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

Segment Information

v3.21.1
Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information

(16)

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 the 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) K-12 education assessment and other services. The Group had one operating segment which was K-12 education assessment and other services for the year ended December 31, 2018.

Overseas art study services has been identified as one reportable segment. Other educational services and K-12 education assessment and other services are aggregated as others because revenue from reportable segment of Overseas art study services exceeds 75 percent of the total consolidated net revenues and management determines that no further reportable segments need to be identified and disclosed. 

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 are 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 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, 2020:

 

Overseas art study

services

 

Others

 

Consolidated

 

 

RMB

 

RMB

 

RMB

Net revenues

 

138,703,946

 

23,463,601

 

162,167,547

Operating cost and expenses:

 

 

 

 

 

 

Cost of revenues

 

83,972,820

 

14,548,207

 

98,521,027

Research and development

 

1,834,597

 

6,997,891

 

8,832,488

Selling and marketing

 

49,804,055

 

3,695,996

 

53,500,051

Unallocated corporate expenses*

 

—

 

—

 

100,097,849

Impairment loss of intangible assets and other non-current assets

 

—

 

3,120,425

 

3,120,425

Provision for loan receivable and other receivables

 

—

 

5,904,305

 

5,904,305

Total operating cost and expenses

 

135,611,472

 

34,266,824

 

269,976,145

Other operating income, net

 

167,016

 

163,208

 

330,224

Income (Loss)from continuing operations

 

3,259,490

 

(10,640,015)

 

(107,478,374)

 

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)

 

*Unallocated corporate expenses represent the general and administrative expenses for the years ended December 31, 2019 and 2020.

 

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