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Skillful Craftsman Announces Financial Results for The First Six Months of Fiscal Year 2022

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Continues to Accelerate the Deployment of New Business Strategy and Empower Training Platform with Integrated Metaverse-based Technologies

WUXI, China, Dec. 4, 2021 — Skillful Craftsman Education Technology Ltd. ("the Company") (NASDAQ: EDTK), an education technology company providing interactive online learning services, today announced its financial results for the first six months of fiscal year 2022 ended September 30, 2021.

First Six Months of Fiscal Year 2022 Financial and Operational Highlights

All financial figures are in US Dollars unless otherwise noted.

  • Revenue was $11.9 million, compared with $15.3 million for the same period of last year, representing a 23% decrease, primarily due to a decrease in the number of total fee-paying members resulting from the decline in training needs of workers from rural area as the urbanization continued.
  • Gross profit was $3.6 million, compared with $8.5 million for the same period of last year, representing a 58% decrease. The decrease was mainly due to the combined effect of the decrease in revenue and an increase in cost of revenue as the Company incurred increased fees in courseware, software copyrights and virtual simulation in connection with its efforts to shift target customers to students at vocational schools.
  • Gross profit margin was 30%, compared with 55% for the same period of last year. The main reason was the cost spent in platform upgrade and courses enrichment did not result in the expansion of customer base to the extent expected.
  • Net loss was $43.3 thousand, compared with net income of $4.4 million for the same period of last year. The decrease was due to the decrease in revenue, an increase in the cost of revenue and an increase in general and administrative expenses.
  • Basic and diluted earnings per share were $0.00, compared with $0.44 for the same period of last year.
  • Total fee-paying members(1) was 1.1 million, compared with 3.3 million during the same period of last year, representing a 68% decrease. The decrease was primarily due to the combined effect of (i) the shrinking training needs of workers from rural area as a result of the development of urbanization, and (ii) unsatisfactory acquisition of new customers among students at vocational schools, who nowadays tend to be more interested in mobile live streaming and short video training courses than the personal computer courses offered by the Company.

(1) Number of fee-paying members is defined as the total number of members that are paying fees for accessing our platforms as of the end of the applicable period.

Mr. Xiaofeng Gao, Chairman and CEO of Skillful Craftsman Education Technology Ltd., commented, "To seize the market opportunities, we have accelerated the deployment of new business strategy and new technology since the first half year of 2021. With respect to business development, the Company is leveraging online cloud technology service and flexible employment service platform, to cooperate with schools and institutions to provide them with high quality vocational training. It has already landed in the two major fields of Chinese medicine basic education and hotel management. With respect to technology enhancement, the Company will integrate metaverse technology with big data, cloud technology and traditional Augmented Reality (AR) simulation teaching capabilities. Through co-constructing metaverse vocational labs with universities and ecological chain companies, the Company plans to launch multi-persons collaborative simulation skills training platform based on metaverse. We remain optimistic about the vocational education industry based on the Opinions on Promoting the High-quality Development of Modern Vocational Education (the "Opinions") issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council. The Opinions encourage companies to participate in and support the development of vocational education, which provides clear directions and positive incentives for the Company’s future development. We believe our brand, strategic development and the supporting policy will position us well for the future and we are confident in creating long-term value and returns for our shareholders."

First Six Months of Fiscal Year 2022 Financial Results

All figures refer to the first six months of fiscal year 2022 ended September 30, 2021 unless otherwise stated

Revenue

Revenue decreased by 23% to $11.9 million, from $15.3 million for the same period of last year, primarily due to a decrease in the number of total fee-paying members resulting from the decline in training needs of workers from rural area as the urbanization continued.

Cost of Revenue

Cost of revenue increased by 21% to $8.3 million, from $6.8 million for the same period of last year. The increase of cost of revenue was mainly caused by the increase of $0.8 million amortization of the newly purchased courseware and software copyrights, and the increase of virtual simulation fee by $0.6 million, both related to the Company’s efforts to shift target customers to students at vocational schools.

Gross Profit and Gross Margin

Gross profit decreased by 58% to $3.6 million, from $8.5 million for the same period of last year. The decrease was mainly due to the combined effect of increased cost of revenue in courseware, software copyrights and virtual simulation fees and decrease in revenue.

Gross margin decreased by 25 percentage points to 30%, from 55% for the same period of last year. The main reason was the cost spent in platform upgrade and courses enrichment did not result in the expansion of customer base to the extent expected.

Operating Expenses

Operating expenses increased by 27% to $3.0 million, from $2.4 million for the same period of last year.

Sales and marketing expenses decreased by 18% to $0.7 million, from $0.9 million for the same period of last year. The decrease was mainly due to the decreases in both of the promotion expenses and telecommunications service fees.

General and administrative expenses increased by 53% to $2.3 million, from $1.5 million for the same period of last year. The increase was primarily caused by the increased compensation paid to employees, audit fees, the insurance fee and consulting fees for the period ended September 30, 2021.

Income Before Tax

Income before tax expense decreased by 90% to $0.6 million, from $6.1 million for the same period of last year.

Net (loss)/Income

Net loss was $43.3 thousand, compared with net income of $4.4 million for the same period of last year.

Basic and diluted earnings per share were $0.00, compared with $0.44 for the same period of last year.

Cash and Cash Equivalents

As of September 30, 2021, the Company had cash and cash equivalents of $23.7 million, compared with $17.5 million as of March 31, 2021.

Cash Flow

Net cash generated from operating activities was $1.8 million, compared with $6.6 million for the same period of last year.

Net cash provided by investing activities was $4.4 million, compared with net cash used in investing activities $14.2 million for the same period of last year.

Net cash generated from financing activities was nil, compared with $13.24 million for the same period of last year.

About Skillful Craftsman

Skillful Craftsman is an education technology company that provides interactive online vocational training and virtual simulation experimental training courses. The Company began operations in Wuxi, China in 2013 and is a key supporter for China education reform and development for labor employment. For more information, please visit: ir.kingwayup.com

Safe Harbor Statement

This report contains "forward-looking statements" for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that represent our beliefs, projections and predictions about future events. All statements other than statements of historical fact are "forward-looking statements," including any projections of earnings, revenue or other financial items, any statements of the plans, strategies and objectives of management for future operations, any statements concerning proposed new projects or other developments, any statements regarding future economic conditions or performance, any statements of management’s beliefs, goals, strategies, intentions and objectives, and any statements of assumptions underlying any of the foregoing. Words such as "may", "will", "should", "could", "would", "predicts", "potential", "continue", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates" and similar expressions, as well as statements in the future tense, identify forward-looking statements.

Forward-looking statements are based on information available at the time those statements are made and management’s belief as of that time with respect to future events. These statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any future results, performance or achievements described in or implied by such statements. Such risks, uncertainties, and other factors include, but are not limited to, our ability to improve launch and leverage new technologies and cooperative relationships or anticipate market demand in a timely or cost-effective manner, and those factors discussed under the headings "Risk Factors", "Operating and Financial Review and Prospects," and elsewhere in our Annual Report on Form 20-F. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved. Actual results may differ materially from expected results described in our forward-looking statements, including with respect to correct measurement and identification of factors affecting our business or the extent of their likely impact, and the accuracy and completeness of the publicly available information with respect to the factors upon which our business strategy is based or the success of our business. The Company disclaims any intention to, and undertakes no obligation to, update or revise any forward-looking statement.

