Condensed Financial Information Of Parent Company

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of Parent Company

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

BALANCE SHEETS

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

	As of December 31,
	2022			2023			2023
	RMB			RMB			US$
ASSETS
Current assets
Cash and cash equivalents		496,184			483,990			68,169
Prepaid expenses and other current assets		8,805			12,045			1,697
Amounts due from subsidiaries		1,383,654			1,350,095			190,157
Total current assets		1,888,643			1,846,130			260,023
Non-current assets
Long-term investments		12,622			16,528			2,328
Other non-current assets		25,424			26,106			3,677
Total non-current assets		38,046			42,634			6,005
TOTAL ASSETS		1,926,689			1,888,764			266,028
LIABILITIES AND SHAREHOLDERS’ DEFICIT
LIABILITIES
Current liabilities
Accrued expenses and other current liabilities		46,709			8,400			1,185
Total current liabilities		46,709			8,400			1,185
Non-current liabilities
Deficits of investments in subsidiaries, VIEs and VIEs' subsidiaries		2,254,467			1,603,328			225,824
Total non-current liabilities		2,254,467			1,603,328			225,824
TOTAL LIABILITIES		2,301,176			1,611,728			227,009
SHAREHOLDERS’ (DEFICIT)/EQUITY
Class A ordinary shares (par value of US$0.00005, 796,062,195 shares authorized;    2,982,516 and 3,131,807 shares issued as of December 31, 2022 and 2023,    respectively; 2,618,698 and 2,702,523 shares outstanding as of December 31,    2022 and 2023, 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, 2022    and 2023, respectively)		—			—			—
Class C ordinary shares (par value of US$0.00005, 203,111,416 shares authorized;    3,481,353 and 3,332,062 shares issued and outstanding as of December 31,    2022 and 2023, respectively)		1			1			—
Treasury stock		—			—			—
Additional paid-in capital		2,309,740			2,305,042			324,658
Accumulated other comprehensive income		127,885			143,276			20,180
Accumulated deficit		(2,812,114	)		(2,171,284	)		(305,819	)
TOTAL SHAREHOLDERS’ (DEFICIT)/EQUITY		(374,487	)		277,036			39,019
TOTAL LIABILITIES AND SHAREHOLDERS’ (DEFICIT)/EQUITY		1,926,689			1,888,764			266,028

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF OPERATIONS

(Amounts in thousands)

	Years ended December 31,
	2021			2022			2023
	RMB			RMB			RMB			US$
Cost of revenues		(101	)		(33	)		—			—
Gross profit		(101	)		(33	)		—			—
Operating expenses
Sales and marketing expenses		14			(4,166	)		—			—
General and administrative expenses		(58,477	)		(41,269	)		(34,462	)		(4,854	)
Total operating expenses		(58,463	)		(45,435	)		(34,462	)		(4,854	)
Loss from operations		(58,564	)		(45,468	)		(34,462	)		(4,854	)
Interest income		5,349			8,764			21,985			3,097
Other income/(expenses), net		8			(2,202	)		2,883			406
Loss before income tax expenses		(53,207	)		(38,906	)		(9,594	)		(1,351	)
Income tax expenses		—			—			—			—
Income from investment in subsidiaries		272,263			682,865			650,424			91,609
Net income		219,056			643,959			640,830			90,258

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME

(Amounts in thousands)

	Years ended December 31,
	2021			2022		2023
	RMB			RMB		RMB		US$
Net income		219,056			643,959		640,830		90,258
Other comprehensive (loss)/income, net of tax effect of nil:
Change in cumulative foreign currency translation adjustments		(13,958	)		45,353		15,391		2,168
Total comprehensive income		205,098			689,312		656,221		92,426

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF CASH FLOWS

(Amounts in thousands)

	Years ended December 31,
	2021			2022			2023
	RMB			RMB			RMB			US$
Net cash used in operating activities		(37,609	)		(53,792	)		(66,321	)		(9,341	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of long-term investments		—			(13,013	)		(1,958	)		(276	)
Amounts due from subsidiaries		(69,529	)		47,138			33,559			4,727
Loan to employees		(2,204	)		—			—			—
Net cash (used in)/generated from investing activities		(71,733	)		34,125			31,601			4,451
CASH FLOWS FROM FINANCING ACTIVITIES
Share repurchase		(4,866	)		(6,742	)		(4,750	)		(669	)
Proceeds from exercise of share options		—			10,047			—			—
Payment for cash dividend		—			(32,562	)		(31,254	)		(4,402	)
Net cash used in financing activities		(4,866	)		(29,257	)		(36,004	)		(5,071	)
Effect of exchange rate changes		(13,365	)		45,245			58,530			8,244
Net decrease in cash and cash equivalents		(127,573	)		(3,679	)		(12,194	)		(1,717	)
Cash and cash equivalents at beginning of the year		627,436			499,863			496,184			69,886
Cash and cash equivalents at end of the year		499,863			496,184			483,990			68,169

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

NOTES TO FINANCIAL STATEMENTS

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

1.BASIS FOR PREPARATION

The condensed financial information of Sunlands Technology Group has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries, the VIEs and VIEs' subsidiaries.

2.INVESTMENTS IN SUBSIDIARIES AND VIES AND VIES' SUBSIDIARIES

The Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries were included in the consolidated financial statements where the inter-company balances and transactions were eliminated upon consolidation. For purpose of the Company’s stand-alone financial statements, its investments in subsidiaries, the VIEs and the VIEs’ subsidiaries were reported using the equity method of accounting. The Company’s share of loss/income from its subsidiaries, the VIEs and the VIEs’ subsidiaries were reported as equity in earnings of its subsidiaries, the VIEs and the VIEs’ subsidiaries in the condensed statements of operations.

3.CONVENIENCE TRANSLATION

The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the balance sheet, and the related statement of operations and cash flows from Renminbi (“RMB”) into US dollars as of and for the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0999, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 29, 2023, or at any other rate.