Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38923 |
Entity Registrant Name | Gaotu Techedu Inc. |
Entity Central Index Key | 0001768259 |
Entity Address, Address Line One | 5F, Gientech Building |
Entity Address, Address Line Two | 17 East Zone,10 Xibeiwang East Road |
Entity Address, City or Town | Haidian District |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100193 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Auditor Firm ID | 1113 |
Auditor Name | Deloitte Touche Tohmatsu Certified Public Accountants LLP |
Auditor Location | Beijing, the People’s Republic of China |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | 5F, Gientech Building |
Entity Address, Address Line Two | 17 East Zone,10 Xibeiwang East Road |
Entity Address, City or Town | Haidian District |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100193 |
Local Phone Number | 8282-6826 |
Contact Personnel Name | Nan Shen |
Contact Personnel Email Address | shennan@gaotu.cn |
City Area Code | 86 10 |
Common Class A [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A ordinary shares,par value US$0.0001 per share |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 98,032,240 |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 73,305,288 |
American Depositary Shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, every threerepresenting two Class A ordinary shares, par value US$0.0001 per share |
Trading Symbol | GOTU |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 728,934 | $ 114,386 | ¥ 355,224 |
Restricted Cash | 168,189 | 26,393 | 0 |
Short-term investments (including available-for-sale debt securities of RMB6,727,493 and RMB2,199,372 as of December 31, 2020 and 2021, respectively) | 2,774,000 | 435,301 | 7,331,268 |
Inventory | 15,595 | 2,447 | 48,074 |
Prepaid expenses and other current assets | 250,068 | 39,241 | 722,682 |
Total current assets | 3,936,786 | 617,768 | 8,457,248 |
Non-current assets | |||
Operating lease right-of-use assets | 353,877 | 55,531 | 806,591 |
Property, equipment and software, net | 680,009 | 106,708 | 704,338 |
Intangible assets, net | 77 | 12 | 13,219 |
Land use rights | 28,178 | 4,422 | 28,983 |
Long-term investments (including available-for-sale debt securities of RMB525,373 and nil as of December 31, 2020 and 2021, respectively | 0 | 0 | 530,729 |
Goodwill | 331 | 52 | 43,631 |
Deferred tax assets | 0 | 0 | 48,324 |
Rental deposit | 22,544 | 3,538 | 51,499 |
Other non-current assets | 2,864 | 450 | 1,230 |
TOTAL ASSETS | 5,024,666 | 788,481 | 10,685,792 |
Current liabilities | |||
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIE without recourse to the Group of RMB623,002 and RMB417,032 as of December 31, 2020 and 2021, respectively) | 693,265 | 108,789 | 1,315,502 |
Deferred revenue, current portion of the consolidated VIE without recourse to the Group | 986,993 | 154,881 | 2,724,614 |
Operating lease liabilities, current portion (including current portion of operating lease liabilities of the consolidated VIE without recourse to the Group of RMB125,986 and RMB41,479 as of December 31, 2020 and 2021, respectively) | 80,010 | 12,555 | 152,622 |
Income tax payable of the consolidated VIE without recourse to the Group | 0 | 0 | 4,654 |
Total current liabilities | 1,760,268 | 276,225 | 4,197,392 |
Non-current liabilities | |||
Deferred revenue, non-current portion of the consolidated VIE without recourse to the Group | 9,225 | 1,448 | 9,125 |
Operating lease liabilities, non-current portion (including non-current portion of operating lease liabilities of the consolidated VIE without recourse to the Group of RMB527,692 and RMB158,824 as of December 31, 2020 and 2021, respectively | 276,035 | 43,316 | 644,143 |
Deferred tax liabilities | 71,616 | 11,238 | 78,697 |
Other payables of the consolidated VIE without recourse to the Group | 26,580 | 4,171 | 26,580 |
TOTAL LIABILITIES | 2,143,724 | 336,398 | 4,955,937 |
SHAREHOLDERS' EQUITY | |||
Treasury stock, at cost | 0 | 0 | (139,572) |
Additional paid-in capital | 7,793,234 | 1,222,928 | 7,595,049 |
Accumulated other comprehensive income (loss) | (143,111) | (22,457) | (59,905) |
Statutory reserves | 40,380 | 6,337 | 40,380 |
Accumulated deficit | (4,809,675) | (754,743) | (1,706,210) |
TOTAL SHAREHOLDERS' EQUITY | 2,880,942 | 452,083 | 5,729,855 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,024,666 | 788,481 | 10,685,792 |
Common Class A [Member] | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares | 66 | 10 | 65 |
Common Class B [Member] | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares | ¥ 48 | $ 8 | ¥ 48 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020$ / shares | Jun. 06, 2019shares | |
Short-term investments, available-for-sale debt securities current | ¥ | ¥ 2,199,372 | ¥ 6,727,493 | ||||
Long-term investments, available-for-sale debt securities noncurrent | ¥ | [1] | 0 | 525,373 | |||
Accrued expenses and other current liabilities | 693,265 | $ 108,789 | 1,315,502 | |||
Operating lease liabilities, current portion | 80,010 | 12,555 | 152,622 | |||
Operating lease liabilities, non-current portion | 276,035 | $ 43,316 | 644,143 | |||
Ordinary shares, shares outstanding | 157,138,000 | |||||
Variable interest entity, primary beneficiary [Member] | ||||||
Accrued expenses and other current liabilities | ¥ | 417,032 | 623,002 | ||||
Operating lease liabilities, current portion | ¥ | 41,479 | 125,986 | ||||
Operating lease liabilities, non-current portion | ¥ | ¥ 158,824 | ¥ 527,692 | ||||
Common Class A [Member] | ||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Ordinary shares, shares authorized | 800,000,000 | 800,000,000 | 800,000,000 | |||
Ordinary shares, shares issued | 99,277,116 | 99,277,116 | 96,821,132 | |||
Ordinary shares, shares outstanding | 98,032,240 | 98,032,240 | 96,455,774 | 83,832,712 | ||
Common Class B [Member] | ||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||
Ordinary shares, shares issued | 73,305,288 | 73,305,288 | 73,305,288 | |||
Ordinary shares, shares outstanding | 73,305,288 | 73,305,288 | 73,305,288 | 73,305,288 | ||
[1] | The Group did not hold any long-term available-for-sale debt investments as of December 31, 2021. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Net revenues | ¥ 6,561,747 | $ 1,029,681 | ¥ 7,124,744 | ¥ 2,114,855 |
Cost of revenues (including share-based compensation expenses of RMB16,504, RMB66,422 and RMB118,145 for the years ended December 31, 2019, 2020 and 2021, respectively) | (2,397,604) | (376,236) | (1,762,548) | (535,912) |
Gross profit | 4,164,143 | 653,445 | 5,362,196 | 1,578,943 |
Operating expenses: | ||||
Selling expenses (including share-based compensation expenses of RMB5,606, RMB18,039 and RMB44,402 for the years ended December 31, 2019, 2020 and 2021, respectively) | (5,129,267) | (804,894) | (5,816,214) | (1,040,906) |
Research and development expenses (including share-based compensation expenses of RMB16,357, RMB94,952 and RMB130,620 for the years ended December 31, 2019, 2020 and 2021, respectively) | (1,252,877) | (196,604) | (734,450) | (212,197) |
General and administrative expenses (including share-based compensation expenses of RMB21,770, RMB59,033 and RMB52,092 for the years ended December 31, 2019, 2020 and 2021, respectively) | (720,253) | (113,023) | (566,565) | (110,106) |
Impairment loss on long-lived assets | (52,544) | (8,245) | 0 | 0 |
Impairment loss on goodwill | (43,300) | (6,795) | 0 | 0 |
Disposal loss on assets | (146,245) | (22,949) | 0 | 0 |
Total operating expenses | (7,344,486) | (1,152,510) | (7,117,229) | (1,363,209) |
Income (loss) from operations | (3,180,343) | (499,065) | (1,755,033) | 215,734 |
Interest income | 31,460 | 4,937 | 3,372 | 8,861 |
Realized gains from investments | 65,763 | 10,320 | 70,403 | 11,395 |
Other income | 49,469 | 7,763 | 269,657 | 6,462 |
Other expenses | (28,563) | (4,482) | (16,011) | (213) |
Income (loss) before provision for income tax and share of results of equity investees | (3,062,214) | (480,527) | (1,427,612) | 242,239 |
Income tax (expenses) benefits | (40,949) | (6,426) | 34,619 | (16,957) |
Share of results of equity investees | (302) | (47) | 63 | 1,348 |
Net income (loss) | (3,103,465) | (487,000) | (1,392,930) | 226,630 |
Less: Series A convertible redeemable preferred shares redemption value accretion | 0 | 0 | 0 | 16,772 |
Less: Undistributed earnings allocated to the participating preferred shares | 0 | 0 | 0 | 21,698 |
Net income (loss) attributable to Gaotu Techedu Inc.'s ordinary shareholders | ¥ (3,103,465) | $ (487,000) | ¥ (1,392,930) | ¥ 188,160 |
Net income (loss) per ordinary share | ||||
Basic | (per share) | ¥ (18.17) | $ (2.85) | ¥ (8.72) | ¥ 1.42 |
Diluted | (per share) | ¥ (18.17) | $ (2.85) | ¥ (8.72) | ¥ 1.35 |
Weighted average shares used in net income (loss) per share | ||||
Basic | 170,790,979 | 170,790,979 | 159,725,779 | 132,400,941 |
Diluted | 170,790,979 | 170,790,979 | 159,725,779 | 139,477,898 |
ADS [Member] | ||||
Net income (loss) per ordinary share | ||||
Basic | (per share) | ¥ (12.11) | $ (1.90) | ¥ (5.81) | ¥ 0.95 |
Diluted | (per share) | ¥ (12.11) | $ (1.90) | ¥ (5.81) | ¥ 0.90 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Share-based compensation expenses | ¥ 320,889 | ¥ 238,446 | ¥ 60,237 |
Cost of sales [Member] | |||
Share-based compensation expenses | 118,145 | 66,422 | 16,504 |
Selling expense [Member] | |||
Share-based compensation expenses | 44,402 | 18,039 | 5,606 |
Research and development expense [Member] | |||
Share-based compensation expenses | 130,620 | 94,952 | 16,357 |
General and administrative expense [Member] | |||
Share-based compensation expenses | ¥ 52,092 | ¥ 59,033 | ¥ 21,770 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | ¥ (3,103,465) | $ (487,000) | ¥ (1,392,930) | ¥ 226,630 |
Other comprehensive income (loss), net of tax: | ||||
Change in cumulative foreign currency translation adjustments | (73,936) | (11,602) | (74,562) | 9,219 |
Unrealized gains on available-for-sale investments (net of tax effect of nil, RMB 9,867 and RMB8,598 for the years ended December 31, 2019, 2020 and 2021, respectively) | 48,191 | 7,562 | 67,231 | 18,839 |
Transfer to statements of operations of realized gains on available-for-sale investments (net of tax effect of nil, RMB9,654 and RMB8,302 for the years ended December 31, 2019, 2020 and 2021, respectively) | (57,461) | (9,017) | (70,403) | (11,395) |
Total comprehensive income (loss) attributable to Gaotu Techedu Inc. | ¥ (3,186,671) | $ (500,057) | ¥ (1,470,664) | ¥ 243,293 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Tax Effect Of Unrealized Gain On Available For Sale Investments | ¥ 8,598 | ¥ 9,867 | ¥ 0 |
Tax effect of transfer to statements of operations of realized gains on available-for-sale investments | ¥ 8,302 | ¥ 9,654 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Private Placement [Member]CNY (¥) | Ordinary Shares [Member]CNY (¥)shares | Ordinary Shares [Member]USD ($)shares | Ordinary Shares [Member]Private Placement [Member]CNY (¥)shares | Treasury Stock [Member]CNY (¥) | Additional paid-in capital [Member]CNY (¥) | Additional paid-in capital [Member]USD ($) | Additional paid-in capital [Member]Private Placement [Member]CNY (¥) | AOCI attributable to parent [Member]CNY (¥) | AOCI attributable to parent [Member]USD ($) | Statutory Reserves [Member]CNY (¥) | Statutory Reserves [Member]USD ($) | Accumulated deficit [Member]CNY (¥) | Accumulated deficit [Member]USD ($) |
Beginning balance at Dec. 31, 2018 | ¥ (492,539) | ¥ 60 | ¥ 1,166 | ¥ (493,765) | ||||||||||||
Beginning balance, Shares at Dec. 31, 2018 | shares | 92,224,998 | 92,224,998 | ||||||||||||||
Net income (loss) | 226,630 | 226,630 | ||||||||||||||
Transfer to statutory reserves | ¥ 6,921 | (6,921) | ||||||||||||||
Issuance of ordinary shares | 1,366,860 | ¥ 9 | ¥ 1,366,851 | |||||||||||||
Issuance of ordinary shares, Shares | shares | 13,688,000 | 13,688,000 | ||||||||||||||
Accretion to redemption value of convertible redeemable preferred shares | (16,772) | (11,007) | (5,765) | |||||||||||||
Conversion of convertible redeemable preferred shares | 482,834 | ¥ 25 | 482,809 | |||||||||||||
Conversion of convertible redeemable preferred shares, Shares | shares | 35,625,002 | 35,625,002 | ||||||||||||||
Repurchase of ordinary shares | (86,739) | ¥ (86,739) | ||||||||||||||
Repurchase of ordinary shares, Shares | shares | (418,298) | (418,298) | ||||||||||||||
Share-based compensation | 60,237 | 60,237 | ||||||||||||||
Option exercised | 181 | ¥ 12 | 169 | |||||||||||||
Option exercised, Shares | shares | 17,977,348 | 17,977,348 | ||||||||||||||
Foreign currency translation adjustments | 9,219 | 9,219 | ||||||||||||||
Unrealized gains on available-for-sale investments | 18,839 | 18,839 | ||||||||||||||
Transfer to statements of operations of realized gains on available-for-sale investments | (11,395) | (11,395) | ||||||||||||||
Ending balance at Dec. 31, 2019 | 1,557,355 | ¥ 106 | (86,739) | 1,899,059 | 17,829 | 6,921 | (279,821) | |||||||||
Ending balance, Shares at Dec. 31, 2019 | shares | 159,097,050 | 159,097,050 | ||||||||||||||
Net income (loss) | (1,392,930) | (1,392,930) | ||||||||||||||
Transfer to statutory reserves | 33,459 | (33,459) | ||||||||||||||
Issuance of ordinary shares | ¥ 5,687,251 | ¥ 7 | ¥ 5,687,244 | |||||||||||||
Issuance of ordinary shares, Shares | shares | 10,611,072 | |||||||||||||||
Accretion to redemption value of convertible redeemable preferred shares | 0 | |||||||||||||||
Repurchase of ordinary shares | (282,543) | (282,543) | ||||||||||||||
Repurchase of ordinary shares, Shares | shares | (754,244) | (754,244) | ||||||||||||||
Share-based compensation | 238,446 | 238,446 | ||||||||||||||
Option exercised and restricted stock units vested | 10 | 229,710 | (229,700) | |||||||||||||
Option exercised and restricted stock units vested, Shares | shares | 807,184 | 807,184 | ||||||||||||||
Foreign currency translation adjustments | (74,562) | (74,562) | ||||||||||||||
Unrealized gains on available-for-sale investments | 67,231 | 67,231 | ||||||||||||||
Transfer to statements of operations of realized gains on available-for-sale investments | (70,403) | (70,403) | ||||||||||||||
Ending balance at Dec. 31, 2020 | 5,729,855 | ¥ 113 | (139,572) | 7,595,049 | (59,905) | 40,380 | (1,706,210) | |||||||||
Ending balance, Shares at Dec. 31, 2020 | shares | 169,761,062 | 169,761,062 | ||||||||||||||
Net income (loss) | (3,103,465) | $ (487,000) | (3,103,465) | |||||||||||||
Accretion to redemption value of convertible redeemable preferred shares | 0 | $ 0 | ||||||||||||||
Share-based compensation | ¥ 320,889 | 320,889 | ||||||||||||||
Option exercised, Shares | shares | 751,743 | 751,743 | ||||||||||||||
Option exercised and restricted stock units vested | ¥ 11 | ¥ 1 | 122,714 | (122,704) | ||||||||||||
Option exercised and restricted stock units vested, Shares | shares | 1,576,466 | 1,576,466 | ||||||||||||||
Foreign currency translation adjustments | (57,078) | ¥ 16,858 | (73,936) | |||||||||||||
Unrealized gains on available-for-sale investments | 48,191 | 48,191 | ||||||||||||||
Transfer to statements of operations of realized gains on available-for-sale investments | (57,461) | $ (9,017) | (57,461) | |||||||||||||
Ending balance at Dec. 31, 2021 | ¥ 2,880,942 | $ 452,083 | ¥ 114 | $ 18 | ¥ 7,793,234 | $ 1,222,928 | ¥ (143,111) | $ (22,457) | ¥ 40,380 | $ 6,337 | ¥ (4,809,675) | $ (754,743) | ||||
Ending balance, Shares at Dec. 31, 2021 | shares | 171,337,528 | 171,337,528 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) EQUITY (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Statement of Stockholders' Equity [Abstract] | |
Stock Issuance Costs | ¥ 31,791 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | ¥ (3,103,465) | $ (487,000) | ¥ (1,392,930) | ¥ 226,630 |
Adjustments to reconcile net income (loss) to net cash generated from operating activities: | ||||
Depreciation of property, equipment and software | 108,446 | 17,018 | 55,751 | 11,919 |
Amortization of intangible assets and land use rights | 4,116 | 646 | 1,461 | 137 |
Share of results of equity investees | 302 | 47 | (63) | (1,348) |
Realized gains from investments | (65,763) | (10,320) | (70,403) | (11,395) |
Disposal (gain) loss on assets | 146,245 | 22,949 | 3,145 | (175) |
Share-based compensation | 320,889 | 50,354 | 238,446 | 60,237 |
Provision for inventory | 12,901 | 2,024 | 0 | 0 |
Impairment loss on long-lived assets | 52,544 | 8,245 | 0 | 0 |
Impairment loss on goodwill | 43,300 | 6,795 | 0 | 0 |
Realized gain from derivative financial liabilities | (7,938) | (1,246) | 0 | 0 |
Changes in operating assets and liabilities: | ||||
Accrued expenses and other current liabilities | (942,260) | (147,862) | 1,508,939 | 357,203 |
Deferred revenue | (1,737,521) | (272,655) | 1,384,403 | 1,065,595 |
Prepaid expenses and other current assets | 459,506 | 72,107 | (479,985) | (204,648) |
Income tax payable | (4,654) | (730) | (11,439) | 16,093 |
Amounts due from related parties | 0 | 0 | 0 | 710 |
Other assets | 486,302 | 76,311 | (614,225) | (236,420) |
Deferred tax assets | 48,324 | 7,583 | (17,608) | 550 |
Deferred tax liabilities | (7,081) | (1,111) | (2,219) | (34) |
Net cash generated from (used in) operating activities | (4,185,807) | (656,845) | 603,273 | 1,285,054 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of short-term investments | (46,001,552) | (7,218,647) | (17,394,632) | (8,727,762) |
Proceeds from maturity of short-term investments | 51,063,983 | 8,013,053 | 11,689,198 | 7,393,386 |
Purchase of property, equipment, software and intangible assets | (272,323) | (42,733) | (284,072) | (61,267) |
Payment for asset acquisition | 0 | 0 | (74,309) | 0 |
Purchase of long-term investments | 0 | 0 | 0 | (1,109,180) |
Proceeds from maturity of long-term investments | 0 | 0 | 501,733 | 0 |
Proceeds from disposal of equity method investments | 5,548 | 871 | 0 | 0 |
Proceeds from derivative financial liabilities | 7,938 | 1,246 | 0 | 0 |
Proceeds from capital return related to equity method investment | 0 | 0 | 1,300 | 0 |
Acquisition of businesses | 0 | 0 | (35,529) | 0 |
Disposal of property, equipment and software | 8,908 | 1,398 | 7 | 257 |
Net cash (used in) generated from investing activities | 4,812,502 | 755,188 | (5,596,304) | (2,504,566) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Net proceeds from initial public offering and from exercising the overallotment option by the underwriters (net of issuance cost of RMB31,791) | 0 | 0 | 0 | 1,366,860 |
Capital contribution | 7 | 1 | 36 | 0 |
Proceeds from private placement financing | 0 | 0 | 5,687,251 | 0 |
Repurchase of ordinary shares | 0 | 0 | (282,543) | (86,739) |
Proceeds from short-term loans | 400,000 | 62,769 | 0 | 0 |
Repayments of short-term loans | (400,000) | (62,769) | 0 | 0 |
Payment for asset acquisition after three months of completion | (100,621) | (15,790) | (132,184) | 0 |
Repayment to related parties | 0 | 0 | (460) | (34,056) |
Net cash generated from (used in) financing activities | (100,614) | (15,789) | 5,272,100 | 1,246,065 |
Effect of exchange rate changes | 15,818 | 2,483 | 2,188 | 14,155 |
Net increase (decrease) in cash and cash equivalents | 541,899 | 85,037 | 281,257 | 40,708 |
Cash, cash equivalents and restricted cash at beginning of the year | 355,224 | 55,742 | 73,967 | 33,259 |
Cash, cash equivalents and restricted cash at end of the year | 897,123 | 140,779 | 355,224 | 73,967 |
Supplemental schedule of cash flow information | ||||
Income taxes paid | (84,832) | (13,312) | 86,348 | 348 |
Non-cash investing and financing activity | ||||
Payables for purchase of property, equipment and software | 4,778 | 750 | 36,092 | 15,815 |
Payables for assets acquisition | ¥ 0 | $ 0 | ¥ 127,316 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Statement of Cash Flows [Abstract] | |
Net issuance of stock | ¥ 31,791 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES GSX Techedu Inc. was incorporated under the laws of the Cayman Islands in August 2014 and the name changed to Gaotu Techedu Inc. in June 2021. The Company, its subsidiaries, its consolidated variable interest entity (“VIE”) and VIE’s subsidiaries (collectively the “Group”) are currently engaged in the business of providing professional education, vocational education and selling digital products in the People’s Republic of China (“PRC”). Beijing BaiJiaHuLian Technology Co., Ltd was founded in June 2014, as a limited liability company in the PRC, and the name changed to Beijing BaiJia Technology Co., Ltd in September 2020 and then changed to Gaotu Education Technology Group Co., Ltd (“Beijing Gaotu” or “VIE”) in July 2021. Beijing Gaotu and its subsidiaries ("VIEs") are primarily engaged in providing professional education, vocational education and selling digital products in the PRC. 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 VIE. On April 28, 2015, the Company, through BaiJiaHuLian HK Holdings Limited (“BaiJiaHuLian HK”) and its PRC subsidiary, Beijing Lexuebang Network Technology Co., Ltd. (“Beijing Lexuebang”), entered into a series of contractual arrangements with Beijing Gaotu, and the shareholders of Beijing Gaotu. The series of contractual agreements include an Exclusive Management Services and Business Cooperation Agreement, an Exclusive Call Option Agreement, an Equity Pledge Agreement, Powers of Attorney, Spousal Consent Letters and Letters of Commitment (“Original Agreement”). The Original Agreements were amended on March 2019 with no significant differences. In connection with the amendment and as part of the Group’s efforts to streamline the corporate structure, the Group removed six existing nominee shareholders as parties to the contractual arrangements with Beijing Gaotu and its shareholders. The rights and obligations of these nominee shareholders under these contractual arrangements have been assumed by Mr. Larry Xiangdong Chen. On January 26, 2021, Beijing Lexuebang, Wuhan Yuexuebang Network Technology Co., Ltd ("Wuhan Yuexuebang") and Beijing Yuexuebang Network Technology Co., Ltd ("Beijing Yuexuebang") (collectively the "WFOEs"), entered into a VIE supplementary agreement (“Supplementary Agreement”) with Beijing Gaotu, and the shareholders of Beijing Gaotu. According to the Supplementary Agreement, each of Wuhan Yuexuebang and Beijing Yuexuebang became a party to the Original Agreement, enjoyed the same rights of Beijing Lexuebang under the Original Agreement and jointly assume the obligations of Beijing Lexuebang thereunder. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The Group believes that these contractual arrangements would enable the Company to (1) have power to direct the activities that most significant affects the economic performance of VIE, and (2) receive the economic benefits of the VIE that could be significant to the VIE. Accordingly, the Company is considered the primary beneficiary of the VIE. The Company’s subsidiaries, VIE and VIE’s major subsidiaries as of December 31, 2021 were as follow: Name Later of date Place of establishment Percentage of Principal activities Subsidiaries: BaiJiaHuLian HK Aug 18, 2014 HongKong, China 100 % Holding company Beijing Lexuebang Jan 12, 2015 Beijing, China 100 % Education technical services Wuhan Yuexuebang May 25, 2020 Wuhan, China 100 % Education technical services Beijing Yuexuebang Nov 24, 2020 Beijing, China 100 % Education technical services Shanghai Chuxuebang Network Technology Feb 18, 2021 Shanghai, China 100 % Education technical services VIE: Beijing Gaotu Jun 4, 2014 Beijing, China 100 % Education services VIE's major subsidiaries: Beijing GaoTuYunFan Technology Co., Ltd. May 14, 2015 Beijing, China 100 % Education services Beijing GaoTuYunJi Education Technology Jul 18, 2017 Beijing, China 100 % Education services Zhengzhou GaoTuYunJi Education Jan 19, 2020 Zhengzhou, China 100 % Education services Wuhan GaoTuYunJi Education Apr 1, 2020 Wuhan, China 100 % Education services The English names above are for identification purpose only. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The VIE arrangements Details of the contractual agreements are set forth below. • Agreements that transfer economic benefits to the Group: Exclusive Management Services and Business Cooperation Agreement Pursuant to the exclusive management services and business cooperation agreement among the WFOEs, the VIE and the shareholders of the VIE, the WFOEs has the exclusive right to provide or designate any third-party to provide, among other things, education management consultancy services, permission of intellectual property rights, technological support and business support to the VIE and its subsidiaries. In exchange, the VIE and its subsidiaries pay service fees to the WFOEs in an amount determined by the WFOEs in its sole discretion. Without the prior written consent of the WFOEs, the VIE and its subsidiaries cannot accept services provided by or establish similar cooperation relationship with any third-party. The WFOEs own the exclusive intellectual property rights created as a result of the performance of this agreement unless otherwise provided by PRC laws or regulations. The agreement will be effective for twenty years upon signing by both parties. The term of the agreement was amended on March 2019 and the agreement will remain effective unless unanimously agreed by the parties concerned or unilaterally terminated by the WFOEs with a written notice. Unless otherwise required by applicable PRC laws, our VIE and its shareholders do not have any right to terminate the agreement. • Agreements that provide the Company effective control over Beijing Gaotu: Equity Pledge Agreement Under the equity interest pledge agreement among the WFOEs, the VIE and its shareholders, the VIE’s shareholders pledged all of their equity interests of the VIE to the WFOEs as security for performance of the obligations of the VIE and its shareholders under the exclusive call option agreement, the exclusive management services and business cooperation agreement and the powers of attorney. If any of the specified events of default occurs, the WFOEs may exercise the right to enforce the pledge immediately. The WFOEs may transfer all or any of its rights and obligations under the equity interest pledge agreement to its designee(s) at any time. The agreement will remain in effect until the fulfillment of all the obligations under the exclusive call option agreement, the exclusive management services and business cooperation agreement and the powers of attorney. