Cover Page
Cover Page - shares | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2021 | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | First High-School Education Group Co., Ltd. | |
Entity Central Index Key | 0001786182 | |
Entity File Number | 001-40150 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Interactive Data Current | Yes | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Document Registration Statement | false | |
Entity Accounting Standard | U.S. GAAP | |
ICFR Auditor Attestation Flag | false | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | No. 1, Tiyuan Road, Xishan District | |
Entity Address, City or Town | Kunming | |
Entity Address, Postal Zip Code | 650228 | |
Entity Address, Country | CN | |
ADR [Member] | ||
Document Information [Line Items] | ||
Security Exchange Name | NYSE | |
Title of 12(b) Security | American depositary shares | |
Trading Symbol | FHS | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 39,309,480 | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Class A ordinary shares | |
No Trading Symbol Flag | true | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 47,529,220 | |
Business Contact [Member] | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | No. 1, Tiyuan Road, Xishan District | |
Entity Address, City or Town | Kunming | |
Entity Address, Postal Zip Code | 650228 | |
Entity Address, Country | CN | |
Contact Personnel Name | Lidong Zhu, Chief Financial Officer | |
Contact Personnel Email Address | zhulidong@longspringedu.com | |
City Area Code | +86 | |
Local Phone Number | 871-6515-5502 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets, Current [Abstract] | ||
Cash | ¥ 148,756 | ¥ 153,418 |
Restricted cash | 59,600 | |
Accounts receivable, net of allowance for doubtful accounts | 30,903 | 7,687 |
Amounts due from related parties | 80,464 | 82,225 |
Prepaid expenses and other current assets | 53,450 | 21,803 |
Total current assets | 373,173 | 265,133 |
Assets, Noncurrent [Abstract] | ||
Property and equipment, net | 142,407 | 136,431 |
Intangible assets, net | 48,976 | 50,705 |
Goodwill | 40,218 | 40,218 |
Deferred tax assets | 12,274 | 6,567 |
Amounts due from related parties | 500 | 5,600 |
Other non-current assets | 18,524 | 10,707 |
Total assets | 636,072 | 515,361 |
Liabilities, Current [Abstract] | ||
Contract liabilities (including amounts of VIEs without recourse to the Company of RMB169,151 and RMB203,248 as of December 31, 2019 and 2020, respectively) | 203,482 | 171,303 |
Deferred revenue from governments (including amounts of VIEs without recourse to the Company of RMB17,789 and RMB13,770 as of December 31, 2019 and 2020, respectively) | 13,770 | 17,789 |
Borrowings under financing arrangements (including amounts of VIEs without recourse to the Company of RMB14,577 and RMB64,140 as of December 31, 2019 and 2020, respectively) | 64,140 | 14,577 |
Bank loan | 46,637 | |
Accounts payable (including amounts of VIEs without recourse to the Company of RMB4,331 and RMB3,655 as of December 31, 2019 and 2020, respectively) | 8,064 | 11,207 |
Accrued expenses and other payables (including amounts of VIEs without recourse to the Company of RMB67,167 and RMB68,078 as of December 31, 2019 and 2020, respectively) | 91,253 | 77,591 |
Income tax payables (including amounts of VIEs without recourse to the Company of RMB2,854 and RMB 5,763 as of December 31, 2019 and 2020, respectively) | 15,377 | 6,055 |
Amounts due to related parties (including amounts of VIEs without recourse to the Company of RMB54,065 and RMB72,648 as of December 31, 2019 and 2020, respectively) | 218,996 | 113,359 |
Total current liabilities | 661,719 | 411,881 |
Liabilities, Noncurrent [Abstract] | ||
Contract liabilities (including amounts of VIEs without recourse to the Company of RMB3,790 and RMB7,274 as of December 31, 2019 and 2020, respectively) | 7,274 | 5,778 |
Deferred revenue from governments (including amounts of VIEs without recourse to the Company of RMB4,032 and RMB12,370 as of December 31, 2019 and 2020, respectively) | 12,370 | 4,032 |
Borrowings under financing arrangements (including amounts of VIEs without recourse to the Company of RMB7,453 and RMB28,643 as of December 31, 2019 and 2020, respectively) | 28,643 | 7,453 |
Other payables (including amounts of VIEs without recourse to the Company of RMB 2,760 and RMB 6,276 as of December 31, 2019 and 2020, respectively) | 9,607 | 3,686 |
Deferred tax liabilities (including amounts of VIEs without recourse to the Company of RMB12,323 and RMB11,933 as of December 31, 2019 and 2020, respectively) | 11,933 | 12,323 |
Total liabilities | 731,546 | 445,153 |
Equity/(Deficit) | ||
Ordinary shares (US$0.00001 par value; 5,000,000,000 shares authorized; and 70,488,700 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | ||
Additional paid-in capital | 64,128 | 221,791 |
Statutory reserves | 41,591 | 29,101 |
Accumulated other comprehensive income | 144 | |
Accumulated deficit | (201,524) | (180,770) |
Total equity/(deficit) attributable to the shareholders of the Company | (95,661) | 70,122 |
Non-controlling interests | 187 | 86 |
Total equity/(deficit) | (95,474) | 70,208 |
Commitments and contingencies | ||
Total liabilities and equity/(deficit) | ¥ 636,072 | ¥ 515,361 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares |
Contract with customer liability current | ¥ 203,482 | ¥ 171,303 |
Deferred revenue from governments | 13,770 | 17,789 |
Sale and lease back transaction amount due under financing arrangement current | 64,140 | 14,577 |
Accounts payable current | 8,064 | 11,207 |
Income tax payables current | 15,377 | 6,055 |
Amounts due to related parties current | 218,996 | 113,359 |
Contract with customers liability non-current | 7,274 | 5,778 |
Deferred revenue from governments | 12,370 | 4,032 |
Sale and lease back transaction amount due under financing arrangement non-current | 28,643 | 7,453 |
Deferred tax liabilities | ¥ 11,933 | ¥ 12,323 |
Common stock, shares authorized | shares | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | shares | 70,488,700 | 70,488,700 |
Common stock, shares outstanding | shares | 70,488,700 | 70,488,700 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Contract with customer liability current | ¥ 203,248 | ¥ 169,151 |
Deferred revenue from governments | 13,770 | 17,789 |
Sale and lease back transaction amount due under financing arrangement current | 64,140 | 14,577 |
Accounts payable current | 3,655 | 4,331 |
Income tax payables current | 5,763 | 2,854 |
Amounts due to related parties current | 72,648 | 54,056 |
Contract with customers liability non-current | 7,274 | 3,790 |
Sale and lease back transaction amount due under financing arrangement non-current | 28,643 | 7,453 |
Deferred tax liabilities | 11,933 | 12,323 |
Nonrecourse [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Contract with customer liability current | 203,248 | 169,151 |
Deferred revenue from governments | 13,770 | 17,789 |
Sale and lease back transaction amount due under financing arrangement current | 64,140 | 14,577 |
Accounts payable current | 3,655 | 4,331 |
Accured expenses and other payables current | 68,078 | 67,167 |
Income tax payables current | 5,763 | 2,854 |
Amounts due to related parties current | 72,648 | 54,065 |
Contract with customers liability non-current | 7,274 | 3,790 |
Deferred revenue from governments | 12,370 | 4,032 |
Sale and lease back transaction amount due under financing arrangement non-current | 28,643 | 7,453 |
Other payables non-current | 6,276 | 2,760 |
Deferred tax liabilities | ¥ 11,933 | ¥ 12,323 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/ (LOSS) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Revenues [Abstract] | |||
Revenue from customers | ¥ 404,562 | ¥ 308,715 | ¥ 240,041 |
Revenue from government cooperative agreements | 41,272 | 27,804 | 13,647 |
Total revenues | 445,834 | 336,519 | 253,688 |
Cost of revenues | (287,233) | (231,993) | (179,034) |
Gross Profit | 158,601 | 104,526 | 74,654 |
Operating Expenses And Income [Abstract] | |||
Selling and marketing expenses | (7,625) | (4,834) | (5,470) |
General and administrative expenses | (60,475) | (57,284) | (224,576) |
Government grants | 9,185 | 6,606 | 6,384 |
Donation | (10,000) | (10,000) | |
(Loss)/income from operations | 99,686 | 39,014 | (159,008) |
Other income (expenses): | |||
Interest income | 1,155 | 983 | 469 |
Interest expense | (5,368) | (1,407) | |
Change in fair value of contingent consideration | (379) | (1,144) | (731) |
Foreign currency exchange loss, net | (469) | (169) | (903) |
Others, net | 1,699 | (217) | 673 |
(Loss)/income before income taxes | 96,324 | 37,060 | (159,500) |
Income tax expenses | (15,404) | (5,370) | (10,186) |
Net (loss)/ income | 80,920 | 31,690 | (169,686) |
Shareholders of the Company | 80,819 | 31,604 | (169,686) |
Non-controlling interests | 101 | 86 | |
Foreign currency translation adjustments, net of tax | 144 | ||
Comprehensive (loss)/income | 81,064 | 31,690 | (169,686) |
Attributable to [Abstract] | |||
Shareholders of the Company | 80,963 | 31,604 | ¥ (169,686) |
Non-controlling interests | ¥ 101 | ¥ 86 | |
(Loss)/earnings per ordinary share | |||
Net (loss)/earnings per ordinary share – basic and diluted | (per share) | ¥ 1.15 | ¥ 0.45 | ¥ (2.50) |
Weighted average number of ordinary share outstanding | |||
Weighted average number of ordinary shares – basic and diluted | shares | 70,488,700 | 70,488,700 | 67,914,968 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY/ (DEFICIT) - CNY (¥) ¥ in Thousands | Total | Number of shares | Additional Paid-in Capital [Member] | Accumulated other comprehensive income | Statutory Reserve [Member] | Retained earnings/ (accumulated deficit) | Total equity/(deficit) attributable to the shareholders of the Company | Noncontrolling Interest [Member] |
Beginning balance, share at Dec. 31, 2017 | 67,692,830 | |||||||
Beginning balance at Dec. 31, 2017 | ¥ 83,905 | ¥ 16,878 | ¥ 16,108 | ¥ 50,919 | ¥ 83,905 | |||
Net (loss)/ income for the year | (169,686) | (169,686) | (169,686) | |||||
Comprehensive (loss)/income | (169,686) | (169,686) | (169,686) | |||||
Transfer to statutory reserve | 5,102 | (5,102) | ||||||
Capital injection in connection with 2018 share incentive plan of the Parent | 27,149 | 27,149 | 27,149 | |||||
Capital injection in connection with 2018 share incentive plan of the Parent , shares | 2,795,870 | |||||||
Share-based compensation | 177,764 | 177,764 | 177,764 | |||||
Distribution of profits | ¥ (80,614) | (80,614) | (80,614) | |||||
Ending balance, share at Dec. 31, 2018 | 1 | 70,488,700 | ||||||
Ending balance at Dec. 31, 2018 | ¥ 38,518 | 221,791 | 21,210 | (204,483) | 38,518 | |||
Net (loss)/ income for the year | 31,690 | 31,604 | 31,604 | ¥ 86 | ||||
Comprehensive (loss)/income | ¥ 31,690 | 31,604 | 31,604 | 86 | ||||
Transfer to statutory reserve | 7,891 | (7,891) | ||||||
Ending balance, share at Dec. 31, 2019 | 70,488,700 | 70,488,700 | ||||||
Ending balance at Dec. 31, 2019 | ¥ 70,208 | 221,791 | 29,101 | (180,770) | 70,122 | 86 | ||
Net (loss)/ income for the year | 80,920 | 80,819 | 80,819 | 101 | ||||
Other comprehensive income | 144 | ¥ 144 | 144 | |||||
Comprehensive (loss)/income | 81,064 | 144 | 80,819 | 80,963 | 101 | |||
Transfer to statutory reserve | 12,490 | (12,490) | ||||||
Distribution to the Parent | (89,083) | (89,083) | (89,083) | |||||
Dividend declared | ¥ (157,663) | (157,663) | (157,663) | |||||
Ending balance, share at Dec. 31, 2020 | 70,488,700 | 70,488,700 | ||||||
Ending balance at Dec. 31, 2020 | ¥ (95,474) | ¥ 64,128 | ¥ 144 | ¥ 41,591 | ¥ (201,524) | ¥ (95,661) | ¥ 187 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss)/income | ¥ 80,920 | ¥ 31,690 | ¥ (169,686) |
Adjustments to reconcile net (loss) / income to net cash generated from operating activities: | |||
Depreciation and amortization | 19,237 | 14,210 | 8,557 |
Change of fair value of contingent consideration in a business combination | 379 | 1,144 | 731 |
Allowance for other doubtful accounts | 32 | 318 | |
Share-based compensation expense | 177,764 | ||
Deferred income taxes | (6,097) | (3,083) | (5,902) |
Foreign currency exchange loss | 469 | 169 | 903 |
Loss on disposal of property and equipment | 55 | ||
Changes in operating assets and liabilities, net of effect of an acquisition and disposals: | |||
Decrease/(increase) in accounts receivable | (23,216) | 786 | 23,134 |
Decrease in amounts due from related parties | 2,231 | ||
(Increase)/decrease in prepaid expenses and other current assets | (7,898) | 1,650 | (5,952) |
Decrease/(increase) in other non-current assets | (2,831) | 8,846 | 6,168 |
Increase in contract liabilities | 33,675 | 42,681 | 35,443 |
Increase/(decrease) in accounts payable | (3,143) | 794 | 2,685 |
Increase in amounts due to a related party | 413 | ||
Increase/(decrease) in income tax payable | 9,322 | (3,766) | 1,622 |
(Decrease)/increase in deferred revenue from governments | 4,319 | 6,822 | (1,696) |
Increase/(decrease) in accrued expenses and other payables | 16,868 | (289) | 14,343 |
Net cash generated from operating activities | 122,472 | 101,686 | 90,663 |
Cash flows from investing activities | |||
Acquisition of subsidiaries, net of cash received | (21,649) | ||
Payments for purchase of property and equipment | (22,306) | (32,026) | (71,103) |
Payments for purchase of intangible assets | (1,635) | (1,551) | (873) |
Proceeds from sale of property and equipment | 79 | ||
Advances to and expense paid on behalf of related parties | (1,938) | (9,783) | (55,922) |
Repayments from advances to related parties | 5,300 | 34,307 | 24,447 |
Loans to related parties | (9,600) | ||
Repayments from loans to related parties | 3,500 | ||
Repayments from loans to an ex-management | 3,500 | ||
Loans to employees | (450) | (2,900) | |
Repayments from loans to employees | 250 | ||
Loans to third parties | (7,080) | ||
Payment for school deposits for capital expenditures guarantee | (10,000) | ||
Placement of time deposits | (95,800) | ||
Withdrawal of time deposits | 95,800 | ||
Net cash used in investing activities | (30,859) | (21,474) | (125,100) |
Cash flows from financing activities: | |||
Proceeds from issuance of restricted shares of the Parent | 27,149 | ||
Dividend paid | (42,300) | (27,880) | |
Borrowings from a related party | 9,467 | ||
Repayments of borrowings from a related party | (10,933) | ||
Advances from related parties | 374 | 24,008 | 26,017 |
Payments for advances from related parties | (49) | (18,038) | |
Net proceeds from borrowings under financing arrangements | 93,460 | 28,736 | |
Repayments of principal amount of borrowings under financing arrangements | (25,607) | (9,570) | |
Net proceeds from a bank loan | 17,568 | ||
Repayments of a bank loan | (17,568) | ||
Payment of contingent consideration | (9,344) | ||
Deemed distribution to the Parent | (42,300) | ||
Payments for initial public offering costs | (9,320) | (1,150) | |
Net cash generated from / (used in) financing activities | (36,675) | 14,642 | 34,753 |
Effect of exchange rate changes on cash | (76) | ||
Net increase in cash and restricted cash | 54,938 | 94,854 | 240 |
Cash at beginning of year | 153,418 | 58,564 | 58,324 |
Cash and restricted cash at end of year | 208,356 | 153,418 | 58,564 |
Supplemental disclosures of cash flow information | |||
Income tax paid | 8,366 | 10,855 | 14,465 |
Interests paid | 4,151 | 1,030 | |
Supplemental disclosures of non-cash investing and financing activities | |||
Payable for purchase of property and equipment | 489 | 890 | 781 |
Payables for initial public offering costs | 2,737 | ||
Payable for declared dividends | 157,663 | 52,734 | |
Consideration payable for the acquisition of subsidiaries | 37,852 | ||
Settlement of consideration payable with amounts due from former shareholder of the acquired subsidiary | 826 | ¥ 10,344 | |
Consideration receivables for disposal of subsidiaries | ¥ 4,165 | ||
Deemed distribution to the Parent | ¥ 46,783 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | 1 ORGANIZATION AND PRINCIPAL ACTIVITIES First High-School Education Group Co., Ltd. (the “Company”) was incorporated as an exempted company with limited liability in the Cayman Islands on September 19, 2018. The Company, its subsidiaries and its consolidated variable interest entity and its subsidiaries (“VIEs”) (collectively as the “Group”) are principally engaged in the provision of full spectrum private fundamental education and complementary education services, including middle and high school and tutorial school in the People’s Republic of China (the “PRC”). The Company completed its initial public offering (“IPO”) on the New York Stock Exchange on March 11, 2021. Prior to January 12, 2021, the Company was wholly-owned by Long-Spring Education Group (the “Parent”). Upon completion of the corporate restructuring on January 12, 2021 as further described in Note 23(a), Long-Spring Education Group ceased to be the parent company of the Group. As of December 31, 2020, the Company’s subsidiaries and consolidated VIEs are as follows. Name Place of Date of establishment Equity Principal activities Wholly owned subsidiaries First High-School Education Group (BVI) Limited (“First High-School BVI”) BVI September 20, 2018 100 % Investment holding First High-School Group Hong Kong Limited (“First High-School HK”) Hong Kong September 28, 2016 100 % Investment holding Yunnan Century Long-Spring Education Technology Co., Ltd. (“Yunnan WFOE”) The PRC October 31, 2016 100 % Management consulting service Beijing Hengzhong Education Consulting Co., Ltd. The PRC December 5, 2016 100 % Complementary education services Yunnan Long-Spring Logistics Service Co., Ltd. The PRC September 16, 2015 100 % Education and management service Name Place of Date of establishment Percentage of direct and indirect Principal activities VIEs: Long-Spring Education Holding Group Limited The PRC September 20, 2011 100 % Management service Yunnan Zhongchuang Education Tutorial Academy The PRC August 28, 2012 100 % Tutorial services Resorts District Hengshui Experimental Secondary School The PRC April 4, 2014 100 % Formal education services* Yunnan Hengshui Chenggong Experimental Secondary School The PRC July 23, 2015 100 % Formal education services* Yunnan Hengshui Experimental Secondary School—Xishan School The PRC July 1, 2016 100 % Formal education services* Yunnan Hengshui Yiliang Experimental Secondary School The PRC July 11, 2016 100 % Formal education services* Yunnan Long-Spring Foreign Language Secondary School The PRC April 18, 2017 100 % Formal education services* VIEs: Ordos Hengyue Education Technology Co., Ltd. The PRC July 8, 2017 100 % Investment holding Beijing Hengyue Education Technology Co., Ltd. The PRC July 11, 2017 100 % Management service Qujing Hengshui Experimental Secondary School The PRC July 18, 2017 100 % Formal education services* Yunnan Yuxi Hengshui Experimental High School The PRC August 3, 2017 100 % Formal education services* Ordos Hengshui Experimental High School The PRC August 4, 2017 100 % Formal education services* Kunming Guandu Hengshizhong Education Tutorial School Co., Ltd. The PRC January 10, 2019 100 % Tutorial services Xinping Hengshui Experimental High School Co., Ltd. The PRC July 5, 2019 100 % Formal education services* Xinping Hengshui Experimental Middle School The PRC June 14, 2019 100 % Formal education services* Shanxi Long-Spring Enterprise Management Co., Ltd. The PRC June 20, 2019 56 % Investment holding Datong Hengshi Gaokao Tutorial School The PRC June 20, 2019 56 % Tutorial services Yunnan Bainian Long-Spring Technology Co., Ltd. The PRC May 11, 2020 56 % Management consulting service Guizhou Long-Spring Century Technology Co., Ltd. The PRC June 17, 2020 100 % Management consulting service Guizhou Hengshizhong Technology Co., Ltd. The PRC July 1, 2020 56 % Management consulting service Zhenxiong Bainian Long-Spring Technology Co., Ltd. The PRC July 2, 2020 56 % Management consulting service Xishuangbanna Hengshui Experimental High School The PRC July 20, 2020 100 % Formal education services* Yunnan Hengshui Qiubei Experimental High School The PRC July 21, 2020 100 % Formal education services* Yunnan Hengshui Wenshan Experimental High School The PRC August 3, 2020 56 % Formal education services* Guizhou Mingde Tutorial School The PRC September 1, 2020 56 % Tutorial services Yunnan Hengshui Zhenxiong High School The PRC September 1, 2020 56 % Formal education services* Yunnan Hengshui Experimental Secondary School—Mengla School The PRC September 4, 2020 100 % Formal education services* Long-Spring Education Group (Yunnan) Hengshui Experimental School Management Co., Ltd. The PRC December 24, 2020 100 % Management consulting service * Formal education services include middle, high and international school services. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (‘‘US GAAP’’). The consolidated financial statements are presented in Renminbi (‘‘RMB’’), rounded to the nearest thousand. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and the Company’s ability to pursue financing arrangements to support its working capital requirements. The Group has carried out a review of its cash flow forecast for the twelve months ending December 31, 2021. Based on such forecast, management believe that adequate sources of liquidity exist to fund the Group’s working capital and capital expenditures requirements, and other liabilities and commitments as they become due. In preparing the cash flow forecast, management have considered historical cash requirements, working capital and capital expenditures plans, estimated cash flows provided by operations, existing cash on hand, time deposits, as well as other key factors, including the existing loan facilities from the banks, its ability to obtain other external financing and the completion of the Company’s initial public offering (“IPO”) on New York Stock Exchange on March 11, 2021. Management believes the assumptions used in the cash forecast are reasonable. (b) Principles of consolidation of VIEs In order to comply with the PRC laws and regulations which prohibit foreign ownership of companies and institutions in compulsory educational services at middle school levels and restrict foreign investment in educational services businesses at the high school level, the Group operates its restricted business in the PRC through its VIEs, whose equity interest are held by the founders of the Group. The Group obtained the control over these VIEs by entering into a series of contractual agreements as details below: Exclusive Call Option Agreement Pursuant to the exclusive call option agreement, the shareholders of Long-Spring Education Holding Group Limited (“Long-Spring Education”) unconditionally and irrevocably granted Yunnan WFOE or its designated entity the right to purchase at any time all or part of their equity interests in Long-Spring Education at the lowest price applicable under PRC laws and regulations. Without Yunnan WFOE’s prior written consent, the shareholders of Long-Spring Education also refrain from (1) selling, assigning, transferring, or otherwise disposing of the equity or sponsorship interest, (2) increasing or reducing the capital investment, (3) dividing the affiliated entities into or merging it with other entities, (4) disposing of any of the assets of the affiliated entities, (5) terminating or contradicting any material contract entered into by the affiliated entities, (6) procuring the affiliated entities to enter into transactions that may have material impact on their assets, liabilities, operations, equity structure, or other legal rights, (7) procuring the affiliated entities to declare or distribute profits and/or returns, (8) amending the article of association of the affiliated entities, and (9) allowing the affiliated entities to undertake any material obligation beyond normal business activities. School Sponsor’s and Directors’ Rights Entrustment Agreement Pursuant to the school sponsor’s and directors’ rights entrustment agreement, the school sponsors irrevocably authorized and entrusted Yunnan WFOE or its designated personnel to exercise all their rights as the school sponsor of each school, including but not limited to the right to appoint and/or elect directors, council members, and supervisors of the school, right to review the resolutions of the board of directors and the financial statement of the school, right to transfer school sponsor’s interest, and right to decide whether the school would be for-profit non-profit. Shareholders’ Rights Entrustment Agreement Pursuant to the shareholders’ rights entrustment agreement, each shareholder of Long-Spring Education irrevocably authorized and entrusted Yunnan WFOE to exercise all the respective rights as shareholders of Long-Spring Education, including but not limited to the right to attend shareholder’s meeting and vote, right to sign shareholders’ resolutions and other legal documents, right to instruct the directors and other rights of shareholders under the school’s articles of association and the applicable PRC laws. Power of Attorney Pursuant to the school sponsors’ power of attorney, each school sponsor authorized and appointed Yunnan WFOE as its agent to exercise on its behalf a school sponsor’s rights. Pursuant to the directors’ power of attorney, each director of Long-Spring Education authorized and appointed Yunnan WFOE as his/her agent to exercise on his/her behalf a director’s rights. Pursuant to the shareholders’ power of attorney, each shareholder of Long-Spring Education authorized and appointed Yunnan WFOE as his/her/its agent to exercise on his/her/its behalf a shareholder’s rights. Equity Pledge Agreement Pursuant to the equity pledge agreement, the shareholders of Long-Spring Education unconditionally and irrevocably pledged and granted first priority security interests over all of his/her/its equity interest in Long-Spring Education, as well as all related rights, to Yunnan WFOE as security for performance of all the contractual arrangements. Without Yunnan WFOE’s prior written consent, the shareholders of Long-Spring Education must not transfer the equity interest or create further pledge or encumbrance over the pledged equity interest. They also waived any pre-emptive Spousal Undertaking Pursuant to the spousal undertaking executed by the spouses of the shareholders of Long-Spring Education, the signing spouses consented to the contractual arrangements with respect to the equity interest in Long-Spring Education, including its pledge, transfer, and disposal in any other forms. The spouses will not participate in the operation, management, liquidation, or any other matters in relation to Long-Spring Education’s subsidiaries and affiliated schools. They authorized the shareholders of Long-Spring Education to exercise their shareholding rights on behalf of them to ensure the interest of Yunnan WFOE. This undertaking will not terminate until Yunnan WFOE and the spouses terminate it in writing. Loan Agreement Pursuant to the loan agreement, Yunnan WFOE agreed to provide interest-free loans to Long-Spring Education. Each loan will be for an infinite term until termination at the sole discretion of Yunnan WFOE. This agreement will terminate when all equity interests of the Long-Spring Education are transferred to Yunnan WFOE. The agreements that transfer economic benefits of Long-Spring Education to the Group include: Exclusive Technical Service and Management Consultancy Agreement and Business Cooperation Agreement Pursuant to the exclusive technical service and management consultancy agreement and business cooperation agreement, Yunnan WFOE provides exclusive technical services to Long-Spring Education VIEs, including software, website, and on-site 30-day Under the above agreements, the shareholders of Long-Spring Education irrevocably granted Yunnan WFOE the power to exercise all voting rights to which they were entitled. In addition, Yunnan WFOE has the option to acquire all of the equity interests in Long-Spring Education, to the extent permitted by the PRC laws and regulations, for nominal consideration. Finally, Yunnan WFOE is entitled to receive service fees for certain services to be provided to Long-Spring Education. The Exclusive Call Option Agreement and Power of Attorney provide the Group with effective control over the Long-Spring Education, while the Equity Pledge Agreements secure the obligations of the shareholders of Long-Spring Education under the relevant agreements. Because the Group has (i) the power to direct the activities of Long-Spring Education, that most significantly affect its economic performance and (ii) the right to receive substantially all of the benefits from Long-Spring Education, the Group is deemed the primary