Ambow Education(US:AMBO)2021-04-07 16:00Financial Performance - Net revenues for Q4 2020 were RMB173.5 million (US$26.6 million), remaining flat compared to RMB173.3 million in Q4 2019[3] - Gross profit for Q4 2020 increased by 18.7% to RMB66.1 million (US$10.1 million), with a gross profit margin of 38.1%, up from 32.1% in Q4 2019[3] - Operating expenses for Q4 2020 decreased by 11.7% to RMB62.8 million (US$9.6 million) from RMB71.1 million in Q4 2019[3] - Operating income for Q4 2020 was RMB3.3 million (US$0.5 million), compared to an operating loss of RMB15.4 million in Q4 2019[4] - Net income attributable to ordinary shareholders for Q4 2020 was RMB11.0 million (US$1.7 million), or RMB0.23 (US$0.04) per share, compared to a net loss of RMB12.2 million in Q4 2019[4] - For fiscal year 2020, net revenues decreased by 8.9% to RMB532.0 million (US$81.5 million) from RMB583.9 million in 2019[5] - Gross profit for fiscal year 2020 decreased by 25.9% to RMB144.5 million (US$22.1 million), with a gross profit margin of 27.2%, down from 33.4% in 2019[5] - Operating loss for fiscal year 2020 was RMB124.6 million (US$19.1 million), compared to an operating loss of RMB97.7 million in 2019[6] - Total net revenues for the year ended December 31, 2020, were $81.53 million, a decrease from $83.91 million in 2019, representing a decline of approximately 2.85%[16] - Gross profit for the year was $22.14 million, down from $25.22 million in 2019, indicating a decrease of about 12.2%[16] - Operating loss for the year was $(19.09) million, compared to an operating loss of $(9.77) million in 2019, reflecting an increase in losses of approximately 95.5%[16] - Net loss attributable to ordinary shareholders for the year was $(9.61) million, a decrease from $(9.99) million in 2019, showing a reduction in losses of about 3.8%[16] - Total operating expenses for the year were $41.23 million, down from $41.87 million in 2019, indicating a decrease of about 1.5%[16] - The total comprehensive loss for the year was $(8.92) million, compared to $(102.39) million in 2019, indicating a significant reduction in comprehensive losses of approximately 91.3%[17] Cash and Equity - As of December 31, 2020, Ambow had cash resources of RMB282.5 million (US$43.3 million)[4] - Total liabilities and equity as of December 31, 2020, amounted to $160.88 million, compared to $102.08 million in 2019, representing an increase of approximately 57.4%[16] - As of December 31, 2020, total equity reached RMB 141,154 million, an increase from RMB 98,932 million as of September 30, 2020[19] - The company reported an accumulated deficit of RMB (3,419,146) million as of December 31, 2020, showing a decrease from RMB (3,430,122) million as of September 30, 2020[19] Shareholder Information - The weighted average shares used in calculating basic and diluted net loss per share were 44,372,326 for the year ended December 31, 2020, compared to 43,505,175 in 2019, an increase of approximately 2%[17] - The company issued 3,015,076 ordinary shares in a registered direct offering, raising RMB 35,578 million[19] - The total number of Class A shares outstanding increased to 41,923,276 as of December 31, 2020, from 38,895,700 as of September 30, 2020[19] Foreign Currency and Adjustments - The company reported a foreign currency translation adjustment of $0.96 million for the year, compared to a loss of $(2.92) million in 2019, reflecting an improvement in foreign exchange impact[17] - Foreign currency translation adjustments resulted in a loss of RMB (4,497) million as of December 31, 2020[19] - The company reported a foreign currency translation adjustment gain of RMB 2,403 million for the period ending June 30, 2020[19] Segment Performance - K-12 Schools segment generated net revenues of $44,680 thousand for the year ended December 31, 2020, down from $313,747 thousand in 2019[21] - CP&CE Programs segment reported net revenues of $36,849 thousand for the year ended December 31, 2020, compared to $270,162 thousand in 2019[21] - Total cost of revenues for the year ended December 31, 2020, was $59,386 thousand, slightly down from $388,894 thousand in 2019[21] - Gross profit for the total operations was $22,143 thousand for the year ended December 31, 2020, compared to $195,015 thousand in 2019[21] - K-12 Schools segment gross profit was $15,771 thousand for the year ended December 31, 2020, down from $116,683 thousand in 2019[21] - CP&CE Programs segment gross profit was $6,372 thousand for the year ended December 31, 2020, compared to $78,332 thousand in 2019[21] Future Outlook - The company is focusing on expanding its K-12 Schools and CP&CE Programs to improve future revenue streams[21]