loss | (397,234) | (397,313) | (397,313) | 79 | ||||||||||||||||||||||||
Share-based compensation | 55,835 | 55,835 | 55,835 | |||||||||||||||||||||||||
Contribution from shareholders | 90,200 | 90,200 | 90,200 | |||||||||||||||||||||||||
Foreign currency translation adjustments | 15,718 | ¥ 15,718 | 15,718 | |||||||||||||||||||||||||
Option exercised, shares | shares | 828,200 | 828,200 | ||||||||||||||||||||||||||
Ending balance at Dec. 31, 2017 | (272,785) | ¥ 34 | 391,099 | 15,718 | (679,613) | (272,762) | (23) | |||||||||||||||||||||
Ending 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 | ||||||||||||||||||||||||||
Cumulative effect of adopting Topic 606 | 48,316 | 48,316 | 48,316 | |||||||||||||||||||||||||
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) | ||||||||||||||||||||
Ending balance, shares at Dec. 31, 2018 | shares | 188,627,228 | 188,627,228 | 165,038,164 | 165,038,164 | ||||||||||||||||||||||||
Net loss | ¥ (519,634) | $ (74,640) | (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 | $ 71 | 493 | 493 | ||||||||||||||||||||||||
Option exercised | ¥ 887 | 887 | 887 | |||||||||||||||||||||||||
Option exercised, shares | shares | 8,987,646 | 8,987,646 | 8,987,646 | 8,987,646 | ||||||||||||||||||||||||
Ending balance at Dec. 31, 2019 | ¥ 260,058 | $ 37,355 | ¥ 62 | $ 9 | ¥ 2,175,652 | $ 312,513 | ¥ 7,979 | $ 1,146 | ¥ 68,707 | $ 9,869 | ¥ (1,991,220) | $ (286,021) | ¥ 261,180 | $ 37,516 | ¥ (1,122) | $ (161) | ||||||||||||
Ending balance, shares at Dec. 31, 2019 | shares | 188,627,228 | 188,627,228 | 174,025,810 | 174,025,810 |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | ¥ (519,634) | $ (74,640) | ¥ (833,409) | ¥ (397,234) |
Adjustments to reconcile net loss to net cash generated from (used in) operating activities: | ||||
Depreciation of property, plant and equipment | 77,859 | 11,184 | 57,696 | 20,545 |
Amortization of intangible assets | 34,938 | 5,019 | 32,749 | 23,644 |
Foreign exchange loss (gain) | (243) | (35) | 7,621 | |
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 104,589 | 15,023 | 131,748 | 70,336 |
Loss on extinguishment of convertible notes | 900 | |||
Loss (gain) on disposal of property, plant and equipment | 7,938 | 1,140 | (266) | 350 |
Share-based compensation | 230,440 | 33,101 | 374,957 | 55,835 |
Deferred income taxes | (7,930) | (1,139) | (8,943) | (5,822) |
Changes in operating assets and liabilities: | ||||
Inventories | (2,144) | (308) | 723 | (44) |
Prepaid expenses and other current assets | 23,884 | 3,431 | (48,772) | (32,545) |
Amounts due from related parties | 113 | (104) | ||
Deferred revenue | (16,407) | (2,357) | (32,052) | 200,647 |
Accrued expenses and other current liabilities | 138,173 | 19,844 | (10,267) | 140,261 |
Income tax payable | 5,493 | 789 | 5,733 | 7,097 |
Amount due to related parties | (53,042) | (7,619) | 230,657 | 788 |
Franchise deposits | 770 | 111 | (2,093) | (3,488) |
Net cash generated from (used in) operating activities | 24,684 | 3,544 | (92,905) | 80,266 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Acquisition of businesses, net of cash acquired | (104,534) | (15,015) | (73,208) | (564,998) |
Purchase of property, plant and equipment | (115,545) | (16,597) | (83,709) | (64,706) |
Loans to a third party | (191,230) | (27,468) | ||
Net cash used in investing activities | (411,309) | (59,080) | (156,917) | (629,704) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Acquisition of businesses | (147,592) | (21,200) | ||
Proceeds from IPO (net of IPO expenses) | 799,208 | |||
Proceeds from convertible notes | 461,206 | |||
Proceeds from promissory notes | 50,000 | 168,180 | ||
Repayments of promissory notes | (190,000) | (27,292) | ||
Repurchase of convertible redeemable preferred shares | (180,000) | |||
Loans from third parties | 547,038 | 78,577 | 139,500 | |
Repayments to third parties loans | (212,700) | (30,552) | (83,802) | |
Borrowings from banks | 449,600 | 64,581 | 110,873 | |
Repayments of bank borrowings | (242,100) | (34,775) | (4,273) | |
Net cash generated from financing activities | 204,246 | 29,339 | 831,506 | 629,386 |
Effect of exchange rate changes | 6,432 | 924 | 48,131 | 3,696 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (175,947) | (25,273) | 629,815 | 83,644 |
Cash and cash equivalents, and restricted cash at beginning of the year | 818,977 | 117,639 | 189,162 | 105,518 |
Cash and cash equivalents, and restricted cash at end of the year | 643,030 | 92,366 | 818,977 | 189,162 |
Supplemental schedule of cash flow information | ||||
Income taxes paid | 14,625 | 2,101 | 8,532 | 1,161 |
Interest paid | 60,528 | 8,694 | 55,098 | 2,998 |
Acquisition consideration payable | 376,187 | 54,036 | 48,128 | 68,199 |
Reconciliation to amounts on consolidated balance sheets | ||||
Cash and cash equivalents | 256,763 | 36,882 | 778,006 | 164,684 |
Restricted cash | 386,267 | 55,484 | 40,971 | 24,478 |
Cash and cash equivalents, and restricted cash at end of the year | ¥ 643,030 | $ 92,366 | ¥ 818,977 | ¥ 189,162 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. 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 tutoring services and study abroad tutoring services in the People’s Republic of China (“PRC”). 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 tutoring services and study abroad tutoring services in the PRC. 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. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES- continued 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. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES- continued The VIE arrangements - continued 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. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES- continued The VIE arrangements - continued • 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, 2018 and 2019, the VIE and its subsidiaries and schools accounted for an aggregate of 59.4% and 75.8%, respectively, of the Group’s consolidated total assets, and 85.1% and 88.0% 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, 2018 and 2019 and for the years ended December 31, 2017, 2018 and 2019 was included in the accompanying consolidated financial statements: As of December 31, 2018 2019 RMB RMB Cash and cash equivalents 232,608 238,907 Prepaid expenses and other current assets 121,145 88,571 Total current assets 363,412 340,789 Total assets 1,627,032 3,569,949 Total current liabilities 1,668,293 3,035,344 Total liabilities 1,862,278 3,914,723 For the years ended December 31, 2017 2018 2019 RMB RMB RMB Net revenues 1,282,562 2,219,638 3,094,044 Net loss (331,621 ) (254,754 ) (31,712 ) Net cash generated from (used in) operating activities 80,266 (81,041 ) 142,437 Net cash used in investing activities (141,025 ) (156,917 ) (219,186 ) Net cash generated from financing activities 140,000 20,505 83,361 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, 2019 | |
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. 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 interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. 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. The carrying values of financial instruments, which consist of cash and cash equivalents, restricted cash, amounts due from related parties, other receivables, other payables, amounts due to related parties and short-term bank borrowings are recorded at cost which approximates their fair value due to the short-term nature of these instruments. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, other receivables, loan receivable, other payables, amounts due to related parties, bank borrowings, loans payable to third parties, convertible notes, promissory notes and derivative liabilities and warrants. Convertible notes Convertible notes for which the fair value option are elected are carried at fair value, with changes in fair value recognized in earnings. 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, 2019 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.9618, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2019. 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, 2019, 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 bank borrowings are fully repaid 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, 2017, 2018 and 2019 based on the result of the assessment. 2. -continued 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 estimated economic life 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 tested for impairment annually at the end of the fourth quarter, or sooner if impairment indicators arise. In the evaluation of goodwill for impairment, the Group may perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is not, no further analysis is required. If it is, a prescribed two-step goodwill impairment test is performed to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit, if any. 2. -continued Goodwill and intangible assets -continued The first step in the two-step impairment test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The fair value of a reporting unit is estimated by applying valuation multiples and/or estimating future discounted cash flows. The selection of multiples is dependent upon assumptions regarding future levels of operating performance as well as business trends and prospects, and industry, market and economic conditions. When estimating future discounted cash flows, the Group considers the assumptions that hypothetical marketplace participants would use in estimating future cash flows. In addition, where applicable, an appropriate discount rate is used, based on an industry-wide average cost of capital or location-specific economic factors. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit). If the implied fair value of goodwill exceeds the carrying amount, goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. Based on the result of annual goodwill impairment assessment, no impairment charge was recognized for the years ended December 31, 2017, 2018 and 2019. 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 years & Indefinite Relationship with partnership school 6.4 years Franchise agreement 3.4 years 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Goodwill and intangible assets -continued The Group has determined that certain trademarks do not have determinable useful lives. Consequently, the carrying amount of 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 value of the trademarks with their carrying amount 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. No impairment loss was recorded during the years ended December 31, 2017, 2018, and 2019. Impairment of long-lived 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, 2017, 2018 and 2019. Revenue recognition On January 1, 2018, the Group adopted ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606) applying the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Group recorded a net reduction to opening accumulated deficit of RMB48,316 as of January 1, 2018 due to the cumulative impact of adopting Topic 606. 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 December 31, 2017 2018 2019 RMB RMB RMB Services: K-12 tutoring services - group class 611,268 817,843 1,103,607 K-12 tutoring services - personalized 272,880 364,554 553,654 K-12 tutoring services - full-time — — 286,593 Study-abroad test preparation services 334,288 860,687 941,537 Study-abroad consulting services 64,126 185,033 218,567 Total net revenues 1,282,562 2,228,117 3,103,958 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Revenue recognition -continued The following is a description of principal activities from which the Group generates revenue and related revenue recognition policies. (i) K-12 tutoring services 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 after-school group class courses, personalized tutoring courses and full-time tutoring courses. The K-12 tutoring services are accounted for as a single performance obligation. Tuition fees are generally collected in advance and are initially recorded as deferred revenue. Deferred revenue is recognized proportionately as the tutoring sessions are delivered. Tuition refunds are provided to students if they decide within the trial period that they no longer want to take the course. For some K-12 courses, the Group also offers refunds for any remaining classes to students who withdraw from the course. The refund is equal to the amount related to the undelivered class. The Group determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. (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 not to take the remaining course after the trial class. No refund will be provided to a student who withdraws from a course after the trial period. 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 prepaid fee based on the scope of consulting services requested by the student. Portion of the prepaid services fee are refundable if the student does not successfully gain admission, which are accounted for as variable consideration under Topic 606. The study-abroad consulting services are accounted for as a single performance obligation. The Group estimates the variable consideration to be earned and recognizes revenue over the service period. Remaining performance obligations represents the transaction price of contracts for which service has not been performed under study-abroad consulting services. As of December 31, 2019, the aggregate amount of the transaction price related to the remaining performance obligations was RMB175,486. The Group estimates that revenue RMB118,162 and RMB43,016 on the remaining performance obligations to be recognized over the next 12 and 24 months, respectively, with the remainder, at RMB14,308, 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Revenue recognition -continued Practical expedients and exemptions The Group incurs sales commissions primarily for K-12 tutoring services and study-abroad test preparation services which are expensed when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing 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 On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program were phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Businesses in the Pilot Program would pay VAT instead of business tax. Starting from May 1, 2016, the Pilot Program was promoted nationwide in a comprehensive manner in the PRC. With the implementation of the Pilot Program, the Group’s certain subsidiaries and schools are subject to VAT at the rate of 3%, as small scale VAT payer, and the remaining subsidiaries and schools are subject to VAT at the rate of 6%, as general VAT payer, which were all previously subject to business tax. The net VAT balance between input VAT and output VAT is recorded as accrued expenses and other current liabilities in the Group’s consolidated financial statements. 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. Leases The Group leases offices and schools in different cities in the PRC under operating leases. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. The Group measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Group estimates its incremental borrowing rate based on an analysis of publicly traded debt securities of companies with credit and financial profiles similar to its own. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing rent expense when the lessor makes the underlying asset available to the Group. The Group’s leases have remaining lease terms of up to ten years, some of which include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group did not include renewal option periods in the lease term for which it is not reasonably certain to exercise. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued 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 that a portion of or all of the deferred tax assets will not be realized. The impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. Share-based 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 method when dilutive, and (iii) convertible redeemable participating preferred shares, which are included under the if-converted method when dilutive. The Group’s convertible redeemable participating preferred shares are participating securities as they participate in undistributed earnings on an as-if-converted basis. Accordingly, the Group uses the two-class method whereby undistributed net income is allocated on a pro rata basis to the ordinary shares and preferred shares to the extent that each class may share in income for the period; whereas the undistributed net loss for the period is allocated to ordinary shares only because the convertible redeemable participating preferred shares are not contractually obligated to share the loss. The computation of diluted net loss per share for the years ended December 31, 2017, 2018 and 2019 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 of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued 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 Peoples 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 to RMB279,162 and RMB281,450 as of December 31, 2018 and 2019, respectively. 