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Dycom Industries, Inc. Announces Fiscal 2022 Third Quarter Results

PALM BEACH GARDENS, Fla., Nov. 23, 2021 (GLOBE NEWSWIRE) — Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter and nine months ended October 30, 2021.

Third Quarter Fiscal 2022 Highlights

  • Contract revenues of $854.0 million for the quarter ended October 30, 2021, compared to $810.3 million for the quarter ended October 24, 2020. Contract revenues increased 6.6% on an organic basis after excluding $8.9 million in contract revenues from storm restoration services for the quarter ended October 24, 2020.
  • Non-GAAP Adjusted EBITDA of $83.1 million, or 9.7% of contract revenues, for the quarter ended October 30, 2021, compared to $92.8 million, or 11.5% of contract revenues, for the quarter ended October 24, 2020.
  • On a GAAP basis, net income was $28.7 million, or $0.94 per common share diluted, for the quarter ended October 30, 2021, compared to $33.9 million, or $1.05 per common share diluted, for the quarter ended October 24, 2020. Non-GAAP Adjusted Net Income was $29.0 million, or $0.95 per common share diluted, for the quarter ended October 30, 2021, compared to $34.4 million, or $1.06 per common share diluted, for the quarter ended October 24, 2020. GAAP net income and Non-GAAP Adjusted Net Income for the quarter ended October 30, 2021 includes approximately $3.0 million, or $0.10 per common share diluted, of incremental tax benefits for credits related to tax filings for prior periods.
  • The Company repaid the aggregate principal of $58.3 million to satisfy and discharge the indenture governing the 0.75% convertible senior notes (the “2021 Convertible Notes”) at maturity in September 2021.
  • As of October 30, 2021, the Company had cash and equivalents of $263.7 million, no outstanding borrowings on its revolving line of credit, $350.0 million principal amount of term loan outstanding, and $500.0 million aggregate principal amount of 4.50% senior notes due April 2029 (the “2029 Notes”) outstanding.

Year-to-Date Fiscal 2022 Highlights

  • Contract revenues of $2.369 billion for the nine months ended October 30, 2021, compared to $2.449 billion for the nine months ended October 24, 2020. Contract revenues decreased 3.1% on an organic basis after excluding $3.9 million and $8.9 million in contract revenues from storm restoration services for the nine months ended October 30, 2021 and October 24, 2020, respectively.
  • Non-GAAP Adjusted EBITDA of $201.0 million, or 8.5% of contract revenues, for the nine months ended October 30, 2021, compared to $265.3 million, or 10.8% of contract revenues, for the nine months ended October 24, 2020.
  • On a GAAP basis, net income was $47.8 million, or $1.54 per common share diluted, for the nine months ended October 30, 2021, compared to $38.5 million, or $1.20 per common share diluted, for the nine months ended October 24, 2020. Non-GAAP Adjusted Net Income was $46.2 million, or $1.50 per common share diluted, for the nine months ended October 30, 2021, compared to $83.7 million, or $2.61 per common share diluted, for the nine months ended October 24, 2020.
  • During the nine months ended October 30, 2021, the Company issued $500.0 million in aggregate principal amount of 2029 Notes, amended its senior credit facility to extend the maturity to April 2026 and resize capacity, and, with a portion of the net proceeds from the 2029 Notes offering and available cash, repaid $105.0 million of revolver borrowings and $71.9 million of term loan borrowings. Additionally, the Company repaid the aggregate principal of $58.3 million to satisfy and discharge the indenture governing the 2021 Convertible Notes at maturity in September 2021.

Outlook

The Company expects contract revenues for the quarter ending January 29, 2022 to increase modestly from Non-GAAP Organic Contract Revenues of $691.8 million for the quarter ended January 30, 2021. Non-GAAP Organic Contract Revenues for the quarter ended January 30, 2021 excluded $5.7 million in contract revenues from storm restoration services and $53.2 million for the additional week of operations as a result of the Company’s 52/53 week fiscal year. Non-GAAP Adjusted EBITDA is expected to range from in-line to modestly higher as a percentage of contract revenues for the quarter ending January 29, 2022 as compared to the quarter ended January 30, 2021. For additional information regarding the Company’s outlook, please see the presentation materials available on the Company’s website posted in connection with the conference call discussed below.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, the Company may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. See Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures in the press release tables that follow.

Conference Call Information and Other Selected Data

The Company will host a conference call to discuss fiscal 2022 third quarter results on Tuesday, November 23, 2021 at 9:00 a.m. Eastern time. A live webcast of the conference call and related materials will be available on the Company’s Investor Center website at https://ir.dycomind.com. Parties interested in participating via telephone should dial (833) 519-1313 (United States) or (914) 800-3879 (International) with the conference ID 9597111, ten minutes before the conference call begins. For those who cannot participate at the scheduled time, a replay of the live webcast and the related materials will be available at https://ir.dycomind.com for approximately 120 days following the event.

About Dycom Industries, Inc.

Dycom is a leading provider of specialty contracting services throughout the United States. These services include program management; planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers. Additionally, Dycom provides underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities.

Forward Looking Information

This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These statements include those related to the outlook for the quarter ending January 29, 2022 found under the “Outlook” section of this release. These statements are subject to change. Forward-looking statements are based on management’s current expectations, estimates and projections. These statements are subject to risks and uncertainties that may cause actual results for completed periods and periods in the future to differ materially from the results projected or implied in any forward-looking statements contained in this press release. The most significant of these risks and uncertainties are described in the Company’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) and include the duration and severity of a pandemic caused by COVID-19, our ability to comply with various COVID-19 legal and contractual requirements and the impacts that those requirements may have on our workforce and our ability to perform our work, vaccination rates in the areas where we operate, any worsening of the pandemic caused by increasing infection rates triggered by new variants, future economic conditions and trends including the potential impacts of an inflationary economic environment, customer capital budgets and spending priorities, the availability and cost of materials, equipment and labor necessary to perform our work, the adequacy of the Company’s insurance and other reserves and allowances for doubtful accounts, whether the carrying value of the Company’s assets may be impaired, the future impact of any acquisitions or dispositions, adjustments and cancellations of the Company’s projects, the related impact to the Company’s backlog from project cancellations, weather conditions, the anticipated outcome of other contingent events, including litigation, liquidity and other financial needs, the availability of financing, the Company’s ability to generate sufficient cash to service its indebtedness, restrictions imposed by the Company’s credit agreement, and the other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update forward-looking statements.

For more information, contact:

Callie Tomasso, Investor Relations
Email: [email protected]
Phone: (561) 627-7171

—Tables Follow—

 
 
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Unaudited
       
  October 30, 2021   January 30, 2021
ASSETS      
Current assets:      
Cash and equivalents $ 263,701     $ 11,770  
Accounts receivable, net 959,741     858,123  
Contract assets 110,685     197,110  
Inventories 69,876     70,849  
Income tax receivable 7,502     1,706  
Other current assets 37,498     29,072  
Total current assets 1,449,003     1,168,630  
       
Property and equipment, net 284,246     273,960  
Operating lease right-of-use assets 61,993     63,179  
Goodwill and other intangible assets, net 378,349     391,807  
Other assets 31,104     46,589  
Total assets $ 2,204,695     $ 1,944,165  
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $ 173,599     $ 158,966  
Current portion of debt 13,125     81,722  
Contract liabilities 13,943     14,101  
Accrued insurance claims 39,933     41,736  
Operating lease liabilities 24,614     24,769  
Income taxes payable 6     6,387  
Other accrued liabilities 127,933     120,809  
Total current liabilities 393,153     448,490  
       
Long-term debt 827,226     501,562  
Accrued insurance claims – non-current 51,339     70,224  
Operating lease liabilities – non-current 37,211     38,359  
Deferred tax liabilities, net – non-current 56,362     47,650  
Other liabilities 28,630     26,572  
Total liabilities 1,393,921     1,132,857  
       
Total stockholders’ equity 810,774     811,308  
Total liabilities and stockholders’ equity $ 2,204,695     $ 1,944,165  
       

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share amounts)
Unaudited
               
  Quarter   Quarter   Nine Months   Nine Months
  Ended   Ended   Ended   Ended
  October 30, 2021   October 24, 2020   October 30, 2021   October 24, 2020
Contract revenues $ 853,973       $ 810,256       $ 2,369,038       $ 2,448,500    
               
Costs of earned revenues, excluding depreciation and amortization 705,865       658,355       1,977,243       1,996,514    
General and administrative1 66,899       62,628       198,640       195,871    
Depreciation and amortization 37,766       42,313       115,307       132,313    
Goodwill impairment charge2 —       —       —       53,264    
Total 810,530       763,296       2,291,190       2,377,962    
               
Interest expense, net3 (9,132 )     (4,710 )     (24,343 )     (25,020 )  
(Loss) gain on debt extinguishment4 —       —       (62 )     12,046    
Other income, net 564       3,708       4,267       7,921    
Income before income taxes 34,875       45,958       57,710       65,485    
               
Provision for income taxes5 6,158       12,032       9,930       26,953    
               
Net income $ 28,717       $ 33,926       $ 47,780       $ 38,532    
               
Earnings per common share:              
               
Basic earnings per common share $ 0.95       $ 1.06       $ 1.57       $ 1.21    
               
Diluted earnings per common share $ 0.94       $ 1.05       $ 1.54       $ 1.20    
               
Shares used in computing earnings per common share:        
               
Basic 30,172,254       31,878,583       30,426,337       31,744,199    
               
Diluted 30,614,706       32,425,300       30,928,890       32,106,661    
               

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO COMPARABLE GAAP FINANCIAL MEASURES
(Dollars in thousands)
Unaudited
 
CONTRACT REVENUES, NON-GAAP ORGANIC CONTRACT REVENUES, AND GROWTH (DECLINE) %’s
                   
  Contract Revenues – GAAP   Revenues from storm restoration services   Non-GAAP

– Organic Contract Revenues 		  GAAP – Organic Growth (Decline) %   Non-GAAP – Organic Growth (Decline) %
Quarter Ended October 30, 2021 $ 853,973     $ —       $ 853,973     5.4   %   6.6   %
                   
Quarter Ended October 24, 2020 $ 810,256     $ (8,894 )     $ 801,362          
                   
Nine Months Ended October 30, 2021 $ 2,369,038     $ (3,869 )     $ 2,365,169     (3.2 ) %   (3.1 ) %
                   
Nine Months Ended October 24, 2020 $ 2,448,500     $ (8,894 )     $ 2,439,606          
                                 

NON-GAAP ORGANIC CONTRACT REVENUES FOR COMPARATIVE PURPOSES TO THE Q4 2022 OUTLOOK:
               
  Contract Revenues – GAAP   Revenues from storm restoration services   Additional week as a result of the Company’s 52/53 week fiscal year   Non-GAAP

– Organic Contract Revenues
Quarter Ended January 30, 20216 $ 750.7     $ (5.7 )     $ (53.2 )     $ 691.8  
                                   

NET INCOME AND NON-GAAP ADJUSTED EBITDA
               
  Quarter   Quarter   Nine Months   Nine Months
  Ended   Ended   Ended   Ended
  October 30, 2021   October 24, 2020   October 30, 2021   October 24, 2020
Reconciliation of net income to Non-GAAP Adjusted EBITDA:              
Net income $ 28,717       $ 33,926       $ 47,780       $ 38,532    
Interest expense, net 9,132       4,710       24,343       25,020    
Provision for income taxes 6,158       12,032       9,930       26,953    
Depreciation and amortization 37,766       42,313       115,307       132,313    
Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) 81,773       92,981       197,360       222,818    
Gain on sale of fixed assets (415 )     (4,001 )     (4,259 )     (9,207 )  
Stock-based compensation expense 1,789       3,796       7,838       10,490    
Loss (gain) on debt extinguishment4 —       —       62       (12,046 )  
Goodwill impairment charge2 —       —       —       53,264    
Non-GAAP Adjusted EBITDA $ 83,147       $ 92,776       $ 201,001       $ 265,319    
Non-GAAP Adjusted EBITDA % of contract revenues 9.7    %   11.5    %   8.5   %   10.8   %
               

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)
(Dollars in thousands, except share amounts)
Unaudited
               
NET INCOME, NON-GAAP ADJUSTED NET INCOME, DILUTED EARNINGS PER COMMON SHARE, AND NON-GAAP ADJUSTED DILUTED EARNINGS PER COMMON SHARE
               
  Quarter   Quarter   Nine Months   Nine Months
  Ended   Ended   Ended   Ended
  October 30, 2021   October 24, 2020   October 30, 2021   October 24, 2020
Reconciliation of net income to Non-GAAP Adjusted Net Income:              
Net income $ 28,717       $ 33,926       $ 47,780       $ 38,532    
               
Pre-Tax Adjustments:              
Non-cash amortization of debt discount on 2021 Convertible Notes 337       643       1,665       6,732    
Loss (gain) on debt extinguishment4 —       —       62       (12,046 )  
Goodwill impairment charge2 —       —       —       53,264    
               
Tax Adjustments:              
Tax impact for the vesting and exercise of share-based awards (1 )     (33 )     (2,794 )     (241 )  
Tax effect from net operating loss carryback under enacted CARES Act5 —       —       —       (2,631 )  
Tax impact of pre-tax adjustments (91 )     (177 )     (466 )     113    
Total adjustments, net of tax 245       433       (1,533 )     45,191    
               
Non-GAAP Adjusted Net Income $ 28,962       $ 34,359       $ 46,247       $ 83,723    
               
Reconciliation of diluted earnings per common share to Non-GAAP Adjusted Diluted Earnings per Common Share:              
GAAP diluted earnings per common share $ 0.94       $ 1.05       $ 1.54       $ 1.20    
Total adjustments, net of tax 0.01       0.01       (0.04 )     1.41    
Non-GAAP Adjusted Diluted Earnings per Common Share $ 0.95       $ 1.06       $ 1.50       $ 2.61    
               
Shares used in computing Non-GAAP Adjusted Diluted Earnings per Common Share 30,614,706       32,425,300       30,928,890       32,106,661    
               
Amounts in table above may not add due to rounding.        
         

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)

Explanation of Non-GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company’s quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, it may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. The Company believes that the presentation of certain Non-GAAP financial measures in these materials provides information that is useful to investors because it allows for a more direct comparison of the Company’s performance for the period reported with the Company’s performance in prior periods. The Company cautions that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. Management defines the Non-GAAP financial measures used as follows:

  • Non-GAAP Organic Contract Revenues – contract revenues from businesses that are included for the entire period in both the current and prior year periods, excluding contract revenues from storm restoration services, adjusted for the additional week in the fourth quarter of fiscal 2021, the quarter ended January 30, 2021, as a result of the Company’s 52/53 week fiscal year. Non-GAAP Organic Contract Revenue change percentage is calculated as the change in Non-GAAP Organic Contract Revenues from the comparable prior year period divided by the comparable prior year period Non-GAAP Organic Contract Revenues. Management believes Non-GAAP Organic Contract Revenues is a helpful measure for comparing the Company’s revenue performance with prior periods.

  • Non-GAAP Adjusted EBITDA – net income before interest, taxes, depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense, and certain non-recurring items. Management believes Non-GAAP Adjusted EBITDA is a helpful measure for comparing the Company’s operating performance with prior periods as well as with the performance of other companies with different capital structures or tax rates.

  • Non-GAAP Adjusted Net Income – GAAP net income before the non-cash amortization of the debt discount and the related tax impact, certain tax impacts resulting from vesting and exercise of share-based awards, and certain non-recurring items. Management believes Non-GAAP Adjusted Net Income is a helpful measure for comparing the Company’s operating performance with prior periods.

  • Non-GAAP Adjusted Diluted Earnings per Common Share – Non-GAAP Adjusted Net Income divided by weighted average diluted shares outstanding.

Management excludes or adjusts each of the items identified below from Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings per Common Share:

  • Non-cash amortization of debt discount on 2021 Convertible Notes – The Company’s 2021 Convertible Notes were allocated between debt and equity components. The difference between the principal amount and the carrying amount of the liability component of the 2021 Convertible Notes represents a debt discount. The debt discount is amortized over the term of the 2021 Convertible Notes but does not result in periodic cash interest payments. The Company excludes the non-cash amortization of the debt discount from its Non-GAAP financial measures because it believes it is useful to analyze the component of interest expense for the 2021 Convertible Notes that will be paid in cash. The exclusion of the non-cash amortization from the Company’s Non-GAAP financial measures provides management with a consistent measure for assessing financial results.

  • Goodwill impairment charge – During the nine months ended October 24, 2020, the Company incurred a goodwill impairment charge of $53.3 million for a reporting unit that performs installation services inside third party premises. Management believes excluding the goodwill impairment charge from the Company’s Non-GAAP financial measures assists investors’ overall understanding of the Company’s current financial performance and provides management with a consistent measure for assessing the current and historical financial results.

  • Loss (gain) on debt extinguishment – During the nine months ended October 30, 2021, the Company recognized a loss on debt extinguishment of $0.1 million in connection with the amendment and restatement of its credit agreement maturing in April 2026. During the nine months ended October 24, 2020, the Company recognized a gain on debt extinguishment of $12.0 million in connection with its purchase of $401.7 million aggregate principal amount of the Company’s 2021 Convertible Notes for $371.4 million, including interest and fees. Management believes excluding the loss (gain) on debt extinguishment from the Company’s Non-GAAP financial measures assists investors’ overall understanding of the Company’s current financial performance and provides management with a consistent measure for assessing the current and historical financial results.

  • Tax impact of the vesting and exercise of share-based awards – The Company excludes certain tax impacts resulting from the vesting and exercise of share-based awards as these amounts may vary significantly from period to period. Excluding these amounts from the Company’s Non-GAAP financial measures provides management with a more consistent measure for assessing financial results.

  • Tax effect from a net operating loss carryback under enacted CARES Act – During the nine months ended October 24, 2020, the Company recognized an income tax benefit of $2.6 million from a net operating loss carryback under the enacted U.S. Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The Company excludes this impact because the Company believes it is not indicative of the Company’s underlying results or ongoing operations.

  • Tax impact of pre-tax adjustments – The tax impact of pre-tax adjustments reflects the Company’s estimated tax impact of specific adjustments and the effective tax rate used for financial planning for the applicable period.

Notes

 

1 Includes stock-based compensation expense of $1.8 million and $3.8 million for the quarters ended October 30, 2021 and October 24, 2020, respectively, and $7.8 million and $10.5 million for the nine months ended October 30, 2021 and October 24, 2020, respectively.

2 The Company incurred a goodwill impairment charge of $53.3 million during the nine months ended October 24, 2020 for a reporting unit that performs installation services inside third party premises.

3 Includes pre-tax interest expense for non-cash amortization of the debt discount associated with the 2021 Convertible Notes of $0.3 million and $0.6 million for the quarters ended October 30, 2021 and October 24, 2020, respectively, and $1.7 million and $6.7 million for the nine months ended October 30, 2021 and October 24, 2020, respectively.

4 During the nine months ended October 30, 2021, the Company recognized a loss on debt extinguishment of $0.1 million in connection with the amendment and restatement of its credit agreement maturing in April 2026.

During the nine months ended October 24, 2020, the Company purchased $401.7 million aggregate principal amount of its 2021 Convertible Notes for $371.4 million, including interest and fees. The purchase price was allocated between the debt and equity components of the 2021 Convertible Notes. Based on the net carrying amount of the 2021 Convertible Notes, the Company recognized a net gain on debt extinguishment of $12.0 million after the write-off of associated debt issuance costs. The Company also recognized the equity component of the settlement of the 2021 Convertible Notes.

5 For the quarter and nine months ended October 30, 2021, the provision for income taxes includes less than $0.1 million and $2.8 million, respectively, of income tax benefit for the vesting and exercise of share-based awards. For the quarter and nine months ended October 24, 2020, the provision for income taxes includes less than $0.1 million and $0.2 million, respectively, of income tax benefit for the vesting and exercise of share-based awards. Additionally, for the nine months ended October 24, 2020, the Company recognized an income tax benefit of $2.6 million from a net operating loss carryback under the enacted CARES Act.

6 The Company has a 52/53 week fiscal year. All quarter periods presented contain 13 weeks except for the quarter ended January 30, 2021, which contained an additional week of operations.

 



Posted on

Organigram Reports Fourth Quarter Fiscal 2021 Results

Organigram Reports Fourth Quarter Fiscal 2021 Results

Continued growth in net revenue and increased market share

  • Achieved a 7% share of market in the recreational cannabis market in Q4, up from 5.4% in Q3 2021, positioning Organigram as the #4 licensed producer and the momentum continues with a 7.9% share of market as of October.1
  • 24% growth in gross revenue to $36.2 million in Q4 2021 from Q3 2021 and 43% from the same prior-year period
  • 22% growth in net revenue to $24.9 million in Q4 2021 from Q3 2021 and 22% from the same prior-year period
  • 36% growth in recreational net revenue to $22.9 million in Q4 2021 from Q3 2021 and 52% from the same prior-year period
  • Launched 16 new stock-keeping units (SKUs) in the recreational channel
  • SHRED was the #1 most-searched brand on the Ontario Cannabis Store website (OCS.ca) for 11 out of the last 12 months. 2
  • Launched Edison JOLTS, an ingestible extract lozenge that is the #1 SKU 3 in its category
  • Launched SHRED’ems cannabis-infused gummies in early August which have quickly gained momentum, reaching a 5.8%4 market share of the gummy category
  • Unrestricted cash and short-term investment balance of $172 million and debt of $0.3 million, ensures the Company is well-resourced to execute its growth strategy

MONCTON, New Brunswick–(BUSINESS WIRE)–
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (together, the “Company” or “Organigram”), a leading licensed producer of cannabis, announced its results for the fourth quarter ended August 31, 2021 (“Q4 Fiscal 2021”).

“The results in Q4 Fiscal 2021 demonstrate the momentum we have achieved from our efforts to lead innovation and increase efficiencies. In the quarter, we introduced exciting new products that were embraced by consumers and we achieved higher crop yields at a lower cost” said Beena Goldenberg, Chief Executive Officer. “We are particularly pleased with our market share gains in the quarter to become a #4 LP and will build on these successes into Fiscal 2022.”

