UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

For the month of May 2022

 

Commission File Number: 001-36363

 

TARENA INTERNATIONAL, INC.

 

6/F, No. 1 Andingmenwai Street,

Litchi Tower, Chaoyang District,

Beijing 100011, People’s Republic of China

Tel: +86 10 6213-5687

 

1/F, Block A, Training Building,

65 Kejiyuan Road, Baiyang Jie Dao,

Economic Development District,

Hangzhou 310000, People’s Republic of China

 

(Address of principal executive offices)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

  Form 20-F x  Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  TARENA INTERNATIONAL, INC.
     
  By: /s/ Wing Kee Lau
  Name:  Wing Kee Lau
  Title: Chief Financial Officer
   
Date: May 17, 2022  

 

 

 

 

EXHIBIT INDEX

 

Exhibit 99.1 – Press Release

 

 

 

 

Exhibit 99.1

 

Tarena International, Inc. Announces the Results for the First Quarter of 2022

 

BEIJING, May 17, 2022 /PRNewswire/ -- Tarena International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of adult professional education and childhood & adolescent quality education services in China, today announced its unaudited financial results for the first quarter ended March 31, 2022.

 

First Quarter 2022 Highlights

 

·Net revenues increased by 16.8% year-over-year to RMB623.5 million (US$98.4 million), from RMB533.8 million in the same period of 2021.
·Net revenue from childhood & adolescent quality education business, which represented 56.8% of the total net revenues, increased by 27.2% year-over-year to RMB353.9 million (US$55.8 million), from RMB278.3 million in the same period of 2021.
·Net revenue from adult professional education business, which represented 43.2% of the total net revenues, increased by 5.5% year-over-year to RMB269.6 million (US$42.5 million), from RMB255.5 million in the same period of 2021.
·Gross profit increased by 43.6% year-over-year to RMB358.9 million (US$56.6 million), from RMB249.9 million in the same period of 2021.
·Gross profit margin increased by 10.8% points year-over-year to 57.6%, from 46.8% in the same period of 2021.
·Operating income was RMB28.6 million (US$4.5 million), compared to operating loss of RMB129.5 million in the same period of 2021. Operating margin improved year-over-year to 4.6% from -24.3% in the same period of 2021.
·Non-GAAP operating income, which excluded share-based compensation expenses, was RMB30.0 million (US$4.7 million), compared to non-GAAP operating loss of RMB122.6 million in the same period of 2021.
·Income tax expense was RMB5.4 million (US$0.9 million), compared to income tax benefit of RMB7.4 million in the same period of 2021.
·Net income was RMB27.1 million (US$4.3 million), compared to net loss of RMB121.9 million in the same period of 2021.
·Non-GAAP net income, which excluded share-based compensation expenses, was RMB28.5 million (US$4.5 million), compared to non-GAAP net loss of RMB115.0 million in the same period of 2021.
·Basic income per ordinary share was RMB0.48 (US$0.08), compared to loss per ordinary share of RMB2.17 in the first quarter of 2021. Diluted income per ordinary share was RMB0.47 (US$0.07), compared to loss per ordinary share of RMB2.17 in the first quarter of 2021.
·Cash, cash equivalents and time deposits, including current and non-current, and restricted cash totaled RMB416.4 million (US$65.7 million) as of March 31, 2022, compared to RMB430.4 million as of December 31, 2021.
·Net cash outflow from operating activities in the first quarter of 2022 was RMB18.9 million (US$3.0 million). Capital expenditures in the first quarter of 2022 were RMB10.6 million (US$1.7 million).
·Deferred revenue totaled RMB1,974.2 million (US$311.4 million) as of March 31, 2022, compared to RMB2,024.9 million as of December 31, 2021, representing a decrease of 2.5%.
·Total student enrollments in childhood & adolescent quality education business, defined as the total number of students who attended at least one paid lesson during that period or have deposit balances in their accounts at the end of that period, in the first quarter of 2022 reached 173,100, increased by 27.7%, compared to the student enrollments of 135,500 in the same period of 2021.
·Total number of learning centers in childhood & adolescent quality education decreased to 232 as of March 31, 2022, from 236 as of March 31, 2021.
·Total student enrollments in adult professional education business, defined as the total number of courses enrolled by students during that period, including multiple courses enrolled by the same student, in the first quarter of 2022 decreased by 5.5% year-over-year to 29,300.
·Total number of learning centers in adult professional education increased to 99 as of March 31, 2022, from 96 as of March 31, 2021.