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, 2018 and 2019, 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 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 update 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 update 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 has evaluated the effect of the adoption of this ASU and does not expect there will be In January 2017, FASB issued ASU No. 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 has evaluated the effect of the adoption of this ASU and does not expect there will be 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. This guidance will be adopted using a retrospective approach and is effective for the Group on January 1, 2020. The Group has evaluated the effect of the adoption of this ASU and does not expect there will be 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Newly adopted accounting pronouncements In February 2016, the FASB issued . The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For publi |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisition | 3. BUSINESS ACQUISITION Acquisition of ZMN International Education Consulting (Beijing) Co., Ltd (“ZMN Education”) On July 31, 2017, the Group acquired 100% equity interests in ZMN Education. The total consideration for the acquisition of ZMN Education amounted to RMB135,850 which included RMB65,250 in cash and the rest was in the form of warrant. The warrant issued to the sellers which entitle them to purchase the ordinary shares of Long faith Limited, a shareholder of the Company, was recorded at fair value on acquisition date and accounted for as capital contribution to the Company by the Company’s shareholder. ZMN Education operates study abroad tutoring services in the PRC. The acquisition of ZMN Education’s service centers, with its well-known brand and teaching team, would further enhance the Group’s ability 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 amortization period RMB Cash and cash equivalents 21,407 Prepaid expenses and other current assets 13,266 Restricted cash 1,008 Property, plant and equipment, net 9,723 3-5 years Rental deposits 7,285 Deferred revenue (208,345 ) Account payables (564 ) Accrued expenses and other current liabilities (32,857 ) Loans from third parties (23,802 ) Intangible assets-trademark 32,400 5.4 years Deferred tax liabilities (8,100 ) Goodwill 324,429 Total 135,850 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 synergy resulting from the acquisition. 3. BUSINESS ACQUISITION -continued Acquisition of Beijing GEDU On August 16, 2017, the Group acquired 100% equity interest in Beijing GEDU for cash consideration of USD72,300 (equivalent to RMB483,687). Beijing GEDU operates study abroad tutoring services in the PRC. The acquisition of Beijing GEDU’s training centers, with its well-known brand and teaching team, would further enhance the Group’s ability 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 amortization period RMB Cash and cash equivalents 89,437 Inventories 6,620 Prepaid expenses and other current assets 117,333 Restricted cash 14,332 Property, plant and equipment, net 132,844 2-37 years Deferred tax assets 2,547 Rental deposits 18,381 Accounts payable (6,197 ) Accrued expenses and other current liabilities (79,167 ) Income tax payable (2,505 ) Deferred revenue (221,484 ) Franchise deposits (7,344 ) Intangible assets-trademark 140,000 Indefinite Intangible assets-relationship with partnership school 5,300 6.4 years Intangible assets-franchise agreement 4,400 3.4 years Deferred tax liabilities (54,164 ) Goodwill 323,354 Total 483,687 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 synergy resulting from the acquisition. 3. BUSINESS ACQUISITION -continued Other acquisitions in 2017 In 2017, the Group acquired 100% equity interest in (i) a group of schools wholly owned by Chongqing Shunbo Technology Co., Ltd., (ii) Shenyang Pude Education Technology Co., Ltd., (iii) a school wholly owned by Mr. Bowen Zhang, (iv) Yancheng Tiantianxiangshang Education Training Co., Ltd., (v) Fuzhou Pude Education Technology Co., Ltd., (vi) a group of schools wholly owned by Hangzhou Shoumu Education Technology Co., Ltd., and acquired certain tutoring businesses from third parties (collectively “Other 2017 Acquirees”). The total consideration for the acquisitions of Other 2017 Acquirees amounted to RMB174,770 which included RMB155,170 in cash and the rest was in the form of warrant. The warrant was issued by the major shareholder of the Company to purchase the equity interest of Puxian which was recorded at fair value and accounted for as capital contribution to the Company by the shareholder. These acquired entities are in the operation of K-12 tutoring services and study abroad tutoring services in the PRC. The acquisitions of Other 2017 Acquirees’ training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 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 amortization period RMB Cash and cash equivalents 15,824 Inventories 256 Prepaid expenses and other current assets 13,221 Amounts due from related parties 63,194 Property, plant and equipment, net 1,377 3-5 years Accrued expenses and other current liabilities (12,388 ) Deferred revenue (85,197 ) Intangible assets-student base 27,100 3.5-5.9 years Deferred tax liabilities (6,775 ) Goodwill 158,158 Total 174,770 The tangible and intangible assets valuation for the acquisitions disclosed above were 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. 3. BUSINESS ACQUISITION -continued 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 tutoring services in the PRC. The acquisition of Shandong Zengyu’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 Amortization period RMB Prepaid expenses and other current assets 37,169 Property, plant and equipment, net 1,241 3-5 years Rental deposits 290 Accrued expenses and other current liabilities (2,219 ) Deferred revenue (35,534 ) Intangible assets-student base 6,700 2.2 years 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. 3. BUSINESS ACQUISITION -continued 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 17. The warrant was recorded at fair value and accounted for as shares consideration of the acquisition paid by the Company itself. These acquired entities are in the operation of K-12 tutoring services and study abroad tutoring services in the PRC. The acquisitions of Other 2018 Acquirees’ training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 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 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 years Deferred tax liabilities (275 ) Goodwill 19,876 Total 19,986 The tangible and intangible assets valuation for the acquisitions disclosed above were 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. 3. BUSINESS ACQUISITION -continued 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 tutoring services in the PRC. The acquisition of Beijing Xiaoze’s training centers, with its well-known brand and teaching team, would further enhance the Group’s ability 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 Amortization period 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 years Operating lease right-of-use assets 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. 3. BUSINESS ACQUISITION -continued 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 Xi'an Intest Xi'an Intest operates K-12 tutoring services in the PRC. The acquisition of ’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 Amortization period RMB Cash and cash equivalents 22,245 Prepaid expenses and other current assets 47 Rental deposit 464 Property, plant and equipment, net 2,074 3-5 years Operating lease right-of-use assets 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. 3. BUSINESS ACQUISITION -continued Acquisition of Dalian Keyuan Culture Consulting Co., Ltd. (“Dalian Keyuan”) On November 29, 2019, the Group acquired 100% equity interests in Dalian Keyuan Dalian Keyuan Dalian Keyuan operates K-12 tutoring services in the PRC. The acquisition of ’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 Amortization period RMB Cash and cash equivalents 8,223 Prepaid expenses and other current assets 64,330 Rental deposit 931 Property, plant and equipment, net 1,204 3-5 years Operating lease right-of-use assets 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 years 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. 3. BUSINESS ACQUISITION -continued 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 tutoring services in the PRC. The acquisitions of Other 2019 Acquirees’ training centers, with its teaching team and student base, allows the Group to provide high-quality, competitively priced and diversified services to the students. 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 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 years Operating lease right-of-use assets 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 were 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. 3. BUSINESS ACQUISITION -continued 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 December 31, 2017 ZMN Education Beijing GEDU Others RMB RMB RMB Net revenues 39,867 197,853 114,601 Net (loss) (59,169 ) (74,370 ) (13,096 ) For the year ended December 31, 2018 Shandong Zengyu Others RMB RMB Net revenues 8,074 4,495 Net (loss) (1,362 ) (27 ) For the year ended December 31,2019 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 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, 2016 and 2017 assuming that the acquisition of ZMN Education, Beijing GEDU and Other 2017 Acquirees which were completed in 2017 occurred as of January 1, 2016. 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 December 31, 2016 2017 RMB RMB Unaudited Unaudited pro forma net revenues 1,318,811 1,882,032 pro forma net (loss) (281,853 ) (511,354 ) 3. BUSINESS ACQUISITION -continued Pro forma information of acquisitions -continued 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 acquisition 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 December 31, 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 acquisition 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 December 31, 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 Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 4. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of December 31, 2018 2019 RMB RMB Prepaid service fees 45,415 68,913 Staff advances 11,125 20,067 Interest receivable — 17,052 Prepaid rental expenses (Note a) 63,134 — Others 8,964 11,116 128,638 117,148 Note a: The Group adopted Topic 842 in the first quarter of 2019 using the modified retrospective transition approach allowed under ASU 2018-11 as described in Note 2. The prepaid rental expenses balance as of December 31, 2019 are included in the Group’s operating lease right-of-use assets on its consolidated balance sheet. |
Loan Receivable
Loan Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Loan Receivable | 5 . LOAN RECEIVABLE In 2019, the Group entered into loan agreements amounted to USD27,468 (equivalent to RMB191,230) with American Hebrew Academy, Inc. (“AHA”), a non-for-profit corporation. The annual interest rate was 18.0% and the term of the loan was 12 months. The loan is secured by AHA’s real estate property located in North Carolina, the United States. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 6 . PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following: As of December 31, 2018 2019 RMB RMB Buildings 87,792 87,792 Electronic equipment 67,637 87,658 Motor vehicles 9,652 9,149 Furniture and education equipment 38,994 46,132 Leasehold improvement 163,879 239,148 Total 367,954 469,879 Less: Accumulated depreciation (119,153 ) (171,160 ) 248,801 298,719 Depreciation expenses were RMB20,545, RMB57,696 and RMB77,859 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7 . INTANGIBLE ASSETS Intangible assets consisted of the following: As of December 31, 2018 2019 RMB RMB Student base 104,854 140,409 Trademark 172,400 216,100 Relationship with partnership school 5,300 5,300 Franchise agreement 4,400 4,400 Total 286,954 366,209 Less: Accumulated amortization (67,976 ) (101,669 ) 218,978 264,540 Amortization expenses were RMB23,644, RMB32,749 and RMB34,938 for the years ended December 31, 2017, 2018 and 2019, respectively. As of December 31, 2019, the Group expects to record amortization expenses related to intangible assets RMB36,072, RMB23,301, RMB17,626, RMB3,786 and RMB55 for the years ended December 31, 2020, 2021, 2022, 2023, 2024, respectively, and RMB nil thereafter. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 8 . GOODWILL The Group has two reporting units that carry goodwill. The changes in carrying amount of goodwill for the years ended December 31, 2018 and 2019 were as follows: As of December 31, 2018 2019 RMB RMB Costs: Beginning balance 1,152,913 1,243,817 Acquisition of subsidiaries and schools 90,904 812,105 Ending balance 1,243,817 2,055,922 Goodwill impairment loss — — Goodwill, net 1,243,817 2,055,922 The Company performed goodwill impairment analysis as of December 31, 2019. When determining the fair value of reporting units, including K-12 tutoring services and study abroad tutoring services, the Company used a discounted cash flow model that included a number of significant unobservable inputs. Key assumptions used to determine the estimated fair value include: (a) internal cash flows forecasts including expected revenue growth, operating margins and estimated capital needs, (b) an estimated terminal value using a terminal year long-term future growth rate determined based on the growth prospects of the reporting unit; and (c) a discount rate that reflects the weighted-average cost of capital adjusted for the relevant risk associated with the reporting unit’s operations and the uncertainty inherent in the Company’s internally developed forecasts. Based on the Company’s assessment as of December 31, 2019, the fair value of K-12 tutoring services and study abroad tutoring services reporting units exceeded its carrying value, respectively. The Group did not record impairment of goodwill for the years ended December 31, 2017, 2018 and 2019. |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities Current [Abstract] | |
Accrued Expenses and Other Current Liabilities | 9 . ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The components of accrued expenses and other current liabilities were as follows: As of December 31, 2018 2019 RMB RMB Consideration payable in connection with business acquisitions 48,128 376,187 Salary and welfare payable 216,671 335,024 Refund liabilities (Note a) 92,960 137,510 Accrued expenses 38,676 61,962 Other tax payable 23,264 25,060 Interest payable 9,771 20,342 Payables for purchase of property, plant and equipment 1,332 16,113 Others 5,321 11,517 436,123 983,715 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, 2018 | |
Debt Disclosure [Abstract] | |
Bank Borrowings | 10 . BANK BORROWINGS In April 2018, Dalian Xigang Tongfang Technology Culture Training School (“Dalian Tongfang”) entered into a bank borrowing agreement amounted to RMB10,000 with Shanghai Pudong Development Bank (“SPD Bank”). The annual interest rate was 6.3% and the term of the bank borrowing was 12 months. Puxin Education, Mr. Yunlong Sha and Ms. Wenjing Song were joint guarantors under the bank borrowing agreement. The bank borrowing was fully repaid as of December 31, 2019. In November 2018, Puxin Education entered into a bank borrowing agreement amounted to RMB96,600 with SPD Bank. The annual interest rate was 4.35% and the term of the bank borrowing was 6 months. Prepshine HK acted as the pledger under the bank borrowings agreement. The bank borrowing was fully repaid as of December 31, 2019. In 2018, Puxin Education entered into a series of borrowing agreements amounted to RMB4,273 with Bank of Jiangsu. The annual interest rates were 6.525% and the terms of the bank borrowings were 12 months. As of December 31, 2018, all of the borrowing were fully repaid ahead of maturity date. In April 2019, Puxin Education entered into a bank borrowing agreement amounted to RMB41,000 with Xiamen International Bank. The annual interest rate was 7.0% and the terms of the bank borrowings were 6 months. The buildings of Beijing GEDU were mortgaged as collateral for the borrowing. As of December 31, 2019, the bank borrowing was fully repaid at maturity date. In 2019, Puxin Education entered into a series of borrowing agreements amounted to RMB408,600 with SPD Bank. The annual interest rate was 4.35% and the term of the bank borrowings were 6-12 months. Deposits amounted to USD50,000 (equivalent to RMB 348,090 For the years ended December 31, 2018 and 2019, the Group recognized interest expense of RMB1,148 and RMB13,269 for these bank borrowings. |
Loans Payable to Third Parties
