UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

 

FORM 6-K

 

 

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of April 2020

 

 

 

Commission File Number: 001-34824

 

 

 

Ambow Education Holding Ltd.

 

 

 

Not Applicable

(Translation of Registrant’s name into English)

 

Cayman Islands

(Jurisdiction of incorporation or organization)

 

12th Floor, Tower 1, Financial Street Chang’An Center,

Shijingshan District, Beijing 100043

People’s Republic of China

Telephone: +86 (10) 6206-8000

(Address of principal executive offices)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F x     Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨     No x

 

If “Yes” marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___

 

 

 

 

 

Other Information

 

Attached hereto as Exhibit 99.1 is a press release dated April 22, 2020, announcing the Company’s audited financial and operating results for the fourth quarter ended December 31, 2019 and fiscal year 2019.

 

Exhibits

 

99.1 Press Release, dated April 22, 2020

 

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Ambow Education Holding Ltd.
   
   
  By: /s/Jin Huang
  Name: Dr. Jin Huang
  Title: President and Chief Executive Officer

 

 

Date: April 22, 2020

 

 

Exhibit 99.1

 

Ambow Education Announces Fourth Quarter and Full Year 2019 Financial Results

 

BEIJING, April 22, 2020 -- Ambow Education Holding Ltd. (“Ambow” or the “Company”) (NYSE American: AMBO), a leading national provider of educational and career enhancement services in China, today announced its audited financial and operating results for the fourth quarter and fiscal year ended December 31, 2019.

 

“We are pleased to conclude fiscal year 2019 with solid fourth quarter results,” said Dr. Jin Huang, Ambow’s President and Chief Executive Officer. “Throughout the year, we continued our efforts and investment in new technology advancement and innovative education service offerings to strengthen our leadership in the career enhancement services market and further develop our cross-border education service platform. Looking ahead, by continuing to build and integrate our robust portfolio of international assets and partnerships, we believe we are well positioned to capture the opportunities in the underserved cross-border career education market between the U.S. and China.”

 

“We are closely monitoring the evolving situation brought about by the COVID-19 pandemic, and have taken numerous safeguarding measures to protect our employees and support the communities in which we operate. Notably, we have rolled out new initiatives to support the Chinese government’s plan of moving classroom school learning online during this period of prolonged school closures. Leveraging our expertise in online education, strong technology capabilities, and best-of-breed educational content, we promptly launched a series of online class programs, including our VIP classes focused on Big Data and Internet of Things (“IoT”) taught by leading professionals from around the world. We have also added new career planning classes to enhance the competitive skills and knowledge that will be required by students in the more challenging job market emerging from the global business downturn. These initiatives underline our mission, which is to address critical demands in the education market and bridge the gaps between higher education and the career aspirations of students,” concluded Dr. Huang.

 

Fourth Quarter 2019 Financial Highlights

 

· Net revenues for the fourth quarter of 2019 increased by 1.2% to US$24.9 million from US$24.6 million in the same period of 2018. This increase was mainly driven by higher student enrollment.

 

· Gross profit for the fourth quarter of 2019 decreased by 3.6% to US$8.0 million from US$8.3 million in the same period of 2018. Gross profit margin was 32.1%, compared with 33.7% for the fourth quarter of 2018.

 

· Operating expenses for the fourth quarter of 2019 increased by 47.8% to US$10.2 million from US$6.9 million for the same period of 2018. The increase of operating expenses was primarily due to a one-time bad debt expense recovery and reversal of US$2.9 million in the fourth quarter of 2018.

 

· Net loss attributable to ordinary shareholders in the fourth quarter of 2019 was US$1.7 million, or US$0.04 per basic and diluted share, compared with a net income of US$4.5 million, or US$0.10 per basic and diluted share, for the fourth quarter of 2018.

 

 

 

 

· As of December 31, 2019, Ambow maintained strong cash resources of US$35.3 million, comprised of cash and cash equivalents of US$22.6 million and short-term investments of US$12.7 million.