beneficiary of Long-Spring Education. Accordingly, the Company consolidates VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In December 2018, in connection with 2018 Share Incentive Plan, certain management personnel and employees of the Group through establishment of limited partnership entities (“PRC Partnership entities”) became legal shareholders of Long-Spring Education. The above VIE agreements (“2016 VIE Agreements”) were terminated and concurrently, new contractual VIE Agreements were entered into among Long-Spring Education, Long-Spring Education’s shareholders (including PRC Partnership entities) and Yunnan WFOE. The terms of the new contractual arrangements among Long-Spring Education, PRC Partnership entities and Yunnan WFOE are identical to the terms of the 2016 VIE Agreements. Risks in relation to VIE structure As Long-Spring Education VIEs were established as limited liability companies or organizations under the PRC law, their creditors do not have recourse to the general credit of Yunnan WFOE for the liabilities of Long-Spring Education VIEs, and Yunnan WFOE does not have the obligation to assume the liabilities of Long-Spring Education VIEs. The Group believes that the contractual arrangements with Long-Spring Education VIEs are in compliance with the PRC law and are legally enforceable. However, the contractual arrangements are subject to risks and uncertainties, including: • Long-Spring Education and their 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 arrangements. If the Group cannot resolve any conflicts of interest or disputes between the Group and the shareholders of Long-Spring Education, the Group would have to rely on legal proceedings, which could result in disruption of its business, and there may be substantial uncertainty as to the outcome of any such legal proceedings. • Long-Spring Education and their 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 VIEs or the Group, mandate a change in ownership structure or operations for the VIEs or the Group, restrict the VIEs or the Group’s use of financing sources or otherwise restrict the VIEs or the Group’s ability to conduct business. • The PRC government may declare the aforementioned contractual arrangements invalid. They may modify the relevant regulations, have a different interpretation of such regulations, or otherwise determine that the Group or the VIEs have failed to comply with the legal obligations required to effectuate such contractual arrangements. • If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government may restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. There is no VIE in which the Group has a variable interest but is not the primary beneficiary. The table sets forth the assets and liabilities of the VIEs included in the Company’s consolidated balance sheets: As of December 31, 2019 2020 Note Current assets Cash 130,785 138,375 Accounts receivable, net of allowance for doubtful accounts 7,674 20,407 Amounts due from related parties i 129,639 238,621 Prepaid expenses and other current assets 12,732 30,959 Total current assets 280,830 428,362 Property and equipment, net 53,194 59,771 Intangible assets, net 47,932 44,858 Goodwill 40,218 40,218 Deferred tax assets 2,911 7,371 Other non-current 4,438 16,252 Total assets 429,523 596,832 Current liabilities Contract liabilities 169,151 203,248 Deferred revenue from governments 17,789 13,770 Borrowings under financing arrangements 14,577 64,140 Accounts payable 4,331 3,655 Accrued expenses and other payables 67,167 68,078 Income tax payables 2,854 5,763 Amounts due to related parties ii 54,056 72,648 Total current liabilities 329,925 431,302 Contract liabilities 3,790 7,274 Deferred revenue from governments 4,032 12,370 Borrowings under financing arrangements 7,453 28,643 Other payables 2,760 6,276 Deferred tax liabilities 12,323 11,933 Total liabilities 360,283 497,798 Notes: (i): Amounts due from related parties consisted of (a) amounts due from related parties as disclosed in Note 22 and (b) inter-company receivables for advances made by the VIEs to other companies within the Group. (ii): Amounts due to related parties consisted of (a) amounts due to related parties as disclosed in Note 22 and (b) inter-company payables for advances received by VIEs from other companies within the Group. The table sets forth the results of operations of the VIEs included in the Company’s consolidated statements of comprehensive income: Years Ended December 31, 2018 2019 2020 Net revenues 224,492 308,884 392,860 Net income 8,160 16,539 29,416 The table sets forth the cash flows of the VIEs included in the Company’s consolidated statements of cash flows: Years Ended December 31, 2018 2019 2020 Net cash generated from operating activities 96,270 139,444 95,914 Net cash (used in)/generated from investing activities (89,927 ) 30,548 (32,286 ) Net cash generated from financing activities 25,269 28,202 68,011 The unrecognized revenue producing assets that are held by the VIEs comprise of assembly workforce and intellectual property and trademarks which were not recorded on the Company’s consolidated balance sheets as they do not meet all the capitalization criteria. Costs recognized by the VIEs for management services provided by other entities within the Group were RMB32,515, RMB47,056 and RMB75,802 for the years ended December 31, 2018, 2019 and 2020, respectively. (c) Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to, estimate of standalone selling prices of each unit of accounting in multiple performance obligations, estimate of the contract period of the government cooperative agreements, the useful lives of long-lived assets, the fair values of assets acquired and liabilities assumed and the consideration transferred in a business combination, the fair value of the reporting unit for the goodwill impairment test, the allowance for doubtful accounts receivable and other current assets, the realization of deferred income tax assets, the fair value of share-based compensation awards and the recoverability of long-lived assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (d) Cash, cash equivalents and restricted cash Cash and cash equivalents comprise cash at banks and on hand, which have original maturities of three months or less when purchased and are subject to an insignificant risk of changes in value. The Group does not have any cash equivalents as of December 31, 2019 and 2020. Cash that is restricted as to withdrawal for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is not included in the total cash and cash equivalents in the consolidated statements of cash flows. The Group’s restricted cash represents deposits in connection with the bank loan as disclosed in Note 10. Cash and restricted cash as reported in the consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows: As of December 31, 2019 2020 Cash 153,418 148,756 Restricted cash — 59,600 Total cash and restricted cash 153,418 208,356 (e) Fair value of financial instruments The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The carrying values of financial instruments, which consist of cash, restricted cash, accounts receivable, net of allowance for doubtful accounts, amounts due from related parties, prepaid expenses and other current assets, accounts payable, accrued expenses and other payables, bank loan and amounts due to related parties are measured at amortized cost which approximates their fair value due to the short-term nature of these instruments. The borrowings under financing arrangements is measured at amortized cost. The fair value of these long-term debt obligations approximates their carrying value as the borrowing rates are similar to the market rates that are currently available to the Group for financing obligations with similar terms and credit risks and represent a level 2 measurement. (f) Contract balances The timing of revenue recognition, billings and cash collections result in accounts receivable, contract assets and contract liabilities. Accounts receivable are recorded at the billing amount, net of an allowance for doubtful account and is recognized in the period when the Company’s right to consideration is unconditional. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Group maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and customers’ financial condition, the amount of receivables in dispute, the accounts receivable aging, and the customers’ repayment patterns. The Group reviews its allowance for doubtful accounts on a customer-by-customer off-balance-sheet A contract liability is the obligation to provide services or goods to a customer for which the Group has received consideration from the customer. If a customer pays the consideration before the Group provides services or goods to the customer, a contract liability is recognized when the payment is made or the payment is due. (g) Property and equipment Property and equipment are carried at cost less accumulated depreciation and any recorded impairment. Gains or losses arising from the disposal of an item of property and equipment are determined based on the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of disposal. The estimated useful lives are presented below. Category Estimated useful life Buildings 18 - 20 years Leasehold improvement Shorter of the lease term and the estimated useful lives of the assets Furniture and office equipment 6 - 10 years Electronic equipment 4 - 5 years Vehicles 5 years Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets. (h) Leases Leases are classified at the lease inception date as either a capital lease or an operating lease. A lease is a capital lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the property’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. The Group records a capital lease as an asset and an obligation at an amount equal to the present value at the beginning of the lease term of minimum lease payments during the lease term. Rental costs on operating leases are charged to expense on a straight-line basis over the lease term. Certain operating leases contain rent holidays and escalating rent. Rent holidays and escalating rent are considered in determining the straight-line rent expense to be recorded over the lease term. Rental costs associated with building operating leases that are incurred during the construction of leasehold improvements and to otherwise ready the property for the Group’s intended use are recognized as rental expenses and are not capitalized. (i) Business combinations Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling non-controlling (j) Intangible assets Acquired intangible assets comprised of government cooperative agreements and software. The government cooperative agreements acquired from business combination is recognized and measured at fair value and the acquired software are measured at cost, less accumulated amortization and impairment. Amortization of finite-lived intangible assets is computed using the straight-line method over the estimated useful lives. The amortization periods by intangible asset classes are as follows: Category Estimated useful life Systems software 2-10 Government cooperative agreements 17 years (k) Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in the acquisition that are not individually identified and separately recognized. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of the reporting unit, assignment of assets and liabilities to the reporting unit, assignment of goodwill to the reporting unit, and determination of the fair value of each reporting unit. The Group has the option to perform a qualitative assessment to determine whether it is more-likely-than not that the fair value of a reporting unit is less than its carrying value prior to performing the two-step more-likely-than-not two-step (l) Impairment of long-lived assets Long-lived assets, such as property and equipment, intangible assets subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. No impairment losses were recorded for long-lived assets for the years ended December 31, 2018, 2019 and 2020. (m) Commitment and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. (n) Revenue recognition Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Accounting Standards Update (“ASU”) No. 2104-09, Revenue from Contracts with Customers (Topic 606 ) For contracts with customers that contain multiple performance obligations, determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The transaction price is allocated to the separate performance obligation on a relative standalone selling price basis. The standalone selling price is determined based on overall pricing objectives, taking into consideration market conditions, geographic locations and other factors. The primary sources of the Group’s revenues are as follows: Formal education services The Group’s revenue is principally derived from the provision of boarding school educational services to students. The Group offers formal education program at the middle school and high school. Tuition and accommodation fees received from formal education services are generally paid in advance prior to the beginning of each semester. In very limited circumstances students may, with special approval of the management, receive education first and pay their tuition in arrears. Each contract with a student in respect of the formal education services contains multiple performance obligations consisting of the provision of the curriculum education services, after-school enrichment services, registration and transportation services (collectively as “educational services”), delivery of educational books and related materials (collectively as “educational materials”), boarding services and meal catering services. These performance obligations are distinct in the context of the contract. The consideration expected to be received is allocated at contract inception among the performance obligations based on their stand-alone selling prices. Revenue attributable to educational services and boarding services is recognized over time, based on a straight-line basis over the school year, as customers simultaneously receive and consume the benefits of these services throughout the service period. The portion of tuition and boarding payments received from students but not earned is recorded contract liability and is reflected as a current liability as such amounts represent revenue that the Group expects to earn within one year. The academic year of the Group’s school is generally from September to January of the following year and from March to June. 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. Revenue attributable to educational materials and meal catering services is recognized at point in time, when the control of the educational materials or underlying goods is passed to customers. The Group considers that it is acting as the principal in the transaction and recognizes revenue from sales of the educational materials and meal catering services on a gross basis. Revenue from government cooperative arrangements The Group has entered into certain long-term cooperative arrangements with local governments in areas where some of the schools are located. Pursuant to such arrangements, the Group is committed to admit certain number of local students as “publicly-sponsored students” who pay the tuition fees based on the amounts charged by a comparable public school. The difference between the fees charged by the Group to other students and the fees charged to publicly-sponsored students are subsidized by the local governments in the form of lump sum funding payments in the first few years of the cooperative arrangements. The government subsidies are recognized as “revenue from government cooperative arrangements” on a systematic basis when there is reasonable assurance that they will be received and the Group will comply with the conditions attaching to the agreements. In particular, revenue under these arrangements are recognized on a straight-line basis during the relevant school year, and over the estimated period to which the subsidies relate, based on the difference in average tuition fee for private students and for publicly-sponsored students and the number of publicly-sponsored students of each academic year. When the Group has received payments from the governments before educational services are provided to these publicly-sponsored students, a deferred revenue from governments is recognized when the payments are received. Throughout the whole period of cooperative arrangements, the governments also provide free access to certain buildings and dormitories and assign certain number of teachers who originally work in other public schools to the Group. These subsidies are determined as non-monetary Tuition income from training programs Revenue derived from providing Gaokao (the university entrance examination in China) repeaters’ education programs and other after-school is recognized over time, based on a straight-line basis over the program service period, as customers simultaneously receive and consume the benefits of these services throughout the service period. Education and management service fees Revenue derived from 1) the education and management service provided to the third-party schools included logistic management services, school operation and management services and other services. The promised services in each education and management service contract are combined and accounted as a single performance obligation, as the promised services in a contract are not distinct and are considered as a significant integrated service. and 2) the meal catering services are outsourced to certain vendors and the Group charges management service fee from these vendors. The revenue is recognized on a straight-line basis over the period of the education and management service, as customers simultaneously receive and consume the benefits of these services throughout the service period. The Group has assessed all variable considerations identified when determining the transaction price. In making such assessment, the Group may provide price concessions to the customers under education and management services contracts in order to enter into new contracts or collect payments. The Group includes the estimate of the concession in the amount of consideration to which it ultimately expects to be entitled. VAT collected from customers is excluded from revenue. The Company’s PRC subsidiaries and VIEs are subject to VAT. The deductible input VAT balance is recorded i |
Contract Balances
Contract Balances | 12 Months Ended |
Dec. 31, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Contract Balances | 3 CONTRACT BALANCES (a) Accounts receivable, net Accounts receivable, net consisted of the following: As of December 31, Note 2019 2020 Accounts receivable derived from governments cooperative arrangements (i) 2,772 15,983 Accounts receivable from other customers (ii) 4,915 14,920 Accounts receivable 7,687 30,903 Less: allowance for doubtful accounts — — Accounts receivable, net 7,687 30,903 Note (i): Accounts receivable derived from government cooperative arrangements were recorded when the educational services have been provided to publicly-sponsored students and the receivables are due in accordance with the payment schedule in the relevant agreements with the governments. Note (ii): When rendering education and management services and other services, the Group generally bills its customers in the period when the Group’s right to consideration is unconditional and transfer control over services in accordance with the contract terms. No allowance for doubtful accounts was provided to accounts receivable as of December 31, 2019 and 2020 respectively. The aging analysis is as follows: As of December 31, 2019 2020 Within 90 days (inclusive) 7,687 12,580 Over 90 days but within 1 year (inclusive) — 18,323 7,687 30,903 Less: allowance for doubtful accounts — — Accounts receivable, net 7,687 30,903 (b) Contract liabilities The balances of the Group’s contract liabilities are as following: As of December 31, 2019 2020 Current liabilities 171,303 203,482 Non-current 5,778 7,274 Contract liabilities 177,081 210,756 The contract liabilities primarily relate to up-front one-year non-current Movements in contract liabilities: 2019 2020 Balance as of January 1, 134,400 177,081 Increase in contract liabilities as a result of receiving advances 328,329 399,410 Decrease in contract liabilities as a result of recognition of revenues during the year (285,648 ) (365,735 ) Balance as of December 31, 177,081 210,756 (c) Deferred revenue from governments The balances of the Group’s deferred revenue under government cooperative arrangements are as follows: As of December 31, 2019 2020 Current liabilities 17,789 13,770 Non-current 4,032 12,370 Deferred revenue from governments 21,821 26,140 Movements in deferred revenue from governments: 2019 2020 Balance as of January 1, 14,999 21,821 Addition during the year 31,854 32,380 Recognized in revenue during the year (25,032 ) (28,061 ) Balance as of December 31, 21,821 26,140 Deferred revenue from governments results from the financing funding collected from the governments for publicly-sponsored students before educational service are delivered to these students. The amount is recognized as revenue when the educational service are delivered to these students. (d) Transaction price allocated to the remaining performance obligation As of December 31, 2020, approximately RMB210,756 of total revenues are expected to be recognized in future periods, which will be recognized over the next three years. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses And Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 4 PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of December 31, Note 2019 2020 Advances to third parties 2,000 2,000 VAT recoverable 5,057 2,962 Advances to employees 1,422 1,448 Loans to employees — 550 Loans to third parties (i) — 7,080 Deferred offering expense (ii) 1,150 13,207 Other deferred expenses 2,880 4,341 Prepaid rental fees 5,859 3,206 School deposits 8(i) — 8,000 Deposits for financing arrangements 9 — 4,064 Other deposits 1,460 2,640 Prepayments for goods and services 1,815 2,415 Low-value 1,393 1,469 Others 1,301 2,602 24,337 55,984 Less: allowance for doubtful accounts (2,534 ) (2,534 ) Prepaid expenses and other current assets 21,803 53,450 Note (i): The balances of RMB7,080 were interest-free loans to third parties which were due within one year. The amounts were collected in April 2021. Note (ii): Deferred offering expenses were direct incremental fees in relation to IPO. The amounts will reduce the net proceeds received and offset the equity upon the completion of the IPO. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | 5 PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: As of December 31, 2019 2020 At cost: Buildings 93,231 94,004 Leasehold improvement 34,560 44,379 Furniture and office equipment 11,982 15,371 Electronic equipment 20,472 23,695 Vehicles 2,783 4,150 Construction in progress — 3,211 163,028 184,810 Less: accumulated depreciation (26,597 ) (42,403 ) Property and equipment, net 136,431 142,407 As of December 31, 2019 and 2020, certain furniture and office equipment and electronic equipment of the Group with net book value of RMB22,221 and RMB19,086, respectively, were Depreciation of property and equipment were RMB7,194, RMB10,925 and RMB15,873 for the years ended December 31, 2018, 2019 and 2020, respectively, and included in the following captions: Years Ended December 31, 2018 2019 2020 Cost of revenues 3,629 7,449 10,788 General and administrative expenses 3,565 3,476 5,085 Total 7,194 10,925 15,873 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 6 INTANGIBLE ASSETS, NET Intangible assets consisted of the following: As of December 31, 2019 2020 Systems software 3,391 5,026 Government cooperative agreements 52,000 52,000 55,391 57,026 Less: accumulated amortization (4,686 ) (8,050 ) Intangible assets, net 50,705 48,976 The Group’s government cooperative agreements were acquired in a business combination (Note 7) for the cooperation with local governments to admit certain number of publicly-sponsored students. The cooperation period is 17 years as stipulated on these cooperative agreements. Amortisation of intangible assets were RMB1,363, RMB3,285 and RMB3,364 for the years ended December 31, 2018, 2019 and 2020, respectively. Estimated future amortisation expense related to these intangible assets is as follows: Fiscal year ending December 31, 2021 3,420 2022 3,420 2023 3,420 2024 3,420 2024 3,420 Thereafter 31,876 Total 48,976 |
Business Combination and Goodwi
Business Combination and Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination and Goodwill | 7 BUSINESS COMBINATION AND GOODWILL The movement of goodwill is set out as below: 2018 2019 2020 Balance as of January 1, — 40,218 40,218 Addition during the year 40,218 — — Balance as of December 31, 40,218 40,218 40,218 The Group did not incur impairment loss on Beijing Hengyue Acquisition On July 13, 2018, the Group acquired all of the equity interests in Beijing Hengyue and its subsidiaries from a third party. Pursuant to the share purchase agreement, the purchase prices included (1) initial cash consideration of RMB39,375, which has been paid upon closing date of the acquisition; and (2) contingent consideration up to RMB39,375, which is payable subject to achievements of certain specified financial performance conditions for 2018 and 2019. In determining the fair value of the contingent consideration, the Group considered the expected adjusted net income for 2018 and 2019 and their associated probabilities, resulting in expected payments of contingent consideration and the present value of which was recognized as acquisition-date fair value of the contingent consideration of RMB37,121. The contingent consideration is remeasured to fair value at each reporting date with changes of fair value being recognized in earnings. As of December 31, 2019 and 2020, contingent consideration payables were recorded as follows based on the payment schedule in the share purchase agreement. As of December 31, 2019 2020 Current accrued expense and other payables 19,309 18,862 Contingent consideration payables 19,309 18,862 Beijing Hengyue is incorporated under the PRC law and is principally engaged in the provision of full spectrum private fundamental education and complementary education services in Ordos, Inner Mongolia, China. The transaction was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations The identifiable assets acquired and liabilities assumed in the business combination were recorded at their fair values on the acquisition date and consisted of the following major items. Note Fair value of consideration 76,496 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash 17,776 Property and equipment 166 Intangible assets (i) 52,047 Other assets 326 Accounts payable (1,355 ) Contract liabilities (ii) (6,341 ) Deferred tax liabilities (13,496 ) Deferred revenue from governments (ii) (6,100 ) Other liabilities (6,745 ) Total identifiable net assets at fair values 36,278 Goodwill (iii) 40,218 Notes: (i): Intangible assets acquired mainly included the government cooperative agreements with relevant local government of RMB52,000 with an estimated useful life of 17 years. Such cooperative agreement would enable the Group get government subsidies for their publicly-sponsored students over the beneficial periods of 17 years. (ii): The fair value of the contract liabilities and deferred revenue from governments were estimated based on the costs of fulfilling the obligations plus a normal profit margin under income approach. (iii): Goodwill represents the excess of the purchase price over the fair value of the identifiable assets acquired and liabilities assumed in the acquisition. Goodwill is assigned to the formal education services reporting unit. Goodwill primarily represents the expected synergies from combining operations of Beijing Hengyue with those of the Group and intangible assets that do not qualify for separate recognition and is not deductible for tax purposes. In accordance with ASC350, goodwill is not amortized but is tested for impairment. Unaudited Pro Forma Financial Information The unaudited pro forma consolidated revenue and net loss for the year ended December 31, 2018 is RMB268,922 and RMB as if the acquisition had been consummated on January 1, 2018 and after giving effect to acquisition accounting adjustments. These pro forma results have been prepared for illustrative purpose only and do not purport to be indicative of what operating results would have been had the acquisition actually taken place on the date indicated and may not be indicative of future operating results. |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets, Noncurrent [Abstract] | |
