Revenue and Growth - Total revenue for the six months ended November 30, 2020, was RMB 676.8 million, representing a 19.2% increase from RMB 567.6 million for the same period in 2019[17]. - The total number of paid students increased to 2.1 million, a year-on-year growth of 62.5%[23]. - K-12 education segment revenue and paid student numbers increased by 162.9% and 143.4% respectively[23]. - Revenue for the K-12 education segment rose by 162.9% to RMB 336.9 million, driven by the expansion of online K-12 and DFUB courses[36]. - K-12 education segment's paid student count increased by 143.4% year-over-year, reaching 1.8 million students[36]. - Revenue from student customers was RMB 633,726,000, representing 93.6% of total revenue, while revenue from institutional customers was RMB 43,029,000[127]. - The online live course services for students generated RMB 381,302,000, a significant increase from RMB 140,007,000 in the previous year[127]. Financial Performance - The adjusted loss for the period was RMB 661.4 million, compared to RMB 56.3 million in the previous year, marking a 1,075.8% increase[17]. - The company reported a net loss of RMB 674.4 million for the period, compared to RMB 87.5 million in the previous year, reflecting a 670.6% increase[17]. - The gross profit for the six-month period ended November 30, 2020, was RMB 153,134 thousand, down from RMB 317,106 thousand in the previous year, indicating a decline of approximately 51.8%[105]. - The company reported a loss before tax of RMB 667,402,000 for the six months ended November 30, 2020, compared to a loss of RMB 94,863,000 in the same period of 2019[129]. - The net loss for the period increased by 670.6% from RMB 87.5 million to RMB 674.4 million, reflecting the overall financial challenges faced[53]. Expenses and Costs - Total revenue cost increased by 109.0% from RMB 250.5 million for the six months ended November 30, 2019, to RMB 523.6 million for the six months ended November 30, 2020, primarily due to increased teaching staff and course research personnel costs[39]. - Gross profit decreased by 51.7% from RMB 317.1 million to RMB 153.1 million, with a gross margin decline from 55.9% to 22.6% during the same periods, mainly due to strong development in the K-12 segment[39]. - K-12 education segment total revenue cost surged by 281.2% from RMB 111.8 million to RMB 426.0 million, resulting in a gross loss of RMB 89.1 million compared to a gross profit of RMB 16.4 million in the previous period[42]. - Sales and marketing expenses rose by 76.7% from RMB 291.6 million to RMB 515.3 million, driven by the establishment of a multi-channel marketing team and increased personnel costs[47]. - Research and development expenses increased by 81.6% from RMB 128.9 million to RMB 234.1 million, reflecting the need for more qualified personnel to support business expansion[48]. - Administrative expenses grew by 62.6% from RMB 78.8 million to RMB 128.1 million, primarily due to increased personnel costs and share-based compensation[49]. Student and Course Metrics - The average spending per paid student in the university education segment rose from RMB 1,128 to RMB 1,282[24]. - The average spending per paid student in K-12 education decreased from RMB 1,040 to RMB 892[21]. - The number of paid students in the university education segment decreased to 299,000 from 526,000 in the previous year[24]. - DFUB course paid student count surged by 170.3% year-over-year, reflecting strong demand and operational optimization[36]. Strategic Initiatives - The company continues to focus on enhancing its product offerings and marketing strategies to adapt to consumer needs[24]. - The company is expanding its K-12 interactive classes in lower-tier cities in China, contributing to growth in this segment[23]. - The company plans to enhance its teaching quality and operational efficiency through significant investments in talent and technology[32]. - The focus on customer-centric approaches aims to improve product offerings and meet evolving consumer demands[29]. - The integration of advanced technology in course design is expected to enhance learning outcomes and student engagement[31]. - The company plans to continue expanding its online education services and enhancing its technology offerings to improve customer engagement and retention[127]. Cash and Capital Resources - The company's cash and cash equivalents were RMB 1.9 billion as of November 30, 2020, down from RMB 4.8 billion on May 31, 2020[59]. - The asset-liability ratio increased to 66.0% as of November 30, 2020, compared to 38.9% on May 31, 2020[59]. - The company did not incur any bank loans or other borrowings during the reporting period, indicating sufficient cash and capital resources for operations and expansion[65]. - The company has no off-balance sheet transactions or significant contingent liabilities as of November 30, 2020[66]. Shareholder and Equity Information - The company has a total of 505,480,500 shares, representing approximately 53.76% of the total issued shares as of November 30, 2020[77]. - The employee stock option plan allows for the potential issuance of 28,145,285 shares, equivalent to about 3.0% of the company's issued share capital[81]. - The company has issued 90,416,181 shares to Tencent, representing 9.62% of the total equity[77]. - The company has a total of 16,695,285 shares potentially issuable to Mr. Yu under the employee stock option plan[3]. - The company completed a share subscription agreement with New Oriental and Tigerstep on December 24, 2020, with further details provided in announcements dated September 8, September 28, and October 14, 2020[87]. Corporate Governance and Compliance - The company has established an audit committee to review and supervise the financial reporting process and internal control systems[91]. - The company has complied with the corporate governance code as per the listing rules during the reporting period[89]. - The company had no significant litigation or arbitration as of November 30, 2020[93]. - The company did not declare an interim dividend for the reporting period, consistent with the previous period where no dividend was declared[93]. Related Party Transactions - The company reported trade purchases from Tencent Holdings Limited amounting to RMB 10,760,000, an increase from RMB 5,044,000 in the prior year[183]. - The company incurred interest expenses of RMB 627,000 related to lease liabilities with a related party, significantly up from RMB 121,000 in the previous period[183]. - The company had trade receivables from related parties of RMB 3,871,000 as of November 30, 2020, compared to no balance as of May 31, 2020[184].