 

· As of December 31, 2019, the Company’s deferred revenue balance was US$23.7 million, representing a 30.9% increase from US$18.1 million as of December 31, 2018, mainly attributable to the tuition and fees collected in the K-12 segment for the 2019-2020 academic year and tuition collected from our education service platforms.

 

Fiscal Year 2019 Financial Highlights

 

· Net revenues for fiscal year 2019 increased by 8.5% to US$83.9 million from US$77.3 million in 2018. This increase was mainly driven by higher student enrollment.

 

· Gross profit for the fiscal year 2019 decreased by 0.4% to US$28.0 million from US$28.1 million in 2018. Gross profit margin was 33.4%, compared with 36.4% in 2018. The decrease in gross profit margin was primarily due to additional investments in new programs and new technology deployment.

 

· Operating expenses for the fiscal year 2019 increased by 62.2% to US$42.0 million from US$25.9 million in 2018. The increase of operating expenses was primarily due to more marketing activities to promote student enrollment, additional investments in new programs and new technology deployment, increase in staff compensation and an impairment loss of goodwill and intangible assets of US$5.6 million recorded in 2019, and a one-time bad debt expense recovery and reversal of US$2.9 million in 2018.

 

· Net loss attributable to ordinary shareholders for the fiscal year 2019 was US$14.4 million, or US$0.33 per basic and diluted share, compared with a net income of US$6.5 million, or US$0.16 per basic and diluted share, in 2018.

 

The Company's fourth quarter and fiscal year 2019 financial and operating results can also be found on its Form 6-K and Form 20-F filed with the U.S. Securities and Exchange Commission at www.sec.gov.

 

Exchange Rate Information

 

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all amounts translated from RMB to U.S. dollars for the fourth quarter and the twelve months of 2019 are based on the effective exchange rate of 6.9618 as of December 31, 2019; all amounts translated from RMB to U.S. dollars for the fourth quarter and the twelve months of 2018 are based on the effective exchange rate of 6.8755 as of December 31, 2018. The exchange rates were according to the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

 

 

 

 

About Ambow Education Holding Ltd.

 

Ambow Education Holding Ltd. is a leading national provider of educational and career enhancement services in China, offering high-quality, individualized services and products. With its extensive network of regional service hubs complemented by a dynamic proprietary learning platform and distributors, Ambow provides its services and products to students in 30 out of the 31 provinces and autonomous regions within China.

 

Follow us on Twitter: @Ambow_Education

 

 

Safe Harbor Statement

 

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the outlook and quotations from management in this announcement, as well as Ambow’s strategic and operational plans, contain forward-looking statements. Ambow may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements, including but not limited to the following: the Company’s goals and strategies, expansion plans, the expected growth of the content and application delivery services market, the Company’s expectations regarding keeping and strengthening its relationships with its customers, and the general economic and business conditions in the regions where the Company provides its solutions and services. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Ambow undertakes no duty to update such information, except as required under applicable law.

 

 

For investor and media inquiries please contact:

 

Ambow Education Holding Ltd.

Tel: +86-10-6206-8000

 

The Piacente Group | Investor Relations

Tel: +1-212-481-2050 or +86-10-6508-0677

E-mail: ambow@tpg-ir.com

 

 

 

 

AMBOW EDUCATION HOLDING LTD.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share and per share data)

                 

 

    As of December 31,     As of December 31,  
    2019     2018  
    US$     RMB     RMB  
ASSETS                  
Current assets:                        
Cash and cash equivalents     22,638       157,600       211,436  
Restricted cash     -       -       30,072  
Short term investments, available for sale     8,257       57,487       47,208  
Short term investments, held to maturity     4,453       31,000       70,000  
Accounts receivable, net     2,577       17,939       18,132  
Amounts due from related parties     333       2,318       1,105  
Prepaid and other current assets, net     19,147       133,296       134,770  
Loan receivable, current     -       -       42,677  
Total current assets     57,405       399,640       555,400  
Non-current assets:                        
Property and equipment, net     22,618       157,463       165,933  
Land use rights, net     253       1,759       1,804  
Intangible assets, net     8,131       56,607       92,412  
Goodwill     8,669       60,353       73,166  
Deferred tax assets, net     1,464       10,195       10,240  
Operating lease right-of-use asset     36,968       257,361       -  
Finance lease right-of-use asset     926       6,450       -  
Other non-current assets, net     10,194       70,971       11,264  
                         
