Financial Performance - Net revenue for the year ended December 31, 2021, was RMB 2,386,520 thousand, representing an increase from RMB 1,897,883 thousand in 2020, which is a growth of approximately 25.7%[42] - The net loss for 2021 was RMB 475,780 thousand, a decrease from a net loss of RMB 771,193 thousand in 2020, indicating an improvement of about 38.3%[42] - Operating loss for 2021 was RMB 369,112 thousand, significantly reduced from RMB 806,380 thousand in 2020, showing a decrease of approximately 54.5%[42] - Research and development expenses for 2021 were RMB 106,098 thousand, slightly up from RMB 100,466 thousand in 2020, indicating a growth of about 5.1%[42] - The company reported a gross profit of RMB 1,185,101 thousand in 2021, up from RMB 831,041 thousand in 2020, representing an increase of approximately 42.6%[42] Assets and Liabilities - Total assets as of December 31, 2021, were RMB 1,641,782 thousand, compared to RMB 1,959,249 thousand as of December 31, 2020, reflecting a decrease of approximately 16.2%[40] - Total liabilities as of December 31, 2021, were RMB 3,234,202 thousand, a decrease from RMB 3,098,518 thousand in 2020, reflecting an increase of approximately 4.4%[40] - The company reported a total equity deficit attributable to shareholders of RMB (1,583,920) thousand as of December 31, 2021, compared to a deficit of RMB (1,132,002) thousand in 2020[47] - Deferred revenue, including non-current portion, was RMB 2,024,852 thousand as of December 31, 2021, a slight increase from RMB 1,998,198 thousand in 2020[47] Dividend and Capital Structure - As of December 31, 2021, the amounts restricted from being remitted as dividends totaled RMB1,523.2 million (approximately US239.0million)[34]−TarenaInternational,Inc.hasnotdeclaredorpaidanycashdividendssincethebeginningof2019anddoesnotplantodosointheforeseeablefuture[37]−Thecompany’sabilitytopaydividendsdependsontheretainedearningsofitsPRCsubsidiaries,whicharedeterminedaccordingtoPRCaccountingstandards[32]RegulatoryEnvironment−ThecompanymayberequiredtoobtainadditionallicensesorpermitsforitsoperationsinChinaduetoregulatoryuncertainties[29]−ThecompanyhasnotbeensubjecttoanycybersecurityreviewbytheCyberspaceAdministrationofChinaasofthedateofthereport[31]−ThePRCgovernmenthassignificantoversightanddiscretionoverbusinessoperations,whichmayleadtomaterialadversechangesinoperationsandthevalueofthecompany′sADSs[188]−TheuncertaintiesintheinterpretationandenforcementofPRClawsandregulationscouldlimitthelegalprotectionsavailabletothecompany[182]MarketConditionsandCompetition−TheprofessionaleducationservicesmarketinChinaishighlycompetitive,posingriskstomarketshareandfinancialresults[58]−EconomicconditionsinChinaandgloballymayadverselyaffectstudentenrollmentandspendingoneducationservices,particularlyinthecontextofaslowingeconomy[92]−Thecompanyfacescompetitioninthechildhoodandadolescentqualityeducationmarket,whichmayimpactstudentenrollmentrates[87]OperationalChallenges−TheCOVID−19pandemichasadverselyaffectedbusinessactivities,includingstudentrecruitmentandservicedeliverysince2020[58]−ThecompanyhasexperiencedtemporaryclosuresoflearningcentersduetoCOVID−19,impactingstudentrecruitmentandoperationalactivities[81]−Thecompanymayfacechallengesinmanagingitsexpansioneffectively,whichcouldharmitsfinancialconditionandoperationalresults[97]StudentRecruitmentandCourseOfferings−Theabilitytoattractstudentsiscriticalforbusinesssuccess,dependentoncoursequality,markettrends,andeffectivemarketingstrategies[73]−In2021,childhoodandadolescentroboticsprogrammingandcomputerprogrammingcoursescontributed27.93.2 million) as of December 31, 2021, which could impact financial condition if not collected timely[137] - The company may face potential risks from intellectual property claims that could divert financial and management resources[133] - Labor costs in China have increased, with the company employing 10,009 employees as of December 31, 2021, which may adversely affect profitability[148]
