EX-99.1 2 tm2214018d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

Ambow Education Announces Second Half and Full Year 2021 Financial Results 

 

BEIJING, May 2, 2022 -- Ambow Education Holding Ltd. (“Ambow” or the “Company”) (NYSE American: AMBO), a leading cross-border career educational and technology service provider, today announced its financial and operating results for the third and fourth quarters of 2021, which have not been audited or reviewed by the Company’s independent registered accounting firm, as well as its audited financial and operating results for the full fiscal year, ended December 31, 2021.

 

“We remained focused on strengthening our core competencies during the second half of 2021: creating and providing high-quality, technology-driven educational and career enhancement products and services,” noted Dr. Jin Huang, Ambow’s President and Chief Executive Officer. “Amid the fast-evolving environment, we skillfully adapted our business to new PRC regulatory requirements and achieved total revenues of RMB 496.9 million (US$ 78.0 million) in the full year 2021.”

 

“I firmly believe that our long-standing ability to innovate and advance technology will continue to drive our sustainable growth. Our valuable patent portfolio encompassing a wide spectrum of educational technologies is unparalleled in the industry. Notably, our cutting-edge multimedia blackboard technology received a new U.S. patent in September 2021, underscoring our industry-leading technology capabilities. As both a pioneer and veteran in the career educational services sector, we also remain dedicated to the development of Industry-University collaborative and coordinated education. In October 2021, the Ministry of Education (“MoE”) again added Ambow to its list of approved enterprises for the Industry-University Cooperation and Collaborative Education Project. Furthermore, in December 2021, MoE selected Ambow to its first group of companies for participation in its Education Program for Connecting Talent Supply and Demand to Promote Employment, affirming the exceptional quality of our collaborative projects,” Dr. Huang added.

 

“Looking ahead, we will continue to deepen our commitment to addressing the career education sector’s critical demands and harnessing our core capabilities to meet those needs with innovative services and products. Building on our 20-year proven track record, resilient business model and strategic efforts, we believe we are well positioned to deliver sustainable, long-term growth to our shareholders,” concluded Dr. Huang.

 

Third Quarter 2021 Financial Highlights

 

·Net revenues in the third quarter of 2021 were RMB 76.2 million (US$ 11.8 million), compared with RMB 112.7 million (US$ 16.6 million) in the same period of 2020. The decrease was primarily due to the impact of the 2021 Implementing Rules for the Law for Promoting Private Education (the “2021 Implementing Rules”) on the Company’s compulsory education business (“K-9 business”) from September 1, 2021, as well as a high base effect resulting from the one-month extension of the spring semester at the Company’s K-12 schools in the third quarter of 2020 and fewer services provided at the Company’s tutoring centers and training offices during the third quarter of 2021.

 

 

 

    

·Gross profit in the third quarter of 2021 was RMB 2.8 million (US$ 0.4 million), compared with RMB 6.5 million (US$ 1.0 million) in the same period of 2020. Gross profit margin was 3.7%, compared with 5.8% in the third quarter of 2020. The decreases in gross profit and gross margin were mainly attributable to the impact of the 2021 Implementing Rules on the Company’s K-12 schools business.

 

·Operating expenses in the third quarter of 2021 decreased by 29.9% to RMB 66.7 million (US$ 10.4 million) from RMB 95.1 million (US$ 14.0 million) in the same period of 2020. The decrease was primarily attributable to reduced impairment loss on long-lived assets and stringent expense controls to improve operating efficiency.

 

·Operating loss in the third quarter of 2021 was RMB 63.9 million (US$ 9.9 million), compared with RMB 88.6 million (US$ 13.1 million) in the same period of 2020.

 

·Net income attributable to ordinary shareholders was RMB 31.9 million (US$ 4.9 million), or RMB 0.68 (US$ 0.11) per basic and diluted share, compared with a net loss of RMB 84.5 million (US$ 12.5 million), or RMB 1.94 (US$ 0.29) per basic and diluted share, in the same period of 2020. The income was mainly attributable to the gain on disposal of the Company’s subsidiaries of RMB 10.8 million (US$ 1.7 million), the gain on the forgiven PPP loan of RMB 9.3 million (US$ 1.4 million), as well as a reversal of income tax payable of RMB 62.8 million (US$ 9.7 million) due to the expiration of its five-year claw-back period during the third quarter of 2021.

