Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
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, Beijing |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100193 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
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, Beijing |
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 | 98,806,602 |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 636,052 | $ 89,586 | ¥ 819,911 |
Restricted Cash | 33,901 | 4,775 | 22 |
Short-term investments (including available-for-sale debt securities of RMB1,512,953 and RMB1,766,577 as of December 31, 2022 and 2023, respectively) | 2,253,910 | 317,457 | 2,923,864 |
Inventory, net | 24,596 | 3,464 | 22,783 |
Prepaid expenses and other current assets | 638,248 | 89,895 | 399,897 |
Total current assets | 3,586,707 | 505,177 | 4,166,477 |
Non-current assets | |||
Operating lease right-of-use assets | 189,662 | 26,713 | 83,663 |
Property, equipment and software, net | 533,531 | 75,146 | 552,032 |
Intangible assets | 16,227 | 2,285 | 18,932 |
Land use rights | 26,568 | 3,742 | 27,373 |
Long-term investments (including available-for-sale debt securities of nil and RMB928,200 as of December 31, 2022 and 2023, respectively) | 1,029,632 | 145,021 | 0 |
Goodwill | 331 | 47 | 331 |
Deferred tax assets | 11,312 | 1,593 | 15,679 |
Rental deposit | 17,742 | 2,499 | 9,502 |
Other non-current assets | 1,597 | 225 | 2,186 |
TOTAL ASSETS | 5,413,309 | 762,448 | 4,876,175 |
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 RMB367,477 and RMB484,222 as of December 31, 2022 and 2023, respectively) | 805,032 | 113,386 | 662,189 |
Deferred revenue, current portion of the consolidated VIE without recourse to the Group | 1,113,480 | 156,830 | 906,914 |
Operating lease liabilities, current portion (including current portion of operating lease liabilities of the consolidated VIE without recourse to the Group of RMB21,281 and RMB34,401 as of December 31, 2022 and 2023, respectively) | 50,494 | 7,112 | 38,326 |
Income tax payable (including income tax payable of the consolidated VIE without recourse to the Group of RMB260 and RMB4,210 as of December 31, 2022 and December 31, 2023,respectively) | 4,278 | 603 | 1,793 |
Total current liabilities | 1,973,284 | 277,931 | 1,609,222 |
Non-current liabilities | |||
Deferred revenue, non-current portion of the consolidated VIE without recourse to the Group | 124,141 | 17,485 | 52,419 |
Operating lease liabilities, non-current portion (including non-current portion of operating lease liabilities of the consolidated VIE without recourse to the Group of RMB17,457 and RMB121,277 as of December 31, 2022 and 2023, respectively) | 137,652 | 19,388 | 44,198 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIE without recourse to the Group of RMB74,341 and RMB71,850 as of December 31,2022 and December 31, 2023, respectively) | 71,967 | 10,136 | 74,507 |
TOTAL LIABILITIES | 2,307,044 | 324,940 | 1,780,346 |
SHAREHOLDERS' EQUITY | |||
Treasury stock, at cost | (85,178) | (11,997) | |
Additional paid-in capital | 7,987,957 | 1,125,080 | 7,915,899 |
Accumulated other comprehensive loss | (33,209) | (4,677) | (64,062) |
Statutory reserves | 50,225 | 7,074 | 40,380 |
Accumulated deficit | (4,813,646) | (677,988) | (4,796,503) |
TOTAL SHAREHOLDERS' EQUITY | 3,106,265 | 437,508 | 3,095,829 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,413,309 | 762,448 | 4,876,175 |
Common Class A [Member] | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares | 68 | 10 | 67 |
Common Class B [Member] | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares | ¥ 48 | $ 6 | ¥ 48 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 $ / shares |
Short-term investments, available-for-sale debt securities current | ¥ | ¥ 1,766,577 | ¥ 1,512,953 | ||
Long-term investments, available-for-sale debt securities noncurrent | ¥ | 928,200 | |||
Accrued expenses and other current liabilities | 805,032 | $ 113,386 | 662,189 | |
Operating lease liabilities, current portion | 50,494 | 7,112 | 38,326 | |
Income tax payable | 4,278 | 603 | 1,793 | |
Operating lease liabilities, non-current portion | 137,652 | 19,388 | 44,198 | |
Deferred tax liabilities | ¥ 71,967 | $ 10,136 | 74,507 | |
Ordinary shares, shares outstanding | shares | 172,111,890 | 172,111,890 | ||
Variable interest entity, primary beneficiary [Member] | ||||
Accrued expenses and other current liabilities | ¥ | ¥ 484,222 | 367,477 | ||
Operating lease liabilities, current portion | ¥ | 34,401 | 21,281 | ||
Income tax payable | ¥ | 4,210 | 260 | ||
Operating lease liabilities, non-current portion | ¥ | 121,277 | 17,457 | ||
Deferred tax liabilities | ¥ | ¥ 71,850 | ¥ 74,341 | ||
Common Class A [Member] | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | shares | 800,000,000 | 800,000,000 | 800,000,000 | |
Ordinary shares, shares issued | shares | 101,974,316 | 101,974,316 | 100,077,116 | |
Ordinary shares, shares outstanding | shares | 98,806,602 | 98,806,602 | 99,553,256 | |
Common Class B [Member] | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | shares | 100,000,000 | 100,000,000 | 100,000,000 | |
Ordinary shares, shares issued | shares | 73,305,288 | 73,305,288 | 73,305,288 | |
Ordinary shares, shares outstanding | shares | 73,305,288 | 73,305,288 | 73,305,288 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | ||
Net revenues | ¥ 2,960,813,000 | $ 417,022 | ¥ 2,498,214,000 | ¥ 6,561,747,000 | |
Cost of revenues (including share-based compensation expenses of RMB118,145, RMB42,490 and RMB12,959 for the years ended December 31, 2021, 2022 and 2023, respectively) | (790,207,000) | (111,298) | (701,050,000) | (2,397,604,000) | |
Gross profit | 2,170,606,000 | 305,724 | 1,797,164,000 | 4,164,143,000 | |
Operating expenses: | |||||
Selling expenses (including share-based compensationexpenses of RMB44,402, RMB6,659 and RMB8,603 for the years ended December 31, 2021, 2022 and 2023, respectively) | (1,501,200,000) | (211,440) | (1,179,760,000) | (5,129,267,000) | |
Research and development expenses (including share-based compensation expenses of RMB130,620,RMB39,172 and RMB17,012 for the years endedDecember 31, 2021, 2022 and 2023, respectively) | (462,043,000) | (65,077) | (445,117,000) | (1,252,877,000) | |
General and administrative expenses (including share-based compensation expenses of RMB52,092,RMB34,333 and RMB19,779 for the years endedDecember 31, 2021, 2022 and 2023, respectively) | (356,369,000) | (50,194) | (290,339,000) | (720,253,000) | |
Impairment loss on long-lived assets | 0 | 0 | 0 | (52,544,000) | |
Impairment loss on goodwill | 0 | 0 | 0 | (43,300,000) | |
Disposal loss on assets | 0 | 0 | 0 | (146,245,000) | |
Total operating expenses | (2,319,612,000) | (326,711) | (1,915,216,000) | (7,344,486,000) | |
Loss from operations | (149,006,000) | (20,987) | (118,052,000) | (3,180,343,000) | |
Interest income | 75,829,000 | 10,680 | 21,370,000 | 31,460,000 | |
Realized gains from investments | 31,230,000 | 4,399 | 42,264,000 | 65,763,000 | |
Other income, net | [1] | 54,471,000 | 7,672 | 51,885,000 | 20,906,000 |
(Loss)/income before provision for income tax and share of results of equity investees | 12,524,000 | 1,764 | (2,533,000) | (3,062,214,000) | |
Income tax (expenses)/benefits | (10,657,000) | (1,501) | 15,705,000 | (40,949,000) | |
Share of results of equity investees | (9,165,000) | (1,291) | 0 | (302,000) | |
Net (loss)/income | (7,298,000) | (1,028) | 13,172,000 | (3,103,465,000) | |
Net (loss)/income attributable to Gaotu Techedu Inc.'s ordinary shareholders | ¥ (7,298,000) | $ (1,028) | ¥ 13,172,000 | ¥ (3,103,465,000) | |
Net (loss)/income per ordinary share | |||||
Basic | (per share) | ¥ (0.04) | $ (0.01) | ¥ 0.08 | ¥ (18.17) | |
Diluted | (per share) | ¥ (0.04) | $ (0.01) | ¥ 0.07 | ¥ (18.17) | |
Weighted average shares used in net (loss)/income per share | |||||
Basic | 173,725,790 | 173,725,790 | 172,254,080 | 170,790,979 | |
Diluted | 173,725,790 | 173,725,790 | 175,991,484 | 170,790,979 | |
ADS [Member] | |||||
Net (loss)/income per ordinary share | |||||
Basic | (per share) | ¥ (0.03) | $ 0 | ¥ 0.05 | ¥ (12.11) | |
Diluted | (per share) | ¥ (0.03) | $ 0 | ¥ 0.05 | ¥ (12.11) | |
[1] The amount of other expenses for 2021, 2022 and 2023 have been combined with other income. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Share-based compensation expenses | ¥ 58,353 | ¥ 122,654 | ¥ 320,889 |
Cost of sales [Member] | |||
Share-based compensation expenses | 12,959 | 42,490 | 118,145 |
Selling expense [Member] | |||
Share-based compensation expenses | 8,603 | 6,659 | 44,402 |
Research and development expense [Member] | |||
Share-based compensation expenses | 17,012 | 39,172 | 130,620 |
General and administrative expense [Member] | |||
Share-based compensation expenses | ¥ 19,779 | ¥ 34,333 | ¥ 52,092 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss)/income | ¥ (7,298) | $ (1,028) | ¥ 13,172 | ¥ (3,103,465) |
Other comprehensive (loss)/income, net of tax: | ||||
Change in cumulative foreign currency translation adjustments | 29,804 | 4,198 | 72,703 | (73,936) |
Unrealized gains on available-for-sale investments (net of tax effect of RMB8,598, RMB8,703 and RMB6,464 for the years ended December 31, 2021, 2022 and 2023, respectively) | 25,792 | 3,633 | 39,729 | 48,191 |
Transfer to statements of operations of realized gains on available-for-sale investments (net of tax effect of RMB8,302, RMB8,881 and RMB6,487 for the years ended December 31, 2021, 2022 and 2023, respectively) | (24,743) | (3,485) | (33,383) | (57,461) |
Total comprehensive (loss)/income attributable to Gaotu Techedu Inc. | ¥ 23,555 | $ 3,318 | ¥ 92,221 | ¥ (3,186,671) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/ INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Tax Effect Of Unrealized Gain On Available For Sale Investments | ¥ 6,464 | ¥ 8,703 | ¥ 8,598 |
Tax effect of transfer to statements of operations of realized gains on available-for-sale investments | ¥ 6,487 | ¥ 8,881 | ¥ 8,302 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Ordinary Shares [Member] CNY (¥) shares | Ordinary Shares [Member] USD ($) shares | Treasury Stock [Member] CNY (¥) | Treasury Stock [Member] USD ($) | Additional paid-in capital [Member] CNY (¥) | Additional paid-in capital [Member] USD ($) | 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, 2020 | ¥ 5,729,855 | ¥ 113 | ¥ (139,572) | ¥ 7,595,049 | ¥ (59,905) | ¥ 40,380 | ¥ (1,706,210) | |||||||
Beginning balance, Shares at Dec. 31, 2020 | shares | 169,761,062 | 169,761,062 | ||||||||||||
Net income (loss) | (3,103,465) | (3,103,465) | ||||||||||||
Share-based compensation | 320,889 | 320,889 | ||||||||||||
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) | (57,461) | ||||||||||||
Ending balance at Dec. 31, 2021 | 2,880,942 | ¥ 114 | 7,793,234 | (143,111) | 40,380 | (4,809,675) | ||||||||
Ending balance, Shares at Dec. 31, 2021 | shares | 171,337,528 | 171,337,528 | ||||||||||||
Net income (loss) | 13,172 | 13,172 | ||||||||||||
Share-based compensation | 122,654 | 122,654 | ||||||||||||
Option exercised and restricted stock units vested | 12 | ¥ 1 | 11 | |||||||||||
Option exercised and restricted stock units vested, Shares | shares | 1,521,016 | 1,521,016 | ||||||||||||
Foreign currency translation adjustments | 72,703 | 72,703 | ||||||||||||
Unrealized gains on available-for-sale investments | 39,729 | 39,729 | ||||||||||||
Transfer to statements of operations of realized gains on available-for-sale investments | (33,383) | (33,383) | ||||||||||||
Ending balance at Dec. 31, 2022 | 3,095,829 | ¥ 115 | 7,915,899 | (64,062) | 40,380 | (4,796,503) | ||||||||
Ending balance, Shares at Dec. 31, 2022 | shares | 172,858,544 | 172,858,544 | ||||||||||||
Net income (loss) | (7,298) | $ (1,028) | (7,298) | |||||||||||
Transfer to statutory reserves | 9,845 | (9,845) | ||||||||||||
Share-based compensation | 58,353 | 58,353 | ||||||||||||
Option exercised and restricted stock units vested | 11 | ¥ 1 | 5,314 | (5,304) | ||||||||||
Option exercised and restricted stock units vested, Shares | shares | 2,498,091 | 2,498,091 | ||||||||||||
Repurchase of ordinary shares | (90,492) | (90,492) | ||||||||||||
Repurchase of ordinary shares, Shares | shares | (3,244,745) | (3,244,745) | ||||||||||||
Deconsolidation of a subsidiary | 19,009 | 19,009 | ||||||||||||
Foreign currency translation adjustments | 29,804 | 29,804 | ||||||||||||
Unrealized gains on available-for-sale investments | 25,792 | 25,792 | ||||||||||||
Transfer to statements of operations of realized gains on available-for-sale investments | (24,743) | (3,485) | (24,743) | |||||||||||
Ending balance at Dec. 31, 2023 | ¥ 3,106,265 | $ 437,508 | ¥ 116 | $ 16 | ¥ (85,178) | $ (11,997) | ¥ 7,987,957 | $ 1,125,080 | ¥ (33,209) | $ (4,677) | ¥ 50,225 | $ 7,074 | ¥ (4,813,646) | $ (677,988) |
Ending balance, Shares at Dec. 31, 2023 | shares | 172,111,890 | 172,111,890 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net (loss)/income | ¥ (7,298,000) | $ (1,028) | ¥ 13,172,000 | ¥ (3,103,465,000) |
Adjustments to reconcile net (loss)/income to net cash generated from operating activities: | ||||
Depreciation of property, equipment and software | 50,732,000 | 7,145 | 68,807,000 | 108,446,000 |
Amortization of intangible assets and land use rights | 3,510,000 | 494 | 1,950,000 | 4,116,000 |
Share of results of equity investees | 9,165,000 | 1,291 | 0 | 302,000 |
Realized gains from investments | (31,230,000) | (4,399) | (42,264,000) | (65,763,000) |
Disposal loss/(gain) on assets | 2,724,000 | 384 | (21,374,000) | 146,245,000 |
Share-based compensation | 58,353,000 | 8,219 | 122,654,000 | 320,889,000 |
Fair value change of fair value option | (2,065,000) | (291) | 13,232,000 | 0 |
Allowance for expected credit losses | 10,807,000 | 1,522 | 0 | 0 |
Write-down of inventory | 1,453,000 | 205 | 0 | 12,901,000 |
Impairment loss on long-lived assets | 0 | 0 | 0 | 52,544,000 |
Impairment loss on goodwill | 0 | 0 | 0 | 43,300,000 |
Realized gain from derivative financial liabilities | 0 | 0 | 0 | (7,938,000) |
Changes in operating assets and liabilities: | ||||
Accrued expenses and other current liabilities | 202,703,000 | 28,550 | (329,923,000) | (942,260,000) |
Deferred revenue | 278,288,000 | 39,196 | (36,885,000) | (1,737,521,000) |
Prepaid expenses and other current assets | (182,561,000) | (25,713) | (12,294,000) | 459,506,000 |
Income tax payable | 2,485,000 | 350 | 1,793,000 | (4,654,000) |
Other assets | (45,196,000) | (6,365) | 293,465,000 | 486,302,000 |
Deferred tax assets | 4,367,000 | 615 | (15,679,000) | 48,324,000 |
Deferred tax liabilities | (2,540,000) | (358) | (2,109,000) | (7,081,000) |
Net cash (used in)/generated from operating activities | 353,697,000 | 49,817 | 54,545,000 | (4,185,807,000) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of short-term investments | (19,314,820,000) | (2,720,436) | (29,317,782,000) | (46,001,552,000) |
Proceeds from maturity of short-term investments | 20,035,335,000 | 2,821,918 | 29,249,349,000 | 51,063,983,000 |
Purchase of property, equipment and software | (40,800,000) | (5,747) | (18,952,000) | (272,323,000) |
Payment for asset acquisition | 0 | 0 | (15,000,000) | 0 |
Purchase of long-term investments | (1,113,179,000) | (156,788) | 0 | 0 |
Short-term loans to a third party | (600,000,000) | (84,508) | (612,000,000) | 0 |
Repayment of short-term loans from a third party | 498,800,000 | 70,255 | 534,000,000 | 0 |
Proceeds from maturity of long-term investments | 110,594,000 | 15,577 | 0 | 0 |
Proceeds from disposal of equity method investments | 0 | 0 | 0 | 5,548,000 |
Proceeds from derivative financial liabilities | 0 | 0 | 0 | 7,938,000 |
Proceeds from disposal of property, equipment and software | 92,000 | 13 | 22,000,000 | 8,908,000 |
Net cash generated from/(used in) investing activities | (423,978,000) | (59,716) | (158,385,000) | 4,812,502,000 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Capital contribution | 12,000 | 2 | 0 | 7,000 |
Repurchase of ordinary shares | (90,492,000) | (12,746) | 0 | 0 |
Proceeds from short-term loans | 0 | 0 | 0 | 400,000,000 |
Repayments of short-term loans | 0 | 0 | 0 | (400,000,000) |
Payment for asset acquisition after three months of completion | 0 | 0 | 0 | (100,621,000) |
Net cash generated from/(used in) financing activities | (90,480,000) | (12,744) | 0 | (100,614,000) |
Effect of exchange rate changes | 10,781,000 | 1,519 | 26,650,000 | 15,818,000 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (149,980,000) | (21,124) | (77,190,000) | 541,899,000 |
Cash, cash equivalents and restricted cash at beginning of the year | 819,933,000 | 115,485 | 897,123,000 | 355,224,000 |
Cash, cash equivalents and restricted cash at end of the year | 669,953,000 | 94,361 | 819,933,000 | 897,123,000 |
Supplemental schedule of cash flow information | ||||
Income taxes paid | 1,437,000 | 202 | 20,217,000 | (84,832,000) |
Non-cash investing and financing activity | ||||
