Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | LAIX Inc. |
Entity Central Index Key | 0001742056 |
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 | 001-38657 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 3/F, Building B |
Entity Address, Address Line Two | No. 1687 Changyang Road |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200090 |
Entity Address, Country | CN |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | false |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Yi Wang, Chief Executive Officer |
Entity Address, Address Line One | 3/F, Building B |
Entity Address, Address Line Two | No. 1687 Changyang Road |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200090 |
City Area Code | 86-21 |
Local Phone Number | 3511-7188 |
Contact Personnel Email Address | yi.wang@liulishuo.com |
Entity Address, Country | CN |
Class A Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 29,926,647 |
Title of 12(b) Security | Class A ordinary shares |
No Trading Symbol Flag | true |
Class B Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 19,675,674 |
ADR [Member] | |
Document Information [Line Items] | |
Trading Symbol | LAIX |
Title of 12(b) Security | American depositary shares |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 137,996 | $ 21,149 | ¥ 281,166 | |||
Restricted cash | 511 | 78 | 1,816 | |||
Short-term investments | 91,049 | 13,954 | 269,643 | |||
Accounts receivable, net | 5,892 | 903 | 7,360 | |||
Prepayments and other current assets | 58,272 | 8,931 | 86,787 | |||
Total current assets | 293,720 | 45,015 | 646,772 | |||
Non-current assets: | ||||||
Property and equipment, net | 30,074 | 4,609 | 71,637 | |||
Investment in equity fund | 5,711 | 875 | 5,919 | |||
Intangible assets, net | 14,341 | 2,198 | 15,541 | |||
Operating lease right-of-use assets, net | 82,488 | 12,642 | 155,525 | |||
Other non-current assets | 5,866 | 899 | 8,447 | |||
Deferred tax assets | 13,547 | 2,076 | 15,336 | |||
Total non-current assets | 152,027 | 23,299 | 272,405 | |||
Total assets | 445,747 | 68,314 | 919,177 | |||
Current liabilities | ||||||
Accounts payable (including accounts payable of the consolidated variable interest entities ("VIEs") without recourse to the Company of RMB 91,896 and RMB 50,443 as of December 31, 2019 and 2020, respectively) | 83,576 | 12,809 | 137,684 | |||
Deferred revenue, current (including deferred revenue, current of the VIEs without recourse to the Company of RMB 695,971 and RMB 689,325 as of December 31, 2019 and 2020, respectively) | 689,325 | 105,644 | 695,971 | |||
Salary and welfare payable (including salary and welfare payable of the VIEs without recourse to the Company of RMB 73,946 and RMB 56,946 as of December 31, 2019 and 2020, respectively) | 132,433 | 20,296 | 153,969 | |||
Tax payable (including tax payable of the VIEs without recourse to the Company of RMB 46,823 and RMB 48,058 as of December 31, 2019 and 2020, respectively) | 77,327 | 11,851 | 74,340 | |||
Operating lease liability, current (including operating lease liability, current of the VIEs without recourse to the Company of RMB 29,119 and RMB 19,465 as of December 31, 2019 and 2020, respectively) | 31,845 | 4,880 | 37,009 | |||
Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the VIEs without recourse to the Company of RMB 11,938 and RMB 16,405 as of December 31, 2019 and 2020, respectively) | 19,382 | 2,970 | 15,444 | |||
Total current liabilities | 1,033,888 | 158,450 | 1,114,417 | |||
Non-current liabilities | ||||||
Deferred revenue, non-current (including deferred revenue, non-current of the VIEs without recourse to the Company of nil and RMB 56,905 as of December 31, 2019 and December 31, 2020) | 56,905 | 8,721 | ||||
Operating lease liability, non-current (including operating lease liability, non-current of the VIEs without recourse to the Company of RMB 83,282 and RMB 32,933 as of December 31, 2019 and 2020, respectively) | 56,903 | 8,721 | 117,124 | |||
Other non-current liabilities (including other non-current liabilities of the VIEs without recourse to the Company of RMB 1,000 and RMB 2,380 as of December 31, 2019 and 2020, respectively) | 10,614 | 1,627 | 12,441 | |||
Total non-current liabilities | 124,422 | 19,069 | 129,565 | |||
Total liabilities | 1,158,310 | 177,519 | 1,243,982 | |||
Shareholders' deficit: | ||||||
Subscriptions receivable from founding shareholders | (201) | (31) | (122) | $ (17) | ||
Treasury stock (US$0.001 par value; 591,200 and 781,011 shares as of December 31, 2019 and December 31, 2020, respectively) | (15,327) | (2,349) | (10,730) | |||
Additional paid-in capital | 1,198,852 | 183,732 | 1,167,884 | |||
Accumulated other comprehensive income | 10,256 | 1,572 | 29,483 | |||
Accumulated deficit | (1,906,476) | (292,180) | (1,511,649) | |||
Total shareholders' deficit | (712,563) | (109,205) | (324,805) | ¥ 218,894 | ¥ (447,987) | |
Total liabilities and shareholders' deficit | 445,747 | 68,314 | 919,177 | |||
Class A Ordinary Shares [Member] | ||||||
Shareholders' deficit: | ||||||
Ordinary shares | 212 | 32 | 208 | |||
Class B Ordinary Shares [Member] | ||||||
Shareholders' deficit: | ||||||
Ordinary shares | ¥ 121 | $ 19 | ¥ 121 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares |
Accounts payable, consolidated variable interest entity without recourse | ¥ 1,033,888 | ¥ 1,114,417 |
Deferred revenue, VIEs without recourse | 689,325 | 695,971 |
Salary and welfare payable, VIEs without recourse | 56,946 | 73,946 |
Tax payable, VIEs without recourse | 48,058 | 46,823 |
Operating lease liability current, VIEs without recourse | 19,465 | 29,119 |
Accrued liabilities and other current liabilities, VIEs without recourse | 16,405 | 11,938 |
Deferred revenue, non-current VIEs without recourse | 56,905 | 0 |
Operating lease liability noncurrent, VIEs without recourse | 32,933 | 83,282 |
Other non-current liabilities, VIEs without recourse | ¥ 2,380 | ¥ 1,000 |
Treasury stock | shares | 781,011 | 591,200 |
Variable Interest Entity, Primary Beneficiary [Member] | Nonrecourse [Member] | ||
Accounts payable, consolidated variable interest entity without recourse | ¥ 50,443 | ¥ 91,896 |
Class A Ordinary Shares [Member] | ||
Ordinary shares, authorized | shares | 200,000,000 | 200,000,000 |
Ordinary shares, issued | shares | 29,926,647 | 29,580,351 |
Ordinary shares, outstanding | shares | 29,926,647 | 29,580,351 |
Class B Ordinary Shares [Member] | ||
Ordinary shares, authorized | shares | 25,000,000 | 25,000,000 |
Ordinary shares, issued | shares | 19,675,674 | 19,675,674 |
Ordinary shares, outstanding | shares | 19,675,674 | 19,675,674 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Loss ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | ||
Net revenues | ¥ 972,628 | $ 149,062 | ¥ 1,023,213 | ¥ 637,224 | |
Cost of revenues (including share-based compensation expenses of RMB 667, RMB 1,657 and RMB 7,154 for the years ended December 31, 2018, 2019 and 2020, respectively) | (277,240) | (42,489) | (273,515) | (174,731) | |
Gross profit | 695,388 | 106,573 | 749,698 | 462,493 | |
Operating expenses: | |||||
Sales and marketing expenses (including share-based compensation expenses of RMB 6,637, RMB 590 and RMB 3,282 for the years ended December 31, 2018, 2019 and 2020, respectively) | (801,362) | (122,814) | (969,401) | (705,414) | |
Research and development expenses (including share-based compensation expenses of RMB 27,114, RMB 13,966 and RMB 14,432 for the years ended December 31, 2018, 2019 and 2020, respectively) | (190,711) | (29,228) | (213,866) | (155,154) | |
General and administrative expenses (including share-based compensation expenses of RMB 11,055, RMB 10,470 and RMB 4,159 for the years ended December 31, 2018, 2019 and 2020, respectively) | (111,004) | (17,012) | (153,507) | (65,423) | |
Total operating expenses | (1,103,077) | (169,054) | (1,336,774) | (925,991) | |
Other operating income | 43 | 7 | 2,390 | ||
Loss from operations | (407,646) | (62,474) | (584,686) | (463,498) | |
Interest income | 904 | 139 | 11,283 | 2,732 | |
Foreign exchange related (losses)/gains, net | 4,671 | 716 | (2,533) | (4,156) | |
Other income, net | 9,146 | 1,402 | 3,055 | 1,016 | |
Loss before income tax expenses | (392,925) | (60,217) | (572,881) | (463,906) | |
Income tax expense | (1,902) | (291) | (1,900) | (24,160) | |
Net loss | (394,827) | (60,508) | (574,781) | (488,066) | |
Accretion of convertible redeemable preferred shares | (28,017) | ||||
Net loss attributable to LAIX Inc.'s ordinary shareholders | (394,827) | (60,508) | (574,781) | (516,083) | |
Net loss | (394,827) | (60,508) | (574,781) | (488,066) | |
Other comprehensive income/(losses) -Foreign currency translation adjustment, net of nil tax | (19,227) | (2,947) | 13,165 | 16,403 | |
Comprehensive loss | ¥ (414,054) | $ (63,455) | ¥ (561,616) | ¥ (471,663) | |
Net loss per Class A and Class B ordinary shares -Basic and diluted | (per share) | ¥ (7.99) | $ (1.22) | ¥ (11.64) | ¥ (19.17) | |
Weighted average number of Class A and Class B ordinary shares used in per share calculation -Basic and diluted | shares | [1] | 49,430,696 | 49,430,696 | 49,364,429 | 26,921,735 |
Series A Preferred Share [Member] | |||||
Operating expenses: | |||||
Accretion of convertible redeemable preferred shares | ¥ (1,978) | ||||
Series B Preferred Share [Member] | |||||
Operating expenses: | |||||
Accretion of convertible redeemable preferred shares | (10,140) | ||||
Series C Preferred Share [Member] | |||||
Operating expenses: | |||||
Accretion of convertible redeemable preferred shares | ¥ (15,899) | ||||
[1] | Considering that the holder of Preferred Shares has no contractual obligation to participate in the Company’s losses, any losses from the Group should not be allocated to the Preferred Shares. |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Loss (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Share-based compensation expenses | ¥ 29,027 | ¥ 26,683 | ¥ 45,473 |
Cost of Revenues [Member] | |||
Share-based compensation expenses | 7,154 | 1,657 | 667 |
Sales and Marketing Expenses [Member] | |||
Share-based compensation expenses | 3,282 | 590 | 6,637 |
Research and Development Expenses [Member] | |||
Share-based compensation expenses | 14,432 | 13,966 | 27,114 |
General and Administrative Expenses [Member] | |||
Share-based compensation expenses | ¥ 4,159 | ¥ 10,470 | ¥ 11,055 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity (Deficit) ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Class A Ordinary Shares [Member]shares | Class B Ordinary Shares [Member]shares | Common Stock [Member]Class A Ordinary Shares [Member]CNY (¥)shares | Common Stock [Member]Class B Ordinary Shares [Member]CNY (¥)shares | Treasury Stock [Member]CNY (¥)shares | Subscription Receivables [Member]CNY (¥) | Additional Paid-in Capital [Member]CNY (¥) | Accumulated other comprehensive income/(loss) [Member]CNY (¥) | Accumulated deficit [Member]CNY (¥) |
Beginning Balance at Dec. 31, 2017 | ¥ (447,987) | ¥ 1 | ¥ 121 | ¥ (122) | ¥ (85) | ¥ (447,902) | |||||
Beginning Balance, shares at Dec. 31, 2017 | shares | 158,861 | 19,675,674 | |||||||||
Issuance of Class A ordinary shares | 441,166 | ¥ 40 | ¥ 441,126 | ||||||||
Issuance of Class A ordinary shares upon Initial Public Offering ("IPO"), net of issuance costs, Shares | shares | 5,750,000 | ||||||||||
Conversion of preferred shares to ordinary shares | 679,922 | ¥ 154 | 679,768 | ||||||||
Conversion of preferred shares to ordinary shares, Shares | shares | 22,367,696 | ||||||||||
Share-based compensation expense | 45,473 | 45,473 | |||||||||
Accretion of convertible redeemable preferred shares | (28,017) | $ (4,075) | (27,117) | (900) | |||||||
Net loss for the year | (488,066) | (488,066) | |||||||||
Foreign currency translation | 16,403 | 16,403 | |||||||||
Ending Balance at Dec. 31, 2018 | 218,894 | ¥ 195 | ¥ 121 | (122) | 1,139,250 | 16,318 | (936,868) | ||||
Ending Balance, Shares at Dec. 31, 2018 | shares | 28,276,557 | 19,675,674 | |||||||||
Repurchase of ordinary shares, Shares | shares | (591,200) | 591,200 | |||||||||
Repurchase of ordinary shares | (10,730) | ¥ (10,730) | |||||||||
Share-based compensation expense | 26,683 | 26,683 | |||||||||
Exercise of option | 1,964 | ¥ 13 | 1,951 | ||||||||
Exercise of option, Shares | shares | 1,894,994 | 1,894,994 | |||||||||
Net loss for the year | (574,781) | (574,781) | |||||||||
Foreign currency translation | 13,165 | 13,165 | |||||||||
Ending Balance at Dec. 31, 2019 | (324,805) | ¥ 208 | ¥ 121 | ¥ (10,730) | (122) | 1,167,884 | 29,483 | (1,511,649) | |||
Ending Balance, Shares at Dec. 31, 2019 | shares | 29,580,351 | 19,675,674 | 29,580,351 | 19,675,674 | 591,200 | ||||||
Repurchase of ordinary shares, Shares | shares | (189,811) | 189,811 | |||||||||
Repurchase of ordinary shares | (4,597) | ¥ (4,597) | |||||||||
Share-based compensation expense | 29,027 | 29,027 | |||||||||
Exercise of option | 1,866 | ¥ 4 | (79) | 1,941 | |||||||
Exercise of option, Shares | shares | 536,107 | 536,107 | |||||||||
Net loss for the year | (394,827) | (60,508) | (394,827) | ||||||||
Foreign currency translation | (19,227) | (2,947) | (19,227) | ||||||||
Ending Balance at Dec. 31, 2020 | ¥ (712,563) | $ (109,205) | ¥ 212 | ¥ 121 | ¥ (15,327) | ¥ (201) | ¥ 1,198,852 | ¥ 10,256 | ¥ (1,906,476) | ||
Ending Balance, Shares at Dec. 31, 2020 | shares | 29,926,647 | 19,675,674 | 29,926,647 | 19,675,674 | 781,011 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash flows from operating activities | ||||
Net loss | ¥ (394,827) | $ (60,508) | ¥ (574,781) | ¥ (488,066) |
Adjustments for: | ||||
Depreciation of property and equipment (Note 9) | 21,256 | 3,258 | 20,287 | 5,854 |
Amortization of intangible assets (Note 10) | 6,047 | 927 | 1,300 | 57 |
Amortization of prepaid interest expense and service fees to loan companies (Note 12) | 304 | 2,308 | ||
Foreign exchange losses | 1,358 | 206 | 2,221 | 4,156 |
Share-based compensation (Note 16) | 29,027 | 4,449 | 26,683 | 45,473 |
Amortization of operating lease right of use asset (Note 13) | 31,177 | 4,778 | 32,301 | |
Interest expense of operating lease liability (Note 13) | 6,182 | 947 | 8,480 | |
Impairment of property and equipment (Note 2(m)) | 21,390 | 3,278 | 6,857 | |
Disposal gain on property and equipment | (165) | (25) | ||
Changes in assets and liabilities: | ||||
Accounts receivable | 1,468 | 225 | 7,043 | (41,339) |
Prepayments and other current assets | 23,661 | 3,627 | 29,983 | (91,232) |
Receivables of interest income | (3,658) | (561) | (10,116) | |
Other non-current assets | 1,758 | 269 | (1,077) | (5,872) |
Deferred tax assets | 1,789 | 274 | 1,604 | (16,940) |
Accounts payable | (55,255) | (8,468) | 61,391 | 4,236 |
Salary and welfare payable | (21,536) | (3,300) | 45,652 | 61,500 |
Tax payable | 2,987 | 458 | 15,459 | 43,118 |
Accrued liabilities and other current liabilities | 3,932 | 603 | (606) | 2,623 |
Operating lease liability | (29,706) | (4,553) | (42,228) | |
Other non-current liabilities | 258 | 39 | 2,735 | |
Deferred revenue, current and non-current | 50,259 | 7,702 | 218,344 | 361,182 |
Net cash used in operating activities | (302,598) | (46,375) | (148,164) | (112,942) |
Cash flows from investing activities: | ||||
Purchase of short-term investments | (51,019) | (7,819) | (35,841) | (404,041) |
Proceeds from maturity of short-term investments | 224,890 | 34,466 | 187,737 | 34,544 |
Purchase of property and equipment | (2,039) | (313) | (49,386) | (41,715) |
Purchase of intangible assets | (7,304) | (1,119) | (2,278) | (1,347) |
Proceeds from disposition of property and equipment | 329 | 50 | 479 | |
Purchase of investment in equity fund (Note 2(j)) | (190) | (29) | (73) | (5,646) |
Proceeds from return of investment in equity fund (Note 2(j)) | 87 | 10 | ||
Net cash (used in)/provided by investing activities | 164,667 | 25,236 | 100,246 | (417,716) |
Cash flows from financing activities: | ||||
Proceeds from exercise of share options | 2,131 | 327 | 1,097 | |
Proceeds from issuance of Class A ordinary shares upon IPO, net of issuance costs | 441,166 | |||
Cash receipts from loan companies (Note 12) | 10,595 | |||
Cash payment for repurchase employee vested share options | (2,243) | |||
Cash payment for repurchase ordinary shares (Note 15) | (10,730) | |||
(Prepayment)/cash receipt for the repurchase of ordinary shares program (Note 15) | 2,154 | 330 | (6,711) | |
Repayment of cash to loan companies | (5,540) | |||
Net cash provided by/(used in) financing activities | 4,285 | 657 | (16,344) | 443,978 |
Net decrease in cash, cash equivalents and restricted cash | (133,646) | (20,482) | (64,262) | (86,680) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (10,829) | (1,660) | 2,522 | 14,919 |
Cash, cash equivalents and restricted cash at the beginning of year | 282,982 | 43,369 | 344,722 | 416,483 |
Cash, cash equivalents and restricted cash at the end of year | 138,507 | 21,227 | 282,982 | 344,722 |
Supplemental schedule of non-cash operating activities: | ||||
Non-cash settlement related to interest expenses and service fee, net | 304 | |||
Supplemental schedule of non-cash investing and financing activities: | ||||
Accounts payable related to the purchase of property and equipment | 1,761 | 270 | 2,533 | 86 |
Payables related to the purchase of copyright | 13,130 | 2,012 | 13,295 | |
Non—cash settlement related to repayment of loan and corresponding de-recognition of related receivables | 7,187 | 34,172 | ||
Accretion on redeemable Preferred Shares | ¥ 28,017 | |||
Other receivables related to share options settlement (Note 8) | ¥ 602 | $ 92 | ¥ 867 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. Organization and Principal Activities (a) Principal activities LAIX Inc. (the “Company”) was incorporated on August 19, 2013 under the law of Cayman Islands as an exempted company with limited liability. The Company, through its subsidiaries and consolidated variable interest entities (“VIEs”) (collectively referred to as the “Group”) is primarily engaged in providing online English learning services through its Liulishuo mobile app in the People’s Republic of China (the “PRC”). Users can purchase the Company’s services by subscribing the courses either directly from the Company or through authorized online commerce platform partners. As of December 31, 2020, the Company’s major subsidiaries, major VIEs and VIE’s subsidiary are as follows: Company Name Date of establishment Place of Percentage of Principal activities Wholly owned subsidiaries of the Company: LingoChamp US Inc. Established on US 100 % AI lab operation LingoChamp (HK) Limited Established on Hong Kong 100 % Investment holding Yuguan Information Technology (Shanghai) Co., Ltd. (“Yuguan WFOE”) Established on PRC 100 % Technology development Yuling Culture Communication (Shanghai) Co., Ltd. Established on PRC 100 % Provision of cross-border Variable Interest Entity (“VIEs”) Shanghai Liulishuo Information and Technology Co., Ltd. (“Shanghai Liulishuo” or “Shanghai Liulishuo VIE”) Established on PRC 100 % Provision of English Shanghai Mengfan Culture Communication Co., Ltd. (“Mengfan”) Established on PRC 100 % Provision of marketing Shanghai Mengfan Education Training Co., Ltd. (“Mengfan Education”) Established on PRC 100 % Provision of English Subsidiary of Variable Interest Entity (“VIE ’s Wuhan Liulishuo Information and Technology Co., Ltd. Established on PRC 100 % Provision of marketing (b) Organization Structure To facilitate offshore financing, an offshore corporate structure was formed in 2013, which was carried out as follows: 1) On August 19, 2013, upon 2) On August 29, 2013, LingoChamp HK was incorporated in Hong Kong with 100% ownership by the Company. 3) On November 19, 2013, Yuguan WFOE was incorporated in the PRC with 100% ownership by LingoChamp HK. By entering into a series of commercial agreements in 2013, 2014 (revised in May 2018), 2018 and 2019 (the “VIE Agreements”), Shanghai Liulishuo, Mengfan, Jiangsu Liulishuo Education Technology Co., Ltd. (the “Jiangsu Liulishuo”, terminated in 2019) and Mengfan Education became VIEs on December 19, 2013, December 8, 2014, May 29, 2018 and April 22, 2019, respectively, whose primary beneficiaries are Yuguan WFOE and shareholders of Shanghai Liulishuo, Mengfan, Jiangsu Liulishuo and Mengfan Education became the “Nominee Shareholders” of Shanghai Liulishuo, Mengfan, Jiangsu Liulishuo and Mengfan Education, respectively. The Company has therefore consolidated the financial statements of VIEs. Please refer to below discussions for the contractual agreements. (c) VIE arrangements There are some uncertainties as to whether applicable PRC laws and regulations prohibit foreign investors from providing internet and other business in the PRC. To comply with the relevant PRC laws and regulations, the Company operates substantially all of its business through its VIEs. To provide the Company the control of the VIEs, Yuguan WFOE entered into a series of contractual arrangements with the VIEs or its equity holders as follows: Contractual Agreements with VIEs Exclusive Technology Services Agreements Under the exclusive technology services agreements entered into between the VIEs and Yuguan WFOE, Yuguan WFOE has the exclusive right to provide to the VIEs technology support, business management consulting, marketing consultation, products research and development and technology services which are related to all of the business operations of the VIEs. Yuguan WFOE owns the exclusive ownership of intellectual property rights created because of the performance of this agreement. In return for these services, the VIEs shall pay Yuguan WFOE an annual service fee, which subject to the determination by Yuguan WFOE at its sole discretion. The term of this agreement will expire 30-year 30-day 2018, d , RMB and RMB 426,886, respectively . Exclusive Call Option Agreements Under the exclusive call option agreements entered into among the VIEs, Yuguan WFOE and each of the equity holders of the VIEs, each of the equity holders of the VIEs irrevocably granted Yuguan WFOE an exclusive option to purchase, or have its designated representatives to purchase, to the extent permitted under the PRC law, all or part of his or its equity interests in the VIEs and all or part of assets of the VIEs. Yuguan WFOE or its designated representatives have sole discretion as to when to exercise such options, either in part or in full. The exercise prices for the VIEs shall be the higher of the capital contribution amount for the relevant equity interests, or net book value of such assets, or the lowest allowable purchase amount permitted by the PRC law. Without Yuguan WFOE’s prior written consent, the VIEs’ equity holders shall not sell, transfer, mortgage or otherwise dispose their equity interests in the VIEs. The agreements expire upon transfer of all equity interest and assets of the VIEs to Yuguan WFOE or its designated representatives. Proxy Agreements Pursuant to the proxy agreements entered into among Yuguan WFOE, the VIEs and each of the equity holders of the VIEs, each equity holder of the VIEs irrevocably undertakes to appoint a PRC citizen designated by Yuguan WFOE as the attorney-in-fact Equity Pledge Agreements Pursuant to the equity pledge agreements among Yuguan WFOE, the VIEs and the equity holders of the VIEs, the equity holders of the VIEs shall pledge all of their equity interests in the VIEs to Yuguan WFOE to guarantee the performance by the VIEs and the equity holders’ performance of their respective obligations under the exclusive call option agreements, exclusive technology services agreements, the proxy agreements, the equity pledge agreements and the loan agreement in relation to Mengfan Education. The pledge will be effective upon registration with the local branch of the SAMR. In enforcing the pledge, if the VIEs and/or their shareholders breach their contractual obligations under those agreements, Yuguan WFOE, as pledgee, will be entitled to certain rights, including the right to dispose of the pledged equity interests. Spousal Consent Letters Each spouse of the married equity holders of the VIEs entered into a Spousal Consent Letter, which unconditionally and irrevocably agreed that the equity interests in the VIEs held by and registered in the name of their spouse will be disposed of pursuant to the equity pledge agreements, the exclusive call option agreements, and the proxy agreements. Each spouse agreed not to assert any rights over the equity interests in the VIEs held by their spouse. In addition, in the event that any of them obtains any equity interests in the VIEs held by their spouse for any reason, they agreed to be bound by similar obligations and agreed to enter into similar contractual agreements. Loan Agreement The equity interests holders of Mengfan Education and Yuguan also entered into a loan agreement. Pursuant to the loan agreement, Yuguan has agreed to extend an interest-free loan in an aggregate amount of RMB1.0 million