0001104659-20-082249.txt : 20200709 0001104659-20-082249.hdr.sgml : 20200709 20200709080043 ACCESSION NUMBER: 0001104659-20-082249 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20200709 FILED AS OF DATE: 20200709 DATE AS OF CHANGE: 20200709 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Ambow Education Holding Ltd. CENTRAL INDEX KEY: 0001494558 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EDUCATIONAL SERVICES [8200] IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34824 FILM NUMBER: 201019552 BUSINESS ADDRESS: STREET 1: 12TH FLOOR, NO. 1 FINANCIAL STREET STREET 2: CHANG AN CENTER, SHIJINGSHAN DISTRICT CITY: BEIJING STATE: F4 ZIP: 100043 BUSINESS PHONE: 86 (10) 6206-8000 MAIL ADDRESS: STREET 1: 12TH FLOOR, NO. 1 FINANCIAL STREET STREET 2: CHANG AN CENTER, SHIJINGSHAN DISTRICT CITY: BEIJING STATE: F4 ZIP: 100043 6-K 1 tm2024253d1_6k.htm 6-K

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

 

FORM 6-K

 

 

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of July 2020

 

 

 

Commission File Number: 001-34824

 

 

 

Ambow Education Holding Ltd.

 

 

 

Not Applicable

(Translation of Registrant’s name into English)

 

Cayman Islands

(Jurisdiction of incorporation or organization)

 

12th Floor, Tower 1, Financial Street Chang’An Center,

Shijingshan District, Beijing 100043

People’s Republic of China

Telephone: +86 (10) 6206-8000

(Address of principal executive offices)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F x Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

 

If “Yes” marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___

 

 

 

 

 

 

Other Information

 

Attached hereto as Exhibit 99.1 is a press release dated July 9, 2020, announcing the Company’s unaudited financial and operating results for the three months ended March 31, 2020.

 

Exhibits

 

99.1 Press Release, dated July 9, 2020

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Ambow Education Holding Ltd.
   
   
  By: /s/ Jin Huang
  Name: Dr. Jin Huang
  Title: President and Chief Executive Officer

 

Date: July 9, 2020

 

 

 

EX-99.1 2 tm2024253d1_99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Ambow Education Announces First Quarter 2020 Financial Results

 

 

BEIJING, July 9, 2020 -- Ambow Education Holding Ltd. (“Ambow” or the “Company”) (NYSE American: AMBO), a leading national provider of educational and career enhancement services in China, today announced its unaudited financial and operating results for the three-month period ended March 31, 2020.

 

“Against the backdrop of the unprecedented COVID-19 pandemic, our goal of empowering learning and teaching through technology has never been more relevant,” said Dr. Jin Huang, Ambow’s President and Chief Executive Officer. “With our strategic efforts to invest in technological advancements and educational service innovation, we remain committed to providing our learners with high-quality educational resources, ensuring a superior online education experience across our platform. For instance, we launched live streaming classes that are embedded with various interactive tools that dramatically enhance the engagement between students and teachers on our learning platform. We also introduced online practice training and career planning programs to help undergraduates and employees better prepare themselves in an increasingly challenging job market. By leveraging our leading position and strong network in the career enhancement services market, in collaboration with 6,000 enterprises, we organized online job fairs that enabled remote interviews, extending extra exposure for undergraduates seeking jobs.”

 

Dr. Huang continued, “The outbreak of COVID-19 since the beginning of this year has adversely impacted the entire education industry. Our first quarter 2020 revenue performance was negatively impacted as a result of the suspension of our K-12 schools and offline tutoring services due to quarantine measures. With daily life in China gradually returning to normal since April, our schools reopened in April with the health and safety of our students and faculty a paramount priority. We are confident in our ability to navigate through the dynamic markets and capitalize on the elevated opportunities presented by the accelerated adoption of online education around the world.”

 

“I am also pleased that we made another significant addition to our portfolio of international assets in the first quarter as we completed the acquisition of NewSchool of Architecture and Design, LLC (“NewSchool”), a San Diego-based higher learning institution. This acquisition underlines Ambow’s vision to roll out a cross-border educational service platform, bringing unique learning and career advancement opportunities to students,” concluded Dr. Huang.

