Puxin Limited Announces Third Quarter 2018 Unaudited Financial Results

BEIJING, Nov. 26, 2018 /PRNewswire/ -- Puxin Limited (NYSE: NEW) ("Puxin" or the "Company"), a successful consolidator of the after-school education industry in China, today announced its unaudited financial results for the third quarter ended September 30, 2018.

Third Quarter 2018 Financial and Operational Highlights

  • Net revenues were RMB669.7 million (US$97.5 million), representing an increase of 60.1% from the third quarter of 2017.
  • Operating loss was RMB61.1 million, a decrease of 25.0% from RMB81.4 million in the same period of the prior year.
  • Adjusted operating loss[1] was RMB41.8 million, a decrease of 38.6% from RMB68.1 million in the same period of the prior year.
  • Net loss attributable to Puxin Limited was RMB50.2 million (US$7.3 million), a decrease of 53.0% from RMB107.0 million in the third quarter of 2017.
  • Adjusted net loss attributable to Puxin Limited[2] decreased by 28.1% to RMB51.0 million from RMB70.9 million in the same period of the prior year.
  • Cash and cash equivalents were RMB684.2 million (US$99.6 million), compared with RMB164.7 million as of December 31, 2017.
  • Student enrollments increased by 48.8% to 544,253 from 365,810 in the third quarter of 2017.

"We delivered solid top line growth and narrowed our net loss during the quarter," commented, Yunlong Sha, Chairman and Chief Executive Officer of Puxin. "Net revenues grew in line with our expectations, increasing over 60% year-over-year as our net loss narrowed on both a sequential and year-over-year basis. Top line growth was driven by an organic increase in student enrolments and in part by revenue from Global Education which reached a historical high during the quarter, its third consecutive quarter of positive revenue growth following its acquisition in August last year. We also continued to invest in expanding our online service offerings and product mix to diversify revenue streams and create new growth drivers."

"We slowed the pace of acquisitions during the quarter in response to recently announced government policies. We support the government's new policies and believe that enhanced regulation will create a stronger and more sustainable market environment over the long term. We are confident in our strategies and believe we will be well positioned to benefit from a well-regulated market by leveraging our extensive experience in completing acquisitions and rapidly improving operations and management of acquired schools. Our ability to generate solid organic growth while integrating and restructuring a number of acquired schools demonstrates the effectiveness of Puxin Business System[3], which we use to analyse a school's growth potential and formulate plans to improve their performance."  

[1] Adjusted operating loss is a non-GAAP financial measure, which is defined as operating loss excluding share-based compensation expenses. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and non-GAAP results" elsewhere in this earnings release.

[2] Adjusted net loss attributable to Puxin Limited is a non-GAAP financial measure, which is defined as net loss attributable to Puxin Limited excluding share-based compensation expenses and loss/gain on changes in fair value of convertible notes, derivative liabilities and warrants. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and non-GAAP results" elsewhere in this earnings release.

[3] Puxin Business System ("PBS") is designed in-house by our core management team reflecting over 15 years of accumulated management experience in China's education industry. PBS incorporates the best practices of operating after-school learning centers in a standard, common collection of business processes and process improvement methodologies. It covers over 3,000 management processes and we use PBS tools to analyze schools' growth potential and formulate improvement plans.

Financial Results for the Third Quarter of 2018

Net Revenues

Net revenues increased by 60.1% to RMB669.7 million (US$97.5 million) from RMB418.4 million in the third quarter of 2017. This increase was primarily driven by increases in student enrollments. Student enrollments increased by 48.8% from 365,810 in the third quarter of 2017 to 544,253 in the same period of 2018.

On January 1, 2018, the Company adopted the modified retrospective method of FASB Accounting Standards Codification (ASC) Topic 606 ("Topic 606"), which relates to revenue from contracts with customers. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period.

Cost of Revenues

Cost of revenues increased by 44.7% to RMB374.6 million (US$54.5 million) from RMB258.8 million for the same period in 2017, primarily due to an increase in rental costs and teacher compensation. Non-GAAP cost of revenues, which excludes share-based compensation expenses, increased by 44.1% to RMB372.5 million from RMB258.4 million in the third quarter of fiscal year 2017.