 

 

 

 

Key Financial Results

 

     For the Three Months Ended
March 31,
   Variance   % of change 
     2021
Unaudited
   2022
Unaudited
   RMB     
     RMB   RMB         
         (in thousands, except for percentages) 
Net revenues     533,786    623,506    89,720    16.8 
Cost of revenues(a)     (283,843)   (264,588)   19,255    -6.8 
Gross profit     249,943    358,918    108,975    43.6 
Gross margin     46.8%   57.6%   10.8%     
Selling and marketing expenses(a)     (213,758)   (172,400)   41,358    -19.3 
General and administrative expenses(a)     (143,192)   (141,585)   1,607    -1.1 
Research and development expenses(a)     (22,468)   (16,342)   6,126    -27.3 
Total operating expenses     (379,418)   (330,327)   49,091    -12.9 
Operating income/(loss)     (129,475)   28,591    158,066    122.1 

 

Notes:

 

(a)Includes share-based compensation expenses.

 

“In the first quarter of 2022, we ended our long streak of quarterly net losses to achieve a net income. This marked the beginning of a healthy trajectory for our business. Our net income reached RMB27.1 million, operating income reached RMB28.6 million, and operating margin reached 4.6%. Even under the impact of seasonal factors of the Chinese New Year, our cash balance remained relatively well preserved at RMB416.4 million.

 

Such financial performance resulted from the effective implementation and execution of our sound long-term business strategy, with revenue growth and continued cost reduction. In the first quarter of 2022, our net revenues increased by 16.8% year-over-year, with the adult professional education business enjoying renewed year-over-year growth of 5.5%; the childhood & adolescent quality education business has seen positive year-over-year growth for seven consecutive quarters since the outbreak of the pandemic, with 27.2% year-over-year increase in the first quarter of 2022. On the other hand, in the first quarter of 2022, our cost of revenues and operating expenses decreased by 6.8% and 12.9% year-over-year respectively, thanks to continued effective cost management.” remarked Ms. Ying Sun, the Chief Executive Officer of Tarena.

 

“Our core competitive advantages are backed by the constant optimization and upgrading of our business procedures and processes, which include our Online-Merge-Offline (OMO) customer acquisition model and omni-channel service delivery capability. This ability was tested in the first quarter, when we kept the business running smoothly, even when a resurgence of COVID-19 cases emerged in certain areas in China.

 

Looking ahead, we will continue to focus on the core advantages of ‘adaptation of the Online-Merge-Offline (OMO) model to develop and deliver our comprehensive products’, ‘offline learning center operation capability’ and ‘customer acquisition capability’ to continually improve operational efficiency and maintain positive and healthy development.” concluded Ms. Ying Sun.

 

First Quarter 2022 Results

 

Net Revenues

 

Total net revenues increased by 16.8% to RMB623.5 million (US$98.4 million) in the first quarter of 2022, from RMB533.8 million in the same period of 2021.

 

Net revenue from childhood & adolescent quality education business increased by 27.2% to RMB353.9 million (US$55.8 million) in the first quarter of 2022, from RMB278.3 million in same period of 2021. The increase was primarily due to increase in student enrollments from 135,500 in the first quarter of 2021 to 173,100 in the same period of 2022.

 

Net revenue from adult professional education business increased by 5.5% to RMB269.6 million (US$42.5 million) in the first quarter of 2022, from RMB255.5 million in same period of 2021. The increase was mainly attributable to the increase in certificate revenue, partially offset by a drop in student enrollments from 31,000 in the first quarter of 2021 to 29,300 in the same period of 2022.

 

 

 

 

Cost of Revenues

 

Cost of revenues decreased by 6.8% to RMB264.6 million (US$41.7 million) in the first quarter of 2022, from RMB283.8 million in the same period of 2021. The decrease was primarily due to decline in personnel-related cost resulting from decrease in the accrual of performance-based bonus and decrease in depreciation expenses.