to the shareholders of Mengfan Education solely for the capitalization of Mengfan Education. Pursuant to the loan agreements, Yuguan has the right to require repayment of the loans upon delivery of thirty-day’s Through the aforementioned contractual agreements, the Company has the ability to: • exercise effective control over the VIEs whereby having the power to direct Shanghai Liulishuo, Mengfan, Jiangsu Liulishuo and Mengfan Education’s activities that most significantly drive the economic results of them; • receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from Shanghai Liulishuo, Mengfan, Jiangsu Liulishuo and Mengfan Education as if it was their sole shareholder; and • have an exclusive option to purchase all of the equity interests in Shanghai Liulishuo, Mengfan, Jiangsu Liulishuo and Mengfan Education. Management therefore concluded that the Company, through the above contractual arrangements, has the power to direct the activities that most significantly impact the VIEs’ economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the VIEs, and therefore the Company is the ultimate primary beneficiary of these VIEs. Consequently, the financial results of the VIEs were included in the Group’s consolidated financial statements. (d) Combined financial information of the VIEs and VIEs’ subsidiary The following combined financial information of the Group’s VIEs and VIEs’ subsidiary as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 was included in the accompanying consolidated financial statements of the Group as follows: As of December 31, 2019 2020 Assets Current assets Cash and cash equivalents 137,364 37,673 Restricted cash 100 20 Accounts receivable, net 7,360 5,892 Amounts due from inter-company entities 3,258 4,254 Prepayments and other current assets 60,942 36,298 Total current assets 209,024 84,137 Non-current Property and equip m 34,815 15,773 Operating lease right-of-use 113,616 48,862 Other non-current 6,023 3,510 Deferred tax assets 15,336 13,547 Total non-current 169,790 81,692 Total assets 378,814 165,829 As of December 31, 2019 2020 Liabilities Current liabilities Accounts payable 91,896 50,443 Amounts due to inter-company entities 219,744 169,717 Deferred revenue, current 695,971 689,325 Salary and welfare payable 73,946 56,946 Tax payable 46,823 48,058 Operating lease liability, current 29,119 19,465 Accrued liabilities and other current liabilities 11,938 16,405 Total current liabilities 1,169,437 1,050,359 Deferred revenue, non-current — 56,905 Operating lease liability, non-current 83,282 32,933 Other non-current 1,000 2,380 Total non-current 84,282 92,218 Total liabilities 1,253,719 1,142,577 For the years ended December 31, 2018 2019 2020 Net revenues 637,034 1,023,213 972,628 Net loss (387,668 ) (298,596 ) (101,843 ) For the years ended December 31, 2018 2019 2020 Net cash provided by/(used in) operating activities 48,285 109,999 (98,741 ) Net cash used in investing activities (15,538 ) (31,603 ) (1,030 ) Net cash provided by financing activities 5,055 1,000 — Net increase/(decrease) in cash, cash equivalents and restricted cash 37,802 79,396 (99,771 ) In accordance with the aforementioned agreements, the Company has power to direct activities of the VIEs, and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset in the VIEs that can be used only to settle obligations of the respective VIE, except for registered capital, as of December 31, 2019 and 2020. As the VIEs are incorporated as limited liability Companies under the PRC Company Law, the creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Group is conducting certain businesses in the PRC through the VIEs, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. The VIEs’ assets comprise both recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets mainly include leasehold improvements, computers and network equipment. The unrecognized revenue-producing assets mainly consist of patents, trademarks and assembled workforce which are not recorded in the financial statements of the VIEs as it did not meet the recognition criteria set in ASC 350-30-25. There is no VIE where the Company has variable interest but is not the primary beneficiary. (e) Risks associated with VIE arrangements Though the PRC has, since 1978, implemented a wide range of market-oriented economic reforms, continued reforms and progress towards a full market-oriented economy are uncertain. In addition, the telecommunication, information, and media industries remain highly regulated. Restrictions are currently in place and are unclear with respect to which segments of these industries foreign owned entities, like the Company, may operate. The Chinese government may issue from time to time new laws or new interpretations on existing laws to regulate areas such as telecommunication, information and media. Regulatory risk also encompasses the interpretation by the tax authorities of current tax laws, and the Group’s legal structure and scope of operations in the PRC, which could be subject to further restrictions resulting in limitations on the Company’s ability to conduct business in the PRC. There are uncertainties regarding the interpretation and application of current and future PRC laws, rules and regulations, including but not limited to the laws, rules and regulations governing the validity and enforcement of the contractual arrangements with consolidated VIEs. Although the Group believes that the contractual arrangements among its equity holders and Yuguan WFOE comply with PRC law and are legally enforceable. However, the Company cannot assure that the PRC regulatory authorities will not adopt any new regulation to restrict or prohibit foreign investments in the internet related business through contractual arrangements in the future or that it will not determine that the ownership structure and contractual arrangements violate PRC laws, rules or regulations. If the Company and its consolidated VIEs are found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion in dealing with such violations, including: (a) revoking the business licenses of such entities; (b) discontinuing or restricting the conduct of any transactions between the Company’s PRC subsidiaries and the VIEs; (c) imposing fines, confiscating the income of the VIEs or the Company’s PRC subsidiaries, or imposing other requirements with which the Company or its PRC subsidiaries and consolidated VIEs may not be able to comply; (d) requiring the Company to restructure its ownership structure or operations, including terminating the contractual arrangements with the VIEs and deregistering the equity pledges of the VIEs, which in turn would affect its ability to consolidate, derive economic interests from, or exert effective control over the VIEs; or (e) restricting or prohibiting its use of the proceeds of any offering to finance its business and operations in China. If the imposition of any of these penalties precludes the Company from operating its business, it would no longer be in a position to generate revenue or cash from it. If the imposition of any of these penalties causes the Company to lose its rights to direct the activities of its consolidated VIEs or its rights to receive its economic benefits, the Company would no longer be able to consolidate these entities, and its financial statements would no longer reflect the results of operations from the business conducted by VIEs except to the extent that the Company receives payments from VIEs under the contractual arrangements. Either of these results, or any other significant penalties that might be imposed on the Company in this event, would have a material adverse effect on its financial condition and results of operations. On January 19, 2015, the Ministry of Commerce of the PRC, or (the “MOFCOM”) released on its Website for public comment a proposed PRC law (the “Draft FIE Law”), according to which, variable interest entities that are controlled via contractual arrangements would also be deemed as FIEs, if they are ultimately “controlled” by foreign investors. In March 2019, the PRC National People’s Congress promulgated the Foreign Investment Law, or the 2019 PRC Foreign Investment Law, which became effective on January 1, 2020 and replaced the major existing laws and regulations governing foreign investment in the PRC. The approved Foreign Investment Law does not touch upon the relevant concepts and regulatory regimes that were historically suggested for the regulation of VIE structures, and thus this regulatory topic remains unclear under the Foreign Investment Law. As the 2019 PRC Foreign Investment Law is newly adopted and relevant government authorities may promulgate more laws, regulations or rules on the interpretation and implementation of the 2019 PRC Foreign Investment Law, the possibility can’t be ruled out that the VIE structure adopted by the Group may be deemed as a method of foreign investment by, any of such future laws, regulations and rules, which cause significant uncertainties as to whether the Group’s VIE structures would be treated as a method of foreign investment. If the Group’s VIE structure would be deemed as a method of foreign investment under any of such future laws, regulations and rules, and any of the Group’s businesses operation would fall in the “negative list” for foreign investment that is subject to any foreign investment restrictions or prohibitions, the Group would be required to take further actions to comply with such laws, regulations and rules, which may materially and adversely affect the Group’s current corporate structure, corporate governance, business, financial conditions and results of operations. |
Principal Accounting Policies
Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principal Accounting Policies | 2. Principal Accounting Policies (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Company’s financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Group incurred net losses of RM B for the years ended December 31, 2018, 2019 and 2020, respectively. Net cash used in operating activities was approximately for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, the Group’s total shareholders’ deficit was and the current liabilities exceeded the current assets (including cash and cash equivalents balance of ) in the amount of The Company’s ability to continue as a going concern is dependent on management’s ability to successfully execute its plans, which include a business plan to adjust the pace of the Company’s business expansion, control operating costs and optimize operational efficiency to improve the Company’s cash flow from operations, and a financial plan to raise external equity or debt financing to fund the continuous operations. To implement the business plan, the Company will continue to enhance user engagement and retention by offering higher quality and diversified content while optimizing its traffic acquisition strategy to efficiently control and reduce the user related costs. The Company will further preserve liquidity and manage cash flows by reducing various discretional expenditures, including labor costs and other operating expenses. Additionally, the Company will continue to seek external financing to improve its liquidity position, though there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations. With the implementation of the above plans, management is of a view that they have addressed the contrary indicators of the Company’s ability to continue as a going concern and the Company has sufficient funds for continuous operations and will be able to meet its payment obligations from operations for the next twelve months from the issuance of the consolidated financial statements. Accordingly, management has prepared the Group’s consolidated financial statements on going concern basis. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company believes that revenue recognition, liabilities related to incentive programs, consolidation of VIEs, determination of share-based compensation, impairment assessment of long lived assets, the valuation allowance of deferred tax assets and income tax expenses reflect more significant estimates used in the preparation of its consolidated financial statements. Management makes the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making estimates about the carrying values of assets and liabilities. Actual results could materially differ from these estimates. (c) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and its VIEs have been eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting powers; has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Group’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company, through Yuguan WFOE holds all the variable interests of the VIEs, and has been determined to be the primary beneficiary of the VIEs. (d) Functional Currency and Foreign Currency Translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of the PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Group is RMB as determined based on the criteria of ASC 830, Foreign Currency Matters. Transactions denominated in other than the functional currencies are re-measured re-measured The financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the Company and its subsidiaries incorporated outside of the PRC are translated into RMB at fiscal year-end (e) Convenience Translation The unaudited US$ amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the rate of US$1 = RMB 6.5250 on December 31, 2020, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. (f) Fair value of financial instruments Fair value is 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 it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial The Group’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, accounts payable, and other liabilities. As of December 31, 2019 and 2020, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments. On a recurring basis, the Group measures its short-term investments at fair value. The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: Level 1 Level 2 Level 3 Balance at As of December 31 , Assets Short-term investments—Wealth management products — 240,948 — 240,948 As of December 31, Assets Short-term investments—Wealth management products — 91,049 — 91,049 (g) Cash and Cash Equivalents Cash and cash equivalents include cash in bank placed with banks or other financial institutions, which have original maturities of three months or less at the time of purchase and are readily convertible to known amounts of cash. (h) Short-term investments Short-term investments include time deposits with original maturities between three months and one year with banks in the PRC, and investments in wealth management products issued by certain banks with maturities between three months and one year. The wealth management products are unsecured with variable interest rates. In accordance with ASC 825, for investments in financial instruments with a variable interest rate referenced to performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the consolidated statements of operations and comprehensive loss as unrealized gains in investments. Fair value is estimated based on quoted prices of similar products provided by banks at the end of each period. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. (i) Accounts receivable, net Accounts receivable primarily consists of the subscription fee for the courses that have been consumed by customers, while still due from distribution channels and online commerce platform partners (collectively, the “Third Parties”), respectively, mainly due to timing difference between the Company’s receipts from the Third Parties versus the Third Parties’ cash receipts from customers. The subscription fee for the courses that have not been consumed by customers but received by Third Parties is recorded as other current assets (Note 8). Accounts receivable are presented net of allowance for any potentially uncollectible amounts. The Company makes estimates of expected credit and collectability trends for the allowance for credit losses based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its Third Parties, current economic conditions, reasonable and supportable forecasts of future economic conditions that may vary by geography, customer-type, or industry sub-vertical, Although the Company has historically not experienced any credit losses, they may experience increasing credit loss risks from accounts receivable in future periods if its Third Parties are adversely affected by economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 (j) Investment in equity fund Investment in equity fund represents the Company’s investment in private equity fund as a limited partnerships. The Company’s limited partnerships is considered as minor with no virtually influence over the operating and financial policies of the fund. The investment is measured at cost less impairment since its fair value is not readily determinable and adjusted for subsequent observable price changes, if any. Gains are recognized as other income when distribution are declared by the fund. (k) Intangible assets Intangible assets purchased and intangible assets arising from acquisitions of subsidiaries are recognized and measured at fair value upon acquisition. The Company’s purchased intangible assets include computer software, domain name and copyright . The estimated life of intangible assets subject to amortization is reassessed if circumstances occur that indicate the life has changed. Domain name is the intangible asset with indefinite life. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. impairment of intangible assets was recognized for the year ended December 31, 2018, 2019 and 2020. (l) Property and equipment, net Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. The estimated useful lives are as follows: Leasehold improvements over the shorter of lease terms or estimated useful lives of the assets Office equipments 3-5 Software 3 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive loss. (m) Impairment of long-lived assets For other long-lived assets including property and equipment and other non-current (n) Deferred Revenue Cash proceeds received from customers for on-line courses are initially recorded as deferred revenue and are recognized as revenues when revenue recognition criteria are met. For cash proceeds expected to be consumed within 12 months, deferred revenue will be recorded as current liability, otherwise it is recorded as non-current liability. (o) Revenue recognition The Group adopted ASC 606, “Revenue from Contracts with Customers” for all periods presented. Consistent with the criteria of Topic 606, the Group follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group provides online English learning service to customers through its self-developed mobile apps, English Liulishuo, Liuli Reading and Kids Liulishuo. The Group generates revenue by offering a variety of courses to its customers. The Group primarily offers two types of course packages, namely prepaid standard courses and prepaid multiple course packages. Prepaid standard courses, such as DongNi English, DongNi English A+ and Kids Course, allow customers to purchase courses to be consumed over a certain period of time. Prepaid multiple course packages which contain prepaid standard courses and course credits for one-to-one tutoring sessions with contracted human teachers are provided as the Group’s premium services, and allow customers to purchase multiple courses for use before a certain expiration date. The customers purchase the services by subscribing to prepaid standard courses, prepaid multiple course packages or other courses either directly from the Group or through online commerce platform partners. Subscription fees are generally paid in advance and initially recorded as deferred revenue. The Group refunds subscription fees corresponding to any remaining undelivered learning services when customers withdraw contracts with the Group. Withdrawals are recorded as reductions of the deferred revenue related to subscription fees received in advance and have no impact on recognized revenue. The Group has assessed all variable considerations identified when determining the transaction price and such assessment requires the Company to consider various forms that the variable considerations may take. To incentivize the subscription of its prepaid courses, the Group selectively offers performance-based or behavior-based refunds to its customers who subscribe the prepaid courses. The amount of refund is fixed and pre-determined and may be larger than the subscription fee. In the case that the refund amount is larger than customer’s individual cumulative revenue basis, the Group recognizes such negative revenue as selling expenses. There were negative revenue amounts of RMB recorded in selling expenses for the years ended December 31, 2018, 2019 and 2020, respectively. Prepaid courses consist of two types of revenue models—the non-refundable course model and the refundable course model. Revenues for the non-refundable course model are recognized ratably over the contractual course period as services are provided. Under the refundable course model, a customer is eligible to obtain a refund if the customer achieves certain agreed performance goals or behavior goals, including but not limited to completing a minimum number of learning hours within a set period of time, achieving a minimum number of course sharing on social networking apps within the contractual course period, achieving various measures of learning efficiency, and receiving a certain overall score for each course in the package. Based on the historical records of performance-based or behavior-based refunds, the Group estimates a refund rate that constitutes a reduction of the transaction price to recognize the revenues ratably as services are provided over the contractual course period. When there are no sufficient historical records for the Group’s estimation, revenue will not be recognized until uncertainty associated with the variable considerations is resolved. Except for the aforementioned performance-based or behavior-based refunds to its customers, there are no other circumstances that cause variability in the considerations. The Group has concluded that it is responsible for the designation and production of all the online courses and the Group is the party contractually and substantively holding all rights to the service of delivering the courses. Therefore, the Group meets the principle under ASC 606 of having control of the service and should be viewed as the principal in the arrangements. The Group therefore recognizes revenue on a gross basis. Prepaid standard courses Prepaid standard courses include the Group’s standard DongNi English, DongNi English A+ and Kids Course corresponding to customers’ proficiency levels. Such courses range from 30 days to 1,080 days. A customer can access the standard course without limit within such customer’s fixed contract period. Revenue is recognized on a straight-line basis over the contractual course period. Prepaid multiple course packages Prepaid multiple course packages range are provided as the Group’s premium services, including the standard DongNi English course and course credits for one-to-one The Group determines the standalone selling price for each type of course in the package and allocates the transaction price based on the relative value of each type of course in the arrangement, if applicable. The best evidence of standalone selling price is the price the Group charges for a certain type of course when the Group sells it separately in similar circumstances to similar users. For a type of course that is not being sold separately, the Group determines the value for each course based on its cost, plus an expected margin. For the standard courses included in prepaid multiple course packages, revenue is recognized on a straight-line basis over the contractual course period. For one-to-one Other courses and services The Group also provides other courses and services, such as pronunciation training and practice tests. Revenues are recognized ratably over a fixed term of the agreement or an estimated viewership period as services are provided. The Group offers free courses to customers upon registration. Customers are not obligated to subscribe any course packages with the Group to obtain the free courses. The Group records the content related costs incurred in providing the free courses as sales and marketing expenses. User Incentive Program The Group’s customers are registered users of its mobile app who have subscribed for the courses of the Group. The Group has incentive programs for its registered users to enhance user engagement and to incentivize the use of the Group’s platform. The Group offers points or cash rewards to the registered users who refer new registered