Ms. Goldenberg concluded, “We are excited for what Fiscal 2022 holds for Organigram. Looking ahead, we expect to continue our momentum as we maintain our focus on increased points of distribution, bringing new, impactful and innovative products such as Edison Jolts, SHRED and SHRED’ems to market, and improve our ability to fulfill the growing demand for our products.”

Select Key Financial Metrics (in $000s unless otherwise indicated)

Q4-2021

Q4-2020

% Change

Gross revenue

36,182

 

25,389

 

43

%

Excise taxes

(11,317

)

(4,989

)

127

%

Net revenue

24,865

 

20,400

 

22

%

Cost of sales

25,867

 

29,007

 

(11

)%

Gross margin before fair value changes to biological assets & inventories sold

(1,002

)

(8,607

)

(88

)%

Fair value changes to biological assets & inventories sold

4,353

 

(20,149

)

(122

)%

Gross margin

3,351

 

(28,756

)

(112

)%

Adjusted gross margin*

3,017

 

6,156

 

(51

)%

Adjusted gross margin %*

12

%

30

%

(60

)%

Selling (including marketing), general & administrative expenses**

13,562

 

10,830

 

25

%

Adjusted EBITDA*

(4,818

)

(2,320

)

(108

)%

Net loss

(25,971

)

(38,590

)

(33

)%

Net cash used in operating activities

(7,699

)

(7,676

)

—

%

* Adjusted gross margin, adjusted gross margin % and adjusted EBITDA are non-IFRS financial measures not defined by and do not have any standardized meaning under IFRS; please refer to the Company’s Q4 Fiscal 2021 MD&A for definitions and a reconciliation to IFRS.

** Excluding non-cash share-based compensation.

 

Select Balance Sheet Metrics (in $000s)

AUGUST

31, 2021

AUGUST

31, 2020

% Change

Cash & short-term investments

183,555

 

74,728

 

146

%

Biological assets & inventories

48,818

 

71,759

 

(32

)%

Other current assets

28,242

 

23,717

 

19

%

Accounts payable & accrued liabilities

23,436

 

17,486

 

34

%

Current portion of long-term debt

80

 

11,595

 

(99

)%

Working capital

234,349

 

141,123

 

66

%

Property, plant & equipment

235,939

 

247,420

 

(5

)%

Long-term debt

230

 

103,671

 

(100

)%

Total assets

554,017

 

435,127

 

27

%

Total liabilities

74,212

 

135,600

 

(45

)%

Shareholders’ equity

479,805

 

299,527

 

60

%

“We move into Fiscal 2022 with a robust balance sheet that provides us with the ability to fund important growth initiatives such as the CoE we have launched with BAT. This will allow us to continue our advances in product development and plant science and drive revenue growth,” added Derrick West, Chief Financial Officer. “We will also continue to invest in our facilities to create economies of scale and cost efficiencies that will further improve our gross margin profile.”

Key Financial Results for the Fourth Quarter Fiscal 2021

  • Net revenue:

    • Compared to the prior year, net revenue increased 22% to $24.9 million, from $20.4 million in Q4 Fiscal 2020. The increase was primarily due to an increase in adult-use recreational revenue, partly offset by the decrease in international revenue, medical revenue, wholesale revenue to other Licensed Producers and a lower average net selling price (“ASP”).
  • Cost of sales:

    • Q4 Fiscal 2021 cost of sales decreased by 11% to $25.9 million, from $29.0 million in Q4 Fiscal 2020. The decrease was primarily due to the current quarter’s reduction to inventory write-offs and provisions, along with reductions to the fixed unabsorbed overhead expenses.
  • Gross margin before fair value changes to biological assets, inventories sold, and other charges:

    • Gross margin improved in Q4 Fiscal 2021 from Q4 Fiscal 2020 largely due to higher net revenue and lower cost of sales as described above.
  • Gross margin:

    • Q4 2021 gross margin increased to a positive result from negative Q4 2020 gross margin largely due to higher Q4 2021 gross margin before fair value changes to biological assets and inventories sold as described above, as well as net non-cash positive fair value changes to biological assets and inventories sold in Q4 2021 versus negative changes in Q4 2020.
  • Adjusted gross margin5:

    • Q4 Fiscal 2021 adjusted gross margin was $3.0 million, or 12% of net revenue, compared to a negative $0.7 million, or 4%, negative adjusted gross margin during the preceding quarter (Q3 Fiscal 2021). This improvement during the current quarter was largely due to higher net revenues combined with lower cost of sales that was as a direct result of the lower costs of production.
  • Selling, general & administrative (SG&A) expenses:

    • Q4 Fiscal 2021 SG&A expenses increased by 26% to $13.6 million from Q4 Fiscal 2020, primarily due to increased audit fees and general office expenses in connection with the CoE, such CoE expenses being equally shared with BAT. Sales and marketing expenses increased mainly due to data licensing fees that increased as a result of the continued rollout of stores in Ontario, combined with marketing initiatives related to the launch of the Company’s gummy products and an increased focus on our Edison flagship brand.
  • Adjusted EBITDA6:

    • Q4 Fiscal 2021 negative adjusted EBITDA decreased 48% from $9.2 million in Q3 2021 to $4.8 million. This improvement was primarily attributed to the increase in revenues and the improved adjusted gross margin.
  • Net loss:

    • Q4 Fiscal 2021 net loss was reduced to $26.0 million, compared to a net loss of $38.6 million in Q4 Fiscal 2020, largely due to the higher gross margin in Q4 Fiscal 2021 described above which were partially offset by the impairment charges during the current quarter.
  • Net cash used in operating activities:

    • Q4 Fiscal 2021 net cash used in operating activities of $7.7 million was the same as the prior year’s comparison quarter. The current period’s deficiency was largely due to the quarter’s adjusted EBITDA deficit.

Canadian Recreational Market

Launch of Cannabis Innovators Panel

  • In July 2021, Organigram launched the Cannabis Innovators Panel, a cannabis consumer panel offering real-time insights into consumer preferences, usage occasions, and future development opportunities. This online panel will engage with hundreds of participants across Canada on an ongoing basis. The panel will contribute feedback on both existing product categories and guide areas of future research and development, including flower, vapes, concentrates, edibles, and pre-rolls.

SHRED’ems, cannabis-infused gummies

  • SHRED’ems cannabis-infused gummies, are an extension of Organigram’s highly popular, value-priced SHRED brand, launched to capitalize on the existing equity of SHRED and satisfy the need for value priced, high quality gummies. Since its launch in early August 2021, SHRED’ems has quickly gained momentum, capturing a 5.8% national retail market share as of November 17, 2021.4

Edison JOLTS high potency THC lozenges

  • Launched in August 2021, Edison JOLTS are mint flavoured, high potency THC lozenges that combine the benefits of sublingual oil with the convenience and portability of soft gels. Each package contains an unprecedented 100mg of THC. JOLTS has quickly achieved the top-selling position as the #1 LP ranking within ingestible extracts.3

Monjour CBD-forward wellness brand

  • Most recently, Organigram launched Monjour, a new CBD-forward wellness brand dedicated to the pursuit of a daily wellness regime. Monjour’s four initial SKUs will be shipping to stores across Canada throughout November and are available in both vegan and sugar-free options. Monjour offers 600mg of CBD/package.

Research and Product Development

Centre of Excellence (“CoE”)

  • In early Q4 Fiscal 2021, the Company announced the successful launch of the CoE, outlined in the agreement with BAT, which was established to focus on research and product development activities for the next generation of cannabis products, as well as cannabinoid fundamental science, with an initial focus on CBD. The CoE is located at the Moncton Campus, which holds the Health Canada licenses required to conduct R&D activities with cannabis products.

    • The Company and BAT have already created a number of new full-time product development, analytical science and innovation related roles which is expected to ramp up in the second phase of the CoE expansion in Fiscal 2022 when further full time employees will be added.
    • The CoE includes state of the art shared R&D, Good Production Practices (“GPP”) food preparation, sensory testing and bio-lab research.

    • To date, the CoE remains on schedule for staffing, construction, and project planning, and the remaining core construction projects are anticipated to be completed by Q2 Fiscal 2022.

Plant Science, Breeding and Genomics R&D in Moncton

  • Organigram’s cultivation plans focus on cultivating a pipeline of unique and sought-after genetics, maximizing flower quality in terms of THC yield, terpene profiles and general plant health to meet evolving consumer demand. The Company plans to aggressively pursue expanding its in-house breeding program, dedicating significant R&D space for breeding, phenotyping, screening, and various Plant Science Trials while ensuring no competing priorities with commercial cultivation capacity.
  • As part of its ongoing genetic exploration program, the Company now benefits from leveraging BAT’s tremendous depth of expertise in plant science and Organigram is excited about the developments in progress.
  • Organigram believes its strategic and creative product development process is a key differentiator for the Edison portfolio and the Company overall and looks forward to introducing more new genetics over the next few quarters.

Outlook7

Net revenue

  • Organigram currently expects Q1 Fiscal 2022 revenue to be higher than Q4 Fiscal 2021 largely due to: stronger forecasted market growth as COVID-19 restrictions continue to lift and the number of retail stores continues to grow; and the Company is better able to fulfill the demand for its revitalized product portfolio with its increased production.
  • Net revenue growth is expected from the Company’s products as evidenced by Organigram’s growing national adult-use recreational retail market share (“market share”) from 5.4% in Q3 to 7% in Q4. As of October, the momentum continues and the Company has reached a 7.9% share of market, maintaining its position as the #4 LP in Canada.
  • In addition, the resumption of shipments to Canndoc in Israel is expected to generate higher sequential revenue in Q1 Fiscal 2022 as compared to Q4 Fiscal 2021. The Company believes it is better equipped to fulfill demand in Q1 Fiscal 2022 with larger harvests expected as compared to Q4 Fiscal 2021. Revenues to date in Q1 Fiscal 2022 including a shipment to Canndoc that was in excess of $3.0 million, and purchase orders received from customers, support the Company’s expectation of revenue growth from Q4 Fiscal 2021 to Q1 Fiscal 2022; however actual results could vary from estimates from the date hereof until year-end.
  • Organigram also expects to be positioned to generate more revenue growth from the production of soft chews and other edible products with the specialized equipment in the Winnipeg Facility under the direction of EIC leadership, who bring significant expertise in confectionery manufacturing.

Adjusted gross margins

  • The Company expects to begin to see a sequential improvement in adjusted gross margins in Q1 Fiscal 2022 and has put in place measures that it expects will further improve margins over time.
  • The overall level of Q1 Fiscal 2022 adjusted gross margins versus Q4 Fiscal 2021 will also be dependent on other factors, including, but not limited to, product category and brand sales mix.
  • Organigram has identified the following opportunities which it believes have the potential to further improve adjusted gross margins over time:

    • Economies of scale and efficiencies gained as it continues to scale up cultivation, including the grow rooms that will be available after completing the construction of phase 4c of the Moncton Campus;
    • Changes to its growing and harvesting methodologies and design improvements and environmental enhancements should improve operating conditions of the Moncton Campus, resulting in higher-quality flower and improved yields;
    • International sales have historically attracted higher margins and are expected to represent a greater proportion of the Company’s revenue following the resumption of shipments to Canndoc Ltd.;
    • More sales from 1g Edison vape cartridges that generally attract higher margins;
    • Continued investment in automation which will drive cost efficiencies and reduce dependence on manual labor;
    • Price increases to SHRED’s pre-milled flower SKUs;
    • The recent launches of new products such as Edison Jolts (ingestible extracts), SHRED’ems and most recently Monjour represent new potential avenues of growth with expected attractive long-term margin profiles for the Company.

SG&A Expenses8

  • Q1 Fiscal 2022 SG&A is expected to be similar to Q4 Fiscal 2021. Starting with Q1 2022, research and development activities will be shown separately from SG&A expenses.

International

  • Shipments to Canndoc Ltd., which resumed during Q1 Fiscal 2022, are expected to continue during Fiscal 2022.
  • Recent political changes and cannabis election ballot initiatives for medical and recreational use in the United States suggest that the potential movements to U.S. federal legalization of cannabis (THC) have increased momentum, but the timing and outcome remain difficult to predict. Organigram continues to monitor and develop a potential U.S. THC strategy and evaluate CBD entry opportunities in the United States.

Liquidity and Capital Resources

  • On August 31, 2021, the Company had unrestricted cash and short-term investments balance of $184 million compared to $75 million at August 31, 2020, an increase of 145%. The increase was primarily as a result of $65 million unit offering done November 2020, $221 million of equity proceeds received from BAT as part of a strategic investment, net of $115 million of monies used during fiscal 2021 towards the repayment of long-term debt and $31 million allocated to restricted funds, to be used directly towards the expenditures of the CoE.
  • Organigram believes its capital position is healthy and that there is sufficient liquidity available for the near to medium term.

Capital Structure

in $000s

AUGUST

31, 2021

AUGUST

31, 2020

Current and long-term debt

310

 

115,266

 

Shareholders’ equity

479,805

 

299,527

 

Total debt and shareholders’ equity

480,115

 

414,793

 

in 000s

 

 

Outstanding common shares

298,786

 

194,511

 

Options

7,797

 

9,264

 

Warrants

16,944

 

—

 

Top-up rights

6,559

 

—

 

Restricted share units

1,186

 

912

 

Performance share units

472

 

120

 

Total fully-diluted shares

331,744

 

204,807

 

Outstanding basic and fully diluted share count as at November 19, 2021 is as follows:

in 000s

NOVEMBER 19,

2021

Outstanding common shares

299,844

Options

8,139

Warrants

16,944

Top-up rights

6,773

Restricted share units

1,566

Performance share units

614

Total fully-diluted shares

333,880

Fourth Quarter Fiscal 2021 Conference Call

The Company will host a conference call to discuss its results with details as follows:

Date: November 23, 2021

Time: 8:00am Eastern Time

To register for the conference call, please use this link:

http://www.directeventreg.com/registration/event/4654838

To ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call.

To access the webcast:

https://event.on24.com/wcc/r/3408680/AE5B7A69C202603E882FDF25D0092F3D

A replay of the webcast will be available within 24 hours after the conclusion of the call at https://www.organigram.ca/investors and will be archived for a period of 90 days following the call.

Non-IFRS Financial Measures

This news release refers to certain financial performance measures (including adjusted gross margin and adjusted EBITDA) that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospects in a similar manner to the Company’s management. As there are no standardized methods of calculating these non-IFRS measures, the Company’s approaches may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the Company’s Q4 Fiscal 2021 MD&A for definitions and, in the case of adjusted EBITDA, a reconciliation to IFRS amounts.

About Organigram Holdings Inc.

Organigram Holdings Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiaries include: Organigram Inc., a licensed producer of cannabis and cannabis-derived products in Canada and The Edibles and Infusions Corporation, a licensed manufacturer of cannabis-infused soft chews in Canada.

Organigram is focused on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the Company’s global footprint. Organigram has also developed a portfolio of legal adult use recreational cannabis brands including The Edison Cannabis Company, Indi, Bag o’ Buds, SHRED and Trailblazer. Organigram’s facility is located in Moncton, New Brunswick with another manufacturing facility in Winnipeg, Manitoba. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).

This news release contains forward-looking information. Forward-looking information, in general, can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “could”, “would”, “might”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “continue”, “budget”, “schedule” or “forecast” or similar expressions suggesting future outcomes or events. They include, but are not limited to, statements with respect to expectations, projections or other characterizations of future events or circumstances, and the Company’s objectives, goals, strategies, beliefs, intentions, plans, estimates, forecasts, projections and outlook, including statements relating to the Company’s future performance, the Company’s positioning to capture additional market share and sales, expectations for consumer demand, expected increase in SKUs, expected improvement to gross margins before fair value changes to biological assets and inventories, expectations regarding higher revenue in Fiscal Q1 2021, the Company’s plans and objectives including around the CoE, availability and sources of any future financing, expectations regarding the impact of COVID-19, availability of cost efficiency opportunities, the increase in the number of retail stores, the ability of the Company to fulfill demand for its revitalized product portfolio with increased staffing, expectations around lower product cultivation costs, the ability to achieve economies of scale and ramp up cultivation, expectations pertaining to the increase of automation and reduction in reliance on manual labour, expectations around the launch of higher margin dried flower strains, expectations around market and consumer demand and other patterns related to existing, new and planned product forms including by EIC; timing for launch of new product forms, ability of those new product forms to capture sales and market share, estimates around incremental sales and more generally estimates or predictions of actions of customers, suppliers, partners, distributors, competitors or regulatory authorities; continuation of shipments to Canndoc Ltd.; statements regarding the future of the Canadian and international cannabis markets and, statements regarding the Company’s future economic performance. These statements are not historical facts but instead represent management beliefs regarding future events, many of which, by their nature are inherently uncertain and beyond management control. Forward-looking information has been based on the Company’s current expectations about future events.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectations. Important factors – including the heightened uncertainty as a result of COVID-19 including any continued impact on production or operations, impact on demand for products, effect on third party suppliers, service providers or lenders; general economic factors; receipt of regulatory approvals or consents and any conditions imposed upon same and the timing thereof, ability to meet regulatory criteria which may be subject to change, change in regulation including restrictions on sale of new product forms, changing listing practices, ability to manage costs, timing to receive any required testing results and certifications, results of final testing of new products, timing of new retail store openings being inconsistent with preliminary expectations, changes in governmental plans including related to methods of distribution and timing and launch of retail stores, timing and nature of sales and product returns, customer buying patterns and consumer preferences not being as predicted given this is a new and emerging market, material weaknesses identified in the Company’s internal controls over financial reporting, the completion of regulatory processes and registrations including for new products and forms, market demand and acceptance of new products and forms, unforeseen construction or delivery delays including of equipment and commissioning, increases to expected costs, competitive and industry conditions, customer buying patterns and crop yields – that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time under the Company’s issuer profile on the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com and reports and other information filed with or furnished to the United States Securities and Exchange Commission (“SEC”) from time to time on the SEC’s Electronic Document Gathering and Retrieval System (“EDGAR”) at www.sec.gov including the Company’s most recent MD&A and AIF. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward looking information is subject to risks and uncertainties that are addressed in the “Risk Factors” section of the MD&A dated November 22, 2021 and there can be no assurance whatsoever that these events will occur.

________________________________

1 Source: Hifyre data, Q3 F21 vs. Q4 F21 and Oct 2021

2 Source: OCS e-commerce data, Nov 2020 to Oct 2021

3 Source: Hifyre data, Sept 12-Nov 6, 2021

4 Source: Hifyre data, Nov 17, 2021

5 Adjusted gross margin is a non-IFRS financial measure not defined by and does not have any standardized meaning under IFRS; please refer to the Company’s Q4 2021 MD&A for definitions and a reconciliation to IFRS.

6 Adjusted EBITDA is a non-IFRS financial measure not defined by and does not have any standardized meaning under IFRS; please refer to the Company’s Q4 2021 MD&A for definitions and a reconciliation to IFRS.

7 Without limiting the generality of risk factor disclosures referenced in the “Risk Factors” section of the Company’s Q4 Fiscal 2021 MD&A, the expectations concerning revenue, adjusted gross margins and SG&A are based on the following general assumptions: consistency of revenue experience with indications of first quarter performance to date, consistency of ordering and return patterns or other factors with prior periods and no material change in legal regulation, market factors or general economic conditions. The Company disclaims any obligation to update any of the forward-looking information except as required by applicable law. See cautionary statement in the “Introduction” section at the beginning of the Company’s Q4 Fiscal 2021 MD&A.

8 The forward-looking estimate of costs is based on a number of material factors and assumptions. Please see the cautionary statement in this press release and in the Company’s Q4 Fiscal 2021 MD&A.

For Investor Relations enquiries:

[email protected]

For Media enquiries:

Megan McCrae Senior Vice President, Marketing and Communications

[email protected]

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Alternative Medicine Retail Health Agriculture Natural Resources Specialty Food/Beverage

MEDIA:

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CNFinance Announces Third Quarter of 2021 Unaudited Financial Results

PR Newswire

GUANGZHOU, China, Nov. 23, 2021 /PRNewswire/ — CNFinance Holdings Limited (NYSE: CNF) (“CNFinance” or the “Company”), a leading home equity loan service provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2021.

Third Quarter 2021 Operational and Financial Highlights

  • Total loan origination volume[1] was RMB3,117.5 million (US$480.7 million) in the third quarter of 2021, compared to RMB3,093.4 million in the same period of 2020.
  • Total outstanding loan principal[2] was RMB11.1 billion (US$1.7 billion) as of September 30, 2021, compared to RMB9.7 billion as of December 31, 2020.
  • Total interest and fees income were RMB457.0 million (US$70.5 million) in the third quarter of 2021, compared to RMB476.0 million in the same period of 2020.
  • Net income was RMB19.0 million (US$2.9 million) in the third quarter of 2021, compared to RMB50.1 million in the same period of 2020.
  • Basic and diluted earnings per ADS were RMB0.28(US$0.04) and RMB0.25(US$0.04), respectively, in the third quarter of 2021, compared to RMB0.73 and RMB0.67, respectively, in the same period of 2020.


[1] Refers to the total amount of loans CNFinance originated during the relevant period.


[2] Refers to the total amount of loans principal outstanding for CNFinance at the end of the relevant period.

“Following a good first half, our loan facilitation business remained stable in the third quarter of 2021. During the third quarter, the robust business operations of micro-and small-enterprises (MSEs) created an increase in capital demand. To meet such demand, our professional and dedicated team, with the aid of our efficient and visualized online system, served over 5,000 borrowers. With RMB3.1 billion loans originated in the third quarter of 2021, the total outstanding loan principal reached RMB11.1 billion as of September 30, 2021. Although exposed to the lower funding supply from trust companies and an increase in financing cost, we were still able to record a net income of RMB19.0 million in the third quarter of 2021. It is worth noticing that we enlarged our business scale during the third quarter of 2021 while we lowered the collaboration cost for sales partners as a result of lower rate of incentives due to the overall lowered interest rates on loans, which reflected the success of our efforts to improve the screening and management of sales partners. To promote the strategical transformation to an asset-light platform, we plan to dispose of certain legacy loans under the traditional model in the fourth quarter. We will conduct evaluations and endeavor to sell those loans in bulk at fair market prices. Looking forward, we remain dedicated to building an asset-light service platform with a high turnover at a large scale while staying true to our mission of providing MSE owners with affordable, accessible and efficient financial services,” commented Mr. Bin Zhai, CEO and Chairman of CNFinance.