 

Fourth Quarter 2021 Financial Highlights

 

·Net revenues in the fourth quarter of 2021 were RMB 118.9 million (US$ 18.7 million), compared with RMB 173.5 million (US$ 26.6 million) in the same period of 2020. The decrease was primarily due to the 2021 Implementing Rules to the Company’s K-12 schools business from September 2021 being brought into effect, as well as the regulatory changes to our tutoring business in the second half of 2021.

 

·Gross profit in the fourth quarter of 2021 was RMB 33.9 million (US$ 5.3 million), compared with RMB 66.1 million (US$ 10.1 million) in the same period of 2020. Gross profit margin was 28.5%, compared with 38.1% in the third quarter of 2020. The decreases in gross profit and gross margin were mainly attributable to the decrease in net revenues.

 

·Operating expenses in the fourth quarter of 2021 increased by 8.9% to RMB 68.4 million (US$ 10.7 million) from RMB 62.8 million (US$ 9.6 million) in the same period of 2020. The increase was primarily due to additional research and development expenditures.

 

·Operating loss in the fourth quarter of 2021 was RMB 34.4 million (US$ 5.4 million), compared with an operating income of RMB 3.3 million (US$ 0.5 million) in the same period of 2020.

 

 

 

  

·Net loss attributable to ordinary shareholders was RMB 37.0 million (US$ 5.8 million), or RMB 0.79 (US$ 0.12) per basic and diluted share, compared with a net income of RMB 11.0 million (US$ 1.7 million), or RMB 0.23 (US$ 0.04) per basic and diluted share, in the same period of 2020. The net loss was mainly caused by the decrease in the gross profit stemming from the impact of the 2021 Implementing Rules on the Company’s K-12 schools business.

 

·As of December 31, 2021, Ambow maintained strong cash resources of RMB 177.0 million (US$ 27.8 million), comprised of cash and cash equivalents of RMB 157.4 million (US$ 24.7 million), short-term investments of RMB 17.8 million (US$ 2.8 million) and restricted cash of RMB 1.8 million (US$ 0.3 million).

 

Full Fiscal Year 2021 Financial Highlights

 

·Net revenues in fiscal year 2021 decreased by 6.6% to RMB 496.9 million (US$ 78.0 million) from RMB 532.0 million (US$ 81.5 million) in 2020. The decrease was primarily due to the 2021 Implementing Rules to the Company’s K-12 schools business coming into effect, as well as the regulatory changes to our tutoring business in the second half of 2021.

 

·Gross profit in fiscal year 2021 increased by 8.9% to RMB 157.3 million (US$ 24.7 million) from RMB 144.5 million (US$ 22.1 million) in 2020. Gross profit margin was 31.7%, compared with 27.2% in 2020. The increases in gross profit and gross margin were mainly attributable to stringent cost controls during 2021.

 

·Operating expenses in fiscal year 2021 decreased by 6.9% to RMB 250.5 million (US$ 39.3 million) from RMB 269.0 million (US$ 41.2 million) in 2020. The decrease was primarily attributable to reduced impairment loss on long-lived assets during 2021.

 

·Operating loss in fiscal year 2021 was RMB 93.2 million (US$ 14.6 million), compared with RMB 124.6 million (US$ 19.1 million) in 2020.

 

·Net income attributable to ordinary shareholders was RMB 3.0 million (US$ 0.5 million), or RMB 0.06 (US$ 0.01) per basic and diluted share, compared with a net loss of RMB 62.7 million (US$ 9.6 million), or RMB 1.41 (US$ 0.22) per basic and diluted share, in 2020. The income was mainly attributable to the gain on the disposal of the Company’s subsidiaries of RMB 12.2 million (US$ 1.9 million), the gain on the forgiven PPP loan of RMB 9.3 million (US$ 1.5 million), as well as a reversal of income tax payable of RMB 62.8 million (US$ 9.7 million) due to the expiration of its five-year claw-back period during 2021.

 

Impact of 2021 Implementing Rules for the Law for Promoting Private Education

 

On May 14, 2021, the People’s Republic of China’s State Council promulgated the 2021 Implementing Rules for the Law for Promoting Private Education (the “2021 Implementing Rules”), which became effective on September 1, 2021. The Implementing Rules prohibit foreign-invested enterprises established in China and social organizations whose actual controllers are foreign parties from controlling private schools that provide compulsory education by means of mergers, acquisitions, contractual arrangements, etc., and private schools providing compulsory education are prohibited from conducting transactions with their related parties.

