| SEGMENT INFORMATION |
15. SEGMENT INFORMATION The Group offers a wide range of educational and career enhancement services and products focusing on improving educational opportunities for primary and advanced degree school students and employment opportunities for university graduates. The Group’s chief operating decision maker (“CODM”) has been identified as the CEO who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the Group. The Group has two reportable segments: 1) K-12 schools, 2) CP&CE Programs. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The CODM evaluates performance based on each reporting segment’s revenues, cost of revenues, gross profit, operating expenses, other income (expense), income (loss) before income tax and non-controlling interests and total assets as follows. For the six months ended June 30, 2022 (Unaudited) | | | | | | | | | K‑12 | | CP&CE | | | (RMB in thousands) | | Schools | | Programs | | Consolidated | | | RMB | | RMB | | RMB | Net Revenues | | 99,950 | | 104,093 | | 204,043 | Cost of revenues | | (51,452) | | (76,426) | | (127,878) | GROSS PROFIT | | 48,498 | | 27,667 | | 76,165 | | | | | | | | OPERATING EXPENSES | | | | | | | Selling and marketing | | — | | (16,362) | | (16,362) | General and administrative | | (8,929) | | (58,633) | | (67,562) | Research and development | | — | | (3,540) | | (3,540) | Unallocated corporate expenses | | — | | — | | (26,435) | Total operating expenses | | (8,929) | | (78,535) | | (113,899) | | | | | | | | OPERATING INCOME (LOSS) | | 39,569 | | (50,868) | | (37,734) | | | | | | | | OTHER INCOME | | | | | | | Interest income (expense), net | | 950 | | (445) | | 505 | Other (expense) income, net | | (249) | | 5,682 | | 5,433 | Gain from deregistration of subsidiaries | | — | | 295 | | 295 | Loss on disposal of subsidiaries | | — | | (1,124) | | (1,124) | Gain on sale of investment available for sale | | 799 | | — | | 799 | Unallocated corporate other loss | | — | | — | | (1,309) | Total other income | | 1,500 | | 4,408 | | 4,599 | | | | | | | | INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS | | 41,069 | | (46,460) | | (33,135) | | | | | | | | Segment assets | | 261,560 | | 319,869 | | 581,429 | Unallocated corporate assets | | — | | — | | 332,438 | TOTAL ASSETS as of June 30, 2022 | | 261,560 | | 319,869 | | 913,867 |
For the six months ended June 30, 2021 (Unaudited) | | | | | | | | | K-12 | | CP&CE | | | (RMB in thousands) | | Schools | | Programs | | Consolidated | | | RMB | | RMB | | RMB | Net Revenues | | 175,650 | | 126,206 | | 301,856 | Cost of revenues | | (97,886) | | (83,419) | | (181,305) | GROSS PROFIT | | 77,764 | | 42,787 | | 120,551 | | | | | | | | OPERATING EXPENSES | | | | | | | Selling and marketing | | (1,163) | | (22,098) | | (23,261) | General and administrative | | (22,371) | | (38,131) | | (60,502) | Research and development | | (424) | | (2,184) | | (2,608) | Unallocated corporate expenses | | — | | — | | (29,010) | Total operating expenses | | (23,958) | | (62,413) | | (115,381) | | | | | | | | OPERATING INCOME (LOSS) | | 53,806 | | (19,626) | | 5,170 | | | | | | | | OTHER INCOME | | | | | | | Interest income, net | | 725 | | 602 | | 1,327 | Other expense, net | | (36) | | (1,439) | | (1,475) | Gain from deregistration of subsidiaries | | — | | 1,325 | | 1,325 | Gain on sale of investment available for sale | | 1,001 | | — | | 1,001 | Unallocated corporate other income | | — | | — | | 3,399 | Total other income | | 1,690 | | 488 | | 5,577 | | | | | | | | INCOME (LOSS) BEFORE INCOME TAX AND NON-CONTROLLING INTERESTS | | 55,496 | | (19,138) | | 10,747 | | | | | | | | Segment assets | | 402,185 | | 399,336 | | 801,521 | Unallocated corporate assets | | — | | — | | 207,451 | TOTAL ASSETS as of June 30, 2021 | | 402,185 | | 399,336 | | 1,008,972 |
The following table summarizes the net revenues by geographic areas for the three and six months ended June 30, 2022 and 2021, respectively. | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | | 2022 | | 2021 | | 2022 | | 2021 | | | RMB | | RMB | | RMB | | RMB | | | Unaudited | | Unaudited | | Unaudited | | Unaudited | Net Revenues | | | | | | | | | PRC | | 77,803 | | 141,066 | | 141,000 | | 234,927 | U.S. | | 32,125 | | 31,185 | | 63,043 | | 66,929 | Total | | 109,928 | | 172,251 | | 204,043 | | 301,856 |
Net revenues are attributed to areas based on the location where the service is performed to the customers. Other than in PRC and the United States, the Group does not conduct business in any other individual country. The following table summarizes long-lived assets by geographic areas as of June 30, 2022 and December 31, 2021, respectively. | | | | | | | As of | | | June 30, 2022 | | December 31, 2021 | | | RMB | | RMB | | | Unaudited | | | Long-Lived Assets | | | | | PRC | | 211,379 | | 222,396 | U.S. | | 152,935 | | 157,066 | Total | | 364,314 | | 379,462 |
Long-lived assets represent property and equipment, intangible assets, goodwill, operating and finance lease right-of-use assets for each geographic area.
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