Total non-current assets     89,223       621,159       354,819  
                         
Total assets     146,628       1,020,799       910,219  
                         
LIABILITIES                        
Current liabilities:                        
Deferred revenue  *     23,717       165,111       124,250  
Accounts payable  *     2,113       14,718       13,583  
Accrued and other liabilities  *     27,717       192,957       256,325  
Borrowing from third party, current     -       -       41,179  
Income taxes payable, current  *     25,958       180,715       207,114  
Amounts due to related parties  *     283       1,971       2,696  
Operating lease liability, current  *     7,687       53,512       -  
Total current liabilities     87,475       608,984       645,147  
Non-current liabilities:                        
Consideration payable for acquisitions     -       -       1,322  
Other non-current liabilities     -       -       979  
Income taxes payable, non-current  *     4,618       32,152       -  
Operating lease liability, non-current  *     31,036       216,067       -  
Total non-current liabilities     35,654       248,219       2,301  
                         
Total liabilities     123,129       857,203       647,448  
                         
EQUITY                        
Preferred shares                        
(US$ 0.003 par value;1,666,667 shares authorized, nil issued and outstanding as of December 31, 2018 and 2019)     -       -       -  
Class A Ordinary shares                        
(US$0.003 par value; 66,666,667 and 66,666,667 shares authorized, 38,756,289 and 38,858,199 shares issued and outstanding as of December 31, 2018 and 2019, respectively)     105       730       728  
Class C Ordinary shares                        
(US$0.003 par value; 8,333,333 and 8,333,333 shares authorized, 4,708,415 and 4,708,415 shares issued and outstanding as of December 31, 2018 and 2019, respectively)     13       90       90  
Additional paid-in capital     504,000       3,508,745       3,507,123  
Statutory reserve     2,899       20,185       20,149  
Accumulated deficit     (484,331 )     (3,371,815 )     (3,271,838 )
Accumulated other comprehensive income     911       6,341       8,305  
Total Ambow Education Holding Ltd.’s equity     23,597       164,276       264,557  
Non-controlling interests     (98 )     (680 )     (1,786 )
Total equity     23,499       163,596       262,771  
Total liabilities and equity     146,628       1,020,799       910,219  
                         

 

* All of the VIE's assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets.

 

 

 

 

AMBOW EDUCATION HOLDING LTD.

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(All amounts in thousands, except for share and per share data)

           

 