 

 

 

   

To comply with the 2021 Implementing Rules, the Company planned to sell its business providing compulsory education services at its three K-12 schools to a third party on September 1, 2021. The Company has found a third party buyer and signed a definitive sales agreement, which is currently under registration process and expected to be completed within one year from December 31, 2021. As the transaction was not closed as of December 31, 2021, and such business did not meet the definition of a “component” under US GAAP to be presented as a discontinued operation, the Company recorded the assets and liabilities of the K-9 business as “Held for Sale” in accordance with ASC 360. The assets and liabilities of the K-9 business classified as held for sale were presented separately in the asset and liability sections, respectively, of the Consolidated Balance Sheet as of December 31, 2021.

 

The Company's financial and operating results for the third quarter and fourth quarters of 2021, as well as the full fiscal year ended December 31, 2021 can also be found on its Form 6-K and 20-F 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 third quarter and first nine months of 2021 are based on the effective exchange rate of 6.4434 as of September 30, 2021; all amounts translated from RMB to U.S. dollars for the third quarter and first nine months of 2020 are based on the effective exchange rate of 6.7896 as of September 30, 2020; all amounts translated from RMB to U.S. dollars for the fourth quarter and fiscal year of 2021 are based on the effective exchange rate of 6.3726 as of December 30, 2021; all amounts translated from RMB to U.S. dollars for the fourth quarter and fiscal year of 2020 are based on the effective exchange rate of 6.5250 as of December 31, 2020. 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. Fluctuations in financial highlights are based on RMB amounts.

 

About Ambow Education Holding Ltd.

 

Ambow Education Holding Ltd. is a leading cross-border career educational and technology service provider, 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 China and the United States of America.

 

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, the general economic and business conditions in the regions where the Company provides its solutions and services, and continued compliance with governmental regulations regarding education industry in the People’s Republic of China and any other jurisdiction in which the Company conducts its operations. 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.
AUDITED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except for share and per share data)

 

   As of December 31,   As of December 31, 
   2021   2020 
   US$   RMB   RMB 
ASSETS            
Current assets:               
Cash and cash equivalents   24,699    157,399    118,821 
Restricted cash   286    1,823    824 
Short-term investments, available for sale   2,474    15,764    117,854 
Short-term investments, held to maturity   314    2,000    45,000 
Accounts receivable, net   4,018    25,602    20,972 
Amounts due from related parties   487    3,103    3,024 
Prepaid and other current assets, net   17,244    109,890    117,634 
Assets classified as held for sale   20,827    132,724    - 
Total current assets   70,349    448,305    424,129 
Non-current assets:               
Property and equipment, net   15,993    101,915    144,492 
Land use rights, net   -    -    1,715 
Intangible assets, net   4,705    29,986    54,808 
Goodwill   3,438    21,907    25,710 
Deferred tax assets, net   5    31    6,338 
Operating lease right-of-use asset   34,586    220,404    247,608 
Finance lease right-of-use asset   824    5,250    5,850 
Other non-current assets   22,340    142,364    139,067 
Total non-current assets   81,891    521,857    625,588 
                
Total assets   152,240    970,162    1,049,717 
                
LIABILITIES               
Current liabilities:               
Short-term borrowings *   1,585    10,103    10,000 
Deferred revenue  *   14,913    95,036    163,699 
Accounts payable  *   4,625    29,466    19,423 
Accrued and other liabilities  *   33,958    216,399    209,590 
Income taxes payable, current  *   18,256    116,341    184,638 
Amounts due to related parties  *   595    3,793    2,543 
Operating lease liability, current  *   7,677    48,923    53,702 
Liabilities classified as held for sale  *   13,050    83,161    - 
Total current liabilities   94,659    603,222    643,595 
Non-current liabilities:               
Long-term borrowing   -    -    9,594 
Other non-current liabilities  *   15    96    292 
Income taxes payable, non-current  *   3,370    21,475    34,763 
Operating lease liability, non-current  *   31,178    198,687    220,319 
Total non-current liabilities   34,563    220,258    264,968 
                