Loans Payable to Third Parties | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Loans Payable to Third Parties | 11 . LOANS PAYABLE TO THIRD PARTIES In 2018, Puxin Education issued a debt instrument amounted to RMB29,500 under a directed financing scheme and registered with competent financial asset exchange in PRC, the annual interest rate ranged from 8% to 9% and the term of the debt instrument was 12 months, Taiyuan Puxin Culture and Arts Co., Ltd (“Taiyuan Puxin Arts”) and Mr. Yunlong Sha were joint guarantors under the agreement. Taiyuan Puxin Arts also issued a debt instrument amounted to RMB50,000 under a directed financing scheme and registered with competent financial asset exchange in PRC, the annual interest rate ranged from 8.2% to 8.8% and the term of the debt instrument was 6 months, Puxin Education and Mr. Yunlong Sha were joint guarantors under the agreement. All the debt instruments were fully repaid as of December 31, 2019. In 2019, Puxin Education issued debt instruments amounted to RMB384,100 under the directed financing schemes and registered with competent financial asset exchanges in PRC, the annual interest rate ranged from 7.0% to 9.5% and the term of the debt instruments was 3-12 months, Taiyuan Puxin Arts, Shanghai Global Career Education & Technology Holdings Limited (“ Shanghai GEDU”), Ms. Wenjing Song Puxin Education entered into four other loan agreements in a total amount of RMB60,000 with third parties in 2018. The annual interest rates ranged from nil to 5.655% and the terms of the loans ranged from 1 month to 3 months. For one of the loans amounted to RMB30,000, Mr. Yunlong Sha was guarantor under the loan agreement. The four loans are fully repaid as of December 31, 2018. The Group entered into other three loan agreements in a total amount of RMB162,938 with a group of lenders in 2019. The annual interest rates ranged from nil to 14% and the terms of the loans ranged from 6 month to 12 months. Mr. Yunlong Sha was guarantor under the loan agreements, and tuition collection rights of certain schools were pledged for the loans. For the years ended December 31, 2018 and 2019, the Group recognized interest expense of RMB2,433 and RMB20,451 for the loans. |
Convertible Notes
Convertible Notes | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 12. 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 RMB300,000 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 90%, 80% and 70% 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 RMB190,000 under the credit facility. The note bears a simple annual interest rate of 12% and has a maturity term of 22 months since the date the issuer received the first proceed and can be extended for another 36 months. Pursuant to the agreement, Puxin Education committed to guarantee Huazhong an Internal Rate of Return (“IRR”) of no less than 18% per annual if Huazhong chooses to withdraw earlier or by the 58th months 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 30%, 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 RMB950,000, 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 18% per annum. The fair value option was elected for the convertible note. As of December 31, 2017, the fair value of the convertible note was RMB150,200. Changes in fair value of RMB10,200 were recorded in the consolidated statements of operations for the year ended December 31, 2017. 12. CONVERTIBLE NOTES -continued Notes issued to Huazhong -continued 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 period that China Central International is subject to; or (ii) after December 31, 2020. 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 58 months from the original date of drawdown, if the aggregate profit received by the warrants holder in selling the warrants shares (the “Actual Return”) is less than a minimum return calculated based on certain formula (the “Minimum Return”), the Company shall cause Mr. Yunlong Sha and/or Puxin Education to compensate the warrants holder in cash for the difference between the Actual Return and the Minimum Return. 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 13, the warrants were expired in March 2019 and Puxin Education fully repaid the new note of Huazhong in May 2019. 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 transaction (“trade sale”) prior to full repayment of the note, Haitong shall have the right to (i) declare all indebtedness under this note become immediately due and payable in full on or prior to the closing of the trade sale; (ii) convert all such indebtedness into such number of converted preferred shares calculated by dividing the outstanding principal amount by the applicable preferred share conversion price on or prior to the closing of the trade sale. The Company elected the fair value option for the convertible note. 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 prices 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) and nil were recorded in the consolidated statements of operations for the years ended December 31, 2018 and 2019, respectively. 12. CONVERTIBLE NOTES -continued 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 should compensate CICC ALPHA for the shortfall (“Floor Return”). If the IRR of CICC ALPHA exceeds 30%, CICC ALPHA shall pay Mr. Yunlong Sha certain awards (“Founder Awards”). The features of Founder Awards and Floor Return are freestanding derivatives that are required to be separately accounted for as derivative liabilities under ASC 815. The Company elected the fair value option for the convertible note. 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 prices 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. As of December 31, 2018 and 2019, the fair value of the derivative liabilities was USD9,300 (equivalent to RMB63,942) and USD24,740 (equivalent to RMB172,235), respectively. Changes in fair value of derivative liabilities were USD6,500 (equivalent to RMB44,288) and USD15,440 (equivalent to RMB104,589) recorded in the consolidated statements of operations for the years ended December 31, 2018 and 2019. Changes in fair value of the convertible note aggregated to USD8,217 (equivalent to RMB52,368) and nil were recorded in the consolidated statements of operations for the years ended December 31, 2018 and 2019. 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 22. The convertible notes agreements also contain covenants customary for a financing of this size and nature. |
Promissory Notes
Promissory Notes | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Promissory Notes | 13 . 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 shall be extended to the third anniversary of the date of the original promissory note, and the maturity date for the other half of the principal amounted to USD12,500 shall be extended to the fourth anniversary of the date of the original promissory note. original 13 . PROMISSORY NOTES -continued As disclosed in Note 12, the amendment of the convertible notes to Huazhong was accounted for as an extinguishment of the original convertible notes and issuance of a new note at the same principal amount For the years ended December 31, 2018 and 2019, the Group recognized interest expense of RMB32,026 and RMB37,379 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 22. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 14. 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, other payables, amounts due to related parties, bank borrowings, loans payable to third parties, convertible notes, promissory notes, derivative liabilities and warrants at fair value on a recurring basis as of December 31, 2018 and 2019. Cash and cash equivalents and restricted cash are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. The Group determines the fair value of derivative liabilities and warrants with the assistance of an independent third-party appraiser, based on Level 3 inputs. To determine the fair value of the convertible notes, the Group used probability expected return method. To determine the fair value of derivative liabilities, the Group used binomial model. To determine the fair value of warrants, the Group used modified discount cash flow model. The key assumptions used in valuation of convertible notes are summarized in the table below: For the years ended December 31, 2017 2018 Probability for conversion 80 % 80 % Probability for redemption 20 % 20 % Remaining life 2.5–4.8 2.3–4.3 The key assumptions used in valuation of derivative liabilities are summarized in the table below: For the years ended December 31, 2017 2018 2019 Probability for conversion 80 % 100 % 100 % Exit period 2018/6/30 – 2019/6/30 2018/6/30 – 2019/6/30 2019/12/31 – 2020/12/31 Volatility 40 % 54 % 77 % The key assumptions used in valuation of warrants are summarized in the table below: For the year ended December 31, 2018 Probability for conversion — Conversion price discount rate 90% 14. FAIR VALUE MEASUREMENT -continued Measured or disclosed at fair value on a recurring basis -continued 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 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, 2018 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents 778,006 — — 778,006 Restricted cash 40,971 — — 40,971 Promissory notes — 361,888 — 361,888 Derivative liabilities — — 63,942 63,942 Total 818,977 361,888 63,942 1,244,807 The carrying amounts of other receivables, loan receivable, other payables, amounts due to related parties, bank borrowings and loans payable to third parties approximate their fair values due to their short-term maturity. 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, 2017, 2018 and 2019: 14. FAIR VALUE MEASUREMENT -continued Convertible notes Derivative liabilities Warrants Balance as of January 1, 2018 499,192 18,218 — Issuance of convertible notes 50,000 — — Extinguishment of convertible notes (207,300 ) — — Issuance of warrants — — 14,800 Conversion to ordinary shares (438,720 ) — — Changes in fair value 102,260 44,288 (14,800 ) Exchange rate effect (5,432 ) 1,436 — Balance as of December 31, 2018 — 63,942 — Changes in fair value — 104,589 — Exchange rate effect — 3,704 — Balance as of December 31, 2019 — 172,235 — Measured or disclosed at fair value on a non-recurring basis 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, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 15 . 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. 15 . SHARE-BASED COMPENSATION -continued 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$0.001 (RMB0.007). The term of the option is fixed and 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 of 2 months. 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, 2017, 2018 and 2019. For the years ended December 31, Grant date 2017 2018 2019 Risk-free interest rate 2.84%-2.97% 3.40 % 2.51 % Volatility 45%-47% 46 % 55 % Dividend yield — — — Exercise multiples 2.2-2.8 2.2-2.8 2.8 Life of options 7.0 7.0 7.0 Fair value of underlying ordinary shares 29.46-48.31 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. 15 . SHARE-BASED COMPENSATION -continued The activity in stock options as of December 31, 2019, and changes during the year then ended is presented below: Outstanding options Number of options Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value Options outstanding at January 1, 2019 22,467,373 37.77 Granted 8,879,986 0.01 Exercised 8,987,646 0.10 Forfeited 713,481 38.52 Options outstanding at December 31, 2019 21,646,232 37.78 4.77 123,239 Options vested and expected to vest as of December 31, 2019 21,646,232 37.78 4.77 123,239 Option exercisable as of December 31, 2019 15,841,720 38.13 4.77 91,607 The weighted average grant date fair value for the years ended December 31, 2017, 2018 and 2019 were RMB27.53, RMB24.20 and RMB20.56. Total intrinsic value of options exercised for the years ended December 31, 2017, 2018 and 2019 were RMB39,716, RMB681 and RMB255,728, respectively. The total fair value of options vested during the years ended December 31, 2017, 2018 and 2019 was RMB29,645, RMB302,331 and RMB220,040, respectively. 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 RMB55,835, RMB345 , 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, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16 . 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 25% 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 began to qualify as HNTE since 2016 and enjoy the tax rate of in 2016, 2017 and 2018. 16 . INCOME TAXES- continued The current and deferred components of the income tax expenses appearing in the consolidated statement of operations were as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB Current tax expenses 8,258 14,265 20,118 Deferred tax expenses (5,822 ) (8,943 ) (7,930 ) 2,436 5,322 12,188 The principle components of deferred taxes were as follows: As of December 31, 2018 2019 RMB RMB Deferred tax assets: Accrued expenses 32,290 42,443 Net operating loss carrying forwards 149,628 222,722 Total deferred tax assets 181,918 265,165 Less: Valuation allowance (178,462 ) (262,966 ) Deferred tax assets, net 3,456 2,199 As of December 31, 2019, the Group had net operating loss carried forward of RMB890,888 from the Company’s PRC entities, which will expire on various dates from December 31, 2020 to December 31, 2024. As of December 31, 2018 2019 RMB RMB Deferred tax liabilities: Acquired intangible assets 71,031 81,969 Total deferred tax liabilities 71,031 81,969 The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations was as follow: For the years ended December 31, 2017 2018 2019 RMB RMB RMB Loss before income taxes (394,798 ) (828,087 ) (507,446 ) Income tax benefit computed at an applicable tax rate of 25% (98,699 ) (207,022 ) (126,862 ) Permanent differences 13,279 106,509 51,216 Effect of income tax rate differences in jurisdictions other than PRC — 38,490 30,189 Effect of preferential tax rate (26 ) (554 ) (12,211 ) Change in valuation allowance 87,882 67,899 69,856 2,436 5,322 12,188 16 . INCOME TAXES- continued The Group did not identify significant unrecognized tax benefits for the year ended December 31, 2019. 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, 2019. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Ordinary Shares | 17 . 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 data in the accompanying consolidated financial statements have been adjusted to reflect the stock split and issuance of shares on a retrospective basis. 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. 15,438,412 and 8,150,652, 6,450,766 and 8,150,652 ordinary shares of Long favor Limited and Long belief Limited are issued but not outstanding as of December 31, 2018 and December 31, 2019, respectively. 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 prices 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 prices 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, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 18 . 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 December 31, 2017 2018 2019 RMB RMB RMB Numerator used in basic and diluted net loss per share: Net loss attributable to ordinary shareholders of Puxin Limited (397,313 ) (833,411 ) (518,533 ) Shares (denominator): Weighted average common shares outstanding used in computing basic and diluted net loss per share (Note 1) 99,705,361 144,157,947 170,903,317 Net loss per share basic and diluted (3.98 ) (5.78 ) (3.03 ) For the years ended December 31, 2017, 2018 and 2019, an incremental weighted average number of 4,938,438, 18,420,993 and 21,646,232 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, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Defined Contribution Plan | 19 . 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 RMB104,635, RMB184,525 and RMB210,236 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 20 . 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 20 . RELATED PARTY TRANSACTION -continued (2) The significant balances between the Group and its related parties were as follows: As of December 31, 2018 2019 RMB RMB Amounts due to: Mr. Yunlong Sha 43,993 1,197 Ms. Wenjing Song 10,500 254 54,493 1,451 In connection with Purong Information’s repurchase of 5% equity interest with preferential feature which was held by Shanghai Trustbridge, in January 2018, Mr. Yunlong Sha advanced to Purong Information at the amount of RMB180,000. As of December 31, 2018, such balance and the accrued interest, at 9%, were paid back by the Group. The balances with related parties were interest-free, unsecured and repayable on demand. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 2 1 . LEASES Operating leases 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, which the Group chooses to account for as separate components. The allocation of the consideration between the lease and the non-lease components is based on the relative stand-alone prices of lease components included in the lease contracts. As of December 31, 2019, the Group had no long-term leases that were classified as a financing lease. As of December 31, 2019, the Group did not have additional operating leases that have not yet commenced. Total operating lease expenses for the year ended December 31, 2019 was RMB378,691, and was recorded in cost of revenues, selling expenses and general and administrative expense on the consolidated statements of operations. For the year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases 373,230 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 643,722 Weighted average remaining lease term Operating leases 4.59 years Weighted average discount rate Operating leases 7.46 % 2 1 . LEASES -continued Operating leases -continued The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended December 31: Years ending December 31, 2020 347,647 2021 283,836 2022 194,472 2023 137,684 2024 73,986 Thereafter 159,095 Less imputed interest 226,338 Total 970,382 Future minimum payments under non-cancelable operating leases related to offices and schools consisted of the following at December 31, 2018: Years ending December 31, 2019 303,126 2020 217,290 2021 148,625 2022 90,340 2023 20,052 Thereafter 74,954 854,387 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 years ended December 31, 2017 and 2018, total rental expense for all operating leases amounted to RMB 215,432 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 22. 