Payables for purchase of property, equipment and software | 4,589,000 | 646 | 413,000 | 4,778,000 |
Right-of-use assets in exchange for new lease liabilities | ¥ 156,534,000 | $ 22,047 | ¥ 38,953,000 | ¥ 39,069,000 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
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. (the "Company" or the "Parent Company") in June 2021. The Company, its subsidiaries, the consolidated variable interest entity and variable interest entity’s subsidiaries (collectively the “Group”) are currently engaged in the business of providing learning services and educational content and digitalized learning 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 (collectively "VIEs") are primarily engaged in providing learning services and educational content and digitalized learning products in mainland China. Current laws and regulations of mainland China impose certain restrictions or prohibitions on foreign ownership of companies that engage in value-added telecommunication services and certain other businesses. To comply with the relevant laws and regulations of mainland China, 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 subsidiary in mainland China, 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 (collectively the “Original Agreement”). The Original Agreements were amended in 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 significantly 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, the VIE and VIE’s major subsidiaries as of December 31, 2023 were as follow: Name Later of date Place of establishment Percentage of Principal activities Subsidiaries: BaiJiaHuLian HK Aug 18, 2014 Hong Kong, 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 Chengdu Yuexuebang Oct 20, 2023 Chengdu, 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 Guangzhou XingHuo Online Computer Aug 18, 2022 Guangzhou, China 100 % Education services Guangzhou GaoTu Technology Co., Ltd Dec 9, 2022 Guangzhou, 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 the laws or regulations of mainland China. The agreement will be effective for twenty years upon signing by both parties. The term of the agreement was amended in 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 the laws of mainland China, the 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 laws and regulations of mainland China at the WFOEs’ sole and absolute discretion to the extent permitted by the laws of mainland China. 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 the 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 laws and regulations of mainland China 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 the laws and regulations of mainland China, the PRC government may restrict or prohibit the Group’s business and operations in mainland 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, 2022 and 2023, the VIE and its subsidiaries accounted for an aggregate of 49.00 % and 69.37 %, respectively, of the Group’s consolidated total assets, and 80.89 % and 84.68 %, 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, 2022 and 2023 and for the years ended December 31, 2021, 2022 and 2023 was included in the accompanying consolidated financial statements: As of December 31, 2022 2023 RMB RMB Cash and cash equivalents 312,055 232,653 Restricted cash 22 33,901 Short-term investments 1,068,365 1,367,078 Inventory, net 22,783 24,596 Prepaid expenses and other current assets, net 345,132 586,392 Total current assets 1,748,357 2,244,620 Operating lease right-of-use assets 41,014 158,054 Property, equipment and software, net 533,588 517,599 Intangible assets, net 18,932 16,227 Land use right, net 27,373 26,568 Long-term investments — 768,182 Goodwill 331 331 Deferred tax assets 15,679 11,312 Rental deposit 2,827 11,041 Other non-current assets 1,392 1,024 Total non-current assets 641,136 1,510,338 Total assets 2,389,493 3,754,958 Accrued expenses and other current liabilities 367,477 484,222 Deferred revenue, current portion 906,914 1,113,480 Operating lease liabilities, current portion 21,281 34,401 Income tax payable 260 4,210 Total current liabilities 1,295,932 1,636,313 Deferred revenue, non-current portion 52,419 124,141 Operating lease liabilities, non-current portion 17,457 121,277 Deferred tax liabilities 74,341 71,850 Total non-current liabilities 144,217 317,268 Total liabilities 1,440,149 1,953,581 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The VIE arrangements - continued Year ended December 31, 2021 2022 2023 RMB RMB RMB Net revenues 6,561,747 2,498,214 2,960,813 Net income 94,795 555,880 598,211 Net cash (used in)/generated from operating activities ( 580,304 ) 558,050 919,990 Net cash generated from/(used in) investing activities 121,861 ( 87,007 ) ( 1,157,633 ) Net cash used in financing activities ( 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. Non-consolidated variable interest entities The Company holds variable interest in certain third parties but is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the economic performance of the third parties. Therefore, they are concluded as non-consolidated variable interest entities of the Company. The variable interests in the third parties companies held by the Company are in the form of loans and receivables, the size and nature of which are disclosed in notes 4 (3) and (4). 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 “New Regulations”). To comply with the Opinion and the New Regulations, the Company performed organizational adjustments and business restructuring, including the cessation of compulsory education academic subject tutoring services to students (“Business Restructuring”). The financial impacts were disclosed in note 2, 5, 7, 8, and 11. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
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, impairment assessment of intangible assets and other long-lived assets, fair value assessment of certain short-term and long-term investments, discount rate for leases and allowance for credit losses. 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. 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: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Fair value - continued 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 and long-term investments accounted for term deposits, held-to-maturity, available-for-sale debt investments or elected to measure at fair value, receivables from third-party payment platforms and other liabilities. As of December 31, 2022 and 2023, the carrying values of cash and cash equivalents, restricted cash, short-term investments, receivables from third-party payment platforms and other current liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments. The fair value of the Group’s long-term investments is determined based on the prevailing interest rates in the market as of December 31, 2022 and 2023. 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Foreign currency translation and transactions - continued 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 (loss)/income, change in shareholders’ (deficit)/equity and cash flows from Renminbi ("RMB") into US dollars as of and for the year ended December 29, 2023 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 7.0999 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. 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 29, 2023, 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. Restricted cash Restricted cash represents the cash and cash equivalents deposited in bank accounts that are restricted as to withdrawal or for use. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Debt securities investments As of December 31, 2022 and 2023, the Group’s debt securities include term deposits, held-to-maturity investments, available-for-sale investments, and investments elected to measure at fair value, which were classified to short-term investments accounted for those with original maturities no longer than one year and long-term investments accounted for those with original maturities greater than one year. Term deposits Term deposits represent deposits in commercial banks with original maturities of more than three months and up to one year. As of December 31, 2022 and 2023, the balance of term deposits were nil and RMB 328,181 , respectively. 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, 2022 and 2023, the balances of held-to-maturity securities were RMB 206,916 and nil , respectively, and were recorded as short-term investments as their maturities are less than twelve months. 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. 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 (loss)/income. Realized gains or losses on the sale of these securities are recognized under realized gains from investments in the consolidated statements of operations. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Debt securities investments - continued Available-for-sale investments - continued 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, 2022 and 2023, the available-for-sale debt investments were recorded with unrealized gain amounted to RMB 4,318 and RMB 35,450 , respectively. Investments elected to measure at fair value The Group elects the fair value option to record wealth management products with variable interest rates involving derivatives at fair value in accordance with ASC 825 Financial Instrument . Changes in the fair value are recorded in other income. 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 3 - 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Land use rights, ne t All land in mainland China is owned by the government, which, according to the relevant laws of mainland China, 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 losses on goodwill was recorded during the years ended December 31, 2022 and 2023. 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 License 7.4 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 losses of long-lived assets was recorded during the years ended December 31, 2022 and 2023. 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued Disaggregation of revenue For the years ended December 31, 2021, 2022 and 2023, all of the Group’s revenues were generated in mainland China. 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 New Regulations previously disclosed, the Group changed its disaggregation of revenue to better disclose the performance of its business following its Business Restructuring. The total net revenue of online after-school academic subject tutoring services including compulsory education academic subject tutoring services and senior high school tutoring services previously recorded as online K-12 academic subject tutoring services in 2021, and comprehensive tutoring services amounting to RMB 560,196 previously included in comprehensive tutoring services and others in 2021, were reclassified to learning services. Other revenue amounting to RMB 912 in 2021, previously included in comprehensive tutoring services and others, were reclassified to other revenue. Year ended December 31, 2021 2022 2023 RMB RMB RMB Net revenues - Learning services 6,560,835 2,436,110 2,872,901 - Educational content & digitalized learning products — 26,791 55,980 - Other revenue 912 35,313 31,932 Total net revenues 6,561,747 2,498,214 2,960,813 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued The primary sources of the Group's revenues are as follows: (1) Learning 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. 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. 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued (2) Educational content & digitalized learning products Educational content & digitalized learning products mainly include books and digitalized auxiliary learning tools, such as smart devices and translation pens. The Group has determined that selling educational content and digitalized learning products represents one performance obligation, as customers can benefit from the products on their own. The Group recognizes revenues when control of the educational content and digitalized learning products are transferred to the customer, which generally occurs upon the delivery to the customers. (3) Other revenue The Company leases office buildings to customers and receives a fixed quarterly rental fee over the term of the lease period. The Company classifies its lease income as other revenue and classifies such lease contracts as operating leases. The fixed rental fee is recognized evenly over the period of the lease contract on a straight-line basis. 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. 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 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 contracts entered into after the Business Restructuring with dissimilar characteristics or dissimilar circumstances, as a practical expedient, the Group elects to record the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. As of December 31, 2022 and 2023, the balance of contract cost was both nil . For the years ended December 31, 2021, 2022 and 2023, the Group recognized amortization of RMB 212,880 , nil and nil as "Selling expenses" in its consolidated statement of operations, respectively. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued 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, 2022 2023 RMB RMB Deferred revenue, current portion 906,914 1,113,480 Deferred revenue, non-current portion 52,419 124,141 959,333 1,237,621 Refund liability 60,597 67,157 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, 2022 and 2023 that was included in the deferred revenue balance at January 1, 2022 and January 1, 2023 amounted to RMB 980,385 and RMB 889,909 , 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, 2023, the aggregate amount of the transaction price allocated for the remaining performance obligations amounted to RMB 1,237,621 . The Group expects to recognize revenue of RMB 1,113,480 and RMB 75,615 related the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder of RMB 48,526 recognized thereafter. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Cost of revenues Cost of revenues mainly consists of compensations to instructors and tutors, rental expenses for office space, depreciation 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 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, 2021, 2022 and 2023, RMB 9,350 , RMB 7,825 and RMB 6,469 were received and recognized as other income in the Group’s consolidated statements of operations, respectively. Value added taxes The Group’s 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. The Group's revenue on sales of goods is subject to VAT at the rate of 3 % for small-scale-VAT-payer entities or at the rate of 13 % for general-VAT-payer entities in accordance with tax rule. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Value added taxes - continued In accordance with The Ministry of Finance and State Administration of Taxation Announcement (2021 No.10), the Group's revenue on book sales enjoy exemption policy from January 1, 2021 to December 31, 2023. Based on the Announcement on Continuously Implementing Value-Added Tax Preferential Policy for Publicity and Culture (2023 No.60), the exemption period were further extended to December 31, 2027. 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 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 . 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Comprehensive (loss)/income Comprehensive (loss)/income includes net (loss)/income, foreign currency translation adjustments and the unrealized gains and losses on available-for-sale debt investments of the Group. Comprehensive (loss)/income is reported in the consolidated statements of comprehensive (loss)/income. Leases The Group leases administrative office spaces in different cities in mainland China 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 seven 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 op |
ASSETS ACQUISITION
ASSETS ACQUISITION | 12 Months Ended |
Dec. 31, 2023 | |
Asset Acquisition [Abstract] | |
