Core Viewpoint - Sunlands Technology Group will report its fourth quarter and full year 2023 unaudited financial results on March 22, 2024, before U.S. markets open [1] Group 1: Financial Results Announcement - The financial results will be announced on March 22, 2024, before the market opens [1] - A conference call will be held at 7:00 a.m. U.S. Eastern Time on the same day [1] - Participants must register 30 minutes prior to the call to receive dial-in details [1] Group 2: Company Overview - Sunlands Technology Group is a leader in China's online post-secondary and professional education [3] - The company offers a variety of degree and diploma-oriented courses, as well as professional courses and educational content [3] - Sunlands utilizes a unique Learning Outcome Trees system for organizing educational content [3]

Sunlands Technology Group (NYSE:STG) Q3 2023 Earnings Conference Call November 22, 2023 6:30 AM ET Company Participants Yuhua Ye - Investor Relations Tongbo Liu - Chief Executive Officer Hangyu Li - Financial Controller Operator Ladies and gentlemen, thank you for standing by, and welcome to Sunlands' Third Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host today, Yuhua, Sunlands ...

Sunlands Technology Group (NYSE:STG) Q2 2023 Earnings Call Transcript August 16, 2023 3:30 AM ET Company Participants Yuhua Ye - Investor Relations Tongbo Liu - Chief Executive Officer Hangyu Li - Financial Controller Conference Call Participants Operator Ladies and gentlemen, thank you for standing by, and welcome to Sunlands Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I will now turn the call over to you ...

Exhibit 99.1 Sunlands Technology Group Announces Unaudited Second Quarter 2023 Financial Results Q2 net revenues decreased by 5.2% year-over-year Q2 gross billings (non-GAAP) decreased by 4.2% year-over-year Q2 net income reached RMB173.9 million BEIJING, August 18, 2023 -- Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education, today announced its unaudited financial results for the second quarter ended June 30, 2023. Second ...

Financial Data and Key Metrics Changes - In Q1 2023, the company's net revenue was RMB566.9 million, a decrease of 7.6% year-over-year [13][14] - Net income slightly increased to RMB180.1 million, compared to RMB179.4 million in Q1 2022, marking the eighth consecutive quarter of profitability with a net income margin of 31.8% [5][16] - Gross profit margin increased by 3.8 percentage points to a record high of 88% [6] Business Line Data and Key Metrics Changes - Post-secondary programs saw a decline in new student enrollments and course payings due to reduced marketing and increased competition [7] - Revenue from professional certification preparation and professional skills courses increased by over 15.9% year-over-year, while interest courses experienced a remarkable growth rate of 105.7% [8] Market Data and Key Metrics Changes - The youth unemployment rate for individuals aged 16 to 24 reached 20.4% in April 2023, driving demand for online education as job seekers look to enhance their skillsets [9][10] - The domestic economy is recovering, leading to an overall improvement in the employment situation, which may positively impact the online education sector [10] Company Strategy and Development Direction - The company is focused on diversifying course content, optimizing student acquisition processes, and maintaining cost-saving strategies to support long-term growth [6][11] - There is a commitment to delivering high-quality post-secondary courses and adapting educational offerings to meet evolving learner demands [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macro-uncertainties and evolving market dynamics affecting customer behavior, leading to a decrease in net revenues [11] - The company maintains a positive outlook for long-term growth prospects and plans to expand its portfolio of online course offerings [14][17] Other Important Information - As of March 31, 2023, the company had RMB721.8 million in cash and cash equivalents and a deferred revenue balance of RMB1,513.9 million [17] - Capital expenditures in Q1 2023 were RMB3.8 million, primarily for IT infrastructure and leasehold improvements [17] Q&A Session Summary Question: What is the outlook for the second quarter of 2023? - The company expects net revenues to be between RMB480 million to RMB500 million, representing a decrease of 9.9% to 13.5% year-over-year based on current market conditions [17]