    Attributable to Ambow Education Holding Ltd.’s Equity        
                            Retained     Accumulated              
    Class A Ordinary     Class C Ordinary     Additional           Earnings     other     Non-        
    shares     shares     paid-in     Statutory     (Accumulated     comprehensive     controlling     Total  
    Shares     Amount     Shares     Amount     capital     reserves     deficit)     income     Interest     Equity  
          RMB           RMB     RMB     RMB     RMB     RMB     RMB     RMB  
Balance as of January 1, 2019     38,756,289       728       4,708,415       90       3,507,123       20,149       (3,271,838 )     8,305       (1,786 )     262,771  
Share-based compensation     -       -       -       -       872       -       -       -       -       872  
Issuance of ordinary shares for restricted stock award     28,646       1       -       -       (1 )     -       -       -       -       -  
Foreign currency translation adjustment     -       -       -       -       -       -       -       (2,428 )     -       (2,428 )
Unrealized gain on investment, net of income taxes     -       -       -       -       -       -       -       75       -       75  
Net loss     -       -       -       -       -       -       (23,756 )     -       (93 )     (23,849 )
Balance as of March 31, 2019     38,784,935       729       4,708,415       90       3,507,994       20,149       (3,295,594 )     5,952       (1,879 )     237,441  
Share-based compensation     -       -       -       -       266       -       -       -       -       266  
Issuance of ordinary shares for restricted stock award     19,097       0       -       -       (0 )     -       -       -       -       -  
Foreign currency translation adjustment     -       -       -       -       -       -       -       (746 )     -       (746 )
Unrealized gain on investment, net of income taxes     -       -       -       -       -       -       -       173       -       173  
Addition of noncontrolling interests resulting from new subsidiaries     -       -       -       -       -       -       -       -       502       502  
Net income/(loss)     -       -       -       -       -       -       8,778       -       (180 )     8,598  
Balance as of June 30, 2019     38,804,032       729       4,708,415       90       3,508,260       20,149       (3,286,816 )     5,379       (1,557 )     246,234  
Share-based compensation     -       -       -       -       244       -       -       -       -       244  
Foreign currency translation adjustment     -       -       -       -       -       -       -       (93 )     -       (93 )
Unrealized gain on investment, net of income taxes     -       -       -       -       -       -       -       501       -       501  
Net (loss)/income     -       -       -       -       -       -       (72,811 )     -       4       (72,807 )
Balance as of September 30, 2019     38,804,032       729       4,708,415       90       3,508,504       20,149       (3,359,627 )     5,787       (1,553 )     174,079  
Share-based compensation     -       -       -       -       242       -       -       -       -       242  
Issuance of ordinary shares for restricted stock award     54,167       1       -       -       (1 )     -       -       -       -       -  
Foreign currency translation adjustment     -       -       -       -       -       -       -       343       -       343  
Appropriation to statutory reserves     -       -       -       -       -       36       (36 )     -       -       -  
Unrealized gain on investment, net of income taxes     -       -       -       -       -       -       -       211       -       211  
Deregistration of subsidiaries     -       -       -       -       -       -       -       -       306       306  
Noncontrolling interests from new subsidiaries     -       -       -       -       -       -       -       -       783       783  
Net loss     -       -       -       -       -       -       (12,152 )     -       (216 )     (12,368 )
Balance as of December 31, 2019     38,858,199       730       4,708,415       90       3,508,745       20,185       (3,371,815 )     6,341       (680 )     163,596  
                                                                                 