ASSETS ACQUISITION | 3. ASSETS ACQUISITION In August 2022, the Group acquired 100 % equity interest of Guangzhou XingHuo Online Education Technology Co., Ltd. (later renamed to Guangzhou XingHuo Online Computer Technology Co., Ltd., hereinafter referred to as "Guangzhou XingHuo") from Guangdong Shijixiao Education Technology Co., Ltd.. This acquisition was accounted for as an asset acquisition, as substantially all of the fair value of the gross assets acquired is concentrated in a business license, which was recorded in intangible assets and amortized on a straight-line basis over its estimated useful life. The Group did not make any asset acquisitions during the year ended December 31, 2023. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET | 4. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET Prepaid expenses and other current assets consisted of the following: As of December 31, 2022 2023 RMB RMB Prepaid VAT and income tax (1) 101,994 124,951 Prepaid other service fees (2) 67,265 78,079 Receivables from third parties (3) 119,492 161,408 Amounts due from a third party (4) 78,000 179,200 Receivables from third-party payment platforms (5) 24,545 71,701 Staff advance 4,128 10,950 Receivables from broker 367 4,359 Others 4,106 18,407 Total 399,897 649,055 Less: Allowance for expected credit losses — ( 10,807 ) 399,897 638,248 (1) Prepaid VAT and income tax mainly consist of VAT input that is expected to offset with VAT output tax or to be transferred out in the future related to 2022 and 2023. (2) Prepaid other service fees mainly 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 parties mainly consist of receivables from non-consolidated variable interest entities raised from disposal of assets and technical support services in 2022, rent and sales of inventory in both 2022 and 2023. (4) Amounts due from a third party represents loans to a non-consolidated variable interest entity with an interest rate of 4.35%. (5) Receivables from third-party payment platforms represents withdrawable cash balance that has been received from course participants but held by the third-party payment platforms. The Group subsequently collected the full balance from the third-party payment platforms. |
PROPERTY, EQUIPMENT AND SOFTWAR
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 5. PROPERTY, EQUIPMENT AND SOFTWARE, NET Property, equipment and software consisted of the following: As of December 31, 2022 2023 RMB RMB Electronic equipment 99,345 102,559 Building 491,082 489,929 Leasehold improvement 76,522 96,376 Furniture and office equipment 2,659 4,553 Software 17,002 17,767 Construction in progress 870 786 Total 687,480 711,970 Less: Accumulated depreciation ( 135,448 ) ( 178,439 ) 552,032 533,531 Depreciation expenses were RMB 108,446 , RMB 68,807 and RMB 50,732 for the years ended December 31, 2021, 2022 and 2023, respectively. As a result of the New Regulations 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 compulsory education academic subject tutoring services to its estimated fair value based on market approach. The Group recorded impairment losses on property, equipment and software amounted to RMB 28,918 during the year ended December 31, 2021. No impairment loss on property, equipment and software was recorded during the years ended December 31, 2022 and 2023. |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Land Use Rights, Net Disclosure [Abstract] | |
LAND USE RIGHTS, NET | 6. LAND USE RIGHTS, NET Land use rights consisted of the following: As of December 31, 2022 2023 RMB RMB Land use rights 29,788 29,788 Less: Accumulated amortization ( 2,415 ) ( 3,220 ) 27,373 26,568 Amortization expenses for land use right were RMB 805 for each of the years ended December 31, 2021, 2022 and 2023. Future amortization expense is RMB 805 for each of the next five years through December 31, 2028 and thereafter. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | 7. GOODWILL The carrying amount of goodwill were both RMB 331 as of December 31, 2022 and 2023. 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 New Regulations and the Business Restructuring, the Group performed an impairment assessment on the goodwill arise from business acquisition and reduced the carrying value to its estimated fair value based on expected discounted cash flow approach in 2021. The Group recorded goodwill impairment losses amounted to RMB 43,300 during the year ended December 31, 2021. No impairment loss on goodwill was recorded during the years ended December 31, 2022 and 2023. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET The intangible assets consisted of the following: As of December 31, 2022 2023 RMB RMB Student base 12,510 12,510 Trademark 1,675 1,675 License 20,000 20,000 Total 34,185 34,185 Less: Accumulated amortization ( 5,422 ) ( 8,127 ) Accumulated impairment loss ( 9,831 ) ( 9,831 ) 18,932 16,227 The Group recognized amortization expense of RMB 3,311 , RMB 1,145 and RMB 2,705 for the years ended December 31, 2021, 2022 and 2023, respectively. As of December 31, 2023, the Group expects to recognize amortization expenses of RMB 2,705 for each of the next five years through 2028, and RMB 2,703 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 New Regulations and the Business Restructuring, the Group performed an impairment assessment on intangible assets in 2021 and the intangible assets were substantially 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 RMB 9,831 during the year ended December 31, 2021. No impairment loss on intangible assets was recorded during the years ended December 31, 2022 and 2023. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The components of accrued expenses and other current liabilities were as follows: As of December 31, 2022 2023 RMB RMB Salary and welfare payable 301,152 409,965 Other accrued expense 129,970 111,134 Other tax payable 67,334 71,473 Refund liability (1) 60,597 67,157 Accrued marketing expense 75,473 113,516 Payable for investment and acquisition 26,580 26,580 Others 1,083 5,207 662,189 805,032 (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, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | 10. FAIR VALUE MEASUREMENT Measured at fair value on a recurring basis As of December 31, 2022 and 2023, short-term and long-term investments measured at fair value are as follows: Fair value measurement as of December 31, 2023 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 207,329 1,559,248 — 1,766,577 Investments elected to measure at fair value - Wealth management products — 159,152 — 159,152 Long-term investments: Available-for-sale debt investments - Wealth management products — 928,200 — 928,200 Investments elected to measure at fair value - Wealth management products — 101,432 — 101,432 Total 207,329 2,748,032 — 2,955,361 10. FAIR VALUE MEASUREMENT - continued Measured at fair value on a recurring basis - continued Fair value measurement as of December 31, 2022 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 — 1,512,953 — 1,512,953 Investments elected to measure at fair value - Wealth management products — 1,203,995 — 1,203,995 Total — 2,716,948 — 2,716,948 The Group’s available-for-sale debt investments and investments elected to measure at fair value as of December 31, 2022 and 2023 mainly consist of wealth management products purchased from banks. Those wealth management products with fair value which is determined based on the quoted market prices currently available on the website of the bank have been categorized as Level 1. The remaining wealth management products have no quoted prices in active markets for the investment at the reporting date, the Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurement to estimate the fair value of investments in short-term and long-term investments with variable interest rates indexed to the performance of underlying assets. A summary of available-for-sale investments during the years ended December 31, 2022 and 2023 is presented as below: As of December 31, 2023 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products 1,752,828 13,749 — — 1,766,577 Long-term investments: Available-for-sale debt investments - Wealth management products 906,499 21,701 — — 928,200 Total 2,659,327 35,450 — — 2,694,777 10. FAIR VALUE MEASUREMENT - continued Measured at fair value on a recurring basis - continued As of December 31, 2022 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products 1,508,635 4,318 — — 1,512,953 Total 1,508,635 4,318 — — 1,512,953 For the years ended December 31, 2022 and 2023, a gain of RMB 1,422 and RMB 3,315 resulting from changes in fair value of the products under fair value option was recorded in other income, respectively. As of December 31, 2023, RMB 1,766,577 available-for-sale investments and RMB 159,152 investments elected to measure at fair value will mature within one year, RMB 928,200 available-for-sale investments and RMB 101,432 investments elected to measure at fair value will mature within one 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 5, 7 and 8, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 11. 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. Prior to the initial public offering in June 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 Group did not grant any share options during the years ended December 31, 2021, 2022 and 2023. A summary of options activities during the year ended December 31, 2023 is presented below: Number Weighted Weighted Weighted Aggregate Options outstanding at January 1, 2023 3,618,346 0.01 13.98 5.75 88,310 Granted — — — Exercised ( 1,070,806 ) 0.01 14.17 Forfeited ( 657,826 ) 0.01 13.05 Cancelled ( 703,200 ) 0.01 12.72 Options outstanding at December 31, 1,186,514 0.01 15.08 5.13 45,731 Options vested and expected to 1,186,514 0.01 15.08 5.13 45,731 Options exercisable as of December 31, — — — — — 11. SHARE-BASED COMPENSATION - continued Share options - continued The total fair value of options vested during the years ended December 31, 2021, 2022 and 2023 were RMB 19,134 , RMB 13,032 and RMB 12,071 respectively. Total intrinsic value of options exercised for the years ended December 31, 2021, 2022 and 2023 were RMB 13,933 , RMB 21,293 and RMB 41,271 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, 2023, there was RMB 5,663 of unrecognized compensation expenses related to options expected to be recognized over a weighted average period of 5.13 years. Restricted Stock Units Under the Plan, the Group granted 1,386,327 RSUs to employees at an exercise price of nil per share during the year ended December 31, 2023. The vesting period of these RSUs ranged from 0 to 4 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 558,876 , RMB 82,690 and RMB 39,977 during the years ended December 31, 2021, 2022 and 2023, respectively. As of December 31, 2023, there was RMB 63,207 unrecognized compensation cost related to RSUs which is expected to be recognized over a weighted average vesting period of 2.50 years. The weighted average granted fair value of the RSUs granted during the years ended December 31, 2021, 2022 and 2023 was RMB 135.14 , RMB 16.81 and RMB 28.84 per RSU, respectively. 11. SHARE-BASED COMPENSATION - continued Restricted Stock Units - continued A summary of the RSUs activity during the year ended December 31, 2023 is presented below: RSUs Unvested balance at January 1, 2023 5,420,374 Granted 1,386,327 Vested ( 1,427,285 ) Forfeited ( 543,757 ) Cancelled — Unvested balance at December 31, 2023 4,835,659 During the year ended December 31, 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. The Group cancelled 480,487 RSUs and 703,200 options during the years ended December 31, 2022 and 2023, respectively. The Group recognized all previously unrecognized compensation cost at the cancellation date. The Group recognized RMB 345,259 , RMB 122,654 and RMB 58,353 of compensation expenses for all options and RSUs granted for the years ended December 31, 2021, 2022 and 2023, respectively. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
ORDINARY SHARES | 12. ORDINARY SHARES 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. In November 2022, the Company’s board of directors authorized a share repurchase program, under which the Company may repurchase up to USD 30,000 of its common shares, including shares represented by American depositary shares, effective until November 2025. In November 2023, the Company's board of directors authorized modifications to its existing share repurchase program, by increasing the aggregate value of shares that may be repurchased from USD 30,000 to USD 80,000 , effective until November 22, 2025. In 2023, the Company had cumulatively repurchased 4,867,118 ADSs for approximately USD 12,440 under its existing share repurchase program. During the year ended December 31, 2023, the Company reissued 186,667 shares of treasury stock in connection with the exercise of options and the vesting of RSUs. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 13. 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 million of assessable profit and 16.5 % for profit exceeding HKD 2 million . 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, 2022 and 2023. The Company’s subsidiary, the VIE and the VIE’s subsidiaries, which were entities incorporated in mainland China (the “Mainland China entities”), are subject to mainland China Enterprise Income Tax (“EIT”) on their taxable income in accordance with the relevant income tax laws of mainland China, 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 (the "HNTE") from 2017 through 2022 and accordingly was entitled to the 15 % preferential tax rate during the period. The HNTE qualification has been renewed in 2023 and is set to expire by 2025. GaoTuYunJi qualified as a HNTE from 2019 through 2021, and accordingly was entitled to a 15 % preferential tax rate during the period. The HNTE qualification has been renewed in 2022 and is set to expire by 2024. Beijing Lexuebang also qualified as a HNTE during the year ended December 31, 2019. The HNTE qualification has been renewed in 2022 and is set to expire by 2024. Furthermore, Beijing Lexuebang obtained the qualification of the Software Enterprise Certificate in March 2020, and renewed in 2021, 2022 and 2023. 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 and 2023. Therefore, Wuhan Yuexuebang adopted exemption from EIT for the years 202 0 and 2021, and 12.5 % from 2022 to 2024. Beijing Yuexuebang obtained the qualification of the Software Enterprise Certificate in February 2024, and adopted exemption from enterprise income tax for 2 0 23 and 2024, and 12.5 % from 2025 to 2027. The current and deferred components of the income tax expense appearing in the consolidated statement of operations were as follows: 13. INCOME TAXES - continued Year ended December 31, 2021 2022 2023 RMB RMB RMB Current tax expenses ( 1 ) ( 1,906 ) ( 8,744 ) Deferred tax (expenses)/benefits ( 40,948 ) 17,611 ( 1,913 ) ( 40,949 ) 15,705 ( 10,657 ) The principle components of deferred tax assets were as follows: As of December 31, 2022 2023 RMB RMB Deferred tax assets: Deductible temporary difference related to advertising 778,837 764,166 Net operating loss carrying forwards 584,693 641,220 Transfer of intangible assets 1,340 1,171 Accrued liabilities 1,876 1,876 Total deferred tax assets 1,366,746 1,408,433 Less: valuation allowance ( 1,351,067 ) ( 1,397,121 ) Deferred tax assets, net 15,679 11,312 The movements of valuation allowance for the years end December 31, 2021, 2022 and 2023 were as follows: Year ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the period 573,565 1,332,885 1,351,067 Acquisitions — 6,668 — Additions 759,320 11,514 46,054 Reversal — — — Balance at end of the period 1,332,885 1,351,067 1,397,121 13. INCOME TAXES - continued The principle components of deferred tax liabilities were as follows: As of December 31, 2022 2023 RMB RMB Deferred tax liabilities: Building and land use right 69,307 67,507 Intangible assets 4,719 4,045 Unrecognized gains of investments 481 415 Total deferred tax liabilities 74,507 71,967 As of December 31, 2023, the Group had net operating loss carried forward of RMB 2,975,267 from the Company's Mainland China entities, which will expire on various dates from December 31, 2024 to December 31, 2033 . The reconciliation of the effective tax rate and the statutory income tax rate applicable to operations was as follow: Year ended December 31, 2021 2022 2023 RMB RMB RMB (Loss)/income before provision for income tax ( 3,062,214 ) ( 2,533 ) 12,524 Income tax benefits/(expense) computed at an 25 % 765,554 633 ( 3,131 ) Effect of permanent differences ( 8,186 ) ( 1,423 ) ( 27,346 ) Effect of research and development super-deduction 89,287 36,263 44,935 Effect of preferential tax rate ( 129,026 ) 581 17,480 Effect on tax rates in different tax jurisdictions 742 ( 8,835 ) 3,459 Change in valuation allowance ( 759,320 ) ( 11,514 ) ( 46,054 ) ( 40,949 ) 15,705 ( 10,657 ) 13. INCOME TAXES - continued If Beijing Gaotu, GaoTuYunJi, Beijing Lexuebang, Wuhan Yuexuebang, and Beijing Yuexuebang did not enjoy income tax preferential tax rates, tax benefit would have decreased by RMB 129,026 for the years ended December 31, 2021, tax expense would have increased by RMB 581 and RMB 17,480 for the years ended December 31, 2022 and 2023, respectively. The increase in basic and diluted net loss per ordinary share was RMB 0.76 for the year ended December 31, 2021. The decrease in basic and diluted net income per ordinary share was approximately nil and RMB 0.10 for the years ended December 31, 2022 and 2023, r espectively. The Group did not identify significant unrecognized tax benefits for the year ended December 31, 2023. 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, 2023. As of December 31, 2022 and 2023, the Group did no t have any significant unrecognized uncertain tax positions. Aggregate undistributed earnings of the Company’s mainland China subsidiaries and the VIE that are available for reinvestment. Upon distribution of such earnings, the Company will be subject to mainland China 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 do not intend to declare dividends and the Company intends to permanently reinvest it within the mainland China. Additionally, no deferred tax liability was recorded for taxable temporary differences attributable to the undistributed earnings of VIE because the Company believes the undistributed earnings can be distributed from the VIE to WFOEs in a manner that would not be subject to income tax. |
