Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Segment Information

v3.20.1
Segment Information
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Information

(17)

SEGMENT INFORMATION

The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. The Group uses the management approach to determine the operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker for making decisions, allocating resources and assessing the performance. There are no inter-segment revenue transactions and, therefore, revenues are only generated from external customers. The accounting policies of the segments are the same as those used by the Group.

Prior to Huanqiuyimeng acquisition on August 6, 2019, the Group’s operations were organized into one operating segment. As a result of the Huanqiuyimeng Acquisition as described in Note 1, the Group classified the operating segments for the year ended December 31, 2019 into (i) Overseas art study services (ii) Other educational services and (iii) K12 education assessment and other services. The Group had one operating segment which was K12 education assessment and other services for the nine months ended December 31, 2017 and for the year ended December 31, 2018.

Overseas art study services has been identified as one reportable segment. Other educational services and K12 education assessment and other services were aggregated as others because individually they do not exceed the 10% quantitative threshold.

Furthermore, the Group’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, operating cost and expenses, and income (loss) from operations. There were no separate segment assets and segment liabilities information provided to the Group’s Chief Executive Officer, as he does not use this information to allocate resources to or evaluate the performance of the segments.

The following table presents selected financial information relating to the Group’s segments:

 

For the year ended December 31, 2019:

 

Overseas art study

services

 

Others

 

Consolidated

 

 

RMB

 

RMB

 

RMB

Net revenues

 

82,376,727

 

15,393,440

97,770,167

Operating cost and expenses:

 

 

 

 

 

 

Cost of revenues

 

50,365,985

 

11,548,517

61,914,502

Research and development

 

 

11,817,255

 

11,817,255

Selling and marketing

 

27,859,200

 

6,253,012

34,112,212

Unallocated corporate expenses*

 

 

81,923,516

Impairment loss of intangible assets and other non-current assets

 

 

8,932,439

8,932,439

Provision for loan receivable and other receivables

 

 

17,430,825

17,430,825

Total operating cost and expenses

 

78,225,185

 

55,982,048

216,130,749

Other operating income, net

 

 

588,147

 

588,147

Income (loss) from continuing operations

 

4,151,542

 

(40,000,461)

(117,772,435)

 

For the year ended December 31, 2018:

 

Others

 

Consolidated

 

 

RMB

 

RMB

Net revenues

 

1,338,592

 

1,338,592

Operating cost and expenses:

 

 

 

 

Cost of revenues

 

4,251,451

 

4,251,451

Research and development

 

19,594,484

 

19,594,484

Selling and marketing

 

5,570,169

 

5,570,169

General and administrative

 

43,507,856

 

43,507,856

Total operating cost and expenses

 

72,923,960

 

72,923,960

Other operating income, net

 

3,793,418

 

3,793,418

Loss from continuing operations

 

(67,791,950)

 

(67,791,950)

 

For nine months ended December 31, 2017:

 

Others

 

Consolidated

 

 

RMB

 

RMB

Net revenues

 

5,185,822

 

5,185,822

Operating cost and expenses:

 

 

 

 

Cost of revenues

 

3,785,865

 

3,785,865

Research and development

 

15,415,780

 

15,415,780

Selling and marketing

 

4,539,473

 

4,539,473

General and administrative

 

40,132,709

 

40,132,709

Total operating cost and expenses

 

63,873,827

 

63,873,827

Other operating income, net

 

 

Loss from continuing operations

 

(58,688,005)

 

(58,688,005)

 

*Unallocated corporate expenses represent the general and administrative expenses for the year ended December 31, 2019.

 

Substantially all of the Group’s operations, customers and long-lived assets are located in the PRC. Consequently, no geographic information is presented.