Gross Profit and Gross Margin

Gross profit was RMB295.1 million (US$43.0 million), an increase of 84.9% from RMB159.6 million during the same period in 2017. Gross margin was 44.1%, compared with 38.1% for the same period in 2017.

Operating Expenses

Total operating expenses increased by 47.8% to RMB356.1 million (US$51.9 million) from RMB240.9 million in the third quarter of 2017.

Selling expenses increased by 68.7% to RMB237.3 million (US$34.6 million) from RMB140.7 million in the third quarter of 2017. Non-GAAP selling and marketing expenses, which excludes share-based compensation expenses, increased by 62.8% to RMB227.6 million from RMB139.8 million in the third quarter of fiscal year 2017. The increase was primarily due to increases in brand promotion expenses and selling and marketing staff compensation.

General and administrative expenses increased by 18.5% to RMB118.8 million (US$17.3 million) from RMB100.3 million during the same period of 2017. Non-GAAP general and administrative expenses, which excludes share-based compensation expenses, increased by 26.2% to RMB111.3 million from RMB88.3 million in the third quarter of fiscal year 2017.

Total share-based compensation expenses allocated to related operating costs and expenses increased by 44.9% to RMB19.3 million (US$2.8 million) from RMB13.3 million in the same period of 2017. The increase was mainly due to new grants of options to employees in 2018.

Operating Loss and Operating Margin

Operating loss decreased by 25.0% to RMB61.1 million (US$8.9 million) from RMB81.4 million in the third quarter of 2017.

Operating margin was (9.1)% in the third quarter of 2018, compared with (19.5)% for the same period in 2017.

Non-GAAP operating margin, which excludes share-based compensation expenses, was (6.2)%, compared with (16.3)% in the same period of the prior year.

Net Loss 

Net loss attributable to Puxin Limited decreased by 53.0% to RMB50.2 million (US$7.3 million), compared toRMB107.0 million during the third quarter of 2017. Basic and diluted net loss per ADS attributable to Puxin Limited were RMB0.62 (US$0.08), compared with basic and diluted net loss per ADS attributable to Puxin Limited of RMB2.14 during the same period last year.

Non-GAAP net loss attributable to Puxin Limited was RMB51.0 million (US$7.4 million) compared with RMB70.9 million during the same period of last year. Non-GAAP basic and diluted net loss per ADS attributable to Puxin Limited were RMB0.62 (US$0.08), compared with RMB1.42 during the same period of last year.

Cash and cash equivalents

As of September 30, 2018, the Company had total cash and cash equivalents of RMB684.2 million (US$99.6 million), compared with RMB164.7 million as of December 31, 2017.

Business Outlook

For the fourth quarter of 2018, based on the information available as of the date of this press release, the Company expects net revenues to be between RMB513.0 million and RMB535.0 million, which represents an increase of 20% to 25% year-over-year. These forecasts reflect the Company's current and preliminary views on the market and operational conditions, which are subject to change.

Conference Call Information

Puxin's management team will hold a conference call on November 26, 2018 at 8:00 AM U.S. Eastern Time (or 9:00 PM on the same day, Beijing/Hong Kong Time) following the quarterly results announcement. Participants may access the call by dialing the following numbers:

International:

+1-412-902-4272

China:

4001-201203

US:

+1-888-346-8982

Hong Kong:

+852-301-84992

Passcode:

Puxin

Please dial in 10 minutes before the call is scheduled to begin. When prompted, ask to be connected to the Puxin Limited Call. Participants will be required to state their name and company upon entering the call.

A replay of the conference call will be accessible two hours after the conclusion of the conference call through December 3, 2018 by dialing the following numbers:

International:

+1-412-317-0088

US:

+1-877-344-7529

Passcode:

10126429

A live webcast and archive of the conference call will be available on the Investor Relations section of Puxin's website at http://ir.pxjy.com/.

Exchange Rate

The Company's business is primarily conducted in China and all of the revenues are denominated in Renminbi ("RMB"). This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to USD are made at the rate of RMB6.8680 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on September 28, 2018. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on September 28, 2018, or at any other rate.