NET (LOSS)_INCOME PER SHARE
NET (LOSS)/INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
NET (LOSS)/INCOME PER SHARE | 14. NET (LOSS)/INCOME PER SHARE The following table sets forth the computation of basic and diluted net (loss)/income per share for the periods indicated: Year ended December 31, 2021 2022 2023 RMB RMB RMB Basic net (loss)/income per share calculation Numerator: Net (loss)/income ( 3,103,465 ) 13,172 ( 7,298 ) Net (loss)/income attributed to ordinary shareholders ( 3,103,465 ) 13,172 ( 7,298 ) Denominator: Weighted average ordinary shares outstanding used in 170,790,979 172,254,080 173,725,790 Net (loss)/income per ordinary share attributable to ( 18.17 ) 0.08 ( 0.04 ) Diluted net (loss)/income per ordinary share calculation Denominator: Weighted average ordinary shares basic outstanding 170,790,979 172,254,080 173,725,790 Effect of potentially diluted stock options — 2,931,766 — Effect of potentially diluted RSUs — 805,638 — Weighted average ordinary shares outstanding used in 170,790,979 175,991,484 173,725,790 Net (loss)/income per ordinary share attributable to ( 18.17 ) 0.07 ( 0.04 ) For the years ended December 31, 2021, 2022 and 2023, 8,204,965 , 1,093,923 and 6,022,173 potential common shares in connection with RSUs and share options were excluded from the calculation of diluted net (loss)/income per ordinary share due to their anti-dilutive effect. |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | 15. EMPLOYEE DEFINED CONTRIBUTION PLAN Full time employees of the Group in the mainland China 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. Labor regulations of mainland China require that the Group’s mainland China 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 393,812 , RMB 125,666 and RMB 176,965 for the years ended December 31, 2021, 2022 and 2023, respectively. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | 16. RELATED PARTY TRANSACTION In May 2023, the founder and the CEO of the Company Mr. Larry Xiangdong Chen invested RMB 15,000 to obtain 60 % of the equity interest of Beijing GaoTuJiaPin Technology Co., Ltd ("GaoTuJiaPin"). GaoTuJiaPin is a company engaged in livestreaming e-commerce, which was formerly one of the VIE's subsidiaries. The transaction was accounted as a deconsolidation of the subsidiary under common control. In connection with such deconsolidation, the Company obtained a call option to purchase the 60 % equity interest held by Mr. Larry Xiangdong Chen, or to designate any third parties to repurchase the 60 % equity interest held by Mr. Larry Xiangdong Chen within seven months after the deconsolidation date. The call option expired in December 2023. Gains resulting from the deconsolidation amounted to RMB 19,009 were recorded as contribution from shareholders in the equity. Upon the completion of such deconsolidation, the Company no longer has control over Gaotu Jiapin, but has the ability to exercise significant influence over it and accounts for the retained equity interest as an equity method investment. The Group recorded share of loss on GaoTuJiaPin amounted to RMB 9,165 for the year ended December 31, 2023. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASE | 17. LEASE Operating leases The Group’s leases consist of operating leases for administrative office spaces in different cities in mainland China. 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, 2022 and 2023, the Group had no long-term leases that were classified as a financing lease. As of December 31, 2023, the Group did not have additional operating leases that have not yet commenced. Total operating lease expenses for the years ended December 31, 2021, 2022 and 2023 was RMB 193,957 , RMB 32,714 and RMB 40,772 , and was recorded in cost of revenues, selling expenses, research and development expenses and general and administrative expense on the consolidated statements of operations. Short-term lease expenses were immaterial for the years ended December 31, 2021, 2022 and 2023. Some leases were terminated before the expiration of the lease term, the relevant right-of-use asset and the lease liability were derecognized with the difference amounted to RMB 41 recognized under other income in the consolidated statements of operations in 2023. The noncash decrease of operating lease right-of-use assets was RMB 9,272 for the year ended December 31, 2023. Year ended 2022 2023 RMB RMB Cash paid for amounts included in the measurement of Operating cash flows from operating leases 37,027 43,373 Non-cash right-of-use assets in exchange for new lease Operating leases 38,953 156,534 Weighted average remaining lease term: Operating leases 2.9 4.2 Weighted average discount rate: Operating leases 7.2 % 6.8 % 17. LEASE - continued Operating leases - continued The following is a maturity analysis of the annual undiscounted cash flows as of December 31, 2023: RMB Year ending December 31, 2024 62,025 2025 58,617 2026 34,446 2027 25,295 2028 20,704 2029 and thereafter 16,572 Less: imputed interest ( 29,513 ) Total 188,146 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. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Loss Contingency [Abstract] | |
CONTINGENCIES | 18. 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 and such liability on a regular basis. The Group has not recorded any material liabilities in this regard as of December 31, 2023. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 19. 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 learning services and educational content & digitalized learning products. The CODM reviews consolidated results including revenue, grow profit and operating profit at a consolidated level only and does not distinguish among services and products for the purpose of making decision 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 mainland China and all of the Group’s long-lived assets are located in mainland China. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | 20. RESTRICTED NET ASSETS Relevant statutory laws and regulations of mainland China permit payments of dividends by the Group’s mainland China subsidiaries only out of their retained earnings, if any, as determined in accordance with accounting standards and regulations of mainland China. 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 statutory accounts of mainland China, 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 statutory accounts of mainland China. 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 mainland China 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 mainland China 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 mainland China, 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 statutory accounts of mainland China. 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 statutory accounts of mainland China. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Because the Group’s mainland China entities can only be paid out of distributable profits reported in accordance with accounting standards of mainland China, the Group’s entities in mainland China 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 mainland China. The aggregate amount of paid-in capital and statutory reserves, which is the amount of net assets of the Group’s entities in mainland China not available for distribution, were RMB 4,738,378 and RMB 4,791,223 as of December 31, 2022 and 2023, respectively. |
ADDITIONAL INFORMATION-FINANCIA
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | 12 Months Ended |
Dec. 31, 2023 | |
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, 2022 2023 2023 RMB RMB USD Cash and cash equivalents 3,731 98,456 13,867 Short-term investments 734,142 527,692 74,324 Prepaid expenses and other current assets, net 1,787 268 38 Amounts due from subsidiaries and VIEs 6,459,723 6,508,527 916,707 Total current assets 7,199,383 7,134,943 1,004,936 Long-term investments — 209,252 29,473 TOTAL ASSETS 7,199,383 7,344,195 1,034,409 Accrued expenses and other current liabilities 5,072 4,636 653 Amounts due to subsidiaries and VIEs 108,120 108,120 15,228 Total current liabilities 113,192 112,756 15,881 Deficit of investments in subsidiaries and VIEs 3,990,362 4,125,174 581,020 TOTAL LIABILITIES 4,103,554 4,237,930 596,901 Class A ordinary shares (par value of USD 0.0001 800,000,000 shares authorized as of 100,077,116 and 101,974,316 shares issued; 99,553,256 and 98,806,602 shares outstanding as of December 67 68 10 Class B ordinary shares (par value of USD 0.0001 100,000,000 shares authorized as of 73,305,288 shares 48 48 6 Treasury stock, at cost — ( 85,178 ) ( 11,997 ) Additional paid-in capital 7,915,899 7,987,957 1,125,080 Accumulated other comprehensive loss ( 64,062 ) ( 33,209 ) ( 4,677 ) Statutory reserves 40,380 50,225 7,074 Accumulated deficit ( 4,796,503 ) ( 4,813,646 ) ( 677,988 ) TOTAL SHAREHOLDERS’ EQUITY 3,095,829 3,106,265 437,508 TOTAL LIABILITIES AND TOTAL SHAREHOLDERS’ EQUITY 7,199,383 7,344,195 1,034,409 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, 2021 2022 2023 2023 RMB RMB RMB USD General and administrative expenses ( 25,357 ) ( 8,807 ) ( 8,477 ) ( 1,194 ) Total operating expenses ( 25,357 ) ( 8,807 ) ( 8,477 ) ( 1,194 ) Loss from operations ( 25,357 ) ( 8,807 ) ( 8,477 ) ( 1,194 ) Equity in (loss)/gain of subsidiaries and VIEs ( 3,106,437 ) 45,545 ( 28,414 ) ( 4,002 ) Income/(loss) from non-operations 28,329 ( 23,566 ) 29,593 4,168 (Loss)/income before income tax ( 3,103,465 ) 13,172 ( 7,298 ) ( 1,028 ) Net (loss)/income ( 3,103,465 ) 13,172 ( 7,298 ) ( 1,028 ) ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF COMPREHENSIVE (LOSS)/INCOME (In thousands of RMB and USD, except for share, per share and per ADS data, or otherwise noted) Year ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Net (loss)/income ( 3,103,465 ) 13,172 ( 7,298 ) ( 1,028 ) Other comprehensive (loss)/income, net of tax: Change in cumulative foreign currency translation adjustments ( 73,936 ) 72,703 29,804 4,198 Unrealized gains on available-for-sale investments (net of tax effect of RMB8,598 , RMB8,703 and RMB6,464 for the years ended December 31, 2021, 2022 and 2023, respectively) 48,191 39,729 25,792 3,633 Transfer to statements of operations of realized gains on available-for-sale investments (net of tax effect of RMB8,302 , RMB8,881 and RMB6,487 for the years ended December 31, 2021, 2022 and 2023, respectively) ( 57,461 ) ( 33,383 ) ( 24,743 ) ( 3,485 ) Total comprehensive (loss)/income ( 3,186,671 ) 92,221 23,555 3,318 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, 2021 2022 2023 2023 RMB RMB RMB USD CASH FLOWS FROM OPERATING ACTIVITIES Net (loss)/income ( 3,103,465 ) 13,172 ( 7,298 ) ( 1,028 ) Adjustments to reconcile net (loss)/income to net cash provided by operating activities: Equity in loss/(gain) of subsidiaries and VIEs 3,106,437 ( 45,545 ) 28,414 4,002 Realized gains from investments ( 8,498 ) — ( 4,946 ) ( 697 ) Fair value change of fair value option — 31,080 ( 5,301 ) ( 747 ) Changes in operating assets and liabilities: Prepaid expenses and other current assets 2,083 ( 1,324 ) 4,145 584 Accrued expenses and other current liabilities ( 3,618 ) ( 113 ) ( 436 ) ( 61 ) Net cash (used in)/generated from operating activities ( 7,061 ) ( 2,730 ) 14,578 2,053 CASH FLOWS FROM INVESTING ACTIVITIES Loans to subsidiaries ( 6,248,209 ) ( 303,214 ) ( 250,744 ) ( 35,317 ) Repayment from subsidiaries 706,870 100,000 402,800 56,733 Purchase of short-term and long-term investments ( 26,583,981 ) ( 7,303,902 ) ( 2,085,667 ) ( 293,760 ) Proceeds from maturity of short-term and long-term investments investments 32,131,469 7,478,284 2,116,220 298,063 Net cash generated from/(used in) investing activities 6,149 ( 28,832 ) 182,609 25,719 CASH FLOWS FROM FINANCING ACTIVITIES Capital contribution 7 — 12 2 Repurchase of ordinary shares — — ( 90,492 ) ( 12,746 ) Net cash generated from/(used in) financing activities 7 — ( 90,480 ) ( 12,744 ) Effect of exchange rate changes 3,735 24,033 ( 11,982 ) ( 1,687 ) Net increase/(decrease) in cash and cash equivalents 2,830 ( 7,529 ) 94,725 13,341 Cash and cash equivalents at beginning of the year 8,430 11,260 3,731 526 Cash and cash equivalents at end of the year 11,260 3,731 98,456 13,867 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. The condensed financial information is provided since the restricted net assets of the Group’s subsidiaries, the VIE and the VIE’s subsidiaries were over the 25 % of the consolidated net assets of the Group as of December 31, 2023. 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 mainland 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 29, 2023 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 7.0999 , representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. 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 29, 2023, or at any other rate. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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, impairment assessment of intangible assets and other long-lived assets, fair value assessment of certain short-term and long-term investments, discount rate for leases and allowance for credit losses. 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: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Fair value - continued 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 and long-term investments accounted for term deposits, held-to-maturity, available-for-sale debt investments or elected to measure at fair value, receivables from third-party payment platforms and other liabilities. As of December 31, 2022 and 2023, the carrying values of cash and cash equivalents, restricted cash, short-term investments, receivables from third-party payment platforms and other current liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments. The fair value of the Group’s long-term investments is determined based on the prevailing interest rates in the market as of December 31, 2022 and 2023. |
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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Foreign currency translation and transactions - continued 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 (loss)/income, change in shareholders’ (deficit)/equity and cash flows from Renminbi ("RMB") into US dollars as of and for the year ended December 29, 2023 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 7.0999 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. 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 29, 2023, 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 Restricted cash represents the cash and cash equivalents deposited in bank accounts that are restricted as to withdrawal or for use. |
Debt securities investments | Debt securities investments As of December 31, 2022 and 2023, the Group’s debt securities include term deposits, held-to-maturity investments, available-for-sale investments, and investments elected to measure at fair value, which were classified to short-term investments accounted for those with original maturities no longer than one year and long-term investments accounted for those with original maturities greater than one year. Term deposits Term deposits represent deposits in commercial banks with original maturities of more than three months and up to one year. As of December 31, 2022 and 2023, the balance of term deposits were nil and RMB 328,181 , respectively. 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, 2022 and 2023, the balances of held-to-maturity securities were RMB 206,916 and nil , respectively, and were recorded as short-term investments as their maturities are less than twelve months. 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. 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 (loss)/income. Realized gains or losses on the sale of these securities are recognized under realized gains from investments in the consolidated statements of operations. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Debt securities investments - continued Available-for-sale investments - continued 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, 2022 and 2023, the available-for-sale debt investments were recorded with unrealized gain amounted to RMB 4,318 and RMB 35,450 , respectively. Investments elected to measure at fair value The Group elects the fair value option to record wealth management products with variable interest rates involving derivatives at fair value in accordance with ASC 825 Financial Instrument . Changes in the fair value are recorded in other income. |