[Form 6-K Filing](index=1&type=section&id=Form%206-K%20Filing) [Filing Information](index=1&type=section&id=Filing%20Information) This document is a Report of Foreign Issuer on Form 6-K filed by Sunlands Technology Group for April 2023, with the company registered in the People's Republic of China and filing annual reports under Form 20-F - Company: **Sunlands Technology Group**[1](index=1&type=chunk) - Filing Type: **Form 6-K** for April 2023[1](index=1&type=chunk) - Commission File Number: **001-38423**[1](index=1&type=chunk) - The registrant files annual reports under **Form 20-F**[1](index=1&type=chunk) [Exhibit Index](index=2&type=section&id=Exhibit%20Index) The report includes one exhibit, a press release, filed under Exhibit 99.1 - The filing contains **Exhibit 99.1**, which is a Press Release[2](index=2&type=chunk) [Signature](index=3&type=section&id=Signature) The report was signed and authorized on April 25, 2023, by Lu Lv, the Chief Financial Officer of Sunlands Technology Group - The report was duly signed on behalf of the registrant[3](index=3&type=chunk) - Date of Signature: **April 25, 2023**[4](index=4&type=chunk) - Signatory: **Lu Lv**, Chief Financial Officer[4](index=4&type=chunk)

VIE Structure and Risks - In 2020, 2021, and 2022, revenues generated by the VIEs accounted for 47.3%, 21.4%, and 46.3% of the Group's total net revenues, respectively[13]. - As of December 31, 2021, and 2022, the total assets of the VIEs represented 33.6% and 39.6% of the Group's consolidated total assets, respectively[13]. - The Group's corporate structure involves significant risks, as the VIE agreements have not been tested in a court of law in the PRC, leading to uncertainties regarding their legality and enforceability[13]. - The Group operates its online education service business in China through VIEs due to PRC legal restrictions on foreign ownership in value-added telecommunication services[16]. - Investors in the Group's ADSs do not hold direct equity interests in the VIEs due to current PRC laws and regulations[15]. - The Group's structure allows for consolidation of VIEs' operating results in financial statements under U.S. GAAP[14]. - The Group's contractual arrangements with VIEs may not be as effective as direct ownership, posing risks to operational control and revenue generation[133]. - There are significant uncertainties regarding the enforcement of VIE contractual arrangements, which could affect the Group's ability to consolidate financial results and conduct business[138]. - The shareholders of the VIEs may have conflicts of interest that could adversely affect the Group's ability to benefit from these arrangements[138]. - The PRC tax authorities may scrutinize the Group's VIE arrangements, potentially leading to additional tax liabilities and penalties that could negatively impact financial condition[139]. Financial Performance - Total net revenues for the year ended December 31, 2022, were RMB 2,323,101 thousand, a decrease from RMB 2,507,817 thousand in 2021, representing a decline of approximately 7.3%[33]. - The net income attributable to Sunlands Technology Group for 2022 was RMB 643,959 thousand, compared to RMB 219,056 thousand in 2021, indicating a significant increase of approximately 194.5%[34]. - The total assets as of December 31, 2022, amounted to RMB 2,276,070 thousand, a decrease from RMB 2,655,921 thousand in 2021, reflecting a decline of about 14.3%[40]. - The total liabilities as of December 31, 2022, were RMB 2,655,921 thousand, which includes RMB 1,690,946 thousand in deferred revenue[40]. - The company reported a net distribution to shareholders of 67.5% after accounting for a 25% statutory tax rate and a 10% withholding tax[31]. - The total costs and operating expenses for the year ended December 31, 2022, were RMB 1,706,159 thousand, a decrease from RMB 2,393,552 thousand in 2021, representing a reduction of approximately 28.7%[33]. - The Group's net revenues were RMB2,203.8 million, RMB2,507.8 million, and RMB2,323.1 million (US$336.8 million) for the years 2020, 2021, and 2022, respectively[60]. - The Group reported net losses of RMB431.0 million in 2020, but achieved net profits of RMB212.4 million and RMB643.0 million (US$93.2 million) in 2021 and 2022, respectively[61]. Regulatory Environment - Under current PRC laws, the Group is not required to undergo a cybersecurity review by the CAC to maintain its listing status on the NYSE[24]. - The Group has not been involved in any investigations or subject to a cybersecurity review initiated by the CAC as of the date of the annual report[25]. - The Overseas Listing Trial Measures require PRC domestic companies to file documents with the CSRC for future offerings, but the Group is not required to complete this filing to maintain its NYSE listing[27]. - The Group has not received any inquiry, notice, warning, sanctions, or