Financial Performance - Total revenue increased by 17.6% from RMB 918.9 million in FY2019 to RMB 1.1 billion in FY2020[17] - The company reported a net loss of RMB (758,239) thousand for the fiscal year 2020, a significant increase from RMB (64,109) thousand in 2019, marking a 1,082.7% change[26] - The adjusted loss for the fiscal year 2020, according to non-IFRS measures, was RMB (658,022) thousand, compared to RMB (289) thousand in 2019, indicating a significant increase[26] - Gross profit decreased by 2.6% from RMB 506.4 million in FY2019 to RMB 493.1 million in FY2020, with the gross margin declining from 55.1% to 45.6%[44] - The net loss for the year increased by 1,082.7% from RMB 641 million in FY2019 to RMB 7,582 million in FY2020[56] Student Enrollment and Revenue Segments - Total student enrollments rose by 30.9% from 2.2 million in FY2019 to 2.9 million in FY2020[17] - K-12 education segment revenue surged by 85.4% to RMB 295.1 million, accounting for 27.3% of total revenue[18] - The number of paid students in the K-12 segment increased by 224.5% year-on-year, reaching 1.856 million from 572,000[41] - The university education segment revenue increased by 1.6% from RMB 631.4 million in FY2019 to RMB 641.7 million in FY2020, primarily due to growth in university and overseas exam preparation[40] - The total revenue of the preschool education segment decreased by 10.1% from RMB 334 million in FY2019 to RMB 300 million in FY2020, primarily due to the optimization of the Duona English app and the termination of live English classes[42] Operational Strategies and Investments - Investment in internet technology will focus on improving user experience, including server upgrades and expanding network coverage[20] - The company plans to enhance its proprietary live streaming platform, transitioning K-12 classes from third-party platforms[20] - New strategies include optimizing core teaching tools and implementing a comprehensive service model for students[20] - The company aims to increase customer acquisition through effective advertising strategies to ensure healthy user growth[20] - The company plans to integrate internal resources and upgrade existing product structures to enhance competitiveness in the higher education segment[21] Financial Position and Cash Flow - The company's cash and cash equivalents decreased to RMB 480.3 million as of May 31, 2020, down from RMB 2.5 billion at the beginning of the fiscal year[61] - Operating cash outflow for the fiscal year was RMB 521.4 million, compared to RMB 24.7 million in the previous year[61] - The company's asset-liability ratio increased to 38.9% at the end of fiscal year 2020, up from 21.4% at the end of fiscal year 2019[60] - The company plans to support future cash flow needs through internally generated cash and net proceeds from global offerings[60] - The company did not incur any bank loans or other borrowings during the reporting period, indicating sufficient cash and capital resources for operations and expansion[70] Governance and Management - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors, ensuring diverse governance[72] - The executive director and CEO, Mr. Sun Dongxu, has been with the company since August 16, 2019, bringing extensive experience in the education sector[74] - The company has established a compensation committee to determine the remuneration policy for directors and senior management[95] - The company has adopted a board diversity policy to enhance the diversity of board members[171] - The company confirmed that its risk management and internal control systems are effective and sufficient, with the Audit Committee conducting two reviews in the fiscal year 2020[175] Compliance and Regulatory Risks - The company is subject to potential scrutiny from Chinese tax authorities regarding its contractual arrangements, which could significantly reduce its net income and investment value[117] - Regulatory and compliance risks are significant due to strict regulations in China's internet and education sectors, necessitating continuous monitoring and compliance reviews[178] - The interpretation and implementation of the Foreign Investment Law in China present significant uncertainties that could impact the company's existing structure and operations[117] - The company has established a whistleblowing procedure for reporting fraud or bribery incidents, with the Audit Committee responsible for investigating such reports[175] - The company has a significant focus on maintaining compliance with Chinese legal requirements regarding foreign investment in its operations[114] Market Expansion and Future Plans - The company aims to expand its geographic footprint in China, targeting lower-tier cities for growth opportunities[39] - The company plans to enhance its online platforms and introduce new educational technologies to improve the learning experience[39] - The company plans to gradually utilize the remaining net proceeds based on actual business needs over the next five to ten years[93] - The company is actively working to meet qualification requirements for foreign investors in the value-added telecommunications sector in China[115] - The company has established an ESG working group to oversee and implement sustainability initiatives across all departments[200]

