Credit: RISE

On March 17, China-based junior English Language Training (“ELT”) provider RISE announced its unaudited financial results for the fourth quarter and full-year ended December 31, 2020. 

Total revenues were RMB364.5 million (US$55.9 million) for the fourth quarter of 2020, compared with RMB320.0 million for the preceding quarter and RMB416.2 million for the fourth quarter of 2019. 

And for the full year, total revenues were RMB958.5 million (US$146.9 million), net loss attributable to RISE was RMB132.4 million (US$20.3 million) due to the impact of the COVID-19.

Net cash outflow from operating activities for the fourth quarter of 2020 was RMB108.5 million (US$16.6 million), compared with net cash inflow from operating activities of RMB103.2 million and RMB74.4 million for the preceding quarter and the same period of the prior year, respectively. 

The quarter-over-quarter decrease in cash generated from operating activities was mainly due to an increase in accumulated refunds of tuition fees paid out and a decrease in cash collection from renewed enrollments during the fourth quarter. The year-over-year decline in net cash flow from operating activities was primarily attributable to reduced cash collection on tuition fees due to the temporary closure of certain learning centers during the COVID-19 pandemic.

Selling and marketing expenses decreased by 5.0% quarter-over-quarter and by 17.8% year-over-year to RMB72.1 million (US$11.0 million) for the fourth quarter of 2020. The decrease was primarily due to the company’s disciplined investment in online and offline marketing activities. 

As the pandemic has been controlled, learning centers in Beijing and Shijiazhuang are expected to reopen by the end of March at a pace regulated by the government. And the revenues in the full year of 2021 are expected to be in the range of RMB1,420 million to RMB1,730 million.