Other Non-Current Assets | 8 OTHER NON-CURRENT Other non-current As of December 31, Note 2019 2020 Loans to an ex-management 22(b) 4,000 500 Loans to employees 2,900 2,550 Deposits for financing arrangements 9 2,864 1,700 School deposits (i) — 12,000 Rental deposits — 1,150 Others 943 624 Other non-current 10,707 18,524 Note (i): As of December 31, 2020, RMB20,000 deposits were paid by the Group for the establishment of a new school in Zhenxiong County in Yunnan Province, among which RMB12,000 is expected to be recovered after more than one year and RMB8,000 is expected to be recovered within one year (Note 4). |
Borrowings Under Financing Arra
Borrowings Under Financing Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated Borrowings [Abstract] | |
Borrowings Under Financing Arrangements | 9 BORROWINGS UNDER FINANCING ARRANGEMENTS The balances of the Group’s borrowings under financing arrangements are as following: As of December 31, 2019 2020 Current portion 14,577 64,140 Non-current 7,453 28,643 22,030 92,783 The Group entered into sale and leaseback contracts with certain third-party financial institutions during 2019 and 2020. The lease items were mainly multi-media computers, video conference equipment, computers and other teaching equipment. The Group considers the substance of these transactions to be debt financing in nature and no gain or loss is recognized upon the sale. Thus, the Group recorded the cash receipt from these transactions as liabilities and accrued the interest using the effective interest method. The detailed terms of these sale and leaseback contracts are summarized below: (i) On April 4 and April 9, 2019, the Group entered into sale and leaseback contracts with Far Eastern International Leasing Co., Ltd. for an aggregated consideration of RMB33,800 with payable in eight instalments until April 23, 2021 with an effective interest rate of 13.0% per annum. The Group recorded the cash receipt of RMB31,600 as a liability and accrued the interest using the effective interest method. Simultaneously, the Group paid RMB2,864 (Note 4) as deposits which are expected to be returned when the contracts complete in April 2021 and recorded it in prepared expenses and other current assets as of December 31, 2020. (ii) On August 14, 2020, the Group entered into sale and leaseback contracts with Haier Financial Leasing Co., Ltd. for aggregated consideration of RMB100,000 with payable in eighteen instalments until August 31, 2023 with an effective interest rate of 10.6% per annum. The Group recorded the cash receipts of RMB96,360 as a liability and accrued the interest using the effective interest method. The Group paid an aggregate amount of as deposits, of which is expected to be returned in one year and is expected to be returned after one year. These amounts are recorded in prepaid expenses and other current assets and other non-current |
Bank Loan
Bank Loan | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Bank Loan | 10 BANK LOAN On December 20, 2020, the Company entered into a term loan facility up to RMB50,000 with a Hong Kong bank for the purpose of repurchasing the Parent’s shares as described in Note 18(b). The Company drew down the facility on December 29, 2020. The loan facility is secured by a bank deposit placed with a PRC bank of The loan bears an interest rate of 3-month 4.3 per annum and fall due within 12 months after the date of the first drawing and is subject to early repayment at the sole discretion of the lender when occurrence of default events. |
Accrued Expenses And Other Paya
Accrued Expenses And Other Payables | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Payables | 11 ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables, current and non-current, As of December 31, Note 2019 2020 Accrued payroll and welfare benefits 30,054 31,553 Contingent consideration payables for a business combination 7 19,309 18,862 Government subsidies received on behalf of certain teachers and students 5,781 2,511 Other tax payables 11,614 15,613 Deposits received 6,396 18,278 Accrued service fees 1,040 4,263 Accrued utilities fees 1,094 1,245 Others 5,989 8,535 Accrued expenses and other payables 81,277 100,860 Including: - Current portion 77,591 91,253 - Non-current 3,686 9,607 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 12 LEASES Operating leases The Group leases properties and other equipment that are classified as operating leases. The majority of the Group’s operating leases expire at various dates though 2036. Future minimum operating lease payments as of December 31, 2020 are summarized as follow: Years ending December 31, 2021 6,746 2022 6,860 2023 6,376 2024 5,600 2025 5,600 Thereafter 44,500 Total 75,682 Rental expenses were approximately RMB16,388, RMB12,958, and RMB14,825 for the years ended December 31, 2018, 2019 and 2020, respectively. The Group did not sublease any of its operating leases for the years presented. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Share Capital | 13 SHARE CAPITAL On September 19, 2018, the Company was incorporated as limited liability company with authorized share capital of US$50 dividend into 50,000 ordinary shares with par value of US$1.00 each. As of December 31, 2018, one ordinary share was issued and outstanding. On August 26, 2019, the Company has completed its share subdivision on a 100,000-for-1 which resulted in increases in the number of shares authorized from As further described in Note 23(a), on January 12, 2021, the Company issued 70,488,700 ordinary shares to the respective shareholders of the Parent to mirror the shareholding structure of the Parent. At the same time, the Parent surrendered 100,000 issued shares in the Company pursuant to a form of surrender letter. Accordingly, all share and per share data shown in the consolidated financial statements have been retrospectively revised to give effects to the nominal issuance of the 70,488,700 new shares and the surrender of the 100,000 old shares. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | 14 SHARE-BASED COMPENSATION Share Incentive Plan In December 2018, the Parent adopted the 2018 Share Incentive Plan (the “Plan”) for the granting of the Parent’s restricted shares to key employees, directors of the Group’s subsidiaries and VIEs and external consultants in exchange for their services to the Group. Restricted Shares to directors, officers and employees In December 2018, the Parent granted 2,790,880 restricted shares to employees, officers and directors at share prices at the range of RMB7-10 RMB0-7 The Group recognized share-based compensation expenses of RMB172,919, included in general and administrative expenses, for the year ended December 31, 2018 related to the restricted share award granted and transferred in December 2018. Restricted Shares to non-employee In December 2018, the Parent granted 4,990 restricted shares to an external consultant at a share price of RMB10 per share. Meanwhile, one of the shareholders of the Parent transferred 713,100 restricted shares to another external consultant at share price of RMB7 per share. The services performed by these external consultants to the Group include marketing, screening potential acquisition targets, strategic, business, operation, and financial planning services. These granted restricted shares to these non-employees The Group measures the fair value of restricted shares issued in exchange for services and recognizes the related share-based compensation expenses when counterparty completes the performance. The Group recognized share-based compensation expenses of RMB4,845 relating to restricted shares issued to non-employees, The fair value of the restricted shares was estimated on the grant date for employees’ restricted shares or the performance completion date for non-employees’ December 3, 2018 Weight average cost of capital (“WACC”) 15 % Discount for lack of marketability (“DLOM”) 12 % Fair value of each restricted share RMB13.80 (1) WACC WACC is the weighted average of the estimated rate of return required by equity and debt providers for an investment of this type. The required return rate from equity and debt holders relates to perceived risk. (2) DLOM According to the restricted period in the Plan, the DLOM is calculated and applied in this exercise as at the valuation date is 12%. (3) Fair value of restricted share The estimated fair value of the Parent’s restricted share was determined based on the equity value using income approach (discounted cash flow method). |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 15 REVENUES Revenues consisted of the following: Years Ended December 31, 2018 2019 2020 Revenue from customers Formal education services -Educational services 143,127 212,551 278,089 -Boarding 11,107 16,036 20,444 -Sale of educational materials 14,524 19,884 32,360 Subtotal 168,758 248,471 330,893 Tuition income from training programs 50,812 37,120 34,842 Education and management service fees 13,467 21,248 36,862 Others 7,004 1,876 1,965 240,041 308,715 404,562 Revenue from governments cooperative agreements 13,647 27,804 41,272 Revenues 253,688 336,519 445,834 |
Donation
Donation | 12 Months Ended |
Dec. 31, 2020 | |
Donation [Abstract] | |
Disclosure of Donations | 16 DONATION Pursuant to a donation agreement entered into between a university fund and the Group in June 2018, the Group will donate RMB10,000 each year to the university fund from 2018 to 2022 to assist a research on fundamental education program. The Group would not have any right nor can benefit from such research. The Group made a cash donation to the university fund of RMB10,000 each in 2018 and 2019 according to the donation agreement. In September 2019, the donation agreement was cancelled as a result of the mutual agreement between the university fund and the Group and thus the Group will not have any future obligations. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 17 INCOME TAX Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. British Virgin Islands Under the current laws of the British Virgin Islands, First High-School BVI is not subject to tax on their income or capital gains. Additionally, upon payments of dividends to the shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, First High-School HK is subject to Hong Kong profits tax at a rate of 16.5%. A Two-tiered PRC Under the PRC Enterprise Income Tax Law (“EIT Law”), the Group’s PRC subsidiaries and affiliated schools are subject to the statutory income tax rate at 25% unless otherwise specified. In accordance with the prevailing tax regulations, Yunnan WFOE and Yunnan Zhongchuang Education Tutorial Academy were qualified to enjoy 15% preferential income tax rate under “Development Plan for Western China” from 2017 to 2020 which is further extended another 10 years to 2030 if they continue to satisfy all the requirements pursuant to the relevant tax regulations in each of those years. According to the Implementation Rules for the Law for Promoting Private Education in 2004 (the “2004 Implementing Rules”), private schools, whether requiring reasonable returns or not, may enjoy preferential tax treatment. The 2004 Implementing Rules provide that the relevant authorities under the State Council may introduce preferential tax treatments and related policies applicable to private schools requiring reasonable returns. According to the Law of People’s Republic of China on the Promotion of Private Education as revised in 2016 (“2016 Revised Private Education Law”), non-profit for-profit for-profit non-profit The applicable income tax rate of the Group’s affiliated schools for the years ended December 31, 2018, 2019 and 2020 are summarized as below: School name Note Applicable income tax rate Yunnan Hengshui Ch e (i) Income tax exemption Yunnan Hengshui Experimental Secondary School—Xishan School (i) Income tax exemption Yunnan Hengshui Yiliang Experimental Secondary School (i) Income tax exemption Qujing Hengshui Experimental Secondary School (i)(iv) Income tax exemption Yunnan Yuxi Hengshui Experimental High School (i) Income tax exemption Xinping Hengshui Experimental Middle School (i)(iv) Income tax exemption Resorts District Hengshui Experimental Secondary School (ii) Income tax exemption on certain income Yunnan Long-Spring Foreign Language Secondary School (ii) Income tax exemption on certain income Ordos Hengshui Experimental High School (iii) 25% Xinping Hengshui Experimental High School Co., Ltd. (iii)(iv) Preferential tax rate of small and micro enterprise Datong Gaokao Tutorial School (iii)(iv) Preferential tax rate of small and micro enterprise Guizhou Mingde Tutorial School (iii) Preferential tax rate of small and micro enterprise Yunnan Hengshui Zhenxiong High School (iii) Preferential tax rate of small and micro enterprise Yunnan Hengshui Wenshan Experimental High School (iii) Preferential tax rate of small and micro enterprise Xishuangbanna Hengshui Experimental High School (iii) Preferential tax rate of small and micro enterprise Yunnan Hengshui Qiubei Experimental High School (iii) Preferential tax rate of small and micro enterprise Yunnan Hengshui Experimental Secondary School—Mengla School (iii) Preferential tax rate of small and micro enterprise Notes: (i) As confirmed by the local tax authorities, these school are exempt from income taxes for the years ended December 31, 2018, 2019 and 2020, respectively. (ii) Resorts District Hengshui Experimental Secondary School and Yunnan Long-Spring Foreign Language Secondary School are entitled to a five-year enterprise income tax exemptions for certain revenue that meets relevant legal requirements from January 1, 2018 through December 31, 2022 and from January 1, 2019 through December 31, 2023 respectively, as determined by the local government authorities as non-profit (iii) As these schools have not received confirmations from the local tax authorities on income tax exemption, they are subject to the statutory income tax rate of 25% for the years ended December 31, 2018, 2019 and 2020, respectively. For the year ended December 31, 2020, the newly established schools are qualified as small and micro enterprises, the preferential tax rates of 5% or 10% are applied. (iv) Under 2016 Revised Private Education Law, Qujing Hengshui Experimental Secondary School and Xinping Hengshui Experimental Middle School have registered as non-profit Xinping Hengshui Experimental High School Co., Ltd. and Datong Hengshi Gaokao Tutorial School have registered as for-profit Under the EIT Law and its implementation rules, an enterprise established outside China with a “place of effective management” within China is considered a China resident enterprise for Chinese enterprise income tax purposes. A China resident enterprise is generally subject to certain Chinese tax reporting obligations and a uniform 25% enterprise income tax rate on its worldwide income. The implementation rules to the New EIT Law provide that non-resident If the PRC tax authorities subsequently determine that the Company is deemed China resident enterprise, the Company will be subject to the PRC income tax at the rate of 25%. Dividends paid to non-PRC-resident PRC-resident non-PRC-resident The Group does not file combined or consolidated tax returns, therefore, losses from individual subsidiaries or the VIEs may not be used to offset other subsidiaries’ or the VIEs’ earnings within the Group. Income taxes The (loss)/income before income taxes and the provision for PRC income taxes for the years ended December 31, 2018, 2019 and 2020 are as follows: Years Ended December 31, 2018 2019 2020 (Loss)/income before income taxes (159,500 ) 37,060 96,324 Current income tax expense 16,088 8,453 21,501 Deferred tax benefits (5,902 ) (3,083 ) (6,097 ) Total income taxes expenses 10,186 5,370 15,404 Tax rate reconciliation The actual income tax expenses reported in the consolidated statements of comprehensive income/(loss) differs from the amount computed by applying the PRC statutory income tax rate of 25% to (loss)/income before income taxes due to the following: Years Ended December 31, Note 2018 2019 2020 (Loss)/income before income taxes (159,500 ) 37,060 96,324 Income tax computed at PRC statutory tax rate (39,875 ) 9,265 24,081 Effect of non-taxable (249 ) (2,444 ) (3,516 ) Effect of non-deductible 33,426 1,674 2,085 Effect of preferential tax rate 14,064 (4,019 ) (7,282 ) Deferred income tax liabilities for undistributed profits (i) (4,332 ) — — Withholding income tax accrued for declared dividends (i) 5,859 — — Changes of valuation allowances 1,293 523 (1,682 ) Late payment surcharge on uncertain tax position — 553 852 Others — (182 ) 866 10,186 5,370 15,404 Notes: (i): The Group has recognized deferred tax liability for the undistributed earnings of Yunnan WFOE and its subsidiaries of RMB4,332 as of December 31, 2017 and reversed the amounts in 2018 as the dividend was paid out. The Group has not recorded any such deferred tax liability attributable to the undistributed earnings of its financial interests in VIEs as of December 31, 2019 and 2020, as the Group plans to indefinitely reinvest these earnings in the PRC. Each of the VIEs does not have a plan to pay dividends in the foreseeable future and intends to retain any future earnings for use in the operation and expansion of its business in the PRC. Determination of the amount of unrecognized deferred tax liability related to these VIEs earnings is not practicable. Deferred taxes The components of deferred tax assets and liabilities are as follows: As of December 31, 2019 2020 Deferred tax assets: Allowance for doubtful accounts 409 408 Deductible donation expenses carried forwards 2,641 2,646 Accrued expenses 2,621 4,250 Registration fees 2,826 3,351 Property and equipment 68 137 Net operating loss carry forwards 1,696 3,690 Total gross deferred tax assets 10,261 14,482 Valuation allowance on deferred tax assets (2,484 ) (802 ) Deferred tax assets, net of valuation allowance 7,777 13,680 Deferred tax liabilities: Property and equipment (1,200 ) (968 ) Intangible assets (11,918 ) (11,153 ) Government grants (415 ) (1,218 ) Total deferred tax liabilities (13,533 ) (13,339 ) Net deferred tax (liabilities)/assets (5,756 ) 341 Analysis as: Deferred tax assets 6,567 12,274 Deferred tax liabilities (12,323 ) (11,933 ) Net deferred tax (liabilities)/assets (5,756 ) 341 The following table presents the movement of the valuation allowance for the deferred tax assets: 2018 2019 2020 Balance as of January 1, 668 1,961 2,484 Increase/(decrease) during the year 1,293 523 (1,682 ) Balance as of December 31, 1,961 2,484 802 The Group determined the valuation allowance on an entity by entity basis. The valuation allowance as of December 31, 2018, 2019 and 2020 was primarily related to certain PRC subsidiaries or affiliated schools, which were at cumulative loss positions. In assessing the realization of deferred income tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or utilized. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The net operating losses carry forwards of the Group’s PRC subsidiaries will expire in the following years: 2019 2020 2022 470 — 2023 1,453 442 2024 4,861 990 2025 — 13,328 6,784 14,760 Non-current The Group recognizes the benefit of positions taken or expected to be taken in tax returns in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2019 2020 Balance as of January 1, 1,046 2,567 3,686 Additions on tax positions 1,521 1,119 4,271 Balance as of December 31, 2,567 3,686 7,957 In 2018, 2019 and 2020, the Group increased its unrecognized tax benefits by RMB1,521, RMB1,119 and RMB4,271 respectively, related to uncertainty with regards to the deductibility of certain expenses incurred during the years. The unrecognized tax benefits balance as of December 31, 2019 and 2020 were RMB3,686 and RMB7,957 respectively, all of which, if recognized upon audit settlement or statute expiration, would affect the effective tax rate. The Group is currently unable to provide an estimate of a range of total amount of unrecognized tax benefits that is reasonably possible to change significantly within the next twelve months. According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB100. In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation in the case of tax evasion. |
Distribution Of Profit
Distribution Of Profit | 12 Months Ended |
Dec. 31, 2020 | |
Distribution Of Profit [Abstract] | |
Distribution Of Profit | 18 DISTRIBUTION OF PROFIT (a) Distribution of profits According to the resolutions of the board of director of First High-School HK on November 27, 2018, the dividends declared to the then shareholder were RMB80,614. Dividends of RMB27,880 were paid in November 2018 and unpaid dividends of RMB52,734 were recorded in amounts due to related parties as of December 31, 2018 and 2019, respectively. The Group further paid out RMB42,300 in December 2020 with a remaining balance of RMB10,434 unpaid (“Unpaid 2018 Dividend”) which was subsequently paid in March 2021. (b) Distribution to the Parent On December 9, 2020, the Parent entered into a Share Repurchase Agreement with its shareholder, Longwater Topco B.V. (“Longwater”), pursuant to which the Parent agreed to repurchase 718,239 of its shares from Longwater at a cash consideration of US$15,300, of which RMB89,083 (approximate US$13,713) was paid by the Group on the Parent’s behalf. The Group made the payment in December 2020 and has accounted for such payment as a distribution to the Parent within equity. (c) Declared dividends Pursuant to a board meeting dated December 25, 2020, the Company declared a dividend of US$24,163 (approximately RMB157,663) to the shareholders of the Company upon the consummation of the Corporate Restructuring described in Note 23(a). Such dividend was paid in full in March 2021. (d) Reserves As stipulated by relevant PRC laws and regulations, the Company’s subsidiaries and consolidated VIEs in the PRC must take appropriations from after-tax non-distributive These reserves include general reserve and the development reserve. The general reserve requires annual appropriation 10% of after-tax year-end Each of the schools is required to appropriate 25% , if any, after-tax non-distributable un-distributable |
(Loss)_Earnings Per Ordinary Sh
(Loss)/Earnings Per Ordinary Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
(Loss)/Earnings Per Ordinary Share | 19 (LOSS)/EARNINGS PER ORDINARY SHARE Years Ended December 31, 2018 2019 2020 Numerator Net (loss)/income a ttributable (169,686 ) 31,604 80,819 Denominator Weighted average number of ordinary shares – basic and diluted 67,914,968 70,488,700 70,488,700 Net (loss)/earnings per ordinary share – basic and diluted RMB(2.50 ) RMB0.45 RMB1.15 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 20 SEGMENT INFORMATION The Group has one operating segment, which is engaged in provision of full spectrum private fundamental education and complementary education services. The Group’s chief operating decision maker is the chief executive officer of the Group who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. Accordingly, no reportable segment information is presented. During the years ended December 31, 2018, 2019 and 2020, substantially all of the Group’s operations and long-lived assets were in the PRC. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | 21 COMMITMENTS AND CONTINGENCIES (a) Capital commitments Capital commitments outstanding as of December 31, 2019 and 2020 not provided for in the consolidated financial statements were as follows: As of December 31, 2019 2020 Contracted for 2,109 50,143 (b) Lease commitments The Group’s lease commitments are disclosed in Note 12. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 22 RELATED PARTY TRANSACTIONS During years ended December 31, 2018, 2019 and 2020, the related parties of the Group are as follows: Name of party Relationship Long-Spring Education Group The Parent Zhang Shaowei (“Mr. Zhang”) Founder, Chairman and chief executive officer of the Company Wu Yu Mr. Zhang’s immediate family member Zhang Shaodong Mr. Zhang’s immediate family member Liu Kai Vice president of the Group Xu Ruzheng Vice president of the Group (From June 2011 to July 2019) Sang Haiyong Vice president of the Group Yunnan Long-Spring Education Technology Co., Ltd. (“Yunnan Long-Spring”) Entity controlled by Mr. Zhang* Suzhou Long-Spring Education Technology Co., Ltd. (“Suzhou Long-Spring”) Entity controlled by Mr. Zhang* Yunnan Huayiweiming Technology Co., Ltd. (“Yunnan HYWM”) Entity controlled by Mr. Zhang* Xi’an Long-Spring Education Technology Co., Ltd. (“Xi’an Long-Spring”) Entity controlled by Mr. Zhang* Shanghai Long-Spring Education Technology Co., Ltd. (“Shanghai Long-Spring”) Entity controlled by Mr. Zhang* Beijing Hengzhong Education Technology Co., Ltd. (“Beijing Hengzhong”) Entity controlled by Mr. Zhang* Kunming Chenggong Times Giant Tutorial Co., Ltd. (“Kunming Chenggong”) Entity controlled by Mr. Zhang* Yunnan Qidi Primary School (“Yunnan Qidi”) Entity controlled by Mr. Zhang* Yunnan Three Three One Education Technology Co., Ltd. (“Three Three One”) Entity controlled by Mr. Zhang* * These entities controlled by Mr. Zhang operate non-listing (a) Major transactions with related parties In addition to the related party information disclosed elsewhere in the consolidated financial statements, the Group entered into the following material related party transactions. Years Ended December 31, Note 2018 2019 2020 Net advances to/(repayment from) — Mr. Zhang (i) 8,745 (3,307 ) 300 — Zhang Shaodong 3,200 6,551 (4,970 ) — Yunnan HYWM (i) (22,396 ) 204 — — Suzhou Long-Spring 31,000 (31,000 ) — — Yunnan Long-Spring 4,000 — (300 ) — Kunming Chenggong 2,500 1,568 1,200 — Xi’an Long-Spring (2,050 ) — — — Others (11 ) — — Total 24,988 (25,984 ) (3,770 ) Loans to/(repayment of loans from) — Liu Kai (iv) — 4,000 (3,500 ) — Xu Ruzheng (iv) — 4,000 — — Sang Haiyong (iv) — 1,600 — Total — 9,600 (3,500 ) Expenses paid on behalf — Mr Zhang 5,018 — — — Wu Yu 558 — — — The Parent — — 192 — Kunming Chenggong 866 — 216 — Yunnan Long-Spring 45 1,460 — Total 6,487 1,460 408 Disposal of subsidiaries — Kunming Chenggong (ii) 3,423 — — — Yunnan Long-Spring (ii) 742 — — Total 4,165 — — Net receipts on behalf of — The Parent (iii) 26,000 24,000 216 — Others 17 8 158 Total 26,017 24,008 374 Payments for advances from — Mr. Zhang — (18,038 ) (49 ) Borrowings from/(repayments of borrowings from) — The Parent (iii) 9,467 — (10,933 ) Notes: (i): Yunnan HYWM was an entity controlled by Mr. Zhang with no substantive operations since its incorporation. In 2017, the Group made advances of RMB34,355 to Mr. Zhang and his family member through transfer advances to Yunnan HYWM, of which RMB22,396 were collected in 2018. (ii): On August 26, 2018, the Group disposed 100% equity interest of Kunming Chengong to Yunnan Long-Spring for nil consideration as Kunming Chengong has not conducted any operation nor held any assets and is a shell company. No gain or loss was recognized as a result of the transaction for the year ended December 31, 2018. On September 15, 2018, the Group then transferred certain of its training program business to Kunming Chenggong for a consideration of RMB3,423, which was equal to the carrying amount of the net assets of the disposed training program business, pursuant to a business transfer agreement. No gain or loss was recognized as a result of the transaction for the year ended December 31, 2018. On October 30, 2018, the Group and Yunan Long-Spring entered into an equity transfer agreement through which the Group sold its 100% equity interests in Beijing Long-Spring Education Technology Co., Ltd. to Yunan Long-Spring for a consideration of RMB742 which was equal to the carrying amount of the net assets amount of the disposed company. No gain or loss was recognized as a result of the transaction for the year ended December 31, 2018. (b) Balances with related parties As of December 31, Note 2019 2020 Amounts due from related parties Current — Mr. Zhang (v) 37,474 72,908 — Zhang Shaodong (v) 9,751 351 — Wu Yu (v) 558 — — Yunnan HYWM (v) 13,503 — — The Parent (v) 5,400 5,592 — Kunming Chenggong (v) 8,357 13 — Yunnan Long-Spring (v) 7,182 — — Sang Haiyong (iv) — 1,600 Sub-total 82,225 80,464 Non-current — Liu Kai (iv) 4,000 500 — Sang Haiyong (iv) 1,600 — Sub-total 5,600 500 Total 87,825 80,964 Amounts due to related parties — Mr. Zhang 49 — — The Parent (iii)&(v) 113,198 218,313 — Others 112 683 Total 113,359 218,996 Related Party Companies that from time to time require short-term financing to support their business operations and