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

Segment Information

v3.23.1
Segment Information
12 Months Ended
Dec. 31, 2022
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.
For the years ended December 31, 2020, 2021 and 2022, the Group classified the operating segments 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, 2022:
  
Overseas art study

services
 
  
Other educational
services
 
  
Others
 
  
Consolidated
 
 
  
RMB
 
  
RMB
 
  
RMB
 
  
RMB
 
Net revenues
     181,833,076        24,657,609        330,189        206,820,874  
Operating cost and expenses:
                                   
Cost of revenues
     92,389,567        11,552,359        373,930        104,315,856  
Research and development
     5,903,055        —          887,736        6,790,791  
Selling and marketing
     69,398,473        5,736,053        131,200        75,265,726  
Unallocated corporate expenses*
    
 
 
      
 
 
      
 
 
       77,051,580  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total operating cost and expenses
  
 
167,691,095
 
  
 
17,288,412
 
  
 
1,392,866
 
  
 
263,423,953
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Other operating income, net
    
 
 
      
 
 
       16,515        16,515  
                      
 
 
    
 
 
 
Income (Loss) from operations
  
 
14,141,981
 
  
 
7,369,197
 
  
 
(1,046,162
)
 
  
 
(56,586,564
)
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Unallocated other income, net
                              2,070,949  
                             
 
 
 
Loss before income taxes
                           
 
(54,515,615
)
 
                               
 
 
 
         
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 operations
  
 
34,457,122
 
  
 
(1,727,449
  
 
(5,863,110
  
 
(66,389,483
    
 
 
    
 
 
    
 
 
    
 
 
 
Unallocated other income, net
                              28,439,789  
                             
 
 
 
Loss 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 operations
  
 
3,259,490
 
    
6,748,596
 
  
 
(17,388,611
 
 
(107,478,374
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Unallocated other loss, net
                             (3,375,210
                            
 
 
 
Loss before income taxes
                          
 
(110,853,584
                              
 
 
 
 
 
*
Unallocated corporate expenses represent the general and administrative expenses for the years ended December 31, 2020, 2021 and 2022.
Majority
of the Group’s operations, c
ust
omers and long-lived assets are located in the PRC. Consequently, no geographic information is presented.