Total liabilities   129,222    823,480    908,563 
                
EQUITY               
Preferred shares               
(US$ 0.003 par value;1,666,667 shares authorized, nil issued and outstanding as of December 31, 2021 and December 31, 2020)   -    -    - 
Class A Ordinary shares               
(US$0.003 par value; 66,666,667 and 66,666,667 shares authorized, 41,973,276 and 41,960,776 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively)   125    795    794 
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, 2021 and December 31, 2020, respectively)   14    90    90 
Additional paid-in capital   556,438    3,545,955    3,545,073 
Statutory reserve   602    3,837    4,210 
Accumulated deficit   (536,009)   (3,415,771)   (3,419,146)
Accumulated other comprehensive income   1,772    11,291    12,101 
Total Ambow Education Holding Ltd.’s equity   22,942    146,197    143,122 
Non-controlling interests   76    485    (1,968)
Total equity   23,018    146,682    141,154 
Total liabilities and equity   152,240    970,162    1,049,717 

 

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

 

   For the nine months ended September 30,   For the three months ended September 30, 
   2021   2021   2020   2021   2021   2020 
   US$   RMB   RMB   US$   RMB   RMB 
NET REVENUES                              
 Educational programs and services   58,551    377,268    358,098    11,820    76,164    112,439 
Intelligent programs and services   117    752    352    -    -    269 
Total net revenues   58,668    378,020    358,450    11,820    76,164    112,708 
COST OF REVENUES                              
 Educational programs and services   (39,177)   (252,431)   (277,683)   (11,338)   (73,056)   (105,359)
Intelligent programs and services   (343)   (2,211)   (2,340)   (44)   (281)   (882)
Total cost of revenues   (39,520)   (254,642)   (280,023)   (11,382)   (73,337)   (106,241)
                               
GROSS PROFIT   19,148    123,378    78,427    438    2,827    6,467 
Operating expenses:                              
Selling and marketing   (5,983)   (38,554)   (37,861)   (2,193)   (14,132)   (13,655)
General and administrative   (19,115)   (123,165)   (127,230)   (5,868)   (37,808)   (42,987)
Research and development   (1,531)   (9,864)   (4,456)   (661)   (4,262)   (1,758)
Impairment loss   (1,633)   (10,525)   (36,699)   (1,633)   (10,525)   (36,699)
Total operating expenses   (28,262)   (182,108)   (206,246)   (10,355)   (66,727)   (95,099)
                               
OPERATING LOSS   (9,114)   (58,730)   (127,819)   (9,917)   (63,900)   (88,632)
                               
OTHER INCOME (EXPENSES)                              
Interest income   948    6,108    7,150    326    2,100    3,015 
Foreign exchange gain (loss), net   32    206    31    -    3    (4)
Other income (loss), net   257    1,655    840    440    2,835    (712)
Gain from deregistration of subsidiaries   206    1,325    3,967    -    -    70 
Gain on disposal of subsidiaries   1,675    10,792    752    1,675    10,792    752 
Gain on the bargain purchase   -    -    40,273    -    -    - 
Gain on forgiven PPP loan   1,444    9,305    -    1,444    9,305    - 
Gain on sale of investment available for sale   341    2,196    2,477    151    975    1,421 
Total other income   4,903    31,587    55,490    4,036    26,010    4,542 
LOSS BEFORE INCOME TAX AND NON-CONTROLLING INTEREST   (4,211)   (27,143)   (72,329)   (5,881)   (37,890)   (84,090)
Income tax benefit (expense)   10,293    66,325    (2,399)   10,783    69,480    (776)
                               
NET INCOME (LOSS)   6,082    39,182    (74,728)   4,902    31,590    (84,866)
Less: Net loss attributable to non-controlling interest   (127)   (821)   (1,040)   (47)   (302)   (332)
                               
NET INCOME (LOSS) ATTRIBUTABLE TO ORDINARY SHAREHOLDERS   6,209    40,003    (73,688)   4,949    31,892    (84,534)
                               
NET INCOME (LOSS)   6,082    39,182    (74,728)   4,902    31,590    (84,866)
                               