For investor and media enquiries, please contact:

Skillful Craftsman
Investor Relations Department
Email: iredtk@kingwayedu.cn

Ascent Investor Relations LLC
Tina Xiao
Tel: +1 917-609-0333
Email: tina.xiao@ascent-ir.com

 

 

 

SKILLFUL CRAFTSMAN EDUCATION TECHNOLOGY LIMITED

CONSOLIDATED BALANCE SHEETS

(Amounts in US$, except for number of shares)

As of

September 30,
2021

March 31,
2021

(Unaudited)

(Audited)

ASSETS

Current assets

Cash and cash equivalents

$

23,712,359

$

17,453,360

Accounts receivable, net

50,246

83,980

Prepayments

2,903,533

1,784,537

Other receivables

186,325

5,713,192

Total current assets

26,852,463

25,035,069

Non-current assets

Long-term investment

306,498

–

Property and equipment, net

12,462,098

13,725,957

Intangible assets, net

17,144,418

20,416,461

Goodwill

4,581,112

–

Long-term prepayments and other non-current assets

–

28,406

Total non-current assets

34,494,126

34,170,824

TOTAL ASSETS

$

61,346,589

$

59,205,893

LIABILITIES

Current liabilities

Accounts payable

$

122,119

$

113,707

Taxes payable

292,532

448,485

Amounts due to a related party

5,764

257,037

Accrued expenses

920,665

1,051,929

Deferred tax liabilities

43,234

–

Deferred revenue-current

9,270,561

11,456,667

Total current liabilities

10,654,875

13,327,825

Non-current liabilities

Deferred revenue-noncurrent

–

312,896

Total non-current liabilities

–

312,896

TOTAL LIABILITIES

$

10,654,875

$

13,640,721

COMMITMENTS AND CONTINGENCIES

–

–

SHAREHOLDERS’ EQUITY

    Ordinary shares, par value $0.0002 per share, 500,000,000

 

2,980

 

 

2,400

 

shares authorized; 14,900,000 and 12,000,000 shares issued

and outstanding as of 30 September, 2021 and 31 March,

2021, respectively

Additional paid-in capital

18,055,407

13,415,987

Statutory reserve

746,323

745,590

Accumulated profits

30,375,080

30,419,177

Accumulated other comprehensive income

1,511,924

982,018

TOTAL SHAREHOLDERS’ EQUITY

50,691,714

45,565,172

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

61,346,589

$

59,205,893

 

 

 

SKILLFUL CRAFTSMAN EDUCATION TECHNOLOGY LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 (Amounts in US$, except for number of shares)

For the six months ended

September 30,

2021

2020

(Unaudited)

(Unaudited)

Revenue

$

11,851,792

$

15,313,780

Cost of revenue

(8,255,007)

(6,826,879)

Gross income

3,596,785

8,486,901

Operating expenses:

Selling and marketing expenses

(720,191)

(879,812)

General and administrative expenses

(2,293,011)

(1,499,774)

Total operating expenses

(3,013,202)

(2,379,586)

Income from operations

583,583

6,107,315

Interest income

31,237

30,292

Investment loss

(1,897)

–

Government grant

493

–

Foreign currency exchange loss

(48,819)

–

Loss on disposals of equipment

(54,147)

–

Other expenses, net

(2,147)

(909)

Income before income taxes

508,303

6,136,698

Income tax expense

(551,667)

(1,744,005)

Net (loss)/income

$

(43,364)

$

4,392,693

Other comprehensive income/(loss):

Foreign currency translation adjustment

529,906

1,246,805

Total comprehensive income

486,542

5,639,498

Net earnings per ordinary share, basic and diluted

$

0.00

$

0.44

Weighted average number of ordinary shares, basic and
diluted

12,475,410

10,000,000

 

 

 

SKILLFUL CRAFTSMAN EDUCATION TECHNOLOGY LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in US$)

For the six months ended September 30,

2021

2020

Cash Flows from Operating Activities

Net (loss)/income

$

(43,364)

$

4,392,693

Adjustments to reconcile net profit to net cash provided

by operating activities:

Depreciation of property and equipment

2,051,081

1,657,961

Amortization of intangible assets

3,948,391

3,157,605

Loss from equity-method investment

1,897

–

Loss on disposals of equipment

54,147

–

Changes in operating assets and liabilities:

Accounts receivables, net

33,734

(24,284)

Prepayments and other current assets

(1,118,873)

(602,972)

Other receivables

(19,296)

–

Long-term prepayments and other non-current assets

28,406

28,509

Accounts payable

8,412

(149,822)

Amounts due to a related party

(251,273)

509,012

Deferred revenue

(2,552,387)

(2,939,360)

Accrued expenses

(220,164)

768,911

Taxes payable

(154,248)

(213,411)

Deferred tax liabilities

(730)

–

Net cash generated from operating activities

1,765,733

6,584,842

Cash flows from investing activities

Purchase of property and equipment

(653,189)

(3,988,249)

Purchase of intangible assets

(209,469)

(2,254,100)

Proceed from redemption of financial assets held for

5,563,191

–

trading

Investment in private held company

(308,385)

–

Purchase of Jisen Information, net of cash acquired

50,229

–

Proceed from disposal of equipment

4,650

–

Purchases of other investments

–

(8,000,000)

Net cash generated from/(used in) investing activities

$

4,447,027

$

(14,242,349)

Cash flows from financing activities

Proceeds from IPO net off IPO expenses

–

13,243,554

Net cash generated from financing activities

$

–

$

13,243,554

Effects of foreign currency translation

46,239

(67,122)

Net increase in cash and cash equivalents

6,258,999

5,518,925

Cash and cash equivalents at beginning of period

17,453,360

11,931,714

Cash and cash equivalents at end of period

$

23,712,359

$

17,450,639

Supplemental disclosures of cash flow information

Cash paid for income taxes

$

687,877

$

1,974,038

Non cash transactions

Ordinary shares issued for Jisen Information acquisition

$

4,640,000

$

–

 

PR Newswire

Tang Prize Laureates Reflect on the Breakthroughs Made Possible by Cytokine Research

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TAIPEI, Nov. 27, 2021 — Following the inspiring opening speech, "Future Perspective of Cancer Immunotherapy," delivered by Nobel Prize and Tang Prize laureate Prof. Tasuku Honjo at the 14th Asia Pacific Federation of Pharmacologist Conference (APFP) on November 26, the 2020 Tang Prize Laureate’s Lecture for Biopharmaceutical Science, co-organized by the Tang Prize Foundation and The Pharmacological Society in Taiwan, took place at the 14th APFP at 1:30 p.m. (GMT+8) on November 27. Co-hosted by Dr. Wen-Chang Chang, chair of Taipei Medical University’s board of directors, and Dr. Yun Yen, chair professor at Taipei Medical University, this special session featured lectures delivered by three winners for the 2020 Tang Prize in Biopharmaceutical Science, Drs. Charles Dinarello, Marc Feldmann, and Tadamitsu Kishimoto, providing valuable informaiton on the role cytokines play in inflammation and the COVID-19 disease as well as possible treatments.

The first lecture by Dr. Dinarello, titled "Interleukin-1: The Prime Mediator of Systemic and Local Inflammation," began with his purification of leukocytic pryogen from human white blood cells in 1971. It then took him six years to identify two fever-producing molecules, later named IL-1αand IL-1β. In 1977, the research outcomes were published in the Proceedings of the National Academy of Sciences, and for Dr. Dinarello, "that was an important step in the history of cytokine biology," because many people in the field of life science were encouraged to study the immune system’s influence on human physiology. As a result, cytokine biology expanded rapidly. He also talked about how after the early experiments in humans, "the history of cytokines being used as a treatment changed dramatically," and the focus was shifted to "inhibiting cytokines, such as IL-1, such as TNF, such as IL-6." To help the audience understand the complicated network constituted by the pro-inflammatory molecules of the IL-1 family, Dr. Dinarello elaborated on the signal transduction of IL-1 family members, their pro- and anti-inflammatory characteristics, and the symptoms of different inflammatory diseases, so as to ease the way for the audience to get a proper grasp of the second half of the lecture which centered on "the clinical application of Il-1 blockade." IL-1 overproduction, as Dr. Dinarello remarked, is a common cause of many diseases. IL-1Ra, on the other hand, can inhibit Il-1αandβ, and block the IL-1R signaling. Anakinra, a recombinant human IL-1Ra has been produced. It is used to treat rheumatoid arthritis and can also prevent glycemic disorders in type 2 diabetes. Moreover, canakinumab, an anti-IL-1βmonoclonal antibody successfully developed by Novartis, has been approved in a variety of diseases, ranging from rare hereditary diseases, rheumatic diseases, autoimmune and inflammatory diseases, to cardiovascular diseases. The most exciting news involving canakinumab is the clinical trial, CANTOS, which unexpectedly proved that canakinumab has an important role in treating cancer. Therefore, Dr. Dinarello believes that blocking IL-1 can usher in the dawn of a new cancer treatment.