working capital needs. After considering the cash on hand and forecasted cash flows to fund its operations, the Group provided financing to Mr. Zhang and his immediate family members and his Related Party Companies during the periods presented. The financing was provided in the form of interest-free advances and expenses paid on their behalf. Advances do not have a fixed term and are repayable upon demand. Notes: (iii): During the year ended December 31,2020, the Company (a) repaid the borrowings due to the Parent in full; (b) paid out the dividends of RMB42,300 with remaining balance of RMB10,434 unpaid; and (c) declared dividends of RMB157,663 (Note 18(c)). Therefore, the amounts due to the Parent as of December 31, 2020 mainly included (a) dividends payable of RMB168,097; and (b) receipt on behalf of the Parent of RMB50,000. The amounts due to the Parent as of December 31, 2019 mainly included (a) dividends payable of RMB52,734; (b) receipt on behalf of the Parent of RMB50,000; (c) Borrowings of RMB10,464. (iv): These loans to those group officers are interest-free for a period of two or three years. These amounts were secured by the Parent’s shares held by these individuals. Subsequent to the loan grant, Mr. Xu Ruzheng resigned from the Group and the amount of RMB3,500 and RMB500 owed by Mr. Xu Ruzheng to the Group were no longer classified as related party balances and were reclassified to prepaid expenses and other current assets and other non-current As of December 31, 2020, RMB3,500 due from ex-management Mr. Xu Ruzheng and RMB3,500 due from Liu Kai have been repaid. RMB1,600 due from Sang Haiyong and remaining RMB500 due from Liu Kai have been fully repaid in January 2021. (v): Pursuant to agreements entered into among Mr. Zhang and other related parties (representing the immediate family members of Mr. Zhang and the entities controlled by Mr. Zhang) on December 31, 2020, amount of RMB35,133 due from the immediate family members of Mr. Zhang and the entities controlled by Mr. Zhang were transferred to Mr. Zhang. Pursuant to a settlement |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23 SUBSEQUENT EVENTS (a) Corporate restructuring In January 2021, the Group underwent a corporate restructuring (the “Corporate Restructuring”) in anticipation of the contemplated IPO. Immediately prior to the Corporate Restructuring, the Company’s 100,000 issued ordinary shares were 100% owned by the Parent and the Parent’s shareholding structure was as below: Shareholders Class of share Number of Longwater * Ordinary shares with special rights* 2,276,769 Visionsky Group Limited ** (“Visionsky”, beneficially owned by Mr. Zhang) Ordinary shares 2,776,902 Brightenwit Group Limited ** (“Brightenwit”, beneficially owned by Wu Yu, Mr. Zhang’s spouse) Ordinary shares 449,251 BVI companies (beneficially owned by certain employees and non-employee Ordinary shares 1,545,948 Total 7,048,870 * Pursuant to the Parent’s shareholders’ agreement and memorandum and articles of association (“the Parent’s SA and M&A”), Longwater was provided with certain special rights, including but not limited to redemption and put option rights, right of first refusal and co-sale ** Visionsky and Brightenwit are collectively referred to as “Founders Holdcos”. The Corporate Restructuring was effected with the following steps: (1) On January 12, 2021, the Company issued 70,488,700 ordinary shares to the respective shareholders of the Parent (excluding 7,182,390 shares that was issued to but simultaneously repurchased from Longwater at nominal consideration) to mirror the shareholding structure of the Parent as shown in the table above. At the same time, the Parent surrendered 100,000 issued shares in the Company pursuant to a form of surrender letter. (2) On January 11, 2021, the Company entered into shareholders agreement with certain shareholders (“the Company’s SA”) and amended and restated the articles of association of the Company (“the Company’s RAA”) such that Longwater is provided with certain special rights (“Special Rights”), including voting rights, redemption and put option rights, and rights of first refusal and co-sale. (i) Voting rights Longwater is entitled to veto right in the board of directors meeting or shareholders meeting for certain events, including: (1) acquisition, merger, consolidation or other form of restructuring, dismissal, liquidation; (2) sale, transfer or disposal of any material assets; (3) incurrence of indebtedness and guaranty outside the ordinary course of business; (4) incurrence of any material capital expenditures; (5) material change or amendment in the annual business plan, any budget or business scope; (6) any form of capital increase; (7) appointment or removal of any directors or senior executives; and (8) issuance of any equity or debt securities; etc.. (ii) Redemption and put option rights At the request of Longwater, either the Founders Holdcos or the Company is required to purchase or repurchase all the ordinary shares held by Longwater. The redemption price shall equal to the sum of (a) the higher of (i) the applicable net profit amount for the immediately preceding complete financial year (the “Prior Year”) multiplied by a factor of 13.5, multiplied by Longwater’s shareholding percentage as of the date of the redemption, and (ii) the amount that provides the yield on Longwater’s net investments in its interests in the Parent and/or the Company at an internal rate of return of 25% per annum, and (b) the net cash amount as defined of the Group as of the end of the Prior Year multiplied by Longwater’s shareholding percentage as of the date of redemption, to the extent that such net cash amount has not been subsequently distributed to any shareholders. (iii) Rights of first refusal and co-sale Longwater has a right (the “Right of First Refusal”) to purchase all or any portion of the shares that any other shareholders may propose to transfer to any potential third-party transferees at the same price and subject to the same material terms and conditions as with these third-party transferees. In the event that Longwater does not exercise its Right of First Refusal to purchase any of the transfer shares, Longwater has the right (the “Right of Co-Sale”) Pursuant to a concurrent agreement entered into amongst the parties under the Company’s SA, the Special Rights of Longwater with respect to the Company’s ordinary shares it held were automatically terminated upon the completion of the IPO on March 11, 2021 As of December 31, 2020, Longwater has not exercised any of its redemption and put option rights with respect to its holding of the Company’s ordinary shares. As a result of the Corporate Restructuring, the Company’s shares are held directly by the shareholders of the Parent and the shareholding structure of the Company immediately after the Corporate Restructuring was as follows: Shareholders Class of share Number of shares Longwater Redeemable ordinary shares 22,767,690 Visionsky Ordinary shares 27,769,020 Brightenwit Ordinary shares 4,492,510 BVI companies Ordinary shares 15,459,480 Total 70,488,700 The Company considered the issuance of 70,488,700 new ordinary shares by the Company and the surrender by the Parent of the existing shares are in substance a recapitalization of the shareholding structure of the Company with the same net effect of a 100,000 for 70,488,700 split of the Company’s ordinary shares accompanied by the Parent’s distribution in specie of the Company’s ordinary shares to its shareholders. Accordingly, all share and per share data shown in the consolidated financial statements and related notes have been retrospectively revised to give effects to the nominal issuance of the 70,488,700 new shares and the surrender of the 100,000 old shares pursuant to the Corporate Restructuring. In addition, upon completion of the Corporate Restructuring, 22,767,690 ordinary shares of the Company held by Longwater are subject to redemption by the Company at any time at the option of Longwater. Management has recorded these redeemable ordinary shares in mezzanine equity upon the completion of the Corporate Restructuring in January 2021, which were subsequently reclassified as equity upon the completion of the IPO in March 2021 as all Special Rights were terminated. (b) Class A and Class B ordinary shares On January 12, 2021, the Company’s board of directors approved that, immediately prior to the completion of the Company’s IPO, (i) all of the ordinary shares held by Visionsky, Brightenwit and Longwater will be re-designated one-to-one re-designated one-to-one votes, subject to certain conditions, and is convertible into one Class A ordinary share at any time by the holder thereof. Upon any sale of Class B ordinary shares by a holder thereof to any person other than Mr. Zhang, Wu Yu and Longwater (collectively the “designated holders”), or any entity which is not affiliated with any of the designated holders, such Class B ordinary shares are automatically and immediately converted into the same number of Class A ordinary shares. The Company’s shares were re-designated into Class A and Class B ordinary shares in March 2021 upon the completion of IPO. (c) 2021 Share Incentive Plan On January 12, 2021, the Company’s board of directors approved the 2021 share incentive plan (the “Plan”), under which 3,524,435 ordinary shares are reserved, constituting a maximum aggregate number of ordinary shares which may be issued pursuant to all awards under the Plan to be equal to 5% of the total outstanding ordinary shares on an as-converted (d) Private placement agreement concurrently with its IPO Pursuant to subscription agreement with Shanghai Ruihai Chuangfeng Industrial Development Co., Ltd. (“Shanghai Ruihai”) dated January 10, 2021, CPP Investor agreed to purchase from the Company US$4,500 worth of ordinary shares at a price per share equal to the IPO price as adjusted to reflect the ADS-to-share On March 11, 2020, the Company completed its IPO on the New York stock exchange and issued 5,000,000 American depositary shares (“ADSs”), each representing three of Class A ordinary shares with IPO price of US$10.0 per ADS. The selling shareholder, Longwater, sold 2,500,000 ADSs concurrently with this offering. Concurrently, the Company completed above said private placement with Shanghai Ruihai and issued 1,350,000 Class A ordinary shares at IPO price of US$10.0 per ADS. Upon completion of aforementioned transactions in Notes 23(a), 23(b) and 23(d), 39,309,480 Class A ordinary shares and 47,529,220 Class B ordinary shares are issued and outstanding and net proceeds of US$ 45,577 |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Assets Disclosure [Abstract] | |
Restricted Net Assets | 24 RESTRICTED NET ASSETS The Group’s ability to pay dividends is primarily dependent on the Group receiving distributions of funds from its subsidiaries and VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s subsidiaries and VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with US GAAP differ from those reflected in the statutory financial statements of the Group’s subsidiaries and VIEs. In accordance with the PRC laws and regulations, statutory reserve funds shall be made and can only be used for specific purposes and are not distributable as cash dividends. As a result of these PRC laws and regulations that require annual appropriations of 10% of net after tax profits to be set aside prior to payments of dividends as general reserve fund or statutory surplus fund; and in private school sector, annual appropriations of 25% of net after tax profits to be set aside prior to payments of dividends as development fund. The Group’s PRC subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets to the Company. As of December 31, 2020, the total restricted net assets of the Company’s subsidiaries and VIEs incorporated in PRC and subjected to restriction amounted to RMB113,846. |
Condensed Financial Statements
Condensed Financial Statements of the Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Statements [Abstract] | |
Condensed Financial Statements of the Company | 25 CONDENSED FINANCIAL STATEMENTS OF THE COMPANY The Company performed a test on the restricted net assets of its consolidated subsidiaries and VIEs (the “restricted net assets”) in accordance with Securities and Exchange Commission Regulation S-X 4-08 The following condensed financial statements of the Company have been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Company used the equity method to account for its investment in its subsidiaries and VIEs. Such investment is presented on the separate condensed balance sheets of the Company as “Investments in subsidiaries and VIEs”. The Company, its subsidiaries and VIEs were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Company’s share of income/ (loss) from its subsidiaries and VIEs is reported as share of income/ (loss) from subsidiaries and VIEs in the condensed financial statements. Certain information and footnote disclosures generally included in financial statements prepared in accordance with US GAAP have been condensed and omitted. As of December 31, 2020, there were no material commitments or contingencies, significant provisions for long-term obligations or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. Condensed Balance Sheets As of December 31, 2019 2020 Assets Non-current Investments in subsidiaries and VIEs 66,899 97,253 Total non-current 66,899 97,253 Liabilities and Shareholders’ Equity / (Deficit) Current liabilities Amounts due to a related party — 157,663 Bank loan — 46,637 Total current liabilities and total liabilities — 204,300 Shareholders’ equity / (deficit) Ordinary shares (US$0.00001 par value; 5,000,000,000 shares authorized; and 70,488,700 shares issued and outstanding as of December 31, 2019 and 2020, respectively) — — Additional paid-in 221,791 64,128 Accumulated other comprehensive loss (3,223 ) (11,242 ) Accumulated deficits (151,669 ) (159,933 ) Total shareholders’ equity / (deficit) 66,899 (107,047 ) Total liabilities and shareholders’ equity / (deficit) 66,899 97,253 Condensed Statements of Comprehensive Income/ (Loss) Years Ended December 31, 2018 2019 2020 Share of (loss) / income from subsidiaries and VIEs (169,686 ) 31,604 80,819 Net (loss)/income before income taxes (169,686 ) 31,604 80,819 Income tax expense — — — Net (loss) / income (169,686 ) 31,604 80,819 Other comprehensive ( )/income (1,927 ) 1,929 (8,019 ) Comprehensive (loss)/ income (171,613 ) 33,533 72,800 Condensed Statements of Cash Flows Years Ended December 31, 2018 2019 2020 Net cash generated from operating activities — — — Net cash generated from investing activities — — — Net cash generated from financing activities — — — Net increase in cash — — — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (‘‘US GAAP’’). The consolidated financial statements are presented in Renminbi (‘‘RMB’’), rounded to the nearest thousand. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and the Company’s ability to pursue financing arrangements to support its working capital requirements. The Group has carried out a review of its cash flow forecast for the twelve months ending December 31, 2021. Based on such forecast, management believe that adequate sources of liquidity exist to fund the Group’s working capital and capital expenditures requirements, and other liabilities and commitments as they become due. In preparing the cash flow forecast, management have considered historical cash requirements, working capital and capital expenditures plans, estimated cash flows provided by operations, existing cash on hand, time deposits, as well as other key factors, including the existing loan facilities from the banks, its ability to obtain other external financing and the completion of the Company’s initial public offering (“IPO”) on New York Stock Exchange on March 11, 2021. Management believes the assumptions used in the cash forecast are reasonable. |
Principles of consolidation of VIEs | (b) Principles of consolidation of VIEs In order to comply with the PRC laws and regulations which prohibit foreign ownership of companies and institutions in compulsory educational services at middle school levels and restrict foreign investment in educational services businesses at the high school level, the Group operates its restricted business in the PRC through its VIEs, whose equity interest are held by the founders of the Group. The Group obtained the control over these VIEs by entering into a series of contractual agreements as details below: Exclusive Call Option Agreement Pursuant to the exclusive call option agreement, the shareholders of Long-Spring Education Holding Group Limited (“Long-Spring Education”) unconditionally and irrevocably granted Yunnan WFOE or its designated entity the right to purchase at any time all or part of their equity interests in Long-Spring Education at the lowest price applicable under PRC laws and regulations. Without Yunnan WFOE’s prior written consent, the shareholders of Long-Spring Education also refrain from (1) selling, assigning, transferring, or otherwise disposing of the equity or sponsorship interest, (2) increasing or reducing the capital investment, (3) dividing the affiliated entities into or merging it with other entities, (4) disposing of any of the assets of the affiliated entities, (5) terminating or contradicting any material contract entered into by the affiliated entities, (6) procuring the affiliated entities to enter into transactions that may have material impact on their assets, liabilities, operations, equity structure, or other legal rights, (7) procuring the affiliated entities to declare or distribute profits and/or returns, (8) amending the article of association of the affiliated entities, and (9) allowing the affiliated entities to undertake any material obligation beyond normal business activities. School Sponsor’s and Directors’ Rights Entrustment Agreement Pursuant to the school sponsor’s and directors’ rights entrustment agreement, the school sponsors irrevocably authorized and entrusted Yunnan WFOE or its designated personnel to exercise all their rights as the school sponsor of each school, including but not limited to the right to appoint and/or elect directors, council members, and supervisors of the school, right to review the resolutions of the board of directors and the financial statement of the school, right to transfer school sponsor’s interest, and right to decide whether the school would be for-profit non-profit. Shareholders’ Rights Entrustment Agreement Pursuant to the shareholders’ rights entrustment agreement, each shareholder of Long-Spring Education irrevocably authorized and entrusted Yunnan WFOE to exercise all the respective rights as shareholders of Long-Spring Education, including but not limited to the right to attend shareholder’s meeting and vote, right to sign shareholders’ resolutions and other legal documents, right to instruct the directors and other rights of shareholders under the school’s articles of association and the applicable PRC laws. Power of Attorney Pursuant to the school sponsors’ power of attorney, each school sponsor authorized and appointed Yunnan WFOE as its agent to exercise on its behalf a school sponsor’s rights. Pursuant to the directors’ power of attorney, each director of Long-Spring Education authorized and appointed Yunnan WFOE as his/her agent to exercise on his/her behalf a director’s rights. Pursuant to the shareholders’ power of attorney, each shareholder of Long-Spring Education authorized and appointed Yunnan WFOE as his/her/its agent to exercise on his/her/its behalf a shareholder’s rights. Equity Pledge Agreement Pursuant to the equity pledge agreement, the shareholders of Long-Spring Education unconditionally and irrevocably pledged and granted first priority security interests over all of his/her/its equity interest in Long-Spring Education, as well as all related rights, to Yunnan WFOE as security for performance of all the contractual arrangements. Without Yunnan WFOE’s prior written consent, the shareholders of Long-Spring Education must not transfer the equity interest or create further pledge or encumbrance over the pledged equity interest. They also waived any pre-emptive Spousal Undertaking Pursuant to the spousal undertaking executed by the spouses of the shareholders of Long-Spring Education, the signing spouses consented to the contractual arrangements with respect to the equity interest in Long-Spring Education, including its pledge, transfer, and disposal in any other forms. The spouses will not participate in the operation, management, liquidation, or any other matters in relation to Long-Spring Education’s subsidiaries and affiliated schools. They authorized the shareholders of Long-Spring Education to exercise their shareholding rights on behalf of them to ensure the interest of Yunnan WFOE. This undertaking will not terminate until Yunnan WFOE and the spouses terminate it in writing. Loan Agreement Pursuant to the loan agreement, Yunnan WFOE agreed to provide interest-free loans to Long-Spring Education. Each loan will be for an infinite term until termination at the sole discretion of Yunnan WFOE. This agreement will terminate when all equity interests of the Long-Spring Education are transferred to Yunnan WFOE. The agreements that transfer economic benefits of Long-Spring Education to the Group include: Exclusive Technical Service and Management Consultancy Agreement and Business Cooperation Agreement Pursuant to the exclusive technical service and management consultancy agreement and business cooperation agreement, Yunnan WFOE provides exclusive technical services to Long-Spring Education VIEs, including software, website, and on-site 30-day Under the above agreements, the shareholders of Long-Spring Education irrevocably granted Yunnan WFOE the power to exercise all voting rights to which they were entitled. In addition, Yunnan WFOE has the option to acquire all of the equity interests in Long-Spring Education, to the extent permitted by the PRC laws and regulations, for nominal consideration. Finally, Yunnan WFOE is entitled to receive service fees for certain services to be provided to Long-Spring Education. The Exclusive Call Option Agreement and Power of Attorney provide the Group with effective control over the Long-Spring Education, while the Equity Pledge Agreements secure the obligations of the shareholders of Long-Spring Education under the relevant agreements. Because the Group has (i) the power to direct the activities of Long-Spring Education, that most significantly affect its economic performance and (ii) the right to receive substantially all of the benefits from Long-Spring Education, the Group is deemed the primary beneficiary of Long-Spring Education. Accordingly, the Company consolidates VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In December 2018, in connection with 2018 Share Incentive Plan, certain management personnel and employees of the Group through establishment of limited partnership entities (“PRC Partnership entities”) became legal shareholders of Long-Spring Education. The above VIE agreements (“2016 VIE Agreements”) were terminated and concurrently, new contractual VIE Agreements were entered into among Long-Spring Education, Long-Spring Education’s shareholders (including PRC Partnership entities) and Yunnan WFOE. The terms of the new contractual arrangements among Long-Spring Education, PRC Partnership entities and Yunnan WFOE are identical to the terms of the 2016 VIE Agreements. Risks in relation to VIE structure As Long-Spring Education VIEs were established as limited liability companies or organizations under the PRC law, their creditors do not have recourse to the general credit of Yunnan WFOE for the liabilities of Long-Spring Education VIEs, and Yunnan WFOE does not have the obligation to assume the liabilities of Long-Spring Education VIEs. The Group believes that the contractual arrangements with Long-Spring Education VIEs are in compliance with the PRC law and are legally enforceable. However, the contractual arrangements are subject to risks and uncertainties, including: • Long-Spring Education and their 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 arrangements. If the Group cannot resolve any conflicts of interest or disputes between the Group and the shareholders of Long-Spring Education, the Group would have to rely on legal proceedings, which could result in disruption of its business, and there may be substantial uncertainty as to the outcome of any such legal proceedings. • Long-Spring Education and their 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 VIEs or the Group, mandate a change in ownership structure or operations for the VIEs or the Group, restrict the VIEs or the Group’s use of financing sources or otherwise restrict the VIEs or the Group’s ability to conduct business. • The PRC government may declare the aforementioned contractual arrangements invalid. They may modify the relevant regulations, have a different interpretation of such regulations, or otherwise determine that the Group or the VIEs have failed to comply with the legal obligations required to effectuate such contractual arrangements. • If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government may restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. There is no VIE in which the Group has a variable interest but is not the primary beneficiary. The table sets forth the assets and liabilities of the VIEs included in the Company’s consolidated balance sheets: As of December 31, 2019 2020 Note Current assets Cash 130,785 138,375 Accounts receivable, net of allowance for doubtful accounts 7,674 20,407 Amounts due from related parties i 129,639 238,621 Prepaid expenses and other current assets 12,732 30,959 Total current assets 280,830 428,362 Property and equipment, net 53,194 59,771 Intangible assets, net 47,932 44,858 Goodwill 40,218 40,218 Deferred tax assets 2,911 7,371 Other non-current 4,438 16,252 Total assets 429,523 596,832 Current liabilities Contract liabilities 169,151 203,248 Deferred revenue from governments 17,789 13,770 Borrowings under financing arrangements 14,577 64,140 Accounts payable 4,331 3,655 Accrued expenses and other payables 67,167 68,078 Income tax payables 2,854 5,763 Amounts due to related parties ii 54,056 72,648 Total current liabilities 329,925 431,302 Contract liabilities 3,790 7,274 Deferred revenue from governments 4,032 12,370 Borrowings under financing arrangements 7,453 28,643 Other payables 2,760 6,276 Deferred tax liabilities 12,323 11,933 Total liabilities 360,283 497,798 Notes: (i): Amounts due from related parties consisted of (a) amounts due from related parties as disclosed in Note 22 and (b) inter-company receivables for advances made by the VIEs to other companies within the Group. (ii): Amounts due to related parties consisted of (a) amounts due to related parties as disclosed in Note 22 and (b) inter-company payables for advances received by VIEs from other companies within the Group. The table sets forth the results of operations of the VIEs included in the Company’s consolidated statements of comprehensive income: Years Ended December 31, 2018 2019 2020 Net revenues 224,492 308,884 392,860 Net income 8,160 16,539 29,416 The table sets forth the cash flows of the VIEs included in the Company’s consolidated statements of cash flows: Years Ended December 31, 2018 2019 2020 Net cash generated from operating activities 96,270 139,444 95,914 Net cash (used in)/generated from investing activities (89,927 ) 30,548 (32,286 ) Net cash generated from financing activities 25,269 28,202 68,011 The unrecognized revenue producing assets that are held by the VIEs comprise of assembly workforce and intellectual property and trademarks which were not recorded on the Company’s consolidated balance sheets as they do not meet all the capitalization criteria. Costs recognized by the VIEs for management services provided by other entities within the Group were RMB32,515, RMB47,056 and RMB75,802 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Use of estimates | (c) Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to, estimate of standalone selling prices of each unit of accounting in multiple performance obligations, estimate of the contract period of the government cooperative agreements, the useful lives of long-lived assets, the fair values of assets acquired and liabilities assumed and the consideration transferred in a business combination, the fair value of the reporting unit for the goodwill impairment test, the allowance for doubtful accounts receivable and other current assets, the realization of deferred income tax assets, the fair value of share-based compensation awards and the recoverability of long-lived assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Cash, cash equivalents and restricted cash | (d) Cash, cash equivalents and restricted cash Cash and cash equivalents comprise cash at banks and on hand, which have original maturities of three months or less when purchased and are subject to an insignificant risk of changes in value. The Group does not have any cash equivalents as of December 31, 2019 and 2020. Cash that is restricted as to withdrawal for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is not included in the total cash and cash equivalents in the consolidated statements of cash flows. The Group’s restricted cash represents deposits in connection with the bank loan as disclosed in Note 10. Cash and restricted cash as reported in the consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows: As of December 31, 2019 2020 Cash 153,418 148,756 Restricted cash — 59,600 Total cash and restricted cash 153,418 208,356 |
