Operations and Reorganization (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of the Company's subsidiaries and VIEs


			Percentage of
	Place of	Date of	Direct or Indirect
	Incorporation/	Incorporation/	Economic
Company	Establishment	Establishment	Ownership
Subsidiaries
China Online Education (HK) Limited	Hong Kong	April 1, 2013	100	%
51Talk English International Limited	Hong Kong	October 7, 2014	100	%
China Online Innovations Inc.*	Philippines	October 9, 2014	99.99986	%
On Demand English Innovations Inc.*	Philippines	January 14, 2016	99.996	%
Beijing Dasheng Online Technology Co., Ltd.	PRC	June 4, 2013	100	%
Helloworld Online Education Group	Cayman	July 13, 2018	100	%
Helloworld Online Education Group (HK) Limited	Hong Kong	August 10, 2018	100	%
Beijing Helloworld Online Technology Co., Ltd.	PRC	September 3, 2018	100	%
TESOL Academy Online Limited	Hong Kong	February 25, 2019	100	%
VIEs
Beijing Dasheng Zhixing Technology Co., Ltd	PRC	July 8, 2011	100	%
51Talk English Philippines Corporation	Philippines	August 3, 2012	100	%
Shanghai Zhishi Education Training Co., Ltd	PRC	December 30, 2016	100	%
Wuhan Houdezaiwu Online Technology Co., Ltd	PRC	January 12, 2017	100	%
Beijing Dasheng Helloworld Technology Co., Ltd.	PRC	July 9, 2018	100	%
Shenzhen Dasheng Zhiyun Technology Co., Ltd.	PRC	July 17, 2019	100	%

* The Company directly holds the 99.99986% and 99.996% shares of China Online Innovations Inc. and On Demand English Innovations Inc. respectively. There is no substantive non-controlling interest for China Online Innovations Inc. and On Demand English Innovations Inc. as of December 31, 2018 and 2019. The non-controlling shareholders are nominee shareholders mainly consisting of local residents to comply with local regulations of the Philippines.

Dasheng Zhixing, Zhishi Training, Houdezaiwu online and Tianjin Zhixing

Operations and Reorganization

Schedule of the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs taken as a whole, which were included in the Group's consolidated balance sheets and statements of comprehensive loss


	As of December 31,
	2018	2019
	RMB	RMB
Cash and cash equivalents	128,773	214,081
Time deposits	—	50,000
Short-term investments	136,304	373,972
Prepaid expenses and other current assets	200,936	211,757
Inventory	—	308
Amounts due from inter-company entities*	522,430	2,610,083
Property and equipment, net	16,402	10,645
Rights of use assets	—	19,763
Other assets	12,079	11,377
Total assets	1,016,924	3,501,986
Advances from students-current	1,667,470	2,181,798
Advances from students-non-current	17,321	4,783
Accrued expenses and other current liabilities	105,864	77,050
Taxes payable	3,043	1,993
Lease liability-current and non-current	—	17,915
Amounts due to inter-company entities*	215,713	2,202,909
Total liabilities	2,009,411	4,486,448

* All inter-company balances have been eliminated upon consolidation.


	For the year ended December 31,
	2017	2018	2019
	RMB	RMB	RMB
Net revenues	848,090	1,145,517	1,478,493
Net loss	(260,433)	(253,493)	(20,893)


	For the year ended December 31,
	2017	2018	2019
	RMB	RMB	RMB
Net cash provided by/(used in) operating activities	167,326	(28,969)	372,668
Net cash used in investing activities	(119,532)	(18,595)	(287,360)
Net increase/(decrease) in cash and cash equivalents	47,794	(47,564)	85,308

51Talk English Philippines Corporation

Operations and Reorganization


	As of December 31,
	2018	2019
	RMB	RMB
Cash and cash equivalents	403	415
Prepaid expenses and other current assets	550	576
Amounts due from inter-company entities*	2,396	2,523
Total assets	3,349	3,514
Accrued expenses and other current liabilities	1,020	1,062
Taxes payable	11,176	11,766
Other non-current liabilities	235	247
Total liabilities	12,431	13,075

* All inter-company balances have been eliminated upon consolidation.


	For the year ended December 31,
	2017	2018	2019
	RMB	RMB	RMB
Net revenues	—	—	—
Net loss	(1,034)	(515)	(1,843)


	For the year ended December 31,
	2017	2018	2019
	RMB	RMB	RMB
Net cash used in operating activities	(1,426)	(24)	(7)
Effect of exchange rate changes on cash and cash equivalents	(74)	3	19
Net increase/(decrease) in cash and cash equivalents	(1,500)	(21)	12

Beijing Dasheng Helloworld Technology Co., Ltd.

Operations and Reorganization


	As of December 31,
	2018	2019
	RMB	RMB
Cash and cash equivalents	17	743
Prepaid expenses and other current assets	220	4,597
Amounts due from inter-company entities*	—	44,672
Property and equipment, net	—	200
Rights of use assets	—	1,947
Other assets	—	1
Total assets	237	52,160
Amounts due to inter-company entities*	1,356	59,281
Accrued expenses and other current liabilities	90	7,107
Taxes payable	5	287
Lease liability	—	1,686
Total liabilities	1,451	68,361

* All inter-company balances have been eliminated upon consolidation.


	For the year ended December 31,
	2017	2018	2019
	RMB	RMB	RMB
Net revenues	—	—	42,132
Net loss	—	(1,215)	(15,176)


	For the year ended December 31,
	2017	2018	2019
	RMB	RMB	RMB
Net cash provided by operating activities	—	17	1,249
Net cash used in investing activities	—	—	(523)
Net increase in cash and cash equivalents	—	17	726

Shenzhen Dasheng Zhiyun Technology Co., Ltd

Operations and Reorganization


	As of December 31,
	2018	2019
	RMB	RMB
Cash and cash equivalents	—	827
Amounts due from inter-company entities*	—	1,200
Total assets	—	2,027
Amounts due to inter-company entities*	—	906
Advances from students—current	—	10
Accrued expenses and other current liabilities	—	824
Taxes payable	—	77
Total liabilities	—	1,817

* All inter-company balances have been eliminated upon consolidation.


	For the year ended December 31,
	2017	2018	2019
	RMB	RMB	RMB
Net revenues	—	—	1,748
Net profit	—	—	210


	For the year ended December 31,
	2017	2018	2019
	RMB	RMB	RMB
Net cash provided by operating activities	—	—	827
Net increase in cash and cash equivalents	—	—	827

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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