 

 

 

 

First Quarter 2020 Financial Highlights

 

·Net revenues for the first quarter of 2020 decreased by 28.2% to US$12.7 million from US$17.7 million in the same period of 2019. The decrease was primarily due to fewer services provided at the Company’s K-12 schools and tutoring centers as operations during the quarter were temporarily suspended due to the outbreak of COVID-19, partially offset by revenue from NewSchool, acquired in the period.

 

·Gross profit for the first quarter of 2020 decreased by 72.4% to US$1.6 million from US$5.8 million in the same period of 2019. Gross profit margin was 12.6%, compared with 32.8% for the first quarter of 2019. The decrease in gross profit and margin was mainly attributable to the decrease of net revenues.

 

·Operating expenses for the first quarter of 2020 decreased by 19.1% to US$7.2 million from US$8.9 million for the same period of 2019. The decrease was primarily attributable to less expenditures due to the temporary suspension of operations at schools and tutoring centers in the period as part of the national pandemic containment effort, and stringent expense controls to improve operating efficiency.

 

·Net income attributable to ordinary shareholders in the first quarter of 2020 was US$0.8 million, or US$0.02 per basic and diluted share, compared with a net loss of US$3.5 million, or US$0.08 per basic and diluted share, for the first quarter of 2019.

 

·As of March 31, 2020, Ambow maintained strong cash resources of US$30.4 million, comprised of cash and cash equivalents of US$14.2 million and short-term investments of US$16.2 million.

 

·As of March 31, 2020, the Company’s deferred revenue balance was US$23.9 million, representing a slight increase compared with US$23.7 million as of December 31, 2019. Due to the temporary suspension of school operations to contain COVID-19, the Company postponed tuition and fee collection in its K-12 schools during the first quarter which led to the lower-than-usual increase in deferred revenue.

 

The Company's first-quarter 2020 financial and operating results can also be found on its Form 6-K filed with the U.S. Securities and Exchange Commission at www.sec.gov.

 

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 amounts translated from RMB to U.S. dollars for the first quarter of 2020 are based on the effective exchange rate of 7.0808 as of March 31, 2020; all amounts translated from RMB to U.S. dollars for the first quarter of 2019 are based on the effective exchange rate of 6.7112 as of March 29, 2019; all amounts translated from RMB to U.S. dollars as of December 31, 2019 are based on the effective exchange rate of 6.9618 as of December 31, 2019. The exchange rates were according to the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

 

About Ambow Education Holding Ltd.

 

Ambow Education Holding Ltd. is a leading national provider of educational and career enhancement services in China, offering high-quality, individualized services and products. With its extensive network of regional service hubs complemented by a dynamic proprietary learning platform and distributors, Ambow provides its services and products to students in 30 out of the 31 provinces and autonomous regions within China.

 

Follow us on Twitter: @Ambow_Education

 

 

 

 

Safe Harbor Statement

 

This announcement contains forward-looking statements. These statements are made under 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,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the outlook and quotations from management in this announcement, as well as Ambow’s strategic and operational plans, contain forward-looking statements. Ambow may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. 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 statements, including but not limited to the following: the Company’s goals and strategies, expansion plans, the expected growth of the content and application delivery services market, the Company’s expectations regarding keeping and strengthening its relationships with its customers, and the general economic and business conditions in the regions where the Company provides its solutions and services. 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 as of the date of this press release, and Ambow undertakes no duty to update such information, except as required under applicable law.

 

For investor and media inquiries, please contact:

 

Ambow Education Holding Ltd.

Tel: +86-10-6206-8000

 

The Piacente Group | Investor Relations

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

E-mail: ambow@tpg-ir.com

 

 

 

 

AMBOW EDUCATION HOLDING LTD.