users to its mobile app, or when they participate in various free activities in the Group’s mobile app. The points can be redeemed for free gifts and the cash rewards can be withdrawn at the discretion of the registered users with no threshold. Both the offering and the use of the points, and the grant of the cash rewards are not associated with revenue transactions. The estimated incremental costs related to free gifts and cash rewards are recognized as a component of the Group’s sales and marketing expenses. Value-added tax The Group’s revenue is subject to value-added tax (“VAT”) for the periods presented. The Group also pays VAT for costs and expenses (“input VAT”). VAT payable is permitted to be offset against input VAT, when supported by valid VAT invoices received from vendors against their VAT liability. VAT on the invoiced amount collected by the Group on behalf of tax authorities in respect of services provided, net of VAT paid for purchases, is recorded as a liability until it is paid to the tax authorities. (p) Cost of revenues Cost of revenues consist of expenditures incurred in the generation of the Group’s revenue, including but not limited to the course content related costs, service fees paid to contracted human teachers in one-to-one courses, rental expenses, IT service costs and depreciation of property and equipment. (q) Research and development expense Research and development expenses consist primarily of (i) salary and welfare for research and development personnel, (ii) rental expenses for office space associated with research and development personnel, and (iii) depreciation of office premises and servers utilized by research and development personnel. Research and development costs are expensed as incurred. The Company accounts for internal use software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. No cost for developing such software application was capitalized for the periods presented. (r) Sales and marketing expenses Sales and marketing expenses consist primarily of branding and marketing expenses, salary and welfare for sales and marketing personnel, commissions to distribution channels (mobile app stores) and online commerce platform partners, payment processing expenses, rewards to registered users related to incentive programs, and rental expenses for office space associated with sales and marketing personnel. The branding and marketing expenses amounted to The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with the customer that it would not have incurred if the contract had not been obtained. The Company recognizes the incremental costs of obtaining a contract, including the commission to distribution channels (mobile app stores) and online commerce platform partners, as an asset, and amortizes the related cost over the period of expected benefit. Upon the election of the practical expedient under ASC 340-40-25-4, the incremental costs of obtaining a contract are expensed when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. For the years ended December 31, 2018, 2019 and 2020, the incremental costs capitalized as assets were not material. (s) General and administrative expenses General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses for office space associated with general and administrative personnel, general office expenses, and professional service fees. (t) Government subsidies Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and in compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government subsidies with no further conditions to be met are recorded as “Other income, net” when received. The government subsidies with certain operating conditions are recorded as liabilities when received and will be recorded as operating income when the conditions are met. (u) Operating leases The Group adopted ASU 2016-02, Leases, on January 1, 2019. The Group determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use non-current ROU assets represent the Group’s right to use an underlying asset for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Group includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Group’s leases do not provide an implicit interest rate, the Group uses its incremental borrowing rate to compute the present value of lease liabilities, which it calculates based on the credit quality of the Group and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. The Company adopted ASU 2016-02 using the modified retrospective transition approach, to be applied to leases existing as of, or entered into after, January 1, 2019. Results for the year ended December 31, 2018 continue to be presented under the accounting standards originally in effect for that period. Prior to the adoption, leases where substantially all the rewards and risks of ownership of assets remain with the lessor were accounted for as operating leases. Payments made under operating leases were recognized as an expense on a straight-line basis over the lease term. The Group had no capital leases in any period presented. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: non-lease non-lease (v) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees. The Group’s obligations are limited to the amounts contributed and there is no legal obligation beyond the contributions made. (w) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statements recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognized income tax expenses due to uncertain tax position for the year ended December 31, 2018, 2019 and 2020 in the amount of (x) Share-based compensation Share-based compensation costs are measured at the grant date. The share-based compensation expenses have been categorized as either cost of revenue, general and administrative expenses, selling and marketing expenses or research and development expenses, depending on the job functions of the grantees. The compensation expense in connection with the options granted to employees is recognized using the straight-line method over the requisite service period. Forfeitures are estimated at the time of grant, with such estimate updated periodically and with actual forfeitures recognized currently to the extent they differ from the estimate. In determining the fair value of the Company’s share options, the binomial option pricing model has been applied. (y) Treasury stock Effective November 8, 2019, the Board of Directors approved a share repurchase program to repurchase in the open market up to US$ million worth of outstanding ADSs of the Company, every one of which represents one class A ordinary share. The program expired in May Repurchased ADSs were recorded as treasury stock and were accounted for under the cost method. Under the cost method, when the Company’s shares are acquired for purposes other than retirement, the costs of the acquired stock will be shown separately as a deduction from the total of capital stock. No repurchased shares of common stock have been retired. Up to December 31, 2020 781,011 outstanding ADSs (781,011 shares) were repurchased with a total consideration of US$2,196 (RMB 15,327) on the open market, at a weighted average price of US$2.81 per ADS. (z) Statutory reserves The Group’s subsidiaries and consolidated VIE and its subsidiary that are incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to oth |
Risks and Concentration
Risks and Concentration | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Risks and Concentration | 3. Risks and Concentration (a) PRC regulations (1) Historical non-compliance Pursuant to the PRC Regulations on Telecommunication, in order to engage in value-added telecommunications services, or VATS, a service provider must obtain a value-added telecommunications business operating license, or VATS License, from the Ministry of Industry and Information Technology, or the MIIT or its provincial level counterparts. According to the Administrative Measures on Internet Information Services, an internet information service provider is required to obtain a VATS License with the approved business scope of “internet information service”, or an ICP License. The operation of internet information service absent the ICP License would result in confiscation of illegal revenues generated from the provision of such service as determined by the competent government authority, imposition of fines up to several times such illegal gains, and under serious circumstances, suspension of the non-compliance Through Shanghai Liulishuo VIE, the Company has provided online English learning courses and services through mobile apps since 2013. Prior to the promulgation of the Classified Catalog of Telecommunications Services (2015 Version), effective from March 2016, or the 2016 MIIT Catalog, the scope of VATS was defined in an earlier version of the catalog. Pursuant to that previous version of the catalog, information service, categorized as a type of VATS, was defined as “the voice information services (telephone information services) or online information and data retrieval and other information services directly provided for end users through the fixed networks, mobile networks or internet and other public communications networks by means of information gathering, development, processing and the construction of the information platform”. It was unclear whether information service provided through the Company’s mobile apps fell in the scope of VATS. The 2016 MIIT Catalog revised the definition of information service as “the information services provided for users through public communications networks or internet by means of information gathering, development, processing and the construction of the information platform.” Further, MIIT issued a Q&A to clarify certain issues in implementing the 2016 MIIT Catalog, which requires internet information service providers that provide service through mobile apps to obtain an ICP License. However, different local authorities may have different interpretations and implementation in practice. In order to adapt to the new regulatory requirements, the Company applied and obtained ICP Licenses from the relevant government authority since 2018 for its currently operating mobile apps, namely “English Liulishuo”, “IELTS Liulishuo”, “LiuLi Reading” and “Kids Liulishuo”, also covered “Liulishuo” website and certain other new initiatives and websites. The Company also may continue to launch new products that require an ICP License. However, the Company cannot assure that its services provided before obtaining the ICP License will not be regarded by the MIIT or its local counterpart as historical non-compliance, non-compliance. The Group believes that the risks of material loss related to historical non-compliance (2) Violation of intellectual property rights of others Certain of the Company’s courses, in particular its free course featuring pop culture themes, contain unauthorized third-party content. The Company is in the process of removing unauthorized content from its platform and/or obtaining rights to use such content from the copyright holders. Additionally, there is the possibility that there may be third-party intellectual property rights, portraiture right or other rights that are infringed by the Company’s services or other aspects of the Company’s business of which the Company is unaware. To the extent that the Company’s employees or consultants use intellectual property owned by others or unauthorized portraits in their work, disputes may arise as to the rights in related know-how non-offensive The application and interpretation of China’s intellectual property right laws and the procedures and standards for granting trademarks, patents, copyrights, know-how The Group believes that the risks of material loss related to the use of unauthorized third-party contents are remote. (b) Foreign exchange risk The Group’s sales, purchase and expense transactions are generally denominated in RMB and a significant portion of the Group’s liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China. In addition, the Group’s cash denominated in US$ subject the Group to risks associated with changes in the exchange rate of RMB against US$ and may affect the Group’s results of operations going forward. (c) Credit and concentration risk The Group’s credit risk arises from cash and cash equivalents, restricted cash, short-term investments, prepayments and other current assets, and accounts receivable. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk. The Group expects that there is no significant credit risk associated with the cash and cash equivalents and short-term investments which are held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries and VIEs are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has no significant concentrations of credit risk with respect to its prepayments. Accounts receivable is typically unsecured and are derived from revenue earned either directly from customers or through distribution channels and online commerce platform partners. The Group’s business model requires the users to make full prepayment for the course subscribed and the payment collection is made through reputable distribution channels and online commerce platform partners. The risk with respect to accounts receivable is low and mitigated by credit evaluations performed by the Company. (i) Concentration of revenues No single customer represented 10% or more of the Group’s net revenues for the years ended December 31, 2018, 2019 and 2020. (ii) Concentration of accounts receivable The Group has not experienced any significant recoverability issue with respect to its accounts receivable. The Group conducts credit evaluations on its distribution channels, online commerce platform partners and customers and generally does not require collateral or other security from such distribution channels, online commerce platform partners and customers. The Group periodically evaluates the creditworthiness of the existing distribution channels, online commerce platform partners and customers in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. The following table summarized entities with greater than 10% of the accounts receivable: As of December 31, 2019 2020 Distribution channel A 56 % 50 % Distribution channel B 25 % 20 % |
Significant equity transactions
Significant equity transactions | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Significant equity transactions | 4 Significant equity transactions Initial public offering (“IPO”) On October 1, 2018, the Company completed its IPO on the New York Stock Exchange under the symbol of “LAIX”. The Company offered 5,750,000 American Depositary Shares (“ADS”). Each ADS represents one Class A ordinary share and was sold to the public at US$12.50 per ADS. Net proceeds raised by the Company from the IPO in total amounted to approximately RMB 441,166 (US$64,130) after deducting underwriting discounts and commissions and other offering expenses. Upon the completion of the IPO, all classes of preferred shares of the Company were converted and designated as Class A ordinary shares on a one-for-one Upon the completion of the IPO, each holder of Class A ordinary share is entitled to one vote and each holder of Class B ordinary share is entitled to ten votes. Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary share is not convertible into Class B ordinary share under any circumstances. Upon any sale, transfer, assignment or disposition of Class B ordinary shares by a holder thereof to any person other than the founders or any entity which is not ultimately controlled by any of them, such Class B ordinary share shall be automatically and immediately converted into the same number of Class A ordinary share. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and cash equivalents | 5. Cash and cash equivalents Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use. The following table sets forth a breakdown of cash and cash equivalents by currency denomination and jurisdiction as of December 31, 2019 and 2020. The overseas cash and cash equivalents are primarily held by the Company and its subsidiaries in Hong Kong and US. RMB amount (RMB RMB equivalent amount Total Overseas China Overseas China Non VIE VIE Non VIE VIE December 31, 2019 6,607 13,453 137,364 65,059 58,683 — 281,166 December 31, 2020 5,668 33,310 37,673 32,702 28,643 — 137,996 |
Restricted cash
Restricted cash | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Cash [Abstract] | |
Restricted cash | 6. Restricted cash Restricted cash mainly represents the cash proceeds from the exercise of share options by the Company’s employee, executives and directors held in a bank account which have yet to be transmitted to them. As of December 31, 2019 2020 Restricted cash for exercise of share options to be transmitted to employees 1,716 491 Cash deposit held in designated bank account 100 20 Total restricted cash 1,816 511 |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Accounts receivable, net | 7. Accounts receivable, net As of December 31, 2019 2020 Accounts receivable, gross 7,360 5,892 Less: allowance for cr edit losses — — Accounts receivable, net 7,360 5,892 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets | 8. Other assets The other assets consist of the following: As of December 31, 2019 2020 Prepayment and other current assets Subscription fees receivables due from distribution channels and online commerce platform partners for unconsumed courses 20,597 9,587 Gift goods to be used in promotion and incentive programs 4,775 9,346 Payment for digital contents (b) 4,921 6,621 Receivables from payment- processing- service providers 6,335 5,255 Prepaid insurance fees 4,938 5,099 Prepaid advertising fees 5,788 4,551 Value-added tax receivable 17,405 3,797 Prepayments of service fees 3,216 3,060 Loans and advance to employees (a) 4,437 2,899 Prepayment of software license fee 2,278 2,500 Rental deposits refundable within one year 1,878 2,009 Printing course materials — 1,906 Prepaid rental fee 1,291 72 Prepayment for share repurchase program (Note 15) 6,711 — Others 2,217 1,570 Total repayment and other current assets 86,787 58,272 Non-current Long-term rental deposits 8,447 4,643 Prepayment for courses copyright — 1,223 Total non-current 8,447 5,866 (a) As of December 31, 2020, l (b) Payment for digital contents represent the payment to a publisher for the access to digital books of which the control has been obtained. The respective content costs will be realized into cost of revenue along with the revenue recognition of the subscription to the courses . |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | 9. Property and equipment, net Property and equipment consist of the following: As of December 31, 2019 2020 Cost: Leasehold improvements 68,987 45,020 Office equipment 36,009 31,539 Software 1,651 1,651 Total cost 106,647 78,210 Less: Accumulated depreciation (28,153 ) (40,427 ) Less: Impairment loss (6,857 ) (7,709 ) Property and equipment, ne t 71,637 30,074 Depreciation expense recognized for the years ended December 31, 2018, 2019 and 2020 are summarized as follows: For the years ended 2018 2019 2020 Cost of revenues 810 4,095 5,189 Sales and marketing expenses 3,865 12,801 11,350 Research and development 894 2,729 2,837 General and administrative expenses 285 662 1,880 Total 5,854 20,287 21,256 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | 10. Intangible assets As of 2019 2020 Copyright (Note 12( a 15,573 20,242 Computer software 862 862 Domain name 484 484 Less: Accumulated amortization (1,357 ) (7,404 ) Add: translation difference (21 ) 157 Intangible assets, net 15,541 14,341 Amortization expense was RMB 57, RMB 1,300 and RMB 6,047 for the years ended December 31, 2018, 2019 and 2020, respectively. The Company will record estimated amortization expenses of RMB 5,800, RMB 4,492, RMB 2,792, RMB 731, and RMB 65 for the years ended December 31, 2021, 2022, 2023, 2024, and 2025 respectively. |
Tax payable
Tax payable | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Tax payable | 11. Tax payable As of December 31, 2019 2020 Uncertain tax position (Note 19) 41,100 41,100 Withholding individual income tax 33,153 36,226 Value added tax 87 1 Total 74,340 77,327 The Group’s revenues are subject to value-added tax at a rate of 6%. |
Accrued liabilities and other l
Accrued liabilities and other liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Accrued liabilities and other liabilities | 12. Accrued liabilities and other liabilities As of December 31, 2019 2020 Accrued liabilities and other current liabilities Payables related to professional service fee 3,700 6,753 Government grant 6,070 5,450 Accrual for exchange golden coins and membership credits 2,434 5,156 Refund from depository bank - current 1,011 945 Payables to employees related to net proceeds from share options exercised (Note 6) 1,716 491 Others 513 587 Total 15,444 19,382 Non-Current Payables related to copyright (a) 8,707 6,622 Government grant 1,000 2,380 Refund from depository bank - non-current 2,734 1,612 Total 12,441 10,614 (a) The Group purchased copyrights from third party copyright owners for the purpose of new product development and recorded liability for the payment not yet settled. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 13. Leases The Company leases facilities under non-cancellable No. 2016-02, right-of-use b Information related to operating leases as of December 31, 2019 and 2020 are as follows (in thousands, except for percentages and years). As of As of 2019 2020 Assets Operating lease right of use assets, net 155,525 82,488 Liabilities Operating lease liabilities, current 37,009 31,845 Operating lease liabilities, non-current 117,124 56,903 Weighted average remaining lease term (years) 3.97 3.20 Weighted average discount rate 5.70 % 5.70 % Information related to operating lease activity during the year ended December 31, 2019 and 2020 are as follows: As of As of 2019 2020 Operating lease rental expense Amortization of right of use assets 32,301 31,177 Expense for short-term leases within 12 months 12,369 1,743 Interest of lease liabilities 8,480 6,182 53,150 39,102 Supplemental cash flow information related to leases was as follows: For the Year For the Year 2019 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating lease payment 42,228 29,706 Right-of-use Operating lease liabilities 26,840 1,330 Maturities of lease liabilities were as follows: As of 2020 2021 35,735 2022 30,152 2023 25,252 2024 5,387 Total undiscounted lease payment 96,526 Less: imputed interest (7,778 ) Total lease liabilities 88,748 |
Convertible redeemable preferre