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The VIE arrangements - continued Exclusive Call Option Agreement Under the exclusive call option agreement among the WFOEs, the VIE and its shareholders, each of the shareholders of the VIE irrevocably granted the WFOEs a right to purchase, or designate a third-party to purchase, all or any part of their equity interests in the VIE at a purchase price equal to the lowest price permissible by the then-applicable PRC laws and regulations at the WFOEs’ sole and absolute discretion to the extent permitted by PRC law. The shareholders of the VIE shall promptly give all considerations they received from the exercise of the options to the WFOEs or its designee(s). The VIE and its shareholders covenant that, without the WFOEs’ prior written consent, they will not, among other things, (i) create any pledge or encumbrance on their equity interests in the VIE; (ii) transfer or otherwise dispose of their equity interests in the VIE; (iii) change the VIE’s registered capital; (iv) amend the VIE’s articles of association; (v) sell, transfer, license or otherwise dispose of any of the VIE’s assets or allow any encumbrance of any assets, except for the disposal or the encumbrances of the assets that are treated as necessary for their daily business operations with the value of the assets involved in a single transaction not exceeding RMB 100 ; (vi) cause the VIE to enter into any major contracts or terminate any material contracts to which the VIE is a party; (vii) declare or distribute dividends; (viii) terminate, liquidate or dissolve our VIE; or (ix) allow the VIE to incur, inherit, guarantee or permit any debts, except for those payables incurred in the ordinary or usual course of business but not incurred by way of borrowing. The agreement will remain effective until terminated by the WFOEs at its discretion or the entire equity interests in the VIE have been transferred to the WFOEs or its designees. Powers of Attorney Pursuant to the powers of attorney executed by the VIE’s shareholders, each of them irrevocably authorized the WFOEs or its designee(s) to act on their respective behalf as exclusive agent and attorney, to the extent permitted by law, with respect to all rights of shareholders concerning all the equity interest held by each of them in the VIE, including but not limited to proposing to convene or attend shareholder meetings, signing the resolutions and minutes of such meetings, exercising all the rights as shareholders (including but not limited to voting rights, nomination rights, appointment rights, the right to receive dividends and the right to sell, transfer, pledge or dispose of all the equity held in part or in whole). 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The VIE arrangements - continued Spousal Consent Letters Pursuant to the spousal consent letters executed by the spouses of certain shareholders of the VIE, the signing spouses unconditionally and irrevocably agreed that the equity interest in the VIE held by and registered in the name of their spouses be disposed of in accordance with the exclusive call option agreement, the exclusive management services and business cooperation agreement, the equity interest pledge agreement and the powers of attorney described above, and that their spouses may perform, amend or terminate such agreements without their additional consent. Additionally, the signing spouses agreed not to assert any rights over the equity interest in the VIE held by their spouses. In addition, in the event that the signing spouses obtains any equity interest in the VIE held by their spouses for any reason, they agree to be bound by and sign any legal documents substantially similar to the contractual arrangements described above, as may be amended from time to time. • Risks in relation to VIE structure The Company believes that the contractual arrangements with Beijing Gaotu and its shareholders are in compliance with existing PRC laws and regulations and are legally enforceable. However, the contractual arrangements are subject to risks and uncertainties, including: • Beijing Gaotu and its shareholders may have or develop interests that conflict with the Group’s interests, which may lead them to pursue opportunities in violation of the aforementioned contractual agreements. If the Group cannot resolve any conflicts of interest or disputes between the Group and the shareholders of Beijing Gaotu, the Group would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. • Beijing Gaotu and its shareholders could fail to obtain the proper operating licenses or fail to comply with other regulatory requirements. As a result, the PRC government could impose fines, new requirements or other penalties on the VIE or the Group, mandate a change in ownership structure or operations for the VIE or the Group, restrict the VIE or the Group’s use of financing sources or otherwise restrict the VIE or the Group’s ability to conduct business. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The VIE arrangements - continued • The PRC government may declare the aforementioned contractual arrangements invalid. They may modify the relevant regulations, have a different interpretation of such regulations, or otherwise determine that the Group or the VIE have failed to comply with the legal obligations required to effectuate such contractual arrangements. • If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government may restrict or prohibit the Group’s business and operations in China, and the Group could be subject to severe penalties or be forced to relinquish the company's interests in those operations. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate Beijing Gaotu and its subsidiaries in the consolidated financial statements as the Group may lose the ability to exert effective control over Beijing Gaotu and its shareholders, and the Group may lose the ability to receive economic benefits from Beijing Gaotu. The Group’s business has been directly operated by the VIE and its subsidiaries. As of December 31, 2020 and 2021, the VIE and its subsidiaries accounted for an aggregate of 33.02 % and 48.37 %, respectively, of the Group’s consolidated total assets, and 83.14 % and 79.85 % respectively of the Group’s consolidated total liabilities. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The VIE arrangements - continued The following financial information of the Company’s VIE and VIE’s subsidiaries after the elimination of inter-company transactions and balances as of December 31, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 was included in the accompanying consolidated financial statements: As of December 31 2020 2021 RMB RMB Cash and cash equivalents 20,701 138,672 Restricted cash — 153,230 Short-term investments 1,347,750 1,037,346 Inventory 48,074 15,595 Prepaid expenses and other current assets 605,287 196,246 Total current assets 2,021,812 1,541,089 Operating lease right-of-use assets 660,407 194,162 Property, equipment and software, net 658,592 647,414 Intangible assets 13,219 77 Land use right 28,983 28,178 Long-term investments 5,356 — Goodwill 43,631 331 Deferred tax assets 48,324 — Rental deposit 47,063 17,084 Other non-current assets 950 1,848 Total non-current assets 1,506,525 889,094 Total assets 3,528,337 2,430,183 Accrued expenses and other current liabilities 623,002 417,032 Deferred revenue, current portion 2,724,614 986,993 Operating lease liabilities, current portion 125,986 41,479 Income tax payable 4,654 — Total current liabilities 3,478,256 1,445,504 Deferred revenue, non-current portion 9,125 9,225 Operating lease liabilities, non-current portion 527,692 158,824 Deferred tax liabilities 78,697 71,616 Other payables 26,580 26,580 Total non-current liabilities 642,094 266,245 Total liabilities 4,120,350 1,711,749 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The VIE arrangements - continued Year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues 2,114,855 7,124,744 6,561,747 Net income 211,799 2,406,144 94,795 Net cash generated from (used in) operating activities 1,238,366 3,945,706 ( 580,304 ) Net cash (used in) generated from investing activities ( 1,172,967 ) ( 305,448 ) 121,861 Net cash used in financing activities ( 87,239 ) ( 132,644 ) ( 100,621 ) There are no consolidated VIE’s assets that are collateral for the VIE’s obligations and which can only be used to settle the VIE’s obligations. No creditors (or beneficial interest holders) of the VIE have recourse to the general credit of the Company or any of its consolidated subsidiaries. No terms in any arrangements, considering both explicit arrangements and implicit variable interests, require the Company or its subsidiaries to provide financial support to the VIE. However, if the VIE ever needs financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to the VIE through loans to the shareholders of the VIE or entrustment loans to the VIE. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued Impact of recent regulations On July 24, 2021, the General Office of State Council and the General Office of Central Committee of the Communist Party of China jointly promulgated the “Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education (compulsory education includes primary school education of six years and middle school education of three years, together as the “Compulsory Stage Education”)” (the “Opinion”), which provides that, among other things, (i) local government authorities shall no longer approve new after-school tutoring institutions (“Academic AST Institutions”) providing tutoring services on academic subjects for students in compulsory education, and the existing after-school tutoring institutions providing tutoring services on academic subjects shall be registered as non-profit, and local government authorities shall no longer approve any new Academic AST Institutions providing tutoring services on academic subjects for pre-school-age children and students in grade ten to twelve; (ii) online Academic AST Institutions that have filed with the local education administration authorities providing tutoring services on academic subjects shall be subject to review and re-approval procedures by competent government authorities, and any failure to obtain such approval will result in the cancellation of its previous filing and ICP license; (iii) Academic AST Institutions are prohibited from raising funds by listing on stock markets or conducting any capitalization activities and listed companies are prohibited from investing in Academic AST Institutions through capital markets fund raising activities, or acquiring assets of Academic AST Institutions by paying cash or issuing securities; and (iv) foreign capital is prohibited from controlling or participating in any Academic AST Institutions through mergers and acquisitions, entrusted operation, joining franchise or variable interest entities. On September 7, 2021, to implement the Opinion, the Chinese Ministry of Education (“MOE”) published on its website that the MOE, together with two other government authorities, issued a circular requiring all Academic AST Institutions to complete registration as non-profit by the end of 2021, and all Academic AST Institutions shall, before completing such registration, suspend enrollment of students and charging fees (the “Regulations”). To comply with the Opinion and the Regulations, the Company performed business restructuring and organizational adjustments, including ceasing offering tutoring services related to academic subjects to students from kindergarten through grade nine (the “K-9 Academic AST Services”) by the end of 2021 (“Business Restructuring”). The financial impacts were disclosed in note 2, 6, 9, 10, 13 and 19. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”). These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. Actual results may differ from those estimates. The Group bases its estimates on past experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s financial statements include, but are not limited to, revenue recognition, valuation allowance for deferred tax assets, useful lives of property, equipment and software, impairment assessment of goodwill, intangible assets and other long-lived assets, fair value assessment of available-for-sale debt investments, purchase price allocation for business acquisition, valuation of share-based compensation, valuation of ordinary shares and preferred share and discount rate for leases. Actual results may differ materially from those estimates. Principles of consolidation The accompanying consolidated financial statements include the financial information of the Group and its subsidiaries, the VIE and the VIE’s subsidiaries. All intercompany balances and transactions were eliminated upon consolidation. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, short-term investments, long-term investments accounted for available-for-sale debt investments, receivables from third party payment platform and other liabilities. As of December 31, 2020 and 2021, the carrying values of cash and cash equivalents, held-to maturities investments, receivables from third party payment platform and other current liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments. Available-for-sales investments are recorded at fair value as of December 31, 2020 and 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Foreign currency translation and transactions The Group's reporting currency is the Renminbi ("RMB"). The functional currency of the subsidiaries incorporated outside the mainland China is the United States dollar ("US dollar" or "US$"). The functional currency of all the other subsidiaries, the VIE and VIE's subsidiaries is the RMB. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Revenues and expenses are translated using the average rate of exchange in effect during the reporting period. Translation adjustments are reported and shown as a separate component of other comprehensive loss in the consolidated statements of changes in shareholders' deficit and the consolidated statements of comprehensive loss. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Transaction gains and losses are recorded in the consolidated statements of operations. Convenience translation The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets and the related consolidated statements of operations, comprehensive income (loss), change in shareholders’ (deficit) equity and cash flows from Renminbi ("RMB") into US dollars as of and for the year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.3726 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2021, or at any other rate. Cash and cash equivalents Cash and cash equivalents comprise cash at banks and on hand, demand deposits and highly liquid investments, which have original maturities of three months or less when purchased and are subject to an insignificant risk of changes in value. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is separately presented. The Group’s restricted cash mainly represents the upfront tuition fee collected and deposited in a custodian bank account regulated by the government, and will be released as the courses are being delivered. Debt securities investments As of December 31, 2020 and 2021, the Group’s debt securities include held-to-maturity and available-for-sale investments. Held-to-maturity investments Investments are classified as held-to-maturity when the Group has the positive intent and ability to hold the securities to maturity, and are recorded at amortized cost. As of December 31, 2020 and 2021, the balances of held-to-maturity securities were RMB 603,775 and RMB 574,628 , respectively and were recorded as short-term investments as their maturities are less than twelve months. Before the adoption of ASC 326, the Group reviews its investments in held-to-maturity investments for impairment whenever an event or circumstance indicates that other-than-temporary impairment has occurred. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its investments in held-to-maturity investments. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the held-to-maturity investments. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Debt securities investments - continued Available-for-sale investments Debt securities investments that do not meet the criteria of held-to-maturity or trading securities are classified as available-for-sale investments and are reported at fair value with unrealized gains and losses recorded in accumulated other comprehensive income (loss). Realized gains or losses on the sale of these securities are recognized under Realized gains from investments in the consolidated statements of operations. The Group evaluates each individual investment periodically for impairment. For investments where the Group does not intend to sell, the Group evaluates whether a decline in fair value is due to deterioration in credit risk. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit losses on the consolidated balance sheet with corresponding adjustment in the consolidated statements of operations and comprehensive income. Subsequent increases in fair value due to credit improvement are recognized through reversal of the credit loss and corresponding reduction in the allowance for credit loss. Any decline in fair value that is non-credit related is recorded in accumulated other comprehensive income as a component of shareholder's equity. As of December 31, 2021, the available-for-sale debt investments were recorded with unrealized loss amounted to RMB 4,258 , compared with unrealized gain amounted to RMB 4,716 as of December 31, 2020. Credit losses With the adoption of ASC 326, the Group evaluates credit loss over held-to-maturity investments upon acquisition at the pool level based on historical experience, credit quality and other factors that may affect the Group’s ability to collect the investments. An expected credit loss will be recognized as an allowance through earnings if the net amount of cash flow expected to be collected is less than the amortized cost basis. For available-for-sale investments, the impairment model is generally consistent with the existing GAAP except that the credit loss is recorded through an allowance approach as opposed to a permanent write-down of cost basis. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation and impairment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Electronic equipment 3 years Furniture and office equipment 5 years Software 2 - 10 years Building 35 - 37 years Leasehold improvement Shorter of the lease term or estimated economic life Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, equipment and software are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the assets and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statement of operations. Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Land use rights, net All land in the PRC is owned by the PRC government, which, according to the relevant PRC law, may grant the right to use the land for a specified period of time. Land use rights are recorded at cost and amortized on a straight line basis over the term of the land certificates, as follows: Category Estimated useful life Land use right 37 years Goodwill The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheets as goodwill. Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired. Application of a goodwill impairment test requires significant management judgment. The judgment in estimating the fair value of reporting unit includes estimating future cash flows, determining appropriate discount rates, consideration of the impact of COVID-19 and the new regulations, and making other relevant assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for the reporting unit. As part of the annual goodwill impairment test, the Group first performs a qualitative assessment to determine whether further impairment testing is necessary. If the qualitative assessment above indicates that it is more likely than not that the fair value of the indefinite-lived intangible asset or the reporting unit (for goodwill) is less than its carrying value, a quantitative impairment test is performed to compare the fair value to the carrying value. An impairment charge is recorded if the carrying value exceeds the fair value. The Group performed qualitative assessment for the reporting unit of Tianjin Puxin in 2021 due to the impact of new Regulations. The Group evaluated all relevant factors including, but not limited to, macroeconomic conditions, industry, regulatory and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations, business plans and strategies of the reporting unit and concluded that it was more likely than not that the fair value of the reporting unit was less than its carrying amount. After the quantitative impairment test, the Group recorded impairment losses on its goodwill amounting to RMB 43,300 during the year ended December 31, 2021. No impairment of goodwill was recorded during the years ended December 31, 2019 and 2020. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Intangible assets, net Intangible assets are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives. The estimated useful lives of intangible assets are as follows: Category Estimated useful life Student base 1.5 - 2 years Trademark 3 - 10 years Impairment of long-lived assets other than goodwill The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. Due to the impact of new Regulations and the Business Restructuring, the Group performed an impairment assessment on its long-lived assets in 2021 and reduced the carrying value of the long-lived assets to its estimated fair value based on expected discounted cash flow or market approach. The Group recorded impairment losses on its long-lived assets amounting to RMB 52,544 during the year ended December 31, 2021. No impairment of long-lived assets was recorded during the years ended December 31, 2019 and 2020. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in common shares or in-substance common shares, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20 % and 50 %. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into earnings and accordingly adjusts the carrying amount of the investment. The Group reviews its equity method investments for impairment whenever an event or circumstance indicates that any other-than-temporary impairment has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investment. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Group did no t record any impairment losses on its equity method investments for the years ended December 31, 2019, 2020 and 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition The Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, in accordance with ASC Topic 606 Revenue from Contracts with Customers ("Topic 606"). The Group’s revenue is reported net of discount, value added tax and related surcharges. Disaggregation of revenue For the years ended December 31, 2019, 2020 and 2021, all of the Group’s revenues were generated in the PRC. Additionally, all of the revenues for the periods were recognized from contracts with customers. The following table provides information about disaggregated revenue by types, including a reconciliation of the disaggregated revenue with the Group’s reportable segment. As a result of the Regulations previously disclosed, the Group changed its disaggregation of revenue to better disclose the performance of its business following its Business Restructuring. Non-K-12 academic subject tutoring services amounting to RMB 378,265 and RMB 871,856 in 2019 and 2020, previously included in online tutoring services, were reclassified to comprehensive tutoring services and others. Year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues - Online K-12 academic subject tutoring services 1,706,538 6,237,399 6,000,639 - Comprehensive tutoring services and others 408,317 887,345 561,108 Total net revenues 2,114,855 7,124,744 6,561,747 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued The primary sources of the Group's revenues are as follows: (1) Online K-12 academic subject tutoring services The Group offers various types of integrated online tutoring services covering a wide spectrum of topics and targets students from broad age groups through its diverse offerings of K-12 academic subject courses. The Group’s live interactive tutoring services consists of several components, including online live broadcasting classes as well as other activities during the online period including teaching material, quizzes before, during and after the classes, summary of lessons after each class and interactions with both other students and instructors during the period. Different service components are highly interdependent and interrelated in the context of the contract with the live interactive tutoring services. Therefore, the Group has determined that the live interactive tutoring services represents one performance obligation. The service period for a majority of the live interactive tutoring services is less than six months. Once the live interactive tutoring services is complete, the Group also offers the customer a content playback service. In the content playback service, the customer has unlimited access to online pre-recorded audio-video courses for a specified period ranging from one to three years. No other interactions or activities are provided during the playback period. For contracts that provide both the live interactive tutoring service and the content playback service, the Group determined that the live interactive tutoring service and content playback service are two separate performance obligations, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued Tutoring fees are collected in advance. The Group determines that there is not a significant financing component based on the nature of the service being offered and the purpose of the payment terms. The Group charges a single upfront amount, not with the primary purpose of obtaining financing from the students but, instead, to maximize profitability, taking into consideration the risks associated with providing the service. The Group offers refunds for any remaining classes to students who withdraw from the course. The refund is equal to the amount related to the undelivered class. The Group determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method, and allocates the tutoring fee excluding the estimate for refund liability to each performance obligation using the relative stand-alone selling price. The Group determines the stand-alone selling prices using an expected cost plus margin methodology. Revenue related to the live interactive tutoring service is recognized proportionately as the online classes are delivered, as the Group concluded that the delivery of each online class represents a faithful depiction of when the services are provided to the students. Revenue related to the right to access the content playback is recognized proportionally over the playback period, as the Group concluded that the content playback service represents a stand ready obligation to provide the playback services and the customer simultaneously receives and consumes the benefits as the Group provides such services throughout the playback period. In some promotion activities, the Group grants sales incentives, including cash coupon and free class, to students who make qualified course purchases. Those students can redeem the cash coupon in the next purchase as part of payment, or select to enroll in a new course free of charge, prior to the incentive’s expiration. The cash coupon and free class will expire in no more than eight months. The Group determined the cash coupon and/or free course granted to existing students are material rights. As a result, a portion of sales price received on students making qualified purchases is allocated to the sales incentives granted based on the relative standalone selling prices. The selling price of cash coupon is estimated based on the discount amount and the probability of redemption. Revenue allocated to sales incentives is recorded as deferred revenue until redemption or expiration. Once the coupon or free class is redeemed, revenue will be recognized based on the revenue recognition policy discussed above. Students may not always redeem the cash coupon or take the free class offered before the expiration of the sales incentive. Therefore, the Group expects to be entitled to a breakage amount in deferred revenue related to the incentives. The Group estimates the breakage based on historical students’ usage and recognizes the estimated breakage as revenue in proportion to the pattern of incentives exercised by students. The assessment of estimating breakage is updated on a quarterly basis. Changes in estimated breakage is accounted for by adjusting deferred revenue to reflect the remaining incentive rights expected to be exercised. Since the Group ceased granting this kind of promotion activities in 2021, the assessment of estimating breakage was not material to the Group any more. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued To comply with the latest PRC regulations, the Group ceased offering tutoring services related to K-9 Academic AST Services by the end of 2021. Additionally, the Group ceased offering tutoring services related to academic subjects to students in senior high schools in February 2022. Refer to Note 23. (2) Comprehensive tutoring services and others The Group’s comprehensive tutoring services and others include all non-K12 academic subject tutoring services that the Group offers, which mainly include professional and vocational education, other services and selling digital products. Professional and vocational education The Group’s professional and vocational education consists of several components, including online live broadcasting classes as well as other activities during the online period including teaching material, quizzes before, during and after the classes, summary of lessons after each class and interactions with both other students and instructors during the period. The Group's revenue recognition policy of its professional and vocational education services is substantially consistent with that for its online K-12 academic subject tutoring services. Other services Other service revenues are primarily derived from offline business consulting courses. The Group offers offline business consulting courses targeting principals and other officers of private education institutions who want to improve their management skills. No contractual service fee refund is provided to the course participants. Course fees are collected in advance and the revenues, net of any discounts, are recognized proportionally over the service period, which is generally less than a year, as the classes are generally delivered evenly through the course period. Selling digital products The Group sells digital products such as translation pens to customers since 2021. The Group has determined that selling digital products represents one performance obligation, as customers can benefit from digital products on their own. The Group recognizes revenues when control of the digital products is transferred to the customer, which generally occurs upon the delivery to the customers. The revenue from digital products was immaterial for the year ended December 31, 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued Contract balances Contract cost Incremental costs of obtaining a contract with a customer is recognized as an asset in “Prepaid expenses and other current assets” if the Group expects to recover those costs. Incremental costs of obtaining a contract mainly include sales commissions to sales personnel and third-party agents which the Group started in July 2019. Contract cost assets are amortized over the estimated customer life. As a result of the Business Restructuring during 2021, the Group evaluated and determined that the carrying amount of the contract cost as of September 30, 2021 exceeded the net considerations that the Group expected to receive after considering the costs that directly related to provide the corresponding services which were not recognized as expenses. As a result, the Group recorded impairment losses related to contract cost amounting to RMB 34,528 during the year ended December 31, 2021. For the new contract entered into during the fourth quarter of 2021, the estimated customer life was significantly shorten considering the downturn of the industry and given the cessation of the K-9 Academic AST Services . As of December 31, 2020 and 2021, the balance of contract cost was RMB 77,668 and nil . For the years ended December 31, 2019, 2020 and 2021, the Group recognized amortization of RMB 156,710 , RMB 185,787 and RMB 212,880 as "Selling expenses" in its consolidated statement of operations, respectively. Contract and refund liabilities The following table provides information about the Group's contract liabilities and refund liability arising from contract with customers. Year ended December 31, 2020 2021 RMB RMB Deferred revenue, current portion 2,724,614 986,993 Deferred revenue, non-current portion 9,125 9,225 2,733,739 996,218 Refund liability 120,709 78,630 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued Deferred revenue primarily consists of tuition fees received from customers for which the Group’s revenue recognition criteria have not been met. The deferred revenue will be recognized as revenue once the criteria for revenue recognition are met. Revenue recognized during the years ended December 31, 2020 and 2021 that was included in the deferred revenue balance at January 1, 2020 and January 1, 2021 amounted to RMB 1,297,088 and RMB 2,668,141 , respectively. Refund liability represents the tutoring fee collected by the Group which it expects to refund back to its customer as a result of its refund policy. Refund liability is estimated based on the historical refund ratio for each of the type of classes provided. The Group’s remaining performance obligations represents the amount of the transaction price for which service has not been performed. As of December 31, 2021, the aggregate amount of the transaction price allocated for the remaining performance obligations amounted to RMB 996,218 . The Group expects to recognize revenue of RMB 986,993 and RMB 6,185 related the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder of RMB 3,040 recognized thereafter. As of December 31, 2021, the balances of deferred revenue and refund liability related to K-9 Academic AST Services were immaterial to the Group. Cost of revenues Cost of revenues mainly consists of compensations to instructors and tutors, rental expenses for office space, depreciation and amortization of properties and equipment, teaching materials and bandwidth costs. The instructors consist of both full-time instructors and part-time instructors. Full-time instructors’ compensation primarily consists of base salary, as well as teaching fees based on hourly rates and attendance of students in connection with courses delivered. The compensation of part-time instructors is calculated as a fixed percentage of the tuition fees of the courses delivered by the instructors, and is accrued as courses are delivered. The compensation of tutors consists of base salary and performance-based compensations, which is determined based on student retention and exercise completion. Specifically, if an existing student of a tutor enrolls in a new course, a bonus is paid to the tutor which is calculated as a percentage of the tuition of the new course. Tutors also receive a fixed payment for each exercise marking performed. The Group accrues on a monthly basis for the cost of tutor which includes basic salary, compensation for exercise marking as well as student retention bonus. The retention bonus is estimated using the expected tuition collected for the retention courses, multiplied by the estimated retention rate and the bonus percentage. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Government subsidies The government subsidies provided by the local government mainly included funding to support the development of the Group. Government subsidies are recognized upon receipt as government subsidies income because the subsidies are not intended to compensate for specific expenditure and not subject to future return. For the years ended December 31, 2019, 2020 and 2021, RMB 310 , RMB 6,941 and RMB 9,350 were received and recognized as other income in the Group’s consolidated statements of operations, respectively. Value added taxes The Group’s educational services and non-educational services are subject to VAT at the rate of 3 % for small-scale-VAT-payer entities or at the rate of 6 % for general-VAT-payer entities in accordance with tax r |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | 3. BUSINESS ACQUISITION In December 2020, the Group acquired 100 % equity interest of Tianjin Puxin Online School Education Technology Co., Ltd. ("Tianjin Puxin"), a K-12 education institution, for a total cash consideration of RMB 37,399 , in which RMB 35,529 had been paid based on the agreement in December 2020. The intangible assets and goodwill acquired from the acquisition were RMB 13,700 and RMB 43,300 , respectively. The Group acquired Tianjin Puxin to further expand its online education student base. Tianjin Puxin after acquisition constituted less than 0.05 % and 0.15 % of revenue and total assets of the consolidated financial statement during the year ended and as of December 31, 2020, and the results of operations attributable to Tianjin Puxin has not been presented because they are not material to the consolidated statements of operations and comprehensive income for the years ended December 31, 2019 and 2020. 3. BUSINESS ACQUISITION - continued The acquired assets and liabilities were recorded at their fair value on the date of acquisition. The purchase price allocation was determined by the Group with assistance of an independent appraiser. The purchase price was allocated on the date of acquisition as below: Amortization 2020 period RMB Other current assets 123 Intangible assets: Trademark 1,300 3 years Student base 12,400 2 years Goodwill 43,300 Deferred revenue ( 11,700 ) Other current liabilities ( 457 ) Deferred tax liabilities ( 7,567 ) 37,399 The goodwill is attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, which is comprised of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from these acquisitions. The Group conducted goodwill impairment assessment in 2021, which was described as Note 9. The following summarized unaudited pro forma results of operations for the years ended December 31, 2019 and December 31, 2020 assuming that the acquisition during the year ended December 31, 2020 occurred as of January 1, 2019. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of January 1, 2019, nor is it indicative of future operating results. Year ended December 31, 2019 2020 RMB RMB (Unaudited) (Unaudited) Pro forma net revenues 2,127,834 7,231,144 Pro forma net income (loss) 177,761 ( 1,477,022 ) The Group did not make any business acquisitions during the year ended December 31, 2021. |
ASSETS ACQUISITION
ASSETS ACQUISITION | 12 Months Ended |
Dec. 31, 2021 | |
Asset Acquisition [Abstract] | |
ASSETS ACQUISITION | 4. ASSETS ACQUISITION In December 2019, the Group entered into a purchase agreement with Zhengzhou Kaitong Technology and Trading Co., Ltd (“Zhengzhou Kaitong”). The purpose of the acquisition is to acquire the commercial real estate owned by Zhengzhou Kaitong which includes two completed office buildings and one office building in construction. The Group plans to use these premises for business operating purposes. In January 2020, the Group completed the acquisition of the real estate for an aggregate consideration of RMB 333,809 , which consisted of cash consideration amounting RMB 228,089 and liability amounting RMB 105,720 . As of December 31, 2021, the Group had a future obligations related to the purchase amounting to RMB 26,580 , all of which was recognized as long-term payables as the Group does not expect the payment to be completed within one year of the acquisition based on the agreement. The Group did not make any asset acquisitions during the year ended December 31, 2021. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of December 31 2020 2021 RMB RMB Prepaid VAT and income tax (1) 312,003 100,396 Prepaid other service fees (2) 342,545 94,587 Receivables from third party payment platform (3) 11,596 49,965 Staff advance 5,813 1,901 Receivables from broker (4) 47,634 4 Others 3,091 3,215 722,682 250,068 (1) Prepaid VAT and income tax consist of (a) VAT input that is expected to offset with VAT output tax or to be transferred out in the future related to 2020 and 2021 and (b) the prepayment of income tax related to 2020. (2) Prepaid other service fees consist of prepayment of advertising fees and cloud server hosting fees. The prepayments of advertising fees and cloud server hosting fees are generally short-term in nature and are amortized over the related service period. (3) Receivables from third party payment platform consist of cash that has been received from course participants but held by the third-party payment platform. The Group subsequently collected the full balance from the third-party payment platform. (4) Amount represents receivable from broker related to employee’s stock option exercises in connection with employees’ tax obligations. In 2020 and 2021, certain employees exercised their stock options for which the Company paid the relevant employee’s tax obligations on their behalf to the appropriate taxing authorities. To settle the employees’ obligations with the Company, the Company’s broker withheld some of the employees’ shares and subsequently sold them in the open market at fair value. The receivable represents the cash to be received from the broker related to the above transaction. |
PROPERTY, EQUIPMENT AND SOFTWAR
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 6. PROPERTY, EQUIPMENT AND SOFTWARE, NET Property, equipment and software consisted of the following: As of December 31, 2020 2021 RMB RMB Electronic equipment 214,235 196,173 Building 189,965 491,082 Leasehold improvement 80,705 81,377 Furniture and office equipment 21,180 11,975 Software 7,183 12,697 Construction in progress 268,515 10,182 Total 781,783 803,486 Less: Accumulated depreciation ( 77,445 ) ( 123,168 ) Accumulated impairment loss — ( 309 ) 704,338 680,009 Depreciation expenses were RMB 11,919 , RMB 55,751 and RMB 108,446 for the years ended December 31, 2019, 2020 and 2021, respectively. As a result of the changes in the regulatory environment of the online education industry and the Business Restructuring, the Group performed an impairment assessment on property, equipment and software in 2021 and reduces the carrying value of the property and equipment related to K-9 business to its estimated fair value based on market approach. The Group recorded impairment losses on property, equipment and software amounted to nil , and RMB 28,918 during the years ended December 31, 2020 and 2021. |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Dec. 31, 2021 | |
Land Use Rights Disclosure [Abstract] | |
LAND USE RIGHTS, NET | 7. LAND USE RIGHTS, NET Land use rights consisted of the following: As of December 31, 2020 2021 RMB RMB Land use rights 29,788 29,788 Less: Accumulated amortization ( 805 ) ( 1,610 ) 28,983 28,178 Amortization expenses for land use right were nil , RMB 805 and RMB 805 for the years ended December 31, 2019, 2020 and 2021, respectively. Future amortization expense is RMB 805 per year for each of the next five years through December 31, 2026 and thereafter. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Investments [Abstract] | |
LONG-TERM INVESTMENTS | 8. LONG-TERM INVESTMENTS As of December 31, 2020 2021 RMB RMB Equity method investments (1) 5,356 — Available-for-sale debt investments (2) 525,373 — 530,729 — (1) In June 2021, the Group disposed all of its ownership in third-party private companies and realized a gain of RMB 494 was recognized under Other income in the consolidated statements of operations during the year ended December 31, 2021. The Group recorded its shares of income in these investments of RMB 1,348 , RMB 63 for the years ended December 31, 2019 and 2020, and shares of loss in these investments of RMB 302 for the period up to disposal date during the year ended December 31, 2021. (2) The Group did not hold any long-term available-for-sale debt investments as of December 31, 2021. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | 9. GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2021 were presented as follow: As of December 31, 2020 2021 RMB RMB Beginning balance 331 43,631 Addition (1) 43,300 — Accumulated impairment loss — ( 43,300 ) Goodwill, net 43,631 331 (1) Represent the goodwill in the acquisition of Tianjin Puxin in December, 2020, which was described as Note 3. The Group conducted goodwill impairment assessment at the end of each reporting year or more frequently if there are changes indicate that it may be impaired. As a result of the changes in the regulatory environment of the online education industry and the Business Restructuring, the Group performed an impairment assessment on goodwill of Tianjin Puxin, which is a stand-alone reporting unit in 2021 and reduced the carrying value to its estimated fair value based on expected discounted cash flow approach. nil and RMB 43,300 for the years ended December 31, 2020 and 2021. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 10. INTANGIBLE ASSETS The intangible assets consisted of the following: As of December 31, 2020 2021 RMB RMB Student base 12,510 12,510 Trademark 1,675 1,675 Total 14,185 14,185 Less: Accumulated amortization ( 966 ) ( 4,277 ) Accumulated impairment loss — ( 9,831 ) 13,219 77 The Group recognized amortization expense of RMB 137 , RMB 656 and RMB 3,311 for the years ended December 31 2019, 2020 and 2021, respectively. As of December 31, 2021, the Group expects to recognize amortization expenses of RMB 20 , RMB 8 , RMB 8 , RMB 8 and RMB 8 for the next five years, respectively, and RMB 25 thereafter. The Group reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. As a result of the changes in the regulatory environment of the online education industry and the Business Restructuring, the Group performed an impairment assessment on intangible assets in 2021 and the intangible assets were fully impaired as the Group does not expect to obtain any benefits from those given the changes in regulations. The Group recorded impairment losses on intangible assets amounted to nil and RMB 9,831 during the years ended December 31, 2020 and 2021, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The components of accrued expenses and other current liabilities were as follows: As of December 31, 2020 2021 RMB RMB Salary and welfare payable 507,867 361,560 Other accrued expense 118,002 132,184 Other tax payable 93,902 85,788 Refund liability (1) 120,709 78,630 Accrued marketing expense 366,426 27,005 Payable for investments and acquisitions 102,606 1,870 Others 5,990 6,228 1,315,502 693,265 (1) Refund liability represents the estimated amounts of service fee received that is estimated to be refunded as described in Note 2. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | 12. FAIR VALUE MEASUREMENT Measured at fair value on a recurring basis As of December 31, 2020 and 2021, available-for-sale investments recorded in short-term and long-term investments are measured and recorded at fair value initially and on a recurring basis in periods subsequent to their initial recognition and are as follows: Fair value measurement as of December 31, 2021 Quoted prices Significant Significant Total (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products — 2,199,372 — 2,199,372 Long-term investments: Available-for-sale debt investments - Wealth management products — — — — Total — 2,199,372 — 2,199,372 12. FAIR VALUE MEASUREMENT - continued Measured at fair value on a recurring basis - continued Fair value measurement as of December 31, 2020 Quoted prices Significant Significant Total (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products 104,259 6,623,234 — 6,727,493 Long-term investments: Available-for-sale debt investments - Wealth management products — 525,373 — 525,373 Total 104,259 7,148,607 — 7,252,866 The Group’s available-for-sale debt investments as of December 31, 2020 and 2021 mainly consists of wealth management products purchased from banks. Some of those products are valued using alternative pricing sources and models utilizing market observable inputs, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 2. Other products are valued based on quoted prices in active markets, and accordingly the Group classified these assets as Level 1. A summary of available-for-sale investments during the years ended December 31, 2020 and 2021 is presented as below: As of December 31, 2021 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products 2,203,630 — 4,258 — 2,199,372 Long-term investments: Available-for-sale debt investments - Wealth management products — — — — — Total 2,203,630 — 4,258 — 2,199,372 12. FAIR VALUE MEASUREMENT - continued Measured at fair value on a recurring basis - continued As of December 31, 2020 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products 6,726,150 1,343 — — 6,727,493 Long-term investments: Available-for-sale debt investments - Wealth management products 522,000 3,373 — — 525,373 Total 7,248,150 4,716 — — 7,252,866 As of December 31, 2021, the fair value of available-for-sale investments by contractual maturity was RMB 2,199,372 within one year, nil within two to three years. Measured at fair value on a non-recurring basis Property, plant and software, goodwill and acquired intangible assets are measured at fair value on a non-recurring basis when an impairment is recognized, which is disclosed in note 6, 9 and 10, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 13. SHARE-BASED COMPENSATION Share options In March 2019, the Group approved the Share Incentive Plan (the “Plan”) under which the maximum aggregate number of ordinary shares that may be issued pursuant to all awards is 28,400,000 shares. The shares reserved may be increased automatically if and whenever the unissued shares reserved accounts for less than one percent (1%) of the total then issued and outstanding shares, so that after the increase, the shares unissued and reserved under the Plan immediately after each such increase shall equal to five percent (5%) of the then issued and outstanding shares. During the years ended December 31, 2019, the Group granted share options to employees. The term of the option shall not exceed ten years from the date of the grant. The options will vest in accordance with the vesting schedules set out in the respective share option agreements with vesting period ranging from 0 to 10 years. The Group determined the estimated fair value of the options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm. The following assumptions were used. As of December 31, Grant date 2019 2020 2021 Risk-free interest rate 3.20 % — — Volatility 54.60 % — — Dividend yield — — — Exercise multiples 2.2 - 2.8 — — Life of options (in years) 10 — — Fair value of underlying ordinary shares 72.1 — — Risk-free interest rate Risk-free interest rate was estimated based on the daily treasury long term rate of the U.S. Treasury Department with a maturity period close to the expected term of the options, plus the country default spread of China. Volatility The volatility of the underlying ordinary shares during the lives of the options was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the options. 13. SHARE-BASED COMPENSATION - continued Share options - continued Dividend yield The dividend yield was estimated by the Group based on its expected dividend policy over the expected term of the options. Exercise multiples Exercise multiple represents the value of the underlying share as a multiple of exercise price of the option which, if achieved, results in exercise of the option. Life of options Life of options is extracted from option agreements. Fair value of underlying ordinary shares Prior to the completion of initial public offering, the estimated fair value of the ordinary shares underlying the options as of the respective grant dates was determined based on a valuation with the assistance of a third party appraiser. The fair value of the underlying ordinary shares is determined based on the closing market price of the share after the completion of initial public offering in June 2019. A summary of options activities during the year ended December 31, 2021 is presented below: Number Weighted Weighted Weighted Average Options outstanding at January 1, 2021 7,850,864 0.01 23.53 7.61 3,973,335 Granted — — — Exercised 751,743 0.01 27.13 Forfeited 1,355,260 0.01 39.33 Cancelled 530,700 0.01 72.12 Options outstanding at December 31, 5,213,161 0.01 13.96 6.63 96,622 Options vested and expected to 5,213,161 0.01 13.96 6.63 96,622 Options exercisable as of December 31, 841,611 0.01 5.01 5.70 15,599 13. SHARE-BASED COMPENSATION - continued Share options - continued The total fair value of options vested during the years ended December 31, 2019, 2020 and 2021 were RMB 14,948 , RMB 21,081 and RMB 19,134 respectively. The Group recognizes compensation expenses related to options over the estimated service period for each separate vesting portion of the award as if the award is in substance, multiple awards. As of December 31, 2021, there was RMB 30,511 of unrecognized compensation expenses related to options expected to be recognized over a weighted average period of 6.63 years. Restricted Stock Units Under the Plan, the Group granted 4,135,425 RSUs to employees at an exercise price of nil per share during the year ended December 31, 2021. The vesting period of these RSUs ranged from 0 to 6 years. The RSUs are not transferable and may not be sold or pledged and the holder has no voting or dividend right on the non-vested RSUs. In the event that the employment with the Group is terminated for any reason prior to vesting in the RSUs, the holder’s right to the unvested RSUs will terminate immediately. The non-vested RSUs will be repurchased by the Group at no cost. The Group recognized compensation expense over the requisite service period for each separately vesting portion of the award as if the award is in substance, multiple awards. The aggregate fair values of RSUs are measured at the fair value of the Group’s ordinary shares on the grant date which were RMB 117,664 , RMB 672,010 and RMB 558,876 during the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2021, there was RMB 244,109 unrecognized compensation cost related to RSUs which is expected to be recognized over a weighted average vesting period of 3.18 years. The weighted average granted fair value of the RSUs granted during the years ended December 31, 2019, 2020 and 2021 was RMB 153.40 , RMB 391.35 and RMB 135.14 per RSU, respectively. 13. SHARE-BASED COMPENSATION - continued Restricted Stock Units - continued A summary of the RSUs activity during the year ended December 31, 2021 is presented below: RSUs Unvested balance at January 1, 2021 2,299,282 Granted 4,135,425 Vested 824,723 Forfeited 2,286,139 Cancelled 332,041 Unvested balance at December 31, 2021 2,991,804 The Group recognized RMB 60,237 , RMB 238,446 and RMB 345,259 of compensation expenses for all options and RSUs granted for the years ended December 31, 2019, 2020 and 2021, respectively. Modifications During 2021, as a result of the Business Restructuring, the Group cancelled 530,700 options and 1,613 RSUs without concurrent grant of a replacement award or other valuable consideration, for those the Group recognized any previously unrecognized compensation cost at the cancellation date. Additionally, the Group also cancelled 330,428 RSUs and further paid RMB 24,370 as cash consideration. Any previous unrecognized compensation costs related to the award were recorded at the cancellation date. The Group recognized incremental compensation expense amounting to RMB 24,370 , equal to the excess of the cash consideration over the fair value of the cancelled award which was nominal at the cancellation date. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