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. ”) ” 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 its 4.15% equity interests of Puxin Education in favor of a related party of CICC ALPHA. Mr. Yunlong Sha and Long bright Limited are joint guarantors under the offshore share mortgage agreement and domestic equity pledge agreement. 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, 2019, all the mortgaged shares of Puxin Limited were released except for 9,589,566 shares which were still mortgaged to Haitong. In 2019, Puxin Education entered into a series of borrowing agreements amounted to RMB408,600 with SPD Bank. Deposits amounted to USD50,000 (equivalent to RMB 348,090 In 2019, Puxin Education issued debt instruments amounted to RMB384,100 under the directed financing schemes and registered with competent financial asset exchanges in PRC. Taiyuan Puxin Arts, Shanghai GEDU, Ms. Wenjing Song 2 2 . COMMITMENTS AND CONTINGENCIES -continued Equity pledge commitment -continued The Group entered into four other loan agreements in a total amount of RMB162,938 with a group of lenders in 2019. Mr. Yunlong Sha was guarantor under the loan agreements, and tuition collection rights of certain schools were pledged for the loans. 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”) to invite public comment. 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, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 23 . 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 tutoring services and study abroad tutoring services. All these two operating segments are identified as reportable segments. 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, 2017 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 884,148 398,414 1,282,562 Cost of revenues 555,885 238,457 794,342 Gross profit 328,263 159,957 488,220 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 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, 2019 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 24 . 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 profit to non-distributable reserve funds as determined by the Board of Directors of each company. These reserves include (i) general reserve, and (ii) other reserves at the discretion of the Board of Director. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. The Company’s subsidiaries contributed RMB nil, RMB1,443 and RMB510 to the general reserve during the years ended December 31, 2017, 2018 and 2019. 24 . RESTRICTED NET ASSETS -continued 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 income before payments of dividend to a fund to be used for the construction or maintenance of the school or procurement or upgrading of educational facility. For private schools that do not require reasonable returns, this amount should be equivalent to no less than 25% of the annual increase of its net assets as determined in accordance with generally accepted accounting principles in the PRC. For the Group’s private schools, amount contributed to the reserve of RMB260, RMB3,152 and RMB2,874 for the years ended December 31, 2017, 2018 and 2019. 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 capital and statutory reserves of the Group’s entities in the PRC. The aggregate amount of paid-in capital and statutory reserves, which represented the amount of net assets of the Group’s entities in the PRC not available for distribution, was RMB464,399 as of December 31, 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 25 . SUBSEQUENT EVENTS In January 2020, novel coronavirus (“ COVID-19”) has spread rapidly to many parts of China and other parts of the world. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Substantially all of the Group’s revenue and workforce are concentrated in China. Consequently, the COVID-19 outbreak may materially adversely affect the Group’s business operations and its financial condition and operating results for 2020, including but not limited to material negative impact to the Group’s total revenues and significant downward adjustments or impairment to the Group’s long-term assets. Because of the significant uncertainties surrounding the COVID-19 outbreak, the extent of the business disruption and the related financial impact cannot be reasonably estimated at this time. In February 2020, Puxin Limited entered into an amendment agreement with AHA. Pursuant to the agreement, the maturity date of the loans to AHA shall be extended to In February and March 2020, Purong Information and Mr. Yunlong Sha jointly entered into credit agreements with two different third parties. Each agreement will provide credit facility at RMB350,000 to Purong Information. Purong Information, with an advance notice, can draw down amounts within the credit facility and Purong Information's obligations under these credit agreements are guaranteed by Mr. Yunlong Sha. |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company | CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEET (In thousands of RMB and USD, except for share, and per share data) As of December 31, 2018 2019 2019 RMB RMB USD (Note 3) ASSETS Current assets Cash and cash equivalents 437,613 3,103 446 Amounts due from subsidiaries and VIEs 867,467 1,099,759 157,970 Prepaid expenses and other current assets — 11,448 1,644 Loan receivable — 191,230 27,468 Total current assets 1,305,080 1,305,540 187,528 TOTAL ASSETS 1,305,080 1,305,540 187,528 LIABILITIES Current liabilities Accrued expenses and other current liabilities 5,767 7,258 1,042 Promissory notes, current portion 171,888 87,023 12,500 Total current liabilities 177,655 94,281 13,542 Non-current liabilities Promissory note, non-current portion — 87,022 12,500 Derivative liabilities 63,942 172,235 24,740 Investments deficit in subsidiaries and VIEs 515,590 690,822 99,230 TOTAL LIABILITIES 757,187 1,044,360 150,012 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 188,627,228 shares issued and 165,038,164 and 174,025,810 shares outstanding as of December 31, 2018 and 2019, respectively) 62 62 9 Additional paid-in capital 1,944,325 2,175,652 312,513 Statutory reserve 4,595 7,979 1,146 Accumulated other comprehensive income 68,214 68,707 9,869 Accumulated deficit (1,469,303 ) (1,991,220 ) (286,021 ) TOTAL SHAREHOLDERS’ EQUITY 547,893 261,180 37,516 TOTAL LIABILITIES AND TOTAL SHAREHOLDERS’ EQUITY 1,305,080 1,305,540 187,528 ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF OPERATIONS (In thousands of RMB and USD, except for share, and per share data) For the years ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD (Note 3) General and administrative expenses — 8,728 12,102 1,738 Total operating expenses — 8,728 12,102 1,738 Interest expense 5,556 13,218 15,250 2,191 Interest income — 2,104 10,985 1,578 Foreign exchange loss — 10,358 3,753 539 Loss on changes in fair value of convertible notes, derivative liabilities and warrants 60,136 124,648 104,589 15,023 Equity in loss of subsidiaries and VIEs 331,621 678,563 393,824 56,569 Loss before income taxes (397,313 ) (833,411 ) (518,533 ) (74,482 ) Income tax expenses — — — — Net loss (397,313 ) (833,411 ) (518,533 ) (74,482 ) ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (In thousands of RMB and USD, except for share, and per share data) For the years ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD (Note 3) Net loss (397,313 ) (833,411 ) (518,533 ) (74,482 ) Other comprehensive loss, net of tax: Change in cumulative foreign currency translation adjustments 15,718 52,496 493 71 Total comprehensive loss (381,595 ) (780,915 ) (518,040 ) (74,411 ) ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS (In thousands of RMB and USD) For the years ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD (Note 3) CASH FLOWS FROM OPERATING ACTIVITIES Net loss (397,313 ) (833,411 ) (518,533 ) (74,482 ) Adjustments to reconcile net loss to net cash generated from operating activities: Equity in loss of subsidiaries and VIEs 331,621 678,563 393,824 56,569 Foreign exchange loss — 10,358 3,753 539 Loss on changes in fair value of convertible notes, derivative liabilities and warrants 60,136 124,648 104,589 15,023 Changes in operating assets and liabilities: Prepaid expenses and other current assets — — (10,449 ) (1,501 ) Accrued expenses and other current liabilities 5,556 (5,230 ) 1,409 202 Net cash used in operating activities — (25,072 ) (25,407 ) (3,650 ) CASH FLOWS FROM INVESTING ACTIVITIES Loans to subsidiaries and VIEs (488,676 ) (396,495 ) (221,418 ) (31,805 ) Loans to a third party — — (191,230 ) (27,468 ) Net cash used in investing activities (488,676 ) (396,495 ) (412,648 ) (59,273 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from IPO (net of IPO expenses) — 811,001 — — Proceeds from convertible notes 321,206 — — — Proceeds from promissory note 168,180 — — — Net cash generated from financing activities 489,386 811,001 — — Effect of exchange rate changes 3,696 43,773 3,545 510 Net increase in cash and cash equivalents, and restricted cash 4,406 433,207 (434,510 ) (62,413 ) Cash and cash equivalents, and restricted cash at beginning of the year — 4,406 437,613 62,859 Cash and cash equivalents, and restricted cash at end of the year 4,406 437,613 3,103 446 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, 2019 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.9618, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2019. 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, 2019, or at any other rate. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. |
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 interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. |
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. The carrying values of financial instruments, which consist of cash and cash equivalents, restricted cash, amounts due from related parties, other receivables, other payables, amounts due to related parties and short-term bank borrowings are recorded at cost which approximates their fair value due to the short-term nature of these instruments. |
Financial instruments | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, other receivables, loan receivable, other payables, amounts due to related parties, bank borrowings, loans payable to third parties, convertible notes, promissory notes and derivative liabilities and warrants. |
Convertible notes | Convertible notes Convertible notes for which the fair value option are elected are carried at fair value, with changes in fair value recognized in earnings. |
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, 2019 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.9618, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2019. 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, 2019, 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 bank borrowings are fully repaid |
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, 2017, 2018 and 2019 based on the result of the assessment. |
Property, plant and equipment, net | 2. -continued 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 estimated economic life 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 tested for impairment annually at the end of the fourth quarter, or sooner if impairment indicators arise. In the evaluation of goodwill for impairment, the Group may perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is not, no further analysis is required. If it is, a prescribed two-step goodwill impairment test is performed to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit, if any. 2. -continued Goodwill and intangible assets -continued The first step in the two-step impairment test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The fair value of a reporting unit is estimated by applying valuation multiples and/or estimating future discounted cash flows. The selection of multiples is dependent upon assumptions regarding future levels of operating performance as well as business trends and prospects, and industry, market and economic conditions. When estimating future discounted cash flows, the Group considers the assumptions that hypothetical marketplace participants would use in estimating future cash flows. In addition, where applicable, an appropriate discount rate is used, based on an industry-wide average cost of capital or location-specific economic factors. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit). If the implied fair value of goodwill exceeds the carrying amount, goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. Based on the result of annual goodwill impairment assessment, no impairment charge was recognized for the years ended December 31, 2017, 2018 and 2019. 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 years & Indefinite Relationship with partnership school 6.4 years Franchise agreement 3.4 years 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Goodwill and intangible assets -continued The Group has determined that certain trademarks do not have determinable useful lives. Consequently, the carrying amount of 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 value of the trademarks with their carrying amount 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. No impairment loss was recorded during the years ended December 31, 2017, 2018, and 2019. |
Impairment of long-lived assets | Impairment of long-lived 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, 2017, 2018 and 2019. |
Revenue recognition and Deferred revenue | Revenue recognition On January 1, 2018, the Group adopted ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606) applying the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Group recorded a net reduction to opening accumulated deficit of RMB48,316 as of January 1, 2018 due to the cumulative impact of adopting Topic 606. 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 December 31, 2017 2018 2019 RMB RMB RMB Services: K-12 tutoring services - group class 611,268 817,843 1,103,607 K-12 tutoring services - personalized 272,880 364,554 553,654 K-12 tutoring services - full-time — — 286,593 Study-abroad test preparation services 334,288 860,687 941,537 Study-abroad consulting services 64,126 185,033 218,567 Total net revenues 1,282,562 2,228,117 3,103,958 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Revenue recognition -continued The following is a description of principal activities from which the Group generates revenue and related revenue recognition policies. (i) K-12 tutoring services 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 after-school group class courses, personalized tutoring courses and full-time tutoring courses. The K-12 tutoring services are accounted for as a single performance obligation. Tuition fees are generally collected in advance and are initially recorded as deferred revenue. Deferred revenue is recognized proportionately as the tutoring sessions are delivered. Tuition refunds are provided to students if they decide within the trial period that they no longer want to take the course. For some K-12 courses, the Group also offers refunds for any remaining classes to students who withdraw from the course. The refund is equal to the amount related to the undelivered class. The Group determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. (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 not to take the remaining course after the trial class. No refund will be provided to a student who withdraws from a course after the trial period. 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 prepaid fee based on the scope of consulting services requested by the student. Portion of the prepaid services fee are refundable if the student does not successfully gain admission, which are accounted for as variable consideration under Topic 606. The study-abroad consulting services are accounted for as a single performance obligation. The Group estimates the variable consideration to be earned and recognizes revenue over the service period. Remaining performance obligations represents the transaction price of contracts for which service has not been performed under study-abroad consulting services. As of December 31, 2019, the aggregate amount of the transaction price related to the remaining performance obligations was RMB175,486. The Group estimates that revenue RMB118,162 and RMB43,016 on the remaining performance obligations to be recognized over the next 12 and 24 months, respectively, with the remainder, at RMB14,308, 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Revenue recognition -continued Practical expedients and exemptions The Group incurs sales commissions primarily for K-12 tutoring services and study-abroad test preparation services which are expensed when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing 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 On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program were phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Businesses in the Pilot Program would pay VAT instead of business tax. Starting from May 1, 2016, the Pilot Program was promoted nationwide in a comprehensive manner in the PRC. With the implementation of the Pilot Program, the Group’s certain subsidiaries and schools are subject to VAT at the rate of 3%, as small scale VAT payer, and the remaining subsidiaries and schools are subject to VAT at the rate of 6%, as general VAT payer, which were all previously subject to business tax. The net VAT balance between input VAT and output VAT is recorded as accrued expenses and other current liabilities in the Group’s consolidated financial statements. 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. |