Third Quarter 2021 Financial Results

Total interest and fees income decreased by 4.0% to RMB457.0 million (US$70.5 million) for the third quarter of 2021 from RMB476.0 million in the same period of 2020.

Interest and financing service fees on loans decreased by 3.7% to RMB454.9 million (US$70.2 million) for the third quarter of 2021 from RMB472.5 million in the same period of 2020, primarily due to the combined effect of (a) the increase in the balance of average daily outstanding loan principal, and (b) the lowered interest rate on loans facilitated in an effort to comply with rules and regulations issued by relevant PRC regulatory authorities, including the Decisions of the Supreme People’s Court to Amend the Provisions on Several Issues concerning the Application of Law in the Trial of Private Lending Cases issued in August 2020. 

Interest on deposits with banks decreased by 40.0% to RMB2.1 million (US$0.3 million) for the third quarter of 2021 from RMB3.5 million in the same period of 2020, primarily due to the smaller daily average amount of time deposits.

Total interest and fees expenses increased by 18.8% to RMB219.1 million (US$33.8 million) for the third quarter of 2021, compared to RMB184.4 million in the same period of 2020, primarily due to the increase in the principals of other borrowings as well as the funding cost from trust companies.

Net interest and fees income was RMB237.9 million (US$36.7 million) for the third quarter of 2021, a decrease of 18.4% from RMB291.6 million in the same period of 2020.

Collaboration cost for sales partners decreased to RMB101.5 million (US$15.7 million) for the third quarter of 2021 from RMB112.5 million in the third quarter of 2020, primarily due to the lower rate of incentives paid to sales partners by the Company in response to the overall lowered interest rates on loans.

Net interest and fees income after collaboration cost was RMB136.4 million (US$21.0 million) for the third quarter of 2021, a decrease of 23.8% from RMB179.1 million in the same period of 2020.

Provision for credit losses increased by 4.8% to RMB32.6 million (US$5.0 million) for the third quarter of 2021 from RMB31.1 million in the same period of 2020. The increase was mainly attributable to the combined effect of (a) the increase in outstanding principal of non-delinquent loans and loans delinquent within 90 days which resulted in the increase in collectively assessed allowances; and (b) the Company’s receipt of recoveries in the quarter after charging down loans that are 180 days past due to net realizable value.

Net gains/(losses) on sales of loans decreased to a net loss of RMB3.5 million (US$0.5 million) for the third quarter of 2021 from a net gain of RMB39.5 million in the same period of 2020, primarily attributable to the fact that the Company sold loans over 90 days past due to third parties with larger discount to recover cash under the traditional facilitation model.

Other gains/(losses), net increased to a net gain of RMB15.8 million (US$2.4 million) for the third quarter of 2021 from a net loss of RMB2.1 million in the same period of 2020, primarily attributable to the increase of gains on confiscated Credit Risk Mitigation Position.

Total operating expenses decreased by 21.1% to RMB93.0 million (US$14.4 million) for the third quarter of 2021, compared with RMB117.9 million in the same period of 2020.

Employee compensation and benefits increased by 2.1% to RMB47.7 million (US$7.4 million) for the third quarter of 2021 from RMB46.7 million in the same period of 2020, primarily attributable to higher social security and housing fund benefits provided for employees resulting from the end of the phased reduction policy released by the PRC Ministry of Human Resources and Social Security in reaction to the COVID-19 pandemic in the third quarter of 2020.

Share-based compensation expenses
 decreased by 69.7% to RMB4.7 million (US$0.7 million) for the third quarter of 2021 from RMB15.5 million in the same period of 2020. According to the Company’s share option plan adopted on December 31, 2019, approximately 50%, 30% and 20% of the option granted will be vested on December 31, 2020, 2021 and 2022, respectively. Related compensation cost of the option grants will be recognized over the requisite period.

Taxes and surcharges decreased by 10.9% to RMB10.6 million (US$1.6 million) for the third quarter of 2021 from RMB11.9 million for the same period of 2020, primarily attributable to a decrease in the non-deductible value added tax (“VAT”). The decrease in VAT was attributable to the characterization of certain amounts as “service fees charged to trust plans” which are a non-deductible item. According to PRC tax regulations, “service fees charged to trust plans” incur a 6% VAT on the subsidiary level, but are not recorded as an input VAT on a consolidated trust plan level. “Service fees charged to trust plans” were significantly decreased in the third quarter of 2021 compared to the same period of 2020 due to maturity of some trust plans. Such decrease was also due to a decrease in interest and financing service fees on loans by 3.7% for the third quarter of 2021 compared to the same period of 2020.

Operating lease cost decreased by 15.9% to RMB3.7 million (US$0.6 million) for the third quarter of 2021 as compared to RMB4.4 million for the same period of 2020, primarily due to the continued development of the collaboration model that allowed the Company to further reduce the office leasing costs which was used to rent offices to accommodate sales staff.

Other expenses decreased by 33.2% to RMB26.3 million (US$4.1 million) for the third quarter of 2021 from RMB39.4 million in the same period of 2020, primarily due to decreases in (a) service fees paid to third-party IT developers; (b) the cost related to promoting the collaboration model, and (c) service fees paid to third-party consultants.

Income tax expense decreased by 73.2% to RMB6.6 million (US$1.0 million) for the third quarter of 2021 from RMB24.6 million in the same period of 2020, primarily due to a decrease in the amount of taxable income.

Effective tax rate decreased to 25.7% for the third quarter of 2021 from 33.0% in the same period of 2020, because the share-based compensation expenses, as non-deductible expenses, decreased to RMB4.7 million (US$0.7 million) for the third quarter of 2021 from RMB15.5 million in the same period of 2020.

Net income decreased by 62.1% to RMB19.0 million (US$2.9 million) for the third quarter of 2021 from RMB50.1 million in the same period of 2020.

Basic and diluted earnings per ADS were RMB0.28(US$0.04) and RMB0.25(US$0.04), respectively, in the third quarter of 2021, compared to RMB0.73 and RMB0.67, respectively, in the same period of 2020. One ADS represents 20 ordinary shares.

As of September 30, 2021 and December 31, 2020, the Company had Cash, cash equivalents and restricted cash of RMB2.0 billion (US$0.3 billion) and RMB2.0 billion, including RMB1.4 billion (US$0.2 billion) and RMB1.0 billion from structured funds, respectively, which could only be used to grant new loans and activities.

The actual delinquency rate for loans originated by the Company decreased to 20.4% as of September 30, 2021 from 22.6% as of December 31, 2020. Under the collaboration model, the actual delinquency rate for first lien loans increased to 24.5% as of September 30, 2021 from 18.0% as of December 31, 2020, and the actual delinquency rate for second lien loans was stable at 15.5% as of September 30, 2021 as compared to 15.6% as of December 31, 2020. Under the traditional facilitation model, the actual delinquency rate for first lien loans decreased to 38.9% as of September 30, 2021 from 47.0% as of December 31, 2020, and the actual delinquency rate for second lien loans decreased to 38.3% as of September 30, 2021 from 43.2% as of December 31, 2020.           

The actual NPL rate for loans originated by the Company decreased to 7.5% as of September 30, 2021 from 11.7% as of December 31, 2020. Under the collaboration model, the actual NPL rate for first lien loans increased to 9.1% as of September 30, 2021 from 6.7% as of December 31, 2020, and the actual NPL rate for second lien loans decreased to 4.3% as of September 30, 2021 from 4.6% as of December 31, 2020. Under the traditional facilitation model, the actual NPL rate for first lien loans decreased to 27.5% as of September 30, 2021 from 38.2% as of December 31, 2020, and the actual NPL rate for second lien loans decreased to 23.8% as of September 30, 2021 from 31.6% as of December 31, 2020.

Business Outlook

The extent to which the COVID-19 pandemic impacts the Company’s results of operations will depend on future developments of the pandemic in China and across the globe, which are subject to change and substantial uncertainty and therefore cannot be predicted. For the fourth quarter of 2021, based on the information available as of the date of this press release, the Company expects to dispose of certain non-performing loans to improve the overall loan portfolio, and expects to incur a net loss of between RMB80 million and RMB100 million.

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

Conference Call

CNFinance’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Monday, November 23, 2021 (9:00 PM Beijing/ Hong Kong Time on Tuesday, November 23, 2021).

Dial-in numbers for the live conference call are as follows:

International:

+1-412-902-4272

Mainland China

+86-4001-201203

United States:

+1-888-346-8982

Hong Kong:

+852-3018-4992

Passcode:

CNFinance

A telephone replay of the call will be available after the conclusion of the conference call until 11:59 PM ET on November 30, 2021.

Dial-in numbers for the replay are as follows:

International:

+1-412-317-0088

United States:

+1-877-344-7529

Passcode:

10162076

A live and archived webcast of the conference call will be available on the Investor Relations section of CNFinance’s website at http://ir.cashchina.cn/.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.

Exchange Rate

The Company’s business is primarily conducted in China and all of the revenues are denominated in Renminbi (“RMB”). This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.4854 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on September 30, 2021, or at any other rate.

Safe Harbor Statement

This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates”, “confident” and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, 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. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: its goals and strategies, its ability to achieve and maintain profitability, its ability to retain existing borrowers and attract new borrowers, its ability to maintain and enhance the relationship and business collaboration with its trust company partners and to secure sufficient funding from them, the effectiveness of its risk assessment process and risk management system, its ability to maintain low delinquency ratios for loans it originated, fluctuations in general economic and business conditions in China, the impact and future development of COVID-19 pandemic in China and across the globe, and relevant government laws, regulations, rules, policies or guidelines relating to the Company’s corporate structure, business and industry. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company does not undertake any obligation to update such information, except as required under applicable law.

About CNFinance Holdings Limited

CNFinance Holdings Limited (NYSE: CNF) (“CNFinance” or the “Company”) is a leading home equity loan service provider in China. CNFinance conducts business by collaborating with sales partners and trust company partners. Sales partners are responsible for recommending micro-and

small-enterprise (“MSE”) owners with financing needs to the Company and the Company introduces eligible borrowers to its trust company partners who will then conduct their own risk assessments and make credit decisions. The Company’s primary target borrower segment is MSE owners who own real properties in Tier 1 and Tier 2 cities in China. The loans CNFinance facilitated are primarily funded through a trust lending model with its trust company partners who are well-established with sufficient funding sources and have licenses to engage in lending business nationwide. The Company’s risk mitigation mechanism is embedded in the design of its loan products, supported by an integrated online and offline process focusing on risks of both borrowers and collateral and further enhanced by effective post-loan management procedures. 


CNFINANCE HOLDINGS LIMITED

Unaudited condensed consolidated balance sheets 

(In thousands)


December 31,


September 30,


2020


2021


RMB


         RMB


        US$


Assets

Cash, cash equivalents and restricted cash

1,960,923

1,964,143

302,856

Loans principal, interest and financing service fee
   receivables (include loans held-for-sale of
   RMB586,206,781 and RMB568,011,041, with
   RMB76,013,067 and RMB45,706,714 measured at fair
   value as of December 31, 2020 and September 30,
   2021, respectively)

9,688,941

11,101,332

1,711,742

Allowance for credit losses

659,479

641,287

98,882

Net loans principal, interest and financing service fee receivables

9,029,462

10,460,045

1,612,860

Investment securities

418,137

1,451,164

223,759

Property and equipment

4,716

2,726

421

Intangible assets and goodwill

3,230

4,163

642

Deferred tax assets

75,824

6,417

989

Deposits

114,052

157,643

24,307

Right-of-use assets

19,468

17,102

2,637

Guaranteed assets

533,680

756,275

116,612

Other assets

74,004

110,522

17,042


Total assets


12,233,496


14,930,200


2,302,125


Liabilities and shareholders’ equity

Interest-bearing borrowings

    Borrowings under agreements to repurchase  

508,577

300,546

46,342

    Other borrowings

5,649,669

8,348,794

1,287,322

Accrued employee benefits

29,627

23,134

3,567

Income taxes payable

154,807

188,111

29,005

Deferred tax liabilities

396,594

211,063

32,544

Lease liabilities

19,545

16,837

2,596

Credit risk mitigation position

1,209,729

1,407,171

216,975

Other liabilities

523,697

510,981

78,790


Total liabilities


8,492,245


11,006,637


1,697,141

Ordinary shares (3,800,000,000 shares authorized;
   1,371,643,240 shares with US$0.0001 as par value
   issued as of December 31, 2020 and September 30,
   2021)

917

917

141

Additional paid-in capital

999,663

1,013,737

156,311

Retained earnings

2,759,128

2,928,984

451,627

Accumulated other comprehensive losses

(18,457)

(20,075)

(3,095)


Total shareholders’ equity


3,741,251


3,923,563


604,984


Total liabilities and shareholders’ equity


12,233,496


14,930,200


2,302,125

 

 

 


CNFINANCE HOLDINGS LIMITED

Unaudited condensed consolidated statements of comprehensive income 

(In thousands, except for earnings per share and earnings per ADS)


Three months ended September 30,


2020


2021


2021


RMB


RMB


US$


Interest and fees income

Interest and financing service fees on
   loans

472,464

454,870

70,138

Interest on deposits with banks

3,495

2,123

327


Total interest and fees income


475,959


456,993


70,465


Total interest and fees expenses


(184,349)


(219,126)


(33,788)


Net interest and fees income


291,610


237,867


36,677

Collaboration cost for sales partners

(112,480)

(101,521)

(15,654)


Net interest and fees income after
   collaboration cost


179,130


136,346


21,023

Provision for credit losses

(31,088)

(32,589)

(5,025)


Net interest and fees income after
   collaboration cost and provision
   for credit losses


148,042


103,757


15,998

Realized gains on sales of investments,
   net

7,232

2,492

384

Net gains/(losses) on sales of loans

39,466

(3,410)

(526)

Other (losses)/gains, net

(2,102)

15,751

2,429


Total non-interest income


44,596


14,833


2,287


Operating expenses

Employee compensation and benefits

(46,687)

(47,744)

(7,362)

Share-based compensation expenses

(15,518)

(4,692)

(723)

Taxes and surcharges

(11,900)

(10,578)

(1,631)

Operating lease cost

(4,362)

(3,721)

(574)

Other expenses

(39,375)

(26,255)

(4,048)


Total operating expenses


(117,842)


(92,990)

(14,338)


Income before income tax expense


74,796


25,600


3,947

Income tax expense

(24,647)

(6,571)

(1,013)


Net income


50,149


19,029


2,934

Earnings per share

  Basic

0.04

0.01

0.002

  Diluted

0.03

0.01

0.002

Earnings per ADS (1 ADS equals 20
   ordinary shares)

  Basic

0.73

0.28

0.043

  Diluted

0.67

0.25

0.039


Other comprehensive income

Net unrealized gains on investment
   securities

75

–

–

Foreign currency translation
   adjustment

(8,482)

1,069

165


Comprehensive income

41,742

20,098


3,099

 

 


CNFINANCE HOLDINGS LIMITED

Unaudited condensed consolidated statements of comprehensive income 

(In thousands, except for earnings per share and earnings per ADS)


Nine months ended September 30,


2020


2021


2021


RMB


RMB


US$


Interest and fees income

Interest and financing service fees on
   loans

1,411,570

1,325,657

204,406

Interest on deposits with banks

12,142

7,907

1,219


Total interest and fees income


1,423,712


1,333,564


205,625


Total interest and fees expenses


(572,003)


(570,367)


(87,946)


Net interest and fees income


851,709


763,197


117,679

Collaboration cost for sales partners

(310,723)

(306,282)

(47,226)


Net interest and fees income after
   collaboration cost


540,986


456,915


70,453

Provision for credit losses

(308,460)

(30,054)

(4,634)


Net interest and fees income after
   collaboration cost and provision
   for credit losses


232,526


426,861


65,819

Realized gains on sales of investments,
   net

15,544

10,053

1,550

Net gains on sales of loans

105,899

17,878

2,756

Other gains, net

11,929

33,884

5,225


Total non-interest income


133,372


61,815


9,531


Operating expenses

Employee compensation and benefits

(138,161)

(148,753)

(22,937)

Share-based compensation expenses

(46,554)

(14,075)

(2,170)

Taxes and surcharges

(36,784)

(25,658)

(3,956)

Operating lease cost

(17,164)

(11,538)

(1,779)

Other expenses

(93,986)

(74,584)

(11,500)


Total operating expenses


(332,649)


(274,608)

(42,342)


Income before income tax expense


33,249


214,068


33,008

Income tax expense

(23,677)

(44,212)

(6,817)


Net income


9,572


169,856


26,191

Earnings per share

  Basic

0.01

0.12

0.019

  Diluted

0.01

0.11

0.017

Earnings per ADS (1 ADS equals 20
   ordinary shares)

  Basic

0.14

2.48

0.382

  Diluted

0.13

2.25

0.347


Other comprehensive income

Net unrealized gains on investment
   securities

422

–

–

Foreign currency translation
   adjustment

(4,184)

(1,619)

(250)


Comprehensive (losses)/income

5,810


168,237


25,941

 

 

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SOURCE CNFinance Holdings Limited

Posted on

Sunlands Technology Group Announces Unaudited Third Quarter 2021 Financial Results

PR Newswire

Q3 net revenues increased by 9.9% year-over-year
Q3 gross billings (non-GAAP) decreased by 29.3% year-over-year
Q3 net income reached RMB92.8 million

BEIJING, Nov. 23, 2021 /PRNewswire/ — Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), a leader in China’s online post-secondary and professional education, today announced its unaudited financial results for the third quarter ended September 30, 2021.

Third
 Quarter
2021
 Financial and Operational Snapshots

  • Net revenues were RMB595.1 million (US$92.4 million), representing a 9.9% increase year-over-year.
  • Gross billings (non-GAAP) were RMB462.5 million (US$71.8 million), representing a 29.3% decrease year-over-year.
  • Gross profit was RMB512.0 million (US$79.5 million), representing a 14.1% increase year-over-year.
  • Net income was RMB92.8 million (US$14.4 million), compared with net loss of RMB165.8 million in the third quarter of 2020.
  • Net income/loss margin, defined as net income/loss as a percentage of net revenues, increased to 15.6% from -30.6% in the third quarter of 2020.
  • New student enrollments[1] were 93,265, representing a 33.8% decrease year-over-year.
  • As of September 30, 2021, the Company’s deferred revenue balance was RMB2,540.9 million (US$394.3 million).



[1]
 New student enrollments for a given period refers to the total number of orders placed by students that newly enroll in at least one course during that period (including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses). In June 2019, we introduced low-price courses, including “mini courses” and “RMB1 courses,” to strengthen our competitiveness and improve customer experience. We offer such low-price courses mainly in the formats of recorded videos or short live streaming.

“We are pleased with our third quarter financial metrics. Our net revenues grew 9.9% year-over-year to RMB595.1 million despite the evolving industry dynamics,” said Mr. Tongbo Liu, Chief Executive Officer of Sunlands. “As we resolutely executed our balanced long-term growth and profitability strategy, we recorded net income of RMB92.8 million compared with net loss of RMB165.8 million during the same period last year, notwithstanding a year-over-year decline in new enrollments and gross billings.” 

“Our professional certification and skills programs continued to excel during the quarter with net revenues up 148.2% year over year and our net revenues from master’s degree-oriented programs also increased by 20.8% year over year, driven by our constant efforts to broaden our course catalog as well as strong user demand for career advancement and skills enhancement. We maintained profitability for two consecutive quarters as we enriched our course offerings to address varied student needs and optimized cost structure to enhance student acquisition efficiency with more cost-effective, innovative and regulation-compliant marketing tools. We will continue to refine these measures to build on this success and drive quality growth.”

“With China’s national policy of building a lifelong learning society in place, we are optimistic about the growth prospects of occupational education business and will contribute to this great undertaking by providing our users more premium courses with enhanced services,” concluded Mr. Liu.

Ms. Selena Lu Lv, Chief Financial Officer of Sunlands, commented, “We are encouraged by our sustained profitability in the third quarter with registered net profit reaching a new high, driven by continued year-over-year top-line growth mainly attributable to professional skills and master’s degree-oriented programs. Profits also benefitted from our efficient cost control measures, which led to a 35.2% year-over-year reduction in operating expenses. Notably, sales and marketing expenses as a percentage of net revenues decreased significantly, by 45.7 percentage points year-over-year. Going forward, we will continue to focus on operating efficiency enhancement, product mix optimization and service improvement, preparing us for opportunities and challenges ahead while pursuing sustainable growth.”

Financial Results for
the third quarter
 of 2021

Net Revenues

In the third quarter of 2021, net revenues increased by 9.9% to RMB595.1 million (US$92.4 million) from RMB541.6 million in the third quarter of 2020. The increase was mainly driven by the year-over-year growth in gross billings since the second half of year 2020 through the first quarter of 2021.

Cost of Revenues

Cost of revenues decreased by 10.6% to RMB83.1 million (US$12.9 million) in the third quarter of 2021 from RMB92.9 million in the third quarter of 2020. The decrease was primarily due to reduced insurance-related costs incurred for our integrated online education service package purchased by students.

Gross Profit

Gross profit increased by 14.1% to RMB512.0 million (US$79.5 million) in the third quarter of 2021 from RMB448.7 million in the third quarter of 2020.

Operating Expenses

In the third quarter of 2021, operating expenses were RMB430.6 million (US$66.8 million), representing a 35.2% decrease from RMB664.1 million in the third quarter of 2020.

Sales and marketing expenses decreased by 37.9% to RMB353.5 million (US$54.9 million) in the third quarter of 2021 from RMB569.4 million in the third quarter of 2020. The decrease was mainly due to: (i) lower spending on branding and marketing activities; and (ii) declined compensation expenses related to our sales and marketing personnel.

General and administrative expenses decreased by 17.0% to RMB63.2 million (US$9.8 million) in the third quarter of 2021 from RMB76.1 million in the third quarter of 2020. The decrease was mainly due to a decrease in compensation expenses.

Product development expenses decreased by 24.7% to RMB14.0 million (US$2.2 million) in the third quarter of 2021 from RMB18.6 million in the third quarter of 2020. The decrease was mainly due to a decrease in compensation expenses.

Other Income

Other income was RMB12.9 million (US$2.0 million) in the third quarter of 2021, compared with RMB47.3 million in the third quarter of 2020. Other income for the third quarter of 2021 was mainly comprised of rental income of RMB7.0 million. The decrease was primarily because value-added tax exemption offered by the relevant authorities as part of the national COVID-19 relief effort came to an end in April 2021.

