On January 12, Four Seasons Education (NYSE:FEDU), an education and training institution listed in the United States, released the third quarter of fiscal 2021 ending on November 30, 2020 (hereinafter referred to as fiscal year 2020 Q3 or fiscal year third quarter ) Unaudited financial report.
The financial report shows that in the third fiscal quarter of fiscal year 2020, Four Seasons Education achieved revenue of 67.6 million yuan, a year-on-year decrease of 103.5 million yuan in the same period of fiscal year 2019, a year-on-year drop of 34.69%; net loss of 8.8 million yuan, net profit for the same period in fiscal year 2019 It was 11.3 million yuan, a year-on-year change of -177.88%.
Under non-US GAAP, the adjusted net loss of Four Seasons Education in the third fiscal quarter of fiscal 2020 was 4.5 million yuan, and the adjusted net profit of fiscal year 2019 was 14.5 million yuan, a year-on-year change of -131.3%; Both the basic and diluted net loss of American Depositary Receipts are 0.19 yuan, and every two ADS represents one common share.
As of November 30, 2020, Four Seasons Education has 49 learning centers and the total number of students is 53,493. It is understood that as of November 30, 2019, the number of learning centers was 55, and the total number of students was 67,714, all of which decreased.
While the scale is declining, the cost of four-season education is also decreasing. Data show that its total cost for the third fiscal quarter of fiscal year 2020 was 42.5 million yuan, a decrease of 15.9% from the 50.5 million yuan in the same period in fiscal year 2019. Among them, general and administrative expenses decreased by 9.0% to 30.4 million yuan, and sales and marketing expenses decreased by 14.2% to 7.5 million yuan.
In the first nine months of fiscal 2021, the four-season education revenue was 210 million yuan, and the same period in fiscal year 2019 was 318 million yuan; the net loss was 16.4 million yuan, and the net profit for the same period in fiscal year 2019 was 35.8 million yuan. In addition, Four Seasons Education expects revenue for the fourth quarter of fiscal 2021 to be between 64 million yuan and 67.5 million yuan.
According to data, Four Seasons Education is operated by Shanghai Four Seasons Education and Training Co., Ltd., founded in 2007, and listed in the United States on November 8, 2017. The issue price is US$10. It has Four Seasons Education, Four Seasons Classroom, Wisdom Mathematics, and Vatican. Many business brands such as fine arts and Wupin education.
One year after its listing, Four Seasons Education adjusted the senior management team. In November 2019, Four Seasons Education announced that it would appoint the former CFO Zuo Yi as the company's CEO, and Tian Peiqing will continue to serve as the chairman after he transfers his CEO duties. At the same time, its vice president of finance Wang Xun will serve as the main person in charge of finance and accounting.
Affected by the release of the financial report, as of the close of US stocks on January 12, 2021, the share price of Four Seasons Education fell 10.54% in a single day to US$0.9930, and its market value fell to US$46.57 million, again falling below US$1. According to regulations, the stock price will be warned of the risk of delisting if the stock price is below 1 USD for more than 30 days.
Earlier, Tian Peiqing, chairman of Four Seasons Education, said in an interview with 36 krypton, “Expansion comes at a price. If the stalls are spread too much, it is not easy to put them away. Education should not be too utilitarian, and ensuring the quality of teaching is the top priority.”
Tian Peiqing also explained the 100 million yuan impairment of goodwill in the second quarter of fiscal year 2020, saying that there were three things that were not done well. "It's a case of the acquisition of infant training. The main reason is that the policy grasp, the pre-management, and market expansion have not been handled properly," Tian Peiqing said, "It is getting better now."