Leases | Leases The Group leases offices and schools in different cities in the PRC under operating leases. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. The Group measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Group estimates its incremental borrowing rate based on an analysis of publicly traded debt securities of companies with credit and financial profiles similar to its own. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing rent expense when the lessor makes the underlying asset available to the Group. The Group’s leases have remaining lease terms of up to ten years, some of which include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group did not include renewal option periods in the lease term for which it is not reasonably certain to exercise. |
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 that a portion of or all of the deferred tax assets will not be realized. The impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. |
Share-based compensation | Share-based 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 method when dilutive, and (iii) convertible redeemable participating preferred shares, which are included under the if-converted method when dilutive. The Group’s convertible redeemable participating preferred shares are participating securities as they participate in undistributed earnings on an as-if-converted basis. Accordingly, the Group uses the two-class method whereby undistributed net income is allocated on a pro rata basis to the ordinary shares and preferred shares to the extent that each class may share in income for the period; whereas the undistributed net loss for the period is allocated to ordinary shares only because the convertible redeemable participating preferred shares are not contractually obligated to share the loss. The computation of diluted net loss per share for the years ended December 31, 2017, 2018 and 2019 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 of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. |
Significant risks and uncertainties | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued 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 Peoples 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 to RMB279,162 and RMB281,450 as of December 31, 2018 and 2019, respectively. 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, 2018 and 2019, 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 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 update 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 update 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 has evaluated the effect of the adoption of this ASU and does not expect there will be In January 2017, FASB issued ASU No. 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 has evaluated the effect of the adoption of this ASU and does not expect there will be 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. This guidance will be adopted using a retrospective approach and is effective for the Group on January 1, 2020. The Group has evaluated the effect of the adoption of this ASU and does not expect there will be |
Newly adopted accounting pronouncements | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued Newly adopted accounting pronouncements In February 2016, the FASB issued . The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public companies, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In July 2018, ASU 2016-02 was updated with ASU No. 2018-11, Targeted Improvements to ASC 842, which provides entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 (the “optional transition method”) and (2) lessors may elect not to separate lease and nonlease components when certain conditions are met. Before ASU 2018-11 was issued, transition to the new lease standard required application of the new guidance at the beginning of the earliest comparative period presented in the financial statements. The Group adopted Topic 842 on January 1, 2019 using the modified retrospective transition approach allowed under ASU 2018-11, without adjusting the comparative periods presented. The Group elected the practical expedients under ASU 2016-02 which includes the use of hindsight in determining the lease term and the practical expedient package to not reassess whether any expired or existing contracts are or contain leases, to not reassess the classification of any expired or existing leases, and to not reassess initial direct costs for any existing leases. Upon adoption of Topic 842, the Group recognized both a right-of-use assets and corresponding lease liabilities of RMB1,045,941 and RMB970,382, respectively, on the balance sheet. The difference between the right-of-use assets and lease liabilities was due to prepaid rent. The adoption did not have a material impact on the Group’s consolidated statements of operations or consolidated statements of cash flows upon adoption as described in Note 21. The adoption of Topic 842 also did not result in a cumulative-effect adjustment to retained earnings. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019 and for the years ended December 31, 2017, 2018 and 2019 was included in the accompanying consolidated financial statements: As of December 31, 2018 2019 RMB RMB Cash and cash equivalents 232,608 238,907 Prepaid expenses and other current assets 121,145 88,571 Total current assets 363,412 340,789 Total assets 1,627,032 3,569,949 Total current liabilities 1,668,293 3,035,344 Total liabilities 1,862,278 3,914,723 For the years ended December 31, 2017 2018 2019 RMB RMB RMB Net revenues 1,282,562 2,219,638 3,094,044 Net loss (331,621 ) (254,754 ) (31,712 ) Net cash generated from (used in) operating activities 80,266 (81,041 ) 142,437 Net cash used in investing activities (141,025 ) (156,917 ) (219,186 ) Net cash generated from financing activities 140,000 20,505 83,361 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 estimated economic life |
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 years & Indefinite 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 December 31, 2017 2018 2019 RMB RMB RMB Services: K-12 tutoring services - group class 611,268 817,843 1,103,607 K-12 tutoring services - personalized 272,880 364,554 553,654 K-12 tutoring services - full-time — — 286,593 Study-abroad test preparation services 334,288 860,687 941,537 Study-abroad consulting services 64,126 185,033 218,567 Total net revenues 1,282,562 2,228,117 3,103,958 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Acquisition [Line Items] | |
Summary of Results of Operations Attributable to Acquisitions | 3. BUSINESS ACQUISITION -continued 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 December 31, 2017 ZMN Education Beijing GEDU Others RMB RMB RMB Net revenues 39,867 197,853 114,601 Net (loss) (59,169 ) (74,370 ) (13,096 ) For the year ended December 31, 2018 Shandong Zengyu Others RMB RMB Net revenues 8,074 4,495 Net (loss) (1,362 ) (27 ) For the year ended December 31,2019 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 |
ZMN Education | |
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 amortization period RMB Cash and cash equivalents 21,407 Prepaid expenses and other current assets 13,266 Restricted cash 1,008 Property, plant and equipment, net 9,723 3-5 years Rental deposits 7,285 Deferred revenue (208,345 ) Account payables (564 ) Accrued expenses and other current liabilities (32,857 ) Loans from third parties (23,802 ) Intangible assets-trademark 32,400 5.4 years Deferred tax liabilities (8,100 ) Goodwill 324,429 Total 135,850 |
Beijing GEDU | |
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 amortization period RMB Cash and cash equivalents 89,437 Inventories 6,620 Prepaid expenses and other current assets 117,333 Restricted cash 14,332 Property, plant and equipment, net 132,844 2-37 years Deferred tax assets 2,547 Rental deposits 18,381 Accounts payable (6,197 ) Accrued expenses and other current liabilities (79,167 ) Income tax payable (2,505 ) Deferred revenue (221,484 ) Franchise deposits (7,344 ) Intangible assets-trademark 140,000 Indefinite Intangible assets-relationship with partnership school 5,300 6.4 years Intangible assets-franchise agreement 4,400 3.4 years Deferred tax liabilities (54,164 ) Goodwill 323,354 Total 483,687 |
Other 2017 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 amortization period RMB Cash and cash equivalents 15,824 Inventories 256 Prepaid expenses and other current assets 13,221 Amounts due from related parties 63,194 Property, plant and equipment, net 1,377 3-5 years Accrued expenses and other current liabilities (12,388 ) Deferred revenue (85,197 ) Intangible assets-student base 27,100 3.5-5.9 years Deferred tax liabilities (6,775 ) Goodwill 158,158 Total 174,770 |
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 Amortization period RMB Prepaid expenses and other current assets 37,169 Property, plant and equipment, net 1,241 3-5 years Rental deposits 290 Accrued expenses and other current liabilities (2,219 ) Deferred revenue (35,534 ) Intangible assets-student base 6,700 2.2 years 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 Depreciation or 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 years Deferred tax liabilities (275 ) Goodwill 19,876 Total 19,986 |
Beijing Xiaoze | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price for Acquisition | 3. BUSINESS ACQUISITION -continued Acquisition of Beijing Xiaoze Education Technology Co., Ltd. (“Beijing Xiaoze”) 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 Amortization period 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 years Operating lease right-of-use assets 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 | 3. BUSINESS ACQUISITION -continued Acquisition of Xi'an Intest Management Consulting Co., Ltd. (“Xi'an Intest”) 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 Amortization period RMB Cash and cash equivalents 22,245 Prepaid expenses and other current assets 47 Rental deposit 464 Property, plant and equipment, net 2,074 3-5 years Operating lease right-of-use assets 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 | 3. BUSINESS ACQUISITION -continued Acquisition of Dalian Keyuan Culture Consulting Co., Ltd. (“Dalian Keyuan”) 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 Amortization period RMB Cash and cash equivalents 8,223 Prepaid expenses and other current assets 64,330 Rental deposit 931 Property, plant and equipment, net 1,204 3-5 years Operating lease right-of-use assets 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 years 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 Amortization period 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 years Operating lease right-of-use assets 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 |
ZMN Education, Beijing GEDU and Other 2017 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, 2016 and 2017 assuming that the acquisition of ZMN Education, Beijing GEDU and Other 2017 Acquirees which were completed in 2017 occurred as of January 1, 2016. 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 December 31, 2016 2017 RMB RMB Unaudited Unaudited pro forma net revenues 1,318,811 1,882,032 pro forma net (loss) (281,853 ) (511,354 ) |
Shandong Zengyu and Other 2018 Acquirees | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Pro Forma Information | Pro forma information of acquisitions -continued 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 acquisition 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 December 31, 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 acquisition 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 December 31, 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, 2019 | |
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, 2018 2019 RMB RMB Prepaid service fees 45,415 68,913 Staff advances 11,125 20,067 Interest receivable — 17,052 Prepaid rental expenses (Note a) 63,134 — Others 8,964 11,116 128,638 117,148 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of December 31, 2018 2019 RMB RMB Buildings 87,792 87,792 Electronic equipment 67,637 87,658 Motor vehicles 9,652 9,149 Furniture and education equipment 38,994 46,132 Leasehold improvement 163,879 239,148 Total 367,954 469,879 Less: Accumulated depreciation (119,153 ) (171,160 ) 248,801 298,719 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: As of December 31, 2018 2019 RMB RMB Student base 104,854 140,409 Trademark 172,400 216,100 Relationship with partnership school 5,300 5,300 Franchise agreement 4,400 4,400 Total 286,954 366,209 Less: Accumulated amortization (67,976 ) (101,669 ) 218,978 264,540 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019 were as follows: As of December 31, 2018 2019 RMB RMB Costs: Beginning balance 1,152,913 1,243,817 Acquisition of subsidiaries and schools 90,904 812,105 Ending balance 1,243,817 2,055,922 Goodwill impairment loss — — Goodwill, net 1,243,817 2,055,922 |
Accrued Expenses And Other Cu_2
Accrued Expenses And Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 2019 RMB RMB Consideration payable in connection with business acquisitions 48,128 376,187 Salary and welfare payable 216,671 335,024 Refund liabilities (Note a) 92,960 137,510 Accrued expenses 38,676 61,962 Other tax payable 23,264 25,060 Interest payable 9,771 20,342 Payables for purchase of property, plant and equipment 1,332 16,113 Others 5,321 11,517 436,123 983,715 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, 2019 | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | 14. FAIR VALUE MEASUREMENT -continued Measured or disclosed at fair value on a recurring basis -continued 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 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, 2018 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents 778,006 — — 778,006 Restricted cash 40,971 — — 40,971 Promissory notes — 361,888 — 361,888 Derivative liabilities — — 63,942 63,942 Total 818,977 361,888 63,942 1,244,807 |
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, 2017, 2018 and 2019: 14. FAIR VALUE MEASUREMENT -continued Convertible notes Derivative liabilities Warrants Balance as of January 1, 2018 499,192 18,218 — Issuance of convertible notes 50,000 — — Extinguishment of convertible notes (207,300 ) — — Issuance of warrants — — 14,800 Conversion to ordinary shares (438,720 ) — — Changes in fair value 102,260 44,288 (14,800 ) Exchange rate effect (5,432 ) 1,436 — Balance as of December 31, 2018 — 63,942 — Changes in fair value — 104,589 — Exchange rate effect — 3,704 — Balance as of December 31, 2019 — 172,235 — |
Convertible Notes | |
Schedule of Key Assumptions Used in Valuation | The key assumptions used in valuation of convertible notes are summarized in the table below: For the years ended December 31, 2017 2018 Probability for conversion 80 % 80 % Probability for redemption 20 % 20 % Remaining life 2.5–4.8 2.3–4.3 |
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 December 31, 2017 2018 2019 Probability for conversion 80 % 100 % 100 % Exit period 2018/6/30 – 2019/6/30 2018/6/30 – 2019/6/30 2019/12/31 – 2020/12/31 Volatility 40 % 54 % 77 % |
Warrants | |
Schedule of Key Assumptions Used in Valuation | The key assumptions used in valuation of warrants are summarized in the table below: For the year ended December 31, 2018 Probability for conversion — Conversion price discount rate 90% |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017, 2018 and 2019. For the years ended December 31, Grant date 2017 2018 2019 Risk-free interest rate 2.84%-2.97% 3.40 % 2.51 % Volatility 45%-47% 46 % 55 % Dividend yield — — — Exercise multiples 2.2-2.8 2.2-2.8 2.8 Life of options 7.0 7.0 7.0 Fair value of underlying ordinary shares 29.46-48.31 49.67 20.57 |
Summary of Stock Options Activity | The activity in stock options as of December 31, 2019, and changes during the year then ended is presented below: Outstanding options Number of options Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value Options outstanding at January 1, 2019 22,467,373 37.77 Granted 8,879,986 0.01 Exercised 8,987,646 0.10 Forfeited 713,481 38.52 Options outstanding at December 31, 2019 21,646,232 37.78 4.77 123,239 Options vested and expected to vest as of December 31, 2019 21,646,232 37.78 4.77 123,239 Option exercisable as of December 31, 2019 15,841,720 38.13 4.77 91,607 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2017 2018 2019 RMB RMB RMB Current tax expenses 8,258 14,265 20,118 Deferred tax expenses (5,822 ) (8,943 ) (7,930 ) 2,436 5,322 12,188 |