Convertible redeemable preferred shares | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Convertible redeemable preferred shares | 14. Convertible redeemable preferred shares Prior to the Company’s IPO in October, 2018, the Company issued series rounds of convertible redeemable preferred shares (the “Preferred Shares”). Each Preferred Shares was convertible, at the option of the holder and certain automatic conversion events (e.g. the Company’s IPO), into one Class A ordinary shares of the Company, subject to certain customary anti-dilutive adjustments. Prior to their conversion, the Preferred Shares were entitled to certain privileges over ordinary shares with respect to conversion, redemption, dividends and liquidation. The Company determined that host contract of the Preferred Shares was more akin to a debt host. The Company had also assessed each of the embedded features in the Preferred Shares and determined none of the embedded features needed to be bifurcated from the debt host. For each period before the conversion of the Preferred Shares, t paid-in-capital, paid-in-capital, RMB 28,017 (US and was recorded against additional paid-in-capital. On October 1, 2018, immediately prior to the completion of the Company’s IPO, all 22,367,696 shares of Preferred Shares were converted to Class A ordinary shares. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Ordinary Shares | 15. Ordinary shares On August 19, 2013, the Company was incorporated as limited liability company with authorized share capital of US$50 divided into 50,000,000 shares with par value US0.001 each. On June 6, 2014, the Company’s shareholders and Board of Directors approved an increase in its authorized share capital from 50,000,000 to 100,000,000 shares. On August 30, 2018, the Company’s shareholders and Board of Directors approved an increase in its authorized share capital from 100,000,000 to 250,000,000 shares, in which 25,000,000 shares of such class or classes (however designated) as the board of directors may determine in accordance with Article of Association of the Company. The Company has a dual class voting structure under which all of the ordinary shares held by the founders are designated as Class B ordinary shares and all of the other ordinary shares, including the shares held by others shareholders and automatic converted outstanding preferred shares, are designated as Class A ordinary shares. Class A and Class B ordinary shares have the same rights except for voting and conversion rights. Both of the Class A and Class B ordinary shares will be entitled to one vote per share before the qualified IPO. While upon the closing of the qualified IPO, holders of Class B ordinary shares would be entitled to ten votes per share. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. After the Company’s incorporation and till the Company’s IPO on October 1, 2018, the Company had a series of issuance and re-designation of ordinary shares and preferred shares. Immediately prior to the Company’s IPO, on October 1, 2018, the Company had On October 1, 2018, the Company consummated its IPO on the New York Stock Exchange with a total 5,750,000 Class A ordinary shares issued at a price of US$12.5 per share. After deducting underwriting discounts and commissions and other offering expenses, the net proceeds raised from the IPO amounted to approximately RMB441,166 (US$64,130). Immediately prior to the completion of the Company’s IPO Immediately after the IPO, the Company had 177,473,443 class A ordinary shares and 5,324,326 class B ordinary shares authorized but unissued, 25,000,000 shares authorized were not designated and unissued, 22,526,257 class A ordinary shares and 19,675,674 class B ordinary shares issued and outstanding. The proceeds of the subscription capital from founding shareholders and the share options exercised by employees of RMB122 (US$17) and RMB201 (US$31) were remained outstanding as of December 31, 2019 and 2020 respectively O C In 2019, the Company paid For the years ended of 2019 and 2020, 591,200 and 189,811 outstanding ( and 189,811 shares) were ) and US$655 (RMB 4,597), on the open market at a weighted average price of and US$3.45 per ADS (per share), respectively. On May 20, 2020, the Company terminated the share repurchase program and withdrew the residual prepayment of |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | 16. Share-based compensation On May 26, 2014, the Company adopted an On July 14, 2015, the Company repurchased and canceled vested 44,000 options. On June 13, 2017, the number of ordinary shares reserved for option issuance under the 2014 Plan increased to 5,519,737 Class A ordinary shares. Concurrently, the Company repurchased and canceled 63,545 options. A On July 31, 2018, the Board of Directors of the Company approved its 2018 Share Incentive Plan (the “2018 Plan”). Under the 2018 Plan, share-based awards such as share options, restricted shares, restricted share units and share appreciation rights may be granted. The 2018 Plan is valid and effective for a term of ten years commencing from its adoption. The maximum aggregate number of ordinary shares which may be issued pursuant to all share-based awards under the 2018 Plan is (i) initially 5% of total authorized ordinary shares after completion of the Company’s IPO, and (ii) an increase not exceeding 1.5% of the total issued and outstanding ordinary shares as of December 31 of the respective preceding year. The aggregate size shall not exceed 5% of the total number of issued and outstanding shares at any given time . On September 8, 2020, pursuant to the board resolution, Amended and Restated 2018 Share Incentive Plan (the “2018 Amended Plan”) was approved by the Board of Directors of the Company to replace the 2018 Plan and increase the initial aggregate number of Class A ordinary shares to 4,860,412, plus an increasing of (i) an amount equal to 2% of the total number of issued and outstanding Shares of the immediately preceding year, or (ii) such number of Shares as may be determined by the Board. The number of shares remaining reserved for issuance under the 2018 Amended Plan was The options granted to the Company’s employees and directors under the 2014 Plan and the 2018 Amended Plan are vested upon satisfaction of service condition, which is generally satisfied over one or Share-based compensation expense related to the option awards granted amounted to RMB 45,473, RMB 26,683 and RMB 29,027 for the years ended December 31, 2018, 2019 and 2020. The following table sets forth the summary of employee option activity for the years ended December 31, 2018, 2019 and 2020: Number of Weighted Weighted Aggregate Weighted USD In years USD’000 USD Outstanding at January 1, 2018 3,245,554 0.2093 8.17 25,272 3.61 Granted 2,388,750 0.6000 11.74 Forfeited (653,910 ) 0.3318 Outstanding at December 31, 2018 4,980,394 0.3806 8.19 35,875 7.13 Outstanding at January 1, 2019 4,980,394 0.3806 8.19 35,875 7.13 Granted 490,759 0.6000 7.27 Exercised (1,894,994 ) 0.1484 Forfeited (937,438 ) 0.5477 Outstanding at December 31, 2019 2,638,721 0.5288 8.39 11,429 8.76 Outstanding at January 1, 2020 2,638,721 0.5288 8.39 11,429 8.76 Granted 2,983,730 0.6633 2.38 Exercised (536,107 ) 0.5246 Forfeited (1,920,717 ) 0.4849 Outstanding at December 31, 2020 3,165,627 0.6829 8.74 3,070 4.95 Vested and expected to vest at December 31, 2020 2,335,330 0.7453 8.64 2,208 5.09 Exercisable at December 31, 2020 665,065 0.4761 7.28 694 8.97 The aggregate intrinsic value per share is calculated as the difference between the exercise price of the options and the fair value of the underlying shares of RMB 52.02 The total fair value of share options vested during the years ended December 31, 2018, 2019 and 2020 was RMB 14,930, RMB 48,978 and RMB 35,652, respectively. As of December 31, 2020, there were RMB 59,315 of unrecognized share-based compensation expenses related to share options granted to the employees, which were expected to be recognized over a weighted-average vesting period of 2.08 years. To the extent the actual forfeiture rate is different from the Company’s estimate, the actual share-based compensation related to these awards may be different from the expectation. The binomial option pricing model is used to determine the fair value of the share options granted to employees and directors . 2018 2019 2020 Expected volatility (i) 48.13%~49.11% 45.82 %~ 47.20% 46.8%~53.05% Risk-free interest rate (ii) 2.85%~3.14% 1.75 %~ 2.82% 0.78%~0.99% Exercise multiple 2.8 2.8 2.2~2.8 Expected dividend yield (iii) 0% 0% 0% Contractual term 10 10 10 Expected forfeiture rate (post-vesting) 5% 5% 5% Exercise price US$0.60 US$0.60 US$0.01 \US$0.60\ Fair value of the common share on the date US$8.25~US$13.39 US$2.90-US$11.94 US$1.26~US$4.11 Notes: (i) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (ii) The risk-free interest rate of periods within the contractual life of the share option is based on the market yield of the US Treasury Strip Bond with a maturity life equal to the expected life to expiration. (iii) The Company has no history or expectation of paying dividends on its ordinary shares. (iv) Before the IPO, the estimated fair value of the Company’s ordinary shares at their respective grant dates, was determined with the assistance of an independent third party valuation firm by using income approach. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 17. Revenue For the years ended December 31, 2018, 2019 and 2020, majority of the Group’s revenue were generated in the PRC. The disaggregated revenues by course plans were as follows: For the years ended December 31, 2018 2019 2020 Prepaid standard courses 596,702 997,794 924,695 Prepaid multiple course packages 27,904 13,139 44,876 Other courses 12,658 12,280 3,057 Total revenues 637,264 1,023,213 972,628 Less: tax surcharges (40 ) — — Net revenues 637,224 1,023,213 972,628 |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee benefits | 18. Employee benefits The full-time employees of the Company’s subsidiaries and VIEs that are incorporated in the PRC are entitled to staff welfare benefits including medical insurance, basic pensions, unemployment insurance, work injury insurance, maternity insurance and housing funds. These companies are required to contribute to these benefits based on certain percentages of the employees’ salaries in accordance with the relevant regulations and charge the amount contributed to these benefit schemes to the |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 19. Income Taxes (a) Cayman Islands Under the current tax laws of Cayman Islands, the Company is not subject to income, corporation or capital gains tax, and no withholding tax is imposed upon the payment of dividends. (b) Hong Kong Profits Tax T Kong profits tax while subject withholding tax. (c) U.S. Corporate Income Tax One of the Company’s subsidiaries , Lingochamp US Inc. (“Lingochamp US”) is a Delaware corporation that is subject to U.S. federal corporate income tax and California corporate franchise tax on its taxable income. The applicable U.S. federal corporate tax rate is for taxable years beginning after December 31, 2017 . The California corporate franchise tax rate is 8.84%. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code including, but not limited to: (1) reducing the U.S. federal corporate tax rate from 35% to 21%; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (6) creating the base erosion anti-abuse tax (“BEAT”), a new minimum tax; (7) creating a new limitation on deductible interest expense; and (8) changing rules related to uses and limitations of net operating loss carry-forwards created in tax years beginning after December 31, 2017. See the tax loss carry-forwards disclosure below for the impact of the Tax Act on the Group. In addition, the California corporate franchise tax remained the same after the enactment of the Tax Act. (d) PRC Enterprise Income Tax (“EIT”) On March 16, 2007, the National People’s Congress of the PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to EIT at a uniform rate of 25%. Yuguan WFOE and Shanghai Liulishuo VIE obtained the High and New Technology Enterprises (the “HNTE”) certificate in 2017 and renewed the HNTE certificate in November 2020 with a valid period of three years. Therefore, Yuguan WFOE and Shanghai Liulishuo VIE are eligible to enjoy a preferential tax rate of 15% from 2017 to 2022 to the extent it has taxable income under the EIT Law, as long as they maintain the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority. All other subsidiaries and VIEs of the Company established in the PRC are subject to EIT at . The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident 25 No dividend was distributed by the PRC entities within the Group outside China for the periods presented. A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: For the years ended December 31, 2018 2019 2020 % % % PRC Statutory income tax rates 25.0 % 25.0 % 25.0 % Change in valuation allowance (9.0 )% (20.2 )% (24.9 )% Super deduction of research and development expenses — 3.9 % 6.1 % Non-deductible expenses (0.3 )% (0.6 )% (0.2 )% Estimates for uncertain tax positions (10.5 )% — — Difference in EIT rates of certain overseas entities (2.8 )% (1.0 )% (2.0 )% Tax filing difference — 0.7 % 0.1 % Effect of tax holiday (Note) (7.6 )% (8.1 )% (4.6 )% Total (5.2 )% (0.3 )% (0.5 )% Note: The provisions for income taxes for the years ended December 31, 2018, 2019 and 2020 differ f r primarily due to preferential tax rate enjoyed by certain subsidiaries and VIEs of the Company. For the years ended 2018 2019 2020 Tax holiday effect 27,400 8,317 — Basic and diluted net loss per share effect 1.02 0.17 — Loss from domestic and foreign components before income tax expenses For the years ended December 31, 2018 2019 2020 Domestic 400,791 560,503 383,730 Foreign 63,115 12,378 9,195 Total 463,906 572,881 392,925 Composition of income tax expense The current and deferred portions of income tax expense included in the consolidated statements of comprehensive loss are as follows: For the years ended 2018 2019 2020 Current income tax expense 41,100 296 113 Deferred income tax (benefit)/expense (16,940 ) 1,604 1,789 Income tax expense 24,160 1,900 1,902 Deferred tax assets and liabilities Deferred taxes were measured using the enacted tax rates for the periods in which they are expected to be reversed. As of December 31, 2019 2020 Deferred tax assets Deductible temporary difference related to advertising expenses 91,710 128,756 Deductible temporary difference related to accruals and other payables 26,851 24,954 Tax losses carried forward 103,246 163,998 Total deferred tax assets 221,807 317,708 Less: valuation allowanc e (206,471 ) (304,161 ) Total deferred tax assets 15,336 13,547 As of December 31, 2020, the PRC entities of the Group had tax loss carryforwards of approximately RMB 925,744 , which can be carried forward to offset taxable income. The carryforwards period for tax losses under the EIT Law is five years years for HNTE entities. The tax losses carry forward of the Group will start to expire in 2021 for the amount of RMB 713 if not utilized. The remaining tax losses carryforwards will expire in varying amounts between 2022 and 2030 . Other than the expiration, there are no other limitations or restrictions upon the Group’s ability to use these tax losses carryforwards. There is no expiration for the advertising expenses carry-forwards. As of December 31, 2020, the company’s subsidiary incorporated in Hong Kong had tax loss carry forwards of RMB 16,508, which can be carried forward to offset taxable income indefinitely. As of December 31, 20 2 RMB 3,271 . Under the U.S. tax law, federal NOL carry-forwards arising in tax years beginning after December 31, 2017 can be carried forward indefinitely but the maximum deduction is reduced to 80% of the taxable income, while NOL carry-forwards arising in 2017 or prior can be carried back two tax years and carried forward up to 20 years. Thus, Lingochamp US federal net operating loss arisen in 2017 amounted to RMB On March 27, 2020, US President Trump signed into law “Coronavirus Aid, Relief, and Economic Security Act” (“CARES Act”), which modifies the treatment of NOL generated and utilised in 2018, 2019 and 2020. For the taxable years of 2019 and 2020, Lingochamp US will be entitled to an NOL deduction equal to 100% of the taxable income. For taxable years beginning after 2021, the NOL deduction of Lingochamp US will be limited to 80% of taxable income when utilizing NOL generated after December 31, 2017. According to CARES Act, the NOL arisen in 2018, 2019 and 2020 amounted to RMB 3,015 can be carried forward indefinitely. A valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. A valuation allowance was provided for the tax loss carry forwards because it was more likely than not that such deferred tax assets will not be realized due to lack of profitable history to support the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize part or all of its deferred income tax, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. As of December 31, 2019 and 2020, valuation allowances of RMB 206,471 and RMB 304,161 were provided because it was more likely than not that the Group will not be able to utilize certain tax losses carry-forwards and other deferred tax assets generated by its subsidiaries and VIEs. Movement of valuation allowance is as follows: For the years ended December 31, 2018 2019 2020 Beginning balance 49,183 90,979 206,471 Additions 41,796 137,122 103,399 Reversals — (21,630 ) (5,709 ) Ending balance 90,979 206,471 304,161 Uncertain Tax Positions The following table summarizes activity of the total amounts of unrecognized tax benefits: For the years ended December 31, 2018 2019 2020 Beginning balance — 41,100 41,100 Increases related to tax positions taken during the current year 41,100 — — Total 41,100 41,100 41,100 The Company operates its business through its PRC subsidiaries. Under the current PRC tax laws and regulations, certain operating expenses incurred by PRC subsidiaries are not deductible from taxable income until the Company obtains the approval from local tax authorities. The Company believes it is more likely than not that such operating expenses is not deductible and would possibly be subject to income taxes. For the year ended December 31, 2018, the Company provided uncertain tax provision with amount of RMB 41,100 for the aforementioned operating expenses with amount of RMB 324,701. The associated income tax expense was calculated by applying the applicable tax rate to the deemed nondeductible operating expenses amount and includes the late payment interest based on the applicable tax rules. The unrecognized tax benefits are recorded in tax payable in the consolidated balance sheets. |
Basic and diluted net loss per
Basic and diluted net loss per share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and diluted net loss per share | 20. Basic and diluted net loss per share (a) Basic and diluted net loss per share Basic loss per share and diluted loss per share have been calculated in accordance with ASC 260 on computation of the losses per share for the years ended December 31, 2018, 2019 and 2020 are as follows: For the years ended December 31, 2018 2019 2020 Numerator: Net loss (488,066 ) (574,781 ) (394,827 ) Accretion on Series A convertible redeemable preferred shares redemption value (1,978 ) — — Accretion on Series B convertible redeemable preferred shares redemption value (10,140 ) — — Accretion on Series C convertible redeemable preferred shares redemption value (15,899 ) — — Net loss attributable to ordinary shareholders-Basic and diluted (516,083 ) (574,781 ) (394,827 ) Denominator: Denominator for basic and diluted loss per share weighted-average ordinary shares outstanding (Note) Basic and diluted 26,921,735 49,364,429 49,430,696 Basic and diluted loss per share (19.17 ) (11.64 ) (7.99 ) Note: Considering that the holder of Preferred Shares had no contractual obligation to participate in the Company’s losses, any losses from the Group should not be allocated to the Preferred Shares. For the years ended December 31, 2018, of the Preferred Shares have not been reflected in the dilutive calculations pursuant to ASC 260, “Earnings Per Share,” due to the anti-dilutive effect as a result of the Group’s net loss. The effects of all outstanding share options have also been excluded from the computation of diluted loss per share for the years ended December 31, 2018, 2019 and 2020 due to their anti-dilutive effect. The following ordinary shares equivalent were excluded from the computation of diluted net loss per ordinary share for the periods presented because including them would have had an anti-dilutive effect: For the year ended December 31, 2018 2019 2020 Preferred shares — weighted average 16,729,811 — — Share options — weighted average 2,263,775 1,051,152 372,273 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 21. Contingencies Litigation In the ordinary course of the business, the Group is subject to periodic legal or administrative proceedings. As of December 31, 2019 and 2020, the Group is not a party to any legal or administrative proceedings which will have a material adverse effect on the Group’s financial position, results of operations and cash flows. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | 22. Subsequent events In February 2021, the Group early terminated a lease for office spaces with a |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Restricted net assets | 23. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Group’s subsidiary and the VIE incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with the PRC accounting standards and regulations. In addition, the subsidiaries and the VIEs of the Company established in the PRC are required to annually appropriate after-tax the Company’s subsidiaries Since the Group has a consolidated shareholders’ deficit, its net asset base for purposes of calculating the proportionate share of restricted net assets of consolidated subsidiaries should be zero. Therefore, the restrictions placed on the net assets of the Company’s PRC subsidiaries with positive equity would result in the 25 percent threshold being exceeded and a corresponding requirement to provide parent company financial information (Note 24). |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | 24. ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY Rules 12-04(a) 4-08(e)(3) S-X The following condensed financial statements of the Parent Company have been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Parent Company used the equity method to account for its investment in its subsidiaries and VIEs. Such investment is presented on the separate condensed balance sheets of the Parent Company as “Payables to subsidiaries and VIEs”. The Parent Company, its subsidiaries and VIEs were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Parent Company’s share of income from its subsidiaries and VIEs is reported as share of income from subsidiaries and VIEs in the condensed financial statements. The Parent Company is a Cayman Islands company and, therefore, is not subjected to income taxes for all years presented. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. As of December 31, 2020, there were no material commitments or contingencies, significant provisions for long-term obligations or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements. Condensed Financial Information of the Parent Company BALANCE SHEETS As of December 31, 2019 2020 RMB RMB US$ (Note 2 (e)) ASSETS Current assets: Cash and cash equivalents 2,028 2,888 443 Amounts due from subsidiaries and VIEs 892,324 866,102 132,736 Prepayments and other current assets 12,851 5,434 833 Short-term investment 139,524 64,910 9,948 Total current assets 1,046,727 939,334 143,960 Non-current Investment in equity fund 5,919 5,711 875 Total non-current 5,919 5,711 875 Total assets 1,052,646 945,045 144,835 LIABILITIES AND SHAREHOLDERS’ DEFICIT Current liabilities: Payables to subsidiaries and VIEs 3,209 3,415 523 Accrued expenses and other current liabilities 1,618 1,543 236 Total current liabilitie s 4,827 4,958 759 Non-current Investment payables to subsidiaries and VIEs 1,369,890 1,651,038 253,034 Other non-current 2,734 1,612 247 Total non-current liabilities 1,372,624 1,652,650 253,281 Total liabilities 1,377,451 1,657,608 254,040 Shareholders’ deficit Class A ordinary shares (US$0.001 par value; 200,000,000 shares authorized; iss ued and 208 212 32 Class B ordinary shares (US$0.001 par value; 25,000,000 shares authorized, 19,675,674 shares 121 121 19 Subscriptions receivable from founding shareholders (122 ) (201 ) (31 ) Treasury stock (US$0.001 par value; 591,200 and 781,011 shares as of December 31, 2019 and December 31, 2020, respectively) (10,730 ) (15,327 ) (2,349 ) Additional paid-in 1,167,884 1,198,852 183,732 Accumulated other comprehensive income 29,483 10,256 1,572 Accumulated deficit (1,511,649 ) (1,906,476 ) (292,180 ) Total shareholders’ deficit (324,805 ) (712,563 ) (109,205 ) Total liabilities and shareholders’ deficit 1,052,646 945,045 144,835 STATEMENTS OF COMPREHENSIVE LOSS For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2 (e)) Operating expenses: General and administrative expense s (5,807 ) (11,787 ) (12,549 ) (1,922 ) Total operating expenses (5,807 ) (11,787 ) (12,549 ) (1,922 ) Loss from operations (5,807 ) (11,787 ) (12,549 ) (1,922 ) Interest income — 6,280 2,797 429 Investment income 48 87 — — Other loss, net (1 ) (46 ) — — Loss from subsidiaries and VIEs (482,306 ) (569,315 ) (385,075 ) (59,015 ) Loss before provision for income taxes (488,066 ) (574,781 ) (394,827 ) (60,508 ) Provision for income taxes — — — — Net loss (488,066 ) (574,781 ) (394,827 ) (60,508 ) Series A Preferred share redemption value accretion (1,978 ) — — — Series B Preferred share redemption value accretion (10,140 ) — — — Series C Preferred share redemption value accretion (15,899 ) — — — Net loss attributable to ordinary shareholders (516,083 ) (574,781 ) (394,827 ) (60,508 ) Net loss (488,066 ) (574,781 ) (394,827 ) (60,508 ) Other comprehensive income/(loss) —Foreign currency translation adjustment, net of nil tax 16,403 13,165 (19,227 ) (2,947 ) Comprehensive loss (471,663 ) (561,616 ) (414,054 ) (63,455 ) STATEMENTS OF CASH FLOWS For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2 (e)) Cash flows used in operating activities (6,722 ) (11,422 ) (13,448 ) (2,061 ) Cash flows (used in)/provided by investing activities (362,380 ) (119,440 ) 18,176 2,786 Cash flows provided by/(used in) financing activities 438,923 (16,344 ) 4,285 657 Effect of exchange rate changes on cash 360 2,121 (8,153 ) (1,250 ) Net increase/(decrease) in cash and cash equivalents 70,181 (145,085 ) 860 132 Cash and cash equivalents, beginning of year 76,932 147,113 2,028 311 Cash and cash equivalents, end of year 147,113 2,028 2,888 443 |
Principal Accounting Policies (
Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of preparation | (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Company’s financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Group incurred net losses of RM B for the years ended December 31, 2018, 2019 and 2020, respectively. Net cash used in operating activities was approximately for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, the Group’s total shareholders’ deficit was and the current liabilities exceeded the current assets (including cash and cash equivalents balance of ) in the amount of The Company’s ability to continue as a going concern is dependent on management’s ability to successfully execute its plans, which include a business plan to adjust the pace of the Company’s business expansion, control operating costs and optimize operational efficiency to improve the Company’s cash flow from operations, and a financial plan to raise external equity or debt financing to fund the continuous operations. To implement the business plan, the Company will continue to enhance user engagement and retention by offering higher quality and diversified content while optimizing its traffic acquisition strategy to efficiently control and reduce the user related costs. The Company will further preserve liquidity and manage cash flows by reducing various discretional expenditures, including labor costs and other operating expenses. Additionally, the Company will continue to seek external financing to improve its liquidity position, though there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations. With the implementation of the above plans, management is of a view that they have addressed the contrary indicators of the Company’s ability to continue as a going concern and the Company has sufficient funds for continuous operations and will be able to meet its payment obligations from operations for the next twelve months from the issuance of the consolidated financial statements. Accordingly, management has prepared the Group’s consolidated financial statements on going concern basis. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. |
Use of estimates | (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company believes that revenue recognition, liabilities related to incentive programs, consolidation of VIEs, determination of share-based compensation, impairment assessment of long lived assets, the valuation allowance of deferred tax assets and income tax expenses reflect more significant estimates used in the preparation of its consolidated financial statements. Management makes the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making estimates about the carrying values of assets and liabilities. Actual results could materially differ from these estimates. |
Consolidation | (c) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and its VIEs have been eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting powers; has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Group’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company, through Yuguan WFOE holds all the variable interests of the VIEs, and has been determined to be the primary beneficiary of the VIEs. |
Functional Currency and Foreign Currency Translation and Convenience Translation | (d) Functional Currency and Foreign Currency Translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of the PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Group is RMB as determined based on the criteria of ASC 830, Foreign Currency Matters. Transactions denominated in other than the functional currencies are re-measured re-measured The financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the Company and its subsidiaries incorporated outside of the PRC are translated into RMB at fiscal year-end (e) Convenience Translation The unaudited US$ amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the rate of US$1 = RMB 6.5250 on December 31, 2020, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. |
Fair value of financial instruments | (f) Fair value of financial instruments Fair value is 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 it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial The Group’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, accounts payable, and other liabilities. As of December 31, 2019 and 2020, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments. On a recurring basis, the Group measures its short-term investments at fair value. The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: Level 1 Level 2 Level 3 Balance at As of December 31 , Assets Short-term investments—Wealth management products — 240,948 — 240,948 As of December 31, Assets Short-term investments—Wealth management products — 91,049 — 91,049 |
Cash and Cash Equivalents | (g) Cash and Cash Equivalents Cash and cash equivalents include cash in bank placed with banks or other financial institutions, which have original maturities of three months or less at the time of purchase and are readily convertible to known amounts of cash. |
Short-term investments | (h) Short-term investments Short-term investments include time deposits with original maturities between three months and one year with banks in the PRC, and investments in wealth management products issued by certain banks with maturities between three months and one year. The wealth management products are unsecured with variable interest rates. In accordance with ASC 825, for investments in financial instruments with a variable interest rate referenced to performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the consolidated statements of operations and comprehensive loss as unrealized gains in investments. Fair value is estimated based on quoted prices of similar products provided by banks at the end of each period. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. |
Accounts receivable, net | (i) Accounts receivable, net Accounts receivable primarily consists of the subscription fee for the courses that have been consumed by customers, while still due from distribution channels and online commerce platform partners (collectively, the “Third Parties”), respectively, mainly due to timing difference between the Company’s receipts from the Third Parties versus the Third Parties’ cash receipts from customers. The subscription fee for the courses that have not been consumed by customers but received by Third Parties is recorded as other current assets (Note 8). Accounts receivable are presented net of allowance for any potentially uncollectible amounts. The Company makes estimates of expected credit and collectability trends for the allowance for credit losses based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its Third Parties, current economic conditions, reasonable and supportable forecasts of future economic conditions that may vary by geography, customer-type, or industry sub-vertical, Although the Company has historically not experienced any credit losses, they may experience increasing credit loss risks from accounts receivable in future periods if its Third Parties are adversely affected by economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 |
Investment in equity fund | (j) Investment in equity fund Investment in equity fund represents the Company’s investment in private equity fund as a limited partnerships. The Company’s limited partnerships is considered as minor with no virtually influence over the operating and financial policies of the fund. The investment is measured at cost less impairment since its fair value is not readily determinable and adjusted for subsequent observable price changes, if any. Gains are recognized as other income when distribution are declared by the fund. |
Intangible assets | (k) Intangible assets Intangible assets purchased and intangible assets arising from acquisitions of subsidiaries are recognized and measured at fair value upon acquisition. The Company’s purchased intangible assets include computer software, domain name and copyright . The estimated life of intangible assets subject to amortization is reassessed if circumstances occur that indicate the life has changed. Domain name is the intangible asset with indefinite life. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. impairment of intangible assets was recognized for the year ended December 31, 2018, 2019 and 2020. |
Property and equipment, net | (l) Property and equipment, net Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. The estimated useful lives are as follows: Leasehold improvements over the shorter of lease terms or estimated useful lives of the assets Office equipments 3-5 Software 3 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive loss. |
Impairment of long-lived assets | (m) Impairment of long-lived assets For other long-lived assets including property and equipment and other non-current |
Deferred Revenue | (n) Deferred Revenue Cash proceeds received from customers for on-line courses are initially recorded as deferred revenue and are recognized as revenues when revenue recognition criteria are met. For cash proceeds expected to be consumed within 12 months, deferred revenue will be recorded as current liability, otherwise it is recorded as non-current liability. |
Revenue recognition | (o) Revenue recognition The Group adopted ASC 606, “Revenue from Contracts with Customers” for all periods presented. Consistent with the criteria of Topic 606, the Group follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group provides online English learning service to customers through its self-developed mobile apps, English Liulishuo, Liuli Reading and Kids Liulishuo. The Group generates revenue by offering a variety of courses to its customers. The Group primarily offers two types of course packages, namely prepaid standard courses and prepaid multiple course packages. Prepaid standard courses, such as DongNi English, DongNi English A+ and Kids Course, allow customers to purchase courses to be consumed over a certain period of time. Prepaid multiple course packages which contain prepaid standard courses and course credits for one-to-one tutoring sessions with contracted human teachers are provided as the Group’s premium services, and allow customers to purchase multiple courses for use before a certain expiration date. The customers purchase the services by subscribing to prepaid standard courses, prepaid multiple course packages or other courses either directly from the Group or through online commerce platform partners. Subscription fees are generally paid in advance and initially recorded as deferred revenue. The Group refunds subscription fees corresponding to any remaining undelivered learning services when customers withdraw contracts with the Group. Withdrawals are recorded as reductions of the deferred revenue related to subscription fees received in advance and have no impact on recognized revenue. The Group has assessed all variable considerations identified when determining the transaction price and such assessment requires the Company to consider various forms that the variable considerations may take. To incentivize the subscription of its prepaid courses, the Group selectively offers performance-based or behavior-based refunds to its customers who subscribe the prepaid courses. The amount of refund is fixed and pre-determined and may be larger than the subscription fee. In the case that the refund amount is larger than customer’s individual cumulative revenue basis, the Group recognizes such negative revenue as selling expenses. There were negative revenue amounts of RMB recorded in selling expenses for the years ended December 31, 2018, 2019 and 2020, respectively. Prepaid courses consist of two types of revenue models—the non-refundable course model and the refundable course model. Revenues for the non-refundable course model are recognized ratably over the contractual course period as services are provided. Under the refundable course model, a customer is eligible to obtain a refund if the customer achieves certain agreed performance goals or behavior goals, including but not limited to completing a minimum number of learning hours within a set period of time, achieving a minimum number of course sharing on social networking apps within the contractual course period, achieving various measures of learning efficiency, and receiving a certain overall score for each course in the package. Based on the historical records of performance-based or behavior-based refunds, the Group estimates a refund rate that constitutes a reduction of the transaction price to recognize the revenues ratably as services are provided over the contractual course period. When there are no sufficient historical records for the Group’s estimation, revenue will not be recognized until uncertainty associated with the variable considerations is resolved. Except for the aforementioned performance-based or behavior-based refunds to its customers, there are no other circumstances that cause variability in the considerations. The Group has concluded that it is responsible for the designation and production of all the online courses and the Group is the party contractually and substantively holding all rights to the service of delivering the courses. Therefore, the Group meets the principle under ASC 606 of having control of the service and should be viewed as the principal in the arrangements. The Group therefore recognizes revenue on a gross basis. Prepaid standard courses Prepaid standard courses include the Group’s standard DongNi English, DongNi English A+ and Kids Course corresponding to customers’ proficiency levels. Such courses range from 30 days to 1,080 days. A customer can access the standard course without limit within such customer’s fixed contract period. Revenue is recognized on a straight-line basis over the contractual course period. Prepaid multiple course packages Prepaid multiple course packages range are provided as the Group’s premium services, including the standard DongNi English course and course credits for one-to-one The Group determines the standalone selling price for each type of course in the package and allocates the transaction price based on the relative value of each type of course in the arrangement, if applicable. The best evidence of standalone selling price is the price the Group charges for a certain type of course when the Group sells it separately in similar circumstances to similar users. For a type of course that is not being sold separately, the Group determines the value for each course based on its cost, plus an expected margin. For the standard courses included in prepaid multiple course packages, revenue is recognized on a straight-line basis over the contractual course period. For one-to-one Other courses and services The Group also provides other courses and services, such as pronunciation training and practice tests. Revenues are recognized ratably over a fixed term of the agreement or an estimated viewership period as services are provided. The Group offers free courses to customers upon registration. Customers are not obligated to subscribe any course packages with the Group to obtain the free courses. The Group records the content related costs incurred in providing the free courses as sales and marketing expenses. User Incentive Program The Group’s customers are registered users of its mobile app who have subscribed for the courses of the Group. The Group has incentive programs for its registered users to enhance user engagement and to incentivize the use of the Group’s platform. The Group offers points or cash rewards to the registered users who refer new registered users to its mobile app, or when they participate in various free activities in the Group’s mobile app. The points can be redeemed for free gifts and the cash rewards can be withdrawn at the discretion of the registered users with no threshold. Both the offering and the use of the points, and the grant of the cash rewards are not associated with revenue transactions. The estimated incremental costs related to free gifts and cash rewards are recognized as a component of the Group’s sales and marketing expenses. Value-added tax The Group’s revenue is subject to value-added tax (“VAT”) for the periods presented. The Group also pays VAT for costs and expenses (“input VAT”). VAT payable is permitted to be offset against input VAT, when supported by valid VAT invoices received from vendors against their VAT liability. VAT on the invoiced amount collected by the Group on behalf of tax authorities in respect of services provided, net of VAT paid for purchases, is recorded as a liability until it is paid to the tax authorities. |
Cost of revenues | (p) Cost of revenues Cost of revenues consist of expenditures incurred in the generation of the Group’s revenue, including but not limited to the course content related costs, service fees paid to contracted human teachers in one-to-one courses, rental expenses, IT service costs and depreciation of property and equipment. |
Research and development expense | (q) Research and development expense Research and development expenses consist primarily of (i) salary and welfare for research and development personnel, (ii) rental expenses for office space associated with research and development personnel, and (iii) depreciation of office premises and servers utilized by research and development personnel. Research and development costs are expensed as incurred. The Company accounts for internal use software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. No cost for developing such software application was capitalized for the periods presented. |
Sales, Marketing, General and Administrative Expenses | (r) Sales and marketing expenses Sales and marketing expenses consist primarily of branding and marketing expenses, salary and welfare for sales and marketing personnel, commissions to distribution channels (mobile app stores) and online commerce platform partners, payment processing expenses, rewards to registered users related to incentive programs, and rental expenses for office space associated with sales and marketing personnel. The branding and marketing expenses amounted to The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with the customer that it would not have incurred if the contract had not been obtained. The Company recognizes the incremental costs of obtaining a contract, including the commission to distribution channels (mobile app stores) and online commerce platform partners, as an asset, and amortizes the related cost over the period of expected benefit. Upon the election of the practical expedient under ASC 340-40-25-4, the incremental costs of obtaining a contract are expensed when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. For the years ended December 31, 2018, 2019 and 2020, the incremental costs capitalized as assets were not material. (s) General and administrative expenses General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses for office space associated with general and administrative personnel, general office expenses, and professional service fees. |
Government subsidies | (t) Government subsidies Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and in compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government subsidies with no further conditions to be met are recorded as “Other income, net” when received. The government subsidies with certain operating conditions are recorded as liabilities when received and will be recorded as operating income when the conditions are met. |
Operating leases | (u) Operating leases The Group adopted ASU 2016-02, Leases, on January 1, 2019. The Group determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use non-current ROU assets represent the Group’s right to use an underlying asset for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Group includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Group’s leases do not provide an implicit interest rate, the Group uses its incremental borrowing rate to compute the present value of lease liabilities, which it calculates based on the credit quality of the Group and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. The Company adopted ASU 2016-02 using the modified retrospective transition approach, to be applied to leases existing as of, or entered into after, January 1, 2019. Results for the year ended December 31, 2018 continue to be presented under the accounting standards originally in effect for that period. Prior to the adoption, leases where substantially all the rewards and risks of ownership of assets remain with the lessor were accounted for as operating leases. Payments made under operating leases were recognized as an expense on a straight-line basis over the lease term. The Group had no capital leases in any period presented. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: non-lease non-lease |
Employee social security and welfare benefits | (v) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees. The Group’s obligations are limited to the amounts contributed and there is no legal obligation beyond the contributions made. |
Income taxes | (w) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statements recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognized income tax expenses due to uncertain tax position for the year ended December 31, 2018, 2019 and 2020 in the amount of |
Share-based compensation | (x) Share-based compensation Share-based compensation costs are measured at the grant date. The share-based compensation expenses have been categorized as either cost of revenue, general and administrative expenses, selling and marketing expenses or research and development expenses, depending on the job functions of the grantees. The compensation expense in connection with the options granted to employees is recognized using the straight-line method over the requisite service period. Forfeitures are estimated at the time of grant, with such estimate updated periodically and with actual forfeitures recognized currently to the extent they differ from the estimate. In determining the fair value of the Company’s share options, the binomial option pricing model has been applied. |
Treasury stock | (y) Treasury stock Effective November 8, 2019, the Board of Directors approved a share repurchase program to repurchase in the open market up to US$ million worth of outstanding ADSs of the Company, every one of which represents one class A ordinary share. The program expired in May Repurchased ADSs were recorded as treasury stock and were accounted for under the cost method. Under the cost method, when the Company’s shares are acquired for purposes other than retirement, the costs of the acquired stock will be shown separately as a deduction from the total of capital stock. No repurchased shares of common stock have been retired. Up to December 31, 2020 781,011 outstanding ADSs (781,011 shares) were repurchased with a total consideration of US$2,196 (RMB 15,327) on the open market, at a weighted average price of US$2.81 per ADS. |
Statutory reserves | (z) Statutory reserves The Group’s subsidiaries and consolidated VIE and its subsidiary that are incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to other reserve funds and the Group does not have any intentions to make appropriations to any other reserve funds. The general reserve fund can only be used for specific purposes, such as setting off the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves. There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Group was not done so. Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to the Company in terms of cash dividends, loans or advances. |
Related parties | (aa) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Dividends | (ab) Dividends Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2018, 2019 and 2020, respectively. The Group does not have any present plan to pay any dividends on ordinary shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business. |
Loss per share | (ac) Loss per share Basic loss per share is computed by dividing net loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year using the two class method. Using the two class method, net loss is allocated between ordinary shares and other participating securities (i.e. preferred shares) based on their participating rights. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the year. Dilutive equivalent shares are excluded from the computation of diluted loss per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s convertible redeemable preferred shares using the if-converted |
Comprehensive loss | (ad) Comprehensive loss Comprehensive loss is defined as the change in shareholders’ equity (deficit) of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive loss is reported in the consolidated statements of comprehensive loss. Accumulated other comprehensive losses of the Group include the foreign currency translation adjustments. |
Segment reporting | (ae) Segment reporting Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews operating consolidated results including revenue, gross profit and operating profit at a consolidated level only. The Group does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Group has only operating segment and reportable segment. |