Net
Income

Net income for the third quarter of 2021 was RMB92.8 million (US$14.4 million), compared with net loss of RMB165.8 million in the third quarter of 2020.

Basic and Diluted Net
Income
Per Share

Basic and diluted net income per share was RMB14.16(US$2.20) in the third quarter of 2021.

Cash and Cash Equivalents and Short-term Investments

As of September 30, 2021, the Company had RMB661.2 million (US$102.6 million) of cash and cash equivalents and RMB178.8 million (US$27.7 million) of short-term investments, compared with RMB760.7 million of cash and cash equivalents and RMB517.8 million of short-term investments as of December 31, 2020.

Deferred Revenue

As of September 30, 2021, the Company had a deferred revenue balance of RMB2,540.9 million (US$394.3 million), compared with RMB3,024.4 million as of December 31, 2020.

Capital Expenditures

Capital expenditures were incurred primarily in connection with information technology (“IT”) infrastructure equipment and leasehold improvements necessary to support the Company’s operations. Capital expenditures were RMB1.8 million (US$0.3 million) in the third quarter of 2021, compared with RMB14.3 million in the third quarter of 2020.

Financial Results for the
First Nine Months of 2021

Net Revenues

In the first nine months of 2021, net revenues increased by 18.5% to RMB1,918.9 million (US$297.8 million) from RMB1,619.2 million in the first nine months of 2020.

Cost of Revenues

Cost of revenues decreased by 0.9% to RMB286.8 million (US$44.5 million) in the first nine months of 2021 from RMB289.4 million in the first nine months of 2020.

Gross Profit

Gross profit increased by 22.7% to RMB1,632.1 million (US$253.3 million) from RMB1,329.8 million in the first nine months of 2020.

Operating Expenses

In the first nine months of 2021, operating expenses were RMB1,616.8 million (US$250.9 million), representing a 9.8% decrease from RMB1,791.8 million in the first nine months of 2020.

Sales and marketing expenses decreased by 7.0% to RMB1,409.1 million (US$218.7 million) in the first nine months of 2021 from RMB1,515.2 million in the first nine months of 2020.  

General and administrative expenses decreased by 28.8% to RMB157.1 million (US$24.4 million) in the first nine months of 2021 from RMB220.7 million in the first nine months of 2020.

Product development expenses decreased by 9.4% to RMB50.7 million (US$7.9 million) in the first nine months of 2021 from RMB55.9 million in the first nine months of 2020.

Other
I
ncome

Other income for the first nine months of 2021 was RMB42.3 million (US$6.6 million), compared with RMB93.8 million in the first nine months of 2020. The decrease was primarily because value-added tax exemption offered by the relevant authorities as part of the national COVID-19 relief effort came to an end in April 2021.

Net Income

Net income for the first nine months of 2021 was RMB61.6 million (US$9.6 million), compared with net loss of RMB357.5 million in the first nine months of 2020.

Basic and Diluted Net
Income
Per Share

Basic and diluted net income per share was RMB9.69(US$1.50) in the first nine months of 2021, compared with net loss per share of RMB52.85 in the first nine months of 2020.

Capital Expenditures

Capital expenditures were incurred primarily in connection with IT infrastructure equipment and leasehold improvements necessary to support the Company’s operations. Capital expenditures were RMB11.2 million (US$1.7 million) in the first nine months of 2021, compared with RMB22.3 million in the first nine months of 2020.

Outlook

For the fourth quarter of 2021, Sunlands currently expects net revenues to be between RMB590 million to RMB610 million, which would represent an increase of 0.9% to 4.3% year-over-year.

The above outlook is based on the 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 substantial uncertainty.

Exchange Rate

The Company’s business is primarily conducted in China and all revenues are denominated in Renminbi (“RMB”). This announcement contains currency conversions of RMB amounts into U.S. dollars (“US$”) solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.4434 to US$1.00, the effective noon buying rate for September 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on September 30, 2021, or at any other rate.


Conference Call and Webcast

Sunlands’ management team will host a conference call at 7:00 AM U.S. Eastern Time, (8:00 PM Beijing/Hong Kong time) on November 23, 2021, following the quarterly results announcement.

The dial-in details for the live conference call are:

International:

+1-412-902-4272

US toll free:

+1-888-346-8982

Mainland China toll free:

400-120-1203

Hong Kong toll free:

800-905-945

Hong Kong:

+852-3018-4992

Please dial in 10 minutes before the call is scheduled to begin. When prompted, ask to be connected to the call for “Sunlands Technology Group.” Participants will be required to state their name and company upon entering the call.

A live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands’ website at http://www.sunlands.investorroom.com/.

A replay of the conference call will be available 1 hour after the end of the conference call until November 30, 2021, by dialing the following telephone numbers:

International: 

+1-412-317-0088

US toll free:

+1-877-344-7529

Replay access code:

10162001


About Sunlands

Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), formerly known as Sunlands Online Education Group, is the leader in China’s online post-secondary and professional education. With a one to many, live streaming platform, Sunlands offers various degree and diploma-oriented post-secondary courses as well as online professional courses and educational content, to help students prepare for professional certification exams and attain professional skills. Students can access its services either through PC or mobile applications. The Company’s online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company’s proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals.


About Non-GAAP Financial Measures

We use gross billings, EBITDA, non-GAAP Operating cost and expense, non-GAAP loss from operations and Non-GAAP net loss per share, each a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes.

We define gross billings for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net loss excluding depreciation and amortization, interest expense, interest income, and income tax expenses. We believe that gross billings and EBITDA provide valuable insight into the sales of our course packages and the performance of our business.

These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measure prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based compensation expenses, non-GAAP net loss exclude share-based compensation expenses, and basic and diluted net loss per share excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider gross billings and EBITDA as a substitute for, or superior to, their respective most directly comparable financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.


Safe Harbor Statement

This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, 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. Any statements that are not historical facts, including statements about Sunlands’ beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Sunlands’ goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to improve teaching quality and students’ learning results; its ability to improve sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development, results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands’ corporate structure, business and industry; and general economic and business condition in China Further information regarding these and other risks, uncertainties or factors is included in the Sunlands’ filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation to update such information, except as required under applicable law.

For investor and media enquiries, please contact:

Sunlands Technology Group
Investor Relations
Email: [email protected]

The Piacente Group, Inc. 
Brandi Piacente
Tel: +1-212-481-2050
Email: [email protected]

Yang Song

Tel: +86-10-6508-0677
Email: [email protected]

   

 

 


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except for share and per share data, or otherwise noted)

As of December 31,

As of September 30,

2020

2021

RMB

RMB

US$

ASSETS

Current assets

     Cash and cash equivalents

760,710

661,230

102,621

     Short-term investments

517,815

178,765

27,744


Prepaid expenses and other current assets

117,637

164,975


25,604

     Deferred costs, current

158,092

103,447

16,055

Total current assets

1,554,254

1,108,417

172,024

Non-current assets

     Property and equipment, net

511,092

865,929

134,390

     Intangible assets, net

1,211

3,091

480

Land use right, net

13,564

13,359

2,073

     Right-of-use assets

488,877

368,161

57,138

     Deferred costs, non-current

170,160

118,553

18,399

     Long-term investments

64,093

64,199

9,964

     Deferred tax assets

13,015

6,380

990

     Other non-current assets

444,628

40,707

6,318

Total non-current assets

1,706,640

1,480,379

229,752

TOTAL ASSETS

3,260,894

2,588,796

401,776

LIABILITIES AND SHAREHOLDERS’ DEFICIT

LIABILITIES

Current liabilities

Accrued expenses and other current liabilities (including accrued expenses

        and other current liabilities of the consolidated VIEs without recourse to

        Sunlands Technology Group of RMB175,900 and RMB167,167 as of

        December 31, 2020 and September 30, 2021, respectively)

607,789

525,171

81,506

Deferred revenue, current (including deferred revenue, current of the consolidated VIEs

        without recourse to Sunlands Technology Group of RMB435,254 and

        RMB317,243 as of December 31, 2020 and September 30, 2021, respectively)

1,463,165

1,372,983

213,084


Lease liabilities, current portion (including lease liabilities, current portion of the

   consolidated VIEs without recourse to Sunlands Technology Group of RMB15,833 and

        RMB12,974 as of December 31, 2020 and September 30, 2021, respectively)

30,702

19,649

3,049

Payables to acquire buildings (including payables to acquire buildings of the

        consolidated VIEs without recourse to Sunlands Technology Group of nil and nil

        as of December 31, 2020 and September 30, 2021, respectively)

61,540

–

–

Long-term debt, current portion (including long-term debt, current portion of the consolidated VIEs


     without recourse to Sunlands Technology Group of nil and nil

         as of December 31, 2020 and September 30, 2021, respectively)

32,500

38,654

5,999

Total current liabilities

2,195,696

1,956,457

303,638

 

 

 


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-continued

(Amounts in thousands, except for share and per share data, or otherwise noted)

As of December 31,

As of September 30,

2020

2021

RMB

RMB

US$

Non-current liabilities

Deferred revenue, non-current (including deferred revenue, non-current

of the consolidated VIEs without recourse to Sunlands Technology Group of

RMB468,577 and RMB295,146 as of December 31, 2020 and September 30, 2021,

respectively)

1,561,278

1,167,903

181,256

Lease liabilities, non-current portion (including lease liabilities, non-current portion


of the consolidated VIEs without recourse to Sunlands Technology Group of

RMB340,763 and RMB325,003 as of December 31, 2020 and September 30, 2021,

respectively)

532,538

412,022

63,945

    Deferred tax liabilities (including deferred tax liabilities of the consolidated

VIEs without recourse to Sunlands Technology Group of RMB3,203 and RMB2,065

as of December 31, 2020 and September 30, 2021, respectively)

15,220

9,548

1,482

Other non-current liabilities (including other non-current liabilities of the consolidated

VIEs without recourse to Sunlands Technology Group of RMB135 and RMB963

as of December 31, 2020 and September 30, 2021, respectively)

7,664

9,308

1,445


Long-term debt, non-current portion(including long-term debt, non-current portion of the

consolidated VIEs without recourse to Sunlands Technology Group of nil and nil 

as of December 31, 2020 and September 30, 2021, respectively)

160,625

191,636

29,741

Total non-current liabilities

2,277,325

1,790,417

277,869

TOTAL LIABILITIES

4,473,021

3,746,874

581,507

SHAREHOLDERS’ DEFICIT

    Class A ordinary shares (par value of US$0.00005, 796,062,195 shares

authorized; 1,978,621 and 2,085,939 shares issued as of December 31, 2020

and September 30, 2021, respectively; 1,792,560 and 1,899,878 shares

outstanding as of December 31, 2020 and September 30, 2021, respectively)

1

1

–

    Class B ordinary shares (par value of US$0.00005, 826,389 shares

authorized; 826,389 and 826,389 shares issued and outstanding

as of December 31, 2020 and September 30, 2021, respectively)

–

–

–

Class C ordinary shares (par value of US$0.00005, 203,111,416 shares

authorized; 4,110,248 and 4,002,930 shares issued and outstanding

as of December 31, 2020 and September 30, 2021, respectively)

1

1

–

    Treasury stock

–

–

–

    Additional paid-in capital

2,367,168

2,367,464

367,425

    Accumulated deficit

(3,675,129)

(3,609,949)

(560,255)

    Accumulated other comprehensive income

96,490

88,649

13,758

Total Sunlands Technology Group shareholders’ deficit

(1,211,469)

(1,153,834)

(179,072)

Noncontrolling interest

(658)

(4,244)

(659)

TOTAL SHAREHOLDERS’ DEFICIT

(1,212,127)

(1,158,078)

(179,731)

TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT

3,260,894

2,588,796

401,776

 

 

 

 


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except for share and per share data, or otherwise noted)

For the Three Months Ended September 30,

2020

2021

RMB

RMB

US$

Net revenues

541,631

595,128

92,362

Cost of revenues

(92,928)

(83,103)

(12,897)

Gross profit

448,703

512,025

79,465

Operating expenses

     Sales and marketing expenses

(569,424)

(353,508)

(54,864)

     Product development expenses

(18,565)

(13,980)

(2,170)

     General and administrative expenses

(76,100)

(63,156)

(9,802)

Total operating expenses

(664,089)

(430,644)

(66,836)

 (Loss)/income from operations

(215,386)

81,381

12,629

Interest income

5,778

3,144

488

Interest expense

(2,838)

(3,042)

(472)

Other income, net

47,253

12,853

1,995

 (Loss)/income before income tax expenses

(165,193)

94,336

14,640

Income tax expenses

(369)

(1,110)

(172)

Loss from equity method investments

(202)

(431)

(67)

Net (loss)/income

(165,764)

92,795

14,401

Less: Net loss attributable to noncontrolling interest

(80)

(2,506)

(389)

Net (loss)/income attributable to Sunlands Technology Group

(165,684)

95,301

14,790

Net (loss)/income per share attributable to ordinary shareholders of

 Sunlands Technology Group:

     Basic and diluted

(24.62)

14.16

2.20

Weighted average shares used in calculating net (loss)/income

    per ordinary share:

     Basic and diluted

6,729,197

6,729,197

6,729,197

 

 

 


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands)

For the Three Months Ended September 30,

2020

2021

RMB

RMB

US$

Net (loss)/income

(165,764)

92,795

14,401

Other comprehensive loss, net of tax effect of nil:

Change in cumulative foreign currency translation adjustments

(35,782)

(1,105)

(171)

Total comprehensive (loss)/income

(201,546)

91,690

14,230

Less: comprehensive loss attributable to noncontrolling

interest

(80)

(2,506)

(389)

Comprehensive (loss)/income attributable to Sunlands Technology

Group

(201,466)

94,196

14,619

 

 

 


SUNLANDS TECHNOLOGY GROUP


RECONCILIATION OF
GAAP AND
NON-GAAP
RESULTS

(Amounts in thousands)

For the Three Months Ended September 30,

2020

2021

RMB

RMB

Net revenues

541,631

595,128

Less: other revenues

(5,450)

(26,497)

Add: tax and surcharges

57,543

41,674

Add: ending deferred revenue

3,090,296

2,540,886

Add: ending refund liability

239,526

222,266

Less: beginning deferred revenue

(3,066,569)

(2,690,221)

Less: beginning refund liability

(202,651)

(220,745)

Gross billings (non-GAAP)

654,326

462,491

Net (loss)/income

(165,764)

92,795

Add: income tax expenses

369

1,110

depreciation and amortization

10,773

9,561

interest expense

2,838

3,042

Less: interest income

(5,778)

(3,144)

EBITDA (non-GAAP)

(157,562)

103,364

 

 

 


SUNLANDS TECHNOLOGY GROUP


RECONCILIATION OF
GAAP AND
NON-GAAP
RESULTS

(Amounts in thousands)

For the Three Months Ended September 30,

2020

2021

RMB

RMB

Cost of revenues

92,928

83,103

Less: Share-based compensation expenses in cost of revenues

(17)

(39)

Non-GAAP cost of revenues

92,911

83,064

Sales and marketing expenses

569,424

353,508

Less: Share-based compensation expenses in sales and marketing expenses

(14,015)

13

Non-GAAP sales and marketing expenses

555,409

353,521

General and administrative expenses

76,100

63,156

Less: Share-based compensation expenses in general and administrative expenses

(14,128)

(67)

Non-GAAP general and administrative expenses

61,972

63,089

Operating costs and expense

757,017

513,747

Less: Share-based compensation expenses

(28,160)

(93)

Non-GAAP operating costs and expense

728,857

513,654

Loss/(income) from operations

215,386

(81,381)

Less: Share-based compensation expenses

(28,160)

(93)

Non-GAAP loss/(income) from operations

187,226

(81,474)

Net loss/(income) attributable to Sunlands Technology Group

165,684

(95,301)

Less: Share-based compensation expenses

(28,160)

(93)

Non-GAAP net loss/(income) attributable to Sunlands Technology Group

137,524

(95,394)

Net loss/(income) per share attributable to ordinary shareholders of

 Sunlands Technology Group:

     Basic and diluted

24.62

(14.16)

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

 Sunlands Technology Group:

     Basic and diluted

20.44

(14.18)

Weighted average shares used in calculating net loss/(income)

    per ordinary share:

     Basic and diluted

6,729,197

6,729,197

Weighted average shares used in calculating Non-GAAP net loss

    per ordinary share:

     Basic and diluted

6,729,197

6,729,197

 

 

 

 


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except for share and per share data, or otherwise noted)

For the Nine Months Ended September 30,

2020

2021

RMB

RMB

US$

Net revenues

1,619,212

1,918,934

297,814

Cost of revenues

(289,431)

(286,811)

(44,512)

Gross profit

1,329,781

1,632,123

253,302

Operating expenses

     Sales and marketing expenses

(1,515,161)

(1,409,068)

(218,684)

     Product development expenses

(55,930)

(50,669)

(7,864)

     General and administrative expenses

(220,738)

(157,103)

(24,382)

Total operating expenses

(1,791,829)

(1,616,840)

(250,930)

Loss from operations

(462,048)

15,283

2,372

Interest income

18,915

13,157

2,042

Interest expense

(8,966)

(8,029)

(1,246)

Other income, net

93,802

42,301

6,565

Loss before income tax expenses

(358,297)

62,712

9,733

Income tax expenses

1,349

(963)

(149)

Loss from equity method investments

(528)

(155)

(24)

Net (loss)/income

(357,476)

61,594

9,560

Less: Net loss attributable to noncontrolling interest

(87)

(3,586)

(557)

Net (loss)/income attributable to Sunlands Technology Group

(357,389)

65,180

10,117

Net (loss)/income per share attributable to ordinary shareholders of

 Sunlands Technology Group:

     Basic and diluted

(52.85)

9.69

1.50

Weighted average shares used in calculating net (loss)/income

    per ordinary share:

     Basic and diluted

6,762,508

6,729,197

6,729,197

 

 

 


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands)

For the Nine Months Ended September 30,

2020

2021

RMB

RMB

US$

Net (loss)/income

(357,476)

61,594

9,560

Other comprehensive loss, net of tax effect of nil:

Change in cumulative foreign currency translation adjustments

(18,932)

(7,841)

(1,217)

Total comprehensive (loss)/income

(376,408)

53,753

8,343

Less: comprehensive loss attributable to noncontrolling

interest

(87)

(3,586)

(557)

Comprehensive (loss)/income attributable to Sunlands Technology

Group

(376,321)

57,339

8,900

 

 

 


SUNLANDS TECHNOLOGY GROUP


RECONCILIATION OF
GAAP AND
NON-GAAP
RESULTS

(Amounts in thousands)

For the Nine Months Ended September 30,

2020

2021

RMB

RMB

Net revenues

1,619,212

1,918,934

Less: other revenues

(16,438)

(58,208)

Add: tax and surcharges

127,300

119,873

Add: ending deferred revenue

3,090,296

2,540,886

Add: ending refund liability

239,526

222,266

Less: beginning deferred revenue

(3,228,770)

(3,024,443)

Less: beginning refund liability

(128,478)

(232,859)

Gross billings (non-GAAP)

1,702,648

1,486,449

Net loss

(357,476)

61,594

Add: income tax expenses

(1,349)

963

depreciation and amortization

31,256

28,266

interest expense

8,966

8,029

Less: interest income

(18,915)

(13,157)

EBITDA (non-GAAP)

(337,518)

85,695

 

 

 


SUNLANDS TECHNOLOGY GROUP


RECONCILIATION OF
GAAP AND
NON-GAAP
RESULTS

(Amounts in thousands)

For the Nine Months Ended September 30,

2020

2021

RMB

RMB

Cost of revenues

289,431

286,811

Less: Share-based compensation expenses in cost of revenues

(33)

(45)

Non-GAAP cost of revenues

289,398

286,766

Sales and marketing expenses

1,515,161

1,409,068

Less: Share-based compensation expenses in sales and marketing expenses

(14,273)

72

Non-GAAP sales and marketing expenses

1,500,888

1,409,140

General and administrative expenses

220,738

157,103

Less: Share-based compensation expenses in general and administrative expenses

(14,915)

(324)

Non-GAAP general and administrative expenses

205,823

156,779

Operating costs and expense

2,081,260

1,903,651

Less: Share-based compensation expenses

(29,221)

(297)

Non-GAAP operating costs and expense

2,052,039

1,903,354

Loss/(income) from operations

462,048

(15,283)

Less: Share-based compensation expenses

(29,221)

(297)

Non-GAAP loss/(income) from operations

432,827

(15,580)

Net loss/(income) attributable to Sunlands Technology Group

357,389

(65,180)

Less: Share-based compensation expenses

(29,221)

(297)

Non-GAAP net loss/(income) attributable to Sunlands Technology Group

328,168

(65,477)

Net loss/(income) per share attributable to ordinary shareholders of

 Sunlands Technology Group:

     Basic and diluted

52.85

(9.69)

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

 Sunlands Technology Group:

     Basic and diluted

48.53

(9.73)

Weighted average shares used in calculating net loss/(income)

    per ordinary share:

     Basic and diluted

6,762,508

6,729,197

Weighted average shares used in calculating Non-GAAP net loss/(income)

    per ordinary share:

     Basic and diluted

6,762,508

6,729,197

 

Cision View original content:https://www.prnewswire.com/news-releases/sunlands-technology-group-announces-unaudited-third-quarter-2021-financial-results-301430722.html

SOURCE Sunlands Technology Group

Posted on

KANZHUN LIMITED Announces Third Quarter 2021 Unaudited Financial Results

BEIJING, Nov. 23, 2021 (GLOBE NEWSWIRE) — KANZHUN LIMITED (“BOSS Zhipin” or “the Company”) (Nasdaq: BZ), a leading online recruitment platform in China, today announced its unaudited financial results for the third quarter ended September 30, 2021.

Third Quarter 2021 Highlights

• Revenues for the quarter were RMB1,211.8 million (US$188.1 million), an increase of 105.4% from RMB590.1 million for the same quarter of 2020.

• Calculated cash billings1 for the quarter were RMB1,221.0 million (US$189.5 million), an increase of 61.8% from RMB754.8 million for the same quarter of 2020.

