RYB Education, Inc. (RYB) Q3 2019 Results Conference Call November 20, 2019 8:00 AM ET Company Participants Serena Xue - IR Manager Yanlai Shi - CEO Hao Gu - CFO Conference Call Participants Elsie Sheng - Morgan Stanley Alex Xie - Credit Suisse Operator Hello, ladies and gentlemen. And thank you for standing by for RYB Education Incorporated Third Quarter 2019 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-a ...

RYB Education, Inc. (RYB) Q2 2019 Earnings Conference Call August 21, 2019 8:30 AM ET Company Participants Serena Xue - IR Manager Yanlai Shi - CEO Hao Gu - CFO Operator Hello, ladies and gentlemen. Thank you for standing by for the RYB Education IncorporatedÂ's Second Quarter 2019 Earnings Conference Call. At this time, all participants are in listen-only mode. TodayÂ's conference call is being recorded. I will now turn the call over to your host, Ms. Serena Xue, Investor Relations Manager for the company. ...

RYB Education (RYB) Q1 2019 Earnings Conference Call May 29, 2019 8:00 AM ET Company Participants Serena Xue - Investor Relations Yanlai Shi - Co-Founder, Director and Chief Executive Officer Ping Wei - Chief Financial Officer Hao Gu - Interim Chief Financial Officer Conference Call Participants Elsie Sheng - Morgan Stanley Ivy Liu - Credit Suisse Johnny Wong - Jefferies Jack Chang - BNP Paribas Operator Hello, ladies and gentlemen. Thank you for standing by for RYB Education Inc.Â's First Quarter 2019 Earn ...

Financial Performance - Total net revenues for the year ended December 31, 2018, were $156.498 million, representing a 11.0% increase from $140.803 million in 2017[34] - Gross profit for 2018 was $25.634 million, a decrease of 13.3% compared to $29.526 million in 2017[34] - Net loss attributable to RYB Education, Inc. for 2018 was $1.789 million, compared to a net income of $7.115 million in 2017[34] - Cash and cash equivalents as of December 31, 2018, were $104.084 million, down from $158.691 million in 2017[37] - Net cash generated from operating activities significantly decreased to $0.828 million in 2018 from $25.099 million in 2017[37] - Total assets increased to $243.455 million as of December 31, 2018, compared to $229.738 million in 2017[37] - Total equity rose to $113.340 million in 2018, up from $105.294 million in 2017[37] - Total operating expenses for 2018 were $28.661 million, an increase from $20.192 million in 2017[34] Regulatory Environment - The company faced regulatory uncertainties in the private education sector in China, which may materially affect its business operations and prospects[40] - The company may face restrictions on expanding its kindergarten business due to new regulations, limiting acquisitions of not-for-profit kindergartens and capital market financing for for-profit kindergartens[45] - The enforcement of the Circular on Initiating the Rectification may require the company to convert some community-affiliated kindergartens into low-profit or not-for-profit entities, potentially impacting profitability[46] - Uncertainty exists regarding the implementation of new regulations, which could materially affect the company's financial condition and operational results if compliance is not achieved[47] - The PRC government restricts foreign investment in preschool education, requiring foreign investors to partner with domestic parties who must hold a dominant role[107] - Foreign investment in Sino-foreign joint venture kindergartens is limited to less than 50%[107] - The company operates its kindergarten business through a Variable Interest Entity (VIE) structure to comply with PRC regulations[109] - The revenues from the VIE and its subsidiaries constituted almost all of the company's net revenues in 2018[116] - The company faces significant risks if the PRC government deems its contractual arrangements with the VIE non-compliant, which could lead to loss of control and economic benefits[115] - The Foreign Investment Law, effective January 1, 2020, may impact the company's corporate structure and operations[113] Operational Challenges - The company's brand recognition is crucial for success, and maintaining service quality is becoming increasingly challenging as it grows[48] - Negative incidents, such as the 2017 Incident involving a teacher's misconduct, have significantly harmed the company's reputation and operational results, leading to decreased enrollment and franchisee terminations[50] - The company relies heavily on student enrollment for revenue, and any decline in enrollment could adversely affect profitability and franchisee operations[54] - The franchise business model poses risks, as the company's revenue is partially dependent on the growth and performance of its franchisees[57] - The ability to recruit and retain qualified teachers is critical, and a shortage could adversely impact service quality and financial performance[61] - The company is in the process of converting certain directly operated kindergartens into for-profit schools, which may affect tuition fees and