The second speaker, Dr. Feldmann, shared his views on "Translating Molecular Insights in Autoimmunity into Effective Therapy." The emphasis of the first half of his lecture was on how he discovered that anti-TNF can be effective in treating rheumatoid arthritis. Administrating either high or low doses of this drug can block TNF while also rapidly reducing the production of other inflammatory mediators. In their earlier experiments, Dr. Feldmann and his team demonstrated that around 50% of people with rheumatoid arthritis responded to the combination therapy using anti-TNF and the cancer drug methotrexate. That led him to believe that "we’ve got a long way to go before every patient is cured." During the second half of the talk, Dr. Feldmann informed us that "TNF is a very unusual meditator, because it has two different targets: TNF receptor-1(TNFR1), which drives inflammation, and TNF receptor 2, which does the very opposite. So if you block all of TNF, you block of receptors. You block inflammation, but you also prevent the body’s attempt to dampen down the inflammation." Therefore, he and his colleagues are "in the process of generating tools" and has already blocked TNFR1 without change the function of regulatory T cells. In addition, Dr. Feldmann mentioned the potential of anti-TNF for addressing many unmet medical needs, such as treating fibrosis of the hand by injecting anti-TNF into the palm. However, he pointed out the two obvious disadvantages of the anti-TNF he first developed: it was cost-prohibitive and "it was an injectable drug." Thus, to develop "cheaper drugs that could be delivered by mouth" would bring greater benefit to the society. Throughout the lecture, Dr. Feldmann kept bringing up many people with whom he was or is collaborating for different projects and experiments, as he tried to drive home the message that what he had learned from these experiences was "how to work effectively with others" to ensure continuous breakthroughs in their research. It has been the hallmark of his career to find "talented people to work with," and, "together with them," to achieve much more "than we could alone."

Presenting the third lecture on the topic "Interleukin-6: From Arthritis to CAR-T and COVID-19," Dr. Kishimoto drew the audience’s attention to how IL-6 was discovered, why IL-6 is a pleiotropic molecule, and why IL-6 "is responsible for both antibody production as well as inflammation induction." He also shed light on IL-6’s effects on autoimmune diseases and how IL-6 can trigger cytokine storms. Early on in his talk, Dr. Kistimoto made clear that the overproduction of IL-6 has found to be associated with many diseases, such as cardiac myxoma, Castleman’s disease, rheumatoid arthritis, and systemic onset of juvenile idiopathic arthritis (JIA). To tackle the inflammatory responses provoked by IL-6 overproduction, Dr. Kishimoto and his team tried to treat patients by blocking IL-6 signals. Subsequently, tocilizumab, a recombinant humanized anti-IL-6 receptor monoclonal antibody, was successfully developed and has been approved for use in more than 100 countries for the treatment of rheumatoid arthritis and JIA. With regard to how the production of IL-6 is regulated and why IL-6 overproduction often occurs in chronic inflammatory diseases, Dr. Kishimoto explained that the stabilization of IL-6 strongly depended on its messenger RNA. To rescue patients suffering from CAR-T cell-induced cytokine storms, many in the medical profession now will use tocilizumab to cushion the side effects of this therapy. In view of this example, Dr. Kishimoto and his team speculated that tocilizumab can also be effective in helping seriously-ill COVID-19 patients combat cytokine storms. Several large-scale clinical trials proved that it can lower the possibility of requiring invasive ventilation or the risk of death. For this reason, the US Food and Drug Administration and the World Health Organization have both issued an Emergency Use Authorization for tocilizumab for the treatment of COVID-19 patients. In this lecture, Dr. Kishimoto gave us a comprehensive overview of the research on IL-6 he led his team in carrying out over the past 50 years. It was a journey that took them from basic research to drug development and clinical application.

These three lectures by the 2020 Tang Prize laureates in Biopharmaceutical Science will be premiered on the Tang Prize YouTube channel from 4 p.m. to 7 p.m. (GMT+8) on November 27. To watch the complete version of the "2020 Tang Prize Laureate’s Lectures for Biopharmaceutical Science," please consult the schedule below.

  • Dr. Charles Dinarello – Interleukin-1, the prime mediator of systemic and local inflammation
    11/27 16:00 Taipei time (GMT+8)：https://youtu.be/gVXKCkTKkcg  
  • Dr. Marc Feldmann – Translating Molecular Insights in Autoimmunity into Effective Therapy
    11/27 17:00 Taipei time (GMT+8)：https://youtu.be/_M3R9WFtDt4  
  • Dr. Tadamitsu Kishimoto – Interelukin-6: From Arthritis to CAR-T and COVID-19
    11/27 18:00 Taipei time (GMT+8)：https://youtu.be/93rNLo5QMQc
PR Newswire

PolyU launches its 85th Anniversary celebration, pledging to help Hong Kong shine as an international innovation and technology hub

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HONG KONG, Nov. 25, 2021 — The celebration of the 85th Anniversary of The Hong Kong Polytechnic University (PolyU) commenced today with a kick-off ceremony held at the Jockey Club Auditorium.

Under the theme of "We Are PolyU – Together We Excel", more than 600 distinguished guests, alumni, staff and students attended the occasion, which shared the accomplishments the University had made over the years and paid tribute to its supporters.

The 85th Anniversary milestone also represents a time when PolyU is embarking on a new journey aiming to strengthen its position as a leading university with world-class education and research, help Hong Kong shine as a leading innovation and technology hub, and further contribute to a better and more prosperous future for the Nation and the world.

Among the new initiatives in the years to come, the recently established PolyU Academy for Interdisciplinary Research (PAIR) will spearhead the University’s interdisciplinary research efforts in cutting-edge areas such as artificial intelligence, carbon neutrality, deep space exploration, smart cities, and smart energy.

PolyU will also launch new education programmes in emerging technologies to meet the needs of society for interdisciplinary talents, while continuing to work together with the Government, the University Grants Committee and other key partners to nurture the next generation of socially responsible leaders.

The University will further promote and support entrepreneurship through education, seed funding programmes and the "GBA PolyVentures 2025" initiative in partnership with industries and investors to help translate PolyU’s research outcomes into real-world impact.

At Thursday’s ceremony, PolyU’s Orchestra and Choir performed the 85th Anniversary theme song, while current students from around the world performed a joint parade. The ceremony will be followed by a series of distinguished lectures, international conferences, concerts, art and cultural events, and alumni homecoming activities throughout the next twelve months.

Other highlights of the celebration in the coming months include the publication of a book on PolyU’s history edited by Professor Chu Hung-lam, Chair Professor of Chinese Culture of PolyU; the opening of a University history museum; the enhancement of the southern entrance at Core A as the University’s main entrance; and the hosting of an innovation and technology day. An anniversary gala dinner next November will wrap up the celebration on a high note.

Speaking at the launch ceremony, Mrs Carrie LAM CHENG Yuet-ngor, Chief Executive of the Hong Kong Special Administrative Region, said that PolyU has become a global powerhouse in university education and continues to attract gifted innovation and technology academics from around the world.

Mrs Lam added she fully supported the University’s initiatives to nurture innovation and technology talents and help young entrepreneurs to thrive in the GBA. Regarding PolyU’s plan to establish a new campus in Foshan, Guangdong, she said, "The new campus will, I am confident, spur innovation and entrepreneurship in Hong Kong and throughout the Greater Bay Area… I stand ready to offer my support and assistance to PolyU."

Mr Carlson TONG, Chairman of the University Grants Committee, noted that PolyU had delivered a wide array of research outputs with tremendous positive impact on society. The latest Research Assessment Exercise rated 70 percent of PolyU’s research as "world-leading" or "internationally excellent". "We were all thrilled and proud of how the Surface Sampling and Packing System developed by PolyU played a vital part in the Nation’s first lunar sample return mission. This is indeed one of the best testimonies of your leading status in applied research," Tong said.

Both were joined by Mr LIU Guangyuan, Commissioner of the Ministry of Foreign Affairs in the Hong Kong SAR; Professor TAN Tieniu, Deputy Director of the Liaison Office of the Central People’s Government in the Hong Kong SAR; Professor JIANG Jianxiang, Director-General of the Department of Educational, Scientific and Technological Affairs of the Liaison Office; Mr Kevin YEUNG, Secretary for Education; Dr LAM Tai-fai, Council Chairman of PolyU; Professor Jin-Guang TENG, President of PolyU and other University management at the launch ceremony of the year-long celebration.

Dr Lam said that PolyU had nurtured more than 400,000 alumni, empowering the development of Hong Kong. He said, "PolyU will continue to work together with the Government and support Hong Kong’s integration into the Nation’s development, develop Hong Kong into an international innovation and technology hub, and make greater contributions to Hong Kong, the GBA and the Nation."

