First Half 2022 Highlights:
Net loss from continuing operations was
Net loss from discontinued operations was
Net loss attributable to common shareholders of
After
The Opinion contains guiding principles about requirements and restrictions related to after-school tutoring services, including: (i) service providers in After-School Tutoring (“AST”) services on academic subjects relating to compulsory education or academic AST institutions need to register as a non-profit entity; (ii) foreign ownership in academic AST institutions are prohibited, including through contractual arrangements; (iii) listed companies are prohibited from raising capital to invest in businesses that teach academic subjects in compulsory education; (iv) relevant tutoring services on academic subjects in compulsory education are not allowed during public holidays, weekends and school breaks; and (v) academic AST institutions must follow the fee standards to be established by relevant authorities. The Opinion also provides that institutions providing after-school tutoring services on academic subjects in high schools (which do not fall within China’s compulsory education system) shall take into consideration the Opinion when conducting activities.
In compliance with the opinion and applicable rules, regulations and measures, the Company actively discussed with regulatory authorities with regard to winding down of the suspended business, including the termination of leased office spaces and learning centers, and disposal of relevant leasehold improvements and electronic equipment. Most subsidiaries have closed their physical stores since
The Company has carried out product iterations on its original business, shifting from education and training to education and technology, using the original channels to carry out quality education and technology output, including 5G technology, smart campus system, and virtual training systems based on the Metaverse. The Company’s new business is using the six core technologies of Metaverse and artificial intelligence blockchain network computing, interaction, game technology, and the Internet of Things as the Company’s core technologies, building a new type of blockchain smart student card and global smart employment quality educational virtual world (a new type of artificial intelligence employment training), a combination of virtual and real prediction world (digital education, risk prediction, computing power output), VR shopping world (new e-commerce) and other products to provide global customers with a new digital world experience.
The Company has recruited a global management team and a technology research and development team to develop new products and business directions that combine education and technology. On
The new revenue streams included Smart Campus Service System-smart student ID card, smart training system based on smart training, and edge computing power output based on meta-universe computing power.
Due to the aforementioned, on
Key Financial Results (In Thousand /RMB) | First Half, 2022 | First Half, 2021 | Change In Amounts | Change In Percentage | ||||||||||||
Net revenues | - | 1,616,435 | (1,616,435 | ) | N/A | |||||||||||
Gross profit | - | 597,481 | (597,481 | ) | N/A | |||||||||||
Operating loss | (360,910 | ) | (273,885 | ) | (87,025 | ) | 32 | % | ||||||||
Loss from continuing operations | (371,954 | ) | (347,995 | ) | (23,959 | ) | 7 | % | ||||||||
Loss from discontinued operations | (742,879 | ) | - | (742,879 | ) | N/A | ||||||||||
Net loss attributable to | (1,114,833 | ) | (331,550 | ) | (783,283 | ) | 236 | % | ||||||||
Net loss attributable to non-controlling interests | (45,987 | ) | (16,445 | ) | 29,542 | 180 | % | |||||||||
Financial Results for the First Half Year Ended
Net Revenues
According to the “Double Reduction Policy” of the Chinese government, the Company ceased its Legacy Business from
Operating Costs and Expenses
Operating costs and expenses for the first half year of 2022 were
- Cost of revenues were nil compared to
RMB1,019.0 million (US$157.4 million ) for the same period of last year because the Company ceased all the domestic education programs and learning centers inChina inOctober 2021 in order to comply with the policy directives of the Opinion, accordingly, no revenues were generated for the continuing business in the first half of 2022.
- Selling and marketing expenses were nil compared to
RMB459.7 million (US$71.0 million ) for the same period of last year because the Company ceased its after-school tutoring services in primary and secondary schools according to government regulations, therefore, no selling and marketing expenses were incurred for the continuing business in the first half of 2022.
- General and administrative expenses were
RMB360.9 million (US$57.1 million ), mainly consisting of share-based compensation expenses, and has decreased by 27% year-over-year.