Financial Performance - In the fiscal year 2019, the total net revenue increased by approximately 41%, rising from RMB 650 million to RMB 919 million[11]. - Total revenue for the fiscal year 2019 increased by 41.3% to RMB 918.9 million, compared to RMB 650.5 million in 2018[18]. - The net loss for the fiscal year 2019 was RMB 64.1 million, a decline of 178.2% from a profit of RMB 82.0 million in 2018[18]. - The EBITDA for the fiscal year 2019 was a loss of RMB 122.0 million, compared to a profit of RMB 40.8 million in 2018, reflecting a decline of 399.3%[18]. - The gross profit rose by 27.3% to RMB 506.4 million, while the gross margin decreased from 61.2% to 55.1%[36]. - The company reported a net amount of approximately HKD 1.78 billion from its global offering, with no funds utilized in the fiscal year 2019[91]. - The company’s distributable reserves at the end of the fiscal year 2019 were approximately RMB 2.4 billion[98]. Student Enrollment and Segments - The number of students enrolled in the university education segment reached approximately 1.3 million, representing a growth of about 12% compared to fiscal year 2018[9]. - The K-12 business segment saw a significant increase in student enrollment, growing by approximately 209% compared to fiscal year 2018[11]. - The preschool education segment reported a net revenue increase of approximately 206%, driven by interactive educational content for children aged 3 to 10[11]. - The number of paid students in the university education segment increased to 1,293 thousand in 2019 from 1,158 thousand in 2018, representing an increase of 11.6%[24]. - K-12 education segment revenue grew by 80.8%, with paid student numbers increasing by 209.2%[26]. - Average spending per paid student in the preschool education segment rose from RMB 44 to RMB 185, leading to a revenue increase of 205.8%[26]. Cost and Expenses - The total cost of revenue increased by 63.3% to RMB 412.5 million, primarily due to higher teaching staff and course research personnel costs[36]. - Sales and marketing expenses surged by 98.2% from RMB 224.0 million in FY2018 to RMB 443.9 million in FY2019, driven by investments in promoting university courses and K-12 segment[43]. - R&D expenses increased by 46.9% from RMB 100.4 million in FY2018 to RMB 147.5 million in FY2019, due to the need for hiring qualified R&D personnel[44]. - Administrative expenses rose by 155.5% from RMB 40.5 million in FY2018 to RMB 103.4 million in FY2019, mainly due to share-based compensation expenses[45]. Cash Flow and Financing - As of May 31, 2019, the company's cash and cash equivalents amounted to RMB 2,497.6 million, a significant increase from RMB 709.4 million at the end of 2018[54]. - The net cash used in operating activities for the fiscal year 2019 was RMB 24.7 million, compared to RMB 149.4 million generated in 2018[55]. - The net cash generated from financing activities in fiscal year 2019 was approximately RMB 1,702.4 million, primarily due to proceeds from the issuance of shares[59]. - The company's total liabilities to total assets ratio improved to 21.4% at the end of fiscal year 2019, down from 38.2% at the end of fiscal year 2018[54]. Strategic Plans and Market Outlook - The company plans to expand its K-12 courses into more cities and provinces in China, enhancing localized curriculum offerings[12]. - The company anticipates continued growth in the online tutoring and exam preparation market in China, with a focus on retaining existing students and attracting new ones[12]. - Future outlook indicates a projected revenue growth of 10-15% for the upcoming fiscal year, driven by new product launches and market expansion strategies[73]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its offerings[75]. Corporate Governance and Compliance - The company has adopted the corporate governance code and has been compliant with all provisions except for the requirement of holding four board meetings annually[165]. - The company has established a remuneration committee to determine the remuneration policy for directors and senior management[94]. - The board consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors, complying with listing rules[164]. - The company has established arrangements for employees to confidentially raise concerns regarding financial reporting and internal controls[175]. Risks and Challenges - The company identified significant risks, including market competition and innovation risks, due to the highly fragmented and competitive nature of the online education sector in China[184]. - Regulatory and compliance risks are significant due to strict regulations in the internet and education sectors in China, prompting the company to monitor legal developments closely[186]. - Risks associated with the contractual arrangements include potential non-compliance with Chinese laws and the possibility of significant adverse impacts on business operations[114]. Shareholder Information - The board has the discretion to call special general meetings as deemed appropriate[198]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting, which must be held within two months of the request[198]. - The company does not have a fixed dividend payout ratio, and the board will review and amend the dividend policy as appropriate[193].