Use of Non-GAAP Financial Measures

To supplement the Company's financial results presented in accordance with U.S. GAAP, the Company also uses non-GAAP financial measures, including adjusted operating loss, adjusted net loss attributable to Puxin Limited, basic and adjusted diluted net loss per ADS attributable to Puxin Limited, as supplemental measures to review and assess the Company's operating performance. Adjusted operating loss is defined as operating loss excluding share-based compensation expenses; adjusted net loss attributable to Puxin Limited is defined as net loss attributable to Puxin Limited excluding share-based compensation expenses, loss/gain on changes in fair value of convertible notes, derivative liabilities and warrants and loss on extinguishment of convertible notes; and adjusted basic and diluted net loss per ADS attributable to Puxin Limited are defined as basic and diluted net loss per ADS attributable to Puxin Limited excluding share-based compensation expenses, loss/gain on changes in fair value of convertible notes, derivative liabilities and warrants and loss on extinguishment of convertible notes.

The Company believes that these non-GAAP financial measures provide useful information about the Company's operating results, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, investors should not consider them in isolation. In addition, calculations of this non-GAAP financial information may be different from calculations used by other companies, and therefore comparability may be limited.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating our performance.

For more information on this non-GAAP financial measure, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.

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. The Company 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 statements about the Company's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that 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: its goals and strategies, its ability to achieve and maintain profitability, its ability to attract and retain students to enroll in its courses, its ability to effectively manage its business expansion and successfully integrate businesses it acquired, its ability to identify or pursue targets for acquisitions, its ability to compete effectively against its competitors, its ability to improve the content of its existing courses or to develop new courses, and relevant government policies and regulations relating to the Company's corporate structure, business and industry. Further information regarding these and other risks is included in the Company'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 the Company does not undertake any obligation to update such information, except as required under applicable law.

About Puxin Limited

Puxin Limited ("Puxin" or the "Company") is a successful consolidator of the after-school education industry in China. Puxin has a strong acquisition and integration expertise to effectively improve education quality and operational performance of acquired schools. Puxin offers a full spectrum of K-12 and study-abroad tutoring programs designed to help students achieve academic excellence, as well as prepare for admission tests and applications for top schools, universities and graduate programs in China and other countries. The Company has developed a business model effectively combining strategic acquisitions and organic growth achieved through successful post-acquisition integration, which has differentiated the Company from other after-school education service providers in China. For more information, please visit http://www.pxjy.com/.

Contacts

Puxin Limited

Phone: +86-10-6269-8930
E-mail: ir@pxjy.com

Christensen

In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com   

In US  
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com

 

PUXIN LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

(In thousands of RMB and USD, except for share, per share and per ADS data)

             
   

As of December 31, 

 

As of September 30, 

   
   

2017

 

2018

 

2018

   

RMB

 

RMB

 

USD

 

ASSETS

         
 

Current assets

         
 

  Cash and cash equivalents

164,684

 

684,184

 

99,619

 

  Inventories

10,408

 

7,775

 

1,132

 

  Prepaid expenses and other current assets

132,473

 

144,633

 

21,059

 

  Amounts due from related parties

113

 

-

 

-

 

Total current assets

307,678

 

836,592

 

121,810

             
 

Non-current assets

         
 

  Restricted cash

24,478

 

49,619

 

7,225

 

  Property, plant and equipment, net

221,212

 

248,406

 

36,169

 

  Intangible assets

243,927

 

220,795

 

32,148

 

  Goodwill

1,152,913

 

1,171,431

 

170,565

 

  Deferred tax assets

3,012

 

7,213

 

1,050

 

  Rental deposit

55,173

 

60,615

 

8,826

 

TOTAL ASSETS

2,008,393

 

2,594,671

 

377,793

             
 

LIABILITIES

         
 

Current liabilities

         
 

  Accrued expenses and other current liabilities (including accrued expenses
    and other current liabilities of the consolidated VIE without recourse to
    the Group of RMB345,100 and RMB396,015as of December 31, 2017
    and September 30, 2018, respectively)

350,446

 

448,696

 

65,332

 

  Income tax payable of the consolidated VIE without recourse 
     to the Group

10,022

 

12,828

 

1,868

 