UNAUDITED CONSOLIDATED BALANCE SHEETS

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

 

 

   As of March 31,   As of December 31, 
   2020   2019 
   US$   RMB   RMB 
ASSETS            
Current assets:               
Cash and cash equivalents   14,210    100,619    157,600 
Restricted cash   2,001    14,170    - 
Short term investments, available for sale   14,785    104,692    57,487 
Short term investments, held to maturity   1,412    10,000    31,000 
Accounts receivable, net   3,174    22,472    17,939 
Amounts due from related parties   317    2,246    2,318 
Prepaid and other current assets, net   22,542    159,618    133,296 
Total current assets   58,441    413,817    399,640 
Non-current assets:               
Property and equipment, net   21,976    155,606    157,463 
Land use rights, net   247    1,748    1,759 
Intangible assets, net   8,695    61,567    56,607 
Goodwill   8,659    61,313    60,353 
Deferred tax assets, net   538    3,811    10,195 
Operating lease right-of-use asset   42,809    303,120    257,361 
Finance lease right-of-use asset   890    6,300    6,450 
Other non-current assets, net   11,900    84,261    70,971 
Total non-current assets   95,714    677,726    621,159 
                
Total assets   154,155    1,091,543    1,020,799 
                
LIABILITIES               
Current liabilities:               
Deferred revenue  *   23,858    168,933    165,111 
Accounts payable  *   1,781    12,615    14,718 
Accrued and other liabilities  *   28,059    198,681    192,957 
Income taxes payable, current  *   26,507    187,691    180,715 
Amounts due to related parties  *   278    1,971    1,971 
Operating lease liability, current  *   8,018    56,774    53,512 
Total current liabilities   88,501    626,665    608,984 
Non-current liabilities:               
Income taxes payable, non-current  *   4,564    32,315    32,152 
Operating lease liability, non-current  *   37,158    263,109    216,067 
Total non-current liabilities   41,722    295,424    248,219 
                
Total liabilities   130,223    922,089    857,203 
                
EQUITY               
Preferred shares               
(US$ 0.003 par value;1,666,667 shares authorized, nil issued and outstanding as of December 31, 2019 and March 31, 2020)   -    -    - 
Class A Ordinary shares               
(US$0.003 par value; 66,666,667 and 66,666,667 shares authorized, 38,858,199 and 38,870,699 shares issued and outstanding as of December 31, 2019 and March 31, 2020, respectively)   103    730    730 
Class C Ordinary shares               
(US$0.003 par value; 8,333,333 and 8,333,333 shares authorized, 4,708,415 and 4,708,415 shares issued and outstanding as of December 31, 2019 and March 31, 2020, respectively)   13    90    90 
Additional paid-in capital   495,563    3,508,983    3,508,745 
Statutory reserve   2,851    20,185    20,185 
Accumulated deficit   (475,422)   (3,366,370)   (3,371,815)
Accumulated other comprehensive income   978    6,928    6,341 
Total Ambow Education Holding Ltd.’s equity   24,086    170,546    164,276 
Non-controlling interests   (154)   (1,092)   (680)
Total equity   23,932    169,454    163,596 
Total liabilities and equity   154,155    1,091,543    1,020,799 

 

*  All of the VIE's assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets.

 

 

 

 

AMBOW EDUCATION HOLDING LTD.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

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

 

   For the three months ended March 31, 
   2020   2020   2019 
   US$   RMB   RMB 
             
NET REVENUES               
 Educational program and services   12,748    90,267    118,185 
Intelligent program and services   2    12    461 
Total net revenues   12,750    90,279    118,646 
COST OF REVENUES               
 Educational program and services   (10,936)   (77,433)   (78,197)
 Intelligent program and services   (183)   (1,298)   (1,858)
Total cost of revenues   (11,119)   (78,731)   (80,055)
                
GROSS PROFIT   1,631    11,548    38,591 
Operating expenses:               
Selling and marketing   (1,490)   (10,549)   (14,088)
General and administrative   (5,536)   (39,201)   (45,618)
Research and development   (160)   (1,131)   (168)
Total operating expenses   (7,186)   (50,881)   (59,874)
                
OPERATING LOSS   (5,555)   (39,333)   (21,283)
                
OTHER INCOME (EXPENSES)               
Interest income   281    1,990    388 
Foreign exchange gain (loss), net   4    26    (31)
Other income, net   199    1,406    660 
Gain from deregistration of subsidiaries   -    -    1,279 
Gain on the bargain purchase   5,688    40,273    - 
Gain on sale of investment available for sale   74    526    279 
Total other income   6,246    44,221    2,575 
                
INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTEREST   691    4,888    (18,708)
Income tax benefit (expense)   104    739    (5,141)
                
NET INCOME (LOSS)   795    5,627    (23,849)
Less: Net loss attributable to non-controlling interest   (58)   (412)   (93)
                
NET INCOME (LOSS) ATTRIBUTABLE TO ORDINARY SHAREHOLDERS   853    6,039    (23,756)
                
NET INCOME (LOSS)   795    5,627    (23,849)
                
OTHER COMPREHENSIVE INCOME, NET OF TAX               
Foreign currency translation adjustments   61    433    (2,428)
Unrealized gains on short term investments               
  Unrealized holding gains arising during period   62    441    280 
  Less: reclassification adjustment for gains included in net income   41    287    205 
Other comprehensive income/(loss)   83    587    (2,353)
                
TOTAL COMPREHENSIVE INCOME (LOSS)   878    6,214    (26,202)
Net income (loss) per share - basic and diluted   0.02    0.14    (0.55)
                
Weighted average shares used in calculating basic and diluted net income (loss) per share   43,570,918    43,570,918    43,474,571 

 

 

 

 

AMBOW EDUCATION HOLDING LTD.

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

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

 

   Attributable to Ambow Education Holding Ltd.’s Equity     
                   Retained   Accumulated         
   Class A Ordinary   Class C Ordinary   Additional       Earnings   other   Non-     
   shares   shares   paid-in   Statutory   (Accumulated   comprehensive   controlling   Total 
   Shares   Amount   Shares   Amount   capital   reserves   deficit)   income   Interest   Equity 
       RMB       RMB   RMB   RMB   RMB   RMB   RMB   RMB 
Balance as of January 1, 2020   38,858,199    730    4,708,415    90    3,508,745    20,185    (3,372,409)   6,341    (680)   163,002 
Share-based compensation   -    -    -    -    238    -    -    -    -    238 
Issuance of ordinary shares for restricted stock award   12,500    0    -    -    (0)   -    -    -    -    - 
Foreign currency translation adjustment   -    -    -    -    -    -    -    433    -    433 
Unrealized gain on investment, net of income taxes   -    -    -    -    -    -    -    154    -    154 
Net income/(loss)   -    -    -    -    -    -    6,039    -    (412)   5,627 
Balance as of March 31, 2020   38,870,699    730    4,708,415    90    3,508,983    20,185    (3,366,370)   6,928    (1,092)   169,454 
                                                   
Balance as of January 1, 2019   38,756,289    728    4,708,415    90    3,507,123    20,149    (3,271,838)   8,305    (1,786)   262,771 
Share-based compensation   -    -    -    -    872    -    -    -    -    872 
Issuance of ordinary shares for restricted stock award   28,646    1    -    -    (1)   -    -    -    -    - 
Foreign currency translation adjustment   -    -    -    -    -    -    -    (2,428)   -    (2,428)
Unrealized gain on investment, net of income taxes   -    -    -    -    -    -    -    75    -    75 
Net loss   -    -    -    -    -    -    (23,756)   -    (93)   (23,849)
Balance as of March 31, 2019   38,784,935    729    4,708,415    90    3,507,994    20,149    (3,295,594)   5,952    (1,879)   237,441 

 

 

 

 

Discussion of Segment Operations

(All amounts in thousands)

 

   For the three months ended March 31, 
   2020   2020   2019 
   US$   RMB   RMB 
   (All amounts in thousands) 
NET REVENUES               
K-12 Schools   5,849    41,411    63,793 
CP&CE Programs   6,901    48,868    54,853 
Total net revenues   12,750    90,279    118,646 
COST OF REVENUES               
K-12 Schools   (4,721)   (33,429)   (42,296)
CP&CE Programs   (6,398)   (45,302)   (37,759)
Total cost of revenues   (11,119)   (78,731)   (80,055)
GROSS PROFIT               
K-12 Schools   1,128    7,982    21,497 
CP&CE Programs   503    3,566    17,094 
Total gross profit   1,631    11,548    38,591