Recently adopted accounting pronouncements | (af) Recently adopted accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, 2016-13”), available-for-sale The FASB further issued Accounting Standards Update No. 2018-19, 2018-19, No. 2019-04, 2019-04, No. 2019-05, 2019-05, No. 2019-10, 2019-10 No. 2019-11, 2019-11. 2016-13. 2016-13 In August 2018 the FASB issued ASU No. 2018-13, 2018-13 2018-13 2018-13 2018-13 (ag) Recently issued accounting pronouncements not yet adopted In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Major Subsidiaries and VIEs | As of December 31, 2020, the Company’s major subsidiaries, major VIEs and VIE’s subsidiary are as follows: Company Name Date of establishment Place of Percentage of Principal activities Wholly owned subsidiaries of the Company: LingoChamp US Inc. Established on US 100 % AI lab operation LingoChamp (HK) Limited Established on Hong Kong 100 % Investment holding Yuguan Information Technology (Shanghai) Co., Ltd. (“Yuguan WFOE”) Established on PRC 100 % Technology development Yuling Culture Communication (Shanghai) Co., Ltd. Established on PRC 100 % Provision of cross-border Variable Interest Entity (“VIEs”) Shanghai Liulishuo Information and Technology Co., Ltd. (“Shanghai Liulishuo” or “Shanghai Liulishuo VIE”) Established on PRC 100 % Provision of English Shanghai Mengfan Culture Communication Co., Ltd. (“Mengfan”) Established on PRC 100 % Provision of marketing Shanghai Mengfan Education Training Co., Ltd. (“Mengfan Education”) Established on PRC 100 % Provision of English Subsidiary of Variable Interest Entity (“VIE ’s Wuhan Liulishuo Information and Technology Co., Ltd. Established on PRC 100 % Provision of marketing |
Schedule of VIEs | The following combined financial information of the Group’s VIEs and VIEs’ subsidiary as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 was included in the accompanying consolidated financial statements of the Group as follows: As of December 31, 2019 2020 Assets Current assets Cash and cash equivalents 137,364 37,673 Restricted cash 100 20 Accounts receivable, net 7,360 5,892 Amounts due from inter-company entities 3,258 4,254 Prepayments and other current assets 60,942 36,298 Total current assets 209,024 84,137 Non-current Property and equip m 34,815 15,773 Operating lease right-of-use 113,616 48,862 Other non-current 6,023 3,510 Deferred tax assets 15,336 13,547 Total non-current 169,790 81,692 Total assets 378,814 165,829 As of December 31, 2019 2020 Liabilities Current liabilities Accounts payable 91,896 50,443 Amounts due to inter-company entities 219,744 169,717 Deferred revenue, current 695,971 689,325 Salary and welfare payable 73,946 56,946 Tax payable 46,823 48,058 Operating lease liability, current 29,119 19,465 Accrued liabilities and other current liabilities 11,938 16,405 Total current liabilities 1,169,437 1,050,359 Deferred revenue, non-current — 56,905 Operating lease liability, non-current 83,282 32,933 Other non-current 1,000 2,380 Total non-current 84,282 92,218 Total liabilities 1,253,719 1,142,577 For the years ended December 31, 2018 2019 2020 Net revenues 637,034 1,023,213 972,628 Net loss (387,668 ) (298,596 ) (101,843 ) For the years ended December 31, 2018 2019 2020 Net cash provided by/(used in) operating activities 48,285 109,999 (98,741 ) Net cash used in investing activities (15,538 ) (31,603 ) (1,030 ) Net cash provided by financing activities 5,055 1,000 — Net increase/(decrease) in cash, cash equivalents and restricted cash 37,802 79,396 (99,771 ) |
Principal Accounting Policies_2
Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: Level 1 Level 2 Level 3 Balance at As of December 31 , Assets Short-term investments—Wealth management products — 240,948 — 240,948 As of December 31, Assets Short-term investments—Wealth management products — 91,049 — 91,049 |
Schedule of Estimated Useful Lives of Property and Equipment | The estimated useful lives are as follows: Leasehold improvements over the shorter of lease terms or estimated useful lives of the assets Office equipments 3-5 Software 3 years |
Risks and Concentration (Tables
Risks and Concentration (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Sumamry of Concentration Greater than 10% of Accounts Receivable | The following table summarized entities with greater than 10% of the accounts receivable: As of December 31, 2019 2020 Distribution channel A 56 % 50 % Distribution channel B 25 % 20 % |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The overseas cash and cash equivalents are primarily held by the Company and its subsidiaries in Hong Kong and US. RMB amount (RMB RMB equivalent amount Total Overseas China Overseas China Non VIE VIE Non VIE VIE December 31, 2019 6,607 13,453 137,364 65,059 58,683 — 281,166 December 31, 2020 5,668 33,310 37,673 32,702 28,643 — 137,996 |
Restricted cash (Tables)
Restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Schedule of Restricted Cash And Cash Equivalents | Restricted cash mainly represents the cash proceeds from the exercise of share options by the Company’s employee, executives and directors held in a bank account which have yet to be transmitted to them. As of December 31, 2019 2020 Restricted cash for exercise of share options to be transmitted to employees 1,716 491 Cash deposit held in designated bank account 100 20 Total restricted cash 1,816 511 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Accounts Receivable, Net | As of December 31, 2019 2020 Accounts receivable, gross 7,360 5,892 Less: allowance for cr edit losses — — Accounts receivable, net 7,360 5,892 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The other assets consist of the following: As of December 31, 2019 2020 Prepayment and other current assets Subscription fees receivables due from distribution channels and online commerce platform partners for unconsumed courses 20,597 9,587 Gift goods to be used in promotion and incentive programs 4,775 9,346 Payment for digital contents (b) 4,921 6,621 Receivables from payment- processing- service providers 6,335 5,255 Prepaid insurance fees 4,938 5,099 Prepaid advertising fees 5,788 4,551 Value-added tax receivable 17,405 3,797 Prepayments of service fees 3,216 3,060 Loans and advance to employees (a) 4,437 2,899 Prepayment of software license fee 2,278 2,500 Rental deposits refundable within one year 1,878 2,009 Printing course materials — 1,906 Prepaid rental fee 1,291 72 Prepayment for share repurchase program (Note 15) 6,711 — Others 2,217 1,570 Total repayment and other current assets 86,787 58,272 Non-current Long-term rental deposits 8,447 4,643 Prepayment for courses copyright — 1,223 Total non-current 8,447 5,866 (a) As of December 31, 2020, l (b) Payment for digital contents represent the payment to a publisher for the access to digital books of which the control has been obtained. The respective content costs will be realized into cost of revenue along with the revenue recognition of the subscription to the courses . |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment consist of the following: As of December 31, 2019 2020 Cost: Leasehold improvements 68,987 45,020 Office equipment 36,009 31,539 Software 1,651 1,651 Total cost 106,647 78,210 Less: Accumulated depreciation (28,153 ) (40,427 ) Less: Impairment loss (6,857 ) (7,709 ) Property and equipment, ne t 71,637 30,074 |
Schedule of Depreciation Expense | Depreciation expense recognized for the years ended December 31, 2018, 2019 and 2020 are summarized as follows: For the years ended 2018 2019 2020 Cost of revenues 810 4,095 5,189 Sales and marketing expenses 3,865 12,801 11,350 Research and development 894 2,729 2,837 General and administrative expenses 285 662 1,880 Total 5,854 20,287 21,256 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | As of 2019 2020 Copyright (Note 12( a 15,573 20,242 Computer software 862 862 Domain name 484 484 Less: Accumulated amortization (1,357 ) (7,404 ) Add: translation difference (21 ) 157 Intangible assets, net 15,541 14,341 |
Tax payable (Tables)
Tax payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Schedule of Tax Payable | As of December 31, 2019 2020 Uncertain tax position (Note 19) 41,100 41,100 Withholding individual income tax 33,153 36,226 Value added tax 87 1 Total 74,340 77,327 |
Accrued liabilities and other_2
Accrued liabilities and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Schedule of Accrued liabilities and Other liabilities | As of December 31, 2019 2020 Accrued liabilities and other current liabilities Payables related to professional service fee 3,700 6,753 Government grant 6,070 5,450 Accrual for exchange golden coins and membership credits 2,434 5,156 Refund from depository bank - current 1,011 945 Payables to employees related to net proceeds from share options exercised (Note 6) 1,716 491 Others 513 587 Total 15,444 19,382 Non-Current Payables related to copyright (a) 8,707 6,622 Government grant 1,000 2,380 Refund from depository bank - non-current 2,734 1,612 Total 12,441 10,614 (a) The Group purchased copyrights from third party copyright owners for the purpose of new product development and recorded liability for the payment not yet settled. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of other information for leases | Information related to operating leases as of December 31, 2019 and 2020 are as follows (in thousands, except for percentages and years). As of As of 2019 2020 Assets Operating lease right of use assets, net 155,525 82,488 Liabilities Operating lease liabilities, current 37,009 31,845 Operating lease liabilities, non-current 117,124 56,903 Weighted average remaining lease term (years) 3.97 3.20 Weighted average discount rate 5.70 % 5.70 % |
Summary of operating leases information | Information related to operating lease activity during the year ended December 31, 2019 and 2020 are as follows: As of As of 2019 2020 Operating lease rental expense Amortization of right of use assets 32,301 31,177 Expense for short-term leases within 12 months 12,369 1,743 Interest of lease liabilities 8,480 6,182 53,150 39,102 |
Summary of cash flow information related to leases | Supplemental cash flow information related to leases was as follows: For the Year For the Year 2019 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating lease payment 42,228 29,706 Right-of-use Operating lease liabilities 26,840 1,330 |
Lessee liability maturity | Maturities of lease liabilities were as follows: As of 2020 2021 35,735 2022 30,152 2023 25,252 2024 5,387 Total undiscounted lease payment 96,526 Less: imputed interest (7,778 ) Total lease liabilities 88,748 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary Of Employee Option Activity | The following table sets forth the summary of employee option activity for the years ended December 31, 2018, 2019 and 2020: Number of Weighted Weighted Aggregate Weighted USD In years USD’000 USD Outstanding at January 1, 2018 3,245,554 0.2093 8.17 25,272 3.61 Granted 2,388,750 0.6000 11.74 Forfeited (653,910 ) 0.3318 Outstanding at December 31, 2018 4,980,394 0.3806 8.19 35,875 7.13 Outstanding at January 1, 2019 4,980,394 0.3806 8.19 35,875 7.13 Granted 490,759 0.6000 7.27 Exercised (1,894,994 ) 0.1484 Forfeited (937,438 ) 0.5477 Outstanding at December 31, 2019 2,638,721 0.5288 8.39 11,429 8.76 Outstanding at January 1, 2020 2,638,721 0.5288 8.39 11,429 8.76 Granted 2,983,730 0.6633 2.38 Exercised (536,107 ) 0.5246 Forfeited (1,920,717 ) 0.4849 Outstanding at December 31, 2020 3,165,627 0.6829 8.74 3,070 4.95 Vested and expected to vest at December 31, 2020 2,335,330 0.7453 8.64 2,208 5.09 Exercisable at December 31, 2020 665,065 0.4761 7.28 694 8.97 |
Summary of Assumptions Used in Determining Fair Value of Share Options Grant | The fair values of share options granted during the years ended December 31, 2018, 2019 and 2020. 2018 2019 2020 Expected volatility (i) 48.13%~49.11% 45.82 %~ 47.20% 46.8%~53.05% Risk-free interest rate (ii) 2.85%~3.14% 1.75 %~ 2.82% 0.78%~0.99% Exercise multiple 2.8 2.8 2.2~2.8 Expected dividend yield (iii) 0% 0% 0% Contractual term 10 10 10 Expected forfeiture rate (post-vesting) 5% 5% 5% Exercise price US$0.60 US$0.60 US$0.01 \US$0.60\ Fair value of the common share on the date US$8.25~US$13.39 US$2.90-US$11.94 US$1.26~US$4.11 Notes: (i) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (ii) The risk-free interest rate of periods within the contractual life of the share option is based on the market yield of the US Treasury Strip Bond with a maturity life equal to the expected life to expiration. (iii) The Company has no history or expectation of paying dividends on its ordinary shares. (iv) Before the IPO, the estimated fair value of the Company’s ordinary shares at their respective grant dates, was determined with the assistance of an independent third party valuation firm by using income approach. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The disaggregated revenues by course plans were as follows: For the years ended December 31, 2018 2019 2020 Prepaid standard courses 596,702 997,794 924,695 Prepaid multiple course packages 27,904 13,139 44,876 Other courses 12,658 12,280 3,057 Total revenues 637,264 1,023,213 972,628 Less: tax surcharges (40 ) — — Net revenues 637,224 1,023,213 972,628 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Reconciliation Between the Effective Income Tax Rate and the PRC Statutory Income Tax Rate | A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: For the years ended December 31, 2018 2019 2020 % % % PRC Statutory income tax rates 25.0 % 25.0 % 25.0 % Change in valuation allowance (9.0 )% (20.2 )% (24.9 )% Super deduction of research and development expenses — 3.9 % 6.1 % Non-deductible expenses (0.3 )% (0.6 )% (0.2 )% Estimates for uncertain tax positions (10.5 )% — — Difference in EIT rates of certain overseas entities (2.8 )% (1.0 )% (2.0 )% Tax filing difference — 0.7 % 0.1 % Effect of tax holiday (Note) (7.6 )% (8.1 )% (4.6 )% Total (5.2 )% (0.3 )% (0.5 )% |
Summary of Effect of Preferential Tax on China Operations | The following table sets forth the effect of preferential tax on China operations: For the years ended 2018 2019 2020 Tax holiday effect 27,400 8,317 — Basic and diluted net loss per share effect 1.02 0.17 — |
Schedule of Loss from Domestic and Foreign Components Before Income Tax Expenses | Loss from domestic and foreign components before income tax expenses For the years ended December 31, 2018 2019 2020 Domestic 400,791 560,503 383,730 Foreign 63,115 12,378 9,195 Total 463,906 572,881 392,925 |
Current and Deferred Portions of Income Tax Expense | The current and deferred portions of income tax expense included in the consolidated statements of comprehensive loss are as follows: For the years ended 2018 2019 2020 Current income tax expense 41,100 296 113 Deferred income tax (benefit)/expense (16,940 ) 1,604 1,789 Income tax expense 24,160 1,900 1,902 |
Summary of Deferred Tax Assets | The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2019 and 2020 are as follows: As of December 31, 2019 2020 Deferred tax assets Deductible temporary difference related to advertising expenses 91,710 128,756 Deductible temporary difference related to accruals and other payables 26,851 24,954 Tax losses carried forward 103,246 163,998 Total deferred tax assets 221,807 317,708 Less: valuation allowanc e (206,471 ) (304,161 ) Total deferred tax assets 15,336 13,547 |
Summary of Movement of Valuation Allowance | Movement of valuation allowance is as follows: For the years ended December 31, 2018 2019 2020 Beginning balance 49,183 90,979 206,471 Additions 41,796 137,122 103,399 Reversals — (21,630 ) (5,709 ) Ending balance 90,979 206,471 304,161 |
Summary of Unrecognized Tax Benefits | The following table summarizes activity of the total amounts of unrecognized tax benefits: For the years ended December 31, 2018 2019 2020 Beginning balance — 41,100 41,100 Increases related to tax positions taken during the current year 41,100 — — Total 41,100 41,100 41,100 |
Basic and diluted net loss pe_2
Basic and diluted net loss per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted loss Per Share | (a) Basic and diluted net loss per share Basic loss per share and diluted loss per share have been calculated in accordance with ASC 260 on computation of the losses per share for the years ended December 31, 2018, 2019 and 2020 are as follows: For the years ended December 31, 2018 2019 2020 Numerator: Net loss (488,066 ) (574,781 ) (394,827 ) Accretion on Series A convertible redeemable preferred shares redemption value (1,978 ) — — Accretion on Series B convertible redeemable preferred shares redemption value (10,140 ) — — Accretion on Series C convertible redeemable preferred shares redemption value (15,899 ) — — Net loss attributable to ordinary shareholders-Basic and diluted (516,083 ) (574,781 ) (394,827 ) Denominator: Denominator for basic and diluted loss per share weighted-average ordinary shares outstanding (Note) Basic and diluted 26,921,735 49,364,429 49,430,696 Basic and diluted loss per share (19.17 ) (11.64 ) (7.99 ) Note: Considering that the holder of Preferred Shares had no contractual obligation to participate in the Company’s losses, any losses from the Group should not be allocated to the Preferred Shares. |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following ordinary shares equivalent were excluded from the computation of diluted net loss per ordinary share for the periods presented because including them would have had an anti-dilutive effect: For the year ended December 31, 2018 2019 2020 Preferred shares — weighted average 16,729,811 — — Share options — weighted average 2,263,775 1,051,152 372,273 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company - Balance Sheets | BALANCE SHEETS As of December 31, 2019 2020 RMB RMB US$ (Note 2 (e)) ASSETS Current assets: Cash and cash equivalents 2,028 2,888 443 Amounts due from subsidiaries and VIEs 892,324 866,102 132,736 Prepayments and other current assets 12,851 5,434 833 Short-term investment 139,524 64,910 9,948 Total current assets 1,046,727 939,334 143,960 Non-current Investment in equity fund 5,919 5,711 875 Total non-current 5,919 5,711 875 Total assets 1,052,646 945,045 144,835 LIABILITIES AND SHAREHOLDERS’ DEFICIT Current liabilities: Payables to subsidiaries and VIEs 3,209 3,415 523 Accrued expenses and other current liabilities 1,618 1,543 236 Total current liabilitie s 4,827 4,958 759 Non-current Investment payables to subsidiaries and VIEs 1,369,890 1,651,038 253,034 Other non-current 2,734 1,612 247 Total non-current liabilities 1,372,624 1,652,650 253,281 Total liabilities 1,377,451 1,657,608 254,040 Shareholders’ deficit Class A ordinary shares (US$0.001 par value; 200,000,000 shares authorized; iss ued and 208 212 32 Class B ordinary shares (US$0.001 par value; 25,000,000 shares authorized, 19,675,674 shares 121 121 19 Subscriptions receivable from founding shareholders (122 ) (201 ) (31 ) Treasury stock (US$0.001 par value; 591,200 and 781,011 shares as of December 31, 2019 and December 31, 2020, respectively) (10,730 ) (15,327 ) (2,349 ) Additional paid-in 1,167,884 1,198,852 183,732 Accumulated other comprehensive income 29,483 10,256 1,572 Accumulated deficit (1,511,649 ) (1,906,476 ) (292,180 ) Total shareholders’ deficit (324,805 ) (712,563 ) (109,205 ) Total liabilities and shareholders’ deficit 1,052,646 945,045 144,835 |
Condensed Financial Information of Parent Company - Statements of Operations | STATEMENTS OF COMPREHENSIVE LOSS For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2 (e)) Operating expenses: General and administrative expense s (5,807 ) (11,787 ) (12,549 ) (1,922 ) Total operating expenses (5,807 ) (11,787 ) (12,549 ) (1,922 ) Loss from operations (5,807 ) (11,787 ) (12,549 ) (1,922 ) Interest income — 6,280 2,797 429 Investment income 48 87 — — Other loss, net (1 ) (46 ) — — Loss from subsidiaries and VIEs (482,306 ) (569,315 ) (385,075 ) (59,015 ) Loss before provision for income taxes (488,066 ) (574,781 ) (394,827 ) (60,508 ) Provision for income taxes — — — — Net loss (488,066 ) (574,781 ) (394,827 ) (60,508 ) Series A Preferred share redemption value accretion (1,978 ) — — — Series B Preferred share redemption value accretion (10,140 ) — — — Series C Preferred share redemption value accretion (15,899 ) — — — Net loss attributable to ordinary shareholders (516,083 ) (574,781 ) (394,827 ) (60,508 ) Net loss (488,066 ) (574,781 ) (394,827 ) (60,508 ) Other comprehensive income/(loss) —Foreign currency translation adjustment, net of nil tax 16,403 13,165 (19,227 ) (2,947 ) Comprehensive loss (471,663 ) (561,616 ) (414,054 ) (63,455 ) |
Condensed Financial Information of Parent Company - Statements of Cash Flows | STATEMENTS OF CASH FLOWS For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ (Note 2 (e)) Cash flows used in operating activities (6,722 ) (11,422 ) (13,448 ) (2,061 ) Cash flows (used in)/provided by investing activities (362,380 ) (119,440 ) 18,176 2,786 Cash flows provided by/(used in) financing activities 438,923 (16,344 ) 4,285 657 Effect of exchange rate changes on cash 360 2,121 (8,153 ) (1,250 ) Net increase/(decrease) in cash and cash equivalents 70,181 (145,085 ) 860 132 Cash and cash equivalents, beginning of year 76,932 147,113 2,028 311 Cash and cash equivalents, end of year 147,113 2,028 2,888 443 |
Organization and Principal Ac_3
Organization and Principal Activities - Summary of Major Subsidiaries and VIEs (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Place of incorporation | E9 |
LingoChamp US Inc [Member] | Subsidiaries [Member] | US [Member] | |
Date of establishment | Aug. 15, 2017 |
Place of incorporation | X1 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | AI lab operation |
LingoChamp (HK) Limited [Member] | Subsidiaries [Member] | Hong Kong [Member] | |
Date of establishment | Aug. 29, 2013 |
Place of incorporation | K3 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Investment holding |
Yuguan WFOE [Member] | Subsidiaries [Member] | PRC [Member] | |
Date of establishment | Nov. 19, 2013 |
Place of incorporation | F4 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Technology development |
Yuling WFOE [Member] | Subsidiaries [Member] | PRC [Member] | |
Date of establishment | Oct. 13, 2015 |
Place of incorporation | F4 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Provision of cross-border loan arrangement |
Liulishuo VIE [Member] | Variable Interest Entities [Member] | PRC [Member] | |
Date of establishment | May 17, 2013 |
Place of incorporation | F4 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Provision of English learning services |
Mengfan VIE [Member] | Variable Interest Entities [Member] | PRC [Member] | |
Date of establishment | Dec. 8, 2014 |
Place of incorporation | F4 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Provision of marketing support services |
Mengfan Education VIE [Member] | Variable Interest Entities [Member] | PRC [Member] | |
Date of establishment | Apr. 18, 2019 |
Place of incorporation | F4 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Provision of English learning service |
Wuhan Liulishuo [Member] | Subsidiaries [Member] | Variable Interest Entities [Member] | PRC [Member] | |
Date of establishment | Jan. 14, 2019 |
Place of incorporation | F4 |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Provision of marketing support service |
Organization and Principal Ac_4
Organization and Principal Activities - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Place of incorporation | E9 | ||
Extended interest free loan | ¥ 1,000 | ||
CAYMAN ISLANDS | |||
Date of establishment | Aug. 19, 2013 | ||
Place of incorporation | E9 | ||
LingoChamp (HK) Limited [Member] | Hong Kong [Member] | Subsidiaries [Member] | |||
Date of establishment | Aug. 29, 2013 | ||
Place of incorporation | K3 | ||
Percentage of direct or indirect economic ownership | 100.00% | ||
Yuguan WFOE [Member] | |||
Agreement expiration period | 30 years | 30 years | |
Service fee | ¥ 426,886 | ¥ 600,999 | ¥ 285,240 |
Service fees payable | ¥ 87,851 | ||
Yuguan WFOE [Member] | PRC [Member] | Subsidiaries [Member] | |||
Date of establishment | Nov. 19, 2013 | ||
Place of incorporation | F4 | ||
Percentage of direct or indirect economic ownership | 100.00% |
Organization and Principal Ac_5
Organization and Principal Activities - Financial Information of Company's VIEs (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Current assets | |||||
Cash and cash equivalents | ¥ 137,996 | ¥ 281,166 | $ 21,149 | ||
Restricted cash | 511 | 1,816 | 78 | ||
Accounts receivable, net | 5,892 | 7,360 | 903 | ||
Prepayments and other current assets | 58,272 | 86,787 | 8,931 | ||
Total current assets | 293,720 | 646,772 | 45,015 | ||