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 3 - 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. |
Land use rights, net | Land use rights, ne t All land in mainland China is owned by the government, which, according to the relevant laws of mainland China, 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 losses on goodwill was recorded during the years ended December 31, 2022 and 2023. |
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 License 7.4 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 losses of long-lived assets was recorded during the years ended December 31, 2022 and 2023. |
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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued Disaggregation of revenue For the years ended December 31, 2021, 2022 and 2023, all of the Group’s revenues were generated in mainland China. 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 New Regulations previously disclosed, the Group changed its disaggregation of revenue to better disclose the performance of its business following its Business Restructuring. The total net revenue of online after-school academic subject tutoring services including compulsory education academic subject tutoring services and senior high school tutoring services previously recorded as online K-12 academic subject tutoring services in 2021, and comprehensive tutoring services amounting to RMB 560,196 previously included in comprehensive tutoring services and others in 2021, were reclassified to learning services. Other revenue amounting to RMB 912 in 2021, previously included in comprehensive tutoring services and others, were reclassified to other revenue. Year ended December 31, 2021 2022 2023 RMB RMB RMB Net revenues - Learning services 6,560,835 2,436,110 2,872,901 - Educational content & digitalized learning products — 26,791 55,980 - Other revenue 912 35,313 31,932 Total net revenues 6,561,747 2,498,214 2,960,813 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued The primary sources of the Group's revenues are as follows: (1) Learning 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. 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. 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued (2) Educational content & digitalized learning products Educational content & digitalized learning products mainly include books and digitalized auxiliary learning tools, such as smart devices and translation pens. The Group has determined that selling educational content and digitalized learning products represents one performance obligation, as customers can benefit from the products on their own. The Group recognizes revenues when control of the educational content and digitalized learning products are transferred to the customer, which generally occurs upon the delivery to the customers. (3) Other revenue The Company leases office buildings to customers and receives a fixed quarterly rental fee over the term of the lease period. The Company classifies its lease income as other revenue and classifies such lease contracts as operating leases. The fixed rental fee is recognized evenly over the period of the lease contract on a straight-line basis. 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. 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 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 contracts entered into after the Business Restructuring with dissimilar characteristics or dissimilar circumstances, as a practical expedient, the Group elects to record the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. As of December 31, 2022 and 2023, the balance of contract cost was both nil . For the years ended December 31, 2021, 2022 and 2023, the Group recognized amortization of RMB 212,880 , nil and nil as "Selling expenses" in its consolidated statement of operations, respectively. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Revenue recognition - continued 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, 2022 2023 RMB RMB Deferred revenue, current portion 906,914 1,113,480 Deferred revenue, non-current portion 52,419 124,141 959,333 1,237,621 Refund liability 60,597 67,157 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, 2022 and 2023 that was included in the deferred revenue balance at January 1, 2022 and January 1, 2023 amounted to RMB 980,385 and RMB 889,909 , 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, 2023, the aggregate amount of the transaction price allocated for the remaining performance obligations amounted to RMB 1,237,621 . The Group expects to recognize revenue of RMB 1,113,480 and RMB 75,615 related the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder of RMB 48,526 recognized thereafter. |
Cost of revenues | Cost of revenues Cost of revenues mainly consists of compensations to instructors and tutors, rental expenses for office space, depreciation 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, 2021, 2022 and 2023, RMB 9,350 , RMB 7,825 and RMB 6,469 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 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. The Group's revenue on sales of goods is subject to VAT at the rate of 3 % for small-scale-VAT-payer entities or at the rate of 13 % for general-VAT-payer entities in accordance with tax rule. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Value added taxes - continued In accordance with The Ministry of Finance and State Administration of Taxation Announcement (2021 No.10), the Group's revenue on book sales enjoy exemption policy from January 1, 2021 to December 31, 2023. Based on the Announcement on Continuously Implementing Value-Added Tax Preferential Policy for Publicity and Culture (2023 No.60), the exemption period were further extended to December 31, 2027. |
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 (loss)/income | Comprehensive (loss)/income Comprehensive (loss)/income includes net (loss)/income, foreign currency translation adjustments and the unrealized gains and losses on available-for-sale debt investments of the Group. Comprehensive (loss)/income is reported in the consolidated statements of comprehensive (loss)/income. |
Leases | Leases The Group leases administrative office spaces in different cities in mainland China 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 seven 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. When the Group is a lessor, minimum contractual rental from leases is recognized on a straight-line basis over the non-cancelable term of the lease. Straight-line rental revenue commences when the customer assumes the control of the leased office building. |
Leases | The Group leases administrative office spaces in different cities in mainland China 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 seven 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. |
Lessor leases | When the Group is a lessor, minimum contractual rental from leases is recognized on a straight-line basis over the non-cancelable term of the lease. Straight-line rental revenue commences when the customer assumes the control of the leased office building. |
Net (loss)/income per share | Net (loss)/income per share Basic (loss)/income per ordinary share is computed by dividing net (loss)/income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted (loss)/income per ordinary share reflect the potential dilution that would occur if securities were exercised or converted into ordinary shares. The Group had 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 share options and unvested RSUs is computed using the treasury stock method. |
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 472,415 and RMB 610,124 as of December 31, 2022 and 2023, 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 and long-term investments and receivables from third-party payment platforms. As of December 31, 2022 and 2023, substantially all of the Group’s cash and cash equivalents, restricted cash, short-term and long-term investments and receivables from third-party payment platforms were deposited in financial institutions located in mainland China. There are no revenues from customers which individually represent greater than 10 % of the total net revenues for the years ended December 31, 2021, 2022 and 2023. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures, which focuses on improving reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. A public entity shall disclose for each reportable segment the significant expense categories and amounts that are regularly provided to the chief operating decision makers ("CODM") and included in reported segment profit or loss. ASU 2023-07 also requires public entities to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Entities are permitted to disclose more than one measure of a segment’s profit or loss if such measures are used by the CODM to allocate resources and assess performance, as long as at least one of those measures is determined in a way that is most consistent with the measurement principles used to measure the corresponding amounts in the consolidated financial statements. ASU 2023-07 is applied retrospectively to all periods presented in financial statements, unless it is impracticable. This update will be effective for the Group’s fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Group is currently in the process of evaluating the disclosure impact of adopting ASU 2023-07. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of subsidiaries, VIE and VIE's subsidiaries | The Company’s subsidiaries, the VIE and VIE’s major subsidiaries as of December 31, 2023 were as follow: Name Later of date Place of establishment Percentage of Principal activities Subsidiaries: BaiJiaHuLian HK Aug 18, 2014 Hong Kong, 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 Chengdu Yuexuebang Oct 20, 2023 Chengdu, 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 Guangzhou XingHuo Online Computer Aug 18, 2022 Guangzhou, China 100 % Education services Guangzhou GaoTu Technology Co., Ltd Dec 9, 2022 Guangzhou, 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, 2022 and 2023 and for the years ended December 31, 2021, 2022 and 2023 was included in the accompanying consolidated financial statements: As of December 31, 2022 2023 RMB RMB Cash and cash equivalents 312,055 232,653 Restricted cash 22 33,901 Short-term investments 1,068,365 1,367,078 Inventory, net 22,783 24,596 Prepaid expenses and other current assets, net 345,132 586,392 Total current assets 1,748,357 2,244,620 Operating lease right-of-use assets 41,014 158,054 Property, equipment and software, net 533,588 517,599 Intangible assets, net 18,932 16,227 Land use right, net 27,373 26,568 Long-term investments — 768,182 Goodwill 331 331 Deferred tax assets 15,679 11,312 Rental deposit 2,827 11,041 Other non-current assets 1,392 1,024 Total non-current assets 641,136 1,510,338 Total assets 2,389,493 3,754,958 Accrued expenses and other current liabilities 367,477 484,222 Deferred revenue, current portion 906,914 1,113,480 Operating lease liabilities, current portion 21,281 34,401 Income tax payable 260 4,210 Total current liabilities 1,295,932 1,636,313 Deferred revenue, non-current portion 52,419 124,141 Operating lease liabilities, non-current portion 17,457 121,277 Deferred tax liabilities 74,341 71,850 Total non-current liabilities 144,217 317,268 Total liabilities 1,440,149 1,953,581 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The VIE arrangements - continued Year ended December 31, 2021 2022 2023 RMB RMB RMB Net revenues 6,561,747 2,498,214 2,960,813 Net income 94,795 555,880 598,211 Net cash (used in)/generated from operating activities ( 580,304 ) 558,050 919,990 Net cash generated from/(used in) investing activities 121,861 ( 87,007 ) ( 1,157,633 ) Net cash used in financing activities ( 100,621 ) — — |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 3 - 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 License 7.4 years |
Summary of disaggregated revenue by types | For the years ended December 31, 2021, 2022 and 2023, all of the Group’s revenues were generated in mainland China. 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 New Regulations previously disclosed, the Group changed its disaggregation of revenue to better disclose the performance of its business following its Business Restructuring. The total net revenue of online after-school academic subject tutoring services including compulsory education academic subject tutoring services and senior high school tutoring services previously recorded as online K-12 academic subject tutoring services in 2021, and comprehensive tutoring services amounting to RMB 560,196 previously included in comprehensive tutoring services and others in 2021, were reclassified to learning services. Other revenue amounting to RMB 912 in 2021, previously included in comprehensive tutoring services and others, were reclassified to other revenue. Year ended December 31, 2021 2022 2023 RMB RMB RMB Net revenues - Learning services 6,560,835 2,436,110 2,872,901 - Educational content & digitalized learning products — 26,791 55,980 - Other revenue 912 35,313 31,932 Total net revenues 6,561,747 2,498,214 2,960,813 |
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, 2022 2023 RMB RMB Deferred revenue, current portion 906,914 1,113,480 Deferred revenue, non-current portion 52,419 124,141 959,333 1,237,621 Refund liability 60,597 67,157 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2022 2023 RMB RMB Prepaid VAT and income tax (1) 101,994 124,951 Prepaid other service fees (2) 67,265 78,079 Receivables from third parties (3) 119,492 161,408 Amounts due from a third party (4) 78,000 179,200 Receivables from third-party payment platforms (5) 24,545 71,701 Staff advance 4,128 10,950 Receivables from broker 367 4,359 Others 4,106 18,407 Total 399,897 649,055 Less: Allowance for expected credit losses — ( 10,807 ) 399,897 638,248 (1) Prepaid VAT and income tax mainly consist of VAT input that is expected to offset with VAT output tax or to be transferred out in the future related to 2022 and 2023. (2) Prepaid other service fees mainly 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 parties mainly consist of receivables from non-consolidated variable interest entities raised from disposal of assets and technical support services in 2022, rent and sales of inventory in both 2022 and 2023. (4) Amounts due from a third party represents loans to a non-consolidated variable interest entity with an interest rate of 4.35%. (5) Receivables from third-party payment platforms represents withdrawable cash balance that has been received from course participants but held by the third-party payment platforms. The Group subsequently collected the full balance from the third-party payment platforms. |
PROPERTY, EQUIPMENT AND SOFTW_2
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, equipment and software | Property, equipment and software consisted of the following: As of December 31, 2022 2023 RMB RMB Electronic equipment 99,345 102,559 Building 491,082 489,929 Leasehold improvement 76,522 96,376 Furniture and office equipment 2,659 4,553 Software 17,002 17,767 Construction in progress 870 786 Total 687,480 711,970 Less: Accumulated depreciation ( 135,448 ) ( 178,439 ) 552,032 533,531 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Land Use Rights, Net Disclosure [Abstract] | |
Summary of Land Use Rights | Land use rights consisted of the following: As of December 31, 2022 2023 RMB RMB Land use rights 29,788 29,788 Less: Accumulated amortization ( 2,415 ) ( 3,220 ) 27,373 26,568 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | The intangible assets consisted of the following: As of December 31, 2022 2023 RMB RMB Student base 12,510 12,510 Trademark 1,675 1,675 License 20,000 20,000 Total 34,185 34,185 Less: Accumulated amortization ( 5,422 ) ( 8,127 ) Accumulated impairment loss ( 9,831 ) ( 9,831 ) 18,932 16,227 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2022 2023 RMB RMB Salary and welfare payable 301,152 409,965 Other accrued expense 129,970 111,134 Other tax payable 67,334 71,473 Refund liability (1) 60,597 67,157 Accrued marketing expense 75,473 113,516 Payable for investment and acquisition 26,580 26,580 Others 1,083 5,207 662,189 805,032 (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, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of assets measured at fair value on a recurring basis | As of December 31, 2022 and 2023, short-term and long-term investments measured at fair value are as follows: Fair value measurement as of December 31, 2023 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 207,329 1,559,248 — 1,766,577 Investments elected to measure at fair value - Wealth management products — 159,152 — 159,152 Long-term investments: Available-for-sale debt investments - Wealth management products — 928,200 — 928,200 Investments elected to measure at fair value - Wealth management products — 101,432 — 101,432 Total 207,329 2,748,032 — 2,955,361 10. FAIR VALUE MEASUREMENT - continued Measured at fair value on a recurring basis - continued Fair value measurement as of December 31, 2022 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 — 1,512,953 — 1,512,953 Investments elected to measure at fair value - Wealth management products — 1,203,995 — 1,203,995 Total — 2,716,948 — 2,716,948 |