  Deferred revenue, current portion (including deferred revenue, current
    portion of the consolidated VIE without recourse to the Group of
    RMB906,480 and RMB771,537 as of December 31, 2017 and
    September 30, 2018, respectively)

906,480

 

783,980

 

114,150

 

  Amounts due to related parties (including amounts due to related parties
    of the consolidated VIE without recourse to the Group of RMB3,836 and
    RMB31,699 as of December 31, 2017 and September 30, 2018, respectively)

3,836

 

35,133

 

5,115

 

  Bank borrowing of the consolidated VIE without recourse to the Group 

-

 

37,773

 

5,500

 

  Promissory notes, current portion of the consolidated VIE without 
    recourse to the Group

-

 

193,400

 

28,160

 

Total current liabilities

1,270,784

 

1,511,810

 

220,125

             
 

Non-current liabilities

         
 

  Deferred revenue, non-current portion of the consolidated VIE without 
    recourse to the Group

128,890

 

94,104

 

13,702

 

  Deferred tax liabilities of the consolidated VIE without recourse 
    to the Group

77,580

 

71,591

 

10,424

 

  Franchise deposits of the consolidated VIE without recourse 
    to the Group

3,856

 

1,591

 

232

 

  Convertible notes (including convertible notes of the consolidated VIE
    without recourse to the Group of RMB150,200 and RMB nil as of
    December 31, 2017 and September 30, 2018, respectively)

499,192

 

-

 

-

 

  Promissory note, non-current portion (including promissory note,
    non-current portion of the consolidated VIE without recourse to the
    Group of RMB nil and RMB nil as of December 31, 2017 and
    September 30, 2018, respectively)

162,658

 

171,700

 

25,000

 

  Derivative liabilities (including derivative liabilities of the consolidated
    VIE without recourse to the Group of RMB nil and RMB nil as of
    December 31, 2017 and September 30, 2018, respectively)

18,218

 

25,412

 

3,700

 

  Warrant (including warrant of the consolidated 
    VIE without recourse to the Group of RMB nil and RMB nil as of
    December 31, 2017 and September 30, 2018, respectively)

-

 

3,100

 

451

 

TOTAL LIABILITIES

2,161,178

 

1,879,308

 

273,634

             
 

Commitments and Contingencies

         
 

MEZZANINE EQUITY

         
 

  Convertible redeemable preferred shares

120,000

 

-

 

-

             
 

SHAREHOLDERS' DEFICIT

         
 

  Ordinary shares (par value of USD0.00005 per share;
  100,000,000 and 1,000,000,000 shares authorized,
  100,000,000 and 188,627,228 shares issued and
  100,000,000 and 163,323,504 shares outstanding 
  as of December 31, 2017 and September 30, 2018, respectively)

34

 

62

 

9

 

  Additional paid-in capital

391,099

 

1,914,136

 

278,704

 

  Accumulated other comprehensive income

15,718

 

26,125

 

3,804

 

  Accumulated deficit

(679,613)

 

(1,224,968)

 

(178,359)

 

Total Puxin Limited shareholders' deficit

(272,762)

 

715,355

 

104,158

 

Non-controlling interest

(23)

 

8

 

1

 

TOTAL SHAREHOLDERS' DEFICIT

(272,785)

 

715,363

 

104,159

 

TOTAL LIABILITIES, MEZZANINE EQUITY AND TOTAL 
  SHAREHOLDERS' DEFICIT

2,008,393

 

2,594,671

 

377,793

 

 

 

 

PUXIN LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(In thousands of RMB and USD, except for share, per share and per ADS data)

             
   

For the three months ended September 30,

           
   

2017

 

2018

 

2018

   

RMB

 

RMB

 

USD

             
 

Net revenues

418,360

 

669,664

 

97,505

 

Cost of revenues (including share-based compensation expenses of
  RMB406 and RMB2,153 for the three months ended September 30, 2017 and
  2018, respectively)

258,806

 

374,614

 

54,545

 

Gross profit

159,554

 

295,050

 

42,960

 

Operating expenses:

         
 

  Selling expenses (including share-based compensation expenses of
    RMB881 and RMB9,646 for the three months ended September 30, 2017
    and 2018, respectively)