ORDINARY SHARES | 14. ORDINARY SHARES In June 2019, the Company completed its initial public offering and issued 20,532,000 ADSs (representing 13,688,000 Class A ordinary shares). The net proceeds raised from initial public offering and from exercising the over-allotment option by the underwriters were RMB 1,366,860 , net of issuance cost of RMB 31,791 . Upon the completion of the initial public offering, the ordinary shares of the Company are classified as Class A and Class B. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to one vote , and each Class B ordinary share is entitled to ten votes and is convertible into one Class A ordinary share . Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Upon the completion of initial public offering, 157,138,000 ordinary shares outstanding then were designated to 83,832,712 Class A ordinary shares and 73,305,288 Class B ordinary shares, respectively. In November 2019, the Company completed a registered follow-on public offering of secondary shares. The Company did not receive any proceeds from the offering. Shares issued to employees upon exercising their stock options is net of the tax withholding requirements paid on behalf of the employees. During the year ended December 31, 2019, the Company withheld 418,298 ordinary shares to satisfy its employees’ tax obligations amounting to RMB 86,739 (USD 12,459 ). The Company paid this amount in cash to the appropriate taxing authorities. They are treated as common stock repurchases for accounting and disclosure purposes as they reduce the number of shares. In May 2020, the Company’s board of directors authorized a share repurchase program, under which the Company may repurchase up to USD 150,000 worth of its shares. In May 2020, the Company repurchased 1,131,366 ADSs (representing 754,244 Class A ordinary shares) for RMB 282,543 under cost method. During the year ended December 31, 2020, 807,184 shares of treasury stock were reissued in connection with the exercise of options and the vesting of RSUs. In December 2020, the Company entered into a subscription agreement with certain investors (the “Purchasers”), pursuant to which the Company issued 10,611,072 Class A ordinary shares to the Purchasers in a private placement for an aggregate proceeds of RMB 5,687,251 . The proceeds were received in December 2020. A member of the management of the Company purchased 2,455,800 of Class A ordinary shares for a total payment of RMB 1,315,919 . During the year ended December 31, 2021, 365,358 shares of treasury stock were reissued in connection with the exercise of options and the vesting of RSUs. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 15. INCOME TAXES The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. The Company’s subsidiary BaiJiaHuLian HK is located in Hong Kong and is subject to an income tax rate of 16.5 % for assessable profit earned in Hong Kong in 2017 and during the first three months of 2018. From April 2018, BaiJiaHuLian HK is subject to an income tax rate of 8.25 % for the first HKD 2,000 of assessable profit and 16.5 % for profit exceeding HKD 2,000 . No provision for Hong Kong profits tax was made as the Group had no estimated assessable profit that was subject to Hong Kong profits tax for the years ended December 31, 2020 and 2021. The Company’s subsidiary, the VIE and the VIE’s subsidiaries, which were entities incorporated in the PRC (the “PRC entities”), are subject to PRC Enterprise Income Tax (“EIT”) on their taxable income in accordance with the relevant PRC income tax laws, which have adopted a unified income tax rate of 25 % since January 1, 2008 with the following exceptions. Beijing Gaotu qualified as a High and New Technology Enterprise from 2017 through 20 23 and accordingly was entitled to the 15 % preferential tax rate during the period. GaoTuYunJi qualified as a High and New Technology Enterprise from 2019 through 2021 and accordingly was entitled to a 15 % preferential tax rate during the period. Beijing Lexuebang also qualified as a High and New Technology Enterprise during the year ended December 31, 2019. Furthermore, Beijing Lexuebang obtained the qualification of the Software Enterprise Certificate in March 2020, and renewed in 2021. Therefore, Beijing Lexuebang adopted the exemption from EIT for years 2019 and 202 0 , and 12.5 % from 2021 to 2023. Wuhan Yuexuebang obtained the qualification of the Software Enterprise Certificate in March 2021, and renewed in 2022. Therefore, Wuhan Yuexuebang adopted exemption from EIT for the years 2020 and 2 0 21, and 12.5 % from 2022 to 2024. 15. INCOME TAXES - continued The current and deferred components of the income tax expense appearing in the consolidated statement of operations were as follows: Year ended December 31, 2019 2020 2021 RMB RMB RMB Current tax (expense) benefit ( 16,441 ) 14,578 ( 1 ) Deferred tax (expense) benefit ( 516 ) 20,041 ( 40,948 ) ( 16,957 ) 34,619 ( 40,949 ) The principle components of deferred tax assets were as follows: As of December 31, 2020 2021 RMB RMB Deferred tax assets: Deductible temporary difference related to advertising 458,991 750,576 Net operating loss carrying forwards 160,919 578,623 Transfer of intangible assets 1,679 1,510 Accrued liabilities 300 2,176 Total deferred tax assets 621,889 1,332,885 Less: valuation allowance ( 573,565 ) ( 1,332,885 ) Deferred tax assets net 48,324 — 15. INCOME TAXES - continued The movements of valuation allowance for the years end December 31, 2019, 2020 and 2021 were as follows: Year ended December 31, 2019 2020 2021 RMB RMB RMB Balance at beginning of the period 42,797 40,352 573,565 Acquisitions — 4,987 — Additions 36,138 529,915 759,320 Reversal ( 38,583 ) ( 1,689 ) — Balance at end of the period 40,352 573,565 1,332,885 The principle components of deferred tax liabilities were as follows: As of December 31, 2020 2021 RMB RMB Deferred tax liabilities Building and land use right 72,447 71,107 Intangible assets 3,287 — Deferred revenue 2,750 — Unrecognized gains of available-for-sale investments 213 509 Total deferred tax liabilities 78,697 71,616 As of December 31, 2021, the Group had net operating loss carried forward of RMB 2,758,363 from the Company's PRC entities, which will expire on various dates from December 31, 2022 to December 31, 2031 . 15. INCOME TAXES - continued The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations was as follow: Year ended December 31, 2019 2020 2021 RMB RMB RMB Income (loss) before provision for income taxes 242,239 ( 1,427,612 ) ( 3,062,214 ) Income tax (expense) benefit computed at an 25 % ( 60,560 ) 356,903 765,554 Effect of permanent differences ( 11,010 ) 55,935 ( 8,186 ) Effect of research and development super-deduction 38,078 88,881 89,287 Effect of preferential tax rate 10,399 62,404 ( 129,026 ) Effect on tax rates in different tax jurisdictions 3,691 ( 1,278 ) 742 Change in valuation allowance 2,445 ( 528,226 ) ( 759,320 ) ( 16,957 ) 34,619 ( 40,949 ) 15. INCOME TAXES - continued If Beijing Gaotu, GaoTuYunJi, Beijing Lexuebang, Wuhan Yuexuebang did not enjoy income tax preferential tax rates, tax expense would have increased by RMB 10,399 and RMB 62,404 for the years ended December 31, 2019 and 2020, respectively, and tax benefit would have decreased by RMB 129,026 for the year ended December 31, 2021.The decrease in basic net income per ordinary share was RMB 0.08 for the year ended December 31, 2019, and the increase in basic net loss per ordinary share was RMB 0.39 and RMB 0.76 for the years ended December 31, 2020 and 2021. The decrease in diluted net income per ordinary share was RMB 0.07 for the year ended December 31, 2019, and the increase in diluted net loss per ordinary share was RMB 0.39 and RMB 0.76 for the years ended December 31, 2020 and 2021. The Group did not identify significant unrecognized tax benefits for the year ended December 31, 2021. The Group did not incur any interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2021. As of December 31, 2020 and 2021, the Group did no t have any significant unrecognized uncertain tax positions. Aggregate undistributed earnings of the Company’s PRC subsidiaries and the VIE that are available for reinvestment. Upon distribution of such earnings, the Company will be subject to the PRC EIT, the amount of which is impractical to estimate. The Company did not record any withholding tax on any of the aforementioned undistributed earnings because the relevant subsidiaries and the VIE do not intend to declare dividends and the Company intends to permanently reinvest it within the PRC. Additionally, no deferred tax liability was recorded for taxable temporary differences attributable to the undistributed earnings because the Company believes the undistributed earnings can be distributed from the VIE to Beijing Lexuebang in a manner that would not be subject to income tax. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | 16. NET INCOME (LOSS) PER SHARE For part of 2019 , the Group has determined that its convertible redeemable participating preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted basis. The holders of the preferred shares are entitled to receive dividends on a pro rata basis, as if their shares had been converted into ordinary shares. Accordingly, the Group used the two-class method of computing net income (loss) per share, for ordinary shares, preferred shares according to the participation rights in undistributed earnings. However, undistributed loss is only allocated to ordinary shareholders because holders of preferred shares are not contractually obligated to share losses. The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: Year ended December 31, 2019 2020 2021 RMB RMB RMB Basic net income (loss) per share calculation Numerator: Net income (loss) 226,630 ( 1,392,930 ) ( 3,103,465 ) Less: Accretion on Series A Preferred Shares 16,772 — — Less: Undistributed earnings allocated to 21,698 — — Net income (loss) attributed to ordinary shareholders 188,160 ( 1,392,930 ) ( 3,103,465 ) Denominator: Weighted average ordinary shares outstanding used in 132,400,941 159,725,779 170,790,979 Net income (loss) per ordinary share attributable to 1.42 ( 8.72 ) ( 18.17 ) Diluted net income (loss) per ordinary share calculation Denominator: Weighted average ordinary shares basic outstanding 132,400,941 159,725,779 170,790,979 Effect of potentially diluted stock options 6,998,647 — — Effect of potentially diluted RSUs 78,310 — — Weighted average ordinary shares outstanding used in 139,477,898 159,725,779 170,790,979 Net income (loss) per ordinary share attributable to 1.35 ( 8.72 ) ( 18.17 ) 16. NET INCOME (LOSS) PER SHARE - continued For the years ended December 31, 2019, 2020 and 2021, the following shares, share options or RSUs outstanding were excluded from the calculation of diluted net income (loss) per ordinary share, as their inclusion would have been anti-dilutive for the periods prescribed. Year ended December 31, 2019 2020 2021 Shares issuable upon exercise of share options — — — Shares issuable upon conversion of RSUs 512,847 64,576 12,794 |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | 17. EMPLOYEE DEFINED CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund, unemployment insurance and other welfare benefits are provided to employees. Chinese labor regulations require that the Group’s PRC entities make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amount for such employee benefits, which was expensed as incurred, was RMB 67,462 , RMB 216,551 and RMB 393,812 for the years ended December 31, 2019, 2020 and 2021, respectively. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | 18. RELATED PARTY TRANSACTION (1) Related parties Name of related parties Relationship with the Group Beijing Youlian Global Education (1) Equity method investment investee (1) Beijing Youlian was dissolved in June 2020. (2) The significant transactions between the Group and its related parties were as follows: Other than as disclosed elsewhere in these consolidated financial statements, the Group had the following significant related party transactions: Revenue 2019 2020 2021 RMB RMB RMB Beijing Youlian (1) 566 — — Total 566 — — Expense 2019 2020 2021 RMB RMB RMB Beijing Youlian (2) 3,569 1,457 — Total 3,569 1,457 — (1) The Group recognized revenue from providing technical service. (2) The Group recognized expense from receiving advertising service provided by Beijing Youlian. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASE | 19. LEASE Operating leases The Group’s leases consist of operating leases for administrative office spaces in different cities in the PRC. The Group determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which the Group choose to account for as separate components. The allocation of the consideration between the lease and the non-lease components is based on the relative stand-alone prices of lease components included in the lease contracts. As of December 31, 2020 and 2021, the Group had no long-term leases that were classified as a financing lease. As of December 31, 2021, the Group did not have additional operating leases that have not yet commenced. Total operating lease expenses for the years ended December 31, 2020 and 2021 was RMB 155,287 and RMB 193,957 , and was recorded in cost of revenues, selling expenses, research and development expenses and general and administrative expense on the consolidated statements of operations. Some leases were terminated before the expiration of the lease term due to the negative impact of Business Restructuring, the relevant right-of-use asset and the lease liability were derecognized with the difference amounted to RMB 484 recognized under Disposal loss on assets in the consolidated statements of operations. The noncash decrease of operating lease right-of-use assets was RMB 470,358 . Year ended 2020 2021 RMB RMB Cash paid for amounts included in the measurement of Operating cash flows from operating leases 141,942 156,600 Non-cash right-of-use assets in exchange for new lease Operating leases 647,029 39,069 Weighted average remaining lease term: Operating leases 4.6 4.3 Weighted average discount rate: Operating leases 6.6 % 6.5 % 19. LEASE - continued Operating leases - continued The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ending December 31: RMB Year ending December 31, 2022 108,998 2023 107,372 2024 104,373 2025 75,460 2026 31,160 2027 and thereafter 15,439 Less: imputed interest ( 86,757 ) Total 356,045 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The terms of the leases do not contain rent escalation or contingent rents. For the years ended December 31, 2019, 2020, 2021, total rental expense for all operating leases amounted to RMB 53,165 , RMB 155,287 and RMB 193,957 , respectively. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Loss Contingency [Abstract] | |
CONTINGENCIES | 20. CONTINGENCIES From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group has not recorded any material liabilities in this regard as of December 31, 2020 and 2021 . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 21. SEGMENT INFORMATION 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 (“CODM”) in deciding how to allocate resources and assess performance. The Group’s CODM has been identified as the CEO. The Group is currently engaged in providing integrated online tutoring services. The CODM reviews consolidated results including revenue, grow profit and operating profit at a consolidated level only and does not distinguish between services for the purpose of making decisions about resources allocation and performance assessment. As such, the Group concluded that it has one operating segment and one reporting segment. The Group operates solely in the PRC and all of the Group’s long-lived assets are located in the PRC. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | 22. RESTRICTED NET ASSETS Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. In accordance with the Regulations on Enterprises with Foreign Investment of China and their articles of association, a foreign invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts, which is included in retained earnings accounts in equity section of the consolidated balance sheets. A wholly-owned foreign invested enterprise is required to allocate at least 10 % of its annual after-tax profit to the general reserve until such reserve reaches 50 % of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. If any PRC subsidiary incur debt on its own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments to the Group. Any limitation on the ability of the PRC subsidiaries to distribute dividends or other payments to their respective shareholders could materially and adversely limit the ability to grow, make investments or acquisitions that could be beneficial to pay dividends. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide statutory common reserve at least 10 % of its annual after-tax profit until such reserve reaches 50 % of its respective registered capital based on the enterprise’s PRC statutory accounts. The Group’s provision for the statutory common reserve is in compliance with the aforementioned requirement of the Company Law. A domestic enterprise is also required to provide for discretionary surplus reserve, at the discretion of the board of directors, from the profits determined in accordance with the enterprise’s PRC statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Because the Group’s entities in the PRC can only be paid out of distributable profits reported in accordance with PRC accounting standards, the Group’s entities in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in capital and statutory reserves of the Group’s entities in the PRC. The aggregate amount of paid-in capital and statutory reserves, which is the amount of net assets of the Group’s entities in the PRC (mainland) not available for distribution, were RMB 329,344 and RMB 4,738,378 as of December 31, 2020 and 2021, respectively. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 23. SUBSEQUENT EVENT In compliance with Beijing local government's updated regulatory requirements that after-school tutoring services for senior high school students need to strictly follow the Opinion published in July 2021, the Group ceased offering tutoring services related to academic subjects to students in senior high schools by the end of February 2022, which will have a substantial adverse impact on the Group's revenues for 2022 and subsequent periods. The total revenue associated with online K-12 academic subject tutoring services for the years ended December 31, 2019, 2020 and 2021 is disclosed in note 2. |
ADDITIONAL INFORMATION-FINANCIA
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (In thousands of RMB and USD, except for share, per share and per ADS data, or otherwise noted) As of December 31 2020 2021 2021 RMB RMB USD Cash and cash equivalents 8,430 11,260 1,767 Short-term investments 5,983,518 885,420 138,942 Prepaid expenses and other current assets 10,627 463 73 Amounts due from subsidiaries and VIEs 318,205 5,777,602 906,632 Total current assets 6,320,780 6,674,745 1,047,414 Long-term investments 525,373 — — TOTAL ASSETS 6,846,153 6,674,745 1,047,414 Accrued expenses and other current liabilities 8,803 5,184 814 Amounts due to subsidiaries and VIEs 100,038 108,120 16,966 Total current liabilities 108,841 113,304 17,780 Deficit of investments in subsidiaries and VIEs 1,007,457 3,680,499 577,551 TOTAL LIABILITIES 1,116,298 3,793,803 595,331 Class A ordinary shares (par value of USD 0.0001 per share; 800,000,000 shares authorized as of December 31, 2020 and 2021; 96,821,132 and 99,277,116 shares issued; 96,455,774 and 98,032,240 shares outstanding as of December 31, 2020 and 2021) 65 66 10 Class B ordinary shares (par value of USD 0.0001 per share; 100,000,000 shares authorized as of December 31, 2020 and 2021, 73,305,288 shares issued and outstanding as of December 31, 2020 and 2021) 48 48 8 Treasury stock, at cost ( 139,572 ) — — Additional paid-in capital 7,595,049 7,793,234 1,222,928 Accumulated other comprehensive loss ( 59,905 ) ( 143,111 ) ( 22,457 ) Statutory reserves 40,380 40,380 6,337 Accumulated deficit ( 1,706,210 ) ( 4,809,675 ) ( 754,743 ) TOTAL SHAREHOLDERS’ EQUITY 5,729,855 2,880,942 452,083 TOTAL LIABILITIES AND TOTAL SHAREHOLDERS’ EQUITY 6,846,153 6,674,745 1,047,414 ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF OPERATIONS (In thousands of RMB and USD, except for share, per share and per ADS data, or otherwise noted) Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD General and administrative expenses 12,152 ( 14,157 ) ( 25,357 ) ( 3,979 ) Total operating expenses 12,152 ( 14,157 ) ( 25,357 ) ( 3,979 ) Income (loss) from operations 12,152 ( 14,157 ) ( 25,357 ) ( 3,979 ) Equity in gain (loss) of subsidiaries and VIEs 211,868 ( 1,387,816 ) ( 3,106,437 ) ( 487,466 ) Income from non-operations 2,610 9,043 28,329 4,445 Income (loss) before income tax 226,630 ( 1,392,930 ) ( 3,103,465 ) ( 487,000 ) Income tax expenses — — — — Net income (loss) 226,630 ( 1,392,930 ) ( 3,103,465 ) ( 487,000 ) Less: Series A convertible redeemable preferred shares redemption value accretion 16,772 — — — Less: Undistributed earnings allocated to the participating preferred shares 21,698 — — — Net income (loss) 188,160 ( 1,392,930 ) ( 3,103,465 ) ( 487,000 ) ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME (In thousands of RMB and USD, except for share, per share and per ADS data, or otherwise noted) Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Net income (loss) 226,630 ( 1,392,930 ) ( 3,103,465 ) ( 487,000 ) Other comprehensive income (loss), net of tax: Change in cumulative foreign currency translation adjustments 9,219 ( 74,562 ) ( 73,936 ) ( 11,602 ) Unrealized gains on available-for-sale investments (net of tax effect of nil , RMB 9,867 and RMB 8,598 for the years ended December 31, 2019, 2020 and 2021, respectively) 18,839 67,231 48,191 7,562 Transfer to statements of operations of realized gains on available-for-sale investments (net of tax effect of nil , RMB 9,654 and RMB 8,302 for the years ended December 31, 2019, 2020 and 2021, respectively) ( 11,395 ) ( 70,403 ) ( 57,461 ) ( 9,017 ) Total comprehensive income (loss) 243,293 ( 1,470,664 ) ( 3,186,671 ) ( 500,057 ) ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS (In thousands of RMB and USD, except for share, per share and per ADS data, or otherwise noted) Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) 226,630 ( 1,392,930 ) ( 3,103,465 ) ( 487,000 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in (gain) loss of subsidiaries and VIEs ( 211,868 ) 1,387,816 3,106,437 487,466 Realized gains from investments ( 525 ) ( 6,564 ) ( 8,498 ) ( 1,333 ) Changes in operating assets and liabilities: Prepaid expenses and other current assets ( 627 ) ( 1,919 ) 2,083 327 Accrued expenses and other current liabilities 1,756 ( 1,771 ) ( 3,618 ) ( 568 ) Net cash generated from (used in) operating activities 15,366 ( 15,368 ) ( 7,061 ) ( 1,108 ) CASH FLOWS FROM INVESTING ACTIVITIES: Loans to subsidiaries and VIEs ( 673 ) ( 195,783 ) ( 6,248,209 ) ( 980,480 ) Repayment from subsidiaries and VIEs 108,339 — 706,870 110,923 Investing activities on debt securities investments ( 1,319,660 ) ( 5,252,188 ) 5,547,488 870,522 Net cash (used in) generated from investing activities ( 1,211,994 ) ( 5,447,971 ) 6,149 965 CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from initial public offering and from exercising the overallotment option by the underwriters (net of issuance cost of RMB 31,791 ) 1,366,860 — — — Capital contribution — 36 7 1 Proceeds from private placement financing — 5,687,251 — — Repurchase of ordinary shares ( 86,739 ) ( 282,543 ) — — Repayments to related parties ( 34,056 ) — — — Net cash generated from financing activities 1,246,065 5,404,744 7 1 Effect of exchange rate changes 12,032 5,390 3,735 586 Net increase (decrease) in cash and cash equivalents 61,469 ( 53,205 ) 2,830 444 Cash and cash equivalents at beginning of the year 166 61,635 8,430 1,323 Cash and cash equivalents at end of the year 61,635 8,430 11,260 1,767 ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY NOTES TO FINANCIAL STATEMENTS (In thousands of RMB and USD, except for share and per share data, or otherwise noted) 1. BASIS FOR PREPARATION The condensed financial information of the Parent Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Parent Company used the equity method to account for investments in its subsidiaries, VIE and VIE’s subsidiaries. 2. INVESTMENT IN SUBSIDIARIES AND VIE AND VIE'S SUBSIDIARIES The Parent Company and its subsidiaries, VIE and VIE’s subsidiaries were included in the consolidated financial statements where inter-company balances and transactions were eliminated upon consolidation. For purpose of the Parent Company’s stand-alone financial statements, its investments in subsidiaries, VIE and VIE’s subsidiaries were reported using the equity method of accounting. The Parent Company’s share of loss from its subsidiaries, VIE and VIE’s subsidiaries were reported as share of loss of subsidiaries, VIE and VIE’s subsidiaries in the accompanying Parent Company financial statements. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to RMB nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the Parent Company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries, VIE and VIE’s subsidiaries regardless of the carrying value of the investment even though the Parent Company is not obligated to provide continuing support or fund losses. 3. CONVENIENCE TRANSLATION The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the balance sheet, and the related statement of operations and cash flows from Renminbi (“RMB”) into US dollars as of and for the year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.3726 , representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2021, or at any other rate. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation and use of estimates | Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”). These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. Actual results may differ from those estimates. The Group bases its estimates on past experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s financial statements include, but are not limited to, revenue recognition, valuation allowance for deferred tax assets, useful lives of property, equipment and software, impairment assessment of goodwill, intangible assets and other long-lived assets, fair value assessment of available-for-sale debt investments, purchase price allocation for business acquisition, valuation of share-based compensation, valuation of ordinary shares and preferred share and discount rate for leases. Actual results may differ materially from those estimates. |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements include the financial information of the Group and its subsidiaries, the VIE and the VIE’s subsidiaries. All intercompany balances and transactions were eliminated upon consolidation. |