• Average monthly active users (MAUs)2 for the quarter were 28.8 million, an increase of 28.6% from 22.4 million for the same quarter of 2020.

• Total paid enterprise customers3 in the twelve months ended September 30, 2021 increased by 110.5% to 4.0 million from 1.9 million in the twelve months ended September 30, 2020.

• Net income for the quarter was RMB286.2 million (US$44.4 million), compared to net income of RMB33.8 million for the same quarter of 2020. Adjusted net income4 for the quarter was RMB385.1 million (US$59.8 million), compared to RMB52.3 million for the same quarter last year.

Mr. Jonathan Peng Zhao, Founder, Chairman and Chief Executive Officer of the Company, commented, “It is inspiring to see the effectiveness of our business model continuing to be validated. In the third quarter, we focused on improving our service for existing users and enhancing our core competencies, continually investing in both platform and data security enhancements. We believe this is a key factor in driving the sustainable growth of our business and creating long-term value. Staying true to our mission and commitments as a public company, we will continue to make valuable contributions to the development of individuals, and to the prosperity of the enterprises we serve, by leveraging the power of technology.”

Mr. Phil Yu Zhang, Chief Financial Officer, further commented, “Our revenues increased by 105.4% year on year to RMB1,211.8 million in the third quarter. Our net income reached RMB286.2 million and our adjusted net income achieved RMB385.1 million, demonstrating the type of healthy and robust margin-profile, that we believe our core online recruitment business can achieve as our business matures. We are firmly committed to continuing investment in talents with headcount of R&D and sales personnel growing sequentially.”

Third Quarter 2021 Unaudited Financial Results


Revenues

Revenues were RMB1,211.8 million (US$188.1 million) in the third quarter of 2021, an increase of 105.4% from RMB590.1 million for the same period in 2020. The increase was primarily due to the growth in revenues from online recruitment services.

• Revenues from online recruitment services were RMB1,197.1 million (US$185.8 million) in the third quarter of 2021, representing an increase of 104.4% from RMB585.6 million for the same period in 2020. The increase was mainly due to the rapid growth in our paid enterprise customer numbers following the expansion of our user base. Total paid enterprise customers increased by 110.5% from 1.9 million in the twelve months ended September 30, 2020 to 4.0 million in the twelve months ended September 30, 2021.

• Revenues from other services, which mainly comprise of paid value-added services offered to job seekers, were RMB14.6 million (US$2.3 million) in the third quarter of 2021, representing an increase of 217.4% from RMB4.6 million for the same period in 2020, benefiting from our continued overall growth in user base.


Operating cost and expenses

Total operating cost and expenses were RMB903.9 million (US$140.3 million) in the third quarter of 2021, representing an increase of 61.7% from RMB559.1 million in the same period of 2020. Total share-based compensation expenses were RMB98.9 million (US$15.4 million) in the third quarter of 2021, compared with RMB18.5 million in the same period of 2020.

• 

Cost of revenues
 were RMB154.8 million (US$24.0 million) in the third quarter of 2021, representing an increase of 124.7% from RMB68.9 million in the same period of 2020, primarily driven by payroll and other employee-related costs, as well as increases in third-party payment processing costs and server and bandwidth costs, resulting from expanded user base and increased transaction volume.

• 

Sales and marketing expenses
were RMB416.4 million (US$64.6 million) in the third quarter of 2021, representing an increase of 46.8% from RMB283.6 million in the same period of 2020, primarily due to increased headcount in sales and marketing personnel and enhanced brand advertising activities.

• 

Research and development expenses
were RMB209.3 million (US$32.5 million) in the third quarter of 2021, representing an increase of 49.9% from RMB139.6 million in the same period of 2020, primarily due to increased headcount in research and development personnel as well as increased share-based compensation expenses.

• 

General and administrative expenses
were RMB123.3 million (US$19.1 million) in the third quarter of 2021, representing an increase of 83.8% from RMB67.1 million in the same period of 2020, primarily due to increased headcount in general and administrative personnel and increased share-based compensation expenses.


Income from operations

Income from operations was RMB311.1 million (US$48.3 million) in the third quarter of 2021, compared to RMB34.4 million in the same period of 2020.


Net income and adjusted net income

Net income was RMB286.2 million (US$44.4 million) in the third quarter of 2021, compared to RMB33.8 million in the same period of 2020.

Adjusted net income was RMB385.1 million (US$59.8 million) in the third quarter of 2021, compared to RMB52.3 million in the same quarter of 2020.


Basic and diluted net income per ADS and adjusted basic and diluted net income per ADS

Basic and diluted net income per ADS attributable to ordinary shareholders were RMB0.66 (US$0.10) and RMB0.62 (US$0.10), respectively, in the third quarter of 2021, compared to basic and diluted net loss per ADS of RMB0.55 in the same period of 2020.

Adjusted basic and diluted net income per ADS attributable to ordinary shareholders4 were RMB0.89 (US$0.14) and RMB0.83 (US$0.13), respectively, in the third quarter of 2021, compared to adjusted basic and diluted net loss per ADS of RMB0.21 in the same period of 2020.


Net cash generated from operating activities

Net cash generated from operating activities was RMB269.9 million (US$41.9 million) in the third quarter of 2021, representing an increase of 13.8% from RMB237.1 million in the same period of 2020.


Cash position

Balance of cash and cash equivalents and short-term investments was RMB11,941.1 million (US$1,853.2 million) as of September 30, 2021, compared to RMB4,534.6 million as of December 31, 2020. The increase was primarily attributable to net proceeds from the initial public offering completed in June 2021 as well as net cash generated from operating activities.

Recent Development

As stated in the press release announced on July 5, 2021, the Company is subject to cybersecurity review by the Cyberspace Administration of China. To facilitate the process, during the review period, the “BOSS Zhipin” app has been required to suspend new user registration in China. The process is still ongoing and the Company is fully cooperating with the regulator in respect of its review.

Outlook

For the fourth quarter of 2021, the Company currently expects its total revenues to be between RMB1.02 billion and RMB1.05 billion, representing a year-on-year increase of 58.1% to 62.8%. This forecast reflects the Company’s current views on the market, operational conditions and the impact of the on-going cybersecurity review, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

_____________________________

1 Calculated cash billings is a non-GAAP financial measure, derived by adding the change in deferred revenue to revenues. For more information on the non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures.”
2 MAUs refer to the number of verified user accounts, including both job seekers and enterprise users, that logged on to our mobile applications in a given month at least once.
3 Paid enterprise customers are defined as enterprise users and company accounts from which we recognize revenues for our online recruitment services.
4 Adjusted net income/(loss) and adjusted basic and diluted net income/(loss) per ADS attributable to ordinary shareholders are non-GAAP financial measures, excluding the impact of share-based compensation expenses. For more information on the non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures.”

Conference Call Information

The Company will host a conference call at 7:00 AM U.S. Eastern Time on Tuesday, November 23, 2021 (8:00 PM Beijing/Hong Kong Time on November 23, 2021) to discuss the financial results. Details for the conference call are as follows:

Event Title: KANZHUN LIMITED Third Quarter 2021 Earnings Conference Call
Conference ID: 9759978
Registration Link: http://apac.directeventreg.com/registration/event/9759978

Upon registration, participants will receive an email containing conference call dial-in details, a passcode, and a unique registrant ID. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

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

A replay of the conference call will be accessible approximately two hours after the conclusion of the live call and will be available until November 30, 2021, via the following details:

International: +61-2-8199-0299
China (Mandarin) Toll Free: 800-870-0206
China Toll Free: 400-632-2162
United States Toll Free: +1-855-452-5696
Hong Kong Toll Free: 800-963-117
Singapore Toll Free: 800-616-2305
Conference ID: 9759978

Exchange Rate

This announcement contains translation of certain RMB amounts into U.S. dollar amounts at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to U.S. dollar were made at the rate of RMB6.4434 to US$1.00, the noon buying rate on September 30, 2021 of RMB as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred could be converted into U.S. dollar or RMB, as the case may be, at any particular rate or at all.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP measures, such as calculated cash billings, adjusted net income/(loss), adjusted net income/(loss) attributable to ordinary shareholders, adjusted basic and diluted net income/(loss) per ordinary share attributable to ordinary shareholders and adjusted basic and diluted net income/(loss) per ADS attributable to ordinary shareholders as supplemental measures to review and assess operating performance. The Company derives calculated cash billings by adding the change in deferred revenue to revenues. The Company uses calculated cash billings to measure and monitor sales growth because the Company generally bills its paid enterprise customers at the time of sales, but may recognize a portion of the related revenue ratably over time. The Company believes calculated cash billings provide valuable insights into the cash that will be generated from sales and is a valuable measure for monitoring service demand and financial performance. The Company defines adjusted net income/(loss) and adjusted net income/(loss) attributable to ordinary shareholders by excluding the impact of share-based compensation expenses, which are non-cash expenses, from the related GAAP measures. The Company believes that these non-GAAP measures help identify underlying trends in the business that could otherwise be distorted by the effect of certain expenses that are included in net income/(loss) and facilitate investors’ assessment of the Company’s operating performance.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The presentation of non-GAAP financial measures should not be considered in isolation from, or as a substitute for most directly comparable financial measures prepared in accordance with GAAP. The non-GAAP measures have material limitations as an analytical metric and may not be calculated in the same manner by all companies, and may not be comparable to other similarly titled measures used by other companies. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

A reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables captioned “Unaudited Reconciliation of GAAP and Non-GAAP results” at the end of this press release.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements which are made 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. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About KANZHUN LIMITED

KANZHUN LIMITED (Nasdaq: BZ) operates the largest online recruitment platform BOSS Zhipin in China in terms of average MAU in 2020. Established seven years ago, the Company connects job seekers and enterprise users in an efficient and seamless manner through its highly interactive mobile app, a transformative product that promotes two-way communication, focuses on intelligent recommendations, and creates new scenarios in the online recruiting process. Benefiting from its large and diverse user base, BOSS Zhipin has developed powerful network effects to deliver higher recruitment efficiency and drive rapid expansion.

For more information, please visit https://ir.zhipin.com.

For investor and media inquiries, please contact:

KANZHUN LIMITED
Investor Relations
Email: [email protected]

THE PIACENTE GROUP, INC.
Email: [email protected]

 
KANZHUN LIMITED

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

(All amounts in thousands, except for share and per share data, unless otherwise noted)
 
    For the three months ended September 30,     For the nine months ended 
September 30, 		 
    2020     2021     2020     2021  
    RMB     RMB     US$     RMB     RMB     US$  
Revenues                                                
Online recruitment services to enterprise customers     585,556       1,197,135       185,792       1,286,141       3,137,054       486,863  
Other services     4,576       14,626       2,270       13,085       31,424       4,877  
Total revenues     590,132       1,211,761       188,062       1,299,226       3,168,478       491,740  
Operating cost and expenses                                                
Cost of revenues(1)     (68,885 )     (154,834 )     (24,030 )     (160,957 )     (404,863 )     (62,834 )
Sales and marketing expenses(1)     (283,595 )     (416,419 )     (64,627 )     (1,026,513 )     (1,569,199 )     (243,536 )
Research and development expenses(1)     (139,592 )     (209,323 )     (32,486 )     (361,407 )     (623,051 )     (96,696 )
General and administrative expenses(1)     (67,052 )     (123,338 )     (19,142 )     (171,343 )     (1,871,950 )     (290,522 )
Total operating cost and expenses     (559,124 )     (903,914 )     (140,285 )     (1,720,220 )     (4,469,063 )     (693,588 )
Other operating income, net     3,400       3,291       511       7,095       10,948       1,699  
Income/(loss) from operations     34,408       311,138       48,288       (413,899 )     (1,289,637 )     (200,149 )
Financial income, net     504       2,737       425       966       6,754       1,048  
Foreign exchange (loss)/gain     (1,099 )     269       42       (2,222 )     (317 )     (49 )
Investment income     734       7,162       1,112       6,321       15,791       2,451  
Other expenses     (746 )     (5,072 )     (787 )     (3,580 )     (6,669 )     (1,035 )
Income/(loss) before income tax expense     33,801       316,234       49,080       (412,414 )     (1,274,078 )     (197,734 )
Income tax expense     –       (30,066 )     (4,666 )     –       (30,066 )     (4,666 )
Net income/(loss)     33,801       286,168       44,414       (412,414 )     (1,304,144 )     (202,400 )
Accretion on convertible redeemable preferred
   shares to redemption value		     (63,805 )     –       –       (193,820 )     (164,065 )     (25,462 )
Net (loss)/income attributable to ordinary shareholders     (30,004 )     286,168       44,414       (606,234 )     (1,468,209 )     (227,862 )
Net income/(loss)     33,801       286,168       44,414       (412,414 )     (1,304,144 )     (202,400 )
Other comprehensive (loss)/income                                                
Foreign currency translation adjustment     (81,662 )     40,385       6,268       (53,171 )     48,269       7,491  
Total comprehensive (loss)/income     (47,861 )     326,553       50,682       (465,585 )     (1,255,875 )     (194,909 )
Weighted average number of ordinary shares                                                
—Basic     109,142,384       861,454,878       861,454,878       107,921,949       420,605,543       420,605,543  
—Diluted     109,142,384       927,370,444       927,370,444       107,921,949       420,605,543       420,605,543  
Net (loss)/income per ordinary share attributable to ordinary shareholders                                                
—Basic     (0.27 )     0.33       0.05       (5.62 )     (3.49 )     (0.54 )
—Diluted     (0.27 )     0.31       0.05       (5.62 )     (3.49 )     (0.54 )
Net (loss)/income per ADS* attributable to ordinary shareholders                                                
—Basic     (0.55 )     0.66       0.10       (11.23 )     (6.98 )     (1.08 )
—Diluted     (0.55 )     0.62       0.10       (11.23 )     (6.98 )     (1.08 )

*
Each
ADS represents two Class A ordinary shares.

(1) Includes share-based compensation expenses as follows:

    For the three months ended 
September 30, 		    For the nine months ended September 30,  
    2020     2021     2020     2021  
    RMB     RMB     US$     RMB     RMB     US$  
Cost of revenues     307       11,431       1,774       939       24,568       3,813  
Sales and marketing expenses     2,080       17,916       2,781       12,968       44,838       6,959  
Research and development expenses     7,451       36,688       5,694       20,391       95,321       14,794  
General and administrative expenses     8,661       32,888       5,104       24,449       1,643,447       255,059  
      18,499       98,923       15,353       58,747       1,808,174       280,625  
                                                 

 
KANZHUN LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share and per share data, unless otherwise noted)
 
    As of  
    December 31, 2020     September 30, 2021  
    RMB     RMB     US$  
ASSETS                        
Current assets                        
Cash and cash equivalents     3,998,203       10,756,365       1,669,362  
Short-term investments     536,401       1,184,760       183,872  
Accounts receivable     6,999       739       115  
Amounts due from related parties     40,799       6,987       1,084  
Prepayments and other current assets     164,910       602,669       93,533  
Total current assets     4,747,312       12,551,520       1,947,966  
Non-current assets                        
Property, equipment and software, net     191,355       272,644       42,314  
Intangible assets, net     549       481       75  
Right-of-use assets, net     144,063       257,651       39,987  
Other non-current assets   –       4,000       621  
Total non-current assets     335,967       534,776       82,997  
Total assets     5,083,279       13,086,296       2,030,963  
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT)/EQUITY                        
Current liabilities                        
Accounts payable     41,856       33,286       5,166  
Deferred revenue     1,200,349       1,879,719       291,728  
Other payable and accrued liabilities     418,259       440,185       68,316  
Operating lease liabilities, current     59,559       100,013       15,522  
Total current liabilities     1,720,023       2,453,203       380,732  
Non-current liabilities                        
Operating lease liabilities, non-current     76,373       158,227       24,557  
Total non-current liabilities     76,373       158,227       24,557  
Total liabilities     1,796,396       2,611,430       405,289  
Mezzanine equity     5,587,000       –       –  
Shareholders’ (deficit)/equity                        
Ordinary shares     81       549       85  
Treasury shares (3,657,853 shares as of December 31, 2020 and nil as of September 30, 2021)     –       –       –  
Additional paid-in capital     452,234       14,482,624       2,247,668  
Accumulated other comprehensive loss     (130,387 )     (82,118 )     (12,744 )
Accumulated deficit     (2,622,045 )     (3,926,189 )     (609,335 )
Total shareholders’ (deficit)/equity     (2,300,117 )     10,474,866       1,625,674  
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity     5,083,279       13,086,296       2,030,963  
                         

 
KANZHUN LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in thousands, except for share and per share data, unless otherwise noted)
 
    For the three months ended September 30,     For the nine months ended September 30,  
    2020     2021     2020     2021  
    RMB     RMB     US$     RMB     RMB     US$  
Net cash generated from/(used in) operating activities     237,128       269,928       41,892       (56,456 )     1,106,471       171,722  
Net cash (used in)/generated from investing activities     (260,519 )     (638,386 )     (99,076 )     797,570       (805,751 )     (125,051 )
Net cash generated from/(used in) financing activities     78,998       (2,370 )     (368 )     1,127,704       6,409,844       994,792  
Effect of exchange rate changes on cash and cash equivalents     (82,763 )     38,234       5,934       (55,258 )     47,598       7,387  
Net (decrease)/increase in cash and cash equivalents     (27,156 )     (332,594 )     (51,618 )     1,813,560       6,758,162       1,048,850  
Cash and cash equivalents at beginning of the period     2,248,071       11,088,959       1,720,980       407,355       3,998,203       620,512  
Cash and cash equivalents at end of the period     2,220,915       10,756,365       1,669,362       2,220,915       10,756,365       1,669,362  
                                                 

 
KANZHUN LIMITED

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for share and per share data, unless otherwise noted)
 
    For the three months ended September 30,     For the nine months ended 
September 30, 		 
    2020     2021     2020     2021  
    RMB     RMB     US$     RMB     RMB     US$  
Revenues     590,132       1,211,761       188,062       1,299,226       3,168,478       491,740  
Add: Change in deferred revenue     164,677       9,241       1,434       290,588       679,370       105,437  
Calculated cash billings     754,809       1,221,002       189,496       1,589,814       3,847,848       597,177  
                                                 
Net income/(loss)     33,801       286,168       44,414       (412,414 )     (1,304,144 )     (202,400 )
Add: Share-based compensation expenses     18,499       98,923       15,353       58,747       1,808,174       280,625  
Adjusted net income/(loss)     52,300       385,091       59,767       (353,667 )     504,030       78,225  
                                                 
Net (loss)/income attributable to ordinary shareholders     (30,004 )     286,168       44,414       (606,234 )     (1,468,209 )     (227,862 )
Add: Share-based compensation expenses     18,499       98,923       15,353       58,747       1,808,174       280,625  
Adjusted net (loss)/income attributable to ordinary shareholders     (11,505 )     385,091       59,767       (547,487 )     339,965       52,763  
                                                 
Weighted average number of ordinary shares                                                
—Basic     109,142,384       861,454,878       861,454,878       107,921,949       420,605,543       420,605,543  
—Diluted     109,142,384       927,370,444       927,370,444       107,921,949       480,361,688       480,361,688  
                                                 
Adjusted net (loss)/income per ordinary share attributable to ordinary shareholders                                                
—Basic     (0.11 )     0.45       0.07       (5.07 )     0.81       0.13  
—Diluted     (0.11 )     0.42       0.06       (5.07 )     0.71       0.11  
                                                 
Adjusted net (loss)/income per ADS attributable to ordinary shareholders                                                
—Basic     (0.21 )     0.89       0.14       (10.15 )     1.62       0.25  
—Diluted     (0.21 )     0.83       0.13       (10.15 )     1.42       0.22  



Posted on

Fanhua’s Regular Life Insurance Business Hits RMB10 Billion by GWP

GUANGZHOU, China, Nov. 23, 2021 (GLOBE NEWSWIRE) — Fanhua Inc. (“Fanhua” or “the Company”) (Nasdaq: FANH), a leading independent financial services provider in China, today announced that as of November 23, 2021, the total regular life insurance business facilitated by Fanhua has exceeded RMB10 billion in terms of gross written premiums (“GWP”), over a month earlier than last year.

About Fanhua Inc.

Fanhua Inc. is a leading independent financial services provider. Through our online platforms and offline sales and service network, we offer a wide variety of financial products and services to individuals, including life and property and casualty insurance products. We also provide insurance claims adjusting services, such as damage assessments, surveys, authentications and loss estimations, as well as value-added services, such as emergency vehicle roadside assistance.

Our online platforms include: (1) Lan Zhanggui, an all-in-one platform which allows our agents to access and purchase a wide variety of insurance products, including life insurance, auto insurance, accident insurance, travel insurance and standard health insurance products from multiple insurance companies on their mobile devices; (2) Baowang (www.baoxian.com), an online entry portal for comparing and purchasing health, accident, travel and homeowner insurance products and (3) eHuzhu (www.ehuzhu.com), a non-profit online mutual aid platform in China.

As of September 30, 2021, our distribution and service network is consisted of 750 sales outlets covering 23 provinces and 110 service outlets covering 31 provinces.

For more information about Fanhua Inc., please visit http://ir.fanhuaholdings.com/.

Forward-looking Statements

This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company’s future financial and operating results, are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Among other things, management’s quotations and the Business Outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Fanhua and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its ability to attract and retain productive agents, especially entrepreneurial agents, its ability to maintain existing and develop new business relationships with insurance companies, its ability to execute its growth strategy, its ability to adapt to the evolving regulatory environment in the Chinese insurance industry, its ability to compete effectively against its competitors, quarterly variations in its operating results caused by factors beyond its control and macroeconomic conditions in China, future development of COVID-19 outbreak and their potential impact on the sales of insurance products. All information provided in this press release is as of the date hereof, and Fanhua undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Fanhua believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Fanhua is included in Fanhua’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.



