Puxin announced Q2 2021 financial results and planned to dispose K-12 academic subject-based tutoring
2022-01-04 16:04:43

On December 29, 2021, Puxin Limited (NYSE: NSW) ("Puxin" or the "Company"), a private educational services provider in China, announced its unaudited financial result for the second quarter ended June 30, 2021. 

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Source:  PUXIN LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Net revenues were RMB674.1 million (US$104.4 million), an increase of 12.2% from RMB601.1 million in the second quarter of 2020. Net loss attributable to Puxin Limited was RMB1,378.0 million (US$213.4 million), compared to net income attributable to Puxin Limited of RMB36.6 million in the same period of 2020.

According to the financial report, net revenues of K-12 tutoring services including full-time arts education programs, increased by 22.4% to RMB543.2 million (US$84.1 million) from RMB443.7 million in the second quarter of 2020. The increase in Q2 2021 was primarily due to increased student enrollments. Net revenues of study-abroad programs decreased by 16.8% to RMB131.0 million (US$20.3 million) from RMB157.4 million in the second quarter of 2020. This was primarily due to a drop in student enrollments in the Q2 2021 affected by ongoing border control of most part of the world due to the COVID-19 pandemic.

On December 24, 2021, Puxin announced the plan to dispose of K-12 academic subject-based tutoring services at all learning centers across China. The company is in discussion with potential buyers of the proposed transaction. 

According to the press release, revenues from the Company's Academic AST Services accounted for around 59% of the total revenues in Q3 2021. In the long run, Puxin will not focus on providing K-12 Academic AST Services. Other educational services such as Study Abroad Education Programs and Full Time Arts Education Programs will be offered.

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