Fair value of financial instruments | (e) Fair value of financial instruments The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The carrying values of financial instruments, which consist of cash, restricted cash, accounts receivable, net of allowance for doubtful accounts, amounts due from related parties, prepaid expenses and other current assets, accounts payable, accrued expenses and other payables, bank loan and amounts due to related parties are measured at amortized cost which approximates their fair value due to the short-term nature of these instruments. The borrowings under financing arrangements is measured at amortized cost. The fair value of these long-term debt obligations approximates their carrying value as the borrowing rates are similar to the market rates that are currently available to the Group for financing obligations with similar terms and credit risks and represent a level 2 measurement. |
Contract balances | (f) Contract balances The timing of revenue recognition, billings and cash collections result in accounts receivable, contract assets and contract liabilities. Accounts receivable are recorded at the billing amount, net of an allowance for doubtful account and is recognized in the period when the Company’s right to consideration is unconditional. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Group maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and customers’ financial condition, the amount of receivables in dispute, the accounts receivable aging, and the customers’ repayment patterns. The Group reviews its allowance for doubtful accounts on a customer-by-customer off-balance-sheet A contract liability is the obligation to provide services or goods to a customer for which the Group has received consideration from the customer. If a customer pays the consideration before the Group provides services or goods to the customer, a contract liability is recognized when the payment is made or the payment is due. |
Property and equipment | (g) Property and equipment Property and equipment are carried at cost less accumulated depreciation and any recorded impairment. Gains or losses arising from the disposal of an item of property and equipment are determined based on the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of disposal. The estimated useful lives are presented below. Category Estimated useful life Buildings 18 - 20 years Leasehold improvement Shorter of the lease term and the estimated useful lives of the assets Furniture and office equipment 6 - 10 years Electronic equipment 4 - 5 years Vehicles 5 years Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets. |
Leases | (h) Leases Leases are classified at the lease inception date as either a capital lease or an operating lease. A lease is a capital lease if any of the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the property’s estimated remaining economic life, or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. The Group records a capital lease as an asset and an obligation at an amount equal to the present value at the beginning of the lease term of minimum lease payments during the lease term. Rental costs on operating leases are charged to expense on a straight-line basis over the lease term. Certain operating leases contain rent holidays and escalating rent. Rent holidays and escalating rent are considered in determining the straight-line rent expense to be recorded over the lease term. Rental costs associated with building operating leases that are incurred during the construction of leasehold improvements and to otherwise ready the property for the Group’s intended use are recognized as rental expenses and are not capitalized. |
Business combinations | (i) Business combinations Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling non-controlling |
Intangible assets | (j) Intangible assets Acquired intangible assets comprised of government cooperative agreements and software. The government cooperative agreements acquired from business combination is recognized and measured at fair value and the acquired software are measured at cost, less accumulated amortization and impairment. Amortization of finite-lived intangible assets is computed using the straight-line method over the estimated useful lives. The amortization periods by intangible asset classes are as follows: Category Estimated useful life Systems software 2-10 Government cooperative agreements 17 years |
Goodwill | (k) Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in the acquisition that are not individually identified and separately recognized. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of the reporting unit, assignment of assets and liabilities to the reporting unit, assignment of goodwill to the reporting unit, and determination of the fair value of each reporting unit. The Group has the option to perform a qualitative assessment to determine whether it is more-likely-than not that the fair value of a reporting unit is less than its carrying value prior to performing the two-step more-likely-than-not two-step |
Impairment of long-lived assets | (l) Impairment of long-lived assets Long-lived assets, such as property and equipment, intangible assets subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. No impairment losses were recorded for long-lived assets for the years ended December 31, 2018, 2019 and 2020. |
Commitment and contingencies | (m) Commitment and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Revenue recognition | (n) Revenue recognition Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Accounting Standards Update (“ASU”) No. 2104-09, Revenue from Contracts with Customers (Topic 606 ) For contracts with customers that contain multiple performance obligations, determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The transaction price is allocated to the separate performance obligation on a relative standalone selling price basis. The standalone selling price is determined based on overall pricing objectives, taking into consideration market conditions, geographic locations and other factors. The primary sources of the Group’s revenues are as follows: Formal education services The Group’s revenue is principally derived from the provision of boarding school educational services to students. The Group offers formal education program at the middle school and high school. Tuition and accommodation fees received from formal education services are generally paid in advance prior to the beginning of each semester. In very limited circumstances students may, with special approval of the management, receive education first and pay their tuition in arrears. Each contract with a student in respect of the formal education services contains multiple performance obligations consisting of the provision of the curriculum education services, after-school enrichment services, registration and transportation services (collectively as “educational services”), delivery of educational books and related materials (collectively as “educational materials”), boarding services and meal catering services. These performance obligations are distinct in the context of the contract. The consideration expected to be received is allocated at contract inception among the performance obligations based on their stand-alone selling prices. Revenue attributable to educational services and boarding services is recognized over time, based on a straight-line basis over the school year, as customers simultaneously receive and consume the benefits of these services throughout the service period. The portion of tuition and boarding payments received from students but not earned is recorded contract liability and is reflected as a current liability as such amounts represent revenue that the Group expects to earn within one year. The academic year of the Group’s school is generally from September to January of the following year and from March to June. 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. Revenue attributable to educational materials and meal catering services is recognized at point in time, when the control of the educational materials or underlying goods is passed to customers. The Group considers that it is acting as the principal in the transaction and recognizes revenue from sales of the educational materials and meal catering services on a gross basis. Revenue from government cooperative arrangements The Group has entered into certain long-term cooperative arrangements with local governments in areas where some of the schools are located. Pursuant to such arrangements, the Group is committed to admit certain number of local students as “publicly-sponsored students” who pay the tuition fees based on the amounts charged by a comparable public school. The difference between the fees charged by the Group to other students and the fees charged to publicly-sponsored students are subsidized by the local governments in the form of lump sum funding payments in the first few years of the cooperative arrangements. The government subsidies are recognized as “revenue from government cooperative arrangements” on a systematic basis when there is reasonable assurance that they will be received and the Group will comply with the conditions attaching to the agreements. In particular, revenue under these arrangements are recognized on a straight-line basis during the relevant school year, and over the estimated period to which the subsidies relate, based on the difference in average tuition fee for private students and for publicly-sponsored students and the number of publicly-sponsored students of each academic year. When the Group has received payments from the governments before educational services are provided to these publicly-sponsored students, a deferred revenue from governments is recognized when the payments are received. Throughout the whole period of cooperative arrangements, the governments also provide free access to certain buildings and dormitories and assign certain number of teachers who originally work in other public schools to the Group. These subsidies are determined as non-monetary Tuition income from training programs Revenue derived from providing Gaokao (the university entrance examination in China) repeaters’ education programs and other after-school is recognized over time, based on a straight-line basis over the program service period, as customers simultaneously receive and consume the benefits of these services throughout the service period. Education and management service fees Revenue derived from 1) the education and management service provided to the third-party schools included logistic management services, school operation and management services and other services. The promised services in each education and management service contract are combined and accounted as a single performance obligation, as the promised services in a contract are not distinct and are considered as a significant integrated service. and 2) the meal catering services are outsourced to certain vendors and the Group charges management service fee from these vendors. The revenue is recognized on a straight-line basis over the period of the education and management service, as customers simultaneously receive and consume the benefits of these services throughout the service period. The Group has assessed all variable considerations identified when determining the transaction price. In making such assessment, the Group may provide price concessions to the customers under education and management services contracts in order to enter into new contracts or collect payments. The Group includes the estimate of the concession in the amount of consideration to which it ultimately expects to be entitled. VAT collected from customers is excluded from revenue. The Company’s PRC subsidiaries and VIEs are subject to VAT. The deductible input VAT balance is recorded in prepaid expenses and other current assets, and VAT payable balance is recorded in the accrued expenses and other payables. |
Cost of revenues | (o) Cost of revenues Cost of revenues consists primarily of salaries to instructors and tutors, rental expenses for office and school space, depreciation and amortisation of properties and equipment, teaching materials and other costs directly attributable to the provision of the service revenue. |
Selling and marketing expenses | (p) Selling and marketing expenses Selling and marketing expense mainly consists of advertising costs which are expensed as incurred. Advertising costs amounted to RMB5,470, RMB4,834 and RMB7,625 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Government grants | (q) Government grants Except for the subsidies received under the government cooperative arrangements described in Note 2(n), government grants are recognized when received and when all the conditions for their receipt have been met. Subsidies that compensate the Group for expenses incurred are recognized as a reduction of expenses in the consolidated statements of comprehensive income/ (loss). Subsidies that are not associated with expenses are recognized as income from government grants. |
Income tax | (r) Income tax Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Group reduces the carrying amounts of deferred tax assets by a valuation allowance, if based on the available evidence, it is ‘‘more-likely-than-not’’ ‘‘more-likely-than-not’’ The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group records interest related to unrecognized tax benefits in income tax expense and penalties in general and administrative expenses. |
Share-based compensation | (s) Share-based compensation The Group accounts for the compensation cost from share-based payment transactions with employees based on the grant-date fair value of the equity instrument issued. The grant-date fair value of the award is recognized as compensation expense, net of forfeitures, over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. The Group elects to recognize forfeitures when they occur. Share-based payment transactions with nonemployees in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value of the equity instrument issued is the earlier of either the date on which the counterparty’s performance is complete or the date at which a commitment for performance by the counterparty to earn the equity instrument is reached. The award in the shares of the Parent of the Group granted to employees and non-employees non-employee For further information on share-based compensation, see Note 14 below. |
Employee benefits | (t) Employee benefits Pursuant to relevant PRC regulations, the Group is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at rates ranging from 31% to 37% on employees’ salaries, up to a maximum amount specified by local social security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of comprehensive income/ (loss) when the related service is provided. |
Foreign currency translation and foreign currency risks | (u) Foreign currency translation and foreign currency risks The Group use RMB as its reporting currency. The functional currency of the Company, First High-School BVI and First High-School HK is the USD, whereas the functional currency of its PRC subsidiaries and consolidated VIEs is the RMB. Foreign currency transactions during the period are translated at the foreign exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the foreign exchange rates ruling at the end of the reporting period. Exchange gains and losses are recognized in profit or loss and are reported in foreign currency exchange gain (loss) on a net basis. The results of foreign operations are translated into RMB at the exchange rates approximating the foreign exchange rates ruling at the dates of the transactions. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported in other comprehensive income and accumulated in the translation adjustment component of equity until the sale or liquidation of the foreign entity. The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the PRC government, controls the conversion of RMB to foreign currencies. The value of the RMB is subject to changes of central government policies and international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Group’s cash denominated in RMB amounted to RMB153,418 and RMB148,756 as of December 31, 2019 and 2020, respectively. |
Concentration of credit risk | (v) Concentration of credit risk The Group’s credit risk arises from cash, prepaid expenses and other current assets and other non-current The Group expects that there is no significant credit risk associated with the cash which are held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries and VIEs are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has no significant concentration of credit risk with respect to its other receivables and prepayments. The Group conducts credit evaluations on its customers prior to delivery of goods or services. The assessment of customer creditworthiness is primarily based on historical collection records, research of publicly available information and customer on-site |
Recently adopted accounting pronouncements | (w) Recently adopted accounting pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
Recently issued accounting pronouncements | (x) Recently issued accounting pronouncements Under the Jumpstart Our Business Startups Act of 2012, as amended (“the JOBS Act”), the Company meets the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to the Related Party Guidance for Variable Interest Entities In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. 2019-12 In January 2017, FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment 1 In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases 2016-02 on-balance right-of-use No. 2018-10, Codification Improvements to Topic 842, Leases, No. 2016-02. No. 2018-11, Leases (Topic 842): Targeted Improvements No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, No. 2016-02 |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company's subsidiaries and consolidated VIEs | As of December 31, 2020, the Company’s subsidiaries and consolidated VIEs are as follows. Name Place of Date of establishment Equity Principal activities Wholly owned subsidiaries First High-School Education Group (BVI) Limited (“First High-School BVI”) BVI September 20, 2018 100 % Investment holding First High-School Group Hong Kong Limited (“First High-School HK”) Hong Kong September 28, 2016 100 % Investment holding Yunnan Century Long-Spring Education Technology Co., Ltd. (“Yunnan WFOE”) The PRC October 31, 2016 100 % Management consulting service Beijing Hengzhong Education Consulting Co., Ltd. The PRC December 5, 2016 100 % Complementary education services Yunnan Long-Spring Logistics Service Co., Ltd. The PRC September 16, 2015 100 % Education and management service Name Place of Date of establishment Percentage of direct and indirect Principal activities VIEs: Long-Spring Education Holding Group Limited The PRC September 20, 2011 100 % Management service Yunnan Zhongchuang Education Tutorial Academy The PRC August 28, 2012 100 % Tutorial services Resorts District Hengshui Experimental Secondary School The PRC April 4, 2014 100 % Formal education services* Yunnan Hengshui Chenggong Experimental Secondary School The PRC July 23, 2015 100 % Formal education services* Yunnan Hengshui Experimental Secondary School—Xishan School The PRC July 1, 2016 100 % Formal education services* Yunnan Hengshui Yiliang Experimental Secondary School The PRC July 11, 2016 100 % Formal education services* Yunnan Long-Spring Foreign Language Secondary School The PRC April 18, 2017 100 % Formal education services* VIEs: Ordos Hengyue Education Technology Co., Ltd. The PRC July 8, 2017 100 % Investment holding Beijing Hengyue Education Technology Co., Ltd. The PRC July 11, 2017 100 % Management service Qujing Hengshui Experimental Secondary School The PRC July 18, 2017 100 % Formal education services* Yunnan Yuxi Hengshui Experimental High School The PRC August 3, 2017 100 % Formal education services* Ordos Hengshui Experimental High School The PRC August 4, 2017 100 % Formal education services* Kunming Guandu Hengshizhong Education Tutorial School Co., Ltd. The PRC January 10, 2019 100 % Tutorial services Xinping Hengshui Experimental High School Co., Ltd. The PRC July 5, 2019 100 % Formal education services* Xinping Hengshui Experimental Middle School The PRC June 14, 2019 100 % Formal education services* Shanxi Long-Spring Enterprise Management Co., Ltd. The PRC June 20, 2019 56 % Investment holding Datong Hengshi Gaokao Tutorial School The PRC June 20, 2019 56 % Tutorial services Yunnan Bainian Long-Spring Technology Co., Ltd. The PRC May 11, 2020 56 % Management consulting service Guizhou Long-Spring Century Technology Co., Ltd. The PRC June 17, 2020 100 % Management consulting service Guizhou Hengshizhong Technology Co., Ltd. The PRC July 1, 2020 56 % Management consulting service Zhenxiong Bainian Long-Spring Technology Co., Ltd. The PRC July 2, 2020 56 % Management consulting service Xishuangbanna Hengshui Experimental High School The PRC July 20, 2020 100 % Formal education services* Yunnan Hengshui Qiubei Experimental High School The PRC July 21, 2020 100 % Formal education services* Yunnan Hengshui Wenshan Experimental High School The PRC August 3, 2020 56 % Formal education services* Guizhou Mingde Tutorial School The PRC September 1, 2020 56 % Tutorial services Yunnan Hengshui Zhenxiong High School The PRC September 1, 2020 56 % Formal education services* Yunnan Hengshui Experimental Secondary School—Mengla School The PRC September 4, 2020 100 % Formal education services* Long-Spring Education Group (Yunnan) Hengshui Experimental School Management Co., Ltd. The PRC December 24, 2020 100 % Management consulting service * Formal education services include middle, high and international school services. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary Of Asset And Liabilities Of The VIEs | The table sets forth the assets and liabilities of the VIEs included in the Company’s consolidated balance sheets: As of December 31, 2019 2020 Note Current assets Cash 130,785 138,375 Accounts receivable, net of allowance for doubtful accounts 7,674 20,407 Amounts due from related parties i 129,639 238,621 Prepaid expenses and other current assets 12,732 30,959 Total current assets 280,830 428,362 Property and equipment, net 53,194 59,771 Intangible assets, net 47,932 44,858 Goodwill 40,218 40,218 Deferred tax assets 2,911 7,371 Other non-current 4,438 16,252 Total assets 429,523 596,832 Current liabilities Contract liabilities 169,151 203,248 Deferred revenue from governments 17,789 13,770 Borrowings under financing arrangements 14,577 64,140 Accounts payable 4,331 3,655 Accrued expenses and other payables 67,167 68,078 Income tax payables 2,854 5,763 Amounts due to related parties ii 54,056 72,648 Total current liabilities 329,925 431,302 Contract liabilities 3,790 7,274 Deferred revenue from governments 4,032 12,370 Borrowings under financing arrangements 7,453 28,643 Other payables 2,760 6,276 Deferred tax liabilities 12,323 11,933 Total liabilities 360,283 497,798 |
Summary Of Consolidated Statements Of Comprehensive Income For Variable Interest Entity | The table sets forth the results of operations of the VIEs included in the Company’s consolidated statements of comprehensive income: Years Ended December 31, 2018 2019 2020 Net revenues 224,492 308,884 392,860 Net income 8,160 16,539 29,416 |
Summary Of Cash Flows Of Variable Interest Entities | The table sets forth the cash flows of the VIEs included in the Company’s consolidated statements of cash flows: Years Ended December 31, 2018 2019 2020 Net cash generated from operating activities 96,270 139,444 95,914 Net cash (used in)/generated from investing activities (89,927 ) 30,548 (32,286 ) Net cash generated from financing activities 25,269 28,202 68,011 |
Summary Of Cash and Cash Equivalents | Cash and restricted cash as reported in the consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows: As of December 31, 2019 2020 Cash 153,418 148,756 Restricted cash — 59,600 Total cash and restricted cash 153,418 208,356 |
Summary Of Estimated Useful Lives Of Property Plant And Equipment | The estimated useful lives are presented below. Category Estimated useful life Buildings 18 - 20 years Leasehold improvement Shorter of the lease term and the estimated useful lives of the assets Furniture and office equipment 6 - 10 years Electronic equipment 4 - 5 years Vehicles 5 years |
Summary Of Estimated Useful Lives Of Other Intangible Assets | The amortization periods by intangible asset classes are as follows: Category Estimated useful life Systems software 2-10 Government cooperative agreements 17 years |
Contract Balances (Tables)
Contract Balances (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Summary Of Reconciliation Of Accounts Receivable | Accounts receivable, net consisted of the following: As of December 31, Note 2019 2020 Accounts receivable derived from governments cooperative arrangements (i) 2,772 15,983 Accounts receivable from other customers (ii) 4,915 14,920 Accounts receivable 7,687 30,903 Less: allowance for doubtful accounts — — Accounts receivable, net 7,687 30,903 |
Aging Analysis Of Accounts Receivable | The aging analysis is as follows: As of December 31, 2019 2020 Within 90 days (inclusive) 7,687 12,580 Over 90 days but within 1 year (inclusive) — 18,323 7,687 30,903 Less: allowance for doubtful accounts — — Accounts receivable, net 7,687 30,903 |
Summary Of Contract Liabilities | The balances of the Group’s contract liabilities are as following: As of December 31, 2019 2020 Current liabilities 171,303 203,482 Non-current 5,778 7,274 Contract liabilities 177,081 210,756 |
Summary Of Movements In Contract Liabilities | Movements in contract liabilities: 2019 2020 Balance as of January 1, 134,400 177,081 Increase in contract liabilities as a result of receiving advances 328,329 399,410 Decrease in contract liabilities as a result of recognition of revenues during the year (285,648 ) (365,735 ) Balance as of December 31, 177,081 210,756 |
Summary Of Deferred Revenue Under Government Cooperative Arrangements | The balances of the Group’s deferred revenue under government cooperative arrangements are as follows: As of December 31, 2019 2020 Current liabilities 17,789 13,770 Non-current 4,032 12,370 Deferred revenue from governments 21,821 26,140 |
Summary Of Reconciliation Of Deferred Revenue | Movements in deferred revenue from governments: 2019 2020 Balance as of January 1, 14,999 21,821 Addition during the year 31,854 32,380 Recognized in revenue during the year (25,032 ) (28,061 ) Balance as of December 31, 21,821 26,140 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses And Other Current Assets [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: As of December 31, Note 2019 2020 Advances to third parties 2,000 2,000 VAT recoverable 5,057 2,962 Advances to employees 1,422 1,448 Loans to employees — 550 Loans to third parties (i) — 7,080 Deferred offering expense (ii) 1,150 13,207 Other deferred expenses 2,880 4,341 Prepaid rental fees 5,859 3,206 School deposits 8(i) — 8,000 Deposits for financing arrangements 9 — 4,064 Other deposits 1,460 2,640 Prepayments for goods and services 1,815 2,415 Low-value 1,393 1,469 Others 1,301 2,602 24,337 55,984 Less: allowance for doubtful accounts (2,534 ) (2,534 ) Prepaid expenses and other current assets 21,803 53,450 Note (i): The balances of RMB7,080 were interest-free loans to third parties which were due within one year. The amounts were collected in April 2021. Note (ii): Deferred offering expenses were direct incremental fees in relation to IPO. The amounts will reduce the net proceeds received and offset the equity upon the completion of the IPO. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consisted of the following: As of December 31, 2019 2020 At cost: Buildings 93,231 94,004 Leasehold improvement 34,560 44,379 Furniture and office equipment 11,982 15,371 Electronic equipment 20,472 23,695 Vehicles 2,783 4,150 Construction in progress — 3,211 163,028 184,810 Less: accumulated depreciation (26,597 ) (42,403 ) Property and equipment, net 136,431 142,407 |