Professor Teng said that PolyU is devoted to enhancing the long-term competitiveness of Hong Kong and the Greater Bay Area at the international level. He also said, "Over the years, I have proudly witnessed the development of the institution into a global top 100 university. The rich legacy of the University and its continued success is the outcome of the hard work, passion and perseverance of the PolyU community over the past years and decades."

PR Newswire

Meten Holding Group Ltd. Closes $20 Million Registered Direct Offering of Ordinary Shares Priced At-the-Market Under Nasdaq Rules

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SHENZHEN, China, Nov. 12, 2021 — Meten Holding Group Ltd. ("Meten Holding" or the "Company") (NASDAQ: METX), one of the leading omnichannel English language training ("ELT") service providers in China, today announced it closed its previously announced registered direct offering. The purchase price of the ordinary shares was $0.60 per ordinary share. The gross proceeds of the offering will be approximately $20 million, before deducting placement agent fees and other estimated offering expenses. The Company intends to use the net proceeds from this Offering for capital expenditures and general corporate and working capital needs.

Aegis Capital Corp. acted as the exclusive placement agent for the Offering.

The Offering was made pursuant to an effective shelf registration statement on Form F-3 (No. 333-256087) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on May 21, 2021. A final prospectus supplement and accompanying prospectus describing the terms of the Offering have been filed with the SEC and are available on the SEC’s website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained by contacting Aegis Capital Corp., Attention: Syndicate Department, 810 7th Avenue, 18th floor, New York, NY 10019, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Meten Holding Group Ltd.

Meten Holding Group Ltd., formerly known as Meten EdtechX Education Group Ltd., is an English Language Training (ELT) service provider in China, delivering English language and skills training for Chinese students and professionals. Through a sophisticated digital platform and a nationwide network of learning centers, the Company provides its services under three industry-leading brands: Meten (adult and junior ELT services), ABC (primarily junior ELT services) and Likeshuo (online ELT). The Company offers superior teaching quality and student satisfaction, served by cutting edge technology deployed across its business, including AI-driven centralized teaching and management systems that record and analyze learning processes in real time. The Company is committed to improving the overall English language competence of the Chinese population to keep abreast of the rapid development of globalization. Its experienced management is focused on further developing its digital platform and expanding its network of learning centers to deliver a continually evolving service offerings to a growing number of students across China.

For more information, please visit: https://investor.metenedu-edtechx.com.

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results. 

For more information, please contact Investor Relations:

Ascent Investor Relations LLC
Tina Xiao
+1 917-609-0333
tina.xiao@ascent-ir.com

PR Newswire

FII Institute and Leading Global Academic Institutions Impact on Humanity

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RIYADH, Saudi Arabia, Oct. 31, 2021 — The Future Investment Initiative (FII) Institute, a global non-profit foundation with one agenda: Impact on Humanity, has today announced projects with world-class universities and academic publisher Springer Nature to make an impact on humanity.

The FII Institute has partnered with world-class universities Mohammed VI Polytechnic University, HEC-Paris and leading science journal Nature. It has also pledged significant support to clean energy research being undertaken at Stanford’s Precourt Institute for Energy.

Left to right: Anne-Valérie Corboz, Associate Dean, HEC Paris; Raphaëlle Gautier, Director, HEC Paris; Richard Attias, CEO, FII Institute; Rakan Tarabzoni, COO, FII Institute; Pablo Martin de Holan, Dean, HEC Paris in Qatar; Safiye Kucukkaraca, Director, Strategic Partnerships, THINK, FII Institute; Yi Cui, Director, Precourt Institute for Energy, Stanford University; and Hicham El Habti, President, UM6P (Not pictured: Steven Inchcoombe, Chief Publishing & Solutions Officer, Springer Nature, delivered a pre-recorded message).
Left to right: Anne-Valérie Corboz, Associate Dean, HEC Paris; Raphaëlle Gautier, Director, HEC Paris; Richard Attias, CEO, FII Institute; Rakan Tarabzoni, COO, FII Institute; Pablo Martin de Holan, Dean, HEC Paris in Qatar; Safiye Kucukkaraca, Director, Strategic Partnerships, THINK, FII Institute; Yi Cui, Director, Precourt Institute for Energy, Stanford University; and Hicham El Habti, President, UM6P (Not pictured: Steven Inchcoombe, Chief Publishing & Solutions Officer, Springer Nature, delivered a pre-recorded message).

The announcements came during the second day of the FII 5th Anniversary taking place in the Riyadh this week. As a global nonprofit foundation, these relationships will support the work of the FII Institute to make an impact in five areas: AI, Robotics, Education, Healthcare, and Sustainability.

FII Institute CEO Richard Attias said the institute is delighted to welcome the latest group of academics to the THINK pillar of the FII Institute.

"The academic quality of these institutions reinforces the FII Institute’s mandate to be a truly global catalyst for change.  We are proud to have secured such high-profile educational agreements that will cover a hugely diverse range of research from ways to achieve zero net carbon goals to harnessing the power of AI and new research into the concepts behind the circular economy, which will make an impact on humanity."

Discussions, debates and presentations at the current FII revolve around investments that will create the greatest benefits for humanity, as multiple sectors witness a renaissance in the post-COVID era. The platform brings together world leaders, experts, innovators, and media in a global forum to explore pioneering solutions addressing society’s challenges and propel action towards their realization.

President of the Mohammed VI Polytechnic University (UM6P), Hicham El Habti said he is "looking forward to seeing UM6P and FII continuing to join efforts towards making an impact through daring, experimenting and disrupting. I am confident that this collaboration will allow us to achieve the mutual goals of being impact generators through innovative research, capability building, education and investing in and for the future."

Dean of HEC-Paris in Qatar, Pablo Martin de Holan said "We are delighted to work with FII to advance understanding of how to reconcile business models with the circular economy.  HEC Paris is committed to creating actionable knowledge that will contribute to the solution of the global challenges of our time and help train the women and men who will lead the massive transformations that are required for a better, more sustainable, and more just world for us and future."

Director of Stanford’s Precourt Institute for Energy and Professor of Materials Science and Engineering, Yi Cui, said he was grateful for the generous support from the FII Institute and the contribution to the clean energy research at Stanford.

Chief Publishing and Solutions Officer of Springer Nature, Steven Inchcoombe, said: "through this partnership we aim to provide the research community and key decision makers with information they can use to accelerate solutions to key societal challenges."

About FII Institute  

FII Institute is a global nonprofit foundation with an investment arm and one agenda: Impact on Humanity. Committed to ESG principles, we foster the brightest minds and transform ideas into real-world solutions in five focus areas: AI and Robotics, Education, Healthcare and Sustainability. 

We are in the right place at the right time – when decision makers, investors and an engaged generation of youth come together in aspiration, energized and ready for change. We harness that energy into three pillars – THINK, XCHANGE, ACT – and invest in the innovations that make a difference globally.

fii-institute.org

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PR Newswire

ViewSonic Introduces ViewBoard Box to Transform Classrooms into Immersive Digital Learning Spaces in Seconds

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Provide Easy Access to myViewBoard Ecosystem and Centralized Management Across Multiple Displays

BREA, Calif., Oct. 28, 2021 — ViewSonic Corp., a leading global provider of visual solutions, has launched the ViewBoard Box—a palm-sized plug and play device that works with compatible mainstream displays, monitors, and projectors. It provides instant access to the company’s myViewBoard ecosystem and brings enhanced engagement and collaboration to learning spaces. Moreover, it helps IT administrators to streamline the work process by offering device management to centrally control displays remotely with myViewBoard Manager.  

ViewSonic introduced the ViewBoard Box to provide instant access to myViewBoard and centralized management across multiple displays, bringing enhanced engagement and collaboration as well as facilitating campus-wide communication in learning spaces.
ViewSonic introduced the ViewBoard Box to provide instant access to myViewBoard and centralized management across multiple displays, bringing enhanced engagement and collaboration as well as facilitating campus-wide communication in learning spaces.

"At the moment, we are seeing the acceleration of a number of changes that were already underway in education, such as greater digitalization of in-person classrooms, and the proliferation of remote learning," said Monica Sun, Director of the Presentation Group at ViewSonic. "Purpose-built to facilitate communication and engagement, the myViewBoard ecosystem has benefitted more than 4 million customers. With the introduction of the ViewBoard Box, we want to open this powerful visual learning platform to an even greater number of educators, students, and institutions—without the need to undertake major upgrades in their infrastructure."