 

Gross Profit and Gross Margin

 

Gross profit increased by 43.6% to RMB358.9 million (US$56.6 million) in the first quarter of 2022, from RMB249.9 million in the same period of 2021. Gross margin, which is equal to gross profit divided by net revenues, was 57.6% in the first quarter of 2022, compared to 46.8% in the same period of 2021. The increase in gross margin was primarily attributable to the increase in net revenue and decrease in cost of revenues in both childhood & adolescent quality education and adult professional education businesses.

 

Operating Expenses

 

Total operating expenses decreased by 12.9% to RMB330.3 million (US$52.1 million) in the first quarter of 2022, from RMB379.4 million in the same period of 2021. Total non-GAAP operating expenses, which excluded share-based compensation expenses, decreased by 11.8% to RMB328.9 million (US$51.9 million) in the first quarter of 2022, from RMB372.7 million in the same period of 2021. Total share-based compensation expenses allocated to operating expenses decreased by 79.1% to RMB1.4 million (US$0.2 million) in the first quarter of 2022, from RMB6.7 million in the same period of 2021.

 

Selling and marketing expenses decreased by 19.3% to RMB172.4 million (US$27.2 million) in the first quarter of 2022, from RMB213.8 million in the same period of 2021. The decrease was mainly due to decrease in personnel-related cost resulting from the drop in the number of sales staffs and decline in advertising expenses in the first quarter of 2022 as compared to the same period of 2021.

 

General and administrative expenses decreased slightly by 1.1% to RMB141.6 million (US$22.3 million) in the first quarter of 2022, from RMB143.2 million in the same period of 2021.

 

Research and development expenses decreased by 27.3% to RMB16.3 million (US$2.6 million) in the first quarter of 2022, from RMB22.5 million in the same period of 2021. The decrease was mainly due to decrease in personnel-related expense in the first quarter of 2022.

 

Operating Income/(Loss)

 

Operating income was RMB28.6 million (US$4.5 million) in the first quarter of 2022, compared to operating loss of RMB129.5 million in the same period of 2021. Non-GAAP operating income, which excluded share-based compensation expenses, was RMB30.0 million (US$4.7 million) in the first quarter of 2022, compared to non-GAAP operating loss of RMB122.6 million in the same period of 2021.

 

Interest Income

 

Net interest income was RMB0.3 million (US$0.05 million) in the first quarter of 2022, compared to net interest income of RMB0.6 million in the same period of 2021.

 

Other Income

 

Other income was RMB3.7 million (US$0.6 million) in the first quarter of 2022, compared to RMB0.3 million in other income in the same period of 2021. The increase was primarily attributable to the gain realized in the disposal of a long-term investment.

 

Foreign Exchange Loss

 

Foreign exchange loss was RMB0.1 million (US$0.01 million) in the first quarter of 2022, compared to RMB0.7 million foreign exchange loss in the same period of 2021.

 

 

 

 

Income Tax (Expense)/Benefit

 

The Company recorded an income tax expense of RMB5.4 million (US$0.9 million) in the first quarter of 2022, compared to income tax benefit of RMB7.4 million in the same period of 2021. The increase in tax expense was mainly because the Company has made profits in the first quarter of 2022.

 

Net Income/(Loss)

 

As a result of the foregoing, net income was RMB27.1 million (US$4.3 million) in the first quarter of 2022, compared to net loss of RMB121.9 million in the same period of 2021. Non-GAAP net income, which excluded share-based compensation expenses, was RMB28.5 million (US$4.5 million) in the first quarter of 2022, compared to non-GAAP net loss of RMB115.0 million in the same period of 2021.

 

Basic and Diluted Income/(Loss) per ordinary share

 

Basic income per ordinary share was RMB0.48 (US$0.08) in the first quarter of 2022, compared to loss per ordinary share of RMB2.17 in the first quarter of 2021. Diluted income per ordinary share was RMB0.47 (US$0.07) in the first quarter of 2022, compared to loss per ordinary share of RMB2.17 in the first quarter of 2021. Non-GAAP basic income per ordinary share, which excluded share-based compensation expenses, was RMB0.50 (US$0.08) in the first quarter of 2022, compared to non-GAAP loss per ordinary share of RMB2.05 in the first quarter of 2021. Non-GAAP diluted income per ordinary share, which excluded share-based compensation expenses, was RMB0.49 (US$0.08) in the first quarter of 2022, compared to non-GAAP loss per ordinary share of RMB2.05 in the first quarter of 2021.