Summary of Depreciation of Property and Equipment | Depreciation of property and equipment were RMB7,194, RMB10,925 and RMB15,873 for the years ended December 31, 2018, 2019 and 2020, respectively, and included in the following captions: Years Ended December 31, 2018 2019 2020 Cost of revenues 3,629 7,449 10,788 General and administrative expenses 3,565 3,476 5,085 Total 7,194 10,925 15,873 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
summary of Intangible assets | Intangible assets consisted of the following: As of December 31, 2019 2020 Systems software 3,391 5,026 Government cooperative agreements 52,000 52,000 55,391 57,026 Less: accumulated amortization (4,686 ) (8,050 ) Intangible assets, net 50,705 48,976 |
summary of Estimated Amortization Expenses for Intangible Assets | Estimated future amortisation expense related to these intangible assets is as follows: Fiscal year ending December 31, 2021 3,420 2022 3,420 2023 3,420 2024 3,420 2024 3,420 Thereafter 31,876 Total 48,976 |
Business Combination and Good_2
Business Combination and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary Of Movement Of Goodwill | The movement of goodwill is set out as below: 2018 2019 2020 Balance as of January 1, — 40,218 40,218 Addition during the year 40,218 — — Balance as of December 31, 40,218 40,218 40,218 |
Summary of Contingent Consideration Payables | As of December 31, 2019 and 2020, contingent consideration payables were recorded as follows based on the payment schedule in the share purchase agreement. As of December 31, 2019 2020 Current accrued expense and other payables 19,309 18,862 Contingent consideration payables 19,309 18,862 |
Summary Of Identifiable Assets And Liabilities Assumed At Fair Value In Business Combination | The identifiable assets acquired and liabilities assumed in the business combination were recorded at their fair values on the acquisition date and consisted of the following major items. Note Fair value of consideration 76,496 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash 17,776 Property and equipment 166 Intangible assets (i) 52,047 Other assets 326 Accounts payable (1,355 ) Contract liabilities (ii) (6,341 ) Deferred tax liabilities (13,496 ) Deferred revenue from governments (ii) (6,100 ) Other liabilities (6,745 ) Total identifiable net assets at fair values 36,278 Goodwill (iii) 40,218 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets, Noncurrent [Abstract] | |
Summary of other non-current assets | Other non-current As of December 31, Note 2019 2020 Loans to an ex-management 22(b) 4,000 500 Loans to employees 2,900 2,550 Deposits for financing arrangements 9 2,864 1,700 School deposits (i) — 12,000 Rental deposits — 1,150 Others 943 624 Other non-current 10,707 18,524 Note (i): As of December 31, 2020, RMB20,000 deposits were paid by the Group for the establishment of a new school in Zhenxiong County in Yunnan Province, among which RMB12,000 is expected to be recovered after more than one year and RMB8,000 is expected to be recovered within one year (Note 4). |
Borrowings Under Financing Ar_2
Borrowings Under Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated Borrowings [Abstract] | |
Summary of Group's Borrowings Under Financing Arrangements | The balances of the Group’s borrowings under financing arrangements are as following: As of December 31, 2019 2020 Current portion 14,577 64,140 Non-current 7,453 28,643 22,030 92,783 |
Accrued Expenses And Other Pa_2
Accrued Expenses And Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule Of Accrued Expenses And Other Payables | Accrued expenses and other payables, current and non-current, As of December 31, Note 2019 2020 Accrued payroll and welfare benefits 30,054 31,553 Contingent consideration payables for a business combination 7 19,309 18,862 Government subsidies received on behalf of certain teachers and students 5,781 2,511 Other tax payables 11,614 15,613 Deposits received 6,396 18,278 Accrued service fees 1,040 4,263 Accrued utilities fees 1,094 1,245 Others 5,989 8,535 Accrued expenses and other payables 81,277 100,860 Including: - Current portion 77,591 91,253 - Non-current 3,686 9,607 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Future Minimum Operating Lease Payments | Future minimum operating lease payments as of December 31, 2020 are summarized as follow: Years ending December 31, 2021 6,746 2022 6,860 2023 6,376 2024 5,600 2025 5,600 Thereafter 44,500 Total 75,682 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary Of Assumptions Used For Fair Values Of The Restricted Shares Estimated On The Grant Date | The fair value of the restricted shares was estimated on the grant date for employees’ restricted shares or the performance completion date for non-employees’ December 3, 2018 Weight average cost of capital (“WACC”) 15 % Discount for lack of marketability (“DLOM”) 12 % Fair value of each restricted share RMB13.80 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disaggregation of Revenue [Abstract] | |
Summary of disaggregation of revenue | Revenues consisted of the following: Years Ended December 31, 2018 2019 2020 Revenue from customers Formal education services -Educational services 143,127 212,551 278,089 -Boarding 11,107 16,036 20,444 -Sale of educational materials 14,524 19,884 32,360 Subtotal 168,758 248,471 330,893 Tuition income from training programs 50,812 37,120 34,842 Education and management service fees 13,467 21,248 36,862 Others 7,004 1,876 1,965 240,041 308,715 404,562 Revenue from governments cooperative agreements 13,647 27,804 41,272 Revenues 253,688 336,519 445,834 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of applicable income tax rate | The applicable income tax rate of the Group’s affiliated schools for the years ended December 31, 2018, 2019 and 2020 are summarized as below: School name Note Applicable income tax rate Yunnan Hengshui Ch e (i) Income tax exemption Yunnan Hengshui Experimental Secondary School—Xishan School (i) Income tax exemption Yunnan Hengshui Yiliang Experimental Secondary School (i) Income tax exemption Qujing Hengshui Experimental Secondary School (i)(iv) Income tax exemption Yunnan Yuxi Hengshui Experimental High School (i) Income tax exemption Xinping Hengshui Experimental Middle School (i)(iv) Income tax exemption Resorts District Hengshui Experimental Secondary School (ii) Income tax exemption on certain income Yunnan Long-Spring Foreign Language Secondary School (ii) Income tax exemption on certain income Ordos Hengshui Experimental High School (iii) 25% Xinping Hengshui Experimental High School Co., Ltd. (iii)(iv) Preferential tax rate of small and micro enterprise Datong Gaokao Tutorial School (iii)(iv) Preferential tax rate of small and micro enterprise Guizhou Mingde Tutorial School (iii) Preferential tax rate of small and micro enterprise Yunnan Hengshui Zhenxiong High School (iii) Preferential tax rate of small and micro enterprise Yunnan Hengshui Wenshan Experimental High School (iii) Preferential tax rate of small and micro enterprise Xishuangbanna Hengshui Experimental High School (iii) Preferential tax rate of small and micro enterprise Yunnan Hengshui Qiubei Experimental High School (iii) Preferential tax rate of small and micro enterprise Yunnan Hengshui Experimental Secondary School—Mengla School (iii) Preferential tax rate of small and micro enterprise Notes: (i) As confirmed by the local tax authorities, these school are exempt from income taxes for the years ended December 31, 2018, 2019 and 2020, respectively. (ii) Resorts District Hengshui Experimental Secondary School and Yunnan Long-Spring Foreign Language Secondary School are entitled to a five-year enterprise income tax exemptions for certain revenue that meets relevant legal requirements from January 1, 2018 through December 31, 2022 and from January 1, 2019 through December 31, 2023 respectively, as determined by the local government authorities as non-profit (iii) As these schools have not received confirmations from the local tax authorities on income tax exemption, they are subject to the statutory income tax rate of 25% for the years ended December 31, 2018, 2019 and 2020, respectively. For the year ended December 31, 2020, the newly established schools are qualified as small and micro enterprises, the preferential tax rates of 5% or 10% are applied. (iv) Under 2016 Revised Private Education Law, Qujing Hengshui Experimental Secondary School and Xinping Hengshui Experimental Middle School have registered as non-profit |
Summary of (loss)/income before income taxes and the provision for PRC income taxes | The (loss)/income before income taxes and the provision for PRC income taxes for the years ended December 31, 2018, 2019 and 2020 are as follows: Years Ended December 31, 2018 2019 2020 (Loss)/income before income taxes (159,500 ) 37,060 96,324 Current income tax expense 16,088 8,453 21,501 Deferred tax benefits (5,902 ) (3,083 ) (6,097 ) Total income taxes expenses 10,186 5,370 15,404 |
Reconciliation of effective tax rate and statutory income tax rate applicable to PRC operations | The actual income tax expenses reported in the consolidated statements of comprehensive income/(loss) differs from the amount computed by applying the PRC statutory income tax rate of 25% to (loss)/income before income taxes due to the following: Years Ended December 31, Note 2018 2019 2020 (Loss)/income before income taxes (159,500 ) 37,060 96,324 Income tax computed at PRC statutory tax rate (39,875 ) 9,265 24,081 Effect of non-taxable (249 ) (2,444 ) (3,516 ) Effect of non-deductible 33,426 1,674 2,085 Effect of preferential tax rate 14,064 (4,019 ) (7,282 ) Deferred income tax liabilities for undistributed profits (i) (4,332 ) — — Withholding income tax accrued for declared dividends (i) 5,859 — — Changes of valuation allowances 1,293 523 (1,682 ) Late payment surcharge on uncertain tax position — 553 852 Others — (182 ) 866 10,186 5,370 15,404 Notes: (i): The Group has recognized deferred tax liability for the undistributed earnings of Yunnan WFOE and its subsidiaries of RMB4,332 as of December 31, 2017 and reversed the amounts in 2018 as the dividend was paid out. |
Summary of deferred tax assets and liabilities | The components of deferred tax assets and liabilities are as follows: As of December 31, 2019 2020 Deferred tax assets: Allowance for doubtful accounts 409 408 Deductible donation expenses carried forwards 2,641 2,646 Accrued expenses 2,621 4,250 Registration fees 2,826 3,351 Property and equipment 68 137 Net operating loss carry forwards 1,696 3,690 Total gross deferred tax assets 10,261 14,482 Valuation allowance on deferred tax assets (2,484 ) (802 ) Deferred tax assets, net of valuation allowance 7,777 13,680 Deferred tax liabilities: Property and equipment (1,200 ) (968 ) Intangible assets (11,918 ) (11,153 ) Government grants (415 ) (1,218 ) Total deferred tax liabilities (13,533 ) (13,339 ) Net deferred tax (liabilities)/assets (5,756 ) 341 Analysis as: Deferred tax assets 6,567 12,274 Deferred tax liabilities (12,323 ) (11,933 ) Net deferred tax (liabilities)/assets (5,756 ) 341 |
Summary of reconciliation of valuation allowance | The following table presents the movement of the valuation allowance for the deferred tax assets: 2018 2019 2020 Balance as of January 1, 668 1,961 2,484 Increase/(decrease) during the year 1,293 523 (1,682 ) Balance as of December 31, 1,961 2,484 802 |
Summary of net operating Losses Carry forwards | The net operating losses carry forwards of the Group’s PRC subsidiaries will expire in the following years: 2019 2020 2022 470 — 2023 1,453 442 2024 4,861 990 2025 — 13,328 6,784 14,760 |
Summary of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2019 2020 Balance as of January 1, 1,046 2,567 3,686 Additions on tax positions 1,521 1,119 4,271 Balance as of December 31, 2,567 3,686 7,957 |
(Loss)_Earnings Per Ordinary _2
(Loss)/Earnings Per Ordinary Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Income (Loss) Per Share | Years Ended December 31, 2018 2019 2020 Numerator Net (loss)/income a ttributable (169,686 ) 31,604 80,819 Denominator Weighted average number of ordinary shares – basic and diluted 67,914,968 70,488,700 70,488,700 Net (loss)/earnings per ordinary share – basic and diluted RMB(2.50 ) RMB0.45 RMB1.15 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Outstanding Capital Commitments | Capital commitments outstanding as of December 31, 2019 and 2020 not provided for in the consolidated financial statements were as follows: As of December 31, 2019 2020 Contracted for 2,109 50,143 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Parties | During years ended December 31, 2018, 2019 and 2020, the related parties of the Group are as follows: Name of party Relationship Long-Spring Education Group The Parent Zhang Shaowei (“Mr. Zhang”) Founder, Chairman and chief executive officer of the Company Wu Yu Mr. Zhang’s immediate family member Zhang Shaodong Mr. Zhang’s immediate family member Liu Kai Vice president of the Group Xu Ruzheng Vice president of the Group (From June 2011 to July 2019) Sang Haiyong Vice president of the Group Yunnan Long-Spring Education Technology Co., Ltd. (“Yunnan Long-Spring”) Entity controlled by Mr. Zhang* Suzhou Long-Spring Education Technology Co., Ltd. (“Suzhou Long-Spring”) Entity controlled by Mr. Zhang* Yunnan Huayiweiming Technology Co., Ltd. (“Yunnan HYWM”) Entity controlled by Mr. Zhang* Xi’an Long-Spring Education Technology Co., Ltd. (“Xi’an Long-Spring”) Entity controlled by Mr. Zhang* Shanghai Long-Spring Education Technology Co., Ltd. (“Shanghai Long-Spring”) Entity controlled by Mr. Zhang* Beijing Hengzhong Education Technology Co., Ltd. (“Beijing Hengzhong”) Entity controlled by Mr. Zhang* Kunming Chenggong Times Giant Tutorial Co., Ltd. (“Kunming Chenggong”) Entity controlled by Mr. Zhang* Yunnan Qidi Primary School (“Yunnan Qidi”) Entity controlled by Mr. Zhang* Yunnan Three Three One Education Technology Co., Ltd. (“Three Three One”) Entity controlled by Mr. Zhang* * These entities controlled by Mr. Zhang operate non-listing |
Summary of Major Transactions and Balances with Related Parties | (a) Major transactions with related parties In addition to the related party information disclosed elsewhere in the consolidated financial statements, the Group entered into the following material related party transactions. Years Ended December 31, Note 2018 2019 2020 Net advances to/(repayment from) — Mr. Zhang (i) 8,745 (3,307 ) 300 — Zhang Shaodong 3,200 6,551 (4,970 ) — Yunnan HYWM (i) (22,396 ) 204 — — Suzhou Long-Spring 31,000 (31,000 ) — — Yunnan Long-Spring 4,000 — (300 ) — Kunming Chenggong 2,500 1,568 1,200 — Xi’an Long-Spring (2,050 ) — — — Others (11 ) — — Total 24,988 (25,984 ) (3,770 ) Loans to/(repayment of loans from) — Liu Kai (iv) — 4,000 (3,500 ) — Xu Ruzheng (iv) — 4,000 — — Sang Haiyong (iv) — 1,600 — Total — 9,600 (3,500 ) Expenses paid on behalf — Mr Zhang 5,018 — — — Wu Yu 558 — — — The Parent — — 192 — Kunming Chenggong 866 — 216 — Yunnan Long-Spring 45 1,460 — Total 6,487 1,460 408 Disposal of subsidiaries — Kunming Chenggong (ii) 3,423 — — — Yunnan Long-Spring (ii) 742 — — Total 4,165 — — Net receipts on behalf of — The Parent (iii) 26,000 24,000 216 — Others 17 8 158 Total 26,017 24,008 374 Payments for advances from — Mr. Zhang — (18,038 ) (49 ) Borrowings from/(repayments of borrowings from) — The Parent (iii) 9,467 — (10,933 ) Notes: (i): Yunnan HYWM was an entity controlled by Mr. Zhang with no substantive operations since its incorporation. In 2017, the Group made advances of RMB34,355 to Mr. Zhang and his family member through transfer advances to Yunnan HYWM, of which RMB22,396 were collected in 2018. (ii): On August 26, 2018, the Group disposed 100% equity interest of Kunming Chengong to Yunnan Long-Spring for nil consideration as Kunming Chengong has not conducted any operation nor held any assets and is a shell company. No gain or loss was recognized as a result of the transaction for the year ended December 31, 2018. On September 15, 2018, the Group then transferred certain of its training program business to Kunming Chenggong for a consideration of RMB3,423, which was equal to the carrying amount of the net assets of the disposed training program business, pursuant to a business transfer agreement. No gain or loss was recognized as a result of the transaction for the year ended December 31, 2018. On October 30, 2018, the Group and Yunan Long-Spring entered into an equity transfer agreement through which the Group sold its 100% equity interests in Beijing Long-Spring Education Technology Co., Ltd. to Yunan Long-Spring for a consideration of RMB742 which was equal to the carrying amount of the net assets amount of the disposed company. No gain or loss was recognized as a result of the transaction for the year ended December 31, 2018. (b) Balances with related parties As of December 31, Note 2019 2020 Amounts due from related parties Current — Mr. Zhang (v) 37,474 72,908 — Zhang Shaodong (v) 9,751 351 — Wu Yu (v) 558 — — Yunnan HYWM (v) 13,503 — — The Parent (v) 5,400 5,592 — Kunming Chenggong (v) 8,357 13 — Yunnan Long-Spring (v) 7,182 — — Sang Haiyong (iv) — 1,600 Sub-total 82,225 80,464 Non-current — Liu Kai (iv) 4,000 500 — Sang Haiyong (iv) 1,600 — Sub-total 5,600 500 Total 87,825 80,964 Amounts due to related parties — Mr. Zhang 49 — — The Parent (iii)&(v) 113,198 218,313 — Others 112 683 Total 113,359 218,996 Notes: (iii): During the year ended December 31,2020, the Company (a) repaid the borrowings due to the Parent in full; (b) paid out the dividends of RMB42,300 with remaining balance of RMB10,434 unpaid; and (c) declared dividends of RMB157,663 (Note 18(c)). Therefore, the amounts due to the Parent as of December 31, 2020 mainly included (a) dividends payable of RMB168,097; and (b) receipt on behalf of the Parent of RMB50,000. The amounts due to the Parent as of December 31, 2019 mainly included (a) dividends payable of RMB52,734; (b) receipt on behalf of the Parent of RMB50,000; (c) Borrowings of RMB10,464. (iv): These loans to those group officers are interest-free for a period of two or three years. These amounts were secured by the Parent’s shares held by these individuals. Subsequent to the loan grant, Mr. Xu Ruzheng resigned from the Group and the amount of RMB3,500 and RMB500 owed by Mr. Xu Ruzheng to the Group were no longer classified as related party balances and were reclassified to prepaid expenses and other current assets and other non-current As of December 31, 2020, RMB3,500 due from ex-management Mr. Xu Ruzheng and RMB3,500 due from Liu Kai have been repaid. RMB1,600 due from Sang Haiyong and remaining RMB500 due from Liu Kai have been fully repaid in January 2021. (v): Pursuant to agreements entered into among Mr. Zhang and other related parties (representing the immediate family members of Mr. Zhang and the entities controlled by Mr. Zhang) on December 31, 2020, amount of RMB35,133 due from the immediate family members of Mr. Zhang and the entities controlled by Mr. Zhang were transferred to Mr. Zhang. Pursuant to a settlement |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Summary of shareholding before restructuring | Shareholders Class of share Number of Longwater * Ordinary shares with special rights* 2,276,769 Visionsky Group Limited ** (“Visionsky”, beneficially owned by Mr. Zhang) Ordinary shares 2,776,902 Brightenwit Group Limited ** (“Brightenwit”, beneficially owned by Wu Yu, Mr. Zhang’s spouse) Ordinary shares 449,251 BVI companies (beneficially owned by certain employees and non-employee Ordinary shares 1,545,948 Total 7,048,870 * Pursuant to the Parent’s shareholders’ agreement and memorandum and articles of association (“the Parent’s SA and M&A”), Longwater was provided with certain special rights, including but not limited to redemption and put option rights, right of first refusal and co-sale ** Visionsky and Brightenwit are collectively referred to as “Founders Holdcos”. |
Summary of shareholding after corporate restructuring | As a result of the Corporate Restructuring, the Company’s shares are held directly by the shareholders of the Parent and the shareholding structure of the Company immediately after the Corporate Restructuring was as follows: Shareholders Class of share Number of shares Longwater Redeemable ordinary shares 22,767,690 Visionsky Ordinary shares 27,769,020 Brightenwit Ordinary shares 4,492,510 BVI companies Ordinary shares 15,459,480 Total 70,488,700 |
Condensed Financial Statement_2
Condensed Financial Statements of the Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Statements [Abstract] | |
Schedule Of Condensed Balance Sheets | Condensed Balance Sheets As of December 31, 2019 2020 Assets Non-current Investments in subsidiaries and VIEs 66,899 97,253 Total non-current 66,899 97,253 Liabilities and Shareholders’ Equity / (Deficit) Current liabilities Amounts due to a related party — 157,663 Bank loan — 46,637 Total current liabilities and total liabilities — 204,300 Shareholders’ equity / (deficit) Ordinary shares (US$0.00001 par value; 5,000,000,000 shares authorized; and 70,488,700 shares issued and outstanding as of December 31, 2019 and 2020, respectively) — — Additional paid-in 221,791 64,128 Accumulated other comprehensive loss (3,223 ) (11,242 ) Accumulated deficits (151,669 ) (159,933 ) Total shareholders’ equity / (deficit) 66,899 (107,047 ) Total liabilities and shareholders’ equity / (deficit) 66,899 97,253 |
Schedule Of Condensed Statements Of Comprehensive Income Or Loss | Condensed Statements of Comprehensive Income/ (Loss) Years Ended December 31, 2018 2019 2020 Share of (loss) / income from subsidiaries and VIEs (169,686 ) 31,604 80,819 Net (loss)/income before income taxes (169,686 ) 31,604 80,819 Income tax expense — — — Net (loss) / income (169,686 ) 31,604 80,819 Other comprehensive ( )/income (1,927 ) 1,929 (8,019 ) Comprehensive (loss)/ income (171,613 ) 33,533 72,800 |
Schedule Of Condensed Statements Of Cash Flows | Condensed Statements of Cash Flows Years Ended December 31, 2018 2019 2020 Net cash generated from operating activities — — — Net cash generated from investing activities — — — Net cash generated from financing activities — — — Net increase in cash — — — |
Organization and Principal Ac_3
Organization and Principal Activities - Summary Of Company's Subsidiaries and Consolidated VIEs (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
First High-School Education Group (BVI) Limited ("First High-School BVI") | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | BVI |
Date of establishment, Subsidiaries | Sep. 20, 2018 |
Equity interest attributable to the Group | 100.00% |
Principal activities,Subsidiaries | Investment holding |
First High-School Group Hong Kong Limited ("First High-School HK") | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | Hong Kong |
Date of establishment, Subsidiaries | Sep. 28, 2016 |
Equity interest attributable to the Group | 100.00% |
Principal activities,Subsidiaries | Investment holding |
Yunnan Century Long-Spring Education Technology Co., Ltd. ("Yunnan WFOE") | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, Subsidiaries | Oct. 31, 2016 |
Equity interest attributable to the Group | 100.00% |
Principal activities,Subsidiaries | Management consulting service |
Beijing Hengzhong Education Consulting Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, Subsidiaries | Dec. 5, 2016 |
Equity interest attributable to the Group | 100.00% |
Principal activities,Subsidiaries | Complementary education services |
Yunnan Long-Spring Logistics Service Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, Subsidiaries | Sep. 16, 2015 |
Equity interest attributable to the Group | 100.00% |
Principal activities,Subsidiaries | Education and management service |
Long-Spring Education Holding Group Limited | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Sep. 20, 2011 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Management service |
Yunnan Zhongchuang Education Tutorial Academy | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Aug. 28, 2012 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Tutorial services |
Resorts District Hengshui Experimental Secondary School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Apr. 4, 2014 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Yunnan Hengshui Chenggong Experimental Secondary School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 23, 2015 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Yunnan Hengshui Experimental Secondary School—Xishan School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 1, 2016 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Yunnan Hengshui Yiliang Experimental Secondary School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 11, 2016 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Yunnan Long-Spring Foreign Language Secondary School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Apr. 18, 2017 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Ordos Hengyue Education Technology Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 8, 2017 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Investment holding |
Beijing Hengyue Education Technology Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 11, 2017 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Management service |
Qujing Hengshui Experimental Secondary School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 18, 2017 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Yunnan Yuxi Hengshui Experimental High School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Aug. 3, 2017 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Ordos Hengshui Experimental High School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Aug. 4, 2017 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Kunming Guandu Hengshizhong Education Tutorial School Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jan. 10, 2019 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Tutorial services |
Xinping Hengshui Experimental High School Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 5, 2019 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Xinping Hengshui Experimental Middle School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jun. 14, 2019 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Shanxi Long-Spring Enterprise Management Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jun. 20, 2019 |
Percentage of direct and indirect economic interest | 56.00% |
Principal activities,VIEs | Investment holding |
Datong Hengshi Gaokao Tutorial School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jun. 20, 2019 |
Percentage of direct and indirect economic interest | 56.00% |
Principal activities,VIEs | Tutorial services |
Yunnan Bainian Long-Spring Technology Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | May 11, 2020 |
Percentage of direct and indirect economic interest | 56.00% |
Principal activities,VIEs | Management consulting service |
Guizhou Long-Spring Century Technology Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jun. 17, 2020 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Management consulting service |
Guizhou Hengshizhong Technology Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 1, 2020 |
Percentage of direct and indirect economic interest | 56.00% |
Principal activities,VIEs | Management consulting service |
Zhenxiong Bainian Long-Spring Technology Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 2, 2020 |
Percentage of direct and indirect economic interest | 56.00% |
Principal activities,VIEs | Management consulting service |
Xishuangbanna Hengshui Experimental High School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 20, 2020 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Yunnan Hengshui Qiubei Experimental High School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Jul. 21, 2020 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Yunnan Hengshui Wenshan Experimental High School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Aug. 3, 2020 |
Percentage of direct and indirect economic interest | 56.00% |
Principal activities,VIEs | Formal education services |
Guizhou Mingde Tutorial School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Sep. 1, 2020 |