Balance as of January 1, 2018     34,206,939       640       4,708,415       90       3,456,307       20,036       (3,316,715 )     6,876       (1,275 )     165,959  
Share-based compensation     -       -       -       -       616       -       -       -       -       616  
Issuance of ordinary shares for restricted stock award     30,187       1       -       -       (1 )     -       -       -       -       -  
Foreign currency translation adjustment     -       -       -       -       -       -       -       3,276       -       3,276  
Unrealized gain on investment, net of income taxes     -       -       -       -       -       -       -       64       -       64  
Deregistration of subsidiaries     -       -       -       -       -       -       -       -       (9 )     (9 )
Net (loss)/income     -       -       -       -       -       -       (7,062 )     -       93       (6,969 )
Balance as of March 31, 2018     34,237,126       641       4,708,415       90       3,456,922       20,036       (3,323,777 )     10,216       (1,191 )     162,937  
Share-based compensation     -       -       -       -       618       -       -       -       -       618  
Issuance of ordinary shares for restricted stock award     30,187       0       -       -       (0 )     -       -       -       -       -  
Issuance of ordinary shares on IPO     4,140,000       80       -       -       46,047       -       -       -       -       46,127  
Foreign currency translation adjustment     -       -       -       -       -       -       -       (1,523 )     -       (1,523 )
Unrealized gain on investment, net of income taxes     -       -       -       -       -       -       -       69       -       69  
Buy-outs of noncontrolling interests     -       -       -       -       (2,619 )     -       -       -       (1,885 )     (4,504 )
Deregistration of subsidiaries     -       -       -       -       -       -       -       -       (41 )     (41 )
Net income/(loss)     -       -       -       -       -       -       33,312       -       (143 )     33,169  
Balance as of June 30, 2018     38,407,313       721       4,708,415       90       3,500,968       20,036       (3,290,465 )     8,762       (3,260 )     236,852  
Share-based compensation     -       -       -       -       655       -       -       -       -       655  
Issuance of ordinary shares for restricted stock award     29,355       0       -       -       (0 )     -       -       -       -       -  
Foreign currency translation adjustment     -       -       -       -       -       -       -       (501 )     -       (501 )
Unrealized gain on investment, net of income taxes     -       -       -       -       -       -       -       (114 )     -       (114 )
Buy-outs of noncontrolling interests     -       -       -       -       -       -       -       -       1       1  
Net (loss)/income     -       -       -       -       -       -       (12,413 )     -       89       (12,324 )
Balance as of September 30, 2018     38,436,668       721       4,708,415       90       3,501,623       20,036       (3,302,878 )     8,147       (3,170 )     224,569  
Share-based compensation     -       -       -       -       6,232       -       -       -       -       6,232  
Issuance of ordinary shares for restricted stock award     319,621       7       -       -       (7 )     -       -       -       -       -  
Issuance of ordinary shares on IPO     -       -       -       -       (725 )     -       -       -       -       (725 )
Foreign currency translation adjustment     -       -       -       -       -       -       -       52       -       52  
Appropriation to statutory reserves     -       -       -       -       -       113       (113 )     -       -       -  
Unrealized gain on investment, net of income taxes     -       -       -       -       -       -       -       106       -       106  
Buy-outs of noncontrolling interests     -       -       -       -       -       -       -       -       3       3  
Capital injection from minority shareholders     -       -       -       -       -       -       -       -       1,470       1,470  
Net income/(loss)     -       -       -       -       -       -       31,153       -       (89 )     31,064  
Balance as of December 31, 2018     38,756,289       728       4,708,415       90       3,507,123       20,149       (3,271,838 )     8,305       (1,786 )     262,771  

 

 

 

 

AMBOW EDUCATION HOLDING LTD.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands, except for share and per share data)

 

 

    For the years ended December 31,     For the three months ended December 31,  
    2019     2019     2018     2019     2019     2018  
    US$     RMB     RMB     US$     RMB     RMB  
                                     
NET REVENUES                                                
Educational program and services     83,700       582,706       525,134       24,899       173,339       168,705  
Intelligent program and services     173       1,203       6,374       1       10       340  
Total net revenues     83,873       583,909       531,508       24,900       173,349       169,045  
COST OF REVENUES                                                
Educational program and services     (55,106 )     (383,635 )     (331,939 )     (16,976 )     (118,181 )     (110,948 )
Intelligent program and services     (755 )     (5,259 )     (6,204 )     80       559       (1,016 )
Total cost of revenues     (55,861 )     (388,894 )     (338,143 )     (16,896 )     (117,622 )     (111,964 )
                                                 
GROSS PROFIT     28,012       195,015       193,365       8,004       55,727       57,081  
Operating expenses:                                                
Selling and marketing     (8,004 )     (55,721 )     (43,751 )     (2,146 )     (14,943 )     (11,784 )
General and administrative     (27,926 )     (194,417 )     (132,718 )     (7,743 )     (53,907 )     (35,846 )
Research and development     (545 )     (3,793 )     (1,513 )     (321 )     (2,238 )     134  
Impairment loss     (5,567 )     (38,754 )     -       -       -       -  
Total operating expenses     (42,042 )     (292,685 )     (177,982 )     (10,210 )     (71,088 )     (47,496 )
                                                 