 

Cash Flow

 

Net cash outflow from operating activities in the first quarter of 2022 was RMB18.9 million (US$3.0 million). Capital expenditures in the first quarter of 2022 were RMB10.6 million (US$1.7 million).

 

Business Outlook

 

Based on the Company's current estimates, total net revenues for the second quarter of 2022 are expected to be in the range of RMB600 million and RMB630 million, which represent an increase of 3.1% to 8.2% as compared to the net revenues in the second quarter of 2021, after taking into consideration the seasonal fluctuation factor and the likely continued impact of the COVID-19.

 

This guidance is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions, which are subject to change, particularly as to the potential impact of COVID-19 on the economy in China and elsewhere in the world.

 

Exchange Rate Information

 

All translations made in the financial statements or elsewhere in this press release made from RMB into United States dollars (“US$”) are solely for convenience and calculated at the rate of US$1.00=RMB6.3393, representing the exchange rate as of March 31, 2022, set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rate, on March 31, 2022.

 

Conference Call

 

Company management will hold an earnings conference call and live webcast to discuss the Company's results at 8:00 AM on May 17, 2022, U.S. Eastern Time (8:00 PM on May 17, 2022, Beijing Time).

 

Dial-in details for the earnings conference call are as follows:

 

United States: +1-855-824-5644

Hong Kong, China: +852-3027-6500

Mainland China: 8009-880-563/400-821-0637

United Kingdom: 0800-026-1542

International: +1-646-722-4977

Passcode: 27103456#

 

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

 

 

 

 

A replay of the conference call may be accessed by phone at the following number until May 24, 2022:

 

United States: +1-646-982-0473

International: +61-2-8325-2405

Passcode: 520002317#

 

Additionally, a live and archived webcast of this call will be available on the Investor Relations section of Tarena's website at http://ir.tedu.cn.

 

About Tarena International, Inc.

 

Tarena is a leading provider of adult professional education and childhood and adolescent quality education services in China. Through its innovative education platform combining live distance instruction, classroom-based tutoring and online learning modules, Tarena offers adult professional education courses in IT and non-IT subjects. Its adult professional education courses provide students with practical skills to prepare them for jobs in industries with significant growth potential and strong hiring demand. Tarena also offers childhood and adolescent quality education programs, including computer coding and robotics programming courses, etc., targeting students aged between three and eighteen.

 

Safe Harbor Statement

 

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the business outlook, the quotations from management in this announcement, as well as the Company’s strategic and operational plans contain forward-looking statements. Tarena may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including any business outlook and statements about Tarena's beliefs and expectations, are forward-looking statements. Many factors, risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: the impact of the COVID-19 outbreak; Tarena's goals and strategies; its future business development, financial condition and results of operations; its ability to continue to attract students to enroll in its courses; its ability to continue to recruit, train and retain qualified instructors and teaching assistants; its ability to continually tailor its curriculum to market demand and enhance its courses to adequately and promptly respond to developments in the professional job market; its ability to maintain or enhance its brand recognition, its ability to maintain high job placement rate for its students, and its ability to maintain cooperative relationships with financing service providers for student loans.

 

Further information regarding these and other risks, uncertainties or factors is included in Tarena’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tarena does not undertake any obligation to update such information, except as required under applicable law.

 

About Non-GAAP Financial Measures

 

Beginning in the second quarter of 2016, the Company revised its non-GAAP financial measures to exclude gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact, in addition to its historical practice of excluding share-based compensation expenses for non-GAAP results.