overall revenue[62] - Regulatory changes may limit the company's ability to raise tuition fees, potentially impacting financial results if not managed effectively[63] - The company plans to submit applications to designate its directly operated kindergartens as for-profit schools, but there is no guarantee of approval under the Amended Law for Promoting Private Education[64] - The company is in the process of applying for or renewing private school operation permits and registration certificates for certain kindergartens, which may affect its ability to collect fees[67] - The company faces risks related to health epidemics, which could lead to reduced attendance or temporary closures of kindergartens, impacting financial conditions and results of operations[73] - The company intends to continue opening new kindergartens under direct operation, which has been a significant revenue driver, but faces uncertainties and risks with this strategy[84] - The company may not be able to achieve expected benefits from recent and future acquisitions due to stringent regulations and integration challenges[80] - The company competes in a highly fragmented and competitive early childhood education industry, which may lead to pricing pressure and reduced operating margins[76] - The company is required to obtain various permits and licenses for its operations, and failure to do so may result in fines or operational disruptions[68] - The company may face challenges in continually upgrading course materials and developing new courses that meet market demands, which could affect student retention[74] - The company relies on its senior management team, and any disruption in their services could adversely impact business operations[82] - The company may not be able to fully control rental costs and lease agreements for school premises, which could affect its operational stability[77] - The company faces challenges in locating suitable premises for kindergartens due to regulatory restrictions and high capital expenditure requirements, with a typical preparation period of 6 to 10 months before revenue generation[85] - The company aims to expand its teaching facility network, increase student enrollment, and pursue strategic acquisitions, but may encounter difficulties in executing these growth strategies[86] - A significant portion of the company's revenues is derived from Beijing, and any adverse events or regulatory changes in this region could materially affect overall business performance[94] - The company has capacity constraints in its teaching facilities, which may hinder its ability to efficiently grow student enrollment and could lead to potential loss of students to competitors[95] - The company generates seasonal fluctuations in revenue, with lower tuition fee revenue expected in the first and third quarters due to holidays, which may impact stock price volatility[102] Legal and Compliance Risks - The company has limited liability insurance coverage, exposing it to potential significant costs and business disruptions from liability claims[100] - The company’s intellectual property rights are crucial for brand recognition, and unauthorized use could damage its reputation and business[96] - The company is exposed to potential liabilities from the educational products it sells, which could lead to costly claims and affect financial performance[98] - The company’s internal control over financial reporting was deemed effective as of December 31, 2018, but any failure in this area could harm investor confidence and market price[103] - The company must comply with PRC regulations regarding employee benefit plans, and failure to do so may result in penalties that could adversely affect financial conditions[105] - The PRC tax authorities may audit the company's VIE arrangements, leading to potential additional tax liabilities[121] - The company may lose access to material assets held by the VIE if it goes bankrupt or undergoes liquidation[122] - New PRC policies could restrict the ability of the VIE to operate kindergartens or make payments to related parties, adversely affecting financial performance[123] - The company's contractual arrangements may not be enforceable under PRC laws, potentially affecting control over its VIE and subsidiaries[124] - The Chinese economy has experienced uneven growth, with a slowing rate since 2012, which could adversely impact the company's business and operating results[127] - The PRC legal system presents uncertainties that may affect the company's ability to enforce contractual rights or defend against legal actions[129] - The classification as a PRC resident enterprise could result in a 25% tax on global income and a 10% withholding tax on dividends for non-resident shareholders[152] - SAT Bulletin 7 extends tax jurisdiction to indirect transfers of taxable assets, introducing challenges for foreign holding companies[153] - Indirect transfers may incur a 10% tax rate, with potential penalties for non-compliance under PRC tax laws[154] - The