Summary of trading securities and available-for-sale investments | A summary of available-for-sale investments during the years ended December 31, 2022 and 2023 is presented as below: As of December 31, 2023 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products 1,752,828 13,749 — — 1,766,577 Long-term investments: Available-for-sale debt investments - Wealth management products 906,499 21,701 — — 928,200 Total 2,659,327 35,450 — — 2,694,777 10. FAIR VALUE MEASUREMENT - continued Measured at fair value on a recurring basis - continued As of December 31, 2022 Original Unrealized Unrealized Provision Fair RMB RMB RMB RMB RMB Short-term investments: Available-for-sale debt investments - Wealth management products 1,508,635 4,318 — — 1,512,953 Total 1,508,635 4,318 — — 1,512,953 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of options activities | A summary of options activities during the year ended December 31, 2023 is presented below: Number Weighted Weighted Weighted Aggregate Options outstanding at January 1, 2023 3,618,346 0.01 13.98 5.75 88,310 Granted — — — Exercised ( 1,070,806 ) 0.01 14.17 Forfeited ( 657,826 ) 0.01 13.05 Cancelled ( 703,200 ) 0.01 12.72 Options outstanding at December 31, 1,186,514 0.01 15.08 5.13 45,731 Options vested and expected to 1,186,514 0.01 15.08 5.13 45,731 Options exercisable as of December 31, — — — — — |
Summary of the RSUs activity | A summary of the RSUs activity during the year ended December 31, 2023 is presented below: RSUs Unvested balance at January 1, 2023 5,420,374 Granted 1,386,327 Vested ( 1,427,285 ) Forfeited ( 543,757 ) Cancelled — Unvested balance at December 31, 2023 4,835,659 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: 13. INCOME TAXES - continued Year ended December 31, 2021 2022 2023 RMB RMB RMB Current tax expenses ( 1 ) ( 1,906 ) ( 8,744 ) Deferred tax (expenses)/benefits ( 40,948 ) 17,611 ( 1,913 ) ( 40,949 ) 15,705 ( 10,657 ) |
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, 2022 2023 RMB RMB Deferred tax assets: Deductible temporary difference related to advertising 778,837 764,166 Net operating loss carrying forwards 584,693 641,220 Transfer of intangible assets 1,340 1,171 Accrued liabilities 1,876 1,876 Total deferred tax assets 1,366,746 1,408,433 Less: valuation allowance ( 1,351,067 ) ( 1,397,121 ) Deferred tax assets, net 15,679 11,312 The principle components of deferred tax liabilities were as follows: As of December 31, 2022 2023 RMB RMB Deferred tax liabilities: Building and land use right 69,307 67,507 Intangible assets 4,719 4,045 Unrecognized gains of investments 481 415 Total deferred tax liabilities 74,507 71,967 |
Summary of movements of valuation allowance | The movements of valuation allowance for the years end December 31, 2021, 2022 and 2023 were as follows: Year ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the period 573,565 1,332,885 1,351,067 Acquisitions — 6,668 — Additions 759,320 11,514 46,054 Reversal — — — Balance at end of the period 1,332,885 1,351,067 1,397,121 |
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 operations was as follow: Year ended December 31, 2021 2022 2023 RMB RMB RMB (Loss)/income before provision for income tax ( 3,062,214 ) ( 2,533 ) 12,524 Income tax benefits/(expense) computed at an 25 % 765,554 633 ( 3,131 ) Effect of permanent differences ( 8,186 ) ( 1,423 ) ( 27,346 ) Effect of research and development super-deduction 89,287 36,263 44,935 Effect of preferential tax rate ( 129,026 ) 581 17,480 Effect on tax rates in different tax jurisdictions 742 ( 8,835 ) 3,459 Change in valuation allowance ( 759,320 ) ( 11,514 ) ( 46,054 ) ( 40,949 ) 15,705 ( 10,657 ) |
NET (LOSS)_INCOME PER SHARE (Ta
NET (LOSS)/INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of computation of basic and diluted net (loss)/income per share | The following table sets forth the computation of basic and diluted net (loss)/income per share for the periods indicated: Year ended December 31, 2021 2022 2023 RMB RMB RMB Basic net (loss)/income per share calculation Numerator: Net (loss)/income ( 3,103,465 ) 13,172 ( 7,298 ) Net (loss)/income attributed to ordinary shareholders ( 3,103,465 ) 13,172 ( 7,298 ) Denominator: Weighted average ordinary shares outstanding used in 170,790,979 172,254,080 173,725,790 Net (loss)/income per ordinary share attributable to ( 18.17 ) 0.08 ( 0.04 ) Diluted net (loss)/income per ordinary share calculation Denominator: Weighted average ordinary shares basic outstanding 170,790,979 172,254,080 173,725,790 Effect of potentially diluted stock options — 2,931,766 — Effect of potentially diluted RSUs — 805,638 — Weighted average ordinary shares outstanding used in 170,790,979 175,991,484 173,725,790 Net (loss)/income per ordinary share attributable to ( 18.17 ) 0.07 ( 0.04 ) |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of supplementary information related to operating leases | Year ended 2022 2023 RMB RMB Cash paid for amounts included in the measurement of Operating cash flows from operating leases 37,027 43,373 Non-cash right-of-use assets in exchange for new lease Operating leases 38,953 156,534 Weighted average remaining lease term: Operating leases 2.9 4.2 Weighted average discount rate: Operating leases 7.2 % 6.8 % |
Future minimum payments under non-cancelable operating leases | The following is a maturity analysis of the annual undiscounted cash flows as of December 31, 2023: RMB Year ending December 31, 2024 62,025 2025 58,617 2026 34,446 2027 25,295 2028 20,704 2029 and thereafter 16,572 Less: imputed interest ( 29,513 ) Total 188,146 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | |
Total assets | ¥ 5,413,309 | ¥ 4,876,175 | $ 762,448 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Total assets | ¥ 3,754,958 | ¥ 2,389,493 | |
Assets, Total [Member] | |||
Percentage of consolidated total asset accounted by VIE and its subsidiaries | 69.37% | 49% | |
Liabilities, Total [Member] | |||
Percentage of consolidated total liability accounted by VIE and its subsidiaries | 84.68% | 80.89% | |
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, 2023 | |
Subsidiaries [Member] | BaiJiaHuLian HK [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Aug. 18, 2014 |
Place of establishment | Hong Kong, China |
Percentage of direct or indirect economic ownership | 100% |
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% |
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% |
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% |
Principal activities | Education technical services |
Subsidiaries [Member] | Chengdu Yuexuebang [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Oct. 20, 2023 |
Place of establishment | Chengdu, China |
Percentage of direct or indirect economic ownership | 100% |
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% |
Principal activities | Education technical services |
Subsidiaries [Member] | Guangzhou GaoTu Technology Co., Ltd [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Dec. 09, 2022 |
Place of establishment | Guangzhou, China |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Education services |
Variable Interest Entity, Primary Beneficiary [Member] | Beijing Gaotu [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Jun. 04, 2014 |
Place of establishment | Beijing, China |
Percentage of direct or indirect economic ownership | 100% |
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% |
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% |
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% |
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. 01, 2020 |
Place of establishment | Wuhan, China |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Education services |
Vairable Interest Entity Subsidiaries [Member] | Guangdong XingZhiHuo Online Training Center [Member] | |
Subsidiaries And VIEs | |
Later of date of establishment or acquisition | Aug. 18, 2022 |
Place of establishment | Guangzhou, China |
Percentage of direct or indirect economic ownership | 100% |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 636,052 | ¥ 819,911 | $ 89,586 | ||
Restricted cash | 33,901 | 22 | 4,775 | ||
Short-Term Investments | 2,253,910 | 2,923,864 | 317,457 | ||
Inventory, net | 24,596 | 22,783 | 3,464 | ||
Prepaid expenses and other current assets, net | 638,248 | 399,897 | 89,895 | ||
Total current assets | 3,586,707 | 4,166,477 | 505,177 | ||
Operating lease right-of-use assets | 189,662 | 83,663 | 26,713 | ||
Property, equipment and software, net | 533,531 | 552,032 | 75,146 | ||
Intangible assets, net | 16,227 | 18,932 | 2,285 | ||
Long-Term Investments | 1,029,632 | 0 | 145,021 | ||
Goodwill | 331 | 331 | 47 | ||
Deferred tax assets | 11,312 | 15,679 | 1,593 | ||
Rental deposit | 17,742 | 9,502 | 2,499 | ||
Other non-current assets | 1,597 | 2,186 | 225 | ||
TOTAL ASSETS | 5,413,309 | 4,876,175 | 762,448 | ||
Accrued expenses and other current liabilities | 805,032 | 662,189 | 113,386 | ||
Deferred revenue, current portion | 1,113,480 | 906,914 | 156,830 | ||
Operating lease liabilities, current portion | 50,494 | 38,326 | 7,112 | ||
Income tax payable | 4,278 | 1,793 | 603 | ||
Total current liabilities | 1,973,284 | 1,609,222 | 277,931 | ||
Deferred revenue, non-current portion | 124,141 | 52,419 | 17,485 | ||
Operating lease liabilities, non-current portion | 137,652 | 44,198 | 19,388 | ||
Deferred tax liabilities | 71,967 | 74,507 | 10,136 | ||
TOTAL LIABILITIES | 2,307,044 | 1,780,346 | $ 324,940 | ||
Net revenues | 2,960,813 | $ 417,022 | 2,498,214 | ¥ 6,561,747 | |
Net income | (7,298) | (1,028) | 13,172 | (3,103,465) | |
Net cash generated from/(used in) operating activities | 353,697 | 49,817 | 54,545 | (4,185,807) | |
Net cash (used in)/generated from investing activities | (423,978) | (59,716) | (158,385) | 4,812,502 | |
Net cash used in financing activities | (90,480) | $ (12,744) | 0 | (100,614) | |
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 232,653 | 312,055 | |||
Restricted cash | 33,901 | 22 | |||
Short-Term Investments | 1,367,078 | 1,068,365 | |||
Inventory, net | 24,596 | 22,783 | |||
Prepaid expenses and other current assets, net | 586,392 | 345,132 | |||
Total current assets | 2,244,620 | 1,748,357 | |||
Operating lease right-of-use assets | 158,054 | 41,014 | |||
Property, equipment and software, net | 517,599 | 533,588 | |||
Intangible assets, net | 16,227 | 18,932 | |||
Land use right, net | 26,568 | 27,373 | |||
Long-Term Investments | 768,182 | 0 | |||
Goodwill | 331 | 331 | |||
Deferred tax assets | 11,312 | 15,679 | |||
Rental deposit | 11,041 | 2,827 | |||
Other non-current assets | 1,024 | 1,392 | |||
Total non-current assets | 1,510,338 | 641,136 | |||
TOTAL ASSETS | 3,754,958 | 2,389,493 | |||
Accrued expenses and other current liabilities | 484,222 | 367,477 | |||
Deferred revenue, current portion | 1,113,480 | 906,914 | |||
Operating lease liabilities, current portion | 34,401 | 21,281 | |||
Income tax payable | 4,210 | 260 | |||
Total current liabilities | 1,636,313 | 1,295,932 | |||
Deferred revenue, non-current portion | 124,141 | 52,419 | |||
Operating lease liabilities, non-current portion | 121,277 | 17,457 | |||
Deferred tax liabilities | 71,850 | 74,341 | |||
Total non-current liabilities | 317,268 | 144,217 | |||
TOTAL LIABILITIES | 1,953,581 | 1,440,149 | |||
Net revenues | 2,960,813 | 2,498,214 | 6,561,747 | ||
Net income | 598,211 | 555,880 | 94,795 | ||
Net cash generated from/(used in) operating activities | 919,990 | 558,050 | (580,304) | ||
Net cash (used in)/generated from investing activities | (1,157,633) | (87,007) | 121,861 | ||
Net cash used in financing activities | ¥ 0 | ¥ 0 | ¥ (100,621) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) Customer | Dec. 31, 2023 USD ($) Customer | Dec. 31, 2022 CNY (¥) Customer | Dec. 31, 2021 CNY (¥) Customer | Dec. 31, 2023 USD ($) | Dec. 29, 2023 | |
Convenience translation rate of USD1.00 | 7.0999 | |||||
Term deposits | ¥ 328,181,000 | |||||
Held-to-maturity securities | 0 | 206,916,000 | ||||
Impairment losses on long-lived assets | 0 | $ 0 | 0 | ¥ 52,544,000 | ||
Revenue recognized that was included in deferred revenue balance | 889,909,000 | 980,385,000 | ||||
Remaining performance obligations | 1,237,621,000 | |||||
Remaining performance obligations, expected to be recognized over the next 12 months | 1,113,480,000 | |||||
Remaining performance obligations, expected to be recognized over the second 12 months | 75,615,000 | |||||
Remaining performance obligations, expected to be recognized thereafter | 48,526,000 | |||||
Government subsidies | 6,469,000 | 7,825,000 | ¥ 9,350,000 | |||
Cash and cash equivalents | ¥ 636,052,000 | ¥ 819,911,000 | $ 89,586 | |||
Concentration Risk, Percentage | 10% | 10% | 10% | 10% | ||
Available-for-sale debt investments recorded with unrealized gain | ¥ 35,450,000 | ¥ 4,318,000 | ||||
Goodwill impairment loss | 0 | $ 0 | 0 | ¥ 43,300,000 | ||
Capitalized Contract Cost, Impairment Loss | 34,528,000 | |||||
Contract costs | ¥ 0 | 0 | ||||
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 | ¥ 2,960,813,000 | $ 417,022 | 2,498,214,000 | 6,561,747,000 | ||
Maximum [Member] | ||||||
Operating Lease, Term | 7 years | 7 years | ||||
Comprehensive Tutoring Services | ||||||
Net revenues | 560,196,000 | |||||
Other Revenue | ||||||
Net revenues | ¥ 31,932,000 | 35,313,000 | 912,000 | |||
Selling and marketing expense [Member] | ||||||
Capitalized contract costs amortization | ¥ 0 | ¥ 0 | ¥ 212,880,000 | |||
Small Scale VAT Payer Entities [Member] | Educational services [Member] | ||||||
Value added tax rate | 3% | 3% | ||||
Small Scale VAT Payer Entities [Member] | Revenue on Sales [Member] | ||||||
Value added tax rate | 3% | 3% | ||||
General VAT Payer Entities [Member] | Educational services [Member] | ||||||
Value added tax rate | 6% | 6% | ||||
General VAT Payer Entities [Member] | Revenue on Sales [Member] | ||||||
Value added tax rate | 13% | 13% | ||||
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 | ¥ 610,124,000 | ¥ 472,415,000 |
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, 2023 | |
Electronic equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 35 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 37 years |
Leasehold improvement | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Useful Lives | 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) | Dec. 31, 2023 |
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) | Dec. 31, 2023 |
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 |
License | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets estimated useful lives | 7 years 4 months 24 days |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 2,960,813 | $ 417,022 | ¥ 2,498,214 | ¥ 6,561,747 |
Learning Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,872,901 | 2,436,110 | 6,560,835 | |
Educational Content and Digitalized Learning Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 55,980 | 26,791 | ||
Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 31,932 | ¥ 35,313 | ¥ 912 |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue, current portion | ¥ 1,113,480 | $ 156,830 | ¥ 906,914 | |
Deferred revenue, non-current portion | 124,141 | $ 17,485 | 52,419 | |
Contract liabilities arising from contract with customers | 1,237,621 | 959,333 | ||
Refund liability | [1] | ¥ 67,157 | ¥ 60,597 | |
[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 | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Business Acquisition [Line Items] | |||
Goodwill | ¥ 331 | $ 47 | ¥ 331 |
BUSINESS ACQUISITION - Addition
BUSINESS ACQUISITION - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Business Acquisition [Line Items] | |||
Goodwill | ¥ 331 | $ 47 | ¥ 331 |
ASSETS ACQUISITION - Additional
ASSETS ACQUISITION - Additional Information (Detail) | Aug. 31, 2022 |
XingHuo Online Computer Technology Co. Ltd [Member] | |
Asset Acquisition [Line Items] | |
Percentage of voting interests acquired | 100% |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET - Summary of prepaid expenses and other current assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Prepaid VAT and income tax | [1] | ¥ 124,951 | ¥ 101,994 |
Prepaid other service fees | [2] | 78,079 | 67,265 |
Receivables from third parties | [3] | 161,408 | 119,492 |
Amounts due from a third party | [4] | 179,200 | 78,000 |
Staff advance | 10,950 | 4,128 | |
Others | 18,407 | 4,106 | |
Total | 649,055 | 399,897 | |
Less: Allowance for expected credit losses | (10,807) | 0 | |