 

To supplement Tarena’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Tarena's management uses non-GAAP measures of cost of revenues, operating expenses, operating income, net income, and basic and diluted net income per ordinary share, which are adjusted from results based on GAAP to exclude the share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact. These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. In addition, calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

 

 

 

 

Tarena’s management believes that excluding the share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact provides meaningful supplemental information regarding our performance and liquidity by excluding certain items identified as non-recurring and infrequent in nature, and non-cash charges. The amount of share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact are not built into the Company’s annual budgets and quarterly forecasts, which generally will be the basis for information Tarena provides to analysts and investors as guidance for future operating performance.

 

The non-GAAP financial measures are provided to enhance investors’ overall understanding of Tarena’s current financial performance and prospects for the future. A limitation of using non-GAAP cost of revenues, operating expenses, operating income (loss) and net income (loss), excluding the share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact is that the share-based compensation charge has been and will continue to be a recurring expense in the Company’s business for the foreseeable future, and gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact may recur in the future. In order to mitigate these limitations, the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.

 

For further information, please contact:

 

Investor Relations Contact

Tarena International, Inc.

Email: ir@tedu.cn

 

 

 

 

TARENA INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data and per share data)

 

     As of 
     December 31,   March 31,   March 31, 
     2021   2022   2022 
     Audited   Unaudited   Unaudited 
     RMB   RMB   USD 
ASSETS                 
Current assets:                 
Cash and cash equivalents     423,766    409,803    64,645 
Time deposits     6,257    6,236    984 
Restricted cash     255    150    24 
Accounts receivable, net of allowance for doubtful accounts     48,458    56,311    8,883 
Amounts due from related parties     839    962    152 
Prepaid expenses and other current assets     139,757    121,838    19,218 
Total current assets     619,332    595,300    93,906 
Time deposits-non current     123    224    35 
Accounts receivable, net of allowance for doubtful accounts-non current     90    188    30 
Amount due from related parties-non current     683    694    109 
Property and equipment, net     299,441    282,728    44,599 
Intangible assets, net     9,906    9,306    1,468 
Goodwill     52,782    52,782    8,326 
Right-of-use assets     495,936    425,346    67,097 
Long-term investments, net     46,449    44,445    7,011 
Deferred income tax assets     41,000    38,846    6,128 
Other non-current assets, net     76,040    77,298    12,194 
Total assets     1,641,782    1,527,157    240,903 
                  
LIABILITIES AND EQUITY                 
Current liabilities:                 
Short-term bank loans     30,000    32,000    5,048 
Accounts payable     8,914    6,950    1,096 
Amounts due to related parties     554    353    56 
Operating lease liabilities-current     239,937    217,993    34,388 
Income taxes payable     89,000    91,962    14,507 
Deferred revenue-current     2,008,078    1,958,480    308,943 
Accrued expenses and other current liabilities     563,603    538,536    84,951 
Total current liabilities     2,940,086    2,846,274    448,989 
Deferred revenue-non current     16,774    15,706    2,478 
Operating lease liabilities-non current     272,575    229,185    36,153 
Other non-current liabilities     4,767    4,688    739 
Total liabilities     3,234,202    3,095,853    488,359 
Commitments and contingencies     -    -    - 
Shareholders’ equity:                 
Class A ordinary shares     355    355    56 
Class B ordinary shares     74    74    12 
Treasury stock     (459,815)   (464,497)   (73,273)
Additional paid-in capital     1,347,205    1,348,593    212,735 
Accumulated other comprehensive income     48,699    48,648    7,674 
Accumulated deficit     (2,520,438)   (2,493,877)   (393,399)
Total deficit attributable to the shareholders of Tarena International, Inc.     (1,583,920)   (1,560,704)   (246,195)
Non-controlling interest     (8,500)   (7,992)   (1,261)
Total liabilities and equity     1,641,782    1,527,157    240,903 

 

 

 

 

TARENA INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(in thousands, except share data and per share data)

 