Summary of Principle Components of Deferred Tax | The principle components of deferred taxes were as follows: As of December 31, 2018 2019 RMB RMB Deferred tax assets: Accrued expenses 32,290 42,443 Net operating loss carrying forwards 149,628 222,722 Total deferred tax assets 181,918 265,165 Less: Valuation allowance (178,462 ) (262,966 ) Deferred tax assets, net 3,456 2,199 As of December 31, 2019, the Group had net operating loss carried forward of RMB890,888 from the Company’s PRC entities, which will expire on various dates from December 31, 2020 to December 31, 2024. As of December 31, 2018 2019 RMB RMB Deferred tax liabilities: Acquired intangible assets 71,031 81,969 Total deferred tax liabilities 71,031 81,969 |
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 December 31, 2017 2018 2019 RMB RMB RMB Loss before income taxes (394,798 ) (828,087 ) (507,446 ) Income tax benefit computed at an applicable tax rate of 25% (98,699 ) (207,022 ) (126,862 ) Permanent differences 13,279 106,509 51,216 Effect of income tax rate differences in jurisdictions other than PRC — 38,490 30,189 Effect of preferential tax rate (26 ) (554 ) (12,211 ) Change in valuation allowance 87,882 67,899 69,856 2,436 5,322 12,188 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings 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 December 31, 2017 2018 2019 RMB RMB RMB Numerator used in basic and diluted net loss per share: Net loss attributable to ordinary shareholders of Puxin Limited (397,313 ) (833,411 ) (518,533 ) Shares (denominator): Weighted average common shares outstanding used in computing basic and diluted net loss per share (Note 1) 99,705,361 144,157,947 170,903,317 Net loss per share basic and diluted (3.98 ) (5.78 ) (3.03 ) |
Related Party Transaction (Tabl
Related Party Transaction (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 2019 RMB RMB Amounts due to: Mr. Yunlong Sha 43,993 1,197 Ms. Wenjing Song 10,500 254 54,493 1,451 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease | For the year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases 373,230 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 643,722 Weighted average remaining lease term Operating leases 4.59 years Weighted average discount rate Operating leases 7.46 % |
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 ended December 31: Years ending December 31, 2020 347,647 2021 283,836 2022 194,472 2023 137,684 2024 73,986 Thereafter 159,095 Less imputed interest 226,338 Total 970,382 |
Schedule of Future Minimum Payments Under Non-cancelable Operating Leases | Future minimum payments under non-cancelable operating leases related to offices and schools consisted of the following at December 31, 2018: Years ending December 31, 2019 303,126 2020 217,290 2021 148,625 2022 90,340 2023 20,052 Thereafter 74,954 854,387 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 K-12 Study abroad tutoring services tutoring services Consolidated Net revenues 884,148 398,414 1,282,562 Cost of revenues 555,885 238,457 794,342 Gross profit 328,263 159,957 488,220 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 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Details) - CNY (¥) | Aug. 04, 2017 | Jun. 30, 2018 | Feb. 28, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 75.80% | 59.40% | |||
Percentage of aggregate consolidated liabilities | 88.00% | 85.10% | |||
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 256,763 | ¥ 778,006 | ¥ 164,684 | $ 36,882 | |
Prepaid expenses and other current assets | 117,148 | 128,638 | 16,827 | ||
Total current assets | 927,992 | 916,303 | 133,297 | ||
Total assets | 4,707,055 | 2,737,019 | 676,126 | ||
Total current liabilities | 3,308,361 | 1,931,220 | 475,216 | ||
Total liabilities | 4,446,997 | 2,189,147 | $ 638,771 | ||
Net revenues | 3,103,958 | $ 445,856 | 2,228,117 | 1,282,562 | |
Net loss | (519,634) | (74,640) | (833,409) | (397,234) | |
Net cash generated from (used in) operating activities | 24,684 | 3,544 | (92,905) | 80,266 | |
Net cash used in investing activities | (411,309) | (59,080) | (156,917) | (629,704) | |
Net cash generated from financing activities | 204,246 | $ 29,339 | 831,506 | 629,386 | |
VIE and Subsidiaries and Schools | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 238,907 | 232,608 | |||
Prepaid expenses and other current assets | 88,571 | 121,145 | |||
Total current assets | 340,789 | 363,412 | |||
Total assets | 3,569,949 | 1,627,032 | |||
Total current liabilities | 3,035,344 | 1,668,293 | |||
Total liabilities | 3,914,723 | 1,862,278 | |||
Net revenues | 3,094,044 | 2,219,638 | 1,282,562 | ||
Net loss | (31,712) | (254,754) | (331,621) | ||
Net cash generated from (used in) operating activities | 142,437 | (81,041) | 80,266 | ||
Net cash used in investing activities | (219,186) | (156,917) | (141,025) | ||
Net cash generated from financing activities | ¥ 83,361 | ¥ 20,505 | ¥ 140,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Jan. 01, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Renminbi ("RMB") to per one U.S. dollar exchange rate | 6.9618 | 6.9618 | ||||||||
Valuation allowance for loan receivables | ¥ 0 | ¥ 0 | ¥ 0 | |||||||
Goodwill impairment charge | $ | $ 0 | $ 0 | $ 0 | |||||||
Accumulated deficit | (1,991,220,000) | $ (286,021,000) | (1,469,303,000) | |||||||
Refund liability after the trial period | [1] | 137,510,000 | 92,960,000 | |||||||
Remaining performance obligations, amount | 175,486,000 | |||||||||
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 | 281,450,000 | ¥ 279,162,000 | ||||||||
Operating lease, right-of-use asset | ¥ 1,045,941,000 | 150,240,000 | ||||||||
Study-abroad test preparation services | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Refund liability after the trial period | $ | $ 0 | |||||||||
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 | ¥ 48,316,000 | |||||||||
Topic 842 | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Operating lease, right-of-use asset | ¥ 1,045,941,000 | |||||||||
Operating lease, liabilities | ¥ 970,382,000 | |||||||||
[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. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of the Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 | |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | ¥ 3,103,958 | $ 445,856 | ¥ 2,228,117 | ¥ 1,282,562 |
K-12 tutoring services - group class | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 1,103,607 | 817,843 | 611,268 | |
K-12 tutoring services - personalized | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 553,654 | 364,554 | 272,880 | |
K-12 tutoring services - full-time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 286,593 | |||
Study-abroad test preparation services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 941,537 | 860,687 | 334,288 | |
Study-abroad consulting services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | ¥ 218,567 | ¥ 185,033 | ¥ 64,126 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Additional Information (Details 1) ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 175,486 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 118,162 |
Remaining performance obligations, revenue recognition period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 43,016 |
Remaining performance obligations, revenue recognition period | 24 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations, amount | ¥ 14,308 |
Remaining performance obligations, revenue recognition period |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) ¥ in Thousands, $ in Thousands | Nov. 29, 2019CNY (¥) | Jul. 09, 2019CNY (¥) | Jul. 01, 2019CNY (¥) | Nov. 01, 2018CNY (¥) | Aug. 16, 2017CNY (¥) | Aug. 16, 2017USD ($) | Jul. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥) |
ZMN Education | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of equity interest acquired | 100.00% | |||||||||
Total consideration for acquisition | ¥ 135,850 | |||||||||
Total cash consideration for acquisition | ¥ 65,250 | |||||||||
Beijing GEDU | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of equity interest acquired | 100.00% | 100.00% | ||||||||
Total cash consideration for acquisition | ¥ 483,687 | $ 72,300 | ||||||||
Other 2017 Acquirees | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of equity interest acquired | 100.00% | |||||||||
Total consideration for acquisition | ¥ 174,770 | |||||||||
Total cash consideration for acquisition | ¥ 155,170 | |||||||||
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 | shares | 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 |
Business Acquisition - Allocati
Business Acquisition - Allocation of Purchase Price for Acquisition (Details) ¥ in Thousands, $ in Thousands | Nov. 29, 2019CNY (¥) | Jul. 09, 2019CNY (¥) | Jul. 01, 2019CNY (¥) | Nov. 01, 2018CNY (¥) | Aug. 16, 2017CNY (¥) | Jul. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||||||||
Goodwill | ¥ 2,055,922 | ¥ 1,243,817 | $ 295,315 | |||||||
Trademark | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, intangible assets | 5 years 4 months 24 days | |||||||||
Relationship with Partnership School | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, intangible assets | 6 years 4 months 24 days | |||||||||
Franchise Agreement | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, intangible assets | 3 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 | |||||||||
ZMN Education | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash and cash equivalents | ¥ 21,407 | |||||||||
Prepaid expenses and other current assets | 13,266 | |||||||||
Restricted cash | 1,008 | |||||||||
Property, plant and equipment, net | 9,723 | |||||||||
Rental deposits | 7,285 | |||||||||
Deferred revenue | (208,345) | |||||||||
Account payables | (564) | |||||||||
Accrued expenses and other current liabilities | (32,857) | |||||||||
Loans from third parties | (23,802) | |||||||||
Deferred tax liabilities | (8,100) | |||||||||
Goodwill | 324,429 | |||||||||
Total | ¥ 135,850 | |||||||||
ZMN Education | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | |||||||||
ZMN Education | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | |||||||||
ZMN Education | Trademark | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | ¥ 32,400 | |||||||||
Depreciation or amortization period, intangible assets | 5 years 4 months 24 days | |||||||||
Beijing GEDU | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash and cash equivalents | ¥ 89,437 | |||||||||
Inventories | 6,620 | |||||||||
Prepaid expenses and other current assets | 117,333 | |||||||||
Restricted cash | 14,332 | |||||||||
Property, plant and equipment, net | 132,844 | |||||||||
Deferred tax assets | 2,547 | |||||||||
Rental deposits | 18,381 | |||||||||
Deferred revenue | (221,484) | |||||||||
Account payables | (6,197) | |||||||||
Accrued expenses and other current liabilities | (79,167) | |||||||||
Income tax payable | (2,505) | |||||||||
Franchise deposits | (7,344) | |||||||||
Deferred tax liabilities | (54,164) | |||||||||
Goodwill | 323,354 | |||||||||
Total | 483,687 | |||||||||
Beijing GEDU | Trademark | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | ¥ 140,000 | |||||||||
Depreciation or amortization period, intangible assets | Indefinite | |||||||||
Beijing GEDU | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, property, plant and equipment, net | 2 years | |||||||||
Beijing GEDU | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, property, plant and equipment, net | 37 years | |||||||||
Beijing GEDU | Relationship with Partnership School | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | ¥ 5,300 | |||||||||
Depreciation or amortization period, intangible assets | 6 years 4 months 24 days | |||||||||
Beijing GEDU | Franchise Agreement | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | ¥ 4,400 | |||||||||
Depreciation or amortization period, intangible assets | 3 years 4 months 24 days | |||||||||
Other 2017 Acquirees | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash and cash equivalents | ¥ 15,824 | |||||||||
Inventories | 256 | |||||||||
Prepaid expenses and other current assets | 13,221 | |||||||||
Amounts due from related parties | 63,194 | |||||||||
Property, plant and equipment, net | 1,377 | |||||||||
Deferred revenue | (85,197) | |||||||||
Accrued expenses and other current liabilities | (12,388) | |||||||||
Deferred tax liabilities | (6,775) | |||||||||
Goodwill | 158,158 | |||||||||
Total | ¥ 174,770 | |||||||||
Other 2017 Acquirees | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, property, plant and equipment, net | 3 years | |||||||||
Other 2017 Acquirees | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, property, plant and equipment, net | 5 years | |||||||||
Other 2017 Acquirees | Student Base | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | ¥ 27,100 | |||||||||
Other 2017 Acquirees | Student Base | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, intangible assets | 3 years 6 months | |||||||||
Other 2017 Acquirees | Student Base | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, intangible assets | 5 years 10 months 24 days | |||||||||
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 | Trademark | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Depreciation or amortization period, intangible assets | Indefinite | |||||||||
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 | |||||||||
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 |
Business Acquisition - Summary
Business Acquisition - Summary of Results of Operations Attributable to Acquisitions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ZMN Education | |||
Business Acquisition [Line Items] | |||
Net revenues | ¥ 39,867 | ||
Net income (loss) | (59,169) | ||
Beijing GEDU | |||
Business Acquisition [Line Items] | |||
Net revenues | 197,853 | ||
Net income (loss) | (74,370) | ||
Other 2017 Acquirees | |||
Business Acquisition [Line Items] | |||
Net revenues | 114,601 | ||
Net income (loss) | ¥ (13,096) | ||
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 |
Business Acquisition - Unaudite
Business Acquisition - Unaudited Pro forma Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
ZMN Education, Beijing GEDU and Other 2017 Acquirees | ||||
Business Acquisition [Line Items] | ||||
pro forma net revenues | ¥ 1,882,032 | ¥ 1,318,811 | ||
pro forma net (loss) | (511,354) | ¥ (281,853) | ||
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) |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Prepaid service fees | ¥ 68,913 | ¥ 45,415 | |
Staff advances | 20,067 | 11,125 | |
Interest receivable | 17,052 | ||
Prepaid rental expenses (Note a) | 63,134 | ||
Others | 11,116 | 8,964 | |
Prepaid expenses and other current assets | ¥ 117,148 | $ 16,827 | ¥ 128,638 |
Loan Receivable - Additional In
Loan Receivable - Additional Information (Details) - 12 months ended Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Accounts Notes And Loans Receivable [Line Items] | ||
Advance from third parties | ¥ 133,200 | |
AHA | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Advance from third parties | ¥ 191,230 | $ 27,468 |
Rate of interests | 18.00% | |
Loan agreement term | 12 months |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant And Equipment (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Total | ¥ 469,879 | ¥ 367,954 | |
Less: Accumulated depreciation | (171,160) | (119,153) | |
Property, plant and equipment, net | 298,719 | $ 42,908 | 248,801 |
Buildings | |||
Property Plant And Equipment [Line Items] | |||
Total | 87,792 | 87,792 | |
Electronic Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total | 87,658 | 67,637 | |
Motor Vehicles | |||
Property Plant And Equipment [Line Items] | |||
Total | 9,149 | 9,652 | |
Furniture and Education Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total | 46,132 | 38,994 | |
Leasehold Improvement | |||
Property Plant And Equipment [Line Items] | |||
Total | ¥ 239,148 | ¥ 163,879 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expenses | ¥ 77,859 | $ 11,184 | ¥ 57,696 | ¥ 20,545 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | ¥ 366,209 | ¥ 286,954 | |
Less: Accumulated amortization | (101,669) | (67,976) | |
Intangible assets, net | 264,540 | $ 37,999 | 218,978 |
Student Base | |||
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 140,409 | 104,854 | |
Trademarks | |||
Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 216,100 | 172,400 | |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | ¥ 34,938 | $ 5,019 | ¥ 32,749 | ¥ 23,644 |
Amortization expenses for the year ended December 31, 2020 | 36,072 | |||
Amortization expenses for the year ended December 31, 2021 | 23,301 | |||
Amortization expenses for the year ended December 31, 2022 | 17,626 | |||
Amortization expenses for the year ended December 31, 2023 | 3,786 | |||