Fair value | Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Financial instruments | Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, restricted cash, short-term investments, long-term investments accounted for available-for-sale debt investments, receivables from third party payment platform and other liabilities. As of December 31, 2020 and 2021, the carrying values of cash and cash equivalents, held-to maturities investments, receivables from third party payment platform and other current liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments. Available-for-sales investments are recorded at fair value as of December 31, 2020 and 2021. |
Foreign currency translation and transactions | Foreign currency translation and transactions The Group's reporting currency is the Renminbi ("RMB"). The functional currency of the subsidiaries incorporated outside the mainland China is the United States dollar ("US dollar" or "US$"). The functional currency of all the other subsidiaries, the VIE and VIE's subsidiaries is the RMB. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Revenues and expenses are translated using the average rate of exchange in effect during the reporting period. Translation adjustments are reported and shown as a separate component of other comprehensive loss in the consolidated statements of changes in shareholders' deficit and the consolidated statements of comprehensive loss. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Transaction gains and losses are recorded in the consolidated statements of operations. |
Convenience translation | Convenience translation The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets and the related consolidated statements of operations, comprehensive income (loss), change in shareholders’ (deficit) equity and cash flows from Renminbi ("RMB") into US dollars as of and for the year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.3726 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2021, or at any other rate. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents comprise cash at banks and on hand, demand deposits and highly liquid investments, which have original maturities of three months or less when purchased and are subject to an insignificant risk of changes in value. |
Restricted cash | Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is separately presented. The Group’s restricted cash mainly represents the upfront tuition fee collected and deposited in a custodian bank account regulated by the government, and will be released as the courses are being delivered. |
Debt securities investments | Debt securities investments As of December 31, 2020 and 2021, the Group’s debt securities include held-to-maturity and available-for-sale investments. Held-to-maturity investments Investments are classified as held-to-maturity when the Group has the positive intent and ability to hold the securities to maturity, and are recorded at amortized cost. As of December 31, 2020 and 2021, the balances of held-to-maturity securities were RMB 603,775 and RMB 574,628 , respectively and were recorded as short-term investments as their maturities are less than twelve months. Before the adoption of ASC 326, the Group reviews its investments in held-to-maturity investments for impairment whenever an event or circumstance indicates that other-than-temporary impairment has occurred. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its investments in held-to-maturity investments. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the held-to-maturity investments. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Debt securities investments - continued Available-for-sale investments Debt securities investments that do not meet the criteria of held-to-maturity or trading securities are classified as available-for-sale investments and are reported at fair value with unrealized gains and losses recorded in accumulated other comprehensive income (loss). Realized gains or losses on the sale of these securities are recognized under Realized gains from investments in the consolidated statements of operations. The Group evaluates each individual investment periodically for impairment. For investments where the Group does not intend to sell, the Group evaluates whether a decline in fair value is due to deterioration in credit risk. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit losses on the consolidated balance sheet with corresponding adjustment in the consolidated statements of operations and comprehensive income. Subsequent increases in fair value due to credit improvement are recognized through reversal of the credit loss and corresponding reduction in the allowance for credit loss. Any decline in fair value that is non-credit related is recorded in accumulated other comprehensive income as a component of shareholder's equity. As of December 31, 2021, the available-for-sale debt investments were recorded with unrealized loss amounted to RMB 4,258 , compared with unrealized gain amounted to RMB 4,716 as of December 31, 2020. |
Credit Losses | Credit losses With the adoption of ASC 326, the Group evaluates credit loss over held-to-maturity investments upon acquisition at the pool level based on historical experience, credit quality and other factors that may affect the Group’s ability to collect the investments. An expected credit loss will be recognized as an allowance through earnings if the net amount of cash flow expected to be collected is less than the amortized cost basis. For available-for-sale investments, the impairment model is generally consistent with the existing GAAP except that the credit loss is recorded through an allowance approach as opposed to a permanent write-down of cost basis. |
Property, equipment and software, net | Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation and impairment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Electronic equipment 3 years Furniture and office equipment 5 years Software 2 - 10 years Building 35 - 37 years Leasehold improvement Shorter of the lease term or estimated economic life Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, equipment and software are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the assets and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statement of operations. |
Business combinations | Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. |
Land use rights, net | Land use rights, net All land in the PRC is owned by the PRC government, which, according to the relevant PRC law, may grant the right to use the land for a specified period of time. Land use rights are recorded at cost and amortized on a straight line basis over the term of the land certificates, as follows: Category Estimated useful life Land use right 37 years |
Goodwill | Goodwill The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheets as goodwill. Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired. Application of a goodwill impairment test requires significant management judgment. The judgment in estimating the fair value of reporting unit includes estimating future cash flows, determining appropriate discount rates, consideration of the impact of COVID-19 and the new regulations, and making other relevant assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for the reporting unit. As part of the annual goodwill impairment test, the Group first performs a qualitative assessment to determine whether further impairment testing is necessary. If the qualitative assessment above indicates that it is more likely than not that the fair value of the indefinite-lived intangible asset or the reporting unit (for goodwill) is less than its carrying value, a quantitative impairment test is performed to compare the fair value to the carrying value. An impairment charge is recorded if the carrying value exceeds the fair value. The Group performed qualitative assessment for the reporting unit of Tianjin Puxin in 2021 due to the impact of new Regulations. The Group evaluated all relevant factors including, but not limited to, macroeconomic conditions, industry, regulatory and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations, business plans and strategies of the reporting unit and concluded that it was more likely than not that the fair value of the reporting unit was less than its carrying amount. After the quantitative impairment test, the Group recorded impairment losses on its goodwill amounting to RMB 43,300 during the year ended December 31, 2021. No impairment of goodwill was recorded during the years ended December 31, 2019 and 2020. |
Intangible assets, net | Intangible assets, net Intangible assets are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives. The estimated useful lives of intangible assets are as follows: Category Estimated useful life Student base 1.5 - 2 years Trademark 3 - 10 years |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets other than goodwill The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. Due to the impact of new Regulations and the Business Restructuring, the Group performed an impairment assessment on its long-lived assets in 2021 and reduced the carrying value of the long-lived assets to its estimated fair value based on expected discounted cash flow or market approach. The Group recorded impairment losses on its long-lived assets amounting to RMB 52,544 during the year ended December 31, 2021. No impairment of long-lived assets was recorded during the years ended December 31, 2019 and 2020. |
Equity method investments | Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in common shares or in-substance common shares, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20 % and 50 %. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into earnings and accordingly adjusts the carrying amount of the investment. The Group reviews its equity method investments for impairment whenever an event or circumstance indicates that any other-than-temporary impairment has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investment. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Group did no t record any impairment losses on its equity method investments for the years ended December 31, 2019, 2020 and 2021. |
Revenue recognition | Revenue recognition The Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, in accordance with ASC Topic 606 Revenue from Contracts with Customers ("Topic 606"). The Group’s revenue is reported net of discount, value added tax and related surcharges. Disaggregation of revenue For the years ended December 31, 2019, 2020 and 2021, all of the Group’s revenues were generated in the PRC. Additionally, all of the revenues for the periods were recognized from contracts with customers. The following table provides information about disaggregated revenue by types, including a reconciliation of the disaggregated revenue with the Group’s reportable segment. As a result of the Regulations previously disclosed, the Group changed its disaggregation of revenue to better disclose the performance of its business following its Business Restructuring. Non-K-12 academic subject tutoring services amounting to RMB 378,265 and RMB 871,856 in 2019 and 2020, previously included in online tutoring services, were reclassified to comprehensive tutoring services and others. Year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues - Online K-12 academic subject tutoring services 1,706,538 6,237,399 6,000,639 - Comprehensive tutoring services and others 408,317 887,345 561,108 Total net revenues 2,114,855 7,124,744 6,561,747 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued The primary sources of the Group's revenues are as follows: (1) Online K-12 academic subject tutoring services The Group offers various types of integrated online tutoring services covering a wide spectrum of topics and targets students from broad age groups through its diverse offerings of K-12 academic subject courses. The Group’s live interactive tutoring services consists of several components, including online live broadcasting classes as well as other activities during the online period including teaching material, quizzes before, during and after the classes, summary of lessons after each class and interactions with both other students and instructors during the period. Different service components are highly interdependent and interrelated in the context of the contract with the live interactive tutoring services. Therefore, the Group has determined that the live interactive tutoring services represents one performance obligation. The service period for a majority of the live interactive tutoring services is less than six months. Once the live interactive tutoring services is complete, the Group also offers the customer a content playback service. In the content playback service, the customer has unlimited access to online pre-recorded audio-video courses for a specified period ranging from one to three years. No other interactions or activities are provided during the playback period. For contracts that provide both the live interactive tutoring service and the content playback service, the Group determined that the live interactive tutoring service and content playback service are two separate performance obligations, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued Tutoring fees are collected in advance. The Group determines that there is not a significant financing component based on the nature of the service being offered and the purpose of the payment terms. The Group charges a single upfront amount, not with the primary purpose of obtaining financing from the students but, instead, to maximize profitability, taking into consideration the risks associated with providing the service. The Group offers refunds for any remaining classes to students who withdraw from the course. The refund is equal to the amount related to the undelivered class. The Group determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method, and allocates the tutoring fee excluding the estimate for refund liability to each performance obligation using the relative stand-alone selling price. The Group determines the stand-alone selling prices using an expected cost plus margin methodology. Revenue related to the live interactive tutoring service is recognized proportionately as the online classes are delivered, as the Group concluded that the delivery of each online class represents a faithful depiction of when the services are provided to the students. Revenue related to the right to access the content playback is recognized proportionally over the playback period, as the Group concluded that the content playback service represents a stand ready obligation to provide the playback services and the customer simultaneously receives and consumes the benefits as the Group provides such services throughout the playback period. In some promotion activities, the Group grants sales incentives, including cash coupon and free class, to students who make qualified course purchases. Those students can redeem the cash coupon in the next purchase as part of payment, or select to enroll in a new course free of charge, prior to the incentive’s expiration. The cash coupon and free class will expire in no more than eight months. The Group determined the cash coupon and/or free course granted to existing students are material rights. As a result, a portion of sales price received on students making qualified purchases is allocated to the sales incentives granted based on the relative standalone selling prices. The selling price of cash coupon is estimated based on the discount amount and the probability of redemption. Revenue allocated to sales incentives is recorded as deferred revenue until redemption or expiration. Once the coupon or free class is redeemed, revenue will be recognized based on the revenue recognition policy discussed above. Students may not always redeem the cash coupon or take the free class offered before the expiration of the sales incentive. Therefore, the Group expects to be entitled to a breakage amount in deferred revenue related to the incentives. The Group estimates the breakage based on historical students’ usage and recognizes the estimated breakage as revenue in proportion to the pattern of incentives exercised by students. The assessment of estimating breakage is updated on a quarterly basis. Changes in estimated breakage is accounted for by adjusting deferred revenue to reflect the remaining incentive rights expected to be exercised. Since the Group ceased granting this kind of promotion activities in 2021, the assessment of estimating breakage was not material to the Group any more. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued To comply with the latest PRC regulations, the Group ceased offering tutoring services related to K-9 Academic AST Services by the end of 2021. Additionally, the Group ceased offering tutoring services related to academic subjects to students in senior high schools in February 2022. Refer to Note 23. (2) Comprehensive tutoring services and others The Group’s comprehensive tutoring services and others include all non-K12 academic subject tutoring services that the Group offers, which mainly include professional and vocational education, other services and selling digital products. Professional and vocational education The Group’s professional and vocational education consists of several components, including online live broadcasting classes as well as other activities during the online period including teaching material, quizzes before, during and after the classes, summary of lessons after each class and interactions with both other students and instructors during the period. The Group's revenue recognition policy of its professional and vocational education services is substantially consistent with that for its online K-12 academic subject tutoring services. Other services Other service revenues are primarily derived from offline business consulting courses. The Group offers offline business consulting courses targeting principals and other officers of private education institutions who want to improve their management skills. No contractual service fee refund is provided to the course participants. Course fees are collected in advance and the revenues, net of any discounts, are recognized proportionally over the service period, which is generally less than a year, as the classes are generally delivered evenly through the course period. Selling digital products The Group sells digital products such as translation pens to customers since 2021. The Group has determined that selling digital products represents one performance obligation, as customers can benefit from digital products on their own. The Group recognizes revenues when control of the digital products is transferred to the customer, which generally occurs upon the delivery to the customers. The revenue from digital products was immaterial for the year ended December 31, 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued Contract balances Contract cost Incremental costs of obtaining a contract with a customer is recognized as an asset in “Prepaid expenses and other current assets” if the Group expects to recover those costs. Incremental costs of obtaining a contract mainly include sales commissions to sales personnel and third-party agents which the Group started in July 2019. Contract cost assets are amortized over the estimated customer life. As a result of the Business Restructuring during 2021, the Group evaluated and determined that the carrying amount of the contract cost as of September 30, 2021 exceeded the net considerations that the Group expected to receive after considering the costs that directly related to provide the corresponding services which were not recognized as expenses. As a result, the Group recorded impairment losses related to contract cost amounting to RMB 34,528 during the year ended December 31, 2021. For the new contract entered into during the fourth quarter of 2021, the estimated customer life was significantly shorten considering the downturn of the industry and given the cessation of the K-9 Academic AST Services . As of December 31, 2020 and 2021, the balance of contract cost was RMB 77,668 and nil . For the years ended December 31, 2019, 2020 and 2021, the Group recognized amortization of RMB 156,710 , RMB 185,787 and RMB 212,880 as "Selling expenses" in its consolidated statement of operations, respectively. Contract and refund liabilities The following table provides information about the Group's contract liabilities and refund liability arising from contract with customers. Year ended December 31, 2020 2021 RMB RMB Deferred revenue, current portion 2,724,614 986,993 Deferred revenue, non-current portion 9,125 9,225 2,733,739 996,218 Refund liability 120,709 78,630 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued Deferred revenue primarily consists of tuition fees received from customers for which the Group’s revenue recognition criteria have not been met. The deferred revenue will be recognized as revenue once the criteria for revenue recognition are met. Revenue recognized during the years ended December 31, 2020 and 2021 that was included in the deferred revenue balance at January 1, 2020 and January 1, 2021 amounted to RMB 1,297,088 and RMB 2,668,141 , respectively. Refund liability represents the tutoring fee collected by the Group which it expects to refund back to its customer as a result of its refund policy. Refund liability is estimated based on the historical refund ratio for each of the type of classes provided. The Group’s remaining performance obligations represents the amount of the transaction price for which service has not been performed. As of December 31, 2021, the aggregate amount of the transaction price allocated for the remaining performance obligations amounted to RMB 996,218 . The Group expects to recognize revenue of RMB 986,993 and RMB 6,185 related the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder of RMB 3,040 recognized thereafter. As of December 31, 2021, the balances of deferred revenue and refund liability related to K-9 Academic AST Services were immaterial to the Group. |
Cost of revenues | Cost of revenues Cost of revenues mainly consists of compensations to instructors and tutors, rental expenses for office space, depreciation and amortization of properties and equipment, teaching materials and bandwidth costs. The instructors consist of both full-time instructors and part-time instructors. Full-time instructors’ compensation primarily consists of base salary, as well as teaching fees based on hourly rates and attendance of students in connection with courses delivered. The compensation of part-time instructors is calculated as a fixed percentage of the tuition fees of the courses delivered by the instructors, and is accrued as courses are delivered. The compensation of tutors consists of base salary and performance-based compensations, which is determined based on student retention and exercise completion. Specifically, if an existing student of a tutor enrolls in a new course, a bonus is paid to the tutor which is calculated as a percentage of the tuition of the new course. Tutors also receive a fixed payment for each exercise marking performed. The Group accrues on a monthly basis for the cost of tutor which includes basic salary, compensation for exercise marking as well as student retention bonus. The retention bonus is estimated using the expected tuition collected for the retention courses, multiplied by the estimated retention rate and the bonus percentage. |
Government subsidies | Government subsidies The government subsidies provided by the local government mainly included funding to support the development of the Group. Government subsidies are recognized upon receipt as government subsidies income because the subsidies are not intended to compensate for specific expenditure and not subject to future return. For the years ended December 31, 2019, 2020 and 2021, RMB 310 , RMB 6,941 and RMB 9,350 were received and recognized as other income in the Group’s consolidated statements of operations, respectively. |
Value added taxes | Value added taxes The Group’s educational services and non-educational services are subject to VAT at the rate of 3 % for small-scale-VAT-payer entities or at the rate of 6 % for general-VAT-payer entities in accordance with tax rule. Since January 2020, in accordance with Cai Shui [2020] No.8, due to the Novel coronavirus (“COVID-19”) pandemic, the VAT on certain services was temporarily exempted for the fiscal year of 2020. Based on the Announcement on Continuously Implementing Some Tax Preferential Policies in Response to COVID-19 Epidemic (2021 No.7), the exemption period was further extended to March 31,2021. As a result, the Group's educational services were not subject to any VAT from January 1, 2020 to March 31, 2021, and the Group's small-scale-VAT-payer entities were subject to preferential VAT rate of 1 % from March 1, 2020 to December 31, 2021. For the years ended December 31, 2019 and 2020, nil and RMB 256,378 value added tax exemption were recognized as other income in the Group’s consolidated statement of operations, compared with RMB 16,224 as other expense for the year ended December 31, 2021, mainly consist of input VAT related cost, partially offset by output VAT, as a result of VAT exemption. |
Income taxes | Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. |
Share-based compensation | Share-based compensation The Group measures the cost of employee share options and restricted stock units ("RSUs") based on the grant date fair value of the award and recognizes compensation cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options, the Group recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, the cost of the award is expensed on the grant date. The Group elects to recognize forfeitures when they occur. Cancellation of an award that is not accompanied by the concurrent grant of a replacement award or other valuable consideration shall be accounted for as a repurchase for no consideration. Accordingly, the Group recognizes any previously unrecognized compensation cost immediately at the cancellation date. Cancellation of an award accompanied by the concurrent grant of a replacement award or other valuable consideration shall be accounted for as a modification of the terms of the cancelled award. Therefore, the Group recognizes incremental compensation cost as the excess of the fair value of the replacement award or other valuable consideration over the fair value of the cancelled award at the cancellation date . |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) includes net income (loss), foreign currency translation adjustments and the unrealized gains and losses on available-for-sale debt investments of the Group. Comprehensive income (loss) is reported in the consolidated statements of comprehensive income (loss). |