140,677

 

237,291

 

34,550

 

  General and administrative expenses (including share-based
    compensation expenses of RMB12,021 and RMB7,486 for the
    three months ended September 30, 2017 and 2018, respectively) 

100,270

 

118,834

 

17,302

 

Total operating expenses

240,947

 

356,125

 

51,852

 

Operating loss

(81,393)

 

(61,075)

 

(8,892)

 

Interest expense

2,150

 

9,827

 

1,431

 

Interest income

53

 

1,418

 

206

 

Loss (Gain) on changes in fair value of convertible notes, derivative  
  liabilities and warrants

22,795

 

(20,022)

 

(2,915)

 

Losson disposal of subsidiary

-

 

11

 

2

 

Loss before income taxes

(106,285)

 

(49,473)

 

(7,204)

 

Income tax expenses

656

 

746

 

109

 

Net loss

(106,941)

 

(50,219)

 

(7,313)

 

Less: Net loss attributable to non-controlling interest

28

 

18

 

3

 

Net loss attributable to Puxin Limited

(106,969)

 

(50,237)

 

(7,316)

 

Net loss per share attributable to Puxin Limited

         
 

  Basic and diluted

(1.07)

 

(0.31)

 

(0.04)

 

Net loss per ADS attributable to Puxin Limited

         
 

  Basic and diluted

(2.14)

 

(0.62)

 

(0.08)

 

Weighted average shares used in calculating basic and diluted net loss 
  per share

99,849,546

 

163,323,504

 

163,323,504

             
 

Note: Each ADS represents two ordinary shares.

         

 

 

PUXIN LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 

(In thousands of RMB and USD)

             
   

For the three months ended  September 30,

             
   

2017

 

2018

 

2018

   

RMB

 

RMB

 

USD

             
             
 

Net loss

(106,941)

 

(50,219)

 

(7,313)

 

Other comprehensive loss, net of tax:

         
 

  Change in cumulative foreign currency translation adjustments

-

 

(4,308)

 

(627)

 

Total comprehensive loss

(106,941)

 

(54,527)

 

(7,940)

 

Less: comprehensive income attributable to non-controlling interest

28

 

18

 

3

 

Total comprehensive loss attributable to Puxin Limited

(106,969)

 

(54,545)

 

(7,943)

 

 

PUXIN LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(In thousands of RMB and USD, except for share, per share and per ADS data)

             
   

For the nine months ended September 30,

           
   

2017

 

2018

 

2018

   

RMB

 

RMB

 

USD

             
 

Net revenues

854,610

 

1,696,676

 

247,040

 

Cost of revenues (including share-based compensation expenses of
  RMB747 and RMB5,405 for the nine months ended September 30, 2017 and
  2018, respectively)

520,416

 

936,654

 

136,379

 

Gross profit

334,194

 

760,022

 

110,661

 

Operating expenses:

         
 

  Selling expenses (including share-based compensation expenses of
    RMB2,177 and RMB20,293 for the nine months ended September 30, 2017
    and 2018, respectively)

268,283

 

611,963

 

89,103

 

  General and administrative expenses (including share-based
    compensation expenses of RMB31,779 and RMB304,057 for the
    nine months ended September 30, 2017 and 2018, respectively)

220,216

 

620,954

 

90,411

 

Total operating expenses

488,499

 

1,232,917

 

179,514

 

Operating loss

(154,305)

 

(472,895)

 

(68,853)

 

Interest expense

2,150

 

27,473

 

4,000

 

Interest income

509

 

1,702

 

247

 

Loss on changes in fair value of convertible notes, derivative  
  liabilities and warrants

22,795

 

96,128

 

13,997

 

Loss on extinguishment of convertible notes

-

 

900

 

131

 

Gain on disposal of subsidiary

-

 

82

 

12

 

Loss before income taxes

(178,741)

 

(595,612)

 

(86,722)

 

Income tax expenses (benefits)

1,103

 

(1,953)

 

(284)

 

Net loss

(179,844)

 

(593,659)

 

(86,438)

 

Less: Net loss attributable to non-controlling interest

43

 

12

 

2

 

Net loss attributable to Puxin Limited

(179,887)

 

(593,671)

 

(86,440)

 

Net loss per share attributable to Puxin Limited

         
 

  Basic and diluted

(1.81)

 

(4.32)

 

(0.63)

 

Net loss per ADS attributable to Puxin Limited

         
 

  Basic and diluted

(3.62)

 

(8.64)

 

(1.26)

 

Weighted average shares used in calculating basic and diluted net loss 
  per share

99,648,940

 

137,560,036

 

137,560,036

             
 

Note: Each ADS represents two ordinary shares.