Amortization expenses for the year ended December 31, 2024 | ¥ 55 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Beginning balance | ¥ 1,243,817,000 | ¥ 1,152,913,000 | ||
Acquisition of subsidiaries and schools | 812,105,000 | 90,904,000 | ||
Ending balance | 2,055,922,000 | 1,243,817,000 | ¥ 1,152,913,000 | |
Goodwill impairment loss | 0 | 0 | ¥ 0 | |
Goodwill | ¥ 2,055,922,000 | ¥ 1,243,817,000 | $ 295,315 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Accrued Liabilities Current [Abstract] | ||||
Consideration payable in connection with business acquisitions | ¥ 376,187 | ¥ 48,128 | ||
Salary and welfare payable | 335,024 | 216,671 | ||
Refund liabilities | [1] | 137,510 | 92,960 | |
Accrued expenses | 61,962 | 38,676 | ||
Other tax payable | 25,060 | 23,264 | ||
Interest payable | 20,342 | 9,771 | ||
Payables for purchase of property, plant and equipment | 16,113 | 1,332 | ||
Others | 11,517 | 5,321 | ||
Accrued expenses and other current liabilities | ¥ 983,715 | $ 141,302 | ¥ 436,123 | |
[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 | ||||
Apr. 30, 2019CNY (¥) | Nov. 30, 2018CNY (¥) | Apr. 30, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||
Interest expense on bank borrowings | ¥ 13,269 | ¥ 1,148 | ||||
Bank Borrowing Agreement | Dalian Tongfang | SPD Bank | Puxin Education, Mr. Yunlong Sha and Ms. Wenjing as Joint Guarantors | ||||||
Debt Instrument [Line Items] | ||||||
Bank borrowing agreement amount | ¥ 10,000 | |||||
Annual interest rate | 6.30% | |||||
Bank borrowing term | 12 months | |||||
Bank Borrowing Agreement | Puxin Education | SPD Bank | ||||||
Debt Instrument [Line Items] | ||||||
Bank borrowing agreement amount | ¥ 408,600 | |||||
Annual interest rate | 4.35% | 4.35% | ||||
Deposits amount | ¥ 348,090 | $ 50,000 | ||||
Repayment of bank borrowings amount | ¥ 94,500 | |||||
Bank Borrowing Agreement | Puxin Education | SPD Bank | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Bank borrowing term | 12 months | |||||
Bank Borrowing Agreement | Puxin Education | SPD Bank | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Bank borrowing term | 6 months | |||||
Bank Borrowing Agreement | Puxin Education | SPD Bank | Puxin Limited as Pledger | ||||||
Debt Instrument [Line Items] | ||||||
Bank borrowing agreement amount | ¥ 96,600 | |||||
Annual interest rate | 4.35% | |||||
Bank borrowing term | 6 months | |||||
Bank Borrowing Agreement | Puxin Education | Bank of Jiangsu | ||||||
Debt Instrument [Line Items] | ||||||
Bank borrowing agreement amount | ¥ 4,273 | |||||
Annual interest rate | 6.525% | |||||
Bank borrowing term | 12 months | |||||
Bank Borrowing Agreement | Puxin Education | Xiamen International Bank | Beijing GEDU | ||||||
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 | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)Agreement | Dec. 31, 2019USD ($)Agreement | Dec. 31, 2018CNY (¥)Agreement | Dec. 31, 2017CNY (¥) | |
Debt Instrument [Line Items] | ||||
Advance from third parties | ¥ 133,200 | |||
Percentage of equity interests pledged | 100.00% | |||
Interest expense | ¥ 71,099 | $ 10,213 | ¥ 51,901 | ¥ 5,556 |
Puxin Education | ||||
Debt Instrument [Line Items] | ||||
Advance from third parties | ¥ 162,938 | ¥ 60,000 | ||
Number of other loan agreements | Agreement | 3 | 3 | 4 | |
Number of other loans repaid during the period | Agreement | 4 | |||
Puxin Education | Loans | ||||
Debt Instrument [Line Items] | ||||
Interest expense | ¥ 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 | 3 months | |
Puxin Education | Maximum | ||||
Debt Instrument [Line Items] | ||||
Rate of interests | 14.00% | 14.00% | 5.655% | |
Loan agreement term | 6 months | 6 months | 1 month | |
Puxin Education | Taiyuan Puxin Culture and Arts Co., Ltd and Mr. Yunlong Sha | ||||
Debt Instrument [Line Items] | ||||
Advance from third parties | ¥ 29,500 | |||
Loan agreement term | 12 months | |||
Puxin Education | Taiyuan Puxin Culture and Arts Co., Ltd and Mr. Yunlong Sha | Minimum | ||||
Debt Instrument [Line Items] | ||||
Rate of interests | 8.00% | |||
Puxin Education | Taiyuan Puxin Culture and Arts Co., Ltd and Mr. Yunlong Sha | Maximum | ||||
Debt Instrument [Line Items] | ||||
Rate of interests | 9.00% | |||
Puxin Education | Taiyuan Puxin Art, Shanghai GEDU, Mr. Yunlong Sha and Ms. Wenjing Song | ||||
Debt Instrument [Line Items] | ||||
Advance from third parties | ¥ 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% | ||
Loan agreement term | 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 | 9.50% | 9.50% | ||
Loan agreement term | 12 months | 12 months | ||
Puxin Education | Mr. Yunlong Sha | ||||
Debt Instrument [Line Items] | ||||
Advance from third parties | ¥ 30,000 | |||
Taiyuan Puxin Arts | Puxin Education and Mr. Yunlong Sha | ||||
Debt Instrument [Line Items] | ||||
Advance from third parties | ¥ 50,000 | |||
Loan agreement term | 6 months | |||
Taiyuan Puxin Arts | Puxin Education and Mr. Yunlong Sha | Minimum | ||||
Debt Instrument [Line Items] | ||||
Rate of interests | 8.20% | 8.20% | ||
Taiyuan Puxin Arts | Puxin Education and Mr. Yunlong Sha | Maximum | ||||
Debt Instrument [Line Items] | ||||
Rate of interests | 8.80% | 8.80% |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) $ / shares in Units, $ 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, 2020 | Jun. 30, 2020 | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 29, 2017USD ($)$ / shares | Aug. 04, 2017USD ($)$ / shares |
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Net profit | ¥ (519,634,000) | $ (74,640) | ¥ (833,409,000) | ¥ (397,234,000) | ||||||||||||||||
Proceeds from convertible notes | 461,206,000 | |||||||||||||||||||
Huazhong | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Fair value of convertible note | ¥ 207,300,000 | ¥ 207,300,000 | ¥ 207,300,000 | 150,200,000 | ||||||||||||||||
Changes in fair value of convertible notes | ¥ 10,200,000 | |||||||||||||||||||
Proceeds from convertible notes | 190,000,000 | |||||||||||||||||||
Huazhong | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Line of credit facility | ¥ 300,000,000 | |||||||||||||||||||
Drawn down a principal amount | ¥ 190,000,000 | ¥ 190,000,000 | ¥ 190,000,000 | |||||||||||||||||
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 months | 58th months | ||||||||||||||||||
Accrued unpaid interest rate per annum | 18.00% | |||||||||||||||||||
Lock-up period expiration term | 3 months | |||||||||||||||||||
Debt instrument principle amount | ¥ 193,400,000 | ¥ 193,400,000 | ¥ 193,400,000 | |||||||||||||||||
Warrants issued | ¥ 14,800,000 | |||||||||||||||||||
Loss (gain) on change in fair value of convertible notes | ¥ 7,100,000 | ¥ (14,800,000) | ||||||||||||||||||
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 | 80.00% | 80.00% | 90.00% | 90.00% | ||||||||||||||||
Huazhong | Maximum | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Percentage of internal rate of return | 18.00% | |||||||||||||||||||
Net profit | ¥ 950,000,000 | |||||||||||||||||||
Huazhong | Minimum | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Percentage of internal rate of return | 30.00% | |||||||||||||||||||
Huazhong | Scenario Forecast | IPO | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Conversion rate of public offering price of the ordinary shares | 70.00% | |||||||||||||||||||
Haitong | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Loss (gain) on change in fair value of convertible notes | ¥ 42,792,000 | $ 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 | ¥ 168,180,000 | $ 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% | |||||||||||||||||||
Annual interest rate | 15.00% | 15.00% | ||||||||||||||||||
Debt instrument maturity term | 4 years | |||||||||||||||||||
Debt instrument principle amount | ¥ 153,026,000 | $ 23,000 | ||||||||||||||||||
Loss (gain) on change in fair value of convertible notes | ¥ 52,368,000 | $ 8,217 | ||||||||||||||||||
Fair value of derivative liabilities | ¥ 172,235,000 | 63,942,000 | $ 24,740 | $ 9,300 | ||||||||||||||||
Changes in fair value of derivative liabilities | ¥ 104,589,000 | $ 15,440 | ¥ 44,288,000 | $ 6,500 | ||||||||||||||||
CICC ALPHA | Maximum | Convertible Debt | Floor Return | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Percentage of internal rate of return | 25.00% | |||||||||||||||||||
CICC ALPHA | Minimum | Convertible Debt | Founder Awards | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Percentage of internal rate of return | 30.00% | |||||||||||||||||||
CICC ALPHA | Scenario Forecast | Convertible Debt | ||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||
Conversion rate of public offering price of the ordinary shares | 55.00% |
Promissory Notes - Additional I
Promissory Notes - Additional Information (Details) ¥ in Thousands, $ in Thousands | Aug. 04, 2017CNY (¥) | Feb. 28, 2018 | Feb. 28, 2018 | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Aug. 04, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||
Recognized interest expense | ¥ 71,099 | $ 10,213 | ¥ 51,901 | ¥ 5,556 | |||||
Promissory Note | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument principle amount | ¥ 168,180 | $ 25,000 | |||||||
Annual interest rate | 8.00% | 10.00% | 10.00% | 8.00% | |||||
Debt instrument maturity term | 2 years | ||||||||
Recognized interest expense | ¥ 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 | Third Anniversary | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument principle amount | ¥ 87,023 | $ 12,500 | |||||||
Debt instrument, maturity date | 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 | Aug. 4, 2021 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Key Assumptions Used in Valuation of Convertible Notes (Details) - Convertible Notes | Dec. 31, 2018 | Dec. 31, 2017 |
Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Remaining life | 2 years 3 months 18 days | 2 years 6 months |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Remaining life | 4 years 3 months 18 days | 4 years 9 months 18 days |
Probability for Conversion | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.80 | 0.80 |
Probability for Redemption | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.20 | 0.20 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Exit period | Dec. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2018 |
Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Exit period | Dec. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2019 |
Probability for Conversion | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Measurement input | 1 | 1 | 0.80 |
Volatility | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Measurement input | 0.77 | 0.54 | 0.40 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Key Assumptions Used in Valuation of Warrants (Details) | Dec. 31, 2018 |
Warrants | Conversion Price Discount Rate | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Measurement input | 0.90 |
Fair Value Measurement - Sche_3
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, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ¥ 256,763 | ¥ 778,006 |
Restricted cash | 386,267 | 40,971 |
Promissory notes | 174,045 | 361,888 |
Derivative liabilities | 172,235 | 63,942 |
Total | 989,310 | 1,244,807 |
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 | 256,763 | 778,006 |
Restricted cash | 386,267 | 40,971 |
Promissory notes | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total | 643,030 | 818,977 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Promissory notes | 174,045 | 361,888 |
Derivative liabilities | 0 | 0 |
Total | 174,045 | 361,888 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Promissory notes | 0 | 0 |
Derivative liabilities | 172,235 | 63,942 |
Total | ¥ 172,235 | ¥ 63,942 |
Fair Value Measurement - Sche_4
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) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Convertible Notes | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | ¥ 0 | ¥ 499,192 |
Issuance of convertible notes | 50,000 | |
Extinguishment of convertible notes | (207,300) | |
Issuance of warrants | 0 | |
Conversion to ordinary shares | (438,720) | |
Changes in fair value | 0 | 102,260 |
Exchange rate effect | 0 | (5,432) |
Ending Balance | 0 | 0 |
Derivative Liabilities | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 63,942 | 18,218 |
Issuance of convertible notes | 0 | |
Extinguishment of convertible notes | 0 | |
Issuance of warrants | 0 | |
Conversion to ordinary shares | 0 | |
Changes in fair value | 104,589 | 44,288 |
Exchange rate effect | 3,704 | 1,436 |
Ending Balance | 172,235 | 63,942 |
Warrants | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 0 | 0 |
Issuance of convertible notes | 0 | |
Extinguishment of convertible notes | 0 | |
Issuance of warrants | 14,800 | |
Conversion to ordinary shares | 0 | |
Changes in fair value | 0 | (14,800) |
Exchange rate effect | 0 | 0 |
Ending Balance | ¥ 0 | ¥ 0 |
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, 2019CNY (¥) | Dec. 31, 2019CNY (¥)$ / shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2017$ / shares | 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 | $ 27.53 | |||||||||||
Stock options exercised, total intrinsic value | ¥ | ¥ 255,728 | ¥ 681 | ¥ 39,716 | |||||||||||
Fair value of options vested | ¥ | 220,040 | 302,331 | 29,645 | |||||||||||
Share-based compensation expense | ¥ | 230,440 | 345,503 | ¥ 55,835 | |||||||||||
Unrecognized compensation of stock options | ¥ | ¥ 62,498 | $ 62,498 | ||||||||||||
Unrecognized stock-based compensation expense, period for recognition | 2 years 6 months 10 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 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.51% | 3.40% | |
Risk-free interest rate, minimum | 2.84% | ||
Risk-free interest rate, maximum | 2.97% | ||
Volatility | 55.00% | 46.00% | |
Volatility, minimum | 45.00% | ||
Volatility, maximum | 47.00% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Exercise multiples | $ 2.8 | ||
Life of options | 7 years | 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 | $ 2.2 | |
Fair value of underlying ordinary shares | 29.46 | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Exercise multiples | $ 2.8 | 2.8 | |
Fair value of underlying ordinary shares | $ 48.31 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Options Activity (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥) | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Number of options, options outstanding | shares | 22,467,373 | 22,467,373 | ||
Number of options, granted | shares | 8,879,986 | 8,879,986 | ||
Option exercised, shares | shares | 8,987,646 | 8,987,646 | ||
Number of options, forfeited | shares | 713,481 | 713,481 | ||
Number of options, options outstanding | shares | 21,646,232 | 21,646,232 | 22,467,373 | |
Number of options, options vested and expected to vest | shares | 21,646,232 | |||
Number of options, option exercisable | shares | 15,841,720 | |||
Weighted average exercise price, options outstanding | $ / shares | $ 37.77 | |||
Weighted average exercise price, granted | $ / shares | 0.01 | |||
Weighted average exercise price, exercised | $ / shares | 0.10 | |||
Weighted average exercise price, forfeited | $ / shares | 38.52 | |||
Weighted average exercise price, options outstanding | $ / shares | 37.78 | |||
Weighted average exercise price, options vested and expected to vest | $ / shares | 37.78 | |||
Weighted average exercise price, option exercisable | $ / shares | $ 38.13 | |||
Weighted average remaining contractual term (years), options outstanding | 4 years 9 months 7 days | 4 years 9 months 7 days | ||
Weighted average remaining contractual term (years), options vested and expected to vest | 4 years 9 months 7 days | 4 years 9 months 7 days | ||
Weighted average remaining contractual term (years), option exercisable | 4 years 9 months 7 days | 4 years 9 months 7 days | ||
Aggregate intrinsic value, exercised | ¥ | ¥ 255,728 | ¥ 681 | ¥ 39,716 | |
Aggregate intrinsic value, options outstanding | $ | $ 123,239 | |||
Aggregate intrinsic value, options vested and expected to vest | $ | 123,239 | |||
Aggregate intrinsic value, option exercisable | $ | $ 91,607 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended | 21 Months Ended | 36 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019HKD ($) | Dec. 31, 2021CNY (¥) | |
Income Taxes [Line Items] | ||||||
Effective income tax rate | 25.00% | 25.00% | 25.00% | |||
Net operating loss carried forward | ¥ 890,888,000 | |||||
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 | |||||
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% | |||
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 | $ | $ 2,000,000 | |||||
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expenses | ¥ 20,118 | ¥ 14,265 | ¥ 8,258 | |
Deferred income taxes | (7,930) | $ (1,139) | (8,943) | (5,822) |
Income tax expenses net | ¥ 12,188 | $ 1,751 | ¥ 5,322 | ¥ 2,436 |
Income Taxes - Summary of Princ
Income Taxes - Summary of Principle Components of Deferred Tax (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Accrued expenses | ¥ 42,443 | ¥ 32,290 |
Net operating loss carrying forwards | 222,722 | 149,628 |
Total deferred tax assets | 265,165 | 181,918 |
Less: Valuation allowance | (262,966) | (178,462) |
