| Schedule of Assets and Liabilities Discontinued Operations |
The assets and liabilities are included
in the captions “Current assets of discontinued operations”, “Non-current assets of discontinued operations”,
“Current liabilities of discontinued operations” and “Non-current liabilities of discontinued operations”, in
the accompanying balance sheets at October 31, 2025:
| | |
Year Ended
December 31, | | |
October 31, | |
| | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | |
| Cash and cash equivalents | |
| 13,797 | | |
| 1,541 | |
| Restricted cash | |
| 31,217 | | |
| — | |
| Amounts due from related parties | |
| 4,792 | | |
| — | |
| Prepaid expenses and others current assets | |
| 4,899 | | |
| 3,901 | |
| Property and equipment, net | |
| 21,591 | | |
| 20,823 | |
| Right-of-use assets | |
| — | | |
| 802 | |
| Long-term investments | |
| 22,817 | | |
| 20,452 | |
| Total assets of discontinued operations | |
| 99,113 | | |
| 47,519 | |
| | |
| | | |
| | |
| Balance sheet classification: | |
| | | |
| | |
| Current assets of discontinued operations | |
| 99,113 | | |
| 47,519 | |
| Total assets of discontinued operations | |
| 99,113 | | |
| 47,519 | |
| | |
| | | |
| | |
| Short-term bank loans | |
| 26,291 | | |
| — | |
| Accounts payable | |
| 5,971 | | |
| 5,782 | |
| Amounts due to related parties | |
| 6,384 | | |
| 1,064 | |
| Operating lease liabilities-current | |
| 105,504 | | |
| 132,180 | |
| Income taxes payable | |
| 8,734 | | |
| 8,997 | |
| Deferred revenue-current | |
| 1,117,713 | | |
| 1,186,861 | |
| Accrued expenses and other current liabilities | |
| 497,103 | | |
| 484,917 | |
| Operating lease liabilities-non-current | |
| 91,407 | | |
| — | |
| Total liabilities of discontinued operations | |
| 1,859,107 | | |
| 1,819,801 | |
| | |
| | | |
| | |
| Balance sheet classification: | |
| | | |
| | |
| Current liabilities of discontinued operations | |
| 1,859,107 | | |
| 1,819,801 | |
| Total liabilities of discontinued operations | |
| 1,859,107 | | |
| 1,819,801 | |
The condensed cash flows of professional
education business were as follows for the years ended December 31, 2023, 2024 and 2025, are included in the consolidated statements of
cash flows of the Company as cash flow from discontinued operation:
| | |
Year Ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | | |
RMB | |
| Net cash used in operating activities | |
| (174,427 | ) | |
| (127,177 | ) | |
| (165,310 | ) |
| Net cash provided by/(used in) investing activities | |
| 72,048 | | |
| (57,660 | ) | |
| (190 | ) |
| Net cash (used in)/provided by financing activities | |
| (33,580 | ) | |
| 13,499 | | |
| (46,291 | ) |
STEM education business results of operations
for the years ended December 31, 2023, 2024 and 2025, shown in the table below, are included in the consolidated operations and comprehensive
(loss) income as “net income (loss) from the discontinued operations” for those respective periods, after intercompany eliminations,
as applicable.
| | |
Year Ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | | |
RMB | |
| Net revenues | |
| 1,999,778 | | |
| 1,282,736 | | |
| 93,422 | |
| Cost of revenues | |
| (977,054 | ) | |
| (788,568 | ) | |
| (18,849 | ) |
| Gross profit | |
| 1,022,724 | | |
| 494,168 | | |
| 74,573 | |
| Selling and marketing expenses | |
| (520,593 | ) | |
| (270,141 | ) | |
| (3,996 | ) |
| General and administrative expenses | |
| (469,048 | ) | |
| (731,073 | ) | |
| (77,264 | ) |
| Research and development expenses | |
| (40,088 | ) | |
| (21,707 | ) | |
| — | |
| Operating loss | |
| (7,005 | ) | |
| (528,753 | ) | |
| (6,687 | ) |
| Interest income (expense), net | |
| 1,243 | | |
| (122 | ) | |
| (4,243 | ) |
| Loss from discontinued operations | |
| (5,762 | ) | |
| (528,875 | ) | |
| (10,930 | ) |
| Gain on disposal of subsidiary (Note c) | |
| 26,797 | | |
| — | | |
| 87,314 | |
| Other income (loss) | |
| 787 | | |
| (8,979 | ) | |
| (2,046 | ) |
| Foreign currency exchange loss, net | |
| (1,403 | ) | |
| (1,538 | ) | |
| (599 | ) |
| Income/(loss) before income taxes | |
| 20,419 | | |
| (539,392 | ) | |
| 73,739 | |
| Gain on disposal of Discontinued Operation | |
| — | | |
| — | | |
| 1,685,426 | |
| Income tax benefit (expense) | |
| 1,424 | | |
| (33,859 | ) | |
| (262 | ) |
| Net income (loss) from discontinued operations | |
| 21,843 | | |
| (573,251 | ) | |
| 1,758,903 | |
Net revenues from discontinued operations
recognized under ASC Topic 606 for the years ended December 31, 2023, 2024 and 2025 consist of the following:
| | |
Year Ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | | |
RMB | |
| Tuition fee | |
| 1,950,633 | | |
| 1,270,857 | | |
| 93,413 | |
| Certification service fee | |
| 30,514 | | |
| 5,702 | | |
| 9 | |
| Others | |
| 24,270 | | |
| 9,708 | | |
| — | |
| Business taxes and surcharges | |
| (5,639 | ) | |
| (3,531 | ) | |
| — | |
| Total net revenues | |
| 1,999,778 | | |
| 1,282,736 | | |
| 93,422 | |
| | |
Year Ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | | |
RMB | |
| Timing of revenue recognition | |
| | |
| | |
| |
| Services transferred over time | |
| 1,945,166 | | |
| 1,267,368 | | |
| 93,413 | |
| Services transferred at a point in time | |
| 54,612 | | |
| 15,368 | | |
| 9 | |
| Total net revenues | |
| 1,999,778 | | |
| 1,282,736 | | |
| 93,422 | |
In addition,
other immaterial adjustments of RMB458 were recognized, which together partially offset the aforementioned gain.
| | |
Year Ended December 31, 2025 | |
| | |
RMB | |
| Item | |
| |
| Derecognition of net liabilities of disposed subsidiaries | |
| 1,772,282 | |
| Other adjustments | |
| 458 | |
| Loss from waiver of intercompany balances | |
| (87,314 | ) |
| Gain on disposal of discontinued operations | |
| 1,685,426 | |
|