Condensed Financial Information Of Parent Company

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Of Parent Company Only 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,
	2017			2018			2018
	RMB			RMB			US$
ASSETS
Cash and cash equivalents		155,652			1,086,521			158,028
Short-term investments		—			441,513			64,215
Prepaid expenses and other current assets		—			11,950			1,738
Amounts due from subsidiaries		509,657			695,194			101,112
Amounts due from related parties		242,078			—			—
Total current assets		907,387			2,235,178			325,093
TOTAL ASSETS		907,387			2,235,178			325,093

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT
LIABILITIES
Current liabilities
Accrued expenses and other current liabilities		81			6,268			912
Total current liabilities		81			6,268			912
Non-current liabilities
Investment in subsidiaries		1,524,565			2,556,801			371,871
Other non-current liabilities		—			11,228			1,633
Total non-current liabilities		1,524,565			2,568,029			373,504
TOTAL LIABILITIES		1,524,646			2,574,297			374,416

MEZZANINE EQUITY
Series A convertible redeemable preferred shares		292,000			—			—
Series B convertible redeemable preferred shares		601,605			—			—
Series B+ convertible redeemable preferred shares		131,104			—			—
TOTAL MEZZANINE EQUITY		1,024,709			—			—

SHAREHOLDERS’ DEFICIT
Ordinary shares (par value of US$0.00005, 1,000,000,000 shares authorized; 4,329,000 and nil shares issued and outstanding as of December 31, 2017 and 2018, respectively)		1			—			—
Class A ordinary shares (par value of US$0.00005, 796,062,195 shares authorized; nil and 1,818,383 shares issued as of December 31, 2017 and 2018, respectively; nil and 1,773,301 shares outstanding as of December 31, 2017 and 2018, respectively)		—			1			—
Class B ordinary shares (par value of US$0.00005, 826,389 shares authorized; nil and 826,389 shares issued and outstanding as of December 31, 2017 and 2018, respectively)		—			—			—
Class C ordinary shares (par value of US$0.00005, 203,111,416 shares authorized; nil and 4,265,286 shares issued and outstanding as of December 31, 2017 and 2018, respectively)		—			1			—
Treasury stock		—			—			—
Additional paid-in capital		289,674			2,391,822			347,876
Accumulated other comprehensive (loss)/income		(8,759	)		118,827			17,283
Accumulated deficit		(1,922,884	)		(2,849,770	)		(414,482	)
TOTAL SHAREHOLDERS’ DEFICIT		(1,641,968	)		(339,119	)		(49,323	)
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT		907,387			2,235,178			325,093

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF OPERATIONS

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

	For the years ended December 31,
	2016			2017			2018
	RMB			RMB			RMB			US$
Cost of revenues		—			(19,244	)		(475	)		(69	)
Gross profit		—			(19,244	)		(475	)		(69	)
Operating expenses
Sales and marketing expenses		—			(75,237	)		(820	)		(119	)
General and administrative expenses		(4	)		(194,878	)		(15,335	)		(2,230	)
Total operating expenses		(4	)		(270,115	)		(16,155	)		(2,349	)
Loss from operations		(4	)		(289,359	)		(16,630	)		(2,418	)
Interest income		—			1,592			33,525			4,876
(Loss)/profit before income tax expenses		(4	)		(287,767	)		16,895			2,458
Income tax expenses		—			—			—			—
Loss from investment in subsidiaries		(253,563	)		(630,947	)		(943,781	)		(137,268	)
Net loss		(253,567	)		(918,714	)		(926,886	)		(134,810	)

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENT OF CHANGES IN SHAREHOLDERS’ DEFICIT

