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

Segment Information

v3.22.1
Segment Information
 12 Months Ended
Dec. 31, 2021
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.  

Overseas art study services and Other educational services have been identified as two separate reportable segments, as the two operating segments have met the quantitative threshold of 10 percent to be considered reportable respectively. The K-12 education assessment and other services are reported as others because revenue from reportable segments of Overseas art study services and Other educational 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, 2021:

 

Overseas art study

services

 

Other educational services

 

Others

 

Consolidated

 

 

RMB

 

RMB

 

RMB

 

RMB

Net revenues

 

181,035,267

 

21,174,198

 

—

 

202,209,465

Operating cost and expenses:

 

 

 

 

 

 

 

 

Cost of revenues

 

81,964,815

 

14,154,713

 

1,294,387

 

97,413,915

Research and development

 

4,176,398

 

3,148,402

 

4,476,745

 

11,801,545

Selling and marketing

 

60,436,932

 

5,598,532

 

113,996

 

66,149,460

Unallocated corporate expenses*

 

—

 

—

 

—

 

93,256,046

Total operating cost and expenses

 

146,578,145

 

22,901,647

 

5,885,128

 

268,620,966

Other operating income, net

 

—

 

—

 

22,018

 

22,018

Income (Loss) from continuing operations

 

34,457,122

 

(1,727,449)

 

(5,863,110)

 

(66,389,483)

Other income, net

 

 

 

 

 

 

 

28,439,789

Loss from continuing operations before income taxes

 

 

 

 

 

 

 

(37,949,694)

 

 

 

For the year ended December 31, 2020:

 

Overseas art study

services

 

Other educational services

 

Others

 

Consolidated

 

 

RMB

 

RMB

 

RMB

 

RMB

Net revenues

 

138,703,946

 

20,025,679

 

3,437,922

 

162,167,547

Operating cost and expenses:

 

 

 

 

 

 

 

 

Cost of revenues

 

83,972,820

 

9,954,371

 

4,593,836

 

98,521,027

Research and development

 

1,834,597

 

150,622

 

6,847,269

 

8,832,488

Selling and marketing

 

49,804,055

 

3,266,430

 

429,566

 

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

 

13,371,423

 

20,895,401

 

269,976,145

Other operating income, net

 

167,016

 

94,340

 

68,868

 

330,224

Income (Loss)from continuing operations

 

3,259,490

 

6,748,596

 

(17,388,611)

 

(107,478,374)

Other loss, net

 

 

 

 

 

 

 

  (3,375,210)

Loss from continuing operations before income taxes

 

 

 

 

 

 

 

  (110,853,584)

 

For the year ended December 31, 2019:

 

Overseas art study

services

 

Other educational services

 

Others

 

Consolidated

 

 

RMB

 

RMB

 

RMB

 

RMB

Net revenues

 

82,376,727

 

9,045,411

 

6,348,029

 

97,770,167

Operating cost and expenses:

 

 

 

 

 

 

 

 

Cost of revenues

 

50,365,985

 

5,729,940

 

5,818,577

 

61,914,502

Research and development

 

—

 

—

 

11,817,255

 

11,817,255

Selling and marketing

 

27,859,200

 

1,217,014

 

5,035,998

 

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

 

6,946,954

 

49,035,094

 

216,130,749

Other operating income, net

 

—

 

—

 

588,147

 

588,147

Income (Loss) from continuing operations

 

4,151,542

 

2,098,457

 

(42,098,918)

 

(117,772,435)

Other loss, net

 

 

 

 

 

 

 

(23,489,180)

Loss from continuing operations before income taxes

 

 

 

 

 

 

 

(141,261,615)

 

*Unallocated corporate expenses represent the general and administrative expenses for the years ended December 31, 2019, 2020 and 2021.

 

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