regulatory objection from the CSRC as of the date of the annual report[27]. - The Group faces potential risks if deemed a "critical information infrastructure operator" under PRC cybersecurity laws, which could disrupt operations[25]. - The Group's business operations currently comply with PRC laws and regulations in all material aspects, although uncertainties remain regarding the interpretation and implementation of new data protection laws[100]. - The Group faces regulatory risks related to overseas listings and securities issuance, which could result in sanctions or operational limitations if compliance is not met[144]. - The interpretation and enforcement of new regulations regarding overseas listings remain unclear, posing additional risks to the Group's capital raising activities[144]. - The PRC legal system presents uncertainties that could adversely affect the Group's operations and the value of its ADSs, with potential for sudden changes in laws and regulations[147]. Market and Competitive Landscape - The Group faces intense competition in the online education market, which could lead to pricing pressure and loss of market share, adversely affecting gross billings and net revenues[93]. - The Group's ability to conduct sales and marketing activities cost-effectively is crucial for increasing student enrollments and maintaining financial health[62]. - The Group's brand recognition is vital for attracting new students, and failure to maintain it could adversely affect enrollment and financial results[88]. - The Group's sales and marketing strategies may not yield anticipated sales levels due to rapidly evolving market conditions[63]. - The Group's reliance on certain course offerings exposes it to concentration risks, particularly if there are significant reductions in the perceived value of these courses[90]. Operational Challenges - The Group's IT infrastructure is critical for operations, and any disruptions could harm student satisfaction and retention, impacting overall business performance[86]. - The Group's proprietary live streaming platform is essential for course delivery, but reliance on third-party vendors for live streaming services poses risks of service interruptions[82]. - The Group's operations may be disrupted if required to expand the authorized scope of its business license to cover online education services[69]. - The Group's teachers must obtain the necessary teaching licenses as required by PRC laws, which presents regulatory risks[71]. - The Group's teachers currently do not hold teaching licenses, which may lead to regulatory risks if future laws require such licenses[72]. Financial Obligations and Liabilities - The Group's student loan coverage ratio decreased significantly from 54.9% in 2020 to 5.1% in 2022, indicating a substantial reduction in the proportion of students utilizing loans[85]. - Interest payments made by the Group to credit providers dropped from RMB 83.3 million in 2020 to RMB 6.0 million (US$0.9 million) in 2022, reflecting a decline in financial obligations related to student loans[85]. - The Group's refund policy has been amended to offer more flexible options since June 2019, which may impact cash flow and financial condition[102]. - The Group made refund payments of RMB335.5 million, RMB282.5 million, and RMB172.2 million (US$25.0 million) in 2020, 2021, and 2022 respectively, primarily due to its tuition refund policy[102]. Corporate Governance and Shareholder Rights - The company may face difficulties in protecting shareholder interests due to its incorporation under Cayman Islands law, which has less developed securities laws compared to the U.S.[181]. - The company's triple-class share structure results in significant concentration of voting power, with Class C shares representing approximately 48.1% of total issued shares and 79.6% of voting power[185]. - The depositary's voting process limits ADS holders' ability to directly influence corporate matters, potentially affecting shareholder rights[183]. - The company's triple-class voting structure may prevent inclusion in certain stock market indices, adversely affecting trading price and liquidity of the ADSs[186]. Strategic Initiatives and Future Outlook - The Group intends to invest heavily in technology infrastructure and course offerings, which may lead to increased operating losses in the short term[61]. - The Group's growth strategy may strain its sales and marketing capacities, administrative infrastructure, and resources, potentially impacting future profitability[60]. - The Group's mission is to transform education through technology and innovation, making learning experiences enjoyable and rewarding[199]. - The Group's unique approach to education research and development includes the Learning Outcome Trees, which enhance teaching quality and course customization[201].