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

							Class A					Class B				Class C				Additional			Treasury				Accumulated other						Total
	Ordinary shares						Ordinary shares					Ordinary shares				Ordinary shares				paid-in			stock				comprehensive			Accumulated			shareholders'
	Shares			Amounts			Shares			Amounts		Shares		Amounts		Shares		Amounts		capital			Shares		Amounts		(loss)/income			deficit			deficit
				RMB						RMB				RMB				RMB		RMB					RMB		RMB			RMB			RMB
Balance as of January 1, 2016		3,818,618			1			—			—		—		—		—		—		911			—		—		—			(372,656	)		(371,744	)
Net loss for the year		—			—			—			—		—		—		—		—		—			—		—		—			(253,567	)		(253,567	)
Recapitalization in connection with the Group’s 2016 reorganization		—			—			—			—		—		—		—		—		—			—		—		—			(293,644	)		(293,644	)
Capital contribution from equity shareholders		—			—			—			—		—		—		—		—		30,000			—		—		—			—			30,000
Balance as of December 31, 2016		3,818,618			1			—			—		—		—		—		—		30,911			—		—		—			(919,867	)		(888,955	)
Net loss for the year		—			—			—			—		—		—		—		—		—			—		—		—			(918,714	)		(918,714	)
Capital contribution from a noncontrolling shareholder		—			—			—			—		—		—		—		—		—			—		—		—			—			—
Repurchase of equity from shareholders		—			—			—			—		—		—		—		—		(30,000	)		—		—		—			(41,303	)		(71,303	)
Cash dividend to a Series A convertible redeemable preferred shareholder		—			—			—			—		—		—		—		—		—			—		—		—			(43,000	)		(43,000	)
Shares issuance in relation to share-based compensation		510,382			—			—			—		—		—		—		—		—			—		—		—			—			—
Share-based compensation		—			—			—			—		—		—		—		—		288,763			—		—		—			—			288,763
Foreign currency translation adjustments		—			—			—			—		—		—		—		—		—			—		—		(8,759	)		—			(8,759	)
Balance as of December 31, 2017		4,329,000			1			—			—		—		—		—		—		289,674			—		—		(8,759	)		(1,922,884	)		(1,641,968	)
Net loss for the year		—			—			—			—		—		—		—		—		—			—		—		—			(926,886	)		(926,886	)
Issuance of ordinary shares, net of issuance cost of 80,128		—			—			659,131			—		—		—		—		—		1,109,517			—		—		—			—			1,109,517
Conversion of convertible redeemable preferred shares upon initial public offering		(4,329,000	)		(1	)		1,159,252			1		826,389		—		4,265,286		1		1,024,708			—		—		—			—			1,024,709
Share repurchase		—			—			(45,082	)		—		—		—		—		—		(34,828	)		45,082		—		—			—			(34,828	)
Share-based compensation		—			—			—			—		—		—		—		—		2,751			—		—		—			—			2,751
Foreign currency translation adjustments		—			—			—			—		—		—		—		—		—			—		—		127,586			—			127,586
Balance as of December 31, 2018 in RMB		—			—			1,773,301			1		826,389		—		4,265,286		1		2,391,822			45,082		—		118,827			(2,849,770	)		(339,119	)
Balance as of December 31, 2018 in USD		—			—			1,773,301			—		826,389		—		4,265,286		—		347,876			45,082		—		17,283			(414,482	)		(49,323	)

Note: The number of ordinary shares reflects the outstanding ordinary shares of the Company as if the Group’s 2017 reorganization took place on January 1, 2016.

ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF CASH FLOWS

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

	For the years ended December 31,
	2016			2017			2018
	RMB			RMB			RMB			US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		(253,567	)		(918,714	)		(926,886	)		(134,810	)
Adjustments to reconcile net loss to net cash generated from operating activities:
Share-based compensation		—			288,763			3,851			560
Loss from investment in subsidiaries		253,563			813,313			1,032,235			150,132
Amounts due to subsidiaries		—			(751,735	)		(185,537	)		(26,985	)
Prepaid expenses and other current assets		—			—			(19,276	)		(2,804	)
Other non-current liabilities		—			—			11,228			1,633
Accrued expenses and other current liabilities		4			75			4,231			615
Net cash used in operating activities		—			(568,298	)		(80,154	)		(11,659	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of short-term investments		—			—			(814,539	)		(118,470	)
Disposal of short-term investments		—			—			396,852			57,720
Net cash used in investing activities		—			—			(417,687	)		(60,750	)
CASH FLOWS FROM FINANCING ACTIVITIES
Amounts due from related parties		—			—			245,654			35,729
Payment for share repurchase		—			—			(33,971	)		(4,941	)
Proceeds from initial public offering, net of issuance cost of 80,128		—			—			1,109,517			161,373
Capital contribution from series B and B+ convertible redeemable preferred shareholders		—			732,709			—			—
Net cash generated from financing activities		—			732,709			1,321,200			192,161
Effect of exchange rate charges		—			(8,759	)		107,510			15,637
Net increase in cash and cash equivalents		—			155,652			930,869			135,389
Cash and cash equivalents at beginning of the year		—			—			155,652			22,639
Cash and cash equivalents at end of the year		—			155,652			1,086,521			158,028

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)

Schedule I has been provided pursuant the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

2.	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.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Group and, as such, these statements should be read in conjunction with the notes to the Consolidated Financial Statements of the Group. No dividend was paid by the Group's subsidiaries to their parent company in 2016, 2017 and 2018.

As of December 31, 2018, there were no material contingencies, significant provisions of long-term obligations, and mandatory dividend or redemption requirements of redeemable shares or guarantees of the Group, except for those which have been separately disclosed in the Consolidated Financial Statement, if any.