         

 

 

PUXIN LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 

(In thousands of RMB and USD)

             
   

For the nine months ended  September 30,

             
   

2017

 

2018

 

2018

   

RMB

 

RMB

 

USD

             
             
 

Net loss

(179,844)

 

(593,659)

 

(86,438)

 

Other comprehensive income, net of tax:

         
 

  Change in cumulative foreign currency translation adjustments

-

 

10,407

 

1,515

 

Total comprehensive loss

(179,844)

 

(583,252)

 

(84,923)

 

Less: comprehensive income attributable to non-controlling interest

43

 

12

 

2

 

Total comprehensive loss attributable to Puxin Limited

(179,887)

 

(583,264)

 

(84,925)

 

 

PUXIN LIMITED

 

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

 

(In thousands of RMB and USD, except for share, per share and per ADS data)

   
   

For the three months ended  September 30,

             
   

2017

 

2018

 

2018

   

RMB

 

RMB

 

USD

             
 

Operating loss

(81,393)

 

(61,075)

 

(8,892)

 

Add: Share-based compensation expenses

13,308

 

19,285

 

2,808

 

Adjusted operating loss

(68,085)

 

(41,790)

 

(6,084)

             
 

Net loss attributable to Puxin Limited

(106,969)

 

(50,237)

 

(7,316)

 

Add: Share-based compensation expense

13,308

 

19,285

 

2,808

 

Add: Loss on changes in fair value of convertible notes, derivative 
  liabilities and warrants

22,795

 

(20,022)

 

(2,915)

 

Adjusted net loss attributable to Puxin Limited

(70,866)

 

(50,974)

 

(7,423)

             
 

Net loss per ADS attributable to Puxin Limited 

         
 

  - Basic and diluted

(2.14)

 

(0.62)

 

(0.08)

 

Adjusted net loss per ADS attributable to Puxin Limited 

         
 

  - Basic and diluted

(1.42)

 

(0.62)

 

(0.08)

             
 

Weighted average shares used in calculating basic and diluted
  net loss per share

99,849,546

 

163,323,504

 

163,323,504

             
 

Note: Each ADS represents two ordinary shares.

 

 

PUXIN LIMITED

 

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

 

(In thousands of RMB and USD, except for share, per share and per ADS data)

   
   

For the nine months ended  September 30,

             
   

2017

 

2018

 

2018

   

RMB

 

RMB

 

USD

             
 

Operating loss

(154,305)

 

(472,895)

 

(68,853)

 

Add: Share-based compensation expenses

34,703

 

329,755

 

48,013

 

Adjusted operating loss

(119,602)

 

(143,140)

 

(20,840)

             
 

Net loss attributable to Puxin Limited

(179,887)

 

(593,671)

 

(86,440)

 

Add: Share-based compensation expense

34,703

 

329,755

 

48,013

 

Add: Loss on changes in fair value of convertible notes, derivative 
  liabilities and warrants

22,795

 

96,128

 

13,997

 

Add: Loss on extinguishment of convertible notes

-

 

900

 

131

 

Adjusted net loss attributable to Puxin Limited

(122,389)

 

(166,888)

 

(24,299)

             
 

Net loss per ADS attributable to Puxin Limited 

         
 

  - Basic and diluted

(3.62)

 

(8.64)

 

(1.26)

 

Adjusted net loss per ADS attributable to Puxin Limited 

         
 

  - Basic and diluted

(2.46)

 

(2.43)

 

(0.35)

             
 

Weighted average shares used in calculating basic and diluted
  net loss per share

99,648,940

 

137,560,036

 

137,560,036

             
 

Note: Each ADS represents two ordinary shares.

 

SOURCE Puxin Limited