Operating Loss
Operating loss for the first half year was
Income from Continuing and Discontinuing operations
For the first half year 2022, loss from continuing operations was
Net interest expense was
Other income, which mainly represents government subsidies and other gains, was nil compared to
Net Loss Attributable to
Net loss attributable to
Financial Position
As of
As of
Cash Flow
Net cash used in operating activities in the first half year of 2022 was
Net cash provided by investing activities in the first half year of 2022 was
Net cash provided from financing activities in the first half year of 2022 was
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
About
Safe Harbor Statement
This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the
For more information, please contact:
info@aiumeta.com
ICA (Institutional Capital Advisory)
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) | ||||||||||||
As of 2021 | As of 2022 | As of 2022 | ||||||||||
RMB | RMB | USD | ||||||||||
(Audited) | (Unaudited) | (Unaudited) | ||||||||||
Asset | ||||||||||||
Current Asset | ||||||||||||
Cash | 29,626 | 186,230 | 29,457 | |||||||||
Short-term investments | 81,575 | 6,763 | 1,070 | |||||||||
Restricted cash | 355,017 | - | - | |||||||||
Current assets from discontinued operations | - | 159,804 | 25,277 | |||||||||
Total current assets | 466,218 | 352,797 | 55,804 | |||||||||
Prepayment to acquire a subsidiary | ||||||||||||
Property, plant and equipment, net | 36,955 | - | - | |||||||||
Non-current assets from discontinued operations | - | 14,678 | 2,322 | |||||||||
Total assets | 503,173 | 367,475 | 58,126 | |||||||||
Liabilities and Equity | ||||||||||||
Short-term loan | 498,574 | 628,174 | 99,360 | |||||||||
Long-term loan, current portion | 513,432 | - | - | |||||||||
Prepayments from customers | 2,787,686 | - | - | |||||||||
Amounts due to related parties | 1,205 | - | - | |||||||||
Income tax payable | 48,216 | - | - | |||||||||
Accrued expenses and other current liabilities | 868,464 | 17,284 | 2,734 | |||||||||
Current liabilities from discontinued operations | 4,828,109 | 763,676 | ||||||||||
Total current liabilities | 4,717,577 | 5,473,567 | 865,770 | |||||||||
Long-term bank loan | 135,000 | |||||||||||
Convertible loan | 226,114 | |||||||||||
Other non-current liabilities | 45,727 | |||||||||||
Non-current liabilities from discontinued operations | 154,798 | 24,485 | ||||||||||
Total liabilities | 5,124,418 | 5,628,365 | 890,255 | |||||||||
Commitments and contingencies | ||||||||||||
Equity | ||||||||||||
Class A ordinary shares ( | 26 | 76 | 12 | |||||||||
Class B ordinary shares ( | 16 | 16 | 3 | |||||||||
Ordinary shares | 42 | 92 | 15 | |||||||||
Additional paid-in capital | 5,337,962 | 5,799,290 | 917,290 | |||||||||
(344 | ) | - | - | |||||||||
Statutory reserve | 16,427 | 16,427 | 2,598 | |||||||||
Retained earnings-Accumulated Deficit | (10,078,429 | ) | (11,147,275 | ) | (1,763,196 | ) | ||||||
Accumulated other comprehensive income | 92,693 | 106,159 | 16,792 | |||||||||
Total Meta Data Limited’s Equity | (4,631,649 | ) | (5,225,307 | ) | (826,501 | ) | ||||||
Noncontrolling interests | 10,404 | (35,583 | ) | (5,628 | ) | |||||||
Total equity | (4,621,245 | ) | (5,260,890 | ) | (832,129 | ) | ||||||
Total liabilities and equity | 503,173 | 367,475 | 58,126 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Amounts in thousands) | ||||||||||||
For the six months ended | ||||||||||||
2021 | 2022 | 2022 | ||||||||||
RMB | RMB | USD | ||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
Net revenues | 1,616,435 | - | - | |||||||||
Cost of revenues | (1,018,954 | ) | - | - | ||||||||
Gross profit | 597,481 | - | - | |||||||||
Operating expenses | ||||||||||||
Selling and marketing | (459,742 | ) | - | - | ||||||||
General and administrative | (411,624 | ) | (360,910 | ) | (57,086 | ) | ||||||
Total operating expenses | (871,366 | ) | (360,910 | ) | (57,086 | ) | ||||||
Operating loss | (273,885 | ) | (360,910 | ) | (57,086 | ) | ||||||
Interest income | 3,976 | 7 | 1 | |||||||||
Interest expense | (53,543 | ) | (11,032 | ) | (1,745 | ) | ||||||
Other income | 30,370 | - | - | |||||||||
Other expense | (42,219 | ) | - | - | ||||||||
Foreign exchange gain/(loss) | 1,548 | (19 | ) | (3 | ) | |||||||
Loss before income tax provision | (333,753 | ) | (371,954 | ) | (58,833 | ) | ||||||
Income tax benefit | 19,336 | - | - | |||||||||
Loss before share of net loss from equity investees | (314,417 | ) | (371,954 | ) | (58,833 | ) | ||||||
Shared net loss from operating interest | (33,578 | ) | - | - | ||||||||
Loss from Continuing operations | (347,995 | ) | (371,954 | ) | (58,833 | ) | ||||||
Discontinued Operations | ||||||||||||
Loss from discontinued operations | - | (742,879 | ) | (116,218 | ) | |||||||
NET LOSS | (347,995 | ) | (1,114,833 | ) | (175,051 | ) | ||||||
Add: Net loss attributable to non-controlling interests | (16,445 | ) | (45,987 | ) | (7,273 | ) | ||||||
Net loss attributable to common shareholders of | (331,550 | ) | (1,068,846 | ) | (167,778 | ) |
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS) (Amounts in thousands) | ||||||||||||
For the six months ended | ||||||||||||
2021 | 2022 | 2022 | ||||||||||
RMB | RMB | USD | ||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
Net loss | (347,995 | ) | (371,954 | ) | (58,833 | ) | ||||||
Other comprehensive income, net of tax | ||||||||||||
Foreign currency translation adjustment | (10,119 | ) | 13,466 | 2,455 | ||||||||
Unrealized gain on available-for-sale investment, net of tax effect of nil, nil and nil for years ended | 6,236 | - | - | |||||||||
Other comprehensive (loss) / income | - | - | - | |||||||||
Comprehensive income | (351,878 | ) | (358,488 | ) | (56,378 | ) | ||||||
Less: comprehensive loss attributable to non-controlling interests | 16,445 | 45,987 | 7,273 | |||||||||
Comprehensive income attributable to | (335,433 | ) | (312,501 | ) | (49,105 | ) | ||||||
Comprehensive loss attributable to Ordinary Shareholders | (335,433 | ) | (312,501 | ) | (49,105 | ) | ||||||
Source:
2022 GlobeNewswire, Inc., source