Prepaid expenses and other current assets Net | 638,248 | 399,897 | |
Receivable from third party payment platform [Member] | |||
Receivables from third party payment platform | [5] | 71,701 | 24,545 |
Receivable from brokers [Member] | |||
Receivables from broker | ¥ 4,359 | ¥ 367 | |
[1] Prepaid VAT and income tax mainly consist of VAT input that is expected to offset with VAT output tax or to be transferred out in the future related to 2022 and 2023. Prepaid other service fees mainly 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. Receivables from third parties mainly consist of receivables from non-consolidated variable interest entities raised from disposal of assets and technical support services in 2022, rent and sales of inventory in both 2022 and 2023. Amounts due from a third party represents loans to a non-consolidated variable interest entity with an interest rate of 4.35%. Receivables from third-party payment platforms represents withdrawable cash balance that has been received from course participants but held by the third-party payment platforms. The Group subsequently collected the full balance from the third-party payment platforms. |
PROPERTY, EQUIPMENT AND SOFTW_3
PROPERTY, EQUIPMENT AND SOFTWARE, NET - Summary of property, equipment and software (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | ¥ 711,970 | ¥ 687,480 | |
Less: Accumulated depreciation | (178,439) | (135,448) | |
Property, equipment and software, Net | 533,531 | $ 75,146 | 552,032 |
Electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 102,559 | 99,345 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 489,929 | 491,082 | |
Leasehold improvement | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 96,376 | 76,522 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 4,553 | 2,659 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | 17,767 | 17,002 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, Gross | ¥ 786 | ¥ 870 |
PROPERTY, EQUIPMENT AND SOFTW_4
PROPERTY, EQUIPMENT AND SOFTWARE, NET - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expenses | ¥ 50,732,000 | $ 7,145 | ¥ 68,807,000 | ¥ 108,446,000 |
Impairment loss on property, equipment and software | 0 | $ 0 | 0 | 52,544,000 |
Property, equipment and software | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment loss on property, equipment and software | ¥ 0 | ¥ 0 | ¥ 28,918,000 |
LAND USE RIGHTS, NET - Summary
LAND USE RIGHTS, NET - Summary of Land Use Rights (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Land Use Rights [Line Items] | ||
Land use rights | ¥ 29,788 | ¥ 29,788 |
Less: Accumulated amortization | (3,220) | (2,415) |
Land use rights net | ¥ 26,568 | ¥ 27,373 |
LAND USE RIGHTS, NET - Addition
LAND USE RIGHTS, NET - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Land Use Rights Disclosure [Line Items] | |||
Amortization expenses for land use right | ¥ 805 | ¥ 805 | ¥ 805 |
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 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | ¥ 331,000 | ¥ 331,000 | $ 47 | ||
Goodwill impairment loss | ¥ 0 | $ 0 | ¥ 0 | ¥ 43,300,000 |
INTANGIBLE ASSETS, NET - Summar
INTANGIBLE ASSETS, NET - Summary of intangible assets (Detail) - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | ¥ 34,185,000 | ¥ 34,185,000 |
Less: Accumulated amortization | (8,127,000) | (5,422,000) |
Accumulated impairment loss | (9,831,000) | (9,831,000) |
Finite-Lived Intangible Assets, Net | 16,227,000 | 18,932,000 |
Student Base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 12,510,000 | 12,510,000 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,675,000 | 1,675,000 |
License [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | ¥ 20,000,000 | ¥ 20,000,000 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | ¥ 2,705 | ¥ 1,145 | ¥ 3,311 |
Expected amortization expense of intangible assets in next twelve months | 2,705 | ||
Expected amortization expense of intangible assets year two | 2,705 | ||
Expected amortization expense of intangible assets year three | 2,705 | ||
Expected amortization expense of intangible assets year four | 2,705 | ||
Expected amortization expense of intangible assets year five | 2,705 | ||
Expected amortization expense of intangible assets thereafter | 2,703 | ||
Impairment loss on intangible assets | ¥ 0 | ¥ 0 | ¥ 9,831 |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment loss on property, equipment and software | Impairment loss on property, equipment and software | Impairment loss on property, equipment and software |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Payables and Accruals [Abstract] | ||||
Salary and welfare payable | ¥ 409,965 | ¥ 301,152 | ||
Other accrued expense | 111,134 | 129,970 | ||
Other tax payable | 71,473 | 67,334 | ||
Refund liability | [1] | 67,157 | 60,597 | |
Accrued marketing expense | 113,516 | 75,473 | ||
Payable for investment and acquisition | 26,580 | 26,580 | ||
Others | 5,207 | 1,083 | ||
Accrued expenses and other current liabilities | ¥ 805,032 | $ 113,386 | ¥ 662,189 | |
[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, 2023 CNY (¥) |
Fair Value Disclosures [Abstract] | |
Available for sale debt securities, maturity within one year | ¥ 1,766,577 |
Available for sale debt securities, maturity within one to three years | 928,200 |
Debt trading securities debt maturities within one year fair value | 159,152 |
Debt trading securities debt maturities within one to three years fair value | ¥ 101,432 |
FAIR VALUE MEASUREMENT - Summar
FAIR VALUE MEASUREMENT - Summary of assets measured at fair value on a recurring basis (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | ¥ 1,766,577 | ¥ 1,512,953 | |
Available-for-sale debt investments-Long term investment | 928,200 | ||
Short-term investments | 2,253,910 | 2,923,864 | $ 317,457 |
Available-for-sale debt investments | |||
Unrealized gains | 35,450 | 4,318 | |
Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Total | 2,955,361 | ||
Short-term investments | 2,716,948 | ||
Investments Elected Measure At Fair Value [Member] | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments elected measure at fair value | 159,152 | 1,203,995 | |
Unrealized gain | 3,315 | 1,422 | |
Investments Elected Measure At Fair Value [Member] | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments elected measure at fair value | 101,432 | ||
Available-for-sale Investments [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-short term investment | 1,512,953 | ||
Available-for-sale debt investments | 2,694,777 | ||
Available-for-sale debt investments | |||
Original cost | 2,659,327 | 1,508,635 | |
Unrealized gains | 35,450 | 4,318 | |
Unrealized loss | 0 | 0 | |
Provision for decline in value | 0 | 0 | |
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 | 1,766,577 | 1,512,953 | |
Available-for-sale debt investments | |||
Original cost | 1,752,828 | 1,508,635 | |
Unrealized gains | 13,749 | 4,318 | |
Unrealized loss | 0 | 0 | |
Provision for decline in value | 0 | 0 | |
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 | 928,200 | ||
Available-for-sale debt investments | |||
Original cost | 906,499 | ||
Unrealized gains | 21,701 | ||
Unrealized loss | 0 | ||
Provision for decline in value | 0 | ||
Quoted Prices in Active Market for Identical Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Total | 207,329 | ||
Short-term investments | 0 | ||
Quoted Prices in Active Market for Identical Assets [Member] | Investments Elected Measure At Fair Value [Member] | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments elected measure at fair value | 0 | 0 | |
Quoted Prices in Active Market for Identical Assets [Member] | Investments Elected Measure At Fair Value [Member] | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments elected measure at fair value | 0 | ||
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 | 207,329 | 0 | |
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 | ||
Significant Other Observable Inputs [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Total | 2,748,032 | ||
Short-term investments | 2,716,948 | ||
Significant Other Observable Inputs [Member] | Investments Elected Measure At Fair Value [Member] | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments elected measure at fair value | 159,152 | 1,203,995 | |
Significant Other Observable Inputs [Member] | Investments Elected Measure At Fair Value [Member] | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments elected measure at fair value | 101,432 | ||
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 | 1,559,248 | 1,512,953 | |
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 | 928,200 | ||
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt investments-Total | 0 | ||
Short-term investments | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Investments Elected Measure At Fair Value [Member] | Fair Value, Recurring [Member] | Short-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments elected measure at fair value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Investments Elected Measure At Fair Value [Member] | Fair Value, Recurring [Member] | Long-term Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments elected measure at fair value | 0 | ||
Significant Unobservable Inputs (Level 3) [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 (Level 3) [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 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 0 | |||
Share based compensation expense | ¥ 58,353 | ¥ 122,654 | ¥ 345,259 | |
Cancelled | (703,200) | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expenses related to options, weighted average period | 2 years 6 months | |||
Restricted stock units granted | 1,386,327 | |||
Exercise price per share of restricted stock units Granted | ¥ 0 | |||
Restricted stock units agggregate fair value | ¥ 39,977 | ¥ 82,690 | ¥ 558,876 | |
Restricted stock units unrecognised compensation cost | ¥ 63,207 | |||
Restricted stock units weighted aveage grant date fair value | ¥ 28.84 | ¥ 16.81 | ¥ 135.14 | |
Cancelled | 0 | 480,487 | 330,428 | |
Cancelled without concurrent grant | 1,613 | |||
Cash consideration | ¥ 24,370 | |||
Incremental compensation cost | 24,370 | |||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of options vested | ¥ 12,071 | ¥ 13,032 | 19,134 | |
Total intrinsic value of options exercised | 41,271 | ¥ 21,293 | ¥ 13,933 | |
Unrecognized compensation expenses related to options | ¥ 5,663 | |||
Unrecognized compensation expenses related to options, weighted average period | 5 years 1 month 17 days | |||
Cancelled | 703,200 | 530,700 | ||
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 | 4 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 options activities (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of options - Beginning Balance | 3,618,346 | |
Number of options - Granted | 0 | |
Number of options - Exercised | (1,070,806) | |
Number of options - Forfeited | (657,826) | |
Number of options - Cancelled | (703,200) | |
Number of options - Ending Balance | 1,186,514 | 3,618,346 |
Number of options - Options vested and expected to vest | 1,186,514 | |
Number of options - Options exercisable | 0 | |
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 | |
Weighted average grant date fair value - Beginning Balance | 13.98 | |
Weighted average grant date fair value - Granted | ¥ 0 | |
Weighted average grant date fair value - Exercised | 14.17 | |
Weighted average grant date fair value - Forfeited | ¥ 13.05 | |
Weighted average grant date fair value - Cancelled | 12.72 | |
Weighted average grant date fair value - Ending Balance | 15.08 | ¥ 13.98 |
Weighted average grant date fair value - Options vested and expected to vest | 15.08 | |
Weighted average grant date fair value - Options exercisable | ¥ 0 | |
Weighted average remaining contractual term (years) | 5 years 1 month 17 days | 5 years 9 months |
Weighted average remaining contractual term (years) - Options vested and expected to vest | 5 years 1 month 17 days | |
Weighted average remaining contractual term (years) - Options exercisable | 0 years | |
Aggregate intrinsic value - Outstanding | ¥ 45,731 | ¥ 88,310 |
Aggregate intrinsic value - Options vested and expected to vest | 45,731 | |
Aggregate intrinsic value - Options exercisable | ¥ 0 |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of RSUs Activity (Detail) - RSUs [Member] - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unvested balance at January 1, 2023 | 5,420,374 | ||
Granted | 1,386,327 | ||
Vested | (1,427,285) | ||
Forfeited | (543,757) | ||
Cancelled | 0 | (480,487) | (330,428) |
Unvested balance at December 31, 2023 | 4,835,659 | 5,420,374 |
ORDINARY SHARES - Additional In
ORDINARY SHARES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) shares | Nov. 22, 2023 USD ($) | Nov. 22, 2022 USD ($) | |
Stock repurchased during period value | ¥ | ¥ 90,492 | |||
Reissuance of treasury stock for share-based compensation | shares | 186,667 | 186,667 | ||
November 2022 Share Repurchase Program [Member] | ||||
Stock repurchase program authorized amount | $ | $ 80,000 | $ 30,000 | ||
ADS [Member] | November 2022 Share Repurchase Program [Member] | ||||
Stock repurchased during period shares | shares | 4,867,118 | 4,867,118 | ||
Stock repurchased during period value | $ | $ 12,440 | |||
Common Class A [Member] | ||||
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 B [Member] | ||||
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 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | 36 Months Ended | |||||||||||
Mar. 31, 2018 | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 CNY (¥) ¥ / shares | Dec. 31, 2022 HKD ($) | Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2027 | Dec. 31, 2024 | Dec. 31, 2023 CNY (¥) | |
Income Tax Disclosure [Line Items] | |||||||||||||||
Income tax rate | 25% | 25% | 25% | 25% | 25% | ||||||||||
Net operating loss carried forward | ¥ | ¥ 2,975,267 | ¥ 2,975,267 | |||||||||||||
Increase Decrease in net income/loss per ordinary share-basic | ¥ / shares | ¥ 0.1 | ¥ 0 | ¥ 0.76 | ||||||||||||
Uncertain tax positions | ¥ | ¥ 0 | ¥ 0 | |||||||||||||
Increase Decrease in net income/loss per ordinary share-diluted | ¥ / shares | ¥ 0.1 | ¥ 0 | ¥ 0.76 | ||||||||||||
Exemption For Income Tax Holiday [Member] | |||||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||||
Increase (decrease) in income tax expenses | ¥ | ¥ 17,480 | ¥ 581 | ¥ (129,026) | ||||||||||||
Minimum | |||||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||||
Net operating loss carried forward, expire date | Dec. 31, 2024 | Dec. 31, 2024 | |||||||||||||
Maximum | |||||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||||
Net operating loss carried forward, expire date | Dec. 31, 2033 | Dec. 31, 2033 | |||||||||||||
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% | 15% | 15% | 15% | |||||||||||
Beijing Lexuebang [Member] | Software Enterprise [Member] | |||||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||||
Income tax rate | 0% | 0% | 12.50% | ||||||||||||
Wuhan Yuexuebang [Member] | Software Enterprise [Member] | |||||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||||
Income tax rate | 0% | 0% | 12.50% | ||||||||||||
Beijing Yuexuebang [Member] | Software Enterprise [Member] | |||||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||||
Income tax rate | 0% | 12.50% | |||||||||||||
Beijing Gaotu [Member] | High And New Technology Enterprise | |||||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||||
Income tax rate | 15% | 15% | 15% | 15% | 15% | 15% | |||||||||
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expenses | ¥ (8,744) | ¥ (1,906) | ¥ (1) | |
Deferred tax benefits/(expenses) | (1,913) | 17,611 | (40,948) | |
Income tax benefits/(expenses) | ¥ (10,657) | $ (1,501) | ¥ 15,705 | ¥ (40,949) |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||||
Deductible temporary difference related to advertising expenses | ¥ 764,166 | ¥ 778,837 | ||
Net operating loss carrying forwards | 641,220 | 584,693 | ||
Transfer of intangible assets | 1,171 | 1,340 | ||
Accrued liabilities | 1,876 | 1,876 | ||
Total deferred tax assets | 1,408,433 | 1,366,746 | ||
Less: valuation allowance | (1,397,121) | (1,351,067) | ¥ (1,332,885) | ¥ (573,565) |
Deferred tax assets, net | 11,312 | 15,679 | ||
Deferred tax liabilities | ||||
Building and land use right | 67,507 | 69,307 | ||
Intangible assets | 4,045 | 4,719 | ||
Unrecognized gains of investments | 415 | 481 | ||
Total deferred tax liabilities | ¥ 71,967 | ¥ 74,507 |
INCOME TAXES - Summary of movem
INCOME TAXES - Summary of movements of valuation allowance (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the period | ¥ 1,351,067 | ¥ 1,332,885 | ¥ 573,565 |
Acquisitions | 0 | 6,668 | 0 |
Additions | 46,054 | 11,514 | 759,320 |
Reversal | 0 | 0 | 0 |
Balance at end of the period | ¥ 1,397,121 | ¥ 1,351,067 | ¥ 1,332,885 |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