ViewBoard Box is the ideal solution for upgrading existing displays to enable digital classrooms with myViewBoard Suite for better engagement and collaboration. It also offers centralized and secure control over display devices with myViewBoard Manager, the web-based device management system. The app allows IT administrators to remotely manage all connected devices, from changing device operation settings, broadcasting tailored messages on multiple devices, to tracking device metrics such as power or data usage, all can be done with a click on the dashboard.

Simply connecting to any displays via HDMI, the ViewBoard Box transforms the display into a powerful and interactive device instantly and delivers immersive teaching and learning experiences through myViewBoard. This comprehensive software suite contains digital whiteboarding tools, a vast range of rich digital education content in myViewBoard Clips and Originals, as well as wireless screen sharing with myViewBoard Display to make group collaboration easier.

With its Hexa-core CPU performance and palm-sized form factor, the ViewBoard Box is powered by PoE (Power over Ethernet), eliminating the need for a separate power supply, and keeping spaces clutter-free. This simplifies installations and saves additional resources and manpower required to run new cables.

About ViewSonic

Founded in California, ViewSonic is a leading global provider of visual solutions and conducts business in over 100 countries worldwide. As an innovator and visionary, ViewSonic is committed to providing comprehensive hardware and software solutions that include monitors, projectors, digital signage, ViewBoard interactive displays, and myViewBoard software ecosystem. With over 30 years of expertise in visual displays, ViewSonic has established a strong position for delivering innovative and reliable solutions for education, enterprise, consumer, and professional markets and helping customers "See the Difference." To find out more about ViewSonic, please visit www.viewsonic.com.

Related Links :

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PR Newswire

China Online Education Group Announces Second Quarter 2021 Results

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Second quarter active students increased by 35.7% year-over-year

Second quarter revenue increased by 17.5% year-over-year

BEIJING, Sept. 28, 2021 — China Online Education Group ("51Talk" or the "Company") (NYSE: COE), a leading online education platform in China, with core expertise in English education, announced its unaudited financial results for the second quarter ended June 30, 2021.

Second Quarter 2021 Financial and Operating Metrics

  • Net revenues were RMB579.8 million (US$89.8 million), a 17.5% increase from RMB493.5 million for the second quarter of 2020.
  • Gross margin was 72.7%, compared with 70.9% for the second quarter of 2020.
  • Net loss was RMB27.0 million (US$4.2 million), compared with net income of RMB32.8 million for the second quarter of 2020.
  • Non-GAAP net loss[1] was RMB17.8 million (US$2.8 million), compared with non-GAAP net income of RMB39.6 million for the second quarter of 2020.
  • Operating cash outflow was RMB69.7 million (US$10.8 million), compared with RMB172.1 million of operating cash inflow for the second quarter of 2020.
  • Cash, cash equivalents, time deposits and short-term investments balance stood at RMB1,642.8 million (US$254.4 million) as of June 30, 2021.
  • Gross billings[2] were RMB549.9 million (US$85.2 million), an 18.7% decrease from RMB676.4 million for the second quarter of 2020.

Key Financial and Operating Data

For the three months ended

Jun. 30,

Jun. 30,

Y-o-Y

2020

2021

Change

Net Revenues (in RMB millions)

493.5

579.8

17.5%

K-12 one-on-one mass market offering

417.9

534.6

27.9%

K-12 small class offering

28.5

16.8

(41.1%)

Others

47.1

28.4

(39.7%)

Gross billings (in RMB millions)

676.4

549.9

(18.7%)

K-12 one-on-one mass market offering

612.5

516.0

(15.8%)

        K-12 small class offering

42.4

17.4

(59.0%)

Others

21.5

16.5

(23.3%)

Active students[3] (in thousands)

298.2

404.7

35.7%

 

[1] For more information on non-GAAP financial measures, please see the section of "Use of Non-GAAP Financial Measures" and the table captioned "Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures" set forth in this press release.

[2] Gross billings for a specific period, which is one of the Company’s key operating data, is defined as the total amount of cash received for the sale of course packages and services in such period, net of the total amount of refunds in such period.

[3] An "active student" for a specified period refers to a student who booked at least one paid lesson, excluding those students who only attended paid live broadcasting lessons or trial lessons.

"Our second quarter net revenue reached RMB579.8 million, primarily driven by a 35.7% year-over-year increase in the number of active students," said Mr. Jack Jiajia Huang, Founder, Chairman and Chief Executive Officer of 51Talk.

"On July 24, 2021, relevant Chinese authorities issued the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education ("the Opinion"), which contains high-level policy directives about requirements and restrictions related to online and offline after-school tutoring services. Aligned with the Opinion’s directives and requirements, 51Talk launched brand new All-round Proficiency Courses in small class format for children and teenagers led by Chinese teachers. Meanwhile, we plan to develop our overseas business by offering one-on-one classes for international K-12 and adult student users taught by foreign teachers.

"Where there are new challenges, there will also be new opportunities. In keeping with the revised framework and regulations for our industry, we will continue to innovate our course offerings and explore growth opportunities." Concluded Mr. Huang.

"We recorded a 17.5% increase of net revenue and a 20.5% increase of gross profit on a year-over-year basis," said Mr. Min Xu, Chief Financial Officer of 51Talk. "Net loss for the second quarter was RMB27.0 million, attributable mainly to higher operating expenses incurred as we spent efforts in brand building and upgrading courses offerings and services. Under the new regulations, the Company has taken actions to adapt to the latest operating environment and will take further measures to improve operating efficiency. Looking ahead, we will continue to create value for our students and teachers while conforming to all laws and regulations."

Second Quarter 2021 Financial Results

Net Revenues

Net revenues for the second quarter of 2021 were RMB579.8 million (US$89.8 million), a 17.5% increase from RMB493.5 million for the same quarter last year. The increase was primarily attributed to an increase in the number of active students, partially offset by a decrease in average revenue per active student. The number of active students in the second quarter of 2021 was 404,700, a 35.7% increase from 298,200 for the same quarter last year.

Cost of Revenues

Cost of revenues for the second quarter of 2021 was RMB158.1 million (US$24.5 million), a 10.2% increase from RMB143.6 million for the same quarter last year. The increase was primarily driven by an increase in total service fees paid to teachers, mainly due to an increased number of paid lessons.

Gross Profit and Gross Margin

Gross profit for the second quarter of 2021 was RMB421.6 million (US$65.3 million), a 20.5% increase from RMB349.9 million for the same quarter last year.

Gross margin for the second quarter of 2021 was 72.7%, compared with 70.9% for the same quarter last year. The increase was mainly attributable to the decrease of the cost per lesson, partially offset by the decrease of the revenue per lesson.

Operating Expenses

Total operating expenses for the second quarter of 2021 were RMB461.0 million (US$71.4 million), a 38.7% increase from RMB332.4 million for the same quarter last year. The increase was mainly due to an increase in sales and marketing expenses.

Sales and marketing expenses for the second quarter of 2021 were RMB315.8 million (US$48.9 million), a 31.7% increase from RMB239.9 million for the same quarter last year. The increase was mainly due to higher sales personnel costs related to increases in both the number of personnel and average salary and higher marketing and branding expenses. Excluding share-based compensation expenses, non-GAAP sales and marketing expenses for the second quarter of 2021 were RMB313.4 million (US$48.5 million), a 32.0% increase from RMB237.4 million for the same quarter last year.

Product development expenses for the second quarter of 2021 were RMB65.0 million (US$10.1 million), a 68.4% increase from RMB38.6 million for the same quarter last year. The increase was primarily due to higher product development personnel costs related to increases in the number of personnel. Excluding share-based compensation expenses, non-GAAP product development expenses for the second quarter of 2021 were RMB63.4 million (US$9.8 million), a 71.5% increase from RMB37.0 million for the same quarter last year.

General and administrative expenses for the second quarter of 2021 were RMB80.2 million (US$12.4 million), a 48.7% increase from RMB53.9 million for the same quarter last year. The increase was primarily due to higher general and administrative personnel costs related to increases in both the number of personnel and average salary. Excluding share-based compensation expenses, non-GAAP general and administrative expenses for the second quarter of 2021 were RMB75.0 million (US$11.6 million), a 46.6% increase from RMB51.1 million for the same quarter last year.

