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Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Financial Position and Financial Performance of VIEs and Subsidiaries Reported in Consolidated Financial Statements

The following financial position and financial performance of the VIEs and VIEs' subsidiaries after the elimination of inter-company transactions and balances as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 was included in the accompanying consolidated financial statements:

 

 

As of December 31,

 

 

2021

 

 

2022

 

 

RMB

 

 

RMB

 

Cash and cash equivalents

 

 

239,520

 

 

 

154,544

 

Available-for-sale investments

 

 

 

 

 

19,531

 

Accounts receivable

 

 

 

 

 

32,934

 

Prepaid expenses and other current assets

 

 

115,333

 

 

 

110,131

 

Total current assets

 

 

354,853

 

 

 

317,140

 

Property and equipment, net

 

 

33,854

 

 

 

9,264

 

Right-of-use asset

 

 

89,853

 

 

 

12,244

 

Other non-current assets

 

 

8,138

 

 

 

3,070

 

Total non-current assets

 

 

131,845

 

 

 

24,578

 

Total assets

 

 

486,698

 

 

 

341,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

 

 

93,115

 

 

 

35,220

 

Deferred revenue and customer advances, current

 

 

239,267

 

 

 

40,092

 

Operating lease liabilities, current

 

 

29,113

 

 

 

8,179

 

Total current liabilities

 

 

361,495

 

 

 

83,491

 

Operating lease liabilities, non-current

 

 

57,906

 

 

 

3,563

 

Total non-current liabilities

 

 

57,906

 

 

 

3,563

 

Total liabilities

 

 

419,401

 

 

 

87,054

 

 

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

The VIE arrangements – continued

Risks in relation to VIE structure – continued

 

 

Year ended December 31,

 

 

2020

 

 

2021

 

 

2022

 

 

RMB

 

 

RMB

 

 

RMB

 

Net revenues

 

 

1,229,126

 

 

 

2,166,327

 

 

 

498,602

 

Net income

 

 

301,096

 

 

 

797,867

 

 

 

309,653

 

 

The following are cash flows of the VIEs and VIEs' subsidiaries for the years ended December 31, 2020, 2021 and 2022:

 

 

Year ended December 31,

 

 

2020

 

 

2021

 

 

2022

 

 

RMB

 

 

RMB

 

 

RMB

 

Net cash generated from (used in) operating activities

 

 

347,773

 

 

 

(137,607

)

 

 

(135,866

)

Net cash used in investing activities

 

 

(85,788

)

 

 

(61,413

)

 

 

(14,510

)

Net cash (used in) generated from financing activities

 

 

(9,000

)

 

 

18,400

 

 

 

65,400

 

Schedule of Property and Equipment Estimated Useful Life

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows:

 

Category

Estimated useful life

 

 

Electronic equipment

3 to 5 years

Leasehold improvement

Shorter of the lease term or estimated economic life

Software

3 to 5 years

Furniture and office equipment

5 years

Summary of Contract and Refund Liabilities Arising from Contract with Customers

The following table provides information about the Group's contract and refund liabilities arising from contract with customers.

 

 

As of December 31,

 

 

2021

 

 

2022

 

 

RMB

 

 

RMB

 

Deferred revenue and customer advances

 

 

243,878

 

 

 

42,385

 

Refund liabilities

 

 

5,559

 

 

 

389

 

Schedule of Disaggregated Revenue by Types The following table provides information about disaggregated revenue by types:

 

 

Year ended December 31,

 

 

2020

 

 

2021

 

 

2022

 

 

RMB

 

 

RMB

 

 

RMB

 

Teaching and learning SaaS offerings

 

 

 

 

 

 

 

 

115,365

 

Other educational products and services

 

 

75,807

 

 

 

55,910

 

 

 

415,699

 

Online K-12 tutoring services

 

 

1,218,564

 

 

 

2,128,610

 

 

 

 

Total net revenues

 

 

1,294,371

 

 

 

2,184,520

 

 

 

531,064

 

 

Summary of Accounts Receivable From Customers

The following table summarizes accounts receivable from customers that accounted for 10% or more of the Group’s accounts receivable:

 

As of December 31,

 

 

2022

 

 

RMB

 

Percentage of accounts receivable from Customer A

 

 

49

%

Percentage of accounts receivable from Customer B

 

 

19

%

Percentage of accounts receivable from Customer C

 

 

17

%