Deferred tax assets, net | 2,199 | 3,456 |
Deferred tax liabilities: | ||
Acquired intangible assets | 81,969 | 71,031 |
Total deferred tax liabilities | ¥ 81,969 | ¥ 71,031 |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | ¥ (507,446) | ¥ (828,087) | ¥ (394,798) | |
Income tax benefit computed at an applicable tax rate of 25% | (126,862) | (207,022) | (98,699) | |
Permanent differences | 51,216 | 106,509 | 13,279 | |
Effect of income tax rate differences in jurisdictions other than PRC | 30,189 | 38,490 | ||
Effect of preferential tax rate | (12,211) | (554) | (26) | |
Change in valuation allowance | 69,856 | 67,899 | 87,882 | |
Income tax expenses net | ¥ 12,188 | $ 1,751 | ¥ 5,322 | ¥ 2,436 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Effective Tax Rate and Statutory Income Tax Rate (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 ($)shares | Jun. 30, 2018CNY (¥)shares | Jun. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | 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 | ¥ 837,541 | $ 130,907,000 | |||||
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 | ¥ | ¥ 0 | ¥ 38,333 | |||||
IPO | ADS | |||||||
Class Of Stock [Line Items] | |||||||
Ordinary shares issued | 8,280,000 | 8,280,000 | |||||
IPO related expense paid | ¥ | ¥ 0 | ||||||
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 | 15,438,412 | 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, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator used in basic and diluted net loss per share: | ||||
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (518,533) | $ (74,482) | ¥ (833,411) | ¥ (397,313) |
Shares (denominator): | ||||
Weighted average common shares outstanding used in computing basic and diluted net loss per share (Note 1) | 170,903,317 | 170,903,317 | 144,157,947 | 99,705,361 |
Net loss per share basic and diluted | (per share) | ¥ (3.03) | $ (0.44) | ¥ (5.78) | ¥ (3.98) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Incremental weighted average number of ordinary shares not considered in computation of diluted net loss per share | 21,646,232 | 18,420,993 | 4,938,438 |
Employee Defined Contribution_2
Employee Defined Contribution Plan - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employee benefits expense incurred | ¥ 210,236 | ¥ 184,525 | ¥ 104,635 |
Related Party Transaction - Sig
Related Party Transaction - Significant Balances Between the Group and its Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Related Party Transaction [Line Items] | |||
Amounts due to related parties | ¥ 1,451 | $ 208 | ¥ 54,493 |
Ms. Wenjing Song | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | 254 | 10,500 | |
CEO and the Chairman of the Board of Directors | Mr. Yunlong Sha | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | ¥ 1,197 | ¥ 43,993 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - Purong Information - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Dec. 31, 2018 | |
Mr. Yunlong Sha | ||
Related Party Transaction [Line Items] | ||
Amount advanced to related parties | ¥ 180,000 | |
Accrued interest rate | 9.00% | |
Shanghai Trustbridge | ||
Related Party Transaction [Line Items] | ||
Percentage of equity interest with preferential feature repurchase | 5.00% |
Leases - Additional Information
Leases - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Total operating lease, expense | ¥ 378,691 | ||
Total rental expense for operating leases | ¥ 332,574 | ¥ 215,432 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Leases [Abstract] | |
Operating cash flows used in operating leases | ¥ 373,230 |
Right-of-use assets obtained in exchange for new lease obligations, operating leases | ¥ 643,722 |
Weighted average remaining lease term, operating leases | 4 years 7 months 2 days |
Weighted average discount rate, operating lease | 7.46% |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Annual Undiscounted Cash Flows (Details) ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Leases [Abstract] | |
2020 | ¥ 347,647 |
2021 | 283,836 |
2022 | 194,472 |
2023 | 137,684 |
2024 | 73,986 |
Thereafter | 159,095 |
Less imputed interest | 226,338 |
Total | ¥ 970,382 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments Under Non-cancelable Operating Leases (Details) ¥ in Thousands | Dec. 31, 2018CNY (¥) |
Leases [Abstract] | |
2019 | ¥ 303,126 |
2020 | 217,290 |
2021 | 148,625 |
2022 | 90,340 |
2023 | 20,052 |
Thereafter | 74,954 |
Total future minimum payments | ¥ 854,387 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥)Agreementshares | Dec. 31, 2019USD ($) | Sep. 29, 2017USD ($) | Aug. 04, 2017CNY (¥) | Aug. 04, 2017USD ($) | |
Commitments And Contingencies [Line Items] | |||||
Percentage of equity interests pledged | 100.00% | 100.00% | |||
Haitong | |||||
Commitments And Contingencies [Line Items] | |||||
Number of pledged shares mortgaged | shares | 9,589,566 | ||||
Puxin Education | |||||
Commitments And Contingencies [Line Items] | |||||
Percentage of equity interests pledged | 100.00% | 100.00% | |||
Number of other loan agreements | Agreement | 4 | ||||
Puxin Education | 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 | ||||
Puxin Education | Taiyuan Puxin Arts, Shanghai GEDU and Mr. Yunlong Sha as Joint Guarantors | |||||
Commitments And Contingencies [Line Items] | |||||
Debt instrument principle amount | ¥ | 162,938 | ||||
Puxin Education | SPD Bank | |||||
Commitments And Contingencies [Line Items] | |||||
Debt instrument principle amount | ¥ | 408,600 | ||||
Deposits amount | ¥ 348,090 | $ 50,000 | |||
Puxin Education | Dalian Pude | Haitong | |||||
Commitments And Contingencies [Line Items] | |||||
Percentage of equity interests pledged | 100.00% | 100.00% | |||
Puxin Education | Guizhou Puxintian | |||||
Commitments And Contingencies [Line Items] | |||||
Percentage of equity interests pledged | 100.00% | 100.00% | |||
Long bright Limited | Haitong | |||||
Commitments And Contingencies [Line Items] | |||||
Equity interests mortgaged | 18.00% | 18.00% | |||
Long bright Limited | CICC ALPHA | |||||
Commitments And Contingencies [Line Items] | |||||
Equity interests mortgaged | 8.30% | ||||
Mr. Yunlong Sha | CICC ALPHA | |||||
Commitments And Contingencies [Line Items] | |||||
Equity interests mortgaged | 4.15% | ||||
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 | |||||
Commitments And Contingencies [Line Items] | |||||
Debt instrument principle amount | ¥ 168,180 | 25,000 | |||
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, 2019segment | |
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, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Net revenues | ¥ 3,103,958 | $ 445,856 | ¥ 2,228,117 | ¥ 1,282,562 |
Cost of revenues | 1,629,447 | 1,242,889 | 794,342 | |
Gross profit | 1,474,511 | $ 211,801 | 985,228 | 488,220 |
K-12 Tutoring Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,943,854 | 1,182,397 | 884,148 | |
Cost of revenues | 1,055,205 | 706,917 | 555,885 | |
Gross profit | 888,649 | 475,480 | 328,263 | |
Study Abroad Tutoring Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,160,104 | 1,045,720 | 398,414 | |
Cost of revenues | 574,242 | 535,972 | 238,457 | |
Gross profit | ¥ 585,862 | ¥ 509,748 | ¥ 159,957 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | ¥ 510,000 | ¥ 1,443,000 | ¥ 0 |
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 | ¥ 2,874,000 | ¥ 3,152,000 | ¥ 260,000 |
Aggregate amount of paid-in capital and statutory reserves not available for distribution | ¥ 464,399,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event | 1 Months Ended | 2 Months Ended |
Feb. 29, 2020CNY (¥) | Mar. 31, 2020CNY (¥)Lender | |
Subsequent Event [Line Items] | ||
Number of third parties | Lender | 2 | |
Purong Information | Mr. Yunlong Sha | Credit Agreement | ||
Subsequent Event [Line Items] | ||
Line of credit facility | ¥ | ¥ 350,000,000 | ¥ 350,000,000 |
AHA | ||
Subsequent Event [Line Items] | ||
Loan maturity date | Sep. 6, 2021 |
Condensed Financial Informati_2
Condensed Financial Information of Parent Company - Balance Sheet (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets | ||||
Cash and cash equivalents | ¥ 256,763 | $ 36,882 | ¥ 778,006 | ¥ 164,684 |
Prepaid expenses and other current assets | 117,148 | 16,827 | 128,638 | |
Loan receivable | 191,230 | 27,468 | ||
Total current assets | 927,992 | 133,297 | 916,303 | |
TOTAL ASSETS | 4,707,055 | 676,126 | 2,737,019 | |
Current liabilities | ||||
Accrued expenses and other current liabilities | 983,715 | 141,302 | 436,123 | |
Promissory notes, current | 87,023 | 12,500 | 361,888 | |
Total current liabilities | 3,308,361 | 475,216 | 1,931,220 | |
Non-current liabilities | ||||
Promissory note, non-current portion | 87,022 | 12,500 | ||
Derivative liabilities | 172,235 | 24,740 | 63,942 | |
TOTAL LIABILITIES | 4,446,997 | 638,771 | 2,189,147 | |
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 188,627,228 shares issued and 165,038,164 and 174,025,810 shares outstanding as of December 31, 2018 and 2019, respectively) | 62 | 9 | 62 | |
Additional paid-in capital | 2,175,652 | 312,513 | 1,944,325 | |
Statutory reserve | 7,979 | 1,146 | 4,595 | |
Accumulated other comprehensive income | 68,707 | 9,869 | 68,214 | |
Accumulated deficit | (1,991,220) | (286,021) | (1,469,303) | |
Total Puxin Limited shareholders’ equity | 261,180 | 37,516 | 547,893 | |
TOTAL LIABILITIES AND TOTAL SHAREHOLDERS’ EQUITY | 4,707,055 | 676,126 | 2,737,019 | |
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 3,103 | 446 | 437,613 | |
Amounts due from subsidiaries and VIEs | 1,099,759 | 157,970 | 867,467 | |
Prepaid expenses and other current assets | 11,448 | 1,644 | ||
Loan receivable | 191,230 | 27,468 | ||
Total current assets | 1,305,540 | 187,528 | 1,305,080 | |
TOTAL ASSETS | 1,305,540 | 187,528 | 1,305,080 | |
Current liabilities | ||||
Accrued expenses and other current liabilities | 7,258 | 1,042 | 5,767 | |
Promissory notes, current | 87,023 | 12,500 | 171,888 | |
Total current liabilities | 94,281 | 13,542 | 177,655 | |
Non-current liabilities | ||||
Promissory note, non-current portion | 87,022 | 12,500 | ||
Derivative liabilities | 172,235 | 24,740 | 63,942 | |
Investments deficit in subsidiaries and VIEs | 690,822 | 99,230 | 515,590 | |
TOTAL LIABILITIES | 1,044,360 | 150,012 | 757,187 | |
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 188,627,228 shares issued and 165,038,164 and 174,025,810 shares outstanding as of December 31, 2018 and 2019, respectively) | 62 | 9 | 62 | |
Additional paid-in capital | 2,175,652 | 312,513 | 1,944,325 | |
Statutory reserve | 7,979 | 1,146 | 4,595 | |
Accumulated other comprehensive income | 68,707 | 9,869 | 68,214 | |
Accumulated deficit | (1,991,220) | (286,021) | (1,469,303) | |
Total Puxin Limited shareholders’ equity | 261,180 | 37,516 | 547,893 | |
TOTAL LIABILITIES AND TOTAL SHAREHOLDERS’ EQUITY | ¥ 1,305,540 | $ 187,528 | ¥ 1,305,080 |
Condensed Financial Informati_3
Condensed Financial Information of Parent Company - Balance Sheet (Parenthetical) (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Ordinary shares, par value | $ 0.00005 | $ 0.00005 |
Ordinary shares, authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, issued | 188,627,228 | 188,627,228 |
Ordinary shares, outstanding | 174,025,810 | 165,038,164 |
Parent Company | ||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 |
Ordinary shares, authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, issued | 188,627,228 | 188,627,228 |
Ordinary shares, outstanding | 174,025,810 | 165,038,164 |
Condensed Financial Informati_4
Condensed Financial Information of Parent Company - Statement of Operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
General and administrative expenses | ¥ 748,259 | $ 107,481 | ¥ 775,883 | ¥ 362,748 |
Total operating expenses | 1,832,054 | 263,158 | 1,623,971 | 807,675 |
Interest expense | 71,099 | 10,213 | 51,901 | 5,556 |
Interest income | 25,542 | 3,669 | 2,826 | 549 |
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 104,589 | 15,023 | 131,748 | 70,336 |
Loss before income taxes | (507,446) | (72,889) | (828,087) | (394,798) |
Income tax expenses | 12,188 | 1,751 | 5,322 | 2,436 |
Net loss attributable to ordinary shareholders of Puxin Limited | (518,533) | (74,482) | (833,411) | (397,313) |
Parent Company | ||||
General and administrative expenses | 12,102 | 1,738 | 8,728 | |
Total operating expenses | 12,102 | 1,738 | 8,728 | |
Interest expense | 15,250 | 2,191 | 13,218 | 5,556 |
Interest income | 10,985 | 1,578 | 2,104 | |
Foreign exchange loss | 3,753 | 539 | 10,358 | |
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 104,589 | 15,023 | 124,648 | 60,136 |
Equity in loss of subsidiaries and VIEs | 393,824 | 56,569 | 678,563 | 331,621 |
Loss before income taxes | (518,533) | (74,482) | (833,411) | (397,313) |
Net loss attributable to ordinary shareholders of Puxin Limited | ¥ (518,533) | $ (74,482) | ¥ (833,411) | ¥ (397,313) |
Condensed Financial Informati_5
Condensed Financial Information of Parent Company - Consolidated Statement of Comprehensive Income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Net loss | ¥ (518,533) | $ (74,482) | ¥ (833,411) | ¥ (397,313) |
Other comprehensive loss, net of tax: | ||||
Change in cumulative foreign currency translation adjustments | 493 | 71 | 52,496 | 15,718 |
Total comprehensive loss attributable to Puxin Limited | (518,040) | (74,411) | (780,915) | (381,595) |
Parent Company | ||||
Net loss | (518,533) | (74,482) | (833,411) | (397,313) |
Other comprehensive loss, net of tax: | ||||
Change in cumulative foreign currency translation adjustments | 493 | 71 | 52,496 | 15,718 |
Total comprehensive loss attributable to Puxin Limited | ¥ (518,040) | $ (74,411) | ¥ (780,915) | ¥ (381,595) |
Condensed Financial Informati_6
Condensed Financial Information of Parent Company - Statement of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | ¥ (519,634) | $ (74,640) | ¥ (833,409) | ¥ (397,234) | ||
Adjustments to reconcile net loss to net cash generated from (used in) operating activities: | ||||||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 104,589 | 15,023 | 131,748 | 70,336 | ||
Changes in operating assets and liabilities: | ||||||
Prepaid expenses and other current assets | 23,884 | 3,431 | (48,772) | (32,545) | ||
Accrued expenses and other current liabilities | 138,173 | 19,844 | (10,267) | 140,261 | ||
Net cash generated from (used in) operating activities | 24,684 | 3,544 | (92,905) | 80,266 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Net cash used in investing activities | (411,309) | (59,080) | (156,917) | (629,704) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from IPO (net of IPO expenses) | ¥ 837,541 | $ 130,907 | ||||
Proceeds from convertible notes | 461,206 | |||||
Proceeds from promissory notes | 50,000 | 168,180 | ||||
Net cash generated from financing activities | 204,246 | 29,339 | 831,506 | 629,386 | ||
Effect of exchange rate changes | 6,432 | 924 | 48,131 | 3,696 | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | (175,947) | (25,273) | 629,815 | 83,644 | ||
Cash and cash equivalents, and restricted cash at beginning of the year | 818,977 | 117,639 | 189,162 | 105,518 | ||
Cash and cash equivalents, and restricted cash at end of the year | 643,030 | 92,366 | 818,977 | 189,162 | ||
Parent Company | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | (518,533) | (74,482) | (833,411) | (397,313) | ||
Adjustments to reconcile net loss to net cash generated from (used in) operating activities: | ||||||
Equity in loss of subsidiaries and VIEs | 393,824 | 56,569 | 678,563 | 331,621 | ||
Foreign exchange loss | 3,753 | 539 | 10,358 | |||
Loss on changes in fair value of convertible notes, derivative liabilities and warrants | 104,589 | 15,023 | 124,648 | 60,136 | ||
Changes in operating assets and liabilities: | ||||||
Prepaid expenses and other current assets | (10,449) | (1,501) | ||||
Accrued expenses and other current liabilities | 1,409 | 202 | (5,230) | 5,556 | ||
Net cash generated from (used in) operating activities | (25,407) | (3,650) | (25,072) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Loans to subsidiaries and VIEs | (221,418) | (31,805) | (396,495) | (488,676) | ||
Loans to a third party | (191,230) | (27,468) | ||||
Net cash used in investing activities | (412,648) | (59,273) | (396,495) | (488,676) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from IPO (net of IPO expenses) | 811,001 | |||||
Proceeds from convertible notes | 321,206 | |||||
Proceeds from promissory notes | 168,180 | |||||
Net cash generated from financing activities | 811,001 | 489,386 | ||||
Effect of exchange rate changes | 3,545 | 510 | 43,773 | 3,696 | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | (434,510) | (62,413) | 433,207 | 4,406 | ||
Cash and cash equivalents, and restricted cash at beginning of the year | 437,613 | 62,859 | 4,406 | |||
Cash and cash equivalents, and restricted cash at end of the year | ¥ 3,103 | $ 446 | ¥ 437,613 | ¥ 4,406 |
Condensed Financial Informati_7
Condensed Financial Information of Parent Company - Additional Information (Details) | Dec. 31, 2019 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Renminbi ("RMB") to per one U.S. dollar exchange rate | 6.9618 |