OTHER COMPREHENSIVE  (LOSS) INCOME, NET OF TAX                              
Foreign currency translation adjustments   (42)   (271)   10,731    23    146    2,403 
Unrealized gains on short term investments                              
Unrealized holding gains arising during period   217    1,397    1,518    50    322    578 
Less: reclassification adjustment for gains included in net income   241    1,556    2,161    109    704    1,493 
Other comprehensive (loss) income   (66)   (430)   10,088    (36)   (236)   1,488 
                               
TOTAL COMPREHENSIVE INCOME (LOSS)   6,016    38,752    (64,640)   4,866    31,354    (83,378)
                               
Net income (loss) per share – basic and diluted   0.13    0.86    (1.69)   0.11    0.68    (1.94)
                               
Weighted average shares used in calculating basic and diluted net income (loss) per share   43,648,571    46,648,571    43,583,448    46,660,948    46,660,948    43,595,871 

  

 

 

 

AMBOW EDUCATION HOLDING LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except for share and per share data)

 

   For the years ended December 31,   For the three months ended December 31, 
   2021   2021   2020   2021   2021   2020 
   US$   RMB   RMB   US$   RMB   RMB 
   Audited   Audited   Audited   Unaudited   Unaudited   Unaudited 
NET REVENUES                              
Educational programs and services   77,202    491,979    525,727    18,001    114,711    167,629 
Intelligent programs and services   769    4,898    6,253    651    4,146    5,901 
Total net revenues   77,971    496,877    531,980    18,652    118,857    173,530 
COST OF REVENUES                              
 Educational programs and services   (52,786)   (336,381)   (379,571)   (13,174)   (83,950)   (101,888)
Intelligent programs and services   (499)   (3,177)   (7,919)   (152)   (966)   (5,579)
Total cost of revenues   (53,285)   (339,558)   (387,490)   (13,326)   (84,916)   (107,467)
                               
GROSS PROFIT   24,686    157,319    144,490    5,326    33,941    66,063 
Operating expenses:                              
Selling and marketing   (8,704)   (55,468)   (52,355)   (2,654)   (16,914)   (14,494)
General and administrative   (26,676)   (169,994)   (174,283)   (7,348)   (46,829)   (47,053)
Research and development   (2,273)   (14,487)   (5,703)   (725)   (4,623)   (1,247)
Impairment loss   (1,652)   (10,525)   (36,699)   -    -    - 
Total operating expenses   (39,305)   (250,474)   (269,040)   (10,727)   (68,366)   (62,794)
                               
OPERATING (LOSS) INCOME   (14,619)   (93,155)   (124,550)   (5,401)   (34,425)   3,269 
                               
OTHER INCOME (EXPENSES)                              
Interest income   1,408    8,971    9,501    449    2,863    2,351 
Foreign exchange gain, net   35    223    980    3    17    949 
Other income (loss), net   260    1,657    (1,244)   -    2    (2,084)
Gain from derecognition of liabilities   -    -    3,926    -    -    3,926 
Gain from deregistration of subsidiaries   208    1,325    3,967    -    -    - 
Gain on disposal of subsidiaries   1,908    12,158    752    214    1,366    - 
Gain on the bargain purchase   -    -    40,273    -    -    - 
Gain on forgiven PPP loan   1,460    9,305    -    -    -    - 
Gain on sale of investment available for sale   378    2,412    3,476    34    216    999 
Total other income   5,657    36,051    61,631    700    4,464    6,141 
LOSS BEFORE INCOME TAX AND NON-CONTROLLING INTEREST   (8,962)   (57,104)   (62,919)   (4,701)   (29,961)   9,410 
Income tax benefit (expense)   9,275    59,108    (1,062)   (1,133)   (7,217)   1,337 
                               
NET INCOME (LOSS)   313    2,004    (63,981)   (5,834)   (37,178)   10,747 
Less: Net loss attributable to non-controlling interest   (157)   (998)   (1,269)   (28)   (177)   (229)
                               
NET INCOME (LOSS) ATTRIBUTABLE TO ORDINARY SHAREHOLDERS   470    3,002    (62,712)   (5,806)   (37,001)   10,976 
                               
NET INCOME (LOSS)   313    2,004    (63,981)   (5,834)   (37,178)   10,747 
                               
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX                              
Foreign currency translation adjustments   (112)   (711)   6,234    (69)   (440)   (4,497)
Unrealized gains on short term investments                              
Unrealized holding gains arising during period   237    1,513    2,458    18    116    940 
Less: reclassification adjustment for gains included in net income   253    1,612    2,932    9    56    771 
Other comprehensive (loss) income   (128)   (810)   5,760    (60)   (380)   (4,328)
                               
