16. LEASES

The Company has operating leases for classrooms and corporate offices.

The components of lease expense were as follows:

Supplemental cash flow information related to leases was as follows:

Supplemental balance sheet information related to leases was as follows:

The Company’s lease agreements do not have a discount rate that is readily determinable. The incremental borrowing rate is determined at lease commencement or lease modification and represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The weighted-average discount rate was calculated using the discount rate for the lease that was used to calculate the lease liability balance for each lease and the remaining balance of the lease payments for each lease as of June 30, 2026.

The Company performed an impairment test on the operating lease right-of-use assets and recognized an impairment loss of nil for the six months ended June 30, 2025 and 2026.

The weighted-average remaining lease terms were calculated using the remaining lease term and the lease liability balance for each lease as of June 30, 2026.

As of June 30, 2026, maturities of lease liabilities were as follows:

As of June 30, 2026, the Group had no material operating or finance leases that had not yet commenced.