   For the Three Months Ended
March 31,
 
   2021   2022   2022 
   Unaudited   Unaudited   Unaudited 
   RMB   RMB   USD 
Net revenues   533,786    623,506    98,356 
Cost of revenues(a)   (283,843)   (264,588)   (41,738)
Gross profit   249,943    358,918    56,618 
Selling and marketing expenses(a)    (213,758)   (172,400)   (27,195)
General and administrative expenses(a)    (143,192)   (141,585)   (22,334)
Research and development expenses(a)    (22,468)   (16,342)   (2,579)
Operating income/(loss)   (129,475)   28,591    4,510 
Interest income   589    298    47 
Other income   343    3,663    578 
Foreign exchange loss   (689)   (85)   (13)
Income/(loss) before income taxes   (129,232)   32,467    5,122 
Income tax benefit/(expense)   7,352    (5,398)   (852)
Net income/(loss)   (121,880)   27,069    4,270 
Less: Net income/(loss) attributable to non-controlling interests   (1,039)   508    80 
Net income/(loss) attributable to Class A and Class B ordinary shareholders   (120,841)   26,561    4,190 
                
Net income/(loss) per Class A and Class B ordinary share:               
Basic   (2.17)   0.48    0.08 
Diluted   (2.17)   0.47    0.07 
Weighted average number of Class A and Class B ordinary shares outstanding:               
Basic   55,670,995    55,676,443    55,676,443 
Diluted   55,670,995    56,603,993    56,603,993 
                
Net income/(loss)   (121,880)   27,069    4,270 
Other comprehensive income/(loss)               
Foreign currency translation adjustment, net of nil income taxes   87    (51)   (8)
Comprehensive income/(loss)   (121,793)   27,018    4,262 

 

Notes:

 

(a)Includes share-based compensation expenses as follows:

 

   For the Three Months
 Ended March 31,
 
   2021
Unaudited
   2022
Unaudited
   2022
Unaudited
 
   RMB   RMB   USD 
Cost of revenues   185    11    2 
Selling and marketing expenses   1,033    144    23 
General and administrative expenses   5,310    958    151 
Research and development expenses   379    275    43 

 

 

 

 

TARENA INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except share data and per share data)

 

   For the Three Months
 Ended March 31,
 
   2021
Unaudited
   2022
Unaudited
   2022
Unaudited
 
   RMB   RMB   USD 
GAAP Cost of revenues   283,843    264,588    41,738 
Share-based compensation expense in cost of revenues   185    11    2 
Non-GAAP Cost of revenues   283,658    264,577    41,736 
                
GAAP Selling and marketing expenses   213,758    172,400    27,195 
Share-based compensation expense in selling and marketing expenses   1,033    144    23 
Non-GAAP Selling and marketing expenses   212,725    172,256    27,172 
                
GAAP General and administrative expenses   143,192    141,585    22,334 
Share-based compensation expense in general and administrative expenses   5,310    958    151 
Non-GAAP General and administrative expenses   137,882    140,627    22,183 
                
GAAP Research and development expenses   22,468    16,342    2,579 
Share-based compensation expense in research and development expenses   379    275    43 
Non-GAAP Research and development expenses   22,089    16,067    2,536 
                
Operating income/(loss)   (129,475)   28,591    4,510 
Share-based compensation expenses   6,907    1,388    219 
Non-GAAP Operating income/(loss)   (122,568)   29,979    4,729 
                
Net income/(loss)   (121,880)   27,069    4,270 
Share-based compensation expenses   6,907    1,388    219 
Non-GAAP Net income/(loss)   (114,973)   28,457    4,489 
Less: Net income/(loss) attributable to non-controlling interests   (1,039)   508    80 
Non-GAAP net income/(loss) attributable to Class A and Class B ordinary shareholders   (113,934)   27,949    4,409 
Non-GAAP net income/(loss) per Class A and Class B ordinary share(a)               
Basic   (2.05)   0.50    0.08 
Diluted   (2.05)   0.49    0.08 
Weighted average number of ordinary shares outstanding used in calculating Non-GAAP net loss per Class A and Class B ordinary share(a)               
Basic   55,670,995    55,676,443    55,676,443 
Diluted   55,670,995    56,603,993    56,603,993 

 

Notes:

 

(a) The Non-GAAP net income/(loss) per ordinary share is computed using Non-GAAP net income/(loss) attributable to ordinary shareholders and the same number of ordinary shares are used in GAAP basic and diluted net income/(loss) per ordinary share calculation.

 

(b) There was no tax impact of share-based compensation expenses for the first quarter of 2022 and 2021, respectively.