Non-current assets | |||||
Property and equipment, net | 30,074 | 71,637 | 4,609 | ||
Operating lease, right of use asset | 82,488 | 155,525 | 12,642 | ||
Other non-current assets | 5,866 | 8,447 | 899 | ||
Deferred tax assets | 13,547 | 15,336 | 2,076 | ||
Total non-current assets | 152,027 | 272,405 | 23,299 | ||
Total assets | 445,747 | 919,177 | 68,314 | ||
Current liabilities | |||||
Accounts payable | 83,576 | 137,684 | 12,809 | ||
Deferred revenue, current | 689,325 | 695,971 | 105,644 | ||
Salary and welfare payable | 132,433 | 153,969 | 20,296 | ||
Tax payable | 77,327 | 74,340 | 11,851 | ||
Operating lease liability, current | 31,845 | 37,009 | 4,880 | ||
Total current liabilities | 1,033,888 | 1,114,417 | 158,450 | ||
Deferred revenue, non-current | 56,905 | 8,721 | |||
Operating lease liability, non-current | 56,903 | 117,124 | 8,721 | ||
Total non-current liabilities | 124,422 | 129,565 | 19,069 | ||
Total liabilities | 1,158,310 | 1,243,982 | 177,519 | ||
Net revenues | 972,628 | $ 149,062 | 1,023,213 | ¥ 637,224 | |
Net loss | (394,827) | (60,508) | (574,781) | (488,066) | |
Net cash provided by/(used in) operating activities | (302,598) | (46,375) | (148,164) | (112,942) | |
Net cash used in investing activities | 164,667 | 25,236 | 100,246 | (417,716) | |
Net cash provided by financing activities | 4,285 | 657 | (16,344) | 443,978 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (133,646) | $ (20,482) | (64,262) | (86,680) | |
Variable Interest Entities [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 37,673 | 137,364 | |||
Restricted cash | 20 | 100 | |||
Accounts receivable, net | 5,892 | 7,360 | |||
Amounts due from inter-company entities | 4,254 | 3,258 | |||
Prepayments and other current assets | 36,298 | 60,942 | |||
Total current assets | 84,137 | 209,024 | |||
Non-current assets | |||||
Property and equipment, net | 15,773 | 34,815 | |||
Operating lease, right of use asset | 113,616 | $ 48,862 | |||
Other non-current assets | 3,510 | 6,023 | |||
Deferred tax assets | 13,547 | 15,336 | |||
Total non-current assets | 81,692 | 169,790 | |||
Total assets | 165,829 | 378,814 | |||
Current liabilities | |||||
Accounts payable | 50,443 | 91,896 | |||
Amounts due to inter-company entities | 169,717 | 219,744 | |||
Deferred revenue, current | 689,325 | 695,971 | |||
Salary and welfare payable | 56,946 | 73,946 | |||
Tax payable | 48,058 | 46,823 | |||
Operating lease liability, current | 19,465 | 29,119 | |||
Accrued liabilities and other current liabilities | 16,405 | 11,938 | |||
Total current liabilities | 1,050,359 | 1,169,437 | |||
Deferred revenue, non-current | 56,905 | 0 | |||
Operating lease liability, non-current | 32,933 | 83,282 | |||
Other non-current liabilities | 2,380 | 1,000 | |||
Total non-current liabilities | 92,218 | 84,282 | |||
Total liabilities | 1,142,577 | 1,253,719 | |||
Net revenues | 972,628 | 1,023,213 | 637,034 | ||
Net loss | (101,843) | (298,596) | (387,668) | ||
Net cash provided by/(used in) operating activities | (98,741) | 109,999 | 48,285 | ||
Net cash used in investing activities | (1,030) | (31,603) | (15,538) | ||
Net cash provided by financing activities | 0 | 1,000 | 5,055 | ||
Net increase/(decrease) in cash, cash equivalents and restricted cash | ¥ (99,771) | ¥ 79,396 | ¥ 37,802 |
Principal Accounting Policies -
Principal Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2020CNY (¥)Segmentshares | Dec. 31, 2020USD ($)Segmentshares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019$ / shares | Nov. 08, 2019USD ($) | Dec. 31, 2017CNY (¥) | |
Impairment of intangible assets | ¥ 0 | ¥ 0 | ¥ 0 | ||||||
Selling expenses | 0 | 2,353,000 | 6,465,000 | ||||||
Branding and marketing expenses | 442,012,000 | 519,719,000 | 350,669,000 | ||||||
Income tax expenses due to uncertain tax position | ¥ 0 | 0 | 41,100,000 | ||||||
Minimum required percentage of annual after-tax profit, general reserve | 10.00% | 10.00% | |||||||
Required reserve, percentage of respective registered capital | 50.00% | 50.00% | |||||||
Dividends | ¥ 0 | 0 | 0 | ||||||
Disclosure on geographic areas, long-lived assets | The Group does not have any other geography besides the PRC that has above 10% of revenues or long-lived assets. | The Group does not have any other geography besides the PRC that has above 10% of revenues or long-lived assets. | |||||||
Number of operating segments | Segment | 1 | 1 | |||||||
Number of reportable segments | Segment | 1 | 1 | |||||||
Impairment of long lived assets | ¥ 21,390,000 | $ 3,278 | 6,857,000 | ||||||
Stock Repurchased During Period, Value | 4,597,000 | 10,730,000 | |||||||
Stock Repurchase Program, Authorized Amount | $ | $ 20,000 | ||||||||
Working Capital | 740,168,000 | ||||||||
Net loss | (394,827,000) | (60,508) | (574,781,000) | (488,066,000) | |||||
Cash flows used in operating activities | (302,598,000) | $ (46,375) | (148,164,000) | (112,942,000) | |||||
Total shareholders' equity (deficit) | (712,563,000) | (324,805,000) | ¥ 218,894,000 | $ (109,205) | ¥ (447,987,000) | ||||
Cash and cash equivalents | ¥ 137,996,000 | 281,166,000 | $ 21,149 | ||||||
Stock repurchase program expiration date | May 31, 2020 | May 31, 2020 | |||||||
Ordinary Share [Member] | |||||||||
Number of shares repurchased | shares | 781,011 | 781,011 | |||||||
Stock Repurchased During Period, Value | ¥ 15,327,000 | $ 2,196 | 10,730,000 | $ 1,541 | |||||
Leasehold Improvements Rental Office Space [Member] | General and Administrative Expenses [Member] | |||||||||
Impairment of long lived assets | ¥ 21,390,000 | ||||||||
Minimum [Member] | |||||||||
Time deposit maturity | 3 months | 3 months | |||||||
Intangible assets useful life | 2 years | 2 years | |||||||
Maximum [Member] | |||||||||
Time deposit maturity | 1 year | 1 year | |||||||
Intangible assets useful life | 5 years | 5 years | |||||||
Weighted Average [Member] | |||||||||
Share Price | $ / shares | $ 2.81 | $ 2.61 | |||||||
China, Yuan Renminbi [Member] | |||||||||
Foreign currency translation exchange rate | 6.5249 | 6.9762 | 6.5249 | ||||||
China, Yuan Renminbi [Member] | The City of New York [Member] | |||||||||
Foreign currency translation exchange rate | 6.5250 | 6.5250 |
Principal Accounting Policies_3
Principal Accounting Policies - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - Wealth management products [Member] - Fair Value, Measurements, Recurring [Member] - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short-term investments | ¥ 91,049 | ¥ 240,948 |
Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short-term investments | ¥ 91,049 | ¥ 240,948 |
Principal Accounting Policies_4
Principal Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | over the shorter of lease terms or estimated useful lives of the assets |
Office Equipments [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office Equipments [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Software and Software Development Costs [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Risks and Concentration - Addit
Risks and Concentration - Additional Information (Detail) - Sales Revenue, Net [Member] - Customer | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Percentage of concentrations of risk | 10.00% | 10.00% | 10.00% |
Number of Customer represented 10% or more of revenues | 0 | 0 | 0 |
Risks and Concentration - Summa
Risks and Concentration - Summary of Concentration Greater than 10% of Accounts Receivable (Detail) - Accounts Receivable [Member] | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Distribution Channel A [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations of risk | 10.00% | |
Concentration of risk percentage reprensented more than 10% of accounts receivable | 50.00% | 56.00% |
Distribution Channel B [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations of risk | 10.00% | |
Concentration of risk percentage reprensented more than 10% of accounts receivable | 20.00% | 25.00% |
Significant equity transactio_2
Significant equity transactions - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Oct. 01, 2018CNY (¥) | Oct. 01, 2018USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥) |
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Proceeds from initial public offer | ¥ | ¥ 441,166 | ||
IPO [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Proceeds from initial public offer | ¥ 441,166 | $ 64,130 | |
IPO [Member] | ADS [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Share issued | shares | 5,750,000 | ||
Sale price per share | $ / shares | $ 12.50 | ||
Proceeds from initial public offer | ¥ 441,166 | $ 64,130 |
Schedule of Cash and Cash Equiv
Schedule of Cash and Cash Equivalents (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Cash And Cash Equivalents And Short Term Investments [Line Items] | ||||
Cash and cash equivalents, at carrying value | ¥ 137,996 | $ 21,149 | ¥ 281,166 | |
Overseas [Member] | China, Yuan Renminbi [Member] | ||||
Cash And Cash Equivalents And Short Term Investments [Line Items] | ||||
Cash and cash equivalents, at carrying value | 5,668 | 6,607 | ||
Overseas [Member] | US Dollar Denominated [Member] | ||||
Cash And Cash Equivalents And Short Term Investments [Line Items] | ||||
Cash and cash equivalents, at carrying value | $ | 32,702 | $ 65,059 | ||
PRC [Member] | Non VIE [Member] | China, Yuan Renminbi [Member] | ||||
Cash And Cash Equivalents And Short Term Investments [Line Items] | ||||
Cash and cash equivalents, at carrying value | 33,310 | 13,453 | ||
PRC [Member] | Non VIE [Member] | US Dollar Denominated [Member] | ||||
Cash And Cash Equivalents And Short Term Investments [Line Items] | ||||
Cash and cash equivalents, at carrying value | $ | $ 28,643 | $ 58,683 | ||
PRC [Member] | VIE [Member] | China, Yuan Renminbi [Member] | ||||
Cash And Cash Equivalents And Short Term Investments [Line Items] | ||||
Cash and cash equivalents, at carrying value | ¥ 37,673 | ¥ 137,364 |
Restricted cash - Restricted ca
Restricted cash - Restricted cash and cash equivalents (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | ¥ 511 | ¥ 1,816 |
Restricted cash for exercise of share options to be transmitted to employees [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 491 | 1,716 |
Cash deposit held in designated bank account [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | ¥ 20 | ¥ 100 |
Accounts Receivable, Net - Acco
Accounts Receivable, Net - Accounts Receivable, Net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable, gross | ¥ 5,892 | ¥ 7,360 | |
Less: allowance for credit losses | 0 | 0 | |
Accounts receivable, net | ¥ 5,892 | $ 903 | ¥ 7,360 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Other Assets [Abstract] | |||
Subscription fees receivables due from distribution channels and online commerce platform partners for unconsumed courses | ¥ 9,587 | ¥ 20,597 | |
Gift goods to be used in promotion and incentive programs | 9,346 | 4,775 | |
Payment for digital contents | 6,621 | 4,921 | |
Receivables from payment- processing- service providers | 5,255 | 6,335 | |
Prepaid insurance fees | 5,099 | 4,938 | |
Prepaid advertising fees | 4,551 | 5,788 | |
Value-added tax receivable | 3,797 | 17,405 | |
Prepayments of service fees | 3,060 | 3,216 | |
Loans and advance to employees | 2,899 | 4,437 | |
Prepayment of software license fee | 2,500 | 2,278 | |
Rental deposits refundable within one year | 2,009 | 1,878 | |
Printing course materials | 1,906 | ||
Prepaid rental fee | 72 | 1,291 | |
Prepayment for share repurchase program | 6,711 | ||
Others | 1,570 | 2,217 | |
Total repayment and other current assets | 58,272 | $ 8,931 | 86,787 |
Long-term rental deposits | 4,643 | 8,447 | |
Prepayment for property and equipment | 1,223 | ||
Total non-current | ¥ 5,866 | $ 899 | ¥ 8,447 |
Other Assets - Schedule of Ot_2
Other Assets - Schedule of Other Assets (Parenthetical) (Detail) - Dec. 31, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Other Assets [Abstract] | ||
Loans to employees | ¥ 2,175 | $ 333 |
Advance to employees | 122 | 19 |
Receivables from employees | ¥ 602 | $ 92 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property, Plant and Equipment [Abstract] | |||
Property and equipment, gross | ¥ 78,210 | ¥ 106,647 | |
Less: Accumulated depreciation | (40,427) | (28,153) | |
Less: Impairment loss | (7,709) | (6,857) | |
Property and equipment, net | 30,074 | $ 4,609 | 71,637 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property and equipment, gross | 45,020 | 68,987 | |
Office Equipment [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property and equipment, gross | 31,539 | 36,009 | |
Software and Software Development Costs [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property and equipment, gross | ¥ 1,651 | ¥ 1,651 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Depreciation Expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | ¥ 21,256 | $ 3,258 | ¥ 20,287 | ¥ 5,854 |
Cost of Revenues [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | 5,189 | 4,095 | 810 | |
Sales and Marketing Expenses [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | 11,350 | 12,801 | 3,865 | |
Research and Development Expenses [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | 2,837 | 2,729 | 894 | |
General and Administrative Expenses [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | ¥ 1,880 | ¥ 662 | ¥ 285 |
Intangible Assets (Detail)
Intangible Assets (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Less: Accumulated amortization | ¥ (7,404) | ¥ (1,357) | |
Add: translation difference | 157 | (21) | |
Finite lived intangible assets, net | 14,341 | 15,541 | $ 2,198 |
Copyright [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets, gross | 20,242 | 15,573 | |
Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets, gross | 862 | 862 | |
Domain Name [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets, gross | ¥ 484 | ¥ 484 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses | ¥ 6,047 | $ 927 | ¥ 1,300 | ¥ 57 |
Amortization expenses, 2021 | 5,800 | |||
Amortization expenses, 2022 | 4,492 | |||
Amortization expenses, 2023 | 2,792 | |||
Amortization expenses, 2024 | 731 | |||
Amortization expenses, 2025 | ¥ 65 |
Tax Payable (Detail)
Tax Payable (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Income Tax Disclosure [Abstract] | |||
Uncertain tax position (Note 19) | ¥ 41,100 | ¥ 41,100 | |
Withholding individual income tax | 36,226 | 33,153 | |
Value added tax | 1 | 87 | |
Total | ¥ 77,327 | $ 11,851 | ¥ 74,340 |
Tax Payable - Additional Inform
Tax Payable - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Value added tax rate | 6.00% |
Accrued liabilities and other_3
Accrued liabilities and other liabilities - Schedule of Accrued liabilities and Other liabilities (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Payables and Accruals [Abstract] | |||
Payables related to professional service fee | ¥ 6,753 | ¥ 3,700 | |
Government grant | 5,450 | 6,070 | |
Accrual for exchange golden coins and membership credits | 5,156 | 2,434 | |
Refund from depository bank - current | 945 | 1,011 | |
Payables to employees related to net proceeds from share options exercised (Note 6) | 491 | 1,716 | |
Others | 587 | 513 | |
Total | 19,382 | $ 2,970 | 15,444 |
Payables related to copyright | 6,622 | 8,707 | |
Government grant | 2,380 | 1,000 | |
Refund from depository bank - non-current | 1,612 | 2,734 | |
Total | ¥ 10,614 | ¥ 12,441 |
Leases - Additional Information
Leases - Additional Information (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease weighted average discount rate | 5.70% | 5.70% |
Leases - Summary of Information
Leases - Summary of Information related to operating leases (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Assets | |||
Operating Lease, Right-of-Use Asset | ¥ 82,488 | $ 12,642 | ¥ 155,525 |
Liabilities | |||
Operating lease liabilities, current | 31,845 | 4,880 | 37,009 |
Operating lease liabilities, non-current | ¥ 56,903 | $ 8,721 | ¥ 117,124 |
Weighted average remaining lease term (years) | 3 years 2 months 12 days | 3 years 2 months 12 days | 3 years 11 months 19 days |
Weighted average discount rate | 5.70% | 5.70% | 5.70% |
Leases - Information related to
Leases - Information related to operating leases activity (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Lease, Cost [Abstract] | |||
Amortization of right of use assets | ¥ 31,177 | $ 4,778 | ¥ 32,301 |
Expense for short-term leases within 12 months | 1,743 | 12,369 | |
Interest of lease liabilities | 6,182 | $ 947 | 8,480 |
Lease, Cost | ¥ 39,102 | ¥ 53,150 |
Leases - Summary of cash flow i
Leases - Summary of cash flow information related to leases (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Supplemental Cash Flow Information Related To Leases [Line Items] | ||
Operating lease payments | ¥ 29,706 | ¥ 42,228 |
Operating lease liabilities | ¥ 1,330 | ¥ 26,840 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments for Operating Leases (Detail) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Leases [Abstract] | |
2021 | ¥ 35,735 |
2022 | 30,152 |
2023 | 25,252 |
2024 | 5,387 |
Total undiscounted lease payment | 96,526 |
Less: imputed interest | (7,778) |
Total lease liabilities | ¥ 88,748 |
Convertible Redeemable Prefer_2
Convertible Redeemable Preferred Shares - Additional Information (Detail) ¥ in Thousands | Oct. 01, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) |
Convertible Preferred Stock Warrants [Line Items] | |||
Accretion of convertible redeemable preferred shares | ¥ 28,017 | $ 4,075,000 | |
Conversion of preferred shares to ordinary shares | ¥ | ¥ 679,922 | ||
Common Class A [Member] | |||
Convertible Preferred Stock Warrants [Line Items] | |||
Conversion of preferred shares to ordinary shares | $ | $ 22,367,696 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | May 20, 2020CNY (¥) | May 20, 2020USD ($) | Nov. 14, 2019USD ($) | Oct. 01, 2018CNY (¥)shares | Oct. 01, 2018USD ($)$ / sharesshares | Aug. 30, 2018shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018CNY (¥)Vote | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Aug. 29, 2018shares | Jun. 06, 2014shares | Jun. 05, 2014shares | Aug. 19, 2013USD ($)$ / sharesshares |
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Authorized share capital | $ | $ 50 | ||||||||||||||||
Common stock, shares authorized | 250,000,000 | 100,000,000 | 100,000,000 | 50,000,000 | 50,000,000 | ||||||||||||
Share capital, par value | $ / shares | $ 0.001 | ||||||||||||||||
Temporary Equity, Shares Outstanding | 189,811 | 591,200 | 189,811 | 591,200 | |||||||||||||
Ordinary Shares repurchased, Value | ¥ | ¥ 4,597 | ¥ 10,730 | |||||||||||||||
Subscriptions Receivable from founding shareholders | 201 | 122 | $ 31 | $ 17 | |||||||||||||
Net proceeds raised from initial public offering | ¥ | ¥ 441,166 | ||||||||||||||||
Prepayment for share repurchase | ¥ 17,441 | $ 2,500 | |||||||||||||||
Withdrawal Of Residual Prepayment | ¥ 2,154 | $ 304 | |||||||||||||||
Shares not yet designated | 25,000,000 | ||||||||||||||||
Preferred stock, shares issued | 22,367,696 | ||||||||||||||||
Preferred stock, shares outstanding | 22,367,696 | ||||||||||||||||
Weighted Average [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Share price | $ / shares | $ 2.81 | $ 2.61 | |||||||||||||||
After Closing of Qualified IPO [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Authorized Shares not yet designated and unissued | 25,000,000 | 25,000,000 | |||||||||||||||
IPO [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Ordinary shares, issued | 5,750,000 | ||||||||||||||||
Sale of class A ordinary shares, price per share | $ / shares | $ 12.5 | ||||||||||||||||
Net proceeds raised from initial public offering | ¥ 441,166 | $ 64,130 | |||||||||||||||
Ordinary Share [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Ordinary Shares repurchased | 781,011 | 781,011 | |||||||||||||||
Ordinary Shares repurchased, Value | ¥ 15,327 | $ 2,196 | ¥ 10,730 | $ 1,541 | |||||||||||||
Class A Ordinary Shares [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||||||||||||
Share capital, par value | $ / shares | $ 0.001 | $ 0.001 | |||||||||||||||
Ordinary shares, issued | 158,861 | 29,926,647 | 29,580,351 | 29,926,647 | 29,580,351 | ||||||||||||
Ordinary shares, outstanding | 158,861 | 29,926,647 | 29,580,351 | 29,926,647 | 29,580,351 | ||||||||||||
Ordinary Shares repurchased, Value | $ | $ 20,000 | ||||||||||||||||
Class A Ordinary Shares [Member] | Weighted Average [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Share price | $ / shares | $ 3.45 | ||||||||||||||||
Class A Ordinary Shares [Member] | After Closing of Qualified IPO [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Common stock, shares unissued | 177,473,443 | ||||||||||||||||
Ordinary shares, issued | 22,526,257 | ||||||||||||||||
Ordinary shares, outstanding | 22,526,257 | ||||||||||||||||
Vote per share | Vote | 1 | ||||||||||||||||
Class A Ordinary Shares [Member] | Ordinary Share [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Ordinary Shares repurchased | (189,811) | (189,811) | (591,200) | (591,200) | |||||||||||||
Ordinary Shares repurchased, Value | ¥ 4,597 | $ 655 | |||||||||||||||
Class B Ordinary Shares [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Common stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | |||||||||||||
Share capital, par value | $ / shares | $ 0.001 | $ 0.001 | |||||||||||||||
Ordinary shares, issued | 19,675,674 | 19,675,674 | 19,675,674 | 19,675,674 | 19,675,674 | ||||||||||||
Ordinary shares, outstanding | 19,675,674 | 19,675,674 | 19,675,674 | 19,675,674 | 19,675,674 | ||||||||||||
Class B Ordinary Shares [Member] | After Closing of Qualified IPO [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Common stock, shares unissued | 5,324,326 | ||||||||||||||||
Ordinary shares, issued | 19,675,674 | ||||||||||||||||
Ordinary shares, outstanding | 19,675,674 | ||||||||||||||||
Vote per share | Vote | 10 | ||||||||||||||||
Common Class A and Class B Ordinary Shares [Member] | Before Closing of Qualified IPO [Member] | |||||||||||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||||||||||
Vote per share | Vote | 1 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - Class A Ordinary Shares [Member] ¥ / shares in Units, ¥ in Thousands | Sep. 08, 2020shares | Jun. 13, 2017shares | Jul. 14, 2015shares | May 26, 2014shares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020CNY (¥)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2017 | Jun. 14, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of years,commencing from adoption | 8 years 8 months 26 days | 8 years 4 months 20 days | 8 years 2 months 8 days | 8 years 2 months 1 day | ||||||||
Share-based compensation arrangement by share-based payment award, aggregate intrinsic value | (per share) | ¥ 9.92 | $ 1.52 | ¥ 34.37 | $ 4.86 | ¥ 52.02 | $ 7.58 | ||||||
Increase in ordinary shares | 4,860,412 | |||||||||||
Stock issued during period value, percentage on shares issued and outstanding | 2.00% | |||||||||||
The 2014 Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, capital shares reserved for future issuance | 5,519,737 | 957,405 | 2,627,250 | 5,456,192 | ||||||||
Number of years,commencing from adoption | 10 years | |||||||||||
Common stock, additional capital shares reserved for future issuance | 3,584,655 | |||||||||||
Share based compensation arrangement by share based payment award options repurchased and canceled vested, shares | 63,545 | 44,000 | ||||||||||
Share-based compensation expenses | ¥ | ¥ 29,027 | ¥ 26,683 | ¥ 45,473 | |||||||||
Vesting period | 4 years | |||||||||||
Fair value of shares , vested | ¥ | ¥ 35,652 | ¥ 48,978 | ¥ 14,930 | |||||||||
Unrecognized compensation expense | ¥ | ¥ 59,315 | $ 59,315 | ||||||||||
Unvested shares option weighted average vesting period | 2 years 29 days | |||||||||||
Valuation model | The binomial option pricing model | |||||||||||
2018 Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, capital shares reserved for future issuance | 2,947,282 | 2,947,282 | ||||||||||
Plan term | 10 years | |||||||||||
2019 Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 5.00% | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 1.50% | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 5.00% |
Share - Based Compensation - Su
Share - Based Compensation - Summary of Employee Option Activity Under the Company's 2014 Plan (Detail) - Class A Ordinary Shares [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of options | ||||
Number of options,Balance | 2,638,721 | 4,980,394 | 3,245,554 | |
Number of options,Granted | 2,983,730 | 490,759 | 2,388,750 | |
Exercise of option, Exercised | (536,107) | (1,894,994) | ||
Number of options, Forfeited | (1,920,717) | (937,438) | (653,910) | |
Number of options,Balance | 3,165,627 | 2,638,721 | 4,980,394 | 3,245,554 |
Number of Options, Vested and expected to vest | 2,335,330 | |||
Number of Options, Exercisable | 665,065 | |||