TOTAL COMPREHENSIVE INCOME (LOSS)   185    1,194    (58,221)   (5,894)   (37,558)   6,419 
                               
Net income (loss) per share – basic and diluted   0.01    0.06    (1.41)   (0.12)   (0.79)   0.23 
                               
Weighted average shares used in calculating basic and diluted net income (loss) per share   46,654,853    46,654,853    44,372,326    46,673,494    46,673,494    46,721,812 

  

 

 

 

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  
                                  Accumulated            
     Class A Ordinary     Class C Ordinary     Additional                 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, 2021   41,923,276     794     4,708,415     90     3,545,073     4,210     (3,419,146 )   12,101     (1,968 )   141,154  
Share-based compensation   -     -     -     -     219     -     -     -     -     219  
Issuance of ordinary shares for restricted stock award   12,500     0     -     -     (0 )   -     -     -     -     -  
Foreign currency translation adjustment   -     -     -     -     -     -     -     115     -     115  
Unrealized gain on investment, net of income taxes   -     -     -     -     -     -     -     38     -     38  
Net loss   -     -     -     -     -     -     (14,329 )   -     (242 )   (14,571 )
Balance as of March 31, 2021   41,935,776     794     4,708,415     90     3,545,292     4,210     (3,433,475 )   12,254     (2,210 )   126,955  
Share-based compensation   -     -     -     -     220     -     -     -     -     220  
Issuance of ordinary shares for restricted stock award   12,500     0     -     -     (0 )   -     -     -     -     -  
Foreign currency translation adjustment   -     -     -     -     -     -     -     (532 )   -     (532 )
Unrealized gain on investment, net of income taxes   -     -     -     -     -     -     -     185     -     185  
Net income/(loss)   -     -     -     -     -     -     22,440     -     (277 )   22,163  
Balance as of June 30, 2021   41,948,276     794     4,708,415     90     3,545,512     4,210     (3,411,035 )   11,907     (2,487 )   148,991  
Share-based compensation   -     -     -     -     224     -     -     -     -     224  
Issuance of ordinary shares for restricted stock award   12,500     1     -     -     (1 )   -     -     -     -     -  
Foreign currency translation adjustment   -     -     -     -     -     -     -     146     -     146  
Unrealized gain on investment, net of income taxes   -     -     -     -     -     -     -     (382 )   -     (382 )
Capital injection from minority shareholders   -     -     -     -     -     -     -     -     100     100  
Deregistration of subsidiaries   -     -     -     -     -     (373 )   373     -     3,351     3,351  
Net income/(loss)   -     -     -     -     -     -     31,892     -     (302 )   31,590  
Balance as of September 30, 2021   41,960,776     795     4,708,415     90     3,545,735     3,837     (3,378,770 )   11,671     662     184,020  
Share-based compensation   -     -     -     -     220     -     -     -     -     220  
Issuance of ordinary shares for restricted stock award   12,500     0     -     -     (0 )   -     -     -     -     -  
Foreign currency translation adjustment   -     -     -     -     -     -     -     (440 )   -     (440 )
Unrealized gain on investment, net of income taxes   -     -     -     -     -     -     -     60     -     60  
Net loss   -     -     -     -     -     -     (37,001 )   -     (177 )   (37,178 )
Balance as of December 31, 2021   41,973,276     795     4,708,415     90     3,545,955     3,837     (3,415,771 )   11,291     485     146,682  
                                                           