Other income

The exemption for the value added tax (VAT) of consumer services has been stopped as of March 31, 2021. This exemption, which covers a wide range of consumer services, was part of the Chinese government’s effort to ease the burden of businesses affected by the COVID-19 pandemic. The income obtained by taxpayers from providing essential services shall be exempted from VAT. The favorable impact of such COVID-19 relief policies was nil and RMB7.0 million in the second quarter of 2021 and 2020 respectively.

On September 30, 2019, the Ministry of Finance and the State Taxation Administration announced that from October 1, 2019 to December 31, 2021, taxpayers engaging in the provision of essential services are allowed to deduct an extra 15% of the deductible input value-added tax for the current period from the payable value-added tax. The impact of the policy of additional value-added tax credit for the income generated by the essential services provided by enterprises was RMB5.6 million and RMB2.6 million in the second quarter of 2021 and 2020 respectively.

(Loss)/income from Operations

Operating loss for the second quarter of 2021 was RMB33.8 million (US$5.2 million), compared with operating income of RMB27.1 million for the same quarter last year. Operating margin for the second quarter was negative 5.8%, compared with operating margin of 5.5% for the same quarter last year.

Non-GAAP operating loss for the second quarter of 2021 was RMB24.5 million (US$3.8 million), compared with non-GAAP operating income of RMB34.0 million for the same quarter last year. Non-GAAP operating margin for the second quarter was negative 4.2%, compared with non-GAAP operating margin of 6.9% for the same quarter last year.

Net (loss)/income

Net loss for the second quarter of 2021 was RMB27.0 million (US$4.2 million), compared with net income of RMB32.8 million for the same quarter last year. Net margin for the second quarter was negative 4.7%, compared with net margin of 6.6% for the same quarter last year.

Non-GAAP net loss for the second quarter of 2021 was RMB17.8 million (US$2.8 million), compared with non-GAAP net income of RMB39.6 million for the same quarter last year. Non-GAAP net margin for the second quarter was negative 3.1%, compared with non-GAAP net margin of 8.0% for the same quarter last year.

Income tax expense for the second quarter of 2021 was RMB2.9 million.

Basic net loss per share attributable to ordinary shareholders for the second quarter of 2021 was RMB0.08 (US$0.01), compared with basic net income per share of RMB0.10 for the same quarter last year. Diluted net loss per share attributable to ordinary shareholders for the second quarter of 2021 was RMB0.08 (US$0.01), compared with diluted net income per share of RMB0.10 for the same quarter last year.

Non-GAAP basic net loss per share attributable to ordinary shareholders for the second quarter of 2021 was RMB0.05 (US$0.01), compared with non-GAAP basic net income per share attributable to ordinary shareholders of RMB0.12 for the same quarter last year. Non-GAAP diluted net loss per share attributable to ordinary shareholders for the second quarter of 2021 was RMB0.05 (US$0.01), compared with non-GAAP diluted net income per share attributable to ordinary shareholders of RMB0.12 for the same quarter last year.

Basic and diluted net loss per American depositary share ("ADS") attributable to ordinary shareholders for the second quarter of 2021 was RMB1.24 (US$0.19), compared with basic net income per ADS of RMB1.55 and diluted net income per ADS of RMB1.44 for the same quarter last year. Each ADS represents 15 Class A ordinary shares.

Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders for the second quarter of 2021 was RMB0.82 (US$0.13), compared with non-GAAP basic net income per ADS attributable to ordinary shareholders of RMB1.87 and diluted net income per ADS of RMB1.75 for the same quarter last year.

Balance Sheet

As of June 30, 2021, the Company had total cash, cash equivalents, time deposits and short-term investments of RMB1,642.8 million (US$254.4 million), compared with RMB1,727.7 million as of December 31, 2020. As a part of cash, cash equivalents, time deposits and short-term investments, the Company had non-current time deposits of RMB412.0 million (US$63.8 million), compared with RMB414.0 million as of December 31, 2020.

As of June 30, 2021, the Company has a consolidated net current liability of RMB1,440.4 million, compared with net current liability of RMB1,400.4 million as of December 31, 2020. The Company had advances from students[4] (current and non-current) of RMB2,695.0 million (US$417.4 million) as of June 30, 2021, compared with RMB2,721.0 million as of December 31, 2020.

[4] "Advances from students," which is defined as the amount of obligation to transfer good or service to students or business partners for which consideration has been received from students in advance. The deposits from students are also presented in the total amount of "advances from students".

Subsequent Events

Based on the management’s assessments, as a result of the changing regulatory environment and the business adjustment plan taken by the Company, impairment of long-lived assets and reversal of interest income recognized for time deposit are expected to be recognized in subsequent period.

Outlook

For the third quarter of 2021, the Company currently expects net revenues to be between RMB550.0 million and RMB555.0 million, which would represent an increase of approximately 2.1% to 3.1% from RMB538.5 million for the same quarter last year.

The above outlook is based on current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

In addition, the Company’s future operational and financial performance depends on the future development of the implementation of the Opinion and the success of the Company’s business adjustment plans, which is subject to inherent uncertainties at this time.

Conference Call

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on September 28, 2021 (8:00 PM Beijing/Hong Kong time on September 28, 2021).

Dial-in details for the earnings conference call are as follows:

United States (toll free):

1-888-394-8218

International:

1-323-701-0225

Mainland China:

400-120-9101

Hong Kong (toll free):

800-961-105

Hong Kong:

852-3008-1527

Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for "China Online Education Group."

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.51talk.com.

A replay of the conference call will be accessible until September 28, 2021, by dialing the following telephone numbers:

United States (toll free):

1-888-203-1112

International:

1-719-457-0820

Replay Access Code:

6658686

About China Online Education Group

China Online Education Group (NYSE: COE) is a leading online education platform in China, with core expertise in English education. The Company’s mission is to make quality education accessible and affordable. The Company’s online and mobile education platforms enable students across China to take live interactive English lessons with overseas foreign teachers, on demand. The Company connects its students with a large pool of highly qualified foreign teachers that it assembled using a shared economy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students.

Use of Non-GAAP Financial Measures

In evaluating its business, 51Talk considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP sales and marketing expenses, non-GAAP product development expenses, non-GAAP general and administrative expenses, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) attributable to ordinary shareholders, and non-GAAP net income/(loss) attributable to ordinary shareholders per share and per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this press release.

51Talk believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. 51Talk believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to 51Talk’s historical performance. 51Talk computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. 51Talk believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation expenses that have been and will continue to be for the foreseeable future a significant recurring expense in the 51Talk’s business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying table at the end of this press release provides more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.4566 to US$1.00, the rate in effect as of June 30, 2021as certified for customs purposes by the Federal Reserve Bank of New York.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "aims", "future", "intends", "plans", "believes", "estimates", "likely to" and similar statements. Among other things, 51Talk’s quotations from management in this announcement, as well as 51Talk’s strategic and operational plans, contain forward-looking statements. 51Talk may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about 51Talk’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: 51Talk’s goals and strategies; 51Talk’s expectations regarding demand for and market acceptance of its brand and platform; 51Talk’s ability to retain and increase its student enrollment; 51Talk’s ability to offer new courses; 51Talk’s ability to engage, train and retain new teachers; 51Talk’s future business development, results of operations and financial condition; 51Talk’s ability to maintain and improve infrastructure necessary to operate its education platform; competition in the online education industry in China; the expected growth of, and trends in, the markets for 51Talk’s course offerings in China; relevant government policies and regulations relating to 51Talk’s corporate structure, business and industry; general economic and business condition in China, the Philippines and elsewhere and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in 51Talk’s filings with the SEC. All information provided in this press release is as of the date of this press release, and 51Talk does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

CHINA ONLINE EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 As of

Dec. 31,

Jun. 30

Jun. 30,

2020

2021

2021

RMB

RMB

US$

ASSETS

Current assets

Cash and cash equivalents

326,647

341,858

52,947

Time deposits

477,408

501,025

77,599

Short-term investments

509,636

387,886

60,076

Inventory

1,935

1,941

301

Prepaid expenses and other current assets

302,057

327,458

50,717

Total current assets

1,617,683

1,560,168

241,640

Non-current assets

Property and equipment, net

21,175

39,932

6,185

Intangible assets, net

20,302

34,719

5,377

Goodwill

4,223

10,209

1,581

Right-of-use assets

98,001

104,021

16,111

Time deposits

414,000

412,000

63,811

Deferred tax assets

10,268

5,300

821

Other non-current assets

23,896

29,730

4,605

Total non-current assets

591,865

635,911

98,491

Total assets

2,209,548

2,196,079

340,131

LIABILITIES

AND SHAREHOLDERS’ DEFICIT

Current liabilities

Advances from students

2,718,776

2,693,341

417,145

Accrued expenses and other current liabilities

237,101

232,034

35,937

Lease liability

42,949

52,097

8,069

Taxes payable

19,288

23,054

3,571

Total current liabilities

3,018,114

3,000,526

464,722

Non-current liabilities

Advances from students

2,270

1,690

262

Deferred tax liabilities

–

3,738

579

Lease liability

53,594

53,929

8,353

Other non-current liabilities

2,508

2,834

439

Total non-current liabilities

58,372

62,191

9,633

Total liabilities

3,076,486

3,062,717

474,355

Total shareholders’ deficit

(866,938)