(Loss)/income before provision for income tax and share of results of equity investees | ¥ 12,524 | $ 1,764 | ¥ (2,533) | ¥ (3,062,214) |
Income tax benefits/(expense) computed at an applicable tax rate of 25% | (3,131) | 633 | 765,554 | |
Effect of permanent differences | (27,346) | (1,423) | (8,186) | |
Effect of research and development super-deduction | 44,935 | 36,263 | 89,287 | |
Effect of preferential tax rate | 17,480 | 581 | (129,026) | |
Effect on tax rates in different tax jurisdictions | 3,459 | (8,835) | 742 | |
Change in valuation allowance | (46,054) | (11,514) | (759,320) | |
Income tax benefits/(expenses) | ¥ (10,657) | $ (1,501) | ¥ 15,705 | ¥ (40,949) |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax Expense Applicable Tax Rate | 25% | 25% | 25% |
NET (LOSS)_INCOME PER SHARE - S
NET (LOSS)/INCOME PER SHARE - Summary of computation of basic and diluted net (loss)/income per share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net (loss)/income | ¥ (7,298) | $ (1,028) | ¥ 13,172 | ¥ (3,103,465) |
Net (loss)/income attributed to ordinary shareholders for computing net (loss)/ income per ordinary shares-basic | ¥ (7,298) | $ (1,028) | ¥ 13,172 | ¥ (3,103,465) |
Denominator: | ||||
Weighted average ordinary shares outstanding used in computing net (loss)/ income per ordinary shares-basic | 173,725,790 | 173,725,790 | 172,254,080 | 170,790,979 |
Net (loss)/income per ordinary share attributable to ordinary shareholders-basic | (per share) | ¥ (0.04) | $ (0.01) | ¥ 0.08 | ¥ (18.17) |
Denominator: | ||||
Weighted average ordinary shares basic outstanding | 173,725,790 | 173,725,790 | 172,254,080 | 170,790,979 |
Effect of potentially diluted stock options | 0 | 0 | 2,931,766 | 0 |
Effect of potentially diluted RSUs | 0 | 0 | 805,638 | 0 |
Weighted average ordinary shares outstanding used in computing net (loss)/income per ordinary shares-diluted | 173,725,790 | 173,725,790 | 175,991,484 | 170,790,979 |
Net (loss)/income per ordinary share attributable to ordinary shareholders-diluted | (per share) | ¥ (0.04) | $ (0.01) | ¥ 0.07 | ¥ (18.17) |
NET (LOSS)_INCOME PER SHARE - A
NET (LOSS)/INCOME PER SHARE - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive common shares excluded from calculation of diluted net (loss)/income per ordinary share in connection with RSUs and share options | 6,022,173 | 1,093,923 | 8,204,965 |
EMPLOYEE DEFINED CONTRIBUTION_2
EMPLOYEE DEFINED CONTRIBUTION PLAN - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee benefit expense | ¥ 176,965 | ¥ 125,666 | ¥ 393,812 |
RELATED PARTY TRANSACTION - Add
RELATED PARTY TRANSACTION - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | May 31, 2023 CNY (¥) | |
Related Party Transaction [Line Items] | |||||
Deconsolidation related party description | The transaction was accounted as a deconsolidation of the subsidiary under common control. In connection with such deconsolidation, the Company obtained a call option to purchase the 60% equity interest held by Mr. Larry Xiangdong Chen, or to designate any third parties to repurchase the 60% equity interest held by Mr. Larry Xiangdong Chen within seven months after the deconsolidation date. | The transaction was accounted as a deconsolidation of the subsidiary under common control. In connection with such deconsolidation, the Company obtained a call option to purchase the 60% equity interest held by Mr. Larry Xiangdong Chen, or to designate any third parties to repurchase the 60% equity interest held by Mr. Larry Xiangdong Chen within seven months after the deconsolidation date. | |||
Share of results of equity investees | ¥ 9,165 | $ 1,291 | ¥ 0 | ¥ 302 | |
Deconsolidation of a subsidiary | 19,009 | ||||
Beijing GaoTuJiaPin Technology Co., Ltd ("GaoTuJiaPin") | |||||
Related Party Transaction [Line Items] | |||||
Share of results of equity investees | 9,165 | ||||
Mr. Larry Xiangdong Chen | Beijing GaoTuJiaPin Technology Co., Ltd ("GaoTuJiaPin") | |||||
Related Party Transaction [Line Items] | |||||
Equity method investments | ¥ 15,000 | ||||
Percentage of equity interest | 60% | ||||
Mr. Larry Xiangdong Chen | Call Option | Beijing GaoTuJiaPin Technology Co., Ltd ("GaoTuJiaPin") | |||||
Related Party Transaction [Line Items] | |||||
Percentage of equity interest | 60% | ||||
Additional paid-in capital [Member] | |||||
Related Party Transaction [Line Items] | |||||
Deconsolidation of a subsidiary | ¥ 19,009 |
LEASE - Additional Information
LEASE - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease expenses | ¥ 40,772 | ¥ 32,714 | ¥ 193,957 |
Leases that have not yet commenced | As of December 31, 2023, the Group did not have additional operating leases that have not yet commenced. | ||
Financing lease | As of December 31, 2022 and 2023, the Group had no long-term leases that were classified as a financing lease. | ||
Gain (loss) on termination of lease | ¥ 41 | ||
Noncash decrease of operating lease right-of-use assets | ¥ 9,272 |
LEASE - Supplementary Informati
LEASE - Supplementary Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | ¥ 43,373 | ¥ 37,027 | ||
Non-cash right-of-use assets in exchange for new lease liabilities: | ||||
Operating leases | ¥ 156,534 | $ 22,047 | ¥ 38,953 | ¥ 39,069 |
Weighted average remaining lease term | ||||
Operating leases | 4 years 2 months 12 days | 4 years 2 months 12 days | 2 years 10 months 24 days | |
Weighted average discount rate | ||||
Operating leases | 6.80% | 6.80% | 7.20% |
LEASE - Summary of future minim
LEASE - Summary of future minimum payment under non-cancelable operating leases (Detail) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | |
2024 | ¥ 62,025 |
2025 | 58,617 |
2026 | 34,446 |
2027 | 25,295 |
2028 | 20,704 |
2029 and thereafter | 16,572 |
Less: imputed interest | (29,513) |
Total | ¥ 188,146 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 Segment | |
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, 2023 | Dec. 31, 2022 | |
Restricted Net Assets [Line Items] | ||
Net assets not available for distribution | ¥ 4,791,223 | ¥ 4,738,378 |
People Republic of China [Member] | ||
Restricted Net Assets [Line Items] | ||
Appropriation of after tax profit to statutory common reserve required minimum percentage | 10% | |
Appropriation of after tax profit to statutory common reserve limit registered capital percentage | 50% |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | ¥ 636,052 | $ 89,586 | ¥ 819,911 | |||
Short-term investments | 2,253,910 | 317,457 | 2,923,864 | |||
Prepaid expenses and other current assets | 638,248 | 89,895 | 399,897 | |||
Total current assets | 3,586,707 | 505,177 | 4,166,477 | |||
Long-term investments | 1,029,632 | 145,021 | 0 | |||
TOTAL ASSETS | 5,413,309 | 762,448 | 4,876,175 | |||
Accrued expenses and other current liabilities | 805,032 | 113,386 | 662,189 | |||
Amounts due to subsidiaries and VIEs | 5,207 | 1,083 | ||||
Total current liabilities | 1,973,284 | 277,931 | 1,609,222 | |||
TOTAL LIABILITIES | 2,307,044 | 324,940 | 1,780,346 | |||
Treasury stock, at cost | (85,178) | (11,997) | ||||
Additional paid-in capital | 7,987,957 | 1,125,080 | 7,915,899 | |||
Accumulated other comprehensive loss | (33,209) | (4,677) | (64,062) | |||
Statutory reserves | 50,225 | 7,074 | 40,380 | |||
Accumulated deficit | (4,813,646) | (677,988) | (4,796,503) | |||
TOTAL SHAREHOLDERS' EQUITY | 3,106,265 | 437,508 | 3,095,829 | ¥ 2,880,942 | ¥ 5,729,855 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,413,309 | 762,448 | 4,876,175 | |||
Common Class A [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Ordinary shares | 68 | 10 | 67 | |||
Common Class B [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Ordinary shares | 48 | 6 | 48 | |||
Parent [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | 98,456 | 13,867 | 3,731 | $ 526 | ¥ 11,260 | ¥ 8,430 |
Short-term investments | 527,692 | 74,324 | 734,142 | |||
Prepaid expenses and other current assets | 268 | 38 | 1,787 | |||
Amounts due from subsidiaries and VIEs | 6,508,527 | 916,707 | 6,459,723 | |||
Total current assets | 7,134,943 | 1,004,936 | 7,199,383 | |||
Long-term investments | 209,252 | 29,473 | 0 | |||
TOTAL ASSETS | 7,344,195 | 1,034,409 | 7,199,383 | |||
Accrued expenses and other current liabilities | 4,636 | 653 | 5,072 | |||
Amounts due to subsidiaries and VIEs | 108,120 | 15,228 | 108,120 | |||
Total current liabilities | 112,756 | 15,881 | 113,192 | |||
Deficit of investments in subsidiaries and VIEs | 4,125,174 | 581,020 | 3,990,362 | |||
TOTAL LIABILITIES | 4,237,930 | 596,901 | 4,103,554 | |||
Treasury stock, at cost | (85,178) | (11,997) | 0 | |||
Additional paid-in capital | 7,987,957 | 1,125,080 | 7,915,899 | |||
Accumulated other comprehensive loss | (33,209) | (4,677) | (64,062) | |||
Statutory reserves | 50,225 | 7,074 | 40,380 | |||
Accumulated deficit | (4,813,646) | (677,988) | (4,796,503) | |||
TOTAL SHAREHOLDERS' EQUITY | 3,106,265 | 437,508 | 3,095,829 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,344,195 | 1,034,409 | 7,199,383 | |||
Parent [Member] | Common Class A [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Ordinary shares | 68 | 10 | 67 | |||
Parent [Member] | Common Class B [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Ordinary shares | ¥ 48 | $ 6 | ¥ 48 |
ADDITIONAL INFORMATION-FINANC_3
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Condensed Financial Information of Parent Company Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, shares outstanding | 172,111,890 | |
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 | 101,974,316 | 100,077,116 |
Ordinary shares, shares outstanding | 98,806,602 | 99,553,256 |
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 |
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 | 101,974,316 | 100,077,116 |
Ordinary shares, shares outstanding | 98,806,602 | 99,553,256 |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
General and administrative expenses | ¥ (356,369) | $ (50,194) | ¥ (290,339) | ¥ (720,253) |
Total operating expenses | (2,319,612) | (326,711) | (1,915,216) | (7,344,486) |
Loss from operations | (149,006) | (20,987) | (118,052) | (3,180,343) |
(Loss)/income before provision for income tax and share of results of equity investees | 12,524 | 1,764 | (2,533) | (3,062,214) |
Net (loss)/income | (7,298) | (1,028) | 13,172 | (3,103,465) |
Parent [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
General and administrative expenses | (8,477) | (1,194) | (8,807) | (25,357) |
Total operating expenses | (8,477) | (1,194) | (8,807) | (25,357) |
Loss from operations | (8,477) | (1,194) | (8,807) | (25,357) |
Equity in (loss)/gain of subsidiaries and VIEs | (28,414) | (4,002) | 45,545 | (3,106,437) |
Income/(loss) from non-operations | 29,593 | 4,168 | (23,566) | 28,329 |
(Loss)/income before provision for income tax and share of results of equity investees | (7,298) | (1,028) | 13,172 | (3,103,465) |
Net (loss)/income | ¥ (7,298) | $ (1,028) | ¥ 13,172 | ¥ (3,103,465) |
ADDITIONAL INFORMATION-FINANC_5
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Condensed Financial Information of Parent Company Statement of Comprehensive (Loss)/Income (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss)/income | ¥ (7,298) | $ (1,028) | ¥ 13,172 | ¥ (3,103,465) |
Other comprehensive (loss)/income, net of tax: | ||||
Change in cumulative foreign currency translation adjustments | 29,804 | 4,198 | 72,703 | (73,936) |
Unrealized gains on available-for-sale investments (net of tax effect of RMB8,598, RMB8,703 and RMB6,464 for the years ended December 31, 2021, 2022 and 2023, respectively) | 25,792 | 3,633 | 39,729 | 48,191 |
Transfer to statements of operations of realized gains on available-for-sale investments (net of tax effect of RMB8,302, RMB8,881 and RMB6,487 for the years ended December 31, 2021, 2022 and 2023, respectively) | (24,743) | (3,485) | (33,383) | (57,461) |
Total comprehensive (loss)/income attributable to Gaotu Techedu Inc. | 23,555 | 3,318 | 92,221 | (3,186,671) |
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss)/income | (7,298) | (1,028) | 13,172 | (3,103,465) |
Other comprehensive (loss)/income, net of tax: | ||||
Change in cumulative foreign currency translation adjustments | 29,804 | 4,198 | 72,703 | (73,936) |
Unrealized gains on available-for-sale investments (net of tax effect of RMB8,598, RMB8,703 and RMB6,464 for the years ended December 31, 2021, 2022 and 2023, respectively) | 25,792 | 3,633 | 39,729 | 48,191 |
Transfer to statements of operations of realized gains on available-for-sale investments (net of tax effect of RMB8,302, RMB8,881 and RMB6,487 for the years ended December 31, 2021, 2022 and 2023, respectively) | (24,743) | (3,485) | (33,383) | (57,461) |
Total comprehensive (loss)/income attributable to Gaotu Techedu Inc. | ¥ 23,555 | $ 3,318 | ¥ 92,221 | ¥ (3,186,671) |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||
Tax Effect Of Unrealized Gain On Available For Sale Investments | ¥ 6,464 | ¥ 8,703 | ¥ 8,598 |
Tax effect of transfer to statements of operations of realized gains on available-for-sale investments | 6,487 | 8,881 | 8,302 |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Tax Effect Of Unrealized Gain On Available For Sale Investments | 6,464 | 8,703 | 8,598 |
Tax effect of transfer to statements of operations of realized gains on available-for-sale investments | ¥ 6,487 | ¥ 8,881 | ¥ 8,302 |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net (loss)/income | ¥ (7,298) | $ (1,028) | ¥ 13,172 | ¥ (3,103,465) |
Adjustments to reconcile net (loss)/income to net cash generated from operating activities: | ||||
Realized gains from investments | (31,230) | (4,399) | (42,264) | (65,763) |
Fair value change of fair value option | (2,065) | (291) | 13,232 | 0 |
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | (182,561) | (25,713) | (12,294) | 459,506 |
Accrued expenses and other current liabilities | 202,703 | 28,550 | (329,923) | (942,260) |
Net cash (used in)/generated from operating activities | 353,697 | 49,817 | 54,545 | (4,185,807) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Net cash generated from/(used in) investing activities | (423,978) | (59,716) | (158,385) | 4,812,502 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Capital contribution | 12 | 2 | 0 | 7 |
Repurchase of ordinary shares | (90,492) | (12,746) | 0 | 0 |
Net cash generated from/(used in) financing activities | (90,480) | (12,744) | 0 | (100,614) |
Effect of exchange rate changes | 10,781 | 1,519 | 26,650 | 15,818 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (149,980) | (21,124) | (77,190) | 541,899 |
Cash and cash equivalents at beginning of the year | 819,911 | |||
Cash and cash equivalents at end of the year | 636,052 | 89,586 | 819,911 | |
Parent Company [Member] | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net (loss)/income | (7,298) | (1,028) | 13,172 | (3,103,465) |
Adjustments to reconcile net (loss)/income to net cash generated from operating activities: | ||||
Equity in loss/(gain) of subsidiaries and VIEs | 28,414 | 4,002 | (45,545) | 3,106,437 |
Realized gains from investments | (4,946) | (697) | 0 | (8,498) |
Fair value change of fair value option | (5,301) | (747) | 31,080 | 0 |
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | 4,145 | 584 | (1,324) | 2,083 |
Accrued expenses and other current liabilities | (436) | (61) | (113) | (3,618) |
Net cash (used in)/generated from operating activities | 14,578 | 2,053 | (2,730) | (7,061) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Loans to subsidiaries | (250,744) | (35,317) | (303,214) | (6,248,209) |
Repayment from subsidiaries | 402,800 | 56,733 | 100,000 | 706,870 |
Purchase of short-term and long-term investments | (2,085,667) | (293,760) | (7,303,902) | (26,583,981) |
Proceeds from maturity of short term and long term investments investments | 2,116,220 | 298,063 | 7,478,284 | 32,131,469 |
Net cash generated from/(used in) investing activities | 182,609 | 25,719 | (28,832) | 6,149 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Capital contribution | 12 | 2 | 0 | 7 |
Repurchase of ordinary shares | (90,492) | (12,746) | 0 | 0 |
Net cash generated from/(used in) financing activities | (90,480) | (12,744) | 0 | 7 |
Effect of exchange rate changes | (11,982) | (1,687) | 24,033 | 3,735 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 94,725 | 13,341 | (7,529) | 2,830 |
Cash and cash equivalents at beginning of the year | 3,731 | 526 | 11,260 | 8,430 |
Cash and cash equivalents at end of the year | ¥ 98,456 | $ 13,867 | ¥ 3,731 | ¥ 11,260 |
ADDITIONAL INFORMATION-FINANC_8
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 29, 2023 | |
Condensed Financial Statements, Captions [Line Items] | ||
Convenience translation rate of USD1.00 | 7.0999 | |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Convenience translation rate of USD1.00 | 7.0999 | |
Assets, Total [Member] | Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Percentage of consolidated net assets accounted by VIE and its subsidiaries | 25% |