    Attributable to Ambow Education Holding Ltd.’s Equity  
                                  Accumulated            
     Class A Ordinary     Class C Ordinary     Additional                 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     (3,371,815 )   6,341     (680 )   163,596  
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  
Impact on adoption of ASC 326   -     -     -     -     -     -     (594 )   -     -     (594 )
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  
Share-based compensation   -     -     -     -     242     -     -     -     -     242  
Issuance of ordinary shares for restricted stock award   12,500     1     -     -     (1 )   -     -     -     -     -  
Foreign currency translation adjustment   -     -     -     -     -     -     -     7,895     -     7,895  
Unrealized gain on investment, net of income taxes   -     -     -     -     -     -     -     118     -     118  
Deregistration of subsidiaries   -     -     -     -     -     (15,473 )   15,473     -     -     -  
Net income/(loss)   -     -     -     -     -     -     4,807     -     (296 )   4,511  
Balance as of June 30, 2020   38,883,199     731     4,708,415     90     3,509,224     4,712     (3,346,090 )   14,941     (1,388 )   182,220  
Share-based compensation   -     -     -     -     239     -     -     -     -     239  
Issuance of ordinary shares for restricted stock award   12,501     0     -     -     (0 )   -     -     -     -     -  
Foreign currency translation adjustment   -     -     -     -     -     -     -     2,403     -     2,403  
Unrealized gain on investment, net of income taxes   -     -     -     -     -     -     -     (915 )   -     (915 )
Deregistration of subsidiaries   -     -     -     -     -     -     -     -     (16 )   (16 )
Disposal of subsidiaries   -     -     -     -     (133 )   (502 )   502     -     -     (133 )
Net loss   -     -     -     -     -     -     (84,534 )   -     (332 )   (84,866 )
Balance as of September 30, 2020   38,895,700     731     4,708,415     90     3,509,330     4,210     (3,430,122 )   16,429     (1,736 )   98,932  
Share-based compensation   -     -     -     -     228     -     -     -     -     228  
Issuance of ordinary shares for restricted stock award   12,500     0     -     -     (0 )   -     -     -     -     -  
Issuance of ordinary shares in a registered direct offering   3,015,076     63     -     -     35,515     -     -     -     -     35,578  
Foreign currency translation adjustment   -     -     -     -     -     -     -     (4,497 )   -     (4,497 )
Unrealized gain on investment, net of income taxes   -     -     -     -     -     -     -     169     -     169  
Deregistration of subsidiaries   -     -     -     -     -     -     -     -     (3 )   (3 )
Net income/(loss)   -     -     -     -     -     -     10,976     -     (229 )   10,747  
Balance as of December 31, 2020   41,923,276     794     4,708,415     90     3,545,073     4,210     (3,419,146 )   12,101     (1,968 )   141,154  
                                                             

 

 

 

Discussion of Segment Operations

(All amounts in thousands)

 

   For the nine months ended September 30,   For the three months ended September 30, 
   2021   2021   2020   2021   2021   2020 
   US$   RMB   RMB   US$   RMB   RMB 
NET REVENUES                              
K-12 Schools   32,424    208,922    185,766    5,164    33,272    58,966 
CP&CE Programs   26,244    169,098    172,684    6,656    42,892    53,742 
Total net revenues   58,668    378,020    358,450    11,820    76,164    112,708 
COST OF REVENUES                              
K-12 Schools   (20,692)   (133,330)   (119,972)   (5,501)   (35,444)   (45,430)
CP&CE Programs   (18,828)   (121,312)   (160,051)   (5,881)   (37,893)   (60,811)
Total cost of revenues   (39,520)   (254,642)   (280,023)   (11,382)   (73,337)   (106,241)
GROSS PROFIT                              
K-12 Schools   11,732    75,592    65,794    (337)   (2,172)   13,536 
CP&CE Programs   7,416    47,786    12,633    775    4,999    (7,069)
Total gross profit   19,148    123,378    78,427    438    2,827    6,467 

  

   For the years ended December 31,   For the three months ended December 31, 
   2021   2021   2020   2021   2021   2020 
   US$   RMB   RMB   US$   RMB   RMB 
NET REVENUES                              
K-12 Schools   42,426    270,362    291,539    9,642    61,440    105,773 
CP&CE Programs   35,545    226,515    240,441    9,010    57,417    67,757 
Total net revenues   77,971    496,877    531,980    18,652    118,857    173,530 
COST OF REVENUES                              
K-12 Schools   (27,067)   (172,489)   (188,628)   (6,145)   (39,159)   (68,656)
CP&CE Programs   (26,218)   (167,069)   (198,862)   (7,181)   (45,757)   (38,811)
Total cost of revenues   (53,285)   (339,558)   (387,490)   (13,326)   (84,916)   (107,467)
GROSS PROFIT                              
K-12 Schools   15,359    97,873    102,911    3,497    22,281    37,117 
CP&CE Programs   9,327    59,446    41,579    1,829    11,660    28,946 
Total gross profit   24,686    157,319    144,490    5,326    33,941    66,063