CONTACT: Investor Relations
Tel: (8620) 83883191
Email: [email protected]

Posted on

XPeng Reports Third Quarter 2021 Unaudited Financial Results

XPeng Reports Third Quarter 2021 Unaudited Financial Results

  • Quarterly vehicle deliveries reached 25,666, a 199.2% increase year-over-year
  • Quarterly total revenues reached RMB5,719.9 million, a 187.4% increase year-over-year
  • Quarterly gross margin reached 14.4%

GUANGZHOU, China–(BUSINESS WIRE)–
XPeng Inc. (“XPeng” or the “Company”, NYSE: XPEV and HKEX: 9868), a leading Chinese smart electric vehicle (“Smart EV”) company, today announced its unaudited financial results for the three months ended September 30, 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211123005688/en/

(Photo: Business Wire)

(Photo: Business Wire)

Operational Highlights for the Three Months Ended September 30, 2021

  • Deliveries of vehicles were 25,666 in the third quarter of 2021, setting a new quarterly record and representing an increase of 199.2% from 8,578 in the corresponding period of 2020 and an increase of 47.5% from 17,398 in the second quarter of 2021.
  • Deliveries of the P7 were 19,731 in the third quarter of 2021, reaching a record quarterly high and representing an increase of 71.2% from 11,522 in the second quarter of 2021.

 

2021Q3

2021Q2

2021Q1

2020Q4

2020Q3

Total deliveries

25,666

17,398

13,340

12,964

8,578

P7 deliveries

19,731

11,522

7,974

8,527

6,210

  • Among the total P7s delivered in the third quarter of 2021, 99% can support XPILOT 2.5 or XPILOT 3.0.
  • XPeng’s physical sales network consisted of a total of 271 stores, covering 95 cities as of September 30, 2021.
  • XPeng-branded super charging stations expanded to 439, covering 121 cities as of September 30, 2021.

Financial Highlights for the Three Months Ended September 30, 2021

  • Total revenues were RMB5,719.9 million (US$887.7 million) for the third quarter of 2021, representing an increase of 187.4% from the same period of 2020, and an increase of 52.1% from the second quarter of 2021.
  • Revenues from vehicle sales were RMB5,460.1 million (US$847.4 million)for the third quarter of 2021, representing an increase of 187.7% from the same period of 2020, and an increase of 52.3% from the second quarter of 2021.
  • Gross margin was 14.4% for the third quarter of 2021, compared with 4.6% for the same period of 2020 and 11.9% for the second quarter of 2021.
  • Vehicle margin, which is gross profit of vehicle sales as a percentage of revenues from vehicle sales, was 13.6% for the third quarter of 2021, compared with 3.2% for the same period of 2020 and 11.0% for the second quarter of 2021.
  • Net loss was RMB1,594.8 million (US$247.5 million) for the third quarter of 2021, compared with RMB1,148.8 million for the same period of 2020 and RMB1,194.6 million for the second quarter of 2021. Excluding share-based compensation expenses and fair value change on derivative liabilities related to the redemption right of preferred shares, non-GAAP net loss was RMB1,492.1 million (US$231.6 million) in the third quarter of 2021, compared with RMB864.9 million for the same period of 2020 and RMB1,096.4 million for the second quarter of 2021.
  • Net loss attributable to ordinary shareholders of XPeng was RMB1,594.8 million (US$247.5 million) for the third quarter of 2021, compared with RMB2,025.8 million for the same period of 2020 and RMB1,194.6 million in the second quarter of 2021. Excluding share-based compensation expenses, fair value change on derivative liabilities related to the redemption right of preferred shares and accretion on preferred shares to redemption value, non-GAAP net loss attributable to ordinary shareholders of XPeng was RMB1,492.1 million (US$231.6 million) for the third quarter of 2021, compared with RMB864.9 million for the same period of 2020 and RMB1,096.4 million for the second quarter of 2021.
  • Basic and diluted net loss per American depositary share (ADS) were both RMB1.89(US$0.29) for the third quarter of 2021. Non-GAAP basic and diluted net loss per ADS were both RMB1.77 (US$0.27) for the third quarter of 2021. Each ADS represents two Class A ordinary shares.
  • Cash and cash equivalents, restricted cash, short-term deposits, short-term investments and long-term deposits were RMB45,357.9 million (US$7,039.4 million)as of September 30, 2021, compared with RMB35,342.1 million as of December 31, 2020 and RMB32,871.2 million as of June 30, 2021.

Key Financial Results

(in RMB millions, except for per ordinary share data and percentages)

 

For the Three Months Ended

% Change1

 

September 30,

June 30,

September 30,

 

2020

2021

2021

YoY

QoQ

Vehicle sales

1,898.0

3,584.4

5,460.1

187.7%

52.3%

Vehicle margin

3.2%

11.0%

13.6%

1,040bp

260bp

 

Total revenues

1,990.1

3,761.3

5,719.9

187.4%

52.1%

Gross profit

91.5

448.6

820.8

796.7%

83.0%

Gross margin

4.6%

11.9%

14.4%

980bp

250bp

 

Net loss

1,148.8

1,194.6

1,594.8

38.8%

33.5%

Non-GAAP net loss

864.9

1,096.4

1,492.1

72.5%

36.1%

 

Net loss attributable to

   ordinary shareholders

 

2,025.8

 

1,194.6

 

1,594.8

 

-21.3%

 

33.5%

Non-GAAP net loss

   attributable to ordinary

   shareholders

 

 

864.9

 

 

1,096.4

 

 

1,492.1

 

 

72.5%

 

 

36.1%

1 Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented

Management Commentary

Mr. He Xiaopeng, Chairman and CEO of XPeng, said, “In the third quarter, we continued record-setting growth with the highest vehicle deliveries among China’s startup new energy vehicle automakers. This outperformance testifies to the market’s recognition of the differentiated value our vertically integrated in-house developed software and hardware bring to our vehicles.”

Mr. He added, “We are committed to advancing the clear roadmap for our full-stack in-house technology and making high-performance smart products accessible to a broader customer base. Our leading technology is further showcased in the upcoming Navigation Guided Pilot (“NGP”) that expands usage to complex city driving scenarios. The solid progress we’ve made in the NGP fuels greater confidence in our ability to explore autonomous driving enabled mobility solutions in the future, such as robotaxi technologies.”

“Looking forward, XPeng will continue to trailblaze new and disruptive advancements that redefine China’s automobile industry, transforming future mobility with technology,” Mr. He concluded.

“We achieved strong growth momentum in the third quarter despite the challenges of semiconductor shortage. Our third quarter delivery number approximated 2020’s full-year delivery total and our year-to-date deliveries more than doubled last year’s full-year delivery count,” said Dr. Hongdi Brian Gu, Honorary Vice Chairman and President of XPeng. “Our record-high deliveries drove significant revenue growth of 187.4% year-over-year in the third quarter with further gross margin expansion. We believe our innovative mindset, outstanding full-stack R&D capabilities and a powerful pipeline of products will continue to drive our future success.”

Recent Developments

Deliveries in October 2021

Total Smart EV deliveries of XPeng reached 10,138 in October 2021, representing a 233% increase year-over-year. The October deliveries consisted of 6,044 P7 smart sports sedans and 3,657 G3 and G3i smart SUVs. The P5, XPeng’s smart family sedan that was officially launched in September 2021, demonstrated strong market appeal with 437 units delivered in October and a solid order backlog. As of October 31, 2021, year-to-date total vehicle deliveries reached 66,542, representing a 289% increase year-over-year. The Company’s cumulative deliveries exceeded 100,000 as at the end of October 2021, reflecting its robust business momentum and customer recognition.

ESG Performance

XPeng released its inaugural Environment Social and Governance Report (https://ir.xiaopeng.com/ESG/default.aspx) on October 15, 2021. XPeng received an “AA” rating from MSCI ESG Research, the highest MSCI ESG rating among automobile companies worldwide in 2021 for the second consecutive year.

XPeng Tech Day 2021: Technology Unveiled

On October 24, 2021, XPeng hosted its third annual 1024 Tech Day event where it unveiled a series of breakthrough innovations, including a mass-production 800V high-voltage SiC platform and lightweight 480kW high-voltage supercharging piles.

Additionally, the Company showcased its XPILOT 3.5 driver assistance system featuring industry-leading capabilities for urban driving scenarios.

The new Smart EV model and 2021 Guangzhou International Automobile Exhibition (“Auto Guangzhou”)

On November 19, 2021, XPeng launched its fourth Smart EV model, the G9, at Auto Guangzhou. The G9 will be the first mass-produced Smart EV that supports XPILOT 4.0. Meanwhile, the G9 will be equipped with an 800V high-voltage SiC platform and XPeng’s new proprietary X-EEA 3.0 electronic and electrical architecture that adopts domain controllers, deeply integrating hardware, software and communications architecture to achieve powerful performance and high flexibility in OTA upgrades.

Flying Vehicle Announces Series A Funding

On October 19, 2021, XPeng’s urban air mobility affiliate, HT Aero, announced that it entered into a definitive agreement with a consortium of investors to raise over US$500 million for its Series A funding, which marked the largest single-tranche fundraising to date in Asia’s low-altitude flying vehicle sector.

Unaudited Financial Results for the Three Months Ended September 30, 2021

Total revenues were RMB5,719.9 million (US$887.7 million) for the third quarter of 2021, representing an increase of 187.4% from RMB1,990.1 million for the same period of 2020 and an increase of 52.1% from RMB3,761.3 million for the second quarter of 2021.

Revenues from vehicle sales were RMB5,460.1 million (US$847.4 million) for the third quarter of 2021, representing an increase of 187.7% from RMB1,898.0 million for the same period of 2020 and an increase of 52.3% from RMB3,584.4 million for the second quarter of 2021. The year-over-year and the quarter-over-quarter increases were mainly attributable to higher vehicle deliveries, especially of the P7, as a result of channel expansion and brand value improvement.

Revenues from services and others were RMB259.9 million (US$40.3 million) for the third quarter of 2021, representing an increase of 182.2% from RMB92.1 million for the same period of 2020 and an increase of 46.9% from RMB176.9 million for the second quarter of 2021. The year-over-year and the quarter-over-quarter increases were mainly attributed to more income from service, parts and accessory sales in line with higher accumulated vehicle sales.

Cost of sales was RMB4,899.1 million (US$760.3 million) for the third quarter of 2021, representing an increase of 158.0% from RMB1,898.6 million for the same period of 2020 and an increase of 47.9% from RMB3,312.7 million for the second quarter of 2021. The year-over-year and the quarter-over-quarter increases were mainly due to the increase of vehicle deliveries as described above.

Gross margin was 14.4% for the third quarter of 2021, compared with 4.6% and 11.9% for the third quarter of 2020 and the second quarter of 2021, respectively.

Vehicle margin was 13.6% for the third quarter of 2021, compared with 3.2% for the same period of 2020 and 11.0% for the second quarter of 2021. The improvement was primarily attributable to better product mix and manufacturing efficiency driven by economies of scale.

Research and development expenses were RMB1,264.2 million (US$196.2 million) for the third quarter of 2021, representing an increase of 99.0% from RMB635.4 million for the same period of 2020 and an increase of 46.4% from RMB863.5 million for the second quarter of 2021. The year-over-year and the quarter-over-quarter increases were mainly due to (i) the increase in employee compensation as a result of expanded research and development staff, and (ii) higher expenses relating to the development of our new models, namely the G9 and the P5, and related software technologies to support future growth.

Selling, general and administrative expenses were RMB1,538.4 million (US$238.8 million) for the third quarter of 2021, representing an increase of 27.8% from RMB1,203.8 million for the same period of 2020 and an increase of 49.3% from RMB1,030.8 million for the second quarter of 2021. The year-over-year and the quarter-over-quarter increases were mainly due to (i) higher marketing, promotional and advertising expenses to support vehicle sales, and (ii) the expansion of our sales network and associated personnel cost, and commission for franchised store sales.

Other income was RMB179.2 million (US$27.8 million) for the third quarter of 2021. The Company received higher government subsidies of approximately RMB312.1 million, offset partially by relocation and disposal cost of approximately RMB132.9 million related to Haima Plant.

Loss from operations was RMB1,802.6 million (US$279.8 million) for the third quarter of 2021, compared with RMB1,744.2 million for the same period of 2020 and RMB1,443.2 million for the second quarter of 2021. The higher year-over-year and quarter-over-quarter losses were mainly attributable to higher operating expenses as described above.

Non-GAAP loss from operations, which excludes share-based compensation expenses, was RMB1,700.0 million (US$263.8 million) for the third quarter of 2021, compared with RMB822.6 million for the same period of 2020 and RMB1,345.0 million for the second quarter of 2021.

Net loss was RMB1,594.8 million (US$247.5 million) for the third quarter of 2021, compared with RMB1,148.8 million for the same period of 2020 and RMB1,194.6 million for the second quarter of 2021.

Non-GAAP net loss, which excludes share-based compensation expenses and fair value change on derivative liabilities related to the redemption right of preferred shares, was RMB1,492.1 million (US$231.6 million) for the third quarter of 2021, compared with RMB864.9 million for the same period of 2020 and RMB1,096.4 million for the second quarter of 2021.

Net loss attributable to ordinary shareholders of XPeng was RMB1,594.8 million (US$247.5 million) for the third quarter of 2021, compared with RMB2,025.8 million for the same period of 2020 and RMB1,194.6 million for the second quarter of 2021.

Non-GAAP net loss attributable to ordinary shareholders of XPeng, which excludes share-based compensation expenses, fair value change on derivative liabilities related to the redemption right of preferred shares and accretion on preferred shares to redemption value, was RMB1,492.1 million (US$231.6 million) for the third quarter of 2021, compared with RMB864.9 million for the same period of 2020 and RMB1,096.4 million for the second quarter of 2021.

Basic and diluted net loss per ADS were both RMB1.89 (US$0.29) for the third quarter of 2021, compared with RMB5.07 for the third quarter of 2020 and RMB1.50 for the second quarter of 2021.

Non-GAAP basic and diluted net loss per ADS were both RMB1.77 (US$0.27) for the third quarter of 2021, compared with RMB2.16 for the third quarter of 2020 and RMB1.38 for the second quarter of 2021.

Balance Sheets

As of September 30, 2021, the Company had cash and cash equivalents, restricted cash, short-term deposits, short-term investments and long-term deposits of RMB45,357.9 million (US$7,039.4 million), compared with RMB35,342.1 million as of December 31, 2020 and RMB32,871.2 million as of June 30, 2021.

Business Outlook

For the fourth quarter of 2021, the Company expects:

  • Deliveries of vehicles to be between 34,500 and 36,500, representing a year-over-year increase of approximately 166.1% to 181.5%.
  • Total revenues to be between RMB7.1 billion and RMB7.5 billion, representing a year-over-year increase of approximately 149.0% to 163.0%.

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

Conference Call

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on November 23, 2021 (9:00 PM Beijing/Hong Kong time on November 23, 2021).

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

United States:

+1-833-654-9168

United Kingdom

+44-208-602-0818

International:

+1-209-313-0576

Hong Kong, China:

+852-5808-6567

China Mainland:

400-682-8629

Conference ID:

2381058

Participants please dial-in at least 5 minutes before the scheduled start time to be connected to the call.

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

A replay of the conference call will be accessible approximately two hours after the conclusion of the call until December 3, 2021, by dialing the following telephone numbers:

United States:

+1-855-859-2056

International:

+1-404-537-3406

Replay Access Code:

2381058

About XPeng

XPeng is a leading Chinese Smart EV company that designs, develops, manufactures, and markets Smart EVs that appeal to the large and growing base of technology-savvy middle-class consumers in China. Its mission is to drive Smart EV transformation with technology and data, shaping the mobility experience of the future. In order to optimize its customers’ mobility experience, XPeng develops in-house its full-stack advanced driver-assistance system technology and in-car intelligent operating system, as well as core vehicle systems including powertrain and the electrification/ electronic architecture. XPeng is headquartered in Guangzhou, China, with main offices in Beijing, Shanghai, Silicon Valley, San Diego and Amsterdam. The Company’s Smart EVs are mainly manufactured at its plant in Zhaoqing, Guangdong province. For more information, please visit https://en.xiaopeng.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic loss per weighted average number of ordinary shares and non-GAAP basic loss per ADS, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, fair value change on derivative liabilities related to the redemption right of preferred shares and/or accretion on preferred shares to redemption value, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and non-GAAP Results” set forth in this announcement.

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 and from U.S. dollars to RMB are made at a rate of RMB6.4434 to US$1.00, the exchange rate on September 30, 2021 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about XPeng’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: XPeng’s goal and strategies; XPeng’s expansion plans; XPeng’s future business development, financial condition and results of operations; the trends in, and size of, China’s EV market; XPeng’s expectations regarding demand for, and market acceptance of, its products and services; XPeng’s expectations regarding its relationships with customers, contract manufacturer, suppliers, third-party service providers, strategic partners and other stakeholders; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in XPeng’s filings with the United States Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and XPeng does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

XPENG INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share and per share data)

 

 

 

31 December,

 

As of

30 September,

 

 

30 September,

2020

(audited)

RMB

 

2021

(unaudited)

RMB

 

2021

(unaudited)

USD

Assets

 

 

 

 

 

Current assets

Cash and cash equivalents

 

29,209,388

 

 

15,393,548

 

 

2,389,041

Restricted cash

2,332,145

 

829,652

 

128,760

Short-term deposits

979,897

 

23,201,524

 

3,600,820

Short-term investments

2,820,711

 

3,393,298

 

526,632

Derivative assets-current

105,183

 

5,037

 

782

Accounts receivable, net

1,128,892

 

2,072,972

 

321,720

Current portion of finance lease

   receivables, net

 

156,069

 

 

573,879

 

 

89,065

Inventory

1,343,025

 

2,306,979

 

358,038

Amounts due from related parties

682

 

22,456

 

3,485

Prepayments and other current assets

1,603,286

 

2,467,881

 

383,005

 

Total current assets

 

39,679,278

 

 

50,267,226

 

 

7,801,348

 

 

 

 

 

 

Non-current assets

 

 

 

Property, plant and equipment, net

3,081,502

4,551,409

706,368

Right-of-use assets

461,184

 

1,250,949

 

194,144

Intangible assets, net

607,781

 

856,911

 

132,991

Land use rights, net

249,934

 

598,578

 

92,898

Finance lease receivables, net

397,467

 

1,333,751

 

206,995

Long-term deposits

—

 

2,539,886

 

394,184

Other non-current assets

228,633

 

152,444

 

23,659

Long-term investments

1,000

 

44,830

 

6,958

 

Total non-current assets

 

5,027,501

 

 

11,328,758

 

 

1,758,197

 

Total assets

 

44,706,779

 

 

61,595,984

 

 

9,559,545

XPENG INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands, except for share and per share data)

 

 

 

31 December,

As of

30 September,

 

30 September,

2020

(audited)

RMB

2021

(unaudited)

RMB

2021

(unaudited)

USD

Liabilities

 

 

 

Current liabilities

 

 

 

Short-term borrowings

127,900

57,000

8,846

Accounts and notes payable

5,111,745

8,840,669

1,372,050

Amount due to a related party

12,062

19,371

3,006

Current portion of lease liabilities

119,565

328,604

50,999

Current portion of deferred revenue

163,617

223,473

34,682

Current portion of long-term borrowings

45,000

—

—

Accruals and other liabilities

2,256,165

3,516,042

545,681

Income taxes payable

1,209

—

—

 

 

 

 

Total current liabilities

7,837,263

12,985,159

2,015,264

 

 

 

 

Non-current liabilities

 

Long-term borrowings

1,645,000

1,323,656

205,428

Lease liabilities — non current

352,501

922,528

143,174

Deferred revenue

144,767

383,089

59,454

Other non-current liabilities

297,439

2,067,996

320,948

 

 

 

 

Total non-current liabilities

2,439,707

4,697,269

729,004

 

 

 

 

Total liabilities

10,276,970

17,682,428

2,744,268

 

 

 

 

Shareholder’s equity

 

 

 

Class A Ordinary shares

63

87

14

Class B Ordinary shares

26

25

4

Class C Ordinary shares

12

—

—

Additional paid in capital

46,482,512

59,891,688

9,295,044

Accumulated other comprehensive loss

(730,381)

(1,079,890)

(167,596)

Accumulated deficit

(11,322,423)

(14,898,354)

(2,312,189)

 

 

 

 

Total shareholders’ equity

34,429,809

43,913,556

6,815,277

 

 

 

 

Noncontrolling interests

—

—

—

 

 

 

 

Total shareholders’ equity

34,429,809

43,913,556

6,815,277

 

 

 

 

Total liabilities, mezzanine equity and

   shareholders’ equity

44,706,779

61,595,984

9,559,545

XPENG INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME/(LOSS)

(All amounts in thousands, except for share and per share data)

 

Three Months Ended

September 30,

June 30,

September 30,

September 30,

 

2020

(unaudited)

2021

(unaudited)

2021

(unaudited)

2021

(unaudited)

RMB

RMB

RMB

USD

Revenues

 

 

 

 

— Vehicle sales

1,898,041

 

3,584,364

 

5,460,063

 

847,388

 

— Services and others

92,078

 

176,915

 

259,855

 

40,329

 

 

Total revenues

1,990,119

 

3,761,279

 

5,719,918

 

887,717

 

 

Cost of sales

 

 

 

 

— Vehicle sales

(1,836,756

)

(3,191,489

)

(4,718,809

)

(732,348

)

— Services and others

(61,822

)

(121,210

)

(180,285

)

(27,980

)
 

Total cost of sales

(1,898,578

)

(3,312,699

)

(4,899,094

)

(760,328

)
 

Gross profit

91,541

 

448,580

 

820,824

 

127,389

 

 

Operating expenses

 

 

 

 

Research and development

 

 

 

 

   expenses

(635,373

)

(863,524

)

(1,264,240

)

(196,207

)

Selling, general and administrative

 

 

 

 

   expenses

(1,203,792

)

(1,030,767

)

(1,538,420

)

(238,759

)
 

Total operating expenses

(1,839,165

)

(1,894,291

)

(2,802,660

)

(434,966

)
 

Other income

3,440

 

2,546

 

179,196

 

27,811

 

 

Loss from operations

(1,744,184

)

(1,443,165

)

(1,802,640

)

(279,766

)
 

Interest income

23,216

 

150,029

 

193,888

 

30,091

 

Interest expense

(3,926

)

(24,006

)

(16,347

)

(2,537

)

Fair value gain on derivative

 

 

 

 

   liabilities

620,209

 

77,790

 

30,190

 

4,685

 

Other non-operating (loss)/income,

   net

(44,070

)

44,783

 

411

 

64

 

 

Loss before income taxes

(1,148,755

)

(1,194,569

)

(1,594,498

)

(247,463

)
 

Income tax expenses

(6

)

—

 

(303

)

(47

)
 

Net loss

(1,148,761

)

(1,194,569

)

(1,594,801

)

(247,510

)
 

Accretion on Preferred Shares to

 

 

 

 

   redemption value

(877,007

)

—

 

—

 

—

 

 

Net loss attributable to ordinary

 

 

 

 

   shareholders of XPeng Inc.