Leases | Leases The Group leases administrative office spaces in different cities in the PRC under operating leases. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. As the rate implicit in the lease is not readily determinable, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Group estimates its incremental borrowing rate based on an analysis of publicly traded debt securities of companies with credit and financial profiles similar to its own. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense when the lessor makes the underlying asset available to the Group. The Group’s leases have remaining lease terms of up to eight years , some of which include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group did not include renewal option periods in the lease term for which it is not reasonably certain to exercise. When a lease is terminated before the expiration of the lease term, the Group derecognizes the right of use asset and corresponding lease liability, any difference is recognized as a gain or loss related to the termination of the lease. For short-term leases, the Group records operating lease expense in its consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. |
Net income (loss) per share | Net income (loss) per share Basic income (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The Group has determined that its convertible redeemable preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted basis. Accordingly, the Group used the two-class method of computing net income (loss) per share, for ordinary and preferred shares according to participation rights in undistributed earnings. Under this method, net income applicable to holders of ordinary shares is allocated on a pro rata basis to the holders of ordinary and preferred shares to the extent that each class may share income for the period; whereas undistributed net loss is allocated to ordinary shares because preferred shares are not contractually obligated to share the loss. Diluted income (loss) per ordinary share reflect the potential dilution that would occur if securities were exercised or converted into ordinary shares. The Group had convertible redeemable participating preferred shares, share options and RSUs, which could potentially dilute basic income per share in the future. To calculate the number of shares for diluted income per ordinary shares, the effect of the convertible redeemable participating preferred shares is computed using the as-if-converted method; the effect of the share options and unvested RSUs is computed using the treasury stock method. |
Significant risks and uncertainties | Significant risks and uncertainties Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the Peoples Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies, international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents denominated in RMB amounted to RMB 151,009 and RMB 524,298 as of December 31, 2020 and 2021, respectively. Concentration risks Financial instruments that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, restricted cash, short-term investments and receivables from third party payment platform. As of December 31, 2020 and 2021, substantially all of the Group’s cash and cash equivalents and short-term investments were deposited in financial institutions located in the PRC. There are no revenues from customers which individually represent greater than 10 % of the total net revenues for the years ended December 31, 2019, 2020 and 2021. |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance, which requires business entities to provide certain disclosures when they (1) have received government assistance and (2) use a grant or contribution accounting model by analogy to other accounting guidance (e.g., a grant model under IAS 20 or ASC 958-605). The ASU creates ASC 832 (on government assistance). Under ASC 832-10-50-3 and 50-4, a business entity that has received government assistance must provide the following disclosures for annual periods about transactions that are within the scope of ASC 832: a. The nature of the transactions, including a general description of the transactions and the form in which the assistance has been received (for example, cash or other assets); b. The accounting policies used to account for the transactions as required by paragraph 235-10-50-1; c. The line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item in the current reporting period. The guidance in ASU 2021-10 is effective for all entities for fiscal years beginning after December 15, 2021. Entities may apply the ASU’s provisions either (1) prospectively to all transactions within the scope of ASC 832 that are reflected in the financial statements as of the adoption date and all new transactions entered into after the date of adoption or (2) retrospectively. Early adoption is permitted. The Group is currently assessing the impact of adopting this ASU, but based on a preliminary assessment, does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of subsidiaries, VIE and VIE's subsidiaries | The Company’s subsidiaries, VIE and VIE’s major subsidiaries as of December 31, 2021 were as follow: Name Later of date Place of establishment Percentage of Principal activities Subsidiaries: BaiJiaHuLian HK Aug 18, 2014 HongKong, China 100 % Holding company Beijing Lexuebang Jan 12, 2015 Beijing, China 100 % Education technical services Wuhan Yuexuebang May 25, 2020 Wuhan, China 100 % Education technical services Beijing Yuexuebang Nov 24, 2020 Beijing, China 100 % Education technical services Shanghai Chuxuebang Network Technology Feb 18, 2021 Shanghai, China 100 % Education technical services VIE: Beijing Gaotu Jun 4, 2014 Beijing, China 100 % Education services VIE's major subsidiaries: Beijing GaoTuYunFan Technology Co., Ltd. May 14, 2015 Beijing, China 100 % Education services Beijing GaoTuYunJi Education Technology Jul 18, 2017 Beijing, China 100 % Education services Zhengzhou GaoTuYunJi Education Jan 19, 2020 Zhengzhou, China 100 % Education services Wuhan GaoTuYunJi Education Apr 1, 2020 Wuhan, China 100 % Education services |
Summary of financial information of VIE and VIE's subsidiaries after elimination of inter-company transactions and balances | The following financial information of the Company’s VIE and VIE’s subsidiaries after the elimination of inter-company transactions and balances as of December 31, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 was included in the accompanying consolidated financial statements: As of December 31 2020 2021 RMB RMB Cash and cash equivalents 20,701 138,672 Restricted cash — 153,230 Short-term investments 1,347,750 1,037,346 Inventory 48,074 15,595 Prepaid expenses and other current assets 605,287 196,246 Total current assets 2,021,812 1,541,089 Operating lease right-of-use assets 660,407 194,162 Property, equipment and software, net 658,592 647,414 Intangible assets 13,219 77 Land use right 28,983 28,178 Long-term investments 5,356 — Goodwill 43,631 331 Deferred tax assets 48,324 — Rental deposit 47,063 17,084 Other non-current assets 950 1,848 Total non-current assets 1,506,525 889,094 Total assets 3,528,337 2,430,183 Accrued expenses and other current liabilities 623,002 417,032 Deferred revenue, current portion 2,724,614 986,993 Operating lease liabilities, current portion 125,986 41,479 Income tax payable 4,654 — Total current liabilities 3,478,256 1,445,504 Deferred revenue, non-current portion 9,125 9,225 Operating lease liabilities, non-current portion 527,692 158,824 Deferred tax liabilities 78,697 71,616 Other payables 26,580 26,580 Total non-current liabilities 642,094 266,245 Total liabilities 4,120,350 1,711,749 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The VIE arrangements - continued Year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues 2,114,855 7,124,744 6,561,747 Net income 211,799 2,406,144 94,795 Net cash generated from (used in) operating activities 1,238,366 3,945,706 ( 580,304 ) Net cash (used in) generated from investing activities ( 1,172,967 ) ( 305,448 ) 121,861 Net cash used in financing activities ( 87,239 ) ( 132,644 ) ( 100,621 ) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of property, equipment and software estimated useful lives | Property, equipment and software are stated at cost less accumulated depreciation and impairment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Electronic equipment 3 years Furniture and office equipment 5 years Software 2 - 10 years Building 35 - 37 years Leasehold improvement Shorter of the lease term or estimated economic life |
Summary of land use rights, net | Land use rights are recorded at cost and amortized on a straight line basis over the term of the land certificates, as follows: Category Estimated useful life Land use right 37 years |
Summary of amortization periods by intangible asset classes | The estimated useful lives of intangible assets are as follows: Category Estimated useful life Student base 1.5 - 2 years Trademark 3 - 10 years |
Summary of disaggregated revenue by types | For the years ended December 31, 2019, 2020 and 2021, all of the Group’s revenues were generated in the PRC. Additionally, all of the revenues for the periods were recognized from contracts with customers. The following table provides information about disaggregated revenue by types, including a reconciliation of the disaggregated revenue with the Group’s reportable segment. As a result of the Regulations previously disclosed, the Group changed its disaggregation of revenue to better disclose the performance of its business following its Business Restructuring. Non-K-12 academic subject tutoring services amounting to RMB 378,265 and RMB 871,856 in 2019 and 2020, previously included in online tutoring services, were reclassified to comprehensive tutoring services and others. Year ended December 31, 2019 2020 2021 RMB RMB RMB Net revenues - Online K-12 academic subject tutoring services 1,706,538 6,237,399 6,000,639 - Comprehensive tutoring services and others 408,317 887,345 561,108 Total net revenues 2,114,855 7,124,744 6,561,747 |
Summary of contract liabilities arising from contract with customers | The following table provides information about the Group's contract liabilities and refund liability arising from contract with customers. Year ended December 31, 2020 2021 RMB RMB Deferred revenue, current portion 2,724,614 986,993 Deferred revenue, non-current portion 9,125 9,225 2,733,739 996,218 Refund liability 120,709 78,630 |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Summary of purchase price allocation | The purchase price was allocated on the date of acquisition as below: Amortization 2020 period RMB Other current assets 123 Intangible assets: Trademark 1,300 3 years Student base 12,400 2 years Goodwill 43,300 Deferred revenue ( 11,700 ) Other current liabilities ( 457 ) Deferred tax liabilities ( 7,567 ) 37,399 |
Summary of unaudited pro forma results of operations | The following summarized unaudited pro forma results of operations for the years ended December 31, 2019 and December 31, 2020 assuming that the acquisition during the year ended December 31, 2020 occurred as of January 1, 2019. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of January 1, 2019, nor is it indicative of future operating results. Year ended December 31, 2019 2020 RMB RMB (Unaudited) (Unaudited) Pro forma net revenues 2,127,834 7,231,144 Pro forma net income (loss) 177,761 ( 1,477,022 ) |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Summary of prepaid expenses and other current assets | Prepaid expenses and other current assets consisted of the following: As of December 31 2020 2021 RMB RMB Prepaid VAT and income tax (1) 312,003 100,396 Prepaid other service fees (2) 342,545 94,587 Receivables from third party payment platform (3) 11,596 49,965 Staff advance 5,813 1,901 Receivables from broker (4) 47,634 4 Others 3,091 3,215 722,682 250,068 (1) Prepaid VAT and income tax consist of (a) VAT input that is expected to offset with VAT output tax or to be transferred out in the future related to 2020 and 2021 and (b) the prepayment of income tax related to 2020. (2) Prepaid other service fees consist of prepayment of advertising fees and cloud server hosting fees. The prepayments of advertising fees and cloud server hosting fees are generally short-term in nature and are amortized over the related service period. (3) Receivables from third party payment platform consist of cash that has been received from course participants but held by the third-party payment platform. The Group subsequently collected the full balance from the third-party payment platform. (4) Amount represents receivable from broker related to employee’s stock option exercises in connection with employees’ tax obligations. In 2020 and 2021, certain employees exercised their stock options for which the Company paid the relevant employee’s tax obligations on their behalf to the appropriate taxing authorities. To settle the employees’ obligations with the Company, the Company’s broker withheld some of the employees’ shares and subsequently sold them in the open market at fair value. The receivable represents the cash to be received from the broker related to the above transaction. |
PROPERTY, EQUIPMENT AND SOFTW_2
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, equipment and software | Property, equipment and software consisted of the following: As of December 31, 2020 2021 RMB RMB Electronic equipment 214,235 196,173 Building 189,965 491,082 Leasehold improvement 80,705 81,377 Furniture and office equipment 21,180 11,975 Software 7,183 12,697 Construction in progress 268,515 10,182 Total 781,783 803,486 Less: Accumulated depreciation ( 77,445 ) ( 123,168 ) Accumulated impairment loss — ( 309 ) 704,338 680,009 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Land Use Rights Disclosure [Abstract] | |
Summary of Land Use Rights | Land use rights consisted of the following: As of December 31, 2020 2021 RMB RMB Land use rights 29,788 29,788 Less: Accumulated amortization ( 805 ) ( 1,610 ) 28,983 28,178 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Investments [Abstract] | |
Summary of long-term investments | As of December 31, 2020 2021 RMB RMB Equity method investments (1) 5,356 — Available-for-sale debt investments (2) 525,373 — 530,729 — (1) In June 2021, the Group disposed all of its ownership in third-party private companies and realized a gain of RMB 494 was recognized under Other income in the consolidated statements of operations during the year ended December 31, 2021. The Group recorded its shares of income in these investments of RMB 1,348 , RMB 63 for the years ended December 31, 2019 and 2020, and shares of loss in these investments of RMB 302 for the period up to disposal date during the year ended December 31, 2021. (2) The Group did not hold any long-term available-for-sale debt investments as of December 31, 2021. |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2021 were presented as follow: As of December 31, 2020 2021 RMB RMB Beginning balance 331 43,631 Addition (1) 43,300 — Accumulated impairment loss — ( 43,300 ) Goodwill, net 43,631 331 (1) Represent the goodwill in the acquisition of Tianjin Puxin in December, 2020, which was described as Note 3. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | The intangible assets consisted of the following: As of December 31, 2020 2021 RMB RMB Student base 12,510 12,510 Trademark 1,675 1,675 Total 14,185 14,185 Less: Accumulated amortization ( 966 ) ( 4,277 ) Accumulated impairment loss — ( 9,831 ) 13,219 77 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Summary of accrued expenses and other current liabilities | The components of accrued expenses and other current liabilities were as follows: As of December 31, 2020 2021 RMB RMB Salary and welfare payable 507,867 361,560 Other accrued expense 118,002 132,184 Other tax payable 93,902 85,788 Refund liability (1) 120,709 78,630 Accrued marketing expense 366,426 27,005 Payable for investments and acquisitions 102,606 1,870 Others 5,990 6,228 1,315,502 693,265 (1) Refund liability represents the estimated amounts of service fee received that is estimated to be refunded as described in Note 2. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of assets measured at fair value on a recurring basis | As of December 31, 2020 and 2021, available-for-sale investments recorded in short-term and long-term investments are measured and recorded at fair value initially and on a recurring basis in periods subsequent to their initial recognition and are as follows: Fair value measurement as of December 31, 2021 Quoted prices Significant Significant Total (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products — 2,199,372 — 2,199,372 Long-term investments: Available-for-sale debt investments - Wealth management products — — — — Total — 2,199,372 — 2,199,372 12. FAIR VALUE MEASUREMENT - continued Measured at fair value on a recurring basis - continued Fair value measurement as of December 31, 2020 Quoted prices Significant Significant Total (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products 104,259 6,623,234 — 6,727,493 Long-term investments: Available-for-sale debt investments - Wealth management products — 525,373 — 525,373 Total 104,259 7,148,607 — 7,252,866 |
Summary of available-for-sale investments | A summary of available-for-sale investments during the years ended December 31, 2020 and 2021 is presented as below: As of December 31, 2021 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products 2,203,630 — 4,258 — 2,199,372 Long-term investments: Available-for-sale debt investments - Wealth management products — — — — — Total 2,203,630 — 4,258 — 2,199,372 12. FAIR VALUE MEASUREMENT - continued Measured at fair value on a recurring basis - continued As of December 31, 2020 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products 6,726,150 1,343 — — 6,727,493 Long-term investments: Available-for-sale debt investments - Wealth management products 522,000 3,373 — — 525,373 Total 7,248,150 4,716 — — 7,252,866 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of assumptions used to determine estimated fair value of options | The Group determined the estimated fair value of the options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm. The following assumptions were used. As of December 31, Grant date 2019 2020 2021 Risk-free interest rate 3.20 % — — Volatility 54.60 % — — Dividend yield — — — Exercise multiples 2.2 - 2.8 — — Life of options (in years) 10 — — Fair value of underlying ordinary shares 72.1 — — |
Summary of options activities | A summary of options activities during the year ended December 31, 2021 is presented below: Number Weighted Weighted Weighted Average Options outstanding at January 1, 2021 7,850,864 0.01 23.53 7.61 3,973,335 Granted — — — Exercised 751,743 0.01 27.13 Forfeited 1,355,260 0.01 39.33 Cancelled 530,700 0.01 72.12 Options outstanding at December 31, 5,213,161 0.01 13.96 6.63 96,622 Options vested and expected to 5,213,161 0.01 13.96 6.63 96,622 Options exercisable as of December 31, 841,611 0.01 5.01 5.70 15,599 |
Summary of the RSUs activity | 13. SHARE-BASED COMPENSATION - continued Restricted Stock Units - continued A summary of the RSUs activity during the year ended December 31, 2021 is presented below: RSUs Unvested balance at January 1, 2021 2,299,282 Granted 4,135,425 Vested 824,723 Forfeited 2,286,139 Cancelled 332,041 Unvested balance at December 31, 2021 2,991,804 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of current and deferred components of the income tax expense | The current and deferred components of the income tax expense appearing in the consolidated statement of operations were as follows: Year ended December 31, 2019 2020 2021 RMB RMB RMB Current tax (expense) benefit ( 16,441 ) 14,578 ( 1 ) Deferred tax (expense) benefit ( 516 ) 20,041 ( 40,948 ) ( 16,957 ) 34,619 ( 40,949 ) |
Summary of principle components of deferred tax assets and deferred taxes liability | The principle components of deferred tax assets were as follows: As of December 31, 2020 2021 RMB RMB Deferred tax assets: Deductible temporary difference related to advertising 458,991 750,576 Net operating loss carrying forwards 160,919 578,623 Transfer of intangible assets 1,679 1,510 Accrued liabilities 300 2,176 Total deferred tax assets 621,889 1,332,885 Less: valuation allowance ( 573,565 ) ( 1,332,885 ) Deferred tax assets net 48,324 — The principle components of deferred tax liabilities were as follows: As of December 31, 2020 2021 RMB RMB Deferred tax liabilities Building and land use right 72,447 71,107 Intangible assets 3,287 — Deferred revenue 2,750 — Unrecognized gains of available-for-sale investments 213 509 Total deferred tax liabilities 78,697 71,616 |
Summary of movements of valuation allowance | The movements of valuation allowance for the years end December 31, 2019, 2020 and 2021 were as follows: Year ended December 31, 2019 2020 2021 RMB RMB RMB Balance at beginning of the period 42,797 40,352 573,565 Acquisitions — 4,987 — Additions 36,138 529,915 759,320 Reversal ( 38,583 ) ( 1,689 ) — Balance at end of the period 40,352 573,565 1,332,885 |
Sumamry of reconciliation of effective tax rate and statutory income tax rate | The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations was as follow: Year ended December 31, 2019 2020 2021 RMB RMB RMB Income (loss) before provision for income taxes 242,239 ( 1,427,612 ) ( 3,062,214 ) Income tax (expense) benefit computed at an 25 % ( 60,560 ) 356,903 765,554 Effect of permanent differences ( 11,010 ) 55,935 ( 8,186 ) Effect of research and development super-deduction 38,078 88,881 89,287 Effect of preferential tax rate 10,399 62,404 ( 129,026 ) Effect on tax rates in different tax jurisdictions 3,691 ( 1,278 ) 742 Change in valuation allowance 2,445 ( 528,226 ) ( 759,320 ) ( 16,957 ) 34,619 ( 40,949 ) |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of computation of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: Year ended December 31, 2019 2020 2021 RMB RMB RMB Basic net income (loss) per share calculation Numerator: Net income (loss) 226,630 ( 1,392,930 ) ( 3,103,465 ) Less: Accretion on Series A Preferred Shares 16,772 — — Less: Undistributed earnings allocated to 21,698 — — Net income (loss) attributed to ordinary shareholders 188,160 ( 1,392,930 ) ( 3,103,465 ) Denominator: Weighted average ordinary shares outstanding used in 132,400,941 159,725,779 170,790,979 Net income (loss) per ordinary share attributable to 1.42 ( 8.72 ) ( 18.17 ) Diluted net income (loss) per ordinary share calculation Denominator: Weighted average ordinary shares basic outstanding 132,400,941 159,725,779 170,790,979 Effect of potentially diluted stock options 6,998,647 — — Effect of potentially diluted RSUs 78,310 — — Weighted average ordinary shares outstanding used in 139,477,898 159,725,779 170,790,979 Net income (loss) per ordinary share attributable to 1.35 ( 8.72 ) ( 18.17 ) 16. NET INCOME (LOSS) PER SHARE - continued For the years ended December 31, 2019, 2020 and 2021, the following shares, share options or RSUs outstanding were excluded from the calculation of diluted net income (loss) per ordinary share, as their inclusion would have been anti-dilutive for the periods prescribed. Year ended December 31, 2019 2020 2021 Shares issuable upon exercise of share options — — — Shares issuable upon conversion of RSUs 512,847 64,576 12,794 |
RELATED PARTY TRANSACTION (Tabl
RELATED PARTY TRANSACTION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of related parties | (1) Related parties Name of related parties Relationship with the Group Beijing Youlian Global Education (1) Equity method investment investee (1) Beijing Youlian was dissolved in June 2020. |
Summary of significant balances and transactions | (2) The significant transactions between the Group and its related parties were as follows: Other than as disclosed elsewhere in these consolidated financial statements, the Group had the following significant related party transactions: Revenue 2019 2020 2021 RMB RMB RMB Beijing Youlian (1) 566 — — Total 566 — — Expense 2019 2020 2021 RMB RMB RMB Beijing Youlian (2) 3,569 1,457 — Total 3,569 1,457 — (1) The Group recognized revenue from providing technical service. (2) The Group recognized expense from receiving advertising service provided by Beijing Youlian. |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of supplementary information related to operating leases | Year ended 2020 2021 RMB RMB Cash paid for amounts included in the measurement of Operating cash flows from operating leases 141,942 156,600 Non-cash right-of-use assets in exchange for new lease Operating leases 647,029 39,069 Weighted average remaining lease term: Operating leases 4.6 4.3 Weighted average discount rate: Operating leases 6.6 % 6.5 % |
Future minimum payments under non-cancelable operating leases | The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ending December 31: RMB Year ending December 31, 2022 108,998 2023 107,372 2024 104,373 2025 75,460 2026 31,160 2027 and thereafter 15,439 Less: imputed interest ( 86,757 ) Total 356,045 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | |
Total assets | ¥ 5,024,666 | ¥ 10,685,792 | $ 788,481 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Total assets | ¥ 2,430,183 | ¥ 3,528,337 | |
Assets, Total [Member] | |||
Percentage of consolidated total asset accounted by VIE and its subsidiaries | 48.37% | 33.02% | |
Liabilities, Total [Member] | |||
Percentage of consolidated total liability accounted by VIE and its subsidiaries | 79.85% | 83.14% | |
Exclusive Call Option Agreement [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Maximum [Member] | |||
Total assets | ¥ 100 |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Summary of subsidiaries, VIE and VIE's subsidiaries (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Subsidiaries [Member] | BaiJiaHuLian HK [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Aug. 18, 2014 |
Place of establishment | HongKong, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Holding company |
Subsidiaries [Member] | Beijing Lexuebang [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Jan. 12, 2015 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education technical services |
Subsidiaries [Member] | Wuhan Yuexuebang [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | May 25, 2020 |
Place of establishment | Wuhan, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education technical services |
Subsidiaries [Member] | Beijing Yuexuebang [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Nov. 24, 2020 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education technical services |
Subsidiaries [Member] | Shanghai Chuxuebang Network Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Feb. 18, 2021 |
Place of establishment | Shanghai, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education technical services |
Variable Interest Entity, Primary Beneficiary [Member] | Beijing Gaotu [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Jun. 4, 2014 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Beijing GaoTuYunFan Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | May 14, 2015 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Beijing GaoTuYunJi Education Technology Co., Ltd. [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Jul. 18, 2017 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Zhengzhou GaoTuYunJi Education Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Jan. 19, 2020 |