evolving nature of foreign exchange regulations may impose stricter review processes, affecting financial operations[148] - Regulatory uncertainties regarding employee stock incentive plans may limit the ability to adopt additional incentive plans under PRC law[150] Shareholder and Market Considerations - The trading price of the company's ADSs has fluctuated between $5.60 and $23.70 per ADS in 2018, indicating potential volatility in the market[165] - Ascendent Rainbow (Cayman) Limited holds approximately 29.9% of total outstanding ordinary shares, which could impact the market price of ADSs if substantial amounts are sold[170] - As of March 31, 2019, key shareholders collectively own about 68.2% of total issued ordinary shares, giving them significant influence over corporate matters[173] - The company does not expect to pay dividends in the foreseeable future, relying on price appreciation for returns on investment[174] - The dual-class share structure allows Class B shares to have ten votes per share, limiting the influence of Class A shareholders[171] - The SEC's inability to conduct inspections in China complicates compliance with U.S. regulations, potentially affecting financial statement filings[159] - The company may face challenges in retaining auditors in China due to ongoing regulatory conflicts, which could lead to non-compliance with the Exchange Act[163] - Future financial statements may be delayed if the SEC restarts administrative proceedings against Chinese accounting firms[164] - The company has anti-takeover provisions that could adversely affect the rights of Class A shareholders and discourage change-of-control transactions[176] - The company is incorporated under Cayman Islands law, which may limit shareholders' rights compared to U.S. companies[178] - Shareholders of the company have no general rights under Cayman Islands law to inspect corporate records or obtain shareholder lists[179] - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of reduced reporting requirements[188] - The company incurred significant legal, accounting, and other expenses as a public company, which were not present as a private entity[189] - The company is exempt from certain provisions applicable to U.S. domestic public companies, including quarterly reporting requirements[193] - The company intends to file an annual report on Form 20-F within four months of the end of each fiscal year[194] - There is no assurance that the company will not be classified as a passive foreign investment company (PFIC), which could have adverse tax consequences for U.S. holders[195] - The company may experience dilution of holdings due to the inability of ADS holders to participate in rights offerings[185] - The voting rights of holders of ADSs are limited, and they may not be able to directly vote on corporate matters[183] - The company may adopt home country practices in corporate governance that afford less protection to shareholders compared to U.S. standards[191] Operational Statistics - As of December 31, 2018, the company operated 101 directly operated and 247 franchise kindergartens, with total student enrollment at 23,627 and total teaching staff at 3,400[206] - The typical kindergarten occupies approximately 2,500 square meters of land with around 3,000 square meters of indoor floor area[204] - The company raised approximately US$90.1 million in net proceeds from its initial public offering on September 26, 2017[200] - Tuition fees at directly operated kindergartens are charged monthly, with variations based on local community spending power[222] - Play-and-learn centers charge students by sessions attended, with prepaid cards typically ranging from 24 to 240 sessions, and per-session prices varying from approximately RMB100 to RMB400[224] - The company has established stringent selection standards for franchisees, preferring candidates with substantial experience in preschool education[214] - The company provides course content, training, and support to franchisees, ensuring high service quality across its network[221] - The company operates a national customer service hotline and a mobile app for parents to provide feedback on services[218] - The company expects a typical kindergarten to take three to four years to ramp up student enrollment to near capacity after opening[205] - The company’s revenues from tuition fees are affected by seasonality, typically generating lower revenue in the first and third calendar quarters due to holidays[226]

RYB Education, Inc. (RYB) Q4 2018 Results Earnings Conference Call March 21, 2019 8:00 AM ET Company Participants Serena Xue - Manager, Investor Relations Yanlai Shi - Chief Executive Officer, Co-founder and Executive Director Ping Wei - Chief Financial Officer Conference Call Participants Sheng Zhong - Morgan Stanley Johnny Wong - Jefferies Jenny Tsai - BNP Paribas Operator Welcome ladies and gentlemen. Thank you for standing by for RYB Education Inc.’s Fourth Quarter and Full Year 2018 Earnings Conference ...