(2,025,768

)

(1,194,569

)

(1,594,801

)

(247,510

)

XPENG INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME/(LOSS) (CONTINUED)

(All amounts in thousands, except for share and per share data)

 

Three Months Ended

September 30,

June 30,

September 30,

September 30,

 

2020

(unaudited)

2021

(unaudited)

2021

(unaudited)

2021

(unaudited)

 

RMB

RMB

RMB

USD

Net loss

(1,148,761)

(1,194,569)

(1,594,801)

(247,510)

Other comprehensive loss

 

 

 

 

Foreign currency translation

 

 

 

 

   adjustment, net of nil tax

(143,220)

(424,123)

(26,478)

(4,109)

Total comprehensive loss

(1,291,981)

(1,618,692)

(1,621,279)

(251,619)

 

 

 

 

 

Accretion on Preferred Shares to

   redemption value

(877,007)

—

—

—

 

 

 

 

 

Comprehensive loss attributable

to ordinary shareholders of

   XPeng Inc.

(2,168,988)

(1,618,692)

(1,621,279)

(251,619)

 

 

Weighted average number

   of ordinary shares used in

   computing net loss per share

Basic and diluted

 

799,364,696

 

1,592,387,877

 

1,689,885,370

 

1,689,885,370
 

Net loss per share attributable to

   ordinary shareholders

Basic and diluted

(2.53)

(0.75)

(0.94)

(0.15)
 

Weighted average number of

   ADS used in computing net loss

   per share

Basic and diluted

399,682,348

796,193,938

844,942,685

844,942,685
 

Net loss per ADS attributable to

   ordinary shareholders

 

 

 

 

Basic and diluted

(5.07)

(1.50)

(1.89)

(0.29)

XPENG INC.

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for share and per share data)

   
 

Three Months Ended
 

September 30,

 

June 30,

 

September 30,

  

September 30,

 

 

2020

(unaudited)

 

2021

(unaudited)

 

2021

(unaudited)

  

2021

(unaudited)

 

 

RMB

  

RMB

  

RMB

  

USD

Loss from operations

 

(1,744,184

)

 

(1,443,165

)

 

(1,802,640

)

  

(279,766

)

Share-based compensation

 

 

 

 

 

 

 

 

expenses

 

921,610

 

 

98,153

 

 

102,673

 

 

15,935

 

         

Non-GAAP loss from operations

  

(822,574

)

 

(1,345,012

)

 

(1,699,967

)

  

(263,831

)

Net loss

 

(1,148,761

)

 

(1,194,569

)

 

(1,594,801

)

  

(247,510

)

Fair value gain of convertible

 

 

 

 

 

 

 

 

   redeemable preferred shares

 

(637,779

)

 

—

 

 

—

 

 

—

 

Share-based compensation

 

 

 

 

 

 

 

 

   expenses

 

921,610

 

 

98,153

 

 

102,673

 

 

15,935

 

         

Non-GAAP net loss

  

(864,930

)

 

(1,096,416

)

 

(1,492,128

)

  

(231,575

)
         

Net loss attributable to ordinary

 

 

 

 

 

 

 

 

   shareholders

 

(2,025,768

)

 

(1,194,569

)

 

(1,594,801

)

  

(247,510

)

Fair value gain of convertible

 

 

 

 

 

 

 

 

   redeemable preferred shares

 

(637,779

)

 

—

 

 

—

 

 

—

 

Share-based compensation

   

 

 

 

 

 

   expenses

 

921,610

 

 

98,153

 

 

102,673

 

 

15,935

 

Accretion on Preferred Shares to

   

 

 

 

 

 

   redemption value

 

877,007

 

 

—

 

 

—

 

 

—

 

 

Non-GAAP net loss attributable

  

 

 

 

 

 

 

 

to ordinary shareholders of

  

 

 

 

 

 

 

 

XPeng Inc.

  

(864,930

)

 

(1,096,416

)

 

(1,492,128

)

  

(231,575

)
         

Weighted average number

   of ordinary shares used in

   calculating Non-GAAP net loss

   per share

Basic and diluted

 

799,364,696

 

 

1,592,387,877

 

 

1,689,885,370

 

 

1,689,885,370

 

         

Non-GAAP net loss per ordinary

   share

Basic and diluted

 

(1.08

)

 

(0.69

)

 

(0.88

)

  

(0.14

)
         

Weighted average number of

   ADS used in calculating

   Non-GAAP net loss per share

Basic and diluted

 

399,682,348

 

 

796,193,938

 

 

844,942,685

 

 

844,942,685

 

         

Non-GAAP net loss per ADS

Basic and diluted

 

(2.16

)

 

(1.38

)

 

(1.77

)

  

(0.27

)

 

For Investor Enquiries

IR Department XPeng Inc.

E-mail: [email protected]

Jenny Cai

The Piacente Group

Tel: +1-212-481-2050 or +86-10-6508-0677

E-mail: [email protected]

For Media Enquiries

Marie Cheung XPeng Inc.

Tel: +852-9750-5170/+86-1550-7577-546

E-mail: [email protected]

KEYWORDS: China Asia Pacific

INDUSTRY KEYWORDS: Alternative Vehicles/Fuels Automotive Manufacturing Manufacturing General Automotive Automotive

MEDIA:

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Tarena International, Inc. Announces the Results for the Third Quarter of 2021

PR Newswire

BEIJING, Nov. 23, 2021 /PRNewswire/ — Tarena International, Inc. (NASDAQ: TEDU) (“Tarena” or the “Company”), a leading provider of adult professional education and childhood & adolescent quality education services in China, today announced its unaudited financial results for the third quarter ended September 30, 2021.

Highlights for the Third Quarter of 2021     

  • Net revenues decreased by 0.9% year-over-year to RMB615.2 million (US$95.5 million), from RMB620.8 million in the same period of 2020.
  • Net revenue from adult professional education business, which represented 45.9% of the total net revenues, decreased by 14.7% year-over-year to RMB282.6 million (US$43.9 million), from RMB331.2 million in the same period of 2020.
  • Net revenue from childhood & adolescent quality education business, which represented 54.1% of the total net revenues, increased by 14.8% year-over-year to RMB332.6 million (US$51.6 million), from RMB289.6 million in the same period of 2020. 
  • Gross profit decreased by 10.5% year-over-year to RMB313.2 million (US$48.6 million), from RMB350.0 million in the same period of 2020.
  • Gross profit margin decreased by 5.5% points year-over-year to 50.9%, from 56.4% in the same period of 2020.
  • Operating loss increased by 56.5% to a loss of RMB88.5 million (US$13.7 million), from a loss of RMB56.6 million in the same period of 2020.
  • Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB84.4 million (US$13.1 million), compared to non-GAAP operating loss of RMB49.2 million in the same period of 2020.
  • Net loss was RMB94.7 million (US$14.7 million), compared to net loss of RMB63.9 million in the same period of 2020.
  • Non-GAAP net loss, which excluded share-based compensation expenses, was RMB90.5 million (US$14.0 million), compared to non-GAAP net loss of RMB56.5 million in the same period of 2020.
  • Basic and diluted loss per American Depositary Share (“ADS”) was RMB1.64(US$0.25), compared to loss per ADS of RMB1.16 in the third quarter of 2020.
  • Cash, cash equivalents and time deposits, including current and non-current, and restricted cash totaled RMB304.8 million (US$47.3 million) as of September 30, 2021, compared to RMB364.8 million as of December 31, 2020.
  • Net cash outflow from operating activities in the third quarter of 2021 was RMB35.4 million (US$5.5 million). Net cash inflow from investing activities in the third quarter of 2021 was RMB28.6 million (US$4.4 million).
  • Deferred revenue totaled RMB2,063.0 million (US$320.2 million) as of September 30, 2021, compared to RMB1,998.2 million as of December 31, 2020, representing an increase of 3.2%.
  • Total student enrollments in adult professional education business, defined as the total number of courses enrolled by students during that period, including multiple courses enrolled by the same student, in the third quarter of 2021 decreased by 13.0% year-over-year to 33,400.
  • Total number of learning centers in adult professional education decreased to 100 as of September 30, 2021, from 106 as of September 30, 2020.
  • Total student enrollments in childhood & adolescent quality education business, defined as the total number of students who attended at least one paid lesson during that period or have deposit balances in their accounts at the end of that period, in the third quarter of 2021 reached 146,900, increased by 19.6%, compared to the student enrollments of 122,800 in the same period of 2020.
  • Total number of learning centers in childhood & adolescent quality education increased to 238 as of September 30, 2021, from 236 as of September 30, 2020.

Highlights for the Nine Months Ended September 30, 2021

  • Net revenues increased by 38.8% year-over-year to RMB1,731.2 million (US$268.7 million), from RMB1,247.6 million in the same period in 2020.
  • Net revenue from adult professional education business, which represented 48.0% of the total net revenues, increased by 6.0% year-over-year to RMB830.9 million (US$129.0 million), from RMB783.7 million in the same period of 2020.
  • Net revenue from childhood & adolescent quality education business, which represented 52.0% of the total net revenues, increased by 94.1% year-over-year to RMB900.3 million (US$139.7 million), from RMB463.9 million in the same period of 2020.
  • Gross profit increased by 81.6% year-over-year to RMB857.5 million (US$133.1 million), from RMB472.3 million in the same period in 2020.
  • Gross profit margin increased by 11.6% points year-over-year to 49.5%, from 37.9% in the same period of 2020.
  • Operating loss was RMB308.7 million (US$47.9 million), compared to operating loss of RMB721.3 million in the same period in 2020.
  • Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB293.6 million (US$45.6 million), compared to non-GAAP operating loss of RMB692.6 million in the same period in 2020.
  • Net loss was RMB293.2 million (US$45.5 million), compared to net loss of RMB676.5 million in the same period in 2020.
  • Non-GAAP net loss, which excluded share-based compensation expenses, was RMB278.0 million (US$43.2 million), compared to non-GAAP net loss of RMB647.8 million in the same period in 2020.
  • Basic and diluted loss per American Depositary Share (“ADS”) was RMB5.20(US$0.81). 
  • Total student enrollments in adult professional education business, defined as the total number of courses enrolled by students during that period, including multiple courses enrolled by the same student, in the first nine of 2021 decreased by 8.9% year-over-year to 55,400.
  • Total student enrollments in childhood & adolescent quality education business, defined as the total number of students who attended at least one paid lesson during that period or have deposit balances in their accounts at the end of that period, in the first nine of 2021 reached 163,300, increased by 32.5%, compared to the student enrollments of 123,200 in the same period of 2020.

Key Financial Results


For the Three Months Ended


September 30,


Variance


% of
change


For the Nine Months Ended


September 30,


Variance


% of
change


2020


2021


2020


2021


RMB


RMB


RMB


RMB


RMB


RMB


(in thousands, except for percentages)


Net revenues


620,802


615,175


(5,627)


-0.9


1,247,628


1,731,219


483,591


38.8


Cost of revenues

(a)


(270,842)


(302,008)


(31,166)


11.5


(775,369)


(873,730)


(98,361)


12.7


Gross profit


349,960


313,167


(36,793)


-10.5


472,259


857,489


385,230


81.6


Gross margin


56.4%


50.9%


-5.5%


37.9%


49.5%


11.6%

Selling and marketing
expenses(a)

(239,211)

(223,651)

15,560

-6.5

(682,995)

(656,284)

26,711

-3.9

General and administrative
expenses(a)

(143,072)

(151,509)

(8,437)

5.9

(435,296)

(437,520)

(2,224)

0.5

Research and development
expenses(a)

(24,256)

(26,552)

(2,296)

9.5

(75,219)

(72,434)

2,785

-3.7


Total operating expenses


(406,539)


(401,712)


4,827


-1.2


(1,193,510)


(1,166,238)


27,272


-2.3


Operating loss


(56,579)


(88,545)


(31,966)


56.5


(721,251)


(308,749)


412,502


-57.2

Notes:

(a)   Includes share-based compensation expenses.

“In the third quarter of 2021, there were adverse climate and weather conditions affecting our business, such as flooding and typhoon incidents, as well as COVID-19 cases sporadically occurred in some areas of China. In response to these issues, we have implemented and executed appropriate measures, including but not limited to transferring offline, on-site students to online lessons, to deal with these types of difficulties.  Our total net revenues decreased by 0.9% to RMB615.2 million in the third quarter of 2021, from RMB620.8 million in the same period of last year.  Net revenues from our childhood & adolescent quality education business, which represent about 54.1% of our total net revenues, increased by 14.8% to RMB332.6 million in the third quarter of 2021, from RMB289.6 million in the same period of 2020.  Student enrollments of childhood and adolescent quality education increased by about 19.6% to 146,900 in the third quarter of 2021, from 122,800 in the same period of last year.  Net revenues from the adult professional education business, which represent about 45.9% of our total net revenue decreased by 14.7% to RMB282.6 million in the third quarter of 2021, from RMB331.2 million in the same period last year.  Due to the decrease in net revenue from adult profession education, our gross profit margin decreased by 5.5 percentage points to 50.9% in the third quarter of 2021 from 56.4% in the same period of 2020.” remarked Ms. Ying Sun, the Chief Executive Officer of Tarena.

“With the implementation of the national policy to ease the burden of excessive homework and off-campus tutoring for students in compulsory education, we understood that, instead of subject-based curricula, only quality education, which emphasizes and provokes the growth of children and adolescent, may receive long-term supports from the government. We shall definitely follow and comply with all the statutory required policies and be a staunch force in providing quality-oriented education in science and information technology. We are so delighted to note that, according to those policies recently announced and published by the Chinese government, adult professional education is highly encouraged and promoted. We will continue to upgrade the quality of our comprehensive products and services and uplift our operational efficiencies.” concluded Ms. Ying Sun.

Financial Results for the Third Quarter of 2021


Net Revenues

Total net revenues decreased by 0.9% to RMB615.2 million (US$95.5 million) in the third quarter of 2021, from RMB620.8 million in the same period of 2020.

Net revenue from adult professional education business decreased by 14.7% to RMB282.6 million (US$43.9 million) in the third quarter of 2021, from RMB331.2 million in same period of 2020. The decrease was primarily due to decrease in student enrollments from 38,400 in the third quarter of 2020 to 33,400 in the same period of this year.

Net revenue from childhood & adolescent quality education business increased by 14.8% to RMB332.6 million (US$51.6 million) in the third quarter of 2021, from RMB289.6 million in same period of 2020. The increase was primarily due to increase in student enrollments from 122,800 in the third quarter of 2020 to 146,900 in the same period of 2021.


Cost of Revenues

Cost of revenues increased by 11.5% to RMB302.0 million (US$46.9 million) in the third quarter of 2021, from RMB270.8 million in the same period of 2020. The increase was primarily due to increase in personnel-related costs resulting from growing number of teaching staff at our childhood & adolescent quality education learning centers and, increase in social security fees which were exempted according to the preferential policies enacted by the government during COVID-19 pandemic in the third quarter of 2020 but were not exempted in the third quarter of 2021.


Gross Profit and Gross Margin

Gross profit decreased by 10.5% to RMB313.2 million (US$48.6 million) in the third quarter of 2021, from RMB350.0 million in the same period of 2020. Gross margin, which is equal to gross profit divided by net revenues, was 50.9% in the third quarter of 2021, compared to 56.4% in the same period of 2020. The decrease was mainly attributable to the decrease in net revenue from adult professional education, which results in decrease in its gross profit and gross margin in the third quarter of 2021.


Operating Expenses

Total operating expenses decreased by 1.2% to RMB401.7 million (US$62.3 million) in the third quarter of 2021, from RMB406.5 million in the same period of 2020. Total non-GAAP operating expenses, which excluded share-based compensation expenses, decreased by 0.4% to RMB397.7 million (US$61.7 million) in the third quarter of 2021, from RMB399.3 million in the same period of 2020. Total share-based compensation expenses allocated to the related operating expenses decreased by 45.4% to RMB4.0 million (US$0.6 million) in the third quarter of 2021, from RMB7.3 million in the same period of 2020.

Selling and marketing expenses decreased by 6.5% to RMB223.7 million (US$34.7 million) in the third quarter of 2021, from RMB239.2 million in the same period of 2020. The decrease was mainly due to decrease in advertising expenses in the third quarter of 2021 as compared to the advertising expenses incurred in the same period of 2020.

General and administrative expenses increased by 5.9% to RMB151.5 million (US$23.5 million) in the third quarter of 2021, from RMB143.1 million in the same period of 2020. The increase was mainly due to a one-time charge of the loss arising from the disposal of property, and partially offset by decrease in office and other miscellaneous expenses.

Research and development expenses increased by 9.5% to RMB26.6 million (US$4.1 million) in the third quarter of 2021, from RMB24.3 million in the same period of 2020. The increase was mainly due to increase in social security fees which were exempted according to the preferential policies enacted by the government during COVID-19 pandemic in the third quarter of 2020 but were not exempted in the third quarter of 2021.


Operating Loss

Operating loss was RMB88.5 million (US$13.7 million) in the third quarter of 2021, compared to operating loss of RMB56.6 million in the same period of 2020. Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB84.4 million (US$13.1 million) in the third quarter of 2021, compared to non-GAAP operating loss of RMB49.2 million in the same period of 2020.


Interest Income

Net interest income was RMB0.4 million (US$0.1 million) in the third quarter of 2021, compared to net interest income of RMB3.3 million in the same period of 2020.


Other Income

Other income was RMB1.7 million (US$0.3 million) in the third quarter of 2021, compared to other income of RMB2.9 million in the same period of 2020. The income was mostly from government grant offered to our learning centers.


Foreign Exchange Loss

Foreign exchange loss was RMB0.2 million (US$0.0 million) in the third quarter of 2021, compared to foreign exchange loss of RMB3.4 million in the same period of 2020.


Income Tax Expense

The Company recorded an income tax expense of RMB8.0 million (US$1.2 million) in the third quarter of 2021, compared to income tax expense of RMB10.1 million in the same period of 2020.


Net Loss

As a result of the foregoing, net loss was RMB94.7 million (US$14.7 million) in the third quarter of 2021, compared to net loss of RMB63.9 million in the same period of 2020. Non-GAAP net loss, which excluded share-based compensation expenses, was RMB90.5 million (US$14.0 million) in the third quarter of 2021, compared to non-GAAP net loss of RMB56.5 million in the same period of 2020.


Basic and Diluted Loss per ADS

Loss per ADS was RMB1.64 (US$0.25) in the third quarter of 2021, compared to loss per ADS of RMB1.16 in the third quarter of 2020. Non-GAAP loss per ADS, which excluded share-based compensation expenses, was RMB1.57(US$0.24) in the third quarter of 2021, compared to non-GAAP loss per ADS of RMB1.02 in the third quarter of 2020.


Cash Flow

Net cash outflow used in operating activities in the third quarter of 2021 was RMB35.4 million (US$5.5 million). Net cash inflow from investing activities in the third quarter of 2021 was RMB28.6 million (US$4.4 million). The net proceeds from the disposal of property and office equipment in the third quarter of 2021 were RMB46.0 million (US$7.1 million) and RMB0.7 million (US$0.1 million), respectively. Capital expenditure incurred on leasehold improvement and office equipment in the third quarter of 2021 was RMB17.9 million (US$2.8 million). 

Financial Results for the Nine Months Ended September 30, 2021


Net Revenues

Total net revenues increased by 38.8% to RMB1,731.2 million (US$268.7 million) in the first nine months of 2021, from RMB1,247.6 million in the same period of 2020. The increase was mainly due to increase in student enrollments of childhood & adolescent quality education from 123,200 in the first nine months of 2020 to 163,300 in the same period of this year. Net revenue from childhood & adolescent quality education increased by 94.1% from RMB463.9 million in the first nine months of 2020 to RMB900.3 million (US$139.7 million) in the same period of this year.


Cost of Revenues

Cost of revenues increased by 12.7% to RMB873.7 million (US$135.6 million) in the first nine months of 2021, from RMB775.4 million in the same period of 2020. The increase was primarily due to increase in personnel-related costs resulting from growing number of teaching staff at our childhood & adolescent quality education learning centers and increase in social security fees which were exempted according to the preferential policies enacted by the government during COVID-19 pandemic in the first nine months of 2020 but were not exempted in the first nine months of 2021.


Gross Profit and Gross Margin

Gross profit increased by 81.6% to RMB857.5 million (US$133.1 million) in the first nine months of 2021, from RMB472.3 million in the same period of 2020. Gross margin, which is equal to gross profit divided by net revenues, was 49.5% in the first nine months of 2021, compared with 37.9% in the same period of 2020. The significant increase in gross margin was primarily because the increase in total net revenue largely outweighed the increase in cost of revenue in the first nine months of 2021.


Operating Expenses

Total operating expenses decreased by 2.3% to RMB1,166.2 million (US$181.0 million) in the first nine months of 2021, from RMB1,193.5 million in the same period of 2020. Total non-GAAP operating expenses, which excluded share-based compensation expenses, decreased by 1.2% to RMB1,151.6 million (US$178.7 million) in the first nine months of 2021, from RMB1,165.2 million in the same period of 2020. Total share-based compensation expenses allocated to the related operating expenses decreased by 48.3% to RMB14.6 million (US$2.3 million) in the first nine months of 2021, from RMB28.3 million in the same period of 2020.

Selling and marketing expenses decreased by 3.9% to RMB656.3 million (US$101.9 million) in the first nine months of 2021, from RMB683.0 million in the same period of 2020. The decline was mainly due to decrease in advertising expenses incurred in the first nine months of this year.

General and administrative expenses increased by 0.5% to RMB437.5 million (US$67.9 million) in the first nine months of 2021, from RMB435.3 million in the same period of 2020. The increase was mainly due to the loss on disposal of property and the increase of the employees’ social security fees which were exempted according to the preferential policies enacted by the government during COVID-19 pandemic in the first nine months of 2020 but were not exempted in the same period of 2021, partially offset by one-time professional expenses related to financial restatement and internal control improvement advisory incurred in the same period of last year.

