K-12 After-school Tutoring Provider PuXin Education Witnesses A ¥3.104B Revenue in 2019FY
2020-04-13 15:45:16

PuXin Education (NYSE: NEW), a China-based education company specializing in after school tutorial programs for K-12 stage, recently has released its annual report of 2019 fiscal year. During the reporting period, PuXin Education achieved a revenue of 3.104 billion yuan, an increase of 39.3% year-on-year; the gross profit was approximately 1.475 billion yuan, an increase of 49.7% year-on-year, and the gross profit margin was 47.5%, an increase of 2.3% from 2018; the net loss was approximately 519 million Yuan, a year-on-year decrease of 37.8%.

In terms of income, the financial report shows that the total net revenue for the company mainly comes from K-12 tutoring services and overseas tutoring services. Specifically, the net revenue of K-12 tutoring services in 2019 accounted for 62.6% of the total. The net revenue for the study-abroad services includes study-abroad test preparation and study-abroad consulting business, accounted for 37.4% of the total net revenue.

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Table 1.1. Pu Xin Education Education's revenue and cost of various businesses in 2019 (Source: Pu Xin Education Education’s official website)

In 2019, students population at Pu Xin Education reached 2.87 million, a year-on-year increase of 55.6%. The number of K-12 student was 2.799 million with an increase of 58.57% year-on-year, including 193,100 students taking online courses. The total number of students under study-abroad tutoring services is 72,200, a decrease of 10.53% compared with 2018.

During the reporting period, PuXin Education's cost of revenue was 1.629 billion yuan, a year-on-year increase of 31.1%. K-12 tutoring services accounted for 34% of the total cost of revenue, and study-abroad tutoring services accounted for 18.5%. According to the financial report, its income cost is mainly used to pay for teaching faculties’ salaries and benefits which account for 34.4% of the total.

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Table 1.2. Pu Xin Education's revenue and cost of various businesses in 2019 (Source: Pu Xin Education’s official website)

In terms of losses, PuXin Education's net loss was 519 million yuan in 2019 FY, a decrease of 37.8% year-on-year; the net profit attributable to the parent company was a loss of 519 million yuan.

As of December 31, 2019, the company has 446 directly-operated learning centers, witnessing a year-on-year increase of 15.54%.

Meanwhile, the financial report predicts that in the first quarter of 2020, the company's net income will be between 708 million yuan and about 739 million yuan, an increase of 15% to 20% year-on-year.

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