Place of establishment | Zhengzhou, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Wuhan GaoTuYunJi Education Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Apr. 1, 2020 |
Place of establishment | Wuhan, China |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Education services |
ORGANIZATION AND PRINCIPAL AC_5
ORGANIZATION AND PRINCIPAL ACTIVITIES - Summary of financial information of VIE and VIE's subsidiaries after elimination of inter-company transactions and balances (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 728,934 | ¥ 355,224 | $ 114,386 | ||
Restricted cash | 168,189 | 0 | 26,393 | ||
Short-term Investments | 2,774,000 | 7,331,268 | 435,301 | ||
Inventory | 15,595 | 48,074 | 2,447 | ||
Prepaid expenses and other current assets | 250,068 | 722,682 | 39,241 | ||
Total current assets | 3,936,786 | 8,457,248 | 617,768 | ||
Operating lease right-of-use assets | 353,877 | 806,591 | 55,531 | ||
Property, equipment and software, net | 680,009 | 704,338 | 106,708 | ||
Intangible assets | 77 | 13,219 | 12 | ||
Long-term Investments | 0 | 530,729 | 0 | ||
Goodwill | 331 | 43,631 | 52 | ||
Deferred tax assets | 0 | 48,324 | 0 | ||
Rental deposit | 22,544 | 51,499 | 3,538 | ||
Other non-current assets | 2,864 | 1,230 | 450 | ||
TOTAL ASSETS | 5,024,666 | 10,685,792 | 788,481 | ||
Accrued expenses and other current liabilities | 693,265 | 1,315,502 | 108,789 | ||
Deferred revenue, current portion | 986,993 | 2,724,614 | 154,881 | ||
Operating lease liabilities, current portion | 80,010 | 152,622 | 12,555 | ||
Income tax payable | 0 | 4,654 | 0 | ||
Total current liabilities | 1,760,268 | 4,197,392 | 276,225 | ||
Deferred revenue, non-current portion | 9,225 | 9,125 | 1,448 | ||
Operating lease liabilities, non-current portion | 276,035 | 644,143 | 43,316 | ||
Deferred tax liabilities | 71,616 | 78,697 | 11,238 | ||
Other payables | 26,580 | 26,580 | 4,171 | ||
TOTAL LIABILITIES | 2,143,724 | 4,955,937 | $ 336,398 | ||
Net revenues | 6,561,747 | $ 1,029,681 | 7,124,744 | ¥ 2,114,855 | |
Net income | (3,103,465) | (487,000) | (1,392,930) | 226,630 | |
Net cash generated from (used in) operating activities | (4,185,807) | (656,845) | 603,273 | 1,285,054 | |
Net cash (used in) generated from investing activities | 4,812,502 | 755,188 | (5,596,304) | (2,504,566) | |
Net cash used in financing activities | (100,614) | $ (15,789) | 5,272,100 | 1,246,065 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 138,672 | 20,701 | |||
Restricted cash | 153,230 | 0 | |||
Short-term Investments | 1,037,346 | 1,347,750 | |||
Inventory | 15,595 | 48,074 | |||
Prepaid expenses and other current assets | 196,246 | 605,287 | |||
Total current assets | 1,541,089 | 2,021,812 | |||
Operating lease right-of-use assets | 194,162 | 660,407 | |||
Property, equipment and software, net | 647,414 | 658,592 | |||
Intangible assets | 77 | 13,219 | |||
Land use right | 28,178 | 28,983 | |||
Long-term Investments | 0 | 5,356 | |||
Goodwill | 331 | 43,631 | |||
Deferred tax assets | 0 | 48,324 | |||
Rental deposit | 17,084 | 47,063 | |||
Other non-current assets | 1,848 | 950 | |||
Total non-current assets | 889,094 | 1,506,525 | |||
TOTAL ASSETS | 2,430,183 | 3,528,337 | |||
Accrued expenses and other current liabilities | 417,032 | 623,002 | |||
Deferred revenue, current portion | 986,993 | 2,724,614 | |||
Operating lease liabilities, current portion | 41,479 | 125,986 | |||
Income tax payable | 0 | 4,654 | |||
Total current liabilities | 1,445,504 | 3,478,256 | |||
Deferred revenue, non-current portion | 9,225 | 9,125 | |||
Operating lease liabilities, non-current portion | 158,824 | 527,692 | |||
Deferred tax liabilities | 71,616 | 78,697 | |||
Other payables | 26,580 | 26,580 | |||
Total non-current liabilities | 266,245 | 642,094 | |||
TOTAL LIABILITIES | 1,711,749 | 4,120,350 | |||
Net revenues | 6,561,747 | 7,124,744 | 2,114,855 | ||
Net income | (94,795) | 2,406,144 | 211,799 | ||
Net cash generated from (used in) operating activities | (580,304) | 3,945,706 | 1,238,366 | ||
Net cash (used in) generated from investing activities | 121,861 | (305,448) | (1,172,967) | ||
Net cash used in financing activities | ¥ (100,621) | ¥ (132,644) | ¥ (87,239) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥)Customer | Dec. 31, 2021USD ($)Customer | Dec. 31, 2020CNY (¥)Customer | Dec. 31, 2019CNY (¥)Customer | Dec. 31, 2021USD ($) | |
Convenience translation rate of USD1.00 | 6.3726 | 6.3726 | |||
Held-to-maturity securities | ¥ 574,628,000 | ¥ 603,775,000 | |||
Impairment losses on long-lived assets | 52,544,000 | $ 8,245 | 0 | ¥ 0 | |
Impairment losses on equity method investments | 0 | 0 | 0 | ||
Revenue recognized that was included in deferred revenue balance | 2,668,141,000 | 1,297,088,000 | |||
Remaining performance obligations | 996,218,000 | ||||
Remaining performance obligations, expected to be recognized over the next 12 months | 986,993,000 | ||||
Remaining performance obligations, expected to be recognized over the second 12 months | 6,185,000 | ||||
Remaining performance obligations, expected to be recognized thereafter | 3,040,000 | ||||
Government subsidies | 9,350,000 | 6,941,000 | ¥ 310,000 | ||
Cash and cash equivalents | ¥ 728,934,000 | ¥ 355,224,000 | $ 114,386 | ||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Available-for-sale debt investments recorded with unrealized loss | ¥ 4,258,000 | ||||
Available-for-sale debt investments recorded with unrealized gain | ¥ 4,716,000 | ||||
Goodwill impairment loss | 43,300,000 | $ 6,795 | 0 | ¥ 0 | |
Capitalized Contract Cost, Impairment Loss | 34,528,000 | ||||
Contract costs | ¥ 0 | 77,668,000 | |||
Operating Lease, Term | 8 years | 8 years | |||
Uncertain income tax position | An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. | An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. | |||
Net revenues | ¥ 6,561,747,000 | $ 1,029,681 | 7,124,744,000 | 2,114,855,000 | |
Minimum [Member] | |||||
Equity method investment, ownership percentage | 20.00% | 20.00% | |||
Maximum [Member] | |||||
Equity method investment, ownership percentage | 50.00% | 50.00% | |||
Non-K-12 Academic Subject Tutoring Services | |||||
Net revenues | 871,856,000 | 378,265,000 | |||
Selling and marketing expense [Member] | |||||
Capitalized contract costs amortization | ¥ 212,880,000 | 185,787,000 | 156,710,000 | ||
Other Income [Member] | |||||
Value added tax exemption income | ¥ 256,378,000 | ¥ 0 | |||
Other Expense [Member] | |||||
Value added tax exemption income | ¥ 16,224,000 | ||||
Small Scale VAT Payer Entities [Member] | Educational services [Member] | |||||
Value added tax rate | 3.00% | 3.00% | |||
Small Scale VAT Payer Entities [Member] | Educational services [Member] | March 1, 2020 to December 31, 2021 | |||||
Preferential value added tax rate | 1.00% | 1.00% | |||
General VAT Payer Entities [Member] | Educational services [Member] | |||||
Value added tax rate | 6.00% | 6.00% | |||
Revenue Benchmark | |||||
Number of customers whose revenue individually represent greater than 10% of the total net revenues | Customer | 0 | 0 | 0 | 0 | |
CNY | |||||
Cash and cash equivalents | ¥ 524,298,000 | ¥ 151,009,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of property, equipment and software estimated useful lives (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Electronic equipment | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 3 years |
Furniture and office equipment | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 5 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 2 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 10 years |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 35 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 37 years |
Leasehold improvement | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives description | Shorter of the lease term or estimated economic life |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of land use rights, net (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Land use right | |
Property, Plant and Equipment [Line Items] | |
Property, equipment and software estimated useful lives | 37 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of amortization periods by intangible asset classes (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Student base | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets estimated useful lives | 1 year 6 months |
Student base | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets estimated useful lives | 2 years |
Trademark | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets estimated useful lives | 3 years |
Trademark | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets estimated useful lives | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of disaggregated revenue by types (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 6,561,747 | $ 1,029,681 | ¥ 7,124,744 | ¥ 2,114,855 |
Online K 12 Academic Subject Tutoring Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,000,639 | 6,237,399 | 1,706,538 | |
Comprehensive Tutoring Services and Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 561,108 | ¥ 887,345 | ¥ 408,317 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of contract liabilities arising from contract with customers (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue, current portion | ¥ 986,993 | $ 154,881 | ¥ 2,724,614 | |
Deferred revenue, non-current portion | 9,225 | $ 1,448 | 9,125 | |
Contract liabilities arising from contract with customers | 996,218 | 2,733,739 | ||
Refund liability | [1] | ¥ 78,630 | ¥ 120,709 | |
[1] | Refund liability represents the estimated amounts of service fee received that is estimated to be refunded as described in Note 2. |
BUSINESS ACQUISITION - Summary
BUSINESS ACQUISITION - Summary Of Purchase Price Allocation (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | ¥ 43,631 | ¥ 331 | $ 52 |
Tianjin Puxin [Member] | |||
Business Acquisition [Line Items] | |||
Other current assets | 123 | ||
Intangible assets | 13,700 | ||
Goodwill | 43,300 | ||
Deferred revenue | (11,700) | ||
Other current liabilities | (457) | ||
Deferred tax liabilities | (7,567) | ||
Total | 37,399 | ||
Tianjin Puxin [Member] | Trademarks [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | ¥ 1,300 | ||
Intangible assets - Amortization period | 3 years | ||
Tianjin Puxin [Member] | Student Base [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | ¥ 12,400 | ||
Intangible assets - Amortization period | 2 years |
BUSINESS ACQUISITION - Addition
BUSINESS ACQUISITION - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | ¥ 43,631 | ¥ 331 | $ 52 |
Tianjin Puxin [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 100.00% | ||
Business combination consideration transferred | ¥ 37,399 | ||
Payment to acquire business | 35,529 | ||
Intangible assets | 13,700 | ||
Goodwill | ¥ 43,300 | ||
Revenue of the acquiree after acquisition percentage | 0.05% | ||
Total assets of the acquiree after acquisition percentage | 0.15% |
BUSINESS ACQUISITION - Summar_2
BUSINESS ACQUISITION - Summary of unaudited pro forma results of operations (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Pro forma net revenues | ¥ 7,231,144 | ¥ 2,127,834 |
Pro forma net income (loss) | ¥ (1,477,022) | ¥ 177,761 |
ASSETS ACQUISITION - Additional
ASSETS ACQUISITION - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Asset Acquisition [Line Items] | |||||
Payment to acquire assets gross | ¥ 272,323 | $ 42,733 | ¥ 284,072 | ¥ 61,267 | |
Zhengzhou Kaitong [Member] | Real Estate [Member] | |||||
Asset Acquisition [Line Items] | |||||
Assets acquisition consideration transferred | ¥ 333,809 | ||||
Payment to acquire assets gross | 228,089 | ||||
Assets acquisition, consideration transferred, liabilities incurred | ¥ 105,720 | ||||
Long-term purchase commitment amount | ¥ 26,580 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Summary of prepaid expenses and other current assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Prepaid VAT and income tax | [1] | ¥ 100,396 | ¥ 312,003 |
Prepaid other service fees | [2] | 94,587 | 342,545 |
Staff advance | 1,901 | 5,813 | |
Others | 3,215 | 3,091 | |
Total | 250,068 | 722,682 | |
Receivable from third party payment platform [Member] | |||
Receivables from third party payment platform | [3] | 49,965 | 11,596 |
Receivable from brokers [Member] | |||
Receivables from broker | [4] | ¥ 4 | ¥ 47,634 |
[1] | Prepaid VAT and income tax consist of (a) VAT input that is expected to offset with VAT output tax or to be transferred out in the future related to 2020 and 2021 and (b) the prepayment of income tax related to 2020. | ||
[2] | Prepaid other service fees consist of prepayment of advertising fees and cloud server hosting fees. The prepayments of advertising fees and cloud server hosting fees are generally short-term in nature and are amortized over the related service period. | ||
[3] | Receivables from third party payment platform consist of cash that has been received from course participants but held by the third-party payment platform. The Group subsequently collected the full balance from the third-party payment platform. | ||
[4] | Amount represents receivable from broker related to employee’s stock option exercises in connection with employees’ tax obligations. In 2020 and 2021, certain employees exercised their stock options for which the Company paid the relevant employee’s tax obligations on their behalf to the appropriate taxing authorities. To settle the employees’ obligations with the Company, the Company’s broker withheld some of the employees’ shares and subsequently sold them in the open market at fair value. The receivable represents the cash to be received from the broker related to the above transaction. |
PROPERTY, EQUIPMENT AND SOFTW_3
PROPERTY, EQUIPMENT AND SOFTWARE, NET - Summary of property, equipment and software (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | ¥ 803,486 | ¥ 781,783 | |
Less: Accumulated depreciation | (123,168) | (77,445) | |
Less: Accumulated impairment loss | (309) | 0 | |
Property, equipment and software, Net | 680,009 | $ 106,708 | 704,338 |
Electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 196,173 | 214,235 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 491,082 | 189,965 | |
Leasehold improvement | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 81,377 | 80,705 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 11,975 | 21,180 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 12,697 | 7,183 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | ¥ 10,182 | ¥ 268,515 |
PROPERTY, EQUIPMENT AND SOFTW_4
PROPERTY, EQUIPMENT AND SOFTWARE, NET - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expenses | ¥ 108,446 | $ 17,018 | ¥ 55,751 | ¥ 11,919 |
Impairment losses on property, equipment and software | 52,544 | $ 8,245 | 0 | ¥ 0 |
Property, equipment and software | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment losses on property, equipment and software | ¥ 28,918 | ¥ 0 |
LAND USE RIGHTS, NET - Summary
LAND USE RIGHTS, NET - Summary of Land Use Rights (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Land Use Rights [Line Items] | ||
Land use rights | ¥ 29,788 | ¥ 29,788 |
Less: Accumulated amortization | (1,610) | (805) |
Land use rights net | ¥ 28,178 | ¥ 28,983 |
LAND USE RIGHTS, NET - Addition
LAND USE RIGHTS, NET - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Land Use Rights Disclosure [Line Items] | |||
Amortization expenses for land use right | ¥ 805 | ¥ 805 | ¥ 0 |
Future Amortization [Member] | |||
Land Use Rights Disclosure [Line Items] | |||
Expected amortization expense of land use rights in next twelve months | 805 | ||
Expected amortization expense of land use rights year two | 805 | ||
Expected amortization expense of land use rights year three | 805 | ||
Expected amortization expense of land use rights year four | 805 | ||
Expected amortization expense of land use rights year five | 805 | ||
Expected amortization expense of land use rights thereafter | ¥ 805 |
LONG-TERM INVESTMENTS - Summary
LONG-TERM INVESTMENTS - Summary of long-term investments (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | [1] | ¥ 0 | ¥ 5,356 | |
Available-for-sale debt investments | [2] | 0 | 525,373 | |
Total | ¥ 0 | $ 0 | ¥ 530,729 | |
[1] | In June 2021, the Group disposed all of its ownership in third-party private companies and realized a gain of RMB 494 was recognized under Other income in the consolidated statements of operations during the year ended December 31, 2021. The Group recorded its shares of income in these investments of RMB 1,348 , RMB 63 for the years ended December 31, 2019 and 2020, and shares of loss in these investments of RMB 302 for the period up to disposal date during the year ended December 31, 2021. | |||
[2] | The Group did not hold any long-term available-for-sale debt investments as of December 31, 2021. |
LONG-TERM INVESTMENTS - Summa_2
LONG-TERM INVESTMENTS - Summary of long-term investments (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Shares of (loss) income from equity method investments | ¥ (302) | $ (47) | ¥ 63 | ¥ 1,348 |
Third Party Investments [Member] | ||||
Shares of (loss) income from equity method investments | (302) | ¥ 63 | ¥ 1,348 | |
Third Party Investments [Member] | Other Income [Member] | ||||
Realized gain from equity method investments | ¥ 494 |
GOODWILL - Summary of carrying
GOODWILL - Summary of carrying amount of goodwill (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | ||
Goodwill [Line Items] | ||||
Beginning balance | ¥ 43,631 | ¥ 331 | ||
Addition | [1] | 0 | 43,300 | |
Accumulated impairment loss | (43,300) | 0 | ||
Goodwill, net | ¥ 331 | $ 52 | ¥ 43,631 | |
[1] | Represent the goodwill in the acquisition of Tianjin Puxin in December, 2020, which was described as Note 3. |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment loss | ¥ 43,300 | $ 6,795 | ¥ 0 | ¥ 0 |
INTANGIBLE ASSETS - Summary of
INTANGIBLE ASSETS - Summary of intangible assets (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | ¥ 14,185 | ¥ 14,185 |
Less: Accumulated amortization | (4,277) | (966) |
Accumulated impairment loss | (9,831) | 0 |
Finite-Lived Intangible Assets, Net | 77 | 13,219 |
Student Base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 12,510 | 12,510 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | ¥ 1,675 | ¥ 1,675 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | ¥ 3,311 | ¥ 656 | ¥ 137 |
Expected amortization expense of intangible assets in next twelve months | 20 | ||
Expected amortization expense of intangible assets year two | 8 | ||
Expected amortization expense of intangible assets year three | 8 | ||
Expected amortization expense of intangible assets year four | 8 | ||
Expected amortization expense of intangible assets year five | 8 | ||
Expected amortization expense of intangible assets thereafter | 25 | ||
Impairment losses on intangible assets | ¥ 9,831 | ¥ 0 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Summary of accrued expenses and other current liabilities (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Payables and Accruals [Abstract] | ||||
Salary and welfare payable | ¥ 361,560 | ¥ 507,867 | ||
Other accrued expense | 132,184 | 118,002 | ||
Other tax payable | 85,788 | 93,902 | ||
Refund liability | [1] | 78,630 | 120,709 | |
Accrued marketing expense | 27,005 | 366,426 | ||
Payable for investments and acquisitions | 1,870 | 102,606 | ||
Others | 6,228 | 5,990 | ||
Accrued expenses and other current liabilities | ¥ 693,265 | $ 108,789 | ¥ 1,315,502 | |
[1] | Refund liability represents the estimated amounts of service fee received that is estimated to be refunded as described in Note 2. |
FAIR VALUE MEASUREMENT - Additi
FAIR VALUE MEASUREMENT - Additional Information (Detail) ¥ in Thousands | Dec. 31, 2021CNY (¥) |
Fair Value Disclosures [Abstract] | |
Available for sale debt securities, maturity within one year | ¥ 2,199,372 |
Available for sale debt securities maturity two to three years | ¥ 0 |
FAIR VALUE MEASUREMENT - Summar
FAIR VALUE MEASUREMENT - Summary of assets measured at fair value on a recurring basis (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | ¥ 2,199,372 | ¥ 6,727,493 | |
Available-for-sale debt investments-Long term investment | [1] | 0 | 525,373 |
Available-for-sale debt investments | |||
Unrealized gains | 4,716 | ||
Unrealized loss | 4,258 | ||
Available-for-sale Investments [Member] | |||
Available-for-sale debt investments | |||
Original cost | 2,203,630 | 7,248,150 | |
Unrealized gains | 0 | 4,716 | |
Unrealized loss | 4,258 | 0 | |
Provision for decline in value | 0 | 0 | |
Available-for-sale debt investments-Total | 2,199,372 | 7,252,866 | |
Available-for-sale Investments [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 2,199,372 | 6,727,493 | |
Available-for-sale debt investments | |||
Original cost | 2,203,630 | 6,726,150 | |
Unrealized gains | 0 | 1,343 | |
Unrealized loss | 4,258 | 0 | |
Provision for decline in value | 0 | 0 | |
Available-for-sale Investments [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Long term investment | 0 | 525,373 | |
Available-for-sale debt investments | |||
Debt Securities, Available-for-sale, Amortized Cost, Noncurrent | 0 | 522,000 | |
Unrealized gains | 0 | 3,373 | |
Unrealized loss | 0 | 0 | |
Provision for decline in value | 0 | 0 | |
Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | |||
Available-for-sale debt investments | |||
Available-for-sale debt investments-Total | 2,199,372 | 7,252,866 | |
Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 2,199,372 | 6,727,493 | |
Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Long term investment | 0 | 525,373 | |
Quoted Prices in Active Market for Identical Assets [Member] | Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | |||
Available-for-sale debt investments | |||
Available-for-sale debt investments-Total | 0 | 104,259 | |
Quoted Prices in Active Market for Identical Assets [Member] | Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 0 | 104,259 | |
Quoted Prices in Active Market for Identical Assets [Member] | Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Long term investment | 0 | 0 | |
Significant Other Observable Inputs [Member] | Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | |||
Available-for-sale debt investments | |||
Available-for-sale debt investments-Total | 2,199,372 | 7,148,607 | |
Significant Other Observable Inputs [Member] | Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 2,199,372 | 6,623,234 | |
Significant Other Observable Inputs [Member] | Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Long term investment | 0 | 525,373 | |
Significant Unobservable Inputs [Member] | Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | |||
Available-for-sale debt investments | |||
Available-for-sale debt investments-Total | 0 | 0 | |
Significant Unobservable Inputs [Member] | Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 0 | 0 | |
Significant Unobservable Inputs [Member] | Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Long term investment | ¥ 0 | ¥ 0 | |
[1] | The Group did not hold any long-term available-for-sale debt investments as of December 31, 2021. |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 10 years | |||
Granted | 0 | |||
Share based compensation expense | ¥ 345,259 | ¥ 238,446 | ¥ 60,237 | |
Forfeited | 1,355,260 | |||
Cancelled | 530,700 | |||
Cash consideration | ¥ 24,370 | |||
Incremental compensation cost | ¥ 24,370 | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expenses related to options, weighted average period | 3 years 2 months 4 days | |||
Restricted stock units granted | 4,135,425 | |||
Exercise price per share of restricted stock units Granted | ¥ 0 | |||
Restricted stock units agggregate fair value | ¥ 558,876 | ¥ 672,010 | ¥ 117,664 | |
Restricted stock units unrecognised compensation cost | ¥ 244,109 | |||
Restricted stock units weighted aveage grant date fair value | ¥ 135.14 | ¥ 391.35 | ¥ 153.40 | |
Forfeited | 2,286,139 | |||
Cancelled | 332,041 | |||
Cancelled without concurrent grant | 1,613 | |||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of options vested | ¥ 19,134 | ¥ 21,081 | ¥ 14,948 | |
Unrecognized compensation expenses related to options | ¥ 30,511 | |||
Unrecognized compensation expenses related to options, weighted average period | 6 years 7 months 17 days | |||
RSUs Settled with Cash | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cancelled | 330,428 | |||
Minimum | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units vesting period | 0 years | |||
Maximum | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units vesting period | 6 years | |||
Share Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum aggregate number of ordinary shares that may be issued pursuant to all awards | 28,400,000 | |||
Description of increase in shares reserved | The shares reserved may be increased automatically if and whenever the unissued shares reserved accounts for less than one percent (1%) of the total then issued and outstanding shares, so that after the increase, the shares unissued and reserved under the Plan immediately after each such increase shall equal to five percent (5%) of the then issued and outstanding shares. | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Share Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 0 years | |||
Share Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 10 years |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of assumptions used to determine estimated fair value of options (Detail) | 12 Months Ended | ||
Dec. 31, 2021¥ / shares | Dec. 31, 2020¥ / shares | Dec. 31, 2019¥ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.00% | 0.00% | 3.20% |
Volatility | 0.00% | 0.00% | 54.60% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Exercise multiples | 0 | 0 | |
Life of options (in years) | 10 years | ||
Fair value of underlying ordinary shares | ¥ 0 | ¥ 0 | ¥ 72.1 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiples | 2.2 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiples | 2.8 |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of options activities (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options - Beginning Balance | 7,850,864 | |
Number of options - Granted | 0 | |
Number of options - Exercised | 751,743 | |
Number of options - Forfeited | 1,355,260 | |
Number of options - Cancelled | 530,700 | |
Number of options - Ending Balance | 5,213,161 | 7,850,864 |
Number of options - Options vested and expected to vest | 5,213,161 | |
Number of options - Options exercisable | 841,611 | |
Weighted average exercise price - Beginning Balance | ¥ 0.01 | |
Weighted average exercise price - Granted | 0 | |
Weighted average exercise price - Exercised | 0.01 | |
Weighted average exercise price - Forfeited | 0.01 | |
Weighted average exercise price - Cancelled | 0.01 | |
Weighted average exercise price - Ending Balance | 0.01 | ¥ 0.01 |
Weighted average exercise price - Options vested and expected to vest | 0.01 | |
Weighted average exercise price - Options exercisable | 0.01 | |
Weighted average grant date fair value - Beginning Balance | 23.53 | |
Weighted average grant date fair value - Granted | ¥ 0 | |
Weighted average grant date fair value - Exercised | 27.13 | |
Weighted average grant date fair value - Forfeited | ¥ 39.33 | |