Research and development expenses decreased by 3.7% to RMB72.4 million (US$11.2 million) in the first nine months of 2021, from RMB75.2 million in the same period of 2020. The decline was mainly due to the decrease in personnel-related costs and welfare expenses as the number of staff decreased.


Operating Loss

Operating loss was RMB308.7 million (US$47.9 million) in the first nine months of 2021, compared to operating loss of RMB721.3 million in the same period of 2020. Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB293.6 million (US$45.6 million) in the first nine months of 2021, compared to non-GAAP operating loss of RMB692.6 million in the same period of 2020.      


Interest Income

Net interest income was RMB1.6 million (US$0.2 million) in the first nine months of 2021, compared to interest income of RMB1.3 million in the same period in 2020.


Other Income

Other income was RMB2.8 million (US$0.4 million) in the first nine months of 2021, compared to RMB3.2 million in other income in the same period of 2020. The income was mostly from government grants offered to learning centers.


Foreign Exchange Loss

Foreign exchange loss was RMB0.5 million (US$0.1 million) in the first nine months of 2021, compared to RMB1.7 million foreign exchange loss in the same period of 2020.


Income Tax Benefit

The Company recorded an income tax benefit of RMB11.6 million (US$1.8 million) in the first nine months of 2021, compared to RMB42.1 million in income tax benefit in the same period of 2020.


Net Loss

As a result of the foregoing, net loss was RMB293.2 million (US$45.5 million) in the first nine months of 2021, compared to net loss of RMB676.5 million in the same period of 2020. Non-GAAP net loss, which excluded share-based compensation expenses, was RMB278.0 million (US$43.1 million) in the first nine months of 2021, compared to non-GAAP net loss of RMB647.8 million in the same period of 2020.


Basic and Diluted Loss per ADS

Loss per ADS was RMB5.20(US$0.81) in the first nine months of 2021. Non-GAAP loss per ADS, which excluded share-based compensation expenses, was RMB4.93(US$0.77) in the first nine months of 2021.


Cash Flow

Net cash outflow from operating activities in the first nine months of 2021 was RMB120.9 million (US$18.8 million). Net cash inflow from investing activities in the first nine months of 2021 was RMB53.3 million (US$8.3 million). The net proceeds from the disposal of property and office equipment in the first nine months of 2021 were RMB92 million (US$14.3 million) and RMB1.7 million (US$0.3 million), respectively. Capital expenditure on leasehold improvement and office equipment was RMB46.8 million (US$7.3 million) in the first nine months of 2021.

Recent Developments Regarding Going Private Transaction

On April 30, 2021, the Company announced that it entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Kidedu Holdings Limited (“Parent”) and Kidarena Merger Sub, a wholly owned subsidiary of Parent (“Merger Sub”). Pursuant to the Merger Agreement, Merger Sub will merge with and into the Company, with the Company continuing as the surviving company and becoming a wholly owned subsidiary of Parent (the “Merger”), in a transaction at US$4 per share. On November 15, 2021, the Company and the buyer group (the “Buyer Group Parties”) consisting of Mr. Han Shaoyun, Ascendent Capital Partners III, L.P., Parent, Merger Sub and Kidtech Limited, a wholly owned subsidiary of Mr. Han Shaoyun, entered into a termination and settlement agreement (the “Termination Agreement”) to mutually terminate the Merger Agreement.  Pursuant to the Termination Agreement, the Buyer Group Parties will pay a settlement payment of US$3.53 million to the Company by November 26, 2021. The Merger Agreement will be terminated upon receipt by the Company of such payment in full within the aforementioned time period.

Business Outlook

Based on the Company’s current estimates, total net revenues for the fourth quarter of 2021 are expected to be in the range of RMB610 million and RMB640 million, after taking into consideration the seasonal fluctuation factor and the likely continued impact of the COVID-19.

This guidance is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions, which are subject to change, particularly as to the potential impact of COVID-19 on the economy in China and elsewhere in the world.

Exchange Rate Information

All translations made in the financial statements or elsewhere in this press release made from RMB into United States dollars (“US$”) are solely for convenience and calculated at the rate of US$1.00=RMB6.4434, representing the exchange rate as of September 30, 2021, set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rate, on September 30, 2021.

Conference Call

Company management will hold an earnings conference call and live webcast to discuss the Company’s results at 7:00 AM on November 23, 2021, U.S. Eastern Time (8:00 PM on November 23, 2021, Beijing Time).

Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique registrant ID.

Conference call registration link: http://apac.directeventreg.com/registration/event/9058508. It will automatically direct you to the registration page of “Tarena’s Third Quarter 2021 Earnings Conference Call ” where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter “9058508 “.

In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s), direct event passcode and registrant ID) provided in the confirmation email received at the point of registering.

A replay of the conference call may be accessed by phone at the following number until November 30, 2021, 07:59 ET:

United States:

+1 855 452 5696

INTERNATIONAL:

+61 2 8199 0299

Conference ID:

9058508

Additionally, a live and archived webcast of this call will be available on the Investor Relations section of Tarena’s website at http://ir.tedu.cn.

About Tarena International, Inc.

Tarena is a leading provider of adult professional education and childhood and adolescent quality education services in China. Through its innovative education platform combining live distance instruction, classroom-based tutoring and online learning modules, Tarena offers adult professional education courses in IT and non-IT subjects. Its adult professional education courses provide students with practical skills to prepare them for jobs in industries with significant growth potential and strong hiring demand. Tarena also offers childhood and adolescent quality education programs, including computer coding and robotics programming courses, etc., targeting students aged between three and eighteen.

Safe Harbor Statement

This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, quotations from management in this announcement, as well as the Company’s strategic and operational plans (in particular, the impact of COVID-19 on our businesses; the solutions we adopt to address such impact of COVID-19; balancing growth and profitability; as well as the growth prospects of adult professional education and childhood and adolescent quality education services in China) contain forward-looking statements. Tarena may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, 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. Any statements that are not historical facts, including any business outlook and statements about Tarena’s beliefs and expectations, are forward-looking statements. Many factors, risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: the impact of the COVID-19 outbreak; Tarena’s goals and strategies; its future business development, financial condition and results of operations; its ability to continue to attract students to enroll in its courses; its ability to continue to recruit, train and retain qualified instructors and teaching assistants; its ability to continually tailor its curriculum to market demand and enhance its courses to adequately and promptly respond to developments in the professional job market; its ability to maintain or enhance its brand recognition, its ability to maintain high job placement rate for its students, and its ability to maintain cooperative relationships with financing service providers for student loans.

Further information regarding these and other risks, uncertainties or factors is included in Tarena’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tarena does not undertake any obligation to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

Beginning in the second quarter of 2016, the Company revised its non-GAAP financial measures to exclude gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact, in addition to its historical practice of excluding share-based compensation expenses for non-GAAP results.

To supplement Tarena’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Tarena’s management uses non-GAAP measures of cost of revenues, operating expenses, operating income, net income, and basic and diluted net income per ADS, which are adjusted from results based on GAAP to exclude the share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact. These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. In addition, calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Tarena’s management believes that excluding the share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact provides meaningful supplemental information regarding our performance and liquidity by excluding certain items identified as non-recurring and infrequent in nature, and non-cash charges. The amount of share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact are not built into the Company’s annual budgets and quarterly forecasts, which generally will be the basis for information Tarena provides to analysts and investors as guidance for future operating performance.

The non-GAAP financial measures are provided to enhance investors’ overall understanding of Tarena’s current financial performance and prospects for the future. A limitation of using non-GAAP cost of revenues, operating expenses, operating income (loss) and net income (loss), excluding the share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact is that the share-based compensation charge has been and will continue to be a recurring expense in the Company’s business for the foreseeable future, and gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact may recur in the future. In order to mitigate these limitations, the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.

 

 


TARENA INTERNATIONAL, INC. AND SUBSIDIARIES


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


(in thousands, except share data and per share data)


As of


December 31,


September 30,


September 30,


2020


2021


2021


Audited


Unaudited


Unaudited


RMB


RMB


USD


ASSETS


Current assets:

Cash and cash equivalents

320,179

216,095

33,537

Time deposits

6,257

6,217

965

Restricted cash

38,369

82,344

12,780

Accounts receivable, net of allowance for doubtful accounts

32,790

48,457

7,520

Amounts due from related parties

305

1,439

223

Asset held for sale

–

83,065

12,891

Prepaid expenses and other current assets

138,353

152,015

23,592


Total current assets


536,253


589,632


91,508

Time deposits-non current

–

122

19

Accounts receivable, net of allowance for doubtful accounts-non current

192

87

14

Property and equipment, net

464,490

305,471

47,408

Intangible assets, net

13,444

10,681

1,658

Goodwill

52,782

52,782

8,192

Right-of-use assets

586,451

558,735

86,714

Long-term investments, net

67,592

67,689

10,505

Deferred income tax assets

142,220

161,891

25,125

Other non-current assets, net

95,825

89,460

13,885


Total assets


1,959,249


1,836,550


285,028


LIABILITIES AND EQUITY


Current liabilities:

Short-term bank loans

10,710

15,500

2,406

Accounts payable

10,293

9,547

1,482

Amounts due to related parties

180

295

46

Operating lease liabilities-current

199,083

242,215

37,591

Income taxes payable

76,817

84,216

13,070

Deferred revenue-current

1,980,138

2,045,322

317,429

Advance received for disposal of property

–

92,000

14,278

Accrued expenses and other current liabilities

391,904

421,771

65,458


Total current liabilities


2,669,125


2,910,866


451,760

Deferred revenue-non current

18,060

17,655

2,740

Operating lease liabilities-non current

406,251

318,020

49,356

Other non-current liabilities

5,082

4,846

752


Total liabilities


3,098,518


3,251,387


504,608


Commitments and contingencies


Shareholders’ equity:

Class A ordinary shares

349

355

55

Class B ordinary shares

74

74

11

Treasury stock

(459,815)

(459,815)

(71,362)

Additional paid-in capital

1,324,161

1,343,298

208,477

Accumulated other comprehensive income

49,120

48,984

7,602

Accumulated deficit

(2,045,891)

(2,339,125)

(363,027)


Total deficit attributable to the shareholders of Tarena
International, Inc.


(1,132,002)


(1,406,229)


(218,244)


Non-controlling interest


(7,267)


(8,608)


(1,336)


Total liabilities and equity


1,959,249


1,836,550


285,028

 

 


TARENA INTERNATIONAL, INC. AND SUBSIDIARIES


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS


(in thousands, except share data and per share data)


For the Three Months Ended


September 30


For the Nine Months Ended


September 30


2020



(Unaudited)


2021


(Unaudited)


2021


(Unaudited)


2020


(Unaudited)


2021


(Unaudited)


2021


(Unaudited)


RMB


RMB


USD


RMB


RMB


USD

Net revenues

620,802

615,175

95,474

1,247,628

1,731,219

268,681

Cost of revenues(a)

(270,842)

(302,008)

(46,871)

(775,369)

(873,730)

(135,601)


Gross profit


349,960


313,167


48,603


472,259


857,489


133,080

Selling and marketing expenses(a)

(239,211)

(223,651)

(34,710)

(682,995)

(656,284)

(101,854)

General and administrative
expenses(a)

(143,072)

(151,509)

(23,514)

(435,296)

(437,520)

(67,902)

Research and development
expenses(a)

(24,256)

(26,552)

(4,121)

(75,219)

(72,434)

(11,242)


Operating loss


(56,579)


(88,545)


(13,742)


(721,251)


(308,749)


(47,918)

Interest income

3,337

372

58

1,273

1,561

242

Other income

2,864

1,713

266

3,171

2,824

438

Foreign exchange loss

(3,393)

(226)

(35)

(1,744)

(505)

(78)


Loss before income taxes


(53,771)


(86,686)


(13,453)


(718,551)


(304,869)


(47,316)

Income tax (expense)/ benefit

(10,113)

(7,996)

(1,241)

42,061

11,638

1,806


Net loss


(63,884)


(94,682)


(14,694)


(676,490)


(293,231)


(45,510)

Less: Net loss attributable to non-
controlling interests

(931)

(1,894)

(294)

(4,079)

(1,157)

(180)


Net loss attributable to Class A
and Class B
ordinary


shareholders


(62,953)


(92,788)


(14,400)


(672,411)


(292,074)


(45,330)


Net loss per Class A and Class B
ordinary share:

  Basic and diluted

(1.16)

(1.64)

(0.25)

(12.42)

(5.20)

(0.81)


Weighted average number of
Class A and Class B ordinary
shares outstanding:

  Basic and diluted

54,443,291

56,515,425

56,515,425

54,151,656

56,150,962

56,150,962


Net
loss


(63,884)


(94,682)


(14,694)


(676,490)


(293,231)


(45,510)


Other
comprehensive income

Foreign currency translation
adjustment, net of nil income
taxes

(1,856)

(1,161)

(180)

(1,657)

(136)

(21)


Comprehensive
loss


(65,740)


(95,843)


(14,874)


(678,147)


(293,367)


(45,531)

Notes:

(a)      Includes share-based compensation expenses as follows:


For the Three Months Ended


September 30,


For the Nine Months Ended


September 30,


2020


2021


2021


2020


2021


2021


RMB


RMB


USD


RMB


RMB


USD

Cost of revenues

80

185

29

322

555

86

Selling and marketing expenses

343

996

155

1,381

2,974

462

General and administrative expenses

6,143

2,644

410

19,861

10,595

1,644

Research and development expenses

794

332

52

7,092

1,068

166

 

 


TARENA INTERNATIONAL, INC. AND SUBSIDIARIES


RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES


(in thousands, except share data and per share data)


For the Three Months Ended September 30,


For the Nine Months Ended September 30,


2020



(Unaudited)


2021


(Unaudited)


2021


(Unaudited)


2020


(Unaudited)


2021



(Unaudited)


2021


(Unaudited)


RMB


RMB


USD


RMB


RMB


USD


GAAP Cost of revenues

270,842

302,008

46,871

775,369

873,730

135,601

Share-based compensation expense in
cost of revenues

80

185

29

322

555

86


Non-GAAP Cost of revenues


270,762


301,823


46,842


775,047


873,175


135,515


GAAP Selling and marketing expenses

239,211

223,651

34,710

682,995

656,284

101,854

Share-based compensation expense in
selling and marketing expenses

343

996

155

1,381

2,974

462


Non-GAAP Selling and marketing
expenses


238,868


222,655


34,555


681,614


653,310


101,392


GAAP General and administrative
expenses

143,072

151,509

23,514

435,296

437,520

67,902

Share-based compensation expense in
general and administrative expenses

6,143

2,644

410

19,861

10,595

1,644


Non-GAAP General and
administrative expenses


136,929


148,865


23,104


415,435


426,925


66,258


GAAP Research and development
expenses

24,256

26,552

4,121

75,219

72,434

11,242

Share-based compensation expense in
research and development expenses

794

332

52

7,092

1,068

166


Non-GAAP Research and
development expenses


23,462


26,220


4,069


68,127


71,366


11,076


Operating loss

(56,579)

(88,545)

(13,742)

(721,251)

(308,749)

(47,918)

Share-based compensation expenses

7,360

4,157

646

28,656

15,192

2,358


Non-GAAP Operating loss


(49,219)


(84,388)


(13,096)


(692,595)


(293,557)


(45,560)


Net loss

(63,884)

(94,682)

(14,694)

(676,490)

(293,231)

(45,510)

Share-based compensation expenses

7,360

4,157

645

28,656

15,192

2,358


Non-GAAP Net loss


(56,524)


(90,525)


(14,049)


(647,834)


(278,039)


(43,152)

  Less: Net loss attributable to non-
controlling interests

(931)

(1,894)

(294)

(4,079)

(1,157)

(180)


Non-GAAP net loss attributable to
Class A and Class B ordinary
shareholders


(55,593)


(88,631)


(13,755)


(643,755)


(276,882)


(42,972)


Non-GAAP net loss per Class A and
Class B ordinary share
(a)

  Basic and diluted

(1.02)

(1.57)

(0.24)

(11.89)

(4.93)

(0.77)


Weighted average number of ordinary
shares outstanding used in
calculating
Non-GAAP net loss per Class A and
Class B ordinary share
(a)

  Basic and diluted

54,443,291

56,515,425

56,515,425

54,151,656

56,150,962

56,150,962

Notes:

(a) The Non-GAAP net loss per share is computed using Non-GAAP net loss attributable to ordinary shareholders and the same number of ordinary shares used in GAAP basic and diluted net loss per share calculation.

(b) There was no tax impact of share-based compensation expenses for the third quarter of 2021.

 

Cision View original content:https://www.prnewswire.com/news-releases/tarena-international-inc-announces-the-results-for-the-third-quarter-of-2021-301430706.html

SOURCE Tarena International, Inc.

Posted on

Smart Share Global Limited to Report Third Quarter 2021 Financial Results on November 30, 2021

SHANGHAI, China, Nov. 23, 2021 (GLOBE NEWSWIRE) — Smart Share Global Limited (“Energy Monster” or the “Company”), a consumer tech company providing mobile device charging service, today announced that it plans to release its unaudited third quarter 2021 financial results on Tuesday, November 30, 2021, before the U.S. market opens.

Smart Share Global Limited’s management will hold a conference call at 8:00 A.M. Eastern Time on Tuesday, November 30, 2021 (9:00 P.M. Beijing Time on Tuesday, November 30, 2021) to discuss the financial results. Participants may access the call by dialing the following numbers:

International: +65-6780-1201
United States: +1-332-208-9458
Mainland China: +86-400-820-6895
China Hong Kong: +852-3018-8307
   
Conference ID / Passcode: 9313709

Participants may also access the call via webcast: https://edge.media-server.com/mmc/p/ak28aopa

A telephone replay will be available through December 7, 2021. The dial-in details are as follows:

International: +61-2-8199-0299
United States: +1-855-452-5696
Mainland China: +86-400-632-2162
China Hong Kong: +852-3051-2780
   
Access Code: 9313709

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.enmonster.com/

About Smart Share Global Limited

Smart Share Global Limited (Nasdaq: EM), or Energy Monster, is a consumer tech company with the mission to energize everyday life. The company is the largest provider of mobile device charging service in China with the number one market share. The company provides mobile device charging service through its power banks, which are placed in POIs such as entertainment venues, restaurants, shopping centers, hotels, transportation hubs and public spaces. Users may access the service by scanning the QR codes on Energy Monster’s cabinets to release the power banks. As of June 30, 2021, the company had 6.0 million power banks in 771,000 POIs across more than 1,600 counties and county-level districts in China.

Contact Us

Investor Relations
Hansen Shi
[email protected]



Posted on

Northern Trust and Carey Olsen Support Castelnau Group’s London Stock Exchange Debut

Northern Trust and Carey Olsen Support Castelnau Group’s London Stock Exchange Debut

Guernsey-domiciled, LSE-listed Investment Company is Focused on Investing in Public and Private Companies

GUERNSEY–(BUSINESS WIRE)–
Northern Trust (Nasdaq: NTRS) and Carey Olsen have supported Castelnau Group Limited on its Initial Public Offering (IPO) on the London Stock Exchange (LSE).

The Guernsey-domiciled investment company, managed by Phoenix Asset Management, recently launched on the LSE following a £178 million (approximately US$245 million) IPO. Castelnau is focused on investing in both public and private companies with initial investments including firms providing digital analytics.

Northern Trust is providing Castelnau Group Limited with a suite of asset servicing solutions, including fund administration, fund accounting, custody and depositary services. The Carey Olsen team advising Phoenix Asset Management on all Guernsey legal and regulatory aspects of the IPO was led by partner Ben Morgan, with assistance from senior associate James Cooke and associate Kristina Mikhaylova.

Steve Tatters, chief operating officer, Phoenix Asset Management, said: “Northern Trust’s experience supporting Guernsey-domiciled investment companies with LSE listings, combined with its breadth of asset servicing solutions, were among the reasons for this appointment. Northern Trust’s team together with our Guernsey legal firm, Carey Olsen, worked closely with us to successfully support the IPO.”

Dave Sauvarin, head of Northern Trust Channel Islands, said: “Guernsey continues to demonstrate its appeal as a jurisdiction supporting LSE listings with a depth of expertise in this area. Phoenix Asset Management’s decision to use Northern Trust in Guernsey as the hub for Castelnau Group Limited’s LSE listing is a testament to the depth of the island’s experience and reputation.”

Ben Morgan, partner, Carey Olsen, said: “We are delighted to have supported Castelnau Group on its successful admission to the Specialist Fund Segment of the LSE. Our involvement demonstrates both Carey Olsen’s extensive capital markets experience and the ongoing attractiveness of Guernsey as a jurisdiction for listed vehicles.”

Northern Trust’s Global Fund Services business provides services including fund administration, global custody, investment operations outsourcing and capital market revenue enhancement solutions to global investment managers – supporting a range of complex investment strategies across the full spectrum of asset classes.

About Carey Olsen

Carey Olsen is a leading offshore law firm advising financial institutions, corporations and private clients on the laws of Bermuda, the British Virgin Islands, Cayman Islands, Guernsey and Jersey from a network of nine international offices.

We provide legal services in relation to all aspects of corporate and finance, trusts and private wealth, investment funds, insolvency, restructuring and dispute resolution.

Our clients include global and local financial institutions, investment funds, private equity houses, multi-national corporations, public organisations, sovereign wealth funds, high net worth individuals, family offices, directors, trustees and private clients. We also work alongside all of the major onshore law firms, accountancy firms and insolvency practitioners.

We employ more than 500 people and our 60-plus partners head up a full complement of 260 lawyers.

For further information about Carey Olsen visit www.careyolsen.com or email [email protected]

Carey Olsen is an exclusive member of World Services Group (WSG), a leading global legal network of top ranked independent firms collaborating across 150+ jurisdictions.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2021, Northern Trust had assets under custody/administration of US$15.8 trillion, and assets under management of US$1.5 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Please read our global and regulatory information.

# # #

Europe, Middle East, Africa & Asia-Pacific:

Camilla Greene

+44 (0) 20 7982 2176

[email protected]

Marcel Klebba

+44 (0) 20 7982 1994

[email protected]

US & Canada:

John O’Connell

+1 312 444 2388

John_O’[email protected]

http://www.northerntrust.com

KEYWORDS: Europe Guernsey United Kingdom

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

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