China-based education company Genshuixue(NYSE: GSX) announced last week its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020. 

In Q4, the company’s revenues totaled over RMB2.2 billion, an increase of 136.5% year-on-year. As for the operating expenses, the selling expenses were RMB 1.798 billion, compared with RMB442 million in 2019. 

The research and development expenses increased 229.0% to RMB274.7 million from RMB83.5 million in the same period last year. The soaring number was primarily due to an increase in the number of educational content development professionals and technology development personnel, as well as an increase in compensation for such staff.

Besides, GSX saw a net loss of RMB627 million in Q4, compared with a net income of RMB174.5 million in the same period of 2019. According to the company, it was primarily due to the higher marketing expenses to expand its user base and enhance its brands.

And looking at the whole fiscal year, net revenues were RMB7.125 billion, an increase of 236.9% year-on-year, while the net loss was RMB1.393 million, compared with net income of RMB226.6 million in 2019.

In the 2020 fiscal year,GSX’s net operating cash inflow was RMB603.3 million, compared with RMB1.285 billion in 2019. The company stated that the decrease was primarily due to higher marketing expenses paid to improve the market share and brand awareness, an increase in compensation paid to fast-growing staff, payment for independent internal review, and increased expenditures paid to support our rapid growth of students and daily operation activities.

According to the report, total net revenues for the first quarter of 2021 are expected to be between RMB1.82 billion and RMB1.86 billion, representing an increase of 40% to 43% on a year-on-year basis.