Weighted average grant date fair value - Cancelled | 72.12 | |
Weighted average grant date fair value - Ending Balance | 13.96 | ¥ 23.53 |
Weighted average grant date fair value - Options vested and expected to vest | 13.96 | |
Weighted average grant date fair value - Options exercisable | ¥ 5.01 | |
Weighted average remaining contractual term (years) | 6 years 7 months 17 days | 7 years 7 months 9 days |
Weighted average remaining contractual term (years) - Options vested and expected to vest | 6 years 7 months 17 days | |
Weighted average remaining contractual term (years) - Options exercisable | 5 years 8 months 12 days | |
Aggregate intrinsic value - Outstanding | ¥ 96,622 | ¥ 3,973,335 |
Aggregate intrinsic value - Options vested and expected to vest | 96,622 | |
Aggregate intrinsic value - Options exercisable | ¥ 15,599 |
SHARE-BASED COMPENSATION - Su_3
SHARE-BASED COMPENSATION - Summary of RSUs Activity (Detail) - RSUs [Member] | 12 Months Ended |
Dec. 31, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested balance at January 1, 2021 | 2,299,282 |
Granted | 4,135,425 |
Vested | 824,723 |
Forfeited | 2,286,139 |
Cancelled | 332,041 |
Unvested balance at December 31, 2021 | 2,991,804 |
ORDINARY SHARES - Additional In
ORDINARY SHARES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | May 01, 2020shares | Jun. 06, 2019CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | May 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | May 01, 2022USD ($) |
Ordinary shares, shares outstanding | 157,138,000 | ||||||||||
Proceeds from Issuance Initial Public Offering | ¥ 0 | $ 0 | ¥ 0 | ¥ 1,366,860 | |||||||
Stock repurchased during period value | ¥ | 282,543 | 86,739 | |||||||||
Proceeds from issuance of stock | ¥ 0 | $ 0 | ¥ 5,687,251 | 0 | |||||||
Reissuance of treasury stock for share-based compensation | 365,358 | 365,358 | 807,184 | ||||||||
May 2020 Share Repurchase Program [Member] | |||||||||||
Stock repurchase program authorized amount | $ | $ 150,000 | ||||||||||
Treasury Stock [Member] | |||||||||||
Stock repurchased during period value | ¥ | ¥ 282,543 | ¥ 86,739 | |||||||||
Shares Withheld for Tax Withholding Obligation | 418,298 | 418,298 | |||||||||
Employees' tax obligations | ¥ 86,739 | $ 12,459 | |||||||||
IPO And Overallotment [Member] | |||||||||||
Proceeds from Issuance Initial Public Offering | ¥ | ¥ 1,366,860 | ||||||||||
Payment of stock issuance costs | ¥ | ¥ 31,791 | ||||||||||
ADS [Member] | IPO [Member] | |||||||||||
Common stock issued | 20,532,000 | ||||||||||
Common Class A [Member] | |||||||||||
Ordinary shares, shares outstanding | 83,832,712 | 96,455,774 | 98,032,240 | 98,032,240 | 96,455,774 | ||||||
Common stock voting rights | Each Class A ordinary share is entitled to one vote | Each Class A ordinary share is entitled to one vote | |||||||||
Common stock terms of conversion from class to the another | Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. | Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. | |||||||||
Common Class A [Member] | May 2020 Share Repurchase Program [Member] | |||||||||||
Stock repurchased during period shares | 754,244 | ||||||||||
Stock repurchased during period value | ¥ | ¥ 282,543 | ||||||||||
Common Class A [Member] | IPO [Member] | |||||||||||
Common stock issued | 13,688,000 | ||||||||||
Common Class A [Member] | Private Placement [Member] | |||||||||||
Common stock issued | 10,611,072 | ||||||||||
Proceeds from issuance of stock | ¥ | ¥ 5,687,251 | ||||||||||
Common Class A [Member] | Private Placement [Member] | Management | |||||||||||
Common stock issued | 2,455,800 | ||||||||||
Proceeds from issuance of stock | ¥ | ¥ 1,315,919 | ||||||||||
Common Class B [Member] | |||||||||||
Ordinary shares, shares outstanding | 73,305,288 | 73,305,288 | 73,305,288 | 73,305,288 | 73,305,288 | ||||||
Common stock voting rights | each Class B ordinary share is entitled to ten votes | each Class B ordinary share is entitled to ten votes | |||||||||
Common stock terms of conversion from class to the another | Each class B ordinary is convertible into one Class A ordinary share | Each class B ordinary is convertible into one Class A ordinary share | |||||||||
ADR [Member] | May 2020 Share Repurchase Program [Member] | |||||||||||
Stock repurchased during period shares | 1,131,366 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021HKD ($) | Dec. 31, 2021CNY (¥)¥ / shares | Dec. 31, 2020HKD ($) | Dec. 31, 2020CNY (¥)¥ / shares | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2024 | Dec. 31, 2023 | |
Income Tax Disclosure [Line Items] | ||||||||||||
Income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |||||||
Net operating loss carried forward | ¥ | ¥ 2,758,363 | |||||||||||
Increase Decrease in net income/loss per ordinary share-basic | ¥ / shares | ¥ 0.76 | ¥ 0.39 | ¥ 0.08 | |||||||||
Uncertain tax positions | ¥ | ¥ 0 | ¥ 0 | ||||||||||
Increase Decrease in net income/loss per ordinary share-diluted | ¥ / shares | ¥ 0.76 | ¥ 0.39 | ¥ 0.07 | |||||||||
Exemption For Income Tax Holiday [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Increase (decrease) in income tax expenses | ¥ | ¥ (129,026) | ¥ 62,404 | ¥ 10,399 | |||||||||
Minimum | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Net operating loss carried forward, expire date | Dec. 31, 2022 | Dec. 31, 2022 | ||||||||||
Maximum | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Net operating loss carried forward, expire date | Dec. 31, 2031 | Dec. 31, 2031 | ||||||||||
BaiJiaHuLian HK [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income tax rate | 16.50% | 16.50% | ||||||||||
BaiJiaHuLian HK [Member] | Assessable Profit Threshold Minimum | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Assessable profit threshold limit | $ | $ 2,000 | |||||||||||
Income tax rate | 8.25% | 8.25% | ||||||||||
BaiJiaHuLian HK [Member] | Assessable Profit Threshold Maximum | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Assessable profit threshold limit | $ | $ 2,000 | |||||||||||
Income tax rate | 16.50% | 16.50% | ||||||||||
GaoTuYunJi [Member] | High And New Technology Enterprise | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||||||
Beijing Lexuebang [Member] | Software Enterprise [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income tax rate | 0.00% | 0.00% | 0.00% | 12.50% | ||||||||
Wuhan Yuexuebang [Member] | Software Enterprise [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income tax rate | 0.00% | 0.00% | 0.00% | 0.00% | 12.50% | |||||||
Beijing Gaotu [Member] | High And New Technology Enterprise | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||||
Beijing Gaotu [Member] | High And New Technology Enterprise | Subsequent Event [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income tax rate | 15.00% | 15.00% | ||||||||||
HK | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Foreign income tax expense benefit | $ | $ 0 | $ 0 |
INCOME TAXES - Summary of curre
INCOME TAXES - Summary of current and deferred components of the income tax expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax (expense) benefit | ¥ (1) | ¥ 14,578 | ¥ (16,441) | |
Deferred tax (expense) benefit | (40,948) | 20,041 | (516) | |
Income tax (expense) benefit | ¥ (40,949) | $ (6,426) | ¥ 34,619 | ¥ (16,957) |
INCOME TAXES - Summary of princ
INCOME TAXES - Summary of principle components of deferred tax assets and deferred taxes liability (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||||
Deductible temporary difference related to advertising expenses | ¥ 750,576 | ¥ 458,991 | ||
Net operating loss carrying forwards | 578,623 | 160,919 | ||
Transfer of intangible assets | 1,510 | 1,679 | ||
Accrued liabilities | 2,176 | 300 | ||
Total deferred tax assets | 1,332,885 | 621,889 | ||
Less: valuation allowance | (1,332,885) | (573,565) | ¥ (40,352) | ¥ (42,797) |
Deferred tax assets, net | 0 | 48,324 | ||
Deferred tax liabilities | ||||
Building and land use right | 71,107 | 72,447 | ||
Intangible assets | 0 | 3,287 | ||
Deferred revenue | 0 | 2,750 | ||
Unrecognized gains of available-for-sale investments | 509 | 213 | ||
Total deferred tax liabilities | ¥ 71,616 | ¥ 78,697 |
INCOME TAXES - Summary of movem
INCOME TAXES - Summary of movements of valuation allowance (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the period | ¥ 573,565 | ¥ 40,352 | ¥ 42,797 |
Acquisitions | 0 | 4,987 | 0 |
Additions | 759,320 | 529,915 | 36,138 |
Reversal | 0 | (1,689) | (38,583) |
Balance at end of the period | ¥ 1,332,885 | ¥ 573,565 | ¥ 40,352 |
INCOME TAXES - Summary of recon
INCOME TAXES - Summary of reconciliation of effective tax rate and statutory income tax rate (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before provision for income tax and share of results of equity investees | ¥ (3,062,214) | $ (480,527) | ¥ (1,427,612) | ¥ 242,239 |
Income tax (expenses) benefits computed at an applicable tax rate of 25% | 765,554 | 356,903 | (60,560) | |
Effect of permanent differences | (8,186) | 55,935 | (11,010) | |
Effect of research and development super-deduction | 89,287 | 88,881 | 38,078 | |
Effect of preferential tax rate | (129,026) | 62,404 | 10,399 | |
Effect on tax rates in different tax jurisdictions | 742 | (1,278) | 3,691 | |
Change in valuation allowance | (759,320) | (528,226) | 2,445 | |
Income tax (expense) benefit | ¥ (40,949) | $ (6,426) | ¥ 34,619 | ¥ (16,957) |
INCOME TAXES - Summary of rec_2
INCOME TAXES - Summary of reconciliation of effective tax rate and statutory income tax rate (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax Expense Applicable Tax Rate | 25.00% | 25.00% | 25.00% |
NET INCOME (LOSS) PER SHARE - S
NET INCOME (LOSS) PER SHARE - Summary of computation of basic and diluted net income (loss) per share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income (loss) | ¥ (3,103,465) | $ (487,000) | ¥ (1,392,930) | ¥ 226,630 |
Less: Accretion on Series A Preferred Shares redemption value | 0 | 0 | 0 | 16,772 |
Less: Undistributed earnings allocated to Series A Preferred Shares | ¥ | 0 | 0 | 21,698 | |
Net income (loss) attributed to ordinary shareholders for computing net income (loss) per ordinary shares-basic | ¥ (3,103,465) | $ (487,000) | ¥ (1,392,930) | ¥ 188,160 |
Denominator: | ||||
Weighted average ordinary shares outstanding used in computing net income (loss) per ordinary shares-basic | 170,790,979 | 170,790,979 | 159,725,779 | 132,400,941 |
Net income (loss) per ordinary share attributable to ordinary shareholders-basic | (per share) | ¥ (18.17) | $ (2.85) | ¥ (8.72) | ¥ 1.42 |
Denominator: | ||||
Weighted average ordinary shares basic outstanding | 170,790,979 | 170,790,979 | 159,725,779 | 132,400,941 |
Effect of potentially diluted stock options | 0 | 0 | 0 | 6,998,647 |
Effect of potentially diluted RSUs | 0 | 0 | 0 | 78,310 |
Weighted average ordinary shares outstanding used in computing net income (loss) per ordinary shares-diluted | 170,790,979 | 170,790,979 | 159,725,779 | 139,477,898 |
Net income (loss) per ordinary share attributable to ordinary shareholders-diluted | (per share) | ¥ (18.17) | $ (2.85) | ¥ (8.72) | ¥ 1.35 |
RSUs [Member] | ||||
Denominator: | ||||
Shares issuable upon conversion of RSUs | 12,794 | 12,794 | 64,576 | 512,847 |
EMPLOYEE DEFINED CONTRIBUTION_2
EMPLOYEE DEFINED CONTRIBUTION PLAN - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee benefit expense | ¥ 393,812 | ¥ 216,551 | ¥ 67,462 |
RELATED PARTY TRANSACTION - Sch
RELATED PARTY TRANSACTION - Schedule of Related Parties (Detail) | 12 Months Ended | |
Dec. 31, 2021 | ||
Beijing Youlian Global Education Technology Co., Ltd ("Beijing Youlian") | ||
Related Party Transaction [Line Items] | ||
Relationship with the Group | Equity method investment investee | [1] |
[1] | Beijing Youlian was dissolved in June 2020. |
RELATED PARTY TRANSACTION - Sum
RELATED PARTY TRANSACTION - Summary of significant balances and transactions (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Related Party Transactions [Line Items] | ||||
Revenue | ¥ 0 | ¥ 0 | ¥ 566 | |
Expense | 0 | 1,457 | 3,569 | |
Beijing Youlian | ||||
Related Party Transactions [Line Items] | ||||
Revenue | [1] | 0 | 0 | 566 |
Expense | [2] | ¥ 0 | ¥ 1,457 | ¥ 3,569 |
[1] | The Group recognized revenue from providing technical service. | |||
[2] | The Group recognized expense from receiving advertising service provided by Beijing Youlian. |
LEASE - Supplementary Informati
LEASE - Supplementary Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | ¥ 156,600 | ¥ 141,942 |
Non-cash right-of-use assets in exchange for new lease liabilities: | ||
Operating leases | ¥ 39,069 | ¥ 647,029 |
Weighted average remaining lease term | ||
Operating leases | 4 years 3 months 18 days | 4 years 7 months 6 days |
Weighted average discount rate | ||
Operating leases | 6.50% | 6.60% |
LEASE - Summary of future minim
LEASE - Summary of future minimum payment under non-cancelable operating leases (Detail) ¥ in Thousands | Dec. 31, 2021CNY (¥) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | ¥ 108,998 |
2023 | 107,372 |
2024 | 104,373 |
2025 | 75,460 |
2026 | 31,160 |
2027 and thereafter | 15,439 |
Less: imputed interest | (86,757) |
Total | ¥ 356,045 |
LEASE - Additional Information
LEASE - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease expenses | ¥ 193,957 | ¥ 155,287 | ¥ 53,165 |
Leases that have not yet commenced | As of December 31, 2021, the Group did not have additional operating leases that have not yet commenced. | ||
Financing lease | As of December 31, 2020 and 2021, the Group had no long-term leases that were classified as a financing lease. | ||
Gain (loss) on termination of lease | ¥ 484 | ||
Noncash decrease of operating lease right-of-use assets | ¥ 470,358 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reporting segments | 1 |
RESTRICTED NET ASSETS - Additio
RESTRICTED NET ASSETS - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Net Assets [Line Items] | ||
Net assets not available for distribution | ¥ 4,738,378 | ¥ 329,344 |
People Republic of China [Member] | ||
Restricted Net Assets [Line Items] | ||
Appropriation of after tax profit to statutory common reserve required minimum percentage | 10.00% | |
Appropriation of after tax profit to statutory common reserve limit registered capital percentage | 50.00% |
ADDITIONAL INFORMATION-FINANC_2
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Condensed Financial Information of Parent Company Balance Sheets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | ¥ 728,934 | $ 114,386 | ¥ 355,224 | |||
Short-term investments | 2,774,000 | 435,301 | 7,331,268 | |||
Prepaid expenses and other current assets | 250,068 | 39,241 | 722,682 | |||
Total current assets | 3,936,786 | 617,768 | 8,457,248 | |||
Long-term investments | 0 | 0 | 530,729 | |||
TOTAL ASSETS | 5,024,666 | 788,481 | 10,685,792 | |||
Accrued expenses and other current liabilities | 693,265 | 108,789 | 1,315,502 | |||
Total current liabilities | 1,760,268 | 276,225 | 4,197,392 | |||
TOTAL LIABILITIES | 2,143,724 | 336,398 | 4,955,937 | |||
Treasury stock, at cost | 0 | 0 | (139,572) | |||
Additional paid-in capital | 7,793,234 | 1,222,928 | 7,595,049 | |||
Accumulated other comprehensive loss | (143,111) | (22,457) | (59,905) | |||
Statutory reserves | 40,380 | 6,337 | 40,380 | |||
Accumulated deficit | (4,809,675) | (754,743) | (1,706,210) | |||
TOTAL SHAREHOLDERS' EQUITY | 2,880,942 | 452,083 | 5,729,855 | ¥ 1,557,355 | ¥ (492,539) | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,024,666 | 788,481 | 10,685,792 | |||
Common Class A [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Ordinary shares | 66 | 10 | 65 | |||
Common Class B [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Ordinary shares | 48 | 8 | 48 | |||
Parent [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | 11,260 | 1,767 | 8,430 | $ 1,323 | ¥ 61,635 | ¥ 166 |
Short-term investments | 885,420 | 138,942 | 5,983,518 | |||
Prepaid expenses and other current assets | 463 | 73 | 10,627 | |||
Amounts due from subsidiaries and VIEs | 5,777,602 | 906,632 | 318,205 | |||
Total current assets | 6,674,745 | 1,047,414 | 6,320,780 | |||
Long-term investments | 0 | 0 | 525,373 | |||
TOTAL ASSETS | 6,674,745 | 1,047,414 | 6,846,153 | |||
Accrued expenses and other current liabilities | 5,184 | 814 | 8,803 | |||
Amounts due to subsidiaries and VIEs | 108,120 | 16,966 | 100,038 | |||
Total current liabilities | 113,304 | 17,780 | 108,841 | |||
Deficit of investments in subsidiaries and VIEs | 3,680,499 | 577,551 | 1,007,457 | |||
TOTAL LIABILITIES | 3,793,803 | 595,331 | 1,116,298 | |||
Treasury stock, at cost | 0 | 0 | (139,572) | |||
Additional paid-in capital | 7,793,234 | 1,222,928 | 7,595,049 | |||
Accumulated other comprehensive loss | (143,111) | (22,457) | (59,905) | |||
Statutory reserves | 40,380 | 6,337 | 40,380 | |||
Accumulated deficit | (4,809,675) | (754,743) | (1,706,210) | |||
TOTAL SHAREHOLDERS' EQUITY | 2,880,942 | 452,083 | 5,729,855 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,674,745 | 1,047,414 | 6,846,153 | |||
Parent [Member] | Common Class A [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Ordinary shares | 66 | 10 | 65 | |||
Parent [Member] | Common Class B [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Ordinary shares | ¥ 48 | $ 8 | ¥ 48 |
ADDITIONAL INFORMATION-FINANC_3
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Condensed Financial Information of Parent Company Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 06, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares, shares outstanding | 157,138,000 | ||
Common Class A [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |
Ordinary shares, shares authorized | 800,000,000 | 800,000,000 | |
Ordinary shares, shares issued | 99,277,116 | 96,821,132 | |
Ordinary shares, shares outstanding | 98,032,240 | 96,455,774 | 83,832,712 |
Common Class B [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | |
Ordinary shares, shares issued | 73,305,288 | 73,305,288 | |
Ordinary shares, shares outstanding | 73,305,288 | 73,305,288 | 73,305,288 |
Parent [Member] | Common Class A [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |
Ordinary shares, shares authorized | 800,000,000 | 800,000,000 | |
Ordinary shares, shares issued | 99,277,116 | 96,821,132 | |
Ordinary shares, shares outstanding | 98,032,240 | 96,455,774 | |
Parent [Member] | Common Class B [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | |
Ordinary shares, shares issued | 73,305,288 | 73,305,288 | |
Ordinary shares, shares outstanding | 73,305,288 | 73,305,288 |
ADDITIONAL INFORMATION-FINANC_4
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Condensed Financial Information of Parent Company Statement of Operations (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
General and administrative expenses | ¥ (720,253) | $ (113,023) | ¥ (566,565) | ¥ (110,106) |
Total operating expenses | (7,344,486) | (1,152,510) | (7,117,229) | (1,363,209) |
Income (loss) from operations | (3,180,343) | (499,065) | (1,755,033) | 215,734 |
Income (loss) before provision for income tax and share of results of equity investees | (3,062,214) | (480,527) | (1,427,612) | 242,239 |
Income tax expenses | 40,949 | 6,426 | (34,619) | 16,957 |
Net income (loss) | (3,103,465) | (487,000) | (1,392,930) | 226,630 |
Less: Series A convertible redeemable preferred shares redemption value accretion | 0 | 0 | 0 | 16,772 |
Less: Undistributed earnings allocated to the participating preferred shares | 0 | 0 | 0 | 21,698 |
Net income (loss) attributable to Gaotu Techedu Inc.'s ordinary shareholders | (3,103,465) | (487,000) | (1,392,930) | 188,160 |
Parent [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
General and administrative expenses | (25,357) | (3,979) | (14,157) | 12,152 |
Total operating expenses | (25,357) | (3,979) | (14,157) | 12,152 |
Income (loss) from operations | (25,357) | (3,979) | (14,157) | 12,152 |
Equity in gain (loss) of subsidiaries and VIEs | (3,106,437) | (487,466) | (1,387,816) | 211,868 |
Income from non-operations | 28,329 | 4,445 | 9,043 | 2,610 |
Income (loss) before provision for income tax and share of results of equity investees | (3,103,465) | (487,000) | (1,392,930) | 226,630 |
Net income (loss) | (3,103,465) | (487,000) | (1,392,930) | 226,630 |
Less: Series A convertible redeemable preferred shares redemption value accretion | 0 | 0 | 0 | 16,772 |
Less: Undistributed earnings allocated to the participating preferred shares | 0 | 0 | 0 | 21,698 |
Net income (loss) attributable to Gaotu Techedu Inc.'s ordinary shareholders | ¥ (3,103,465) | $ (487,000) | ¥ (1,392,930) | ¥ 188,160 |
ADDITIONAL INFORMATION-FINANC_5
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Condensed Financial Information of Parent Company Statement of Comprehensive Income (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | ¥ (3,103,465) | $ (487,000) | ¥ (1,392,930) | ¥ 226,630 |
Other comprehensive income (loss), net of tax: | ||||
Change in cumulative foreign currency translation adjustments | (73,936) | (11,602) | (74,562) | 9,219 |
Unrealized gains on available-for-sale investments (net of tax effect of nil, RMB9,867 and RMB8,598 for the years ended December 31, 2019, 2020 and 2021, respectively) | 48,191 | 7,562 | 67,231 | 18,839 |
Transfer to statements of operations of realized gains on available-for-sale investments (net of tax effect of nil, RMB9,654 and RMB8,302 for the years ended December 31, 2019, 2020 and 2021, respectively) | (57,461) | (9,017) | (70,403) | (11,395) |
Total comprehensive income (loss) attributable to Gaotu Techedu Inc. | (3,186,671) | (500,057) | (1,470,664) | 243,293 |
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | (3,103,465) | (487,000) | (1,392,930) | 226,630 |
Other comprehensive income (loss), net of tax: | ||||
Change in cumulative foreign currency translation adjustments | (73,936) | (11,602) | (74,562) | 9,219 |
Unrealized gains on available-for-sale investments (net of tax effect of nil, RMB9,867 and RMB8,598 for the years ended December 31, 2019, 2020 and 2021, respectively) | 48,191 | 7,562 | 67,231 | 18,839 |
Transfer to statements of operations of realized gains on available-for-sale investments (net of tax effect of nil, RMB9,654 and RMB8,302 for the years ended December 31, 2019, 2020 and 2021, respectively) | (57,461) | (9,017) | (70,403) | (11,395) |
Total comprehensive income (loss) attributable to Gaotu Techedu Inc. | ¥ (3,186,671) | $ (500,057) | ¥ (1,470,664) | ¥ 243,293 |
ADDITIONAL INFORMATION-FINANC_6
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Condensed Financial Information of Parent Company Statement of Comprehensive Income (Parenthetical) (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Tax Effect Of Unrealized Gain On Available For Sale Investments | ¥ 8,598 | ¥ 9,867 | ¥ 0 |
Tax effect of transfer to statements of operations of realized gains on available-for-sale investments | 8,302 | 9,654 | 0 |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Tax Effect Of Unrealized Gain On Available For Sale Investments | 8,598 | 9,867 | 0 |
Tax effect of transfer to statements of operations of realized gains on available-for-sale investments | ¥ 8,302 | ¥ 9,654 | ¥ 0 |
ADDITIONAL INFORMATION-FINANC_7
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Condensed Financial Information of Parent Company Statement of Cash Flows (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | ¥ (3,103,465) | $ (487,000) | ¥ (1,392,930) | ¥ 226,630 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Realized gains from investments | (65,763) | (10,320) | (70,403) | (11,395) |
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | 459,506 | 72,107 | (479,985) | (204,648) |
Accrued expenses and other current liabilities | (942,260) | (147,862) | 1,508,939 | 357,203 |
Net cash generated from (used in) operating activities | (4,185,807) | (656,845) | 603,273 | 1,285,054 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Net cash (used in) generated from investing activities | 4,812,502 | 755,188 | (5,596,304) | (2,504,566) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Net proceeds from initial public offering and from exercising the overallotment option by the underwriters (net of issuance cost of RMB31,791) | 0 | 0 | 0 | 1,366,860 |
Capital contribution | 7 | 1 | 36 | 0 |
Proceeds from private placement financing | 0 | 0 | 5,687,251 | 0 |
Repurchase of ordinary shares | 0 | 0 | (282,543) | (86,739) |
Repayment to related parties | 0 | 0 | (460) | (34,056) |
Net cash generated from (used in) financing activities | (100,614) | (15,789) | 5,272,100 | 1,246,065 |
Effect of exchange rate changes | 15,818 | 2,483 | 2,188 | 14,155 |
Net increase (decrease) in cash and cash equivalents | 541,899 | 85,037 | 281,257 | 40,708 |
Cash and cash equivalents at beginning of the year | 355,224 | |||
Cash and cash equivalents at end of the year | 728,934 | 114,386 | 355,224 | |
Parent Company [Member] | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | (3,103,465) | (487,000) | (1,392,930) | 226,630 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Equity in gain (loss) loss of subsidiaries and VIEs | 3,106,437 | 487,466 | 1,387,816 | (211,868) |
Realized gains from investments | (8,498) | (1,333) | (6,564) | (525) |
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | 2,083 | 327 | (1,919) | (627) |
Accrued expenses and other current liabilities | (3,618) | (568) | (1,771) | 1,756 |
Net cash generated from (used in) operating activities | (7,061) | (1,108) | (15,368) | 15,366 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Loans to subsidiaries and VIEs | (6,248,209) | (980,480) | (195,783) | (673) |
Repayment from subsidiaries and VIEs | 706,870 | 110,923 | 0 | 108,339 |
Investing activities on debt securities investments | 5,547,488 | 870,522 | (5,252,188) | (1,319,660) |
Net cash (used in) generated from investing activities | 6,149 | 965 | (5,447,971) | (1,211,994) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Net proceeds from initial public offering and from exercising the overallotment option by the underwriters (net of issuance cost of RMB31,791) | 0 | 0 | 0 | 1,366,860 |
Capital contribution | 7 | 1 | 36 | 0 |
Proceeds from private placement financing | 0 | 0 | 5,687,251 | 0 |
Repurchase of ordinary shares | 0 | 0 | (282,543) | (86,739) |
Repayment to related parties | 0 | 0 | 0 | (34,056) |
Net cash generated from (used in) financing activities | 7 | 1 | 5,404,744 | 1,246,065 |
Effect of exchange rate changes | 3,735 | 586 | 5,390 | 12,032 |
Net increase (decrease) in cash and cash equivalents | 2,830 | 444 | (53,205) | 61,469 |
Cash and cash equivalents at beginning of the year | 8,430 | 1,323 | 61,635 | 166 |
Cash and cash equivalents at end of the year | ¥ 11,260 | $ 1,767 | ¥ 8,430 | ¥ 61,635 |
ADDITIONAL INFORMATION-FINANC_8
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Condensed Financial Information of Parent Company Statement of Cash Flows (Parenthetical) (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | |
Net issuance of stock | ¥ 31,791 |
Parent [Member] | |
Condensed Cash Flow Statements, Captions [Line Items] | |
Net issuance of stock | ¥ 31,791 |
ADDITIONAL INFORMATION-FINANC_9
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Additional Information (Detail) | Dec. 31, 2021 |
Condensed Financial Statements, Captions [Line Items] | |
Convenience translation rate of USD1.00 | 6.3726 |
Parent Company [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Convenience translation rate of USD1.00 | 6.3726 |