Financial Data and Key Metrics Changes - The company reported a net income of RMB181 million for Q4 2022, with a full-year net income of RMB643 million, more than tripling from 2021 [5][15] - Net revenues for Q4 2022 were RMB578.6 million, representing a 1.7% year-over-year decrease but exceeding guidance by 7.1% [12][16] - The net income margin expanded to 31.3% in Q4 2022 from 25.6% in Q4 2021 [12] Business Line Data and Key Metrics Changes - New student enrollments increased by 48.2% year-over-year and 19.5% quarter-over-quarter in Q4 2022 [5] - Enrollments for professional certification preparation and skills programs grew 82.7% year-over-year and 22.4% quarter-over-quarter in Q4 2022 [9] Market Data and Key Metrics Changes - The company noted a structural shift in the industry, with consumers becoming more conservative in discretionary spending due to macroeconomic uncertainties [6][7] - Despite challenges, there is a sustained demand for certification programs and skills courses, indicating a shift in market dynamics [8][9] Company Strategy and Development Direction - The company is focusing on diversifying course content and enhancing service quality while improving student acquisition efficiency [5][9] - There is a strategic emphasis on professional certification and skills programs, reflecting market demand and consumer interest [8][9] - The company plans to explore new monetization opportunities and diversify product offerings to enhance resilience against market challenges [9][10] Management Comments on Operating Environment and Future Outlook - Management acknowledged the persistent macro uncertainties but expressed confidence in the company's cost control and efficiency strategies to emerge stronger [10][12] - For Q1 2023, the company expects net revenues to be between RMB530 million and RMB550 million, representing a year-over-year decrease of 10.3% to 13.6% [16] Other Important Information - Operating expenses decreased by 15.1% year-over-year in Q4 2022, contributing to enhanced profitability [12] - Cash, cash equivalents, and restricted cash totaled RMB757.4 million as of December 31, 2022 [15] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [18]

Sunlands Technology Group (NYSE:STG) Q3 2022 Earnings Conference Call November 23, 2022 6:30 AM ET Company Participants Yuhua Ye - IR Representative Selena Lu Lv - CFO Conference Call Participants Operator Ladies and gentlemen, thank you for standing by, and welcome to Sunland's Third Quarter 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host today, Yuhua, Sunland's IR Representative. Pl ...

Financial Data and Key Metrics Changes - The company achieved a net income of RMB114.6 million, representing a fourfold increase year-over-year [5] - Net revenues decreased by 11.8% year-over-year to RMB555 million [15] - Operating expenses decreased by 32.4% year-over-year to RMB351.2 million [16] - Gross profit decreased by 12.9% to RMB463.8 million from RMB532.2 million [16] - Basic and diluted net income per share was RMB16.89 million in the second quarter of 2022 [17] Business Line Data and Key Metrics Changes - New student enrollments increased by 39.4% year-over-year [5] - Professional certification and skills programs grew by 82.9% year-over-year, driven by a 94.9% increase in new student enrollments [8] - Net revenues from professional courses increased by 13.3% year-over-year [8] Market Data and Key Metrics Changes - The company experienced a decrease in gross billings due to strategic reductions in marketing activities and increased competition [10] - The deferred revenue balance decreased to RMB1,998.1 million from RMB2,348.2 million as of December 31, 2021 [17] Company Strategy and Development Direction - The company emphasized operating efficiency and solid execution of business strategies to navigate external uncertainties [5] - Focus on optimizing product mix and expanding course portfolio to improve operational results [5] - Plans to develop diverse skill and interest courses while enhancing teaching and service quality [13] Management's Comments on Operating Environment and Future Outlook - Management noted a conservative approach in operations due to the complex microenvironment and emphasized cost reduction and efficiency improvement [7] - The company remains optimistic about long-term growth through broadening online course offerings and streamlining cost structure [14] - For Q3 2022, the company expects net revenue to be between RMB520 million to RMB540 million, reflecting a decrease of 9.3% to 12.6% year-over-year [18] Other Important Information - The company declared a special cash dividend following four consecutive quarters of profitability [13] - The Chinese government is supporting diverse forms of education, enhancing confidence in the industry [12] Q&A Session Summary - No specific questions or answers were recorded in the provided content. [19][20]