Percentage of direct and indirect economic interest | 56.00% |
Principal activities,VIEs | Tutorial services |
Yunnan Hengshui Zhenxiong High School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Sep. 1, 2020 |
Percentage of direct and indirect economic interest | 56.00% |
Principal activities,VIEs | Formal education services |
Yunnan Hengshui Experimental Secondary School—Mengla School | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Sep. 4, 2020 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Formal education services |
Long-Spring Education Group (Yunnan) Hengshui Experimental School Management Co., Ltd. | |
Schedule Of Variable Interest Entities And Subsidiaries [Line Items] | |
Place of establishment | The PRC |
Date of establishment, VIEs | Dec. 24, 2020 |
Percentage of direct and indirect economic interest | 100.00% |
Principal activities,VIEs | Management consulting service |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Asset and Liabilities of the VIEs (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | |||
Cash | ¥ 148,756 | ¥ 153,418 | |
Accounts receivable, net of allowance for doubtful accounts | 30,903 | 7,687 | |
Amounts due from related parties | 80,464 | 82,225 | |
Prepaid expenses and other current assets | 53,450 | 21,803 | |
Total current assets | 373,173 | 265,133 | |
Property and equipment, net | 142,407 | 136,431 | |
Intangible assets, net | 48,976 | 50,705 | |
Goodwill | 40,218 | 40,218 | ¥ 40,218 |
Deferred tax assets | 12,274 | 6,567 | |
Other non-current assets | 18,524 | 10,707 | |
Total assets | 636,072 | 515,361 | |
Current liabilities | |||
Contract liabilities | 203,482 | 171,303 | |
Deferred revenue from governments | 13,770 | 17,789 | |
Borrowings under financing arrangements | 64,140 | 14,577 | |
Accounts payable | 8,064 | 11,207 | |
Accrued expenses and other payables | 91,253 | 77,591 | |
Income tax payables | 15,377 | 6,055 | |
Amounts due to related parties | 218,996 | 113,359 | |
Total current liabilities | 661,719 | 411,881 | |
Contract liabilities | 7,274 | 5,778 | |
Deferred revenue from governments | 12,370 | 4,032 | |
Borrowings under financing arrangements | 28,643 | 7,453 | |
Deferred tax liabilities | 11,933 | 12,323 | |
Total liabilities | 731,546 | 445,153 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Current assets | |||
Cash | 138,375 | 130,785 | |
Accounts receivable, net of allowance for doubtful accounts | 20,407 | 7,674 | |
Amounts due from related parties | 238,621 | 129,639 | |
Prepaid expenses and other current assets | 30,959 | 12,732 | |
Total current assets | 428,362 | 280,830 | |
Property and equipment, net | 59,771 | 53,194 | |
Intangible assets, net | 44,858 | 47,932 | |
Goodwill | 40,218 | 40,218 | |
Deferred tax assets | 7,371 | 2,911 | |
Other non-current assets | 16,252 | 4,438 | |
Total assets | 596,832 | 429,523 | |
Current liabilities | |||
Contract liabilities | 203,248 | 169,151 | |
Deferred revenue from governments | 13,770 | 17,789 | |
Borrowings under financing arrangements | 64,140 | 14,577 | |
Accounts payable | 3,655 | 4,331 | |
Accrued expenses and other payables | 68,078 | 67,167 | |
Income tax payables | 5,763 | 2,854 | |
Amounts due to related parties | 72,648 | 54,056 | |
Total current liabilities | 431,302 | 329,925 | |
Contract liabilities | 7,274 | 3,790 | |
Deferred revenue from governments | 12,370 | 4,032 | |
Borrowings under financing arrangements | 28,643 | 7,453 | |
Other payables | 6,276 | 2,760 | |
Deferred tax liabilities | 11,933 | 12,323 | |
Total liabilities | ¥ 497,798 | ¥ 360,283 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Consolidated Statements of Comprehensive Income for Variable Interest Entity (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Subsidiary or Equity Method Investee [Line Items] | |||
Net revenues | ¥ 445,834 | ¥ 336,519 | ¥ 253,688 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Net revenues | 392,860 | 308,884 | 224,492 |
Net income | ¥ 29,416 | ¥ 16,539 | ¥ 8,160 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Cash Flows of Variable Interest Entities (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Subsidiary or Equity Method Investee [Line Items] | |||
Net cash generated from operating activities | ¥ 122,472 | ¥ 101,686 | ¥ 90,663 |
Net cash (used in)/generated from investing activities | (30,859) | (21,474) | (125,100) |
Net cash generated from financing activities | (36,675) | 14,642 | 34,753 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Net cash generated from operating activities | 95,914 | 139,444 | 96,270 |
Net cash (used in)/generated from investing activities | (32,286) | 30,548 | (89,927) |
Net cash generated from financing activities | ¥ 68,011 | ¥ 28,202 | ¥ 25,269 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Cash and Cash Equivalents (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||
Cash | ¥ 148,756 | ¥ 153,418 |
Restricted cash | 59,600 | |
Total cash and restricted cash | ¥ 208,356 | ¥ 153,418 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 20 years |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 18 years |
Leasehold improvement [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | Shorter of the lease term and the estimated useful lives of the assets |
Furniture and office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Furniture and office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 6 years |
Electronic Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Electronic Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 4 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Other Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Software and Software Development Costs [Member] | Maximum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Software and Software Development Costs [Member] | Minimum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Government Cooperative Agreements [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 17 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Expenses from transactions with related party management fees | ¥ 408 | ¥ 1,460 | ¥ 6,487 |
Impairment losses on goodwill | 0 | 0 | 0 |
Impairment of long lived assets | 0 | 0 | 0 |
Selling and marketing expenses | 7,625 | 4,834 | 5,470 |
Cash and Cash equivalents | ¥ 148,756 | ¥ 153,418 | |
Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of contribution defined contribution plan | 37.00% | 37.00% | |
Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of contribution defined contribution plan | 31.00% | 31.00% | |
Capital Lease Obligations [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Lease term as a percentage of properties remaining estimated economic useful lives | 75.00% | ||
Present value of lease payments as a percentage of fair value of leased property | 90.00% | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Business Acquisition [Line Items] | |||
Cash and Cash equivalents | ¥ 138,375 | ¥ 130,785 | |
Management Fees [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Business Acquisition [Line Items] | |||
Expenses from transactions with related party management fees | ¥ 75,802 | ¥ 47,056 | ¥ 32,515 |
Contract Balances - Summary Of
Contract Balances - Summary Of Reconciliation of Accounts Receivable (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable | ¥ 30,903 | ¥ 7,687 |
Less: allowance for doubtful accounts | 0 | 0 |
Accounts receivable, net | 30,903 | 7,687 |
Government Cooperative Arrangements [Member] | ||
Accounts receivable | 15,983 | 2,772 |
Other Customers [Member] | ||
Accounts receivable | ¥ 14,920 | ¥ 4,915 |
Contract Balances - Aging Analy
Contract Balances - Aging Analysis of Accounts Receivable (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable gross | ¥ 30,903 | ¥ 7,687 |
Less: allowance for doubtful accounts | 0 | 0 |
Accounts receivable, net | 30,903 | 7,687 |
Within 90 days (inclusive) | ||
Accounts receivable gross | 12,580 | 7,687 |
Over 90 days but within 1 year (inclusive) | ||
Accounts receivable gross | ¥ 18,323 | ¥ 0 |
Contract Balances - Summary o_2
Contract Balances - Summary of Contract Liabilities (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |||
Current liabilities | ¥ 203,482 | ¥ 171,303 | |
Non-current liabilities | 7,274 | 5,778 | |
Contract liabilities | ¥ 210,756 | ¥ 177,081 | ¥ 134,400 |
Contract Balances - Summary o_3
Contract Balances - Summary of Movements in Contract Liabilities (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Contract with Customer, Liability [Abstract] | ||
Balance as of January 1, | ¥ 177,081 | ¥ 134,400 |
Increase in contract liabilities as a result of receiving advances | 399,410 | 328,329 |
Decrease in contract liabilities as a result of recognition of revenues during the year | (365,735) | (285,648) |
Balance as of December 31, | ¥ 210,756 | ¥ 177,081 |
Contract Balances - Summary O_4
Contract Balances - Summary Of Deferred Revenue Under Government Cooperative Arrangements (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Revenue [Abstract] | |||
Current liabilities | ¥ 13,770 | ¥ 17,789 | |
Non-current liabilities | 12,370 | 4,032 | |
Deferred revenue from governments | ¥ 26,140 | ¥ 21,821 | ¥ 14,999 |
Contract Balances - Summary o_5
Contract Balances - Summary of Reconciliation pf Deferred Revenue (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Revenue [Abstract] | ||
Balance as of January 1, | ¥ 21,821 | ¥ 14,999 |
Addition during the year | 32,380 | 31,854 |
Recognized in revenue during the year | (28,061) | (25,032) |
Balance as of December 31, | ¥ 26,140 | ¥ 21,821 |
Contract Balances - Additional
Contract Balances - Additional Information (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |
Deferred Revenue Revenue Recognized For Future Periods | ¥ 210,756 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expenses and Other Current Assets [Line Items] | ||
Advances to third parties | ¥ 2,000 | ¥ 2,000 |
VAT recoverable | 2,962 | 5,057 |
Advances to employees | 1,448 | 1,422 |
Loans to employees | 550 | 0 |
Loans to third parties | 7,080 | 0 |
Deferred offering expense | 13,207 | 1,150 |
Other deferred expenses | 4,341 | 2,880 |
Prepaid rental fees | 3,206 | 5,859 |
Prepayments for goods and services | 2,415 | 1,815 |
Low-value consumables | 1,469 | 1,393 |
Others | 2,602 | 1,301 |
Prepaid Expense, Current | 55,984 | 24,337 |
Less: allowance for doubtful accounts | (2,534) | (2,534) |
Prepaid expenses and other current assets | 53,450 | 21,803 |
School Deposits [Member] | ||
Prepaid Expenses and Other Current Assets [Line Items] | ||
Deposits | 8,000 | 0 |
Deposits for financing arrangements [Member] | ||
Prepaid Expenses and Other Current Assets [Line Items] | ||
Deposits | 4,064 | 0 |
Other Deposits [Member] | ||
Prepaid Expenses and Other Current Assets [Line Items] | ||
Deposits | ¥ 2,640 | ¥ 1,460 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Parenthetical) (Detail) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Prepaid Expenses And Other Current Assets [Abstract] | |
Interest free loans to third parties receivables current | ¥ 7,080 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment | ||
Property plant and equipment, gross | ¥ 184,810 | ¥ 163,028 |
Less: accumulated depreciation | (42,403) | (26,597) |
Property and equipment, net | 142,407 | 136,431 |
Buildings [Member] | ||
Property, Plant and Equipment | ||
Property plant and equipment, gross | 94,004 | 93,231 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment | ||
Property plant and equipment, gross | 44,379 | 34,560 |
Furniture and office equipment [Member] | ||
Property, Plant and Equipment | ||
Property plant and equipment, gross | 15,371 | 11,982 |
Electronic equipment [Member] | ||
Property, Plant and Equipment | ||
Property plant and equipment, gross | 23,695 | 20,472 |
Vehicles [Member] | ||
Property, Plant and Equipment | ||
Property plant and equipment, gross | 4,150 | ¥ 2,783 |
Construction in Progress [Member] | ||
Property, Plant and Equipment | ||
Property plant and equipment, gross | ¥ 3,211 |
Property and Equipment, Net -_2
Property and Equipment, Net - Summary of Depreciation of Property and Equipment (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Depreciation of Property Plant And Equipment [Line Items] | |||
Depreciation | ¥ 15,873 | ¥ 10,925 | ¥ 7,194 |
Cost of Sales [Member] | |||
Schedule Of Depreciation of Property Plant And Equipment [Line Items] | |||
Depreciation | 10,788 | 7,449 | 3,629 |
General and Administrative Expense [Member] | |||
Schedule Of Depreciation of Property Plant And Equipment [Line Items] | |||
Depreciation | ¥ 5,085 | ¥ 3,476 | ¥ 3,565 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | ¥ 15,873 | ¥ 10,925 | ¥ 7,194 |
Equipment pledged | ¥ 19,086 | ¥ 22,221 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible Assets useful life | 17 years | ||
Amortization expenses | ¥ 3,364 | ¥ 3,285 | ¥ 1,363 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Intangible Assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | ¥ 57,026 | ¥ 55,391 |
Less: accumulated amortization | (8,050) | (4,686) |
Total | 48,976 | 50,705 |
Systems software [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 5,026 | 3,391 |
Government cooperative agreements [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | ¥ 52,000 | ¥ 52,000 |
Intangible Assets, Net - Summ_2
Intangible Assets, Net - Summary of Estimated Amortization Expenses for Intangible Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2021 | ¥ 3,420 | |
2022 | 3,420 | |
2023 | 3,420 | |
2024 | 3,420 | |
2024 | 3,420 | |
Thereafter | 31,876 | |
Total | ¥ 48,976 | ¥ 50,705 |
Business Combination and Good_3
Business Combination and Goodwill - Summary Of Movement Of Goodwill (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Business Combinations [Abstract] | |
Addition during the year | ¥ 40,218 |
Balance as of December 31, | ¥ 40,218 |
Business Combination and Good_4
Business Combination and Goodwill - Summary of Contigent Consideration Payables (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 13, 2018 |
Business Acquisition, Contingent Consideration [Line Items] | |||
Contingent consideration payables | ¥ 18,862 | ¥ 19,309 | |
Beijing Hengyue Acquisition [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Contingent consideration payables | 18,862 | 19,309 | ¥ 39,375 |
Beijing Hengyue Acquisition [Member] | Prepaid Expenses and Other Current Assets [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Contingent consideration payables | ¥ 18,862 | ¥ 19,309 |
Business Combination and Good_5
Business Combination and Goodwill - Summary Of Identifiable Assets And Liabilities Assumed At Fair Value In Business Combination (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Fair value of consideration | ¥ 76,496 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Cash | 17,776 | ||
Property and equipment | 166 | ||
Intangible assets | 52,047 | ||
Other assets | 326 | ||
Accounts payable | (1,355) | ||
Contract liabilities | (6,341) | ||
Deferred tax liabilities | (13,496) | ||
Deferred revenue from governments | (6,100) | ||
Other liabilities | (6,745) | ||
Total identifiable net assets at fair values | 36,278 | ||
Goodwill | ¥ 40,218 | ¥ 40,218 | ¥ 40,218 |
Business Combination and Good_6
Business Combination and Goodwill - Summary Of Identifiable Assets And Liabilities Assumed At Fair Value In Business Combination (Parenthetical) (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 17 years |
Government Cooperative Agreements [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets acquired | ¥ 52,000 |
Estimated useful life | 17 years |
Business Combination and Good_7
Business Combination and Goodwill - Additional Information (Detail) - CNY (¥) ¥ in Thousands | Jul. 13, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill impairment loss | ¥ 0 | ¥ 0 | ¥ 0 | |
Contingent consideration payables | 18,862 | 19,309 | ||
Net income | 80,819 | 31,604 | ¥ (169,686) | |
Beijing Hengyue Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration paid in cash | ¥ 39,375 | |||
Contingent consideration payables | 39,375 | 18,862 | ¥ 19,309 | |
Change in fair value gain | 37,121 | |||
Revenues | 11,986 | |||
Net income | ¥ 2,042 | |||
Proforma Revenue | 268,922 | |||
Proforma net loss | ¥ 169,433 |
Other Non-Current Assets - Summ
Other Non-Current Assets - Summary of other non-current assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets, Noncurrent [Abstract] | ||
Loans to an ex-management | ¥ 500 | ¥ 4,000 |
Loans to employees | 2,550 | 2,900 |
Deposits for financing arrangements | 1,700 | 2,864 |
School deposits | 12,000 | |
Rental deposits | 1,150 | |
Others | 624 | 943 |
Other non-current assets | ¥ 18,524 | ¥ 10,707 |
Other Non-Current Assets - Su_2
Other Non-Current Assets - Summary of other non-current assets (Parenthetical) (Detail) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Other Non Current Assets [Line Items] | |
School deposits | ¥ 12,000 |
TW | |
Other Non Current Assets [Line Items] | |
School deposits | 20,000 |
School deposits non current | 12,000 |
School deposits current | ¥ 8,000 |
Borrowings Under Financing Ar_3
Borrowings Under Financing Arrangements - Summary of Group's Borrowings Under Financing Arrangements (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Subordinated Borrowings [Abstract] | ||
Current portion | ¥ 64,140 | ¥ 14,577 |
Non-current portion | 28,643 | 7,453 |
Line of credit | ¥ 92,783 | ¥ 22,030 |
Borrowings Under Financing Ar_4
Borrowings Under Financing Arrangements - Additional Information (Detail) ¥ in Thousands | Aug. 14, 2020CNY (¥)Installments | Apr. 09, 2019CNY (¥)Installments | Apr. 09, 2019CNY (¥) | Dec. 31, 2020CNY (¥) |
Far Eastern International Leasing Co Ltd [Member] | ||||
Sale Leaseback Transaction [Line Items] | ||||
Sale and lease back contracts consideration | ¥ 33,800 | |||
Debt instrument, interest rate, effective percentage | 13.00% | 13.00% | ||
Number of installments | Installments | 8 | |||
Haier Financial Leasing Co Ltd [Member] | ||||
Sale Leaseback Transaction [Line Items] | ||||
Sale and lease back contracts consideration | ¥ 100,000 | |||
Debt instrument, interest rate, effective percentage | 10.60% | |||
Loan deposits | ¥ 2,900 | |||
Number of installments | Installments | 18 | |||
Loan deposits current | 1,200 | |||
Loan deposits non current | 1,700 | |||
Liability [Member] | Far Eastern International Leasing Co Ltd [Member] | ||||
Sale Leaseback Transaction [Line Items] | ||||
Cash | ¥ 31,600 | ¥ 31,600 | ||
Liability [Member] | Haier Financial Leasing Co Ltd [Member] | ||||
Sale Leaseback Transaction [Line Items] | ||||
Cash | ¥ 96,360 | |||
Prepaid Expenses and Other Current Assets [Member] | Far Eastern International Leasing Co Ltd [Member] | ||||
Sale Leaseback Transaction [Line Items] | ||||
Loan deposits | ¥ 2,864 |
Bank Loan - Additional Informat
Bank Loan - Additional Information (Detail) - China Minsheng Banking Corp Ltd [member] - Term Loan [member] ¥ in Thousands | Dec. 20, 2020CNY (¥) |
Line of credit facility, maximum borrowing capacity | ¥ 50,000 |
Term deposit used as collateral | ¥ 59,600 |
Line of credit facility, initiation date | Dec. 20, 2020 |
London Interbank Offered Rate (LIBOR) [Member] | |
Term loan agreement variable interest rate basis | London InterBank Offered Rate (“LIBOR”) plus 4.3% |
Term loan agreement spread on variable interest rate basis | 4.30% |
Accrued Expenses And Other Pa_3
Accrued Expenses And Other Payables - Schedule Of Accrued Expenses And Other Payables (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued payroll and welfare benefits | ¥ 31,553 | ¥ 30,054 |
Contingent consideration payables for a business combination | 18,862 | 19,309 |
Government subsidies received on behalf of certain teachers and students | 2,511 | 5,781 |
Other tax payables | 15,613 | 11,614 |
Deposits received | 18,278 | 6,396 |
Accrued service fees | 4,263 | 1,040 |
Accrued utilities fees | 1,245 | 1,094 |
Others | 8,535 | 5,989 |
Accrued expenses and other payables | 100,860 | 81,277 |
- Current portion | 91,253 | 77,591 |
- Non-current portion | ¥ 9,607 | ¥ 3,686 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Operating Lease Payments (Detail) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2021 | ¥ 6,746 |
2022 | 6,860 |
2023 | 6,376 |
2024 | 5,600 |
2025 | 5,600 |
Thereafter | 44,500 |
Total | ¥ 75,682 |
Leases - Additional Information
Leases - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Rental expenses | ¥ 14,825 | ¥ 12,958 | ¥ 16,388 |
Share Capital - Additional Info
Share Capital - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2021 | Aug. 26, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 19, 2018 | Sep. 09, 2018 |
Share Capital [Line Items] | |||||||
Common stock, authorized capital amount | $ 50 | ||||||
Common stock, shares authorized | 50,000 | 5,000,000,000 | 5,000,000,000 | 50,000 | |||
Common stock, par value per share | $ 0.00001 | $ 0.00001 | $ 1 | ||||
Common stock, shares issued | 1 | 70,488,700 | 70,488,700 | 1 | |||
Common stock, shares outstanding | 70,488,700 | 70,488,700 | 1 | 1 | |||
Basis of share subdivision | 100,000-for-1 | ||||||
Common stock shares authorized revised | 5,000,000,000 | ||||||
Common stock , shares issued revised | 100,000 | ||||||
Subsequent Event [Member] | |||||||
Share Capital [Line Items] | |||||||
Ordinary shares issued | 70,488,700 | ||||||
Common stock shares issued surrendered | 100,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary Of Assumptions Used For Fair Values Of The Restricted Shares Estimated On The Grant Date (Detail) - Restricted Stock Units (RSUs) [Member] - ¥ / shares | Dec. 03, 2018 | Dec. 31, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Weight average cost of capital ("WACC") | 15.00% | |
Fair value of each restricted share | ¥ 13.80 | |
Measurement Input, Discount for Lack of Marketability [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount for lack of marketability ("DLOM") | 12.00% | 12.00% |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary Of Assumptions Used For Fair Values Of The Restricted Shares Estimated On The Grant Date (Parenthetical) (Detail) | Dec. 03, 2018 | Dec. 31, 2020 |
Measurement Input, Discount for Lack of Marketability [Member] | Restricted Stock Units (RSUs) [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount for lack of marketability ("DLOM") | 12.00% | 12.00% |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - Restricted Stock Units (RSUs) [Member] ¥ / shares in Units, ¥ in Thousands | 12 Months Ended |
Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Directors Officers And Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based payment arrangement, lower share price | ¥ 0 |
Share based payment arrangement, upper share price | ¥ 7 |
Share based payment arrangement, shares issued | shares | 11,955,490 |
Share based payment arrangement, shares granted value | ¥ | ¥ 27,149 |
Share based compensation expenses | ¥ | ¥ 172,919 |
Non Employee Consultants [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based payment arrangement, shares issued | shares | 713,100 |
Share based compensation expenses | ¥ | ¥ 4,845 |
Share based payment arrangment, shares issued price | ¥ 7 |
Parent [Member] | Directors Officers And Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based payment arrangement, shares granted | shares | 2,790,880 |
Share based payment arrangement, lower share price | ¥ 7 |
Share based payment arrangement, upper share price | ¥ 10 |
Parent [Member] | Non Employee Consultants [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based payment arrangement, shares granted | shares | 4,990 |
Share based payment arrangment, shares issued price | ¥ 10 |
Revenues - Summary of disaggreg
Revenues - Summary of disaggregation of revenue (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | ¥ 404,562 | ¥ 308,715 | ¥ 240,041 |
Revenues | 445,834 | 336,519 | 253,688 |
Education Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 278,089 | 212,551 | 143,127 |
Boarding | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 20,444 | 16,036 | 11,107 |
Sale of Educational Materials | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 32,360 | 19,884 | 14,524 |
Total Formal Education Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 330,893 | 248,471 | 168,758 |
Tuition income from training programs | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 34,842 | 37,120 | 50,812 |
Education and management service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 36,862 | 21,248 | 13,467 |
Other Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,965 | 1,876 | 7,004 |
Revenue from Customer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 404,562 | 308,715 | 240,041 |
Revenue from governments cooperative agreements | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | ¥ 41,272 | ¥ 27,804 | ¥ 13,647 |
Donation - Additional inforamti
Donation - Additional inforamtion (Details) - University Fund - Donation Agreement - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Donation [Line Items] | |||
Cash Donation | ¥ 10,000 | ¥ 10,000 | |
Research on Fundamental Education Program | |||
Donation [Line Items] | |||
Payments for Donations | ¥ 10,000 |
Income Tax - Summary of applica
Income Tax - Summary of applicable income tax rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Yunnan Hengshui Chenggong Experimental Secondary School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Income tax exemption | Income tax exemption | Income tax exemption |
Yunnan Hengshui Experimental Secondary School—Xishan School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Income tax exemption | Income tax exemption | Income tax exemption |
Yunnan Hengshui Yiliang Experimental Secondary School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Income tax exemption | Income tax exemption | Income tax exemption |
Qujing Hengshui Experimental Secondary School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Income tax exemption | Income tax exemption | Income tax exemption |
Yunnan Yuxi Hengshui Experimental High School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Income tax exemption | Income tax exemption | Income tax exemption |
Xinping Hengshui Experimental Middle School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Income tax exemption | Income tax exemption | Income tax exemption |
Resorts District Hengshui Experimental Secondary School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Income tax exemption on certain income | Income tax exemption on certain income | Income tax exemption on certain income |
Yunnan Long-Spring Foreign Language Secondary School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Income tax exemption on certain income | Income tax exemption on certain income | Income tax exemption on certain income |
Ordos Hengshui Experimental High School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | 25 | 25 | 25 |
Xinping Hengshui Experimental High School Co., Ltd. | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise |
Datong Gaokao Tutorial School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise |
Guizhou Mingde Tutorial School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise |
Yunnan Hengshui Zhenxiong High School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise |
Yunnan Hengshui Wenshan Experimental High School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise |
Xishuangbanna Hengshui Experimental High School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise |
Yunnan Hengshui Qiubei Experimental High School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise |
Yunnan Hengshui Experimental Secondary School—Mengla School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Description of applicable income tax rate | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise | Preferential tax rate of small and micro enterprise |
Income Tax - Summary of appli_2
Income Tax - Summary of applicable income tax rate (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Enterprise Income Tax Act [Member] | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Income tax witholding rate | 10.00% | 10.00% | 10.00% |
Prc Tax Authority [Member] | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Statutory tax rate | 25.00% | 25.00% | 25.00% |
CN | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Statutory tax rate | 25.00% | 25.00% | 25.00% |
Ordos Hengshui Experimental High School [Member] | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Statutory tax rate | 25.00% | 25.00% | 25.00% |
Xinping Hengshui Experimental High School Co Ltd | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Preferential income tax rate percentage | 5.00% | ||