(866,638)

(134,224)

Total liabilities and shareholders’ deficit

2,209,548

2,196,079

340,131

 

 

CHINA ONLINE EDUCATION GROUP

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(In thousands except for number of shares and per share data)

For the three months ended

For the six months ended

Jun. 30,

Mar. 31,

Jun. 30,

Jun. 30,

Jun. 30,

Jun. 30,

Jun. 30,

2020

2021

2021

2021

2020

2021

2021

RMB

RMB

RMB

US$

RMB

RMB

US$

Net revenues

493,471

600,404

579,751

89,792

980,555

1,180,155

182,783

Cost of revenues

(143,560)

(159,713)

(158,133)

(24,492)

(287,591)

(317,846)

(49,228)

Gross profit

349,911

440,691

421,618

65,300

692,964

862,309

133,555

Operating expenses

Sales and marketing expenses

(239,894)

(318,944)

(315,832)

(48,916)

(468,281)

(634,776)

(98,314)

Product development expenses

(38,616)

(57,726)

(65,029)

(10,072)

(74,483)

(122,755)

(19,012)

General and administrative
expenses

(53,902)

(69,208)

(80,172)

(12,417)

(104,591)

(149,380)

(23,136)

Total operating expenses

(332,412)

(445,878)

(461,033)

(71,405)

(647,355)

(906,911)

(140,462)

Other income

9,628

11,094

5,615

870

26,389

16,709

2,588

Income/(loss) from operations

27,127

5,907

(33,800)

(5,235)

71,998

(27,893)

(4,319)

Interest income

8,735

11,620

10,737

1,663

16,312

22,357

3,463

Interest expenses and other
expenses, net

(1,337)

(3,408)

(1,046)

(162)

(1,546)

(4,454)

(690)

Income/(loss) before income tax
expenses

34,525

14,119

(24,109)

(3,734)

86,764

(9,990)

(1,546)

Income tax expenses

(1,759)

(6,097)

(2,907)

(450)

(3,206)

(9,004)

(1,395)

Net income/(loss), all
attributable to the Company’s
ordinary shareholders

32,766

8,022

(27,016)

(4,184)

83,558

(18,994)

(2,941)

Weighted average number of
ordinary shares used in
computing basic earnings/(loss)
per share

317,793,905

322,796,828

326,390,311

326,390,311

315,495,702

324,603,496

324,603,496

Weighted average number of
ordinary shares used in
computing diluted 
earnings/(loss) per share

340,457,526

342,150,096

326,390,311

326,390,311

338,680,304

324,603,496

324,603,496

 

 

  CHINA ONLINE EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(In thousands except for number of shares and per share data)

For the three months ended

For the six months ended

Jun. 30,

Mar. 31,

Jun. 30,

Jun. 30,

Jun. 30,

Jun. 30,

Jun. 30,

2020

2021

2021

2021

2020

2021

2021

RMB

RMB

RMB

US$

RMB

RMB

US$

Net earnings/(loss) per share attributable to ordinary shareholders

Basic

0.10

0.02

(0.08)

(0.01)

0.26

(0.06)

(0.01)

diluted

0.10

0.02

(0.08)

(0.01)

0.25

(0.06)

(0.01)

Net earnings/(loss) per ADS attributable to ordinary shareholders

basic

1.55

0.37

(1.24)

(0.19)

3.97

(0.88)

(0.14)

diluted

1.44

0.35

(1.24)

(0.19)

3.70

(0.88)

(0.14)

Comprehensive income/(loss):

Net income/(loss)

32,766

8,022

(27,016)

(4,184)

83,558

(18,994)

(2,941)

Other comprehensive income/(loss)

Foreign currency translation
adjustments

917

1,802

(5,794)

(897)

5,461

(3,992)

(618)

Total comprehensive income/(loss)

33,683

9,824

(32,810)

(5,081)

89,019

(22,986)

(3,559)

Share-based compensation expenses are included in the operating expenses as follows:

Sales and marketing expenses

(2,447)

(2,487)

(2,433)

(377)

(4,749)

(4,920)

(762)

Product development expenses

(1,637)

(1,733)

(1,600)

(248)

(1,536)

(3,333)

(516)

General and administrative expenses

(2,785)

(4,516)

(5,222)

(809)

(6,785)

(9,738)

(1,508)

 

 

  CHINA ONLINE EDUCATION GROUP

Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures

(In thousands except for number of shares and per share data)

For the three months ended

For the six months ended

Jun. 30,

Mar. 31,

Jun. 30,

Jun. 30,

Jun. 30,

Jun. 30,

Jun. 30,

2020

2021

2021

2021

2020

2021

2021

RMB

RMB

RMB

US$

RMB

RMB

US$

Sales and marketing expenses

(239,894)

(318,944)

(315,832)

(48,916)

(468,281)

(634,776)

(98,314)

Less: Share-based compensation
expenses

(2,447)

(2,487)

(2,433)

(377)

(4,749)

(4,920)

(762)

Non-GAAP sales and marketing
expenses

(237,447)

(316,457)

(313,399)

(48,539)

(463,532)

(629,856)

(97,552)

Product development expenses

(38,616)

(57,726)

(65,029)

(10,072)

(74,483)

(122,755)

(19,012)

Less: Share-based compensation
expenses

(1,637)

(1,733)

(1,600)

(248)

(1,536)

(3,333)

(516)

Non-GAAP product development
expenses

(36,979)

(55,993)

(63,429)

(9,824)

(72,947)

(119,422)

(18,496)

General and administrative expenses

(53,902)

(69,208)

(80,172)

(12,417)

(104,591)

(149,380)

(23,136)

Less: Share-based compensation
expenses

(2,785)

(4,516)

(5,222)

(809)

(6,785)

(9,738)

(1,508)

Non-GAAP general and administrative
expenses

(51,117)

(64,692)

(74,950)

(11,608)

(97,806)

(139,642)

(21,628)

Operating expenses

(332,412)

(445,878)

(461,033)

(71,405)

(647,355)

(906,911)

(140,462)

Less: Share-based compensation
expenses

(6,869)

(8,736)

(9,255)

(1,434)

(13,070)

(17,991)

(2,786)

Non-GAAP operating expenses

(325,543)

(437,142)

(451,778)

(69,971)

(634,285)

(888,920)

(137,676)

Income/(loss) from operations

27,127

5,907

(33,800)

(5,235)

71,998

(27,893)

(4,319)

Less: Share-based compensation
expenses

(6,869)

(8,736)

(9,255)

(1,434)

(13,070)

(17,991)

(2,786)

Non-GAAP income/(loss) from
operations

33,996

14,643

(24,545)

(3,801)

85,068

(9,902)

(1,533)

 

 

 

CHINA ONLINE EDUCATION GROUP

Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures

 (In thousands except for number of shares and per share data)

For the three months ended

For the six months ended

Jun. 30,

Mar. 31,

Jun. 30,

Jun. 30,

Jun. 30,

Jun. 30,

Jun. 30,

2020

2021

2021

2021

2020

2021

2021

RMB

RMB

RMB

US$

RMB

RMB

US$

Income tax expenses

(1,759)

(6,097)

(2,907)

(450)

(3,206)

(9,004)

(1,395)

Less: Tax impact of Share-based
compensation expenses

–

–

–

–

–

–

–

Non-GAAP income tax expenses

(1,759)

(6,097)

(2,907)

(450)

(3,206)

(9,004)

(1,395)

Net income/(loss), all attributable to the
Company’s ordinary shareholders

32,766

8,022

(27,016)

(4,184)

83,558

(18,994)

(2,941)