Weighted Average Exercise Price | ||||
Weighted Average Exercise Price, Balance | $ 0.5288 | $ 0.3806 | $ 0.2093 | |
Weighted Average Exercise Price, Granted | 0.6633 | 0.6000 | 0.6000 | |
Weighted Average Exercise Price, Exercised | 0.5246 | 0.1484 | ||
Weighted Average Exercise Price, Forfeited | 0.4849 | 0.5477 | 0.3318 | |
Weighted Average Exercise Price, Balance | 0.6829 | $ 0.5288 | $ 0.3806 | $ 0.2093 |
Weighted Average Exercise Price, Vested and expected to vest | 0.7453 | |||
Weighted Average Exercise Price, Exercisable | $ 0.4761 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Aggregate Intrinsic Value, Outstanding | $ 3,070 | $ 11,429 | $ 35,875 | $ 25,272 |
Weighted Average Remaining Contractual Life, Outstanding | 8 years 8 months 26 days | 8 years 4 months 20 days | 8 years 2 months 8 days | 8 years 2 months 1 day |
Weighted Average Remaining Contractual Life, Vested and expected to vest | 8 years 7 months 20 days | |||
Weighted Average Remaining Contractual Life, Exercisable | 7 years 3 months 10 days | |||
Aggregate Intrinsic Value, vested and expected to vest | $ 2,208 | |||
Aggregate Intrinsic Value, Exercisable | $ 694 | |||
Weighted Average Grant Date Fair Value | ||||
Weighted Average Grant Date Fair Value, Outstanding | $ 8.76 | $ 7.13 | $ 3.61 | |
Weighted Average Grant Date Fair Value, Granted | 2.38 | 7.27 | 11.74 | |
Weighted Average Grant Date Fair Value, Outstanding | 4.95 | 8.76 | $ 7.13 | $ 3.61 |
Weighted Average Grant Date Fair Value,Vested and expected | $ 5.09 | |||
Weighted Average Grant Date Fair Value, Exercisable Fair Value | $ 8.97 |
Share- Based Compensation - Fai
Share- Based Compensation - Fair Value of Share Option Granted (Detail) | 12 Months Ended | |||
Dec. 31, 2020Multiple$ / shares | Dec. 31, 2019Multiple$ / shares | Dec. 31, 2018Multiple$ / shares | ||
Expected volatility, minimum | [1] | 46.80% | 45.82% | 48.13% |
Expected volatility, maximum | [1] | 53.05% | 47.20% | 49.11% |
Risk-free interest rate, minimum | [2] | 0.78% | 1.75% | 2.85% |
Risk-free interest rate, maximum | [2] | 0.99% | 2.82% | 3.14% |
Exercise multiple | Multiple | 2.8 | 2.8 | ||
Expected dividend yield | [3] | 0.00% | 0.00% | 0.00% |
Contractual term | 10 years | 10 years | 10 years | |
Expected forfeiture rate (post-vesting) | 5.00% | 5.00% | 5.00% | |
Exercise price | $ 0.60 | $ 0.60 | $ 0.60 | |
Minimum [Member] | ||||
Exercise multiple | Multiple | 2.2 | |||
Exercise price | $ 0.01 | |||
Fair value of the common share on the date of option grant (US$) | [4] | $ 1.26 | 2.90 | 8.25 |
Maximum [Member] | ||||
Exercise multiple | Multiple | 2.8 | |||
Exercise price | $ 3.24 | |||
Fair value of the common share on the date of option grant (US$) | [4] | $ 4.11 | $ 11.94 | $ 13.39 |
[1] | Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. | |||
[2] | The risk-free interest rate of periods within the contractual life of the share option is based on the market yield of the US Treasury Strip Bond with a maturity life equal to the expected life to expiration. | |||
[3] | The Company has no history or expectation of paying dividends on its ordinary shares. | |||
[4] | Before the IPO, the estimated fair value of the Company’s ordinary shares at their respective grant dates, was determined with the assistance of an independent third party valuation firm by using income approach. |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | ¥ 972,628 | ¥ 1,023,213 | ¥ 637,264 | |
Less: tax surcharges | 0 | (40) | ||
Net revenues | 972,628 | $ 149,062 | 1,023,213 | 637,224 |
Prepaid Standard Courses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 924,695 | 997,794 | 596,702 | |
Prepaid Multiple Course Packages [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 44,876 | 13,139 | 27,904 | |
Other Courses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | ¥ 3,057 | ¥ 12,280 | ¥ 12,658 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Employee benefits, mandatory contributions to defined contribution retirement plans for full time employees | ¥ 80,285 | ¥ 122,064 | ¥ 79,651 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - CNY (¥) | Dec. 22, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Valuation Allowance | ¥ 304,161,000 | ¥ 206,471,000 | ¥ 90,979,000 | ¥ 49,183,000 | |
Uncertain tax position recognized | 0 | 0 | 41,100,000 | ||
Operating expenses for uncertain tax position | 324,701,000 | ||||
Tax cuts and jobs act, description | (1) reducing the U.S. federal corporate tax rate from 35% to 21%; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (6) creating the base erosion anti-abuse tax (“BEAT”), a new minimum tax; (7) creating a new limitation on deductible interest expense; and (8) changing rules related to uses and limitations of net operating loss carry-forwards created in tax years beginning after December 31, 2017. | ||||
Effective income tax rate reconciliation, tax cuts and jobs act percentage | 21 | ||||
Net operating losses carry forward | ¥ 163,998,000 | 103,246,000 | |||
PRC [Member] | Other Subsidiaries And VIE [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Enterprise income tax rate | 25.00% | ||||
Hong Kong [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Tax loss carryforwards | ¥ 16,508,000 | ||||
Franchise tax rate [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Corporate income tax rate, percent | 8.84% | ||||
Lingochamp US Inc [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Tax loss carryforwards | ¥ 3,271,000 | ||||
Effective income tax rate reconciliation, net operating loss deduction percentage | 100.00% | ||||
Net operating losses carry forward | ¥ 256,000 | ||||
Carryforwards expiration period for net operating losses | 2038 | ||||
Lingochamp US Inc [Member] | CARES Act [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Net operating losses carry forward | ¥ 3,015,000 | ¥ 3,015,000 | ¥ 3,015,000 | ||
Maximum [Member] | Lingochamp US Inc [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Effective income tax rate reconciliation deductions percentage | 80.00% | ||||
Tax Year 2017 [Member] | Lingochamp US Inc [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Effective income tax rate reconciliation, net operating loss deduction percentage | 80.00% | ||||
Cayman Islands Tax Information Authority [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Withholding tax on payment of dividends | ¥ 0 | ||||
Inland Revenue, Hong Kong [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Corporate income tax rate, percent | 16.50% | 16.50% | 16.50% | ||
Internal Revenue Service (IRS) [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Corporate income tax rate, percent | 21.00% | ||||
State Administration of Taxation, China [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Corporate income tax rate, percent | 35.00% | 25.00% | 25.00% | 25.00% | |
Withholding income tax on dividends | 10.00% | ||||
Tax exemptions, description | According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% if the immediate holding company in Hong Kong owns directly at least 25% of the shares of the FIE and could be recognized as a Beneficial Owner of the dividend from PRC tax perspective. | ||||
Tax loss carryforwards | ¥ 925,744,000 | ||||
Carryforwards period for net operating losses | 5 years | ||||
State Administration of Taxation, China [Member] | Latest Tax Year [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Carryforwards for net operating losses begin to expire | Dec. 31, 2024 | ||||
State Administration of Taxation, China [Member] | Yuguan WFOE [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Validity period of HNTE certificate | 3 years | ||||
Preferential tax rate | 15.00% | ||||
State Administration of Taxation, China [Member] | Yuguan WFOE [Member] | Earliest Tax Year [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Preferential tax rate, period | 2017 | ||||
State Administration of Taxation, China [Member] | Yuguan WFOE [Member] | Latest Tax Year [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Preferential tax rate, period | 2022 | ||||
State Administration of Taxation, China [Member] | Liulishuo VIE [Member] | Variable Interest Entities [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Validity period of HNTE certificate | 3 years | ||||
Preferential tax rate | 15.00% | ||||
State Administration of Taxation, China [Member] | Liulishuo VIE [Member] | Variable Interest Entities [Member] | Earliest Tax Year [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Preferential tax rate, period | 2017 | ||||
State Administration of Taxation, China [Member] | Liulishuo VIE [Member] | Variable Interest Entities [Member] | Latest Tax Year [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Preferential tax rate, period | 2022 | ||||
State Administration of Taxation, China [Member] | For Amount of RMB 740,168 If Not Utilized [Member] | Earliest Tax Year [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Carryforwards for net operating losses begin to expire | Jan. 1, 2020 | ||||
State Administration of Taxation, China [Member] | Remaining Operating Loss Carryforwards [Member] | Earliest Tax Year [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Carryforwards for net operating losses begin to expire | Jan. 1, 2021 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation Between the Effective Income Tax Rate and the PRC Statutory Income Tax Rate (Detail) - State Administration of Taxation, China [Member] | Dec. 22, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
PRC Statutory income tax rates | 35.00% | 25.00% | 25.00% | 25.00% |
Change in valuation allowance | (24.90%) | (20.20%) | (9.00%) | |
Super deduction of research and development expenses | 6.10% | 3.90% | ||
Non-deductible expenses | (0.20%) | (0.60%) | (0.30%) | |
Estimates for uncertain tax positions | (10.50%) | |||
Difference in EIT rates of certain overseas entities | (2.00%) | (1.00%) | (2.80%) | |
Tax filing difference | 0.10% | 0.70% | ||
Effect of tax holiday (Note) | (4.60%) | (8.10%) | (7.60%) | |
Total | (0.50%) | (0.30%) | (5.20%) |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effect of Preferential Tax on China Operations (Detail) - State Administration of Taxation, China [Member] - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Holiday [Line Items] | |||
Tax holiday effect | ¥ 0 | ¥ 8,317 | ¥ 27,400 |
Basic and diluted net loss per share effect | ¥ 0 | ¥ 0.17 | ¥ 1.02 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss from Domestic and Foreign Components Before Income Tax Expenses (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Domestic | ¥ 383,730 | ¥ 560,503 | ¥ 400,791 | |
Foreign | 9,195 | 12,378 | 63,115 | |
Loss before income tax expenses | ¥ 392,925 | $ 60,217 | ¥ 572,881 | ¥ 463,906 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Portions of Income Tax Expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | ¥ 113 | ¥ 296 | ¥ 41,100 | |
Deferred income tax (benefit)/expense | 1,789 | 1,604 | (16,940) | |
Income tax expense | ¥ 1,902 | $ 291 | ¥ 1,900 | ¥ 24,160 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||||
Deductible temporary difference related to advertising expenses | ¥ 128,756 | ¥ 91,710 | ||
Deductible temporary difference related to accruals and other payables | 24,954 | 26,851 | ||
Tax losses carried forward | 163,998 | 103,246 | ||
Total deferred tax assets | 317,708 | 221,807 | ||
Less:valuation allowance | (304,161) | (206,471) | ¥ (90,979) | ¥ (49,183) |
Total deferred tax assets | ¥ 13,547 | ¥ 15,336 |
Income Taxes - Summary of Movem
Income Taxes - Summary of Movement of Valuation Allowance (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | ¥ 206,471 | ¥ 90,979 | ¥ 49,183 |
Additions | 103,399 | 137,122 | 41,796 |
Reversals | (5,709) | (21,630) | |
Ending balance | ¥ 304,161 | ¥ 206,471 | ¥ 90,979 |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | ¥ 41,100 | ¥ 41,100 | ¥ 0 |
Increases related to tax positions taken during the current year | 0 | 0 | 41,100 |
Total | ¥ 41,100 | ¥ 41,100 | ¥ 41,100 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)shares | ||
Numerator: | ||||||
Net loss | ¥ (394,827) | $ (60,508) | ¥ (574,781) | ¥ (488,066) | ||
Accretion on Series A convertible redeemable preferred shares redemption value | 28,017 | $ 4,075 | ||||
Net loss attributable to ordinary shareholders-Basic and diluted | ¥ (394,827) | $ (60,508) | ¥ (574,781) | ¥ (516,083) | ||
Denominator: | ||||||
Denominator for basic and diluted loss per share Weighted-average ordinary shares outstanding, Basic and diluted | shares | [1] | 49,430,696 | 49,430,696 | 49,364,429 | 26,921,735 | 26,921,735 |
Basic and diluted loss per share | (per share) | ¥ (7.99) | $ (1.22) | ¥ (11.64) | ¥ (19.17) | ||
Series A Shares [Member] | ||||||
Numerator: | ||||||
Accretion on Series A convertible redeemable preferred shares redemption value | ¥ 0 | ¥ (1,978) | ||||
Series B Shares [Member] | ||||||
Numerator: | ||||||
Accretion on Series A convertible redeemable preferred shares redemption value | 0 | (10,140) | ||||
Series C Shares [Member] | ||||||
Numerator: | ||||||
Accretion on Series A convertible redeemable preferred shares redemption value | ¥ 0 | ¥ (15,899) | ||||
[1] | Considering that the holder of Preferred Shares has no contractual obligation to participate in the Company’s losses, any losses from the Group should not be allocated to the Preferred Shares. |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Share - Schedule of Basic and Diluted loss Per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Preferred Shares [Member] | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Anti-dilutive effect | 0 | 16,729,811 | |
Employee Stock Option [Member] | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Anti-dilutive effect | 372,273 | 1,051,152 | 2,263,775 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Subsequent Event [Line Items] | |||
Operating lease, right of use asset | ¥ 82,488 | $ 12,642 | ¥ 155,525 |
Operating lease, liability | 88,748 | ||
Early Termination Lease Agreements [Member] | |||
Subsequent Event [Line Items] | |||
Operating lease, right of use asset | 17,694 | ||
Operating lease, liability | ¥ 18,331 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Net Assets [Abstract] | |
Minimum required percentage of annual after-tax profit, general reserve | 10.00% |
Required reserve, percentage of respective registered capital | 50.00% |
Percent of restricted assets threshold limit | 25.00% |
Condensed Financial Information
Condensed Financial Information of Parent Company - Balance Sheets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 137,996 | $ 21,149 | ¥ 281,166 | |||
Prepayments and other current assets | 58,272 | 8,931 | 86,787 | |||
Short-term investment | 91,049 | 13,954 | 269,643 | |||
Total current assets | 293,720 | 45,015 | 646,772 | |||
Non-current assets: | ||||||
Investment in equity fund | 5,711 | 875 | 5,919 | |||
Total non-current assets | 152,027 | 23,299 | 272,405 | |||
Total assets | 445,747 | 68,314 | 919,177 | |||
Current liabilities: | ||||||
Accrued expenses and other current liabilities | 19,382 | 2,970 | 15,444 | |||
Total current liabilities | 1,033,888 | 158,450 | 1,114,417 | |||
Non-currentliabilities: | ||||||
Other non-current liabilities | 10,614 | 1,627 | 12,441 | |||
Total liabilities | 1,158,310 | 177,519 | 1,243,982 | |||
Total non-current liabilities | 124,422 | 19,069 | 129,565 | |||
Shareholders' equity (deficit) | ||||||
Subscriptions receivable from founding shareholders | 201 | 31 | 122 | $ 17 | ||
Treasury stock (US$0.001 par value; 591,200 and 781,011 shares as of December 31, 2019 and December 31, 2020, respectively) | (15,327) | (2,349) | (10,730) | |||
Additional paid-incapital | 1,198,852 | 183,732 | 1,167,884 | |||
Accumulated other comprehensive income | 10,256 | 1,572 | 29,483 | |||
Accumulated deficit | (1,906,476) | (292,180) | (1,511,649) | |||
Total shareholders' deficit | (712,563) | (109,205) | (324,805) | ¥ 218,894 | ¥ (447,987) | |
Total liabilities and shareholders' deficit | 445,747 | 68,314 | 919,177 | |||
Parent Company [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 2,888 | 443 | 2,028 | |||
Amounts due from subsidiaries and VIEs | 866,102 | 132,736 | 892,324 | |||
Prepayments and other current assets | 5,434 | 833 | 12,851 | |||
Short-term investment | 64,910 | 9,948 | 139,524 | |||
Total current assets | 939,334 | 143,960 | 1,046,727 | |||
Non-current assets: | ||||||
Investment in equity fund | 5,711 | 875 | 5,919 | |||
Total non-current assets | 5,711 | 875 | 5,919 | |||
Total assets | 945,045 | 144,835 | 1,052,646 | |||
Current liabilities: | ||||||
Amounts due to inter-company entities | 3,415 | 523 | 3,209 | |||
Accrued expenses and other current liabilities | 1,543 | 236 | 1,618 | |||
Total current liabilities | 4,958 | 759 | 4,827 | |||
Non-currentliabilities: | ||||||
Investment payables to subsidiaries and VIEs | 1,651,038 | 253,034 | 1,369,890 | |||
Other non-current liabilities | 1,612 | 247 | 2,734 | |||
Total liabilities | 1,657,608 | 254,040 | 1,377,451 | |||
Total non-current liabilities | 1,652,650 | 253,281 | 1,372,624 | |||
Shareholders' equity (deficit) | ||||||
Subscriptions receivable from founding shareholders | (201) | (31) | (122) | |||
Treasury stock (US$0.001 par value; 591,200 and 781,011 shares as of December 31, 2019 and December 31, 2020, respectively) | (15,327) | (2,349) | (10,730) | |||
Additional paid-incapital | 1,198,852 | 183,732 | 1,167,884 | |||
Accumulated other comprehensive income | 10,256 | 1,572 | 29,483 | |||
Accumulated deficit | (1,906,476) | (292,180) | (1,511,649) | |||
Total shareholders' deficit | (712,563) | (109,205) | (324,805) | |||
Total liabilities and shareholders' deficit | 945,045 | 144,835 | 1,052,646 | |||
Class A Ordinary Shares [Member] | ||||||
Shareholders' equity (deficit) | ||||||
Ordinary shares | 212 | 32 | 208 | |||
Class A Ordinary Shares [Member] | Parent Company [Member] | ||||||
Shareholders' equity (deficit) | ||||||
Ordinary shares | 212 | 32 | 208 | |||
Class B Ordinary Shares [Member] | ||||||
Shareholders' equity (deficit) | ||||||
Ordinary shares | 121 | 19 | 121 | |||
Class B Ordinary Shares [Member] | Parent Company [Member] | ||||||
Shareholders' equity (deficit) | ||||||
Ordinary shares | ¥ 121 | $ 19 | ¥ 121 |
Condensed Financial Informati_2
Condensed Financial Information of Parent Company - Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 01, 2018 | Aug. 30, 2018 | Aug. 29, 2018 | Jun. 06, 2014 | Jun. 05, 2014 | Aug. 19, 2013 |
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||||
Ordinary shares, par value | $ 0.001 | |||||||
Ordinary shares, authorized | 250,000,000 | 100,000,000 | 100,000,000 | 50,000,000 | 50,000,000 | |||
Treasury shares, par value | $ 0.001 | $ 0.001 | ||||||
Treasury stock | 781,011 | 591,200 | ||||||
Class A Ordinary Shares [Member] | ||||||||
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||||
Ordinary shares, par value | $ 0.001 | $ 0.001 | ||||||
Ordinary shares, authorized | 200,000,000 | 200,000,000 | ||||||
Ordinary shares, issued | 29,926,647 | 29,580,351 | 158,861 | |||||
Ordinary shares, outstanding | 29,926,647 | 29,580,351 | 158,861 | |||||
Class B Ordinary Shares [Member] | ||||||||
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||||
Ordinary shares, par value | $ 0.001 | $ 0.001 | ||||||
Ordinary shares, authorized | 25,000,000 | 25,000,000 | ||||||
Ordinary shares, issued | 19,675,674 | 19,675,674 | 19,675,674 | |||||
Ordinary shares, outstanding | 19,675,674 | 19,675,674 | 19,675,674 | |||||
Parent Company [Member] | ||||||||
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||||
Treasury shares, par value | $ 0.001 | $ 0.001 | ||||||
Treasury stock | 781,011 | 591,200 | ||||||
Parent Company [Member] | Class A Ordinary Shares [Member] | ||||||||
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||||
Ordinary shares, par value | $ 0.001 | $ 0.001 | ||||||
Ordinary shares, authorized | 200,000,000 | 200,000,000 | ||||||
Ordinary shares, issued | 29,926,647 | 29,580,351 | ||||||
Ordinary shares, outstanding | 29,926,647 | 29,580,351 | ||||||
Parent Company [Member] | Class B Ordinary Shares [Member] | ||||||||
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||||
Ordinary shares, par value | $ 0.001 | $ 0.001 | ||||||
Ordinary shares, authorized | 25,000,000 | 25,000,000 | ||||||
Ordinary shares, issued | 19,675,674 | 19,675,674 | ||||||
Ordinary shares, outstanding | 19,675,674 | 19,675,674 |
Condensed Financial Informati_3
Condensed Financial Information of Parent Company - Statements of Comprehensive Income (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | |
Operating expenses: | |||||
General and administrative expenses | ¥ (111,004) | $ (17,012) | ¥ (153,507) | ¥ (65,423) | |
Total operating expenses | (1,103,077) | (169,054) | (1,336,774) | (925,991) | |
Loss from operations | (407,646) | (62,474) | (584,686) | (463,498) | |
Loss before income tax expenses | (392,925) | (60,217) | (572,881) | (463,906) | |
Provision for income taxes | (1,902) | (291) | (1,900) | (24,160) | |
Net loss | (394,827) | (60,508) | (574,781) | (488,066) | |
Accretion of convertible redeemable preferred shares | (28,017) | $ (4,075) | |||
Net loss attributable to ordinary shareholders | (394,827) | (60,508) | (574,781) | (516,083) | |
Net loss | (394,827) | (60,508) | (574,781) | (488,066) | |
Other comprehensive income/(loss) —Foreign currency translation adjustment, net of nil tax | (19,227) | (2,947) | 13,165 | 16,403 | |
Comprehensive loss | (414,054) | (63,455) | (561,616) | (471,663) | |
Series A Preferred Share [Member] | |||||
Operating expenses: | |||||
Accretion of convertible redeemable preferred shares | (1,978) | ||||
Series B Preferred Share [Member] | |||||
Operating expenses: | |||||
Accretion of convertible redeemable preferred shares | (10,140) | ||||
Series C Preferred Share [Member] | |||||
Operating expenses: | |||||
Accretion of convertible redeemable preferred shares | (15,899) | ||||
Parent Company [Member] | |||||
Operating expenses: | |||||
General and administrative expenses | (12,549) | (1,922) | (11,787) | (5,807) | |
Total operating expenses | (12,549) | (1,922) | (11,787) | (5,807) | |
Loss from operations | (12,549) | (1,922) | (11,787) | (5,807) | |
Interest income | 2,797 | 429 | 6,280 | ||
Investment income | 0 | 87 | 48 | ||
Other loss, net | 0 | (46) | (1) | ||
Loss from subsidiaries and VIEs | (385,075) | (59,015) | (569,315) | (482,306) | |
Loss before income tax expenses | (394,827) | (60,508) | (574,781) | (488,066) | |
Provision for income taxes | 0 | 0 | 0 | 0 | |
Net loss | (394,827) | (60,508) | (574,781) | (488,066) | |
Net loss attributable to ordinary shareholders | (394,827) | (60,508) | (574,781) | (516,083) | |
Net loss | (394,827) | (60,508) | (574,781) | (488,066) | |
Other comprehensive income/(loss) —Foreign currency translation adjustment, net of nil tax | (19,227) | (2,947) | 13,165 | 16,403 | |
Comprehensive loss | (414,054) | $ (63,455) | ¥ (561,616) | (471,663) | |
Parent Company [Member] | Series A Preferred Share [Member] | |||||
Operating expenses: | |||||
Accretion of convertible redeemable preferred shares | 0 | (1,978) | |||
Parent Company [Member] | Series B Preferred Share [Member] | |||||
Operating expenses: | |||||
Accretion of convertible redeemable preferred shares | 0 | (10,140) | |||
Parent Company [Member] | Series C Preferred Share [Member] | |||||
Operating expenses: | |||||
Accretion of convertible redeemable preferred shares | ¥ 0 | ¥ (15,899) |
Condensed Financial Informati_4
Condensed Financial Information of Parent Company - Statements of Cash Flows (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Cash flows used in operating activities | ¥ (302,598) | $ (46,375) | ¥ (148,164) | ¥ (112,942) |
Cash flows (used in)/provided by investing activities | 164,667 | 25,236 | 100,246 | (417,716) |
Cash flows provided by/(used in) financing activities | 4,285 | 657 | (16,344) | 443,978 |
Effect of exchange rate changes on cash | (10,829) | (1,660) | 2,522 | 14,919 |
Cash, cash equivalents and restricted cash at the beginning of year | 282,982 | 43,369 | 344,722 | 416,483 |
Cash, cash equivalents and restricted cash at the end of year | 138,507 | 21,227 | 282,982 | 344,722 |
Parent Company [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Cash flows used in operating activities | (13,448) | (2,061) | (11,422) | (6,722) |
Cash flows (used in)/provided by investing activities | 18,176 | 2,786 | (119,440) | (362,380) |
Cash flows provided by/(used in) financing activities | 4,285 | 657 | (16,344) | 438,923 |
Effect of exchange rate changes on cash | (8,153) | (1,250) | 2,121 | 360 |
Net increase/(decrease) in cash and cash equivalents | 860 | 132 | (145,085) | 70,181 |
Cash, cash equivalents and restricted cash at the beginning of year | 2,028 | 311 | 147,113 | 76,932 |
Cash, cash equivalents and restricted cash at the end of year | ¥ 2,888 | $ 443 | ¥ 2,028 | ¥ 147,113 |