Datong Gaokao Tutorial School [Member] | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Preferential income tax rate percentage | 5.00% | ||
Guizhou Mingde Tutorial School [Member] | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Preferential income tax rate percentage | 5.00% | ||
Yunnan Hengshui Zhenxiong High School [Member] | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Preferential income tax rate percentage | 5.00% | ||
Yunnan Hengshui Wenshan Experimental High School [Member] | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Preferential income tax rate percentage | 10.00% | ||
Xishuangbanna Hengshui Experimental High School [Member] | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Preferential income tax rate percentage | 10.00% | ||
Yunnan Hengshui Qiubei Experimental High School [Member] | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Preferential income tax rate percentage | 10.00% | ||
Yunnan Hengshui Experimental Secondary School Mengla School | |||
Disclosure Of Applicable Income Tax Rate [Line Items] | |||
Preferential income tax rate percentage | 10.00% |
Income Tax - Summary of (loss)_
Income Tax - Summary of (loss)/income before income taxes and the provision for PRC income taxes (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
(Loss)/income before income taxes | ¥ 96,324 | ¥ 37,060 | ¥ (159,500) |
Current income tax expense | 21,501 | 8,453 | 16,088 |
Deferred tax benefits | (6,097) | (3,083) | (5,902) |
Total income taxes expenses | ¥ 15,404 | ¥ 5,370 | ¥ 10,186 |
Income Tax - Reconciliation of
Income Tax - Reconciliation of effective tax rate and statutory income tax rate applicable to PRC operations (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
(Loss)/income before income taxes | ¥ 96,324 | ¥ 37,060 | ¥ (159,500) | |
Income tax computed at PRC statutory tax rate | 24,081 | 9,265 | (39,875) | |
Effect of non-taxable income | (3,516) | (2,444) | (249) | |
Effect of non-deductible expenses | 2,085 | 1,674 | 33,426 | |
Effect of preferential tax rate | (7,282) | (4,019) | 14,064 | |
Deferred income tax liabilities for undistributed profits | (4,332) | ¥ 4,332 | ||
Withholding income tax accrued for declared dividends | 5,859 | |||
Changes of valuation allowances | (1,682) | 523 | 1,293 | |
Late payment surcharge on uncertain tax position | 852 | 553 | ||
Others | 866 | (182) | ||
Income Tax Expense (Benefit) | ¥ 15,404 | ¥ 5,370 | ¥ 10,186 |
Income Tax - Reconciliation o_2
Income Tax - Reconciliation of effective tax rate and statutory income tax rate applicable to PRC operations (Parenthetical) (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Deferred income tax liabilities for undistributed profits | ¥ (4,332) | ¥ 4,332 |
Income Tax - Summary of deferre
Income Tax - Summary of deferred tax assets and liabilities (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||||
Allowance for doubtful accounts | ¥ 408 | ¥ 409 | ||
Deductible donation expenses carried forwards | 2,646 | 2,641 | ||
Accrued expenses | 4,250 | 2,621 | ||
Registration fees | 3,351 | 2,826 | ||
Property and equipment | 137 | 68 | ||
Net operating loss carry forwards | 3,690 | 1,696 | ||
Total gross deferred tax assets | 14,482 | 10,261 | ||
Valuation allowance on deferred tax assets | (802) | (2,484) | ¥ (1,961) | ¥ (668) |
Deferred tax assets, net of valuation allowance | 13,680 | 7,777 | ||
Deferred tax liabilities: | ||||
Property and equipment | (968) | (1,200) | ||
Intangible assets | (11,153) | (11,918) | ||
Government grants | (1,218) | (415) | ||
Total deferred tax liabilities | (13,339) | (13,533) | ||
Net deferred tax (liabilities)/assets | 341 | (5,756) | ||
Analysis as: | ||||
Deferred tax assets | 12,274 | 6,567 | ||
Deferred tax liabilities | (11,933) | (12,323) | ||
Net deferred tax (liabilities)/assets | ¥ 341 | ¥ (5,756) |
Income Tax - Summary of reconci
Income Tax - Summary of reconciliation of valuation allowance (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance as of January 1, | ¥ 2,484 | ¥ 1,961 | ¥ 668 |
Increase/(decrease) during the year | (1,682) | 523 | 1,293 |
Balance as of December 31, | ¥ 802 | ¥ 2,484 | ¥ 1,961 |
Income Tax - Summary of net ope
Income Tax - Summary of net operating Losses Carry forwards (Detail) - Subsidiaries [Member] - CN - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | ¥ 14,760 | ¥ 6,784 |
2022 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 470 | |
2023 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 442 | 1,453 |
2024 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 990 | ¥ 4,861 |
2025 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | ¥ 13,328 |
Income Tax - Summary of unrecog
Income Tax - Summary of unrecognized tax benefits (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance as of January 1, | ¥ 3,686 | ¥ 2,567 | ¥ 1,046 |
Additions on tax positions | 4,271 | 1,119 | 1,521 |
Balance as of December 31, | ¥ 7,957 | ¥ 3,686 | ¥ 2,567 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020HKD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019HKD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018HKD ($) | Dec. 31, 2017CNY (¥) | |
Income Tax [Line Items] | |||||||
Percentage of tax benefit to be realized upon settlement for recognition in the income statement | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |
Increase in unrecognized tax benefits | ¥ 4,271 | ¥ 1,119 | ¥ 1,521 | ||||
Unrecognized tax benefits | ¥ 7,957 | ¥ 3,686 | ¥ 2,567 | ¥ 1,046 | |||
HK | |||||||
Income Tax [Line Items] | |||||||
Profit before tax threshold limit subject to lower tax rate | $ | $ 2,000 | $ 2,000 | $ 2,000 | ||||
HK | Tier One [Member] | |||||||
Income Tax [Line Items] | |||||||
Statutory tax rate | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | |
HK | Tier Two [Member] | |||||||
Income Tax [Line Items] | |||||||
Statutory tax rate | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | |
CN | |||||||
Income Tax [Line Items] | |||||||
Statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Limitation amount due to underpayment of taxes | ¥ 100 | ||||||
CN | Computational Errors By The Tax Payer Or The Witholding Agent [Member] | |||||||
Income Tax [Line Items] | |||||||
Limitation period due to underpayment of taxes | 3 years | 3 years | |||||
CN | Underpayment Of Taxes Is More Than One Hundred Reminibi [Member] | |||||||
Income Tax [Line Items] | |||||||
Limitation period due to underpayment of taxes | 5 years | 5 years | |||||
CN | Transfer Pricing Issues [Member] | |||||||
Income Tax [Line Items] | |||||||
Limitation period due to underpayment of taxes | 10 years | 10 years | |||||
CN | Yunnan Wfoe [Member] | |||||||
Income Tax [Line Items] | |||||||
Preferential income tax rate percentage | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |
CN | Yunnan Zhongchuang Education Tutorial Academy [Member] | |||||||
Income Tax [Line Items] | |||||||
Preferential income tax rate percentage | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |
Subsidiaries And Its Affiliates [Member] | CN | Enterprise Income Tax Act [Member] | |||||||
Income Tax [Line Items] | |||||||
Statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Distribution Of Profit - Additi
Distribution Of Profit - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Dec. 25, 2020CNY (¥) | Dec. 25, 2020USD ($) | Dec. 09, 2020CNY (¥)shares | Dec. 09, 2020USD ($)shares | Nov. 11, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Dividends Payable [Line Items] | ||||||||
Dividends declared | ¥ 157,663 | $ 24,163 | ¥ 157,663 | |||||
Dividends unpaid | ¥ 10,434 | ¥ 52,734 | ¥ 52,734 | |||||
Minimum required percent of annual after-tax profit, general reserve | 10.00% | |||||||
Required reserve, percent of respective registered capital | 50.00% | |||||||
General reserve | ¥ 4,971 | 4,952 | ||||||
Foreign Financial Institutions Mandated Reserve Percent Of Annual After Tax Profit Minimum | 25.00% | |||||||
Education Development Reserve | ¥ 36,620 | ¥ 24,149 | ||||||
Longwater Topco BV [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Stock repurchased, shares | shares | 718,239 | 718,239 | ||||||
Stock repurchased, value | $ | $ 15,300 | |||||||
Payments for repurchase stock | ¥ 89,083 | $ 13,713 | ||||||
Dividend Declared [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividends declared | ¥ 80,614 | |||||||
Dividend Paid [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividends paid | ¥ 27,880 | ¥ 42,300 |
(Loss)_Earnings Per Ordinary _3
(Loss)/Earnings Per Ordinary Share - Summary of Basic and Diluted Net Income (Loss) Per Share (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020$ / shares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019$ / shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018$ / shares | |
Earnings Per Share [Abstract] | ||||||
Net (loss)/income attributable to the shareholders of the Company | ¥ | ¥ 80,819 | ¥ 31,604 | ¥ (169,686) | |||
Weighted average number of ordinary shares – basic and diluted | shares | 70,488,700 | 70,488,700 | 67,914,968 | |||
Net (loss)/earnings per ordinary share – basic and diluted | (per share) | ¥ 1.15 | $ 1.15 | ¥ 0.45 | $ 0.45 | ¥ (2.50) | $ 2.50 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 1 |
Commitments And Contingencies -
Commitments And Contingencies - Summary of Outstanding Capital Commitments (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Capital Commitment Contracted | ¥ 50,143 | ¥ 2,109 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Parties (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Long-Spring Education Group [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | The Parent |
Zhang Shaowei [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Founder, Chairman and chief executive officer of the Company |
Wu Yu [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Mr. Zhang’s immediate family member |
Zhang Shaodong [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Mr. Zhang’s immediate family member |
Liu Kai [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Vice president of the Group |
Xu Ruzheng [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Vice president of the Group |
Sang Haiyong [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Vice president of the Group |
Yunnan Long-Spring Education Technology Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Entity controlled by Mr. Zhang* |
Suzhou Long-Spring Education Technology Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Entity controlled by Mr. Zhang* |
Yunnan Huayiweiming Technology Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Entity controlled by Mr. Zhang* |
Xi'an Long-Spring Education Technology Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Entity controlled by Mr. Zhang* |
Shanghai Long-Spring Education Technology Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Entity controlled by Mr. Zhang* |
Beijing Hengzhong Education Technology Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Entity controlled by Mr. Zhang* |
Kunming Chenggong Times Giant Tutorial Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Entity controlled by Mr. Zhang* |
Yunnan Qidi Primary School [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Entity controlled by Mr. Zhang* |
Yunnan Three Three One Education Technology Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Entity controlled by Mr. Zhang* |
Related Party Transactions - Su
Related Party Transactions - Summary of Major Transactions and Balances with Related Parties (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Net advances to (repayment from) related party transactions | ¥ (3,770) | ¥ (25,984) | ¥ 24,988 |
Loans to(repayment of loans from) related party transactions | (3,500) | 9,600 | |
Expenses paid on behalf of related party transactions | 408 | 1,460 | 6,487 |
Disposal of subsidiaries related party transactions | 4,165 | ||
Net Receipts on behalf of related party transactions | 374 | 24,008 | 26,017 |
Amounts due from related parties - Current | 80,464 | 82,225 | |
Amounts due from related parties - Non-current | 500 | 5,600 | |
Amount due from related parties | 80,964 | 87,825 | |
Amounts due to related parties | 218,996 | 113,359 | |
Mr. Zhang [Member] | |||
Related Party Transaction [Line Items] | |||
Net advances to (repayment from) related party transactions | 300 | (3,307) | 8,745 |
Expenses paid on behalf of related party transactions | 5,018 | ||
Payments for advances from related party transactions | (49) | (18,038) | |
Amounts due from related parties - Current | 72,908 | 37,474 | |
Amounts due to related parties | 49 | ||
Zhang Shaodong [Member] | |||
Related Party Transaction [Line Items] | |||
Net advances to (repayment from) related party transactions | (4,970) | 6,551 | 3,200 |
Amounts due from related parties - Current | 351 | 9,751 | |
Yunnan HYWM [Member] | |||
Related Party Transaction [Line Items] | |||
Net advances to (repayment from) related party transactions | 204 | (22,396) | |
Amounts due from related parties - Current | 13,503 | ||
Suzhou Long-Spring [Member] | |||
Related Party Transaction [Line Items] | |||
Net advances to (repayment from) related party transactions | (31,000) | 31,000 | |
Yunnan Long-Spring [Member] | |||
Related Party Transaction [Line Items] | |||
Net advances to (repayment from) related party transactions | (300) | 4,000 | |
Expenses paid on behalf of related party transactions | 1,460 | 45 | |
Disposal of subsidiaries related party transactions | 742 | ||
Amounts due from related parties - Current | 7,182 | ||
Kunming Chenggong [Member] | |||
Related Party Transaction [Line Items] | |||
Net advances to (repayment from) related party transactions | 1,200 | 1,568 | 2,500 |
Expenses paid on behalf of related party transactions | 216 | 866 | |
Disposal of subsidiaries related party transactions | 3,423 | ||
Amounts due from related parties - Current | 13 | 8,357 | |
Xi'an Long-Spring [Member] | |||
Related Party Transaction [Line Items] | |||
Net advances to (repayment from) related party transactions | (2,050) | ||
Others [Member] | |||
Related Party Transaction [Line Items] | |||
Net advances to (repayment from) related party transactions | (11) | ||
Net Receipts on behalf of related party transactions | 158 | 8 | 17 |
Amounts due to related parties | 683 | 112 | |
Liu Kai [Member] | |||
Related Party Transaction [Line Items] | |||
Loans to(repayment of loans from) related party transactions | (3,500) | 4,000 | |
Amounts due from related parties - Non-current | 500 | 4,000 | |
Xu Ruzheng [Member] | |||
Related Party Transaction [Line Items] | |||
Loans to(repayment of loans from) related party transactions | 4,000 | ||
Sang Haiyong [Member] | |||
Related Party Transaction [Line Items] | |||
Loans to(repayment of loans from) related party transactions | 1,600 | ||
Amounts due from related parties - Current | 1,600 | ||
Amounts due from related parties - Non-current | 1,600 | ||
Wu Yu [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses paid on behalf of related party transactions | 558 | ||
Amounts due from related parties - Current | 558 | ||
The Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses paid on behalf of related party transactions | 192 | ||
Net Receipts on behalf of related party transactions | 216 | 24,000 | 26,000 |
Borrowings from/(repayments of borrowings from) related party transactions | (10,933) | ¥ 9,467 | |
Amounts due from related parties - Current | 5,592 | 5,400 | |
Amounts due to related parties | ¥ 218,313 | ¥ 113,198 |
Related Party Transactions - _2
Related Party Transactions - Summary of Major Transactions and Balances with Related Parties (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | Dec. 25, 2020CNY (¥) | Dec. 25, 2020USD ($) | Nov. 11, 2018CNY (¥) | Oct. 30, 2018CNY (¥) | Sep. 15, 2018CNY (¥) | Aug. 26, 2018CNY (¥) | Jan. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Related Party Transaction [Line Items] | |||||||||||
Advances from related party transactions | ¥ 9,467 | ||||||||||
Amount received from related party transactions | ¥ 10,933 | ||||||||||
Consideration Paid | 76,496 | ||||||||||
Dividends | ¥ 157,663 | $ 24,163 | 157,663 | ||||||||
Dividends Payable | 10,434 | ¥ 52,734 | 52,734 | ||||||||
Amount due from Related parties | 80,464 | 82,225 | |||||||||
Dividend Declared [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividends | ¥ 80,614 | ||||||||||
Yunnan Long-Spring [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Percentage of equity interest sold | 100.00% | ||||||||||
Kunming Chengong [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Consideration Paid | ¥ 3,423 | ¥ 0 | |||||||||
Gain Or loss recognised on sale of business | ¥ 0 | ||||||||||
Yunan Long Spring [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Percentage of equity interest sold | 100.00% | ||||||||||
Consideration Paid | ¥ 742 | ||||||||||
Mr. Zhang Family Person [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount received from related party transactions | ¥ 22,396 | ||||||||||
Mr. Xu Ruzheng [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount due from Related parties | 3,500 | ||||||||||
Mr. Xu Ruzheng [Member] | Prepaid Expense [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount owed by related party transactions | 3,500 | ||||||||||
Mr. Xu Ruzheng [Member] | Other Current Assets And Other Non Current Assets [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount owed by related party transactions | 500 | ||||||||||
Liu Kai [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount received from related party transactions | 3,500 | ||||||||||
Liu Kai [Member] | Subsequent Event [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount received from related party transactions | ¥ 500 | ||||||||||
Sang Haiyong [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount due from Related parties | 1,600 | ||||||||||
Mr. Zhang [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Advances from related party transactions | ¥ 34,355 | ||||||||||
Amount due from Related parties | 72,908 | 37,474 | |||||||||
Balance amout due from related parties transferred to Parent | 35,133 | ||||||||||
Amount due from related parties waived off | 28,200 | ||||||||||
Mr. Zhang [Member] | Subsequent Event [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividends | ¥ 168,097 | ||||||||||
Parent [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Advances from related party transactions | 10,464 | ||||||||||
Dividends Payable | 168,097 | 52,734 | |||||||||
Amount due to related parties | 50,000 | ||||||||||
Amount due from Related parties | ¥ 50,000 | ||||||||||
Parent [Member] | Dividend Paid [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividends | 42,300 | ||||||||||
Parent [Member] | Dividend Unpaid [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividends | 10,434 | ||||||||||
Parent [Member] | Dividend Declared [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividends | ¥ 157,663 |
Subsequent Events - Summary of
Subsequent Events - Summary of Shareholding Before Restructuring (Detail) - shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 09, 2018 |
Subsequent Event [Line Items] | ||||
Number of shares | 70,488,700 | 70,488,700 | 1 | 1 |
Before Restructuring [Member] | Parent [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of shares | 7,048,870 | |||
Common Stock [Member] | Before Restructuring [Member] | Zhang [Member] | Visionsky Group Limited [Member] | Parent [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of shares | 2,776,902 | |||
Common Stock [Member] | Before Restructuring [Member] | Wuyu And Mrs Zhang [Member] | Brightenwit Group Limited [Member] | Parent [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of shares | 449,251 | |||
Common Stock [Member] | Before Restructuring [Member] | Certain Employee And Non Employee Consultants [Member] | Bvi Companies [Member] | Parent [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of shares | 1,545,948 | |||
Ordinary Shares With Special Rights [Member] | Before Restructuring [Member] | Longwater [Member] | Parent [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of shares | 2,276,769 |
Subsequent Events - Summary o_2
Subsequent Events - Summary of Shareholding Before Restructuring (Parenthetical) (Detail) - shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 09, 2018 |
Subsequent Event [Line Items] | ||||
Common stock, shares outstanding | 70,488,700 | 70,488,700 | 1 | 1 |
Parent [Member] | Before Restructuring [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock, shares outstanding | 7,048,870 | |||
Parent [Member] | Before Restructuring [Member] | To Be Surrendered After Restructuring [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock, shares outstanding | 100,000 | |||
Percentage of shareholding | 100.00% |
Subsequent Events - Summary o_3
Subsequent Events - Summary of Shareholding After Corporate Restructuring (Detail) - shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 09, 2018 |
Subsequent Event [Line Items] | ||||
Ordinary shares | 70,488,700 | 70,488,700 | 1 | 1 |
Restructuring [Member] | ||||
Subsequent Event [Line Items] | ||||
Temporary equity and common stock outstanding shares | 70,488,700 | |||
Restructuring [Member] | Longwater [Member] | ||||
Subsequent Event [Line Items] | ||||
Redeemable ordinary shares | 22,767,690 | |||
Restructuring [Member] | Visionsky Group Limited [Member] | ||||
Subsequent Event [Line Items] | ||||
Ordinary shares | 27,769,020 | |||
Restructuring [Member] | Brightenwit Group Limited [Member] | ||||
Subsequent Event [Line Items] | ||||
Ordinary shares | 4,492,510 | |||
Restructuring [Member] | Bvi Companies [Member] | ||||
Subsequent Event [Line Items] | ||||
Ordinary shares | 15,459,480 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2021 | Jan. 11, 2021 | Mar. 11, 2020 | Jan. 10, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 26, 2019 | Dec. 31, 2018 | Sep. 09, 2018 |
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 70,488,700 | 70,488,700 | 1 | 1 | |||||
Common stock, shares outstanding | 70,488,700 | 70,488,700 | 1 | 1 | |||||
IPO [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock shares issued during the period shares | 5,000,000 | ||||||||
Number of shares transferred by the existing shareholders | 2,500,000 | ||||||||
Sale of stock issue price per share | $ 10 | ||||||||
Sale of stock net consideration received on the transaction | $ 45,577 | ||||||||
Subscription Agreement With Shanghai Ruhai [Member] | Private Placement [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock shares issued during the period shares | 1,350,000 | ||||||||
Sale of stock issue price per share | $ 10 | ||||||||
Common Class B [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares outstanding | 47,529,220 | ||||||||
Common Class A [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | 39,309,480 | ||||||||
Restructuring [Member] | Longwater [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Temporary equity shares outstanding | 22,767,690 | ||||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock shares issued during the period shares | 70,488,700 | ||||||||
Subsequent Event [Member] | Subscription Agreement With Shanghai Ruhai [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock shares issued but not subscribed value | $ 4,500 | ||||||||
Subsequent Event [Member] | Two Thousand And Twenty One Share Incentive Plan [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Share based compensation by share based payment arrangement number of shares authorized | 3,524,435 | ||||||||
Share based compensation by share based payment arrangement number of shares authorized as a percentage of shares outstanding | 5.00% | ||||||||
Subsequent Event [Member] | Common Class B [Member] | Longwater [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock shares voting rights | 20 | ||||||||
Subsequent Event [Member] | Restructuring [Member] | Longwater [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Temporary equity shares outstanding | 22,767,690 | ||||||||
Subsequent Event [Member] | Restructuring [Member] | Put Option [Member] | Longwater [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Redemption Price Factor | 13.5 | ||||||||
Internal Rate Of Return | 25.00% | ||||||||
Subsequent Event [Member] | Parent Company Shareholders [Member] | Restructuring [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Temporary equity and permanent equity shares issued during the period shares | 70,488,700 | ||||||||
Shares surrendered during the period shares | 100,000 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Restricted Assets Disclosure [Line Items] | |
Restricted net assets | ¥ 113,846 |
Prior To Payments Of Dividends As General Reserve Fund [Member] | |
Restricted Assets Disclosure [Line Items] | |
Annual appropriations of profit net of tax, percentage | 10.00% |
Prior To Payments Of Dividends As Development Fund [Member] | |
Restricted Assets Disclosure [Line Items] | |
Annual appropriations of profit net of tax, percentage | 25.00% |
Condensed Financial Statement_3
Condensed Financial Statements of the Company - Schedule Of Condensed Balance Sheets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current liabilities | ||
Amounts due to a related party | ¥ 218,996 | ¥ 113,359 |
Bank loan | 64,140 | 14,577 |
Total current liabilities | 661,719 | 411,881 |
Shareholders' equity / (deficit) | ||
Accumulated other comprehensive loss | 144 | |
Accumulated deficits | (201,524) | (180,770) |
Total equity/(deficit) attributable to the shareholders of the Company | (95,661) | 70,122 |
Total liabilities and equity/(deficit) | 636,072 | 515,361 |
Parent Company [Member] | ||
Non-current assets | ||
Investments in subsidiaries and VIEs | 97,253 | 66,899 |
Total non-current assets and total assets | 97,253 | 66,899 |
Current liabilities | ||
Amounts due to a related party | 157,663 | 0 |
Bank loan | 46,637 | 0 |
Total current liabilities | 204,300 | 0 |
Shareholders' equity / (deficit) | ||
Ordinary shares (US$0.00001 par value; 5,000,000,000 shares authorized; and 70,488,700 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 0 | 0 |
Additional paid-in capital | 64,128 | 221,791 |
Accumulated other comprehensive loss | (11,242) | (3,223) |
Accumulated deficits | (159,933) | (151,669) |
Total equity/(deficit) attributable to the shareholders of the Company | (107,047) | 66,899 |
Total liabilities and equity/(deficit) | ¥ 97,253 | ¥ 66,899 |
Condensed Financial Statement_4
Condensed Financial Statements of the Company - Schedule Of Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 26, 2019 | Dec. 31, 2018 | Sep. 19, 2018 | Sep. 09, 2018 |
Common stock, par value per share | $ 0.00001 | $ 0.00001 | $ 1 | |||
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 | 50,000 | 50,000 | ||
Common stock, shares issued | 70,488,700 | 70,488,700 | 1 | 1 | ||
Common stock, shares outstanding | 70,488,700 | 70,488,700 | 1 | 1 | ||
Parent Company [Member] | ||||||
Common stock, par value per share | $ 0.00001 | $ 0.00001 | ||||
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 | ||||
Common stock, shares issued | 70,488,700 | 70,488,700 | ||||
Common stock, shares outstanding | 70,488,700 | 70,488,700 |
Condensed Financial Statement_5
Condensed Financial Statements of the Company - Schedule Of Condensed Statements Of Comprehensive Income Or Loss (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | |||
Share of (loss) / income from subsidiaries and VIEs | ¥ 80,920 | ¥ 31,690 | ¥ (169,686) |
Income tax expense | 15,404 | 5,370 | 10,186 |
Net (loss) / income of the Company | 80,819 | 31,604 | (169,686) |
Comprehensive (loss)/ income | 80,963 | 31,604 | (169,686) |
Parent Company [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Share of (loss) / income from subsidiaries and VIEs | 80,819 | 31,604 | (169,686) |
Net (loss)/income before income taxes | 80,819 | 31,604 | (169,686) |
Income tax expense | 0 | 0 | 0 |
Net (loss) / income of the Company | 80,819 | 31,604 | (169,686) |
Other comprehensive (loss)/income | (8,019) | 1,929 | (1,927) |
Comprehensive (loss)/ income | ¥ 72,800 | ¥ 33,533 | ¥ (171,613) |
Condensed Financial Statement_6
Condensed Financial Statements of the Company - Schedule Of Condensed Statements Of Cash Flows (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash generated from operating activities | ¥ 122,472 | ¥ 101,686 | ¥ 90,663 |
Net cash generated from investing activities | (30,859) | (21,474) | (125,100) |
Net cash generated from financing activities | (36,675) | 14,642 | 34,753 |
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash generated from operating activities | 0 | 0 | 0 |
Net cash generated from investing activities | 0 | 0 | 0 |
Net cash generated from financing activities | 0 | 0 | 0 |
Net increase in cash | ¥ 0 | ¥ 0 | ¥ 0 |