Add back: Share-based compensation
expenses

6,869

8,736

9,255

1,434

13,070

17,991

2,786

Non-GAAP net income/(loss), all
attributable to the Company’s ordinary
shareholders

39,635

16,758

(17,761)

(2,750)

96,628

(1,003)

(155)

Weighted average number of ordinary
shares used in computing basic
earnings/(loss) per share

317,793,905

322,796,828

326,390,311

326,390,311

315,495,702

324,603,496

324,603,496

Weighted average number of ordinary
shares used in computing diluted
earnings/(loss) per share

340,457,526

342,150,096

326,390,311

326,390,311

338,680,304

324,603,496

324,603,496

Non-GAAP net earnings/(loss) per share attributable to
ordinary shareholders

basic

0.12

0.05

(0.05)

(0.01)

0.31

(0.00)

(0.00)

diluted

0.12

0.05

(0.05)

(0.01)

0.29

(0.00)

(0.00)

Non-GAAP net earnings/(loss) per ADS attributable to
ordinary shareholders

basic

1.87

0.78

(0.82)

(0.13)

4.59

(0.05)

(0.01)

diluted

1.75

0.73

(0.82)

(0.13)

4.28

(0.05)

(0.01)

 

 

PR Newswire

New Oriental Announces Filing of Annual Report on Form 20-F for Fiscal Year 2021

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BEIJING, Sept. 26, 2021 /PRNewswire-Asia/ New Oriental Education & Technology Group Inc. ("New Oriental" or the "Company") (NYSE: EDU and SEHK: 9901), the largest provider of private educational services in China, today announced that it filed its annual report on Form 20-F for the fiscal year ended May 31, 2021 with the Securities and Exchange Commission ("SEC") on September 24, 2021, U.S. Eastern Time. The annual report can be accessed on New Oriental’s investor relations website at http://investor.neworiental.org as well as the SEC’s website at http://www.sec.gov. New Oriental will provide a hard copy of the annual report containing its audited consolidated financial statements, free of charge, to its shareholders and ADS holders upon request.

The Company has also today published its annual report for Hong Kong purposes pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("HKEX"), which can be accessed on the Company’s investor relations website at http://investor.neworiental.org as well as the HKEX’s website at http://www.hkexnews.hk.

About New Oriental

New Oriental is the largest provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China. New Oriental’s program, service and product offerings consist of K-12 after-school tutoring, test preparation, language training for adults, pre-school education, primary and secondary school education, education materials and distribution, online education, and other services. New Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental’s ADSs, each of which represents one common share. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.

For more information about New Oriental, please visit http://www.neworiental.org/english/.

Contacts

For investor and media inquiries, please contact:

Ms. Rita Fong
FTI Consulting
Tel: +852 3768 4548
Email: rita.fong@fticonsulting.com

Ms. Sisi Zhao
New Oriental Education and Technology Group Inc. 
Tel: +86-10-6260-5568 
Email: zhaosisi@xdf.cn

Related Links :

http://english.neworiental.org

PR Newswire

Color Star Technology Co., Ltd. Announces Entry into Agreement for Registered Direct Placement of Approximately $21.5 Million Ordinary Shares and Warrants

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NEW YORK, Sept. 24, 2021 — Color Star Technology Co., Ltd. ("Color Star" or the "Company") (NASDAQ: CSCW), an entertainment technology company with a global network that focuses on the application of technology and artificial intelligence (AI) in the entertainment industry, today announced that it has entered into a securities purchase agreement with certain institutional investors for a registered direct offering of ordinary shares and warrants. Each unit consists of one ordinary share and one warrant to purchase 0.7 ordinary share. The purchase price per unit is $0.68. The gross proceeds from the sale of the securities, before deducting placement agent fees and other estimated offering expenses payable by the Company, will be approximately $21.5 million. The Company will issue to the investors an aggregate of 31,624,924 ordinary shares and warrants to purchase an aggregate of 22,137,446 ordinary shares. The Company will also issue a warrant to purchase 948,747 ordinary shares to the placement agent. The investor warrants and placement agent warrants are initially exercisable at $1.00 per share.

The net proceeds from this offering will be used for general corporate and working capital purposes. The completion of the placement is expected to occur on or about September 28, 2021, subject to the satisfaction of customary closing conditions.

FT Global Capital, Inc. is acting as the exclusive placement agent in connection with the offering.

The securities described above are being offering by Color Star. pursuant to a registration statement on Form F-3 (File No. 333-236616) that was previously filed with the Securities and Exchange Commission (SEC) and declared effective on March 10, 2020. Such shares of common stock and warrants may be offered only by means of a prospectus, including a prospectus supplement. A prospectus supplement and accompanying prospectus related to the offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

For further information regarding this transaction, please see the Form 6-K to be filed with the SEC.

About Color Star Technology

Color Star Technology Co, Ltd. (Nasdaq CM: CSCW) is an entertainment and education company that provides online entertainment performances and online music education services. Its business operations are conducted through its wholly-owned subsidiaries Color China Entertainment Ltd. and CACM Group NY, Inc. The Company’s online education is provided through its Color World music and entertainment education platform. More information about the Company can be found at www.colorstarinternational.com.

Forward-Looking Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements.  Forward-looking statements are not guarantee of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following:  the Company’s goals and strategies; the Company’s future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the educational and training services market in China and other countries where CSCW conducts its business; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission.  For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof unless required by applicable laws, regulations or rules.

 

PR Newswire

uCloudlink Cooperates with Singapore EdTech Company JULES to Bring Fail-proof Connection Solution to the Education Sector

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Using HyperConn™, the company provides reliable internet connections to allow students to enjoy uninterrupted learning.

HONG KONG, Sept. 3, 2021 — UCLOUDLINK GROUP INC. (NASDAQ: UCL, "uCloudlink"), a company offering the better connection solution to everyone globally via its innovative technology, has joined forces with JULES Corporation Pte Ltd ("JULES"), a Singapore Social-Enterprise and award-winning global software Education Technology company, in exploring ways to solve the pain point of schools, parents and students to allow young students to stay connected at home by way of its powerful HyperConn™ solution as a demonstration of what is possible for the education sector.

In a recent UNICEF report with International Telecommunication Union (ITU), up to two-thirds of students of the world’s school-age children do not have internet connections. The problem has escalated during the heights of the COVID pandemic when online school is not only an option, but the only choice in many regions for an extended period of time.

"Internet connection became a must-have in this new normal. For online learning, reliable equipment like computers and iPads are not enough, a reliable internet connection is also crucial. Poor internet connections and online congestion will occur from time to time under the circumstance of a network supported by one single operator. uCloudlink’s HyperConn™ solution will make use of all WiFi/5G/4G wireless networks, which enables it to provide a good and uninterrupted network connection," said Chaohui Chen, CEO of uCloudlink. "We believe by widely adopting a flexible, reliable and efficient technology, remote schooling will be significantly improved by delivering students an undisrupted and focused learning experience."

"During the pandemic, we have seen millions of students around the world grappled with bad internet services which severely affected their academic performance. We believe uCloudlink’s HyperConn™ solution, which has brought so much convenience to the frequent travellers and businesspersons who are in need of fast-speed internet unbound by locations and time, will also be an easy and affordable answer to this problem for students, parents and educators alike," said Mr. Jonathan Chan, Founder and CEO of Jules.

uCloudlink’s HyperConn™ ensures an uninterrupted network connection at all times, no matter the environment and conditions. By leveraging AI to determine the most effective network coverage based on a user’s present location, internet usage and performance of all broadband networks available, HyperConn™ ensures that users enjoy the better network connection possible at all times. This dynamic and seamless switching also guarantees the network will never fail regardless of what apps are open, how many people are using the connection, or where a user is.

The COVID-19 pandemic has not only put the potentials of online education but also exposed the flaws the digital learning which is amplified by the over-stretched Wi-Fi or poor internet connections due to online congestion. Using uCloudlink’s HyperConn™ solution, the partnership of uCloudlink and Jules aims to address this challenge, keep teachers and students staying connected amid the pandemic and beyond and free students from the limits of traditional home broadband connection, the unstable internet coverage at public facilities as well as the pain of poor mobile internet while parents and kids are on the go.

About UCLOUDLINK GROUP INC

uCloudlink is the world’s first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the telecommunications industry. The Company’s products and services deliver unique value propositions to mobile data users, handset and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing.

Contact:

Carina Cheung
carina-pr@ucloudlink.com
(852)21806111