OPERATING (LOSS) INCOME     (14,030 )     (97,670 )     15,383       (2,206 )     (15,361 )     9,585  
                                                 
OTHER INCOME (EXPENSES)                                                
Interest income     773       5,379       6,652       292       2,036       1,285  
Foreign exchange gain, net     3       23       372       (3 )     (23 )     218  
Other income, net     57       396       1,447       29       203       930  
Gain from derecognition of liabilities     -       -       15,226       -       -       15,226  
Gain on deregistration of subsidiaries     264       1,841       2,858       81       562       (362 )
Gain from fair value change of contingent consideration payable     190       1,322       5,444       190       1,322       5,444  
Gain on sale of investment available for sale     172       1,200       1,056       112       778       297  
Total other income     1,459       10,161       33,055       701       4,878       23,038  
(LOSS) INCOME BEFORE INCOME TAX AND NON-CONTROLLING INTEREST     (12,571 )     (87,509 )     48,438       (1,505 )     (10,483 )     32,623  
Income tax expense     (1,855 )     (12,917 )     (3,498 )     (271 )     (1,885 )     (1,559 )
                                                 
NET (LOSS) INCOME     (14,426 )     (100,426 )     44,940       (1,776 )     (12,368 )     31,064  
Less: Net loss attributable to non-controlling interest     (70 )     (485 )     (50 )     (31 )     (216 )     (89 )
                                                 
NET (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS     (14,356 )     (99,941 )     44,990       (1,745 )     (12,152 )     31,153  
                                                 
NET (LOSS) INCOME     (14,426 )     (100,426 )     44,940       (1,776 )     (12,368 )     31,064  
                                                 
OTHER COMPREHENSIVE INCOME, NET OF TAX                                                
Foreign currency translation adjustments     (420 )     (2,924 )     1,304       49       343       52  
Unrealized gains on short term investments                                                
Unrealized holding gains arising during period     294       2,046       776       116       808       330  
Less: reclassification adjustment for gains included in net income     156       1,086       651       86       597       224  
Other comprehensive (loss) income     (282 )     (1,964 )     1,429       79       554       158  
                                                 
TOTAL COMPREHENSIVE (LOSS) INCOME     (14,708 )     (102,390 )     46,369       (1,697 )     (11,814 )     31,222  
                                                 
Net (loss) income per share - basic     (0.33 )     (2.30 )     1.09       (0.04 )     (0.28 )     0.72  
                                                 
Net (loss) income per share - diluted     (0.33 )     (2.30 )     1.08       (0.04 )     (0.28 )     0.71  
                                                 
Weighted average shares used in calculating basic net (loss) income per share     43,505,175       43,505,175       41,342,597       43,529,884       43,529,884       43,255,473  
                                                 
Weighted average shares used in calculating diluted net (loss) income per share     43,505,175       43,505,175       41,671,763       43,529,884       43,529,884       43,589,336  

 

 

 

 

Discussion of Segment Operations

(All amounts in thousands)

 

    For the years ended December 31,     For the three months ended December 31,  
    2019     2019     2018     2019     2019     2018  
    US$     RMB     RMB     US$     RMB     RMB  
                                     
NET REVENUES                                                
K-12 Schools *     45,067       313,747       277,790       15,877       110,533       101,614  
CP&CE Programs  *     38,806       270,162       253,718       9,023       62,816       67,431  
Total net revenues     83,873       583,909       531,508       24,900       173,349       169,045  
COST OF REVENUES                                                
K-12 Schools  *     (28,306 )     (197,064 )     (178,645 )     (9,793 )     (68,177 )     (69,958 )
CP&CE Programs  *     (27,555 )     (191,830 )     (159,498 )     (7,103 )     (49,445 )     (42,006 )
Total cost of revenues     (55,861 )     (388,894 )     (338,143 )     (16,896 )     (117,622 )     (111,964 )
GROSS PROFIT                                                
K-12 Schools  *     16,761       116,683       99,145       6,084       42,356       31,656  
CP&CE Programs  *     11,251       78,332       94,220       1,920       13,371       25,425  
Total gross profit     28,012       195,015       193,365       8,004       55,727       57,081  

 

* Ambow previously had three reportable segments, including Better School, Better Job and Others for the years prior to 2019. In 2019, in response to the shift of business development focus, Ambow changed its management approach to organize reportable segments to make operating decisions and assess performance. New reportable segments include K-12 schools and College Preparation & Career Enhancement Programs (“CP&CE Programs”), which provide K-12 educational services and tutoring and vocational educational services,  respectively.